Document:

ex101-121814.htm

                                                       Exhibit 10.1

 

This Sales Contract ("Contract") is effective as of the 1st day of January, 2015, by and between

Kuraray America, Inc.,

The Applied Bank Center

2200 Concord Pike

Wilmington, DE  19803

(hereinafter known as “Kuraray” or “Seller”)

and

PGT Industries, Inc.

1070 Technology Drive

Nokomis, FL 34275

(hereinafter known as “Buyer")

Kuraray and PGT Industries, Inc. are hereinafter collectively referred to as the “Parties” and individually as a “Party.”  Intending to be legally bound, Buyer agrees to purchase from Kuraray and Kuraray agrees to sell to Buyer pursuant to the following conditions:

1. PRODUCTS/QUANTITY.  Kuraray shall sell and Buyer shall purchase Butacite® polyvinyl butyral interlayer and SentryGlas® ionoplast interlayer (“Product(s)”).  Buyer agrees throughout the term of this Contract that it will purchase one hundred percent (100%) of its laminated glass interlayer requirements for PGT Branded Products from Kuraray.

2. TERM OF CONTRACT.  This Contract shall be effective from January 1, 2015 to December 31, 2016.

3. PRICE.  Buyer shall pay Kuraray the prices listed in Attachment B for the Products it purchases from Kuraray for all of calendar year 2015. The prices stated in Attachment B may be changed by Kuraray only in accordance with the price increase provision in Attachment B.  Such changes shall be applicable to all material shipped hereunder on and after the date they become effective, unless subsequently again revised by Seller as provided herein.  In the event Buyer desires to terminate this Contract early as a result of any price increase, Buyer shall have the option to terminate within thirty (30) days after the price increase announcement.  If Buyer elects to terminate, Buyer will provide Seller thirty (30) days prior written notice of its intent to terminate upon receiving the price increase notification.  Notwithstanding termination, Buyer will be obligated to purchase any inventory, Product in transit, or Product made specifically for Buyer.

4. DELIVERY TERMS. Delivery will be made within the 48 contiguous United States and Canada.  Transportation will be by method, route and carrier selected by Kuraray; Buyer to bear the excess cost of any alternate method, route, or carrier selected by Buyer. Buyer will be provided a freight credit or discount for any material backhauled from Kuraray on Buyer’s equipment.

5. USER PROTECTION.  Buyer acknowledges that it has received and is familiar with Kuraray’s labeling and literature concerning the Products and will communicate such information to its employees who handle, use, or process such Products.

6. ENTIRE AGREEMENT.  This Contract along  with Kuraray’s  Terms and Conditions for Sale constitute the

entire contract between the Parties regarding the subject matter described herein.  The Terms and Conditions for Sale are attached hereto and marked as Attachment A.  There are no other agreements, warranties, terms or conditions, expressed or implied, between the Parties.

	
7.  

	
ASSIGNMENT/AMENDMENT/WAIVER.  This Contract is  neither  assignable nor transferable, in whole or

in part, except by in writing signed by both Parties.  This Contract may not be amended except by in writing signed by both Parties.  No waiver of any provision of this Contract by either Party shall be enforceable against that Party unless it is in writing and signed by both Parties.

	
8.  

	
NOTICES.  All notices required  hereunder shall be sent by United  States Postal or a recognized carrier to

to the Party to be notified at the addresses specified above.

9.  HARDSHIP.  The Parties agree that it is not their intention that the effect or consequences of entering into this Contract should be to cause hardship but, despite the Parties’ best intent and as a result of changes in economic or market conditions, such hardship may be caused to either Party in complying with the terms of this Contract at the negotiated prices.  If such hardship arises, either Party may give notice in writing that it wishes to review the provisions of this Contract in light of such changed economic or market conditions.  The Parties agree that within thirty (30) days of the giving of such notice by either Party, the Parties shall negotiate in good faith modifications to this Contract to relieve such hardship in a manner equitable to both Parties.  If, within forty-five (45) days after giving of such notice, the Parties are unable to agree upon modification to this Contract, either Party may refer the dispute to an upper management representative from both Parties.  If thirty (30) days after the referral date, the Parties are still unable to resolve the dispute, the dispute shall be referred to arbitration and settled by binding arbitration in accordance with the rules of the American Arbitration Association.

10. TERMS  AND   CONDITIONS   OF  SALE.  All  sales  and  purchases  under  this  Contract  are  subject to

Kuraray’s Terms and Conditions of Sale (attached hereto as Attachment A) except to the extent inconsistent with the terms of this Contract.

11. GOVERNING LAW.  This Contract shall be governed by the laws of the State of Delaware.

12. CONFIDENTIALITY.  Any knowledge or information disclosed between Buyer and Kuraray which relates in

any way to the Products and services of this Contract, the prices contained within the Contract,  or the fact of this Contract, unless otherwise agreed to in writing, or required by a governmental agency, shall be deemed proprietary and confidential and shall not be disclosed by either Party to any third party.  Both Parties shall keep confidential any technical, process, or economic information derived from the other in connection with this Contract and shall not divulge such information, directly or indirectly, for the benefit of any Party unless previously agreed to in writing by the other Party.

PGT INDUSTRIES, INC.                                                                                                   KURARAY AMERICA, INC

By: /s/ Brad Voss                                                                                          By: /s/ Stephen L. Cox                                                      

By: Brad Voss                               By: Stephen L. Cox 

Title:  Director - Strategic Purchasing                                     Title: Vice President - Glass Laminating Solutions / Vinyls

Date: ___________________________________                              Date: ___________________________________Exhibit 10.52

 Exhibit 10.52 

MASTER AGREEMENT 
 THIS
MASTER AGREEMENT (“Agreement”) is made this 15th day of December, 2014 by and between SOTHERLY HOTELS LP, a Delaware limited partnership (“Owner”); SOTHERLY HOTELS INC., a Maryland corporation and general partner of
the Owner (the “REIT”) (the Owner and REIT are hereinafter referred to as the “Company”); MHI HOSPITALITY TRS, LLC, a Delaware limited liability company (“Lessee”) and MHI HOTELS SERVICES LLC, a Virginia
limited liability company (“Manager”). 
 RECITALS 

A. On December 21, 2004, Owner, REIT and Manager entered into a Strategic Alliance Agreement (the “SA Agreement”),
wherein in connection with the REIT’s initial public offering, the Company agreed to cause its affiliate, the Lessee, to engage the Manager as its exclusive manager of hotels owned by the Company under one Master Management Agreement (the
“MMA”). 
 B. On January 12, 2009 Lessee and Manager entered into a Hotel Management Agreement with respect to a hotel
located in Tampa, Florida and on November 13, 2013 a subsidiary of Lessee assumed a management agreement relating to a hotel in Houston, Texas managed by Manager and acquired as of such date by a subsidiary of Owner and on March 3, 2014 a
subsidiary of Lessee entered into a management agreement with Manager with respect to a hotel in Atlanta, Georgia (collectively referred to as the “Single Facility Management Agreements” and individually a “Single Facility
Management Agreement”). 
 C. As of the date hereof, the hotels managed for the Lessee and its subsidiaries by Manager are listed
on Exhibit A hereto (the “Current Hotels”). 
 D. As of the date hereof, the parties desire to: (i) terminate the SA
Agreement and enter into this Agreement in its place; (ii) extend the term of the MMA until December 31, 2014 and provide that the MMA and the Single Facility Management Agreements will terminate as of such date and coincident with such
termination new management agreements for each of the Current Hotels will come into effect based on the form attached hereto as Exhibit B (the “Form Management Agreement”) as modified to reflect the hotel specific information set
forth in Exhibit C attached hereto (the “Hotel Specific Information”); and (iii) establish the base and incentive management fees to be included in each individual management agreement for each of the Current Hotels and for
Future Hotels as reflected in the schedule attached hereto as Exhibit D. 
 NOW, THEREFORE, in consideration of Ten ($10.00) and
other good consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, Owner, REIT, Lessee and Manager hereby agree as follows: 

1. Termination of SA Agreement. The parties hereby terminate the SA Agreement as of the date hereof. Owner, REIT and Lessee on the one
hand hereby release Manager and its officers, directors, employees and affiliates from any and all liability known or unknown under the SA Agreement. Manager hereby releases Owner and REIT and their officers, directors, employees and affiliates from
any and all liability known or unknown under the SA Agreement. 

 2. Term of MMA and Single Facility Management Agreements. Lessee and Manager hereby agree
that the term of the MMA shall be extended to December 31, 2014 (the “Termination Date”) on which date the MMA and each of the Single Facility Management Agreements will automatically terminate and new management agreements
reflecting the Hotel Specific Information and in the form of Exhibit B (each a “Management Agreement” and each hotel subject to a Management Agreement is herein after referred to as a “Managed Hotel”) will come into
effect with respect to each of the Current Hotels. The respective base management fees for the Current Hotels set forth in Exhibit D and the incentive management fee structured as summarized in Exhibit D will be reflected in the applicable
Management Agreement for each of the Current Hotels. The provisions of the MMA and the Single Facility Management Agreements which by their terms survive the termination of such agreements shall survive the execution of this Agreement and the
termination of the MMA and the Single Facility Management Agreements and the execution and delivery of the Management Agreements. 
 3.
Resources Provided by Manager. 
 (a) So long as Manager manages for Lessee not less than 70% of the number of hotels wholly-owned by
the Company from time to time during the term hereof (including the Current Hotels) and in any event not fewer than 7 hotels in the aggregate (the “Group Manager Condition”), Manager shall (i) designate Chris Green
(“Green”) and Clifford Ferrara (“Ferrara”) as the senior executives of Manager responsible for supporting and managing the activities of Manager pursuant to the Management Agreements (the “Group
Managers”) and (ii) make such individuals available to support and manage the activities of Manager under the Management Agreements for not less than 80% of their professional working time (on the basis of a 40 hour work week). Manager
shall provide time sheets in the monthly reports provided to Lessee pursuant to the Management Agreements to establish that the Group Managers have devoted not less than 80% of their professional working time (on the basis of a 40 hour work week) to
the management of the Managed Hotels. 
 (b) So long as Section 3 (a) is applicable, in the event of the resignation, termination,
death, disability or promotion to a new position within Manager of either Green or Ferrara, Manager will be required to retain the services of a substitute Group Manager with similar credentials, background and experience in the hospitality industry
and make such executive available as a Group Manager to the same extent as is required pursuant to this Section 3 with respect to Green and Ferrara. Manager shall make available a manager with knowledge of the Managed Hotels to serve as an
interim Group Manager following the Group Manager’s resignation, termination, death, disability or promotion and prior to retention by Manager of a replacement Group Manager. Manager shall consult with Lessee regarding the retention and
designation of any replacement Group Manager and any such executive so designated by Manager shall be subject to Lessee’s prior written approval which approval shall not be unreasonably withheld, conditioned or delayed. 

(c) The Group Managers shall participate in monthly telephonic meetings with representatives of the Company regarding the prior month’s
financial and operating performance 

  
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of each Managed Hotel (the “Monthly Review Call”). The Group Managers shall also participate in bi-weekly telephonic or on-site meetings, as the case may be, with representatives
of the Company to review specific performance of assets the Company deems to be underperforming relative to expected levels of operating and financial performance (the “Bi-Weekly Underperforming Call”). The Company may include
review and discussion, during the Bi-Weekly Underperforming Call, of any other issue(s) it deems relevant, which may include, but are not limited to, the integration of Managed Hotels recently made subject to a Management Agreement the status of
Product Improvement Plans (“PIPs”), brand strategies, property staffing, and other operating or financial matters. 
 (d)
For purposes of determining the number of Managed Hotels managed by Manager for the Group Manager Condition, if a Managed Hotel has been sold or transferred by Owner and under the terms of the applicable Management Agreement, Lessee has a right to
offer Manager the opportunity to manage another hotel and such right has not expired, the hotel that has been sold shall be deemed to be a Managed Hotel until such right has expired or Manager has declined to accept the offer. 

(e) If at any time during the Term, the Group Manager Condition is not satisfied, Manager shall be entitled to discontinue providing the Group
Managers pursuant to Section 3(a); provided, however, that if the Group Manager Condition is subsequently satisfied (e.g., by Manager entering into a Management Agreement for a Future Hotel) the Manager shall be obliged to provide the
Group Managers as provided in Section 3(a) following the satisfaction of such condition. 
 4. Future Hotels. 

(a) Subject to Section 4(c) below, during the Term of this Agreement, the Company hereby agrees to cause Lessee to offer Manager the
opportunity to manage any hotel property acquired by the Company or one of its subsidiaries and leased to Lessee following the date hereof (the “Future Hotel(s)”) on the terms and conditions set forth in the Form Management
Agreement (as modified to reflect the Hotel Specific Information to be provided by Lessee) so long as any of the following criteria are met: 

i. the Future Hotel is not encumbered by a management contract that would continue beyond the date of the Company’s acquisition of the
Future Hotel; 
 ii. no termination fee is payable by the Company in connection with termination of any then existing management contract
for the Future Hotel; or 
 iii. if the then existing management contract for the Future Hotel can be terminated at the time of the
Company’s acquisition of the Future Hotel upon payment of a termination fee, and Manager agrees to pay such termination fee; it being acknowledged by Company that Manager is under no obligation to pay such termination fee. 

(b) Not less than thirty (30) days prior to the Company’s acquisition of or investment in a Future Hotel, the Company will notify
Manager in writing of the Company’s proposed acquisition of the Future Hotel and will make available all information reasonably available to 

  
 3 

 
the Company with respect to the Future Hotel. Manager shall have ten (10) business days from receipt of such notice to notify the Company in writing whether Manager elects to manage the
Future Hotel. If Manager elects to manage the Future Hotel, (i) it shall execute a Management Agreement consistent with the Form Management Agreement with the only exceptions being for Hotel Specific Information and the base management fees
which shall be determined on the structure set forth in Exhibit D, and (ii) Manager and Company shall cooperate to allow for the takeover of management by Manager upon Company’s acquisition of or investment in the Future Hotel. If Manager
(i) notifies the Company that Manager does not intend to manage the Future Hotel, or (ii) fails by the end of the ten (10) business day notice period to notify the Company of its election to manage the Future Hotel, then, in either
event, the Company may offer management of the Future Hotel to other hotel management companies on such term as the Company shall determine and Manager shall have no further rights with respect to that Future Hotel. 

(c) While it is the present intention of Lessee and Company to offer the opportunity to manage any Future Hotels to Manager, however,
notwithstanding anything in this Section 4 to the contrary, if the REIT determines in its sole discretion that a management company other than Manager should manage a Future Hotel, neither the Company nor Lessee shall have an obligation to
offer the management of such hotel to Manager pursuant to Section 4(a) hereof and Manager shall have no right to require Company or Lessee to make any such offer. 

(d) In the event Lessee terminates a Management Agreement in connection with a sale or other disposition of a Managed Hotel and offers to
Manager the opportunity to manage another hotel owned by the Company or a subsidiary and Manager accepts such offer, all in the manner and within the timeframes specified in the applicable Management Agreement, Manager and Lessee shall enter into a
new management agreement in the form of the Form Management Agreement with a commencement date for such agreement being the date Manager commences its management duties. The management agreement for such hotel shall have an initial term of five
years and will provide for base management fees based on the fee structure set forth in Exhibit D for Future Hotels. 
 5. Term. The
term (“Term”) of this Agreement shall commence on the date first written above and shall expire upon December 31, 2019 provided, however, that the term of this Agreement shall continue beyond such date for such period of time as any
Management Agreement for a Current or Future Hotel remains in effect. Notwithstanding the foregoing, this Agreement shall terminate automatically upon the termination or expiration of the term of the Management Agreements for all of the Managed
Hotels. 
 6. Default. The failure by Manager to comply with the requirements of Section 3(a) or 3(b) hereof shall be deemed an
event of default under this Agreement and each Management Agreement. In the event of such a default, the Company will give written notice of such default and Manager will have an opportunity to cure the default within sixty (60) days of such
notice; provided, however, that such sixty (60) day cure period shall be extended an additional thirty (30) days if the default has not been cured but Manager is diligently pursuing a cure in good faith. If such default has not been cured
within the applicable cure period, the Company will be relieved of its obligations under Section 5 to offer to Manager the opportunity to manage Future Hotels and the Company will be entitled to terminate any or all of the Management
Agreements. 

  
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 7. Assignment. 

(a) Manager, without the consent of, but following notice to Company, shall have the right from time to time to assign this Agreement to any
entity controlled by, under common control with, or controlling Manager both before and after such assignment; provided however, in either case, that any such assignee shall continue to be operated by persons experienced and knowledgeable in the
field of hotel management. Any such assignee shall agree to be bound by the terms and conditions of this Agreement. Except as hereinabove provided, Manager shall not assign or in any manner sell or transfer any of its rights and interests under this
Agreement without the prior written consent of Company. 
 (b) Company, without the consent of, but following notice to Manager, shall have
the right from time to time to assign this Agreement to any entity controlled by, under common control with, or controlling Company both before and after such assignment; provided however, in either case, that any such assignee shall continue to be
operated by persons experienced and knowledgeable in the field of hotel ownership. Any such assignee shall agree to be bound by the terms and conditions of this Agreement. Except as hereinabove provided, Company shall not assign or in any manner
sell or transfer any of its rights and interests under this Agreement without the prior written consent of Manager. 
 8.
Confidentiality. The parties hereto shall keep confidential all non-public information obtained in connection with this Agreement and shall not disclose any such information or use any such information except in furtherance of its duties
under this Agreement or as may be required by law or court order or as may be required by applicable listing standards or the rules and regulations promulgated by the Securities and Exchange Commission. 

9. Amendments; Waivers. This Agreement may be amended only by agreement in writing of all parties. No waiver of any provision nor
consent to any exception to the terms of this Agreement or any agreement contemplated herein shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance so provided. 

10. Entire Agreement. This Agreement contains the entire understanding and agreement between the parties with respect to the matters
referred to herein, and supersedes any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, express or implied, between the parties to this Agreement. No other representations, covenants, undertakings or
other prior or contemporaneous agreements, oral or written, respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to exist or bind any of the parties. The parties acknowledge that each party has not
executed this Agreement in reliance on any such promise, representation or warranty. 
 11. Binding Agreement. This Agreement has
been validly authorized, executed and delivered by the parties hereto and constitutes the legal, valid and binding obligation of the parties hereto, enforceable against each in accordance with its terms except as such enforceability may be limited
by bankruptcy, insolvency, reorganization and/or other similar laws and equitable principles relating to or limiting creditors’ rights generally. 

  
 5 

 12. Severability. Wherever possible, each provision hereof shall be interpreted in such
manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision or provisions had never been contained herein unless the deletion of such
provision or provisions would result in such a material change as to cause completion of the transaction contemplated hereby to be unreasonable. 

13. Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Virginia without deference to conflicts of laws principals. The parties hereto agree that venue for any action in connection herewith shall be proper in James City County, Virginia. Each party hereto consents to the jurisdiction of any local, state
or federal court situated in such location and waives any objection which it may have pertaining to improper venue or forum non-conveniens to the conduct of any proceeding in any such court. 

14. Default; Waiver of Jury Trial; Attorney’s Fees. Any party to this Agreement shall have all rights at law and in equity to
pursue rights and remedies against a party which defaults under the terms of this Agreement. The parties waive the right to request a jury trial for any litigation under this Agreement. In the event any party hereto brings a claim arising from or
relating to this Agreement, or to enforce this Agreement, the “prevailing party” shall be entitled to recover all its reasonable attorneys’ fees and costs incurred as a result of such a claim as costs of suit or as damages. 

15. Construction. The parties participated jointly in the preparation of this Agreement. Each party to this Agreement has had the
opportunity to review, comment upon and redraft this Agreement. It is agreed that no rule of construction shall apply against any party or in favor of any party. This Agreement shall be construed as if the parties jointly prepared this Agreement and
any uncertainty and ambiguity shall not be interpreted against any one party. The parties acknowledge that they have been represented by counsel of their own choice in the negotiations leading to their execution of this Agreement, and that they have
read this Agreement and have had it fully explained to them by their counsel. 
 16. Time of Essence. Time is of the essence with
respect to the performance of every provision of this Agreement. 
 17. Headings. The descriptive headings of the articles, sections
and subsections of this Agreement are for convenience only and do not constitute a part of this Agreement. 
 18 Counterparts. This
Agreement and any amendment hereto or any other agreement (or other document) delivered pursuant hereto may be executed in one or more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and
the same agreement (or other document) and shall become effective (unless otherwise therein provided) when one or more counterparts have been signed by each party and delivered to the other party. 

  
 6 

 19. Electronic Signatures. This Agreement may be transmitted for execution by facsimile or
e-mail and, therefore, signatures transmitted by facsimile or e-mail shall be acceptable and binding. 
 20. Notices. All notices and
other communications required or permitted hereunder shall be in writing, shall be deemed duly given upon actual receipt, and shall be delivered (i) in person, (ii) by registered or certified mail (air mail if addressed to an address
outside of the country in which mailed), postage prepaid, return receipt requested, or (iii) by facsimile or other generally accepted means of electronic transmission (provided that a copy of any notice delivered pursuant to this clause
(iii) shall also be sent pursuant to clause (ii), addressed as follows (or to such other addresses as may be specified by like notice to the other parties): 
  

			
	To Lessee:	  	MHI Hospitality TRS, LLC
		  	410 West Francis Street
		  	Williamsburg, Virginia 23185
		  	Fax: 757-564-8801
		
	With a copy to:	  	Thomas J. Egan, Jr.
		  	Baker & McKenzie LLP
		  	815 Connecticut Avenue, NW
		  	Washington, D.C. 20006
		  	Fax: 202-416-6955
		
	To the REIT:	  	Sotherly Hotels Inc.
		  	410 West Francis Street
		  	Williamsburg, Virginia 23185
		  	Fax: 757-564-8801
		
	With a copy to:	  	Thomas J. Egan, Jr.
		  	Baker & McKenzie LLP
		  	815 Connecticut Avenue, NW
		  	Washington, D.C. 20006
		  	Fax: 202-416-6955
		
	To Operating Partnership:	  	Sotherly Hotels, LP
		  	410 West Francis Street
		  	Williamsburg, Virginia 23185
		  	Fax: 757-564-8801
		
	With a copy to:	  	Thomas J. Egan, Jr.
		  	Baker & McKenzie LLP
		  	815 Connecticut Avenue, NW
		  	Washington, D.C. 20006
		  	Fax: 202-416-6955

  
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	To Manager:	  	MHI Hotel Services, LLC
		  	6411 Ivy Lane – Suite 510
		  	Greenbelt, Maryland 20777
		  	Fax: 301-474-0807
		
	With a copy to:	  	The Law Offices of David J. Weymer
		  	11613 Quarterfield Drive
		  	Ellicott City, Maryland 21042
		  	Fax: 410-531-8929

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 

  
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 THIS Agreement is executed by the parties effective as of the date and year first above written.

  

			
	COMPANY
	
	SOTHERLY HOTELS, LP,
	a Delaware limited partnership
	
	By: SOTHERLY HOTELS, INC., its General Partner,

			
	a Maryland corporation
		
	By:	 	 /s/ David R. Folsom

	Name:	 	 David R. Folsom

	Title:	 	 COO

	
	SOTHERLY HOTELS INC.,
	a Maryland corporation
		
	By:	 	 /s/ David R. Folsom

	Name:	 	 David R. Folsom

	Title:	 	 COO

	
	MHI HOSPITALITY TRS, LLC,
	a Delaware limited liability company
		
	By:	 	 /s/ David R. Folsom

	Name:	 	 David R. Folsom

	Title:	 	 Manager

	
	MANAGER
	
	MHI HOTELS SERVICES, LLC,
	a Virginia limited liability company
		
	By:	 	 /s/ Kim E. Sims

	Name:	 	 Kim E. Sims

	Title:	 	 President

  
 9 

 EXHIBIT A 

CURRENT HOTELS 
 Hilton Philadelphia Airport 

Hilton Wilmington Riverside 
 Hilton Savannah DeSoto 

Crowne Plaza Jacksonville 
 Doubletree Brownstone Raleigh
Downtown 
 Holiday Inn Laurel West 
 Sheraton Louisville
Riverfront 
 Crowne Plaza Hampton Marina Hotel 
 Crowne Plaza
Tampa Westshore 
 Crowne Plaza Houston Downtown 
 Georgian
Terrace Hotel 

 EXHIBIT B 

FORM MANAGEMENT AGREEMENTS 

 HOTEL MANAGEMENT AGREEMENT 

BY AND BETWEEN 
 [MHI
Hospitality TRS, LLC] 
 A DELAWARE LIMITED LIABILITY COMPANY 

MHI HOTELS SERVICES LLC, 

A VIRGINIA LIMITED LIABILITY COMPANY 

DATED AS OF DECEMBER 15, 2014 

							
	 ARTICLE I DEFINITION OF TERMS
	  	 	1	 
			
	 1.1
	  	 Definition of Terms
	  	 	1	 
		
	 ARTICLE II TERM OF AGREEMENT
	  	 	12	 
			
	 2.1
	  	 Term
	  	 	12	 
			
	 2.2
	  	 Actions to be taken upon Termination
	  	 	13	 
			
	 2.3
	  	 Early Termination Rights, Liquidated Damages
	  	 	14	 
		
	 ARTICLE III PREMISES
	  	 	16	 
		
	 ARTICLE IV APPOINTMENT OF MANAGER
	  	 	16	 
			
	 4.1
	  	 Appointment
	  	 	16	 
			
	 4.2
	  	 Delegation of Authority
	  	 	16	 
			
	 4.3
	  	 Contracts, Equipment Lease and Other Agreements
	  	 	16	 
			
	 4.4
	  	 Alcoholic Beverage/Liquor Licensing Requirements
	  	 	17	 
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	 	17	 
			
	 5.1
	  	 Lessee Representations
	  	 	17	 
			
	 5.2
	  	 Manager Representations
	  	 	18	 
		
	 ARTICLE VI OPERATION
	  	 	18	 
			
	 6.1
	  	 Name of Premises, Standard of Operation
	  	 	18	 
			
	 6.2
	  	 Use of Premises
	  	 	19	 
			
	 6.3
	  	 Group Services
	  	 	20	 
			
	 6.4
	  	 Right to Inspect
	  	 	20	 
			
	 6.5
	  	 Reports
	  	 	20	 
		
	 ARTICLE VII WORKING CAPITAL AND INVENTORIES
	  	 	21	 
			
	 7.1
	  	 Working Capital and Inventories
	  	 	21	 
			
	 7.2
	  	 Fixed Asset Supplies
	  	 	21	 
		
	 ARTICLE VIII MAINTENANCE, REPLACEMENT AND CHANGES
	  	 	21	 
			
	 8.1
	  	 Routine and Non-Routine Repairs and Maintenance
	  	 	21	 
			
	 8.2
	  	 Capital Improvement Budget
	  	 	22	 
			
	 8.3
	  	 Management of Renovation Projects
	  	 	23	 
		
	 ARTICLE IX EMPLOYEES
	  	 	24	 
			
	 9.1
	  	 Employee Hiring
	  	 	24	 
			
	 9.2
	  	 Costs, Benefit Plans
	  	 	24	 
			
	 9.3
	  	 Manager’s Employees
	  	 	25	 
			
	 9.4
	  	 Special Projects – Corporate Employees
	  	 	25	 

  
 i 

							
	 9.5
	  	 Termination
	  	 	25	 
			
	 9.6
	  	 Employee Use of Hotel
	  	 	26	 
			
	 9.7
	  	 Non-Solicitation
	  	 	26	 
		
	 ARTICLE X BUDGET, STANDARDS AND CONTRACTS
	  	 	26	 
			
	 10.1
	  	 Annual Operating Budget
	  	 	26	 
			
	 10.2
	  	 Budgeting Process
	  	 	27	 
			
	 10.3
	  	 Operation in the Absence of an Approved Annual Operating Budget
	  	 	28	 
			
	 10.4
	  	 Budget Meetings
	  	 	28	 
		
	 ARTICLE XI FEES TO MANAGER
	  	 	28	 
			
	 11.1
	  	 Management Fee
	  	 	28	 
			
	 11.2
	  	 Accounting and Interim Payment
	  	 	29	 
		
	 ARTICLE XII INSURANCE
	  	 	30	 
			
	 12.1
	  	 Insurance
	  	 	30	 
			
	 12.2
	  	 Replacement Cost
	  	 	31	 
			
	 12.3
	  	 Increase in Limits
	  	 	31	 
			
	 12.4
	  	 [Intentionally Omitted]
	  	 	31	 
			
	 12.5
	  	 Costs and Expenses
	  	 	31	 
			
	 12.6
	  	 Policies and Endorsements
	  	 	32	 
			
	 12.7
	  	 Termination
	  	 	32	 
		
	 ARTICLE XIII [INTENTIONALLY OMITTED]
	  	 	32	 
		
	 ARTICLE XIV BANK ACCOUNTS
	  	 	32	 
			
	 14.1
	  	 Operating Account
	  	 	32	 
			
	 14.2
	  	 [Intentionally Omitted.]
	  	 	33	 
			
	 14.3
	  	 Delivery of Operating Account Upon Termination
	  	 	33	 
			
	 14.4
	  	 Advance of Funds
	  	 	33	 
			
	 14.5
	  	 [Intentionally Omitted.]
	  	 	33	 
		
	 ARTICLE XV ACCOUNTING SYSTEM
	  	 	33	 
			
	 15.1
	  	 Books and Records
	  	 	33	 
			
	 15.2
	  	 Monthly Financial Statements
	  	 	34	 
			
	 15.3
	  	 Annual Financial Statements
	  	 	34	 
			
	 15.4
	  	 Internal Controls
	  	 	34	 
			
	 15.5
	  	 Certification
	  	 	35	 
			
	 15.6
	  	 Control Rules
	  	 	35	 
			
	 15.7
	  	 Future Reporting Periods
	  	 	36	  

  
 ii 

							
	 ARTICLE XVI DISTRIBUTIONS TO LESSEE
	  	 	36	 
			
	 16.1
	  	 Payment of Base Management Fee
	  	 	36	 
			
	 16.2
	  	 Payment of Incentive Management Fee
	  	 	36	 
			
	 16.3
	  	 Distributions to Lessee
	  	 	36	 
		
	 ARTICLE XVII RELATIONSHIP AND AUTHORITY
	  	 	36	 
		
	 ARTICLE XVIII DAMAGE, CONDEMNATION AND FORCE MAJEURE
	  	 	37	 
			
	 18.1
	  	 Damage and Repair
	  	 	37	 
			
	 18.2
	  	 Condemnation
	  	 	37	 
			
	 18.3
	  	 Force Majeure
	  	 	37	 
			
	 18.4
	  	 Partial Casualty
	  	 	38	 
		
	 ARTICLE XIX DEFAULT AND TERMINATION
	  	 	38	 
			
	 19.1
	  	 Events of Default
	  	 	38	 
			
	 19.2
	  	 Consequence of Default
	  	 	39	 
		
	 ARTICLE XX WAIVER AND INVALIDITY
	  	 	40	 
			
	 20.1
	  	 Waiver
	  	 	40	 
			
	 20.2
	  	 Partial Invalidity
	  	 	40	 
		
	 ARTICLE XXI ASSIGNMENT
	  	 	40	 
		
	 ARTICLE XXII NOTICES
	  	 	40	 
		
	 ARTICLE XXIII SUBORDINATION
	  	 	42	 
			
	 23.1
	  	 Subordination
	  	 	42	 
		
	 ARTICLE XXIV PROPRIETARY MARKS; INTELLECTUAL PROPERTY
	  	 	42	 
			
	 24.1
	  	 Computer Software and Equipment
	  	 	42	 
			
	 24.2
	  	 Intellectual Property
	  	 	42	 
			
	 24.3
	  	 Books and Records
	  	 	43	 
			
	 24.4
	  	 Exclusivity
	  	 	43	 
		
	 ARTICLE XXV INDEMNIFICATION
	  	 	43	 
			
	 25.1
	  	 Manager Indemnity
	  	 	43	 
			
	 25.2
	  	 Lessee Indemnity
	  	 	43	 
			
	 25.3
	  	 Indemnification Procedure
	  	 	44	 
			
	 25.4
	  	 Survival
	  	 	44	 
		
	 ARTICLE XXVI [INTENTIONALLY OMITTED]
	  	 	44	 
		
	 ARTICLE XXVII GOVERNING LAW AND VENUE
	  	 	44	 

  
 iii 

							
		
	 ARTICLE XXVIII MISCELLANEOUS
	  	 	45	 
			
	 28.1
	  	 Rights to make Agreement
	  	 	45	 
			
	 28.2
	  	 [Intentionally Omitted]
	  	 	45	 
			
	 28.3
	  	 [Intentionally Omitted]
	  	 	45	 
			
	 28.4
	  	 Headings
	  	 	45	 
			
	 28.5
	  	 Attorneys’ Fees and Costs
	  	 	45	 
			
	 28.6
	  	 Entire Agreement
	  	 	45	 
			
	 28.7
	  	 Consents
	  	 	45	 
			
	 28.8
	  	 Eligible Independent Contractor
	  	 	45	 
			
	 28.9
	  	 Subleasing
	  	 	46	 
			
	 28.10
	  	 Environmental Matters
	  	 	46	 
			
	 28.11
	  	 Equity and Debt Offerings
	  	 	47	 
			
	 28.12
	  	 Estoppel Certificates
	  	 	48	 
			
	 28.13
	  	 Confidentiality
	  	 	48	 
			
	 28.14
	  	 Modification
	  	 	48	 
			
	 28.15
	  	 Counterparts
	  	 	48	 

  
 iv 

 HOTEL MANAGEMENT AGREEMENT 

This HOTEL MANAGEMENT AGREEMENT is made and entered into as of December 15, 2014 by and between [MHI Hospitality TRS, LLC] a Delaware
limited liability company (hereinafter referred to as “Lessee”), MHI Hotels Services LLC, a Virginia limited liability company (hereinafter referred to as “Manager”), and for the limited purposes of Article VIII
herein, the Landlord (defined below). 
 RECITALS: 

A. Lessee is the tenant under the Lease (defined below) covering that certain hotel property, fully equipped with furniture and fixtures, and
more particularly described by address location, franchise name and room number information, on Exhibit A attached hereto (the Hotel, together with all ancillary facilities, improvements and amenities set forth on Exhibit A attached hereto herein
called the “Hotel”). 
 B. Lessee desires to retain Manager to manage and operate the Hotel, and Manager is willing to
perform such services for the account of Lessee, all as more particularly set forth in this Agreement. 
 AGREEMENTS: 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows: 

ARTICLE I 
 DEFINITION OF
TERMS 
 1.1 Definition of Terms. The following terms when used in this Agreement shall have the meanings indicated below. 

“Accounting Period” shall mean a calendar month. 

“Affiliate” shall mean an entity that controls, is controlled by or under common control with another entity.

 “Agreement” shall mean this Management Agreement, and all amendments, modifications, supplements,
consolidations, extensions and revisions to this Management Agreement approved by Lessee and Manager in accordance with the provisions hereof. 

“Annual Operating Budget” shall have the meaning as set forth in Section 10.1. 

“Applicable Standards” shall mean commercially reasonable efforts to: (i) manage the Premises in a manner reasonably
designed in good faith to maximize profitability; (ii) manage the Premises in a first class fashion consistent with industry norms; (iii) operate the Premises in a prudent manner sufficient to comply (a) with the requirements of the
applicable Franchise Agreement, if any, or the Brand Standards in the absence of an applicable Franchise Agreement 

  
 1 

 
and all CCRs affecting the Premises and of which true and complete copies have been made available by Lessee to Manager, (b) applicable Legal Requirements, (c) the terms and conditions
of any Hotel Mortgage or Ground Lease to the extent not otherwise inconsistent with the terms of this Agreement (to the extent Lessee has made available to Manager true and complete copies of the applicable loan documents relating to any the Hotel
Mortgage and/or the Ground Lease), (d) the Lease (to the extent Lessee has made available to Manager a true and complete copy thereof), (e) the requirements of any carrier having insurance on the Hotel or any part thereof (to the extent
Manager has been given written notice of such requirements or policies or has coordinated same on behalf of Lessee) and (f) the requirements of Section 856(d)(9)(D) of the Code for qualifying the Hotel as a Qualified Lodging Facility. 

“Base Management Fee” shall have the meaning as set forth in Section 11.1(a). 

“Benefit Plans” shall have the meaning as set forth in Section 9.2. 

“Brand Standards” shall mean the design elements, services and safety standards, and other branding elements as
developed and specified from time to time by SOHO or an Affiliate of SOHO and utilized at a hotel that is not subject to a Franchise Agreement. 

“Budgeted GOP” shall mean the Gross Operating Profit as set forth in the Annual Operating Budget for the applicable
Fiscal Year pursuant to Article X hereof. 
 “CCR” shall mean those certain restrictive covenants encumbering
the Premises recorded in the real property records of the county where such premises are located, as described in the owner policies of title insurance relating to such premises, a copy of which are acknowledged received by Manager. 

“Capital Improvement Budget” shall have the meaning set forth in Section 8.2(a). 

“Cash Management Agreements” shall mean agreements, if any, entered into by either or both of Lessee and Landlord for
the benefit of a Holder for the collection and disbursement of any lease payments by Lessee to Landlord under the applicable Lease with respect to the applicable Premises or other amounts, which constitute a part of the loan documents executed and
delivered in connection with any Hotel Mortgage by Landlord. 
 “CIB Objection Notice” shall have the meaning
as set forth in Section 8.2(a). 
 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 “Commencement Date” shall have the meaning as set forth in Section 2.1(a). 

“Competitive Set” shall mean for the Hotel, the hotels situated in the same market segment as the Hotel as noted on
Exhibit A attached hereto, which competitive set shall include the Hotel. The Competitive Set may be changed from time to time by Lessee. 

“Contract(s)” shall have the meaning as set forth in Section 4.3. 

  
 2 

 “Debt Service” shall mean actual scheduled payments of principal and
interest, including accrued and cumulative interest, payable by a Landlord with respect to any Hotel Mortgage. 

“Deductions” shall mean the following matters: 

(a) Employee Costs and Expenses (including, Employee Claims but excluding Excluded Employee Claims); 

(b) Administrative and general expenses and the cost of advertising and business promotion, heat, light, power, communications (i.e.,
telephone, fax, cable service and internet) and other utilities and routine repairs, maintenance and minor alterations pertaining to the Premises; 

(c) The cost of replacing, maintaining or replenishing Inventories and Fixed Asset Supplies consumed in the operation of the Premises; 

(d) A reasonable reserve for uncollectible accounts receivable as reasonably determined by Manager and approved by Lessee (such approval not
to be unreasonably withheld); 
 (e) All costs and fees of independent accountants, attorneys or other third parties who perform services
related to the Hotel or the operation thereof; 
 (f) The cost and expense of third-party non-routine technical consultants and operational
experts for specialized services in connection with the Premises, including, without limitation, an allocation of costs of Manager’s corporate staff who may perform specific services directly related to the Hotel such as sales and marketing,
revenue management, training, property tax services, federal, state and/or local tax services, recruiting, and similar function or services as set forth in Section 9.4 to be allocated on a fair and equitable cost basis as reasonably determined
by Manager and approved by Lessee (such approval not be unreasonably withheld). 
 (g) Insurance costs and expenses as provided in Article
XII; 
 (h) [Intentionally Omitted]; 

(i) Franchise fees, royalties, license fees, or compensation or consideration paid or payable to the Franchisor (as hereinafter defined), or
any successor Franchisor, pursuant to a Franchise Agreement (as hereinafter defined); 
 (j) The Premises’ allocable share of the
actual costs and expenses incurred by Manager in providing Group Services as provided and to the extent permitted in Section 6.3 hereof; 

(k) The Management Fee; 
 (l)
Rental payments made under any equipment lease; and 
 (m) Other expenses incurred in connection with the maintenance or operation of the
Premises not expressly set forth above and authorized pursuant to this Agreement. 

  
 3 

 Deductions shall not include: (a) depreciation and amortization, (b) Debt Service, or (c) Ground
Lease Payments; 
 “Effective Date” shall mean the date this Agreement is fully executed and delivered. 

“Eligible Independent Contractor” shall have the meaning as set forth in Section 28.8. 

“Employee Claims” shall mean any claims (including all fines, judgments, penalties, costs, litigation and/or
arbitration expenses, attorney’s fees and expenses, and costs of settlement with respect to any such claim) made by or in respect of an employee or potential hire of Manager against Manager and/or Lessee which are based on a violation or
alleged violation of the Employment Laws or alleged contractual obligations and as to such claim Notice has been given to the Lessee and Landlord within five (5) days of the Manager being notified of such claim. 

“Employee Costs and Expenses” shall have the meaning as set forth in Section 9.3. 

“Employee Related Termination Costs” shall have the meaning as set forth in Section 9.5. 

“Employment Laws” shall mean all applicable federal, state and local laws (including, without limitation, any
statutes, regulations, ordinances or common laws) regarding the employment, hiring or discharge of persons. 

“Event(s) of Default” shall have the meaning set forth in Article XIX. 

“Excess Working Capital” shall have the meaning as set forth in Section 16.3. 

“Excluded Employee Claims” shall mean any Employee Claims to the extent attributable to a substantial violation by
Manager of Employment Laws and arising directly or indirectly from the gross or willful negligence or wilful violation of law by Manager. 

“Executive Employees” shall mean any officer or senior executive Manager and the General Manager, Director of Sales,
the members of the executive committee and any other management personnel serving at the Premises. 
 “Expiration
Date” shall have the meaning as set forth in Section 2.1. 
 “FF&E” shall have the meaning as
set forth in Section 8.1. 
 “Fiscal Year” shall mean the twelve (12) month calendar year ending
December 31, except that the first Fiscal Year and the last Fiscal Year of the term of this Agreement may not be full calendar years. 

  
 4 

 “Fixed Asset Supplies” shall mean supply items included within
“Property and Equipment” under the Uniform System of Accounts, including linen, china, glassware, silver, uniforms, and similar items. 

“Force Majeure” shall mean any act of God (including adverse weather conditions); act of the state or federal
government in its sovereign or contractual capacity; war; civil disturbance, riot or mob violence; terrorism; earthquake, flood, fire or other casualty; epidemic; quarantine restriction; labor strikes or lock out; freight embargo; civil disturbance;
or similar causes beyond the reasonable control of Manager. 
 “Franchisor” shall mean that certain
franchisor and any successor franchisor selected by Lessee (subject to the terms of the Lease), if any, identified on Exhibit C attached hereto (as modified from time to time). 

“Franchise Agreement” shall mean that certain license agreement between a Franchisor and Lessee as such license
agreement may be amended from time to time, and any other contract hereafter entered into between Lessee and such Franchisor pertaining to the name and operating procedures, systems and standards for the Hotel, as described on Exhibit C attached
hereto (as modified from time to time). 
 “Full Replacement Cost” shall have the meaning as set forth in
Section 12.2. 
 “GAAP” shall mean generally accepted accounting principles consistently applied as
recognized by the accounting industry and standards within the United States. 
 “General Manager” or
“General Managers” shall have the meanings as set forth in Section 9.7. 
 “Gross Operating
Profit” shall mean the income before non-operating income and expense of the Premises determined in accordance with the Uniform System of Accounts plus rental income received from subleases relating to the Premises (e.g., restaurant
and roof top leases) and consistent with the format set forth in Exhibit D. 
 “Gross Revenues” shall mean all
revenues and receipts of every kind received from operating the Premises and all departments and parts thereof, including but not limited to, income from both cash and credit transactions, income from the rental or use of rooms, stores, offices,
banquet rooms, conference rooms, exhibits or sale space of every kind, license, concession fees and rentals (not including gross receipts of licensees, lessees and concessionaires but including the net received or retained in the Hotel accounts in
respect of such licensees, lessees and concessionaires), vending machines, health club membership fees, food and beverage sales, wholesale and retail sales of merchandise, service charges, and proceeds, if any, from business interruption or other
loss of income insurance; provided, however, Gross Revenues shall not include (a) gratuities actually distributed to the Premises’ employees, (b) federal, state or municipal excise, sales or use taxes or similar impositions collected
directly from customers, patrons or guests or included as part of the sales prices of any goods or services and paid over to federal, state or municipal governments, (c) property insurance or condemnation proceeds

  
 5 

 
(excluding proceeds from business interruption or other loss of income coverage), (d) proceeds from the sale or refinance of assets other than sales in the ordinary course of business,
(e) funds furnished by Lessor or Lessee, (f) judgments and awards other than proceeds from business interruption or other loss of income coverage, (g) the amount of all credits, rebates or refunds (which shall be adjustments to Gross
Revenues) to customers, patrons or guests (h) the value of complimentary rooms and complimentary food and beverages, (i) interest income, (j) lease security deposits, and (k) items constituting “allowances” under GAAP.

 “Ground Lease” shall mean any ground lease agreement relating to the Hotel, executed by Landlord with any third
party Landlord. 
 “Ground Lease Payments” shall mean payments due under the Ground Lease and payable by
Landlord thereunder. 
 “Group Services” shall have the meaning as set forth in Section 6.3. 

“Holder” shall mean the holder of any Hotel Mortgage and the indebtedness secured thereby, and such holder’s
successors and assigns, and the holder of any mezzanine indebtedness, and such holder’s successors and assigns. 

“Hotel” shall have the meaning set forth in Recital A. 

“Hotel Mortgage” shall mean, collectively, any mortgage or deed of trust hereafter from time to time, encumbering all
or any portion of the Premises (or the leasehold interest therein), together with all other instruments evidencing or securing payment of the indebtedness secured by such mortgage or deed of trust, any loan agreements and any instruments or
ancillary agreements entered into in connection with the acquisition or refinancing of the Hotel, any second lien position on the assets of the Landlord and/or Lessee or mezzanine financing obtained by the Landlord and/or Lessee and all amendments,
modifications, supplements, extensions and revisions of such mortgage, deed of trust, lien and other instruments. 

“Incentive Management Fee” shall have the meaning as set forth in Section 11.1(b). 

“Indemnifying Party” shall have the meaning as set forth in Section 25.3. 

“Initial Operating Budget” shall have the meaning as set forth in Section 10.1. 

“Initial Term” shall have the meaning as set forth in Section 2.1. 

“Intellectual Property” shall have the meaning as set forth in Section 24.2. 

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

“Issuing Party” shall have the meaning as set forth in Section 28.11. 

  
 6 

 “Key Employees” shall have the meaning as set forth in Section 9.7.

 “Landlord” shall mean the Landlord under the Lease. 

“Lease” shall mean that certain lease agreement as amended, modified, supplemented, and extended from time to time, as
described on Exhibit B attached hereto, executed by Lessee as tenant and the Landlord. 
 “Legal
Requirements” shall mean all laws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governments and governmental authorities, which now or hereafter may be applicable to
the Premises and the operation of the Hotel. 
 “Lessee” shall have the meaning as set forth in the
introductory paragraph of this Agreement. 
 “Major Renovation” shall have the meaning as set forth in
Section 8.3(a). 
 “Major Renovation Budget” shall have the meaning as set forth in Section 8.3(b).

 “Management Fee” shall have the meaning as set forth in Section 11.1. 

“Manager” shall have the meaning as set forth in the introductory paragraph of this Agreement. 

“Manager Affiliate Entity” shall mean any entity controlled directly or indirectly by (i) Drew Sims, Chris Sims
and/or Kim Sims, (ii) family partnerships or trusts (the sole members or beneficiaries of which are at all times lineal descendants of Drew Sims, Chris Sims and/or Kim Sims (including step-children) and spouses of any of the foregoing), or
(iii) by lineal descendants of Drew Sims, Chris Sims and/or Kim Sims (including step-children) and spouses of any of the foregoing. 

“Master Agreement” shall mean that certain agreement among SOHO, Sotherly Hotels LP and Manager dated as of
December 15, 2014. 
 “Non-Disturbance Agreement” means an agreement, in recordable form in the jurisdiction in
which the Hotel is located, executed and delivered by the Holder of a Hotel Mortgage or Landlord, as applicable, (which agreement shall by its terms be binding upon all assignees of such lender or landlord and upon any individual or entity that
acquires title to or possession of a Hotel (referred to as a “Subsequent Owner”), for the benefit of Manager, pursuant to which, in the event such holder (or its assignee) or landlord (or its assignee) or any Subsequent Owner comes
into possession of or acquires title to the Hotel, (A) such holder (and its assignee) or landlord (and its assignee) and all Subsequent Owners (x) shall recognize Manager’s rights under this Agreement (subject to the termination
rights of Lessee set forth herein), (y) shall not name Manager as a party in any foreclosure action or proceeding, and (z) shall not disturb Manager in its right to continue to manage the Hotel pursuant to this Agreement; provided,
however, that at such time, (i) this Agreement has not expired or otherwise 

  
 7 

 
been earlier terminated in accordance with its terms, and (ii) there are no outstanding Events of Default by Manager, and (iii) no material event has occurred and no material condition
exists which, after notice or the passage of time or both, would entitle Lessee to terminate this Agreement; and (B) Manager shall expressly subordinate Manager’s rights, benefits and remedies under this Agreement to such lender, landlord
or Subsequent Owner’s superior and higher priority lien, but only with respect to the Hotel, by providing (1) the right and option to such lender, landlord or Subsequent Owner to terminate this Agreement without further cost, expense or
obligation to such lender, landlord or Subsequent Owner, (2) that no Management Fees or other similar compensation shall be paid to Manager under this Agreement after such termination other than Management Fees, other similar compensation,
reimbursement payments and indemnification payments accrued and unpaid prior to the date of termination, (3) that in no event shall any Termination Fee, Sale Termination Fee or other similar fee be payable to Manager by such lender, landlord or
Subsequent Owner, (4) Manager shall recognize such lender, landlord or Subsequent Owner as owner or landlord and (5) prior to the effective time of such termination, Manager shall continue to operate the Hotel in accordance with the terms
of this Agreement and before and after the effective time of such termination, Manager shall assist in the smooth and orderly transition of the management of such Hotel to a subsequent manager including the surrender of the books and records
pertaining to the Hotel and any alcoholic beverage license and restaurant permits which are transferable. 
 “Non-Issuing
Party” shall have the meaning as set forth in Section 28.11. 
 “Notice” shall have the meaning as
set forth in Article XXII. 
 “Operating Account” shall have the meaning as set forth in Section 14.1(a).

 “Premises” shall mean collectively Lessee’s leasehold interest in the Hotel pursuant to the terms and
conditions of the Lease. 
 “Project Management Fee” shall have the meaning set forth in Section 8.3(b).

 “Property Service Account” shall have the meaning as set forth in Section 13.2. 

“Prospectus” shall have the meaning as set forth in Section 28.11. 

“Qualified Lodging Facility” shall mean a “qualified lodging facility” as defined in
Section 856(d)(9)(D) of the Code (as such section may be modified or amended from time to time during the Term hereof and any successor provision) and means a “Lodging Facility” (defined below), unless wagering activities are
conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with such facility. A “Lodging Facility” is a
hotel, motel or other establishment more than one-half of the dwelling units in which are used on a transient basis, and includes customary amenities and facilities operated as part of, or associated with, the lodging facility so long as such
amenities and facilities are customary for other properties of a comparable size and class owned by other owners unrelated to Lessee. 

  
 8 

 “Reasonable Working Capital” shall mean an amount of Working Capital
equal to the product of $1,000.00 and the number of guest rooms at the Premises as identified on Exhibit A hereto. 

“Related Person” shall have the meaning as set forth in Section 28.8(d). 

“Rental Payments” shall mean rental payments made under any equipment lease permitted pursuant to the terms of this
Agreement. 
 “Revpar” shall mean the revenue per available room, determined by taking the actual occupancy
rate of the Hotel and multiplying such rate by the actual average daily rate of the Hotel. 
 “Sale” shall
mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary of Landlord’s title (whether fee or leasehold) in the Hotel, or of a controlling interest therein, other than a collateral assignment
intended to provide security for a loan, and shall include any such disposition through the disposition of the ownership interests in the entity that holds such title and any lease or sublease of the Hotel other than the Lease. 

“Sale Termination Fee” shall have the meaning as set forth in Section 2.3(a). 

“SOHO” shall mean Sotherly Hotels Inc., the real estate investment trust parent entity. 

“SOHO Intellectual Property” shall have the meaning as set forth in Section 24.2(b). 

“Software” shall have the meaning as set forth in Section 24.1. 

“Term” shall mean the contractual duration of this Agreement, as defined in Section 2.1. 

“Termination” shall mean the expiration or sooner cessation of this Agreement. 

“Termination Date” shall have the meaning as set forth in Section 2.1. 

“Termination Fee” shall have the meaning as set forth in Section 2.1. 

“Uniform System of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, 11th Revised Edition,
as may be modified from time to time by the International Association of Hospitality Accountants. 
 “Unrelated
Person” shall have the meaning as set forth in Section 28.8(d). 
 “Working Capital” shall mean the
amounts by which current assets exceed current liabilities as defined by the Uniform System of Accounts which are reasonably necessary for the day-to-day operation of the Premises’ business, including, without limitation, the excess of change
and petty cash funds, operating bank accounts, receivables, prepaid expenses and funds required to maintain Inventories, over the amount of accounts payable and accrued current liabilities. 

  
 9 

			
	 Defined Term
	  	 Section

	Annual Operating Budget	  	10.1
		
	Base Management Fee	  	11.1(a)
		
	Benefit Plans	  	9.2
		
	Capital Improvement Budget	  	8.2(a)
		
	Changed Conditions	  	8.2(e)
		
	CIB Objection Notice	  	8.2(a)
		
	Commencement Date	  	2.1(a)
		
	Competitive Hotel	  	2.3(b)
		
	Contract(s)	  	4.3
		
	Control Rules	  	15.6
		
	Controls	  	15.4
		
	Corporate HQ Emloyees	  	9.7
		
	Eligible Independent Contractor	  	28.8
		
	Employee Costs and Expenses	  	9.3
		
	Employee Related Termination Costs	  	9.5
		
	Excess Working Capital	  	16.3
		
	Expiration Date	  	2.1
		
	FF&E	  	8.1
		
	Full Replacement Cost	  	12.2
		
	General Manager(s)	  	9.7
		
	Group Services	  	6.3
		
	Hotel	  	Recital A

  
 10 

			
	 Defined Term
	  	 Section

	Incentive Management Fee	  	11.1(b)
		
	Indemnifying Party	  	25.3
		
	Initial Operating Budget	  	10.1
		
	Initial Term	  	2.1
		
	Intellectual Property	  	24.2
		
	Issuing Party	  	28.11
		
	Key Employees	  	9.7
		
	Lessee	  	Introductory Paragraph
		
	Lodging Facility	  	1.1
		
	Major Renovation	  	8.3(a)
		
	Major Renovation Budget	  	8.3(b)
		
	Management Fee	  	11.1
		
	Manager	  	Introductory Paragraph
		
	Manager Intellectual Property	  	24.2
		
	Non-Issuing Party	  	28.11
		
	Notice	  	Article XXII
		
	Operating Account	  	14.1(a)
		
	Project Management Fee	  	8.3(b)
		
	Property Service Account	  	13.2
		
	Prospectus	  	28.11
		
	Related Person	  	28.8(d)
		
	Repair Period	  	18.4
		
	Sale Termination Fee	  	2.3(a)
		
	Software	  	24.1

  
 11 

			
	 Defined Term
	  	 Section

	SOHO Intellectual Property	  	24.2(b)
		
	Subsequent Owner	  	1.1
		
	Substitute Hotel	  	2.3(b)
		
	Term	  	2.1
		
	Termination Date	  	2.1
		
	Termination Fee	  	2.1(b)
		
	Unrelated Person	  	28.8(d)

  
  

ARTICLE II 
 TERM OF
AGREEMENT 
 2.1 Term. 

(a) The term (“Term”) of this Agreement shall commence on the “Commencement Date” for the Hotel as noted on
Exhibit B attached hereto and, unless sooner terminated as herein provided, shall continue with respect to the Hotel until the “Termination Date.” For purposes of this Agreement, the “Termination Date” for the Hotel shall
be the earlier to occur of (i) the Expiration Date, (ii) termination at the option of Lessee in connection with the bona fide Sale pursuant to Section 2.3(a) hereof, (iii) termination by either Lessee or Manager pursuant to
Article XVIII hereof in connection with a condemnation, casualty or Force Majeure, subject to the terms thereof, or (iv) termination pursuant to agreement with or right of a Holder. The “Expiration Date” shall mean the fifth
anniversary of the Commencement Date, provided that such initial 5-year term (the “Initial Term”) may thereafter be renewed on the same terms and conditions contained herein, for up to two renewal periods of five (5) Fiscal
Years each, provided that both Lessee and Manager agree to each renewal period and, provided further, that at the time of any such renewal an Event of Default by Manager does not then exist beyond any applicable grace or cure period. If at the time
of the exercise of any renewal period, Manager is then in default of this Agreement, then the renewal will be conditional on timely cure of such default, and if such default is not timely cured, then Lessee may terminate this Agreement regardless of
the exercise of such renewal period and without the payment of any fee or liquidated damages. 
 (b) If Manager desires to extend the Term
for a renewal period, it shall give Lessee Notice to that effect not less than ninety (90) days prior to the expiration of the Initial Term, in the case of the first five (5) year renewal or, in the case of a second five (5) year
renewal period, ninety (90) days prior to the expiration of the first five (5) year renewal period. Lessee shall have thirty days in which to respond to such notice and either agree to such renewal

  
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period or to provide notice to Manager of its intent not to extend the Term for the proposed renewal period. If Lessee gives notice of its intent not to renew the Term, the Expiration Date shall
be the last day of the then current Term and Lessee shall pay Manager within ninety (90) days of such Expiration Date a Termination Fee equal to the average monthly Management Fee paid to Manager over the twelve months immediately preceding the
Expiration Date (the “Termination Fee”); provided, however that no Termination Fee shall be payable if the Manager is in default of this Agreement at the end of the Term. 

(c) Notwithstanding the expiration or earlier termination of the Term, Lessee and Manager agree that the obligations of Lessee to pay, remit,
reimburse and to otherwise indemnify Manager for any and all expenses and fees incurred or accrued by Manager pursuant to the provisions of this Agreement prior to the expiration or earlier termination of the Term (or actually incurred by Manager
after the termination) shall survive Termination, provided such expenses and fees have been incurred consistent with the then current terms of this Agreement and the applicable Annual Operating Budget, including, without limitation but only to the
extent so consistent, all costs, expenses and liabilities arising from the termination of the Premises’ employees such as accrued vacation and sick leave, severance pay and other accrued benefits, employer liabilities pursuant to the
Consolidated Omnibus Budget Reconciliation Act and employer liabilities pursuant to the Worker Adjustment and Retraining Notification Act and pursuant to the standard operating procedures and policies of Manager then in effect as set forth in
Manager’s employee handbook. In addition, subject to Section 19.2 below and the foregoing sentence, upon Termination of this Agreement, Lessee and Manager shall have no further obligations to one another pursuant to this Agreement, except
that Section 2.2, obligations to make payments under Section 2.3 or Section 9.5, Section 9.7, the last sentence of Section 15.1, obligations to make payments of termination fees pursuant to Article XVIII, Article XXIV,
Article XXV, Article XXVII, and Section 28.13 shall survive Termination. 
 2.2 Actions to be taken upon Termination. Upon a
Termination of this Agreement, the following shall be applicable: 
 (a) In addition to any monthly statements required to be provided
pursuant to Section 15.2, Manager shall, within forty-five (45) days after Termination of this Agreement, prepare and deliver to Lessee a final accounting statement with respect to the Hotel, in form and substance consistent with the
statements provided pursuant to Section 15.2, along with a statement of any sums due from Lessee to Manager pursuant hereto, dated as of the date of Termination. Within thirty (30) days after the receipt by Lessee of such final accounting
statement, the parties will make whatever cash adjustments are necessary pursuant to such final statement subject to the right of Lessee or Landlord to require audit. The cost of preparing such final accounting statement and audit, if any, shall be
a Deduction. 
 (b) As of the date of the final accounting referred to in subsection (a) above, Manager shall release and transfer to
Lessee any of Lessee’s funds which are held or controlled by Manager with respect to the Hotel, with the exception of funds to be held in escrow pursuant to Section 9.5. During the period between the date of Termination and the date of
such final accounting, Manager shall pay (or reserve against) all Deductions which accrued (but were not paid) prior to the date of Termination, using for such purpose any Gross Revenues which accrued prior to the date of Termination. 

  
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 (c) Lessee shall make available to Manager such books and records respecting the Hotel (including
those from prior years, subject to Manager’s reasonable records retention policies in accordance with applicable law and legal requirements) provided to Lessee pursuant to Section 15.1 as will be needed by Manager to prepare the accounting
statements, in accordance with the Uniform System of Accounts, for the Hotel for the year in which the Termination occurs and for any prior year. 

(d) Manager shall (to the extent permitted by Legal Requirements) assign to Lessee, or to any other manager employed by Lessee to operate and
manage the Hotel, all operating licenses, including but not limited to any liquor license, for the Hotel which have been issued in Manager’s name; provided that if Manager has expended any of its own funds in the acquisition of any of such
licenses, Lessee shall reimburse Manager therefore if it has not done so already. 
 (e) Lessee agrees that Hotel reservations and any and
all contracts made in connection with Hotel convention, banquet or other group services made by Manager in the ordinary and normal course of business consistent with this Agreement, for dates subsequent to the date of Termination and at rates
prevailing for such reservations at the time they were made, shall be honored and remain in effect after Termination of this Agreement except to the extent terminable pursuant to the terms of such reservations or contracts. 

(f) Manager shall cooperate with the new operator of the Hotel as to effect a smooth transition and shall peacefully vacate and surrender the
Hotel to Lessee, including the surrender of the books and records pertaining to the Hotel and any alcoholic beverage license and restaurant permits which are transferable. 

(g) Manager and Lessee agree to use best efforts to resolve any disputes amicably and promptly under this Section 2.2 to effect a smooth
transition of the Hotel to Lessee and/or Lessee’s new manager. 
 2.3 Early Termination Rights, Liquidated Damages. 

(a) Termination Upon Sale. Upon Notice to Manager, Lessee shall have the option to terminate this Agreement with respect to the Hotel
effective as of the closing of the Sale of the Hotel to a third party. Such Notice shall be given at least sixty (60) days in advance (unless otherwise required by Legal Requirements, in which case Lessee shall provide such additional notice in
order to comply with such Legal Requirements). Lessee shall, in connection with such Sale, by a separate document reasonably acceptable to Lessee and Manager, indemnify and save Manager harmless against any and all losses, costs, damages,
liabilities and court costs, claims and expenses, including, without limitation, reasonable attorneys’ fees arising or resulting from the failure of Lessee or such prospective purchaser to provide any of the services contracted for in
connection with the business booked for the Hotel to, and including, the date of such Termination, in accordance with the terms of this Agreement, including without limitation, any 

  
 14 

 
and all business so booked as to which facilities and/or services are to be furnished subsequent to the date of Termination, provided that any settlement by Manager of any such claims shall be
subject to the prior written approval of Lessee which shall not be unreasonably withheld, conditioned or delayed. If this Agreement is terminated pursuant to this Section 2.3(a) with respect to the Hotel, then Lessee shall pay to Manager on
such termination, a termination fee as liquidated damages and not as a penalty (provided that an Event of Default by Manager is not then existing beyond any cure or grace periods set forth in this Agreement) in an amount equal to the lesser of
(i) the Management Fees that were paid to Manager with respect to such Hotel for the twelve calendar months immediately preceding the closing date of such sale or (ii) the Management Fees to be paid to Manager for that number of months
immediately preceding the closing date for such Sale equal to the number of months remaining on the then current Term (a “Sale Termination Fee”). No Sale Termination Fee will be payable to Manager if an Event of Default by Manager
has occurred and remain uncured beyond any applicable cure period as of the date of Termination. 
 (b) Substitution of Hotel.
Notwithstanding the foregoing, if, in the event of the termination of this Agreement prior to the expiration of the Term pursuant to Section 2.3(a) a Sale Termination Fee becomes payable by Lessee, Lessee may (in its sole and absolute
discretion) elect to offer to Manager the opportunity to manage another hotel leased to Lessee or an Affiliate that is reasonably comparable to the Hotel in size, number of rooms, quality of operation, market and geographic location and Gross
Revenue (the “Substitute Hotel”). Manager shall have thirty (30) days from receipt of such notice from Lessee offering the management of the Substitute Hotel to accept such offer. If Manager accepts the offer to manage the
Substitute Hotel, Manager and Lessee will execute a new management agreement on terms consistent with the requirements of the Master Agreement and if the offer to manage the Substitute Hotel is made within 180 days of the Termination Date of this
Agreement, no Sale Termination Fee shall be payable by Lessee and if such a fee has previously been paid by Lessee, Manager shall be obligated to reimburse such fee upon acceptance of Lessee’s offer. In the event the Substitute Hotel offered by
Lessee to Manager is within the competitive set or within a five mile radius of another hotel managed by Manager (the “Competitive Hotel”), Manager shall give Lessee notice of such, and if Manager is not precluded from managing the
Substitute Hotel by the owner or management agreement of the Competitive Hotel, Lessee shall either waive any restriction that would arise under a new management agreement comparable to the restriction in Section 24.4 or give manager notice
that it will not waive such restriction. If Lessee waives the restriction, Manager and Lessee shall enter into a new management agreement reflecting such waiver and no Sale Termination Fee shall be payable by Lessee and if such a fee has previously
been paid by Lessee, Manager shall be required to reimburse Lessee. If Lessee does not waive such restriction the offer shall be deemed to have been revoked and any applicable Sale Termination Fee shall become payable per Section 2.3(a). If
Manager is precluded from managing the Substitute Hotel by the owner or management agreement of the Competitive Hotel and Lessee fails to offer Manager an alternative Substitute Hotel that is not subject to such a restriction, a Sale Termination Fee
will be payable per Section 2.3(a). If Lessee offers to Manager the opportunity to manage a Substitute Hotel and Manager is not subject to a contractual restriction that precludes Manager from managing the proposed Substitute Hotel and Manager
rejects or fails to accept Lessee’s offer to manage the proposed Substitute Hotel, no Sale Termination Fee shall be payable by Lessee. 

  
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 ARTICLE III 

PREMISES 
 Manager shall be responsible, at
the sole cost and expense of Lessee and subject to Lessee making adequate funds available to Manager, for keeping and maintaining the Premises fully equipped in accordance with plans, specifications, construction safety and fire safety standards,
and designs pursuant to applicable Legal Requirements, the Brand Standards (if applicable), the standards and requirements of a Franchisor pursuant to any applicable Franchise Agreement, any Hotel Mortgage, the Lease, the Capital Improvement
Budgets, the Applicable Standards and the Annual Operating Budgets approved pursuant to the terms hereof, subject in all respects to performance by Lessee of its obligations pursuant to this Agreement. 

ARTICLE IV 
 APPOINTMENT
OF MANAGER 
 4.1 Appointment. Lessee hereby appoints Manager as its sole, exclusive and continuing operator and manager to
supervise and direct, for and at the expense of Lessee, the management and operation of the Premises under the terms and conditions set forth herein. In exercising its duties hereunder, Manager shall act as agent and for the account of Lessee.
Manager hereby accepts said appointment and agrees to manage the Premises during the Term of this Agreement under the terms and conditions set forth herein. 

4.2 Delegation of Authority. The operation of the Premises shall be under the exclusive supervision and control of Manager who, except
as otherwise specifically provided in this Agreement, shall be responsible for the proper and efficient management and operation of the Premises in accordance with this Agreement, the Applicable Standards, the Lease, the Franchise Agreement, if any,
any Hotel Mortgage, the Capital Improvement Budget and the Annual Operating Budget and, if applicable, the Brand Standards. Subject to the terms of such agreements and budgets, Manager shall have discretion and control in all matters relating to the
management and operation of the Premises, including, without limitation, charges for rooms and commercial space, the determination of credit policies (including entering into agreements with credit card organizations), food and beverage service and
policies, employment policies, procurement of inventories, supplies and services, promotion, advertising, publicity and marketing, and, generally, all activities necessary for the operation of the Premises. Manager shall also be responsible for the
receipt, holding and disbursement of funds and maintenance of bank accounts in compliance with the Cash Management Agreements, if applicable. 

4.3 Contracts, Equipment Lease and Other Agreements. Manager is hereby authorized to grant concessions, lease commercial space and
enter into any other contract, equipment lease, agreement or arrangement pertaining to or otherwise reasonably necessary for the normal operation of the Premises (such concession, lease, equipment lease, contract, agreement or arrangement
hereinafter being referred to individually as a “Contract” and collectively as “Contracts”) on behalf of Lessee, as may be necessary or advisable and reasonably prudent business judgment in connection with the
operation of the Premises and consistent with the Annual Operating Budget, and subject to any restrictions imposed by the Franchise Agreement, Lease, any Hotel Mortgage and this Agreement, and subject to Lessee’s

  
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prior written approval of: (i) any Contract which provides for a term exceeding one (1) year (unless such Contract is cancellable on thirty days notice without cost, premium or penalty
exceeding $50,000.00) or (ii) any tenant space lease, license or concession concerning any portion of the public space in or on the Premises for stores, office space, restaurant space, or lobby space. Lessee’s approval of any Contract
shall not be unreasonably withheld, delayed or conditioned. Unless otherwise agreed, all Contracts for the Premises shall be entered into in Lessee’s name and submitted to Lessee for execution it being understood and agreed that no such
contract will come into force or be effective absent Lessee’s signature, which Lessee agrees not to unreasonably withhold. 
 4.4
Alcoholic Beverage/Liquor Licensing Requirements. With respect to any licenses and permits held by Lessee or any of its subsidiaries for the sale of any liquor and alcoholic beverages at any of the Premises, Manager agrees, at no cost or
expense to Manager, as part of its management duties and services under this Agreement, to fully cooperate with any applicable liquor and/or alcoholic beverage authority and to assist Lessee with any documentation and other requests of such
authority to the extent necessary to comply with any licensing and/or permitting requirements applicable to the Premises. 
 ARTICLE V

 REPRESENTATIONS AND WARRANTIES 

5.1 Lessee Representations. Lessee, in order to induce Manager to enter into this Agreement, hereby represents and warrants to Manager
as follows: 
 5.1.1 The execution of this Agreement is permitted by the Certificate of Formation and limited liability company agreement of
Lessee and this Agreement has been duly authorized, executed and delivered on behalf of Lessee and constitutes the legal, valid and binding obligation of Lessee enforceable in accordance with the terms hereof; 

5.1.2 There is no claim, litigation, proceeding or governmental investigation pending, or, to the best knowledge and belief of Lessee,
threatened, against or relating to Lessee, the properties or businesses of Lessee or the transactions contemplated by this Agreement which does, or may reasonably be expected to, materially or adversely affect the ability of Lessee to enter into
this Agreement or to carry out its obligations hereunder, and, to the best knowledge and belief of Lessee, there is no basis for any such claim, litigation, proceeding or governmental investigation except as has been fully disclosed in writing by
Lessee to Manager; 
 5.1.3 Neither the consummation of the transactions contemplated by this Agreement on the part of Lessee 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 Lessee is a party or by which it is bound; 
 5.1.4 No approval of any third party (including any
Landlord or the Holder of any Hotel Mortgage in effect as of the date of this Agreement) is required for Lessee’s execution, delivery and performance of this Agreement that has not been obtained prior to the execution hereof; 

  
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 5.1.5 Lessee holds all required governmental approvals required (if applicable) to be held by it
to lease the Hotel; and 
 5.1.6 As of the date of this Agreement there are no defaults under the Lease. 

5.2 Manager Representations. Manager, in order to induce Lessee to enter into this Agreement, hereby represents and warrants to Lessee
as follows: 
 5.2.1 The execution of this Agreement is permitted by the limited liability company operating agreement of Manager and this
Agreement has been duly authorized, executed and delivered on behalf of Manager and constitutes a legal, valid and binding obligation of Manager enforceable in accordance with the terms hereof; 

5.2.2 There is no claim, litigation, proceeding or governmental investigation pending, or, to the best knowledge and belief of Manager,
threatened, against or relating to Manager, the properties or business of Manager or the transactions contemplated by this Agreement which does, or may reasonably be expected to, materially or adversely affect the ability of Manager to enter into
this Agreement or to carry out its obligations hereunder, and, to the best knowledge and belief of Manager, there is no basis for any such claim, litigation, proceeding or governmental investigation, except as has been fully disclosed in writing by
Manager to Lessee; 
 5.2.3 Neither the consummation of the transactions 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; 
 5.2.4 No approval of any third party is required for
Manager’s execution, delivery and performance of this Agreement that has not been obtained prior to the execution and delivery hereof; 

5.2.5 Manager holds all required governmental approvals required to be held by it to perform its obligations under this Agreement; and 

5.2.6 Manager qualifies as an Eligible Independent Contractor, and during the Term of this Agreement, agrees to continue to qualify as an
Eligible Independent Contractor. 
 ARTICLE VI 

OPERATION 
 6.1 Name of
Premises, Standard of Operation. During the Term of this Agreement, the Premises shall be known as a hotel licensed with the applicable Franchisor as noted on Exhibit C or, if there is no Franchise Agreement applicable to such Hotel, the name of
the Hotel 

  
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shall be that specified by the Lessee and referenced in Exhibit A, with additional identification as may be necessary to provide local identification, provided Lessee has obtained and is
successful in continuously maintaining the right to so operate the Premises. Manager agrees to cooperate with Lessee and use its commercially reasonable efforts to qualify as a permitted manager pursuant to the Franchise Agreement. Manager agrees to
manage the Premises, for the account of Lessee, and, in accordance with the Annual Operating Budget and Applicable Standards. In the event of termination of a Franchise Agreement for the Premises, Manager shall operate the Premises under such other
franchise agreement, if any, as Lessee enters into or obtains as franchisee or, if no such Franchise is entered into, Manager shall operate the Premises consistent with the Brand Standards. If the name of a Franchisor’s hotel system is changed,
Lessee shall have the right to change the name of the Hotel to conform thereto. 
 Notwithstanding the foregoing or any other provision in
this Agreement to the contrary, Manager’s obligation with respect to operating and managing the Hotel in accordance with any Hotel Mortgage, Ground Lease, the Lease, any Franchise Agreement and the CCRs shall be limited to the extent
(i) true and complete copies thereof have been made available to Manager by Lessee reasonably sufficient in advance to allow Manager to manage the Hotel in compliance with such documents, and (ii) the provisions thereof and/or compliance
with such provisions by Manager (a) are applicable to the day-to-day management, maintenance and routine repair and replacement of the Hotel, the FF&E or any portion thereof, (b) do not require contribution of funds from Manager,
(c) do not materially increase Manager’s obligations hereunder or materially decrease Manager’s rights or benefits hereunder, (d) except as provided in Section 24.4, do not limit or restrict, or attempt to limit or restrict
any corporate activity or transaction with respect to Manager or any Manager Affiliate Entity or any other activity, transfer, transaction, property or other matter involving Manager or the Manager Affiliate Entities other than at the Hotel and
(e) are otherwise within the scope of Manager’s duties under this Agreement. Lessee acknowledges and agrees, without limiting the foregoing, that any failure of (i) Lessee to comply with the provisions of any Hotel Mortgage, Ground
Lease, the Lease, any Franchise Agreement and the CCRs or Legal Requirements or (ii) Manager to comply with the provisions of any such agreements or Legal Requirements arising out of, in the case of both (i) and (ii), (A) the
condition of the Hotel, and/or the failure of the Hotel to comply with the provisions of such agreements, prior to the Commencement Date, (B) construction activities at the Hotel prior to the Commencement Date, (C) inherent limitations in
the design and/or construction of, location of the Hotel and/or parking at the Hotel prior to the Commencement Date, and/or (D) failure of Lessee to provide funds, from operations or otherwise, sufficient to allow timely compliance with the
provisions of the Applicable Standards or the Lease, any Hotel Mortgage, any Franchise Agreement and/or the CCRs through reasonable and customary business practices and/or (E) Lessee’s failure to approve any matter reasonably requested by
Manager, previously agreed to jointly by Manager and Lessee, with respect to the compliance of such items, shall not be deemed a breach by Manager of its obligations under this Agreement. 

6.2 Use of Premises. Manager shall use the Premises solely for the operation of the Hotel in accordance with the Applicable Standards
and for all activities in connection therewith which are customary and usual to such an operation. Subject to the terms of this Agreement, Manager shall comply with and abide by all applicable Legal Requirements, and the requirements of any
insurance companies covering any of the risks against which the Premises 

  
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are insured, any Hotel Mortgage, the Ground Lease, the Lease, and the Franchise Agreement and any other contract entered into by or on behalf of the Lessee in accordance with the terms hereof. If
there are insufficient funds in the Operating Account to make any expenditure required to remedy non-compliance with such Legal Requirements or with the requirements of any Hotel Mortgage, the Ground Lease, the Lease, or the Franchise Agreement or
applicable insurance, Manager shall promptly notify Lessee of such non-compliance. If Lessee fails to make funds available for the expenditure so requested by Manager within thirty (30) days, (i) it shall not be an Event of Default
hereunder, and (ii) Lessee agrees to indemnify and hold Manager harmless from and against any and all costs, expenses and other liabilities incurred by Manager resulting from such non-compliance (which such indemnity shall survive any
termination of this Agreement). 
 6.3 Group Services. Manager may cause to be furnished to the Premises certain services
(“Group Services”) which are furnished generally on a central or regional basis to other hotels or other properties managed by Manager or any Manager Affiliate Entity and which benefit the Hotel. Manager shall assure that the costs
and expenses incurred in providing Group Services to the Premises shall have been allocated to the Premises on a pro-rata basis consistent with the method of allocation agreed to in writing by Lessee to all of Manager’s (and any Manager
Affiliate Entities’) hotels or other properties receiving the same services, shall be incurred at a cost consistent with the Annual Operating Budget and shall constitute Deductions subject to audit of the amount so allocated to the Hotel. All
Group Services provided by Manager shall be at the actual costs (without mark up fee or profit to Manager or any Manager Affiliate Entity, but including salary and employee benefit costs and costs of equipment used in performing such services and
overhead costs, and taking into account any rebate, give-up or participation in any reciprocal business arrangement with Manager or any Manager Affiliate Entity) of Group Services for the benefit of all of Manager’s hotels receiving the same
services, and shall be of a quality and at a price comparable or better to which Manager could obtain from other providers for similar services. 

6.4 Right to Inspect. Lessee, the Affiliates of Lessee, the Landlord (to the extent permitted under the Lease), any Holder under any
Hotel Mortgage (to the extent permitted under the Hotel Mortgage), and their respective agents, shall have access to the Premises at any and all reasonable times upon demand for any purpose. Manager will be available to consult with and advise such
parties, at their reasonable request, concerning all policies and procedures affecting all phases of the conduct of business at the Hotel. These rights shall be in addition to those in Article XV in regard to access to books and records. 

6.5 Reports. Manager will provide Lessee with written reports regarding the operations of the Premises in the format and for such
periods as provided in Exhibit D. The Manager shall maintain and manage a dedicated data site related to the Premises and provide access to such data site to Lessee and its Affiliates as identified by Lessee which data site shall include information
regarding the Premises as provided in Exhibit D manager will maintain such data site and provide access to Lessee and its Affiliates as identified by Lessee during the Term and for a period of ten years following the end of the Term or the earlier
termination of this Agreement or make such other arrangements regarding access to such data as may be agreed to by Lessee. In addition, Manager shall provide Smith Travel Research or its successor with daily

  
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information regarding the operation of the Premises which information will be segmented on the basis of transient, group and contract revenues consistent with the requirements of Franchisor or as
otherwise requested by Lessee. In addition, Lessee and Manager will conduct bi-weekly telephonic meetings regarding operations as requested by Lessee and monthly telephonic meetings regarding the prior month’s financial and operating
performance. 
 ARTICLE VII 

WORKING CAPITAL AND INVENTORIES 

7.1 Working Capital and Inventories. Lessee shall cause funds to be deposited in one or more operating accounts established pursuant to
Article XIV, in amounts sufficient to operate the Premises in accordance with the Annual Operating Budget, including the establishment and maintenance of Working Capital and Inventories. All Working Capital and Inventories are and shall remain the
property of Lessee. Lessee acknowledges that liabilities arising in connection with the operation and management of the Hotel including, without limitation, all Deductions, incurred in accordance with the terms of this Agreement, are and shall
remain the obligations of Lessee, and Manager shall have no liability therefore unless otherwise expressly provided herein. 
 7.2 Fixed
Asset Supplies. Lessee shall provide the funds necessary to supply the Premises initially with Fixed Asset Supplies necessary to commence operations of the Hotel consistent with the requirements of the Franchise Agreement or the Brand Standards,
as applicable, and as reasonably determined by Manager consistent with the cost budgeted therefore in the Annual Operating Budget and otherwise consistent with the intent of the parties that the level of such supplies will be adequate for the proper
and efficient operation of the Premises at the Applicable Standards. Fixed Asset Supplies shall remain the property of Lessee. 
 ARTICLE
VIII 
 MAINTENANCE, REPLACEMENT AND CHANGES 

8.1 Routine and Non-Routine Repairs and Maintenance. Manager, at the expense of Lessee and subject to adequate funds being made
available by Lessee, shall use commercially reasonable efforts to maintain the Premises in good repair and condition as is required by the Applicable Standards. Manager, on behalf of Lessee, shall make or cause to be made such routine maintenance,
repairs and minor alterations as Manager from time to time deems reasonably necessary for such purposes, the cost of which: (i) can be expensed under GAAP, (ii) shall be paid from Gross Revenues, and treated as a Deduction, and
(iii) is consistent with the Annual Operating Budget. In addition, Lessee shall make or cause to be made such non-routine repairs, replacements and improvements which constitute capital expenditures pursuant to GAAP, either to the
Premises’ building or its fixtures, furniture, furnishings and equipment (“FF&E”), pursuant to the Capital Improvement Budget approved by Lessee and Landlord, the cost of which shall be paid for by Landlord. Manager and
Lessee shall use their respective commercially reasonable efforts to prevent any liens from being filed against the Premises which arise from any maintenance, changes, repairs, alterations, improvements, renewals or replacements in or to the
Premises. Lessee and Manager shall cooperate fully in obtaining the release of any such liens. If the lien arises as a result of the fault of either party, then the party at fault shall bear the cost of obtaining the lien release. All changes,
repairs, alterations, improvements, renewals or replacements made pursuant to this Article VIII shall be the property of Lessee. 

  
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 8.2 Capital Improvement Budget. 

(a) Manager shall prepare a budget (“Capital Improvement Budget”) of the expenditures necessary for replacement of FF&E
and building replacements of the nature contemplated by Section 8.1 during the ensuing Fiscal Year and shall provide such Capital Improvement Budget to Lessee and Landlord for approval at the same time Manager submits the Annual Operating
Budget. The Capital Improvement Budget shall not be deemed accepted by Lessee and Landlord in the absence of their respective express written approval. Not later than thirty (30) days after receipt by Lessee and Landlord of a proposed Capital
Improvement Budget (or such longer period as Lessee and Landlord may reasonably request on Notice to Manager), Lessee and/or Landlord may deliver a Notice (a “CIB Objection Notice”) to Manager stating that Lessee and/or Landlord
objects to any information contained in or omitted from such proposed Capital Improvement Budget and setting forth the nature of such objections with reasonable specificity. Failure of Lessee and/or Landlord to deliver a CIB Objection Notice shall
be deemed rejection of Manager’s proposed Capital Improvement Budget in its entirety. Upon receipt of any CIB Objection Notice, Manager shall, after consultation with Lessee and Landlord, modify the proposed Capital Improvement Budget, taking
into account Lessee’s and/or Landlord’s objections, and shall resubmit the same to Lessee and Landlord for Lessee’s approval within fifteen (15) days thereafter, and Lessee and/or Landlord may deliver further CIB Objection
Notices (if any) within fifteen (15) days thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Capital Improvement Budget in question is accepted and consented to by
Lessee and Landlord). Notwithstanding anything to the contrary set forth herein, Lessee and Landlord shall have the right at any time subsequent to the acceptance and consent with respect to any Capital Improvement Budget, on Notice to Manager, to
revise such Capital Improvement Budget or to request that Manager prepare for Lessee’s and/or Landlord’s approval a revised Capital Improvement Budget, taking into account such circumstances as Lessee and Landlord deem appropriate;
provided, however, that the revision of a Capital Improvement Budget shall not be deemed a revocation of Manager’s authority with respect to such actions as Manager may have already taken prior to receipt of such revision notice in implementing
a previously approved budget or plan. 
 (b) Manager shall, in accordance with and subject to the Capital Improvement Budget described in
Section 8.2(a), from time to time make such substitutions and replacements of or renewals to FF&E and non-routine repairs and maintenance as described in Section 8.1 as it deems necessary to maintain the Hotel as required by this
Agreement. Except as hereinafter provided, no expenditures will be made except as otherwise provided in the Capital Improvement Budget without the approval of Lessee and Landlord and provided further, however, if there are expenditures which are
required by reason of any emergency, Manager shall immediately notify Landlord of same, and Manager shall be authorized to take appropriate remedial action without such approval whenever there is clear and present danger to life, limb or property of
the Hotel or its guests or employees. The cost of such changes, repairs, alterations, improvements, renewals, or replacements will be paid for by Landlord. Manager will not be considered in breach of this Agreement if expenditures required by the
Franchise Agreement, by Legal Requirements, and by 

  
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requirements necessary for the safe and orderly operation of the hotel are not available or withheld at Lessee’s discretion. Manager must give reasonable and timely written notice of such
requirements, to Lessee, as they arise, such that Lessee may make prudent and timely decisions regarding same. 
 (c) All changes, repairs,
alterations, improvements, renewals or replacements made pursuant to this Article VIII shall be the property of Landlord. 
 (d) It is the
intent of Manager and Lessee to maintain the Premises in conformance with the Applicable Standards, subject to adequate funds being made available by Lessee and as limited by Manager’s obligations to use commercially reasonable efforts. As the
Hotel ages, if the Capital Improvement Budget prepared in good faith by Manager and approved by Lessee and Landlord is insufficient for purposes of allowing the Premises to conform with the Applicable Standards, Lessee, Landlord and Manager will
consider the matter and Lessee and Landlord may elect to provide the additional funds required. 
 (e) In conformance with the Applicable
Standards, Manager shall refrain from making any alterations, modifications or changes (other than alterations, modifications or changes requested by Lessee or Landlord) in any respect to the nature, design, appointments, placement or function of
any furniture, fixtures, equipment or design features of the Hotel (each such alteration or change a “Changed Condition”). Manager shall promptly remedy each Changed Condition at its sole cost and expense. Manager’s restoration
of a Changed Condition shall be effected in accordance with the notice and time periods set forth in Section 19.1(f). 
 8.3
Management of Renovation Projects. 
 (a) At the election of Landlord, in its sole discretion, Manager may be requested to manage,
coordinate, plan and/or execute a major repositioning of the Hotel undertaken by the Landlord (a “Major Renovation”). 

(b) In the event Manager is selected by Landlord to assist in a Major Renovation, Manager shall be paid a project management fee (herein, the
“Project Management Fee”) equal to five percent (5%) of the total project costs (both hard and soft costs) associated with the implementation of the budget for such Major Renovation (the “Major Renovation
Budget”). If the Manager is selected by Landlord to assist in a Major Renovation, the Major Renovation Budget shall be developed and approved by Landlord and Lessee and provided to Manager together with Lessee’s written request to
manage the Major Renovation. Manager shall have ten (10) days from the date of such notice to accept such engagement. Any failure by Manager to accept such an engagement within the specified period shall be deemed a rejection of such offer. If
the Manager is selected and agrees to assist in a Major Renovation, the Project Management Fee will be payable monthly in arrears based upon the prior calendar month’s total expenditures under the Major Renovation Budget. The Project Management
Fee shall be accounted for and documented and consistent with the requirements of Section 11.2 herein. Any onsite or dedicated personnel required for the direct supervision of the implementation of a Major Renovation Budget or other renovation
project will be a direct cost to, and shall be reimbursed by, the Landlord. The Landlord shall be responsible for funding the Major Renovation Budget. 

  
 23 

 (c) Except as otherwise provided herein, in no event shall Manager or an affiliate or employee of
Manager directly or indirectly receive any kick backs, rebates, cash incentives, sponsorship fees, administration fees, concessions, profit participations, investment rights or similar payments, benefits or economic consideration from or in, as
applicable, vendors or suppliers of goods or services to the Hotel. Manager agrees that any such amounts or benefits derived shall be disclosed to, accounted for, and held in trust for the benefit of Lessee or Landlord (as applicable). 

(d) Any additional fees or charges payable to Manager shall, prior to being incurred or paid, be submitted for approval by the Landlord with
disclosure of all material terms. 
 ARTICLE IX 

EMPLOYEES 
 9.1 Employee
Hiring. Manager will hire, train, promote, supervise, direct the work of and discharge all personnel working on the Premises. Manager shall be the sole judge of the fitness and qualification of such personnel and is vested with absolute
discretion in the hiring, discharging, supervision, and direction of such personnel during the course of their employment and in the operation of the Premises; provided, however, that the hiring of the General Manager, and the Director of Sales
shall be subject to the Lessee’s consent which consent shall not be unreasonably withheld, delayed or conditioned. Landlord and Manager shall confer on and jointly address any and all issues associated with collective bargaining agreements or
union representation of employees at the Hotel. Landlord will not unreasonably withhold, delay or condition dissent regarding the unionization of employees. 

9.2 Costs, Benefit Plans. Manager shall fix the employees’ terms of compensation and establish and maintain all policies relating
to employment, so long as they are reasonable and in accordance with the Applicable Standards and the Annual Operating Budget. Manager shall establish with input from Lessee the incentive compensation matrix for the Hotel’s General Manager and
the other senior managers of the Hotel which matrix shall be subject to Lessee’s consent, which consent will not be reasonably withheld, delayed or conditioned. Without limiting the foregoing, Manager may, consistent with the Annual Operating
Budget, enroll the employees of the Hotel in pension, medical and health, life insurance, and similar employee benefit plans (“Benefit Plans”) substantially similar to plans reasonably necessary to attract and retain employees and
generally remain competitive; provided, however, that the Lessee shall have the right to review any Benefit Plans applicable to Hotel employees, including umbrella plans available to all employees of the Manager, prior to such plans being offered to
Hotel employees and to review any modification to such plans prior to their implementation. The Benefit Plans may be joint plans for the benefit of employees at more than one hotel owned, leased or managed by Manager or Manager Affiliate Entities.
Employer contributions to such plans (including any withdrawal liability incurred upon Termination of this Agreement) and reasonable administrative fees (but without further markup by Manager), which Manager may expend in connection therewith, shall
be the responsibility of Lessee and shall be a Deduction. The administrative expenses of any joint plans will be equitably apportioned by Manager among properties covered by such plan. 

  
 24 

 9.3 Manager’s Employees. It is expressly understood and agreed that all such
personnel employed at the Hotel, including the General Manager of the Hotel, will be the employees of Manager for all purposes including, without limitation, federal, state and local tax and reporting purposes, but the expense incurred in connection
therewith will be a Deduction and for Lessee’s account. Manager shall use such care when hiring any employees as may be common to the hospitality business and consistent with Manager’s standards of operation. Manager acknowledges and
agrees that Lessee shall be entitled to all federal, state and/or local tax credits or benefits allowed to employers relating to the Hotel’s employees including, without limitation, the Work Opportunity Tax Credit, the Targeted Jobs Tax Credit,
and similar tax credits (provided that Lessee shall pay all incremental fees, if applicable, to qualify for such tax credits). Manager, in accordance with the Annual Operating Budget, may draw down from Gross Revenues all costs and expenses, of
whatever nature, incurred in connection with such employees, including, but not limited to, wages, salaries, on-site staff, bonuses, commissions, fringe benefits, employee benefits, recruitment costs, workmen’s compensation and unemployment
insurance premiums, payroll taxes, vacation, sick leave and Employee Claims (other than Excluded Employee Claims) (collectively, “Employee Costs and Expenses”). 

9.4 Special Projects – Corporate Employees. The costs, fees, compensation and other expenses of any persons (i) assigned on a
temporary basis by Manager to fill a vacant position or provide additional capacity at the Hotel or (ii) engaged by Manager to perform duties of a special nature, directly related to the operation of the Premises, shall be operating expenses,
payable from and consistent with the Annual Operating Budget and not the responsibility of Manager. The costs, fees, compensation and other expenses of those personnel of Manager assigned to special projects for the Hotel approved or deemed approved
by Lessee shall also be operating expenses payable by Lessee and not the responsibility of Manager. The daily per diem rate for those personnel shall be based upon the actual costs of Manager in providing its personnel for such special services or
projects, without mark-up fee or profit but including salary and employee benefit costs and costs of equipment used in performing such services, overhead costs, travel costs and long distance telephone. Such special services shall include, but not
be limited to, those matters which are not included within the scope of the duties to be performed by Manager hereunder and, if not provided by Lessee, would involve Lessee’s engagement of a third party to perform such services; for example,
special sales or marketing programs, market reviews, assistance in opening new food and beverage facilities, legal services, accounting services, tax services, insurance services, data processing, engineering personnel, and similar services. 

9.5 Termination. At Termination, subject to Section 2.1 above, Lessee shall reimburse Manager for costs and expenses incurred by
Manager which arise out of the termination of Manager’s employees at the Hotel, such as compensation in lieu of vacation and sick leave, severance pay (including a reasonable allowance for severance pay for Executive Employees of the Hotel, the
amount of such allowance not to exceed an amount equal to Manager’s then current severance benefits for such terminated Executive Employees, unless Lessee otherwise approves), unemployment compensation, employer liability pursuant to the
Consolidated Omnibus Budget Reconciliation Act (Cobra liability) and the Worker Adjustment and Retraining Notification Act (Warn Act) and other employment liability costs arising out of the termination of the employment of Manager’s employees
at the Premises (herein collectively 

  
 25 

 
called “Employee Related Termination Costs”). This reimbursement obligation shall not apply to any corporate personnel of Manager assigned to the Hotel for special projects or
who perform functions for Manager at the corporate level. In order to be reimbursable hereunder, any Employee Related Termination Costs must be pursuant to policies of Manager which shall be in writing, provided to Lessee, and no more expensive or
burdensome than those of other managers managing similar hotels in similar markets and geographical locations. They and any modification thereof shall be subject to review and the prior approval of Lessee. Manager shall be solely responsible for any
transfer costs incurred in connection with the transfer of Manager’s employees at the Hotel and such costs shall not constitute Employee Related Termination Costs. 

At Termination, an escrow fund shall be established from Gross Revenues (or, if Gross Revenues are not sufficient, with funds provided by Lessee) to reimburse
Manager for all reimbursable Employee Related Termination Costs; the amount of such escrow fund to be mutually agreed upon by the Manager and the Lessee for the purpose of paying outstanding invoices and termination costs for employees with the
remainder being transferred promptly to the Lessee. 
 9.6 Employee Use of Hotel. Manager, in its discretion, may (i) provide
lodging for Manager’s Executive Employees and corporate staff visiting the Hotel in connection with the performance of Manager’s services hereunder and allow them the use of the facilities of the Hotel, and (ii) provide the management
of the Hotel with temporary living quarters within the Hotel and the use of all facilities of the Hotel, in either case at a discounted price or without charge, as the case may be. Manager shall provide lodging at the Hotel for Lessee’s
employees, officers and directors visiting the Hotel and allow them the use of all facilities of the Hotel in either case without charge, except for recreational facilities for which a charge will apply. 

9.7 Non-Solicitation. During the term of this Agreement and for a period of two (2) years thereafter, unless an Event of Default
by Manager exists under this Agreement beyond applicable grace or cure periods, or the Agreement has been terminated as a result of an uncured Event of Default by Manager, Lessee agrees that it (and its Affiliates) will not, without the prior
written consent of Manager, either directly or indirectly, alone or in conjunction with any other person or entity, (i) solicit or attempt to solicit any general manager (each a “General Manager” and, collectively,
“General Managers”) of the Hotel or any other hotels managed by Manager, any of Manager’s Executive Employees or any of Manager’s corporate headquarter employees (including without limitation, the Group Managers as defined
in the Master Agreement) (the “Corporate HQ Employees”) (collectively, the General Manager, Executive Employees and Corporate HQ Employees are herein called the “Key Employees”) to terminate, alter or lessen Key
Employees’ employment or affiliation with Manager or to violate the terms of any agreement or understanding between any such Key Employee and Manager, as the case may be, or (ii) employ, retain, or contract with any Key Employee. 

ARTICLE X 
 BUDGET,
STANDARDS AND CONTRACTS 
 10.1 Annual Operating Budget. The Annual Operating Budget for the period beginning with the
Commencement Date and ending on December 31 of the year in which the Commencement Date occurs shall be the operating budget established by Lessee and Manager 

  
 26 

 
pursuant to the terms of the management agreement between Manager and Lessee in force immediately prior to the Commencement Date which agreement has terminated pursuant to the terms of the Master
Agreement (the Initial Operating Budget”). Thereafter, the Manager shall deliver, by a date to be reasonably determined by the Lessee but not later than November 1 of each succeeding Fiscal Year, to Lessee for approval by Lessee a
proposed budget for the Hotel, which may be revised from time to time (the “Annual Operating Budget”), setting forth in detail an estimated profit and loss statement for the next twelve (12) Accounting Periods, including a
schedule of hotel room rentals and other rentals for the Hotel, such budgets to be substantially in the format of Exhibit D attached hereto. The Manager may modify or amend a previously approved Initial Operating Budget or an Annual Operating
Budget, only in accordance with Section 10.2 or as otherwise provided in this Agreement. 
 10.2 Budgeting Process. The Annual
Operating Budget (other than the Initial Operating Budget) submitted to Lessee by Manager shall be subject to the approval of Lessee (such approval not to be unreasonably withheld, delayed or conditioned). The Annual Operating Budget (other than the
Initial Operating Budget) shall not be deemed accepted by Lessee in the absence of its express written approval. Not later than thirty (30) days after receipt by Lessee of a proposed Annual Operating Budget (other than the Initial Operating
Budget) (or such longer period as Lessee may reasonably request on Notice to Manager), Lessee may deliver an AOB Objection Notice with reasonable detail to Manager stating that Lessee objects to any information contained in or omitted from such
proposed Annual Operating Budget and setting forth the nature of such objections with reasonable specificity. Failure of Lessee to deliver express written approval of the Annual Operating Budget (other than the Initial Operating Budget) or an AOB
Objection Notice shall be deemed rejection of Manager’s proposed Annual Operating Budget in its entirety. Upon receipt of any AOB Objection Notice, Manager shall, after consultation with Lessee, modify the proposed Annual Operating Budget
taking into account Lessee’s objections, and shall resubmit the same to Lessee for Lessee’s approval within fifteen (15) days thereafter, and Lessee may deliver further AOB Objection Notices (if any) within fifteen (15) days
thereafter (in which event, the re-submission and review process described above in this sentence shall continue until the proposed Annual Operating Budget in question is accepted and consented to by Lessee). Notwithstanding anything to the contrary
set forth herein, Lessee shall have the right at any time subsequent to the acceptance and consent with respect to any Annual Operating Budget or Initial Operating Budget, on Notice to Manager, to revise such Initial Operating Budget or Annual
Operating Budget or to request that Manager prepare for Lessee’s approval a revised Initial Annual Budget or Annual Operating Budget, taking into account such circumstances as Lessee deems appropriate and with due consideration of input from
Manager regarding such revised budget; provided, however, that the revision of an Initial Operating Budget or Annual Operating Budget shall not be deemed a revocation of Manager’s authority with respect to such actions as Manager may have
already taken prior to receipt of such revision notice in implementing a previously approved budget or plan. In connection with the development of the Annual Operating Budget, Manager shall propose Gross Revenue, Gross Operating Profit and other
operating targets and goals as well as market based goals for occupancy rates, Revpar and average daily room rates utilizing the segmentation categories to be used by Manager to report property-level operating information to Smith Travel Research.
Manager shall provide such targets and goals to Lessee in connection with Lessee’s review of Manager’s proposed Annual Operating Budget. The final targets and goals relating to 

  
 27 

 
Gross Revenue, Gross Operating Profits, occupancy rates, average daily rates and other operating and market based goals shall be determined by Lessee in its reasonable discretion. In addition,
during the preparation of the Annual Operating Budget, Manager shall develop a revenue management strategy that will be reflected in the Annual Operating Budget and subject to review and approval by Lessee, which shall not be unreasonably withheld,
delayed or conditioned. Lessee and Manager acknowledge and agree that the Initial Annual Budget and Annual Operating Budgets are merely forecasts of operating revenues and expenses for an ensuing year and may be revised, by Lessee, from time to time
as business and operating conditions shall demand and with due consideration of input from Manager. However, Manager shall use its commercially reasonable efforts to operate the Premises in accordance with the Annual Operating Budget. The failure of
the Hotel to perform in accordance with such Annual Operating Budget shall not constitute an Event of Default by Manager of this Agreement. Manager shall not enter into contracts in excess of the amounts approved in the Annual Operating Budget
except as otherwise provided in this Agreement. 
 10.3 Operation in the Absence of an Approved Annual Operating Budget. If the
Annual Operating Budget for any subsequent calendar year has not been approved by Lessee by January 1 of that year, the Manager shall continue to operate under the respective Annual Operating Budget or Initial Operating Budget, as the case may
be, for the previous year with such adjustments as may be necessary to reflect (i) those expenses that vary in correlation with Gross Revenues and occupancy and (ii) deletion of non-recurring expense items set forth on the previous Annual
Operating Budget and increased insurance costs, taxes, utility costs, and debt service payments; however, no capital expenditures with respect to the Hotel (other than repairs in the ordinary course or emergency repairs) shall be made for that year
until an Annual Operating Budget for such year is approved, unless the Lessee specifically consents thereto in writing. 
 10.4 Budget
Meetings. At each budget meeting and at any additional meetings during a Fiscal Year reasonably called by Lessee or Manager, Manager shall consult with and respond to questions of Lessee on matters of policy concerning management, sales, room
rates, wage scales, personnel, general overall operating procedures, economics and operation and other matters affecting the operation of the Hotel and Lessee shall have the right to provide input on matters affecting the operation of the Hotel
which will be followed to the extent reasonable in Manager’s discretion so long as not in conflict with the terms of this Agreement. 

ARTICLE XI 
 FEES TO
MANAGER 
 11.1 Management Fee. As consideration for the services to be rendered by Manager pursuant to this Agreement as manager
and operator of the Premises, Manager shall be paid the following Base Management Fee and Incentive Management Fee (as such terms are hereinafter defined (collectively called the “Management Fee”) for the Hotel as follows: 

(a) Base Management Fee. The base management fee (“Base Management Fee”) for the Hotel shall be equal to a percentage
of the Gross Revenues of the Hotel pursuant to the following table, and shall be due monthly: 
  

					
	 Management Fee for Hotel
	 
		
	 January 1, 2015 through December 31, 2017
	  	 	2.65	% 
		
	 January 1, 2018 through December 31, 2019 and any renewal period following the Initial Term
	  	 	2.50	% 

  
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 (b) Incentive Management Fee. The incentive management fee (the “Incentive
Management Fee”), if any, will be due annually in arrears within 90 days of the end of the Fiscal Year and will be equal to ten percent (10%) of the amount by which the Gross Operating Profit of the Hotel, for a given year exceeds the
Budgeted Gross Operating Profit for such year. The Incentive Management Fee may not exceed 0.25% of Gross Revenues of the Hotel included in the incentive fee calculation. The calculation of the Incentive Management Fee will begin with the first full
Fiscal Year the Hotel is managed pursuant to this Agreement and will include the results of the Fiscal Year in which sold, based upon Gross Operating Profit compared with Budgeted Operating Profit through the date of closing of the sale of the
Hotel. 
 11.2 Accounting and Interim Payment. 

(a) Manager shall submit to Lessee a monthly statement pursuant to Section 15.2, an interim accounting to Lessee showing Gross Revenues,
Deductions, Gross Operating Profit and Net Operating Income before Debt Service. 
 (b) Calculations and payments of the Base Management Fee
for the Hotel made with respect to each Accounting Period shall be made on an interim basis using such monthly statements, and shall be accounted for cumulatively for each Fiscal Year. After the end of each Fiscal Year, Manager shall deliver to
Lessee audited financial statements pursuant to Section 15.3, which audited statements shall be controlling over the interim accountings. Any adjustments in Management Fees required by the audited statements shall be made promptly by the
parties. 
 (c) The Incentive Management Fee for the Hotel shall be calculated and earned on an annual basis for each Fiscal Year. If Lessee
raises no objection for any reason (excluding fraud) within one (1) year from receipt of annual accounting statements as provided herein (or for fraud within any applicable statute of limitations period, and if no statute of limitations period
exists, then in no event to exceed four (4) years from receipt of annual accounting statements as provided herein), such accounting shall be deemed to have been accepted by Lessee as true and correct, and Lessee shall have no further right to
question its accuracy. Manager will provide Lessee profit and loss statements for the current period and year-to-date, including actual, budget and last year comparisons, as required by Section 15.3. 

  
 29 

 ARTICLE XII 

INSURANCE 
 12.1
Insurance. Manager shall coordinate with Lessee, at all times during any period of development, construction, renovation, furnishing and equipping of the Premises, the procurement and maintenance in amount and scope as available for the hotel
lodging industry for hotels of similar type and in similar markets and geographical locations as the Hotel, public liability and indemnity and property insurance with minimum limits of liability as required by Lessee, the Landlord, any Holder, or
Franchisor, if applicable, and in accordance with the Annual Operating Budget to protect Lessee, Landlord, Manager, any Holder, and any Franchisor, if applicable, against loss or damage arising in connection with the development, construction,
renovation, furnishing and equipping of the Premises (and pre-opening activities, if applicable), including, without limitation, the following: 

12.1.1 Extended Coverage, Boiler, Business Interruption and Liability Insurance. 

(a) Building insurance on the “Special Form” (formerly “All Risk” form) (including earthquake and flood in reasonable
amounts as determined by Lessee) in an amount not less than 100% of the then “Full Replacement Cost” thereof (as defined below) or such other amount which is acceptable to Lessee, and personal property insurance on the “Special
Form” in the full amount of the replacement cost thereof; 
 (b) Insurance for loss or damage (direct and indirect) from steam
boilers, pressure vessels or similar apparatus, now or hereafter installed in the Hotel, in the minimum amount of $5,000,000 or in such greater amounts as are then customary or as may be reasonably requested by Lessee from time to time; 

(c) Loss of income insurance on the “Special Form”, in the amount of one year of the sum of Base Rent plus Percentage Rent (as such
terms are defined in and as determined pursuant to the Lease) for the benefit of Landlord, and business interruption insurance on the “Special Form” in the amount of one year of Gross Operating Profit, for the benefit of Lessee. All loss
of income insurance proceeds shall be part of Gross Revenues; 
 (d) Commercial general liability insurance, with amounts not less than
$1,000,000 combined single limit for each occurrence and $2,000,000.00 for the aggregate of all occurrences within each policy year, as well as excess liability (umbrella) insurance with limit of at least $35,000,000 per occurrence, covering each of
the following: bodily injury, death, or property damage liability per occurrence, personal and advertising injury, general aggregate, products and completed operations, and “all risk legal liability” (including liquor law or “dram
shop” liability if liquor or alcoholic beverages are served at the Hotel); 
 (e) Automobile insurance on vehicles operating in
conjunction with the Hotel with limits of liability of at least $1,000,000.00 combined, single limit coverage; and 
 (f) Insurance
covering such other hazards and in such amounts as may be customary for comparable properties in the area of the Hotel and that is available from 

  
 30 

 
insurance companies, insurance pools or other appropriate companies authorized to do business in the states where the Hotel is located at rates which are economically practicable in relation to
the risks covered as may be reasonably requested by Lessee and otherwise consistent with the costs allocated therefore in the Annual Operating Budget. 

12.1.2 Operational Insurance. 

(a) Workers’ compensation and employer’s liability insurance as may be required under Legal Requirements and as Manager and Lessee
may deem reasonably prudent covering all of Manager’s employees at the Premises; 
 (b) Crime insurance with limits and deductibles as
may be reasonably requested by Lessee, covering Manager’s employees 
 (c) Such other insurance in amounts as Landlord or Lessee in
their reasonable judgment deem advisable for their protection against claims, liabilities and losses arising out of or connected with its performance under this Agreement, and otherwise consistent with the costs allocated therefore in the Initial
Operating Budget or in the Annual Operating Budget. 
 12.2 Replacement Cost. The term “Full Replacement Cost” as
used herein shall mean the actual replacement cost of the Hotel requiring replacement from time to time including an increased cost of construction endorsement, if available, and the cost of debris removal. In the event either party to this
Agreement believes that full replacement cost (the then-replacement cost less such exclusions) has increased or decreased at any time during the Term, it shall have the right to have such full replacement cost re-determined. 

12.3 Increase in Limits. If either party to this Agreement at any time deems the limits of the personal injury or property damage under
the comprehensive commercial general liability insurance then carried to be either excessive or insufficient, such parties shall endeavor in good faith to agree on the proper and reasonable limits for such insurance to be carried and such insurance
shall thereafter be carried with the limits thus agreed on until further change pursuant to the provisions of this Section. 
 12.4
[Intentionally Omitted.] 
 12.5 Costs and Expenses. The cost of maintaining insurance and costs related thereto shall be the
responsibility of Lessee. Insurance premiums and any costs or expenses with respect to the insurance, including, without limitation, agent’s and consultant’s costs used to place insurance or adjust claims, shall be Deductions. Premiums on
policies for more than one year shall be charged pro-rata against Gross Revenues over the period of the policies and to the extent, through blanket policies, such premiums cover other hotels managed by Manager or owned by Lessee or any of its
Affiliates, they shall be allocated based on rooms, number of employees, values or other methods as determined to be reasonable by Manager and Lessee. Any reserves, losses, costs, damages or expenses which are uninsured, self-insured, or fall within
deductible limits shall be treated as a cost of insurance and shall be Deductions, subject to Article XXV. 

  
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 12.6 Policies and Endorsements. 

(a) Where permitted, all insurance provided for under this Article XII shall name Lessee as insured, and Manager, any Holder, the Landlord,
and, if required, the Franchisor, as additional insureds. The party procuring such insurance shall deliver to the other party certificates of insurance with respect to all policies so procured, including existing, additional and renewal policies
and, in the event of insurance about to expire, shall deliver certificates of insurance with respect to the renewal policies not less than ten (10) days prior to the respective dates of expiration. 

(b) All policies of insurance provided for under this Article XII shall, to the extent obtainable, be with insurance companies licensed or
authorized to do business in the state in which the Premises are located, with a minimum rating of A or better in the Best’s Insurance Guide and an S&P rating of at least A+V (or such higher rating if so required by any Holder, Landlord or
Franchisor), and shall have attached thereto an endorsement that such policy shall not be cancelled or materially changed without at least thirty (30) days’ prior written notice to Lessee. All insurance policies obtained pursuant to this
Article XII shall contain a standard waiver of subrogation endorsement. 
 12.7 Termination. Upon Termination of this Agreement
Lessee shall be obligated to assume any obligation arising with respect pending or contingent claims, including those which arise after Termination for causes arising during the Term of this Agreement. 

ARTICLE XIII 

[INTENTIONALLY OMITTED] 

ARTICLE XIV 
 BANK
ACCOUNTS 
 14.1 Operating Account. 

(a) All funds made available to Manager by Lessee for operation of the Premises shall be deposited into a checking account or accounts to be
established in the name of Lessee or Manager as agent for Lessee (the “Operating Account”), consistent with the requirements of any Cash Management Agreements, if any. The Operating Account shall be interest bearing when possible.
From time to time both Manager and Lessee shall designate signatory parties on such account and shall provide written notice of such designation or change in designation to the other party, and the signatures of such persons shall be formally and
expressly recognized by the bank in which such account or accounts are maintained. The bank or banks to be utilized shall be selected and approved by Lessee and Manager. All monies received shall be deposited in, including, but not limited to, Gross
Revenues, and expenses paid, including, but not limited to, Deductions, shall be paid from such bank checking account(s) except that Manager shall have the right to maintain separate payroll and petty cash funds and to make payments therefrom as

  
 32 

 
the same are customary and utilized in the lodging business. Such funds shall not be commingled with Manager’s funds or with the funds of any other owner of a hotel or with the Funds of any
other hotel leased to Lessee and managed by Manager. Lessee shall have the right, as a Deduction to the respective Hotel, to have access to, copy and audit said account or accounts or records thereof at any time. 

(b) Manager shall supply Lessee with Fidelity bonds or other insurance insuring the fidelity of authorized signatories to the Operating
Account and other accounts established in the name of Lessee or Manager as agent for Lessee. 
 14.2 [Intentionally Omitted.] 

14.3 Delivery of Operating Account Upon Termination. Upon expiration or termination of this Agreement and the payment to Manager of all
amounts due Manager as provided in Section 2.2 of this Agreement, all remaining amounts in the referenced accounts shall be transferred forthwith to Lessee, or made freely available to Lessee. 

14.4 Advance of Funds. Manager shall not be required to advance funds, and Manager shall not be obligated to incur any liability or
obligation for Lessee’s account, without assurance that necessary funds for the discharge thereof will be provided by Lessee. 
 14.5
[Intentionally Omitted.] 
 ARTICLE XV 

ACCOUNTING SYSTEM 
 15.1
Books and Records. Manager shall maintain an adequate and separate accounting system in connection with its management and operation of the Premises. The books and records shall be kept in accordance with GAAP and in the format specified in
the Uniform System of Accounts and shall be maintained at all times either on the Premises, at the principal office of Manager, or in storage, for at least three (3) years after the Fiscal Year to which the books and records relate. Lessee, the
Affiliates of Lessee, the Landlord (to the extent permitted under the Lease), any Holder (to the extent permitted under the Hotel Mortgage), any Franchisor (to the extent permitted under any applicable Franchise Agreement), or their respective
employees or duly authorized agents, shall have the right and privilege of examining, copying, reproducing and inspecting the books and records at any and all times; provided, however, that such books and records shall not include (i) employee
records which must remain confidential pursuant to either Legal Requirements or confidentiality agreements, or (ii) any Manager Intellectual Property. These rights shall be in addition to those specified in Section 6.4, or elsewhere in
this Agreement. Upon termination of this Agreement, all such books and records shall be turned over to Lessee so as to insure the orderly continuance of the operation of the Hotel; provided however, that all such books and records thereafter shall
be available to Manager at the Hotel at all reasonable times for inspection, audit, examination and copying for a period of three (3) years. 

  
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 15.2 Monthly Financial Statements. Within twenty (20) days following each Accounting
Period, Manager shall furnish Lessee with respect to the Hotel an accrual basis balance sheet in the form as provided in Exhibit D, which format the Lessee may modify from time to time, together with a reasonably detailed accrual basis profit and
loss statement for the calendar month next preceding and with a cumulative calendar year accrual basis profit and loss statement to date, including a comparison to the Annual Operating Budget and the Capital Improvements Budget and a statement of
cash flows for each monthly and cumulative period for which a profit and loss statement is prepared. Further, Manager shall provide a statement of bank account balances, an allocation to reserve accounts, a sources and uses statement, a narrative
discussing any of the aforementioned reports and material variances from the Annual Operating Budget and the Capital Improvements Budget at such times and in such format as specified in Exhibit D hereto, together with such other reports and
financial statements as Lessee may reasonably request and as are customarily provided by managers of similar hotel properties in the area of the Hotel without Manager receiving additional fees to provide same. 

15.3 Annual Financial Statements. Within twenty (20) days after the end of each Fiscal Year, Manager shall furnish to Lessee
year-end financial statements for the Hotel (including a balance sheet, income statement and statement of sources and uses of funds) which statements shall be unaudited and shall be prepared in accordance with GAAP and the Uniform System of
Accounts. Lessee will engage an independent certified public accounting firm selected by Landlord to provide audited annual financial statements and shall cause such audited financial statements to be prepared and delivered within seventy-five
(75) days of the end of each fiscal year. Manager shall make available such books and records as requested. Manager shall cooperate in all respects with such accountant in the preparation of such statements, including the delivery of any
financial information generated by Manager pursuant to the terms of this Agreement and the execution of a representation letter as reasonably requested by such auditor to prepare such audited financial statements. 

15.4 Internal Controls. Manager shall maintain a system of internal accounting controls that is sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with Manager’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with Manager’s general or specific authorization; and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences (the “Controls”). Manager shall implement and maintain such internal control structures or procedures as reasonably
requested from time to time by Lessee to facilitate Lessee’s preparation of periodic financial reports. In the event that Lessee reasonably requests that Manager implement or change an internal control structure or procedure, Manager will have
ninety (90) days to implement the control structure or procedure after Manager’s receipt of such request from Lessee (so long as the cost to implement is reasonable). Manager shall promptly report to Lessee any significant deficiency or
material weakness in the Controls of which Manager becomes aware. In the event Manager fails to adopt and maintain Controls (including any Controls requested by Lessee) and, as a consequence, transactions are not recorded, assets are not accounted
for properly or expenditures are incurred without requisite approvals, Manager shall be liable to Lessee for the full amount of any lost 

  
 34 

 
revenues or unapproved costs incurred; provided, however that if the failure of Manager to adopt and maintain Controls does not constitute negligence, gross negligence or willful misconduct, the
Manager’s liability under this Section 15.4 shall be limited to the lesser of (i) the Management Fees received by Manager for the twelve month period preceding the date such unrecorded transaction, improperly accounted asset or
unapproved transaction became known to Lessee or (ii) the Management Fees received by Manager from the Effective Date to the date such unrecorded transaction, improperly accounted for asset or unapproved expenditure became known to Lessee. 

15.5 Certification. Manager shall cause its chief executive officer and such other officers or employees as may be requested from time
to time by Lessee to certify to Lessee any one or more of the following: (i) the accuracy of any financial data or reports provided by Manager to Lessee; (ii) the compliance by Manager with the Controls including, without limitation, any
internal control procedures requested by Lessee; (iii) that Manager has implemented internal control procedures requested by Lessee and that there are no material deficiencies in such controls or, if such deficiencies exist, identify the
deficiencies, and (iv) such other matters as may be reasonably requested by Lessee. 
 15.6 Control Rules. Without limiting the
generality of the foregoing, Manager will provide, or cause its auditor to provide, Lessee and its internal and external auditors with all descriptions of Controls, tests of Controls, audit reports and any other information that Lessee or its
auditor deem appropriate or necessary to enable Lessee and its auditor to fulfill their legal obligations under the Securities Act of 1933; the Securities Exchange Act of 1934; the Sarbanes Oxley Act of 2002; related rules and regulations of the
Securities and Exchange Commission, including Regulation S-X; the rules, regulations and listing standards of the NASDAQ Stock Exchange; the rules, regulations and standards of the Public Company Accounting Oversight Board; and any other financial
control or disclosure requirement imposed by law on public companies, as such legal requirements may be amended or modified from time to time (the “Control Rules”). 

(a) Manager will assist Lessee to comply with the Control Rules by, without limitation, (i) documenting Controls; (ii) documenting
regular internal assessments to test whether Controls are operating effectively; (iii) cooperating with Lessee and its auditors in connection with testing the effectiveness of such Controls; (iv) advising Lessee in advance of any
significant proposed change in such Controls and procedures; (v) issuing such interim or annual certifications as Lessee may reasonable request pursuant to Section 15.5; (vi) implementing the additional or alternative Controls that
Lessee from time to time requires; and (vii) correcting any material weakness or significant deficiency as defined by the Control Rules or any other deficiency that would prevent Lessee from complying with the Control Rules. 

(b) Lessee and its auditor will further be entitled to conduct audits and tests of Controls at the hotels and Manager’s offices in order
to obtain any additional evidence of effective internal control that Lessee or its auditor deem appropriate or necessary. Manager will grant reasonable access by Lessee and its auditor to employees, facilities, data, records, systems, controls,
processes and procedures in connection with any such audit. 

  
 35 

 15.7 Future Reporting Periods. In the event SOHO is required to file quarterly and annual
financial statements on an accelerated basis relative to the applicable requirements as of the Commencement Date, the periods in which financial statements must be provided by Manager shall be shortened as necessary to permit SOHO to comply with its
financial reporting requirements. 
 ARTICLE XVI 

DISTRIBUTIONS TO LESSEE 

16.1 Payment of Base Management Fee. On the tenth (10th) day of each month
during the term of this Agreement, Manager shall be paid out of the Operating Account, the Base Management Fee for the preceding Accounting Period, as determined from the books and records referred to in Article XV. 

16.2 Payment of Incentive Management Fee. On the ninetieth (90) day after the end of each Fiscal Year during the term of this
Agreement, Manager shall be paid out of the Operating Account the Incentive Management Fee for the preceding Fiscal Year, if any, as determined from the books and records referred to in Article XV. 

16.3 Distributions to Lessee. Subject to retention of Reasonable Working Capital (including any amounts as required by the Capital
Improvement Budget) and retention of such reserves as may be required under any Hotel Mortgage and/or Ground Lease, as applicable, Manager shall deliver to Lessee from the Operating Account, any Excess Working Capital for the preceding Accounting
Period on the 25th day of the following month, and such amounts of Lessee’s money in the possession or under the control of Manager as Lessee shall from time to time request. “Excess Working Capital” shall mean any Working
Capital remaining after payment of Deductions, Management Fees, allocations for reserves and retention of Reasonable Working Capital. 

ARTICLE XVII 

RELATIONSHIP AND AUTHORITY 
 Lessee and
Manager shall not be construed as partners, joint venturers or as members of a joint enterprise and neither shall have the power to bind or obligate the other except as set forth in this Agreement. Manager shall be an agent only and shall have no
right, title or interest in the real and personal property of Lessee or the Property. This Agreement, either alone or in conjunction with any other documents, shall not be deemed to constitute a lease of any portion of the Premises. Nothing
contained herein shall prohibit or restrict Manager or any affiliate of Manager from operating, owning, managing, leasing or constructing any hotel of any nature or description which may in any manner compete with that of the Premises, except as
provided in Section 24.4 hereof. Except as otherwise expressly provided in this Agreement, (a) all debts and liabilities to third persons incurred by Manager in the course of its operation and management of the Hotel in accordance with the
provisions of this Agreement shall be the debts and liabilities of Lessee only, and (b) Manager shall not be liable for any such obligations by reason of its management, supervision, direction and operation of the Hotel as agent for Lessee.
Manager may so inform third parties with whom it deals on behalf of Lessee and may take any other reasonable steps to carry out the intent of this paragraph. 

  
 36 

 ARTICLE XVIII 

DAMAGE, CONDEMNATION AND FORCE MAJEURE 

18.1 Damage and Repair. If, during the Term hereof, the Hotel is destroyed by fire, casualty, or other cause or in the event the
underlying Lease relating to such damaged Hotel is terminated pursuant to the provisions of such Lease (but only if neither Lessee, Company or any Affiliate of either of them is no longer the owner of the Hotel), or a Holder seeks to cause the Lease
to be terminated or takes any action that would preclude the renovation and repair of the Hotel, either Manager or Lessee may terminate this Agreement with respect to the Hotel upon sixty (60) days Notice from the date of such damage or
destruction, in which case this Agreement shall then terminate with respect to the Hotel sixty (60) days from the date of such notice and neither party shall have any further rights, obligations, liabilities or remedies one to the other
hereunder with respect to the Hotel, except as otherwise provided in Article II; provided, however, that Lessee shall not be required to pay Manager a Termination Fee. 

18.2 Condemnation. 
 (a)
In the event all or substantially all of the Hotel shall be taken in any eminent domain, condemnation, compulsory acquisition, or similar proceeding by any competent authority for any public or quasi-public use or purpose, this Agreement shall
terminate with respect to the Hotel, subject to the requirements of the applicable underlying Lease. However, in any event of such termination, Lessee shall give Manager at least fifteen (15) days prior Notice of such termination. In the event
of such termination, neither party shall have any further rights, remedies, obligations or liabilities one to the other hereunder with respect to the Hotel except as otherwise provided in Article II above; provided, however, that in the event of
such a termination, Lessee shall not be required to pay Manager a Termination Fee and Manager shall have no rights in respect of, and shall refrain from making any claim to proceeds from such condemnation. 

(b) If a portion of the Premises shall be taken by the events described in Section 18.2(a) or the entire Premises are temporarily
affected, the result of either of which is not to make it, in the reasonable business judgment of Lessee, unreasonable to continue to operate the Hotel, subject to the requirements of the applicable underlying Lease, this Agreement shall not
terminate with respect to the Hotel. 
 18.3 Force Majeure. If an event of Force Majeure directly involves the Hotel and renders the
Hotel completely inoperable, then either Manager or Lessee shall be entitled to terminate this Agreement with respect to the Hotel by written Notice within sixty (60) days from the date of such Force Majeure, and this Agreement shall then
terminate with respect to the Hotel sixty (60) days from such notice, in which event neither Lessee nor Manager shall have any further rights, remedies, obligations or liabilities, one to the other, hereunder, with respect to the Premises
except as otherwise provided in Article II; provided, however, that in the event of such a termination Lessee shall not be required to pay Manager a Termination Fee. 

  
 37 

 18.4 Partial Casualty. In the event the operations of the Hotel are substantially
impaired, a substantial number of guest rooms are damaged or the entire Premises is temporarily and not permanently affected, as a result of a fire, casualty or event of Force Majeure, but the Hotel is not destroyed or rendered completely inoperable
and the expected time to effect repairs to the Hotel to place the Hotel back in service on a basis comparable to the size and functionality immediately prior to such fire, casualty or event of Force Majeure (the “Repair Period”) is
in excess of 12 months (as reasonably determined by Lessee) either Lessee or Manager may terminate this Agreement within sixty (60) days of such fire, casualty or event of Force Majeure, in which event neither Lessee nor Manager shall have any
further rights, remedies, obligations or liabilities one to the other, hereunder, with respect to the Premises except as otherwise provided in Article II; provided, however, that in the event Manager gives notice of such a termination, Lessee shall
not be required to pay Manager a Termination Fee and in the event Lessee gives such notice a Termination Fee will be payable by Lessee. If neither Manager nor Lessee terminates this Agreement pursuant to the immediately preceding sentence, Lessee
shall cause Landlord to effect repairs to the Hotel as reasonably necessary to put the Hotel back in service on a basis comparable to the size and functionality of the Hotel immediately prior to the fire, casualty, or event of Force Majeure. In the
event Lessee fails to proceed promptly with restoring the Hotel, Manager shall be entitled to terminate this Agreement with sixty (60) days prior written notice and no Termination Fee shall be payable by Lessee. Neither Manager nor Lessee shall
be entitled to terminate this Agreement as a result of a partial casualty which requires the Hotel to cease operations for 12 months or less. During a Repair Period in which Manager continues to manage the Hotel, the Manager shall operate the Hotel
in accordance with a revised Annual Operating Budget which shall reflect a reduction in staff levels as determined by Lessee. 
 ARTICLE
XIX 
 DEFAULT AND TERMINATION 

19.1 Events of Default. The following shall constitute events of default (each an “Event of Default”): 

(a) The filing of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy law by Lessee or
Manager; 
 (b) The consent to any involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days from the date
of entry thereof, any order approving an involuntary petition by Lessee or Manager; 
 (c) The entering of an order, judgment or decree by
any court of competent jurisdiction, on the application of a creditor, adjudicating Lessee or Manager as bankrupt or insolvent, or approving a petition seeking reorganization or appointing a receiver, trustee, or liquidator of all or a substantial
part of such party’s assets, and such order, judgment or decree continues unstayed and in effect for any period of ninety (90) days or more; 

(d) The appointment of a receiver for all or any substantial portion of the property of Lessee or Manager; 

  
 38 

 (e) The failure of Lessee or Manager to make any payment required to be made in accordance with
the terms of this Agreement within ten (10) days after receipt of Notice, specifying said default with reasonable specificity, when such payment is due and payable; or 

(f) The failure of Lessee or Manager to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions set forth
in this Agreement, and the continuance of such default for a period of thirty (30) days after written notice of said failure; provided, however, if such default cannot be cured within such thirty (30) day period and Lessee or Manager, as
the case may be, commences to cure such default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended so long as it shall require Lessee or
Manager, as the case may be, in the exercise of due diligence to cure such default, it being agreed that no such extension (including the original 30 day cure period) shall be for a period in excess of ninety (90) days. 

(g) The occurrence of a default under the applicable Lease or ground lease which results in termination thereof other than a termination of
the Lease by the Landlord or Lessee that is not associated with a sale or transfer of the Hotel to an entity that is not an Affiliate of SOHO. 

(h) Manager ceases to or does not qualify as an Eligible Independent Contractor. 

(i) Receipt by Lessee of a notice from Franchisor of termination of a Franchise Agreement caused by Manager, and the failure to cure the
relevant default prior to the expiration of any cure period before termination becomes effective. 
 (j) Manager’s breach of its
obligations under Section 3(a) or (b) of the Master Agreement and its failure to cure within the applicable cure period. 
 19.2
Consequence of Default. Upon the occurrence of any Event of Default, the non-defaulting party may give the defaulting party Notice of intention to terminate this Agreement (after the expiration of any applicable grace or cure period provided
in Section 19.1), and upon the expiration of thirty (30) days from the date of such notice, this Agreement shall terminate, whereupon the non-defaulting party shall be entitled to pursue all of its rights and remedies, at law or in equity,
under this Agreement (including, without limitation, any indemnity obligations which shall survive termination of this Agreement) and any other rights and remedies available under Legal Requirements except as otherwise expressly limited by the terms
of Article II and excluding punitive and consequential damages. 

  
 39 

 ARTICLE XX 

WAIVER AND INVALIDITY 

20.1 Waiver. 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. 

20.2 Partial Invalidity. In the event that any portion of this Agreement shall be declared invalid by order, decree or judgment of a
court, this Agreement shall be construed as if such portion had not been inserted herein except when such construction would operate as an undue hardship on Manager or Lessee or constitute a substantial deviation from the general intent and purpose
of said parties as reflected in this Agreement, in which event it shall be terminated. 
 ARTICLE XXI 

ASSIGNMENT 
 Subject to the requirements of
any Hotel Mortgage, Franchise Agreement, Ground Lease or the Lease, neither party shall assign or transfer (by operation of law or otherwise) or permit the assignment or transfer of this Agreement without the prior written consent of the other
(which may be withheld in its sole discretion) and any such prohibited assignment or transfer shall be null and void; provided, however, that Lessee shall have the right, without such consent, to assign or transfer its interest in this Agreement for
purposes of any financing or as permitted by the Franchise Agreement. 
 ARTICLE XXII 

NOTICES 
 All notices, demands, elections,
or other communications that any party this Agreement may desire or be required to be given hereunder shall be in writing and shall be given by hand, by depositing the same in the United States mail, first class, postage prepaid, certified mail,
return receipt requested, or by a recognized overnight courier service providing confirmation of delivery, to the addresses set forth below, or at such address as may be designated by the addressee upon written notice to the other party, (herein
called “NOTICE”). 
  

			
	To Lessee:	  	 MHI Hospitality TRS, LLC
 401 West Francis
Street
 Williamsburg, Virginia 23188
 Attn: Andrew M. Sims

Fax: (757) 564-8801

  
 40 

			
	With a copy to:	  	Thomas J. Egan, Jr.
		
		  	Baker & McKenzie LLP
		
		  	815 Connecticut Avenue, NW
		
		  	Washington, D.C. 20006
		
		  	Fax: (202) 416-6955
		
	To Manager:	  	 MHI Hotels Services, LLC
 6411 Ivy Lane –
Suite 510
 Greenbelt, Maryland 20770
 Attn: Kim E. Sims

Fax: (301) 474-0807

		
	With a copy to:	  	The Law Offices of David J. Weymer
		
		  	11613 Quarterfield Drive
		
		  	Ellicott City, Maryland 21042
		
		  	Fax: (410) 531-8929
		
	To the Landlord:	  	 401 West Francis Street
 Williamsburg, Virginia
231858
 Fax: (757) 564-8801

		
	With a copy to:	  	Thomas J. Egan, Jr.
		
		  	Baker & McKenzie LLP
		
		  	815 Connecticut Avenue, NW
		
		  	Washington, D.C. 20006
		
		  	Fax: (202) 416-6955

 All notices given pursuant to this Article XXII shall be deemed to have been given (i) if delivered by hand on the date
of delivery or on the date that delivery was refused by the addressee, or (ii) if delivered by certified mail or by overnight courier, on the date of delivery as established by the return receipt or courier service confirmation (or the date on
which the return receipt or courier service confirms that acceptance of delivery was refused by the addressee). 

  
 41 

 ARTICLE XXIII 

SUBORDINATION 
 23.1
Subordination. This Agreement shall be subject and subordinate to any Hotel Mortgage and Lease, and Manager agrees to enter into a Non-Disturbance Agreement. Notwithstanding the foregoing, Manager shall in no event be obligated to perform its
duties hereunder without payment and/or reasonable assurance of payment of such fees, reimbursements or indemnification payments. 

ARTICLE XXIV 

PROPRIETARY MARKS; INTELLECTUAL PROPERTY 

24.1 Computer Software and Equipment. All “Software” (meaning all computer software and accompanying documentation,
other than software which is commercially available, which are licensed by Manager in connection with the property management system, any reservation system and all future electronic systems developed by Manager for use in the Hotel) is and shall
remain the exclusive property of Manager or any one of its Manager Affiliate Entities (or the licensor of such Software, as the case may be), and Lessee shall have no right to use, or to copy, any Software; provided, however, that any Software
included in building systems and owned by Landlord or purchased by Manager on behalf of Lessee relating to operations shall not be Manager’s intellectual property. Only intellectual property listed on Exhibit 24.1 or specifically identified by
Lessee and agreed to by Landlord shall be the intellectual property of Manager. Upon Termination, Manager shall have the right to remove from the Hotel, without compensation to Lessee, all Software, and any computer equipment owned by Manager which
is utilized as part of a centralized property management system or is otherwise considered proprietary by Manager, excepting any software which is owned by the applicable Franchisor; provided that Manager shall cooperate with Lessee in the
transition of the centralized management system to the new manager, including in the change of any Software and computer equipment. If any of such computer equipment is owned by Lessee, Manager shall reimburse Lessee for previous expenditures made
by Lessee for the purchase of such equipment, subject to a reasonable allowance for depreciation. 
 24.2 Intellectual Property. (a)
All written Software and manuals, brochures issued by Manager to its employees at the Hotel regarding proprietary procedures and techniques to be used in operating the Hotel (“Manager Intellectual Property”) shall at all times be
proprietary to Manager or its Affiliates, and shall be the exclusive property of Manager or its Affiliates. Upon Termination, all Manager Intellectual Property shall be removed from the Hotel by Manager, without compensation to Lessee. Lessee shall
not be charged in any manner, direct or indirect, for the acquisition of such Intellectual Property. 
 (b) All written documentation trade names, trade
marks and service marks of SOHO and any and all distinctive elements adopted from time to time by SOHO as part of the Brand Standards (the “SOHO Intellectual Property”) shall at all times be proprietary to SOHO or its Affiliates and
shall be the exclusive property of SOHO or its Affiliates. Following Termination, Manager shall not remove, copy or utilize any SOHO Intellectual Property which shall remain the property of SOHO or its Affiliates. 

  
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 24.3 Books and Records. All Books and Records maintained with respect to the Hotel,
including guest records but excluding employee records, shall be the sole property of Lessee but may be used by Manager during the Term in connection with its management and operation of the Hotel. 

24.4 Exclusivity. After the Effective Date, Manager agrees not to enter into any management, consulting or advisory services relating
to the management or operation of another hotel within a five mile radius of the Premises (the “Restricted Area”) without the prior written consent of the Lessee which consent may be withheld or conditioned in the sole discretion of
Lessee. 
 ARTICLE XXV 

INDEMNIFICATION 
 25.1
Manager Indemnity. Manager shall indemnify and hold Lessee and Landlord (and Lessee’s agents, shareholders, officers, directors, and employees) harmless from and against all liabilities, losses, claims, damages, costs and expenses
(including, but not limited to, reasonable attorneys’ fees and expenses) which are not covered by insurance proceeds that may be incurred by or asserted against any such party and that arise from (a) the fraud, willful misconduct or gross
negligence of Manager; provided, however, that the act or omission of any employee of Manager who is not an Executive Employee (but including any employee of Manager with access to or signatory authority over funds of Lessee held by Manager), which
act or omission is willful or constitutes fraud or gross negligence on the part of such employee, shall not constitute fraud, gross negligence or willful misconduct on the part of Manager unless Manager’s home office or regional staff, or an
Executive Employee, acted with gross negligence in employing, training, supervising or continuing the employment of such employee; (b) the infringement by any of Manager’s intellectual property rights (including trademarks, software, etc.)
of the intellectual property rights of any third party; (c) any Excluded Employee Claims; or (d) knowing or reckless placing, discharge, leakage, use or storage, of hazardous materials on the Premises or in the Hotel by Manager during the
Term of this Agreement as set forth in Section 28.10(c). Lessee shall promptly provide Manager with written notice of any claim or suit brought against it by a third party which might result in such indemnification. Lessee shall carry general
liability insurance. 
 25.2 Lessee Indemnity. Except with respect to matters for which Manager is obligated to provide
indemnification pursuant to Section 25.1, Lessee shall indemnify and hold Manager (and Manager’s agents, principals, partners, members, officers, directors, and employees) harmless from and against all liabilities, losses, claims, damages,
costs and expenses (including, but not limited to, reasonable attorneys’ fees and expenses) which are not covered by insurance proceeds and that may be incurred by or asserted against such party and that arise from or in connection with
(a) the performance of Manager’s services under and in accordance with this Agreement; (b) the condition or use of the Hotel, to the fullest extent permitted by law, including without limitation, any injury to person(s) or damage to
property or business by reason of any cause whatsoever in or about the Hotel; (c) any Employee Related Termination Costs, including any liability to which Manager is subjected pursuant to the WARN Act in connection with the termination of this
Agreement provided Manager provides any notices required by the WARN 

  
 43 

 
Act in connection with any termination of this Agreement, (d) the Employee Costs and Expenses as set forth in Article IX herein above; or (e) any Employee Claims, but excluding any
Excluded Employee Claims. Manager shall promptly provide Lessee with written Notice of any claim or suit brought against it by a third party which might result in such indemnification. 

25.3 Indemnification Procedure. Any party obligated to indemnify the other party under this Agreement (the “Indemnifying
Party”) shall have the right, by Notice to the other party, to assume the defense of any claim with respect to which the other party is entitled to indemnification hereunder. If the Indemnifying Party gives such notice, (i) such
defense shall be conducted by counsel selected by the Indemnifying Party and approved by the other party, such approval not to be unreasonably withheld or delayed (provided, however, that the other party’s approval shall not be required with
respect to counsel designated by the Indemnifying Party’s insurer); (ii) so long as the Indemnifying Party is conducting such defense with reasonable diligence, the Indemnifying Party shall have the right to control said defense and shall
not be required to pay the fees or disbursements of any counsel engaged by the other party for services rendered after the Indemnifying Party has given the Notice provided for above to the other party, except if there is a conflict of interest
between the parties with respect to such claim or defense; and (iii) the Indemnifying Party shall have the right, without the consent of the other party, to settle such claim, but only provided that such settlement involves only the payment of
money and without the admission of any wrongdoing, the Indemnifying Party pays all amounts due in connection with or by reason of such settlement and, as part thereof, the other party is unconditionally released from all liability in respect of such
claim. The other party shall have the right to participate in the defense of such claim being defended by the Indemnifying Party at the expense of the other party (other than in the event of a conflict of interest between-the parties with respect to
such claim or defense), but the Indemnifying Party shall have the right to control such defense (other than in the event of a conflict of interest between the parties with respect to such claim or defense). In no event shall (i) the other party
settle any claim without the consent of the Indemnifying Party so long as the Indemnifying Party is conducting the defense thereof in accordance with this Agreement; or (ii) if a claim is covered by the Indemnifying Party’s liability
insurance, take or omit to take any action which would cause the insurer not to defend such claim or to disclaim liability in respect thereof. 

25.4 Survival. The provisions of this Article shall survive the termination of this Agreement with respect to acts, omissions and
occurrences arising during the Term. 
 ARTICLE XXVI 

[INTENTIONALLY OMITTED] 

ARTICLE XXVII 
 GOVERNING
LAW AND VENUE 
 This Agreement and its interpretation, validity and performance shall be governed by the laws of the Commonwealth of Virginia without
regard to its conflicts of laws principles. In the event any court of law of appropriate judicial authority shall hold or declare that the law of another jurisdiction is applicable, this agreement shall remain enforceable under the laws of the
appropriate jurisdiction. The parties hereto agree that venue for any action in connection 

  
 44 

 
herewith shall be proper in James City County, Virginia. Each party hereto consents to the jurisdiction of any local, state or federal court situated in such location and waives any objection
which it may have pertaining to improper venue or forum non-conveniens to the conduct of any proceeding in any such court. 
 ARTICLE
XXVIII 
 MISCELLANEOUS 

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

28.2 [Intentionally Omitted.] 

28.3 [Intentionally Omitted.] 

28.4 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. 
 28.5 Attorneys’ Fees and Costs. If any action at law or
in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be
entitled. 
 28.6 Entire Agreement. This Agreement, together with other writings signed by the parties expressly stated to be
supplementary hereto and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings and writings. 

28.7 Consents. Whenever the consent or approval of Lessee is required under the terms of this Agreement, unless otherwise stated to the
contrary, such consent or approval may be granted or withheld by Lessee in its reasonable discretion. 
 28.8 Eligible Independent
Contractor. During the Term of this Agreement, Manager shall at all times qualify as an “eligible independent contractor” as defined in Section 856(d)(9) of the Code (as such section may be amended or modified from time to time
during the Term hereof or any successor Code Section) (“Eligible Independent Contractor”). To that end, during the Term of this Agreement, Manager agrees that: 

(a) Manager shall not permit wagering activities to be conducted at or in connection with the Hotel 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 Hotel; 

  
 45 

 (b) Manager shall not own, directly or indirectly (within the meaning of Section 856(d)(5)
of the Code), more than thirty-five percent (35%) of the outstanding stock of SOHO; 
 (c) no more than thirty-five percent
(35%) of Manager’s membership interests (in its assets or net profits) shall be owned (within the meaning of Section 856(d)(5) of the Code), directly or indirectly, by one or more persons owning thirty-five percent (35%) (within
the meaning of Section 856(d)(5) of the Code) or more of the outstanding stock of SOHO; 
 (d) Manager (or a person who is a
“related person” within the meaning of Section 856(d)(9)(F) of the Code (a “Related Person”) with respect to Manager) shall be actively engaged in the trade or business of operating “qualified lodging
facilities” within the meaning of Section 856(d)(9)(D) of the Code (defined below) for one or more persons who are not Related Persons with respect to MHI or Lessee (“Unrelated Persons”). For purposes of determining
whether the requirement of this paragraph (e) has been met, Manager shall be treated as being “actively engaged” in such a trade or business if Manager (i) derives at least 10% of both its profits and revenue from operating
“qualified lodging facilities” within the meaning of Section 856(d)(9)(D) of the Code for Unrelated Persons or (ii) complies with any regulations or other administrative guidance under Section 856(d)(9) of the Code that
provide a “safe harbor” rule with respect to the hotel management business with Unrelated Persons that is necessary to qualify as an “eligible independent contractor” within the meaning of such Code section. 

A “qualified lodging facility” is defined in Section 856(d)(9)(D) of the Code and means a “Lodging Facility” (defined below), unless
wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is fully authorized to engage in such business at or in connection with such facility. A “Lodging
Facility” is a hotel, motel or other establishment more than one-half of the dwelling units in which are used on a transient basis, and includes customary amenities and facilities operated as part of, or associated with, the lodging facility so
long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners unrelated to SOHO. 

28.9 Subleasing. During the Term of this Agreement, Manager shall not sublet the Hotel 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. 

28.10 Environmental Matters. 

(a) For purposes of this Section 28.10, “hazardous materials” means any substance or material containing one or more of any of
the following: “hazardous material,” 

  
 46 

 
“hazardous waste,” “hazardous substance,” “regulated substance,” “petroleum,” “pollutant,” “contaminant,” or “asbestos,” as
such terms are defined in any applicable environmental law, in such concentration(s) or amount(s) as may impose clean-up, removal, monitoring or other responsibility under any applicable environmental law, or which may present a significant risk of
harm to guests, invitees or employees of the Hotel. 
 (b) Regardless of whether or not a given hazardous material is permitted on the
Premises under applicable environmental law, Manager shall only bring on the Premises such hazardous materials as are needed in the normal course of business of the Hotel. 

(c) In the event of the discovery of hazardous materials (as such term may be defined in any applicable environmental law) on the Premises or
in the Hotel during the Term of this Agreement, Manager shall promptly notify Lessee of such discovery and Lessee shall promptly remove, if required by applicable environmental law, such hazardous materials, together with all contaminated soil and
containers, and shall otherwise remedy the problem in accordance with all environmental laws (except to the extent knowingly or recklessly caused by Manager during the Term of this Agreement, whereupon the responsibility to promptly remove and/or
remedy the environmental problem shall be that of Manager and at Manager’s sole cost and expense). All costs and expenses of the compliance with all environmental laws shall be paid by Lessee from its own funds (except to the extent knowingly
or recklessly caused by Manager during the Term of this Agreement as set forth herein above). 
 28.11 Equity and Debt Offerings.
Lessee or Manager (as an “Issuing Party”) may make reference to the other party (the “Non-Issuing Party”) or any of its Affiliates in any prospectus, private placement memorandum, offering circular or offering
documentation related thereto (collectively, referred to as the “Prospectus”), issued by the issuing party. In no event will the non-issuing party be deemed a sponsor of the offering described in any such Prospectus, nor will it
have any responsibility for the Prospectus. The issuing party shall be entitled to include in the Prospectus an accurate summary of this Agreement but shall not include any proprietary mark of the non-issuing party without prior written consent of
the non-issuing party. The issuing party shall indemnify, defend and hold the non-issuing party and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless from and against all loss, costs, liability
and damage (including attorneys’ fees and expenses, and the cost of litigation), arising out of any Prospectus or the offering described therein, except for any such losses, costs, liability and damage arising from material misstatements or
omissions in a Prospectus based on information provided in writing by the non-issuing party expressly for inclusion in the Prospectus. 

  
 47 

 28.12 Estoppel Certificates. Lessee and Manager will, at any time and from time to time
within fifteen (15) days of the request of the other party or a Holder, or a Franchisor (if so permitted under the applicable Franchise Agreement), or a Landlord (if so permitted under the applicable Lease), execute, acknowledge, and deliver to
the other party and such Holder, Franchisor or Landlord, as applicable, a certificate certifying: 
 (a) That the Agreement is unmodified
and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating such modifications); and 

(b) Whether there are any existing Event(s) of Default or events which, with the passage of time, would become an Event of Default, by the
other party to the knowledge of the party making such certification, and specifying the nature of such Event(s) of Default or defaults or events which, with the passage of time, would become an Event of Default, if any. 

Any such certificates may be relied upon by any party to whom the certificate is directed. 

28.13 Confidentiality. Manager shall keep confidential all non-public information obtained in connection with the services rendered
under this Agreement and shall not disclose any such information or use any such information except in furtherance of its duties under this Agreement or as may be required by applicable Legal Requirements or court order, or as may be required under
any Franchise Agreement, Hotel Mortgage, Lease or Ground Lease. 
 28.14 Modification. Any amendment, supplement or modification of
this Agreement must be in writing signed by both parties hereto. 
 28.15 Counterparts. This Agreement may be executed in multiple
counterparts, each of which is an original and all of which collectively constitute one instrument. 
 [Signatures follow on next page]

  
 48 

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

					
		 	LESSEE:
		
		 	 MHI Hospitality TRS, LLC
 a Delaware
limited liability company

			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

			
	MANAGER:	 		 	
		
		 	 MHI Hotels Services LLC
 a Virginia
limited liability company

			
		 	By:	 	  

		 	 Kim E. Sims
 President

			
	LANDLORD:	 		 	
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

  
 49 

 List of Exhibits 
  

			
	Exhibit A	  	Hotel Information
		
	Exhibit B	  	Commencement Date
		
	Exhibit C	  	Franchise Agreement (if applicable)
		
	Exhibit D	  	Reporting Package
		
	Exhibit E	  	Premises Leases

  
 50 

 Exhibit A 

Hotel Name 
 Franchise Affiliation 

Hotel Address 
 Number of Rooms 

Amount and Size of Meeting Space 
 F&B Offerings
and Other Ancillary Facilities 
 Legal Description of Premises 

Competitive Set 

  
 51 

 Exhibit B 

Commencement Date 

January 1, 2015 

  
 52 

 Exhibit C 

Franchise Agreement 

  
 53 

 Exhibit D 

Reporting Package 
 Manager shall
provide Lessee with the following written reports which shall be posted to the dedicated SHAREPOINT data site maintained by Manager. Information to be maintained for ten years. 

 

	•	 	Daily report containing the following information: 

  

	•	 	Weekly Pace Reports containing the following information: 

  

	•	 	Monthly report containing the following information: 

  

	•	 	Monthly report containing information regarding year-to-date capital expenditures and year-to-date versus budget 

  

	•	 	Bi-weekly report 

  
 54 

 Exhibit E 

Premises Leases 

  
 55 

 EXHIBIT C 

HOTEL SPECIFIC INFORMATION FOR MANAGEMENT AGREEMENT 

FOR CURRENT HOTELS AND FUTURE HOTELS 
 The
following Hotel Specific Information shall be identified by Lessee for each Future Hotel to be subject to a Management Agreement and reflect as appropriate in such Management Agreement: 

 

	 	•	 	Address of hotel and number of guest rooms; 

  

	 	•	 	Legal description of real property of hotel; 

  

	 	•	 	Description of leases; 

  

	 	•	 	Description of Franchise Agreement; and 

  

	 	•	 	Commencement Date 

 The following Hotel Specific Information is set forth below with respect to each of the
Current Hotels: 
 DoubleTree by Hilton Philadelphia Airport 
  

	 	•	 	4509 Island Avenue, Philadelphia, PA 19153, 331 Guest Rooms 

 Hilton Wilmington Riverside 

 

	 	•	 	301 North Water Street, Wilmington, NC 28401, 272 Guest Rooms 

 Hilton Savannah DeSoto 

 

	 	•	 	15 East Liberty Street, Savannah, GA 31401, 246 Guest Rooms 

 Crowne Plaza Jacksonville Riverfront 

 

	 	•	 	1201 Riverplace Boulevard, Jacksonville, FL 32207, 292 Guest Rooms 

 Doubletree by Hilton Raleigh Brownstone

  

	 	•	 	1707 Hillsborough Street, Raleigh, NC 27605, 190 Guest Rooms 

 Holiday Inn Laurel West 

 

	 	•	 	15101 Sweitzer Ln, Laurel, MD 20707, 207 Guest Rooms 

 Sheraton Louisville Riverfront 

 

	 	•	 	700 W Riverside Dr, Jeffersonville, IN 47130, 180 Guest Rooms 

 Crowne Plaza Hampton Marina 
  

	 	•	 	700 Settlers Landing Rd, Hampton, VA 23669, 173 Guest Rooms 

 Crowne Plaza Tampa Westshore 

 

	 	•	 	5303 W Kennedy Blvd, Tampa, FL 33609, 222 Guest Rooms 

 Crowne Plaza Houston Downtown 

 

	 	•	 	1700 Smith St, Houston, TX 77002, 259 Guest Rooms 

 The Georgian Terrace Hotel 

 

	 	•	 	659 Peachtree St NE, Atlanta, GA 30308, 326 Guest Rooms 

 EXHIBIT D 

MANAGEMENT FEE SCHEDULE FOR CURRENT HOTELS AND FUTURE HOTELS 
  

									
	 	  	Base Management Fee	 
	 	  	 	 	 	2018-2019	 
	 Hotel Name
	  	2015-2017	 	 	& Renewals	 
			
	 Hilton Philadelphia Airport
	  	 	2.65	% 	 	 	2.5	% 
	 Hilton Wilmington Riverside
	  	 	2.65	% 	 	 	2.5	% 
	 Hilton Savannah DeSoto
	  	 	2.65	% 	 	 	2.5	% 
	 Crowne Plaza Jacksonville
	  	 	2.65	% 	 	 	2.5	% 
	 Doubletree Brownstone Raleigh Downtown
	  	 	2.65	% 	 	 	2.5	% 
	 Holiday Inn Laurel West
	  	 	2.65	% 	 	 	2.5	% 
	 Sheraton Louisville Riverfront
	  	 	2.65	% 	 	 	2.5	% 
	 Crowne Plaza Hampton Marina Hotel
	  	 	2.65	% 	 	 	2.5	% 
	 Crowne Plaza Tampa Westshore
	  	 	2.65	% 	 	 	2.5	% 
			
	 Crowne Plaza Houston Downtown and Georgian Terrace Hotel
	  				 			
	 January 1, 2015 through December 31, 2015
	  	 	2.00	% 	 			
	 January 1, 2016 through December 31, 2016
	  	 	2.25	% 	 			
	 January 1, 2017 through December 31, 2019 and any renewals
	  	 	2.50	% 	 			
			
	 Future Hotels
	  				 			
			
	 Months 1 through 12 months of term
	  	 	2.00	% 	 			
	 Months 13 through 24 of term
	  	 	2.25	% 	 			
	 Months 25 through 60 and any renewals
	  	 	2.50	% 	 			

 Incentive Management Fee for Current Hotels and Future Hotels 

The incentive management fee will be equal to 10% of the amount by which Gross Operating Profit of the Hotel (as defined in the MMA) for a
given year exceeds the budgeted Gross Operating Profit for such year; provided, however, that the incentive management fee payable in respect of any such year shall not exceed 0.25% of the Gross Revenues of the Hotel included in such calculation.

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