Document:

EXHIBIT 10.28

 Exhibit 10.28 
 SAN JOSE HWS & TUKWILA HWS 
 AGREEMENT OF PURCHASE AND SALE 
 BY THIS AGREEMENT OF PURCHASE AND SALE (this “Agreement”), and for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto declare, covenant and agree as follows: 
 1. DEFINITIONS. 
 The following terms are hereby defined as set forth below for purposes of this Agreement and shall be given such meanings wherever appearing in this
Agreement unless the context requires otherwise, and subject to such further qualifications as are expressly set forth hereafter: 
  

			
	Seller:	  	
		  	RT-WACA HOTELS, L.P.
		  	A Delaware limited partnership
		  	Attention: Sam Friedman
		  	401 Keyser Avenue
		  	Natchitoches, LA 71457
		  	Telephone: (318) 352-8238
		  	Facsimile: (318) 352-8276
		  	Email: Sam.Friedman@dimdev.com
		
	Buyer:	  	
		
		  	APPLE EIGHT HOSPITALITY OWNERSHIP, INC.,
		  	A Virginia corporation
		  	Attention: Sam Reynolds
		  	814 E. Main Street
		  	Richmond, VA 23219
		  	Telephone: 804-344-8121
		  	Facsimile: 804-727-6354
		  	Email: SReynolds@applereit.com
		
	Escrow Agent:	  	LAND AMERICA AMERICAN TITLE COMPANY - 1951
		  	Debby S. Moore
		  	Escrow Officer / Commercial Closer
		  	2505 N. Plano Road, Ste. 3100
		  	Richardson, Texas 75082
		  	Telephone: 214-570-0200 X 103
		  	Facsimile: 214-570-0210
		  	E-Mail: dmoore@landam.com
		  	Escrow Number:
                                       
 (“Escrow”)

  

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	 Effective Date of
 this Agreement:
	  	December 6, 2007
		
	 Opening of
 Escrow:
	  	The date upon which this Agreement has been fully executed by Buyer and Seller.
		
	Review Period:	  	The period commencing on the Opening of Escrow and expiring forty-five (45) days thereafter at 5:00 p.m. c.s.t.
		
	Closing Date:	  	Fifteen (15) days after the expiration of the Review Period, or the date upon which the Existing Loan can be defeased, whichever is later; provided, however, the outside closing date shall be
August 1, 2008. “Closing” shall mean the recordation of the Special Warranty Deed for each Hotels described in Section 5.1(a) in the official records of King County, Washington and Santa Clara County, California.
		
	Properties:	  	 The properties which is subject to this Agreement and which Seller agrees to sell and Buyer agrees to purchase is as follows:
  
 a. All of those certain real properties situated at 10 West Trimble Road, San
Jose, California 95131 and 6955 Fort Dent Way, Tukwila, Washington 98188, the legal descriptions of which is attached hereto as Exhibit “A” and incorporated herein by reference, all hereditaments, privileges, tenements and
appurtenances thereto, including any and all rights under covenants, easements, conditions, restrictions and other usage agreements and all open or proposed highways, streets, roads, avenues, alleys, easements, strips, gores and rights-of-way in,
on, across, in front of, contiguous to, abutting or adjoining the Properties and all water rights (if any) and all trees, bushes and other flora now or on the Closing Date affixed thereto or thereon (the “Real Properties”);
  
 b. All buildings, improvements, fixtures and appurtenances (the
“Improvements”) situated in, on or about the Real Properties, including, but not limited to, the 106 room hotel known as the “Homewood Suites Seattle-Tacoma Airport/Tukwila” and the 140 room hotel known as the “Homewood
Suites San Jose Airport – Silocn Valley (collectively, the “Hotels”);
  
 c. All of Seller’s right, title and interest in and to the inventory located at the Improvements, including, but not limited to, all

  

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		  	 merchandise, supplies, inventory and other items used for the operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs, spas, business centers, meeting rooms and other common areas and recreational areas located within or relating to the Improvements, including, without limitation, all food and beverage (alcoholic and non-alcoholic) inventory, office
supplies and stationery, advertising and promotional materials, china, glasses, silver/flatware, towels, linen and bedding (all of which shall be 2-par level for all suites or rooms in the Hotels), guest cleaning, paper and other supplies,
upholstery material, carpets, rugs, furniture, engineers’ supplies, paint and painters’ supplies, employee uniforms, and all cleaning and maintenance supplies, including those used in connection with the swimming pools, indoor and/or
outdoor sports facilities, health clubs, spas, fitness centers, restaurants, business centers, meeting rooms and other common areas and recreational areas (collectively “Inventory”) to operate the Hotels;
  
 d. All of the “FF&E”, which shall include all tangible personal
property and fixtures of any kind (other than personal property (i) owned by guests of the Hotels or (ii) leased by Seller pursuant to an FF&E Lease) attached to, or located upon and used in connection with the ownership, maintenance, use or
operation of the Real Properties or Improvements as of the date hereof (or acquired by Seller and so employed prior to Closing), including, but not limited to, all furniture, fixtures, equipment, signs and related personal property; all heating,
lighting, plumbing, drainage, electrical, air conditioning, and other mechanical fixtures and equipment and systems; all elevators, and related motors and electrical equipment and systems; all hot water heaters, furnaces, heating controls, motors
and equipment, all shelving and partitions, all ventilating equipment, and all disposal equipment; all spa, health club and fitness equipment; all equipment used in connection with the use and/or maintenance of the guestrooms, restaurants, lounges,
business centers, meeting rooms, swimming pools, indoor and/or outdoor sports facilities and other common areas and recreational areas; all carpet, drapes, beds, furniture, televisions and other furnishings; all stoves, ovens, freezers,
refrigerators, dishwashers, disposals, kitchen equipment and utensils, tables, chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils. A current list of FF&E is
attached hereto as Exhibit B (collectively, “FF&E”);
  
 e. All of Seller’s right, title and interest in and to all assignable service contracts, leases, contracts and other agreements in effect with respect to the ownership and operation or maintenance of the Real Properties, Improvements
and FF&E (“Operating Agreements”). A current list of Operating Agreements is attached hereto as Exhibit C;

  

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 f. All of Seller’s right, title and interest in and
to room and other reservations with respect to the Improvements and relating to any period from and after 12:01 a.m. on the Closing Date; and
  
 g. To the extent assignable, all of Seller’s right, title and interest, if any, in and to (i) all governmental permits, licenses, certifications
and authorizations, including, without limitation, certificates of occupancy, relating to the construction, use or operation of the Hotels, to the extent that the same are assignable by Seller; (ii) all unexpired warranties and guaranties relating
to the Real Properties, Improvements and FF&E; (iii) all architectural or engineering plans, drawings and specifications, surveys and soils, environmental and geologic reports pertaining to the Real Properties in Seller’s possession or
control; and (iv) telephone numbers, Properties Management System Guest History Electronic Data during Seller’s ownership of the Properties, sales contracts for future business and for the past 12 months business, sales client contract
information lists, and other business records (collectively, the “Warranties and Intangibles”).
  
 Notwithstanding any provision in this Agreement to the contrary, the term “Properties” shall not include (i) any non-assignable Operating Agreements, (ii) any non-assignable Warranties and Intangibles, (iii)
any cash on hand (excluding cash described in Section 5.3) or in accounts or cash equivalents, (iv) any security, vendor or other deposits of any type or nature, including, but not limited to, deposits for utilities or under Operating Agreements but
specifically excluding guest deposits for room reservations post Closing, (v) any notes, accounts receivable and vendor receivables due Seller in connection with the operation of the Hotels on or before the Closing Date, (vi) the Management
Agreement with Dimension Development Company, Inc., and (vii) any accounts payable, operating expenses, costs and other charges incurred for periods prior to the Closing Date.

		
	Existing Loan:	  	That certain loan in the original principal amount of $22,500,000 as evidenced by a promissory note from Seller, as maker, in favor of GMAC Commercial Mortgage Corporation
(“Lender”) secured by the Properties pursuant to those certain Deeds of Trust dated March 3, 2006 and recorded in the King County, Washington and Santa Clara County, California records as [Deed Book/Page or Instrument
No.].

  

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 2. PURCHASE PROVISIONS. 
 2.1 Agreement and Properties. Seller hereby agrees to sell, transfer and convey to Buyer, and Buyer hereby agrees to purchase and acquire from
Seller, the Properties, all upon and subject to the terms, conditions and provisions set forth in this Agreement. 
 2.2 Purchase
Price. The purchase price for the Properties shall be Thirty-four Million One Hundred Fifty Thousand and No/100ths Dollars ($34,150,000.00) (the “Purchase Price”), payable as follows: 
 (a) Two Hundred Fifty Thousand and No/100ths ($250,000.00) Dollars in cash or immediately available funds (the “Initial Deposit”) deposited by
Buyer with the Escrow Agent in an interest bearing account within two (2) business days following the Opening of Escrow; 
 (b) At the
end of the Review Period, Buyer shall deposit an additional Two Hundred Fifty Thousand and No/100ths ($250,000.00) Dollars in cash or immediately available funds (the “Additional Deposit”) with Escrow Agent; and 
 (c) the balance of the Purchase Price, less the then outstanding principal balance of the Existing Loan immediately prior to defeasance, in cash or
immediately available funds deposited with the Escrow Agent on or before the Closing Date. 
 2.3 Earnest Money Deposit. Prior to the
expiration of the Review Period, the Initial Deposit, together with interest earned thereon shall be fully refundable in accordance with the procedures set forth in Section 3.6 below. From and after the expiration of the Review Period, the
Initial Deposit and the Additional Deposit (collectively, the “Earnest Money Deposit”) shall apply to the Purchase Price and shall be nonrefundable to Buyer; provided, however, that if: 
 a. Buyer terminates this Agreement on or before the expiration of the Review Period in accordance with the provisions of Section 3.1; or 

b. Buyer terminates this Agreement on or before the expiration of the Review Period in accordance with the provisions of Section 3.6; or

 c. Buyer terminates this Agreement pursuant to the provisions of Section 6.1 in the event of a Seller default; or 
 d. Buyer terminates this Agreement pursuant to the provisions of Section 8 in the event of a condemnation or casualty; or 
 e. Buyer terminates the Escrow pursuant to the provisions of Section 5.12, 
 then the Earnest Money Deposit shall promptly be refunded to Buyer, this Agreement shall terminate and the parties shall have no further rights or obligations hereunder except as expressly 

  

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provided for herein. Escrow Agent shall invest the Earnest Money Deposit in insured money market accounts, certificates of deposit or United States Treasury
Bills, provided that such investments are federally issued or insured. 
 2.4 Purchase Price Allocation. Buyer and Seller shall
attempt to agree on the allocation of the Purchase Price during the Review Period. If the parties are unable to agree on an allocation, each party may assign its own allocation of the Purchase Price. Any transfer tax declaration required to be filed
or recorded at Closing shall contain Buyer’s allocation of the Purchase Price. 
 2.5 Existing Loan. Seller and Buyer acknowledge
that the Existing Loan may not be defeased until June 29, 2008 (the “Lockout Expiration Date”). At Closing, Buyer shall defease the Existing Loan at its sole cost and expense; provided, however, Seller shall cooperate with Buyer in
its efforts to prepay the Existing Loan and Seller shall be responsible for its own attorneys’ fees incurred in connection with the defeasance. 
 3. PROPERTY TITLE AND CONDITION. 
 3.1 Preliminary Title Report. 
 (a) Within two (2) days following the Opening of Escrow, Seller shall provide Buyer a copy of its existing title insurance policy, exception
documents and survey, and within twelve (12) days following the Opening of Escrow, Buyer will have prepared a Preliminary Title Report/Commitment for owners title insurance for the Properties showing all liens, encumbrances and other matters
affecting the title to the Properties (the “Title Report”) and will provide a copy thereof together with legible copies of the documents shown as title exceptions or requirements therein to Seller. Buyer shall have ten (10) days
following receipt of the Title Report to object, in Buyer’s sole and absolute discretion, to any other items contained in the Title Report. Buyer shall have until the end of the Review Period to object to any items contained in the Survey (as
that term is defined in Section 3.2). Should Buyer object to any provisions contained therein, Seller shall, within five (5) days of the receipt of any such objections, advise Buyer of which title objections it will cure. Thereafter, prior
to the later of five (5) days following (x) the expiration of the Review Period or (y) receipt of Seller’s title response notice, Buyer may either: (i) reject the Title Report and the Survey, in which case this Agreement is
terminated, the parties will have no further rights or obligations hereunder (except those which specifically survive the termination of this Agreement) and the Initial Deposit shall be immediately refunded to Buyer without further instruction; or
(ii) Buyer can choose to accept the Title Report and Survey by the placement of the Additional Deposit, which signifies acceptance of the Title Report and Survey. Any cure of title objections which Seller has elected to undertake shall be
completed no later than five (5) days prior to the Closing Date. If such cure has not been completed by such time, Buyer may at such time either: (i) reject the Title Report and the Survey, in which case this Agreement is terminated, the
parties will have no further rights or obligations hereunder (except those which specifically survive the termination of this Agreement) and the Earnest Money Deposit shall be immediately refunded to Buyer without further instruction; or
(ii) Buyer can choose to accept the Title Report and Survey. 
  

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 (b) If any amended Title Reports are issued from the same title company after the expiration of the
Review Period, Buyer shall have until five (5) business days following receipt of the same to review the amendment and to accept or reject any new matters set forth on Schedule B—Section 2 (Exceptions) to the amended Title Report which do
not arise from the act or omission to act on the part of Buyer or its agents (the “New Exception(s)”) and shall be deemed to have accepted the New Exception(s) unless written notice of rejection is given to Seller on or before the
expiration of said five (5) business days. If any New Exception(s)is rejected by Buyer and Seller does not, within five (5) business days after Buyer’s rejection of the New Exception, agree to remove the New Exception, Buyer may
either: (i) reject the Title Report and the Survey, in which case this Agreement is terminated, the parties will have no further rights or obligations hereunder (except those which specifically survive the termination of this Agreement) and the
Initial Deposit shall be immediately refunded to Buyer without further instruction; or (ii) Buyer can choose to accept the Title Report and Survey by the placement of the Additional Deposit, which signifies acceptance of the Title Report and
Survey. 
 (c) In the event that Buyer accepts the Title Report, those matters listed on Schedule B, Section 2 (Exceptions to Title) of
Title Report shall be the “Permitted Exceptions”. In no event shall Permitted Exceptions include liens, or documents evidencing liens, securing any indebtedness, any mechanics’ or materialmen’s liens or any claims or potential
claims therefor covering the Properties or any portion thereof (“Seller Liens”), each of which shall be paid in full by Seller and released at Closing. 
 (d) Seller shall reasonably cooperate with Buyer to cause unacceptable matters to be removed from the Title Report, provided, however, that Seller shall have no obligation to expend money or obtain any endorsements in
order to remove any title exceptions. Seller shall, however, cause any consensual monetary liens, if any, affecting the Properties to be removed as of the Closing. 
 3.2 Survey. Within five (5) days following the Opening of Escrow, Buyer, at its sole cost and expense, will order an ALTA/ASCM survey to be prepared by a duly registered land surveyor or civil engineer
certified to Buyer and to Escrow Agent and in form acceptable to Escrow Agent to issue its owners policy of title insurance (the “Survey”). 
 3.3 Information. Within five (5) calendar days following the Opening of Escrow, Seller shall provide Buyer with access to the information described on the attached Exhibit “B”
(collectively, “Review Materials”). 
 3.4 Operating Agreements. Within five (5) calendar days following the Opening of
Escrow, Seller shall provide to Buyer as part of the Review Materials, a copy of the Operating Agreements. Within ten (10) business days following receipt of the Operating Agreements, Buyer shall provide written notice to Seller of any
Operating Agreements to which Buyer objects (the “Objectionable Agreements”); provided that Buyer may not object to any Operating Agreement that may be terminated upon thirty (30) or fewer days notice without 

  

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penalty or termination fee. Within five (5) days following notice of the Objectionable Agreements from Buyer, Seller may (i) agree to terminate
such Objectionable Agreements on or before the Closing Date, in which case this Agreement shall continue in full force and effect, or (ii) not agree to terminate such Objectionable Agreements, in which case Buyer shall have the right to
terminate this Agreement and the Initial Deposit shall be immediately refunded to Buyer without further instruction. At Closing, Buyer shall assume and become responsible for all of the liabilities and obligations which arise post Closing under all
of the Operating Agreements which Buyer has assumed, so long as Seller provided to Buyer a copy of such Operating Agreement pursuant to the provisions of Section 3.3 above. 
 3.5 Homewood Suites License. Each of the Hotels is operated by Seller pursuant to that certain Franchise License Agreement dated
(i) December 20, 1991, in the case of the San Jose Hotel and (ii) April 29, 1992, in the case of the Tukwila Hotel, (the “Existing Franchise Agreements”). Within ten (10) days following the Opening of Escrow, for
each Hotel Buyer shall apply to Licensor for a new license agreement (with an effective date no earlier than the Closing Date) to replace the Existing Franchise Agreements for the unexpired term thereof. Buyer shall be responsible for the costs of
such application and any and all transfer fees and costs payable to the Licensor in connection with the application and review for the new licenses. 
 3.6 Review Period. During the Review Period, Buyer or its agents shall have the right to enter upon the Properties to conduct surveys, hydrological, topographical, traffic, feasibility and engineering studies
and reports, to conduct tests (but not borings without the prior written consent of Seller, which consent shall not be unreasonably withheld) and environmental analyses of the soils and water, to investigate the availability and quality of access
and utilities to the Properties, and to otherwise inspect the general condition of the Properties, the cost of which shall be borne exclusively by Buyer. Buyer agrees to indemnify and hold Seller harmless from any liabilities incurred as a result of
such entrance by Buyer or its agents upon the Properties (except and excluding liability for lost business or lost employees, or resulting from Seller’s gross negligence or intentional misconduct). Buyer shall obtain or cause its consultants to
obtain, at Buyer’s sole cost and expense prior to commencement of any investigative activities on the Properties, a policy of commercial general liability insurance with limits of not less than $2 million covering any and all liability of Buyer
and Seller with respect to or arising out of Buyer’s investigative activities. Without limiting the generality of the foregoing, Buyer agrees to restore the Real Properties and Improvements to its former condition. The foregoing indemnity and
obligation to restore shall survive the Closing or any termination of this Agreement. Buyer may also review the effect of all zoning, land use, environmental building and construction laws and regulations restricting or regulating or otherwise
affecting the use, occupancy or enjoyment of the Properties. Buyer shall have until the expiration of the Review Period to accept or reject, in Buyer’s sole and absolute discretion, the Review Materials and the general condition and feasibility
of the Properties. In the event that the Buyer rejects the Properties on or before to the expiration of the Review Period, the Initial Deposit shall be immediately refunded to Buyer without further instruction and the parties shall have no further
rights or obligations hereunder except as expressly provided for herein. Should Buyer fail to make the Additional Deposit called for under Section 2.2 (b) at the expiration of the Review Period without issuing notice of its intent to
terminate the contract, the agreement is terminated and the parties shall have no further rights or obligations hereunder, with the Initial Deposit being forwarded to Seller. 
  

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 3.7 Interviews. During the Review Period, Seller shall permit Buyer and its agents to interview,
as part of its due diligence regarding the Properties (and not in connection with employment), Seller’s employees and such other persons as reasonably requested by Buyer, provided, however, that (i) such interviews shall cause minimal
disruption in Seller’s business and (ii) Buyer shall provide Seller with actual written facsimile notice, at 318-352-8276 no less than forty eight hours prior to the intended date of the interview. Notwithstanding anything contained herein
to the contrary, the General Manager and the Director of Sales (collectively, the “Retained Employees”) may be offered positions with Seller or its affiliates, and Buyer cannot interview or employ the Retained Employees without
Seller’s written consent. 
 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AND BUYER. 
 4.1 Seller’s Representations, Warranties and Covenants. Seller represents, warrants, covenants and agrees as follows: 
 (a) Organization and Power. Seller is a limited partnership, duly organized and validly existing under the laws of the State of Delaware, qualified
to do business in the state in which the Real Properties is located, and has all requisite powers to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument required to be
executed and delivered on behalf of Seller hereunder. 
 (b) Authorization and Execution. This Agreement has been duly authorized by
all necessary action on the part of Seller, has been duly executed and delivered by Seller, constitutes the valid and binding agreement of Seller and is enforceable in accordance with its terms. 
 (c) Litigation. There is no material action, suit or proceeding pending or, to the knowledge of Seller, threatened against Seller or affecting the
Properties in any court, before any arbitrator or before or by any governmental agency that is not fully covered by insurance in amounts sufficient to satisfy all claims and costs related thereto. 
 (d) Compliance with Applicable Laws. Seller has not received written notice and has no knowledge of: (i) any material violations of any laws,
statutes, ordinances, regulations or other requirements of any governmental agency in connection with the Properties (including, except as disclosed in the Review Materials, any laws related to hazardous materials); or (ii) any operation or use
of the Properties in material violation of any applicable law, statute, ordinance, rule, regulation, order or determination of any governmental authority. 
 (e) Condemnation. Seller has not received any written notice from any governmental authority regarding, and has no knowledge of, any pending or threatened condemnation, eminent domain or similar proceeding.

  

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 (f) Financial Statements. The financial statements are true and correct in all material respects
and have been prepared on a basis of accounting that has been consistently applied in accordance with generally accepted accounting principles (“GAAP”) or with such accounting adjustments to GAAP as are generally acceptable in the real
estate industry. Seller has delivered copies of all prior and current (i) Financial Statements for the Hotels, (ii) operating statements prepared by the Manager for the Hotels, and (iii) monthly financial statements prepared by the
Manager for the Hotels which have been requested by Buyer. Each of such statements is, to Seller’s knowledge, complete and accurate in all material respects and, except in the case of budgets or proformas (which Buyer agrees it has not relied
on in making the decision to purchase the Properties) prepared in advance of the applicable operating period to which such budgets relate, fairly presents the results of operations of the Hotels for the respective periods represented thereby. Seller
has relied upon the Financial Statements in connection with its ownership and operation of the Hotels during Seller’s ownership, and there are no independent audits or financial statements prepared by third parties relating to the operation of
the Hotels other than the Financial Statements prepared by or on behalf of the Manager, all of which have been provided to Buyer. 
 (g)
Taxes. During Seller’s ownership of the Properties, all federal, state and local tax requirements relating to the Properties and its operations have, to Seller’s knowledge, been complied with and, to Seller’s knowledge, all
taxes due and payable in respect of the Hotels and its operation up through the Closing shall have been paid (except as prorated herein). Seller has no knowledge of any unassessed tax deficiency or liability, interest or penalties pending or
threatened against the Properties. 
 (h) Intentionally Deleted. 
 (i) Inventory. As of the Closing Date, there will be a minimum of two (2) turns of bed linens for each guest room and a one-week supply of
normal inventory of food necessary to operate the Hotels. 
 (j) Employees. Seller is not a party to any contract with a labor union.
All employees employed at the Hotels are the employees of the Seller. There are, to Seller’s knowledge, no (i) unions organized at the Hotels, (ii) union organizing attempts, strikes, organized work stoppages or slow downs, or any
other labor disputes pending or threatened with respect to any of the employees at the Hotels, or (iii) collective bargaining or other labor agreements to which the Manager or the Hotels is bound with respect to any employees employed at the
Hotels. 
 (k) Hazardous Materials. Seller has not, during its possession of the Hotels, used, stored, disposed of or released (or
authorized the use, storage, disposal or release by a third party) toxic substances in or on the Hotels, except for in compliance with environmental laws and except for materials and supplies in the usual and customary amounts used in the ordinary
course of a Hotels business in accordance with customary industry practices and procedures. 
  

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 (l) Options to Purchase. There are no options to purchase, rights of first refusal or other
similar agreements with respect to the Properties which will survive Closing which give anyone the right to purchase the Properties or any part thereof. There are no contracts or agreements which affect the Properties, except as set forth herein.

 (m) Certificates of Occupancy. Certificates of Occupancy for all buildings and other improvements have been duly issued and all
Improvements may be legally occupied in accordance with their present occupancy. The Properties is zoned properly for the present uses made thereof. 
 (n) Franchise Compliance. Seller has furnished to Buyer true and complete copies of that certain management agreement between Seller and Dimension Development Company dated March 2, 2006 (the
“Existing Management Agreement”) and the Existing Franchise Agreements, which constitutes the entire agreement of the parties with respect to the subject matter thereof and which have not been amended or supplemented in any respect. There
are no other management agreements, franchise agreements, license agreements or similar agreements for the operation or management of the Hotels or relating to the Brand, to which Seller is a party or which are binding upon the Properties, except
for the Existing Management Agreement and the Existing Franchise Agreements. The Existing Management Agreement and the Existing Franchise Agreements are in full force and effect, and shall remain in full force and effect until the termination of the
Existing Management Agreement and the Existing Franchise Agreements at Closing, as provided in Section 14 hereof. 
 (o)
Agreements. The Seller will deliver to Buyer, within five (5) days of the Effective Date, written copies of all Operating Agreements, including without limitation, all non-recorded licenses, covenants or restrictions building plans,
equipment leases, furniture leases, construction and maintenance contracts, architects agreements, leases, service agreements, supply contracts, management agreements, and kiosk or other agreements affecting the ownership, operation, occupancy or
maintenance of the Properties on or before the commencement of the Review Period; and 
 (p) Sufficiency of Certain Items: The
Properties, on the Closing Date, shall contain not less than 
 (a) sufficient furniture, furnishings, televisions, carpets, drapes, rugs,
floor covering, mattresses, pillows, bed spreads, and the like, to furnish each guest room, so that each guest room is fully furnished; and 
 (b) two (2) sets of towels, wash cloths and bed linens, so that there are two (2) sets of towels, wash cloths and linens in the usual number for each guest room and an extra equal set on the shelves (or in the laundry), together
with a sufficient supply of paper goods, soaps, cleaning supplies and other supplies and materials reasonably adequate for the current operation of the Properties. 
  

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 (q) Operation. Seller will continue to operate the Properties in good faith prior to Closing, and
use its best efforts to solicit and secure future business at the hotel. From and after the date hereof through the Closing on the Properties, Seller shall comply with the Existing Management Agreement and the Existing Franchise Agreements and keep
the same in full force and effect and shall perform and comply with all of the following subject to and in accordance with the terms of such agreements: 
 (i) Continue to maintain the Properties generally in accordance with past practices of Seller and pursuant to and in compliance with the Existing Management Agreement and the Existing Franchise Agreements, including,
without limitation, (i) using reasonable efforts to keep available the services of all present employees at the Hotels and to preserve its relations with guests, suppliers and other parties doing business with Seller with respect to the Hotels,
(ii) accepting booking contracts for the use of the Hotels’s facilities retaining such bookings in accordance with the terms of the Existing Management Agreement and the Existing Franchise Agreements, (iii) maintaining the current
level of advertising and other promotional activities for the Hotels’s facilities, (iv) maintaining the present level of insurance with respect to the Hotels in full force and effect until the Closing Date for the Hotels and
(v) remaining in compliance in all material respects with all current Licenses. However, nothing herein shall be interpreted to require Seller to expend capital funds unless an item is broken and needs to be replaced; 
 (ii) Keep, observe, and perform in all material respects all its obligations under and pursuant to the Operating Agreement, the Existing
Management Agreement, the Existing Franchise Agreements and all other applicable contractual arrangements relating to the Hotels; 
 (iii) Not cause or permit the removal of FF&E from the Hotels except for the purpose of discarding worn and valueless items that have been replaced with FF&E of equal or better quality; timely make all repairs and maintenance, to
keep all FF&E and all other Personal Properties and all Real Properties in good operating condition; keep and maintain the Hotels in a good state of repair and condition, reasonable and ordinary wear and tear excepted; and not commit waste of
any portion of the Hotels; 
 (iv) Maintain the levels and quality of the Personal Properties generally at the levels and
quality existing on the date hereof and keep merchandise, supplies and inventory adequately stocked, consistent with good business practice, as if the sale of the Hotels hereunder were not to occur, including, without limitation, maintaining linens
and bath towels at least at a 2-par level for all suites or rooms of the Hotels; 
 (v) Advise Buyer promptly of any
litigation, arbitration, or administrative hearing before any court or governmental agency concerning or affecting the Hotels which is instituted or threatened after the date of this Contract or if any representation or warranty contained in this
Contract shall become false; 
  

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 (vi) Not take, or purposefully omit to take, any action that would have the effect of
violating any of the representations, warranties, covenants or agreements of Seller contained in this Contract; 
 (vii) Pay
or cause to be paid all taxes, assessments and other impositions levied or assessed on the Hotels or any part thereof prior to the delinquency date, and comply with all federal, state, and municipal laws, ordinances, regulations and orders relating
to the Hotels; 
 (viii) Not sell or assign, or enter into any agreement to sell or assign, or create or permit to exist any
lien or encumbrance (other than a Permitted Exception) on, the Properties or any portion thereof; and 
 (ix) Not allow any
permit, receipt, license, franchise or right currently in existence with respect to the operation, use, occupancy or maintenance of the Hotels to expire, be canceled or otherwise terminated. 
 Seller shall promptly furnish to Buyer copies of all new, amended or extended Operating Agreements (other than routine hotel room bookings entered into in the ordinary
course of business) relating to the Hotels and entered into by the Existing Manager prior to Closing; provided, however, that in the case of any of the foregoing entered into by the Existing Manager on its own behalf, only to the extent Seller has
knowledge thereof or a copy of which is obtainable from the Existing Manager. Buyer shall have the right to extend the Review Period for a period of five (5) Business Days in order to review any of the foregoing that are not received by Buyer
at least five (5) Business Days prior to the expiration of the Review Period. Seller shall not, without first obtaining the written approval of Buyer, which approval shall not be unreasonably withheld, enter into any new Operating Agreements or
other contracts or agreements related to the Hotels, or extend any existing such agreements, unless such agreements (x) can be terminated, without penalty, upon thirty (30) days’ prior notice or (y) will expire prior to the
Closing Date. 
 If after the Opening of Escrow, but before Closing, Seller learns of facts or circumstances which make any of the foregoing representations
or warranties materially inaccurate, Seller shall notify Buyer in writing of such facts or circumstances within three (3) business days after learning of the same but prior to the Closing and Buyer may elect, within three (3) business days
after receipt of Seller’s notice but prior to the Closing, to terminate this Agreement by giving written notice to Seller and Escrow Agent. If Buyer fails to deliver such a termination notice, then Buyer shall be deemed to have: (i) waived
its right to terminate this Agreement, (ii) elected to acquire the Properties on the terms set forth in this Agreement and (iii) waived all remedies at law or in equity with respect to any inaccuracy in the representations or warranties
resulting from the facts or circumstance disclosed by Seller in its notice to Buyer. 
  

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 If after the Closing Buyer learns of facts or circumstances which existed prior to the Closing, but were not discovered
until after the Closing, which facts or circumstances made any of the foregoing representations or warranties materially inaccurate as of the Closing Date, then Buyer shall have all remedies at law or in equity against Seller with respect to any
inaccuracy in the representations or warranties, unless such facts or circumstances could not have been reasonably discharged by Seller. 
 Any
representations or warranties made herein to Seller’s knowledge shall be deemed to be based only upon the actual knowledge of Allan V. Rose or Sam Friedman, without imputation as to constructive knowledge. As used in this Agreement, the term
“knowledge” or “actual knowledge” shall mean only that nothing is known by or has come to Seller’s attention which would be inconsistent with or violative of the representations. In the event that Buyer discovers prior to
the Closing Date that any representation or warranty of Seller set forth in this Agreement is untrue or inaccurate as of the Closing Date but nevertheless elects to close the purchase of the Properties, Buyer shall conclusively be deemed to have
waived any claim it may otherwise have against Seller predicated on such untrue or inaccurate warranty. 
 (r) Access to Financial
Information. Buyer’s representatives shall have access to, and Seller and its Affiliates shall cooperate with Buyer and furnish upon request by making available at Seller’s offices or at the Properties, all financial and other
information (including the last 3 years’ financial statements), if in our possession, relating to the Hotels’s operations to the extent necessary to enable Buyer’s representatives to prepare audited financial statements in conformity
with Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules and regulations of the SEC and to enable them to prepare a registration statement, report or disclosure statement for filing
with the SEC on behalf of Buyer or its Affiliates, whether before or after Closing and regardless of whether such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide to Buyer’s representative a
signed representation letter in form and substance reasonably acceptable to Seller sufficient to enable an independent public accountant to render an opinion on the financial statements related to each Hotels. Buyer will reimburse Seller for costs
reasonably incurred by Seller to comply with the requirements of the preceding sentence to the extent that Seller is required to incur costs not in the ordinary course of business for third parties to provide such representation letters. The
provisions of this Section shall survive Closing or termination of this Agreement. 
 4.2 Buyer’s Representations and Warranties.
Buyer represents, warrants and agrees that: 
 (a) Organization and Power. Buyer is a corporation duly organized, validly existing and
in good standing under the laws of the State of Virginia and has all requisite powers to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument required to be executed and
delivered on behalf of Buyer hereunder. 
  

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 (b) Authorization and Execution. This Agreement has been duly authorized by all necessary action
on the part of the Buyer, has been duly executed and delivered by the Buyer, constitutes the valid and binding agreement of Buyer and is enforceable in accordance with its terms. There is no other person or entity who has an ownership interest in
the Properties or whose consent is required in connection with Buyer’s performance of its obligations hereunder. 
 (c)
Litigation. To the knowledge of Buyer, there is no action, suit or proceeding pending or threatened against or affecting Buyer in any court, before any arbitrator or before or by any governmental agency. 
 4.3 Additional Acknowledgments. 
 4.3.1 Except as expressly set forth in this Agreement: (a) Buyer acknowledges that no person acting on behalf of Seller is authorized to make, and by execution and/or closing, Buyer acknowledges that no such person has made, any
representation, warranty, guaranty or promise, whether oral or written; (b) Seller hereby disclaims all representations and warranties, express or implied or otherwise arising by operation of law, arising out of or with respect to the execution
of this Agreement, any aspect, status, condition, or element of the Properties, including, without limitation, any and all implied warranties of merchantability and/or fitness for a particular purpose; and (c) Buyer is and shall be purchasing
the Properties in its “AS IS, WHERE IS CONDITION WITH ALL FAULTS” and Seller shall have no liability to Buyer with respect to the condition of the Properties under common law, or any federal, state or local law or regulation. 

4.3.2 Buyer covenants and agrees that prior to the expiration of the Review Period, Buyer will have: (a) performed its own due diligence
examination with respect to all matters affecting the Properties, including, but not limited to, those contained in or within the scope of, Seller’s representations and warranties in this Agreement; and (b) thoroughly investigated to its
full satisfaction, any and all other matters or rights included in this sale, together with any underlying encumbrances, covenants or restrictions pertaining to the Properties. Buyer is satisfied with respect to the probable risk, worth and
potential of the Properties and Buyer has relied upon its own judgment and decision in entering into and consummating this purchase and sale. Except as contained in Section 4.1 above, Buyer acknowledges that Seller has made no
representations or warranties, either express or implied, regarding the presence of any Hazardous Materials (as defined below) in, on or under the Hotels. By proceeding with this transaction following the expiration of the Review Period, Buyer will
be deemed to have made its own independent investigation of the Hotels with regard to the presence or absence of Hazardous Materials as Buyer deems appropriate. As used herein, the term “Hazardous Material(s)” includes, without
limitation, (A) any materials, substances or wastes which are toxic, ignitable, corrosive, reactive, or otherwise hazardous or potentially hazardous, and which are regulated by any local governmental authority, any agency of any state or county
in which any of the Hotels is located, or any agency of the United States government, (B) any other material, substance, or waste which is defined or regulated as a hazardous material, extremely hazardous material, hazardous waste or toxic
substance pursuant to any laws, rules, 

  

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regulations or orders of the United States government, or any state or county in which any of the Hotels is located, (C) asbestos, (D) petroleum
and petroleum based products, (E) formaldehyde, (F) polychlorinated biphenyls (PCBs), (G) radon, and (H) freon and other chlorofluorocarbons 
 4.3.3 Buyer acknowledges and agrees that Seller does not represent or warrant the accuracy, sufficiency or completeness of any documents, reports, and information prepared or furnished by third parties, including, but
not limited to, the Review Materials, and all other information provided to Buyer regarding the Properties, whether written or verbal (collectively, “Documents and Information”). Buyer covenants and agrees to make its own independent
investigation and verification of the accuracy, sufficiency and completeness of the Documents and Information. Buyer acknowledges that the Documents and Information do not predict the degree to which the business to be conducted on the Real
Properties and Improvements may succeed, if at all. Buyer agrees that it shall not attempt to assert any liability upon Seller for furnishing any Documents or Information to Buyer. 
 4.3.4 Buyer understands the speculative nature of operating the business to be conducted on the Real Properties and Improvements and that Seller in no
way guarantees whether the business to be conducted on the Real Properties and Improvements may succeed or whether Buyer will recover any amounts invested in the business to be conducted on the Real Properties and Improvements. 
 4.4 Survival. Each and every representation, warranty and agreement of Seller and Buyer shall (i) be true as of the date hereof and the
Closing Date; (ii) survive the Closing Date and the passage of title pursuant to this Agreement for a period of six months; and (iii) be considered material and any breach thereof shall be an event of default and shall entitle the damaged
party to utilize any and all remedies available under this Agreement. 
 4.5 Indemnity 
 4.5.1 By Seller. From and after the Closing, Seller shall indemnify and hold Buyer harmless from and be liable to Buyer for, any and all damages,
liabilities, costs and expenses (collectively “Losses”) sustained by Buyer (including, without limitation, all reasonable legal fees and costs), resulting from or attributable to (a) Seller’s ownership, use, maintenance and
operation of the Properties prior to the Closing Date and (b) all accounts payable, operating expenses, costs and other charges incurred for periods prior to the Closing Date. 
 4.5.2 By Buyer. From and after the Closing, Buyer shall indemnify and hold Seller harmless from and be liable to Seller for, any and all damages,
liabilities, costs and expenses (collectively “Losses”) sustained by Seller (including, without limitation, all reasonable legal fees and costs), resulting from or attributable to (a) Buyer’s ownership, use, maintenance and
operation of the Properties on and after the Closing Date and (b) all accounts payable, operating expenses, costs and other charges incurred for periods on and after the Closing Date. 
  

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 4.5.3 Defense of Claim. In case any claim, demand or deficiency (a “Claim”) is asserted
or any action is commenced or notice is given of any administrative or other proceeding against a party hereto (“Indemnified Party”) in respect of which indemnity properly sought against the other party (“Indemnitor”) pursuant to
this Agreement, Indemnified Party shall give prompt notice thereof in writing to Indemnitor. Within 30 days after receipt of such notice (or prior to such earlier date as any answer in any administrative or other proceeding is due), Indemnitor may
give Indemnified Party written notice of its election to conduct the defense of such Claim at its own expense (and any separate counsel engaged by Indemnified Party shall be at its expense). If Indemnitor has given Indemnified Party such notice of
election to conduct the defense, Indemnified Party shall nevertheless have the right to participate in the defense thereof, but such participation shall be solely at its expense. If Indemnitor shall not notify Indemnified Party in writing (within
the time hereinabove provided) of its election to conduct the defense of such Claim, Indemnified Party may (but need not) conduct (at the expense of Indemnitor) the defense of any Claim. The party assuming the defense of a Claim hereunder (the
“Defending Party”) shall notify the other party of its intention to settle, compromise or satisfy any such Claim and may make such settlement, compromise or satisfaction unless such other party (the “Assuming Party”) shall notify
the Defending Party in writing (within 30 days after receipt of such notice of intention to settle, compromise or satisfy) of its election to assume (at its sole expense) the defense of any such Claim and promptly thereafter take appropriate action
to implement such defense. The Assuming Party shall indemnify the Defending Party and hold it harmless against any losses in excess of the amount of losses the Defending Party would have incurred if the proposed settlement had been agreed to.
Indemnified Party shall cooperate with Indemnitor in any defense, at Indemnitor’s cost, and Indemnified Party shall provide reasonable access to, and copies of, records requested by Indemnitor and shall provide the reasonable assistance of
Indemnified Party’s employees in connection with any defense. 
 5. CLOSE OF ESCROW AND ACTIONS OF THE PARTIES. Subject to the
performance of all obligations of the parties hereunder, Escrow shall close on or before the Closing Date. Any deed, bill of sale, or assignment for transfer of the Properties to Buyer shall be submitted to Buyer in final form for review and
reasonable approval no later than ten (10) days prior to the Closing Date. All moneys and documents required to be delivered shall be deposited in Escrow no later than 3:00 p.m. Pacific Coast time on the Closing Date. 
 5.1 Seller Deposits. Seller shall deposit (or cause to be deposited) the following: 
 (a) For each Property, a Special Warranty Deed subject to the Permitted Exceptions, and an Affidavit of Property Value. 
 (b) Proof of the existence of Seller and the authority of the person signing on its behalf reasonably acceptable to Escrow Agent to cause it to issue
its extended owner’s policy of title insurance for the Real Properties insuring Buyer following close of Escrow. 
  

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 (c) For each Property, a Bill of Sale for the FF&E and Inventory and an endorsed title for the motor
vehicle (if any). 
 (d) For each Property, an Assignment and Assumption Agreement conveying all of Seller’s right, title and interest
in and to the Operating Agreements and Warranties and Intangibles which are assignable. 
 (e) All keys, books, records, files, logs,
registration books (including guest ledgers), sales client contact and revenue history, and all other materials in Seller’s possession or control which are necessary to maintain continuity of operation of the Hotels. 
 (f) A list of all employees by name, indicating each such employee’s salary or wage and applicable benefits. Other than the Retained Employees,
Seller shall terminate all employees on, and no employment contracts with employees shall exist as of, the Closing Date and Seller will pay any and all accrued and earned severance payments or benefits and accrued vacation and other benefits that
have accrued or may be payable to such employees on or before 12:01 a.m. on the Closing Date. 
 (g) A certification of non-foreign status
in substantially the form contemplated under Section 1445(a) of the Internal Revenue Code. 
 (h) Termination of the Existing
Management Agreement executed by Seller and Manager. 
 (i) Possession of the Properties, subject only to rights of guests in possession and
tenants pursuant to written leases included in the Leases, and estoppel certificates from tenants under Leases and the lessors under FF&E Leases in form and substance acceptable to Buyer. 
 (j) Such other documents as may reasonably be required by Buyer, its counsel, or Escrow Agent, to consummate the transaction which is the subject matter
of this Agreement. 
 5.2 Buyer Deposits. Buyer shall deposit (or cause to be deposited) the following: 
 (a) Cash or certified funds in the amount set forth in the approved Settlement Sheet of Escrow Agent. 
 (b) For each Property, an Affidavit of Property Value. 
 (c) For each Property, an Assignment and Assumption Agreement referenced in Section 5.1(d). 
  

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 (d) Evidence satisfactory to Seller, in its reasonable discretion, that (i) Hilton, under the
franchise agreement to which Seller is a party, has fully and unconditionally released Seller, and any guarantors from any and all loss, cost, liability, or expense (other than franchise or license fees accrued up to and through the Closing Date)
under such franchise for any termination or cancellation fee payable by Seller thereunder and for any post-closing obligations assumed by Buyer and its affiliates pursuant to the replacement franchise agreement and associated guaranty agreement, and
(ii) the franchise agreement has been terminated effective as of the Closing Date by reason of Buyer having entered into a replacement franchise agreement with respect thereto. Seller shall reasonably cooperate with Buyer during the Review
Period if and to the extent Buyer wishes to enter into any such replacement franchise agreement with Hilton. Notwithstanding anything contained in this Agreement to the contrary, a failure to obtain a release of Seller and/or a replacement franchise
agreement shall not be a default by Buyer hereunder, rather, it shall be a failure of a condition to both parties’ obligation to close which will entitle the party to whom the condition belongs (i.e., the release belongs to Seller; the
replacement franchise belongs to Buyer) only to terminate this Contract whereupon the Earnest Money Deposit shall be returned to Buyer. 
 (e) Such other documents as may reasonably be required by Seller, its counsel, or Escrow Agent to consummate the transaction which is the subject matter of this Agreement. 
 5.3 Prorations. Except as may be otherwise expressly provided herein, all revenues, income
and expenses (including utility expenses and credit card adjustments) of the Properties with respect to the period prior to 12:01 a.m. on the Closing Date (but only including 50% of that night’s room revenues) shall be for the account of
Seller; and 50% of that night’s room revenues plus all revenues, income and expenses of the Properties with respect to the period after 12:01 a.m. on the Closing Date (including all deposits or advances related to advance bookings or
reservations exclusive of interest earned thereon through the Closing Date) for periods from and after the Closing Date) shall be for the account of Buyer. Seller shall deliver to Buyer the cash on hand at the Hotels on the Closing Date (except that
cash which constitutes Seller’s 50% share of the room revenues). Only real property taxes and assessments and personal property taxes will be prorated inside of Escrow on the settlement statement; all other prorations shall be made outside of
Escrow, in accordance with local custom in Santa Clara County, California, as to the San Jose Hotel and King County, Washington, as to the Tukwila Hotel, as reflected in a separately executed proration statement, shall be allocated, reconciled and
paid by check or wire transfer directly between the parties as soon as practicable on or after the Closing Date and may include, but not be limited to, income items such as revenues (prepaid or otherwise) from room, beverage, telephone and other
similar charges, and expense (prepaid or otherwise) items such as utilities and amounts under Operating Agreements. If real property taxes and assessments to be assumed by Buyer are unavailable on the Closing Date, a re-adjustment of such taxes and
assessments assumed by Buyer shall be made within thirty (30) days after the Closing or if longer, as soon as such taxes and assessments and charges or expenses assumed by Buyer are available. Should the sale occur after June 30th, and the property be re-assessed due to the sale contemplated herein for the tax year in which Closing occurs, a re-adjustment shall occur, and the figures
from the re-assessment shall form the basis for the pro-ration 

  

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amount. Notwithstanding the immediately preceding sentence, if a re-assessment occurs for future tax periods (i.e., for any period from and after Closing),
no re-adjustment shall occur. The parties agree to cooperate in good faith in effecting such a final reconciliation and each party shall promptly pay (or reimburse the other party for) any expense item that is chargeable to the former party and
shall promptly remit any income item to the other party if entitled thereto. In the event any adjustments pursuant to this Section 5.3 are, subsequent to Closing, found to be erroneous, then either party hereto is entitled to additional
monies and shall invoice the other party for such additional amounts as may be owing, and such amount shall be paid promptly by the other party upon receipt of the invoice. Such invoice shall be accompanied by reasonable substantiating evidence.

 The provisions of this Section 5.3 shall survive the delivery of the Deed. 
 5.4 Title Insurance. At the close of Escrow, Buyer shall have obtained an extended Owner’s policy of title insurance, in the amount of the
Purchase Price, insuring Buyer that Buyer has acquired good and marketable fee simple title to the Properties in the amount of the Purchase Price, subject only to the Permitted Exceptions. Buyer shall be responsible for any premium attributable to
the standard coverage and Buyer shall be responsible for any premium attributable to extended coverage and any costs associated therewith and all endorsements. 
 5.5 General. All payments shall be in United States currency, wire transferred funds or certified funds. Buyer and Seller shall execute and deliver any additional documents required under this Agreement or
necessary to complete the transactions contemplated by this Agreement as provided herein, both prior to and following close of Escrow. Possession of and risk of loss in connection with the Properties shall be transferred by Seller to Buyer at close
of Escrow. Escrow Agent shall close Escrow when it is in a position to issue its title insurance policy as required for the Properties and to otherwise perform under this Agreement. 
 5.6 Further Contracts, Leases and Agreements. From the date hereof, until the earlier of the Closing or the termination of this Agreement, Seller
will operate the Hotels in accordance with the following provisions: 
 (a) Seller shall not, without the prior written consent of Buyer,
operate the Hotels and hold the Properties otherwise than in a manner consistent with past practices and the ordinary course of business; 
 (b) Seller shall not dispose of any Hotels furniture, fixtures or FF&E other than in the ordinary course of business or sell, assign, or create any right, title or interest in the Properties; and 
 (c) Seller shall not, without the prior written consent of Buyer, enter into any further contracts, leases or agreements relating to the Properties, or
extend, renew or amend existing contracts and agreements, other than in the ordinary course of business and only if the same is terminable upon 30 days notice without penalty or termination fee of any kind. 
  

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 For purposes of this Agreement, the term “ordinary course of business” means the ordinary course of business
consistent with the past custom and practice of the Seller (including with respect to quantity, quality and frequency.) 
 5.7 Bulk
Sale. To the extent such laws are applicable to the transactions contemplated herein, Buyer and Seller waive compliance with the uniform commercial code provisions of the laws of any jurisdiction regarding bulk transfers, and Seller covenants
and agrees to pay and discharge when due, unless contested by appropriate proceedings, all creditors and all liabilities of Seller pertaining to the Properties. 
 5.8 Closing Costs. In addition to any other costs or expenses set forth in this Agreement, Seller shall pay the real estate commission, the fees and costs of Seller’s counsel and consultants, any sales,
transfer, recordation and/or mansion taxes, and one-half of Escrow Agent’s escrow fee. In addition to any other costs or expenses set forth in this Agreement, Buyer shall pay one-half of Escrow Agent’s escrow fee, all costs for the
owner’s title policy and all endorsements thereto, all costs incurred in connection with its financing arrangements including any loan assumption fee, if any, all costs and expenses incurred by Buyer and its representatives in inspecting or
evaluating the Properties and the fees and costs of Buyer’s counsel and consultants. 
 5.9 Recordation of Deed. The recording of
the Dees in the official records of Santa Clara County, California and King County, Washington shall be deemed to evidence full performance and discharge of every agreement and obligation on the part of Seller hereunder, except those which are
herein specifically stated to survive the Closing or which are specifically stated in any other closing document to survive the delivery thereof. 
 5.10 Liquor License. Seller will cooperate in all reasonable respects (which shall include, without limitation, supplying information known to Seller and execution of such documents as may be legally required) with Buyer in
connection with the application for a new liquor license by Buyer (the “Liquor Application”) to the extent reasonably necessary. Buyer shall diligently and in good faith proceed with the Liquor Application. If prior to the
Closing Buyer is unable to obtain a new liquor license or a temporary permit to operate pending issuance of a new liquor license or to receive assurances that it can continue to use the existing liquor license following the Closing, then, Seller
shall, at no expense to Seller, provide reasonable assistance to Buyer in negotiating an interim arrangement (the “Interim Arrangement”) whereby Seller shall assist in the operation of the liquor concessions at the Hotels on
behalf of Buyer pending the issuance of the liquor license or a temporary permit to operate to Buyer. In such event, Buyer shall indemnify, defend and hold Seller harmless from and against any and all claims, liabilities, costs and expenses
(including, without limitation, reasonable attorneys’ fees and costs) arising in connection with such operation and provide such insurance coverage against any and all liability relating to operation of the liquor concessions at the Hotels as
Seller may reasonably require. 
 5.11 Escrow Funds. To provide for the timely payment of any post-closing claims by Buyer against
Seller hereunder, at Closing, Seller shall deposit an amount equal to 

  

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Fifty Thousand and No/100 Dollars ($50,000.00) (the “Escrow Funds”) per property which shall be withheld from the Purchase Price
payable to Seller and shall be deposited for a period of six months in an escrow account with the Title Company pursuant to an escrow agreement reasonably satisfactory in form and substance to Buyer and Seller (the “Post-Closing
Agreement”), which escrow and Post-Closing Agreement shall be established and entered into at Closing and shall be a condition to Buyer’s obligations under this Contract. If no claims have been asserted by Buyer against Seller, or
all such claims have been satisfied, within such six month period, the Escrow Funds deposited by Seller shall be released to Seller. This escrow provision being further subject to that certain agreement dated as of even date herewith, a copy of
which is attached hereto. 
 5.12 Buyer’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to
Buyer’s right to cancel this Contract during the Review Period, the duties and obligations of Buyer to proceed to Closing under the terms and provisions of this Contract are and shall be expressly subject to strict compliance with, and
satisfaction or waiver of, each of the conditions and contingencies set forth in this Section 5.12, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in this
Section 5.12 or of any other condition to Buyer’s obligations provided for in this Contract, which condition is not waived in writing by Buyer, Buyer shall have the right at its option to declare this Contract terminated, in which case the
Earnest Money Deposit and any interest thereon shall be immediately returned to Buyer and each of the parties shall be relieved from further liability to the other, except as otherwise expressly provided herein, with respect to this Contract.

 (a) All of Seller’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all
material respects as if made again on the Closing Date. 
 (b) Buyer shall have received all of the instruments and conveyances listed in
Section 5.1. 
 (c) Seller shall have performed, observed and complied in all material respects with all of the covenants, agreements,
closing requirements and conditions required by this Contract to be performed, observed and complied with by Seller, as and when required hereunder. 
 (d) All Liquor Licenses shall be in full force and effect and shall remain in full force and effect following Closing and shall have been or shall be transferred to, or new Liquor Licenses issued to, the Manager or an
Affiliate thereof approved by Buyer within ninety (90) days of Closing, and Buyer shall have received satisfactory evidence thereof. 
 (e) Third Party Consents in form and substance satisfactory to Buyer shall have been obtained and furnished to Buyer. 
 (f) The
Escrow Funds shall have been deposited in the escrow account pursuant to the Post-Closing Agreement and the parties thereto shall have entered into the Post-Closing Agreement. 
  

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 (g) The Existing Management Agreement shall have been terminated. 
 (h) Buyer and the Franchisor shall have executed and delivered the New Franchise Agreement, in each case upon terms and conditions acceptable to Buyer in
its sole and absolute discretion. 
 (i) The Existing Loan shall have been defeased or prepaid in full and the Properties shall be free of
lien of the Existing Loan. Provided this Contract has not been terminated, Buyer, with cooperation from Seller, shall commence the defeasance process for the Existing Loan as soon as reasonably practicable after the expiration of the Review Period.

 5.13 Seller’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Seller’s right to
cancel this Contract during the Review Period, the duties and obligations of Seller to proceed to Closing under the terms and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or waiver of,
each of the conditions and contingencies set forth in this Section 5.13, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in this Section 5.13, which condition is not
waived in writing by Seller, Seller shall have the right at its option to declare this Contract terminated and null and void, in which case the remaining Earnest Money Deposit and any interest thereon shall be immediately paid to Seller and each of
the parties shall be relieved from further liability to the other, except as otherwise expressly provided herein. The conditions are: 
 (a)
All of Buyer’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all material respects as if made again on the Closing Date. 
 (b) Seller shall have received all of the money, instruments and conveyances listed in Section 5.2. 
 (c) Buyer shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing requirements and conditions
required by this Contract to be performed, observed and complied with by Buyer, as and when required hereunder. 
 5.14 Cure Rights.
Notwithstanding Sections 5.12 or 5.13 to the contrary, neither party will exercise its right to terminate this Contract in accordance with 5.12 or 5.13 above, as applicable, without first giving the other party five (5) business days’ (or
longer in the notifying party’s discretion) notice and opportunity to satisfy the failed condition(s). If, after such notice and cure period the condition remains unsatisfied, this Section 5.14 will be of no further force and effect and
this Contract shall be interpreted as if this Section was never included. 
  

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 6. DEFAULT. 
 6.1 Seller Default. In the event that, on or before the Close of Escrow, Seller breaches any warranty or representation contained herein or at any time fails to comply with or perform any of the conditions,
covenants, agreements or obligations to be performed by Seller hereunder (“Seller Breach”), then Buyer may elect, upon giving written notice to Seller (i) to terminate this transaction and Escrow, in which event Buyer shall receive a
refund of the Earnest Money Deposit (together with all interest thereon), and Seller shall reimburse Buyer for Buyer’s reasonable and actual out of pocket expenses incurred by Buyer not to exceed $50,000 or (ii) to treat this Agreement as
being in full force and effect in which event Buyer shall have the right to an action against Seller for specific performance and the costs (including reasonable attorneys’ fees) for prosecuting such action. 
 6.2 Buyer Default. In the event that, on or before the Close of Escrow, Buyer breaches any warranty or representation contained herein or at any
time fails to comply with or perform any of the conditions, covenants, agreements or obligations to be performed by Buyer hereunder, then Seller, as its exclusive and sole remedy for such breach or failure shall be entitled to retain the Earnest
Money Deposit as full liquidated damages therefor. The parties acknowledge that it is impossible to more precisely estimate the specific damage which would be suffered by Seller in the event of such breach or failure by Buyer, and the parties
expressly acknowledge and intend that this provision is a provision for liquidated damages and not a penalty provision. 
 7.
COMMISSIONS. Each party represents and warrants to the other that the party has not dealt with any real estate brokers or salesmen, finders or other persons or entities of any kind or nature who may make a claim for a commission in connection
with this transaction, and each party shall indemnify and hold harmless the other from and against any and all liability, responsibility, claims, losses, damages, costs, expenses and attorneys’ fees of any kind or nature incurred or sustained
by the other party as a result of the claim of any person or entity for a commission or finders fee resulting from the activities or actions of the party. This paragraph shall survive the close of Escrow or termination of this Agreement. 

8. INSURANCE/CASUALTY/CONDEMNATION. Seller agrees that it will keep the Properties insured against casualty until the Closing Date under its
existing insurance policies or replacement policies with the same coverage as existing at the date of execution hereof. Such policies shall be terminated by Seller at the Closing Date. In the event that, prior to the Closing Date, all or any portion
of the Properties shall be destroyed by fire or other casualty, or taken by condemnation or exercise of the right of eminent domain, or if proceedings therefor shall be instituted or threatened and the amount of any such damage or condemnation
exceeds $100,000 per property, then Buyer may, within ten (10) days of its receipt of notice of such event, elect to terminate this Agreement by written notice to Seller and Escrow Agent. If the damage or condemnation is equal to or less than
$100,000 per property or if the damage or condemnation exceeds $100,000 per property but Buyer does not terminate this Agreement, then the parties shall proceed to close the transaction contemplated hereby, in which event any insurance or
condemnation proceeds (excluding rental loss proceeds attributable to the period prior to the Closing Date) shall inure to the benefit of Buyer and shall be assigned by Seller to Buyer at close of Escrow. In the event the parties proceed to close
the transaction contemplated hereby, Seller shall pay any required deductible applicable to such insurance coverage, or the Purchase Price shall be reduced by the amount of any such deductible. 
  

 -24- 

 9. GENERAL. 
 9.1 Successor Benefits; Nominee. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, assigns and legally appointed representatives of the parties hereto except as
specifically provided herein to the contrary. Except for an assignment by Buyer in whole or in part to an affiliate of Buyer or entity wholly owned by Buyer or an affiliate of Buyer or an assignment in connection with the execution of the provisions
of Section 14, Buyer shall not be entitled to assign its interest under this Agreement without Seller’s prior written consent, which consent shall not be unreasonably withheld 
 9.2 Time of Essence. Time shall be considered of the essence in this Agreement. 
 9.3 Severability. If any provision in this Agreement or any application thereof shall be invalid or unenforceable, the remainder of this Agreement
and any other application of such provision shall not be affected thereby and shall not be rendered invalid or unenforceable. 
 9.4
Notices. Any notice, consent, request or other communication required or permitted to be given hereunder shall be in writing, shall be: (a) personally delivered; (b) delivered by Federal Express or other comparable overnight
delivery service; (c) electronically transmitted via facsimile or email to the contact information detailed above; or (d) transmitted by United States certified mail, return receipt requested with postage prepaid, and shall be addressed to
the addresses first set forth above, or such other addresses as may be designated hereafter by either party. Unless otherwise specified, all notices and other communications shall be deemed to have been duly given on the first to occur of actual
receipt of the same or: (i) the date of delivery if personally delivered; (ii) one (1) business day after depositing the same with the delivery service if by overnight delivery service; and (iii) three (3) business days
following posting if transmitted by mail. 
 9.5 Work Product. Effective upon and in the event of a termination of this Agreement for
any reason, Buyer shall return all materials and information given to it by Seller or any of their consultants during the Escrow, in the same condition as delivered to Buyer. 
 9.6 Legal Expenses. In the event that a party employs attorney(s) to enforce the provisions of this Agreement, the non-prevailing party agrees to
pay the prevailing party’s reasonable attorney fees and all expenses reasonably incurred at, before or after trial and on appeal, whether or not taxable as costs, or in any bankruptcy proceeding. 
 9.7 Amendment and Waiver. The parties hereto may by mutual agreement amend this Agreement in any respect, provided that any such amendment shall
be in writing, signed by both parties. The waiver of any condition under this Agreement shall not constitute a future waiver of said condition or any other condition. 
  

 -25- 

 9.8 Headings; Construction and Governing Law. The headings of the paragraphs herein are for the
convenience of the parties only and shall not affect the meanings or interpretations of the contents thereof. The laws of the State of California (without giving effect to its choice of law principles) shall govern the validity, performance,
interpretation and enforcement of this Agreement. Each party hereby consents to the jurisdiction and venue of any court of competent jurisdiction in San Jose, California. 
 9.9 Entire Agreement. The entire agreement between Buyer and Seller is expressed herein. 
 9.10
Counterparts. This Agreement may be executed in any number of counterparts and each such executed counterpart shall constitute one and the same agreement. 
 9.11 Further Assurances. In addition to the respective obligations required to be performed under this Agreement, Seller and Buyer shall each perform, at the close of Escrow or from time to time thereafter,
such other acts, and shall execute, acknowledge and/or deliver such other instruments, documents and other materials, as may be reasonably required in order to consummate the transaction described in this Agreement. It is understood and agreed,
inter alia, that the foregoing provisions shall not be deemed to require either party to perform any of the obligations of the other. 
 9.12
Escrow Instructions. Without requiring separate signatures, Seller and Buyer hereby adopt the standard printed terms of the escrow instructions now used by Escrow Agent, provided, however, that: 
 (a) any conflict between the printed form of escrow instructions and the express terms of this Agreement shall be resolved in favor of the express terms
of this Agreement; 
 (b) the following provisions shall be deemed deleted from the printed form of escrow instructions, whether or not
crossed out or otherwise obliterated by the Escrow Agent: 
 1. any provision granting the Escrow Agent a lien on the Properties or any
portion thereof with respect to any amount owed by any party to the Escrow Agent as such or in consideration of its issuance, as insurer, of the title policy; 
 2. any provision purporting to indemnify the Escrow Agent with respect to any liability which it may incur as a result of its intentional or negligent acts or omissions while serving as Escrow Agent (including,
without limitation, acts or omissions of an insurer); 
  

 -26- 

 3. any provision purporting to provide for a notice of default or other failure to perform or a
cancellation of the transactions, including, but not limited to, any “13 day” cancellation notices; and 
 4. any provision under
which the Escrow Agent is entitled to a fee for its service as such if this Agreement is terminated at or prior to the Closing. 
 10. TAX
REPORTING. Escrow Agent, as the party responsible for closing the transaction contemplated hereby within the meaning of Section 6045(e)(2)(A) of the Internal Revenue Code of 1986, as amended (“the Code”), shall file all necessary
information, reports, returns, and statements (collectively, the “Reports”) regarding the transaction required by the Code including, but not limited to, the reports required pursuant to Section 6045 of the Code. Escrow Agent further
agrees to indemnify and hold Buyer, Seller, and their respective attorneys and brokers harmless from and against any and all claims, costs, liabilities, penalties, or expenses resulting from Escrow Agent’s failure to file the reports Escrow
Agent is required to file pursuant to this Section 10. 
 11. CONFIDENTIALITY. All of the confidential information exchanged
between Buyer and Seller is confidential and is to be kept confidential by the parties, who may, however, disclose same, on a “need-to-know” basis, to their directors, officers, prospective investors and partners, employees, agents,
advisors, attorneys, accountants, consultants, bankers and financial advisors. Before disclosing any such information to such representatives or authorizing them to receive any such information, each party shall instruct them to keep that
information confidential in the same manner. Except with respect to any financial information provided by one party to the other, the foregoing provisions of this Article shall terminate at Closing if Buyer does in fact purchase the Properties. The
term confidential information is all information provided by a party except information available in public records, information that is or becomes generally available to the public because of release by the respective party or information that must
be released under applicable law or a valid, final judicial or administrative order. Notwithstanding the foregoing to the contrary, Seller acknowledges that Buyer’s ultimate parent is a publicly-held company subject to reporting requirements
under the Securities Act of 1933 and the Securities Exchange Act of 1944. Accordingly, nothing contained herein shall prevent Buyer from disclosing information related to the subject matter of this Agreement in accordance with federal securities
laws, rules and regulations. 
 12. WARN ACT. Unless Buyer or the Manager expressly agrees otherwise, none of the employees of the
Hotels shall become employees of Buyer, as of the Closing Date; instead, such employees shall become employees of a third party leasing company retained by the Manager. Seller shall not give notice under any applicable federal or state plant closing
or similar act, including, if applicable, the Worker Adjustment and Retraining Notification Provisions of 29 U.S.C., Section 2102, the parties having agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3), will not have
occurred. Any liability for payment of all wages, salaries and benefits, including, without limitation, accrued vacation pay, sick leave, bonuses, pension benefits, COBRA rights, and other benefits accrued or earned by and due to employees at the
Hotels through the Cutoff Time, together with F.I.C.A., unemployment and 

  

 -27- 

 
other taxes and benefits due with respect to such employees for such period, shall be charged to Seller, in accordance with the Existing Management
Agreement, for the purposes of the adjustments to be made as of Closing. All liability for wages, salaries and benefits of the employees accruing in respect of and attributable to the period from and after Closing shall be charged to Buyer, in
accordance with the New Management Agreement. To the extent applicable, all such allocations and charges shall be adjusted in accordance with the provisions of the Existing Management Agreement. 
 13. EXCHANGE. Buyer or Seller may, at their respective option, exchange one or more properties for the Properties in order to effectuate a
tax-free exchange under Section 1031 of the United States Internal Revenue Code of 1986, as amended. The non-exchanging party agrees to reasonably cooperate in effectuating such exchange provided that: (i) the effectuation of any such
exchange shall not impose any additional financial obligations or potential liability upon them or require them to take title to any property other than the Properties; (ii) the effectuation of any such exchange shall not extend the closing
date or constitute a condition precedent of any obligations hereunder nor shall the failure or termination of any replacement property contract of Seller give rise to any right of Seller to terminate this Agreement; and (iii) the exchanging
party hereby agrees to indemnify and hold the other party harmless from and defend them against any and all liabilities, claims, costs and expenses arising out of or resulting from their involvement with such exchange. Additionally, Seller may
distribute the Properties out to its individual members so that the members can take advantage of IRC Section 1031 exchange provisions individually; provided, however, Seller shall be responsible for all costs, including any additional escrow
or closing fees charged by the Title Company, resulting from such distributions; and provided, further, that any Closing documents to be executed by Seller shall be executed by Seller and either, Allan V. Rose, individually, or each of the
constituent partners or members of Seller. 
 14. FRANCHISE AND MANAGEMENT. 
 14.01 Franchise Agreement. Seller has entered into the Existing Franchise Agreements with Hilton Hotels Corp. or an affiliate thereof (the
“Franchisor”) governing the use of the Hotels as Homewood Suites by Hilton (the “Brand”). At the Closing, Buyer and the Franchisor shall enter into a new franchise agreement for each Property, effective as of the Closing Date,
replacing the Existing Franchise Agreements and containing terms and conditions acceptable to Buyer. Buyer shall be responsible for the payment and completion of any Franchisor mandated product improvement plan. If Buyer pays the cost for the
product improvement plan report (the “PIP Fee”), then, in the event this Contract is terminated and Closing does not occur (other than by reason of Buyer’s default), Seller shall reimburse Buyer for the PIP Fee. Seller and the
Franchisor shall terminate the Existing Franchise Agreements, as of the Closing Date, and Buyer shall be solely responsible for all claims and liabilities arising thereunder. Seller and Buyer shall use all commercially reasonable efforts to obtain a
release of Seller and any other guarantors as described in Section 5.2(d) above. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain the new franchise agreement, together with the assignment to
Buyer of all waivers of any brand standard necessary 

  

 -28- 

 
or appropriate for the operation of the Hotels under the Brand. It shall be a condition to Closing for Buyer and Seller that the Franchisor provide the
foregoing consent; provided, however, that Buyer shall not be entitled, as a condition to Closing, to require amendments to the Existing Franchise Agreements (or to require a new franchise agreement (the “New Franchise Agreement”)) that
contains economic terms more favorable to the owner or franchisee than the economic terms of the Existing Franchise Agreements or that differ in any other material respect from the form of franchise agreement which Buyer and Franchisor have
negotiated previously as their standard form of franchise agreement (to the extent such standard forms are applicable under the circumstances). Buyer shall be responsible for all costs related to the termination of the Existing Franchise Agreements
and the execution of a new franchise agreement, including but not limited to, the payment of license, application, transfer and similar fees thereunder. Seller shall use best efforts to promptly provide all information required by the Franchisor in
connection with each such new franchise agreement, and Seller and Buyer shall diligently pursue obtaining each the same. 
 14.02
Management Agreement. The Hotels are currently managed by Dimension Development Company, Inc. (“Manager”) pursuant to that certain agreement dated March 2, 2006 (the “Existing Management Agreement”) between Seller and
Manager. Seller, at its sole cost and expense, shall terminate the Existing Management Agreement at Closing. 
 IN WITNESS WHEREOF, the parties have executed
this Agreement to be effective as of the Opening of Escrow. 
 [See attached signature pages] 
  

 -29- 

							
	SELLER:
	
	RT WACA HOTELS, L.P., a Delaware limited partnership
	
	BY: FTRC Special Corp., its General Partner
			
		 	By:	 	 /s/ Sam Friedman

		 		 	Sam Friedman, Vice President
			
	Date:	 	December 6, 2007	 	

  

 -30- 

							
	BUYER:
	
	 Apple Eight Hospitality Ownership, Inc.,
 a Virginia corporation

			
		 	By:	 	 /s/ Justin Knight

		 	Name:	 	Justin Knight
		 	Title:	 	President
		
	Date:	 	December 6, 2007

  

 -31- 

 ACCEPTED this      day of December, 2007 
  

					
	LAND AMERICA – AMERICAN TITLE INSURANCE COMPANY
			
		 	By:	 	  

		 	Name:	 	  

		 		 	Authorized Agent

  

 -32- 

 EXHIBIT “A” 
 Legal Description of the Real Properties 

 EXHIBIT “B” 
 Description of Review Materials 
  

	(a)	all existing engineer’s and contractor’s reports, architectural plans, environmental reports, surveys or other reviews, evaluations or studies of or with respect to the
Properties; 

  

	(b)	all leases (including equipment leases), contracts and permits pertaining in any way to the Properties and the ownership and financing (including all documents relating any existing
financing) and operation thereof; 

  

	(c)	all monthly utility bills of the Properties for the past 2 years; 

  

	(d)	copies of all Properties tax bills relating to the Properties for the most recent two year period; 

  

	(e)	all guest registration records to be available for inspection at the Properties upon twenty-four (24) hours prior verbal notice from Buyer to Seller; 

 

	(f)	all non-protected employee records to be available for inspection at the Properties upon twenty-four (24) hours prior verbal notice from Buyer to Seller. Actual employee names
will be deleted until the expiration of the Review Period; 

  

	(g)	all monthly operating statements for the previous three year period; the Seller shall continue to provide Buyer with such statements through the Closing date within twenty-four
(24) hours after requested by Purchaser; 

  

	(h)	Smith Travel Research reports, to the extent applicable; 

  

	(i)	a copy of the owner’s title insurance commitment and copies of all exceptions shown thereon; 

  

	(j)	the most recent survey of the Properties; and 

  

	(k)	Seller will make the sales files available to Buyer, including sales contracts for future business and contracts, the files to show past business, historic revenue
and room consumption, history of “key accounts” and “local negotiated rate” clients, and other major client sales records since opening. Contact information for the accounts will be released upon the expiration of the Review
Period. 

 Exhibit “C” 
 Operating AgreementsEXHIBIT 10.29

 Exhibit 10.29 
 FRANCHISE LICENSE AGREEMENT 
 HAMPTON INN BOWLING GREEN 
 (BOWLING GREEN, KENTUCKY) 

 TABLE OF CONTENTS 
  

			
	 SECTION
	  	PAGE NO.
	 1.      DEFINITIONS
	  	1
		
	 a.      The Hotel
	  	1
	 b.      The Marks
	  	1
	 c.      The System
	  	1
	 d.      The Manual
	  	2
	 e.      Including
	  	2
	 f.       License Term
	  	2
		
	 2.      GRANT OF LICENSE
	  	2
		
	 3.      OUR RESPONSIBILITIES
	  	2
		
	 a.      Training
	  	2
	 b.      Reservation Services
	  	2
	 c.      Consultation
	  	3
	 d.      Arrangements for Marketing, Etc.
	  	3
	 e.      Inspections/Compliance Assistance
	  	3
	 f.       Manual
	  	3
	 g.      Equipment and Supplies
	  	4
		
	 4.      PROPRIETARY RIGHTS
	  	4
		
	 5.      PROPRIETARY MARKS
	  	4
		
	 a.      Use of Trade Name
	  	4
	 b.      Trademark Disputes
	  	4
	 c.      Web Sites
	  	4
	 d.      Covenant
	  	5
		
	 6.      YOUR RESPONSIBILITIES
	  	5
		
	 a.      Operational and Other Requirements
	  	5
	 b.      Hotel Quality Assurance
	  	9
	 c.      Staff and Management
	  	9
	 d.      Hotel Direct Center Program
	  	10
		
	 7.      FEES
	  	10
		
	 a.      Monthly Fees
	  	10
	 b.      Calculation and Payment of Fees
	  	10
	 c.      Room Addition Fee
	  	10
	 d.      Other Fees
	  	11
	 e.      Taxes
	  	11
	 f.       Application of Fees
	  	11
		
	 8.      RECORDS AND AUDITS
	  	11
		
	 a.      Reports
	  	11
	 b.      Maintenance of Records
	  	11
	 c.      Audit
	  	11
	 d.      Ownership of Information
	  	12
		
	 9.      INDEMNITY
	  	12
		
	 10.    NOTICE CONCURRENT TO OFFERING A MARKETED INTEREST
	  	13

  

 i 

			
	 11.    TRANSFER
	  	13
		
	 a.      Our Transfer
	  	13
	 b.      Your Transfer
	  	13
		
	 12.    CONDEMNATION AND CASUALTY
	  	18
		
	 a.      Condemnation
	  	18
	 b.      Casualty
	  	18
	 c.      No Extensions of Term
	  	18
		
	 13.    TERM OF LICENSE
	  	18
		
	 14.    TERMINATION
	  	18
		
	 a.      Termination, Suspension or Other Interim Remedies by Us on Advance Notice
	  	18
	 b.      Immediate Termination by Us
	  	20
	 c.      Liquidated Damages upon Termination by Us
	  	21
	 d.      De-identification of Hotel Upon Termination
	  	22
	 e.      Special Termination
	  	22
		
	 15.    RELATIONSHIP OF PARTIES
	  	23
		
	 a.      No Agency Relationship
	  	23
	 b.      Notices to Public Concerning Your Independent Status
	  	23
		
	 16.    MISCELLANEOUS
	  	23
		
	 a.      Severability and Interpretation
	  	23
	 b.      Governing Law and Jurisdiction
	  	23
	 c.      Exclusive Benefit
	  	24
	 d.      Entire Agreement
	  	24
	 e.      Consent; Business Judgment
	  	24
	 f.       Notices
	  	25
	 g.      General Release
	  	25
	 h.      Estoppel Certificate
	  	25
	 i.       Descriptive Headings
	  	25
	 j.       Representations and Warranties
	  	25
	 k.      Time
	  	26
	 l.       Counterparts
	  	26
	 m.     Performance Requirements/Responsibilities
	  	26
	 n.      Informational Copies
	  	26
	 o.      Restricted Persons and Anti-bribery Representations and Warranties
	  	26
		
	 17.    WAIVER OF JURY TRIAL
	  	26
		
	 ATTACHMENT A - PERFORMANCE CONDITIONS: CHANGE OF OWNERSHIP
	  	1
		
	 ATTACHMENT B - RIDER TO FRANCHISE LICENSE AGREEMENT
	  	1
		
	 EXHIBIT A - PRODUCT IMPROVEMENT PLAN
	  	

  

 ii 

 FRANCHISE LICENSE AGREEMENT 
 Dated as of the date set forth on the Rider attached as Attachment B (the “Rider”) between the licensor entity set forth on the Rider (“we,” “us,” “our” or
“Licensor”), and the licensee entity (“you,” “your” or “Licensee”), the name and address of which is set forth on the Rider. 
 INTRODUCTION 
 We are a subsidiary of Hilton Hotels Corporation, a Delaware corporation (“HHC”). HHC
and its subsidiaries and affiliates (collectively, “Hilton”) own, license, lease, operate, manage and provide various services for a network of hotels, inns, conference centers, timeshare properties and other operations (the
“Network”). Hilton has authorized us to grant licenses for selected, first-class, independently owned or leased hotel properties, to operate under the brand name set forth in the Rider (the “Licensed Brand”). You
have expressed an interest in operating the property identified on the Rider under the Licensed Brand. You have confirmed to us that you (i) independently investigated the risks of operating a hotel under the Licensed Brand, including current
and potential market conditions, and competitive factors and risks, and have made an independent evaluation of all such matters, and (ii) reviewed our uniform franchise offering circular (“UFOC”). After doing so, you have
expressed a desire to enter into this Franchise License Agreement (the “Agreement”) with us to obtain a license to use the Licensed Brand in the operation of a hotel at the address set forth in the Rider. 
 NOW, THEREFORE, in consideration of the premises and the undertakings and commitments of each party to the other party as set forth in this Agreement the parties agree
as follows: 
 1. Definitions 
 The following capitalized
terms will have the meanings set forth after each term: 
 a. The Hotel. The Hotel is the property you will operate under this
Agreement. The “Hotel” includes all structures, facilities, appurtenances, furniture, fixtures, equipment, and entry, exit, parking and other areas located on the site we have approved for your business, or located on any land we
approve in the future for additions, signs, parking or other facilities. 
 b. The Marks. References to the “Marks”
will include the Licensed Brand service marks and all other service marks, copyrights, trademarks, logos, insignia, emblems, symbols, designs, slogans, distinguishing characteristics, trade names, domain names, and all other marks or characteristics
associated or used with or in connection with the System (as defined in Subparagraph 1c.), and similar intellectual property rights, that we designate from time to time to be used in the System. 
 c. The System. The “System” is defined as, and consists of, the elements we designate from time to time to identify hotels
operating worldwide under the Licensed Brand (as defined in the Rider and as may in certain jurisdictions be preceded or followed by a supplementary identifier such as “by Hilton”) that provide to the consuming public a similar,
distinctive, high quality hotel service. “System hotels” means hotels we license to operate under the System and to use the Licensed Brand name. The System currently includes the Licensed Brand and the Marks; access to a reservation
service; advertising, publicity and other marketing programs and materials; training programs and materials; standards, specifications and policies for construction, furnishing, operation, appearance and service of the Hotel we refer to in this
Agreement or in the Manual (as defined in Subparagraph 1.d.); and programs for our inspecting the Hotel and consulting with you. We may add elements to the System or modify, alter or delete elements of the System at our sole option. 
  

 1 

 d. The Manual. References to the “Manual” will include all written standards and
requirements we adopt from time to time for constructing, equipping, furnishing, supplying, operating, maintaining and marketing System hotels, including the Hotel. Changes made in the Manual will apply to System hotels as specified and may not
apply to all System hotels. We may set forth these standards and requirements in one or more documents or guides. All of these items, as we modify them from time to time, will be considered the Manual. We will change the Manual from time to time. We
will notify you at least thirty (30) days before any change becomes effective. You will be responsible for the costs of complying with the Manual, including any changes. 
 e. Including. The word “including,” whenever used in this Agreement, will mean “including, by way of example, but without
limitation.” 
 f. License Term. References to the “License Term” will mean the period from the date of this
Agreement (as set forth in the Rider) through the expiration of this Agreement. 
 2. Grant of License 
 We hereby grant to you and you hereby accept a non-exclusive license (the “License”) to use the System at, and in connection with the operation of, the
Hotel, in accordance with the terms of this Agreement. 
 This Agreement does not limit our right, or the right of any of our present or future owners,
subsidiaries, and affiliated entities (the “Entities”), to own, license or operate any other business of any nature (“Other Businesses”), including a hotel, inn, conference center, timeshare property, lodging
facility or similar business, whether under the Licensed Brand, or as a competitive brand, or otherwise. We reserve the right to engage in any Other Businesses, even if they compete with the Hotel, the System, or the Licensed Brand, and whether we
start those businesses, or purchase, merge with, acquire, are acquired by, or affiliate with, such businesses. We may also: (a) use or license to others all or part of the System; (b) use the facilities, programs, services and/or personnel
used in connection with the System in Other Businesses; and (c) use the System, the Licensed Brand, and the Marks, in the Other Businesses. You acknowledge and agree that you are not acquiring any rights other than the non-exclusive right to
use the System to operate the Hotel under the Licensed Brand at the site licensed under this Agreement and in accordance with the terms of this Agreement. You acknowledge and agree that you have no rights and will not make any claims, demands or
damages arising from or related to any of the foregoing activities, and you acknowledge and agree that such activities will not give rise to any liability on our part, including liability for claims for unfair competition, breach of contract, breach
of any applicable implied covenant of good faith and fair dealing, or divided loyalty. 
 The Hotel will be initially known by the trade name set forth in
the Rider (the “Trade Name”). We may change the Trade Name and/or the Licensed Brand name and/or any of the Marks at any time at our sole option, but we will not change the principal name identified in the Rider. You may not change
the Trade Name without our specific written consent. You acknowledge and agree that you are not acquiring the right to use any service marks, copyrights, trademarks, logos, designs, insignia, emblems, symbols, slogans, distinguishing
characteristics, trade names, domain names or other marks or characteristics owned by Hilton or the Entities that we do not specifically designate to be used in the System. 
 3. Our Responsibilities 
 a. Training. We will specify required and optional training programs
and provide these programs at various locations. We may charge you for (i) required training services and materials and (ii) optional training services and materials we provide to you. You are also responsible for all travel, lodging and
other expenses you or your employees incur in attending these programs. 
 b. Reservation Services. We will, directly or indirectly,
furnish you with the Reservation Service (as defined in Subparagraph 6.a.(15) below). This service will be furnished to you on the same basis as is furnished to other System hotels, subject to the provisions of Subparagraph 14.a.(3) below.

  

 2 

 c. Consultation. We may, from time to time at our sole discretion, make available to you
consultation and advice in areas such as operations, facilities, and marketing on the same basis as other Licensed Brand hotels. We have the right to establish fees in advance or on a project-by-project basis, for consultation and advice you
request. 
 d. Arrangements for Marketing, Etc. Periodically, we or one of the Entities will publish and make available to the
traveling public a directory of System hotels, including the Hotel. Additionally, we will include the Hotel, or cause the Hotel to be included in (i) national or regional group advertising of System hotels, and (ii) international, national
and regional market programs offered by us or the Entities; subject to and in accordance with our general practice for System hotels. 
 We will use your
Monthly Program Fee (as defined in Subparagraph 7.a. below) to pay for various programs to benefit the System, including (i) advertising, promotion, publicity, public relations, market research, and other marketing programs;
(ii) developing and maintaining Licensed Brand directories and Internet sites; (iii) developing and maintaining the Reservation Service systems and support; and (iv) administrative costs and overhead related to the administration or
direction of these projects and programs. We will have the sole right to determine how we spend these funds, including sole control over the creative concepts, materials and media used in the programs, the placement and allocation of advertising,
and the selection of promotional programs. We may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, services and/or personnel with any other entity, including any
Hilton entity and any of the Entities. You acknowledge that Monthly Program Fees are intended for the benefit of the System, and will not simply be used to promote or benefit any one property or market. We will have no obligation in administering
any activities paid by the Monthly Program Fee to make expenditures for you that are equivalent or proportionate to your payments, or to ensure that the Hotel benefits directly or proportionately from such expenditures. We may create any programs
and allocate monies derived from Monthly Program Fees to any regions or localities, as we consider appropriate in our sole judgment. The aggregate of Monthly Program Fees paid to us by System hotels does not constitute a trust or “advertising
fund” and we are not a fiduciary with respect to the Monthly Program Fees paid by you and other System hotels. We are not obligated to expend funds in excess of the amounts received from System hotels. If any interest is earned on unused
Monthly Program Fees, we will use the interest before using the principal. The Monthly Program Fee does not cover your costs of participating in any optional marketing programs and promotions offered by us or Hilton from time to time in which you
voluntarily choose to participate. These fees also do not cover the cost of operating the Hotel in accordance with the standards in the Manual. 
 e. Inspections/Compliance Assistance. We will administer a quality assurance program for the System which may include conducting periodic inspections of the Hotel and guest satisfaction surveys and audits to ensure compliance with
System standards. We have the right to inspect the Hotel and its operations at any time, with or without prior notice to you, and to determine if the Hotel is in compliance with the standards and rules of operation set forth in this Agreement and in
the Manual. If the Hotel fails to comply with such standards and rules of operation, we may, at our option and at your cost, require an action plan to correct the deficiencies. You must then take all steps necessary to correct any deficiencies
within the times we establish. You may be charged a fee (“Quality Assurance Re-Evaluation Fee”), and you will provide complimentary accommodations for the quality assurance auditor, each time we conduct a special on-site quality
assurance re-evaluation (a) after the Hotel has failed a regular quality assurance evaluation or (b) to verify that deficiencies noted in a quality assurance evaluation report or property improvement plan have been corrected or completed
by the required dates. The Quality Assurance Re-Evaluation fee is currently $1,500 and is subject to change by us from time to time provided that any change will be established in the Manual. Our approval of an action plan does not waive any rights
we may have under this Agreement, nor does it relieve you of any obligations under this Agreement. We will also have the right to place materials required for System and Hilton purposes at the Hotel. 
 f. Manual. We will issue the Manual to you, and any revisions and updates we may make to the Manual. 
  

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 g. Equipment and Supplies. We will make available to you for use in the Hotel various purchase,
lease, or other arrangements for exterior signs, operating equipment, operating supplies, and furnishings, which we or Hilton may have and which we make available to other System hotels. 
 4. Proprietary Rights 
 You acknowledge, and will not contest, either directly or indirectly during the License Term
or after termination or expiration of this Agreement: (i) our (and/or any Entities’) ownership of, rights to and interest in the System, Licensed Brand, Marks and any of their element(s) or component(s), including present and future
distinguishing characteristics; (ii) our sole right to grant licenses to use all or any element(s) or component(s) of the System; (iii) that we (and/or the Entities) are the owner of (or the licensee of, with the right to sub-license) all
right, title and interest in and to the Licensed Brand and the Marks used in any form and in any design, alone or in any combination, together with the goodwill they symbolize; and (iv) the validity or ownership of the Marks. You acknowledge
that these Marks have acquired a secondary meaning which indicates that the Hotel, Licensed Brand and System are operated by or with Hilton’s approval. All improvements and additions to, or associated with, the System, all Marks, and all
goodwill arising from your use of the System and the Marks, will inure to our benefit and become our property (or the Entities), even if you develop them. At our request, you will promptly assign to us any rights or registrations to the Marks that
you obtain. You acknowledge that you are not entitled to receive any payment or other value from us or from any of the Entities for any goodwill associated with your use of the System or the Marks, or any element(s) or component(s) of the System.

 5. Proprietary Marks 
 a. Use of
Trade Name. You will operate under, and prominently display, the Marks in the Hotel. You will not adopt any other names in operating the Hotel that we do not approve. You also will not use any of the Marks, or the word “Hilton,” or
other Network trademarks, trade names or service marks, or any similar word(s) or acronyms, in (i) your corporate, partnership, business or trade name except as we provide in this Agreement or the Manual, or (ii) any Internet-related name
(including a domain name), except as we provide in this Agreement or in the Manual, or (iii) any business operated separately from the Hotel, including the name or identity of developments adjacent to or associated with the Hotel. You agree
that any unauthorized use of the Marks will be an infringement of our rights and a material breach of this Agreement. 
 b. Trademark
Disputes. We and you each agree that the protection of the Marks and their distinguishing characteristics as standing for the System is important to all of us. Accordingly, you will immediately notify us of any infringement or dilution of or
challenge to your use of any of the Marks and will not, absent a court order or our prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. We will take the action we deem appropriate
with respect to such challenges and claims and have the sole right to handle disputes concerning use of all or any part of the Marks or the System. You will extend your full cooperation to us at your reasonable expense in these matters. You appoint
us as your exclusive attorney-in-fact, to prosecute, defend and/or settle all disputes of this type at our sole option. You will sign any documents we believe are necessary to prosecute, defend or settle any dispute or obtain protection for the
Marks and the System and assign to us any claims you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final. All recoveries made as a result of disputes regarding use of all or part
of the System or the Marks will be for our account. 
 c. Web Sites. You may not register, own, maintain or use any domain names,
World Wide Web or other electronic communications sites (collectively, “Site(s)”), relating to the Network or the Hotel or that include the Marks. The only domain names, Sites, or Site contractors that you may use relating to the
Hotel or this Agreement are those we assign or otherwise approve in writing. You also agree to obtain our prior written approval concerning any third-party Site in which the Hotel will be listed, and any proposed links between such Site and any
other Site(s) (“Linked Sites”) and any proposed modifications to all Sites and Linked Sites. All Sites containing any of the Marks and any Linked Sites must advertise, promote, and reflect on the Hotel and the System in a
first-class, dignified manner. You acknowledge and agree that our right to approve all materials is necessitated by the fact that those materials will 

  

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include and be linked with our Marks. Therefore, any use of the Marks on the World Wide Web, the Internet, or any computer network/electronic distribution,
must conform to our requirements, including the identity and graphics standards for all System hotels. Given the changing nature of this technology, we have the right to withhold our approval, and to withdraw any prior approval, and to modify our
requirements. 
 You acknowledge that you may not, without a legal license or other legal right, post on your Site(s) any material in which any third party
has any direct or indirect ownership interest (including video clips, photographs, sound bites, copyrighted text, trademarks or service marks, or any other text or image in which any third party may claim intellectual property ownership interests).
You also agree to incorporate on your Site(s) any information we require in the manner we deem necessary to protect our Marks. 
 Upon the expiration or
termination of this Agreement, you agree to irrevocably assign and transfer to us (or to our designee) all of your right, title and interest in any domain name listings and registrations which contain any reference to our Marks, System, Network or
Licensed Brand, and will notify the applicable domain name registrar(s) of the termination of your right to use any domain name or Site(s) associated with the Marks or the Licensed Brand, and will authorize and instruct the cancellation of the
domain name, or transfer of the domain name to us (or our designee), as we specify. You will also delete all references to our Marks, System, Network or Licensed Brand from any Site(s) you own, maintain or operate beyond the expiration or
termination of this Agreement. 
 d. Covenant. You agree, as a direct covenant with Hilton, that you will comply with all of the
provisions of this Agreement related to the manner, terms and conditions of the use of the Marks, and the termination of any right on your part to use any of the Marks. You agree that any non-compliance by you with this covenant, the terms of this
Agreement, or any unauthorized or improper use of the System or the Marks will cause irreparable damage to us and/or to the Entities. You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of the System or
the Marks during or after the License Term, Hilton, its successors and assigns, separately or along with us, will be entitled to both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all
other remedies that Hilton or we may have at law. You consent to the entry of such temporary and permanent injunctions. You will be responsible for payment of all costs and expenses, including, reasonable attorneys’ fees, which we and/or Hilton
and/or the Entities may incur in connection with your non-compliance with this covenant. 
 6. Your Responsibilities 
 a. Operational and Other Requirements. During the License Term, you agree to: 
 (1) promptly pay to us, or reimburse us for, all amounts due to us and/or Hilton as Monthly Royalty Fees, Monthly Program Fees, and other charges, and for
goods and services you or your agents purchase from us and/or Hilton, including those set forth in Paragraph 7 below; 
 (2) operate the
Hotel twenty-four (24) hours a day every day, except as we may otherwise permit based on special circumstances; 
 (3) operate, furnish,
maintain and equip the Hotel in a clean, safe and orderly manner and in first-class condition in accordance with the provisions of this Agreement and the Manual, and in compliance with all laws, enactments, orders and regulations applicable to the
management and operation of the Hotel or the performance of the terms of this Agreement, including maintaining and conducting your business in accordance with sound business and financial practices; 
 (4) provide efficient, courteous and high-quality service to the public; 
 (5) adopt, use and comply with the standards, requirements, services, products, programs, materials, specifications, policies, methods, procedures, and techniques set forth in the Manual, as it may be amended by us
from time to time, and keep your Manual current at all times; 
  

 5 

 (6) comply with System standards, specifications and requirements regarding the purchase of products and
services, including furniture, fixtures, equipment, food, operating supplies, consumable inventories, merchandise for resale to be used at, and/or sold from, the Hotel, in-room entertainment, computer networking, and any and all other items used in
the operation of the Hotel (collectively, the “Supplies”), including our specifications for all Supplies. We may from time to time require you to purchase a particular brand of product (“Required Brand”); however,
you may purchase this Required Brand from any authorized source of distribution; 
 (7) comply with System standards, specifications and
requirements as to the types and levels of services, amenities and products that either must or may be used, promoted or offered at or in connection with the Hotel; 
 (8) install, display, and maintain signage displaying or containing the Licensed Brand name and other distinguishing characteristics in accordance with plans, specifications and standards we establish for System
hotels; 
 (9) comply with System requirements for the training of persons involved in the operation of the Hotel, including completion by
the general manager and other key personnel of the Hotel of a training program for operation of the Hotel under the System at a site we designate, except that if, in our sole opinion, it is not necessary or desirable for the general manager or any
other key personnel of the Hotel to complete that training program, then we may waive this requirement in whole or in part. You will pay us for all fees and charges, if any, we require for your personnel to attend these training program(s) on the
same basis as we charge other System hotels. You will also be responsible for the wages, room, board and travel expenses of your personnel; 
 (10) purchase and maintain property management, revenue management, in-room entertainment, telecommunications and other computer and technology systems we designate as System-wide (or area-wide) programs based on our assessment of the
long-term best interests of System hotels, considering the interest of the System as a whole; 
 (11) advertise and promote the Hotel and
related facilities and services on a local and regional basis in a first-class, dignified manner, using our identity and graphics standards for all System hotels, at your cost and expense. You agree to submit to us samples of all advertising and
promotional materials that we have not previously approved (including any materials in digital, electronic or computerized form, or in any form of media that exists now or is developed in the future) before you produce or distribute them. You will
not begin using the materials until we approve them. You also agree to immediately discontinue your use of any advertising or promotional materials we reasonably believe is not in the best interest of the Hotel or System, even if we previously
approved the materials; 
 (12) participate in, and pay all charges in connection with (i) all required System guest complaint
resolution programs, which programs may include chargebacks to the Hotel for guest refunds or credits, and (ii) all required System quality assurance programs, such as guest comment card and mystery shopper programs; and maintain minimum
performance standards and scores for quality assurance programs that we may establish from time to time in the Manual; 
 (13) comply with
System standards, specifications and requirements as to maintenance, appearance and condition of the Hotel, and adopt in your business all changes or additions to the System as we may periodically designate; 
 (14) honor all nationally recognized credit cards and credit vouchers issued for general credit purposes which are generally honored at other System
hotels, and enter into all necessary credit card and voucher agreements with the issuers of such cards or vouchers; 
 (15) participate in
and use, on the terms set forth in this Agreement and in the Manual, those reservation services which we require (the “Reservation Service”), including any additions, enhancements, supplements or variants which we or the Entities
develop or adopt; and honor and give first priority on available rooms to all confirmed reservations referred to the Hotel through the Reservation 

  

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Service. You agree that the only reservation service or system you may use for outgoing reservations referred by or from the Hotel to other hotels will be
the Reservation Service or other reservation services we or the Entities designate; 
 (16) comply with all applicable laws, rules,
regulations and governmental requirements, including the filing and maintenance of any required trade name or fictitious name registrations; pay all taxes; and maintain all governmental licenses and permits necessary to operate the Hotel in
accordance with the System, as well comply with all applicable United States and local trade law and investment sanctions, export controls, anti-terrorism, anti-boycott, anti-money laundering and anti-bribery laws, rules, regulations and
governmental requirements; 
 (17) permit inspection of the Hotel by our representatives at any time to ensure compliance with System
standards, cooperate fully with our representatives during these inspections and take all steps necessary to correct any deficiencies detected within the time periods we specify. You will also provide free lodging to our personnel at the Hotel while
they are making their inspections on a space-available basis; 
 (18) provide to us statistics on Hotel operations in the form we specify and
using definitions we specify; 
 (19) not engage, directly or indirectly, in any cross-marketing or cross-promotion of the Hotel with any
other hotel, lodging or related business, except for Affiliated Hotels (as defined in Subparagraph 6.a.21), without our prior written consent; 
 (20) participate in, and promptly pay all fees as we require in the Manual and/or specific program terms, of all System travel agent commission payment program(s), all travel agent commissions and third party reservation service charges
(such as airline reservation systems) in accordance with the terms of these programs, all of which may be modified from time to time; 
 (21)
refer guests and customers, wherever reasonably possible, only to Licensed Brand, and Network hotels (collectively, the “Affiliated Hotels”) and (if and as we direct) any other hotel systems owned, managed, or licensed by us and/or
the Entities (each, “Other Hotels”) (except that this will not prohibit us from requiring you to participate in programs designed to refer prospective customers to other hotels, whether in the System or otherwise); display all
material, including brochures and promotional material we provide for Affiliated Hotels and Other Hotels; and allow advertising and promotion only of Affiliated Hotels and Other Hotels on the Hotel premises; 
 (22) treat as confidential the Manual, and all other information or materials concerning the methods, techniques, plans, specifications, procedures,
information, systems and knowledge of and experience in the development, operation, marketing and licensing of the System (the “Proprietary Information”). You acknowledge and agree that you: (i) do not acquire any interest in
the Proprietary Information other than the right to utilize the same in the development and operation of the Hotel under the terms of this Agreement, (ii) will not use the Proprietary Information in any business or for any purpose other than in
the development and operation of the Hotel under the System, (iii) will maintain the absolute confidentiality of the Proprietary Information during and after the License Term, (iv) will not make unauthorized copies of any portion of the
Proprietary Information, and (v) will adopt and implement all reasonable procedures we may periodically establish to prevent unauthorized use or disclosure of the Proprietary Information, including restrictions on disclosure to employees and
the use of non-disclosure and non-competition clauses in agreements with employees, agents and independent contractors who have access to the Proprietary Information. These restrictions will not apply to any information that does not relate or refer
in any way or part to the System, Manual, Licensed Brand and/or Marks and that you can demonstrate came lawfully to your attention before our disclosure or which, at the time of or after our disclosure, becomes a part of the public domain through
lawful publication or communication by others; 
 (23) not become a Competitor without our prior written consent. For purposes of this
Agreement, a “Competitor” is any individual or entity that at any time during the License Term, whether directly or through an Affiliate (as defined in Subparagraph 11.b.(2)(a)), owns in whole or in part or is the 

  

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licensor or franchisor of a hotel brand or trade name that, in our sole judgment, competes with the System or any hotel owned, operated or franchised by us
or any Hilton entity or any of the Entities. These restrictions apply irrespective of the number of hotels owned, licensed or franchised by the Competitor under such brand name, but do not prohibit you (or your Affiliates) from: (i) owning a
minority interest in a Competitor so long as neither you nor any of your Affiliates is a director or employee of the Competitor, provides services (including as a consultant) to the Competitor, or exercises or has the right to exercise, control or
influence over the business decisions of the Competitor; (ii) being a franchisee or licensee of a Competitor; or (iii) managing a property for a Competitor; 
 (24) own fee simple title (or long-term ground leasehold interest, provided that such interest has been granted to you by an unrelated third party ground lessor in an arms length transaction for a term equal to, or
longer than, the License Term) to the real property and improvements that comprise the Hotel, or, alternatively, at our request, cause the fee simple owner or other third party acceptable to us, to provide its guarantee covering all of your
obligations under this Agreement in form and substance acceptable to us; 
 (25) maintain legal possession and control of the Hotel and Hotel
Site (as defined in Subparagraph 11.b. below) for the term of the Agreement, and promptly deliver to us a copy of any notice of default you receive from any mortgagee, trustee under any deed of trust, or ground lessor for the Hotel, and upon our
request, provide any additional information we may request related to any alleged default or any subsequent action or proceeding in connection with any alleged default; 
 (26) refrain from directly or indirectly conducting, or permitting by lease, concession arrangement or otherwise, gaming or casino operations in the Hotel or on its premises without our express written permission,
which we may withhold at our sole option, and if we grant such permission, comply with the terms set forth in such permission; 
 (27)
refrain from directly or indirectly conducting, or permitting the marketing or sale of timeshares, vacation ownership, fractional ownership, condominiums or like schemes at, or adjacent to, the Hotel without our express written permission, which we
may withhold at our sole option, and if we grant such permission, comply with the terms set forth in such permission; provided, however, that this restriction will not prohibit you from directly or indirectly conducting timeshare, vacation
ownership, fractional ownership, or condominium sales or marketing at and for any property located adjacent to the Hotel that is owned or leased by you so long as (i) you do not use any of the Marks in such sales or marketing efforts and
(ii) you do not use the Hotel or its facilities in such sales, marketing efforts, business operations or Hotel facilities; 
 (28)
obtain and maintain in full force and effect from and after the confirmed Opening Date of the Hotel as defined in Attachment A (conditional or otherwise) all licenses required for the sale of alcoholic beverages at the Hotel (unless no alcoholic
beverages are offered at or from the premises of the Hotel); 
 (29) promptly provide to us or Hilton all information we reasonably request
about you and your affiliates, including your respective officers, directors, shareholders, partners or members; and/or the Hotel, title to the property on which the Hotel is constructed and any other property used by the Hotel. The information
requested may include, but not necessarily be limited to, financial condition, credit information, personal and family background, business background, litigation, indictments, and criminal proceedings and the like; 
 (30) participate in, and pay, all charges related to (i) our and Hilton’s marketing programs (in addition to programs covered by Monthly
Program Fees), and (ii) all guest frequency programs we or Hilton require. You also agree to honor the terms of any discount or promotional programs (including any frequent guest program) that we or Hilton offer to the public on your behalf,
any room rate quoted to any guest at the time the guest makes an advance reservation, and any award certificates issued to Hotel guests participating in these programs; 
  

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 (31) operate the Hotel so as to maximize Gross Rooms Revenue (as defined in Subparagraph 7.b.) consistent
with sound marketing and industry practice and not engage in any conduct that is likely to reduce Gross Rooms Revenue in order to further other business activities; 
 (32) maintain, at your expense, insurance, of the types, and in the minimum amounts, we specify in the Manual. All such insurance must (i) be with insurers having minimum ratings we specify, (ii) name as
additional insureds the parties we specify in the Manual, and (iii) carry the endorsements and notice requirements we specify in the Manual. If you fail or neglect to obtain or maintain the insurance or policy limits required by this Agreement,
we have the option, but not the obligation to obtain and maintain such insurance without notice to you, and you, will immediately upon our demand, pay us the premiums and cost we incur in obtaining this insurance; 
 (33) refrain from sharing the business operations and Hotel facilities with any other hotel, inn, conference center, lodging facility or similar
business, without our express written permission, which we may withhold at our sole option, and if we grant such permission, comply with the terms set forth in such permission; and 
 (34) refrain from engaging in any tenant-in-common syndication or Transfer of any tenant-in-common interest in the Hotel or the Hotel Site, without our
express written permission, which we may withhold at our sole option, and if we grant such permission, comply with the terms set forth in such permission. This Subparagraph 6.a.(34) supersedes anything to the contrary contained in this Agreement.

 b. Hotel Quality Assurance. We may from time to time require you to modernize, rehabilitate and/or upgrade the Hotel’s
fixtures, equipment, furnishings, furniture, signs, computer hardware and software and related equipment, supplies and other items to meet the then-current standards and specifications specified in the Manual. You will make these changes at your
sole cost and expense. Nothing in this paragraph will relieve you from the obligation to maintain acceptable product quality ratings at the Hotel and maintain the Hotel in accordance with the Manual at all times during the License Term. We may make
limited exceptions to some of our standards based on local conditions or special circumstances, but we are not required to do so. You may not make any change in the number of approved guest rooms (the “Guest Rooms”) set forth in the
Rider or any other significant change (including major changes in structure, design or decor) in the Hotel without our prior written approval. Minor redecoration and minor structural changes that comply with our standards and specifications will not
be considered significant. 
 c. Staff and Management. You are at all times responsible for the management of the Hotel’s
business. You may fulfill this responsibility only by providing (i) qualified and experienced management, which may be a third-party management company (the “Management Company”), and (ii) a general manager (the
“General Manager”), each approved by us in writing. However, you represent and agree that you have not, and will not, enter into any lease, management agreement or other similar arrangement for the operation of the Hotel or any part
of the Hotel with any person or entity without our prior written consent. To be approved by us as the operator of the Hotel, you, any proposed Management Company, and any proposed General Manager must be qualified to manage the Hotel. We may refuse
to approve you, any proposed Management Company or any proposed General Manager which, in our reasonable business judgment, is inexperienced or unqualified in managerial skills or operating capacity or capability, or is unable to adhere fully to the
obligations and requirements of this Agreement. You understand that we reserve the right to not approve a Competitor, or any entity that (through itself or an affiliate) is the exclusive manager for a Competitor, to manage the Hotel. If the
Management Company becomes a Competitor or the Management Company and/or the General Manager otherwise becomes unsuitable in our sole judgment to manage the Hotel at any time during the License Term, you will have ninety (90) days to retain
qualified substitute Management Company and/or General Manager acceptable to us. Any Management Company and/or General Manager must have the authority to perform all of your obligations under this Agreement, including all indemnity and insurance
obligations. In the case of any conflict between this Agreement and any agreement with Management Company or General Manager, this Agreement prevails. 
  

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 d. Hotel Direct Center Program. From time to time we or an affiliate may, but are not obligated
to, offer you the option to participate in the Hotel Direct Center Program (the “Program”) or a successor to the Program. If the Program is offered to you and you want to participate in that Program, you must notify us in writing. That
notification will be deemed an agreement on your part to comply with the terms and conditions of that Program that are in effect as of the date of your notification and thereafter, and to pay all additional fees related to your participation in the
Program. You or we may terminate your participation in the Program at any time upon thirty (30) days’ prior written notice. We may also terminate your participation on shorter notice if you default under this Agreement, and we may
terminate the Program for System licensees at any time. Whether or not you participate in the Program will not otherwise affect your obligations under this Agreement. You acknowledge and agree that the Program is not the Reservation Service referred
to in this Agreement, nor is it considered an outside reservation service or system, but rather, it is an optional, supplemental service whereby reservation calls to the Hotel will be referred to an offsite call center. Whether or not you
participate in the Program, you must continue participating in the Reservation Service. 
 7. Fees 
 a. Monthly Fees. Beginning on the Opening Date, you will pay to us for each month (or part of a month, including the final month you operate under
this Agreement) the Monthly Royalty Fees as set forth and defined in the Rider and a Monthly Program Fee as set forth and defined in the Rider. The amount of the Monthly Program Fee is subject to change by us from time to time. Any change will be
established in the Manual, but any increase in the Monthly Program Fee will not exceed one percent (1%) of the Hotel’s Gross Rooms Revenue in any calendar year, and the cumulative increases in the Monthly Program Fee, during the License
Term, will not exceed five percent (5%) of Gross Rooms Revenue. 
 b. Calculation and Payment of Fees. The monthly fees
(described in Subparagraph 7.a.) will be calculated in accordance with the accounting methods of then current Uniform System of Accounts for the Lodging Industry, or such other accounting methods as may otherwise be specified by us from time to time
in the Manual. “Gross Rooms Revenue,” as used in the calculation of the Monthly Royalty Fee and the Monthly Program Fee under the Agreement, means all revenues derived from the sale or rental of Guest Rooms (both transient and
permanent) of the Hotel, including guaranteed no-show revenue and credit transactions, whether or not collected, at the actual rates charged, less allowances for any Guest Room rebates and overcharges, and will not include federal, state and local
taxes collected directly from patrons or guests. In the event of fire or other insured casualty that results in a reduction of Gross Rooms Revenue, you shall determine and pay us, from the proceeds of any business interruption or other insurance
applicable to loss of revenues, an amount equal to the forecasted Monthly Program Fee and forecasted Monthly Royalty Fee (based upon the Gross Rooms Revenue amount agreed upon between you and your insurance company(ies)) that would have been paid to
us in the absence of such casualty; provided however, we have the right, at our request to participate with you in the determination of the forecasted Gross Rooms Revenue amount for purposes of calculating the Monthly Program Fee and Monthly Royalty
Fee. Group booking rebates, if any, paid by you or on your behalf to third party groups for group stays must be included, and not deducted, from the calculation of Gross Room Revenues. The Monthly Royalty Fee and the Monthly Program Fee will be paid
to us at the place we designate on or before the fifteenth (15th) day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Royalty Fee and Monthly Program Fee for such
month. There will be an annual adjustment within ninety (90) days after the end of each operating year so that the total Monthly Royalty Fees and Monthly Program Fees paid annually will be the same as the amounts determined by audit. We reserve
the right to require you to transmit the Monthly Royalty Fee and the Monthly Program Fee and all other payments required under this Agreement by wire transfer or other form of electronic funds transfer. You agree to bear all costs of wire transfer
or other form of electronic funds transfer. 
 c. Room Addition Fee. If you desire to add or construct additional Guest Rooms at the
Hotel (the “Room Addition”) at any time after you Open the Hotel under the Licensed Brand, you will pay us a nonrefundable fee equal to the prevailing per Guest Room initial fee charged to System hotels multiplied by the number of
additional Guest Rooms (“Room Addition Fee”). You must pay the Room Addition Fee to us when you submit an application for the Room Addition, and you must submit that application to us 

  

 10 

 
before you enter into any agreement to construct the Room Addition. As a condition to our granting approval of your Room Addition application, we may require
you to modernize, rehabilitate or upgrade the Hotel, subject to Subparagraph 6.b. of this Agreement and to pay us our then prevailing property improvement plan fee (“PIP Fee”) to determine the renovation requirements for the Hotel.
We will apply the PIP Fee, if any, towards payment of the Room Addition Fee. The Room Addition Fee will become non-refundable upon our approval of your Room Addition application. If we disapprove your application, we will refund your Room Addition
Fee, less a processing fee and the PIP Fee, if any. 
 d. Other Fees. You will timely pay all amounts due any of the Entities for any
invoices or for goods or services purchased by or provided to you or paid by any of the Entities on your behalf, including pre-opening sales and operations training. 
 e. Taxes. If any gross receipts, sales, use, excise or any similar tax (the “Gross Receipts Tax”) is imposed upon Hilton based on any payment(s) made by you to Hilton related to this Agreement,
then you must reimburse Hilton for any such Gross Receipts Tax to ensure that the amount of your payment(s) Hilton retains after paying the Gross Receipts Tax, equals the full amount of the payment(s) you are required to pay Hilton had such Gross
Receipts Tax not been imposed on Hilton. 
 This Subparagraph 7.e., does not apply to income taxes payable by us or Hilton as a result of its net income
relating to any fees collected under this Agreement. 
 f. Application of Fees.
We may apply any amounts received under this Paragraph 7 to any amounts due under this Agreement. If any amounts are not paid when due, such non-payment will constitute a material breach of this Agreement and, in addition, such unpaid amounts will
accrue a service charge beginning on the first day of the month following the due date of one and one-half percent (1 1/2%) per month or the maximum amount permitted by applicable law, whichever is less. Should we hire counsel to collect any amounts due under this Agreement, and/or any late charges, you will pay our reasonable attorneys’ fees.

 8. Records and Audits 
 a.
Reports. At our request, you will prepare and deliver to us daily, monthly, quarterly and annual operating statements, profit and loss statements, balance sheets, and other reports (the “Reports”) we require, prepared in the
form, and by the methods and within the time frames, we require. The reports will contain all information we require, including daily rate and room occupancy, and will be certified as accurate in the manner we require. You will also provide us any
additional related information and Reports we may periodically request and permit us to inspect your books and records at all reasonable times. At least monthly, you will prepare a statement that will include all information concerning Gross Rooms
Revenue, other revenues generated at the Hotel, room occupancy rates, reservation data and other information we require (the “Data”). By the fifteenth (15th) day of each month, you will submit to us a statement setting forth
the Data for the previous month and reflecting the computation of the amounts then due under Paragraph 7, in the form and detail we require. 
 b. Maintenance of Records. You will, in a manner and form satisfactory to us and using accounting and reporting standards we reasonably require, prepare on a current basis (and preserve for no less than the greater of four
(4) years or our record retention requirements), complete and accurate records concerning Gross Rooms Revenue and all financial, operating, marketing and other aspects of the Hotel, and maintain an accounting system that fully and accurately
reflects all financial aspects of the Hotel and its business. These records will include books of account, tax returns, governmental reports, register tapes, daily reports, and complete quarterly and annual financial statements (including profit and
loss statements, balance sheets and cash flow statements). 
 c. Audit. We may require you to have the Gross Rooms Revenue or other
monies due to us computed and certified as accurate by a certified public accountant. During the License Term and for two (2) years thereafter, we and our authorized agents will have the right to verify information required under this Agreement
by requesting, receiving, inspecting and auditing, at all reasonable times, any and all records referred to above wherever they may be located (or elsewhere if we request). If any inspection or 

  

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audit reveals that you understated or underpaid any payment due to us that is not fully offset by overpayments, you will promptly pay to us the deficiency
plus interest from the date each payment was due until paid at a rate of one and one-half percent (1 1/2%) per month or the maximum amount permitted by applicable law, whichever is less. If the audit or inspection reveals that the underpayment is either willful, or is for five percent (5%) or more of the total amount owed for
the period being inspected, you will also reimburse us for all inspection and audit costs (including reasonable travel, lodging, meals, salaries and other expenses of the inspecting or auditing personnel). Our acceptance of your payment of any
deficiency will not condone your breach of this Agreement, or waive that breach, or any rights we may have for your breach, including our right to terminate this Agreement as provided in Paragraph 14. If the audit discloses an overpayment, we will
credit this overpayment against your future payments under this Agreement, without interest, or if no future payments are due under this Agreement, we will promptly pay you the amount of the overpayment without interest. 
 d. Ownership of Information. All of the information we obtain from you or about the Hotel or its guests under this Agreement, or under any
agreement ancillary to this Agreement (including agreements relating to the computerized reservation, revenue management, property management, and other system(s) we provide or require), or otherwise related to the Hotel (the
“Information”), and all revenues we derive from such Information will be our property. You may use information that you acquire from third parties in operating the Hotel, such as customer data, at any time during or after the
License Term to the extent lawful and at your sole risk and responsibility, but only in connection with operating the Hotel. The Information (except for Information you provide to us or Hilton with respect to you and your affiliates, including your
respective officers, directors, shareholders, partners or members) will become our Proprietary Information which we may use for any reason as we deem necessary or appropriate, in our judgment, including making an earnings claim in our UFOC. You will
abide by all applicable laws pertaining to the privacy and security of personal information, including, without limitation, local, regional and national requirements applicable to the Hotel (“Privacy Laws”). In addition, you will
comply with our standards and policies pertaining to the privacy and security of personal information, customer relationships and Privacy Laws. 
 9.
Indemnity 
 You agree, during and after the License Term, to indemnify us and the Entities, and our successors and assigns, and the members, officers,
directors, employees, agents, predecessors, successors and assigns of each such entity (the “Indemnified Parties”) against, and hold them harmless from, all losses, costs, liabilities, damages, claims, and expenses, including
reasonable attorneys’ fees, arising out of or resulting from (i) any claimed occurrence at the Hotel or arising from, as a result of, or in connection with the development, construction or operation of the Hotel (including the design,
construction, financing, furnishing, equipment, acquisition of Supplies or operation of the Hotel in any way); (ii) any bodily injury, personal injury, death or property damage suffered or claimed by any guest, customer, visitor or employee of
the Hotel; (iii) your alleged or actual infringement or violation of any patent, mark or copyright or other proprietary right owned or controlled by third parties; (iv) your alleged or actual violation or breach of any contract (including
any system-wide group sales agreement), federal, state or local law, regulation, ruling, standard or directive applicable to the Hotel, or of any industry standard; (v) any other business conducted by you or a third party in, on or about the
Hotel or its grounds; (vi) any other of your acts, omissions or obligations or those of anyone associated or affiliated with you or the Hotel or in any way arising out of or related to this Agreement. However, you do not have to indemnify us to
the extent damages otherwise covered under this Paragraph 9 are adjudged by a court of competent jurisdiction to have been the result of the gross negligence or willful misconduct of any of the Indemnified Parties so long as the claims are not
asserted on the basis of (i) theories of vicarious liability, including agency, apparent agency or employment or (ii) our failure to compel you to comply with the provisions of this Agreement. You will give us written notice of any action,
suit, proceeding, claim, demand, inquiry or investigation involving an Indemnified Party within five (5) days of your actual or constructive knowledge of it. At our election, you will defend us and/or the Indemnified Parties against the same,
or we may elect to assume (but under no circumstance will we be obligated to undertake) the defense and/or settlement of the action, suit, proceeding, claim, demand, inquiry or investigation at your expense and risk. We may obtain separate counsel
of our choice if we believe your and our interests may conflict. Our undertaking of defense and/or settlement will in no way diminish your obligation to indemnify the Indemnified Parties 

  

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and to hold them harmless. You will also reimburse the Indemnified Parties upon demand for all expenses, including reasonable attorneys’ fees and court
costs the Indemnified Parties incur to protect themselves, or to remedy your defaults. Under no circumstances will the Indemnified Parties be required to seek recovery from third parties or otherwise mitigate their losses to maintain a claim against
you, and their failure to do so will in no way reduce the amounts recoverable from you by the Indemnified Parties. Further, you will indemnify the Indemnified Parties for any claim for damages by reason of the failure of any contractor,
subcontractor, supplier or vendor doing business with you relating to the Hotel to maintain adequate insurance as required in the Manual. 
 You agree and
acknowledge that you are directly responsible for all fees and charges due and owing Hilton related to the prior franchise license agreement for this Hotel, if any such fees and charges remain outstanding as of the Effective Date. 
 10. NOTICE CONCURRENT TO OFFERING A MARKETED INTEREST 
 Except in the case of a Permitted Transfer (as defined in Subparagraph 11.b.2. below), if you, an Affiliate which, directly or indirectly, controls the Hotel and/or controls the entity which owns the Hotel (the “Controlling
Affiliate”) want to market the Hotel for sale or lease (other than the commercial space within the Hotel) or to sell the entity that owns the Hotel, or a controlling interest in that entity, or to sell a Controlling Affiliate, or
controlling interest in a Controlling Affiliate (collectively, the “Marketed Interest”), we require that you give us written notice concurrently when you begin to market such Marketed Interest for sale or lease. 
 11. Transfer 
 a. Our Transfer. We have the
right to transfer or assign this Agreement or any of our rights, obligations, or assets under this Agreement to any person or legal entity. You acknowledge and agree that this Agreement is a license for the Licensed Brand only, and the programs that
are unique to the Licensed Brand. Therefore, if we transfer or assign this Agreement, your right to use any programs, rights or services related to or provided by the Entities or their designees, including the Reservation Service, any guest
frequency program not unique to the Licensed Brand, and any Marks (except the principal name identified in the Rider), may terminate. The transferee must assume all of our other obligations to you under this Agreement. 
 b. Your Transfer. We recognize that at some time, you or other persons associated with you or the Hotel may want to sell or transfer all or part
of an interest in this Agreement, in the Licensee, in the Hotel, or in the property on which the Hotel is located (“Hotel Site”). At the same time, you understand and acknowledge that the rights and duties set forth in this Agreement are
personal to you, and that we are entering into this Agreement in reliance on your business skill, financial capacity, and personal character (if you are an individual), and that of your officers, directors, partners, members, shareholders or
trustees (if you are a partnership, company, corporation, trust or other legal entity). As a result, you agree that if you or other persons associated with you or the Hotel desire to sell, transfer or lease this Agreement, or any interest in the
Licensee, Hotel, or Hotel Site, or in any entity that has an interest in this Agreement, the Licensee, the Hotel, or the Hotel Site, you will abide by the terms of this Subparagraph 11.b. 
 For purposes of this Subparagraph 11.b., the term “control” in all its forms, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of an entity, or of the power to veto major policy decisions of an entity, whether through the ownership of voting securities, by contract, or otherwise. References in this Agreement to
“Equity Interest” mean any direct or indirect beneficial interest in the Licensee, the Hotel and/or the Hotel Site. References in this Agreement to an “Equity Owner” mean the owner of a direct or indirect Equity
Interest. References in this Agreement to a “Publicly Traded Equity Interest” mean any Equity Interest that is traded on any securities exchange or is quoted in any publication or electronic reporting service maintained by the
National Association of Securities Dealers, Inc., or any of its successors. In computing changes of Equity Interests, limited partners will not be distinguished from general partners except as provided below. General partners, managing members and
other controlling interests in Licensee will be considered 

  

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Equity Owners for purposes of this paragraph, regardless whether they have any actual ownership interest in the Licensee. Non-voting equity interests may not
qualify as an Equity Interest, in our judgment. Our judgment will be final if there is any question as to the definition of Equity Interest or as to the computation of relative Equity Interests. You represent that as of the Effective Date the Equity
Interests are directly and (if applicable) indirectly owned as shown on the Rider. References in this Agreement to a “Transfer”, in all its forms, mean any sale, lease, assignment or transfer in any way of a direct or indirect
Equity Interest. 
 (1) Transfers That Do Not Require Our Consent or Notification. 
 (a) Privately Held Equity Interests: Less than 25% Change/No Change of Control. An Equity Interest that is not publicly traded may be Transferred
without notice to us and without our consent, if after the transaction: (i) less than twenty-five percent (25%) of the Equity Interest in the Licensee (excluding any Transfer under Subparagraph 11.b.(1) (b) below) will have changed
hands since the date of this Agreement, and (ii) any such Transfer will not result in a change of control of the Licensee, the Hotel or the Hotel Site. 
 (b) Publicly Traded Equity Interests. A Publicly Traded Equity Interest may be Transferred without notice to us and without our consent if the Transfer does not result in a change in the ownership of the
controlling Equity Interest. 
 (c) Commercial Leases. You may lease or sublease commercial space in the Hotel that is customarily
subject to lease, or enter into concession arrangements in the ordinary course of business at the Hotel, without notice to us and without our consent. 
 (d) Hotel Site. If the Hotel Site is owned by an unrelated third-party lessor, then such lessor may Transfer an Equity Interest in the Hotel Site without notice to us and without our consent provided that,
after completion of such Transfer, you remain in compliance with the requirements of Subparagraphs 6.a.(24), 6.a.(25) and 6.a.(34) of this Agreement. 
 (2) Permitted Transfers. Each Transfer of an Equity Interest or a transfer of this Agreement as described in Subparagraphs 11.b.2.(a) – (e) below is referred to as a “Permitted
Transfer.” We will consent to a Permitted Transfer, so long as you (i) give us sixty (60) days advance written notice of any proposed Permitted Transfer (the “Permitted Transfer Consent Request”), and
(ii) submit to us a nonrefundable processing fee of Three Thousand Dollars ($3,000) with the Permitted Transfer Consent Request, and meet the requirements for the particular Permitted Transfer as described below. 
 (a) Affiliate Transfer. You or any Equity Owner as of the Effective Date may sell, lease, transfer or otherwise convey any Equity Interest or
transfer this Agreement to an Affiliate (each an “Affiliate Transfer”); provided that: (i) such event does not, in our opinion, result in a change of control of the Licensee, the Hotel or the Hotel Site; (ii) you are not
then in material default under this Agreement; (iii) the Affiliate Transfer is not, directly or indirectly, to a Competitor; and (iv) you otherwise satisfy the conditions set forth in Subparagraphs 11.b.(3)(a) – (g), (i) and
(j) below that we may require you to satisfy. For purposes of this Agreement, “Affiliate” means, with respect to any entity, any natural person or firm, corporation, partnership, association, trust or other entity which,
directly or indirectly, controls, is controlled by, or is under common control with, you or any Equity Owners as of the Effective Date. A natural person or entity which has an entity as an Affiliate will also be deemed to be an Affiliate of that
entity. 
 (b) Family Transfers. If you or any Equity Owner as of the Effective Date are a natural person, and desire to sell, lease,
transfer or otherwise convey any Equity Interest or transfer this Agreement to: (i) a member or member of your or any such Equity Owner’s immediate family i.e. spouse, children, parents, siblings (“Family Members”) or
(ii) a trust or trusts for the benefit of Equity Owner or the Equity Owner’s Family Member(s) (each, a “Family Transfer”), in either case, without causing a change of control of the Licensee, the Hotel or the Hotel Site,
we will not withhold our consent to a Family Transfer if you otherwise satisfy the conditions set forth in Subparagraphs 11.b.(3)(a) - (g), (i), and (j) below that we may require you to satisfy. 
  

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 (c) Transfer Upon Death. Upon the death of a Licensee or Equity Owner, the Equity Interest or
this Agreement may transfer in accordance with such person’s will or, if such person dies intestate, in accordance with laws of intestacy governing the distribution of such person’s estate (“Transfer Upon Death”), without
our consent, provided that (i) the Transfer Upon Death is to a Family Member or to a legal entity formed by such Family Member(s), and (ii) within one (1) year after the death, such Family Member(s) or entity meets all of our then
current requirements for an approved applicant. 
 (d) Bricks and Mortar Transfer. If you own the Hotel and/or Hotel Site, you may
sell, lease, transfer or otherwise convey the Hotel and/or the Hotel Site (a “Bricks and Mortar Transfer”), provided that: (i) if in our judgment, after completion of the Bricks and Mortar Transfer, you retain legal possession
and control of the Hotel and/or the Hotel Site as ground lessee under a long-term ground lease agreement with an unrelated third-party lessor; (ii) you retain the management control of the Hotel operations, and continue to comply with the
requirements of Subparagraph 6.a.(24) and 6.a.(25) of this Agreement; (iii) you are not then in material default under this Agreement; (iv) the Bricks and Mortar Transfer is not, directly or indirectly, to a Competitor; and (v) you
otherwise satisfy the conditions as set forth in Subparagraphs 11.b.(3)(a) - (g), (i) and (j) below that we may require you to satisfy. If, in our judgment, the Bricks and Mortar Transfer will result in your loss of possession or control
of the Hotel or Hotel Site or management of the Hotel, the sale will then be considered a Change of Ownership (as defined below) and you must comply with the provisions of Subparagraph 11.b.(3). 
 (e) Privately Held Equity Interests: 25% or Greater Change/No Change of Control. You or any Equity Owner as of the Effective Date may sell,
lease, transfer or otherwise convey an Equity Interest if, after the completion of such conveyance; (i) twenty-five percent (25%) or more cumulative Equity Interest in Licensee (excluding any Transfer under Subparagraph 11.b.(1)
(b) above) will have changed hands since the Effective Date of this Agreement; (ii) such event does not, in our opinion, result in a change of control of the Licensee, the Hotel or the Hotel Site; (iii) you are not then in material
default under this Agreement; (iv) the Transfer is not, directly or indirectly, to a Competitor; and (v) you otherwise satisfy the conditions as set forth in Subparagraphs 11.b.(3)(a) - (g), (i) and (j) below that we may require
you to satisfy. 
 (3) Change of Ownership Transfer. Any proposed Transfer that does not otherwise qualify as a Transfer that does not
require our consent or notification pursuant to Subparagraph 11.b.(1) or a Permitted Transfer pursuant to Subparagraph 11.b.(2) above will be considered a change of ownership Transfer (a “Change of Ownership”). You must give us at
least sixty (60) days advance written notice of any proposed Change of Ownership. If there is a proposed Change of Ownership and the proposed new owner (the “Transferee Licensee”) desires to continue to operate the Hotel as a
System hotel, the Transferee Licensee must submit to us a complete application for a new franchise license agreement (the “Change of Ownership Application”) accompanied by payment of our then prevailing development services fee. If
we do not approve the Change of Ownership Application, we will refund the development services fee, less Five Thousand Dollars ($5,000) for processing costs. We may also require you or the Transferee Licensee to pay the then prevailing PIP Fee for
us to determine the renovation requirements for the Hotel. If we approve the Change of Ownership Application, we may require the Transferee Licensee to pay any other applicable fees and charges we then impose for new Licensed Brand franchise
licenses. 
 We will process the Change of Ownership Application in accordance with our then current procedures, including review of criteria
and requirements regarding upgrading of the Hotel, credit, background investigation, operations abilities and capabilities, prior business dealings, market feasibility, guarantees, and other factors we consider relevant. We will have sixty
(60) days from our receipt of the completed and signed application to consent or withhold our consent to the Transferee Licensee and/or Change of Ownership. During that time you authorize us to communicate with the Transferee Licensee and to
provide to the Transferee Licensee any information we have about the Hotel and the market in which the Hotel operates. 
  

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 We may, at our option, or as applicable, make our consent subject to satisfaction of certain conditions,
including: 
 (a) You must cure any existing defaults or events that would become defaults with the giving of notice and passage of
time, including, the payment in full at the closing of the Transfer (the “Closing”) of all unpaid obligations owed to us and any Entities by you, and/or the renovation by you (or the Transferee Licensee for a Change of Ownership
Transfer) of all or part of the Hotel; 
 (b) We must receive evidence that insurance coverage, as required by this Agreement, is in
full force and effect on the date of Closing; 
 (c) We must receive payment of the amount of any fees and charges we estimate will
accrue to us or any of the Entities through the date of Closing; 
 (d) At all times pending the Closing, you must remain in
compliance with the terms of this Agreement; 
 (e) You must sign an estoppel and a general release in a form satisfactory to us, of
any and all claims, demands and causes of action that you and your partners, proprietors, directors, officers, shareholders, members, successors and assigns (as the case may be) may or might have against us or any of the Entities, and their
respective officers, directors, members, shareholders, agents, attorneys, contractors and employees in their corporate and individual capacities including claims arising under any applicable laws, rules and ordinances; 
 (f) You must submit to us all information related to the Transfer that we may reasonably require, including: (i) copies of any Transfer
agreement(s); (ii) copies of organizational documents; (iii) a description of the proposed ownership; and (iv) financial statements and business information for all participants in the proposed Transfer (collectively, the
“Transfer Information”); 
 (g) You must provide us with evidence and all adequate assurances we may request (as
determined by us in our sole and absolute discretion) of the Transferee Licensee’s (or any new Equity Owner’s) assumption of and ability to perform all, or its pro rata share, of your (or the Transferring Equity Owner’s) obligations
under this Agreement; 
 (h) You must execute our then-current standard form of voluntary termination agreement covering termination
of this Agreement, and cause the Transferee Licensee to execute a new franchise license agreement (“New License”) with us. The New License will (i) be on our then current form for the grant of new franchise licenses,
(ii) contain our then current license terms, and (iii) contain upgrading and other requirements, if any, that we impose; 
 (i)
You must cause the guarantor, if any, to execute our then-current standard form of guarantee of franchise license agreement in accordance with the provisions of Subparagraph 6.a.(24) and 14.a.(4) of this Agreement or as otherwise required under
the provisions of the New License; and 
 (j) The new Equity Owner(s), Transferee Licensee and new General Manager and/or employees
of the Management Company must successfully complete any training and orientation programs we require. 
 We have the right to withhold our
consent to any proposed Transfer if any of these conditions are not met to our satisfaction, or if the Transferee Licensee is a Competitor. If we approve the Change of Ownership Application, you will not be liable for any liquidated damages for
early termination of this Agreement as long as the New License is signed by the Transferee Licensee no later than the Closing of the Change of Ownership transaction, and all conditions to our execution of the New License have been satisfied. If we
do not approve the Change of Ownership Application, or if you or the Transferee Licensee do not comply with all these conditions and the Transfer still occurs, then you will be in material default of this Agreement and we will be entitled to all of
our remedies, including the right to terminate this Agreement, and the right to payment of all amounts set forth in Subparagraph 14.c. 
  

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 (4) Public Offering. If you and/or any of the Equity Owners “offer to sell” or
“sell” any “securities” in the Licensee, the Hotel or the Hotel Site, you must comply with the terms and conditions set forth in this Subparagraph 11.b.(4). All materials required by any applicable law for the offer or sale of
those securities must be submitted to us for review at least twenty (20) days before the date you distribute those materials, or file them with any governmental agency, including any materials to be used in any offering exempt from registration
under any securities laws. Upon our request, you must submit a non-refundable Five Thousand Dollar ($5,000) processing fee to us with the offering documents, and pay any additional costs we may incur in reviewing your documents, including reasonable
attorneys’ fees. Except as legally required to describe the Hotel in the offering materials, you also may not use any of the Marks or otherwise imply Hilton’s or our participation in or endorsement of any securities or any securities
offering. We will have the right to approve any description of this Agreement or of your relationship with us, or any use of the Marks, contained in any “prospectus,” “offering memorandum” or other communications or materials you
use in the sale or offer of any “securities.” To the extent we give you any comments to your documents, you must modify the documents to address those comments, satisfactory to us, before filing or distributing the documents. Our review of
these documents will not in any way be considered our agreement with any statements contained in those documents, including any projections, or our acknowledgment or agreement that the documents comply with any applicable laws. 
 You may not sell any “securities” unless you do so in compliance with all applicable securities laws, and unless you clearly disclose to all
purchasers and offerees that (i) neither we, nor any Entity, nor any of our or their respective officers, directors, agents or employees, will in any way be deemed an “issuer” or “underwriter” of the “securities,”
and that (ii) we, the Entities, and our respective officers, directors, agents and employees have not assumed and will not have any liability or responsibility for any financial statements, prospectuses or other financial information contained
in any “prospectus” or similar written or oral communication. You agree to indemnify, defend and hold the Indemnified Parties free and harmless of and from any and all liabilities, costs, damages, claims or expenses arising out of or
related to the “sale” or “offer” of any of your “securities” to the same extent as provided in Paragraph 9 of this Agreement. All terms used in this Subparagraph 11.b.(4) will have the same meaning as in the Securities
Act of 1933, as amended. 
 (5) Transfers Not in Accordance With This Agreement. Any purported Transfer or assignment of this
Agreement, by operation of law or otherwise, that is not in accordance with the provisions of this Agreement, will be null and void and will constitute a material breach of this Agreement, and will allow us to terminate this Agreement without giving
you any opportunity to cure. Further, we will have all other rights and remedies, including the right to specific performance or mandatory or prohibitory injunctive relief, to redress any attempt on your part to Transfer an Equity Interest or this
Agreement in violation of the provisions of this Agreement. 
 (6) Pledge to Lending Institution. Notwithstanding any other provision
of this Agreement, you do not need to notify us or obtain our approval if you or any Equity Owner want to pledge or mortgage the Hotel or any Equity Interest to a third-party bank or other commercial lending institution that is not a Competitor.
However, you do need to notify us and request our consent if you want to pledge or mortgage your interest in this Agreement. We have the right to charge a fee to you for our review of this request. As a condition to our giving our consent to a
pledge or mortgage of this Agreement we will require the lender and you to sign a “lender comfort letter” agreement in a form satisfactory to us that describes our requirements on foreclosure, and includes an estoppel and general release
of Claims that you may have against us, Hilton or the Entities. If it desires to continue to operate the Hotel as a System hotel pursuant to the terms of this Agreement upon a foreclosure or similar event, the lender must comply with the terms of
the lender comfort letter agreement or, if no lender comfort letter agreement was signed, then it must comply with the terms and conditions of this Agreement for a Transfer involving a Change of Ownership. 
  

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 12. Condemnation and Casualty 
 a. Condemnation. You will, at the earliest possible time, give us notice of any proposed taking of any portion of the Hotel by eminent domain. If we agree that the Hotel or a substantial part of the Hotel is to
be taken, we may, at our option and within a reasonable time of the taking (within four months) transfer this Agreement to a nearby location you select. If we approve a new location, and if within one (1) year of the closing of the Hotel you
open a new hotel (or are diligently proceeding toward opening a new hotel and ultimately do so) at the new location in accordance with our specifications and in accordance with our timing requirements, then the new hotel will be deemed to be the
Hotel licensed under this Agreement. If a condemnation takes place and a new hotel does not, for whatever reason, become the Hotel under this Agreement in strict accordance with this Paragraph 12 (or if it is reasonably evident to us that this will
be the case), then we may terminate this Agreement immediately upon notice to you, and we will not require you to pay a Termination Fee under Subparagraph 14.c. 
 b. Casualty. If the Hotel is damaged by fire or other casualty, you will immediately notify us. If the damage or repair requires closing the Hotel, you may choose to repair or rebuild the Hotel according to our
standards, provided you (i) immediately notify us (ii) begin reconstruction within four (4) months after closing, and (iii) reopen the Hotel for continuous business operations as soon as practicable (but in any event within one
(1) year after the closing of the Hotel), giving us ample advance notice of the date of reopening. We may, in our sole discretion, extend the time for commencement of construction and re-opening of the Hotel. Until we determine that the Hotel
can be re-opened as a System hotel, the Hotel will not promote itself as a System hotel, or otherwise identify itself with any of the Marks without our prior written consent. You and we each have the right to terminate this Agreement if you elect
not to repair or rebuild the Hotel as set forth above in this Paragraph 12, provided the terminating party gives the other party sixty (60) days written notice, in which case we will not require you to pay a Termination Fee under Subparagraph
14.c; provided however, if after the termination notice and before the expiration of three (3) years thereafter or the natural expiration of the License Term, whichever is earlier, you, or any of your Affiliates, have a controlling interest in
and/or operate a hotel at this Hotel Site and that hotel is not operated under a license or franchise from one of the Entities, then you must pay us the Termination Fee upon our demand. 
 c. No Extensions of Term. Nothing in this Paragraph 12 will extend the License Term. 
 13. Term of License. Unless terminated earlier, this Agreement will expire without notice on the date set forth on the Rider. You acknowledge and agree that this
Agreement is non-renewable and that this Agreement confers upon you absolutely no rights of license renewal or extension whatsoever following the expiration of the License Term. 
 14. Termination 
 a. Termination, Suspension or Other Interim Remedies by Us on Advance Notice.
In addition to our right to immediately terminate this Agreement upon the occurrence of any of the events listed in Subparagraph 14.b, we have the right to terminate this Agreement immediately upon notice to you if you fail to cure an Event of
Default (as defined in Subparagraph 14.a.(1)) within thirty (30) days after we furnish notice of default to you based on the Event of Default, or, if there is a non-monetary Event of Default that is incapable of cure within thirty
(30) days, if you fail to begin to cure within such thirty (30) day period, or fail to diligently pursue cure of the default or fail to cure the default within the additional time periods we set forth in the notice of default. In lieu of
termination at our option, we may elect to postpone termination for a period of time we alone determine and impose one or more of the Interim Remedies listed below in subsection (3), and you expressly agree that, we will continue to retain the right
which we may exercise at any time we determine to terminate this Agreement. 
 (1) An “Event of Default” will occur if you
fail to satisfy or comply with any of the obligations, requirements, conditions, or terms set forth in (i) this Agreement, the Manual (including the standards in the Manual and minimum performance scores required by the Manual), or any
attachment to this Agreement; or (ii) any other agreement you have with us, or any of the Entities, relating to the Hotel, including, any computer system agreement, or any agreement to manage the Hotel. An Event of Default will also occur if
you make any misrepresentations to us, whether in entering into this Agreement, or in performing your obligations to us. 
  

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 (2) Our notice of termination will not relieve you of your obligations under this Agreement or any of its
attachments. 
 (3) After expiration of the applicable notice and cure periods, if any, that would allow us to terminate this Agreement, we
may at anytime elect to postpone termination for a period of time we alone determine and impose any one or more of the following interim remedies (each, an “Interim Remedy”), including the suspension of our obligations under this
Agreement and/or Hilton’s obligations under the Hilton Information Technology System Agreement, and any other agreement between you and us or any of the Entities related to this Hotel and/or the property upon which the Hotel is located
(collectively, “Your Agreements”): 
 (a) We and/or Hilton may suspend the Hotel from any reservation and/or website
services. We may remove the listing of the Hotel from any directories we publish, and from any advertising we publish, and/or remove or suspend the Hotel from the Reservation Service. If we suspend the Hotel from the Reservation Service, we will
have the right to divert reservations previously made for the Hotel to other System hotels. 
 (b) We and/or Hilton may disable all or any
part of the software provided to you under Your Agreements, and/or may suspend any one or more of the information technology and/or network services that we and/or Hilton provide or support under Your Agreements. 
 (c) We and/or Hilton may charge you for: the cost of any computer hardware, computer software, other information technology and/or information
technology service which we and/or Hilton provided to you at no additional charge other than the fees you paid under Your Agreements; costs related to suspending or disabling your right to use any software systems or technology we and/or Hilton
provided to you, together with intervention or administration fees set forth in the Manual; and, the cost of any computer hardware, computer software, other information technology and/or information technology service we and/or Hilton determine to
provide you (at our and Hilton’s option) after the date of our notice of default (each, an “Information Technology Recapture Charge”). An Information Technology Recapture Charge may, at our sole option, take the form of one or
more specific dollar amounts and/or of a percentage increase to any of the fees charged based on a percentage of your Gross Room Revenues under this Agreement and/or Your Agreements (a “Percentage Fee”). If an Information Technology
Recapture Charge consists of one or more specific dollar amounts, then you must pay each such amount to us or Hilton immediately upon demand. If an Information Technology Recapture Charge consists of an increase to a Percentage Fee, you must pay the
increased Percentage Fee when and as Your Agreements required you to pay the original fee (as applicable). You understand and agree that these increases may be levied in any Percentage Fee notwithstanding any other provision of this Agreement and/or
any other of Your Agreements. 
 If, after we impose any Interim Remedy, but before we exercise our reserved right to terminate this
Agreement (as provided above), you completely cure to our satisfaction the subject Event(s) of Default, then we may either elect to terminate this Agreement despite your untimely cure, or, at our sole option, elect not to terminate this Agreement;
if the latter, we will withdraw the Interim Remedy on a going-forward basis. 
 You agree that our exercise of the right to elect Interim
Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that the rights granted to us in this clause (3) to elect Interim Remedies are in addition to, and apart from, any other rights we may have in
this Agreement, including our reserved right to terminate this Agreement. If we exercise the right to elect Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not
be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. 
  

 19 

 (4) In addition to the cure requirements specified in our written notice of an Event of Default, we may
also require you to cause person(s) or entity(ies) acceptable to us to guarantee all of your obligations under this Agreement by executing our then-current standard form guarantee. 
 b. Immediate Termination by Us. We have the right to terminate this Agreement immediately upon notice to you (or terminate it at the earliest time
permitted by applicable law) if one or more of the following breaches to this Agreement or any of its attachments occur: 
 (1) After curing
any material violation of this Agreement or the Manual, you engage in the same noncompliance within any consecutive twenty four (24) month period, whether or not the noncompliance is corrected after notice; or after we have notified you of your
noncompliance with any of the requirements imposed by this Agreement or the Manual, regardless of materiality, you engage in a pattern of noncompliance with any of those requirements, whether or not the noncompliance is corrected after notice, which
pattern of non-compliance in and of itself will be deemed material; 
 (2) You, or any guarantor of your obligations under this Agreement:

 (a) Generally fails to pay its debts as they become due or admits in writing its inability to pay its debts, or makes a general assignment
for the benefit of its creditors; 
 (b) Commences any case, proceeding or other action seeking reorganization, arrangement, adjustment,
liquidation, dissolution or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or
any substantial part of its property; 
 (c) Takes any corporate or other action to authorize any of the actions set forth above in clauses
(a) or (b); 
 (d) Suffers initiation of any case, proceeding or other action against it seeking to have an order for relief entered
against it as debtor, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a
receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property, and such case, proceeding or other action (i) results in the entry of an order for relief against it which is not fully stayed
within seven (7) business days after the entry of the order or (ii) remains undismissed for forty-five (45) days; 
 (e)
Allows an attachment to remain on all or a substantial part of the Hotel or of its assets for thirty (30) days; 
 (f) Fails within
sixty (60) days of the entry of a final judgment against it in any amount exceeding One Hundred Thousand Dollars ($100,000) to discharge, vacate or reverse the judgment, or to stay execution of it, or if appealed, to discharge the judgment
within thirty (30) days after a final adverse decision in the appeal; 
 (g) Loses possession or the right to possession of all or a
significant part of the Hotel or Hotel Site, whether through foreclosure, including, but not limited to, foreclosure of any lien, trust deed, or mortgage, loss of lease, or for other reasons apart from those described in Paragraph 12; 
 (h) Fails to continue to identify the Hotel to the public as a System hotel, or abandons the operation of the Hotel by failing to operate the Hotel for
five (5) consecutive days, or any shorter period after which it is not unreasonable under the facts and circumstances for us to conclude that you do not intend to continue to operate the Hotel, unless the failure to operate is due to fire,
flood, earthquake or similar causes beyond your control, provided that you have taken reasonable steps to minimize the impact of such events; 
 (i) Contests in any court or proceeding our ownership of the System or any part of the System, or the validity of any of the Marks; 
  

 20 

 (j) Takes any action toward dissolving or liquidating itself, if it is a corporation, limited liability
company or partnership, except for death of a partner; 
 (k) Or any of the owners of a controlling Equity Interest is or is discovered to
have been convicted of a felony (or any other offense or conduct if we reasonably determine it is likely to adversely reflect upon or affect the Hotel, the System, us and/or any Entity); 
 (l) Conceals revenues, maintains false books and records of accounts, submits false reports or information to us or otherwise attempts to defraud us;

 (m) Becomes a Competitor (as defined in Subparagraph 6.a.(23)) without our prior written consent; 
 (n) Transfers any interest in this Agreement or in the Hotel other than in a transaction that we have approved (unless the Transfer is of a type
described in Paragraph 11 where our approval is not required); 
 (o) Does not purchase or maintain insurance required by this Agreement, or
does not reimburse us for our purchase of insurance on its behalf; or 
 (p) Becomes a “Restricted Person” as defined in
Subparagraph 16.o. or fails to comply with the Restricted Persons or anti-bribery provisions of Subparagraph 16.o., including a breach of the representations set forth in Subparagraph 16.o. or we discover through notice from you or through our own
investigation that the representations set forth in Subparagraph 16.o. are or have become false. 
 (3) Information involving you or your
affiliates, whether provided by you under Subparagraph 6.a.(29) or obtained through Hilton’s or our own investigation, discloses facts concerning you or your affiliates, including your respective officers, directors, shareholders, partners or
members, and/or the Hotel, or title to the property over which the Hotel is constructed or any other property used by the Hotel, including leased commercial space, which, in the reasonable opinion of Hilton is likely to adversely reflect upon or
affect in any manner, any gaming licenses or permits held by the Entities or the then current stature of any of the Entities with any gaming commission, board, or similar governmental or regulatory agency, or the reputation or business of any of the
Entities; 
 (4) We make a reasonable determination that continued operation of the Hotel by you will result in an imminent danger to public
health or safety; or 
 (5) Any guarantor of your obligations under this Agreement breaches its guarantee, if any, or any guarantee fails to
be a continuing obligation fully enforceable against the person(s) signing the guarantee, or if there is any inadequacy of the guarantee or guarantor, and the guarantor fails to provide adequate assurances to us as we may reasonably request.

 c. Liquidated Damages upon Termination by Us. If we terminate the Agreement under Subparagraphs 14.a. or 14.b. above, you
acknowledge that your default will cause substantial damage to us, the actual amount of which will be difficult to determine. Therefore, you agree that if we terminate this Agreement under Subparagraphs 14.a. or 14.b. as a result of your default or
breach of this Agreement, or if you unilaterally terminate this Agreement without cause, which is not authorized and which would be a material breach of this Agreement, then, upon termination, we will be entitled to recover, and you must promptly
pay us upon demand: 
 (i) all outstanding fees and charges owed to us, Hilton and the Entities under this Agreement for periods up to the date of
termination, including amounts accrued but not yet billed; plus 
 (ii) as liquidated damages for the future Monthly Royalty Fees and Monthly Program Fees we
will lose, a “Termination Fee” calculated by adding the result of (1) plus the result of (2) where: 
 (1) is
calculated by multiplying the average monthly Gross Rooms Revenue of the Hotel for the twenty-four (24) full calendar-month period immediately preceding the month of termination by the Monthly Royalty Fee percentage under this Agreement
excluding any percentage fee discount (this product, the “Average Monthly Royalty Fees”), then multiplying the Average Monthly Royalty Fees by thirty-six (36), or by such lesser multiple as would represent the remaining full or
partial months between the date of termination and the expiration of the License Term; and 
  

 21 

 (2) is calculated by multiplying the average monthly Gross Rooms Revenue of the Hotel for the
twenty-four (24) full calendar-month period immediately preceding the month of termination by the sum of the Monthly Program Fee percentage under this Agreement excluding any percentage fee discount (this product, the “Average Monthly
Program Fees”), then multiplying the Average Monthly Program Fees by twelve (12), or by such lesser multiple as would represent the remaining full or partial months between the date of termination and the expiration of the License Term.

 If the Hotel has been open and operating as a System hotel for less than twenty-four (24) months, then in calculating that part of the Termination
Fee under Subparagraph 14.c. (ii)(1), we will multiply thirty-six (36) by the greater of a) the Average Monthly Royalty Fees from the date the Hotel opened as a System hotel through the month immediately preceding the month of termination, and
b) the average Monthly Royalty Fees per Guest Room owed to us by all System hotels in operation over the twelve (12) full calendar-month period immediately preceding the month of termination, multiplied by the number of Guest Rooms in the Hotel
and in calculating that part of the Termination Fee under Subparagraph 14.c. (ii)(2), we will multiply twelve (12) by the greater of a) the Average Monthly Program Fees from the date the Hotel opened as a System hotel through the month
immediately preceding the month of termination, and b) the average Monthly Program Fees per Guest Room owed to us by all System hotels in operation over the twelve (12) full calendar-month period immediately preceding the month of termination,
multiplied by the number of Guest Rooms in the Hotel. 
 The Termination Fee is intended to compensate us only for the value lost in Monthly Royalty Fees and
Monthly Program Fees as a result of the early termination of the Agreement, and you agree that you remain liable for all other obligations and claims under the Agreement, including obligations following termination under Subparagraphs 5.c., 5.d.,
8.c., 14.d. and Paragraph 9 and liabilities arising out of your breach or default. 
 d. De-identification of Hotel Upon Termination.
Upon expiration or termination of this Agreement for any reason, you will immediately stop holding the Hotel out to the public as a System hotel, and will take whatever action is necessary to assure that no use is made of any part of the System
(including the Marks, all forms of advertising and other indicia of operation as a System hotel), and discontinue use of all distinguishing indicia of System and HHC hotels, including such indicia on exterior and interior signs, stationery,
operating equipment and supplies, Internet sites, brochures and other promotional material at or in connection with the Hotel or otherwise. You will return to us the Manual and all other proprietary materials, remove all distinctive System features
of the Hotel, including the primary freestanding sign down to the structural steel, and take all other actions (“De-identification Actions”) we require to preclude any possibility of confusion on the part of the public that the
Hotel is still using all or any part of the System or is otherwise holding itself out to the public as a System hotel. If within thirty (30) days after the termination or expiration of this Agreement, you fail to comply with this paragraph, we
and our agents, at your expense, may enter the premises of the Hotel to perform the De-identification Actions without being deemed guilty of or liable for trespass or any other tort, and make or cause to be made such changes at your expense. You
will pay all such expenses that we incur upon demand. If you fail to take all De-identification Actions, we and Hilton will be entitled to recover all losses, costs, expenses and damages caused by that failure. We and Hilton will also be entitled to
relief by injunction, and any other right or remedy at law or in equity to enforce our rights under this Agreement. 
 e. Special
Termination. You recognize the additional harm by way of confusion for national accounts, greater difficulty in re-entering the market, and damage to goodwill of the Marks that we will suffer if (i) you (or any of your Affiliates) cause two
(2) or more franchise license agreements for the Licensed Brand between yourself (or any of your Affiliates) and us to be terminated prior to the expiration date of such agreements within twelve (12) months of each other (if we terminate
those agreements as a 

  

 22 

 
result of your breach or default, you (or your Affiliate) will be deemed to have caused the termination) or (ii) this Agreement terminates or is
terminated by us following an unapproved Transfer to a Competitor (each of these will be referred to as a “Special Termination”). In the case of a Special Termination, you must promptly pay us upon demand, as a substitute for the
amount we may demand pursuant to Subparagraph 14.c. (ii) above, two (2) times the Termination Fee payable under Subparagraph 14.c (ii) in addition to any other amounts you owe pursuant to Subparagraph 14.c. This Subparagraph 14.e. is
not triggered upon mutual voluntary termination of this Agreement. For purposes of Subparagraph 14.e.(i) above only, Licensed Brand includes Hampton Inn and Hampton Inn & Suites. 
 15. Relationship of Parties 
 a. No Agency
Relationship. You are an independent contractor. Neither of us is the legal representative or agent of the other, or has the power to obligate (or has the right to direct or supervise the daily affairs of) the other for any purpose. You
expressly acknowledge that we have a business relationship based entirely on, and defined by, the express provisions of this Agreement and that no partnership, joint venture, agency, fiduciary or employment relationship is intended or created by
reason of this Agreement. Neither we nor any of the Entities will have any responsibility to any person for any debts, liabilities, damages, claims or expenses related to the establishment, construction or operation of the Hotel or arising out of or
related to your policies, procedures, practices or alleged practices in the operation of the Hotel or any other business conducted at the Hotel. 
 b. Notices to Public Concerning Your Independent Status. You will take all steps reasonably necessary to minimize the chance that a claim will be made against us for anything that occurs at the Hotel, or for the acts or omissions of
you or anyone associated or affiliated with you or the Hotel, including steps mandated by us in the Manual or otherwise. You will not incur any obligation or indebtedness on our behalf. All contracts for the Hotel’s operations and services at
the Hotel will be in your name or in the name of your Management Company. You will not enter into or sign any contracts in our name or using the Marks (including the name of the Licensed Brand) or any acronyms or variations of the Mark. You will
disclose in all dealings with suppliers and third parties that you are an independent entity and that we have no liability for your debts. 
 16.
Miscellaneous 
 a. Severability and Interpretation. The remedies provided in this Agreement are cumulative. These remedies are not
exclusive of any other remedies to which you or we may be entitled in case of any breach or threatened breach of the terms and provisions of this Agreement. If any provision of this Agreement is held to be unenforceable, void or voidable, that
provision will be ineffective to the extent of the prohibition without in any way invalidating or affecting the remaining provisions of this Agreement, and all remaining provisions will continue in effect. If any provision of this Agreement is held
unenforceable due to its scope, but may be made enforceable by limiting its scope, the provision will be considered amended to the minimum extent necessary to make it enforceable. This Agreement will be interpreted without interpreting any provision
in favor of or against either of us by reason of the drafting of the provision, or either of our positions relative to the other. Any covenant, term or provision of this Agreement that provides for continuing obligations after the expiration or
termination of this Agreement will survive any expiration or termination. To the extent that the provisions of this Agreement provide for periods of notice less than those required by applicable law, or provide for termination, cancellation,
non-renewal or the like other than in accordance with applicable law, those provisions will, to the extent they do not comply with applicable law, be superseded by said law, and we will comply with applicable law in connection with each of these
matters. 
 b. Governing Law and Jurisdiction. This Agreement will become valid when signed by both of us. We each agree that the
State of New York has a deep and well developed history of business decisional law. For this reason, we each agree that except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended,
this Agreement, all relations between us, and any and all disputes between us, whether sounding in contract, tort, or otherwise, are to be exclusively construed in accordance with and/or governed by (as applicable) the laws of the State of New York
without recourse to New York (or any other) choice of law or conflicts of law 

  

 23 

 
principles. If, however, any provision of this Agreement would not be enforceable under the laws of New York, and if the Hotel is located outside of New York
and the provision would be enforceable under the laws of the state in which the Hotel is located, then the provision in question (and only that provision) will be interpreted and construed under the laws of that state. Nothing in this section is
intended to invoke the application of any franchise, business opportunity, antitrust, “implied covenant,” unfair competition, fiduciary or any other doctrine of law of the State of New York or any other state which would not otherwise
apply absent this Subparagraph 16.b. 
 Because, as stated above, the State of New York has a well developed history of business decisional law and because
the courts of the State of New York are best suited to interpret and apply that law, we each agree that any litigation arising out of or related to this Agreement, any breach of this Agreement, the relationship between us, and, any and all disputes
between us, whether sounding in contract, tort, or otherwise, will be submitted to and resolved exclusively by a court of competent jurisdiction located in the City and State of New York. You waive, and agree never to assert, move or otherwise claim
that this venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, any claim under the judicial doctrine of forum non conveniens). 
 If our mutual choice of venue in the City and State of New York is not honored by the subject court(s), then we each agree that any litigation arising out of or related to this Agreement; any breach of this Agreement;
the relationship between us; and, any and all disputes between us, whether sounding in contract, tort, or otherwise, will instead be submitted to and resolved exclusively by a court of competent jurisdiction located in the City and County of Los
Angeles, California. You waive, and agree never to assert, move or otherwise claim that this substitute venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, any claim under the judicial doctrine of forum
non conveniens). 
 c. Exclusive Benefit. This Agreement is exclusively for our and your benefit, and none of the obligations of
either of us in this Agreement will run to, or be enforceable by, any other party (except for covenants in favor of the Entities, which covenants will run to and be enforceable by the Entities or their successors and assigns), or give rise to
liability to a third party, except as otherwise specifically set forth in this Agreement. 
 d. Entire Agreement. You and we
acknowledge that we want all terms of this business relationship defined in this written Agreement, and that neither of us wants to enter into a business relationship with the other in which any terms or obligations are subject to any oral
statements or in which oral statements serve as the basis for creating rights or obligations different than or supplementary to the rights and obligations set forth in this Agreement. Therefore, you and we agree that this Agreement and its
attachments will be construed together and will supersede and cancel any prior and/or contemporaneous discussions or writings (whether described as representations, inducements, promises, agreements or by any other term) between us. We each agree
that we placed, and will place, no reliance on any such discussions or writings. You agree that no claims, representations or warranties of earnings, sales, profits, success or failure of the Hotel have been made to you. This Agreement and its
attachments is the entire agreement between us and contains all of the terms, conditions, rights and obligations between us with respect to the Hotel and any other aspect of the relationship between us. No change, modification, amendment or waiver
of any of the provisions of this Agreement will be effective or binding on us unless it is in writing, specifically identified as an amendment to this Agreement, signed by one of our officers, and which may include an estoppel and general release of
Claims that you may have against us, Hilton or the Entities, in a form satisfactory to us. If any provision of this Agreement is inconsistent with the Manual, the provisions of this Agreement will prevail. No failure by us or by any of the Entities
to exercise any power given us under this Agreement or to insist on strict compliance by you with any of your obligations, and no custom or practice at variance with the terms of this Agreement, will be considered a waiver of our or any
Entity’s right to demand exact compliance with the terms of this Agreement. 
 e. Consent; Business Judgment. Wherever our
consent or approval is required in this Agreement, unless the provision specifically indicates otherwise, we have the right to withhold our approval at our option taking into consideration our assessment of the long-term interests of the System

  

 24 

 
overall. You and we recognize, and any arbitrator or judge is affirmatively advised that if those decisions are supported by our business judgment, neither
an arbitrator nor a judge nor any other person reviewing those decisions will substitute his, her or its judgment for our judgment. When the terms of this Agreement specifically require that we not unreasonably withhold our approval or consent, if
you are in default or breach under this Agreement, any withholding of our approval or consent will be considered reasonable. Our approvals and consents will not be effective unless given in writing. In no event may you make any claim for money
damages based on any claim that we have unreasonably withheld or delayed any consent or approval to a proposed act by you under the terms of this Agreement. You also may not claim damages by way of set-off, counterclaim or defense for our
withholding of consent. Your sole remedy for the claim will be an action or proceeding to enforce the provisions of this Agreement by specific performance or by declaratory judgment. 
 f. Notices. All notices must be in writing and will be effective on the earlier of (i) the day it is sent by facsimile with a confirmation of
receipt; or (ii) one business day after it is sent by next business day delivery service; or (iii) the third business day after it is sent by first-class or certified mail or other form of express delivery to the appropriate party at the
following single address, or such other single address as may be designated by the party to be notified (which, in no event, is a P.O. Box). If to us, the notice should be sent to our principal executive offices, addressed to “General
Counsel.” The current address of our principal executive offices is as follows: 9336 Civic Center Drive, Beverly Hills, CA 90210. We will send notices to your address, as set forth in the Rider. Notice to you is deemed given if 1) delivered in
writing by one of the delivery methods set forth above and 2) addressed to the principal correspondent for notice (“Principal Legal Correspondent”) at the address you designate in the Rider. If you want to change your address or the
Principal Legal Correspondent, you must notify us in writing in accordance with the delivery procedure set forth in this Subparagraph 16.f. If, however, you designate a change in the Principal Legal Correspondent, and the person providing the notice
is other than the then currently designated Principal Legal Correspondent, we reserve the right to require evidence, acceptable to us in our sole discretion, that the person requesting the change has the authority to do so. Except for notices of
actions to be taken pursuant to Paragraph 14, you hereby grant us permission to send communications to you by facsimile for the purposes of notices under this Agreement, including this Subparagraph 16.f., and/or to provide information from us to you
by facsimile or email, subject to any applicable laws. To the extent there are any regulations or laws prohibiting such mass communications and to the extent they are waivable, you hereby waive them. 
 g. General Release. You, on your own behalf and on behalf of, as applicable, your officers, directors, employees, heirs, administrators,
executors, agents and representatives and their respective successors and assigns hereby release, remise, acquit and forever discharge us and the Entities and their officers, directors, employees, agents, representatives and their respective
successors and assigns from any and all actions, claims, causes of action, suits, rights, debts, liabilities, accounts, agreements, covenants, contracts, promises, warranties, judgments, executions, demands, damages, costs and expenses, whether
known or unknown at this time, of any kind or nature, absolute or contingent, existing at law or in equity, on account of any matter, cause or thing whatsoever that has happened, developed or occurred before you sign and deliver this Agreement to us
(collectively, “Claims”). This release will survive the termination of this Agreement. 
 h. Estoppel Certificate.
Whenever we reasonably request it, you will deliver to us an estoppel certificate in the form we require as to the matters described in this Agreement. 
 i. Descriptive Headings. The descriptive headings in this Agreement are for convenience only and will not control or affect the meaning or construction of any provision in this Agreement. 
 j. Representations and Warranties. You warrant, represent and agree that all statements you made in the Application you submitted to us in
anticipation of this Agreement and all other documents and information you submitted to us are true, correct and complete as of the date of this Agreement and that you will continue to update them so that they are always true, correct and complete.
You further represent and warrant to us that (i) you have the full legal power and authority to enter into this Agreement and that by entering into this Agreement you will not be breaching any agreement to which you are a party, and
(ii) if you are a corporation, limited liability company, or other entity, (x) you are, and 

  

 25 

 
throughout the License Term will be, duly formed and validly existing, in good standing in the state in which you are organized, and are and will be
authorized to do business in the state in which the Hotel is located and (y) the individual who executed this Agreement on your behalf has the authority to do so. You hereby indemnify and hold us harmless from any breach of these
representations and warranties. These warranties and representations will survive the termination of this Agreement. 
 k. Time. Time
is of the essence in this Agreement. 
 l. Counterparts. This Agreement may be signed in counterparts, each of which will be
considered an original. 
 m. Performance Requirements/Responsibilities. Attachment A, setting forth certain of your performance
conditions and requirements, is incorporated by reference and made a part of this Agreement. 
 n. Informational Copies. You
acknowledge that we may provide, but are not required to provide, copies of any information we provide to you concerning the Hotel (such as quality assurance reports and default notices) to the owner and/or lessor of the Hotel. 
 o. Restricted Persons and Anti-bribery Representations and Warranties. You represent and warrant to us and to Hilton that to your actual or
constructive knowledge neither you, including your directors and officers, senior management, shareholders or other persons having a controlling interest in you, and any funding sources we require you to specify, are not, and are not owned or
controlled by, or acting on behalf of any of the following “Restricted Persons”: (1) the government of any country that is subject to an embargo imposed by the United States government; (2) entities located in or organized under
the laws of any country that is subject to an embargo imposed by the United States government; (3) individuals ordinarily resident in any country that is subject to an embargo imposed by the United States government; or (4) persons
identified from time to time by any government or legal authority under applicable laws as a person with whom dealings and transactions by us, Hilton and/or its Entities are prohibited or restricted, including persons designated on the U.S.
Department of the Treasury’s Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Other Blocked Persons (including terrorists and narcotics traffickers); and similar restricted party listings, including those
maintained by other governments pursuant to applicable United Nations, regional or national trade or financial sanctions. You agree that you will notify us in writing immediately upon the occurrence of any event which would render the foregoing
representations and warranties of this Subparagraph 16.o. incorrect. Notwithstanding anything to the contrary in this Agreement, you may not allow or sustain a Transfer to a Restricted Person or to an entity owned or controlled by a Restricted
Person. 
 You further represent and warrant to us and to Hilton that you will not directly or indirectly pay, offer, give or promise to pay or authorize the
payment of any monies or other things of value to: 
 (a) an official or employee of a government department, agency or instrumentality, state-owned or
controlled enterprise or public international organization; 
 (b) any political party or candidate for political office; or 
 (c) any other person at the suggestion, request or direction or for the benefit of any of the above-described persons and entities 
 if any such payment, offer, act or authorization is for purposes of influencing official actions or decisions or securing any improper advantage in order to obtain or
retain business, or engaging in acts or transactions otherwise in violation of any applicable anti-bribery legislation. 
 17. WAIVER OF JURY TRIAL 

 TO THE EXTENT EITHER PARTY INITIATES LITIGATION INVOLVING THIS AGREEMENT OR ANY ASPECT OF THE RELATIONSHIP BETWEEN US (EVEN IF OTHER PARTIES OR OTHER
CLAIMS 

  

 26 

 
ARE INCLUDED IN SUCH LITIGATION), ALL THE PARTIES WAIVE THEIR RIGHT TO A TRIAL BY JURY. THIS WAIVER WILL APPLY TO ALL CAUSES OF ACTION THAT ARE OR MIGHT BE
INCLUDED IN SUCH ACTION, INCLUDING CLAIMS RELATED TO THE ENFORCEMENT OR INTERPRETATION OF THIS AGREEMENT, ALLEGATIONS OF STATE OR FEDERAL STATUTORY VIOLATIONS, FRAUD, MISREPRESENTATION, OR SIMILAR CAUSES OF ACTION, AND IN CONNECTION WITH ANY LEGAL
ACTION INITIATED FOR THE RECOVERY OF DAMAGES BETWEEN OR AMONG US OR BETWEEN OR AMONG ANY OF OUR OWNERS, AFFILIATES, OFFICERS, EMPLOYEES OR AGENTS. 
 THIS AGREEMENT CONTINUES WITH AN ATTACHMENT A AND ATTACHMENT B, WHICH ARE A 
 PART OF THIS AGREEMENT. 
  

 27 

 ATTACHMENT A - PERFORMANCE CONDITIONS: 
 CHANGE OF OWNERSHIP 
  

	A.	Consultation. You or your representative(s) will meet with us to consult and coordinate with the project manager we assign to you. The meeting will take place within
forty-five (45) days after we notify you of approval, and the meeting will be held at a location we select. 

  

	B.	Work and Purchase Requirement. If applicable, the PIP is attached to this Agreement as Exhibit A, and incorporated in this Attachment A. You will perform the renovation
and/or construction work and purchase the items described on the PIP (the “Renovation Work”) on or before the completion date specified on the Rider. The Renovation Work will include your purchasing and/or leasing and installing all
fixtures, equipment, furnishings, furniture, signs, computer terminals and related equipment, supplies and other items that would be required of a new System hotel under the Manual and any other equipment, furnishings and supplies as we may require
for you to operate the Hotel. You will be solely responsible for obtaining all necessary licenses, permits and zoning variances required for the Hotel. 

  

	C.	Approval of Architect/Designer/Contractors. Before you submit Plans and Designs (as defined in Paragraph D) to us, you will furnish us with resumes and other information we
request pertaining to the architect and/or interior designer you desire to retain to prepare your Plans and Designs. The Plans and Designs will not be approved until we have approved the architect and designer who are to prepare the Plans and
Designs. Before Renovation Work, you will also submit to us resumes and other information we request pertaining to the general contractor and/or any major subcontractors for the Renovation Work. Renovation Work will not begin until we have approved
the contractors, which approval may be conditioned on bonding of the contractors. 

  

	D.	Approval of Plans and Designs. On or before the date specified on the Rider for submission of the Plans, you must submit to us your plans, layouts, specifications, drawings
and designs for the Renovation Work, including any proposed changes to the Hotel’s furnishings, fixtures, equipment, signs, decor, and physical appearance (collectively, the “Plans and Designs”). We may supply you with
representative prototype Guest Room and public area plans and schematic building plans as a guide for preparation of the Plans and Designs. Renovation Work will not begin unless and until we have approved the Plans and Designs. Before we approve the
Plans and Designs, we may require you to submit to us the existing plans, equipment, layouts, specifications, drawings and designs for the Hotel. Once we approve the Plans and Designs, no change may be made to the Plans and Designs without our
advance consent. In approving the Plans and Designs, we do not warrant the depth of our analysis or assume any responsibility for the efficacy of the Plans and Designs or the resulting Renovation Work. You will cause the Hotel renovation and/or
construction to be in accordance with this Agreement, the approved Plans and Designs, the Manual and the PIP. You will be solely responsible for obtaining all necessary licenses, permits and zoning variances that may be required for the Renovation
Work. It is solely your responsibility to ensure your Plans comply with our then prevailing standards and specifications as set forth in the Manual and with all Legal Requirements (as defined below). 

 You are responsible for making certain that the Hotel and the Renovation Work complies in all respects with all Legal Requirements. For purposes of this
Agreement, “Legal Requirements” means all public laws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governments and governmental authorities, which, now or
hereafter, may apply to the construction, completion, equipping and Opening of the Hotel and the operation of the Hotel, including environmental, zoning, building, and life safety. We and Hilton will have the right to, and you will arrange for us
and Hilton to, participate in all progress meetings during the development and construction of the Hotel, to have access to all contract and construction documents relating to the Hotel, and to have access to the Hotel during reasonable business
hours to visit the Hotel and the Renovation Work. However, neither we nor 

  

 Attachment A - 1 

 
Hilton are obligated to participate in progress meetings, or visit the Hotel and the Renovation Work, and our and Hilton’s participation and site visits
are not to be considered as a representation of the adequacy of the construction, the structural integrity, or the sufficiency of mechanical and electrical systems for the Hotel. Before we approve your Plans, your architect or other certified
professional must certify to us that the Plans either comply with all applicable Legal Requirements relating to accessibility/accommodations/facilities for those with disabilities. Within ten (10) days after completion of the Renovation Work,
your architect, general contractor or other certified professional must provide us with a certificate stating that the as-built premises complies with all applicable Legal Requirements relating to accessibility/accommodations/facilities for those
with disabilities. 
 The Manual may not be used by you or any design or construction professional for any hotel project other than the Hotel.

  

	E.	Commencement; Completion. You will begin the Renovation Work on or before the date specified on the Rider and will continue the Renovation Work uninterrupted (except to the
extent continuation is prevented by events beyond Licensee’s control, such as acts of God, third party strikes, acts of terrorism, war, or general governmental restrictions (“Force Majeure”)) until it is completed. For purposes
of this Paragraph E, Force Majeure does not include your own financial inability, inability to obtain financing, inability to obtain permits or any other events unique to you or the Hotel. Notwithstanding any Force Majeure, or any other matter, the
Renovation Work must be completed and the Hotel must be furnished, equipped, and comply with this Agreement no later than the date specified in the Rider (the “Renovation Work Completion Date”). We will have the sole right to
determine whether the Renovation Work has been completed in accordance with this Agreement, the approved Plans and Designs, the Manual and the PIP. 

  

	F.	Site Visits. During the course of Renovation Work, you and your architect, designer, contractors, and subcontractors will cooperate fully with us for the purpose of
permitting us to visit the Hotel and review the progress of the Renovation Work. In addition, you and your contractors, architect and designer will supply us with samples of construction materials, supplies, equipment, materials and reports as we
may request and give our representatives access to the Hotel Site and Renovation Work in order to permit us to carry out our site visits. 

  

	G.	Progress Reports. You will submit to us upon our request a report showing progress made toward fulfilling the terms of this Agreement. 

  

	H.	Acquisition of Equipment, Furnishings, and Supplies. You will purchase and/or lease and install all fixtures, equipment, furnishings, furniture, signs, computer terminals and
related equipment, supplies and other items we require in order to assure that the Renovation Work is completed under this Agreement. 

  

	I.	Cost of Construction and Equipping. You will bear the entire cost of the Renovation Work, including the cost of the Plans and Designs, professional fees, licenses, permits,
equipment, furniture, furnishings and supplies. 

  

	J.	Limitation of Liability. We will have no liability or obligation with respect to design and construction of the Hotel. We have furnished to you that portion of the Manual
which contains the technical standards and specifications to assist you in completing the Renovation Work. You acknowledge you have studied these standards and specifications and satisfied yourself that the Hotel can be designed, furnished and
equipped in accordance with these standards and specifications and that you and your design and construction consultants and contractors have the necessary resources and skills to do so. The Manual does not encompass the architectural, structural,
mechanical or electrical safety, adequacy, integrity or efficiency of the design or compliance with applicable Legal Requirements. We do not undertake to approve the Hotel as complying with governmental requirements or as being safe for guests or
other third parties and we have no responsibilities in these areas. You must indemnify us with regard to compliance with these matters to the extent provided in Paragraph 9 of this Agreement. 

  

 Attachment A - 2 

	K.	Conditional Authorization. We may conditionally authorize you to continue to operate the Hotel as a System hotel even though you have not fully complied with the terms of
this Attachment. Under certain circumstances, we may suspend services to the Hotel (including reservation services) while the Renovation Work is being performed by you. 

  

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

 (Remainder of page left intentionally blank.) 
  

 Attachment A - 3 

 ATTACHMENT B - 
 RIDER TO FRANCHISE LICENSE AGREEMENT 
  

			
	 Effective Date:
	  	
                                        
                            
		
		  	                    CLOSING
DATE                    
		
	 Licensor Name:
	  	 HAMPTON INNS FRANCHISE LLC,
 a Delaware limited
liability company

		
	 Licensed Brand:
	  	Hampton Inn
		
	 Initial Approved Hotel Name (Trade Name):
	  	Hampton Inn - Bowling Green
		
	 Principal Name in Licensed Brand:
	  	Hampton
		
	 Licensee Name and Address
 (Principal Legal Correspondent):
	  	 Apple Eight Hospitality Management, Inc. 
 Krissy Gathright 
 814 East Main Street 
 Richmond, VA 23219 
 Telephone: (804) 344-8121 
 Facsimile: (804) 344-8129 
 Email:
kgathright@applereit.com

		
	 Address of Hotel:
	  	 233 Three Springs Road
 Bowling Green, KY
42104

		
	 Initial Number of Approved Guest Rooms:
	  	130
		
	 Plans Submission Dates:
	  	N/A
		
	 Renovation Commencement Date:
	  	As of the Effective Date
		
	 Renovation Work Completion Date:
	  	In Accordance with the Attached Product Improvement Plan (“PIP”)

 Licensee agrees that the Renovation Commencement Date and Renovation Work Completion Date may be extended by
written notice from Licensor in its discretion. 
  

			
	 Expiration of Term:
	  	At midnight on the last day of the month of the tenth anniversary of the Effective Date
		
	 Monthly Program Fee:
	  	Four percent (4%) of the Hotel’s Gross Rooms Revenue, as defined in Subparagraph 7.b. of the Agreement, for the preceding calendar month. The Monthly Program Fee may be subject to change
in accordance with Subparagraph 7.a. above.
		
	 Monthly Royalty Fee:
	  	Four percent (4%) of the Hotel’s Gross Rooms Revenue, as defined in Subparagraph 7.b. of the Agreement, for the preceding calendar month, until and including the day before the fifth
(5th) anniversary of the Effective Date, increasing to five percent (5%) of the Hotel’s Gross Rooms Revenue after such date for the remainder of the
License Term.

  

 Attachment B - 1 

 Additional Requirements/Special Provisions [Paragraph #]: 
  

	 	•	 	 Paragraph 10 – Right of First Offer: deleted and replaced with Paragraph entitled “Notice Concurrent to Offering a Marketed Interest”

  

	 	•	 	 All references to “Opening Date” in this Agreement are hereby amended to read “Effective Date” 

 Your Ownership Structure: 
 See Attached Schedule 1

 Ownership Structure of Affiliate Fee Owner or Lessor/Sublessor of the Hotel or Hotel Site: 
 See Attached Schedule 2 
 IN WITNESS WHEREOF, the parties have
executed this Agreement, which has an effective date as of the date set forth in this Rider (the “Effective Date”). 
  

									
	 LICENSEE:
	 		 	LICENSOR:
			
	 APPLE EIGHT HOSPITALITY MANAGEMENT, INC.,
 a Virginia corporation
	 		 	 HAMPTON INNS FRANCHISE LLC
 a
Delaware limited liability company

					
	 By:
	 	 /s/ Justin Knight
	 		 	By:	 	  

	 Name:
	 	Justin Knight	 		 	Name:	 	  

	 Title:
	 	  
	 		 	Title:	 	  

			
	 Executed on:
                                        
                            
	 		 	

  

 Attachment B - 2 

 SCHEDULE 1 
  

					
	Your Ownership Structure:	 	APPLE HOSPITALITY MANAGEMENT, INC.,	  	100%
		 	a Virginia corporation	  	

  

							
	 Name (Shareholder, Partner, Member, and Manager)
	 	 Nature of Ownership Interest
	  	% Interest
	 Apple Eight Hospitality, Inc.
 a Virginia corporation
	 		 	Sole Shareholder	  	100%
				
	 Apple REIT Eight, Inc.
             (REIT)
	 	100%
	 		  	

  

 Attachment B - 3 

 SCHEDULE 2 
 Ownership Structure of Affiliate Fee Owner or Lessor/Sublessor of the Hotel or Hotel Site: 
 Apple Eight Hospitality Ownership, Inc., 
 a Virginia corporation 
  

							
	 Name (Shareholder, Partner, Member, and Manager)
	 	 	  	 Nature of Ownership Interest
	  	% Interest
	 Apple Eight Hospitality, Inc.
 a Virginia corporation
	 		  	Sole Shareholder	  	100%
				
	 Apple REIT Eight, Inc.,
             (REIT)
	 		  		  	

  

 Attachment B - 4 

 EXHIBIT A 
 PRODUCT IMPROVEMENT PLAN 
  

	
	 Hampton Inn
 BOWLING GREEN, KY

 Conducted On: 08/21/2007 by Barry Cunningham 
 THE IMPROVEMENTS IDENTIFIED IN THIS REPORT ARE BASED ON CONDITIONS EXISTING ON THE ABOVE DATE. PROPERTY TRANSACTIONS OCCURRING AFTER 180 DAYS WILL REQUIRE AN
UPDATED REPORT. ANY WAIVERS AND/OR VARIANCES ISSUED ARE CANCELLED AND NO LONGER EFFECTIVE AT TIME OF SALE, CLOSING, OR ANY OTHER AMENDMENT TO THE ORIGINAL FRANCHISE AGREEMENT. HILTON HOTELS DOES NOT AND CANNOT WARRANT CONFORMANCE WITH INTERPRETATION
OF THE AMERICANS WITH DISABILITIES ACT (“ADA”) AND THE ADA ACCESSIBILITY GUIDELINES. OWNERSHIP IS RESPONSIBLE FOR COMPLIANCE WITH APPLICABLE PROVISIONS OF THE ADA. APPROPRIATE COUNSEL TO ENSURE COMPLIANCE IS URGED. 
 BRAND STANDARDS 
  

									
	 	  	 Start Date
	  	 Scope of work
	  	 Finish
 Date
	  	 Status

		  		  	MAJOR RULES	  		  	
	1	  	 FLA Effective
 Date
	  	Technology – Hilton Hotels Corporation is implementing a new national standard for High Speed Internet Access that establishes a single company-wide solution. This hotel is required to
implement this new HSIA solution by 12/31/07. An upgrade (or replacement) of hardware, cabling and bandwidth may be required to meet the new standard.	  	12/31/2007	  	BRAND REQUIREMENT
					
	2	  	FLA Effective Date	  	Exterior - Install DMX Audio in the canopy (standard 304.00E).	  	180 Days	  	BRAND REQUIREMENT
				
		  	SUPPORT RULES	  		  	
	3	  	FLA Effective Date	  	Building - Replace all round door knobs. Install lever-style handles. This requirement applies in all guest rooms, public areas and the back of the house.	  	180 Days	  	BRAND REQUIREMENT
					
	4	  	FLA Effective Date	  	Design approval must be obtained from Hilton Hotels Corporation within 90 days of active start date of this Product Improvement Plan.	  	90 Days	  	BRAND REQUIREMENT

 COMMERCIAL FACILITIES 
  

									
	 	  	 Start Date
	  	 Scope of work
	  	 Finish
Date
	  	 Status

		  		  	BREAKFAST BAR/LOBBY AREA	  		  	
	5	  	 FLA Effective
 Date

	  	Lobby/Breakfast Area – Renovate the lobby and breakfast area to meet the new Hampton Inn brand initiative. This “Hampton Zoned Lobby” will require extensive remodeling and
replacement of furniture, fixtures, finishes and other equipment not found in the current standards. This includes seating, lighting, flooring, walls, service spaces and all other areas of the general lobby space. Do not start renovations until you
have received the specifications and plans for this initiative.	  	180 Days	  	BRAND REQUIREMENT

  

 Exhibit A - 1 

									
	CORRIDORS/ELEVATORS/STAIRWELLS
	6	  	 FLA Effective
 Date
	  	Corridors - Replace the 1st floor corridor carpet, carpet pad and carpet base. Carpet must match on all floors. If matching carpet cannot be located, replace carpet on all floors.	  	180 Days	  	CONDITION
					
	7	  	 FLA Effective
 Date
	  	Corridors - Install soffit(s) finished to match wall/ceiling finishes to conceal all exposed wiring. Exposed conduit, wire molding, or wire is not acceptable.	  	180 Days	  	CONDITION
	
	ENTRANCE/REGISTRATION AREA/FRONT DESK
	8	  	FLA Effective Date	  	Registration Desk – Renovate the front desk to meet the new Hampton Inn brand initiative as noted in the breakfast area/lobby section. Install built-in registration access at the front
desk to meet ADA requirements.	  	180 Days	  	BRAND REQUIREMENT
	
	MEETING ROOMS AND BOARDROOM
	9	  	FLA Effective Date	  	Meeting Room - Replace the built-in counters. Built-in counters must have quartz or granite tops (standard 307.02F).	  	180 Days	  	BRAND REQUIREMENT
	
	PUBLIC RESTROOMS
	10	  	FLA Effective Date	  	Public Restrooms – Replace the vanities. Built-in vanities must have a natural granite top with matching back splash, side splash and skirt compliant with ADA.	  	180 Days	  	BRAND REQUIREMENT
					
	11	  	FLA Effective Date	  	Public Restrooms – Install a decorative framed mirror above all vanities. The frame width must be 2” minimum.	  	180 Days	  	BRAND REQUIREMENT
					
	12	  	FLA Effective Date	  	Public Restrooms - Remove the wall tile and install vinyl wall covering.	  	180 Days	  	BRAND REQUIREMENT
					
	13	  	FLA Effective Date	  	Public Restrooms – Replace the floor tile. Install 12” (minimum) ceramic or porcelain tile with matching base.	  	180 Days	  	BRAND REQUIREMENT
	
	RECREATION FACILITIES
	14	  	FLA Effective Date	  	Pool - Replace the pool furniture.	  	180 Days	  	CONDITION
					
	15	  	FLA Effective Date	  	Pool – Remove all stencils from the pool deck. Install “No Diving” and “depth” markers in recessed tile with 4” lettering (see standard 308.02C).	  	180 Days	  	BRAND REQUIREMENT

 GUEST ROOMS 
  

									
	 	  	 Start Date
	  	 Scope of work
	  	 Finish
Date
	  	 Status

	BATHROOMS
	16	  	 FLA Effective
 Date
	  	Guest Bathrooms – Install a surface/ceiling mounted light fixture with two PLI8 watt fluorescent lamps near the shower, in addition to the light over the vanity.	  	9 Months	  	BRAND REQUIREMENT
					
	17	  	FLA Effective Date	  	Guest Bathrooms – Remove the bathroom lighting above the vanity. Install a decorative, fluorescent light fixture above the vanity mirror. Repair the ceiling to a “like-new”
condition. Submit all plans and specifications to Hilton Hotels Corporation prior to renovation.	  	9 Months	  	BRAND REQUIREMENT
					
	18	  	FLA Effective Date	  	Guest Bathrooms – Remove the towel shelf. Install a wood towel cubbie centered above the toilet. See Hampton Inn standards for specifications.	  	9 Months	  	BRAND REQUIREMENT
	
	BEDROOMS
	19	  	FLA Effective Date	  	Guest Bedrooms – All guestrooms must be renovated using the new Hampton Inn Casegoods Package. Final specifications and plans have not been released. At a minimum, all casegoods must be
replaced. In addition, all items listed in this section must also be replaced as noted. However, the final release of these specifications may require renovations that exceed the minimum requirements listed in this product improvement plan. The
hotel is required to renovate to the specifications listed in the design package. This may also include artwork, lamps, flooring, wall covering and other FF and E. Do not start renovation design until the specifications book for the Hampton Inn
Casegoods Package has been received.	  	9 Months	  	BRAND REQUIREMENT
					
	20	  	FLA Effective Date	  	Guestrooms – Install digital thermostats for all HVAC units.	  	9 Months	  	BRAND REQUIREMENT
					
	21	  	FLA Effective Date	  	Guest Bedrooms - Install an approved auxiliary lock on all connecting doors.	  	9 Months	  	BRAND REQUIREMENT
					
	22	  	FLA Effective Date	  	Guestrooms – Replace all televisions. Install plasma or LCD high-definition commercial televisions (HDTV) in a 16:9 format. The hotel’s MATV system must be able to pass HD content
programming to guest rooms. Televisions must be a minimum of 26” and may not exceed the recommended size of 32”.	  	9 Months	  	BRAND REQUIREMENT

  

 Exhibit A - 2 

 This PIP review is limited to aesthetic and functional layout and design, and certain functional, operational and
quality criteria as specified by Hilton Hotels Corporation. It does not encompass and Hilton Hotels Corporation does not make any representation or warranty as to, nor shall be responsible for, the architectural, structural, mechanical, or
electrical adequacy or other compliance with applicable government or other legal requirements. Compliance with Hilton Hotels Corporation fire safety and security equipment standards and all applicable local, state and federal building codes are
required. Any omission in this PIP report does not constitute a waiver of such requirements and does not release the licensee’s responsibility to conform to Hilton Hotels Corporation standards. 
  

 Exhibit A - 3

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