Document:

Exhibit

Exhibit 10.4

AMENDED AND RESTATED
MANAGEMENT AGREEMENT
between 
ESA P PORTFOLIO OPERATING LESSEE LLC 
(LESSEE) 
and 
ESA MANAGEMENT, LLC 
(MANAGER) 
August 30, 2016

TABLE OF CONTENTS

		
	ARTICLE I
	CERTAIN DEFINITIONS    2

		
	ARTICLE II
	ENGAGEMENT OF MANAGER AND  COMMENCEMENT OF MANAGEMENT OF THE HOTELS    4

		
	Section 2.1.
	Engagement of Manager to Manage Hotels    4

		
	Section 2.2.
	Management Commencement Date    5

		
	ARTICLE III
	OPERATION OF THE HOTELS AFTER THE MANAGEMENT COMMENCEMENT DATE    5

		
	Section 3.1.
	Duty and Authority of Manager    5

		
	Section 3.2.
	Operational Standards    7

		
	Section 3.3.
	Agreements with Related Parties    8

		
	Section 3.4.
	Emergency Repairs    8

		
	Section 3.5.
	Major Policy Matters and Decisions    8

		
	Section 3.6.
	Compliance with Trademark License Agreement    8

		
	Section 3.7.
	Marketing and Reservation Services    8

		
	Section 3.8.
	Financing Permitted    8

		
	Section 3.9.
	Credit Policies    9

		
	Section 3.10.
	Collection Practices    9

		
	Section 3.11.
	Centralized Services    9

		
	Section 3.12.
	Intellectual Property.    9

		
	ARTICLE IV
	OPERATING EXPENSES PAID BY LESSEE    11

		
	Section 4.1.
	Expenses Incurred by Manager on Behalf of Lessee    11

		
	Section 4.2.
	Debts and Liabilities to Third Parties    11

		
	Section 4.3.
	Manager Not Obligated to Advance Own Funds    11

		
	ARTICLE V
	CONSULTING SERVICES OF MANAGER’S AFFILIATES    11

		
	ARTICLE VI
	COMPLIANCE WITH LAWS    11

		
	Section 6.1.
	Compliance by Manager and Lessee After Management Commencement Date    11

		
	Section 6.2.
	Lessee’s Right to Contest or Postpone Compliance    12

		
	Section 6.3.
	Manager’s Right to Terminate Agreement    12

		
	ARTICLE VII
	HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT    12

		
	Section 7.1.
	Hotel Account    12

		
	Section 7.2.
	Operating Funds    13

		
	Section 7.3.
	Intentionally deleted    13

		
	Section 7.4.
	Fidelity Bonds    13

		
	ARTICLE VIII
	BOOKS, RECORDS AND FINANCIAL STATEMENTS    13

		
	Section 8.1.
	Accounting System    13

		
	Section 8.2.
	Financial Statements    13

		
	Section 8.3.
	Periodic Delivery of Data in Electronic Form    14

		
	ARTICLE IX
	ANNUAL BUSINESS PLAN    14

		
	Section 9.1.
	Preparation of Annual Business Plan    14

		
	Section 9.2.
	Annual Business Plan Disputes    15

		
	Section 9.3.
	Deviations from Annual Business Plan    15

		
	ARTICLE X
	MANAGER’S FEES AND REIMBURSEMENTS    15

		
	Section 10.1.
	Management Fee    15

		
	Section 10.2.
	Reimbursement of Certain Expenses    16

		
	Section 10.3.
	Technical Services    16

		
	Section 10.4.
	Intentionally Omitted.    16

		
	Section 10.5.
	Other Hotel Revenue and Expenses    16

		
	ARTICLE XI
	INSURANCE    17

		
	Section 11.1.
	Insurance Coverage    17

		
	Section 11.2.
	Waiver of Subrogation; Lessee Assumes Risk of Adequacy    17

		
	ARTICLE XII
	TERM OF AGREEMENT AND TERMINATION    17

		
	Section 12.1.
	Term    17

		
	Section 12.2.
	Early Termination    17

		
	Section 12.3.
	Termination Procedure    17

		
	Section 12.4.
	Obligations Following Termination    18

		
	Section 12.5.
	Intentionally Omitted    19

		
	Section 12.6.
	Survival    19

		
	ARTICLE XIII
	REPRESENTATIONS AND COVENANTS    19

		
	Section 13.1.
	Lessee’s Representations    19

		
	Section 13.2.
	Manager’s Representations    20

		
	Section 13.3.
	Manager’s Covenants    20

		
	ARTICLE XIV
	ASSIGNMENT    21

		
	ARTICLE XV
	CONFIDENTIALITY    21

		
	ARTICLE XVI
	INDEMNIFICATION AND LIMITATION OF LIABILITY    21

		
	Section 16.1.
	Lessee’s Indemnification    21

		
	Section 16.2.
	Manager’s Indemnification    21

		
	Section 16.3.
	Indemnification Procedure    22

		
	Section 16.4.
	Good Faith Judgment    22

		
	Section 16.5.
	Survival    22

		
	ARTICLE XVII
	MISCELLANEOUS    22

		
	Section 17.1.
	Severability    22

		
	Section 17.2.
	No Partnership    23

		
	Section 17.3.
	Meetings    23

		
	Section 17.4.
	Consents    23

		
	Section 17.5.
	Applicable Law    23

		
	Section 17.6.
	Successors Bound    23

		
	Section 17.7.
	Headings    23

		
	Section 17.8.
	Incorporation of Recitals    23

		
	Section 17.9.
	Notices    23

		
	Section 17.10.
	Entire Agreement; Amendments    24

		
	Section 17.11.
	Manager’s Authority Limited    24

		
	Section 17.12.
	Exclusive Compensation    24

		
	Section 17.13.
	Property Rights    24

		
	Section 17.14.
	Attorneys’ Fees    24

		
	Section 17.15.
	Complimentary/Discount Policies    24

		
	Section 17.16.
	No Third Party Beneficiary    24

		
	Section 17.17.
	REOC    24

		
	Section 17.18.
	Amendment and Restatement    25

AMENDED AND RESTATED MANAGEMENT AGREEMENT
THIS AMENDED AND RESTATED MANAGEMENT AGREEMENT (this “Agreement”) is made as of August 30, 2016 by and between ESA P PORTFOLIO OPERATING LESSEE LLC (f/k/a ESA P Portfolio Operating Lessee Inc. (f/ka BRE/ESA P Portfolio Operating Lessee Inc.)), a Delaware limited liability company (“Lessee”), and ESA MANAGEMENT, LLC, a Delaware limited liability company (“Manager”).
BACKGROUND
A.    ESA P Portfolio L.L.C., a Delaware limited liability company, ESH/TN Properties L.L.C., a Delaware limited liability company, ESA P Portfolio MD Trust, a Delaware statutory trust (each referred to herein as “Owner”, and collectively, as “Owners”) are the owners of those certain properties constituting various hotel properties more specifically described in Schedule A attached hereto and the buildings, structures, fixtures and additions now or hereafter located thereon (collectively, the “Hotels”);
B.    The Owners have entered into that certain Lease Agreement dated as of October 8, 2010 with Lessee, as amended by (a) that certain First Amendment to Lease Agreement dated as of April 9, 2012, (b) that certain Second Amendment to Lease Agreement dated as of November 30, 2012, (c) that certain Third Amendment to Lease Agreement dated as of December 13, 2012, (d) that certain Fourth Amendment to Lease Agreement dated as of April 15, 2013, (e) that certain Fifth Amendment to Lease Agreement dated as of November 11, 2013, (f) that certain Sixth Amendment to Lease Agreement dated as of July 28, 2014, (g) that certain Seventh Amendment to Lease Agreement dated as of December 8, 2015, (h) that certain Eighth Amendment to Lease Agreement dated as of February 22, 2016, and as amended and restated by that certain Amended and Restated Lease Agreement dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified, the “Operating Lease”) pursuant to which each Owner has leased its applicable Hotel to Lessee pursuant to the terms thereof;
C.    Manager is an independent contractor engaged in the management of hotels throughout the United States, and Manager is experienced in the various phases of hotel operations; and
D.    Lessee entered into that certain Management Agreement dated as of November 11, 2013 with Manager, as amended by that certain (a) First Amendment to Management Agreement dated as of July 28, 2014, and (b) Agreement Regarding Management Agreement dated as of December 8, 2015 (collectively, the “Original Management Agreement”).
E.    Lessee and Manager desire to amend and restate the Original Management Agreement pursuant to the terms set forth herein.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing recitals and the premises and the mutual covenants herein contained, the parties hereby amend and restate the Original Management Agreement in its entirety as follows: 
ARTICLE I 
CERTAIN DEFINITIONS
“Accounting Period” shall mean each of 12 accounting periods of one calendar month occurring each Fiscal Year.
“Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, (a) controls, is under common control with, or is controlled by such specified Person and (b) owns at least 10% of, is under common ownership of at least 10% with, or is owned at least 10% by, such specified Person.  For purposes of this definition, the term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management, policies, or activities of a Person, whether through ownership of voting securities, by contract, or otherwise. 
“Annual Business Plan” shall have the meaning set forth in Section 9.1.
 “Centralized Services” shall have the meaning set forth in Section 3.11. 
“Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated thereunder, each as amended from time to time.
“Emergency Repairs” shall mean repairs which are necessary, as a result of emergencies, to protect, maintain, or repair the Hotels. Emergencies, for the purposes hereof, shall mean immediate threats of damage or injury to persons or property or immediate threats of violations of law.
“ESH Hospitality” shall mean ESH Hospitality, Inc. (f/k/a ESH Hospitality, LLC), a Delaware corporation, which will elect to be taxable as a real estate investment trust under Section 856(c) of the Code, together with its successors and assigns. 
“ESH IP” shall mean all names, trademarks, domain names and other intellectual property used in connection with the ownership, management or operation of any Hotel.
“FF&E Percentage Contribution” shall have the meaning set forth in Section 7.3.
“Fiscal Year” shall mean a Calendar Fiscal Year starting on January 1 and ending on December 31 or portion thereof depending upon the Management Commencement Date and the termination date hereunder.
“Furniture, Fixtures and Equipment” shall mean furniture, furnishings, light fixtures, outfittings, equipment and all other items of personal property customarily installed in or used in connection with the operation of the Hotels (it being understood, for the avoidance of doubt, that Furniture, Fixtures and Equipment shall not include major capital improvements to the Hotels). 
“GAAP” shall mean generally accepted accounting principles, as in effect from time to time in the United States of America, consistently applied. 
“Gross Operating Revenues” shall mean all receipts, revenues, income and proceeds of sales of every kind received by Manager from the operation of the Hotels, and shall include, without limitation: room rentals; rent or other payments received from sub-tenants, licensees, and occupants of commercial and retail space located in the Hotels (provided that the income and/or revenue received by any licensees, subtenants or other occupants which are Affiliates of Owner or Lessee shall not be included in Gross Operating Revenues); the proceeds of insurance received by Owner, Lessee or Manager with respect to use and occupancy or business interruption insurance; deposits forfeited and not refunded; frequent guest program payments; and any amount recovered in any legal action or proceeding or settlement thereof pertaining to room revenues or other income from the Hotels which arose out of the operation of the Hotels. Gross Operating Revenues shall exclude all sales and excise taxes and any similar taxes collected as direct taxes payable to taxing authorities; gratuities or service charges collected for payment to and paid to employees; credit or refunds to guests; proceeds of insurance, save and except for proceeds of insurance with respect to use and occupancy or business interruption insurance; proceeds of sales of depreciable property; and proceeds of condemnation.
“Group Services” shall have the meaning set forth in Section 10.2.
“Hotel Account” shall have the meaning set forth in Section 7.1.
“Hotel Information” shall mean information collected and maintained by Manager in connection with its operation and management of the Hotels pursuant to this Agreement, regardless of the form or medium involved (e.g., paper, electronic, disc, tape, etc.), including without limitation, books of account, guest records, customer lists, front office records and other records relating to, or reflecting the operation of, the Hotels. 
“Hotels” shall have the meaning set forth in Paragraph A of the Background section.
“Independent Auditor” shall mean a reputable national firm of independent certified public accountants having hotel experience, recommended by Manager from time to time and approved by Lessee.
“Laws” shall have the meaning set forth in Section 6.1.
 “Licensed Intellectual Property” shall have the meaning set forth in Section 3.12(b). 
“Licensor” shall mean ESH Strategies Branding LLC, a Delaware limited liability company, together with its successors and assigns.
 “Management Commencement Date” shall have the meaning set forth in Section 2.2.
“Management Fee” shall have the meaning set forth in Section 10.1.
“Operating Equipment” shall mean non-consumable equipment and supplies required for the operation of the Hotels, including chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies.
“Operating Funds” shall have the meaning set forth in Section 7.2.
“Operating Lease” shall have the meaning set forth in Paragraph B of the Background section.
“Operating Licenses” shall have the meaning set forth in Section 3.1(e).
“Operating Supplies” shall mean food and beverages and other consumable items used in the operation of a hotel, such as fuel, soap, cleaning materials, matches, stationery, brochures, folios and all other items used in the routine operation of the Hotels which are consumable by nature.
“Owner” and “Owners” shall have the meaning set forth in Paragraph A of the Background section.
“Parent” shall have the meaning set forth in Section 17.17 .
“Person” means any individual or entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such Person where the context so admits.
“REOC” shall have the meaning set forth in Section 17.17.
“Reserve Fund” shall have the meaning set forth in Section 7.3.
“Trademark License Agreement” shall mean that certain Trademark License Agreement, dated as of October 8, 2010, between ESH Strategies Branding LLC and ESA P Portfolio Operating Lessee Inc., as amended by that certain First Amendment to Trademark License Agreement, dated as of November 30, 2012, as further amended by that certain Second Amendment to Trademark License Agreement, dated as of December 13, 2012, as further amended by that certain Third Amendment to Trademark License Agreement, dated July 28, 2014, as further amended by that certain Fourth Amendment to Trademark License Agreement, dated as  of December 8, 2015.
“Uniform System” shall mean the Uniform System of Accounts for Hotels, “Tenth Revised Edition”, as revised and adopted by the Hotel Association of New York City, Inc. from time to time.
ARTICLE II 
ENGAGEMENT OF MANAGER AND  
COMMENCEMENT OF MANAGEMENT OF THE HOTELS
Section 2.1.    Engagement of Manager to Manage Hotels.  Lessee hereby appoints Manager as Lessee’s exclusive manager, subject to the terms of this Agreement, to supervise, direct and control the management and operation of the Hotels, and Manager hereby undertakes and agrees to perform, as an independent contractor of Lessee, all of the services and to comply with all of the provisions of this Agreement, upon all of the terms and conditions hereinafter set forth.
Section 2.2.    Management Commencement Date.  Manager assumed management and operation of the Hotels as of November 11, 2013 (the “Management Commencement Date”).  
ARTICLE III 
OPERATION OF THE HOTELS AFTER THE 
MANAGEMENT COMMENCEMENT DATE
Section 3.1.    Duty and Authority of Manager.  On and after the Management Commencement Date, except as expressly limited hereby, Manager shall have the exclusive authority and duty to direct, supervise, manage and operate the Hotels in an efficient and economical manner and to determine the programs and policies to be followed in connection therewith, all in accordance with the provisions of this Agreement and the Annual Business Plan. Manager shall at all times be an independent contractor and not the employee of Owner or Lessee.  Subject to the provisions of this Agreement and the Annual Business Plan, Manager shall have the discretion and control in all matters relating to the management and operation of the Hotels.  Without limiting the generality of the foregoing, Manager shall have the authority (subject to the provisions of this Agreement and the Annual Business Plan) and duty to: 
(a)    Hire, supervise, direct the work of, discharge and determine the compensation and other benefits of all personnel working in the Hotels pursuant to a written program of benefits, perquisites and policies which has been delivered to and approved by Lessee.  Manager shall be the judge of the fitness and qualifications of such personnel and shall be vested with discretion in the hiring, training, supervision, direction, discharging, and determination of the compensation and other benefits of such personnel during the course of their employment.  It is expressly understood and agreed that all personnel are in the sole employ of Manager or such company as Manager may contract with regarding said personnel and are not in the employ of Lessee or Owner and Lessee will not interfere with or give orders or instructions to personnel employed at the Hotels.
(b)    Reasonably employ the resources of its home office and regional facilities and personnel to supervise and assist in the operation of the Hotels. Manager shall provide the following supervisory services: maintenance, human resources and personnel, administration, hotel operations, housekeeping, advertising, food and beverage operations, sales promotion, forecasting and operations analysis, staff planning, accounting, marketing, revenue management, Information Systems, travel commission, training and oversight of reservations. The foregoing supervisory services may be provided by Manager’s corporate officers, Manager’s employees, home office administrative heads or otherwise and shall be provided by Manager at its own expense, including, without limitation, the out-of-pocket expenses, and not charged to Owner, except as otherwise specifically provided for in this Agreement.
(c)    Establish all prices, price schedules, rates and rate schedules (with the goal of maximizing revenue per available room), rents, lease charges, concession charges, and, in connection therewith, the supervision, direction and control of the collection, receipt and giving of receipts for all services or income of any nature from the operations of the Hotels.
(d)    Supervise and maintain complete books and records, including without limitation, the books of accounts and accounting procedures of the Hotels.
(e)    Obtain and maintain all licenses and permits required for the operation of the Hotels (the “Operating Licenses”). The Operating Licenses may be in the name of Manager, Lessee or Owner in accordance with or as required by local laws, customs and practices.
(f)    Administer leases, license and concession agreements for all public space at the Hotels, including all stores, office space and lobby space. All such leases, licenses or concessions shall be in Lessee’s name and may be executed by Manager on Lessee’s behalf after any such lease, license or other agreement has been approved by Lessee.
(g)    Keep the Hotels and the Furniture, Fixtures and Equipment in good order, repair and condition, including, without limitation, making necessary replacements, improvements, additions and substitutions to the Hotels, subject to the approved Annual Business Plan. Manager shall effect, institute, and/or supervise all decorations, routine construction, maintenance, repairs and alterations, including, but not limited to, the administration of a preventive maintenance program for all mechanical, electrical and plumbing systems and equipment, for the Hotels to ensure that the Hotels will be competitive in its market and in compliance with governmental regulations, the requirements of the Trademark License Agreement and with industry standards, provided that the costs therefor (unless the same relate to emergencies) are included in the Annual Business Plan or are otherwise approved in writing, in advance, by Lessee.  Subject to the limitations set forth in and imposed by the Annual Business Plan, Manager will have the right to make such alterations, additions or improvements to the Hotels as are customarily made in the operation or comparable hotels; provided, however, that no structural alterations, additions or improvements involving a fundamental change in the character of the Hotels will be made without Lessee’s prior written approval.  The cost of such customary alterations, additions or improvements will be paid either out of the Gross Operating Revenues and charged directly to current operating expenses of the Hotels or will be paid from the Reserve Fund and capitalized and amortized on the books of the Hotels.
(h)    Negotiate and enter into, on behalf of Lessee, service contracts and licenses required in the ordinary course of business in operating the Hotels, including, without limitation, contracts for life/safety systems maintenance, electricity, gas, telephone, cleaning, elevator and boiler maintenance, air conditioning maintenance, master television service, laundry and dry cleaning, and other services which Manager deems advisable; provided, however, any contract for a term in excess of one (1) year or which is not terminable without fee or penalty upon not more than sixty (60) days written notice or under which the total amount payable is $5,000 or more per Hotel and which is not covered in the Annual Business Plan shall, be approved by Lessee, which approval shall not be unreasonably withheld or delayed.
(i)    Negotiate and enter into, on behalf of Lessee, agreements for banquet facilities and guest rooms and agreements to provide entertainment for the Hotels, and licenses for copyright music and videos.
(j)    Supervise and purchase or arrange for the purchase in the most economical manner of all inventories, provisions, Operating Equipment and Operating Supplies, which, in the normal course of business, are necessary and proper to maintain and operate the Hotels.
(k)    Prepare and submit to Lessee the Annual Business Plan, as hereinafter described in Section 9.1.
(l)    Consult with Lessee at least quarterly to discuss the operation and management of the Hotels and the performance of Manager’s duties under this Agreement.
(m)    Prepare, or engage an accounting firm reasonably approved by Lessee to prepare, any tax returns and statements which must be filed in connection with the ownership, operation or management of the Hotels (e.g., sales, use and occupancy taxes, real property taxes, and the like), and shall file (or cause to be filed) such returns and statements and, subject to the availability of Lessee funds, pay (or cause to be paid) such taxes, all in accordance with applicable Laws. 
(n)    At Lessee’s request, advise and assist Lessee in connection with negotiating and prosecuting any claims for the abatement, reduction or refund of property taxes affecting the Hotels. 
(o)    Cooperate reasonably with and assist Lessee in any legal proceedings by or against Lessee or Owner with regard to the Hotels and involving third parties. 
(p)    Perform such other tasks as are customary and usual in the operation of a hotel of a class and standing consistent with the Hotels’ facilities.
(q)    Prepare and maintain all records and reports relating to the Hotels necessary to demonstrate and support ESH Hospitality’s status as a real estate investment trust for tax purposes.
Section 3.2.    Operational Standards.  (a)  Manager will operate the Hotels at the expense of Lessee in accordance with and subject to the provisions of this Agreement and the Annual Business Plan. Manager shall manage the Hotels in a manner normally associated with extended stay hotels of similar size, type, or usage in similar locations.  Manager shall use due care with respect to the management, maintenance, and protection of, and accounting for, Lessee’s and Owner’s assets.
(b)    Manager shall manage and operate the Hotels and its businesses, services, and sales and shall exercise diligent efforts to do so at all times in a manner consistent with the standards imposed by the Trademark License Agreement, the Operating Lease, the requirements of all governmental regulations, and the requirements of this Agreement. 
(c)    Manager shall implement policies and practices to: (i) facilitate effective and efficient discharge of its obligations under this Agreement; and (ii) to create and enhance goodwill among existing and prospective guests and patrons. 
Section 3.3.    Agreements with Related Parties.  Manager shall not enter into any contract with an Affiliate of Manager in connection with the Hotels or Manager’s services under this Agreement, including, without limitation, for operating, cleaning, maintaining, repairing or servicing the Hotels, without the express prior written consent of Lessee, which consent may be evidenced by Lessee’s approval of the Annual Business Plan.
Section 3.4.    Emergency Repairs.  In the event Emergency Repairs are needed at the Hotels, Manager shall be required to use its good faith efforts to obtain Lessee’s verbal approval of any Emergency Repairs prior to making any expenditure therefor.  In the event Manager is unable to contact Lessee to obtain its verbal approval of Emergency Repairs, then Manager is authorized to enter into contracts occasioned by such emergency that provide for expenditures not contemplated by the Annual Business Plan up to a sum of $50,000. Manager will promptly give Lessee written notice of any Emergency Repairs made by Manager.
Section 3.5.    Major Policy Matters and Decisions.  (a)  Manager shall submit outlines, in reasonable detail, to Lessee setting forth its plans for and/or any major changes in its management and operation of the Hotels that are likely to have a material effect upon the profitability of the Hotels prior to Manager’s institution of such changes. 
(b)    Manager shall not make any major policy decisions or changes not reflected in the applicable Annual Business Plan that would have a potentially material effect on the operations of the Hotels without first obtaining Lessee’s approval of such policy change. 
Section 3.6.    Compliance with Trademark License Agreement.  Manager shall administer compliance with the Trademark License Agreement.
Section 3.7.    Marketing and Reservation Services.  Manager shall cause the Hotels to be included in the national advertising programs and central reservation system for all hotels operated under the trademarks and trade names covered by the Trademark License Agreement.
Section 3.8.    Financing Permitted.  
(a)    Nothing herein contained shall prevent Lessee or Owner from encumbering the Hotels by mortgage, deed of trust, or trust deed in the nature of a mortgage.
(b)    Subject to availability of Lessee funds, Manager shall use diligent efforts to cause the operation of the Hotels to comply with all terms, conditions, and obligations contained in any loan documents entered into by Lessee or Owner, at any time and from time to time, in connection with Lessee’s or Owner’s financing arrangements (collectively, the “Loan Documents”), of which Manager is made aware (provided that Manager shall be under no obligation to ensure that sufficient funds for payment thereof are generated from Hotels operations), and with any leases, Lessee’s organizational documents, or other agreements of which Manager is made aware that are executed by Lessee or Owner and that relate to the Hotels.  Manager acknowledges that the terms and provisions of the Loan Documents may provide different standards or requirements with respect to certain matters covered by this Agreement.  To the extent the provisions of this Agreement are inconsistent with restrictions imposed by the Loan Documents, so long as Manager has been notified in writing of such restrictions, the provisions of the Loan Documents shall govern with respect to the matters covered hereby. 
(c)    Upon the execution of any Loan Documents, Lessee shall furnish Manager with a duplicate copy thereof and, if not designated in such Loan Documents, shall designate the post office address where notices may be served upon the lender thereunder (“Lender”).  Manager agrees that, so long as any such Loan Document shall constitute a lien on the Hotels, when Lender shall request in writing copies of any and all financial or other information, required to be prepared or maintained by Manager, pursuant to the terms and provisions of this Agreement, Manager shall, at Lessee’s direction, deliver same to Lender as often as Lessee may reasonably request. Moreover, Manager shall allow, upon request of Lessee, any person designated in writing by Lender to examine, audit, inspect, and transcribe all books of account and all other records relating to or reflecting the operation of the Hotels. 
(d)    Subject to the applicable terms and conditions of the Loan Documents, this Agreement and the rights of Manager hereunder are and shall be expressly subordinate and inferior to the rights of Lender under the Loan Documents as and to the extent provided therein. 
Section 3.9.    Credit Policies.  Manager shall establish and implement policies and procedures for verifying, accepting, limiting, and rejecting the credit of guests and patrons of the Hotels. In connection with the foregoing, Manager shall make appropriate arrangements to honor American Express, Visa, MasterCard, such credit cards as may be required or provided by Licensor, and such other credit cards as Manager or Lessee may deem desirable. Manager shall utilize its best efforts to make such arrangements on the most favorable terms available.
Section 3.10.    Collection Practices.  Manager shall employ its best efforts to collect any and all credit card charges, checks, traveler’s checks, drafts, and other accounts receivable. Manager shall employ collection agencies and legal counsel, where appropriate, to pursue such claims.
Section 3.11.    Centralized Services.  Manager shall provide, or shall cause one or more of its Affiliates to provide, in the operation of the Hotels and for the benefit of its guests, those benefits, services, and facilities, including joint advertising programs to the extent appropriate (all herein collectively called “Centralized Services”), similar to those furnished to other hotels owned and/or operated by Manager or its Affiliates. 
Section 3.12.    Intellectual Property.
(a)    Manager acknowledges that the Licensor is the sole and exclusive owner of all rights, title and interest to the ESH IP, which shall in all events remain the exclusive property of the Licensor (or one or more of Licensor’s Affiliates).  Manager further acknowledges that, pursuant to the Trademark License Agreement, Lessee and its Affiliates have a license to use the ESH IP, which license shall in all events remain the exclusive property of Lessee (or one or more of Lessee’s Affiliates).  All use of the ESH IP at or in connection with the Hotels or as otherwise contemplated by this Agreement, and all goodwill arising therefrom or symbolized thereby, shall inure solely to the benefit of Lessee, Licensor and their respective Affiliates, as applicable.  Nothing in this Agreement shall be construed to grant Manager any right of ownership in, or right to use, or right to license others to use, the ESH IP, except in connection with fulfilling its duties and obligations under this Agreement.  Manager may not otherwise use the ESH IP without the prior written consent of Licensor or Lessee, which may be withheld in Licensor’s or Lessee’s sole and absolute discretion, in any manner whatsoever and shall not apply for registration of any ESH IP or any other intellectual property confusingly similar thereto in any jurisdiction.
(b)    Manager acknowledges that Lessee or its Affiliates are or may become the licensee of certain intellectual property including intellectual property that may be embodied in software for use at one or more facilities leased by Lessee or its Affiliates and all source and object code versions thereof and all related documentation, flow charts, user manuals, service/operator manuals and any enhancements, modifications or substitutions thereof (all such intellectual property herein collectively called “Licensed Intellectual Property”).  Except as otherwise specified by Lessee, Manager may utilize the Licensed Intellectual Property to the extent that Manager deems appropriate in connection with the operation of the Hotels for the purpose of carrying out its obligations hereunder, but such use shall be strictly on a non-exclusive basis and neither such use nor anything contained in this Agreement shall confer any proprietary or other rights in the Licensed Intellectual Property on Manager or any third parties.  
(c)    Upon the expiration or earlier termination of this Agreement, any use of or right to use any of the ESH IP or Licensed Intellectual Property at or in connection with the Hotels by Manager shall cease forthwith.  In the event of the expiration or earlier termination of this Agreement, Manager shall immediately cease using all ESH IP and Licensed Intellectual Property, except to the extent that Manager may be authorized to continue using the same pursuant to, and in accordance with, the terms and conditions of any separate management or license agreement between Manager and any Affiliate of Lessee or any licensee or franchisee that is otherwise authorized to use any such ESH IP or Licensed Intellectual Property.  Further, Manager will have no right whatsoever from and after the date of expiration or earlier termination to make use of or to dispose of any furnishings and equipment, Operating Equipment and Operating Supplies bearing or incorporating any ESH IP except upon and in accordance with the terms and provisions of this Section 3.12(c).  Specifically, it is understood and agreed that Manager may not make any use of such property from and after the effective date of such expiration or earlier termination unless Manager is specifically authorized in writing (whether under license from Lessee, Licensor or otherwise, other than by this Agreement) to use property bearing any ESH IP, nor may Manager dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Lessee or Licensor (whether under license from Lessee or Licensor or otherwise) to use property bearing or incorporating any ESH IP. 
(d)    Lessee, Licensor and their respective Affiliates shall have the right to injunctive relief and any other right or remedy available at law or in equity to enforce the provisions of this Section 3.12. 
(e)    The provisions of this Section 3.12 shall survive expiration or earlier termination of this Agreement.
ARTICLE IV 
OPERATING EXPENSES PAID BY LESSEE
Section 4.1.    Expenses Incurred by Manager on Behalf of Lessee.  Everything done by Manager in the performance of its obligations and all expenses incurred under and in accordance with this Agreement shall be for and on behalf of Lessee and for Lessee’s account, except the services referred to in Article V, which shall be rendered and performed by Manager or its Affiliates at their expense and not separately charged to Lessee, except as otherwise provided in Section 10.2.
Section 4.2.    Debts and Liabilities to Third Parties.  As between Lessee and Manager under this Agreement, all debts and liabilities arising in the course of business of the Hotels are and shall be the obligations of Lessee, and, provided such debts and liabilities have been incurred in accordance with the terms and provisions of this Agreement, Manager shall not be liable for any of such obligations by reason of its management, supervision and operation of the Hotels for Lessee.   
Section 4.3.    Manager Not Obligated to Advance Own Funds.  Neither Manager nor any of its Affiliates shall be obligated to advance any of its own funds to or for the account of Lessee, nor to incur any liability unless Lessee shall have furnished Manager with funds necessary for the discharge thereof prior to incurring such liability. If Manager shall have advanced any funds in payment of a permitted expense in the maintenance and operation of the Hotels, Lessee shall reimburse Manager therefor on demand. Notwithstanding the foregoing, Manager shall pay from its own funds the expenses hereinafter described in Article V.
ARTICLE V 
CONSULTING SERVICES OF MANAGER’S AFFILIATES
Except as hereinafter provided in Section 10.2, after the Management Commencement Date, the normal consulting services of the corporate officers and employees of Manager or Manager’s Affiliates, including its corporate executives for operations, human resources, training, food and beverage, finance and administration and real estate, to be rendered from time to time to Manager in connection with the operations of the Hotels, shall be provided by corporate officers and employees of Manager or Manager’s Affiliates to Manager at Manager’s sole cost and expense and not charged to Lessee hereunder.  In no event shall Manager’s Affiliates be deemed a party to this Agreement or responsible in any way for Manager’s obligations pursuant to this Agreement by virtue of providing the foregoing services to Manager (or any of the services described in Section 10.2 and Lessee reimbursing Manager for the expenses in connection therewith).
ARTICLE VI 
COMPLIANCE WITH LAWS
Section 6.1.    Compliance by Manager and Lessee After Management Commencement Date.  Manager shall make all reasonable efforts, at expense of Lessee, to assure full compliance with all laws, rules, regulations, requirements, orders, notices, determinations and ordinances of any governing authority (collectively, “Laws”) relating to the management, leasing, use, operation, repair, supervision and maintenance of the Hotels, including, without limitation, the state and local liquor authorities, the Board of Fire Underwriters and the requirements of any insurance companies covering any of the risks against which the Hotels is insured. Unless otherwise directed by Lessee, Manager shall, at Lessee’s expense, promptly remedy any violation of any such governmental regulation which comes or should have come to its attention, which remedy shall be carried out solely at Lessee’s expense (subject to the limitations set forth elsewhere herein) unless caused by an action or omission of Manager not authorized pursuant to this Agreement or unless Manager has failed to fulfill its duty as required in the immediately preceding sentence, in which event all costs shall be paid solely by Manager.
Section 6.2.    Lessee’s Right to Contest or Postpone Compliance.  With respect to a violation of any Laws, Lessee shall have the right to contest any of the foregoing and postpone compliance pending the determination of such contest, if so permitted by law and not detrimental to the operation of the Hotels, but in such event, Lessee shall indemnify and hold harmless Manager from any loss, cost, damage or expense, as a result thereof.
Section 6.3.    Manager’s Right to Terminate Agreement.  Notwithstanding anything in this Agreement to the contrary, if within 30 days of receiving Manager’s written request (accompanied by a statement of Manager’s intention to elect to cancel this Agreement if Lessee fails to give its approval as provided below) Lessee fails to approve the changes, repairs, alterations, improvements, renewals or replacements to the Hotels which Manager determines in its reasonable judgment are necessary to protect the Hotels, Lessee and/or Manager from innkeeper liability exposure then Manager may terminate this Agreement any time after such 30 day period upon 7 days’ written notice; provided, however, that if termination of this Agreement could result in acceleration of any indebtedness secured by the Loan Documents, then Manager shall not have such right of termination, and in such event, Lessee’s indemnification in Section 16.1 shall apply to such innkeeper liability as set forth above.
ARTICLE VII 
HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT
Section 7.1.    Hotel Account.  (a)  All monies received by Manager in the operation of the Hotels, excluding the Operating Funds furnished by Lessee shall be deposited in a special account or accounts (collectively, the “Hotel Account”), in Lessee’s name (or in Manager’s name, as agent of Lessee), in the bank or trust company recommended by Manager and approved by Lessee. Such monies shall not be mingled with Manager’s other funds.  Out of the Hotel Account, Manager shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any kind due it pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of Manager only, provided such representatives are bonded or otherwise insured, and Manager shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by the bonding or insurance company to Lessee.  Manager may utilize its centralized disbursement accounts in its name for accounts payable and payroll disbursements, provided that Manager shall only transfer the necessary amount of funds from the Hotel Account to such centralized disbursement accounts required to make such disbursements on behalf of the Hotels. 
(b)    Manager will maintain the Hotel Account on Lessee’s behalf and all funds received from Lessee will be and remain the property of Lessee and will be disbursed by Manager only as set forth in this Agreement. Any and all expenses of the Hotels paid by Manager must pass through and be withdrawn from the Hotel Account. Lessee shall have the right from time to time to direct Manager to change either the depository bank or the depository arrangements and Manager shall implement such changes promptly. Lessee shall have the right to approve and to maintain control of signature cards for the Hotel Account; provided, however, Lessee shall not withdraw funds from such accounts except as provided below.
Section 7.2.    Operating Funds.  From and after the Management Commencement Date, Lessee shall, if and as required, maintain cash in the Hotel Account (“Operating Funds”) sufficient in amount to enable Manager to properly manage and operate the Hotels. 
Section 7.3.    Intentionally deleted. 
Section 7.4.    Fidelity Bonds.  Manager shall obtain a fidelity bond or insurance, in an amount not less than $1,000,000 (or such other amount reasonably required by Lessee consistent with the commercial availability thereof, the size and scope of Lessee ‘s business being handled by Manager hereunder and reasonable business practice), issued by a company reasonably acceptable to Lessee, covering Manager and such of Manager’s on-site employees who may handle or be responsible for monies or property of Lessee and place policies of insurance covering the Hotels as directed by Lessee.
ARTICLE VIII 
BOOKS, RECORDS AND FINANCIAL STATEMENTS
Section 8.1.    Accounting System.  Manager shall keep full and adequate books of account and other records reflecting the results of operation of the Hotels on an accrual basis, all in accordance with GAAP and, as and to the extent applicable to the Hotels, the Uniform System.  The Fiscal Year used by Manager will consist of 12 Accounting Periods of one calendar month each.  The Hotel Information shall be kept at the Hotels and/or Manager’s home office and computer storage systems and shall be available to Lessee and its representatives at all reasonable times for examination, audit, inspection and transcription.  All of the Hotel Information, at all times, shall be the property of Lessee.  Manager shall treat as confidential any Hotel Information in its possession, and shall not disclose to any third party, without the prior written consent of Lessee (which approval and consent may be withheld in Lessee’s sole discretion) any Hotel Information, except as may be necessary to perform its duties and obligations under this Agreement or as may be necessitated by any applicable Laws.  Upon the expiration or earlier termination of this Agreement, all Hotel Information shall be turned over to Lessee to ensure the orderly continuation of the operation of the Hotels, but the books and records shall thereafter be available to Manager at all reasonable times for inspection, audit, examination and transcription. 
Section 8.2.    Financial Statements.  
(a)    Manager shall deliver to Lessee within twenty (20) days after the end of each Accounting Period a profit and loss statement showing the results of the operation of the Hotels for such Accounting Period, the Fiscal Year to date, and the trailing twelve (12) month period, and a statement of gross revenues received from rooms, food and beverage and other sources, guest room occupancy percentage, average room rates, total expenses paid and a cash forecast.  Information relating to other matters pertaining to the management, operation, maintenance, and supervision of the Hotels not covered in such monthly operating reports as Lessee shall reasonably request will be provided to Lessee (provided such information is generally within the scope of Manager’s other obligations and duties hereunder), within 20 days of such request. 
(b)    Manager shall deliver to Lessee within forty-five (45) days after the end of each of the first, second and third calendar quarters, quarterly financial statements in consistent form and presentation to the annual combined balance sheet, income statement and statement of cash flows, exclusive of footnotes, accompanied by a reconciliation to the year-to-date monthly property operations reports and capital expenditures report. 
(c)    Manager shall cooperate with the Independent Auditor so as to allow the Independent Auditor to deliver to Lessee within 90 days after the end of each Fiscal Year a profit and loss statement showing the result of operation of the Hotels during such Fiscal Year, and the net operating income or loss, if any, for such Fiscal Year and a balance sheet for the Hotels as of the close of such Fiscal Year. Manager shall, together with such statement, deliver to Lessee a statement of income and expenses for such Fiscal Year and a statement of balances in the Hotel Account.  Any disputes as to the contents of any such statements or any accounting matter hereunder, shall be determined by the Independent Auditor whose decision shall be final and conclusive on Manager and Lessee. 
Section 8.3.    Periodic Delivery of Data in Electronic Form.  Upon request by Lessee (but not more than twice in any calendar year), Manager shall deliver to Lessee, within a reasonable period of time after such request, a copy of such Hotel Information as may be requested by Lessee (or if Lessee has previously made a request under this Section 8.3 for such Hotel Information, a copy of all such Hotel Information collected since such previous request) collected or maintained by Manager, in such electronic format as Lessee may reasonably require. 
ARTICLE IX 
ANNUAL BUSINESS PLAN
Section 9.1.    Preparation of Annual Business Plan.  (a)  Manager shall operate the Hotels pursuant to the annual business plan previously approved by Lessee for the remainder of calendar year 2013.  Thereafter, no later than December 15 of each Fiscal Year, Manager shall submit to Lessee an annual business plan for the succeeding Fiscal Year.  Each annual business plan proposed by Manager and approved by Lessee in accordance with this Article IX (an “Annual Business Plan”) shall include: an operating budget showing estimated Gross Operating Revenues, department profits, operating expenses, and net operating income or loss for the forthcoming Fiscal Year for the Hotels; a marketing plan (for Fiscal Year 2014 and each Fiscal Year thereafter); a cash flow forecast; projected average daily room rates; the budget for replacing Furniture, Fixtures and Equipment and for making capital improvements; and the basis of allocation of the Group Services, all in reasonable detail and, where appropriate, with the basis for all assumptions expressly set forth, and otherwise complying with the applicable requirements set forth in the Operating Lease.
(b)    Within 5 business days after the proposed Annual Business Plan is submitted to Lessee, Lessee shall approve such proposed Annual Business Plan or notify Manager of any revisions therein which Lessee deems reasonably necessary.  If Lessee approves the proposed Annual Business Plan or if Lessee requires revisions to the proposed Annual Business Plan, and Manager does not make reasonable objections to such proposed revisions within 5 business days after receipt thereof, then such proposed Annual Business Plan, together with the proposed revisions required by Lessee, shall be deemed thereafter to constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof.  In the event Manager timely makes any reasonable objection to any proposed revision by Lessee to the proposed Annual Business Plan, Lessee and Manager shall cooperate with each other to resolve any questions with respect to such revisions to the proposed Annual Business Plan and shall use their best efforts to agree upon an approved Annual Business Plan for the Hotels for the Fiscal Year in question prior to December 31. 
Section 9.2.    Annual Business Plan Disputes.  In the event Lessee and Manager are unable to agree upon an Annual Business Plan, or as to any revisions requested by Lessee to the proposed Annual Business Plan, for any Fiscal Year by December 31, Lessee shall prevail and the proposed Annual Business Plan shall be deemed approved as so revised by Lessee and shall thereafter constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof.  No action shall be taken and no expenditures shall be made under any proposed Annual Business Plan unless and until the proposed Annual Business Plan is approved by Lessee. 
Section 9.3.    Deviations from Annual Business Plan.  Manager shall diligently pursue all feasible measures to enable the Hotels to adhere to the Annual Business Plan.  To the extent ascertainable in advance, Manager shall notify Lessee of any projected material variance from the Annual Business Plan.  Notwithstanding anything herein to the contrary, Manager is not warranting or guaranteeing in any respect that the actual operating results of the Hotels during the period covered by the Annual Business Plan will not materially vary from the projections described in the Annual Business Plan.
ARTICLE X 
MANAGER’S FEES AND REIMBURSEMENTS
Section 10.1.    Management Fee.  During each Fiscal Year after the Management Commencement Date (and for a fraction of any partial Fiscal Year) during the term hereof, in consideration of the services Manager is to render under this Agreement, Manager will be paid a fee (the “Management Fee”) equal to the sum of (a) 2.50% of all Gross Operating Revenues up to $500,000,000 for such Fiscal Year plus (b) 0.5% of all Gross Operating Revenues over $500,000,000 for such Fiscal Year.  The Management Fee will be paid in installments by deducting such fee from Gross Operating Revenues immediately following each Accounting Period at the rate of (i) 2.50% of Gross Operating Revenues for that Accounting Period until Gross Operating Revenues for the applicable Fiscal Year are equal to $500,000,000 and (ii) 0.5% of Gross Operating Revenues for that Accounting Period thereafter.  At the end of each Fiscal Year following the annual audit, an adjustment will be made, if necessary, and all sums due either Manager or Lessee shall be paid promptly.
Section 10.2.    Reimbursement of Certain Expenses.  Notwithstanding the provisions of Article V (but subject to the Annual Business Plan), Lessee shall reimburse Manager for all of the following property-level costs and expenses incurred in managing and operating the Hotels: (i) the salaries or wages of any officers, directors or employees of Manager or any of Manager’s Affiliates who shall be regularly or temporarily employed or assigned on a full-time basis at the Hotels for the period of such employment or assignment; (ii) personnel providing in-house legal services to Manager or any of Manager’s Affiliates in connection with matters involving the Hotels, which services shall be charged at rates equal to or less than Manager’s or such Affiliate’s costs associated with such services (provided, that to the extent such services are provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan); (iii) the out-of-pocket expenses of employees of Manager or any of Manager’s Affiliates incurred in connection with the management and operation of the Hotels (provided, that to the extent such services are provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan); and (iv) certain other services (including general and administrative) (collectively, the “Group Services”) best provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of which Group Services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner described in the Annual Business Plan, including, without limitation, the following: (A) advertising, sales and marketing, (B) payroll processed through Automatic Data Processing Inc. (or other companies providing similar services), and MIS support services; (C) accounting services; (D) revenue management; (E) facilities and purchasing services; (F) information technology services; (G) reservation services; (H) travel agent commissions; and (I) Centralized Services.   
Section 10.3.    Technical Services.  Service fees for technical services for the Hotels shall be paid to Manager or its Affiliates if Lessee requests such services of Manager, or any other services beyond the scope of services to be provided pursuant to this Agreement.  The amount of fees shall be agreed to by Lessee and Manager prior to commencing such services.  Technical services include renovation coordination, design review, construction management and related services.  
Section 10.4.    Intentionally Omitted.
Section 10.5.    Other Hotel Revenue and Expenses.  Lessee acknowledges that Manager and Manager’s Affiliates have the right to, and currently do, manage, operate and otherwise provide services to hotel and lodging facilities and enterprises other than the Hotels.  Each of Lessee and Manager acknowledges and agrees that any and all income derived from, and expenses incurred by, Manager or any of Manager’s Affiliates, directly or indirectly, from the management and operation of, and provision of services to, such other hotel and lodging facilities and enterprises shall be, as between Lessee (on the one hand), and Manager and Manager’s Affiliates (on the other hand), solely for the account of Manager and/or Manager’s Affiliates and shall in no event be borne by or credited to Lessee.
ARTICLE XI 
INSURANCE
Section 11.1.    Insurance Coverage.  Lessee, or Manager at the direction of Lessee, shall provide and maintain, at Lessee’s cost and expense and in Lessee’s and Owner’s name, insurance sufficient to furnish to Lessee, Owner and Manager reasonable and adequate protection in the management and operation of the Hotels. All insurance shall be in the name of Lessee, Owner and Manager as the insured and shall contain riders and endorsements adequately protecting the interests of Lessee, Manager and Owner as it may appear including, without limitation, provisions for at least 20 days’ notice to Manager, Lessee and Owner of cancellation or of any material change therein. Prior to the Management Commencement Date and the commencement of each Fiscal Year thereafter, Manager shall furnish Lessee and each Owner with certificates evidencing the insurance coverages required pursuant to this Agreement and with evidence of the payment of premiums therefor.
Section 11.2.    Waiver of Subrogation; Lessee Assumes Risk of Adequacy.  Lessee shall have all policies of insurance provide that the insurance company will have no right of subrogation against either party hereto, their agents or employees. Lessee assumes all risks in connection with the adequacy of any insurance or self-insurance program.
ARTICLE XII 
TERM OF AGREEMENT AND TERMINATION
Section 12.1.    Term.  This Agreement shall be for a period commencing on Management Commencement Date and ending on December 31, 2025 (the “Expiration Date”), unless sooner terminated as hereinafter provided.
Section 12.2.    Early Termination.  This Agreement can be terminated by either party hereto at its option for any or no reason.  If either party exercises its right to terminate this Agreement prior to the Expiration Date, the rights and obligations of the parties will cease (other than those that expressly survive the termination of this Agreement) except as to fees and reimbursements due Manager or its Affiliates or Lessee pursuant to this Agreement, including without limitation, Article X, and claims for non-performance by Lessee against Manager and other claims of liabilities of either party which accrued or arose before termination. 
Section 12.3.    Termination Procedure.  
(a)    If a termination occurs pursuant to Section 12.2, the party electing to terminate shall give the other party at least 60 days’ prior written notice of such election, specifying the date of such termination.  On the date specified in such notice, Manager shall cease all activities at the Hotels and shall have no further obligations under this Agreement except those obligations which specifically survive any termination hereof.
(b)    If one or more (but less than substantially all) of the Hotels are (i) sold, conveyed or otherwise transferred to another party, (ii) damaged or destroyed by casualty and Owner has elected not to restore, or (iii) taken in a condemnation proceeding, then this Agreement shall automatically terminate with respect to such Hotel(s) from the date of such sale, casualty or condemnation but shall continue with respect to the other Hotels in accordance with the terms of this Agreement.
(c)    Prior to the date Manager ceases activities at the Hotels, Manager shall be paid any and all fees earned or expenses due it pursuant to this Agreement, and as soon thereafter as is reasonably practicable, pay any fees or expenses upon the final accounting in Section 12.4(a), and Manager shall cooperate with Lessee (and Owner, if applicable) in effectuating an orderly transition to any new manager of the Hotels (or to any new owner, or to Lessee or Owner, or to any of their respective designee’s, as the case may be) so as to avoid any interruption in the rendering of services at the Hotels and take such other actions as are required under Section 12.4. 
Section 12.4.    Obligations Following Termination.  Upon the expiration or earlier termination of this Agreement for any reason, Manager’s authority to act for the Lessee or the Owners shall immediately cease and Manager shall do, and execute and/or deliver to Lessee, the following with respect to the Hotels, all of which shall be done, and executed and/or delivered to or as directed by Lessee, promptly upon the expiration or earlier termination hereof or as soon thereafter as is reasonably practicable. 
(a)    A final accounting, reflecting receipts and disbursements in connection with the operations of the Hotels during the current Fiscal Year through the date of termination.
(b)    Any balance of monies of Lessee, including, without limitation, any undisbursed funds in the Hotel Account.
(c)    All Hotel Information (including all Hotel Information stored in any electronic format), service contracts, reservations, leases, receipts for deposits, unpaid bills and other papers or documents which pertain to the Hotels, including, but not limited to, all original documents.  In addition, Manager shall assist Lessee (or its designee) in migrating and porting any Hotel Information stored in electronic format from the system or systems used by Manager to any new system or systems designated employed by Lessee or its designee, including, to the extent necessary, parsing and decoding the existing content and format of such electronic data to facilitate such transfer, all such reasonable out-of-pocket costs to be reimbursed to Manager. 
(d)    All documents and instruments necessary to transfer to Lessee or its designee or nominee, to the extent transferable, all Operating Licenses held by Manager necessary to operate the Hotels. 
(e)    Manager will assign to Lessee or its nominee, and Lessee and its nominee, if any, will assume, all space leases and concession agreements in effect with respect to the Hotels then in Manager’s, rather than Lessee’s, name, except for blanket concessions affecting other hotels or conference centers operated by Manager or its Affiliates. 
(f)    Manager will take such further actions as Lessee may reasonably require to assure an orderly transition of the Hotels’ operations, including, without limitation, providing inventories of Furniture, Fixtures and Equipment, Operating Equipment and Operating Supplies. 
(g)    Any and all Furniture, Fixtures and Equipment (along with then existing warranties, operating instructions, and service contracts), Operating Equipment, Operating Supplies, keys, locks and safe combinations, reservation lists, ledgers, bank statements for the Hotel Account, budgets, accounting books and records, insurance policies, bonds and other documents, memoranda, schedules, lists, contracts, agreements, leases, licenses, correspondence, and other items required for the operation of the Hotels. 
(h)    Manager shall remove all of Manager’s personal property from the Hotel premises.
(i)    Without limiting the provisions of clause (d) above, Manager shall cooperate with Lessee to transfer all liquor licenses to, or to obtain new liquor licenses, in the name of Lessee or Lessee’s designee.  Manager shall make commercially reasonable efforts to provide interim liquor licenses for up to one hundred eighty (180) days to Lessee or Lessee’s designee, provided that Manager may condition such provision on its receipt of market standard fees and a commercially reasonable indemnity from such party with respect to such claims as may arise in connection with the sale of liquor from Hotels. 
(j)    Without limiting any of the foregoing, Manager shall, for a period of ninety (90) days after such expiration or earlier termination of this Agreement, make itself available at all reasonable times to consult with and advise Lessee or Lessee’s designee regarding the management, operation and maintenance of the Hotels; in such event, Lessee, Owner or the purchaser of the Hotels shall reimburse Manager for all of Manager’s reasonable out-of-pocket costs and expenses incurred during such 90-day period in connection with providing such consulting and advisory services, including, without limitation, the appropriately allocable portion of Manager’s payroll expenses for personnel involved in assisting with such transition. 
Section 12.5.    Intentionally Omitted.  
Section 12.6.    Survival.  The provisions of Sections 12.3 and 12.4 shall survive the expiration or earlier termination of this Agreement.
ARTICLE XIII 
REPRESENTATIONS AND COVENANTS
Section 13.1.    Lessee’s Representations.  Lessee covenants, represents and warrants as follows: (a) as of the date hereof, Lessee will be the tenant under the Operating Lease with respect to the Hotels and has full power and authority to enter into this Agreement; (b) throughout the term of this Agreement and except as provided in the Operating Lease, Lessee will pay, keep, observe and perform all payments, terms, covenants, conditions and obligations under any lease or other concession and any real estate taxes or assessments covering or affecting the Hotels; (c) the execution of this Agreement is permitted by the Articles of Incorporation, By-Laws or other organizational documents of Lessee and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Lessee; (d) there is no claim, litigation, proceeding or governmental investigation pending, or as far as is known to Lessee, threatened, against or relating to Lessee, the properties or business of Lessee or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and adversely affect the ability of Lessee to enter into this Agreement or to carry out its obligations under this Agreement; and (e) neither the consummation of the actions contemplated by this Agreement on the part of Lessee to be performed, or the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which Lessee is a party or by which it is bound.
Section 13.2.    Manager’s Representations.  Manager covenants, represents and warrants as follows: (a) the execution of this Agreement is permitted by the limited liability company agreement or other organizational documents of Manager and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Manager enforceable in accordance with its terms; (b) there is no claim, litigation, proceedings or governmental investigation pending, or as far as is known to Manager, threatened, against or relating to Manager, the properties or business of Manager or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and adversely affect the ability of Manager to enter into this Agreement; (c) neither the consummation of the actions contemplated by this Agreement on the part of Manager to be performed, nor the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which Manager is a party or by which it is bound; and (d) this Agreement shall be modified in the event that it is reasonably determined by the Owners under the Operating Lease that the terms of this Agreement cause the Rent (as defined in the Operating Lease) to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code; provided however, no such modification shall affect the amount of the Management Fee or the practical realization of the rights and benefits of Manager hereunder.
Section 13.3.    Manager’s Covenants.  From the Management Commencement Date until the Expiration Date or earlier termination of this Agreement, Manager covenants that it shall satisfy the following requirements: (a) Manager shall not permit wagering activities to be conducted at or in connection with the Hotels 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 the Hotels; and (b) Manager shall not sublet the Hotels or enter into any similar arrangement 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 (i) the net income or profits derived by the business activities of the sublessee or (ii) 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. 
ARTICLE XIV 
ASSIGNMENT
Neither party shall assign or transfer or permit the assignment of transfer of this Agreement without the prior written consent of the other.  In the event of consent by either party 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.  An assignment by either Lessee or Manager of its interest in this Agreement shall not relieve Lessee or Manager, as the case may be, from their respective obligations hereunder unless the assignee accepts full responsibility for performance of the same. 
ARTICLE XV 
CONFIDENTIALITY
The matters set forth in this Agreement are strictly confidential and Lessee and Manager will make every reasonable effort to ensure that the information is not disclosed to any person or entities (including the press) other than those persons or entities needed to carry out the provisions of this Agreement without first consulting with and obtaining the consent of the other party, which consent shall not be unreasonably withheld.  The provisions of this Article XV shall survive the expiration or earlier termination of this Agreement. 
ARTICLE XVI 
INDEMNIFICATION AND LIMITATION OF LIABILITY
Section 16.1.    Lessee’s Indemnification.  Lessee shall hold harmless, indemnify and defend Manager and its Affiliates and their respective agents, employees, officers, directors and shareholders from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial and appellate proceedings, accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from Manager’s activities performed pursuant to this Agreement, any franchise agreement, any past or future building code or life/safety code violations, and injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the Hotels or elsewhere, and any requirement or award relating to course of employment, working conditions, wages and/or compensation of employees or former employees at the Hotels, unless such injury or damage is caused by the gross negligence or willful misconduct or fraud on the part of Manager, its agents, employees, representatives or independent contractors or by any breach of Manager’s obligations under this Agreement. Lessee’s foregoing indemnification obligation to indemnify Manager and its Affiliates shall extend to any claims between Lessee and Manager or its Affiliates arising out of this Agreement or otherwise.  Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 
Section 16.2.    Manager’s Indemnification.  Manager shall hold harmless, indemnify and defend Lessee and its Affiliates, and their respective agents, employees, officers, directors and shareholders, from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial and appellate proceedings accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from Manager’s gross negligence, willful misconduct or fraud or from Manager’s breach of its obligations under this Agreement. Manager’s foregoing indemnification obligation to indemnify Lessee and its Affiliates shall extend to any claims between Manager and Lessee or its Affiliates arising out of this Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 
Section 16.3.    Indemnification Procedure.  Upon the occurrence of an event giving rise to indemnification, the party seeking indemnification shall notify the other party hereto and provide the other party hereto with copies of any documents reflecting the claim, damage, loss or expense. The party seeking indemnification is entitled to engage such attorneys and other persons to defend against the claim, damage, loss or expense, as it may choose. The party providing indemnification shall pay the reasonable charges and expenses of such attorneys and other persons on a current basis within 20 days of submission of invoices or bills. Except as otherwise provided in the Operating Lease, if any claim, lawsuit or action (administrative or judicial) is maintained against Manager, Lessee or the Hotels due to allegations or actions arising prior to the Management Commencement Date and Manager had no involvement with the Hotels prior to such date, Lessee shall bear full and complete responsibility for the defense of Lessee and Manager, specifically including all legal fees and necessary and attendant expenses for the vigorous defense and representation of the interests of Manager (for pre-trial, trial and appellate proceedings) and Lessee. Lessee shall support and pay for all legal fees and representations necessary to remove Manager from any claim, action (administrative or judicial), or lawsuit covered by the immediately preceding sentence. 
Section 16.4.    Good Faith Judgment.  To the extent that any provision of this Agreement leaves something to the discretion of Manager, Manager will not be liable for any action taken by Manager in the exercise of its discretion as long as in exercising such discretion, Manager was using its good faith judgment.
Section 16.5.    Survival.  The provisions of this Article XVI shall survive the expiration or earlier termination of this Agreement. 
ARTICLE XVII 
MISCELLANEOUS
Section 17.1.    Severability.  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 Manager or Lessee or constitute a substantial deviation from the general intent and purpose of said parties as reflected in this Agreement. The failure of either party to insist upon a 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.
Section 17.2.    No Partnership.  The relationship of Lessee and Manager shall be that of principal and independent contractor.  Nothing contained in this Agreement shall be construed to create a partnership or joint venture between Lessee and Manager or their respective Affiliates or successors in interest.  In the performance of its duties in the management and operation of the Hotels, Manager shall act solely as an independent contractor.  It is expressly covenanted that this Agreement is no more than an agreement for the rendering of services by Manager on behalf of Lessee in the operation and management of the Hotels.  Manager shall not be Lessee’s fiduciary, nor shall Manager owe Lessee a fiduciary duty. 
Section 17.3.    Meetings.  Lessee and Manager shall meet with each other from time to time so that Manager and Lessee may discuss the status of operations and future plans, recommendations and projections. The meetings will be held at mutually convenient dates and locations.
Section 17.4.    Consents.  Except as herein otherwise provided, whenever in this Agreement the consent or approval of Lessee or Manager is required, such consent or approval shall not be unreasonably withheld or delayed. Such consent or approval shall be in writing only and shall be duly executed by an authorized officer or agent of the party granting such consent or approval.
Section 17.5.    Applicable Law.  This Agreement shall be construed under, and governed in accordance with, the laws of the State of New York.
Section 17.6.    Successors Bound.  This Agreement shall be binding upon and inure to the benefit of Lessee, its successors and assigns, and shall be binding and inure to the benefit of Manager and its permitted assigns.
Section 17.7.    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.
Section 17.8.    Incorporation of Recitals.  The recitals set forth in the preamble of this Agreement are hereby incorporated into this Agreement as if fully set forth herein.
Section 17.9.    Notices.  Notices, statements and other communications to be given under the terms of this Agreement shall be in writing and (a) delivered by hand against receipt, (b) sent by certified or registered mail or by Federal Express or other similar overnight mail service, return receipt requested or (c) sent by telecopier (with answer back acknowledged), (or at such other address as from time to time designated by the party receiving the notice):
		
	If to Lessee:
	11525 N. Community House Road, Suite 100 
Charlotte, NC 28277 
Attention: President 
Attention:  President  
Facsimile No.:  (980) 335-3089 
Attention:  General Counsel  
Facsimile No.:  (980) 335-3089

		
	If to Manager:
	11525 N. Community House Road, Suite 100  
Charlotte, NC 28277  
Attention:  President  
Facsimile No.:  (980) 335-3089 
Attention:  General Counsel  
Facsimile No.:  (980) 335-3089

Section 17.10.    Entire Agreement; Amendments.  This Agreement, together with other writings signed by the parties hereto expressly stated to be supplementing this Agreement and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof.  This Agreement may be amended, modified or changed only by a writing signed by the parties hereto. 
Section 17.11.    Manager’s Authority Limited.  Manager’s authority shall be derived wholly from this Agreement, and Manager has no authority to act for or represent Lessee except as herein specified.
Section 17.12.    Exclusive Compensation.  The payments to be made to Manager hereunder shall be in lieu of all other or further compensation or commissions of any nature whatsoever for the services described herein and this Agreement shall be considered as a special agreement between the parties hereto covering the appointment and compensation of Manager to the exclusion of any other method of compensation unless otherwise agreed to in writing.
Section 17.13.    Property Rights.  This Agreement and the rights created hereunder are personal to Lessee and Manager and shall not create in favor of Manager any property rights in the Hotels.
Section 17.14.    Attorneys’ Fees.  In the event of any litigation arising out of this Agreement, the prevailing party shall be entitled to reasonable costs and expenses, including without limitation, attorneys’ fees.
Section 17.15.    Complimentary/Discount Policies.  Manager will be permitted to provide customary gratuitous accommodations, services and amenities to such employees and representatives of Manager visiting the Hotels in accordance with Manager’s normal policies, provided that such employees shall in no way displace the Hotels’ third-party business.
Section 17.16.    No Third Party Beneficiary.  Nothing herein contained shall be understood or construed to create or grant any third party benefits, rights or property interests unless the person claiming such rights is expressly identified herein and the rights claimed are expressly set forth herein.  Notwithstanding the foregoing, it is acknowledged and agreed that the Licensor is an intended third-party beneficiary of Section 3.12. 
Section 17.17.    REOC.  The parties acknowledge that Lessee is a direct or indirect controlled subsidiary of an entity, Extended Stay America, Inc., a Delaware corporation (“Parent”), that is intended to qualify as a “real estate operating company” (a “REOC”) within the meaning of the U.S. Department of Labor plan assets regulation (Section 2510.3-101, Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations) and that it is intended that Lessee will have the rights, pursuant to this Agreement, as would be reasonably necessary to result in the qualification of Parent as a REOC. Without limiting the generality of the foregoing, notwithstanding any other provision of this Agreement, without prejudice to the other rights provided to Lessee under this Agreement, Manager agrees to: (i) permit Lessee and Parent to visit and inspect the Hotels and inspect and copy the books and records of Manager, at such times as Lessee shall reasonably request; (ii) periodically (at least quarterly) provide Lessee and Parent with information and reports regarding Manager’s operation and management of the Hotels and the performance of its duties under this Agreement and with respect to renovations, alterations, general maintenance, repairs and development activities that Manager has engaged in or intends to engage in with respect to the Hotels and their surroundings; (iii) periodically (at least quarterly) consult with Lessee and Parent in advance with respect to any significant leasing, management and development matters, as appropriate, including, without limitation, with respect to matters relating to renovations, alterations, general maintenance, repairs and development activities with respect to the Hotels and their surroundings and the management, participatory and development rights retained by Lessee under this Agreement; and (iv) to provide Lessee and Parent with such other rights as may reasonably be determined by Lessee to be necessary to enable Parent to qualify as a REOC, provided the rights described in clauses (i)-(iv) above do not materially adversely affect (X) Manager’s ability to perform its duties under this Agreement or the economic benefits enjoyed by Manager under this Agreement or (Y) the status of ESH Hospitality as a real estate investment trust under the Code. Manager agrees to consider, in good faith, the recommendations of Lessee in connection with the matters on which it is consulted as described above.
Section 17.18.    Amendment and Restatement.  The parties agree that the Original Management Agreement is hereby amended and restated. The parties agree that (i) the terms and conditions of the Original Management Agreement shall be amended as set forth herein and, as so amended, shall be restated in their entirety, but shall be amended only with respect to the rights, title, estates, interest, liabilities, duties, covenants, obligations and agreements among the parties accruing from and after the date hereof.  The execution, delivery and effectiveness of this Agreement shall not constitute a waiver of any covenant, agreement or obligation under the Original Management Agreement, except to the extent that any such covenant, agreement or obligation is no longer set forth herein or is modified hereby.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written. 
LESSEE: 

ESA P PORTFOLIO OPERATING LESSEE LLC,
a Delaware limited liability company

		
	By:
	/s/ Jonathan S. Halkyard         
Name:  Jonathan S. Halkyard 
Title:    Vice President and Secretary

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

    

MANAGER: 

ESA MANAGEMENT, LLC,
a Delaware limited liability company 

		
	By:
	/s/ Jonathan S. Halkyard         
Name:  Jonathan S. Halkyard 
Title:    Chief Financial Officer

SCHEDULE A

HOTELS

(see attached) 

	
			
	Site 
#
	Address
	Owner

	None
	812 Barrow Street, Anchorage, AK
	ESA P Portfolio L.L.C.

	9853
	700 East 34th Avenue, Anchorage, AK
	ESA P Portfolio L.L.C.

	9857
	108 East 8th Avenue, Anchorage, AK
	ESA P Portfolio L.L.C.

	9858
	4580 Old Airport Way, Fairbanks, AK
	ESA P Portfolio L.L.C.

	9859
	1800 Shell Simmons Drive, Juneau, AK
	ESA P Portfolio L.L.C.

	23
	5115 Carmichael Rd., Montgomery, AL
	ESA P Portfolio L.L.C.

	25
	101 Cahaba Park Cir., Birmingham, AL
	ESA P Portfolio L.L.C.

	27
	40 State Farm Pkwy., Birmingham, AL
	ESA P Portfolio L.L.C.

	123
	4751 Governor's House Dr., Huntsville, AL
	ESA P Portfolio L.L.C.

	124
	2491 Eastern Blvd, Montgomery, AL
	ESA P Portfolio L.L.C.

	155
	508 Spring Hill Plaza Ct., Mobile, AL
	ESA P Portfolio L.L.C.

	9600
	12 Perimeter Park South, Birgmingham, AL
	ESA P Portfolio L.L.C.

	51
	10800 Kanis Road, Little Rock, AR
	ESA P Portfolio L.L.C.

	145
	600 Hardin Road, Little Rock, AR
	ESA P Portfolio L.L.C.

	6110
	5000 Luvene Avenue, Springdale, AR
	ESA P Portfolio L.L.C.

	316
	3421 E. Elwood St., Phoenix, AZ
	ESA P Portfolio L.L.C.

	317
	455 W. Baseline Rd., Mesa, AZ
	ESA P Portfolio L.L.C.

	414
	7345 W. Bell Rd., Peoria, AZ
	ESA P Portfolio L.L.C.

	902
	14245 S. 50th St., Phoenix, AZ
	ESA P Portfolio L.L.C.

	942
	15501 N. Scottsdale Rd., Scottsdale AZ
	ESA P Portfolio L.L.C.

	977
	5050 E. Grant Rd., Tucson, AZ
	ESA P Portfolio L.L.C.

	8515
	20827 N. 27th Ave, Phoenix, AZ
	ESA P Portfolio L.L.C.

	9601
	1920 W. Isabella, Mesa, AZ
	ESA P Portfolio L.L.C.

	9603
	2165 West 15th Street, Tempe, AZ
	ESA P Portfolio L.L.C.

	9604
	3560 North Marshall Way, Scottsdale, AZ
	ESA P Portfolio L.L.C.

	9800
	217 W. Osborn Rd, Phoenix, AZ
	ESA P Portfolio L.L.C.

	9801
	5035 E. Chandler Blvd, Phoenix, AZ
	ESA P Portfolio L.L.C.

	9803
	4357 East Oak St, Phoenix, AZ
	ESA P Portfolio L.L.C.

	9837
	5235 N. 16th St. , Phoenix, AZ
	ESA P Portfolio L.L.C.

	9838
	10660 N. 69th St., Scottsdale, AZ
	ESA P Portfolio L.L.C.

	150
	5375 Farwell Place, Fremont, CA
	ESA P Portfolio L.L.C.

	308
	18602 S Vermont Ave, Gardena, CA
	ESA P Portfolio L.L.C.

	309
	1000 Lead Hill Blvd, Roseville, CA
	ESA P Portfolio L.L.C.

	355
	14775 Firestone Blvd, La Mirada, CA
	ESA P Portfolio L.L.C.

	356
	3525 Torrance Blvd, Torrance, CA
	ESA P Portfolio L.L.C.

	361
	3220 Buskirk Ave, Pleasant Hill, CA
	ESA P Portfolio L.L.C.

	396
	20251 Lake Forest Dr, Lake Forest, CA
	ESA P Portfolio L.L.C.

	486
	7135 N. Fresno St., Fresno, CA
	ESA P Portfolio L.L.C.

	494
	5050 Skylab West Circle, Huntington Beach, CA
	ESA P Portfolio L.L.C.

	854
	24940 W. Pico Canyon Road, Stevenson, CA
	ESA P Portfolio L.L.C.

	898
	1000 Hillview Court, Milpitas, CA
	ESA P Portfolio L.L.C.

	903
	10721 White Rock Rd, Rancho Cordova, CA
	ESA P Portfolio L.L.C.

	911
	3990 East Inland Empire Blvd., Ontario, CA
	ESA P Portfolio L.L.C.

	916
	401 E Santa Clara St, Arcadia, CA
	ESA P Portfolio L.L.C.

	919
	3318 California Ave., Bakersfield, CA
	ESA P Portfolio L.L.C.

	931
	2380 Nissen Drive, Livermore, CA
	ESA P Portfolio L.L.C.

	932
	4105 E. Willow St., Long Beach, CA
	ESA P Portfolio L.L.C.

	936
	3825 Rosin Court, Sacramento, CA
	ESA P Portfolio L.L.C.

	939
	2100 Harvard Street, Sacramento, CA
	ESA P Portfolio L.L.C.

	951
	3190 Vista Way, Oceanside, CA
	ESA P Portfolio L.L.C.

	974
	601 W. Bonita Ave, San Dimas, CA
	ESA P Portfolio L.L.C.

	976
	2600 Corby Ave., Santa Rosa, CA
	ESA P Portfolio L.L.C.

	981
	4870 Calle Real, Santa Barbara, CA
	ESA P Portfolio L.L.C.

	8523
	19200 Harborgate Way, Torrance, CA
	ESA P Portfolio L.L.C.

	8546
	605 Jarvis Drive, Morgan Hill, CA
	ESA P Portfolio L.L.C.

	8561
	1260 South Loop Rd, Alameda, CA
	ESA P Portfolio L.L.C.

	8573
	2087 Hotel Circle South, San Diego, CA
	ESA P Portfolio L.L.C.

	8574
	4500 Dublin Blvd, Dublin, CA
	ESA P Portfolio L.L.C.

	8580
	20205 Ventura Blvd., Woodland, CA
	ESA P Portfolio L.L.C.

	8581
	6531 S. Sepulveda Blvd, Los Angeles, CA
	ESA P Portfolio L.L.C.

	8584
	100 Fountain Grove Pkwy, Santa Rosa, CA
	ESA P Portfolio L.L.C.

	8594
	31950 Dyer St, Union City, CA
	ESA P Portfolio L.L.C.

	8621
	1350 Marina Village Pkwy, Alameda, CA
	ESA P Portfolio L.L.C.

	8644
	3650 Mandela Pkwy, Emeryville, CA
	ESA P Portfolio L.L.C.

	8654
	46312 Mission Blvd, Fremont, CA
	ESA P Portfolio L.L.C.

	8718
	2131 Gold Street, San Jose, CA
	ESA P Portfolio L.L.C.

	8722
	6199 San Ignacio Avenue, San Jose, CA
	ESA P Portfolio L.L.C.

	8724
	3170 Garrity Way, Richmond, CA
	ESA P Portfolio L.L.C.

	8738
	1742 S. Clementine Street, Anaheim, CA
	ESA P Portfolio L.L.C.

	8743
	2100 Camino Ramon, San Ramon, CA
	ESA P Portfolio L.L.C.

	8747
	6189 San Ignacio Avenue, San Jose, CA
	ESA P Portfolio L.L.C.

	8750
	4881 Birch St., Newport Beach, CA
	ESA P Portfolio L.L.C.

	8754
	2200 Empire Ave, Burbank, CA
	ESA P Portfolio L.L.C.

	8787
	3860 Murphy Canyon Road, San Diego, CA
	ESA P Portfolio L.L.C.

	8794
	2844 W. March Lane, Stockton, CA
	ESA P Portfolio L.L.C.

	8795
	799 Orange Drive, Vacaville, CA
	ESA P Portfolio L.L.C.

	8806
	120 Sem Lane, Belmont, CA
	ESA P Portfolio L.L.C.

	8808
	1635 W. Katella Ave., Orange, CA
	ESA P Portfolio L.L.C.

	8821
	22711 Oakcrest Circle, Yorba Linda, CA
	ESA P Portfolio L.L.C.

	8828
	1400 E. Tahquitz Canyon Way, Palm Springs, CA
	ESA P Portfolio L.L.C.

	8831
	1050 Grand Avenue, Carlsbad, CA
	ESA P Portfolio L.L.C.

	8844
	27622 Jefferson Ave., Temecula, CA
	ESA P Portfolio L.L.C.

	8850
	1031 N. Pacificenter Drive, Anaheim, CA
	ESA P Portfolio L.L.C.

	8852
	4325 Corporate Center Ave, Chino, CA
	ESA P Portfolio L.L.C.

	8855
	2498 Stearns St., Simi Valley, CA
	ESA P Portfolio L.L.C.

	8863
	2201 Longport Court, Elk Grove
	ESA P Portfolio L.L.C.

	8881
	2526 Pavilion Pkwy., Tracy, CA
	ESA P Portfolio L.L.C.

	8916
	1019 Oliver Rd, Fairfield, CA
	ESA P Portfolio L.L.C.

	8931
	401 E. Albertoni St., Carson, CA
	ESA P Portfolio L.L.C.

	8986
	795 Stillwater Rd, W. Sacramento, CA
	ESA P Portfolio L.L.C.

	9011
	19325 Londelius St., Northridge, CA
	ESA P Portfolio L.L.C.

	9605
	46080 Fremont Blvd, Fremont, CA
	ESA P Portfolio L.L.C.

	9606
	330 Cypress Drive / 850 Bellew Drive, Milpitas, CA
	ESA P Portfolio L.L.C.

	9607
	190 East El Camino Real, Mountain View, CA
	ESA P Portfolio L.L.C.

	9608
	2810 Gateway Oaks Drive, Sacramento, CA
	ESA P Portfolio L.L.C.

	9609
	3 Circle Star Way, San Carlos, CA
	ESA P Portfolio L.L.C.

	9610
	1560 North First Street, San Jose, CA
	ESA P Portfolio L.L.C.

	9611
	1830 Gateway Drive, San Mateo, CA
	ESA P Portfolio L.L.C.

	9612
	18000 San Ramon Valley Blvd, San Ramon, CA
	ESA P Portfolio L.L.C.

	9613
	1255 Orleans Drive, Sunnyvale, CA
	ESA P Portfolio L.L.C.

	9614
	1377 W Glenoaks Blvd, Glendale, CA
	ESA P Portfolio L.L.C.

	9615
	1910 E Mariposa Ave, El Segundo, CA
	ESA P Portfolio L.L.C.

	9616
	930 S Fifth Ave, Monrovia, CA
	ESA P Portfolio L.L.C.

	9617
	3995 Carson St, Torrance, CA
	ESA P Portfolio L.L.C.

	9618
	3050 E. Imperial Highway, Brea, CA
	ESA P Portfolio L.L.C.

	9619
	5990 Corporate Avenue, Cypress, CA
	ESA P Portfolio L.L.C.

	9620
	30 Technology Dr, Irvine, CA
	ESA P Portfolio L.L.C.

	9621
	9880 Pacific Heights Boulevard, San Diego, CA
	ESA P Portfolio L.L.C.

	9622
	7444 Mission Valley Road, San Diego, CA
	ESA P Portfolio L.L.C.

	9839
	4555 Chabot Drive, Pleasanton, CA
	ESA P Portfolio L.L.C.

	9840
	55 E. Brokaw Road, San Jose, CA
	ESA P Portfolio L.L.C.

	9854
	3600 Chester Lane, Bakersfield, CA
	ESA P Portfolio L.L.C.

	9855
	1775 Francisco Blvd, San Rafael, CA
	ESA P Portfolio L.L.C.

	307
	9604 E. Easter Ave, Englewood, CO
	ESA P Portfolio L.L.C.

	311
	5855 Corporate Dr, Colorado Springs, CO
	ESA P Portfolio L.L.C.

	901
	7393 W Jefferson Ave, Lakewood, CO
	ESA P Portfolio L.L.C.

	7527
	1291 W. 120th Ave, Westminster, CO
	ESA P Portfolio L.L.C.

	7568
	8752 S Yosemite St, Lone Tree, CO
	ESA P Portfolio L.L.C.

	9623
	13941 East Harvard Avenue, Aurora, CO
	ESA P Portfolio L.L.C.

	9624
	4444 Leetsdale Drive, Glendale, CO
	ESA P Portfolio L.L.C.

	9625
	9253 E. Costilla Avenue, Greenwood Village, CO
	ESA P Portfolio L.L.C.

	9626
	9650 East Geddes Avenue, Englewood, CO
	ESA P Portfolio L.L.C.

	9627
	4885 South Quebec Street, Denver, CO
	ESA P Portfolio L.L.C.

	9804
	14095 E. Evans Ave, Aurora, CO
	ESA P Portfolio L.L.C.

	9805
	5200 S. Quebec St, Greenwood Village, CO
	ESA P Portfolio L.L.C.

	1015
	1 Batterson Park Rd ., Farmington, CT
	ESA P Portfolio L.L.C.

	1116
	340 Tolland Tpke., Manchester, CT
	ESA P Portfolio L.L.C.

	1122
	366 Bee St., Meriden, CT
	ESA P Portfolio L.L.C.

	9628
	400 Main Ave, Norwalk, CT
	ESA P Portfolio L.L.C.

	9629
	945 Bridgeport Ave, Shelton, CT
	ESA P Portfolio L.L.C.

	9630
	333 Continental Drive, Newark, DE
	ESA P Portfolio L.L.C.

	60
	1950 Raymond Diehl Rd, Tallahassee, FL
	ESA P Portfolio L.L.C.

	174
	6451 Westwood Blvd., Orlando, FL
	ESA P Portfolio L.L.C.

	302
	809 Bloodworth Lane, Pensacola, FL
	ESA P Portfolio L.L.C.

	303
	3089 Executive Drive, Clearwater, FL
	ESA P Portfolio L.L.C.

	328
	1200 FAU Research Park Blvd, Deerfield Beach, FL
	ESA P Portfolio L.L.C.

	381
	3600 SW 42nd St, Gainesville, FL
	ESA P Portfolio L.L.C.

	789
	12242 Morris Bridge Rd., Temple Terrace, FL
	ESA P Portfolio L.L.C.

	869
	5851 N. Andrews Ave Ext., Fort Lauderdale, FL
	ESA P Portfolio L.L.C.

	884
	6961 Lenoir Ave, Jacksonville, FL
	ESA P Portfolio L.L.C.

	1559
	1413 Prudential Dr., Jacksonville, FL
	ESA P Portfolio L.L.C.

	1561
	1450 SE 17th Street Causeway, Fort Lauderdale, FL
	ESA P Portfolio L.L.C.

	1563
	6001 NW 6th Way, Fort Lauderdale, FL
	ESA P Portfolio L.L.C.

	1564
	255 Bill France Blvd, Daytona Beach, FL
	ESA P Portfolio L.L.C.

	1565
	4699 Lenoir Ave S., Jacksonville, FL
	ESA P Portfolio L.L.C.

	1567
	1701 Evans Road, Melbourne, FL
	ESA P Portfolio L.L.C.

	1568
	700 Northpoint Parkway, West Palm Beach, FL
	ESA P Portfolio L.L.C.

	1569
	4811 Memorial Highway, Tampa, FL
	ESA P Portfolio L.L.C.

	1577
	5610 Vineland Road, Orlando, FL
	ESA P Portfolio L.L.C.

	1600
	8655 NW 21 Terrace, Miami, FL
	ESA P Portfolio L.L.C.

	1613
	5620 Major Blvd., Orlando, FL
	ESA P Portfolio L.L.C.

	1618
	1760 Pembrook Drive, Orlando, FL
	ESA P Portfolio L.L.C.

	1619
	1036 Greenwood Blvd., Lake Mary, FL
	ESA P Portfolio L.L.C.

	1623
	7755 SW 6 h Street, Fort Lauderdale, FL
	ESA P Portfolio L.L.C.

	1632
	1776 Pembrook Drive, Orlando, FL
	ESA P Portfolio L.L.C.

	1639
	6443 Westwood Blvd., Orlando, FL
	ESA P Portfolio L.L.C.

	1740
	3640 SW 22nd Street, Miami, FL
	ESA P Portfolio L.L.C.

	1760
	298 SW 15th Road, Miami, FL
	ESA P Portfolio L.L.C.

	1762
	7750 NW 25th Street, Miami, FL
	ESA P Portfolio L.L.C.

	1805
	4312 W. Spruce Street, Tampa, FL
	ESA P Portfolio L.L.C.

	9631
	8300 Western Way, Jacksonville, FL
	ESA P Portfolio L.L.C.

	9632
	4693 Salisbury Road, Jacksonville, FL
	ESA P Portfolio L.L.C.

	9633
	10020 Skinner Lake Drive, Jacksonville, FL
	ESA P Portfolio L.L.C.

	9634
	302 Northlake Blvd., Altamonte, FL
	ESA P Portfolio L.L.C.

	9635
	1040 Greenwood Blvd, Lake Mary, FL
	ESA P Portfolio L.L.C.

	9636
	4101 Equity Row, Orlando, FL
	ESA P Portfolio L.L.C.

	9637
	501 NW 77th Street, Boca Raton, FL
	ESA P Portfolio L.L.C.

	9640
	6605 NW 7th Street, Miami, FL
	ESA P Portfolio L.L.C.

	9641
	101 Fairway Drive, Miami Springs, FL
	ESA P Portfolio L.L.C.

	9806
	8801 Perimeter Park Blvd, Jacksonville, FL
	ESA P Portfolio L.L.C.

	9807
	1805 N. Westshore Blvd, Tampa, FL
	ESA P Portfolio L.L.C.

	9808
	1401 S.W. 15th St, Pompano Beach, FL
	ESA P Portfolio L.L.C.

	9809
	8687 Commodity Circle, Orlando, FL
	ESA P Portfolio L.L.C.

	9810
	1951 Summit Tower Blvd, Orlando, FL
	ESA P Portfolio L.L.C.

	9841
	8750 Universal Blvd., Orlando, FL
	ESA P Portfolio L.L.C.

	9842
	8100 Palm Pkwy., Orlando, FL
	ESA P Portfolio L.L.C.

	9863
	4615 Opa-Locka Lane, Destin, FL
	ESA P Portfolio L.L.C.

	38
	7065 Jimmy Carter Blvd., Norcross, GA
	ESA P Portfolio L.L.C.

	42
	3331 Old Milton Pkwy, Alpharetta, GA
	ESA P Portfolio L.L.C.

	61
	3316 Busbee Dr., Kennesaw, GA
	ESA P Portfolio L.L.C.

	63
	3980 Riverside Dr., Macon ,GA
	ESA P Portfolio L.L.C.

	65
	2474 Cumberland Pk SE, Atlanta, GA
	ESA P Portfolio L.L.C.

	102
	5020 Armour Rd, Columbus ,GA
	ESA P Portfolio L.L.C.

	373
	3115 Clairmont Rd., Atlanta, GA
	ESA P Portfolio L.L.C.

	382
	1967 Leland Dr., Marietta,GA
	ESA P Portfolio L.L.C.

	788
	3430 Venture Pkwy, Duluth, GA
	ESA P Portfolio L.L.C.

	1501
	1950 Rock Mill Rd., Alpharetta, GA
	ESA P Portfolio L.L.C.

	1502
	2265 Mt. Zion Pkwy, Morrow, GA
	ESA P Portfolio L.L.C.

	1550
	3000 George Busbee Pkwy, Kennesaw, GA
	ESA P Portfolio L.L.C.

	1595
	905 Crestline Pkwy, Atlanta, GA
	ESA P Portfolio L.L.C.

	1664
	1721 Rollins Way, Columbus, GA
	ESA P Portfolio L.L.C.

	1796
	5511 Abercorn St, Savannah, GA
	ESA P Portfolio L.L.C.

	9646
	3103 Sports Ave., Smyrna, GA
	ESA P Portfolio L.L.C.

	9649
	1050 Hammond Dr., Atlanta, GA
	ESA P Portfolio L.L.C.

	9650
	2239 Powers Ferry Rd., Marietta, GA
	ESA P Portfolio L.L.C.

	9811
	2225 Interstate N. Parkway, SE
	ESA P Portfolio L.L.C.

	9812
	3329 Old Milton Parkway, Alpharetta, GA
	ESA P Portfolio L.L.C.

	9843
	3967 Peachtree Road, Atlanta, GA
	ESA P Portfolio L.L.C.

	9844
	2010 Powers Ferry Road, Atlanta, GA
	ESA P Portfolio L.L.C.

	9845
	6330 Peachtree Dunwoody Rd. NE, Atlanta, GA
	ESA P Portfolio L.L.C.

	9856
	3390 Venture Parkway, Duluth, GA
	ESA P Portfolio L.L.C.

	57
	2701 Westown Pkwy, West Des Moines, IA
	ESA P Portfolio L.L.C.

	3503
	3940 114th Street, Urbandale, IA
	ESA P Portfolio L.L.C.

	828
	2500 S Vista Ave., Boise, ID
	ESA P Portfolio L.L.C.

	55
	747 N Bell School Road, Rockford, IL
	ESA P Portfolio L.L.C.

	153
	1525 Busch Parkway, Buffalo Grove, IL
	ESA P Portfolio L.L.C.

	510
	3150 Finley Rd., Downers Grove, IL
	ESA P Portfolio L.L.C.

	525
	1181 Rohlwing Rd, Itasca, IL
	ESA P Portfolio L.L.C.

	530
	2400 Golf Road, Rolling Meadows, IL
	ESA P Portfolio L.L.C.

	532
	15 W. 122nd S. Frontage Rd, Burr Ridge, IL
	ESA P Portfolio L.L.C.

	541
	550 West Grand Ave., Elmhurst, IL
	ESA P Portfolio L.L.C.

	640
	5724 Northridge Dr, Gurnee, IL
	ESA P Portfolio L.L.C.

	660
	1575 Bond St., Naperville, IL
	ESA P Portfolio L.L.C.

	677
	1201 E. Touhy Ave., Des Plaines, IL
	ESA P Portfolio L.L.C.

	752
	653 Clark Drive, Rockford, IL
	ESA P Portfolio L.L.C.

	4012
	610 W. Marketview Dr, Champaign, IL
	ESA P Portfolio L.L.C.

	4016
	2520 173rd St., Lansing, IL
	ESA P Portfolio L.L.C.

	4019
	154 Regency Park, O'Fallon, IL
	ESA P Portfolio L.L.C.

	4023
	1225 Lakeview Dr., Romeoville, IL
	ESA P Portfolio L.L.C.

	4030
	1200 American Lane, Schaumburg, IL
	ESA P Portfolio L.L.C.

	4040
	260 E. 22nd St., Lombard, IL
	ESA P Portfolio L.L.C.

	4061
	2345 Sokol Ct., Darien, IL
	ESA P Portfolio L.L.C.

	4063
	1207 E. Touhy Ave., Des Plaines, IL
	ESA P Portfolio L.L.C.

	4082
	445 Warrenville Rd., Lisle, IL
	ESA P Portfolio L.L.C.

	4095
	1075 Lake St., Hanover Park, IL
	ESA P Portfolio L.L.C.

	4096
	4575 Frontage Rd., Hillside, IL
	ESA P Portfolio L.L.C.

	4138
	5211 Old Orchard Road, Skokie, IL
	ESA P Portfolio L.L.C.

	4165
	215 N Milwaukee Ave, Vernon Hills, IL
	ESA P Portfolio L.L.C.

	4190
	2000 N Roselle Rd, Schaumburg, IL
	ESA P Portfolio L.L.C.

	4194
	4306 North Brandywine Dr, Peoria, IL
	ESA P Portfolio L.L.C.

	4200
	1805 S. Veterans Pkwy, Bloomington, IL
	ESA P Portfolio L.L.C.

	4206
	7524 State Road, Bedford Park, IL
	ESA P Portfolio L.L.C.

	9651
	1827 Centre Point Circle, Naperville, IL
	ESA P Portfolio L.L.C.

	9652
	2701 Technology Drive, Lombard, IL
	ESA P Portfolio L.L.C.

	9653
	51 E. State Parkway, Schaumburg, IL
	ESA P Portfolio L.L.C.

	9654
	675 Woodlands Parkway, Vernon Hills, IL
	ESA P Portfolio L.L.C.

	9655
	855 Pasquinelli Drive, Westmont, IL
	ESA P Portfolio L.L.C.

	11
	9750 Lake Shore Drive, Indianapolis, IN
	ESA P Portfolio L.L.C.

	14
	9030 Wesleyan Road, Indianapolis, IN
	ESA P Portfolio L.L.C.

	35
	301 Eagle Crest Drive, Evansville, IN
	ESA P Portfolio L.L.C.

	36
	5810 Challenger Pkwy, Fort Wayne, IN
	ESA P Portfolio L.L.C.

	48
	4715 N. Main Street, Mishawaka, IN
	ESA P Portfolio L.L.C.

	247
	8309 W. Jefferson Blvd, Fort Wayne, IN
	ESA P Portfolio L.L.C.

	526
	1355 E. 83rd Avenue, Merrillville, IN
	ESA P Portfolio L.L.C.

	4014
	2730 Fortune Circle West, Indianapolis, IN
	ESA P Portfolio L.L.C.

	4031
	7940 N. Shadeland Ave, Indianapolis, IN
	ESA P Portfolio L.L.C.

	4196
	5305 N. Main Street, Mishawaka, IN
	ESA P Portfolio L.L.C.

	9656
	8520 Northwest Blvd, Indianapolis, IN
	ESA P Portfolio L.L.C.

	9813
	5350 W. Southern Ave, Indianapolis, IN
	ESA P Portfolio L.L.C.

	9814
	9370 Waldemar Rd, Indianapolis, IN
	ESA P Portfolio L.L.C.

	521
	10750 Quivira Road, Overland Park, KS
	ESA P Portfolio L.L.C.

	6085
	9450 E. Corporate Hills Dr, Wichita, KS
	ESA P Portfolio L.L.C.

	9657
	5401 West 110th Street, Overland Park, KS
	ESA P Portfolio L.L.C.

	9658
	6451 East Frontage Road, Merriam, KS
	ESA P Portfolio L.L.C.

	9815
	7201 W. 106th St, Overland Park, KS
	ESA P Portfolio L.L.C.

	9816
	8015 Lenexa Drive, Lenexa, KS
	ESA P Portfolio L.L.C.

	2
	3575 Tates Creek Road, Lexington, KY
	ESA P Portfolio L.L.C.

	4
	9801 Bunsen Way, Louisville, KY
	ESA P Portfolio L.L.C.

	28
	200 Meijer Drive, Florence, KY
	ESA P Portfolio L.L.C.

	295
	2650 Wilhite Drive, Lexington, KY
	ESA P Portfolio L.L.C.

	325
	6101 Dutchmans Lane, Louisville, KY
	ESA P Portfolio L.L.C.

	629
	7350 Turfway Road, Florence, KY
	ESA P Portfolio L.L.C.

	659
	650 West 3rd Street, Covington, KY
	ESA P Portfolio L.L.C.

	9659
	1650 Alliant Avenue, Louisville, KY
	ESA P Portfolio L.L.C.

	6000
	3300 S. I-10 Service Rd. W, Metairie, LA
	ESA P Portfolio L.L.C.

	6049
	807 S. Hugh Wallis Rd, LA
	ESA P Portfolio L.L.C.

	6166
	2300 Veterans Blvd, Kenner, LA
	ESA P Portfolio L.L.C.

	6169
	6250 Corporate Blvd., Baton Rouge, LA
	ESA P Portfolio L.L.C.

	576
	102 Newbury St., Danvers, MA
	ESA P Portfolio L.L.C.

	1020
	180 E. Main St., Westborough, MA
	ESA P Portfolio L.L.C.

	1023
	19 Connector Rd., Westborough, MA
	ESA P Portfolio L.L.C.

	1028
	1910 Andover St., Tewksbury, MA
	ESA P Portfolio L.L.C.

	1029
	20 Rockdale St., Braintree, MA
	ESA P Portfolio L.L.C.

	1140
	280 S. Washington Rd., Norton, MA
	ESA P Portfolio L.L.C.

	9664
	40 South Ave., Burlington, MA
	ESA P Portfolio L.L.C.

	9665
	19 Northborough Road East, Marlborough, MA
	ESA P Portfolio L.L.C.

	9666
	200 Jubilee Dr, Peabody, MA
	ESA P Portfolio L.L.C.

	9667
	52 Fourth Ave., Waltham, MA
	ESA P Portfolio L.L.C.

	9846
	32 Fourth Ave., Waltham, MA
	ESA P Portfolio L.L.C.

	9847
	1800 Computer Drive, Westborough, MA
	ESA P Portfolio L.L.C.

	9848
	831 Main Street, Woburn, MA
	ESA P Portfolio L.L.C.

	1091
	2 Ashley Dr., Scarborough, ME
	ESA P Portfolio L.L.C.

	58
	30125 N. Civic Center Blvd., Warren, MI
	ESA P Portfolio L.L.C.

	552
	32690 Stephenson Hwy, Madison Heights, MI
	ESA P Portfolio L.L.C.

	600
	33400 Van Dyke Rd., Sterling Heights, MI
	ESA P Portfolio L.L.C.

	670
	1501 Briarwood Circle Dr., Ann Arbor, MI
	ESA P Portfolio L.L.C.

	675
	1180 Doris Rd., Auburn Hills, MI
	ESA P Portfolio L.L.C.

	680
	21555 Haggerty Rd., Novi, MI
	ESA P Portfolio L.L.C.

	780
	27775 Stansbury Blvd, Farmington Hills, MI
	ESA P Portfolio L.L.C.

	4013
	3747 29th St. S.E., Kentwood, MI
	ESA P Portfolio L.L.C.

	4038
	3265 Boardwalk Dr., Ann Arbor, MI
	ESA P Portfolio L.L.C.

	4058
	39640 Orchard Hill Pl., Novi, MI
	ESA P Portfolio L.L.C.

	4179
	2000 Haggerty Rd., Canton, MI
	ESA P Portfolio L.L.C.

	4191
	30325 Flynn Dr., Romulus, MI
	ESA P Portfolio L.L.C.

	4192
	26250 American Dr., Southfield, MI
	ESA P Portfolio L.L.C.

	4193
	20200 Thirteen Mile Rd., Roseville, MI
	ESA P Portfolio L.L.C.

	4198
	260 Town Center Dr., Dearborn, MI
	ESA P Portfolio L.L.C.

	9668
	3315 University Dr., Auburn Hills, MI
	ESA P Portfolio L.L.C.

	9669
	28500 Northwestern Hwy., Southfield, MI
	ESA P Portfolio L.L.C.

	9818
	2100 Featherstone Rd., Auburn Hills, MI
	ESA P Portfolio L.L.C.

	733
	7956 Lyndale Ave. South, Bloomington, MN
	ESA P Portfolio L.L.C.

	734
	7550 Office Ridge Court, Bloomington, MN
	ESA P Portfolio L.L.C.

	737
	12970 63rd Ave. North, Maple Grove, MN
	ESA P Portfolio L.L.C.

	745
	3384 Norwest Court, Eagan, MN
	ESA P Portfolio L.L.C.

	3504
	2701 Freeway Blvd, Brooklyn Center, MN
	ESA P Portfolio L.L.C.

	3508
	10020 Hudson Rd, Woodbury ,MN
	ESA P Portfolio L.L.C.

	3527
	4700 78th Street West [Vacant Land], Bloomington, MN
	ESA P Portfolio L.L.C.

	3528
	55 Wood Lake Drive. SE, Rochester, MN
	ESA P Portfolio L.L.C.

	3529
	2814 43rd St. NW, Rochester, MN
	ESA P Portfolio L.L.C.

	9670
	3015 Denmark Ave, Eagan, MN
	ESA P Portfolio L.L.C.

	9671
	11905 Technology Drive, Eden Prairie, MN
	ESA P Portfolio L.L.C.

	18
	2030 Craig Rd, St. Louis, MO
	ESA P Portfolio L.L.C.

	40
	3125 Rider Trail South, Earth City, MO
	ESA P Portfolio L.L.C.

	172
	5555 Veterans Memorial Pkwy, St. Peters, MO
	ESA P Portfolio L.L.C.

	522
	11712 N.W. Plaza Circle, Kansas City, MO
	ESA P Portfolio L.L.C.

	561
	550 East 105th Street, Kansas City, MO
	ESA P Portfolio L.L.C.

	700
	11827 Lackland Rd, Maryland Heights, MO
	ESA P Portfolio L.L.C.

	701
	1333 E. Kingsley St, Springfield, MO
	ESA P Portfolio L.L.C.

	6196
	2000 W. Business Loop 70, Columbia, MO
	ESA P Portfolio L.L.C.

	9672
	4535 Main Street, Kansas City, MO
	ESA P Portfolio L.L.C.

	9673
	9701 N. Shannon Avenue, Kansas City, MO
	ESA P Portfolio L.L.C.

	9674
	11252 Lone Eagle Dr, Bridgeton, MO
	ESA P Portfolio L.L.C.

	9675
	12161 Lackland Rd, St. Louis, MO
	ESA P Portfolio L.L.C.

	32
	800 Ridgewood Rd., Ridgeland, MS
	ESA P Portfolio L.L.C.

	331
	5354 I-55N, Jackson, MS
	ESA P Portfolio L.L.C.

	9862
	572 East Beasley Road, Jackson, MS
	ESA P Portfolio L.L.C.

	7065
	4950 Southgate Drive, Billings, MT
	ESA P Portfolio L.L.C.

	7068
	800 River Drive South, Great Falls, MT
	ESA P Portfolio L.L.C.

	20
	5830 Westpark Dr., Charlotte, NC
	ESA P Portfolio L.L.C.

	21
	1705 Stanley Rd., Greensboro, NC
	ESA P Portfolio L.L.C.

	24
	123 East McCullough Dr., Charlotte, NC
	ESA P Portfolio L.L.C.

	26
	600 Weston Pkwy., Cary, NC
	ESA P Portfolio L.L.C.

	30
	921 Wake Towne Drive, Raleigh, NC
	ESA P Portfolio L.L.C.

	31
	2504 North Carolina Highway 54, Durham, NC 
LEASEHOLD
	ESA P Portfolio L.L.C.

	106
	911 Wake Towne Drive, Raleigh, NC
	ESA P Portfolio L.L.C.

	127
	408 Owen Dr., Fayetteville, NC
	ESA P Portfolio L.L.C.

	161
	2700 Slater Rd, Morrisville, NC
	ESA P Portfolio L.L.C.

	186
	4929 New Centre Dr., Wilmington, NC
	ESA P Portfolio L.L.C.

	201
	3105 Tower Blvd., Durham, NC
	ESA P Portfolio L.L.C.

	206
	6035 Nations Ford Road, Charlotte, NC
	ESA P Portfolio L.L.C.

	231
	6 Kenilworth Knoll, Asheville, NC
	ESA P Portfolio L.L.C.

	232
	1500 Regency Parkway, Cary, NC
	ESA P Portfolio L.L.C.

	280
	4317 Big Tree Way, Greensboro, NC
	ESA P Portfolio L.L.C.

	370
	1995 Hampton Inn Ct., Winston-Salem, NC
	ESA P Portfolio L.L.C.

	371
	10930 Park Road, Charlotte, NC
	ESA P Portfolio L.L.C.

	417
	8211 University Executive Park Drive, Charlotte, NC
	ESA P Portfolio L.L.C.

	1570
	4610 South Miami Blvd, Durham, NC
	ESA P Portfolio L.L.C.

	1571
	8405 Pineville - Matthews Road, Charlotte, NC
	ESA P Portfolio L.L.C.

	1576
	3100 Regency Parkway, Cary, NC
	ESA P Portfolio L.L.C.

	1591
	20 McDaniel Drive, Jacksonville, NC
	ESA P Portfolio L.L.C.

	1594
	7617 Thorndike Road, Greensboro, NC
	ESA P Portfolio L.L.C.

	1596
	4105 Sycamore Dairy Road, Fayetteville, NC
	ESA P Portfolio L.L.C.

	9682
	710 Yorkmont Road, Charlotte, NC
	ESA P Portfolio L.L.C.

	9683
	1920 Ivy Creek Boulevard, Durham, NC
	ESA P Portfolio L.L.C.

	9686
	3531 Wake Forest Rd, Raleigh, NC
	ESA P Portfolio L.L.C.

	9687
	2601 Appliance Court, Raleigh, NC
	ESA P Portfolio L.L.C.

	9836
	4919 S. Miami Blvd, Durham, NC
	ESA P Portfolio L.L.C.

	54
	9006 Burt St. NW, Omaha, NE
	ESA P Portfolio L.L.C.

	1087
	2000 Southwood Dr., Nashua, NH
	ESA P Portfolio L.L.C.

	455
	1653 East State Highway No. 70, Cherry Hill, NJ
	ESA P Portfolio L.L.C.

	479
	101 Diemer Drive, Mount Laurel, NJ
	ESA P Portfolio L.L.C.

	574
	1 Fieldcrest Ave., Edison, NJ
	ESA P Portfolio L.L.C.

	646
	4230 US Route 1, South Brunswick, NJ
	ESA P Portfolio L.L.C.

	696
	329 Newman Springs Road, Red Bank, NJ
	ESA P Portfolio L.L.C.

	2509
	750 Edwin L. Ward Sr. Memorial Hwy, Rutherford, NJ
	ESA P Portfolio L.L.C.

	2516
	112 State Hwy. 17, Ramsey, NJ
	ESA P Portfolio L.L.C.

	2522
	500 Diemer Drive, Mt. Laurel, NJ
	ESA P Portfolio L.L.C.

	2649
	1 Meadowlands Pkwy, Secaucus, NJ
	ESA P Portfolio L.L.C.

	2653
	45 Glimcher Realty Way, Elizabeth, NJ 
LEASEHOLD
	ESA P Portfolio L.L.C.

	2655
	30 World's Fair Drive, Franklin, NJ
	ESA P Portfolio L.L.C.

	2676
	3450 Brunswick Pike, Princeton, NJ
	ESA P Portfolio L.L.C.

	2742
	71 International Dr. South, Budd Lake, NJ
	ESA P Portfolio L.L.C.

	9677
	125 Rt 10 East, Whippany, NJ
	ESA P Portfolio L.L.C.

	9678
	300 State H. Rt 3 East, East Rutherford, NJ
	ESA P Portfolio L.L.C.

	9679
	1 Plaza Drive, Secaucus, NJ  
LEASEHOLD
	ESA P Portfolio L.L.C.

	9680
	1 Hoover Way, Woodbridge, NJ
	ESA P Portfolio L.L.C.

	9849
	410 S. Randolphville Road, Piscataway, NJ
	ESA P Portfolio L.L.C.

	7512
	2608 The American Rd. NW, Rio Rancho, NM
	ESA P Portfolio L.L.C.

	7519
	2321 International Ave. SE., Albuquerque, NM
	ESA P Portfolio L.L.C.

	9819
	2221 Rio Rancho Blvd (Hwy 528), Rio Rancho, NM
	ESA P Portfolio L.L.C.

	860
	4270 S. Valley View Blvd., Las Vegas, NV
	ESA P Portfolio L.L.C.

	7570
	9795 Gateway Drive, Reno, NV
	ESA P Portfolio L.L.C.

	9676
	3045 South Maryland Parkway, Las Vegas, NV 
LEASEHOLD
	ESA P Portfolio L.L.C.

	9820
	1550 E. Flamingo Rd, Las Vegas, NV
	ESA P Portfolio L.L.C.

	501
	1395 Washington Ave., Albany, NY
	ESA P Portfolio L.L.C.

	503
	700 Commons Way, Rochester, NY
	ESA P Portfolio L.L.C.

	504
	6630 Old Collamer Rd, East Syracuse, NY
	ESA P Portfolio L.L.C.

	554
	125 Inn Keepers Lane, Amherst, NY
	ESA P Portfolio L.L.C.

	634
	905 S. Oyster Bay Rd., Bethpage, NY
	ESA P Portfolio L.L.C.

	651
	18-30 Whitestone Expy., Whitestone, NY
	ESA P Portfolio L.L.C.

	763
	100 Spagnoli Rd, Melville, NY
	ESA P Portfolio L.L.C.

	765
	600 Center Place Drive, Rochester, NY
	ESA P Portfolio L.L.C.

	2546
	118 Tarrytown Rd., Elmsford, NY
	ESA P Portfolio L.L.C.

	2716
	55 W. Merritt Blvd, Fishkill, NY
	ESA P Portfolio L.L.C.

	9681
	25 Merritt Blvd, Fishkill, NY
	ESA P Portfolio L.L.C.

	6
	9651 Seward Road, Fairfield, OH
	ESA P Portfolio L.L.C.

	7
	2200 Lake Club Drive, Columbus, OH
	ESA P Portfolio L.L.C.

	8
	7851 Lois Circle, Dayton, OH
	ESA P Portfolio L.L.C.

	9
	6601 Reflections Drive, Dublin, OH
	ESA P Portfolio L.L.C.

	15
	4260 Hunt Road, Blue Ash, OH
	ESA P Portfolio L.L.C.

	33
	170 Montrose W. Ave., Copley, OH
	ESA P Portfolio L.L.C.

	34
	3131 Presidential Drive, Fairborn, OH
	ESA P Portfolio L.L.C.

	41
	542 West Dussel Drive, Maumee, OH
	ESA P Portfolio L.L.C.

	47
	25801 Country Club Blvd., North Olmsted, OH
	ESA P Portfolio L.L.C.

	53
	17552 Rosbough Drive, Middleburg Heights, OH
	ESA P Portfolio L.L.C.

	59
	30360 Clemens Rd., Westlake, OH
	ESA P Portfolio L.L.C.

	553
	185 Montrose W. Ave., Copley, OH
	ESA P Portfolio L.L.C.

	564
	6155 Trust Drive, Holland, OH
	ESA P Portfolio L.L.C.

	565
	320 Glensprings Drive, Springdale, OH
	ESA P Portfolio L.L.C.

	590
	6255 Zumstein Drive, Columbus, OH
	ESA P Portfolio L.L.C.

	681
	450 Metro Place North, Dublin, OH
	ESA P Portfolio L.L.C.

	4015
	11145 Kenwood Road, Blue Ash, OH
	ESA P Portfolio L.L.C.

	4018
	4200 Stelzer Road, Columbus, OH
	ESA P Portfolio L.L.C.

	4027
	7465 High Cross Boulevard, Columbus, OH
	ESA P Portfolio L.L.C.

	4075
	10300 Cascade Crossing, Brooklyn, OH
	ESA P Portfolio L.L.C.

	4120
	6688 Miller Lane, Dayton, OH
	ESA P Portfolio L.L.C.

	4178
	3820 Orange Pl., Orange, OH
	ESA P Portfolio L.L.C.

	9688
	4630 Creek Road, Blue Ash, OH
	ESA P Portfolio L.L.C.

	9689
	24851 Country Club Blvd., North Olmsted, OH
	ESA P Portfolio L.L.C.

	9690
	3625 Orange Pl., Orange Village, OH
	ESA P Portfolio L.L.C.

	9821
	8555 Lyra Drive, Columbus, OH
	ESA P Portfolio L.L.C.

	9822
	5530 Tuttle Crossing Blvd, Dublin, OH
	ESA P Portfolio L.L.C.

	39
	7901 E. 31st Court South, Tulsa, OK
	ESA P Portfolio L.L.C.

	50
	4811 Northwest Expressway, Oklahoma City, OK
	ESA P Portfolio L.L.C.

	876
	3414 South 79th East Ave.. Tulsa, OK
	ESA P Portfolio L.L.C.

	877
	4820 West Reno Ave., Oklahoma City, OK
	ESA P Portfolio L.L.C.

	6065
	2720 Northwest Expressway, Oklahoma City, OK
	ESA P Portfolio L.L.C.

	335
	18665 NW Eider Ct, Beaverton, OR
	ESA P Portfolio L.L.C.

	399
	17777 NE Sacramento St, Portland, OR
	ESA P Portfolio L.L.C.

	9691
	875 SW 158th Ave, Beaverton, OR
	ESA P Portfolio L.L.C.

	9692
	13009 SW 68th Parkway, Tigard, OR
	ESA P Portfolio L.L.C.

	9823
	19311 NW Cornell Rd, Hillsboro, OR
	ESA P Portfolio L.L.C.

	453
	3216 Tillman Drive, Bensalem, PA
	ESA P Portfolio L.L.C.

	463
	300 Morehall Rd, Rt 29, Malvern, PA
	ESA P Portfolio L.L.C.

	507
	520 North Bell Avenue, Carnegie, PA
	ESA P Portfolio L.L.C.

	547
	9000 Tinicum Blvd, Philadelphia, PA
	ESA P Portfolio L.L.C.

	2506
	877 N. Pottstown Pike (Rt 100), Exton, PA
	ESA P Portfolio L.L.C.

	2511
	3851 Northern Pike, Monroeville, PA
	ESA P Portfolio L.L.C.

	2525
	200 Chauvet Drive, Pittsburgh, PA
	ESA P Portfolio L.L.C.

	2526
	8880 Bartram Ave, Philadelphia, PA
	ESA P Portfolio L.L.C.

	2565
	3050 Schoenersville Rd, Bethlehem, PA
	ESA P Portfolio L.L.C.

	2667
	114 Welsh Road, Horsham, PA
	ESA P Portfolio L.L.C.

	2675
	437 Irwins Lane, Plymouth Meeting, PA
	ESA P Portfolio L.L.C.

	2739
	1303 Lebanon Church Road, West Mifflin, PA
	ESA P Portfolio L.L.C.

	9693
	537 Dresher Road, Horsham, PA
	ESA P Portfolio L.L.C.

	9694
	400 American Avenue, King of Prussia, PA
	ESA P Portfolio L.L.C.

	9695
	8 E. Swedesford Road, Malvern, PA  
LEASEHOLD
	ESA P Portfolio L.L.C.

	1113
	245 W. Natick Rd, Warwick, RI
	ESA P Portfolio L.L.C.

	1114
	1200 Division Rd., West Warwick, RI
	ESA P Portfolio L.L.C.

	1137
	1000 Warren Ave, East Providence, RI
	ESA P Portfolio L.L.C.

	9696
	268 Metro Center Blvd, Warwick, RI
	ESA P Portfolio L.L.C.

	19
	530 Woods Lake Rd., Greenville, SC
	ESA P Portfolio L.L.C.

	22
	180 Stoneridge Dr., Columbia, SC
	ESA P Portfolio L.L.C.

	29
	7641 Northwoods Blvd., North Charleston, SC
	ESA P Portfolio L.L.C.

	115
	5059 N. Arco Lane, North Charleston, SC
	ESA P Portfolio L.L.C.

	131
	5430 Forest Dr., Columbia, SC
	ESA P Portfolio L.L.C.

	132
	3715 Pelham Rd., Greenville, SC
	ESA P Portfolio L.L.C.

	180
	450 Gracern Rd., Columbia, SC
	ESA P Portfolio L.L.C.

	223
	304 Wingo Way, Mt. Pleasant, SC
	ESA P Portfolio L.L.C.

	9697
	5045 N. Arco Lane, North Charleston, SC
	ESA P Portfolio L.L.C.

	9824
	1170 Kinley Rd, Irmo, SC
	ESA P Portfolio L.L.C.

	45
	2979 N. Stemmons Frwy, Dallas, TX
	ESA P Portfolio L.L.C.

	46
	2420 E Lamar Blvd, Arlington, TX
	ESA P Portfolio L.L.C.

	49
	5454 Hollister Street, Houston, TX
	ESA P Portfolio L.L.C.

	52
	4636 West Plano Parkway, Plano, TX
	ESA P Portfolio L.L.C.

	62
	1303 LaConcha, Houston, TX
	ESA P Portfolio L.L.C.

	64
	2424 W. Sam Houston Pkwy South, Houston, TX
	ESA P Portfolio L.L.C.

	886
	6580 Montana Ave., El Paso, TX
	ESA P Portfolio L.L.C.

	6011
	3200 W. Sam Houston Pkwy, Houston, TX
	ESA P Portfolio L.L.C.

	6016
	12270 Greenville Ave., Dallas, TX
	ESA P Portfolio L.L.C.

	6026
	16939 Tomball Pkwy, Houston, TX
	ESA P Portfolio L.L.C.

	6027
	10100 N. Capital of Texas Hwy., Austin, TX
	ESA P Portfolio L.L.C.

	6029
	150 Valley Wood Rd, Spring, TX
	ESA P Portfolio L.L.C.

	6030
	555 S 1-35 - City Centre Business Park, Round Rock, TX
	ESA P Portfolio L.L.C.

	6055
	4701 Westheimer Road, Houston, TX
	ESA P Portfolio L.L.C.

	6057
	2330 SW Frwy, Houston, TX
	ESA P Portfolio L.L.C.

	6060
	600 Gaudalupe Street, Austin, TX
	ESA P Portfolio L.L.C.

	6066
	1410 Nasa Rd 1, Houston, TX
	ESA P Portfolio L.L.C.

	6068
	11175 Katy Frwy, Houston, TX
	ESA P Portfolio L.L.C.

	6069
	4022 Parkside Center Blvd, Farmers Branch, TX
	ESA P Portfolio L.L.C.

	6070
	6218 S. Staples St., Corpus Christi, TX
	ESA P Portfolio L.L.C.

	6071
	3261 N.E. Loop 820, Fort Worth, TX
	ESA P Portfolio L.L.C.

	6072
	1908 Forest Ridge Dr, Bedford, TX
	ESA P Portfolio L.L.C.

	6073
	1900 Lake Pointe Dr, Lewisville, TX
	ESA P Portfolio L.L.C.

	6074
	13505 North Frwy, Houston, TX, Houston, TX
	ESA P Portfolio L.L.C.

	6078
	990 Sunland Park Dr., El Paso, TX
	ESA P Portfolio L.L.C.

	6081
	6300 US HWY 290 East, Austin, TX
	ESA P Portfolio L.L.C.

	6082
	605 Meadow Creek Dr, Las Colinas, TX
	ESA P Portfolio L.L.C.

	6083
	4331 Spectrum One, San Antonio, TX
	ESA P Portfolio L.L.C.

	6084
	4701 City Lake Blvd. W, Fort Worth, TX
	ESA P Portfolio L.L.C.

	6092
	5831 Overton Ridge Blvd., Fort Worth, TX
	ESA P Portfolio L.L.C.

	6172
	2100 Cinema Dr., Amarillo, TX
	ESA P Portfolio L.L.C.

	6174
	106 W. Village Blvd, Laredo, TX
	ESA P Portfolio L.L.C.

	6175
	5903 Woodway Dr., Waco, TX
	ESA P Portfolio L.L.C.

	6178
	5100 US Hwy. 290 W, Austin, TX
	ESA P Portfolio L.L.C.

	6187
	4802 S Loop 289, Lubbock, TX
	ESA P Portfolio L.L.C.

	6195
	13858 N US Hwy. 183, Austin, TX
	ESA P Portfolio L.L.C.

	6197
	16950 N 1-35, Round Rock, TX
	ESA P Portfolio L.L.C.

	9702
	9100 Waterford Centre Blvd., Austin, TX
	ESA P Portfolio L.L.C.

	9703
	507 South First Street, Austin, TX
	ESA P Portfolio L.L.C.

	9704
	1221 N Watson Dr., Arlington, TX
	ESA P Portfolio L.L.C.

	9705
	5315 Camaby St., Irving, TX
	ESA P Portfolio L.L.C.

	9706
	7825 Heathrow Dr., Irving, TX
	ESA P Portfolio L.L.C.

	9708
	12121 Coit Rd, Dallas, TX
	ESA P Portfolio L.L.C.

	9709
	18470 N. Dallas Pkwy, Dallas, TX
	ESA P Portfolio L.L.C.

	9710
	4709 W. Plano Pkwy, Plano, TX
	ESA P Portfolio L.L.C.

	9711
	901 E. Campbell Road, Richardson, TX
	ESA P Portfolio L.L.C.

	9712
	1601 River Run, Fort Worth, TX
	ESA P Portfolio L.L.C.

	9713
	2300 West Loop South, Houston, TX
	ESA P Portfolio L.L.C.

	9714
	7979 Fannin Street, Houston, TX
	ESA P Portfolio L.L.C.

	9715
	13223 Champions Ctr Dr, Houston, TX
	ESA P Portfolio L.L.C.

	9716
	1015 Central Parkway South, San Antonio, TX
	ESA P Portfolio L.L.C.

	9826
	1301 S. Braeswood Blvd, Houston, TX
	ESA P Portfolio L.L.C.

	9827
	720 W. Bay Area Blvd, Webster, TX
	ESA P Portfolio L.L.C.

	9828
	2900 Dallas Pkwy, Plano, TX
	ESA P Portfolio L.L.C.

	9829
	12424 Research Blvd, Austin, TX
	ESA P Portfolio L.L.C.

	9831
	4726 Sugar Grove Blvd, Stafford, TX
	ESA P Portfolio L.L.C.

	9832
	2700 Gracy Farms Lane, Austin, TX
	ESA P Portfolio L.L.C.

	9833
	5401 Green Park Drive, Irving, TX
	ESA P Portfolio L.L.C.

	9834
	8221 North IH-35, Austin, TX
	ESA P Portfolio L.L.C.

	9835
	9019 Vantage Point Rd, Dallas, TX
	ESA P Portfolio L.L.C.

	352
	10715 Auto Mall Drive, Sandy, UT
	ESA P Portfolio L.L.C.

	362
	2310 W. City Center Court, West Valley City, UT
	ESA P Portfolio L.L.C.

	379
	7555 S. Union Park Ave., Midvale, UT
	ESA P Portfolio L.L.C.

	9718
	1220 East 2100 South, Salt Lake City, UT
	ESA P Portfolio L.L.C.

	43
	12359 Hornsby Lane, Newport News, VA
	ESA P Portfolio L.L.C.

	44
	10060 W. Broad St., Glen Allen, VA
	ESA P Portfolio L.L.C.

	111
	14420 Chantilly Crossing Lane, Chantilly, VA
	ESA P Portfolio L.L.C.

	140
	11708 Jefferson Ave., Newport News, VA
	ESA P Portfolio L.L.C.

	175
	1540 Crossways Blvd, Chesapeake, VA
	ESA P Portfolio L.L.C.

	291
	2705 Frontage Rd. NW, Roanoke, VA
	ESA P Portfolio L.L.C.

	410
	6811 Paragon Pl., Richmond, VA
	ESA P Portfolio L.L.C.

	478
	46001 Waterview Plaza, Sterling, VA
	ESA P Portfolio L.L.C.

	480
	4548 Bonney Rd., Virginia Beach, VA
	ESA P Portfolio L.L.C.

	768
	205 North Breckinridge Place, Alexandria, VA
	ESA P Portfolio L.L.C.

	1599
	6807 Paragon Pl., Richmond, VA
	ESA P Portfolio L.L.C.

	1620
	12055 Lee Jackson Memorial Hwy, Fairfax, VA
	ESA P Portfolio L.L.C.

	1813
	6800 Metropolitan Center Dr, Springfield, VA
	ESA P Portfolio L.L.C.

	1821
	1021 Elden Street, Herndon ,VA
	ESA P Portfolio L.L.C.

	1828
	1910 University Blvd, Lynchburg, VA
	ESA P Portfolio L.L.C.

	1831
	1915 Commerce Dr, Hampton ,VA
	ESA P Portfolio L.L.C.

	1846
	5920 Fort Drive, Centreville, VA
	ESA P Portfolio L.L.C.

	9719
	200 Blue Stone Road PA, Alexandria, VA
	ESA P Portfolio L.L.C.

	9725
	8201 Old Courthouse Road, Vienna, VA
	ESA P Portfolio L.L.C.

	9727
	241 Arboretum Place, Richmond, VA
	ESA P Portfolio L.L.C.

	9850
	4506 Brookfield Corp. Drive, Chantilly, VA
	ESA P Portfolio L.L.C.

	9851
	3997 Fair Ridge Drive, Fairfax, VA
	ESA P Portfolio L.L.C.

	9860
	3214 Churchland Blvd., Chespeake, VA
	ESA P Portfolio L.L.C.

	9861
	809 Greenbrier Circle, Chesapeake, VA
	ESA P Portfolio L.L.C.

	341
	300 NE 115th Avenue, Vancouver, WA
	ESA P Portfolio L.L.C.

	409
	1400 South 320th Street, Federal Way, WA
	ESA P Portfolio L.L.C.

	418
	1150 Oakesdale Ave SW, Renton, WA
	ESA P Portfolio L.L.C.

	802
	22520 83rd Avenue South, Kent, WA
	ESA P Portfolio L.L.C.

	805
	2820 Pacific Hwy East, Fife, WA
	ESA P Portfolio L.L.C.

	806
	15451 53rd Avenue South, Tukwila, WA
	ESA P Portfolio L.L.C.

	810
	3021 196th Street SW, Lynnwood, WA
	ESA P Portfolio L.L.C.

	815
	8410 Broadway, Everett, WA
	ESA P Portfolio L.L.C.

	817
	12803 E. Sprague, Spokane, WA
	ESA P Portfolio L.L.C.

	824
	11400 Main Street, Bellevue, WA
	ESA P Portfolio L.L.C.

	831
	2120 S. 48th St., Tacoma, WA
	ESA P Portfolio L.L.C.

	7009
	923 228th Street SE, Bothell, WA
	ESA P Portfolio L.L.C.

	7020
	1431 112th Street SE, Everett, WA
	ESA P Portfolio L.L.C.

	7032
	1675 Mottman Road SW, Tumwater, WA
	ESA P Portfolio L.L.C.

	7062
	3917 Harbour Pointe Blvd SW, Mukilteo, WA
	ESA P Portfolio L.L.C.

	7066
	13300 Stone Avenue North, Seattle, WA
	ESA P Portfolio L.L.C.

	9728
	3700 132nd Ave SE, Bellevue, WA
	ESA P Portfolio L.L.C.

	9729
	15805 NE 28th Street, Bellevue, WA
	ESA P Portfolio L.L.C.

	9730
	15635 West Valle Hwy, Tukwila, WA
	ESA P Portfolio L.L.C.

	9852
	22122 17th Ave. S.E., Bothell, WA, Bothell, WA
	ESA P Portfolio L.L.C.

	557
	11121 W North Ave, Wauwatosa, WI
	ESA P Portfolio L.L.C.

	679
	4141 Boardwalk Ct, Appleton, WI
	ESA P Portfolio L.L.C.

	731
	55 Junction Court, Madison, WI
	ESA P Portfolio L.L.C.

	785
	2520 Plaza Court, Waukesha, WI
	ESA P Portfolio L.L.C.

	4034
	45 Junction Court, Madison, WI
	ESA P Portfolio L.L.C.

	9731
	325 N Brookfield Rd Brookfield, WI
	ESA P Portfolio L.L.C.

	56
	6620 Eli Whitney Drive, Columbia, MD
	ESA P Portfolio MD Trust

	658
	1500 Aero Drive, Linthicum, MD
	ESA P Portfolio MD Trust

	699
	8870 Columbia 100 Parkway, Columbia, MD
	ESA P Portfolio MD Trust

	767
	9401 Largo Drive West, Landover, MD
	ESA P Portfolio MD Trust

	2503
	9704 Beaver Dam Road, Timonium, MD
	ESA P Portfolio MD Trust

	2504
	12450 Milestone Center Dr, Germantown, MD
	ESA P Portfolio MD Trust

	2528
	205 Professional Drive, Gaithersburg, MD
	ESA P Portfolio MD Trust

	2529
	201 Professional Drive, Gaithersburg, MD
	ESA P Portfolio MD Trust

	2530
	5240 Westview Dr, Frederick, MD
	ESA P Portfolio MD Trust

	2549
	46565 Expedition Park Drive, Lexington Park, MD
	ESA P Portfolio MD Trust

	2705
	1 Womack Drive, Annapolis, MD
	ESA P Portfolio MD Trust

	2781
	104 Chesapeake Centre Ct, Glen Burnie, MD
	ESA P Portfolio MD Trust

	2787
	8550 Washington Blvd, Jessup, MD
	ESA P Portfolio MD Trust

	2802
	1361 James Way, Bel Air, MD
	ESA P Portfolio MD Trust

	9660
	120 Admiral Cochrane Drive, Annapolis, MD
	ESA P Portfolio MD Trust

	9662
	2621 Research Blvd, Rockville, MD
	ESA P Portfolio MD Trust

	10
	1700 Winston Rd., Knoxville, TN
	ESH/TN Properties L.L.C.

	12
	6085 Apple Tree Drive, Memphis, TN
	ESH/TN Properties L.L.C.

	13
	9025 Church Street East, Brentwood, TN
	ESH/TN Properties L.L.C.

	17
	2511 Elm Hill Pike, Nashville, TN
	ESH/TN Properties L.L.C.

	37
	8110 Cordova Centre Drive, Memphis, TN
	ESH/TN Properties L.L.C.

	121
	214 Langley Place, Knoxville, TN
	ESH/TN Properties L.L.C.

	125
	6240 Airpark Dr., Chattanooga, TN
	ESH/TN Properties L.L.C.

	305
	9020 Church Street East, Brentwood, TN
	ESH/TN Properties L.L.C.

	315
	2525 Elm Hill Pike, Nashville, TN
	ESH/TN Properties L.L.C.

	
			
	Site 
#
	Address
	Owner

	5003
	6520 Mt. Moriah Road, Memphis, TN
	ESH/TN Properties L.L.C.

	5023
	6325 Quail Hollow, Memphis, TN
	ESH/TN Properties L.L.C.

	5045
	3311 West End Avenue, Nashville, TN
	ESH/TN Properties L.L.C.

	9698
	2541 Corporate Avenue East, Memphis, TN
	ESH/TN Properties L.L.C.

	9699
	6500 Poplar Avenue, Memphis, TN
	ESH/TN Properties L.L.C.

	9700
	727 McGavock Pike, Nashville, TN
	ESH/TN Properties L.L.C.

	9701
	680 Bakers Bridre Ave., Franklin, TN
	ESH/TN Properties L.L.C.

	9825
	2520 Horizon Lake Dr, Memphis, TN
	ESH/TN Properties L.L.C.

	9645
	5401 Beaumont Center Boulevard East, Tampa, FL
	ESA P Portfolio L.L.C.

	9638
	3873 West Commercial Boulevard, Tamarac, FL
	ESA P Portfolio L.L.C.

	9639
	8720 NW 33 Street, Doral, FL
	ESA P Portfolio L.L.C.

	9643
	330 Grand Regency Boulevard, Brandon, FL
	ESA P Portfolio L.L.C.

	9642
	7550 State Road 84, Davie, FL
	ESA P Portfolio L.L.C.

	9644
	2311 Ulmterton Road, Clearwater, FL
	ESA P Portfolio L.L.C.

	9661
	939 International Drive, Linthicum Heights, MD
	ESA P Portfolio L.L.C.

	9663
	20141 Century Boulevard, Germantown, MD
	ESA P Portfolio L.L.C.

	9685
	4515 NC Highway 55, Durham, NC
	ESA P Portfolio L.L.C.

	9684
	4810 Bluestone Drive, Raleigh, NC
	ESA P Portfolio L.L.C.

	9722
	12104 Monument Drive, Fairfax, VA
	ESA P Portfolio L.L.C.

	9726
	10961 W Broad Street, Glen Allen, VA
	ESA P Portfolio L.L.C.

	9723
	8281 Willow Oaks Corporate Drive, Fairfax, VA
	ESA P Portfolio L.L.C.

	9720
	4504 Brookfield Corporate Drive, Chantilly, VA
	ESA P Portfolio L.L.C.

	9721
	45350 Catalina Court, Sterling, VA
	ESA P Portfolio L.L.C.

	9724
	12190 Sunset Hills Road, Reston, VA
	ESA P Portfolio L.L.C.Exhibit

Exhibit 10.5

AMENDED AND RESTATED
MANAGEMENT AGREEMENT
between 
ESA CANADA OPERATING LESSEE ULC 
(LESSEE) 
and 
ESA MANAGEMENT, LLC 
(MANAGER)
and
HVM CANADA HOTEL MANAGEMENT ULC
(CANADA EMPLOYER) 
August 30, 2016

TABLE OF CONTENTS

		
	ARTICLE I
	CERTAIN DEFINITIONS    2

		
	ARTICLE II
	ENGAGEMENT OF THE MANAGEMENT PARTIES AND  COMMENCEMENT OF MANAGEMENT OF THE HOTELS    4

		
	Section 2.1.
	Engagement of the Management Parties to Manage Hotels    4

		
	Section 2.2.
	Management Commencement Date    5

		
	ARTICLE III
	OPERATION OF THE HOTELS AFTER THE MANAGEMENT COMMENCEMENT DATE    5

		
	Section 3.1.
	Duty and Authority of the Management Parties    5

		
	Section 3.2.
	Operational Standards    8

		
	Section 3.3.
	Agreements with Related Parties    8

		
	Section 3.4.
	Emergency Repairs    8

		
	Section 3.5.
	Major Policy Matters and Decisions    8

		
	Section 3.6.
	Compliance with Trademark License Agreement    9

		
	Section 3.7.
	Marketing and Reservation Services    9

		
	Section 3.8.
	Financing Permitted    9

		
	Section 3.9.
	Credit Policies    9

		
	Section 3.10.
	Collection Practices    10

		
	Section 3.11.
	Centralized Services    10

		
	Section 3.12.
	Intellectual Property.    10

		
	ARTICLE IV
	OPERATING EXPENSES PAID BY LESSEE    11

		
	Section 4.1.
	Expenses Incurred by the Management Parties on Behalf of Lessee    11

		
	Section 4.2.
	Debts and Liabilities to Third Parties    11

		
	Section 4.3.
	The Management Parties Not Obligated to Advance Own Funds    11

		
	ARTICLE V
	CONSULTING SERVICES OF MANAGER’S AFFILIATES    12

		
	ARTICLE VI
	COMPLIANCE WITH LAWS    12

		
	Section 6.1.
	Compliance by the Management Parties and Lessee After Management Commencement Date    12

		
	Section 6.2.
	Lessee’s Right to Contest or Postpone Compliance    12

		
	Section 6.3.
	The Management Parties’ Right to Terminate Agreement    12

		
	ARTICLE VII
	HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT    13

		
	Section 7.1.
	Hotel Account    13

		
	Section 7.2.
	Operating Funds    13

		
	Section 7.3.
	Reserve Fund    13

		
	Section 7.4.
	Fidelity Bonds    14

		
	ARTICLE VIII
	BOOKS, RECORDS AND FINANCIAL STATEMENTS    14

		
	Section 8.1.
	Accounting System    14

		
	Section 8.2.
	Financial Statements    14

		
	Section 8.3.
	Periodic Delivery of Data in Electronic Form    15

		
	ARTICLE IX
	ANNUAL BUSINESS PLAN    15

		
	Section 9.1.
	Preparation of Annual Business Plan    15

		
	Section 9.2.
	Annual Business Plan Disputes    16

		
	Section 9.3.
	Deviations from Annual Business Plan    16

		
	ARTICLE X
	MANAGEMENT PARTIES’ FEES AND REIMBURSEMENTS    16

		
	Section 10.1.
	Management Fee    16

		
	Section 10.2.
	Reimbursement of Certain Expenses    17

		
	Section 10.3.
	Technical Services    17

		
	Section 10.4.
	Intentionally Omitted.    18

		
	Section 10.5.
	Other Hotel Revenue and Expenses    18

		
	ARTICLE XI
	INSURANCE    18

		
	Section 11.1.
	Insurance Coverage    18

		
	Section 11.2.
	Waiver of Subrogation; Lessee Assumes Risk of Adequacy    18

		
	ARTICLE XII
	TERM OF AGREEMENT AND TERMINATION    18

		
	Section 12.1.
	Term    18

		
	Section 12.2.
	Early Termination    18

		
	Section 12.3.
	Termination Procedure    19

		
	Section 12.4.
	Obligations Following Termination    19

		
	Section 12.5.
	Intentionally Omitted    21

		
	Section 12.6.
	Survival    21

		
	ARTICLE XIII
	REPRESENTATIONS AND COVENANTS    21

		
	Section 13.1.
	Lessee’s Representations    21

		
	Section 13.2.
	The Management Parties’ Representations    21

		
	Section 13.3.
	The Management Parties’ Covenants    22

		
	ARTICLE XIV
	ASSIGNMENT    22

		
	ARTICLE XV
	CONFIDENTIALITY    22

		
	ARTICLE XVI
	INDEMNIFICATION AND LIMITATION OF LIABILITY    22

		
	Section 16.1.
	Lessee’s Indemnification    22

		
	Section 16.2.
	The Management Parties’ Indemnification    23

		
	Section 16.3.
	Indemnification Procedure    23

		
	Section 16.4.
	Good Faith Judgment    24

		
	Section 16.5.
	Survival    24

		
	ARTICLE XVII
	MISCELLANEOUS    24

		
	Section 17.1.
	Severability    24

		
	Section 17.2.
	No Partnership    24

		
	Section 17.3.
	Meetings    24

		
	Section 17.4.
	Consents    24

		
	Section 17.5.
	Applicable Law    24

		
	Section 17.6.
	Successors Bound    25

		
	Section 17.7.
	Headings    25

		
	Section 17.8.
	Incorporation of Recitals    25

		
	Section 17.9.
	Notices    25

		
	Section 17.10.
	Entire Agreement; Amendments    25

		
	Section 17.11.
	The Management Parties’ Authority Limited    25

		
	Section 17.12.
	Exclusive Compensation    25

		
	Section 17.13.
	Property Rights    26

		
	Section 17.14.
	Attorneys’ Fees    26

		
	Section 17.15.
	Complimentary/Discount Policies    26

		
	Section 17.16.
	No Third Party Beneficiary    26

		
	Section 17.17.
	REOC    26

		
	Section 17.18.
	Amendment and Restatement    27

AMENDED AND RESTATED MANAGEMENT AGREEMENT
THIS AMENDED AND RESTATED MANAGEMENT AGREEMENT (this “Agreement”) is made as of August 30, 2016 by and between ESA CANADA OPERATING LESSEE ULC (f/k/a ESA Canada Operating Lessee Inc. and BRE/ESA Canada Lessee Inc.), a British Columbia unlimited liability corporation (“Lessee”), ESA MANAGEMENT, LLC, a Delaware limited liability company (“Manager”), and HVM CANADA HOTEL MANAGEMENT ULC, an Alberta unlimited liability corporation (“Canada Employer”, and together with Manager, collectively, the “Management Parties”).
BACKGROUND
A.    ESA Canada Administrator L.L.C., a Delaware limited liability company, and ESA Canada Properties Trust, a Delaware statutory trust (individually and collectively, “Owner”) are the owners of those certain properties constituting various hotel properties more specifically described in Schedule A attached hereto and the buildings, structures, fixtures and additions now or hereafter located thereon (collectively, the “Hotels”);
B.    Owner has entered into that certain Lease Agreement dated as of October 8, 2010 with Lessee, as amended by (a) that certain First Amendment to Lease Agreement dated as of November 30, 2012, (b) that certain Second Amendment to Lease Agreement dated as of November 11, 2013, (c) that certain Third Amendment to Lease Agreement dated as of February 22, 2016, and (d) that certain Amended and Restated Lease Agreement dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified, the “Operating Lease”) pursuant to which Owner has leased the Hotels to Lessee pursuant to the terms thereof;
C.    Manager is an independent contractor engaged in the management of hotels throughout the United States, and the Management Parties are experienced in the various phases of hotel operations; 
D.    Manager is the sole shareholder of Canada Employer; and
E.    Lessee entered into that certain Management Agreement dated as of November 11, 2013 with Manager (the “Original Management Agreement”). 
F.    Lessee and Manager desire to amend and restate the Original Management Agreement pursuant to the terms set forth herein.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing recitals and the premises and the mutual covenants herein contained, the parties hereto agree as follows: 

ARTICLE I 
CERTAIN DEFINITIONS
“Accounting Period” shall mean each of 12 accounting periods of one calendar month occurring each Fiscal Year.
“Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, (a) controls, is under common control with, or is controlled by such specified Person and (b) owns at least 10% of, is under common ownership of at least 10% with, or is owned at least 10% by, such specified Person.  For purposes of this definition, the term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management, policies, or activities of a Person, whether through ownership of voting securities, by contract, or otherwise. 
“Annual Business Plan” shall have the meaning set forth in Section 9.1.
“Centralized Services” shall have the meaning set forth in Section 3.11. 
“Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated thereunder, each as amended from time to time.
“Emergency Repairs” shall mean repairs which are necessary, as a result of emergencies, to protect, maintain, or repair the Hotels. Emergencies, for the purposes hereof, shall mean immediate threats of damage or injury to persons or property or immediate threats of violations of law.
“ESH Hospitality” shall mean ESH Hospitality, Inc. (f/k/a ESH Hospitality, LLC), a Delaware corporation, which will elect to be taxable as a real estate investment trust under Section 856(c) of the Code, together with its successors and assigns. 
“ESH IP” shall mean all names, trademarks, domain names and other intellectual property used in connection with the ownership, management or operation of any Hotel.
“FF&E Percentage Contribution” shall have the meaning set forth in Section 7.3.
“Fiscal Year” shall mean a Calendar Fiscal Year starting on January 1 and ending on December 31 or portion thereof depending upon the Management Commencement Date and the termination date hereunder.
“Furniture, Fixtures and Equipment” shall mean furniture, furnishings, light fixtures, outfittings, equipment and all other items of personal property customarily installed in or used in connection with the operation of the Hotels (it being understood, for the avoidance of doubt, that Furniture, Fixtures and Equipment shall not include major capital improvements to the Hotels). 
“GAAP” shall mean generally accepted accounting principles, as in effect from time to time in the United States of America, consistently applied. 

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“Gross Operating Revenues” shall mean all receipts, revenues, income and proceeds of sales of every kind received by the Management Parties from the operation of the Hotels, and shall include, without limitation: room rentals; rent or other payments received from sub-tenants, licensees, and occupants of commercial and retail space located in the Hotels (provided that the income and/or revenue received by any licensees, subtenants or other occupants which are Affiliates of Owner or Lessee shall not be included in Gross Operating Revenues); the proceeds of insurance received by Owner, Lessee or the Management Parties with respect to use and occupancy or business interruption insurance; deposits forfeited and not refunded; frequent guest program payments; and any amount recovered in any legal action or proceeding or settlement thereof pertaining to room revenues or other income from the Hotels which arose out of the operation of the Hotels. Gross Operating Revenues shall exclude all sales and excise taxes and any similar taxes collected as direct taxes payable to taxing authorities; gratuities or service charges collected for payment to and paid to employees; credit or refunds to guests; proceeds of insurance, save and except for proceeds of insurance with respect to use and occupancy or business interruption insurance; proceeds of sales of depreciable property; and proceeds of condemnation.
“Group Services” shall have the meaning set forth in Section 10.2.
“Hotel Account” shall have the meaning set forth in Section 7.1.
“Hotel Information” shall mean information collected and maintained by the Management Parties in connection with its operation and management of the Hotels pursuant to this Agreement, regardless of the form or medium involved (e.g., paper, electronic, disc, tape, etc.), including without limitation, books of account, guest records, customer lists, front office records and other records relating to, or reflecting the operation of, the Hotels. 
“Hotels” shall have the meaning set forth in Paragraph A of the Background section.
“Independent Auditor” shall mean a reputable national firm of independent certified public accountants having hotel experience, recommended by the Management Parties from time to time and approved by Lessee.
“Laws” shall have the meaning set forth in Section 6.1.
 “Licensed Intellectual Property” shall have the meaning set forth in Section 3.12(b). 
“Licensor” shall mean ESH Strategies Branding LLC, a Delaware limited liability company, together with its successors and assigns.
 “Management Commencement Date” shall have the meaning set forth in Section 2.2.
“Management Fee” shall have the meaning set forth in Section 10.1.
“Operating Equipment” shall mean non-consumable equipment and supplies required for the operation of the Hotels, including chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies.

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“Operating Funds” shall have the meaning set forth in Section 7.2.
“Operating Lease” shall have the meaning set forth in Paragraph B of the Background section.
“Operating Licenses” shall have the meaning set forth in Section 3.1(e).
“Operating Supplies” shall mean food and beverages and other consumable items used in the operation of a hotel, such as fuel, soap, cleaning materials, matches, stationery, brochures, folios and all other items used in the routine operation of the Hotels which are consumable by nature.
“Owner” shall have the meaning set forth in Paragraph A of the Background section.
“Parent” shall have the meaning set forth in Section 17.17.
“Person” means any individual or entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such Person where the context so admits.
“REOC” shall have the meaning set forth in Section 17.17.
“Regional Employee” and “Regional Employees” shall have the meaning set forth in Section 3.1(b).
“Reserve Fund” shall have the meaning set forth in Section 7.3.
“Supervisory Services” shall have the meaning set forth in Section 3.1(b). 
“Trademark License Agreement” shall mean that certain Trademark License Agreement dated as of the date October 8, 2010 by and between Licensor, as licensor, and Lessee, as licensee, as the same may be amended, modified and/or supplemented from time to time. 
“Uniform System” shall mean the Uniform System of Accounts for Hotels, “Tenth Revised Edition”, as revised and adopted by the Hotel Association of New York City, Inc. from time to time.
ARTICLE II 
ENGAGEMENT OF THE MANAGEMENT PARTIES AND  
COMMENCEMENT OF MANAGEMENT OF THE HOTELS
Section 2.1.    Engagement of the Management Parties to Manage Hotels.  Lessee hereby appoints the Management Parties as Lessee’s exclusive manager, subject to the terms of this Agreement, to supervise, direct and control the management and operation of the Hotels, and the Management Parties hereby undertake and agree to perform, as independent contractors of Lessee, all of the services and to comply with all of the provisions of this Agreement, upon all of the terms and conditions hereinafter set forth.

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Section 2.2.    Management Commencement Date.  The Management Parties assumed management and operation of the Hotels as of November 11, 2013 (the “Management Commencement Date”).  
ARTICLE III 
OPERATION OF THE HOTELS AFTER THE 
MANAGEMENT COMMENCEMENT DATE
Section 3.1.    Duty and Authority of the Management Parties.  On and after the Management Commencement Date, except as expressly limited hereby, the Management Parties shall have the exclusive authority and duty to direct, supervise, manage and operate the Hotels in an efficient and economical manner and to determine the programs and policies to be followed in connection therewith, all in accordance with the provisions of this Agreement and the Annual Business Plan. The Management Parties shall at all times be independent contractors and not employees of Owner or Lessee.  Subject to the provisions of this Agreement and the Annual Business Plan, the Management Parties shall have the discretion and control in all matters relating to the management and operation of the Hotels.  Without limiting the generality of the foregoing, (subject to the provisions of this Agreement and the Annual Business Plan): 
(a)    Canada Employer shall have the authority and duty to hire, supervise, direct the work of, discharge and determine the compensation and other benefits of all personnel working in the Hotels pursuant to a written program of benefits, perquisites and policies which has been delivered to and approved by Lessee.  Canada Employer shall be the judge of the fitness and qualifications of such personnel and shall be vested with discretion in the hiring, training, supervision, direction, discharging, and determination of the compensation and other benefits of such personnel during the course of their employment.  It is expressly understood and agreed that all personnel are in the sole employ of Canada Employer or such company as Canada Employer may contract with regarding said personnel and are not in the employ of Lessee or Owner and Lessee will not interfere with or give orders or instructions to personnel employed at the Hotels.
(b)    Manager shall have the authority and duty to reasonably employ the resources of its home office and regional facilities and personnel to supervise and assist in the operation of the Hotels. Manager shall provide the following supervisory services: maintenance, human resources and personnel, administration, hotel operations, housekeeping, advertising, food and beverage operations, sales promotion, forecasting and operations analysis, staff planning, accounting, marketing, revenue management, Information Systems, travel commission, training and oversight of reservations (the “Supervisory Services”). The foregoing Supervisory Services may be provided by Manager’s corporate officers, Manager’s employees, home office administrative heads or otherwise and shall be provided by Manager at its own expense, including, without limitation, the out-of-pocket expenses, and not charged to Owner, except as otherwise specifically provided for in this Agreement.  Notwithstanding the foregoing, to the extent any such Supervisory Services are to be provided in Canada, Manager will cause such services to be provided by Canadian residents.  In addition to the Supervisory Services to be provided by Manager hereunder, Canada Employer shall have the authority and the duty to initially employ one regional sales director and/

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or may employ other employees who will be based primarily in Canada (each a “Regional Employee”, and collectively, the “Regional Employees”).
(c)    The Management Parties shall have the authority and duty to establish all prices, price schedules, rates and rate schedules (with the goal of maximizing revenue per available room), rents, lease charges, concession charges, and, in connection therewith, the supervision, direction and control of the collection, receipt and giving of receipts for all services or income of any nature from the operations of the Hotels.
(d)    The Management Parties shall have the authority and duty to supervise and maintain complete books and records, including without limitation, the books of accounts and accounting procedures of the Hotels.
(e)    The Management Parties shall have the authority and duty to obtain and maintain all licenses and permits required for the operation of the Hotels (the “Operating Licenses”). The Operating Licenses may be in the name of one of the Management Parties, Lessee or Owner in accordance with or as required by local laws, customs and practices.
(f)    The Management Parties shall have the authority and duty to administer leases, license and concession agreements for all public space at the Hotels, including all stores, office space and lobby space. All such leases, licenses or concessions shall be in Lessee’s name and may be executed by Canada Employer on Lessee’s behalf after any such lease, license or other agreement has been approved by Lessee.
(g)    The Management Parties shall have the authority and duty to keep the Hotels and the Furniture, Fixtures and Equipment in good order, repair and condition, including, without limitation, making necessary replacements, improvements, additions and substitutions to the Hotels, subject to the approved Annual Business Plan. The Management Parties shall effect, institute, and/or supervise all decorations, routine construction, maintenance, repairs and alterations, including, but not limited to, the administration of a preventive maintenance program for all mechanical, electrical and plumbing systems and equipment, for the Hotels to ensure that the Hotels will be competitive in its market and in compliance with governmental regulations, the requirements of the Trademark License Agreement and with industry standards, provided that the costs therefor (unless the same relate to emergencies) are included in the Annual Business Plan or are otherwise approved in writing, in advance, by Lessee.  Subject to the limitations set forth in and imposed by the Annual Business Plan, the Management Parties will have the right to make such alterations, additions or improvements to the Hotels as are customarily made in the operation or comparable hotels; provided, however, that no structural alterations, additions or improvements involving a fundamental change in the character of the Hotels will be made without Lessee’s prior written approval.  The cost of such customary alterations, additions or improvements will be paid either out of the Gross Operating Revenues and charged directly to current operating expenses of the Hotels or will be paid from the Reserve Fund and capitalized and amortized on the books of the Hotels.
(h)    The Management Parties shall have the authority and duty to negotiate and enter into, on behalf of Lessee, service contracts and licenses required in the ordinary course of 

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business in operating the Hotels, including, without limitation, contracts for life/safety systems maintenance, electricity, gas, telephone, cleaning, elevator and boiler maintenance, air conditioning maintenance, master television service, laundry and dry cleaning, and other services which the Management Parties deem advisable; provided, however, any contract for a term in excess of one (1) year or which is not terminable without fee or penalty upon not more than sixty (60) days written notice or under which the total amount payable is $5,000 or more per Hotel and which is not covered in the Annual Business Plan shall, be approved by Lessee, which approval shall not be unreasonably withheld or delayed; and provided further, that to the extent any such contract of license is to provide services to the Hotels, the parties will use best efforts to cause such contract or license to specify that all such services will be provided by Canadian residents.
(i)    The Management Parties shall have the authority and duty to negotiate and enter into, on behalf of Lessee, agreements for banquet facilities and guest rooms and agreements to provide entertainment for the Hotels, and licenses for copyright music and videos, provided that to the extent any such agreement is to provide services to the Hotels, the parties will use best efforts to cause such agreement to specify that all such services will be provided by Canadian residents.
(j)    The Management Parties shall have the authority and duty to supervise and purchase or arrange for the purchase in the most economical manner of all inventories, provisions, Operating Equipment and Operating Supplies, which, in the normal course of business, are necessary and proper to maintain and operate the Hotels.
(k)    The Management Parties shall have the authority and duty to prepare and submit to Lessee the Annual Business Plan, as hereinafter described in Section 9.1.
(l)    The Management Parties shall have the authority and duty to consult with Lessee at least quarterly to discuss the operation and management of the Hotels and the performance of the Management Parties’ duties under this Agreement.
(m)    The Management Parties shall have the authority and duty to prepare, or engage an accounting firm reasonably approved by Lessee to prepare, any tax returns and statements which must be filed in connection with the ownership, operation or management of the Hotels (e.g., sales, use and occupancy taxes, real property taxes, and the like), and shall file (or cause to be filed) such returns and statements and, subject to the availability of Lessee funds, pay (or cause to be paid) such taxes, all in accordance with applicable Laws. 
(n)    The Management Parties shall have the authority and duty to, at Lessee’s request, advise and assist Lessee in connection with negotiating and prosecuting any claims for the abatement, reduction or refund of property taxes affecting the Hotels. 
(o)    The Management Parties shall have the authority and duty to cooperate reasonably with and assist Lessee in any legal proceedings by or against Lessee or Owner with regard to the Hotels and involving third parties. 

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(p)    The Management Parties shall have the authority and duty to perform such other tasks as are customary and usual in the operation of a hotel of a class and standing consistent with the Hotels’ facilities.
(q)    The Management Parties shall have the authority and duty to prepare and maintain all records and reports relating to the Hotels necessary to demonstrate and support ESH Hospitality’s status as a real estate investment trust for tax purposes.
Section 3.2.    Operational Standards.  (a)  The Management Parties will operate the Hotels at the expense of Lessee in accordance with and subject to the provisions of this Agreement and the Annual Business Plan. The Management Parties shall manage the Hotels in a manner normally associated with extended stay hotels of similar size, type, or usage in similar locations.  The Management Parties shall use due care with respect to the management, maintenance, and protection of, and accounting for, Lessee’s and Owner’s assets.
(b)    The Management Parties shall manage and operate the Hotels and their businesses, services, and sales and shall exercise diligent efforts to do so at all times in a manner consistent with the standards imposed by the Trademark License Agreement, the Operating Lease, the requirements of all governmental regulations, and the requirements of this Agreement. 
(c)    The Management Parties shall implement policies and practices to: (i) facilitate effective and efficient discharge of their obligations under this Agreement; and (ii) to create and enhance goodwill among existing and prospective guests and patrons. 
Section 3.3.    Agreements with Related Parties.  The Management Parties shall not enter into any contract with an Affiliate of the Management Parties in connection with the Hotels or the Management Parties’ services under this Agreement, including, without limitation, for operating, cleaning, maintaining, repairing or servicing the Hotels, without the express prior written consent of Lessee, which consent may be evidenced by Lessee’s approval of the Annual Business Plan.
Section 3.4.    Emergency Repairs.  In the event Emergency Repairs are needed at the Hotels, Manager shall be required to use its good faith efforts to obtain Lessee’s verbal approval of any Emergency Repairs prior to making any expenditure therefor.  In the event Manager is unable to contact Lessee to obtain its verbal approval of Emergency Repairs, then Manager is authorized to enter into contracts occasioned by such emergency that provide for expenditures not contemplated by the Annual Business Plan up to a sum of $50,000. Manager will promptly give Lessee written notice of any Emergency Repairs made by Manager.
Section 3.5.    Major Policy Matters and Decisions.  (a)  Manager shall submit outlines, in reasonable detail, to Lessee setting forth its plans for and/or any major changes in its management and operation of the Hotels that are likely to have a material effect upon the profitability of the Hotels prior to Manager’s institution of such changes. 

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(b)    Manager shall not make any major policy decisions or changes not reflected in the applicable Annual Business Plan that would have a potentially material effect on the operations of the Hotels without first obtaining Lessee’s approval of such policy change. 
Section 3.6.    Compliance with Trademark License Agreement.  The Management Parties shall administer compliance with the Trademark License Agreement.
Section 3.7.    Marketing and Reservation Services.  Manager shall cause the Hotels to be included in the national advertising programs and central reservation system for all hotels operated under the trademarks and trade names covered by the Trademark License Agreement.
Section 3.8.    Financing Permitted.  
(a)    Nothing herein contained shall prevent Lessee or Owner from encumbering the Hotels by mortgage, deed of trust, or trust deed in the nature of a mortgage.
(b)    Subject to availability of Lessee funds, Manager shall use diligent efforts to cause the operation of the Hotels to comply with all terms, conditions, and obligations contained in any loan documents entered into by Lessee or Owner, at any time and from time to time, in connection with Lessee’s or Owner’s financing arrangements (collectively, the “Loan Documents”), of which Manager is made aware (provided that Manager shall be under no obligation to ensure that sufficient funds for payment thereof are generated from Hotels operations), and with any leases, Lessee’s organizational documents, or other agreements of which Manager is made aware that are executed by Lessee or Owner and that relate to the Hotels.  Manager acknowledges that the terms and provisions of the Loan Documents may provide different standards or requirements with respect to certain matters covered by this Agreement.  To the extent the provisions of this Agreement are inconsistent with restrictions imposed by the Loan Documents, so long as Manager has been notified in writing of such restrictions, the provisions of the Loan Documents shall govern with respect to the matters covered hereby. 
(c)    Upon the execution of any Loan Documents, Lessee shall furnish Manager with a duplicate copy thereof and, if not designated in such Loan Documents, shall designate the post office address where notices may be served upon the lender thereunder (“Lender”).  Manager agrees that, so long as any such Loan Document shall constitute a lien on the Hotels, when Lender shall request in writing copies of any and all financial or other information, required to be prepared or maintained by Manager, pursuant to the terms and provisions of this Agreement, Manager shall, at Lessee’s direction, deliver same to Lender as often as Lessee may reasonably request. Moreover, Manager shall allow, upon request of Lessee, any person designated in writing by Lender to examine, audit, inspect, and transcribe all books of account and all other records relating to or reflecting the operation of the Hotels. 
(d)    Subject to the applicable terms and conditions of the Loan Documents, this Agreement and the rights of Manager hereunder are and shall be expressly subordinate and inferior to the rights of Lender under the Loan Documents as and to the extent provided therein. 

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Section 3.9.    Credit Policies.  Manager shall establish and implement policies and procedures for verifying, accepting, limiting, and rejecting the credit of guests and patrons of the Hotels. In connection with the foregoing, Manager shall make appropriate arrangements to honor American Express, Visa, MasterCard, such credit cards as may be required or provided by Licensor, and such other credit cards as Manager or Lessee may deem desirable. Manager shall utilize its best efforts to make such arrangements on the most favorable terms available.
Section 3.10.    Collection Practices.  Manager shall employ its best efforts to collect any and all credit card charges, checks, traveler’s checks, drafts, and other accounts receivable. Manager shall employ collection agencies and legal counsel, where appropriate, to pursue such claims.
Section 3.11.    Centralized Services.  Manager shall provide, or shall cause one or more of its Affiliates to provide, in the operation of the Hotels and for the benefit of its guests, those benefits, services, and facilities, including joint advertising programs to the extent appropriate (all herein collectively called “Centralized Services”), similar to those furnished to other hotels owned and/or operated by Manager or its Affiliates. 
Section 3.12.    Intellectual Property.
(a)    Manager acknowledges that the Licensor is the sole and exclusive owner of all rights, title and interest to the ESH IP, which shall in all events remain the exclusive property of the Licensor (or one or more of Licensor’s Affiliates).  Manager further acknowledges that, pursuant to the Trademark License Agreement, Lessee and its Affiliates have a license to use the ESH IP, which license shall in all events remain the exclusive property of Lessee (or one or more of Lessee’s Affiliates).  All use of the ESH IP at or in connection with the Hotels or as otherwise contemplated by this Agreement, and all goodwill arising therefrom or symbolized thereby, shall inure solely to the benefit of Lessee, Licensor and their respective Affiliates, as applicable.  Nothing in this Agreement shall be construed to grant Manager any right of ownership in, or right to use, or right to license others to use, the ESH IP, except in connection with fulfilling its duties and obligations under this Agreement.  Manager may not otherwise use the ESH IP without the prior written consent of Licensor or Lessee, which may be withheld in Licensor’s or Lessee’s sole and absolute discretion, in any manner whatsoever and shall not apply for registration of any ESH IP or any other intellectual property confusingly similar thereto in any jurisdiction.
(b)    Manager acknowledges that Lessee or its Affiliates are or may become the licensee of certain intellectual property including intellectual property that may be embodied in software for use at one or more facilities leased by Lessee or its Affiliates and all source and object code versions thereof and all related documentation, flow charts, user manuals, service/operator manuals and any enhancements, modifications or substitutions thereof (all such intellectual property herein collectively called “Licensed Intellectual Property”).  Except as otherwise specified by Lessee, Manager may utilize the Licensed Intellectual Property to the extent that Manager deems appropriate in connection with the operation of the Hotels for the purpose of carrying out its obligations hereunder, but such use shall be strictly on a non-exclusive basis and neither such use nor anything contained in this Agreement shall confer any proprietary or other rights in the Licensed Intellectual Property on Manager or any third parties.  

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(c)    Upon the expiration or earlier termination of this Agreement, any use of or right to use any of the ESH IP or Licensed Intellectual Property at or in connection with the Hotels by Manager shall cease forthwith.  In the event of the expiration or earlier termination of this Agreement, Manager shall immediately cease using all ESH IP and Licensed Intellectual Property, except to the extent that Manager may be authorized to continue using the same pursuant to, and in accordance with, the terms and conditions of any separate management or license agreement between Manager and any Affiliate of Lessee or any licensee or franchisee that is otherwise authorized to use any such ESH IP or Licensed Intellectual Property.  Further, Manager will have no right whatsoever from and after the date of expiration or earlier termination to make use of or to dispose of any furnishings and equipment, Operating Equipment and Operating Supplies bearing or incorporating any ESH IP except upon and in accordance with the terms and provisions of this Section 3.12(c).  Specifically, it is understood and agreed that Manager may not make any use of such property from and after the effective date of such expiration or earlier termination unless Manager is specifically authorized in writing (whether under license from Lessee, Licensor or otherwise, other than by this Agreement) to use property bearing any ESH IP, nor may Manager dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Lessee or Licensor (whether under license from Lessee or Licensor or otherwise) to use property bearing or incorporating any ESH IP. 
(d)    Lessee, Licensor and their respective Affiliates shall have the right to injunctive relief and any other right or remedy available at law or in equity to enforce the provisions of this Section 3.12. 
(e)    The provisions of this Section 3.12 shall survive expiration or earlier termination of this Agreement.
ARTICLE IV 
OPERATING EXPENSES PAID BY LESSEE
Section 4.1.    Expenses Incurred by the Management Parties on Behalf of Lessee.  Everything done by the Management Parties in the performance of their obligations and all expenses incurred under and in accordance with this Agreement shall be for and on behalf of Lessee and for Lessee’s account, except the services referred to in Article V, which shall be rendered and performed by the Management Parties or their Affiliates at their expense and not separately charged to Lessee, except as otherwise provided in Section 10.2.
Section 4.2.    Debts and Liabilities to Third Parties.  As between Lessee and the Management Parties under this Agreement, all debts and liabilities arising in the course of business of the Hotels are and shall be the obligations of Lessee, and, provided such debts and liabilities have been incurred in accordance with the terms and provisions of this Agreement, the Management Parties shall not be liable for any of such obligations by reason of their management, supervision and operation of the Hotels for Lessee.   
Section 4.3.    The Management Parties Not Obligated to Advance Own Funds.  Neither the Management Parties nor any of their Affiliates shall be obligated to advance any of its own funds to or for the account of Lessee, nor to incur any liability unless Lessee shall have furnished 

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the Management Parties with funds necessary for the discharge thereof prior to incurring such liability. If the Management Parties shall have advanced any funds in payment of a permitted expense in the maintenance and operation of the Hotels, Lessee shall reimburse the Management Parties therefor on demand. Notwithstanding the foregoing, Manager shall pay from its own funds the expenses hereinafter described in Article V.
ARTICLE V 
CONSULTING SERVICES OF MANAGER’S AFFILIATES
Except as hereinafter provided in Section 10.2, after the Management Commencement Date, the normal consulting services of the corporate officers and employees of Manager or Manager’s Affiliates, including its corporate executives for operations, human resources, training, food and beverage, finance and administration and real estate, to be rendered from time to time to Manager in connection with the operations of the Hotels, shall be provided by corporate officers and employees of Manager or Manager’s Affiliates to Manager at Manager’s sole cost and expense and not charged to Lessee hereunder.  In no event shall Manager’s Affiliates (other than Canada Employer) be deemed a party to this Agreement or responsible in any way for Manager’s obligations pursuant to this Agreement by virtue of providing the foregoing services to Manager (or any of the services described in Section 10.2 and Lessee reimbursing Manager for the expenses in connection therewith).
ARTICLE VI 
COMPLIANCE WITH LAWS
Section 6.1.    Compliance by the Management Parties and Lessee After Management Commencement Date.  The Management Parties shall make all reasonable efforts, at expense of Lessee, to assure full compliance with all laws (including privacy laws), rules, regulations, requirements, orders, notices, determinations and ordinances of any governing authority (collectively, “Laws”) relating to the management, leasing, use, operation, repair, supervision and maintenance of the Hotels, including, without limitation, the provincial and local liquor authorities, the Board of Fire Underwriters and the requirements of any insurance companies covering any of the risks against which the Hotels is insured. Unless otherwise directed by Lessee, the Management Parties shall, at Lessee’s expense, promptly remedy any violation of any such governmental regulation which comes or should have come to their attention, which remedy shall be carried out solely at Lessee’s expense (subject to the limitations set forth elsewhere herein) unless caused by an action or omission of the Management Parties not authorized pursuant to this Agreement or unless the Management Parties has failed to fulfill their duty as required in the immediately preceding sentence, in which event all costs shall be paid solely by the Management Parties.
Section 6.2.    Lessee’s Right to Contest or Postpone Compliance.  With respect to a violation of any Laws, Lessee shall have the right to contest any of the foregoing and postpone compliance pending the determination of such contest, if so permitted by law and not detrimental to the operation of the Hotels, but in such event, Lessee shall indemnify and hold harmless the Management Parties from any loss, cost, damage or expense, as a result thereof.

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Section 6.3.    The Management Parties’ Right to Terminate Agreement.  Notwithstanding anything in this Agreement to the contrary, if within 30 days of receiving the Management Parties’ written request (accompanied by a statement of the Management Parties’ intention to elect to cancel this Agreement if Lessee fails to give its approval as provided below) Lessee fails to approve the changes, repairs, alterations, improvements, renewals or replacements to the Hotels which the Management Parties determine in their reasonable judgment are necessary to protect the Hotels, Lessee and/or the Management Parties from innkeeper liability exposure then the Management Parties may terminate this Agreement any time after such 30 day period upon 7 days’ written notice.
ARTICLE VII 
HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT
Section 7.1.    Hotel Account.  (a)  All monies received by the Management Parties in the operation of the Hotels, excluding the Operating Funds furnished by Lessee shall be deposited in a special account or accounts (collectively, the “Hotel Account”), in Lessee’s name (or in one of the Management Parties’ name, as agent of Lessee), in the bank or trust company recommended by the Management Parties and approved by Lessee. Such monies shall not be mingled with the Management Parties’ other funds.  Out of the Hotel Account, the Management Parties shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any kind due to them pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of the Management Parties only, provided such representatives are bonded or otherwise insured, and the Management Parties shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by the bonding or insurance company to Lessee.  The Management Parties may utilize their respective centralized disbursement accounts in their respective names for accounts payable and payroll disbursements, provided that the Management Parties shall only transfer the necessary amount of funds from the Hotel Account to such centralized disbursement accounts required to make such disbursements on behalf of the Hotels.  
(b)    The Management Parties will maintain the Hotel Account on Lessee’s behalf and all funds received from Lessee will be and remain the property of Lessee and will be disbursed by the Management Parties only as set forth in this Agreement. Any and all expenses of the Hotels paid by the Management Parties must pass through and be withdrawn from the Hotel Account. Lessee shall have the right from time to time to direct the Management Parties to change either the depository bank or the depository arrangements and the Management Parties shall implement such changes promptly. Lessee shall have the right to approve and to maintain control of signature cards for the Hotel Account; provided, however, Lessee shall not withdraw funds from such accounts except as provided below.
Section 7.2.    Operating Funds.  From and after the Management Commencement Date, Lessee shall, if and as required, maintain cash in the Hotel Account (“Operating Funds”) sufficient in amount to enable the Management Parties to properly manage and operate the Hotels. 

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Section 7.3.    Reserve Fund.  To the extent Operating Funds exceed the amount described in Section 7.2 and the amounts needed for capital expenditures anticipated pursuant to the Annual Business Plan, the Management Parties shall deposit from such excess, if any, in a reserve fund (“Reserve Fund”) an amount equal to 4% of Gross Operating Revenues or such other percentage of Gross Operating Revenues as Lessee may, from time to time, require (the “FF&E Percentage Contribution”).  The Management Parties shall deduct the FF&E Percentage Contribution, if any, on a monthly basis from Gross Operating Revenues and deposit such amount in the Reserve Fund.  The Reserve Fund shall be used only for additions or replacements to Furniture, Fixtures and Equipment in accordance with the Annual Business Plan. 
Section 7.4.    Fidelity Bonds.  The Management Parties shall obtain a fidelity bond or insurance, in an amount not less than $1,000,000 (or such other amount reasonably required by Lessee consistent with the commercial availability thereof, the size and scope of Lessee ‘s business being handled by the Management Parties hereunder and reasonable business practice), issued by a company reasonably acceptable to Lessee, covering the Management Parties and such of the Management Parties’ on-site employees who may handle or be responsible for monies or property of Lessee and place policies of insurance covering the Hotels as directed by Lessee.
ARTICLE VIII 
BOOKS, RECORDS AND FINANCIAL STATEMENTS
Section 8.1.    Accounting System.  The Management Parties shall keep full and adequate books of account and other records reflecting the results of operation of the Hotels on an accrual basis, all in accordance with GAAP and, as and to the extent applicable to the Hotels, the Uniform System.  The Fiscal Year used by the Management Parties will consist of 12 Accounting Periods of one calendar month each.  The Hotel Information shall be kept at the Hotels and/or Manager’s home office and computer storage systems and shall be available to Lessee and its representatives at all reasonable times for examination, audit, inspection and transcription.  All of the Hotel Information, at all times, shall be the property of Lessee.  The Management Parties shall treat as confidential any Hotel Information in its possession, and shall not disclose to any third party, without the prior written consent of Lessee (which approval and consent may be withheld in Lessee’s sole discretion) any Hotel Information, except as may be necessary to perform its duties and obligations under this Agreement or as may be necessitated by any applicable Laws.  Upon the expiration or earlier termination of this Agreement, all Hotel Information shall be turned over to Lessee to ensure the orderly continuation of the operation of the Hotels, but the books and records shall thereafter be available to the Management Parties at all reasonable times for inspection, audit, examination and transcription. 
Section 8.2.    Financial Statements.  
(a)    The Management Parties shall deliver to Lessee within twenty (20) days after the end of each Accounting Period a profit and loss statement showing the results of the operation of the Hotels for such Accounting Period, the Fiscal Year to date, and the trailing twelve (12) month period, and a statement of gross revenues received from rooms, food and beverage and other sources, guest room occupancy percentage, average room rates, total expenses paid and a cash forecast.  Information relating to other matters pertaining to the management, operation, maintenance, and 

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supervision of the Hotels not covered in such monthly operating reports as Lessee shall reasonably request will be provided to Lessee (provided such information is generally within the scope of Manager’s other obligations and duties hereunder), within 20 days of such request. 
(b)    The Management Parties shall deliver to Lessee within forty-five (45) days after the end of each of the first, second and third calendar quarters, quarterly financial statements in consistent form and presentation to the annual combined balance sheet, income statement and statement of cash flows, exclusive of footnotes, accompanied by a reconciliation to the year-to-date monthly property operations reports and capital expenditures report. 
(c)    The Management Parties shall cooperate with the Independent Auditor so as to allow the Independent Auditor to deliver to Lessee within 90 days after the end of each Fiscal Year a profit and loss statement showing the result of operation of the Hotels during such Fiscal Year, and the net operating income or loss, if any, for such Fiscal Year and a balance sheet for the Hotels as of the close of such Fiscal Year. The Management Parties shall, together with such statement, deliver to Lessee a statement of income and expenses for such Fiscal Year and a statement of balances in the Hotel Account.  Any disputes as to the contents of any such statements or any accounting matter hereunder, shall be determined by the Independent Auditor whose decision shall be final and conclusive on the Management Parties and Lessee. 
Section 8.3.    Periodic Delivery of Data in Electronic Form.  Upon request by Lessee (but not more than twice in any calendar year), the Management Parties shall deliver to Lessee, within a reasonable period of time after such request, a copy of such Hotel Information as may be requested by Lessee (or if Lessee has previously made a request under this Section 8.3 for such Hotel Information, a copy of all such Hotel Information collected since such previous request) collected or maintained by the Management Parties, in such electronic format as Lessee may reasonably require. 
ARTICLE IX 
ANNUAL BUSINESS PLAN
Section 9.1.    Preparation of Annual Business Plan.  (a)  The Management Parties shall operate the Hotels pursuant to the annual business plan previously approved by Lessee for the remainder of calendar year 2013.  Thereafter, no later than December 15 of each Fiscal Year, the Management Parties shall submit to Lessee an annual business plan for the succeeding Fiscal Year.  Each annual business plan proposed by the Management Parties and approved by Lessee in accordance with this Article IX (an “Annual Business Plan”) shall include: an operating budget showing estimated Gross Operating Revenues, department profits, operating expenses, and net operating income or loss for the forthcoming Fiscal Year for the Hotels; a marketing plan (for Fiscal Year 2014 and each Fiscal Year thereafter); a cash flow forecast; projected average daily room rates; the budget for replacing Furniture, Fixtures and Equipment and for making capital improvements; and the basis of allocation of the Group Services, all in reasonable detail and, where appropriate, with the basis for all assumptions expressly set forth, and otherwise complying with the applicable requirements set forth in the Operating Lease.

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(b)    Within 5 business days after the proposed Annual Business Plan is submitted to Lessee, Lessee shall approve such proposed Annual Business Plan or notify the Management Parties of any revisions therein which Lessee deems reasonably necessary.  If Lessee approves the proposed Annual Business Plan or if Lessee requires revisions to the proposed Annual Business Plan, and the Management Parties do not make reasonable objections to such proposed revisions within 5 business days after receipt thereof, then such proposed Annual Business Plan, together with the proposed revisions required by Lessee, shall be deemed thereafter to constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof.  In the event the Management Parties timely make any reasonable objection to any proposed revision by Lessee to the proposed Annual Business Plan, Lessee and the Management Parties shall cooperate with each other to resolve any questions with respect to such revisions to the proposed Annual Business Plan and shall use their best efforts to agree upon an approved Annual Business Plan for the Hotels for the Fiscal Year in question prior December 31. 
Section 9.2.    Annual Business Plan Disputes.  In the event Lessee and the Management Parties are unable to agree upon an Annual Business Plan, or as to any revisions requested by Lessee to the proposed Annual Business Plan, for any Fiscal Year by December 31, Lessee shall prevail and the proposed Annual Business Plan shall be deemed approved as so revised by Lessee and shall thereafter constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof.  No action shall be taken and no expenditures shall be made under any proposed Annual Business Plan unless and until the proposed Annual Business Plan is approved by Lessee. 
Section 9.3.    Deviations from Annual Business Plan.  The Management Parties shall diligently pursue all feasible measures to enable the Hotels to adhere to the Annual Business Plan.  To the extent ascertainable in advance, the Management Parties shall notify Lessee of any projected material variance from the Annual Business Plan.  Notwithstanding anything herein to the contrary, the Management Parties is not warranting or guaranteeing in any respect that the actual operating results of the Hotels during the period covered by the Annual Business Plan will not materially vary from the projections described in the Annual Business Plan.
ARTICLE X 
MANAGEMENT PARTIES’ FEES AND REIMBURSEMENTS
Section 10.1.    Management Fee.  During each Fiscal Year after the Management Commencement Date (and for a fraction of any partial Fiscal Year) during the term hereof, in consideration of the services Manager is to render under this Agreement, Manager will be paid a fee in U.S. Dollars (the “Manager Fee”) equal to the sum the of (a) 2.50% of all Gross Operating Revenues converted into U.S. Dollars using the average daily exchange rate published by the www.OANDA.com website for the period beginning on the first day of the Fiscal Year (or, in the case of the first Fiscal Year, beginning on the Management Commencement Date and ending on the last day of the month for which such Manager Fee is due), less an amount payable in Canadian Dollars directly to Canada Employer attributable to all costs and expenses actually incurred by Canada Employer in connection with the employment by Canada Employer of the Regional Employees in accordance with Section 3.1(b) (the “Employer Fee”, the Employer Fee and Manager 

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Fee, collectively, the “Management Fee”) up to $12,000,000 for such Fiscal Year plus (b) 0.5% of all Gross Operating Revenues converted into U.S. Dollars using the average daily exchange rate as published by the www.OANDA.com website for the period beginning on the first day of the Fiscal Year (or, in the case of the first Fiscal Year, beginning on the Management Commencement Date and ending on the last day of the month for which such Management Fee is due), less the Employer Fee, over $12,000,000 for such Fiscal Year.  The Management Fee will be paid in installments by deducting such fee from Gross Operating Revenues immediately following each Accounting Period at the rate of (i) 2.50% of Gross Operating Revenues for that Accounting Period until Gross Operating Revenues for the applicable Fiscal Year are equal to $12,000,000 and (ii) 0.5% of Gross Operating Revenues for that Accounting Period thereafter.  At the end of each Fiscal Year following the annual audit, an adjustment will be made, if necessary, and all sums due either the Management Parties or Lessee shall be paid promptly.
Section 10.2.    Reimbursement of Certain Expenses.  Notwithstanding the provisions of Article V (but subject to the Annual Business Plan), Lessee shall reimburse the applicable Management Party for all of the following property-level costs and expenses incurred in managing and operating the Hotels: (i) the salaries or wages of any officers, directors or employees of Canada Employer or any of its Affiliates who shall be regularly or temporarily employed or assigned on a full-time basis at the Hotels for the period of such employment or assignment; (ii) personnel providing in-house legal services to the Management Parties or any of their Affiliates in connection with matters involving the Hotels, which services shall be charged at rates equal to or less than the Management Parties’ or such Affiliate’s costs associated with such services (provided, that to the extent such services are provided to Lessee and other lessees, owners or other clients of the Management Parties and/or their Affiliates on a group rather than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan); (iii) the out-of-pocket expenses of employees of the Management Parties or any of their Affiliates incurred in connection with the management and operation of the Hotels (provided, that to the extent such services are provided to Lessee and other lessees, owners or other clients of the Management Parties and/or their Affiliates on a group rather than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan); and (iv) certain other services (including general and administrative) (collectively, the “Group Services”) best provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of which Group Services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner described in the Annual Business Plan, including, without limitation, the following: (A) advertising, sales and marketing, (B) payroll processed through Automatic Data Processing Inc. (or other companies providing similar services), and MIS support services; (C) accounting services; (D) revenue management; (E) facilities and purchasing services; (F) information technology services; (G) reservation services; (H) travel agent commissions; and (I) Centralized Services.  All costs and expenses incurred by Manager or Canada Employer in Canadian Dollars, including, without limitation, costs and expenses of Canada Employer in connection with its employment of the Regional Employees in accordance with Section 3.1(b), shall be reimbursed in Canadian Dollars.

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Section 10.3.    Technical Services.  Service fees for technical services for the Hotels shall be paid to the Management Parties or their Affiliates if Lessee requests such services of the Management Parties, or any other services beyond the scope of services to be provided pursuant to this Agreement.  The amount of fees shall be agreed to by Lessee and the Management Parties prior to commencing such services.  Technical services include renovation coordination, design review, construction management and related services.  
Section 10.4.    Intentionally Omitted.
Section 10.5.    Other Hotel Revenue and Expenses.  Lessee acknowledges that the Management Parties and their Affiliates have the right to, and currently do, manage, operate and otherwise provide services to hotel and lodging facilities and enterprises other than the Hotels.  Each of Lessee and the Management Parties acknowledges and agrees that any and all income derived from, and expenses incurred by, the Management Parties or any of their Affiliates, directly or indirectly, from the management and operation of, and provision of services to, such other hotel and lodging facilities and enterprises shall be, as between Lessee (on the one hand), and the Management Parties and their Affiliates (on the other hand), solely for the account of the Management Parties and/or their Affiliates and shall in no event be borne by or credited to Lessee.
ARTICLE XI 
INSURANCE
Section 11.1.    Insurance Coverage.  Lessee, or the Management Parties at the direction of Lessee, shall provide and maintain, at Lessee’s cost and expense and in Lessee’s and Owner’s name, insurance sufficient to furnish to Lessee, Owner and the Management Parties reasonable and adequate protection in the management and operation of the Hotels. All insurance shall be in the name of Lessee, Owner and the Management Parties as the insured and shall contain riders and endorsements adequately protecting the interests of Lessee, the Management Parties and Owner as it may appear including, without limitation, provisions for at least 20 days’ notice to the Management Parties, Lessee and Owner of cancellation or of any material change therein. Prior to the Management Commencement Date and the commencement of each Fiscal Year thereafter, the Management Parties shall furnish Lessee and each Owner with certificates evidencing the insurance coverages required pursuant to this Agreement and with evidence of the payment of premiums therefor.
Section 11.2.    Waiver of Subrogation; Lessee Assumes Risk of Adequacy.  Lessee shall have all policies of insurance provide that the insurance company will have no right of subrogation against any party hereto, their agents or employees. Lessee assumes all risks in connection with the adequacy of any insurance or self-insurance program.
ARTICLE XII 
TERM OF AGREEMENT AND TERMINATION
Section 12.1.    Term.  This Agreement shall be for a period commencing on Management Commencement Date and ending on December 31, 2025 (the “Expiration Date”), unless sooner terminated as hereinafter provided.

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Section 12.2.    Early Termination.  This Agreement can be terminated by either Lessee or Manager (on behalf of the Management Parties) at its option for any or no reason.  If either Lessee or Manager exercises its right to terminate this Agreement prior to the Expiration Date, the rights and obligations of the parties will cease (other than those that expressly survive the termination of this Agreement) except as to fees and reimbursements due the Management Parties or their Affiliates or Lessee pursuant to this Agreement, including without limitation, Article X, and claims for non-performance by Lessee against the Management Parties and other claims of liabilities of any party which accrued or arose before termination. 
Section 12.3.    Termination Procedure.  
(a)    If a termination occurs pursuant to Section 12.2, the party electing to terminate shall give the other party at least 60 days’ prior written notice of such election, specifying the date of such termination.  On the date specified in such notice, the Management Parties shall cease all activities at the Hotels and shall have no further obligations under this Agreement except those obligations which specifically survive any termination hereof.
(b)    If one or more (but less than substantially all) of the Hotels are (i) sold, conveyed or otherwise transferred to another party, (ii) damaged or destroyed by casualty and Owner has elected not to restore, or (iii) taken in a condemnation proceeding, then this Agreement shall automatically terminate with respect to such Hotel(s) from the date of such sale, casualty or condemnation but shall continue with respect to the other Hotels in accordance with the terms of this Agreement.
(c)    Prior to the date the Management Parties cease activities at the Hotels, the Management Parties shall be paid any and all fees earned or expenses due to them pursuant to this Agreement, and as soon thereafter as is reasonably practicable, pay any fees or expenses upon the final accounting in Section 12.4(a), and the Management Parties shall cooperate with Lessee (and Owner, if applicable) in effectuating an orderly transition to any new manager of the Hotels (or to any new owner, or to Lessee or Owner, or to any of their respective designee’s, as the case may be) so as to avoid any interruption in the rendering of services at the Hotels and take such other actions as are required under Section 12.4. 
Section 12.4.    Obligations Following Termination.  Upon the expiration or earlier termination of this Agreement for any reason, the Management Parties’ authority to act for the Lessee or the Owners shall immediately cease and the Management Parties shall do, and execute and/or deliver to Lessee, the following with respect to the Hotels, all of which shall be done, and executed and/or delivered to or as directed by Lessee, promptly upon the expiration or earlier termination hereof or as soon thereafter as is reasonably practicable. 
(a)    A final accounting, reflecting receipts and disbursements in connection with the operations of the Hotels during the current Fiscal Year through the date of termination.
(b)    Any balance of monies of Lessee, including, without limitation, any undisbursed funds in the Hotel Account.

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(c)    All Hotel Information (including all Hotel Information stored in any electronic format), service contracts, reservations, leases, receipts for deposits, unpaid bills and other papers or documents which pertain to the Hotels, including, but not limited to, all original documents.  In addition, the Management Parties shall assist Lessee (or its designee) in migrating and porting any Hotel Information stored in electronic format from the system or systems used by the Management Parties to any new system or systems designated employed by Lessee or its designee, including, to the extent necessary, parsing and decoding the existing content and format of such electronic data to facilitate such transfer, all such reasonable out-of-pocket costs to be reimbursed to the Management Parties. 
(d)    All documents and instruments necessary to transfer to Lessee or its designee or nominee, to the extent transferable, all Operating Licenses held by the Management Parties necessary to operate the Hotels. 
(e)    The Management Parties will assign to Lessee or its nominee, and Lessee and its nominee, if any, will assume, all space leases and concession agreements in effect with respect to the Hotels then in either of the Management Parties’, rather than Lessee’s, name, except for blanket concessions affecting other hotels or conference centers operated by the Management Parties or their Affiliates. 
(f)    The Management Parties will take such further actions as Lessee may reasonably require to assure an orderly transition of the Hotels’ operations, including, without limitation, providing inventories of Furniture, Fixtures and Equipment, Operating Equipment and Operating Supplies. 
(g)    Any and all Furniture, Fixtures and Equipment (along with then existing warranties, operating instructions, and service contracts), Operating Equipment, Operating Supplies, keys, locks and safe combinations, reservation lists, ledgers, bank statements for the Hotel Account, budgets, accounting books and records, insurance policies, bonds and other documents, memoranda, schedules, lists, contracts, agreements, leases, licenses, correspondence, and other items required for the operation of the Hotels. 
(h)    The Management Parties shall remove all of the Management Parties’ personal property from the Hotel premises.
(i)    Without limiting the provisions of clause (d) above, the Management Parties shall cooperate with Lessee to transfer all liquor licenses to, or to obtain new liquor licenses, in the name of Lessee or Lessee’s designee.  The Management Parties shall make commercially reasonable efforts to provide interim liquor licenses for up to one hundred eighty (180) days to Lessee or Lessee’s designee, provided that the Management Parties may condition such provision on their receipt of market standard fees and a commercially reasonable indemnity from such party with respect to such claims as may arise in connection with the sale of liquor from Hotels. 
(j)    Without limiting any of the foregoing, the Management Parties shall, for a period of ninety (90) days after such expiration or earlier termination of this Agreement, make itself available at all reasonable times to consult with and advise Lessee or Lessee’s designee regarding 

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the management, operation and maintenance of the Hotels; in such event, Lessee, Owner or the purchaser of the Hotels shall reimburse the Management Parties for all of the Management Parties’ reasonable out-of-pocket costs and expenses incurred during such 90-day period in connection with providing such consulting and advisory services, including, without limitation, the appropriately allocable portion of the Management Parties’ payroll expenses for personnel involved in assisting with such transition. 
Section 12.5.    Intentionally Omitted.  
Section 12.6.    Survival.  The provisions of Sections 12.3 and 12.4 shall survive the expiration or earlier termination of this Agreement.
ARTICLE XIII 
REPRESENTATIONS AND COVENANTS
Section 13.1.    Lessee’s Representations.  Lessee covenants, represents and warrants as follows: (a) as of the date hereof, Lessee will be the tenant under the Operating Lease with respect to the Hotels and has full power and authority to enter into this Agreement; (b) throughout the term of this Agreement and except as provided in the Operating Lease, Lessee will pay, keep, observe and perform all payments, terms, covenants, conditions and obligations under any lease or other concession and any real estate taxes or assessments covering or affecting the Hotels; (c) the execution of this Agreement is permitted by the Articles of Incorporation, By-Laws or other organizational documents of Lessee and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Lessee; (d) there is no claim, litigation, proceeding or governmental investigation pending, or as far as is known to Lessee, threatened, against or relating to Lessee, the properties or business of Lessee or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and adversely affect the ability of Lessee to enter into this Agreement or to carry out its obligations under this Agreement; and (e) neither the consummation of the actions contemplated by this Agreement on the part of Lessee to be performed, or the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which Lessee is a party or by which it is bound.
Section 13.2.    The Management Parties’ Representations.  Each of the Management Parties, as applicable, covenants, represents and warrants as follows: (a) the execution of this Agreement is permitted by the limited liability company agreement or other organizational documents of the Management Parties and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of the Management Parties enforceable in accordance with its terms; (b) there is no claim, litigation, proceedings or governmental investigation pending, or as far as is known to the Management Parties, threatened, against or relating to the Management Parties, the properties or business of the Management Parties or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and adversely affect the ability of the Management Parties to enter into this Agreement; (c) neither the consummation of the actions contemplated by this Agreement on the part of the Management Parties to be performed, nor the fulfillment of the terms, conditions and provisions of 

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this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which either of the Management Parties is a party or by which it is bound; (d) this Agreement shall be modified in the event that it is reasonably determined by Owner under the Operating Lease that the terms of this Agreement cause the Rent (as defined in the Operating Lease) to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code; provided however, no such modification shall affect the amount of the Management Fee or the practical realization of the rights and benefits of the Management Parties hereunder and (e) Canada Employer is, and has at all times been treated as, a disregarded entity for U.S. federal income tax purposes.
Section 13.3.    The Management Parties’ Covenants.  From the Management Commencement Date until the Expiration Date or earlier termination of this Agreement, the Management Parties covenant that they shall satisfy the following requirements: (a) the Management Parties shall not permit wagering activities to be conducted at or in connection with the Hotels 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 the Hotels; and (b) the Management Parties shall not sublet the Hotels or enter into any similar arrangement 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 (i) the net income or profits derived by the business activities of the sublessee or (ii) 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. 
ARTICLE XIV 
ASSIGNMENT
No party hereto shall assign or transfer or permit the assignment of transfer of this Agreement without the prior written consent of the other parties.  In the event of consent by a party to an assignment of this Agreement by the other parties, no further assignment shall be made without the express consent in writing of such parties, unless such assignment may otherwise be made without such consent pursuant to the terms of this Agreement.  An assignment by either Lessee or any of the Management Parties of its interest in this Agreement shall not relieve Lessee or either of the Management Parties, as the case may be, from their respective obligations hereunder unless the assignee accepts full responsibility for performance of the same. 
ARTICLE XV 
CONFIDENTIALITY
The matters set forth in this Agreement are strictly confidential and Lessee and the Management Parties will make every reasonable effort to ensure that the information is not disclosed to any person or entities (including the press) other than those persons or entities needed to carry out the provisions of this Agreement without first consulting with and obtaining the consent of the other party, which consent shall not be unreasonably withheld.  The provisions of this Article XV shall survive the expiration or earlier termination of this Agreement. 

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ARTICLE XVI 
INDEMNIFICATION AND LIMITATION OF LIABILITY
Section 16.1.    Lessee’s Indemnification.  Lessee shall hold harmless, indemnify and defend the Management Parties and their Affiliates and their respective agents, employees, officers, directors and shareholders from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial and appellate proceedings, accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from the Management Parties’ activities performed pursuant to this Agreement, any franchise agreement, any past or future building code or life/safety code violations, and injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the Hotels or elsewhere, and any requirement or award relating to course of employment, working conditions, wages and/or compensation of employees or former employees at the Hotels, unless such injury or damage is caused by the gross negligence or willful misconduct or fraud on the part of the Management Parties, their agents, employees, representatives or independent contractors or by any breach of the Management Parties’ obligations under this Agreement. Lessee ‘s foregoing indemnification obligation to indemnify the Management Parties and their Affiliates shall extend to any claims between Lessee and the Management Parties or their Affiliates arising out of this Agreement or otherwise.  Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 
Section 16.2.    The Management Parties’ Indemnification.  the Management Parties shall hold harmless, indemnify and defend Lessee and its Affiliates, and their respective agents, employees, officers, directors and shareholders, from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial and appellate proceedings accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from the Management Parties’ gross negligence, willful misconduct or fraud or from the Management Parties’ breach of their obligations under this Agreement. The Management Parties’ foregoing indemnification obligation to indemnify Lessee and its Affiliates shall extend to any claims between the Management Parties and Lessee or its Affiliates arising out of this Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 
Section 16.3.    Indemnification Procedure.  Upon the occurrence of an event giving rise to indemnification, the party seeking indemnification shall notify the other party hereto and provide the other party hereto with copies of any documents reflecting the claim, damage, loss or expense. The party seeking indemnification is entitled to engage such attorneys and other persons to defend against the claim, damage, loss or expense, as it may choose. The party providing indemnification shall pay the reasonable charges and expenses of such attorneys and other persons on a current basis within 20 days of submission of invoices or bills. Except as otherwise provided in the Operating Lease, if any claim, lawsuit or action (administrative or judicial) is maintained against the Management Parties, Lessee or the Hotels due to allegations or actions arising prior to the Management Commencement Date and the Management Parties had no involvement with the Hotels prior to such date, Lessee shall bear full and complete responsibility for the defense of Lessee and the Management Parties, specifically including all legal fees and necessary and attendant 

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expenses for the vigorous defense and representation of the interests of the Management Parties (for pre-trial, trial and appellate proceedings) and Lessee. Lessee shall support and pay for all legal fees and representations necessary to remove the Management Parties from any claim, action (administrative or judicial), or lawsuit covered by the immediately preceding sentence. 
Section 16.4.    Good Faith Judgment.  To the extent that any provision of this Agreement leaves something to the discretion of the Management Parties, the Management Parties will not be liable for any action taken by the Management Parties in the exercise of their discretion as long as in exercising such discretion, the Management Parties were using their good faith judgment.
Section 16.5.    Survival.  The provisions of this Article XVI shall survive the expiration or earlier termination of this Agreement. 
ARTICLE XVII 
MISCELLANEOUS
Section 17.1.    Severability.  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 the Management Parties or Lessee or constitute a substantial deviation from the general intent and purpose of said parties as reflected in this Agreement. The failure of a party to insist upon a 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 a party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed by such party.
Section 17.2.    No Partnership.  The relationship of Lessee and the Management Parties shall be that of principal and independent contractors.  Nothing contained in this Agreement shall be construed to create a partnership or joint venture between Lessee and the Management Parties or their respective Affiliates or successors in interest.  In the performance of its duties in the management and operation of the Hotels, the Management Parties shall act solely as independent contractors.  It is expressly covenanted that this Agreement is no more than an agreement for the rendering of services by the Management Parties on behalf of Lessee in the operation and management of the Hotels.  The Management Parties shall not be Lessee’s fiduciary, nor shall the Management Parties owe Lessee a fiduciary duty. 
Section 17.3.    Meetings.  Lessee and the Management Parties shall meet with each other from time to time so that the Management Parties and Lessee may discuss the status of operations and future plans, recommendations and projections. The meetings will be held at mutually convenient dates and locations.
Section 17.4.    Consents.  Except as herein otherwise provided, whenever in this Agreement the consent or approval of Lessee or the Management Parties is required, such consent or approval shall not be unreasonably withheld or delayed. Such consent or approval shall be in 

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writing only and shall be duly executed by an authorized officer or agent of the party granting such consent or approval.
Section 17.5.    Applicable Law.  This Agreement shall be construed under, and governed in accordance with, the laws of the State of New York.
Section 17.6.    Successors Bound.  This Agreement shall be binding upon and inure to the benefit of Lessee, its successors and assigns, and shall be binding and inure to the benefit of the Management Parties and their permitted assigns.
Section 17.7.    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.
Section 17.8.    Incorporation of Recitals.  The recitals set forth in the preamble of this Agreement are hereby incorporated into this Agreement as if fully set forth herein.
Section 17.9.    Notices.  Notices, statements and other communications to be given under the terms of this Agreement shall be in writing and (a) delivered by hand against receipt, (b) sent by certified or registered mail or by Federal Express or other similar overnight mail service, return receipt requested or (c) sent by telecopier (with answer back acknowledged), (or at such other address as from time to time designated by the party receiving the notice):
		
	If to Lessee:
	11525 N. Community House Road, Suite 100 
Charlotte, NC 28277 
Attention: President 
Attention:  President  
Facsimile No.:  (980) 335-3089 
Attention:  General Counsel  
Facsimile No.:  (980) 335-3089

If to the Management Parties
		
	:
	11525 N. Community House Road, Suite 100  
Charlotte, NC 28277  
Attention:  President  
Facsimile No.:  (980) 335-3089 
Attention:  General Counsel  
Facsimile No.:  (980) 335-3089

Section 17.10.    Entire Agreement; Amendments.  This Agreement, together with other writings signed by the parties hereto expressly stated to be supplementing this Agreement and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof.  This Agreement may be amended, modified or changed only by a writing signed by the parties hereto. 

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Section 17.11.    The Management Parties’ Authority Limited.  The Management Parties’ authority shall be derived wholly from this Agreement, and the Management Parties have no authority to act for or represent Lessee except as herein specified.
Section 17.12.    Exclusive Compensation.  The payments to be made to the Management Parties hereunder shall be in lieu of all other or further compensation or commissions of any nature whatsoever for the services described herein and this Agreement shall be considered as a special agreement between the parties hereto covering the appointment and compensation of the Management Parties to the exclusion of any other method of compensation unless otherwise agreed to in writing.
Section 17.13.    Property Rights.  This Agreement and the rights created hereunder are personal to Lessee and the Management Parties and shall not create in favor of the Management Parties any property rights in the Hotels.
Section 17.14.    Attorneys’ Fees.  In the event of any litigation arising out of this Agreement, the prevailing party shall be entitled to reasonable costs and expenses, including without limitation, attorneys’ fees.
Section 17.15.    Complimentary/Discount Policies.  The Management Parties will be permitted to provide customary gratuitous accommodations, services and amenities to such employees and representatives of the Management Parties visiting the Hotels in accordance with the Management Parties’ normal policies, provided that such employees shall in no way displace the Hotels’ third-party business.
Section 17.16.    No Third Party Beneficiary.  Nothing herein contained shall be understood or construed to create or grant any third party benefits, rights or property interests unless the person claiming such rights is expressly identified herein and the rights claimed are expressly set forth herein.  Notwithstanding the foregoing, it is acknowledged and agreed that the Licensor is an intended third-party beneficiary of Section 3.12. 
Section 17.17.    REOC.  The parties acknowledge that Lessee is a direct or indirect controlled subsidiary of an entity, Extended Stay America, Inc., a Delaware corporation (“Parent”), that is intended to qualify as a “real estate operating company” (a “REOC”) within the meaning of the U.S. Department of Labor plan assets regulation (Section 2510.3-101, Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations) and that it is intended that Lessee will have the rights, pursuant to this Agreement, as would be reasonably necessary to result in the qualification of Parent as a REOC. Without limiting the generality of the foregoing, notwithstanding any other provision of this Agreement, without prejudice to the other rights provided to Lessee under this Agreement, the Management Parties agree to: (i) permit Lessee and Parent to visit and inspect the Hotels and inspect and copy the books and records of the Management Parties, at such times as Lessee shall reasonably request; (ii) periodically (at least quarterly) provide Lessee and Parent with information and reports regarding the Management Parties’ operation and management of the Hotels and the performance of its duties under this Agreement and with respect to renovations, alterations, general maintenance, repairs and development activities that the Management Parties have engaged in or intends to engage in with respect to the Hotels and their surroundings; (iii) periodically (at 

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least quarterly) consult with Lessee and Parent in advance with respect to any significant leasing, management and development matters, as appropriate, including, without limitation, with respect to matters relating to renovations, alterations, general maintenance, repairs and development activities with respect to the Hotels and their surroundings and the management, participatory and development rights retained by Lessee under this Agreement; and (iv) to provide Lessee and Parent with such other rights as may reasonably be determined by Lessee to be necessary to enable Parent to qualify as a REOC, provided the rights described in clauses (i)-(iv) above do not materially adversely affect (X) the Management Parties’ ability to perform their duties under this Agreement or the economic benefits enjoyed by the Management Parties under this Agreement or (Y) the status of ESH Hospitality as a real estate investment trust under the Code. The Management Parties agree to consider, in good faith, the recommendations of Lessee in connection with the matters on which it is consulted as described above.
Section 17.18.    Amendment and Restatement.  The parties agree that the Original Management Agreement is hereby amended and restated.  The parties agree that (i) the terms and conditions of the Original Management Agreement shall be amended as set forth herein and, as so amended, shall be restated in their entirety, but shall be amended only with respect to the rights, title, estates, interests, liabilities, duties, covenants, obligations and agreements among the parties accruing from and after the date hereof.  The execution, delivery and effectiveness of this Agreement shall not constitute a waiver of any covenant, agreement or obligation under the Original Management Agreement, except to the extent that any such covenant, agreement or obligation is no longer set forth herein or is modified hereby. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written. 
LESSEE: 

ESA CANADA OPERATING LESSEE ULC,
a British Columbia unlimited liability corporation

		
	By:
	/s/ Jonathan S. Halkyard         
Name:  Jonathan S. Halkyard 
Title:    Vice President and Treasurer

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

MANAGER: 

ESA MANAGEMENT, LLC,
a Delaware limited liability company 

		
	By:
	/s/ Jonathan S. Halkyard         
Name:  Jonathan S. Halkyard 
Title:    Chief Financial Officer

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

CANADA EMPLOYER: 

HVM CANADA HOTEL MANAGEMENT ULC,
an Alberta unlimited liability corporation

By:    ESA MANAGEMENT, LLC,
a Delaware limited liability company 

		
	By:
	/s/ Jonathan S. Halkyard         
Name:  Jonathan S. Halkyard 
Title:    Chief Financial Officer

SCHEDULE A

HOTELS

(see attached) 

	
			
	Site 
#
	Address
	Owner

	1250
	141 Cooper Street, Ottawa, ON
	ESA Canada Administrator LLC

	1251
	3600 Steeles Avenue West, Vaughan, ON
	ESA Canada Administrator LLC

	1252
	222 LeMarchant Road, St. John’s, NF
	ESA Canada Administrator LLC

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