Document:

Form of Management Agreement between Eagle TRS, Inc. & Commonwealth Hotels, Inc.

 Exhibit 10.13 
  
 FORM OF MANAGEMENT AGREEMENT 
  
 HOTEL MANAGEMENT AGREEMENT 
  
 BETWEEN 
  
                                       
                              , 
  
 a Maryland corporation (“Owner”) 
  
 and 
  
 COMMONWEALTH HOTELS, INC., 
  
 a Kentucky corporation (“Management Company”) 
  
 dated effective 
  
                                       
   , 2004 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.

	 ARTICLE I - APPOINTMENT OF MANAGEMENT COMPANY;
	  	1
	 	  	           LIMITATION ON LESSOR’S LIABILITY
	  	 
			
	 1.01
	  	Appointment	  	1
	 1.02
	  	Delegation of Authority	  	1
	 1.03
	  	No Covenants or Restrictions	  	2
	 1.04
	  	Representations of Management Company	  	2
	 1.05
	  	Covenant Regarding Lease Agreement	  	2
		
	 ARTICLE II - DEFINITION OF TERMS
	  	2
		
	 ARTICLE III - THE HOTEL
	  	11
			
	 3.01
	  	Ownership	  	11
	 3.02
	  	Subordination of Management Agreement	  	12
	 3.03
	  	Non-Disturbance Agreement	  	12
		
	 ARTICLE IV – INTENTIONALLY DELETED
	  	12
		
	 ARTICLE V – TERM
	  	13
			
	 5.01
	  	Term	  	13
	 5.02
	  	Actions to be Taken upon Termination	  	13
		
	 ARTICLE VI - COMPENSATION OF MANAGEMENT COMPANY
	  	14
			
	 6.01
	  	Management Fees	  	14
	 6.02
	  	Accounting and Interim Payment	  	15
	 6.03
	  	Reimbursements to Management Company	  	15
	 6.04
	  	Performance Termination	  	16
		
	 ARTICLE VII - WORKING CAPITAL AND FIXED ASSET SUPPLIES
	  	16
			
	 7.01
	  	Working Capital and Inventories	  	16
	 7.02
	  	Fixed Asset Supplies	  	17
		
	 ARTICLE VIII - MAINTENANCE, REPLACEMENT AND CHANGES
	  	17
			
	 8.01
	  	Routine Repairs and Maintenance	  	17
	 8.02
	  	Repairs and Equipment Reserve	  	17
	 8.03
	  	Building Alterations, Improvements, Renewals and Replacements	  	19
	 8.04
	  	Liens	  	19
	 8.05
	  	Ownership of Replacements	  	19

  

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	 ARTICLE IX - BOOKKEEPING AND BANK ACCOUNTS
	  	20
			
	 9.01
	  	Books and Records	  	20
	 9.02
	  	Hotel Accounts: Expenditures	  	20
	 9.03
	  	Annual Operating Projection	  	21
	 9.04
	  	Operating Deficits	  	22
		
	 ARTICLE X - FRANCHISE AGREEMENT
	  	22
		
	 ARTICLE XI - POSSESSION AND USE OF HOTEL
	  	23
			
	 11.01
	  	Use	  	23
	 11.02
	  	Owner’s Right to Inspect	  	23
	 11.03
	  	Group and Other Services	  	23
	 11.04
	  	Rebates	  	24
		
	 ARTICLE XII – INSURANCE
	  	25
			
	 12.01
	  	Property and Operational Insurance	  	25
	 12.02
	  	General Insurance Provisions	  	26
	 12.03
	  	Coverage	  	26
	 12.04
	  	Cost and Expense	  	27
	 12.05
	  	Policies and Endorsements	  	27
	 12.06
	  	Indemnification	  	28
		
	 ARTICLE XIII - REAL ESTATE AND PROPERTY TAXES
	  	29
			
	 13.01
	  	Impositions	  	29
	 13.02
	  	Owner’s Responsibility	  	29
		
	 ARTICLE XIV - HOTEL EMPLOYEES
	  	30
			
	 14.01
	  	Employees	  	30
	 14.02
	  	Termination	  	31
	 14.03
	  	Employee Claims	  	31
		
	 ARTICLE XV - DAMAGE AND CONDEMNATION
	  	32
			
	 15.01
	  	Damage and Repair	  	32
	 15.02
	  	Condemnation	  	32
		
	 ARTICLE XVI – DEFAULTS
	  	33
			
	 16.01
	  	Default	  	33
	 16.02
	  	Event of Default	  	34
	 16.03
	  	Remedies upon Event of Default	  	35
		
	 ARTICLE XVII - PROPRIETARY MARKS; INTELLECTUAL PROPERTY
	  	35
			
	 17.01
	  	Proprietary Marks	  	35
	 17.02
	  	Computer Software and Equipment	  	36
	 17.03
	  	Intellectual Property	  	36

  

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	 ARTICLE XVIII - WAIVER AND INVALIDITY
	  	36
			
	 18.01
	  	Waiver	  	36
	 18.02
	  	Partial Invalidity	  	36
		
	 ARTICLE XIX – ASSIGNMENT
	  	37
			
	 19.01
	  	Assignment by Management Company and Owner	  	37
		
	 ARTICLE XX - TERMINATION OF AGREEMENT UPON SALE, DEMOLITION, OR FORECLOSURE
	  	37
			
	 20.01
	  	Sale of the Hotel	  	37
	 20.02
	  	Termination upon Demolition or Foreclosure	  	39
		
	 ARTICLE XXI - MANAGEMENT COMPANY CONDITIONS
	  	39
			
	 21.01
	  	Conditions upon Management Commencement Date	  	39
		
	 ARTICLE XXII – MISCELLANEOUS
	  	40
			
	 22.01
	  	Right to Make Agreement	  	40
	 22.02
	  	Relationship of Owner and Management Company	  	40
	 22.03
	  	Failure to Perform	  	41
	 22.04
	  	Breach of Covenant	  	41
	 22.05
	  	Consents	  	41
	 22.06
	  	Applicable Law and Arbitration	  	41
	 22.07
	  	Headings	  	42
	 22.08
	  	Notices	  	42
	 22.09
	  	Environmental Matters	  	43
	 22.10
	  	Equity and Debt Offerings	  	44
	 22.11
	  	Estoppel Certificates	  	44
	 22.12
	  	Entire Agreement	  	45
	 22.13
	  	Limitation on Liability	  	45
	 22.14
	  	Confidentiality	  	45
	 22.15
	  	Affiliates	  	45
	 22.16
	  	Force Majeure	  	46

  

 iii 

 MANAGEMENT AGREEMENT 
  
 This Management Agreement (“Agreement”) is made effective as of the day of
                        , 200         (“Effective Date”) by and
between                     , a Maryland corporation, with its principal place of business at 100 East Rivercenter Boulevard, Suite
480, Covington, Kentucky 41011 (“Owner”) and COMMONWEALTH HOTELS, INC., a Kentucky corporation, with its principal place of business at 50 E. Rivercenter Blvd., Suite 600, Covington, Kentucky 41011 (“Management Company”).

  
 WITNESSETH: 
  
 WHEREAS,
                    , a(n) limited liability company (“Lessor”), as lessor, and Owner, as lessee, have entered into a certain
“Lease Agreement” as to the “Hotel” (as such terms are defined below); 
  
 WHEREAS, Lessor and Owner respectively own certain title interests to the Hotel which is located on that certain real property as described on Exhibit A, attached hereto and made a part hereof; and 

 
 WHEREAS, Owner desires to have Management Company manage and operate the
Hotel from and after the Management Commencement Date (as defined in Article II), and Management Company is willing to perform such services for the account of Owner on the terms and conditions set forth in this Agreement; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties, the parties hereto agree as follows: 
  
 ARTICLE I 
 APPOINTMENT OF MANAGEMENT COMPANY 
  

	1.01	Appointment 

  
 Owner hereby appoints and employs Management Company as Owner’s exclusive agent to supervise, direct and control the management and operation of the Hotel for the term provided in Article V. Management Company
accepts said appointment and agrees to manage the Hotel during the Term of this Agreement in accordance with the terms and conditions hereinafter set forth. The performance of all activities by Management Company, including the maintenance of all
bank accounts, shall be as the agent of and for the account of Owner. 
  

	1.02	Delegation of Authority 

  
 Except as otherwise specifically provided in this Agreement, the Hotel shall be operated under the exclusive supervision and control of Management
Company, which shall be 

  

 1 

 
responsible for the proper and efficient operation of the Hotel. Except as otherwise specifically provided in this Agreement, Management Company shall have
discretion and control, free from interference, interruption or disturbance, in all matters relating to the management and operation of the Hotel, including, without limitation, charges for rooms and commercial space, credit policies, food and
beverage services, granting of concessions or leasing of shops and agencies within the Hotel, receipt, holding and disbursement of funds, maintenance of bank accounts (including Working Capital), procurement of inventories, supplies and services,
promotion and publicity and, generally, all activities necessary for the operation of the Hotel. 
  

	1.03	No Covenants or Restrictions 

  
 Owner warrants that there will be on the Management Commencement Date no covenants or restrictions which would prohibit or limit Management Company from
operating the Hotel, including cocktail lounges, restaurants and other facilities customarily a part of or related to a first-class hotel facility. Owner agrees upon request by Management Company to sign promptly and without charge applications for
licenses, permits or other instruments necessary for operation of the Hotel. 
  

	1.04	Representations of Management Company 

  
 Management Company represents that it is experienced and capable in the planning, decorating, furnishing, equipping, promoting, managing, and operating of
first-class hotels, and Management Company covenants and agrees to manage and operate the Hotel as a first-class hotel in accordance with the standards of similarly situated first-class hotels in comparable markets and in strict compliance with that
certain Franchise Agreement dated                     , 200   between
                     , as the “Franchisor,” and
                    , as the “Franchisee” (as such agreement may have been or may be amended subject to Article X below, the
“Franchise Agreement”), respecting the Hotel. Management Company further represents that it qualifies as an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the
“Code”). 
  

	1.05	Covenant Regarding Lease Agreement 

  
 Owner covenants and agrees to use commercially reasonable efforts to cause Lessor to perform its obligations under the Lease Agreement. 
  
 ARTICLE II 
 DEFINITION OF TERMS 
  
 The
following terms when used in this Agreement shall have the meanings indicated: 
  
 Accounting Period means a calendar month. 
  
 Additional Invested Capital means the cumulative total, as of any given date during the Term of this Agreement, of any expenditures made by Lessor to increase the scope and size of the Hotel in the form of banquet
space, meeting space and additional rooms for rent; all of which 

  

 2 

 
would add revenues. It does not include FF&E expenditures in excess of reserves or expenditures that do not add scope to the Hotel. 
  
 Affiliate means any individual or entity, directly or indirectly through one
or more intermediaries, controlling, controlled by, or under common control with a party. The term “control,” as used in the immediately preceding sentence, means, with respect to a corporation, the right to exercise, directly or
indirectly, fifty and one-tenth percent (50.1%) or more of the voting rights attributable to the shares of the controlled corporation, and, with respect to an entity that is not a corporation, the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of the controlled entity. 
  
 Agreement shall have the meaning set forth in the Preamble. 
  
 Annual Operating Projection shall have the meaning set forth in Section 9.03. 
  
 Annual Operating Statement shall have the meaning set forth in Section 9.01. 
  
 Base Management Fee shall have the meaning set forth in Section 6.01 A. 
  
 Building Estimate shall have the meaning set forth in Section 8.03 A.

  
 Code shall have the meaning set forth in Section 1.04.

  
 Consumer Price Index shall mean the Consumer Price Index for
All Urban Consumers (CPI-U) (U.S. City Average), as published by the Bureau of Labor Statistics, Department of Labor, or if such index is no longer published, the “Consumer Price Index” shall then refer to such comparable statistics on
changes in the cost of living for urban consumers as such may be computed and published by an agency of the United States or by a responsible financial periodical of recognized authority as mutually agreed upon by the parties. 
  
 Deductions shall have the meaning set forth in the definition of
“Operating Profit.” 
  
 Default shall have the meaning
set forth in Section 16.01. 
  
 Eagle means Eagle Hospitality
Property Trust, Inc., a Maryland corporation and the ultimate parent company of Owner. 
  
 Effective Date shall have the meaning set forth in the Preamble. 
  
 Employee Claims means any and all claims (including all fines, judgments, penalties, costs, litigation and/or arbitration expenses, attorneys’ fees
and expenses, and costs of settlement with respect to any such claims) by any employee or employees of Management Company against Owner or Management Company with respect to the employment at the Hotel of such employee or employees. “Employee
Claims” shall include, without limitation, the following: (i) claims which are eventually resolved by arbitration, by litigation or by settlement; (ii) claims which also involve allegations that any applicable employment-related contracts
affecting the 

  

 3 

 
employees at the Hotel, including collective bargaining agreements, if any, have been breached; and (iii) claims which involve allegations that one or more
state or federal employment laws have been violated. 
  
 Event of
Default shall have the meaning set forth in Section 16.02. 
  
 Executive Employees shall have the meaning set forth in Section 14.02. 
  
 Existing Twelve Month Management Fees shall have the meaning set forth in the definition of “Sale Termination Fee.” 
  
 FF&E shall have the meaning set forth in Section 8.01. 
  
 FF&E Estimate shall have the meaning set forth in Section 8.02 C. 
  
 Fiscal Year means the calendar year, beginning at 12:01 a.m. on January 1 and ending at midnight on December 31. The partial
Fiscal Year between the Management Commencement Date and the first full Fiscal Year shall be deemed part of the first full Fiscal Year. The partial Fiscal Year between the end of the last full Fiscal Year and the Termination of this Agreement shall,
for purposes of this Agreement, constitute a separate Fiscal Year. 
  
 Fixed Asset Supplies means supply items included within Property and Equipment under the Uniform System of Accounts, including linen, china, glassware, silver, uniforms and similar items. 
  
 Force Majeure means acts of God, acts of war, civil disturbance, governmental
action (including the revocation or refusal to grant licenses or permits, where revocation or refusal is not due to the fault of Management Company, its agents or employees), strikes, fire, unavoidable casualties or any other causes beyond the
reasonable control of Management Company, including without limitation, any failed duty of Management Company which is in part due to Owner’s failure to fund Owner-Funded Capital Expenditures pursuant to Section 8.03 of this Agreement. Force
Majeure shall exclude general economic and/or market factors. 
  
 Franchise Agreement shall have the meaning set forth in Section 1.04. 
  
 Franchisee shall have the meaning set forth in Section 1.04. 
  
 Franchisor shall have the meaning set forth in Section 1.04. 
  
 GAAP means generally accepted accounting principles consistently applied throughout the specified period(s). 
  
 Gross Revenues means all revenues and receipts of every kind derived from operating the Hotel and parts thereof, including, but not limited to: income
(from both cash and credit transactions), before commissions but after discounts for prompt or cash payments, from rental of rooms, stores, offices, meeting, exhibit or sales space of every kind; license, lease and 

  

 4 

 
concession fees and rentals (not including gross receipts of licensees, lessees and concessionaires from their operations); income from vending machines;
health club membership fees; food and beverage sales; wholesale and retail sales of merchandise; service charges, and proceeds, if any, from business interruption or other loss of income insurance. Gross Revenues shall not include (i) gratuities,
including tips, paid to Hotel employees by third parties; (ii) federal, state, and municipal excise, sales, and use taxes or similar impositions collected directly from patrons or guests or included as part of the sales price of any rooms, goods, or
services; (iii) proceeds realized from the sale of FF&E no longer necessary to the operation of the Hotel, which shall be deposited in the Reserve; (iv) proceeds of any insurance other than business interruption insurance (or other insurance
against loss of income) of the type described in Section 12.01 A4; (v) condemnation awards; (vi) gross receipts received by lessees, licensees, or concessionaires of the Hotel; (vii) proceeds from any financing or refinancing; (viii) proceeds of any
judgment or settlement not received as compensation for actual or potential loss of Gross Revenues or Operating Profit; (ix) interest earned on the Reserve or on any other funds held in the Hotel bank accounts, which shall be deposited in the
respective Reserve or bank account; and (x) any funds supplied by Owner to the Reserve or to meet Working Capital needs. 
  
 Group Services shall have the meaning set forth in Section 11.03. 
  

Hotel means the
                                 located at
                                . 
  
 Impositions shall have the meaning set forth in Section 13.01. 
  
 Incentive Fee shall have the meaning set forth in Section 6.01 B. 

 
 Intellectual Property shall have the meaning set forth in Section 17.03.

  
 Inventories means Inventories as defined in the Uniform System
of Accounts, such as provisions in storerooms, refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical supplies; stationery; and other expenses, supplies and similar items.

  
 Lease Agreement means that certain Lease Agreement between
Lessor, as lessor, and Owner, as lessee, dated as of                     , 2004 as the same may hereafter be amended. 
  
 Management Commencement Date means the date upon which Management Company
shall commence operating the Hotel pursuant to this Agreement which date shall be confirmed in writing by Owner and Management Company. 
  
 Management Company means Commonwealth Hotels, Inc. 
  
 Mortgage means any security instrument which encumbers the Hotel and/or the Hotel premises, including, without limitation, mortgages, deeds of trust,
security deeds and similar instruments. 
  

 5 

 Non-Disturbance Agreement means an agreement, in recordable form in the jurisdiction in which the Hotel
is located, executed and delivered by a holder of a Secured Loan (which agreement shall by its terms be binding upon all assignees of such holder and upon any individual or entity that acquires title to or possession of the Hotel at or through a
foreclosure (referred to as a “Subsequent Owner”)), for the benefit of Management Company, pursuant to which, in the event such holder (or its assignee) or any Subsequent Owner comes into possession of or acquires title to the Hotel either
at or following a foreclosure, such holder (and its assignees) and all Subsequent Owners shall: (x) recognize Management Company’s rights under this Agreement, (y) not name Management Company as a party in any foreclosure action or proceeding,
and (z) not disturb Management Company in its right to continue to manage the Hotel pursuant to this Agreement; provided, however, that at such time, (i) this Agreement has not expired or otherwise been terminated earlier in accordance with its
terms, and (ii) there are no outstanding Events of Default by Management Company, and (iii) no material event has occurred and no material condition exists which, after notice or the passage of time or both, would entitle Owner to terminate this
Agreement (excluding events which would constitute Events of Default, which are to be governed exclusively by clause (ii) hereof). 
  
 Operating Loss means a negative Operating Profit. 
  
 Operating Profit means the excess of Gross Revenues over the following deductions (“Deductions”) incurred by Management Company in operating the
Hotel: 
  
 1. Cost of sales, salaries, wages,
fringe benefits, payroll taxes and other cash payroll costs related to Hotel employees; 
  
 2. Departmental expenses, administrative and general expenses and the cost of Hotel advertising and business promotion, heat, light and
power, and routine repairs, maintenance and minor alterations treated as Deductions under Section 8.01; 
  
 3. The cost of Inventories and Fixed Asset Supplies consumed in the operation of the Hotel; 
  
 4. A reasonable reserve for uncollectible accounts
receivable as determined by Management Company and approved by Owner; 
  
 5. All costs and fees of independent professionals or other third parties who perform services required or permitted hereunder if and to the extent such cost and expense are not capitalized in accordance with GAAP as
applied to Owner, including without limitation, third parties providing legal services to Management Company in connection with matters involving the Hotel (excluding matters in dispute between Owner and Management Company), which services shall be
charged at rates which approximate Management Company’s costs associated with such personnel, which rates shall not exceed rates billed by such independent professionals or other third parties; 
  
 6. The cost and expense of technical consultants and
operational experts for specialized services in connection with non-routine Hotel work; provided that Owner 

  

 6 

 
shall have the right to approve any such technical consultant or operational expert if the cost or expense for such work is expected to exceed $25,000.00 in
the aggregate for any Fiscal Year and is not included in the approved Annual Operating Projection for such Fiscal Year; 
  
 7. Management Company’s Base Management Fee (referred to in Section 6.01) for services rendered in connection with the operation of
the Hotel; 
  
 8. All the costs and expenses
incurred by Management Company pursuant to the Franchise Agreement including, but not limited to, franchise fees, advertising, chain services, insurance, etc.; provided, however, any initial licensing fees or capital expenditures necessary for
compliance with the Franchise Agreement shall not be a Deduction from Gross Revenues for purposes of the calculation of Operating Profit; 
  
 9. The amount to be credited to the Reserve described in Section 8.02 A; 
  
 10. Insurance costs and expenses as described in Article XII; 
  
 11. Taxes, if any, payable by or assessed against Management
Company related to this Agreement or to Management Company’s operation of the Hotel (exclusive of Management Company’s income taxes) and Impositions, including without limitation, real and personal property taxes assessed against the Hotel
along with related expenses incurred in connection with all such assessments; provided that any fines, penalties or interest added thereto which are a direct result of Management Company’s gross negligence or willful misconduct shall be paid by
Management Company from its own funds and shall not be treated as Deductions; 
  
 12. All costs and expenses incurred in order to obtain and keep in full force and effect any licenses and permits required for the operation of the Hotel and related facilities, including without limitation, liquor
licenses for the sale of alcoholic beverages at all restaurants, bars, lounges, banquet rooms, meeting rooms and guest rooms at the Hotel; provided that any fines or penalties relating to maintaining such licenses and permits which are the direct
result of either Management Company’s or Owner’s gross negligence or willful misconduct shall be paid by such party from its own funds and shall not be treated as Deductions; and 
  
 13. Such other costs and expenses incurred by Management
Company as are specifically provided for elsewhere in this Agreement (including, without limitation, Group Services and certain reimbursable expenses of Management Company’s corporate staff described in Section 6.03) or are otherwise reasonably
necessary for the proper and efficient operation of the Hotel, unless any such costs and expenses are specifically stated not to be Deductions under any provision of this Agreement. 
  
 The term “Deductions” shall not include (i) debt service payments pursuant to any Secured Loan;
nor (ii) any expenditures by Owner in the acquisition or conversion of the Hotel; nor (iii) the cost of external (third party) audits of Hotel operations and/or with 

  

 7 

 
respect to the Owner entity itself; nor (iv) other recurring and non-recurring ownership costs, such as Owner’s entity administration and servicing
costs nor (v ) any ground or air rights lease rentals or other rental payments pursuant to any ground or air rights lease in connection with the Hotel; all of which shall be paid by Owner from its own funds, and not from Gross Revenues nor from the
Reserve. 
  
 Owner shall have the meaning set forth in the
preamble. 
  
 Owner-Funded Capital Expenditures shall have the
meaning set forth in Section 8.03. 
  
 Owner’s Investment
means the sum of (i) $                            , being the price paid by Eagle to acquire (directly
or indirectly) all membership interests in Lessor, the sole asset of which is the Hotel, including closing costs and conversion costs and pre-opening expenses and fees, plus (ii) Additional Invested Capital. 
  
 Owner’s Priority means, with respect to each Fiscal Year during the Term
hereof (prorated for any partial Fiscal Year), an amount equal to nine and one-half percent (9.5%) of Owner’s Investment. 
  
 Prime Rate means the “prime rate” as published in the “Money Rates” section of The Wall Street Journal; however, if such rate is, at
any time during the Term of this Agreement, no longer so published, the term “Prime Rate” shall mean the average of the prime interest rates which are announced, from time to time, by the three (3) largest banks (by assets) headquartered
in the United States which publish a “prime rate.” 
  
 Profit Minimum shall have the meaning set forth in Section 6.04. 
  
 Proprietary Marks shall have the meaning set forth in Section 17.01. 
  
 Prospectus shall have the meaning set forth in Section 22.10. 
  
 Qualified Lender means any lender, such as any federally insured commercial or savings bank, national banking association, savings and loan association,
investment banking firm, commercial finance company, trust for securitized loans and other similar lending institution that is a holder of a Secured Loan that is a Qualified Loan. 
  
 Qualified Loan means any Secured Loan in which the initial principal amount, as of the date such Secured Loan is incurred,
when added to the current principal balance of all existing Secured Loans as of that date, is less than or equal to the greater of the following: 
  
 (i) Seventy percent (70%) of the sum of: (a)
$                         [the price paid by Owner to acquire the Hotel, including closing costs and conversion costs and
pre-opening expenses and fees], plus (b) Additional Invested Capital; or 
  
 (ii) Seventy percent (70%) of the fair market value of the Hotel as reasonably determined by Eagle’s board of directors; or 
  

 8 

 (iii) The existing balance of any Secured Loans encumbering the Hotel immediately prior
to the date of the incurrence of such Qualified Loan, plus commercially reasonable transaction costs (defined as all normal transaction costs to the extent actually incurred) associated with such refinancing up to an amount equal to four percent
(4%) of the principal amount of such Qualified Loan. 
  
 In addition, regardless
of whether or not the above tests set forth in clauses (i), (ii) and (iii) above are satisfied, (a) the existing (as of the Management Commencement Date) balance of any Secured Loan which is secured by a Mortgage existing as of the Management
Commencement Date shall be deemed to be a “Qualified Loan”; and (b) any Secured Loan which Management Company, in its reasonable discretion, has approved in writing shall be deemed to be a “Qualified Loan” (provided that an
approval by Management Company that a given Secured Loan shall be deemed to be a Qualified Loan hereunder shall apply only to the specific hotel or hotels which are described in such approval, and shall not be deemed to be an approval with respect
to other hotels, regardless of whether such Secured Loan by its terms permits the substitution or addition of such other hotels as security for such Secured Loan). 
  
 Related Person shall have the meaning set forth in Section 22.02 A. 
  
 Reserve shall have the meaning set forth in Section 8.02 A. 
  
 Sale of the Hotel means any sale, assignment, transfer or other disposition,
for value or otherwise, voluntary or involuntary, of Owner’s title to the Hotel or the site (either fee or leasehold title, as the case may be), but shall not include a collateral assignment intended to provide security for a loan. For purposes
of this Agreement, a “Sale of the Hotel” shall also include a lease (or sublease) of the entire Hotel or site. The phrase “Sale of the Hotel” shall also include any sale, transfer, or other disposition, for value or otherwise, in
a single transaction or a series of related transactions, of the controlling interest in the Owner or Eagle. If the Owner or Eagle, as the case may be, is a corporation, the phrase “controlling interest” shall mean the right to exercise,
directly or indirectly, fifty percent (50%) or more of the voting rights attributable to the shares of Owner (through ownership of such shares or by contract); provided, however, that in no event shall the transfer of “controlling
interest” refer to the acquisition of shares in a publicly traded corporation by passive investors that have no control or influence over the business decisions concerning the corporation. If Owner is not a corporation, the phrase
“controlling interest’ shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of Owner. Notwithstanding the foregoing, the term “Sale of the Hotel” shall not
include any sale, assignment, transfer or other disposition of the Hotel or the site by Owner to an Affiliate of Owner. 
  

 9 

 Sale Termination Fee means that amount payable by Owner to Management Company pursuant to Sections 20.01
D and E of this Agreement, which is equal to the following: 
  
 [to be inserted
if the Hotel was open and operating prior to the Management Commencement Date: 
  
 (a) for the Sale of the Hotel at any time during the first or second full Fiscal Year after the Management Commencement Date, the product
of five and one-half (5.5) times the sum of the aggregate Base Management Fees and Incentive Fees earned by Management Company during the most recent twelve (12) month period immediately preceding the Sale of the Hotel (such period is referred to as
the “Test Period” and the collective management fees earned during the Test Period are referred as the “Existing Twelve Month Management Fees”); provided, that, if any portion of the Test Period relates to operations of the Hotel
occurring prior to the Management Commencement Date (the “Prior Period”), the financial operating results from the Prior Period shall be used as necessary to calculate what Management Company’s Existing Twelve Month Management Fees
would have been during any such Prior Period occurring in the Test Period for the purpose of calculating the Sale Termination Fee] 
  
 [BURR RIDGE ONLY - to be inserted if the Hotel was not open or operating prior to the Management Commencement Date: 
  
 (a) for the Sale of the Hotel at any time during the first
or second full Fiscal Year after the Management Commencement Date, the product of five and one-half (5.5) times the sum of the aggregate Base Management Fees and Incentive Fees projected for the most recent twelve (12) Accounting Periods immediately
preceding the Sale of the Hotel (such period is referred to as the “Test Period” and the collective management fees projected under this clause (a) or earned under clauses (b) through (f) below during the Test Period are referred as the
“Existing Twelve Month Management Fees”) as set forth in the pro forma attached hereto as Exhibit B]; 
  
 (b) for the Sale of the Hotel at any time during the third, fourth or fifth full Fiscal Year after the Management Commencement Date, the
product of three (3.0) times Existing Twelve Month Management Fees; 
  
 (c) for the Sale of the Hotel at any time during the sixth (6th) full Fiscal Year after the Management Commencement Date, the product of two (2.0) times the Existing Twelve Month Management Fees; 
  
 (d) for the Sale of the Hotel at any time during the seventh
(7th) full Fiscal Year after the Management Commencement Date, the product of one and one-half (1.5) times the Existing Twelve Month Management Fees; 
  
 (e) for the Sale of the Hotel at any time during the eighth (8th) full Fiscal Year after the Management Commencement Date, the product of
one (1.0) times the Existing Twelve Month Management Fees; or 
  
 (f) for the Sale of the Hotel at any time during the ninth (9th) full Fiscal Year after the Management Commencement Date and thereafter, there shall be no Sale Termination Fee. 
  

 10 

 Secured Loan means and includes (i) any indebtedness secured by a Mortgage; and (ii) all amendments,
modifications, supplements and extensions of any such Mortgage. 
  
 Software shall have the meaning set forth in Section 17.02. 
  
 Term shall have the meaning set forth in Section 5.01. 
  
 Termination means the expiration or sooner cessation of this Agreement. 
  
 Uniform System of Accounts means the Uniform System of Accounts for Hotels, Ninth Revised Edition, 1996, as revised and adopted by the Hotel Association of New York City, Inc. from time to time and as modified by
applicable provisions of this Agreement. 
  
 Unrelated Persons
shall have the meaning set forth in Section 22.02 A. 
  
 WARN Act
shall have the meaning set forth in Section 14.02. 
  
 Working
Capital means funds which are reasonably necessary for the day-to-day operation of the Hotel’s business, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, operating bank accounts, receivables,
payrolls, prepaid expenses and funds required to maintain Inventories, less accounts payable and accrued current liabilities. 
  
 ARTICLE III 
 THE HOTEL 
  

	3.01	Ownership 

  
 During the Term of this Agreement, Owner shall take all commercially reasonable action as is appropriate to assure that Owner has leasehold title to the land described in Exhibit A and all improvements thereon, free
and clear of all liens and encumbrances other than: 
  
 (i) Easements or other encumbrances that do not adversely affect the operation of the Hotel by Management Company and do not require the payment of any money; 
  
 (ii) Mortgages which are given to secure any one or more Qualified Loans; 
  
 (iii) Liens for taxes, assessments, levies or other public
charges which are not yet due or are being contested in good faith; 
  
 (iv) Amendments or modifications to any ground or air rights lease, if any, existing as of the Effective Date; provided, however, Owner shall obtain Management Company’s prior written consent prior to entering
into any such amendment or 

  

 11 

 
modification that would (i) materially adversely affect the rights and/or obligations of Management Company, and/or (ii) have an adverse impact on the amount
of the fees to be paid to Management Company under this Agreement; and 
  
 (v) All other matters or record affecting title as of the Effective Date. 
  
 It is acknowledged that Owner does not own fee title to the land described in Exhibit A and, therefore, cannot make any representations or
covenants with respect to the actions or inactions of the fee owner. However, Owner does agree that it shall (a) by its own action or inaction not do anything in violation of the provisions of this Section 3.01, and (b) use commercially reasonable
efforts to assure that the fee owner does not enter into any agreements or take any action in violation of the provisions of this Section 3.01. 
  

	3.02	Subordination of Management Agreement 

  
 Excluding Management Company’s right to receive payment of the Base Management Fee, this Agreement and all of the rights and benefits of Management
Company hereunder are, and shall be subject and subordinate to any Qualified Loan(s) which now or hereafter encumber the Hotel. This subordination provision shall be self-operative and no other or further instrument of subordination shall be
required. Management Company agrees, however, upon request of any Qualified Lender, duly to execute and deliver any subordination agreement requested by such Qualified Lender to evidence and confirm the subordination effected under this Section
3.02. 
  

	3.03	Non-Disturbance Agreement 

  
 Notwithstanding Section 3.02, Owner agrees that, prior to obtaining any Qualified Loan, it will use commercially reasonable good faith efforts to obtain
from each prospective holder or holders thereof a Non-Disturbance Agreement pursuant to which Management Company’s rights under this Agreement will not be disturbed as a result of a loan default stemming from non-monetary factors which (i)
relate to Owner and do not relate solely to the Hotel, and (ii) are not Defaults by Management Company under Article XVI of this Agreement. If Owner desires to obtain a Qualified Loan, Management Company, on written request from Owner, shall
promptly identify those provisions in the proposed loan documents which fall within the categories described in clauses (i) and (ii) above, and Management Company shall otherwise assist in expediting the preparation of an agreement between the
prospective holder and Management Company which will implement the provisions of this Section 3.03. 
  
 ARTICLE IV 
  
 Intentionally Deleted. 
  

 12 

 ARTICLE V 
 TERM 
  

	5.01	Term 

  
 This Agreement shall commence on the Effective Date, and, unless sooner terminated as provided in this Agreement, shall continue for a period ending one hundred and twenty (120) Accounting Periods after the Management
Commencement Date (the “Term”). Manager may extend the Term of this Agreement for one (1) five (5) year term beyond the initial term by providing written notice to Owner not less than 180 days prior to the expiration of the initial term
provided there exists no Event of Default as to Management Company under this Agreement at the time it gives such written notice to Owner. 
  

	5.02	Actions to be Taken upon Termination 

  
 Upon a Termination of this Agreement, the following shall be applicable: 
  
 A. Management Company shall, within sixty (60) days after Termination of this Agreement, prepare and deliver to Owner a
final accounting statement with respect to the Hotel, as more particularly described in Section 9.01, along with a statement of any sums due from Owner to Management Company pursuant hereto, dated as of the date of Termination. Within thirty (30)
days after the receipt by Owner of such final accounting statement, the parties will make whatever cash adjustments are necessary pursuant to such final accounting statement. The cost of preparing such final accounting statement shall be a
Deduction, unless the Termination occurs as a result of an Event of Default by either party, in which case the defaulting party shall pay such cost. Management Company and Owner acknowledge that there may be certain adjustments for which the
necessary information will not be available at the time of such final accounting, and the parties agree to readjust such amounts and make the necessary cash adjustments when such information becomes available; provided, however, that (unless there
are ongoing disputes of which each party has received notice) all accounts shall be deemed final as of one hundred eighty (180) days after such Termination. 
  
 B. As of the date of the final accounting referred to in subsection A above, Management Company shall release and transfer to Owner any of Owner’s
funds which are held or controlled by Management Company with respect to the Hotel, with the exception of funds to be held in escrow pursuant to Section 12.04 B and Section 14.02. During the period between the date of Termination and the date of
such final accounting, Management Company shall pay (or reserve against) all Deductions which accrued (but were not paid) prior to the date of Termination, using for such purpose any Gross Revenues which accrued prior to the date of Termination.

  
 C. Management Company shall make available to Owner such books
and records respecting the Hotel (including those from prior years, subject to Management Company’s reasonable records retention policies) as will be needed by Owner to prepare the accounting statements, in accordance with the Uniform System of
Accounts, for the Hotel for the year in which the Termination occurs and for any subsequent year. Such books and records shall not include: (i) employee records which must remain confidential either under applicable laws or regulations of any
governmental authority or agency having jurisdiction over such matters or under reasonable corporate policies of Management Company; or (ii) any Intellectual Property. 
  

 13 

 D. Management Company shall (to the extent permitted by law) assign to Owner, or to any other manager
employed by Owner to operate and manage the Hotel, all operating licenses, including any liquor licenses, for the Hotel which have been issued in Management Company’s name and in the event that such licenses are not assignable, Management
Company shall cooperate with Owner and any new manager of the Hotel in connection with the issuance of new licenses; provided that if Management Company has expended any of its own funds in the acquisition of any of such licenses, Owner shall
reimburse Management Company therefor if it has not done so already. 
  
 E. Owner agrees that Hotel reservations and any and all contracts made in connection with Hotel convention, banquet or other group services made by Management Company in the ordinary and normal course of business, for dates subsequent to
the date of Termination and at rates prevailing for such reservations at the time they were made, shall be honored and remain in effect after Termination of this Agreement. 
  
 F. Various other actions shall be taken, as described in this Agreement, including, but not limited to, the actions
described in Sections 12.04 B, 14.02, 17.01, 17.02, and 17.03. 
  
 G. Management Company shall cooperate with the new operator of the Hotel as to effect a smooth transition and shall peacefully vacate and surrender the Hotel to Owner. 
  
 The provisions of this Section 5.02 shall survive any Termination. 
  
 ARTICLE VI 
 COMPENSATION OF MANAGEMENT COMPANY 
  

	6.01	Management Fees 

  
 A. Base Management Fees. In consideration of the services to be performed during the Term of this Agreement by Management Company, Management Company
shall be paid a periodic base management fee (“Base Management Fee”) in the amount of three percent (3%) of Gross Revenues for each Accounting Period. Each such periodic fee shall be paid to Management Company (or retained by Management
Company as provided below) at such time as the final monthly report for such Accounting Period is submitted to Owner as provided in Section 6.02 A below. 
  
 B. Incentive Management Fees. In addition to the Base Management Fee and in consideration of the services to be performed during the Term of this
Agreement, Management Company shall be paid for each Fiscal Year (or partial Fiscal Year), subject to Section 6.02 B, an incentive fee (“Incentive Fee”) equal to ten percent (10%) of the amount by which Operating Profit for such Fiscal
Year (or partial Fiscal Year) exceeds Owner’s Priority (prorated on a daily basis for any partial Fiscal Year). Notwithstanding the foregoing to the contrary, Management Company shall not be entitled to receive any Incentive Fee in any Fiscal
Year with respect to which the distributions to Owner have not equaled or exceeded Owner’s Priority. 
  

 14 

 C. Total Fees Cap. Notwithstanding anything in this Agreement to the contrary, the total amount of Base
Management Fees plus Incentive Fees actually paid to Management Company during any Fiscal Year shall not exceed four and one-half percent (4.5%) of Gross Revenues (for purposes of this subsection C, referred to as the “Fee Cap”) for such
Fiscal Year (prorated for any partial Fiscal Year). The Fee Cap is not intended to limit or otherwise cap any other fees or amounts (other than the Base Management Fees and Incentive Fees as described in this subsection C) that may be paid to
Management Company under this Agreement unless such fees or amounts are specifically limited by the terms of this Agreement. 
  

	6.02	Accounting and Interim Payment 

  
 A. Subject to Section 6.01 C above, within twenty (20) days after the close of each Accounting Period, Management Company shall submit an accounting to
Owner showing Gross Revenues, Deductions, Operating Profit, and distributions thereof for such Accounting Period. Management Company shall transfer to Owner with each accounting any Operating Profit or other sums then available for distribution to
Owner and shall retain any periodic Base and Incentive Management Fees due Management Company. Such interim accountings shall be in the form of statements reasonably approved by Owner. Such interim accountings shall be in the form of statements
reasonably approved by Owner. Such interim accountings shall also be accompanied by: (i) a balance sheet; (ii) cash flow report compared against the Annual Operating Projection with appropriate narrative explanations of any significant exceptions
(deviations); (iii) supplemental profit and loss statement; (iv) a detailed monthly profit and loss statement and year-to-date profit and loss statement compared against the Annual Operating Projection with appropriate narrative explanations of any
significant exceptions (deviations); (v) department schedules of revenues and expenses; and (vi) rolling 30 and 60 day cash flow forecasts. 
  
 B. The calculation and payment of the Base Management Fees and the distribution of Operating Profit made with respect to each Accounting Period within a
Fiscal Year shall be accounted for cumulatively. The Incentive Fee, if any, for a particular Fiscal Year shall be paid to Management Company within one hundred five (105) days after the end of such Fiscal Year. Within sixty (60) days after the close
of each Fiscal Year, Management Company shall submit an accounting, as more fully described in Section 9.01 for such Fiscal Year to Owner, which accounting shall be controlling over the interim accountings. Any adjustments required for such Fiscal
Year by such final accounting shall be made by the parties within forty-five (45) days after receipt by Owner of such final accounting. 
  

	6.03	Reimbursements to Management Company 

  
 In addition to all other amounts for which Management Company is entitled to reimbursement from Owner pursuant to this Agreement, Owner agrees to
reimburse Management Company for all travel and out-of-pocket expenses (such as fax, postage, telephone and express mail) of the corporate staff (defined for purposes of this Section 6.03 as those employees who are not ordinarily located at the
Hotel) of Management Company and Management Company’s Affiliates, which are directly related to the services of such staff on behalf of the Hotel; provided, however, the reimbursements for such expenses shall be billed, as Deductions, to the
Hotel at cost (without duplication of those expenses included in Group 

  

 15 

 
Services) and such amounts are included in the Annual Operating Projection or otherwise approved by Owner. 
  

	6.04	Performance Termination 

  
 Upon sixty (60) days’ prior written notice to Management Company, Owner shall have the option to terminate this Agreement if the Hotel: (i) fails to
achieve Operating Profit equal to ninety (90%) of the Operating Profit estimated in the approved Annual Operating Projection (the “Profit Minimum”) in each of two (2) consecutive Fiscal Years (excluding the initial two full Fiscal Years
after the Management Commencement Date), or (ii) fails to maintain one hundred percent (100%) of the fair market share of revenue per available room for the Hotel’s competitive set as set forth on Exhibit C attached hereto during each of such
two (2) consecutive Fiscal Years as reported by Smith Travel Research (or similar reporting service in the event that Smith Travel Research reports are no longer available), and (iii) the fact that Management Company is failing to meet the tests set
forth in (i) or (ii) above is not the result of Force Majeure; provided that Management Company and Owner shall mutually agree upon appropriate adjustments to the Hotel’s competitive set as set forth on Exhibit C that may be necessary as a
result of such Force Majeure for purposes of determining whether Management Company has failed the test set forth in (ii) above. Notwithstanding the foregoing, Management Company shall have the right to cure any such failure to achieve Operating
Profit equal to the Profit Minimum during any Fiscal Year by paying to Owner the different between Operating Profit for such Fiscal Year and the Profit Minimum within sixty (60) days after the end of such Fiscal Year. 
  
 ARTICLE VII 
 WORKING CAPITAL AND FIXED ASSET SUPPLIES 
  

	7.01	Working Capital and Inventories 

  
 A. At the Management Commencement Date, Owner shall provide to Management Company the funds necessary to supply the Hotel with Working Capital and
Inventories in a minimum amount of $                         [FILL IN PER HOTEL] and shall at all times thereafter
maintain in the Hotel’s operating accounts a minimum balance in the amount of $                         [FILL IN
PER HOTEL] (or, if necessary, such greater amount to assure the uninterrupted and efficient operation of the Hotel, including, without limitation, sufficient funds to pay budgeted current liabilities as they fall due and to replace Inventories
as they are consumed, as set forth in the approved Annual Operating Projection) in accordance with the provisions of subsection B below. Working Capital so advanced shall remain the property of Owner throughout the Term of this Agreement, and
Management Company shall make no claim thereto. 
  
 B. To the
extent that the Working Capital becomes reduced to an amount less than $                         [FILL IN PER
HOTEL], additional funds in a sum equal to the difference between $                         [FILL IN PER HOTEL]
and the then Working Capital shall be provided by Owner within three (3) days after Management Company has given written notice to Owner of such reduction of Working Capital. 
  

 16 

	7.02	Fixed Asset Supplies 

  
 Owner shall provide such funds as Management Company may reasonably determine to be necessary to supply the Hotel with Fixed Asset Supplies. Fixed Asset
Supplies shall at all times be owned by, and be the sole property of, Owner, and Management Company shall make no claim thereto. 
  
 ARTICLE VIII 
 MAINTENANCE, REPLACEMENT AND
CHANGES 
  

	8.01	Routine Repairs and Maintenance 

  
 From and after the Management Commencement Date, Management Company shall maintain the Hotel in good repair and condition and in conformity with
applicable laws and regulations and in accordance with the Franchisor’s standards for the operation of the Hotel and shall make or cause to be made such routine maintenance, repairs and minor alterations, the cost of which can be expensed under
GAAP as applied to Owner, as Management Company, from time to time, deems necessary for such purposes. The cost of such maintenance, repairs and alterations shall be paid from Gross Revenues and shall be treated as a Deduction in determining
Operating Profit. The cost of non-routine repairs and maintenance, either to the Hotel building or its fixtures, furniture, furnishings and equipment (“FF&E”), shall be paid for in the manner described in Sections 8.02 and 8.03.

  

	8.02	Repairs and Equipment Reserve 

  
 A. Management Company shall establish, in respect of each Fiscal Year from and after the Management Commencement Date, a reserve escrow account in the
name of Owner (“Reserve”) in a bank approved by Owner. All disbursements and withdrawals from the Reserve shall be made by representatives of Management Company whose signatures have been authorized. The Reserve shall be in an amount equal
to the greater of: (i) 4% of Gross Revenues or (ii) the amount required under the Franchise Agreement for the Hotel or by any Qualified Lender, in a bank, savings and loan association or other financial institution designated by Owner to cover the
cost of: 
  
 1. Replacements and renewals to the
Hotel’s FF&E; and 
  
 2. Certain
non-routine repairs and maintenance to the Hotel building which are normally capitalized under GAAP, such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, and replacing folding walls and the like, but
which are not major repairs, alterations, improvements, renewals or replacements to the Hotel building’s structure or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, the cost
of which are Owner’s sole responsibility under Section 8.03. 
  
 B. All amounts from time to time in the Reserve, and all interest thereon, shall at all times be owned by, and be the exclusive property of, Owner, and Management Company shall 

  

 17 

 
make no claim thereto. Proceeds from the sale of FF&E that is no longer necessary for the operation of the Hotel shall be deposited in the Reserve, as
shall any interest which accrues on amounts placed in the Reserve. Neither (i) proceeds from the disposition of any FF&E, nor (ii) interest which accrues on amounts held in the Reserve, shall either (x) result in any reduction in the required
contributions to the Reserve set forth in 8.02 A above, or (y) be included in Gross Revenues. Management Company shall provide to Owner each month a copy of the bank statement relating to the Reserve and a reconciliation of such Reserve account.

  
 C. Management Company shall prepare an estimate
(“FF&E Estimate”) of the expenditures necessary for (i) replacement and renewal of the Hotel FF&E and (ii) building repairs of the nature contemplated by Section 8.02 A 2 during the ensuing Fiscal Year, and shall submit such
Estimate to Owner for Owner’s review and approval at the same time it submits the Annual Operating Projection described in Section 9.03. 
  
 D. Management Company shall from time to time make such substitutions and replacements of or renewals to FF&E and repairs to the Hotel of the nature
described in Section 8.02 A 2, as are provided for in the FF&E Estimate approved for such Fiscal Year by Owner pursuant to Section 8.02 C, provided that Management Company shall not expend more than the balance in the Reserve without the prior
approval of Owner. Management Company will endeavor to follow the applicable FF&E Estimate, but shall be entitled to depart therefrom (but not exceeding the Reserve balance), in its reasonable discretion, provided that (a) such departures from
the FF&E Estimate result from circumstances which could not reasonably have been foreseen at the time of the submission of such FF&E Estimate; and (b) such departures from the FF&E Estimate result from any of the following: emergency
circumstances; applicable legal requirements; the terms of any Franchise Agreement; and/or any other requirements for the continued safe and orderly operation of the Hotel; and (c) Management Company has submitted to Owner a revised FF&E
Estimate setting forth and explaining such departures. At the end of each Fiscal Year, any amounts then remaining in the Reserve shall be carried forward to the next Fiscal Year. 
  
 E. If any FF&E Estimate which is prepared for a given Fiscal Year would require funding in excess of the percentage of
Gross Revenues which is required under Section 8.02 A, Owner may elect one of the following: (i) agree to increase the percentage of Gross Revenues up to the level set forth in such FF&E Estimate, in order to provide the additional funds
required, such increases to be treated as Deductions; (ii) make a lump-sum contribution to the Reserve in the necessary amount and agree not to have such contribution reimbursed from Gross Revenues (in which case the amount of such contribution
shall be added to Additional Invested Capital if the same falls within the definition of that term as set forth above); and (iii) make a lump-sum contribution to the Reserve in the necessary amount, in which case such contribution plus interest (at
Prime Rate plus one percentage point per annum), shall be reimbursed to Owner from Gross Revenues in equal installments over a period of time mutually agreed upon by Owner and Management Company, and such installment repayments shall be Deductions.
If Owner elects not to agree to any of such options for excess funding of the Reserve, Management Company shall be entitled, at its option, to terminate this Agreement upon ninety (90) days’ written notice to Owner; however, such failure by
Owner shall not be deemed a Default by Owner unless such 

  

 18 

 
failure to provide excess funding will cause a default by Owner under Section 16.01.F of this Agreement. 
  

	8.03	Building Alterations, Improvements, Renewals and Replacements 

  
 A. Management Company shall prepare an annual estimate (“Building Estimate”) of the expenses necessary for major repairs, alterations,
improvements, renewals and replacements (which repairs, alterations, improvements and renewals are not routine maintenance, repairs and alterations referred to in Section 8.02) to the structural, mechanical, electrical, heating, ventilating, air
conditioning, plumbing and vertical transportation elements of the Hotel building, including any such Owner-Funded Capital Expenditures required under the Franchise Agreement (“Owner-Funded Capital Expenditures”) and shall submit such
Building Estimate to Owner for its approval at the same time the Annual Operating Projection described in Section 9.03 is submitted. Management Company shall not make any Owner-Funded Capital Expenditures without the prior written consent of Owner
except to the extent such expenditures are: (i) required by any law (including, without limitation, any law, ordinance, code or regulation of any governmental authority or agency having jurisdiction over the business or operation of the Hotel), or
(ii) otherwise required to avoid the risk of harm or further damage to persons or property. 
  
 B. The cost of all Owner-Funded Capital Expenditures shall be borne solely by Owner and shall not be paid from Gross Revenues or from the Reserve. The failure of Owner to provide funding for any Owner-Funded Capital
Expenditure described in clause (i) or (ii) of Section 8.03 A shall be a Default by Owner and Management Company shall be entitled to terminate this Agreement (along with other remedies it may have under this Agreement). 
  

	8.04	Liens 

  
 Management Company and Owner shall use their best efforts to prevent any liens from being filed against the Hotel which arise from any maintenance, changes, repairs, alterations, improvements, renewals or replacements
in or to the Hotel. They shall cooperate fully in obtaining the release of any such liens, and the cost thereof, if the lien was not occasioned by the fault of either party, shall be treated the same as the cost incurred pursuant to Section 8.03. If
the lien arises as a result of the fault of either party, then the party at fault shall bear the cost of obtaining the lien release. 
  

	8.05	Ownership of Replacements 

  
 All changes, repairs, alterations, improvements, renewals, or replacements to the Hotel made pursuant to this Article VIII shall be the property of Owner.

  

 19 

 ARTICLE IX 
 BOOKKEEPING AND BANK ACCOUNTS 
  

	9.01	Books and Records 

  
 Books of control and account shall be kept on the accrual basis and in material respects in accordance with the Uniform System of Accounts and GAAP with
the exceptions provided in this Agreement. Owner and Lessor and their respective independent auditors and other tax or financial consultants may, at reasonable intervals during Management Company’s normal business hours, examine such records.
Within thirty (30) days following the close of each Fiscal Year, Management Company shall furnish Owner a statement (the “Annual Operating Statement”) in reasonable detail summarizing the Hotel operations for such Fiscal Year and a
certificate of Management Company’s chief accounting officer certifying that such year-end statement is true and correct to the best of his or her knowledge and belief. If Owner raises no objections within thirty (30) days after receipt of the
Annual Operating Statement, the Annual Operating Statement shall be deemed to have been accepted by Owner. If Owner does raise any such objection, Owner shall arrange for an independent audit to be commenced within sixty (60) days after the date of
such objection, and shall diligently cause such audit to be completed within a reasonable period of time and the Management Company shall, at no expense to Management Company, cooperate with such audit. Owner shall pay all costs of such audit at its
sole expense (and not as a Deduction); however, if such audit establishes that Management Company has understated Operating Profit for that Fiscal Year by five percent (5%) or more, the reasonable costs and expenses of such audit shall be paid
directly by Management Company from its own funds and shall not be treated as Deductions. 
  

	9.02	Hotel Accounts: Expenditures 

  
 A. All funds derived from the operation of the Hotel shall belong to and be the property of Owner and shall be deposited by Management Company in bank
accounts established by Management Company for Owner in one or more banks approved by Owner. All disbursements and withdrawals from said accounts as required or permitted under this Agreement (i.e., the payment of all Deductions and the distribution
of Operating Profit) shall be made by bonded or insured representatives of Management Company whose signatures have been authorized. Reasonable petty cash funds and house banks, in amounts satisfactory to Owner, shall be maintained at the Hotel.

  
 B. All payments to be made by Management Company hereunder
shall be made from authorized bank accounts, from petty cash funds or from Working Capital provided by Owner pursuant to Section 7.01. Debts and liabilities incurred by Management Company as a result of its operation and management of the Hotel
pursuant to the terms hereof, whether asserted before or after Termination, will be paid by Owner to the extent funds are not available for that purpose from Gross Revenues. Management Company shall not be required to make any advance or payment to
or for the account of Owner except out of such funds, and Management Company shall not be obligated to incur any liability or obligation for Owner’s account without assurances that necessary funds for the discharge thereof will be provided by
Owner. 
  
 C. All bank accounts shall be owned by Owner and shall
be solely controlled and operated by Management Company as the agent of Owner; the agency status of Management Company shall be designated on the checks and drafts drawn on such bank accounts. 
  

 20 

	9.03	Annual Operating Projection 

  
 A. On or before the fifteenth day of November of each Fiscal Year, a preliminary draft of the budget (“Annual Operating Projection”), setting
forth Management Company’s reasonable estimate of Gross Revenues, Deductions, Operating Profit and such other information as Owner or a Qualified Lender may reasonably request for the Hotel for the forthcoming Fiscal Year, shall be prepared by
Management Company and submitted to Owner for its review and approval (which shall not be unreasonably withheld or delayed). In the event that Management Company is seeking reimbursement from Owner pursuant to Section 14.01.B(i) for the salaries,
wages and/or benefits of any officers or directors of Management Company or Management Company’s Affiliates who shall be regularly or temporarily employed or assigned on a full-time basis at the Hotel, this shall be shown as a separate line
item under the Deductions category of the Annual Operating Projection. On or before the first (1st) day of December
of each Fiscal Year, Management Company and Owner shall have a meeting to discuss the Annual Operating Projection; provided that Management Company shall submit the Annual Operating Projection to Owner at least fourteen (14) days in advance of such
meeting (or such meeting shall be rescheduled to a date that is at least fourteen (14) days after the submission of the Annual Operating Projection to Owner). If Owner does not approve the preliminary Annual Operating Projection in full, within
thirty (30) days of its receipt, Owner shall notify Management Company of each category of expenses (a “Category”) of which Owner does not approve. The preliminary Annual Operating Projection thereafter shall be revised as Owner and
Management Company may agree, and shall, upon Owner’s approval, constitute the approved Annual Operating Projection for the forthcoming Fiscal Year. In the event that Owner does not notify Management Company in writing within said 30-day period
that it does not approve of specified Categories, the preliminary Annual Operating Projection shall constitute the approved Annual Operating Projection for the forthcoming Fiscal Year. The approval of Owner shall not be required with respect to any
Category if, and to the extent that, the preliminary Annual Operating Projection with respect to such Category for a given Fiscal Year is, in all material respects (taking into account any extraordinary non-recurring items), the same as the Annual
Operating Projection for the preceding Fiscal Year as adjusted by the Consumer Price Index. 
  
 B. The Annual Operating Projection is an estimate only and Management Company shall, from time to time during each Fiscal Year as it deems appropriate, suggest revisions thereto for Owner’s review and approval.
Management Company will at all times give good faith consideration to Owner’s suggestions regarding any Annual Operating Projection. Management Company shall not, except as provided in Sections 8.03 A above and 9.03 C and 9.03 D below, depart
from any approved Annual Operating Projection, or make any expenditures or incur any expenses not provided for therein, without Owner’s prior approval. 
  
 C. If Owner and Management Company fail to mutually agree on any given Category or Categories in the preliminary Annual Operating Projection within
forty-five (45) days after the submission to Owner of the preliminary draft described in the first sentence of 9.03 A, Management Company shall continue to manage and operate the Hotel as follows until such agreement is reached: (i) with respect to
each Category in such preliminary Annual Operating Projection which has been approved or deemed approved by Owner, Management Company may make expenditures and incur obligations under such Category as so approved; and (ii) with 

  

 21 

 
respect to any Category which has not been approved by Owner, Management Company may continue to make expenditures and incur obligations under such Category
in accordance with the amounts provided for such Category in the Annual Operating Projection approved for the prior Fiscal Year, as adjusted by the Consumer Price Index, with such additional adjustments therein as shall be necessary to take into
account (x) any differences in occupancy which may be experienced in the current Fiscal Year as compared to the prior Fiscal Year with respect to those costs that are occupancy sensitive, and (y) any increased costs beyond the control of Management
Company for the same or comparable services or products. 
  
 D.
Owner and Management Company acknowledge that the Annual Operating Projection approved by Owner is an estimate only and that unforeseen circumstances such as, but not limited to, the costs of labor, materials, services and supplies, casualty,
operation of law, or economic and market conditions may make adherence to the Annual Operating Projection impracticable for certain Categories. If in the judgment of the Management Company the expenditures reasonably expected to be made in any of
the following Categories during the then current Fiscal Year exceed by five percent (5%) or more the amount budgeted for such Category in the then current Annual Operating Projection, Management Company shall notify Owner promptly in writing: Rooms;
Food, Beverage and Banquet; Telephone, Gift Shop, and other; Administrative and General; Advertising and Sales; Repairs and Maintenance; Salaries and Wages. Management Company shall, as soon as practicable thereafter, consult with, and advise, Owner
concerning expenditures for such Category or Categories. The Category under which any expenditure or obligation falls shall be determined in accordance with the Uniform System of Accounts. 
  

	9.04	Operating Deficits 

  
 If Management Company should anticipate any Operating Loss for any Accounting Period, Management Company shall immediately so advise Owner in writing,
setting forth the estimated amount of such deficiency and an explanation or justification therefor. 
  
 ARTICLE X 
 FRANCHISE AGREEMENT 
  
 During the Term of this Agreement, the Hotel shall be managed and operated in
strict compliance with the terms and conditions of the Franchise Agreement (including but not limited to all terms and conditions regarding confidentiality and operation of the Hotel), and Management Company, to the extent sufficient Working Capital
exists, shall at all times comply with the Franchise Agreement and advise and assist Owner in the performance and discharge of its covenants and obligations thereunder. Owner shall comply with any capital expenditure, product improvement plan,
operating standard changes or other requirements imposed from time to time by the Franchisor under the Franchise Agreement, the cost of which shall be paid in accordance with this Agreement. In the event of any conflicts between any provisions of
this Agreement and the Franchise Agreement, the provisions of the Franchise Agreement shall control. Owner acknowledges that Franchisor shall have the right to communicate directly with Management Company regarding day-to-day operation of the Hotel.
Owner shall not enter into any amendment, restatement or renewal of the Franchise Agreement which would in any event 

  

 22 

 
have an adverse impact on the amount of fees to be paid to Management Company under this Agreement without Management Company’s prior written approval,
which approval may be withheld in Management Company’s sole discretion. [insert additional provisions that applicable Franchise Agreement may require to be included] 
  
 ARTICLE XI 
 POSSESSION AND USE OF HOTEL 
  

	11.01 	Use 

  
 A. Management Company shall manage and operate the Hotel in accordance with this Agreement and the Franchise Agreement and shall in addition comply with and abide by all applicable laws, ordinances, and regulations.
[INSERT AS APPLICABLE – It is acknowledged and agreed that the liquor license(s) as to the Hotel shall be held in Owner’s/Management Company’s name.] 
  
 B. Provided that Owner shall first have employed a replacement manager for the Hotel satisfactory to and approved by the
“Franchisor” under the Franchise Agreement, Management Company shall have the option to terminate this Agreement at any time upon sixty (60) days’ written notice to Owner in the event of a withdrawal or revocation, by any lawful
governing body having jurisdiction thereof, of any material license or permit required for Management Company’s performance hereunder, if such withdrawal or revocation is due to circumstances beyond Management Company’s control or not
otherwise caused by the gross negligence or willful misconduct of Management Company, such termination to be effective as of the date such replacement manager has commenced management of the Hotel pursuant to its agreement with Owner. 
  

	11.02 	Owner’s Right to Inspect 

  
 Owner or its agent shall have access to the Hotel at any and all reasonable times for the purpose of protecting the same against fire or other casualty,
prevention of damage to the Hotel, inspection, making repairs, or showing the Hotel to prospective purchasers, tenants or mortgagees. Owner shall provide at least 24 hours’ notice to Management Company prior to exercising its rights under this
Section 11.02, except in the event of an emergency. 
  

	11.03 	Group Services 

  
 A. Subject to Section 11.03 B, Owner shall reimburse Management Company for certain other services (“Group Services”) as may from time to time
be provided to the Hotel by Management Company or Management Company’s Affiliates more efficiently on a group, rather than on an individual, basis and approved by Owner. The Group Services may include, without limitation, the following: (a)
marketing, advertising and promotion; (b) payroll processing, accounting and MIS support services; (c) recruiting, training, career development and relocation in accordance with Management Company’s or its Affiliates’ relocation plan; (d)
employee benefits administration; (e) engineering and risk management; (f) information technology; (g) legal support (such as license and permit coordination and standardized contracts); (h) 

  

 23 

 
purchasing arising out of ordinary hotel operations; and (i) such other additional services as are or may be, from time to time, furnished for the benefit of
Management Company’s hotels or in substitution for services now performed at Management Company’s individual hotels which may be more efficiently performed on a group basis. 
  
 B. Group Services shall consist of the actual cost of the services without mark-up or profit to Management Company or any
Affiliates, but shall include: (a) salary and employee benefit costs, (b) cost of equipment used in performing Group Services, and (c) overhead costs, reasonably allocated thereto of any office providing Group Services. Costs and expenses incurred
in providing Group Services shall be allocated equitably across hotel properties that Management Company manages that are provided Group Services, to the extent necessary and appropriate, and in the manner described in the Annual Operating
Projection approved by Owner. Notwithstanding anything herein to the contrary, the costs and expenses for Group Services shall not exceed the amounts for such services set forth in the Annual Operating Projection approved by Owner. Costs of Group
Services (approved by Owner pursuant to this subsection B) shall be Deductions. In addition, if equipment is installed and maintained at the Hotel in connection with the rendition of any approved Group Services, all costs thereof will be charged to
the operation of the Hotel, as determined by Management Company in good faith and consistent with GAAP. Unless a Group Service is approved in the Annual Operating Projection, such service(s) shall be performed at the Hotel and the cost thereof shall
be a Deduction as set forth in the approved Annual Operating Projection. 
  
 C. In no event shall Management Company’s Affiliates be deemed a party to this Agreement or responsible in any way for Management Company’s obligations pursuant to this Agreement by virtue of providing any
services described in this Agreement (including, without limitation, Group Services) to Management Company and Owner reimbursing Management Company for the expenses incurred in connection therewith. Management Company shall make (or cause to be
made) available to Owner the books of any such Affiliate providing any such services to the extent necessary to complete an audit arranged by Owner pursuant to Section 9.01 of this Agreement. 
  

	11.04 	Rebates 

  
 Any rebates, refunds or similar payments (for purposes of this Section 11.04, collectively referred to as “rebates”) made to Management Company or any of its Affiliates from vendors or others providing
services or goods to the Hotel shall be returned to the Hotel bank account or Reserve, as the case may be, from which payment for such services or goods was made and shall constitute Gross Revenues. Any such rebates made to Management Company or any
of its Affiliates from vendors or others for goods and services provided to a group of hotels operated by Management Company or its Affiliates, including the Hotel, shall be equitably allocated among such hotels and the Hotel’s equitable share
thereof shall be returned to the Hotel bank account or Reserve, as the case may be, from which payment for such services or goods was made and shall constitute Gross Revenues. 
  

 24 

 ARTICLE XII 
 INSURANCE 
  

	12.01 	Property and Operational Insurance 

  
 A. Management Company shall, commencing with the Management Commencement Date and continuing throughout the Term of this Agreement, procure and maintain,
as a Deduction and upon the terms set forth in the Lease Agreement, with insurance companies (i) reasonably acceptable to Owner, (ii) required by a Qualified Lender, and (iii) licensed to underwrite the type of insurance being issued in the
jurisdiction in which such insurance policy shall be delivered, a minimum of the following insurance to the extent reasonably commercially available. Subject to Owner’s and any Qualified Lender’s prior approval (in their sole discretion),
Management Company may procure and maintain such insurance as required in this Section 12.01 by legally qualifying itself as a self insurer: 
  
 1. Insurance on the Hotel (including contents) against loss or damage by fire, lightning and all other risks covered by the usual standard
extended coverage endorsements, with deductible limits approved by Owner, in an amount not less than one hundred percent (100%) of the replacement cost thereof; 
  
 2. Insurance against loss or damage from explosion of boilers, pressure vessels, pressure pipes and
sprinklers, to the extent applicable, installed in the Hotel; 
  
 3. Insurance on the Hotel (including contents) against loss or damage by earth movement, with deductible limits approved by Owner, in an amount to be reasonably determined by Owner consistent with local market
conditions; 
  
 4. Business interruption
insurance covering loss of profits and necessary continuing expenses for interruptions caused by any occurrence covered by the insurance referred to in Section 12.01 A1, A2, and A3, of a type and in amounts and with such deductible limits as are
approved by Owner; 
  
 5. Workers’
compensation and employer’s liability insurance as may be required under applicable laws and employment-related practices insurance covering all of Management Company’s employees at the Hotel in each case, with such deductible limits as
are approved by Owner; 
  
 6. Fidelity bonds, in
amounts and with deductible limits approved by Owner, covering Management Company’s employees in job classifications which Owner reasonably requests be bonded, and comprehensive crime insurance to the extent that Management Company and Owner
mutually agree it is necessary for the Hotel; 
  
 7. Comprehensive General Public Liability insurance (including protective liability coverage on operations of independent contractors engaged in construction, operation or management, blanket contractual liability insurance, liquor law
legal liability insurance, products liability insurance, and garage keeper’s liability insurance), on an “occurrence” basis for the benefit of Owner and Management Company against claims for “personal injury” liability,
including, without limitation, bodily injury, death, or 

  

 25 

 
property damage liability, with a limit of not less than Twenty Five Million Dollars ($25,000,000) in the event of “personal injury” to any number
of persons or damage to property arising out of any one occurrence; such insurance, which may be furnished under a “primary policy” (which shall include an aggregate per location endorsement) and an “umbrella” policy or policies,
shall also include: (i) coverage against liability for bodily injuries or property damage arising out of the use by or on behalf of Owner or Management Company of any owned, non-owned, or hired automotive equipment for a limit not less than that
specified above, and (ii) if applicable, garage keeper’s legal liability insurance in the amount sufficient to prevent Owner from becoming a co-insurer; 
  

8. Crime insurance and errors and omissions insurance insuring Owner against intentional or negligent acts or omissions of Management
Company or its employees, such insurance to be in such amounts, with such carriers, and under such policies, as may from time to time be requested and approved by Owner; and 
  
 9. Such other insurance in amounts as Management Company and Owner, in their reasonable judgment, mutually
deem advisable for protection against claims, liabilities and losses arising out of or connected with the operation of the Hotel. Notwithstanding anything in this Agreement to the contrary, the provisions of this Article XII shall be subject to the
reasonable requirements of a Qualified Lender. 
  

	12.02 	General Insurance Provisions 

  
 A. All policies of insurance required under Section 12.01, Paragraphs 1-4 shall be carried in the name of Management Company, Owner and the Qualified
Lender; and losses thereunder shall be payable to the parties as their respective interests may appear. All insurance described in Section 12.01, Paragraphs 6-8 shall name Owner as an additional insured. 
  
 B. Owner and Management Company shall release each other, and their
respective authorized representatives, agents and employees, from any claims for damage or loss to any person or to the Hotel that may be caused by or result from risks insured under any insurance policies carried by said parties and in force at the
time any such damage or loss occurs, to the extent that such release does not impair any insurance coverage then in effect. To the extent waivers of subrogation are acceptable to the insurance carrier each policy of insurance shall provide that the
carrier shall have no right of subrogation against either party hereto, their authorized representatives, agents or employees by separate endorsement. If extra premium is charged for such waiver of subrogation, the party for whom such waiver is
obtained shall pay the other party such extra premium within ten (10) business days after request therefore together with a copy of the invoice evidencing the same. 
  

	12.03 	Coverage 

  
 All insurance described in Section 12.01 may be obtained by Management Company by endorsement or equivalent means under its blanket insurance policies, provided that such blanket policies are satisfactory to and
approved by Owner. Management Company may self-insure or 

  

 26 

 
otherwise retain such risks or portions thereof as it does with respect to other similar hotels it owns, leases or manages. 
  

	12.04 	Cost and Expense 

  
 A. Insurance premiums and any costs or expenses with respect to the insurance described in Section 12.01 shall be treated as Deductions in determining
Operating Profit. 
  
 B. Upon Termination of this Agreement, an
escrow fund in an amount reasonably acceptable to Management Company shall be established from Gross Revenues (or, if Gross Revenues are not sufficient, with funds provided by Owner) to cover the amount of any costs which will eventually have to be
paid by either Owner or Management Company with respect to insurance premiums, if any, not fully billed and paid for prior to Termination and pending or contingent claims, including those which arise after such Termination for causes arising during
the Term of this Agreement. Upon the final disposition of all such pending or contingent claims, any unexpended funds remaining in such escrow shall be paid to Owner. 
  

	12.05 	Policies and Endorsements 

  
 A. The party procuring insurance hereunder shall deliver to the other party certificates of insurance with respect to all policies so procured, including
existing, additional and renewal policies and, in the case of insurance about to expire, shall deliver certificates of insurance with respect to the renewal policies not less than ten (10) days prior to the respective dates of expiration.

  
 B. All policies of insurance provided for under this Article
XII shall, to the extent obtainable, have attached thereto an endorsement that such policy shall not be canceled, non-renewed or to the extent reasonably commercially available, materially changed without at least thirty (30) days’ prior
written notice to Owner and Management Company. 
  
 C. Owner may,
at its option, procure and maintain the insurance specified in Section 12.01, Paragraphs 1 through 4, with insurance companies reasonably acceptable to Management Company, subject to the following: (i) all such policies of insurance shall be carried
in the name of Owner, with Management Company as a named insured, (ii) any property losses thereunder shall be payable to the respective parties as their interests may appear, and (iii) premiums for such insurance coverage shall be treated as
Deductions, provided that if the cost of such insurance procured by Owner exceeds the cost of Management Company’s comparable coverage, all such excess costs shall be the sole responsibility of Owner and shall not be a Deduction. Should Owner
exercise its option to procure the insurance described in this subsection C, Owner hereby waives its rights of recovery from Management Company and its Affiliates (and their respective directors, officers, shareholders, agents and employees) for
loss or damage to the Hotel and any resultant interruption of business. 
  

 27 

	12.06 	Indemnification 

  
 A. Owner shall indemnify, defend and hold Management Company and its directors, officers, shareholders, employees and agents (collectively,
“Management Company Indemnified Parties”), harmless from and against all claims, causes of action, losses, attorneys’ fees and other costs and expenses (including, but not limited to, liquidated damages, transfer fees, and termination
costs), liabilities and damages (collectively referred to as “Claims”) imposed upon or incurred by or asserted against Management Company Indemnified Parties under, or on account of, or with respect to this Agreement arising out of or
resulting from: (i) Management Company’s due performance of this Agreement, or (ii) the failure by Owner to provide necessary funds to the Reserve or make necessary Owner-Funded Capital Expenditures required under this Agreement 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 Hotel, except to the extent the condition giving rise to
such required expenditures is the result of Management Company’s gross negligence or willful misconduct. Without limiting the generality of the foregoing, Owner shall indemnify, defend and hold Management Company Indemnified Parties harmless
from and against all Claims imposed upon or incurred by or asserted against Management Company Indemnified Parties under or with respect to the Franchise Agreement which arise as a result of: (a) any default by Owner under the terms of this
Agreement or the Franchise Agreement (or related “Owner Agreement”) unless such default is a result of gross negligence or willful misconduct on the part of Management Company; (b) the transfer by Owner of the Hotel or any interest of
Owner in the Hotel, or (c) the failure by Owner to provide necessary funds to the Reserve or make necessary Owner-Funded Capital Expenditures 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 Hotel. 
  
 B. Owner shall indemnify, defend and hold Management Company Indemnified Parties harmless from and against all Claims arising out of or resulting from all
liabilities which accrued (or which stem from events which occurred) prior to the Management Commencement Date (referred to as “Prior Liabilities”). Any such Prior Liabilities shall be paid for by Owner (not from Gross Revenues nor from
the Reserve) and shall not be treated as Deductions. 
  
 C.
Management Company agrees to indemnify, defend and hold Owner and its directors, officers, shareholders, employees and agents (collectively “Owner Indemnified Parties”), harmless from and against each Claim which is not covered by
insurance proceeds, to the extent such Claim results from (i) the fraud, willful misconduct or gross negligence of Management Company, or (ii) Employee Claims based upon a substantial violation by Management Company of employment laws or that are a
direct result of the corporate policies of Management Company, or (iii) the knowing or reckless placing, discharge, leakage, use or storage of hazardous materials in violation of applicable environmental laws on or in the Hotel by Management
Company, or (iv) the breach by Management Company of this Agreement (including action taken by Management Company beyond the scope of its authority under this Agreement) which breach is not timely cured by Management Company in accordance with
Article XVI. 
  
 D. The provisions of this Section 12.06 shall
survive Termination of this Agreement. 
  

 28 

 ARTICLE XIII 
 REAL ESTATE AND PROPERTY TAXES 
  

	13.01 	Impositions 

  
 During the Term of the Agreement all real estate or ad valorem property taxes, assessments, inventory and personal property taxes and similar charges on or relating to the Hotel (“Impositions”) following or
allocable to the period following the Management Commencement Date shall be paid by Management Company, to the extent sufficient Working Capital exists, from Gross Revenues before any fines, penalties, or interest are added thereto or liens are
placed upon the Hotel, unless payment is in good faith being contested and enforcement thereof is stayed. Management Company, either in its own name or, if legally required, in Owner’s name, may contest by appropriate proceedings conducted in
good faith and with due diligence the amount, validity or application in whole or in part of any such Imposition or any lien therefor, and Owner shall have the right to participate in any such proceedings. In addition, Owner shall have the right to
contest, or cause Management Company to contest, the amount, validity or application in whole or in part of any such Imposition or any lien therefore. In the event Gross Revenues are likely to be insufficient to pay such Impositions when due,
Management Company shall so advise Owner no later than thirty (30) days prior to the due date of such Impositions in order to provide Owner sufficient time in which to provide funds sufficient for the payment of such Impositions. Management Company
shall also, no later than thirty (30) days prior to the date payment is due or three (3) days following the written request from Owner, furnish Owner with copies of official tax bills and assessments and evidence of payment or contest thereof. Any
refund or rebate of any Impositions shall be credited to Operating Profit in the Fiscal Year in which such refund is received. All reasonable costs incurred in connection with any such negotiations or proceedings shall constitute Deductions for the
year in which they are paid. Notwithstanding the foregoing, no such contest shall be conducted if it will in any way endanger title to the Hotel, the land on which the Hotel is located or Owner’s interest in the Hotel, or create a cloud on
title to any of the foregoing or constitute a default under any financing secured by the Hotel, or otherwise expose Owner to the risk of criminal liability and any such contest may be conducted upon the terms set forth in Article XII of the Lease
Agreement. Owner shall within thirty (30) days of receipt of evidence of payment or contest furnish Management Company with copies of official tax bills and assessments and of payment or contest thereof. All Impositions shall constitute Deductions
from Gross Revenues in determining Operating Profit provided, however, that any fines, penalties or interest added thereto to the extent resulting from Owner’s acts or omissions shall be paid by Owner at its sole expense. 
  

	13.02 	Owner’s Responsibility 

  
 “Impositions” shall not include the following, all of which shall be paid solely by Owner, not from Gross Revenues nor from the Reserve: (1) Any
income, excess profits or revenue taxes of Owner or any person, firm or entity as a partner of Owner; (2) taxes, assessments or similar charges imposed upon or levied against the Hotel or that certain real property described on Exhibit A for
the costs of public improvements, including, without limitation, roads, sidewalks, public lighting fixtures, utility lines, storm sewers, drainage facilities and similar improvements; 

  

 29 

 
(3) “Impact Fees” which are required of Owner as a condition to the issuance of site plan approval, zoning variances or building permits; and (4)
“Tax-increment financing” or similar financing whereby the municipality or other taxing authority has assisted in financing the construction of the Hotel by temporarily reducing or abating normal Impositions in return for substantially
higher levels of Impositions at later dates. 
  
 ARTICLE XIV

 HOTEL EMPLOYEES 
  

	14.01 	Employees 

  
 A. Management Company shall have the discretion and obligation to hire, promote, supervise, direct, train all employees at the Hotel, to fix their terms of compensation and, generally to establish and maintain
policies relating to employment at the Hotel. All such employees shall at all times be the employees of Management Company and not of Owner, and Owner shall have no responsibility or control respecting such employees unless otherwise specified in
this Agreement. No collective bargaining agreements will be signed without Owner’s approval. Management Company shall inform Owner as to the name, background, and qualifications of the Hotel’s General Manager and Director of Sales. If
Management Company desires to change the General Manager or Director of Sales, Management Company shall endeavor to give Owner at least forty-five (45) days’ prior notice, if feasible, of such change stating the reasons for such change and
informing Owner of the name, background, and qualifications of any replacement General Manager or Director of Sales. Owner shall have the right to interview the proposed replacement General Manager or Director of Sales and shall be given the
opportunity to meet with the appropriate senior executives of Management Company to discuss the advisability of effectuating any proposed hiring, dismissal or transfer and any possible alternatives thereto. Any replacement General Manager or
Director of Sales shall be subject to Owner’s prior approval, which approval shall not be unreasonably withheld or delayed. Management Company shall consider in good faith the opinions and requests of Owner with respect to such matters, and, if
Management Company elects not to implement any such request, Management Company shall explain its decision to Owner in reasonable detail. Owner acknowledges and approves
                                     as General Manager and
                                        
as Director of Sales as of the Management Commencement Date. 
  
 B. Owner shall reimburse Management Company for: (i) salaries, wages and/or benefits of any officers, directors or employees of Management Company or Management Company’s Affiliates who shall be regularly employed or temporarily
assigned on a full-time basis at the Hotel and (ii) personnel of Management Company or Management Company’s Affiliates not employed at the Hotel providing information systems support or legal, accounting or tax services to Management Company in
connection with the operation of the Hotel (without duplication of reimbursements included in Group Services). All costs and expenses described under this Subsection B shall not exceed the amount for such services set forth in the approved Annual
Operating Projection without the written approval of Owner. 
  

 30 

 C. Management Company and Owner agree to cooperate with each other to attempt to avoid any
disqualification of qualified employee benefit plans of either of them to the extent such plans may be affected by the provisions of this Agreement or the services provided hereunder; provided, however, that neither Management Company nor Owner
shall be required to change the terms of any such plan as part of such cooperation. 
  
 D. All personnel employed at the Hotel shall be recruited and trained by Management Company in a manner consistent with Management Company’s practices at other comparable hotels managed and operated by Management
Company. 
  

	14.02 	Termination 

  
 A. At Termination, other than by reason of an Event of Default by Management Company hereunder, an escrow fund shall be established from Gross Revenues (or, if Gross Revenues are not sufficient, with funds provided by
Owner) to reimburse Management Company for all costs and expenses incurred by Management Company which arise out of either the transfer or the termination of employment of Management Company’s employees at the Hotel, such as reasonable transfer
costs, unemployment compensation, other employee liability costs (including without limitation costs incurred pursuant to the Worker Adjustment and Retraining Notification Act of 1990 (as amended, the “WARN Act”)) and a reasonable
allowance for severance pay for Executive Employees (as defined below) of the Hotel who do not continue to be employed with respect to the Hotel and who will not be transferred to another hotel owned or managed by Management Company. The amount of
such allowance for severance shall not exceed an amount equal to Management Company’s then current severance benefit for such terminated Executive Employees and that which is customary in the industry, unless Owner otherwise approves. As used
herein, the term “Executive Employees” shall mean each member of the senior executive staff and each department head of the Hotel. 
  
 B. Upon sixty (60) days’ prior written notice to Management Company, Owner may terminate this Agreement in the event Management Company is no longer
an “eligible independent contractor” as such term is defined in Section 22.02 or in the event there is a change of control of Management Company [other than to an Affiliate(s) of William P. Butler and/or Dan T. Fay] without Owner’s
approval. Termination by Owner under this subsection B. shall not be deemed a Default by Management Company nor give rise to the payment of a Sale Termination Fee. 
  
 C. Except as to liabilities or claims which have accrued or arisen prior to, or as a result of, Termination and except for
those provisions hereof which are expressly stated to survive Termination, all obligations hereunder shall cease effective upon the Termination hereof. 
  

	14.03 	Employee Claims 

  
 A. Management Company shall pay from its own funds, and not from Gross Revenues, for any Employee Claim and for the defense of any Employee Claim which:
(i) is a substantial violation of the standards of responsible labor relations as generally practiced by prudent owners or operators of similar hotel properties in the general geographic area of the 

  

 31 

 
Hotel, or (ii) is not the isolated act of individual employees, but rather is a direct result of corporate policies or systematic action of Management
Company which either encourage or fail to discourage such conduct. In addition, Management Company shall indemnify, defend and hold harmless Owner from and against any fines or judgments arising out of such conduct, and all litigation expenses
(including reasonable attorneys’ fees and expenses) incurred in connection therewith. Any dispute between Owner and Management Company as to whether or not certain conduct by Management Company is not in accordance with the aforesaid standards
shall be resolved by arbitration. 
  
 ARTICLE XV 
 DAMAGE AND CONDEMNATION 
  

	15.01 	Damage and Repair 

  
 A. If, during the Term hereof, the Hotel is damaged or destroyed by fire, casualty, or other cause, Owner shall, with all reasonable diligence, to the
extent that proceeds from the insurance described in Section 12.01 are available (subject to the provisions of any Mortgage encumbering the Hotel) for such purpose, repair or replace the damaged or destroyed portion of the Hotel to substantially the
same condition as existed previously; provided that Owner shall have no obligation to repair or replace the damaged or destroyed portion of the Hotel if: (i) such damage, destruction or casualty occurs within two (2) years of the expiration of the
Term, (ii) such damage, destruction or casualty is in excess of sixty percent (60%) of the “fair market value” of the Hotel as agreed by Owner and Management Company, and (iii) Lessor elects not to rebuild the Hotel. In the event that the
conditions set forth in (i), (ii), and (iii) of the preceding sentence are satisfied, Owner may terminate this Agreement provided that all amounts due to Management Company hereunder in connection with such termination shall be paid by Owner. A
termination under this Section 15.01 A shall not be a Default and no termination fees shall be paid to Management Company. 
  
 B. In the event damage or destruction to the Hotel from any cause materially and adversely affects the operation of the Hotel and Owner fails to timely
(subject to unreasonable delays caused by Management Company, including unreasonable delays in adjusting the insurance claim with the carriers which participate in Management Company’s blanket insurance program, and subject to Force Majeure
delays) commence and complete the repairing, rebuilding or replacement of the same so that the Hotel shall be substantially the same as it was prior to such damage or destruction, Management Company may, at its option, elect to terminate this
Agreement upon ninety (90) days’ written notice. Additionally, if the Franchise Agreement is terminated due to Owner’s failure to repair and restore the Hotel, this Agreement shall terminate, effective upon the termination of the Franchise
Agreement. 
  

	15.02 	Condemnation 

  
 A. If all or substantially all of the Hotel is taken in any eminent domain, condemnation, compulsory acquisition, or similar proceeding by any competent
authority for any public or quasi-public use or purpose, this Agreement shall terminate as of the date Management Company ceases to have physical possession of the Hotel. Any award for such taking or 

  

 32 

 
condemnation is to be paid to Owner or Lessor, as provided in the Lease Agreement, provided that Management Company may advance and collect any claims to
which it may be entitled as a result of such taking in accordance with the terms of Section 15.02 C. 
  
 B. In the event a portion of the Hotel shall be taken by the events described in Section 15.02 A or the entire Hotel is affected on a temporary basis but
the result is not to make it unreasonable to continue to operate the Hotel, this Agreement shall not terminate. In the event of any partial or temporary taking as described in this Section 15.02 B, the entire amount of any award made for such
condemnation or taking shall be paid to Lessor; provided, however that Owner shall (consistent with Section 1.05) use commercially reasonable efforts to cause Lessor at Lessor’s cost to restore (with all reasonable dispatch) the untaken portion
of the Hotel, or the portion of the Hotel temporarily taken, so that the Hotel constitutes a complete architectural unit of the same general character and condition (as nearly as may be possible under the circumstances) as the Hotel existing
immediately prior to the condemnation. 
  
 C. All condemnation
awards or payments in lieu thereof for the value of the land and improvements so taken shall be the sole and exclusive property of Owner or Lessor, as provided in the Lease Agreement. Management Company may make a claim to the condemning authority
for its loss of business arising from the events described in this Section 15.02, but only to the extent that such claim in no way prejudices, diminishes, reduces, or impairs Owner’s or Lessor’s rights under the preceding sentence.

  
 ARTICLE XVI 
 DEFAULTS 
  

	16.01 	Default 

  
 Each of the following shall constitute a “Default,” to the extent permitted by applicable law: 
  
 A. The appointment of a receiver, trustee, or custodian for all or any substantial part of the property of Management Company or Owner, as the case may
be, if such appointment is not set aside or vacated within sixty (60) days. 
  
 B. The commencement by Management Company or Owner, as the case may be, of any voluntary case or proceeding under present or future federal bankruptcy laws or under any other bankruptcy, insolvency, or other laws
respecting debtor’s rights. 
  
 C. The making of a general
assignment by Management Company or Owner, as the case may be, for the benefit of its creditors. 
  
 D. The entry against Management Company or Owner, as the case may be, of any “order for relief” or other judgment or decree by any court of
competent jurisdiction in any involuntary proceeding against Management Company or Owner, as the case may be, under any present or future federal bankruptcy laws or under any other bankruptcy, insolvency, or other 

  

 33 

 
laws respecting debtor’s rights, if such order, judgment, or decree continues unstayed and in effect for a period of sixty (60) consecutive days.

  
 E. The failure of Management Company or Owner, as the case may
be, to make any payment to be made in accordance with the terms hereof within five (5) business days after written notice, when such payment is due and payable. 
  

F. Receipt by the Franchisee of any notice from the Franchisor claiming or alleging any material default under the Franchise Agreement, if such default
is due to any act or omission of Owner or Management Company, as the case may be, and is not cured, to the satisfaction of the Franchisor within fifteen (15) days following the Franchisee’s receipt of such notice (or, if such default cannot
reasonably be cured within fifteen (15) days and Owner or Management Company, as the case may be, immediately proceeds with due diligence to cure such default, then within such additional period of time as is reasonably required for such cure,
taking into account the termination provisions of the Franchise Agreement). 
  
 G. The failure of Owner to provide to Management Company sufficient Working Capital to operate the Hotel as required by Article VII within three (3) days after written notice from Management Company of the need for
such Working Capital. 
  
 H. The failure of Management Company to
comply with any of the covenants set forth in Section 22.02 A. 
  
 I. The failure of Management Company or Owner, as the case may be, to perform, keep or fulfill any of the other covenants, undertakings, obligations, or conditions set forth in this Agreement, and the continuance of such default for a
period of thirty (30) days after notice of said failure, or if such default cannot be reasonably cured within said 30-day time period, the failure of the defaulting party to commence the cure of such Default within said 30-day period or thereafter
the failure to diligently pursue such efforts to completion. 
  

	16.02 	Event of Default 

  
 Upon the occurrence of any Default by either party (referred to as the “defaulting party”) under Section 16.01 A, B, C, D or H, such Default
shall immediately and automatically, without the necessity of any notice to the defaulting party, constitute an “Event of Default” under this Agreement. Upon the occurrence of any Default by a defaulting party under Section 16.01 E, F, G
or I, such Default shall constitute an “Event of Default” under this Agreement if the defaulting party fails to cure such Default within the respective cure or payment period (as specified in the applicable Paragraph) after written notice
from the non-defaulting party specifying such Default and demanding such cure or payment; provided, however, that if a Default under Section 16.01 I is such that it cannot reasonably be cured within said 30-day period, an “Event of
Default” shall then occur if the defaulting party fails to commence the cure of such Default within the specified 30-day period or thereafter fails to diligently pursue such efforts to completion. 
  

 34 

	16.03 	Remedies upon Event of Default 

  
 Upon the occurrence of an Event of Default, the non-defaulting party shall have the right to pursue any one or more of the following courses of action:
(i) in the event of a material breach by the defaulting party of its obligations under this Agreement, to terminate this Agreement by written notice to the defaulting party, which Termination shall be effective as of the effective date which is set
forth in said notice (provided that said effective date shall be at least thirty (30) days after the date of said notice; or, if the defaulting party is the employer of all or a substantial portion of the employees at the Hotel, the 30-day period
shall be extended to such period of time as may be necessary under applicable law pertaining to termination of employment); and (ii) to institute any and all proceedings permitted by law or equity, including, without limitation, actions for specific
performance and/or damages. Upon the occurrence of a Default by either party under Section 16.01 E, the amount owed to the non-defaulting party shall accrue interest, at the rate described in Section 22.03, from and after the date on which such
payment was originally due to the non-defaulting party. The rights granted hereunder shall not be in substitution for, but shall be in addition to, any and all rights and remedies available to the non-defaulting party by reason of applicable
provisions of law or equity. 
  
 ARTICLE XVII 
 PROPRIETARY MARKS; INTELLECTUAL PROPERTY 
  

	17.01 	Proprietary Marks 

  
 During the Term of this Agreement, the name “Commonwealth” or “Commonwealth Hotels,” whether used alone or in connection with one or
more other word(s), and all proprietary marks (being all present and future trademarks, trade names, symbols, logos, insignia, service marks, and the like) of Management Company or any one of its Affiliates, whether or not registered
(“Proprietary Marks”) shall in all events remain the exclusive property of Management Company and its Affiliates. Owner shall have no right to use any Proprietary Mark of Management Company or any one of its Affiliates, except during the
Term of this Agreement to have signage installed using any Proprietary Mark of Management Company or any one of its Affiliates in conformance with the specifications provided by Management Company. Upon Termination, any use of a Proprietary Mark by
Owner under this Agreement shall immediately cease. Upon Termination, Management Company shall have the option to purchase, at their then book value, any items of the Hotel’s Inventories and Fixed Asset Supplies as may be marked with a
Proprietary Mark of Management Company or any one of its Affiliates. In the event Management Company does not exercise such option, Owner agrees that it will use any such items not so purchased exclusively in connection with Hotel until they are
consumed. During the Term of this Agreement, the name “                    ” whether used alone or in connection with one or more
other words, and all proprietary marks of Owner shall in all events remain the exclusive property of Owner and its Affiliates. Management Company shall have no right to use any proprietary mark of Owner or its Affiliates, except during the Term of
this Agreement to have signage installed using any proprietary mark of Owner or its Affiliates in conformance with the specifications provided by Owner. Upon Termination, any use of a proprietary mark of Owner or its Affiliates by Management Company
under this Agreement shall immediately cease. 
  

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	17.02 	Computer Software and Equipment 

  
 All “Software” (meaning all computer software and accompanying documentation, other than software which is commercially available, which are
used by Management Company in connection with the property management system, any reservation system and all future electronic systems developed by Management Company for use in the Hotel) is and shall remain the exclusive property of Management
Company or any one of its Affiliates (or the licensor of such Software, as the case may be), and Owner shall have no right to use, or to copy, any Software. Upon Termination, Management Company shall have the right to remove from the Hotel all
Software, and any computer equipment which is utilized as part of a centralized property management system or is otherwise considered proprietary by Management Company; provided, however, that if any of such computer equipment is owned by Owner,
Management Company shall reimburse Owner for previous expenditures made by Owner for the purchase of such equipment, subject to a reasonable allowance for depreciation. 
  

	17.03 	Intellectual Property 

  
 All “Intellectual Property” (meaning all Software and manuals, brochures and directives issued by Management Company to its employees at the
Hotel regarding procedures and techniques to be used in operating the Hotel) shall at all times be proprietary to Management Company or its Affiliates, and shall be the exclusive property of Management Company or its Affiliates. Upon Termination,
all Intellectual Property shall be removed from the Hotel by Management Company, without compensation to Owner. 
  
 ARTICLE XVIII 
 WAIVER AND INVALIDITY 
  

	18.01 	Waiver 

  
 The failure of either party to insist upon strict performance of any of the terms or provisions of this Agreement, or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as
a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect. No waiver by either party of any term or provision hereof shall be deemed to have been made unless
expressed in writing and signed by such party. 
  

	18.02 	Partial Invalidity 

  
 In the event that any portion of this Agreement shall be declared invalid by order, decree or judgment of a court, this Agreement shall be construed as if
such portion had not been inserted herein except when such construction would operate as an undue hardship to Management Company or Owner or constitute a substantial deviation from the general intent and purpose of said parties as reflected in this
Agreement. 
  

 36 

 ARTICLE XIX 
 ASSIGNMENT 
  

	19.01 	Assignment by Management Company and Owner 

  
 A. Management Company shall not assign this Agreement, or delegate any of its responsibilities hereunder, without the prior written consent of Owner;
provided, however, that Management Company, shall have the right, without such consent, to assign its interest in this Agreement to any of its Affiliates, and any such Affiliate shall be deemed to be the Management Company for purposes of this
Agreement. Management Company shall be relieved of all further obligations hereunder if such Affiliate has substantially similar financial resources and liquidity as Management Company and the expertise to perform the obligations of Management
Company hereunder including, without limitation, access to the Group Services that are currently being provided by Management Company at the time of such assignment. 
  
 B. Except as permitted pursuant to Section 20.01 B, Owner shall not assign this Agreement, without the prior written consent
of Management Company; provided, however, that Owner may assign this Agreement upon notice to Management Company to any wholly-owned subsidiary of Owner but only if such subsidiary leases or owns one hundred percent (100%) of the Hotel; and upon
such assignment and assumption of this Agreement by the assignee, Owner shall be relieved of all further liability or obligation hereunder. 
  
 C. Notwithstanding any provision contained in this Agreement, (i) the collateral assignment of this Agreement by Owner as security for any Mortgage
securing a Qualified Loan or (ii) the transfer of this Agreement in connection with a merger or consolidation or a sale of all or substantially all of the assets of either party (provided that (x) if such transfer is by Owner, the provisions of
Article XX shall be complied with, and (y) if such transfer is by Management Company, such transfer is being done as part of a merger or consolidation or a sale of all or substantially all of the business which consists of Management Company’s
managed hotels), is permitted without the consent of the other party. 
  
 D. If either party consents to an assignment of this Agreement by the other, no further assignment shall be made without the express consent in writing of such party, unless such assignment may otherwise be made without such consent
pursuant to the terms of this Agreement. 
  
 E. An assignment
(either voluntarily or by operation of law) by either party of its interest in this Agreement shall not relieve either party from its obligations under this Agreement which accrued prior to the date of such assignment; such assigning party shall be
relieved of such obligations accruing after such date, if the assignment complies with this Article XIX and if Management Company or Owner, as the case may be, has received an assumption agreement executed by the assignee. 
  
 ARTICLE XX 
 TERMINATION OF AGREEMENT UPON SALE, DEMOLITION, OR FORECLOSURE 
  

	20.01 	Sale of the Hotel 

  
 A. Sale to Permitted Transferee. Owner may enter into a Sale of the Hotel to any individual or entity that: (i) has sufficient financial resources and
liquidity to fulfill Owner’s 

  

 37 

 
obligations under this Agreement, and (ii) is not in control of or controlled by persons who have been convicted of felonies involving moral turpitude in any
state or federal court. If Owner enters into an agreement for the Sale of the Hotel to a purchaser or tenant that violates the provisions of this Section 20.01 A and Management Company has notified Owner of such non-compliance, Owner shall be deemed
to be in Default hereunder unless the Sale Termination Fee (as defined in Article II) is paid to Management Company as described in Section 20.01 D. 
  
 B. Written Notice of Sale and Assignment of Management Agreement. In the event that Owner enters into a definitive agreement with respect to the Sale of
the Hotel and desires to have this Agreement assigned to the new owner, Owner shall give written notice thereof to Management Company, stating the name of the prospective purchaser or tenant. Such notice shall include appropriate information
relating to such prospective purchaser or tenant demonstrating compliance with Section 20.01 A. Concurrently with the finalization of such Sale of the Hotel, and only upon full compliance with the conditions set forth in Sections 20.01 A and B, the
purchaser or tenant shall by appropriate instrument reasonably satisfactory to Management Company, assume all of Owner’s obligations hereunder. An executed copy of such assumption agreement shall be delivered to Management Company at the
closing or consummation of such Sale of the Hotel. The assignment and assumption of this Agreement by a new owner of the Hotel upon the Sale of the Hotel in full compliance with Sections 20.01 A and B shall be deemed to be an assignment by Owner
approved by Management Company pursuant to Section 19.01 B of this Agreement. This Agreement shall not be assigned to and assumed by any new owner of the Hotel upon the finalization of a Sale of the Hotel if the conditions set forth in Sections
20.01 A and B are not fully satisfied. 
  
 C. Maintenance of
Accounts. No Sale of the Hotel shall reduce or otherwise affect: (a) the current level of Working Capital; (b) the current amount deposited in the Reserve; or (c) any of the operating accounts maintained by Management Company pursuant to this
Agreement. If, in connection with any such Sale of the Hotel, the selling Owner intends to withdraw, for its own use, any of the cash deposits described in the preceding sentence, the selling Owner must obtain the contractual obligation of the new
Owner to replenish those deposits (in identical amounts) simultaneously with such withdrawal. The selling Owner is hereby contractually obligated to Management Company to ensure that such replenishment in fact occurs. The obligations described in
this Section 20.01 C shall survive the Sale of the Hotel and Termination of this Agreement. 
  
 D. Termination Upon Sale of the Hotel. Notwithstanding any provision in this Agreement to the contrary (including, without limitation, Sections 20.01 A and B above), Owner shall have the right to terminate this
Agreement upon any Sale of the Hotel provided that Owner: (i) provides at least sixty (60) days’ prior notice to Management Company, and (ii) remits to Management Company payment of the applicable Sale Termination Fee in accordance with Section
20.01 E. 
  
 E. The applicable Sale Termination Fee (as defined in
Article II) shall be payable as follows. The monthly Base Management Fee that was payable during the twelve (12) Accounting Periods preceding the Termination hereof due to the Sale of the Hotel will be payable in equal monthly installments during
the twelve (12) months following such Sale of the Hotel. Should, 

  

 38 

 
during said twelve (12) months, Owner reinvest the net sales proceeds from the Sale of the Hotel in another hotel and enter into a new management contract
for that hotel with Management Company, such monthly payments will cease and there shall be no further Sale Termination Fee. Otherwise, the indicated Sale Termination Fee, less the aforesaid monthly payments, will be due twelve (12) months from the
Termination hereof due to the Sale of the Hotel. 
  

	20.02 	Termination upon Demolition or Foreclosure 

  
 A. Owner may, by written notice to Management Company, terminate this Agreement upon the demolition of the Hotel, such Termination to be effective upon
the expiration of ninety (90) days following Management Company’s receipt of such notice from Owner. Any such notice shall contain sufficient information to permit Management Company to comply with any required notices to Hotel employees under
federal or state laws, including, without limitation, the WARN Act. Upon termination under this Section 20.02 A, all amounts due to Management Company hereunder in connection with such termination shall be paid by Owner. A termination under this
Section 20.02 A shall not be a Default and no termination fees shall be paid to Management Company. 
  
 B. Management Company shall have the right to terminate this Agreement (and pursue any remedies it may have hereunder), on thirty (30) days’ written
notice, if title to or possession of the Hotel is transferred by judicial or administrative process (including, without limitation, a foreclosure, or a sale pursuant to an order of a bankruptcy court, or a sale by a court-appointed receiver) to an
individual or entity which would not qualify as a permitted transferee under Section 20.01 A, regardless of whether or not such transfer is the voluntary action of the transferring Owner, or whether (under applicable law) the Owner is in fact the
transferor; provided, however, that Management Company shall not have the right to so terminate this Agreement based on the assertion that a Qualified Lender fails to so qualify as a permitted transferee under Section 20.01 A. 
  
 ARTICLE XXI 
 MANAGEMENT COMPANY CONDITIONS 
  

	21.01 	Conditions upon Management Commencement Date 

  
 The obligations of Management Company and Owner hereunder shall not commence until the satisfaction of the following conditions: 
  
 A. Receipt of all licenses, permits, decrees, acts, orders and all other
approvals necessary for the management and operation of the Hotel. 
  
 B. The provision by Owner of the Working Capital described in Article VII. 
  

 39 

 ARTICLE XXII 
 MISCELLANEOUS 
  

	22.01 	Right to Make Agreement 

  
 Each party warrants, with respect to itself, that neither the execution of this Agreement nor the finalization of the transactions contemplated hereby
shall violate any provisions of law or judgment, writ, injunction, order or decree of any court or governmental authority having jurisdiction over it; result in or constitute a breach or default under any indenture, contract, other commitment or
restriction to which it is a party or by which it is bound; or require any consent, vote or approval which has not been taken, or at the time of the transaction involved shall not have been given or taken. Each party covenants that it has and will
continue to have throughout the Term of this Agreement and any extensions thereof, the full right to enter into this Agreement and perform its obligations hereunder. 
  

	22.02 	Relationship of Owner and Management Company 

  
 A. During the Term of this Agreement, Management Company shall qualify as an “eligible independent contractor” as defined in Section 856(d)(9)
of the Code. To that end, during the Term: 
  
 (a) Management Company shall not permit wagering activities to be conducted at or in connection with the Hotel; 
  
 (b) Management Company shall not own, directly or indirectly (within the meaning of Section 856(d)(5) of the Code), more than 35% of the
shares of Eagle; 
  
 (c) No more than 35% of the
total combined voting power of Management Company’s outstanding stock, if any, (or 35% of the total shares of all classes of its outstanding stock) shall be owned, directly or indirectly, by one or more persons owning 35% or more of the
outstanding stock of Eagle; 
  
 (d) Neither Eagle
nor Lessor nor Owner shall derive any income from Management Company; and 
  
 (e) Management Company (or a person who is a “related person” within the meaning of Section 856(d)(9)(F) of the Code (a “Related Person”) with respect to the Management Company) shall be actively
engaged in the trade or business of operating “qualified lodging facilities” (defined below) for one or more persons who are not Related Persons with respect to Owner (“Unrelated Persons”). In order to meet this requirement,
Management Company agrees that it (or a Related Person with respect to Management Company) (i) shall derive at least 10% of both its revenue and profit from operating “qualified lodging facilities” for Unrelated Persons and (ii) shall
comply with any regulations or other administrative guidance under Section 856(d)(9) of the Code with respect to the amount of hotel management business with Unrelated Persons that is necessary to qualify as an “eligible independent
contractor” with the meaning of such Code Section. 
  
 A
“qualified lodging facility” is defined in Section 856(d)(9)(D) of the Code and means a “lodging facility” (defined below), unless wagering activities are conducted at or in 

  

 40 

 
connection with such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or
in connection with such facility. A “lodging facility” is a hotel, motel or other establishment more than one-half of the dwelling units in which are used on a transient basis, and includes customary amenities and facilities operated as
part of, or associated with, the lodging facility so long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners unrelated to Owner. Management Company’s breach of the provisions
of this Section 22.02 shall be a material Event of Default hereunder and be subject to the provisions of Section 16.03 of this Agreement. 
  
 B. Management Company shall perform its duties hereunder as agent for Owner. Nothing contained in this Agreement shall be construed to create a
partnership or joint venture between Owner and Management Company or their successors-in-interest. Neither party shall borrow money in the name of or pledge the credit of the other. 
  

	22.03 	Failure to Perform 

  
 If Management Company or Owner at any time fails to make any payments as specified or required hereunder or fails to perform any other act required on its
part to be made or performed hereunder, then the other party after thirty (30) days’ written notice to the defaulting party may (but shall not be obligated to) pay any such delinquent amount or perform any such other act on the defaulting
party’s part. Any sums thus paid and all costs and expenses incurred in connection with the making of such payment or the proper performance of any such act, together with interest thereon at the lesser of (i) the interest rate allowed by the
applicable usury laws, or (ii) the Prime Rate plus three percent (3%), from the date that such payment is made or such costs and expenses incurred, shall constitute a liquidated amount to be paid by the defaulting party under this Agreement to the
other party on demand. 
  

	22.04 	Breach of Covenant 

  
 Owner and Management Company and/or their respective affiliated companies shall be entitled, in case of any breach of this Agreement by the other party or
others claiming through it, to injunctive relief and to any other right or remedy available at law. 
  

	22.05 	Consents 

  
 Except as herein otherwise provided, whenever in this Agreement the consent or approval of Owner or Management Company is required, such consent or approval shall not be unreasonably withheld, conditioned or delayed.

  

	22.06 	Applicable Law and Arbitration 

  
 This Agreement shall be construed under and shall be governed by the laws of the State where the Hotel is located. In the event of any dispute,
controversy or claim arising out of, or in connection with, or relating to this Agreement, or any breach, or alleged breach hereof, the same shall, upon the request of either Management Company or Owner, be submitted to and settled by 

  

 41 

 
arbitration. The arbiters shall each have at least ten (10) years’ recent professional experience in the hotel industry. The arbiters are specifically
directed: that the award be definite, certain and final as to the matters submitted; and to permit or deny the relief sought in its entirety without partial allocations between the parties (i.e. the preceding shall be a so-called “baseball
arbitration”). Otherwise, the arbitration shall be pursuant to, and in accordance with, the commercial rules then in effect of the American Arbitration Association in the State where the Hotel is located, or at any other place or any other form
of arbitration mutually acceptable to the parties so involved. Any award rendered shall be final and conclusive upon the parties and a judgment thereon may be entered in the highest court of the forum, state or federal, having jurisdiction. The
expenses of arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay the cost of its own experts, counsel and evidence. 
  

	22.07 	Headings 

  
 Headings of Articles and Sections are inserted only for convenience and are in no way to be construed as a limitation on the scope of the particular Articles or Sections to which they refer. 
  

	22.08 	Notices 

  
 Notices, statements and other communications to be given under the terms of this Agreement shall be in writing and delivered by hand against receipt or sent by certified mail, return receipt requested, or by
nationally recognized overnight courier: 
  
 To Lessor:

  
 __________________________________ 
 c/o Eagle Hospitality Properties Trust, Inc. 
 100 E. Rivercenter Blvd., Suite 480 
 Covington, KY 40111 
 Attn: Chief Financial Officer 
  
 To Owner: 
  
 __________________________________ 
 c/o Eagle
Hospitality Properties Trust, Inc. 
 100 E. Rivercenter Blvd., Suite 480 
 Covington, KY 40111 
 Attn: Chief Financial
Officer 
  

 42 

 With a copy in the case of each of Owner and Lessor to: 
  
 Eagle Hospitality Properties Trust, Inc. 
 100 E. Rivercenter Blvd., Suite 480 
 Covington, KY 40111 
 Attn: Chief Executive Officer 
  
 To Management Company: 
 Commonwealth Hotels, Inc. 
 50 E. Rivercenter Blvd., Suite 600 
 Covington, KY 41011 
 Attn: President

  
 with a copy to: 
  
 Commonwealth Hotels, Inc. 
 50 E. Rivercenter Blvd., Suite 1100 
 Covington, KY 41011 
 Attn: Chief Executive Officer 
  
 or at such other address as from time to time designated by the party receiving the notice. Any such notice which is properly mailed, as
described above, shall be deemed to have been served as of three (3) business days after said posting. 
  

	22.09 	Environmental Matters 

  
 A. For purposes of this Section 22.09, “hazardous materials” means any substance or material containing one or more of any of the following:
“hazardous air pollutants,” “hazardous material,” “hazardous waste,” “hazardous substance,” “regulated substance,” “petroleum,” “pollutant,” “contaminant,” or
“asbestos,” as such terms are defined in any applicable environmental law, in such concentration(s) or amount(s) as may impose clean-up, removal, monitoring or other responsibility under any applicable environmental law, or which may
present a significant risk of harm to guests, invitees or employees of the Hotel. 
  
 B. Regardless of whether or not a given hazardous material is permitted on the Hotel premises under applicable environmental law, Management Company shall only bring on the premises such hazardous materials as are
needed in the normal course of business of the Hotel. Management Company shall indemnify, defend and hold Owner and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless from and against all loss,
costs, liability and damage (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the placing, discharge, leakage, use or storage of hazardous materials in violation of
applicable environmental laws on the Hotel premises or in the Hotel by Management Company during the Term of this Agreement and shall be responsible for the payment of any removal or remediation costs resulting therefrom. 
  

 43 

 C. In the event of the discovery of hazardous materials (as such term may be defined in any applicable
environmental law) on the Hotel premises or in the Hotel during the Term of this Agreement, Owner shall (except to the extent such removal is Management Company’s responsibility pursuant to Section 22.09 B) promptly remove, if required by
applicable environmental law, such hazardous materials, together with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with all environmental laws. Owner shall (except to the extent that the removal of such
hazardous materials is Management Company’s responsibility pursuant to Section 22.09 B) indemnify, defend and hold Management Company and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless
from and against all loss, costs, liability and damage (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the presence of hazardous materials on the Hotel premises or in
the Hotel. All costs and expenses of the removal of hazardous materials pursuant to this Section 22.09 C, and of compliance with all environmental laws, and any amounts paid to Management Company pursuant to the indemnity set forth above, shall be
paid by Owner from its own funds, not as a Deduction nor from the Reserve. 
  

	22.10 	Equity and Debt Offerings 

  
 Neither Owner nor Management Company (as an “issuing party”) shall make reference to the other party (the “non-issuing party”) or any
of its Affiliates in any prospectus, private placement memorandum, offering circular or offering documentation related thereto (collectively referred to as the “Prospectus”), issued by the issuing party, unless the non-issuing party has
received a copy of all such references. In no event will the non-issuing party be deemed a sponsor of the offering described in any such Prospectus, nor will it have any responsibility for the Prospectus, and the Prospectus will so state. The
issuing party shall be entitled to include in the Prospectus an accurate summary of this Agreement but shall not include any proprietary mark of the non-issuing party without prior written consent of the non-issuing party. The issuing party shall
indemnify, defend and hold the non-issuing party and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless from and against all loss, costs, liability and damage (including attorneys’ fees and
expenses, and the cost of litigation) arising out of any Prospectus or the offering described therein. 
  

	22.11 	Estoppel Certificates 

  
 Owner and Management Company will, at any time and from time to time within fifteen (15) days of the request of the other party or a Qualified Lender,
execute, acknowledge, and deliver to the other party and such Qualified Lender, if any, and any other person the requesting party may reasonably request, a certificate certifying: 
  
 A. That the Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in
full force and effect as modified and stating such modifications); 
  
 B. The dates, if any, on which the distributions of Operating Profit have been paid; 
  

 44 

 C. Whether there are any existing Defaults by the other party to the knowledge of the party making such
certification, and specifying the nature of such Defaults, if any; and 
  
 D. Such other matters as may be reasonably requested. 
  
 Any such certificates may be relied upon by any party to whom the certificate is directed. 
  

	22.12 	Entire Agreement 

  
 This Agreement, together with other writings signed by the parties expressly stated to be supplementary hereto and together with any instruments to be
executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings and writings, and may be changed only by a writing signed by the parties hereto. This instrument may be
executed in counterparts, each of which shall be deemed an original and all such counterparts together shall constitute one and the same instrument. 
  

	22.13 	Limitation on Liability. 

  
 Notwithstanding anything to the contrary contained in this Agreement, Owner’s liability under this Agreement shall be limited solely to its interest
in the Hotel and in all accounts and Reserves related to the Hotel and in insurance and condemnation proceeds related to the Hotel and no personal liability or deficiency judgment shall append to Owner relative to, or as a result of, this Agreement.

  

	22.14 	Confidentiality. 

  
 Owner and Management Company agree that the matters set forth in this Agreement are strictly confidential and each party will make every effort to ensure
that the information is not disclosed to any outside person or entities (including any announcements to the press or otherwise pertaining to the transaction entered into by the parties hereunder without the approval as to both timing of any such
announcement of both Owner and Management Company) without the prior written consent of the other party except as may be reasonably necessary to obtain licenses, permits and other public approvals necessary for the operation of the Hotel, in
connection with the Owner’s financing of the Hotel, or the Sale of Hotel. It is understood and agreed that this Section 22.14 is not intended to prohibit or limit disclosure of the matters set forth in this Section 22.14 by Owner or Management
Company (i) to their respective officers, directors, employees, financial advisors, attorneys, accountants, potential lenders, consultants and representatives on a need to know basis, (ii) as required by any governmental agency or any federal or
state law or regulation, or (iii) as required pursuant to the rules of any exchange or securities system on which such party’s (or any of its affiliates’) shares are traded, or (iv) the extent legally compelled by legal process.

  

	22.15 	Affiliates. 

  
 Management Company shall be entitled to contract with one or more of its Affiliates to provide goods and/or services to the Hotel only if the prices and/or fees paid to any such 

  

 45 

 
Affiliates are competitive with the prices and/or fees currently being paid to reputable and qualified parties providing similar services which are not
Affiliates of Management Company, provided, however, that in any event Management Company shall be required to obtain Owner’s consent prior to contracting with any of Management Company’s Affiliates, which consent shall not be unreasonably
withheld or delayed. In connection with obtaining such consent, Management Company shall provide Owner with underlying documentation reasonably necessary for Owner to determine whether such prices and/or fees are competitive with the prices and/or
fees currently being paid to reputable and qualified parties providing similar services which are not Affiliates of Management Company. To the extent that any such services shall constitute the Group Services, the prices and/or fees for such
services will be determined pursuant to Section 11.03 B. In the event that the Annual Operating Projection includes fees to be paid to any Affiliate for the provision of goods and services to the Hotel, Management Company shall provide Owner with
underlying documentation reasonably necessary for Owner to determine whether such prices and/or fees are competitive with the prices and/or fees currently being paid to reputable and qualified parties providing similar services which are not
Affiliates of Management Company. 
  

	22.16 	Force Majeure 

  
 In the event either party is unable to perform its obligations hereunder due to an event of Force Majeure, such performance shall be extended for a period
of time reasonably required to complete performance of such obligation(s). 
  
 -THIS SPACE INTENTIONALLY LEFT BLANK- 
  

 46 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized
officers. 
  

			
	OWNER:
	
	 
		
	By:	 	 

			
	 Printed Name:
	 	 

			
	 Title:
	 	 

  

			
	MANAGEMENT COMPANY:
	
	COMMONWEALTH HOTELS, INC.
		
	By:	 	 

			
	 Printed Name:
	 	 

			
	 Title:
	 	 

  

			
	ACKNOWLEDGED BY:
	
	LESSOR:
	
	 
		
	By:	 	 

			
	 Printed Name:
	 	 

			
	 Title:
	 	 

  
 Attachments: 
  
 Exhibit A – Legal Description of Hotel Site (Preamble) 
 Exhibit B – Proforma (Article II Definition of Sale Termination Fee) 
 Exhibit C – Hotel’s Competitive Set (Section 6.04) 
  

 47 

 EXHIBIT A 
  
 LEGAL DESCRIPTION OF HOTEL SITE 
  
 (Preamble) 
  

 EXHIBIT B 
  
 PROFORMA 
  
 (Article II – Definition of Sale Termination Fee) 
  
 [DRAFTING NOTE – DELETE IF NOT APPLICABLE] 
  

 EXHIBIT C 
  
 HOTEL’S COMPETITIVE SET 
  
 (Section 6.04)Form of Lease between EHP Operating Partnership & Eagle TRS

 LEASE AGREEMENT 
  

DATED AS OF 
  

 
 BETWEEN 
  
 ____________________________ 
 AS LESSOR 
  
 AND 
  
 ___________________________________ 
 AS LESSEE 
  

 TABLE OF CONTENTS 
  

					
	 ARTICLE I
	  	1
	 Section 1.1.
	  	Leased Property	  	1
	 Section 1.2.
	  	Term	  	2
	 ARTICLE II
	  	2
	 Section 2.1.
	  	Definitions	  	2
	 Section 2.2.
	  	Additional Charges	  	3
	 Section 2.3.
	  	Affiliate	  	3
	 Section 2.4.
	  	Annual Budget	  	3
	 Section 2.5.
	  	Award	  	3
	 Section 2.6.
	  	Base Rate	  	3
	 Section 2.7.
	  	Base Rent	  	3
	 Section 2.8.
	  	Beverage Sales	  	4
	 Section 2.9.
	  	Beverage Sales Computation	  	4
	 Section 2.10.
	  	Business Day	  	4
	 Section 2.11.
	  	Capital Expenditures	  	4
	 Section 2.12.
	  	Capital Impositions	  	4
	 Section 2.13.
	  	CERCLA	  	5
	 Section 2.14.
	  	Code	  	5
	 Section 2.15.
	  	Commencement Date	  	5
	 Section 2.16.
	  	Condemnation, Condemnor	  	5
	 Section 2.17.
	  	Consolidated Financials	  	5
	 Section 2.18.
	  	CPI	  	5
	 Section 2.19.
	  	Date of Taking	  	5
	 Section 2.20.
	  	Eligible Independent Contractor	  	5
	 Section 2.21.
	  	Encumbrance	  	6
	 Section 2.22.
	  	Environmental Authority	  	6
	 Section 2.23.
	  	Environmental Authorization	  	7
	 Section 2.24.
	  	Environmental Laws	  	7
	 Section 2.25.
	  	Environmental Liabilities	  	7
	 Section 2.26.
	  	Event of Default	  	8
	 Section 2.27.
	  	Intentionally Omitted	  	8
	 Section 2.28.
	  	Fair Market Rental	  	8
	 Section 2.29.
	  	Fair Market Value	  	8
	 Section 2.30.
	  	FIFRA	  	8
	 Section 2.31.
	  	Fiscal Year	  	8
	 Section 2.32.
	  	Fixtures	  	8
	 Section 2.33.
	  	Food Sales	  	9
	 Section 2.34.
	  	Food Sales Computation	  	9
	 Section 2.35.
	  	Franchise Agreement	  	9
	 Section 2.36.
	  	Furniture, Fixtures and Equipment	  	9
	 Section 2.37.
	  	Government	  	9
	 Section 2.38.
	  	Gross Operating Expenses	  	10
	 Section 2.39.
	  	Gross Operating Profit	  	10

  

 i 

					
	 Section 2.40.
	  	Gross Revenues	  	10
	 Section 2.41.
	  	Hazardous Materials	  	10
	 Section 2.42.
	  	Hotel	  	11
	 Section 2.43.
	  	Impositions	  	11
	 Section 2.44.
	  	Indemnified Party	  	11
	 Section 2.45.
	  	Indemnifying Party	  	12
	 Section 2.46.
	  	Insurance Requirements	  	12
	 Section 2.47.
	  	Inventory	  	12
	 Section 2.48.
	  	Land	  	12
	 Section 2.49.
	  	Lease	  	12
	 Section 2.50.
	  	Leased Improvement, Leased Property	  	12
	 Section 2.51.
	  	Legal Requirements	  	12
	 Section 2.52.
	  	Lending Institution	  	13
	 Section 2.53.
	  	Lessee	  	13
	 Section 2.54.
	  	Lessee Indemnified Party	  	13
	 Section 2.55.
	  	Lessee’s Personal Property	  	13
	 Section 2.56.
	  	Lessor	  	13
	 Section 2.57.
	  	Lessor Indemnified Party	  	13
	 Section 2.58.
	  	Management Agreement	  	14
	 Section 2.59.
	  	Manager	  	14
	 Section 2.60.
	  	Notice	  	14
	 Section 2.61.
	  	Officer’s Certificate	  	14
	 Section 2.62.
	  	OSHA	  	14
	 Section 2.63.
	  	Overdue Rate	  	14
	 Section 2.64.
	  	Payment Date	  	14
	 Section 2.65.
	  	Percentage Rent	  	14
	 Section 2.66.
	  	Person	  	14
	 Section 2.67.
	  	Intentionally Omitted	  	15
	 Section 2.68.
	  	Predecessor	  	15
	 Section 2.69.
	  	Primary Intended Use	  	15
	 Section 2.70.
	  	Proceeding	  	15
	 Section 2.71.
	  	Quarterly Revenues Computations	  	15
	 Section 2.72.
	  	RCRA	  	15
	 Section 2.73.
	  	Intentionally Omitted	  	15
	 Section 2.74.
	  	Release	  	15
	 Section 2.75.
	  	Rent	  	15
	 Section 2.76.
	  	Room Revenues	  	16
	 Section 2.77.
	  	SARA	  	16
	 Section 2.78.
	  	State	  	16
	 Section 2.79.
	  	Subsidiaries	  	16
	 Section 2.80.
	  	Taking	  	16
	 Section 2.81.
	  	Term	  	16
	 Section 2.82.
	  	TSCA	  	17
	 Section 2.83.
	  	Uneconomic for its Primary Intended Use	  	17
	 Section 2.84.
	  	Uniform System	  	17
	 Section 2.85.
	  	Unsuitable for its Primary Intended Use	  	17

  

 ii 

					
	 ARTICLE III
	  	17
	 Section 3.1.
	  	Rent	  	17
	 Section 3.2.
	  	Confirmation of Percentage Rent	  	21
	 Section 3.3.
	  	Additional Charges	  	21
	 Section 3.4.
	  	Rent Payable Without Deduction	  	22
	 Section 3.5.
	  	Conversion of Property	  	22
	 Section 3.6.
	  	Annual Budget	  	23
	 Section 3.7.
	  	Approval of Capital Budget	  	23
	 Section 3.8.
	  	Approval of Annual Budget	  	23
	 Section 3.9.
	  	Capital Projects	  	24
	 Section 3.10.
	  	Books and Records	  	24
	 ARTICLE IV
	  	24
	 Section 4.1.
	  	Payment of Impositions	  	24
	 Section 4.2.
	  	Notice of Impositions	  	25
	 Section 4.3.
	  	Adjustment of Impositions	  	26
	 Section 4.4.
	  	Utility Charges	  	26
	 Section 4.5.
	  	Insurance Premiums	  	26
	 Section 4.6.
	  	Franchise Fees	  	26
	 ARTICLE V
	  	26
	 Section 5.1.
	  	No Termination, Abatement, etc.	  	26
	 Section 5.2.
	  	Abatement Procedures	  	27
	 ARTICLE VI
	  	27
	 Section 6.1.
	  	Ownership of the Leased Property	  	27
	 Section 6.2.
	  	Lessee’s Personal Property	  	27
	 Section 6.3.
	  	Lessor’s Lien	  	28
	 ARTICLE VII
	  	29
	 Section 7.1.
	  	Condition of the Leased Property	  	29
	 Section 7.2.
	  	Use of the Leased Property	  	29
	 Section 7.3.
	  	Lessor to Grant Easements, etc.	  	31
	 Section 7.4.
	  	Reservation by Lessor	  	31
	 ARTICLE VIII
	  	32
	 Section 8.1.
	  	Compliance with Legal and Insurance Requirements, etc.	  	32
	 Section 8.2.
	  	Legal Requirement Covenants	  	32
	 Section 8.3.
	  	Environmental Covenants	  	33
	 ARTICLE IX
	  	35
	 Section 9.1.
	  	Maintenance and Repair	  	35
	 Section 9.2.
	  	Encroachments, Restrictions, etc.	  	38
	 ARTICLE X
	  	38
	 Section 10.1.
	  	Alterations	  	38
	 Section 10.2.
	  	Salvage	  	39
	 Section 10.3.
	  	Joint Use Agreements	  	39
	 ARTICLE XI
	  	39
	 Section 11.1.
	  	Liens	  	39
	 ARTICLE XII
	  	40
	 Section 12.1.
	  	Permitted Contests	  	40
	 ARTICLE XIII
	  	41

  

 iii 

					
	 Section 13.1.
	  	General Insurance Requirements	  	41
	 Section 13.2.
	  	Waiver of Subrogation	  	41
	 Section 13.3.
	  	Form Satisfactory, etc.	  	41
	 Section 13.4.
	  	Increase in Limits	  	41
	 Section 13.5.
	  	Blanket Policy	  	42
	 Section 13.6.
	  	Separate Insurance	  	42
	 Section 13.7.
	  	Reports On Insurance Claims	  	42
	 ARTICLE XIV
	  	42
	 Section 14.1.
	  	Insurance Proceeds	  	42
	 Section 14.2.
	  	Reconstruction in the Event of Damage or Destruction Covered by Insurance.	  	43
	 Section 14.3.
	  	Lessee’s Personal Property	  	43
	 Section 14.4.
	  	Abatement of Rent	  	43
	 Section 14.5.
	  	Intentionally Omitted	  	43
	 Section 14.6.
	  	Waiver	  	44
	 ARTICLE XV
	  	44
	 Section 15.1.
	  	Definitions	  	44
	 Section 15.2.
	  	Parties’ Rights and Obligations	  	44
	 Section 15.3.
	  	Total Taking	  	44
	 Section 15.4.
	  	Allocation of Award	  	45
	 Section 15.5.
	  	Partial Taking	  	45
	 Section 15.6.
	  	Temporary Taking	  	45
	 ARTICLE XVI
	  	46
	 Section 16.1.
	  	Events of Default	  	46
	 Section 16.2.
	  	Surrender	  	47
	 Section 16.3.
	  	Damages	  	48
	 Section 16.4.
	  	Waiver	  	49
	 Section 16.5.
	  	Application of Funds	  	49
	 ARTICLE XVII
	  	49
	 Section 17.1.
	  	Lessor’s Right to Cure Lessee’s Default	  	49
	 ARTICLE XVIII
	  	50
	 Section 18.1.
	  	Provisions Relating to Purchase of the Leased Property.	  	50
	 ARTICLE XIX
	  	50
	 Section 19.1.
	  	REIT Requirements	  	50
	 Section 19.2.
	  	Lessee Officer and Employee Limitation	  	52
	 Section 19.3.
	  	Management Agreement	  	52
	 ARTICLE XX
	  	53
	 Section 20.1.
	  	Holding Over	  	53
	 ARTICLE XXI
	  	53
	 Section 21.1.
	  	Abatement of Rent	  	53
	 ARTICLE XXII
	  	53
	 Section 22.1.
	  	Indemnification	  	53
	 ARTICLE XXIII
	  	55
	 Section 23.1.
	  	Subletting and Assignment	  	55
	 Section 23.2.
	  	Subordination and Attornment	  	56
	 ARTICLE XXIV
	  	56

  

 iv 

					
	 Section 24.1.
	  	Officer’s Certificates; Financing Statements; Lessor’s Estoppel Certificates and Covenants	  	56
	 ARTICLE XXV
	  	57
	 Section 25.1.
	  	Lessor’s Right to Inspect	  	57
	 ARTICLE XXVI
	  	57
	 Section 26.1.
	  	No Waiver	  	57
	 ARTICLE XXVII
	  	57
	 Section 27.1.
	  	Remedies Cumulative	  	57
	 ARTICLE XXVIII
	  	58
	 Section 28.1.
	  	Acceptance of Surrender	  	58
	 ARTICLE XXIX
	  	58
	 Section 29.1.
	  	No Merger of Title	  	58
	 Section 30.1.
	  	Conveyance by Lessor	  	58
	 Section 30.2.
	  	Other Interests	  	59
	 ARTICLE XXXI
	  	59
	 Section 31.1.
	  	Quiet Enjoyment	  	59
	 ARTICLE XXXII
	  	59
	 Section 32.1.
	  	Notices	  	59
	 ARTICLE XXXIII
	  	60
	 Section 33.1.
	  	Appraisers	  	60
	 ARTICLE XXXIV
	  	61
	 Section 34.1.
	  	Lessor May Grant Liens	  	61
	 Section 34.2.
	  	Lessee’s Right to Cure	  	62
	 Section 34.3.
	  	Breach by Lessor	  	62
	 ARTICLE XXXV
	  	62
	 Section 35.1.
	  	Miscellaneous	  	62
	 Section 35.2.
	  	Transition Procedures	  	63
	 Section 35.3.
	  	Waiver of Presentment, etc.	  	63
	 ARTICLE XXXVI
	  	64
	 Section 36.1.
	  	Memorandum of Lease	  	64
	 ARTICLE XXXVII
	  	64
	 Section 37.1.
	  	Compliance with Franchise Agreement	  	64
	 ARTICLE XXXVIII [Intentionally Left Blank]
	  	64
	 ARTICLE XXXIX
	  	65
	 Section 39.1.
	  	Arbitration	  	65
	 ARTICLE XL
	  	65
	 Section 40.1.
	  	Sale and Termination of Lease	  	65
	 EXHIBIT A
	  	1
	 EXHIBIT B
	  	1
	 EXHIBIT C
	  	1
	 EXHIBIT D
	  	1

  

 v 

 LEASE AGREEMENT 
  

THIS LEASE AGREEMENT (hereinafter called “Lease”), made as of the      day of
            , 2004, by and between
                                    , a
                     limited liability company (hereinafter called (“Lessor”), and
                                    , a Maryland corporation
(hereinafter called “Lessee”), provides as follows. 
  
 W
I T N E S S E T H: 
  
 Lessor owns [fee title to/ a leasehold
interest in] 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 and to the following: 
  
 (a) [a
parcel or parcels of land / a ground leasehold interest/ an air rights 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, driveways, drive aisles, access areas, connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site and offsite), parking areas, parking rights 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 

  

 1 

 
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 (excluding Inventory and personal property owned by Lessee) 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 assignable rights of
Lessor in any Franchise Agreement with respect to the Leased Improvements. 
  
 For all purposes hereunder, the term “Leased Property” shall mean the 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 

  

 2 

 
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. 
  
 Section 2.2.
Additional Charges. 
  
 As defined in Section 3.3.

  
 Section 2.3. 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. 
  
 Section 2.4. Annual Budget. 
  
 As used in this Lease, the term “Annual Budget” shall mean an operating and capital budget prepared by or for Lessee and delivered to Lessor in
accordance with Section 3.6. 
  
 Section 2.5. Award.

  
 As defined in Section 15.1(c). 
  
 Section 2.6. 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. 
  
 Section 2.7. Base Rent. 
  
 As defined in Article III. 
  

 3 

 Section 2.8. Beverage Sales. 
  
 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. 
  
 Section 2.9. Beverage Sales Computation. 
  
 As defined in Exhibit C attached hereto. 
  
 Section 2.10. 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. 
  
 Section 2.11. 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, Fixtures 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. 
  
 Section 2.12. 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. 
  

 4 

 Section 2.13. CERCLA. 
  
 The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
  
 Section 2.14. Code. 
  
 The Internal Revenue Code of 1986, as amended. 
  
 Section 2.15. Commencement Date. 
  
 As defined on Exhibit B. 
  
 Section 2.16. Condemnation, Condemnor. 
  
 As defined in Section 15.1. 
  
 Section 2.17. 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 as
applied to Lessee and certified by Lessee’s Chief Accounting Officer. 
  
 Section 2.18. CPI. 
  
 The
“Consumer Price Index” published by the Bureau of Labor Statistics of the United States Department of Labor, U.S. City Average, All Items for Urban Wage Earners and Clerical Workers (1982-1984=100). 
  
 Section 2.19. Date of Taking. 
  
 As defined in Section 15.1(b). 
  
 Section 2.20. 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 Eagle Hospitality Properties Trust, Inc. 
  

 5 

 (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 Eagle Hospitality Properties Trust, Inc. 
  
 (c) Neither Eagle Hospitality Properties Trust, Inc., Lessor nor Lessee 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 any Person who is not a “related person” within the meaning of Section 856(d)(9)(F) of the Code with respect to Eagle Hospitality
Properties Trust, Inc. or Lessee (an “Unrelated Person”). For purposes of determining whether the requirement of this paragraph (d) has been met, a management company shall be treated as being actively engaged in such a trade or business
if the management company (i) derives at least 10% of both its profits and revenue from operating “qualified lodging facilities” within the meaning of Section 856(d)(9)(D) of the Code from Unrelated Persons or (ii) complies with any
regulations or other administrative guidance under Section 856(d)(9) of the Code that provide a “safe harbor” rule with respect to the amount of hotel management business with Unrelated Persons that is necessary to qualify as an
“eligible independent contractor” within the meaning of such Code section. 
  
 Section 2.21. Encumbrance. 
  
 As defined in Article XXXIV. 
  
 Section 2.22.
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. 
  

 6 

 Section 2.23. Environmental Authorization. 
  
 Any license, permit, order, approval, consent, notice, registration, filing
or other form of permission or authorization required under any Environmental Law. 
  
 Section 2.24. 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. 
  
 Section 2.25. 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 
  

 7 

 (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. 
  
 Section 2.26. Event of Default. 
  
 As defined in Section 16.1. 
  
 Section 2.27. Intentionally Omitted. 
  
 Section 2.28. 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. 
  
 Section 2.29. 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. 
  
 Section 2.30. FIFRA.

  
 The Federal Insecticide, Fungicide, and Rodenticide Act, as
amended. 
  
 Section 2.31. Fiscal Year. 
  
 The 12-month period from January 1 to December 31. 
  
 Section 2.32. Fixtures. 
  
 As defined in Section 1.1. 
  

 8 

 Section 2.33. Food Sales. 
  
 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. 
  
 Section 2.34. Food Sales Computation. 
  
 As
defined in Exhibit C attached hereto. 
  
 Section 2.35.
Franchise Agreement. 
  
 Any franchise agreement or license
agreement with a franchisor under which the Hotel is operated. 
  
 Section 2.36. Furniture, Fixtures and Equipment. 
  
 For purposes of this Lease, the terms “Furniture, Fixtures 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. 
  
 Section 2.37. 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. 
  

 9 

 Section 2.38. 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. 
  
 Section 2.39. 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. 
  
 Section 2.40.
Gross Revenues. 
  
 As set forth in the Management
Agreement. 
  
 Section 2.41. 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 
  
 (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. 
  

 10 

 Section 2.42. 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. 
  
 Section 2.43. 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
and all real estate or ad valorem property taxes and inventory and personal property taxes and similar charges on or relating to the Leased Property and the Hotel), 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. 
  
 Section 2.44. Indemnified Party. 
  
 Either of a Lessee Indemnified Party or a Lessor Indemnified Party. 
  

 11 

 Section 2.45. Indemnifying Party. 
  
 Any party obligated to indemnify an Indemnified Party pursuant to Section 8.3 or Article XXII. 
  
 Section 2.46. Insurance Requirements. 
  
 All terms of any insurance policy required by this Lease and all requirements
of the issuer of any such policy. 
  
 Section 2.47.
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. 
  
 Section 2.48. Land. 
  
 As defined in Article I. 
  
 Section 2.49. Lease. 
  
 This Lease. 
  
 Section 2.50. Leased Improvement, Leased Property. 
  
 Each as defined in Article I. 
  
 Section 2.51. 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. 
  

 12 

 Section 2.52. 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 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. 
  
 Section
2.53. Lessee. 
  
 The Lessee designated on this Lease and
its respective permitted successors and assigns. 
  
 Section 2.54.
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. 
  
 Section 2.55. Lessee’s Personal Property. 
  
 As defined in Section 6.2. 
  
 Section 2.56.
Lessor. 
  
 The Lessor designated on this Lease and its
respective successors and assigns. 
  
 Section 2.57. 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. 
  

 13 

 Section 2.58. Management Agreement. 
  
 The agreement pursuant to which the Manager operates the Leased Property. Initially, the Management Agreement shall mean the
Management Agreement dated             , 2004, between Lessee and Commonwealth Hotels, Inc. as it may be amended or supplemented from time to time, a copy of which is attached as
Exhibit D hereto. 
  
 Section 2.59. Manager. 
  
 As defined in Section 19.3. 
  
 Section 2.60. Notice. 
  
 A notice given pursuant to Article XXXII. 
  
 Section 2.61. 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. 
  
 Section 2.62. OSHA. 
  
 The Occupational Health and Safety Act, as amended. 
  
 Section 2.63. 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. 
  
 Section 2.64. Payment Date. 
  
 Any due date for
the payment of any installment of Base Rent. 
  
 Section 2.65.
Percentage Rent. 
  
 As defined in Section 3.1(b).

  
 Section 2.66. 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. 
  

 14 

 Section 2.67. Intentionally Omitted. 
  
 Section 2.68. 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. 
  
 Section
2.69. Primary Intended Use. 
  
 As defined in Section
7.2(b). 
  
 Section 2.70. 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. 
  
 Section 2.71. Quarterly Revenues Computations. 
  
 As defined in Exhibit C attached hereto. 
  
 Section 2.72. RCRA. 
  
 The Resource Conservation and Recovery Act, as amended. 
  
 Section 2.73. Intentionally Omitted. 
  
 Section 2.74. 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. 
  
 Section 2.75. Rent. 
  
 Collectively, the Base Rent, Percentage Rent and Additional Charges.

  

 15 

 Section 2.76. 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. 
  
 Section 2.77. SARA. 
  
 The Superfund Amendments and Reauthorization Act of 1986, as amended. 
  
 Section 2.78. State. 
  
 The State or Commonwealth of the United States in which the Leased Property is located. 
  
 Section 2.79. Subsidiaries. 
  

Persons in which a party owns, directly or indirectly, more than 50% of the voting stock or control, as applicable (individually, a
“Subsidiary”). 
  
 Section 2.80. 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. 
  
 Section 2.81. Term.

  
 As defined in Section 1.2. 
  

 16 

 Section 2.82. TSCA. 
  
 The Toxic Substances Control Act, as amended. 
  
 Section 2.83. Uneconomic for its Primary Intended Use. 
  
 A state or condition of the Leased Property such that, in the good faith judgment of Lessee or Lessor, as applicable,
reasonably exercised and evidenced by the resolution of the board of directors or other governing body of the respective entity, 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 shall complete the cessation of operations from the Leased Property. 
  
 Section 2.84. 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. 
  
 Section
2.85. Unsuitable for its Primary Intended Use. 
  
 A state
or condition of the Leased Property such that, in the good faith judgment of Lessee or Lessor, as applicable, reasonably exercised and evidenced by the resolution of the board of directors or other governing body of the respective entity, 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, or cause Manager to pay on behalf of Lessee, 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, all Base Rent,
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, 

  

 17 

 
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 pro rated daily as to any partial month (subject to adjustment as provided in Sections 5.2, 14.5, 15.3, 15.5, and 15.6); and 
  
 (b) Percentage Rent: For each Fiscal Year during the Term commencing with the Fiscal Year in which the Commencement Date occurs, Tenant
shall pay percentage rent (“Percentage Rent”) quarterly, on or before the tenth day following the end of each calendar quarter in each Fiscal Year, in an amount calculated by the following formula: 
  
 The amount equal to the Quarterly Revenues Computation plus the Food Sales
Computation plus the Beverage Sales Computation 
  
 less

  
 an amount equal to the Base Rent paid year to date for the
applicable Fiscal Year 
  
 less 
  
 an amount equal to Percentage Rent paid year to date for the applicable
Fiscal Year 
  
 equals 
  
 Percentage Rent for the applicable quarter. 
  
 In the event the Term begins and ends in the middle of a Fiscal Year, the
foregoing formula shall be applied as if the first Fiscal Year had only the number of calendar quarters within the initial Fiscal Year which are within the Term and the last Fiscal Year had only the number of calendar quarters within the last Fiscal
Year which are within the Term. If less than all of a calendar quarter falls within the Term, the Percentage Rent for that quarter shall equal (i) the Percentage Rent calculated as indicated above multiplied by (ii) a fraction equal to (A) the
number of days in the quarter that fall within the Term divided by (B) the total number of days in the quarter. 
  
 The Base Rent and Percentage Rent threshold amounts contained on Exhibit C shall be adjusted at the end of each Fiscal Year based upon the adjustments to
the CPI pursuant to Section 3.1(d), if any. 
  
 (c) Officer’s Certificates. Additionally, if requested by Lessor, an Officer’s Certificate shall be delivered to Lessor quarterly, together with such quarterly Percentage Rent payment, setting forth the calculation of such rent
payment for such quarter within 15 days after each of the first three quarters of each Fiscal Year (or part 

  

 18 

 
thereof) in the Term. Such quarterly 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 Quarterly 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 quarter 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 quarter 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 quarters’ Percentage Rent payments. Any such credit to Base Rent shall not be applied for purposes
of calculating Percentage Rent payable for any subsequent quarter. 
  
 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 quarterly 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 quarterly 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. 
  
 (d) CPI Adjustments. For each Fiscal Year during the Term beginning January 1, 2005, the Base Rent then in effect, and the quarterly
Percentage Rent threshold amounts then included in the Quarterly Revenues Computations set forth in Section 3.1(b), shall be adjusted as follows: 
  
 (i) The average CPI for the most recently ended Fiscal Year shall be divided by the average CPI for the immediately preceding Fiscal Year;

  

 19 

 (ii) The new Base Rent for the then current Fiscal Year shall be the adjusted amount
obtained by multiplying the Base Rent for the immediately preceding Fiscal Year by the quotient obtained under subparagraph (i) above; 
  
 (iii) The new quarterly and annual Percentage Rent threshold dollar amounts in the Quarterly Revenues Computation described in Section
3.1(b) above for the then current Fiscal Year shall be the product of the threshold dollar amount of Room Revenues in effect in the most recently ended Fiscal Year and the quotient obtained in subparagraph (i) above. 
  
 The amount of any adjustment under paragraphs (d)(i)-(iii) to Base Rent and
the quarterly Percentage Rent threshold amounts for any Fiscal Year shall not exceed     % of the Base Rent and quarterly and annual Percentage Rent threshold amount applicable for the prior Fiscal Year. 
  
 By way of example, the Base Rent and the quarterly and annual Percentage Rent
threshold amounts in the Quarterly Revenues Computation for the Fiscal Year commencing January 1, 2005 would be adjusted to reflect any change in the average CPI for the Fiscal Year ended December 31, 2004 as compared to the Fiscal Year ended
December 31, 2003. 
  
 Adjustments calculated as set forth above
in the Base Rent and quarterly and annual Percentage Rent threshold amounts shall be effective on the first day of each Fiscal Year to which such adjusted amounts apply. If Rent is paid in any period prior to determination of the amount of any
adjustment to Base Rent or the quarterly and annual Percentage Rent threshold applicable for such period, payment adjustments for any shortfall in or overpayment of Rent paid shall be made with the first Base Rent payment due after the amount of the
adjustments are determined. 
  
 The “average CPI” for a
Fiscal Year shall be the average of the monthly CPI during the Fiscal Year. 
  
 (iv) If (A) a significant change is made in the number or nature (or both) of items used in determining the CPI, or (B) the CPI shall be discontinued for any reason, the Bureau of Labor Statistics shall be requested
to furnish a new index comparable to the CPI, together with information which will make possible a conversion to the new index in computing the adjusted Base Rent and adjusted quarterly and annual Percentage Rent threshold amounts hereunder. If for
any reason the Bureau of Labor Statistics does not furnish such an index and such information, the parties will instead mutually select, accept and use such other index or comparable statistics on the cost of living in Washington, D.C. that is
computed and published by an agency of the United States or a responsible financial periodical of recognized authority. 
  

 20 

 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 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. 
  
 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 

  

 21 

 
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 (including Capital Expenditures 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. 
  

 22 

 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. 
  
 (b) A
capital budget (“Capital Budget”) delivered at the times and prepared in the manner described in the Management Agreement. The Capital Budget includes any budget or estimate regarding Capital Expenditures that is prepared pursuant to 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 each use commercially reasonable efforts to resolve such dispute in a manner that is
satisfactory to both parties in good faith as soon as practicable. While such dispute 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 each use commercially reasonable efforts to resolve such dispute in good faith, as soon as practicable and in a manner that is satisfactory to both parties. 
  

 23 

 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. 
  
 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 or the Manager’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 or Manager’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 (other than 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. Lessor will pay, or cause to be paid, all
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 

  

 24 

 
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, 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 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. 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. 
  
 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. 
  

 25 

 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. 
  
 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 Articles VIII and XIII. 
  
 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 

  

 26 

 
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. 
  
 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.
Lessee’s Personal Property. 
  
 Lessee will acquire,
own, 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) owned by Lessee. Lessee, at the commencement of the Term, and from time to time thereafter,
shall 

  

 27 

 
provide Lessor with an accurate list of all such items of Lessee’s personal property (collectively, including Inventory, the “Lessee’s
Personal Property”). Lessee may, subject to the first sentence of this Section 6.2 and the conditions set forth below, remove any of Lessee’s Personal Property set forth on such list at any time during the Term or upon the expiration or
any prior termination of the Term. All of Lessee’s Personal Property, other than Inventory, 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), including repair of all damage to the Leased Property caused by the removal of Lessee’s Personal Property, whether effected by Lessee or Lessor. 
  
 Upon the expiration or earlier termination of the Term, Lessor shall have the
option to purchase all (but not less than all) of Lessee’s Personal Property on hand at the Leased Property at the time of such expiration or termination for a sale price (payable in cash on the expiration date of this Lease) equal to the fair
market value thereof (or cost in the case of Inventory). 
  
 Except as hereinafter set forth, Lessee may make such financing arrangements, title retention agreements, leases or other agreements with respect to Lessee’s Personal Property as it sees fit provided that Lessee first advises Lessor 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. 
  
 Section 6.3. Lessor’s Lien. 
  
 To the fullest extent permitted by applicable law, Lessor is granted a lien
and security interest on all Lessee’s Personal Property now or hereinafter placed in or upon the Leased Property, and such lien and security interest shall remain attached to such Lessee’s Personal Property until payment in full of all
Rent and satisfaction of all of Lessee’s obligations hereunder that are outstanding on such date; provided, however, Lessor shall subordinate its lien and security interest to that of any non-Affiliate of Lessee which finances such
Lessee’s Personal Property or any non-Affiliate conditional seller of such Lessee’s Personal Property, the terms and conditions of such subordination to be satisfactory to Lessor in the exercise of reasonable discretion. Lessee shall, upon
the request of Lessor, execute such financing statements or other documents or instruments reasonably requested by Lessor to perfect the lien and security interests herein granted. 
  

 28 

 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 (or cause the Manager to obtain and maintain where required by law with respect to liquor and drink licenses) 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 

  

 29 

 
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 Lessee’s Personal
Property, except that Lessee shall have no obligation to complete capital improvements to the Leased Property. 
  
 (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 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 Lessee’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 Hotel. 
  

 30 

 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.

  

 31 

 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 Lessee’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. 
  
 Section 8.2. Legal Requirement Covenants. 
  
 Subject to Section 8.3(b) below, Lessee covenants and agrees that the Leased Property and Lessee’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 (or cause the Manager to obtain and maintain where required by law with respect to liquor and drink licenses) 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. 
  

 32 

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

  

 33 

 
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. 
  
 (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 

  

 34 

 
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. 
  
 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 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 

  

 35 

 
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 this Article IX or are otherwise provided by Lessor. Lessor shall be responsible for all such Capital Expenditures, including, without limitation, the Capital
Expenditure requirements set forth in the Management Agreement, 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 in each case 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. 
  
 [Lessor acknowledges that Manager will
establish a reserve escrow account in the name of Lessee upon the terms set forth in the Management Agreement to fund certain Capital Expenditure obligations of Lessor under this Lease. Such reserve shall be in an 

  

 36 

 
amount equal to the greater of : (i) 4% of Gross Revenues or (ii) the amount required under the Franchise Agreement or by any Qualified Lender (as defined in
the Management Agreement). Any amounts so reserved shall be deducted from the Rent payable to Lessor pursuant to Article III of this Lease. Lessee acknowledges that all amounts from time to time in the reserve, and all interest thereon, shall at all
times be owned by, and be the exclusive property of Lessor, and Lessee shall make no claim thereto. Lessee shall provide, or cause to be provided, each month a copy of the bank statement relating to the reserve and a reconciliation of such reserve.
Lessor acknowledges that the reserve is not intended to fund all of Lessor’s Capital Expenditure obligations under this Lease.] 
  
 (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 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 reasonably necessary to protect the Leased Property 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. 
  

 37 

 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 

  

 38 

 
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. 
  
 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 XXIII 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 

  

 39 

 
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. 
  
 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 provided in this Article),
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. 
  

 40 

 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. 
  
 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 or cause to be paid 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
30 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. 
  

 41 

 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. 
  
 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 

  

 42 

 
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 Lessor shall, with all reasonable diligence, to the extent that proceeds from the insurance required by this Lease are available (subject to the provisions of any Mortgage encumbering the Hotel)
for such purpose, repair or replace the damaged or destroyed portion of the Leased Property to substantially the same condition as existed previously; provided that Lessor shall have no obligation to repair or replace the damaged or destroyed
portion of the Leased Property if: (i) such damage, destruction or casualty occurs within two (2) years of the expiration of the Term, (ii) such damage, destruction or casualty is in excess of sixty percent (60%) of the “fair market value”
of the Leased Property as agreed by the parties, and (iii) Lessor elects not to rebuild the Hotel. In the event that the conditions set forth in (i), (ii), and (iii) of the preceding sentence are satisfied, Lessee may terminate this Agreement. A
termination under this Section 14.2 shall not be a Default. 
  
 Section 14.3. Lessee’s Personal Property. 
  
 All insurance proceeds payable by reason of any loss of or damage to any of Lessee’s Personal Property and any business interruption insurance shall be paid to Lessee; provided, however, no such payments shall diminish or reduce the
insurance payments otherwise payable to or for the benefit of Lessor hereunder. 
  
 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. Intentionally Omitted. 
  

 43 

 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. 
  
 (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 as
determined by either Lessee or Lessor, 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. 
  

 44 

 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 the taking of Lessee’s Personal Property 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 as determined by either Lessee or Lessor, 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. 
  
 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 

  

 45 

 
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 any portion 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 
  
 (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 
  

 46 

 (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. 
  
 Then, and in any such event
and provided such Event of Default by the defaulting party is continuing, the non-defaulting party 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, provided that such non-defaulting is not itself in default under this Lease. 
  
 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 

  

 47 

 
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: 
  
 (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, 

  

 48 

 
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. 
  
 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. 
  

 49 

 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 Lessor’s attorney’s fees. 
  
 ARTICLE XIX 
  
 Section 19.1. REIT Requirements. 
  
 (a) Lessee understands that, in order for Eagle Hospitality Properties 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 

  

 50 

 
such Fiscal Year (the “Personal Property Limitation”). If Lessor reasonably anticipates that the Personal Property Limitation will be exceeded with
respect to the Leased Property for any Fiscal Year, Lessor shall notify Lessee, and Lessee either (i) shall purchase at fair market value any personal property anticipated to be in excess of the Personal Property Limitation (“Excess Personal
Property”) either from Lessor or a third party or (ii) shall lease the Excess Personal Property from a third party. In either case, Lessee’s Rent obligation shall be equitably adjusted. Notwithstanding anything to the contrary set forth
above, Lessee shall not be responsible in any way for determining whether Lessee has exceeded or will exceed the Personal Property Limitation and shall not be liable to Lessor or any of its shareholders in the event that the Personal Property
Limitation is exceeded, as long as Lessee meets its obligation to acquire or lease any Excess Personal Property as provided above. 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. 
  
 (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 Eagle Hospitality Properties 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 Eagle Hospitality
Properties 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 Eagle Hospitality Properties Trust, Inc. within the
meaning of Section 856(1) of the Code. 
  
 (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 

  

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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 Eagle Hospitality Properties 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 Eagle Hospitality Properties Trust, Inc., and, where appropriate, at Eagle Hospitality Properties 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, Eagle Hospitality Properties
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 serving 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 management company that is an Eligible Independent Contractor (a “Manager”). 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 or disapprove in advance any Manager. 
  

 52 

 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% of 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 Lessee’s Personal Property or any litigation, proceeding or claim by governmental
entities or other 

  

 53 

 
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. 
  
 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) 

  

 54 

 
any act or omission of any person that acquires the Leased Property or any interest of Lesser in the Leased Property. 
  
 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. 

  

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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, attorney 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. 
  
 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 
  

 56 

 (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. 
  
 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.
Lessor shall provide at least 24 hours’ Notice to Lessee and the Manager prior to such inspection, except in the event of an emergency. 
  
 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 

  

 57 

 
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. 
  
 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. 
  

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 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. 
  
 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) 

  

 59 

 
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 Eagle Hospitality Properties Trust, Inc.,
                                        ,
Attention: J. William Blackham, facsimile number:                     , with a copy to
                    , Esq.,
                    ,
                                        
                    , facsimile number:
                    . 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. 
  
 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 

  

 60 

 
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. 
  

 61 

 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 

  

 62 

 
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.

  
 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 3.10 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 

  

 63 

 
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. 
  
 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. 
  
 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. 

 
 ARTICLE XXXVIII 
  
 [Intentionally Left Blank] 
  

 64 

 ARTICLE XXXIX 
  
 Section 39.1. 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 XXXIX. 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 XXXIX 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 XL 
  
 Section 40.1.
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 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. 
  

 65 

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

			
	LESSOR
	
	________________________________,
	 a ____________________________________

	 By:
	 	 _____________________________,

	 	 	 a ______________________________,

	 	 	 General Partner

					
			
	By:	 	 	 	 
	 Printed Name:
	 	 
	 Title:
	 	 	 	 

					
	
	 LESSEE

			
	 	 	 	 	 
	 a
	 	 	 	 

					
	 By:
	 	 	 	 
	 Printed Name:
	 	 
	 Title:
	 	 	 	 

  

 66 

 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

	
	 My commission expires:_______________________

  
 (SEAL) 
  

 67 

 EXHIBIT A 
  
 LEGAL DESCRIPTIONS 
  
 [Attached] 
  

 A-1 

 EXHIBIT B 
  
 The Term of the Lease shall be 15 years from the Commencement Date. 
  
 The Commencement Date is
                    , 2004, which is also 
 the commencement date of the Management Agreement. 
  

 B-1 

 EXHIBIT C 
  
 BASE RENT 
  
 Base Rent:                          per annum, payable in equal monthly installments.

  
 QUARTERLY REVENUES COMPUTATION 
  
 For the purposes of the Percentage Rent formula: 
  
 The Quarterly Revenues Computation is defined to mean the amount obtained by adding, for the
applicable calendar quarter, amounts equal to: 
  
 1. The First
Percentage Rent Percentage multiplied by year to date Room Revenues up to the year to date Quarterly Percentage Rent threshold described below; and 
  
 2. The Second Percentage Rent Percentage multiplied by the year to date Room Revenues exceeding the year to date Quarterly Percentage Rent threshold.

  
 The initial First Percentage Rent Percentage, the Second
Percentage Rent Percentage and the Quarterly Percentage Rent threshold for the Leased Property are listed below. 
  

																	
	 Hotel

	  	Base Rent

	  	Quarterly and Annual
Percentage Rent Thresholds

	  	Room Revenues
First Percentage
Rent Percentage

	  	Room Revenues
Second
Percentage
Rent Percentage

	 	  	 	  	1Q

	  	2Q

	  	3Q

	  	4Q

	  	YTD

	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 The Beverage Sales
Computation is equal to         % of year to date Beverage Sales for the applicable period. The Food Sales Computation is equal to         % of year to
date Food Sales for the applicable period. 
  

 C-76 

 EXHIBIT D 
  
 MANAGEMENT AGREEMENT 
  

 D-1

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