Document:

Exhibit 10.8

 Exhibit 10.8 
 TUCSON, AZ (HGI) 
 HOTEL LEASE AGREEMENT 
 EFFECTIVE JULY 31, 2008 
 BETWEEN

 APPLE NINE HOSPITALITY OWNERSHIP, INC. 
 A VIRGINIA CORPORATION 
 AS LESSOR 
 AND 
 APPLE NINE HOSPITALITY MANAGEMENT, INC. 
 A VIRGINIA CORPORATION 
 AS LESSEE

 TABLE OF CONTENTS 
  
  

					
	 	 	 	  	PAGE
	 ARTICLE 1 LEASED PROPERTY; OTHER DEFINITIONS
	  	1
	   1.1.
	 	Leased Property	  	1
	   1.2.
	 	Definitions.	  	2
	 ARTICLE 2 TERM; TERMINATION
	  	14
	   2.1.
	 	Term.	  	14
	   2.2.
	 	Lessor’s Option to Terminate Lease.	  	15
	   2.3.
	 	Transition Procedures.	  	15
	   2.4.
	 	Holding Over.	  	17
	 ARTICLE 3 RENT; RENT ADJUSTMENTS
	  	18
	   3.1.
	 	Rent.	  	18
	   3.2.
	 	Confirmation of Percentage Rent.	  	21
	   3.3.
	 	Additional Charges.	  	21
	   3.4.
	 	Net Lease; No Termination, Abatement, Etc.	  	22
	   3.5.
	 	Material Changes in Economic Climate.	  	23
	   3.6.
	 	Rent Adjustment: Basic Assumptions Incorrect.	  	24
	 ARTICLE 4 ANNUAL BUDGETS; BOOKS AND RECORDS
	  	25
	   4.1.
	 	Annual Budget.	  	25
	   4.2.
	 	Books and Records.	  	25
	 ARTICLE 5 IMPOSITIONS; HOTEL COSTS
	  	26
	   5.1.
	 	Payment of Impositions.	  	26
	   5.2.
	 	Notice of Impositions.	  	27
	   5.3.
	 	Adjustment of Impositions.	  	27
	   5.4.
	 	Utility Charges.	  	27
	   5.5.
	 	Insurance Premiums.	  	27
	   5.6.
	 	Franchise Fees.	  	27
	   5.7.
	 	Ground Rent.	  	27
	 ARTICLE 6 LEASED PROPERTY; LESSEE’S PERSONAL PROPERTY
	  	27
	   6.1.
	 	Ownership of the Leased Property.	  	27
	   6.2.
	 	Lessee’s Personal Property.	  	27
	   6.3.
	 	Lessor’s Lien.	  	28
	   6.4.
	 	Lessor’s Option to Purchase Assets of Lessee.	  	28
	 ARTICLE 7 CONDITION AND USE OF LEASED PROPERTY
	  	29
	   7.1.
	 	Condition of the Leased Property.	  	29
	   7.2.
	 	Use of the Leased Property.	  	29
	   7.3.
	 	Lessor to Grant Easements, Etc.	  	30
	 ARTICLE 8 LESSEE’S COMPLIANCE WITH LAW; ENVIRONMENTAL COVENANTS
	  	30
	   8.1.
	 	Compliance with Legal and Insurance Requirements, Etc.	  	30
	   8.2.
	 	Legal Requirement Covenants.	  	31
	   8.3.
	 	Environmental Covenants.	  	32
	 ARTICLE 9 MAINTENANCE AND REPAIRS; ENCROACHMENTS AND RESTRICTIONS
	  	34
	   9.1.
	 	Maintenance and Repairs.	  	34
	   9.2.
	 	Encroachments, Restrictions, Etc.	  	35

  

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	ARTICLE 10 ALTERATIONS AND IMPROVEMENTS; FF&E RESERVE	  	36
	 10.1.
	 	Alterations.	  	36
	 10.2.
	 	Salvage.	  	36
	 10.3.
	 	Joint Use Agreements.	  	36
	 10.4.
	 	[Reserved].	  	36
	 10.5.
	 	Furniture, Fixture and Equipment Allowance.	  	36
	 ARTICLE 11 COMPLIANCE WITH FRANCHISE
	  	37
	 11.1.
	 	Compliance with Franchise Agreement and Management Agreement.	  	37
	 ARTICLE 12 PERMITTED LIENS AND CONTESTS
	  	37
	 12.1.
	 	Liens.	  	37
	 12.2.
	 	Permitted Contests.	  	38
	 ARTICLE 13 INSURANCE REQUIREMENTS
	  	39
	 13.1.
	 	General Insurance Requirements.	  	39
	 13.2.
	 	Replacement Cost.	  	40
	 13.3.
	 	Waiver of Subrogation.	  	40
	 13.4.
	 	Form Satisfactory, Etc.	  	40
	 13.5.
	 	Increase in Limits.	  	41
	 13.6.
	 	Blanket Policy.	  	41
	 13.7.
	 	No Separate Insurance.	  	41
	 13.8.
	 	Reports On Insurance Claims.	  	42
	 ARTICLE 14 CASUALTY INSURANCE PROCEEDS; RECONSTRUCTION
	  	42
	 14.1.
	 	Insurance Proceeds.	  	42
	 14.2.
	 	Reconstruction in the Event of Damage or Destruction Covered by Insurance.	  	42
	 14.3.
	 	Reconstruction in the Event of Damage or Destruction Not Covered by Insurance.	  	43
	 14.4.
	 	Lessee’s Property.	  	44
	 14.5.
	 	Abatement of Rent.	  	44
	 14.6.
	 	Damage Near End of Term.	  	44
	 14.7.
	 	Waiver.	  	44
	 ARTICLE 15 CONDEMNATION; AWARD ALLOCATION
	  	44
	 15.1.
	 	Definitions.	  	44
	 15.2.
	 	Parties’ Rights and Obligations.	  	45
	 15.3.
	 	Total Taking	  	45
	 15.4.
	 	Allocation of Award.	  	45
	 15.5.
	 	Partial Taking.	  	45
	 15.6.
	 	Temporary Taking.	  	45
	 ARTICLE 16 DEFAULT BY LESSEE; LESSOR’S REMEDIES
	  	46
	 16.1.
	 	Events of Default.	  	46
	 16.2.
	 	Surrender.	  	47
	 16.3.
	 	Damages.	  	48
	 16.4.
	 	Waiver.	  	49
	 16.5.
	 	Application of Funds.	  	49
	 16.6.
	 	Lessor’s Right to Cure Lessee’s Default.	  	49
	 ARTICLE 17 DEFAULT BY LESSOR; LESSEE’S REMEDIES
	  	49
	 17.1.
	 	Breach by Lessor.	  	49
	 17.2.
	 	Lessee’s Right to Cure.	  	50
	 17.3.
	 	Provisions Relating to Purchase of the Leased Property by Lessee.	  	50

  

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	 ARTICLE 18 INDEMNIFICATION
	  	51
	 18.1.
	 	Indemnification.	  	51
	 ARTICLE 19 REIT REQUIREMENTS AND RESTRICTIONS
	  	52
	 19.1.
	 	Personal Property Limitation.	  	52
	 19.2.
	 	Sublease Rent Limitation.	  	52
	 19.3.
	 	Sublease Tenant Limitation.	  	52
	 19.4.
	 	Lessee Ownership Limitations.	  	52
	 19.5.
	 	Lessee Officer and Employee Limitation.	  	52
	 19.6.
	 	Payments to Affiliates of Lessee.	  	53
	 ARTICLE 20 SUBLETTING AND ASSIGNMENT
	  	53
	 20.1.
	 	Subletting and Assignment.	  	53
	 20.2.
	 	Attornment.	  	53
	 20.3.
	 	Conveyance by Lessor.	  	54
	 ARTICLE 21 QUIET ENJOYMENT; RISK OF LOSS
	  	54
	 21.1.
	 	Quiet Enjoyment.	  	54
	 21.2.
	 	Risk of Loss.	  	54
	 ARTICLE 22 LESSOR MORTGAGES; SUBORDINATION OF LEASE
	  	54
	 22.1.
	 	Lessor May Grant Liens.	  	54
	 22.2.
	 	Subordination of Lease.	  	55
	 ARTICLE 23 ESTOPPEL CERTIFICATES; FINANCIAL STATEMENTS; INSPECTION RIGHTS
	  	55
	 23.1.
	 	Estoppel Certificates; Financial Statements.	  	55
	 23.2.
	 	Lessor’s Right to Inspect.	  	56
	 ARTICLE 24 APPRAISERS
	  	56
	 24.1.
	 	Appraisers.	  	56
	 ARTICLE 25 ARBITRATION AND DISPUTE RESOLUTION PROCEDURES
	  	57
	 25.1.
	 	Arbitration.	  	57
	 25.2.
	 	Alternative Arbitration.	  	57
	 25.3.
	 	Arbitration Procedure.	  	58
	 ARTICLE 26 NOTICES
	  	58
	 26.1.
	 	Notices.	  	58
	 ARTICLE 27 MISCELLANEOUS
	  	58
	 27.1.
	 	No Waiver.	  	58
	 27.2.
	 	Remedies Cumulative.	  	59
	 27.3.
	 	Waiver of Trial by Jury.	  	59
	 27.4.
	 	Acceptance of Surrender.	  	59
	 27.5.
	 	No Merger of Title.	  	59
	 27.6.
	 	Waiver of Presentment, Etc.	  	59
	 27.7.
	 	Action for Damages.	  	59
	 27.8.
	 	Lease Assumption in Bankruptcy Proceeding.	  	59
	 27.9.
	 	Enforceability.	  	60
	 27.10.
	 	Memorandum of Lease.	  	60

  

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	 Exhibit A – Legal Description

	 Exhibit B – Space Leases

	 Schedule 2.1 – Commencement Dates

	 Schedule 3.1(a) – Base Rents

	 Schedule 3.1(b) – Suite Revenue Breakpoint

  

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 HOTEL LEASE AGREEMENT 
 THIS HOTEL LEASE AGREEMENT (hereinafter called “Lease”), effective as of the
31st day of July, 2008, by and between Apple Nine Hospitality Ownership, Inc., a Virginia corporation (hereinafter called “Lessor”), and
Apple Nine Hospitality Management, Inc., a Virginia corporation (hereinafter called “Lessee”), provides as follows: 
 AGREEMENT: 
 Lessor, for and in consideration of the payment of rent by Lessee to Lessor, the covenants and
agreements to be performed by Lessee, and upon the terms and conditions hereinafter stated, does hereby rent and lease unto Lessee, and Lessee does hereby rent and lease from Lessor, the Leased Property. 
 ARTICLE 1 
 LEASED
PROPERTY; OTHER DEFINITIONS 
 1.1. Leased Property. The Leased Property shall mean and is comprised of Lessor’s interest in
the following: 
 (a) the land described in Exhibit A attached hereto and by reference incorporated herein (the “Land”);

 (b) all buildings, structures and other improvements of every kind including, but not limited to, alleyways and connecting tunnels,
sidewalks, utility pipes, conduits and lines (on-site and offsite), parking areas and roadways appurtenant to such buildings and structures presently situated upon the Land (collectively, the “Leased Improvements”); 
 (c) all easements, rights and appurtenances relating to the Land and the Leased Improvements; 
 (d) all equipment, machinery, fixtures, and other items of property required for or incidental to the use of the Leased Improvements as a hotel,
including all components thereof, now and hereafter permanently affixed to or incorporated into the Leased Improvements, including, without limitation, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating,
refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems and apparatus, sprinkler systems and fire and theft protection equipment, all of which to the greatest extent permitted by law are
hereby deemed by the parties hereto to constitute real estate, together with all replacements, modifications, alterations and additions thereto (collectively, the “Fixtures”); 
 (e) all furniture and furnishings and all other items of personal property (excluding Inventory and personal property owned by Lessee) located on, and
used in connection with, the operation of the Leased Improvements as a hotel, together with all replacements, modifications, alterations and additions thereto; and 

 LESS AND EXCEPT all portions of the foregoing that are leased under Space Leases and all right, title and
interest of Lessor under the Space Leases (including any rents, security deposits or collateral held by or owing to Lessor pursuant thereto). 
 THE LEASED
PROPERTY IS DEMISED IN ITS PRESENT CONDITION WITHOUT REPRESENTATION OR WARRANTY (EXPRESSED OR IMPLIED) BY LESSOR AND SUBJECT TO THE RIGHTS OF PARTIES IN POSSESSION, AND TO THE EXISTING STATE OF TITLE INCLUDING ALL COVENANTS, CONDITIONS,
RESTRICTIONS, EASEMENTS AND OTHER MATTERS OF RECORD INCLUDING ALL APPLICABLE LEGAL REQUIREMENTS AND OTHER MATTERS WHICH WOULD BE DISCLOSED BY AN INSPECTION OF THE LEASED PROPERTY OR BY AN ACCURATE SURVEY THEREOF. 
 1.2. Definitions. For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular, (b) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles as are at the time applicable, (c) all references in this Lease to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other
subdivisions of this Lease and (d) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or other subdivision:

 Additional Charges: As defined in Section 3.3. 
 Affiliate: As used in this Lease the term “Affiliate” of a Person shall mean (a) any Person that, directly or indirectly, controls or is controlled by or is under common control with such Person,
(b) any other Person that owns, beneficially, directly or indirectly, ten percent (10%) or more of the outstanding capital stock, shares or equity interests of such Person, or (c) any officer, director, employee, partner, manager or
trustee of such Person or any Person controlling, controlled by or under common control with such Person or any Person that owns, beneficially, directly or indirectly, ten percent (10%) or more of the outstanding capital stock, shares or equity
interests of such Person (excluding trustees and Persons serving in similar capacities who are not otherwise an Affiliate of such Person). For the purposes of this definition, “control” (including the correlative meanings of the terms
“controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person,
through the ownership of voting securities, partnership interests or other equity interests. 
 Annual Budget: As used in this Lease,
the term “Annual Budget” shall mean an operating and capital budget prepared by Lessee and delivered to Lessor in accordance with Section 4.1. 
 Annual Revenues Computation: As defined in Subsection 3.1(b). 
 Award: As defined in
Subsection 15.1(a). 
  

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 Base Rate: The rate of interest announced publicly by Citibank, N.A., in New York, New York, from
time to time, as such bank’s base rate. If no such rate is announced or if such rate becomes discontinued, then such other rate as Lessor may reasonably designate. 
 Base Rent: As defined in Subsection 3.1(a). 
 Business Day: Each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which national banks in the City of New York, New York, or in the municipality wherein the Leased Property is located are closed. 
 CERCLA: The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
 Change of Control: The sale, conveyance, assignment, encumbering, pledging, hypothecation, granting a security interest in, granting of options with respect to, or other disposition of (directly or indirectly, voluntarily or
involuntarily, by operation of law or otherwise, and whether or not for consideration) of any class stock or other equity interests in a Person (other than among existing holders of interests in such Person on the Commencement Date and/or family
members of such holders and/or trusts for the benefit of any of the foregoing) that, upon a transfer of any portion thereof, will create in the transferee thereof, directly or indirectly, a majority of any class of stock or other equity interests of
such Person. 
 Claims: As defined in Section 12.2. 
 COBRA: As defined in Subsection 8.2(b). 
 Code: The Internal Revenue Code of 1986, as amended. 
 Commencement Date: As defined in Section 2.1. 

Competitive Set: As defined in the STR Reports. Lessor and Lessee shall work in good faith to determine any additions and deletions to the
Hotel’s Competitive Set, on or before November 15th of each year, with such changes to be applicable for the following Fiscal Year. In the event Lessor and Lessee cannot agree to the Hotel’s Competitive Set by November 15th of
any year, such unagreed items shall be determined by Smith Travel Research (or, if it refuses or is unable to do so, by arbitration pursuant to Section 25.2). The costs of resetting the Hotel’s Competitive Set shall be borne equally by the
parties. 
 Comparison Month: As defined in Subsection 3.1(d). 
 Condemnation, Condemnor: As defined in Section 15.1 
 Consolidated Financials: For any fiscal year or other accounting period for Lessee and its consolidated subsidiaries, if any, statements of earnings and retained earnings and of changes in financial position
for such period and for the period from the beginning of the respective fiscal year to the end of such period and the related balance sheet as at the end of such period, 

  

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together with the notes thereto, all in reasonable detail and setting forth in comparative form the corresponding figures for the corresponding period in the
preceding fiscal year, and prepared in accordance with generally accepted accounting principles and audited by independent certified public accountants acceptable to Lessor in its sole discretion. 
 Consumer Price Index: The “U.S. City Average, All Items” Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the United States Department of Labor (Base: 1982-1984=100), or any successor index thereto. If the Consumer Price Index is hereafter converted to a different standard reference base or otherwise revised, any determination hereunder
that uses the Consumer Price Index shall be made with the use of such conversion factor, formula or table for converting the Consumer Price Index as may be published by the Bureau of Labor Statistics, or, if the Bureau shall no longer publish the
same, then with the use of such conversion factor, formula or table as may be published by Prentice Hall, Inc., or, failing such publication, by any other nationally recognized publisher of similar statistical information. 
 Date of Taking: As defined in Subsection 15.1(d). 
 Encumbrance: As defined in Section 22.1. 
 Environmental Audit: As defined in Subsection
8.3(b). 
 Environmental Authority: Any department, agency or other body or component of any Government that exercises any form of
jurisdiction or authority under any Environmental Law. 
 Environmental Authorization: Any license, permit, order, approval, consent,
notice, registration, filing or other form of permission or authorization required under any Environmental Law. 
 Environmental Laws:
All applicable federal, state, local and foreign laws and regulations relating to pollution of the environment (including without limitation, ambient air, surface water, ground water, land surface or subsurface strata), including without limitation
laws and regulations relating to emissions, discharges, Releases or threatened Releases of Hazardous Materials or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials. Environmental Laws include but are not limited to CERCLA, FIFRA, RCRA, SARA and TSCA. 
 Environmental Liabilities: Any and
all obligations to pay the amount of any judgment or settlement, the cost of complying with any settlement, judgment or order for injunctive or other equitable relief, the cost of compliance or corrective action in response to any notice, demand or
request from an Environmental Authority, the amount of any civil penalty or criminal fine, and any court costs and reasonable amounts for attorney’s fees, fees for witnesses and experts, and costs of investigation and preparation for defense of
any claim or any Proceeding, regardless of whether such Proceeding is threatened, pending or completed, that may be or have been asserted against or imposed upon Lessor, Lessee, any Predecessor, the Leased Property or any property used therein and
arising out of: 
 (a) Failure of Lessee, Lessor, any Predecessor or the Leased Property to comply at any time with all Environmental Laws;

  

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 (b) Presence of any Hazardous Materials on, in, under, at or in any way affecting the Leased Property;

 (c) A Release at any time of any Hazardous Materials on, in, at, under or in any way affecting the Leased Property; 
 (d) Identification of Lessee, Lessor or any Predecessor as a potentially responsible party under CERCLA or under any Environmental Law similar to CERCLA;

 (e) Presence at any time of any above-ground and/or underground storage tanks, as defined in RCRA or in any applicable Environmental Law
on, in, at or under the Leased Property or any adjacent site or facility; or 
 (f) Any and all claims for injury or damage to Persons or
property arising out of exposure to Hazardous Materials originating or located at the Leased Property, or resulting from operation thereof or any adjoining property. 
 Event of Default: As defined in Section 16.1. 
 Fair Market Rental: The fair market
rental of the Leased Property means the rental which a willing tenant not compelled to rent would pay a willing landlord not compelled to lease for the use and occupancy of such Leased Property pursuant to the Lease for the term in question,
(a) assuming that Lessee is not in default thereunder and (b) determined in accordance with the appraisal procedures set forth in Article 24 or in such other manner as shall be mutually acceptable to Lessor and Lessee. 
 Fair Market Value: The fair market value of the Leased Property means an amount equal to the price that a willing buyer not compelled to buy would
pay a willing seller not compelled to sell for such Leased Property, (a) assuming the same is unencumbered by this Lease, (b) determined in accordance with the appraisal procedures set forth in Article 24 or in such other manner as shall
be mutually acceptable to Lessor and Lessee, (c) assuming that such seller must pay customary closing costs and title premiums, and (d) taking into account the positive or negative effect on the value of the Leased Property attributable to
the interest rate, amortization schedule, maturity date, prepayment penalty and other terms and conditions of any encumbrance that is assumed by the transferee. In addition, in determining the Fair Market Value with respect to damaged or destroyed
Leased Property such value shall be determined as if such Leased Property had not been so damaged or destroyed. 
 FIFRA: The Federal
Insecticide, Fungicide, and Rodenticide Act, as amended. 
 Fiscal Year: The twelve (12) month period from January 1 to
December 31, or any shorter period at the beginning or end of the Term. 
  

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 Fixtures: As defined in Section 1.1. 
 Force Majeure: An Unavoidable Occurrence, generally affecting travel and/or the hotel or lodging business in the market and/or submarket in which
the Hotel is located. 
 Franchise Agreement: Any franchise agreement or license agreement with a franchisor (such as Hilton Garden
Inn) under which the Hotel is operated. 
 Furniture and Equipment: For purposes of this Lease, the terms “furniture and
equipment” shall mean collectively all furniture, furnishings, wall coverings, fixtures and hotel equipment and systems located at, or used in connection with, the Hotel, together with all replacements therefor and additions thereto, including,
without limitation, (i) all equipment and systems required for the operation of kitchens and bars, laundry and dry cleaning facilities, (ii) office equipment, (iii) material handling equipment, cleaning and engineering equipment,
(iv) telephone and computerized accounting systems, and (v) vehicles. 
 Government: The United States of America, any
state, district or territory thereof, any foreign nation, any state, district, department, territory or other political division thereof, or any agency or political subdivision of any of the foregoing. 
 Gross Operating Expenses: The term “Gross Operating Expenses” shall include (i) all costs and expenses of operating the Hotel
included within the meaning of the term “Total Costs and Expenses” contained in the Uniform System and, (ii) without duplication, the following: all salaries and employee expense and payroll taxes (including salaries, wages, bonuses
and other compensation of all employees of the Hotel, and benefits including life, medical and disability insurance and retirement benefits), expenditures described in Section 9.1, operational supplies, utilities, insurance to be provided by
Lessee under the terms of this Lease, governmental fees and assessments, common area maintenance costs and other common area fees and assessments, food, beverages, laundry service expense, the cost of Inventories, license fees, advertising,
marketing, reservation systems and any and all other operating expenses as are reasonably necessary for the proper and efficient operation of the Hotel and the Leased Property incurred by Lessee in accordance with the provisions hereof (excluding,
however, (i) federal, state and municipal excise, sales and use taxes collected directly from patrons and guests or as a part of the sales price of any goods, services or displays, such as gross receipts, admissions, cabaret or similar or
equivalent taxes paid over to federal, state or municipal governments, (ii) the cost of insurance to be provided under Article 13, (iii) expenditures by Lessor pursuant to Article 13 and (iv) payments on any Mortgage or other mortgage
or security instrument on the Hotel); all determined in accordance with generally accepted accounting principles. No part of Lessee’s central office overhead or general or administrative expense (as opposed to that of the Hotel), and no
operating expenses paid or payable by tenants under Space Leases, shall be deemed to be a part of Gross Operating Expenses, as herein provided. Reasonable out-of-pocket expenses of Lessee incurred for the account of or in connection with the Hotel
operations, including but not limited to postage, telephone charges and reasonable travel expenses of employees, officers and other representatives and consultants of Lessee and its Affiliates, shall be deemed to be a part of Gross Operating
Expenses and such Persons shall be afforded reasonable accommodations, food, beverages, laundry, valet and other such services by and at the Hotel without charge to such Persons or Lessee. 
  

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 Gross Operating Profit: For any Fiscal Year, the excess of Gross Revenues for such Fiscal Year
over Gross Operating Expenses for such Fiscal Year. 
 Gross Revenues: All revenues, receipts, and income of any kind derived directly
or indirectly by Lessee from or in connection with the Hotel (including rentals or other payments from tenants, lessees, licensees or concessionaires but not including their gross receipts receipts and not including rentals or other payments under
Space Leases) whether on a cash basis or credit, paid or collected, determined in accordance with generally accepted accounting principles, excluding, however: (i) funds furnished by Lessor, (ii) federal, state and municipal excise, sales,
and use taxes collected directly from patrons and guests or as a part of the sales price of any goods, services or displays, such as gross receipts, admissions, cabaret or similar or equivalent taxes and paid over to federal, state or municipal
governments, (iii) the amount of all credits, rebates or refunds to customers, guests or patrons, and all service charges, finance charges, interest and discounts attributable to charge accounts and credit cards, to the extent the same are paid
to Lessee by its customers, guests or patrons, or to the extent the same are paid for by Lessee to, or charged to Lessee by, credit card companies, (iv) gratuities or service charges actually paid to employees, (v) proceeds of insurance
and condemnation, (vi) proceeds from sales other than sales in the ordinary course of business, (vii) all loan proceeds from financing or refinancings of the Hotel or interests therein or components thereof, (viii) judgments and
awards, except any portion thereof arising from normal business operations of the Hotel, and (ix) items constituting “allowances” under the Uniform System. 
 Hazardous Materials: All chemicals, pollutants, contaminants, wastes and toxic substances, including without limitation: 
 (a) Solid or hazardous waste, as defined in RCRA or any other Environmental Law; 
 (b) Hazardous substances,
as defined in CERCLA or any other Environmental Law; 
 (c) Toxic substances, as defined in TSCA or any other Environmental Law; 

(d) Insecticides, fungicides, or rodenticides, as defined in FIFRA or any other Environmental Law; and 
 (e) Gasoline or any other petroleum product or byproduct, polychlorinated biphenyl, asbestos and urea formaldehyde. 
 Hotel: The hotel and/or other facility offering lodging and other services or amenities being operated or proposed to be operated on the Leased
Property. 
  

 7 

 Hotel Market Decline: A period of six (6) consecutive calendar months during which there is
(i) a twenty percent (20%) decline in average hotel occupancy for the Hotel from the average hotel occupancy levels for same period during the prior calendar year and (ii) a twenty percent (20%) decline in average hotel occupancy
for the Hotel’s Competitive Set from the average hotel occupancy levels for the same period during the prior calendar year, as published in the applicable STR Reports. 
 Impositions: Collectively, all taxes (including, without limitation, all ad valorem, sales and use, single business, gross receipts, transaction,
privilege, rent or similar taxes as the same relate to or are imposed upon Lessee or its business conducted upon the Leased Property), assessments (including, without limitation, all assessments for public improvements or benefit, whether or not
commenced or completed prior to the date hereof and whether or not to be completed within the Term), ground rents, water, sewer or other rents and charges, excises, tax inspection, authorization and similar fees and all other governmental charges,
in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Leased Property or the business conducted thereon by Lessee (including all interest and penalties thereon caused by
any failure in payment by Lessee), which at any time prior to, during or with respect to the Term hereof may be assessed or imposed on or with respect to or be a lien upon (a) Lessor’s interest in the Leased Property, (b) the Leased
Property, or any part thereof or any rent therefrom or any estate, right, title or interest therein, or (c) any occupancy, operation, use or possession of, or sales from, or activity conducted on or in connection with the Leased Property, or
the leasing or use of the Leased Property or any part thereof by Lessee. Nothing contained in this definition of Impositions shall be construed to require Lessee to pay (1) any tax based on net income (whether denominated as a franchise or
capital stock or other tax) imposed on Lessor or any other Person, or (2) any net revenue tax of Lessor or any other Person, or (3) any tax imposed with respect to the sale, exchange or other disposition by Lessor of any Leased Property or
the proceeds thereof, or (4) any single business, gross receipts (other than a tax on any rent received by Lessor from Lessee), transaction, privilege or similar taxes as the same relate to or are imposed upon Lessor, except to the extent that
any tax, assessment, tax levy or charge that Lessee is obligated to pay pursuant to the first sentence of this definition and that is in effect at any time during the Term hereof is totally or partially repealed, and a tax, assessment, tax levy or
charge set forth in clause (1) or (2) is levied, assessed or imposed expressly in lieu thereof. 
 Indemnified Party: Either
of a Lessee Indemnified Party or a Lessor Indemnified Party. 
 Indemnifying Party: Any party obligated to indemnify an Indemnified
Party pursuant to Sections 8.3 or 18.1. 
 Insurance Requirements: All terms of any insurance policy required by this Lease and all
requirements of the issuer of any such policy. 
 Inventory: All “Inventories of Merchandise” and “Inventories of
Supplies” as defined in the Uniform System, including without limitation linens, china, silver, glassware and other non-depreciable personal property, and including any property of the type described in Section 1221(1) of the Code.

  

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 Land: As defined in Section 1.1. 
 Lease: This Lease. 
 Leased
Improvements; Leased Property: Each as defined in Section 1.1. 
 Legal Requirements: All federal, state, county, municipal
and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions affecting either the Leased Property or the maintenance, construction, use or alteration thereof (whether by Lessee or otherwise),
whether now in force or hereafter enacted and in force, including (a) all laws, rules or regulations pertaining to the environment, occupational health and safety and public health, safety or welfare, and (b) any laws, rules or regulations
that may (1) require repairs, modifications or alterations in or to the Leased Property or (2) in any way adversely affect the use and enjoyment thereof; and all permits, licenses and authorizations and regulations relating thereto and all
covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Lessee (other than encumbrances created by Lessor without the consent of Lessee), at any time in force affecting the Leased Property.

 Lending Institution: Any insurance company, credit company, federally-insured commercial or savings bank, national banking
association, savings and loan association, employees welfare, pension or retirement fund or system, corporate profit sharing or pension trust, college or university, or real estate investment trust, including any corporation qualified to be treated
for federal tax purposes as a real estate investment trust, such trust having a net worth of at least $10,000,000. 
 Lessee: The
Lessee designated in this Lease and its respective permitted successors and assigns. 
 Lessee Indemnified Party: Lessee, any
Affiliate of Lessee, any other Person against whom any claim for indemnification may be asserted hereunder as a result of a direct or indirect ownership interest (including a stockholder’s or member’s interest) in Lessee, the officers,
directors, stockholders, members, managers, employees, agents and representatives of Lessee, and the respective heirs, personal representatives, successors and assigns of any such officer, director, stockholder, member, manager, employee, agent or
representative. 
 Lessee’s Personal Property: As defined in Section 6.2. 
 Lessor: The Lessor designated in this Lease and its respective successors and assigns. 
 Lessor Indemnified Party: Lessor, any Affiliate of Lessor, any other Person against whom any claim for indemnification may be asserted hereunder
as a result of a direct or indirect ownership interest (including a stockholder’s or partnership interest) in Lessor, the officers, directors, stockholders, members, managers, employees, agents and representatives of the general partner of
Lessor and any partner, agent, or representative of Lessor, and the respective heirs, personal representatives, successors and assigns of any such officer, director, stockholder, partner, member, manager, employee, agent or representative.

  

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 Licenses: As defined in Subsection 2.3(a). 
 Management Agreement: The agreement pursuant to which Manager operates the Hotel. 
 Manager: Texas Western Management Partners, L.P., a Texas limited partnership, or any successor manager that is retained by Lessee to operate the
Hotel pursuant to this Lease and the Franchise Agreement. 
 Minimum Price: The sum of (a) the equity in the Leased Property at
the time of acquisition of the Leased Property by Lessor, plus (b) other capital expenditures on the Leased Property by Lessor after the date hereof (less depreciation and amortization thereof) plus (c) the unpaid principal balance of all
encumbrances against the Leased Property at the time of purchase of the Leased Property by Lessee, less (x) all proceeds received by Lessor from any financing or refinancing of the Leased Property after the date hereof (after payment of any
debt refinanced and net of any costs and expenses incurred in connection with such financing or refinancing, including, without limitation, loan points, commitment fees and commissions and legal fees) and (y) the net amount (after deduction of
all reasonable legal fees and other costs and expenses, including without limitation expert witness fees, incurred by Lessor in connection with obtaining any such proceeds or award) of all insurance proceeds received by Lessor and awards received by
Lessor from any partial Taking of the Leased Property that are not applied to restoration. 
 Mortgage: As defined in
Section 22.2. 
 National Economic Decline: A period of six (6) consecutive calendar months during which there occurs or
continues a ten percent (10%) decline in average hotel occupancy, from average hotel occupancy levels for the same period during the prior calendar year, for all open and operating hotels in the United States as determined from the applicable
STR Reports or, if the STR Reports are not longer published, other reputable national economic data regarding the hospitality industry. 
 Notice: As defined in Article 26. 
 Officer’s Certificate: A certificate of Lessee reasonably acceptable to
Lessor, signed by the chief financial officer or another officer authorized so to sign by the board of directors or other governing body of Lessee, or bylaws or limited liability company agreement of Lessee, or any other Person whose power and
authority to act has been authorized by delegation in writing by any such officer. 
 Optional Termination Date: As defined in
Section 2.2. 
 Overdue Rate: On any date, a rate equal to the Base Rate plus five percent (5%) per annum, but in no event
greater than the maximum rate then permitted under applicable law. 
  

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 Payment Date: Any due date for the payment of any installment of Base Rent. 
 Percentage Rent: As defined in Subsection 3.1(b). 
 Person: Any Government, natural person, corporation, general or limited partnership, limited liability company, stock company or association, joint venture, association, company, trust, bank, trust company,
land trust, business trust, or other entity. 
 Personal Property Taxes: All personal property taxes imposed on the furniture,
furnishings or other items of personal property located on, and used in connection with, the operation of the Leased Improvements as a hotel (other than Inventory and other personal property owned by Lessee), together with all replacement,
modifications, alterations and additions thereto. 
 Predecessor: Any Person whose liabilities arising under any Environmental Law
have or may have been retained or assumed by Lessor or Lessee, either contractually or by operation of law, relating to the Leased Property. 
 Primary Intended Use: As defined in Subsection 7.2(b). 
 Proceeding: Any judicial action, suit or proceeding (whether
civil or criminal), any administrative proceeding (whether formal or informal), any investigation by a governmental authority or entity (including a grand jury), and any arbitration, mediation or other non-judicial process for dispute resolution.

 RCRA: The Resource Conservation and Recovery Act, as amended. 
 Real Estate Taxes: All real estate taxes, including general and special assessments, if any, which are imposed upon the Land, and any improvements
thereon. 
 Regional Market Decline: A period of six (6) consecutive calendar months during which there is a twenty percent
(20%) decline in average hotel occupancy from hotel occupancy levels for the same period during the then prior calendar year, for all open and operating hotels in the Smith Travel Research Region in which the Hotel is located, as determined
from applicable STR Reports or, if the STR Reports are no longer published, other reputable regional economic data regarding the hospitality industry. 
 Rejectable Offer Price: An amount equal to the greater of (a) the Fair Market Value, determined as of the applicable purchase date, or (b) the Minimum Price. 
 Release: A “Release” as defined in CERCLA or in any Environmental Law, unless such Release has been properly authorized and permitted in
writing by all applicable Environmental Authorities or is allowed by such Environmental Law without authorizations or permits. 
 Rent: Collectively, the Base Rent, Percentage Rent and Additional Charges. 
  

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 Repositioning: As defined in Section 3.6. 
 SARA: The Superfund Amendments and Reauthorization Act of 1986, as amended. 
 Solvent: As to any Person, (a) the sum of the assets of such Person exceeds its liabilities and (b) such Person has sufficient capital
with which to conduct its business as presently conducted and as proposed to be conducted. 
 Space Leases: With respect to the Land
and Leased Improvements, all leases, licenses, occupancy agreements, or other agreements, demising space in, providing for the use or occupancy of, or otherwise similarly affecting or relating to the use or occupancy of, the Leased Improvements or
Land, including (without limitation) the leases described in Exhibit B attached hereto, together with all amendments, modifications, renewals and extensions thereof, and all guaranties by third parties of the obligations of the tenants
thereunder, and any successor leases for such space. Space Leases shall specifically exclude hotel room or suite rental to hotel guests or convention or meeting space rental, each conducted in the ordinary course of business in the operation of a
hotel. 
 State: The state or commonwealth in which the Hotel is located. 
 STR Reports: Reports compiled by Smith Travel Research, or its successor, which contain historical supply and demand, occupancy, and average rate
information for the Hotel and hotels with which it competes (or, in the event that Smith Travel Research discontinues providing such information, reports of similar nature compiled by an authority recognized nationally in the hospitality industry).

 Subsidiaries: Persons in which Lessee owns, directly or indirectly, more than fifty percent (50%) of the voting stock or
control, as applicable. 
 Suite Revenue Breakpoint: As defined in Subsection 3.1(b). 
 Suite Revenues: All revenues, receipts, and income of any kind derived directly or indirectly by Lessee from or in connection with (i) the
rental of guest rooms or suites, whether to individuals, groups or transients, at the Hotel and (ii) the Hotel’s meeting rooms, telephones, TV and movie rentals, check room, washroom, laundry, valet, vending machines, and other sources
(other than Space Leases), in each case, whether on a cash basis or credit, paid or collected, determined in accordance with generally accepted accounting principles, but, in each case, excluding the following: 
 (a) The amount of all credits, rebates or refunds to customers, guests or patrons, and all service charges, finance charges, interest and discounts
attributable to charge accounts and credit cards, to the extent the same are paid to Lessee by its customers, guests or patrons, or to the extent the same are paid for by Lessee to, or charged to Lessee by, credit card companies; 
  

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 (b) All sales taxes or any other taxes imposed on the rental of such guest rooms or suites or imposed in
connection with the Hotel’s meeting rooms, telephones, TV and movie rentals, check room, washroom, laundry, valet, vending machines, and other sources of revenue; 
 (c) Gratuities or service charges actually paid to employees; and 
 (d) Proceeds of business interruption
and other insurance. 
 Taking: A taking or voluntary conveyance during the Term hereof of all or part of the Leased Property, or any
interest therein or right accruing thereto or use thereof, as the result of, or in settlement of, any Condemnation or other eminent domain Proceeding affecting the Leased Property whether or not the same shall have actually been commenced.

 Term: As defined in Section 2.1. 
 TSCA: The Toxic Substances Control Act, as amended. 
 Unavoidable Delays: Delays due to
strikes, lock-outs, labor unrest, inability to procure materials, power failure, acts of God, governmental restrictions, enemy action, civil commotion, fire, unavoidable casualty or other causes beyond the control of the party responsible for
performing an obligation hereunder, provided that lack of funds shall not be deemed a cause beyond the control of either party hereto unless such lack of funds is caused by the failure of the other party hereto to perform any obligations of such
party under this Lease or any guaranty of this Lease. 
 Unavoidable Occurrence. The occurrence of strikes, lockouts, labor unrest,
gasoline and other energy shortages, widespread disruption of air, auto or other travel, inability to procure materials or services, power or other utility failure, acts of God (such as hurricanes, tornadoes, earthquakes, floods and mud slides),
governmental restrictions, war or other enemy or terrorist action, civil commotion, fire, casualty, condemnation or other similar causes, in each case, if such cause is beyond the reasonable control of Lessee; provided that (i) lack of funds
shall not be deemed a cause beyond the reasonable control of either party hereto unless such lack of funds is caused by the failure of the other party hereto to perform any obligations of such party under this Lease or any guaranty of this Lease,
and (ii) any such occurrence is an extraordinary, as opposed to a routine or cyclical, material event that was not reasonably foreseeable when the then-applicable Annual Budget was prepared. 
 Uneconomic for its Primary Intended Use: A state or condition of the Hotel such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing body of Lessee, the Hotel cannot be operated on a commercially practicable basis for its Primary Intended Use, taking into account, among other relevant factors, the number
of usable rooms and projected revenues, such that Lessee intends to, and shall, complete the cessation of operations from the Leased Hotel. 
  

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 Uniform System: The Uniform System of Accounts for Hotels (9th Revised Edition, 1996) as published
by the American Hotel and Lodging Association, with such later revisions as may be agreed to by both Lessor and Lessee. 
 Unsuitable for
its Primary Intended Use: A state or condition of the Hotel such that, in the good faith judgment of Lessee, reasonably exercised and evidenced by the resolution of the board of directors or other governing body of Lessee, due to casualty damage
or loss through Condemnation, the Hotel cannot function as an integrated hotel facility consistent with standards applicable to a well maintained and operated hotel. 
 WARN Act: As defined in Subsection 8.2(b). 
 Working Capital: Funds reasonably necessary for
the day-to-day operation of the Hotel’s business for a thirty (30) day period, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, operating bank accounts, payrolls, accounts payable,
accrued current liabilities, and funds required to maintain Inventories. 
 ARTICLE 2 
 TERM; TERMINATION 
 2.1. Term.

 (a) The term of the Lease (the “Term”) shall commence on the date specified in Schedule 2.1 (the “Commencement
Date”), and shall end on the tenth (10th) anniversary of the Commencement Date, unless sooner terminated in accordance with the provisions hereof or extended to an anniversary of the initial expiration date pursuant to this Article 2.

 (b) Lessee is granted the option to extend the Term of this Lease for a period of five (5) years (the “First Extension”),
provided that Lessee is not in default hereunder either at the time of deemed exercise of the option or at the end of the original Term, which option must be exercised by written notice to Lessor at least one hundred twenty (120) days prior to
the expiration of the original Term. The First Extension shall be upon the same terms, conditions and rentals as set forth herein for the original Term. 
 (c) Lessee is granted an option to extend the Term for a period commencing at the expiration of the First Extension and ending on July 30, 2028 (the “Second Extension”), provided that Lessee is not in
default hereunder either at the time of exercise of the option or at the end of the First Extension, which option must be exercised by written notice to Lessor at least one hundred twenty (120) days prior to the expiration of the First
Extension. If such option is exercised, Lessor and Lessee shall negotiate in good faith modifications to the Rent for the Second Extension to adjust such Rent to market rates for arms-length hotel REIT leases between unrelated parties for similar
hotel properties at that time. In the event Lessor and Lessee are unable to agree upon Rent terms for the Second Extension at least ninety (90) days prior to the expiration of the Term, the Rent terms for the Second Extension shall be
determined by a panel of three (3) persons who have generally recognized expertise in evaluating hotel REIT leases and who are not Affiliates 

  

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of Lessor or Lessee. Lessee and the Lessor each shall have the right to designate one panel member and the two (2) panel members so designated will
designate the third panel member. Rent terms approved by at least two (2) of the three (3) panel members will be binding on Lessee and Lessor for the Second Extension, which shall be otherwise on the terms set forth herein. In determining
the market rates for the Second Extension, the panel members shall be instructed to consider hotel REIT lease terms with respect to similar hotel property types. The Second Extension shall be otherwise upon the same terms and conditions as set forth
herein for the original Term. 
 2.2. Lessor’s Option to Terminate Lease. In the event Lessor enters into a bona fide contract to
sell the Leased Property to a non-Affiliate, there is a Change of Control of Lessor, or the provisions of the Code are amended to permit Lessor to operate hotels or otherwise render the structure embodied by this Lease to be obsolete, Lessor may
terminate the Lease by giving not less than thirty (30) days’ prior Notice to Lessee of Lessor’s election to terminate the Lease effective upon, as appropriate, the closing under such contract, the date of such Change of Control, or
the effective date of such amendment to the Code (or any other specified date within 30 days after such date) (the “Optional Termination Date”). Effective upon the Optional Termination Date, this Lease shall terminate and be of no further
force and effect except as to any obligations of the parties existing as of such date that survive termination of this Lease. As compensation for the early termination of its leasehold estate under this Section 2.2, Lessor shall within 12
months of the Optional Termination Date either (a) pay to Lessee the fair market value of Lessee’s leasehold estate hereunder plus interest thereon at the Base Rate as of the Optional Termination Date or (b) offer to lease to Lessee
one or more substitute hotel facilities pursuant to one or more leases that would create for Lessee leasehold estates that have an aggregate fair market value of no less than the fair market value of the original leasehold estate, both such values
as determined as of the Optional Termination Date. Lessor also shall pay to Lessee, or reimburse Lessee for any assignment fees, termination fees or other liabilities arising under the Franchise Agreement or Management Agreement solely as a result
of the assignment or termination of such Franchise Agreement or Management Agreement in connection with the termination of this Lease under this Section 2.2. If Lessor elects and complies with the option described in (b) above, regardless
of whether Lessee enters into the lease(s) described therein, Lessor shall have no further obligations to Lessee with respect to compensation for the early termination of this Lease. In the event Lessor and Lessee are unable to agree upon the fair
market value of an original or replacement leasehold estate, it shall be determined by appraisal using the appraisal procedure set forth in Article 24. 
 For the purposes of this Article, fair market value of the leasehold estate means, as applicable, an amount equal to the price that a willing buyer not compelled to buy would pay a willing seller not compelled to sell
for Lessee’s leasehold estate under this Lease or an offered replacement leasehold estate, taking into account that the leasehold estate is encumbered by the Franchise Agreement and an arm’s-length Management Agreement. 
 2.3. Transition Procedures. Upon the expiration or termination of the Term of this Lease, for whatever reason (other than a purchase of the Leased
Property by Lessee), Lessor and Lessee shall do the following (and the provisions of this Section 2.3 shall survive the expiration or termination of this Lease until they have been fully performed) and, in general, shall cooperate in good faith
to effect an orderly transition of the management and/or lease of the Hotel: 
 (a) Transfer of Licenses. Lessee shall use reasonable
efforts (i) to transfer to Lessor or Lessor’s nominee all licenses, operating permits and other governmental authorizations and all contracts, including contracts with governmental or quasi-governmental entities, that may be necessary for
the operation of the Hotel (collectively, “Licenses”), or (ii) if such transfer is prohibited by law or Lessor otherwise elects, to cooperate with Lessor or Lessor’s nominee in connection with the processing by Lessor or
Lessor’s nominee of any applications for, all Licenses; provided, in either case, that the costs and expenses of any such transfer or the processing of any such application shall be paid by Lessor or Lessor’s nominee. 
  

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 (b) Leases and Concessions. Lessee shall assign to Lessor or Lessor’s nominee simultaneously
with the termination of this Lease, and the assignee shall assume, all leases and concession agreements in effect with respect to the Hotel then in Lessee’s name. 
 (c) Books and Records. All books and records for the Hotel kept by Lessee pursuant to Section 4.2 shall be delivered promptly to Lessor or Lessor’s nominee, simultaneously with the termination of this
Lease, but such books and records shall thereafter be available to Lessee at all reasonable times for inspection, audit, examination, and transcription for a period of one (1) year and Lessee may retain (on a confidential basis) copies or
computer records thereof. 
 (d) Receivables and Payables. Lessee shall be entitled to retain all cash, bank accounts and house banks,
and to collect all Gross Revenues and accounts receivable accrued through the termination date. Lessee shall be responsible for the payment of Rent, all Gross Operating Expenses and all other obligations of Lessee accrued under this Lease as of the
termination date, and Lessor or Lessor’s nominee shall be responsible for all Gross Operating Expenses of the Hotel accruing after the termination date. 
 (e) Final Accounting. Lessee shall, within forty five (45) days after the expiration or termination of the Term, prepare and deliver to Lessor a final accounting statement, dated as of the date of the
expiration or termination, along with a statement of any sums due from Lessee to Lessor pursuant hereto and payment of such funds. 
 (f)
Inventory. Lessee shall insure that the Leased Property, at the date of such termination or expiration, has Inventory of a substantially equivalent nature and amount as exists at the Leased Property on the Commencement Date, and Lessor or its
designee shall acquire such Inventory from Lessee for a sale price equal to the fair market value of such Inventory. 
 (g) Surrender.
Lessee will, upon the expiration or prior termination of the Term, vacate and surrender the Leased Property to Lessor in the condition in which the Leased Property was originally received from Lessor, except as repaired, rebuilt, restored, altered
or added to as permitted or required by the provisions of this Lease and except for ordinary wear and tear (subject to the obligation of Lessee to maintain the Leased Property in good order and repair, as would a prudent owner, during the entire
Term of the Lease), or damage by casualty or Condemnation (subject to the obligations of Lessee to restore or repair as set forth in the Lease) 
  

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 The provisions of this Section 2.3 shall survive the expiration or termination of this Lease until
they have been fully performed. Nothing contained herein shall limit Lessor’s rights and remedies under this Lease if such termination occurs as the result of an Event of Default. 
 2.4. Holding Over. If Lessee for any reason remains in possession of the Leased Property after the expiration or earlier termination of the Term,
such possession shall be as a tenant at sufferance during which time Lessee shall pay as rental each month 150% of the aggregate of (a) one-twelfth of the aggregate Base Rent and Percentage Rent payable with respect to the last Fiscal Year of
the Term, (b) all Additional Charges accruing during the applicable month and (c) all other sums, if any, payable by Lessee under this Lease with respect to the Leased Property. During such period, Lessee shall be obligated to perform and
observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder other than the right, to the extent given by law to tenancies at sufferance, to continue its occupancy and use of the Leased Property. Nothing
contained herein shall constitute the consent, express or implied, of Lessor to the holding over of Lessee after the expiration or earlier termination of this Lease. 
  

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 ARTICLE 3 
 RENT; RENT ADJUSTMENTS 
 3.1. Rent. Lessee will pay to Lessor in lawful money of the United
States of America which shall be legal tender for the payment of public and private debts, in immediately available funds, at Lessor’s address set forth in Article 26 hereof or at such other place or to such other Person as Lessor from time to
time may designate in a Notice, all Base Rent, Percentage Rent and Additional Charges, during the Term, as follows: 
 (a) Base Rent:
The annual sum specified in Schedule 3.1(a) (prorated for fiscal year 2008), as adjusted pursuant to Subsection 3.1(d) hereof, payable in advance in equal, consecutive monthly installments, on or before the tenth day of each calendar month of
the Term (“Base Rent”); provided, however, that the first monthly payment of Base Rent shall be payable during the second calendar month of the Term, and that the first and last monthly payments of Base Rent shall be pro rated as to any
partial month (subject to adjustment as provided in Sections 14.5, 15.3 and 15.5). 
 (b) Percentage Rent: For each fiscal year during
the Term commencing with the fiscal year in which the Commencement Date falls and ending with the fiscal year in which the Term (including any applicable extensions) ends, Lessee shall pay percentage rent (“Percentage Rent”). 

Percentage Rent for the applicable Fiscal Year shall be an amount equal to the applicable Annual Revenues Computation (as defined below) less an
amount equal to the Base Rent paid with respect to such Fiscal Year. 
 For the purpose of the foregoing calculation: 
 The annual revenues computation (“Annual Revenues Computation”) is equal to the amount obtained by adding, for the applicable Fiscal Year, an
amount equal to the sum of (i) seventeen percent (17%) of all Suite Revenues for the applicable Fiscal Year up to the applicable suite revenue breakpoint (the “Suite Revenue Breakpoint”) described in Schedule 3.1(b),
attached hereto, (prorated for the first and last Fiscal Year of the Term (including any applicable extensions)) and fifty-five percent (55%) of all Suite Revenues for the applicable Fiscal Year in excess of the applicable Suite Revenue
Breakpoint. At the beginning of each Fiscal Year, the Suite Revenue Breakpoints shall be adjusted by the same percentage that the Base Rent is adjusted pursuant to Subsection 3.1(d). 
 The Percentage Rent shall be payable as follows: 
  

	 	 (i)
	 with respect to each calendar month of the Term, Lessee shall pay on or before the last day of the calendar month an
amount equal to the excess, if any, of (A) seventy-five percent (75%) of the amount of Lessee’s budgeted Percentage Rent payable with respect to the then current calendar month (which budgeted amount shall be equal to one-twelfth
( 1/12) of the annual estimate of Percentage Rent included in the Annual Budget for the Fiscal Year in which the calendar
month occurs) over (B) Base Rent for such calendar month; and 

  

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	 	(ii)	with respect to each Fiscal Year of the Term, Lessee shall pay on or before the 15th day following the end of the Fiscal Year an amount equal to the amount by which the aggregate
amount of all payments pursuant to Section 3.1(b)(i) in respect of Percentage Rent for such Fiscal Year shall be less than one hundred percent (100%) of the estimated Percentage Rent included in the Annual Budget for such Fiscal Year.

 In no event will the amount of Percentage Rent payable for any Fiscal Year or the result of any Annual Revenues Computation be less than
zero, and there shall be no reduction in the Base Rent regardless of the result of any Annual Revenues Computation. 
 (c) Officer’s
Certificates. On or before March 1 of each year, commencing with March 1, 2009, Lessee shall deliver to Lessor an Officer’s Certificate reasonably acceptable to Lessor setting forth the computation of the actual Percentage Rent
that accrued for the Fiscal Year that ended on the immediately preceding December 31. If the annual Percentage Rent due and payable for any Fiscal Year (as shown in the applicable Officer’s Certificate) exceeds the amount actually paid as
Percentage Rent by Lessee for such year, Lessee shall pay such excess to Lessor at the time such certificate is delivered. If the Percentage Rent actually due and payable for such Fiscal Year is shown by such certificate to be less than the amount
actually paid as Percentage Rent for the applicable Fiscal Year, Lessor, at its option, shall reimburse such amount to Lessee or credit such amount against subsequent months’ Base Rent, and with respect to Percentage Rent, to the extent
necessary, subsequent months’ Percentage Rent payments. Any such credit to Base Rent shall not be applied for purposes of calculating Percentage Rent payable for any subsequent month. 
 Any difference between the annual Percentage Rent due and payable for any Fiscal Year (as shown in the applicable Officer’s Certificate or as
adjusted pursuant to Section 3.3) and the total amount of monthly payments for such Fiscal Year actually paid by Lessee as Percentage Rent, whether in favor of Lessor or Lessee, shall bear interest at the Overdue Rate, which interest shall
accrue from the due date of the last monthly payment for the Fiscal Year until the amount of such difference shall be paid or otherwise discharged. Any such interest payable to Lessor shall be deemed to be and shall be payable as Additional Charges.

 The obligation to pay Percentage Rent shall survive the expiration or earlier termination of the Term, and a final reconciliation, taking
into account, among other relevant adjustments, any adjustments which are accrued after such expiration or termination date but which related to Percentage Rent accrued prior to such termination date, and Lessee’s good faith best estimate of
the amount of any unresolved contractual allowances, shall be made not later than two (2) years after such expiration or termination date, but Lessee shall advise Lessor within sixty (60) days after such expiration or termination date of
Lessee’s best estimate at that time of the approximate amount of such adjustments, which estimate shall not be binding on Lessee or have any legal effect whatsoever. 
  

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 (d) CPI Adjustments to Base Rent and Percentage Rent. For each year of the Term beginning on or
after January 1, 2009, the Base Rent shall be adjusted from time to time as follows: 
 (1) If the most recently
published Consumer Price Index as of the last day of the last month (the “Comparison Month”) of any Fiscal Year is different than the average Consumer Price Index for the twelve (12) month period prior thereto, the Base Rent for the
next Fiscal Year shall be adjusted by the percentage change in the Consumer Price Index calculated as follows: 
 (A) The
difference between the Consumer Price Index for the most recent Comparison Month and the average Consumer Price Index for the twelve (12) month period prior thereto shall be divided by the average Consumer Price Index for the twenty four
(24) month period prior thereto. 
 (B) The Base Rent shall be multiplied by the lesser of (i) seven percent
(7%) or (ii) the quotient obtained in subparagraph (d)(1)(A) above. 
 (C) The product obtained in subparagraph
(d)(1)(B) above shall be added to the Base Rent. 
 Adjustments in the Base Rent shall be effective on the first day of the first calendar
month of the Fiscal Year to which such adjusted Base Rent applies. The Suite Revenue Breakpoint then included in the Annual Revenues Computation pursuant to Subsection 3.1(b) shall be similarly adjusted, effective with any such adjustment in the
Base Rent. 
 (2) If (i) a significant change is made in the number or nature (or both) of items used in determining the
Consumer Price Index, or (ii) the Consumer Price Index shall be discontinued for any reason, the Bureau of Labor Statistics shall be requested to furnish a new index comparable to the Consumer Price Index, together with information which will
make possible a conversion to the new index in computing the adjusted Base Rent hereunder. If for any reason the Bureau of Labor Statistics does not furnish such an index and such information, the parties will instead mutually select, accept and use
such other index or comparable statistics on the cost of living in Washington, D.C. that is computed and published by an agency of the United States or a responsible financial periodical of recognized authority. 
 (e) Manager Fund-up Cure Payments. If and to the extent that Manager pays amounts to Lessee pursuant to the Management Agreement in order to avoid
termination of the Management Agreement by Lessee for Manager’s failure to meet certain performance hurdles described therein, such amounts shall be treated as additional Suite Revenues for purposes of the Percentage Rent calculation hereunder.

 (f) Allocation of Rent. The parties hereto acknowledge and agree that the Base Rent paid or payable by Lessee to Lessor hereunder
shall, to the extent relevant, be allocated between the personal property and real property constituting Leased Property hereunder in direct proportion to the then recognizable fair market value of such personal property and real property.
Percentage Rent in excess of Base Rent shall be allocated solely to real property. 
  

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 3.2. Confirmation of Percentage Rent. Lessee shall utilize, or cause to be utilized, an accounting
system for the Leased Property in accordance with its usual and customary practices, and in accordance with generally accepted accounting principles, that will accurately record all data necessary to compute Percentage Rent, and Lessee shall retain,
for at least four (4) years after the expiration of each Fiscal Year (and in any event until the reconciliation described in Subsection 3.1(c) for such Fiscal Year has been made), reasonably adequate records conforming to such accounting system
showing all data necessary to compute Percentage Rent for the applicable Fiscal Years. Lessor, at its expense (except as provided hereinbelow), shall have the right from time to time, upon prior written notice to Lessee and Manager, by its
accountants or representatives to audit the information that formed the basis for the data set forth in any Officer’s Certificate provided under Subsection 3.1(d) and, in connection with such audits, to examine all Lessee’s records
(including supporting data and sales and excise tax returns) reasonably required to verify Percentage Rent, subject to any prohibitions or limitations on disclosure of any such data under Legal Requirements; provided, however that Lessor may only
inspect or audit records in Manager’s possession subject to the terms of Lessee’s access thereto under the Management Agreement. If any such audit discloses a deficiency in the payment of Percentage Rent, and either Lessee agrees with the
result of such audit or the matter is otherwise determined or compromised, Lessee shall forthwith pay to Lessor the amount of the deficiency, as finally agreed or determined, together with interest at the Overdue Rate from the date when said payment
should have been made to the date of payment thereof; provided, however, that as to any audit that is commenced more than two (2) years after the date Percentage Rent for any Fiscal Year is reported by Lessee to Lessor, the deficiency, if any,
with respect to such Percentage Rent shall bear interest at the Overdue Rate only from the date such determination of deficiency is made unless such deficiency is the result of gross negligence or willful misconduct on the part of Lessee, in which
case interest at the Overdue Rate will accrue from the date such payment should have been made to the date of payment thereof. If any such audit discloses that the Percentage Rent actually due from Lessee for any Fiscal Year exceed those reported by
Lessee by more than three percent (3%), Lessee shall pay the cost of such audit and examination. Any proprietary information obtained by Lessor pursuant to the provisions of this Section shall be treated as confidential, except that such information
may be used, subject to appropriate confidentiality safeguards, in any litigation between the parties and except further that Lessor may disclose such information to prospective lenders. The obligations of Lessee contained in this Section shall
survive the expiration or earlier termination of this Lease. 
 3.3. Additional Charges. In addition to the Base Rent and Percentage
Rent, (a) Lessee also will pay and discharge as and when due and payable all other amounts, liabilities, obligations and Impositions that Lessee assumes or agrees to pay under this Lease, and (b) in the event of any failure on the part of
Lessee to pay any of those items referred to in clause (a) of this Section 3.3, Lessee also will promptly pay and discharge every fine, penalty, interest and cost that may be added for non-payment or late payment of such items (the items
referred to in clauses (a) and (b) of this Section 3.3 being additional rent hereunder and being referred to herein collectively as the “Additional Charges”), and Lessor shall have all legal, equitable and contractual
rights, powers and remedies provided either in this Lease or by statute or otherwise in the case of non-payment of the Additional Charges as in the case of non-payment of the Base Rent. If any installment of Base Rent 

  

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and Percentage Rent or Additional Charges (but only as to those Additional Charges that are payable directly to Lessor) shall not be paid on its due date,
Lessee will pay Lessor on demand, as Additional Charges, a late charge (to the extent permitted by law) computed at the Overdue Rate on the amount of such installment, from the due date of such installment to the date of payment thereof. To the
extent that Lessee pays any Additional Charges to Lessor pursuant to any requirement of this Lease, Lessee shall be relieved of its obligation to pay such Additional Charges to the entity to which they would otherwise be due and Lessor shall pay
same from monies received from Lessee. 
 3.4. Net Lease; No Termination, Abatement, Etc. 
 (a) The Rent shall be paid absolutely net to Lessor, so that this Lease shall yield to Lessor the full amount of the installments of Base Rent, Percentage
Rent and Additional Charges throughout the Term, all as more fully set forth in Article 5, but subject to any other provisions of this Lease that expressly provide for adjustment or abatement of Rent or other charges or expressly provide that
certain expenses or maintenance shall be paid or performed by Lessor. 
 (b) Except as otherwise specifically provided in this Lease, and
except for loss of the Franchise Agreement solely by reason of any action or inaction by Lessor, Lessee, to the extent permitted by law, shall remain bound by this Lease in accordance with its terms and shall neither take any action without the
written consent of Lessor (which shall not be unreasonably withheld or delayed) to modify, surrender or terminate the same, nor seek nor be entitled to any abatement, deduction, deferment or reduction of the Rent, or setoff against the Rent, nor
shall the obligations of Lessee be otherwise affected by reason of (a) any damage to, or destruction of, any Leased Property or any portion thereof from whatever cause or any Taking of the Leased Property or any portion thereof, (b) the
lawful or unlawful prohibition of, or restriction upon, Lessee’s use of the Leased Property, or any portion thereof, or the interference with such use by any Person other than Lessor, (c) any claim which Lessee has or might have against
Lessor by reason of any default or breach of any warranty by Lessor under this Lease or any other agreement between Lessor and Lessee, or to which Lessor and Lessee are parties, (d) any bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding up or other proceedings affecting Lessor or any assignee or transferee of Lessor, or (e) for any other cause whether similar or dissimilar to any of the foregoing other than a discharge of Lessee
from any such obligations as a matter of law. Lessee hereby specifically waives all rights, arising from any occurrence whatsoever, which may now or hereafter be conferred upon it by law to (1) modify, surrender or terminate this Lease or quit
or surrender the Leased Property or any portion thereof, or (2) entitle Lessee to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Lessee hereunder, except as otherwise specifically provided in this Lease.
The obligations of Lessee hereunder shall be separate and independent covenants and agreements and the Rent and all other sums payable by Lessee hereunder shall continue to be payable in all events unless the obligations to pay the same shall be
terminated pursuant to the express provisions of this Lease or by termination of this Lease other than by reason of an Event of Default. 
  

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 3.5. Material Changes in Economic Climate. 
 (a) In the event of the occurrence of a Force Majeure or a Hotel Market Decline, Lessor and Lessee shall, in good faith, negotiate possible modifications
to the Base Rent and Percentage Rent to reduce such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel properties in the Hotel’s Competitive Set, retroactively effective as of the first calendar month
of the Term following the last day of the six-month period during which such Hotel Market Decline has occurred with the excess of Base Rent and Percentage Rent actually paid for such period over the reduced Base Rent and Percentage Rent, plus
interest thereon at the Base Rate, to be credited to the next payments of Rent due and owing hereunder. If Lessor and Lessee are unable to agree that a Force Majeure or a Hotel Market Decline has occurred, within thirty (30) days after the date
of written certification from Lessee to Lessor that a Force Majeure and Hotel Market Decline has occurred (accompanied by reasonably detailed computations and documentation to support such assertion), the matter may be submitted by either party to
arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease). If, within ninety (90) days (during which period Lessee
shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease) following the date of such written certification from Lessee (or the date of a decision of an arbitrator if required hereunder to determine that a
Force Majeure and Hotel Market Decline has occurred), Lessor and Lessee are unable to agree upon the amount of reduction in Base Rent and Percentage Rent contemplated hereby, Lessee shall have the option to terminate this Lease upon not less than
thirty (30) days prior written notice to Lessor. 
 (b) In the event of the occurrence of a National Economic Decline or a Regional
Market Decline, Lessor and Lessee shall, in good faith, negotiate (i) possible modifications to the Base Rent and Percentage Rent to reduce such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel
properties in the Hotel’s Competitive Set, and (ii) possible modifications to the Base and Percentage Rent payable under each of the Other Leases for Other Hotels in the same Region (as defined in the STR Reports) as the Hotel to reduce
such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel properties in the Hotel’s Competitive Set, in each case retroactively effective as of the first calendar month of the Term following the last day
of the six month period during which such Regional Market Decline has occurred with the excess of Base Rent and Percentage Rent actually paid for such period over the reduced Base Rent and Percentage Rent, plus interest thereon at the Base Rent, to
be credited to the next payments of Rent due and owing hereunder. If, within thirty (30) days after the date of written certification from Lessee to Lessor that a National Economic Decline and Regional Market Decline has occurred (accompanied
by reasonably detailed computations and documentation to support such assertion), Lessor and Lessee are unable to agree that a National Economic Decline or Regional Market Decline has occurred, the matter may be submitted by either party to
arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease). If, within ninety (90) days (during which period Lessee
shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease) following the date of such initial written certification from Lessee (or the date of a decision of an arbitrator if required hereunder to determine
that a National Economic Decline and Regional Market Decline has occurred), Lessor and Lessee are unable to agree upon the amount of reduction in Base Rent and Percentage Rent contemplated hereby, Lessee shall have the option, upon not less than
sixty (60) days prior written notice to Lessor, to terminate all (but not less than all) of the Existing Leases of hotels in the same Region as the Hotel, including this Lease. 
  

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 3.6 Rent Adjustment: Basic Assumptions Incorrect. Except to the extent that doing so would cause
Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the
documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision
to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were
not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a “Repositioning”), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good
faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such
change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are
unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be
made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution
(during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target
deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days. 
  

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 ARTICLE 4 
 ANNUAL BUDGETS; BOOKS AND RECORDS 
 4.1. Annual Budget. Not later than thirty (30) days
prior to the commencement of each Fiscal Year, Lessee shall submit the Annual Budget to Lessor. The Annual Budget shall contain the following, to the extent included in the operating budgets and capital budgets provided to Lessee by Manager under
the management agreement for the Hotel: 
 (a) Lessee’s reasonable estimate of Gross Revenues (including room rates and Suite Revenues),
Gross Operating Expenses, and Gross Operating Profits for the forthcoming Fiscal Year itemized on schedules on a quarterly basis as approved by Lessor and Lessee, as same may be revised or replaced from time to time by Lessee and approved by Lessor,
together with the assumptions, in narrative form, forming the basis of such schedules. 
 (b) An estimate of the amounts to be dedicated to
the repair, replacement, or refurbishment of Furniture and Equipment. 
 (c) An estimate of any amounts Lessor will be required to provide
for required or desirable capital improvements to the Hotel or any of its components. 
 (d) A cash flow projection. 
 (e) A business plan, which shall describe business objectives and strategies for the forthcoming Fiscal Year, and shall include without limitation an
analysis of the market area in which the Hotel competes, a comparison of the Hotel and its business with competitive hotels, an analysis of categories of potential guests, and a description of sales and marketing activities designed to achieve and
implement identified objectives and strategies. 
 4.2. Books and Records. Lessee shall keep full and adequate books of account and
other records reflecting the results of operation of the Hotel on an accrual basis, all in accordance with generally accepted accounting principles and the obligations of Lessee under this Lease. The books of account and all other records relating
to or reflecting the operation of the Hotel shall be kept either at the Hotel or at Lessee’s offices in Richmond, Virginia or at Manager’s central offices, and shall be available to Lessor and its representatives and its auditors or
accountants, at all reasonable times, upon prior written notice to Lessee and Manager, for examination, audit, inspection, and transcription; provided, however that Lessor may only inspect or audit records in Manager’s possession subject to the
terms of Lessee’s access thereto under the Management Agreement. All of such books and records pertaining to the Hotel including, without limitation, books of account, guest records and front office records, at all times shall be the property
of Lessor and shall not be removed from the Hotel or Lessee’s offices or Manager’s central offices (but may be moved among any of the foregoing) by Lessee without Lessor approval. 
  

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 ARTICLE 5 
 IMPOSITIONS; HOTEL COSTS 
 5.1. Payment of Impositions. Subject to Section 12.2 (relating
to permitted contests), Lessee will pay, or cause to be paid, all Impositions (other than Real Estate Taxes and Personal Property Taxes, which shall be paid by Lessor) before any fine, penalty, interest or cost may be added for non-payment, such
payments to be made directly to the taxing or other authorities where feasible, and will promptly furnish to Lessor copies of official receipts or other satisfactory proof evidencing such payments. Lessee’s obligation to pay such Impositions
shall be deemed absolutely fixed upon the date such Impositions become a lien upon the Leased Property or any part thereof. If any such Imposition may, at the option of the taxpayer, lawfully be paid in installments (whether or not interest shall
accrue on the unpaid balance of such Imposition), Lessee may exercise the option to pay the same (and any accrued interest on the unpaid balance of such Imposition) in installments and in such event, shall pay such installments during the Term
hereof (subject to Lessee’s right of contest pursuant to the provisions of Section 12.2) as the same respectively become due and before any fine, penalty, premium, further interest or cost may be added thereto. Lessor, at its expense,
shall, to the extent required or permitted by applicable law, prepare and file all tax returns in respect of Lessor’s net income, gross receipts, sales and use, single business, transaction privilege, rent, ad valorem, franchise taxes, Real
Estate Taxes, Personal Property Taxes and taxes on its capital stock, and Lessee, at its expense, shall, to the extent required or permitted by applicable laws and regulations, prepare and file all other tax returns and reports in respect of any
Imposition as may be required by governmental authorities. If any refund shall be due from any taxing authority in respect of any Imposition paid by Lessee, the same shall be paid over to or retained by Lessee if no Event of Default shall have
occurred hereunder and be continuing. If an Event of Default shall have occurred and be continuing, any such refund shall be paid over to or retained by Lessor. Any such funds retained by Lessor due to an Event of Default shall be applied as
provided in Article 16. Lessor and Lessee shall, upon request of the other, provide such data as is maintained by the party to whom the request is made with respect to the Leased Property as may be necessary to prepare any required returns and
reports. Lessee shall file all Personal Property Tax returns in such jurisdictions where it is legally required so to file. Lessor, to the extent it possesses the same, and Lessee, to the extent it possesses the same, will provide the other party,
upon request, with cost and depreciation records necessary for filing returns for any property classified as personal property. Where Lessor is legally required to file Personal Property Tax returns, Lessee shall provide Lessor with copies of
assessment notices in sufficient time for Lessor to file a protest. Lessor may, upon Notice to Lessee, at Lessor’s option and at Lessor’s sole expense, protest, appeal, or institute such other proceedings (in its or Lessee’s name) as
Lessor may deem appropriate to effect a reduction of real estate or personal property assessments for those Impositions to be paid by Lessor, and Lessee, at Lessor’s expense as aforesaid, shall fully cooperate with Lessor in such protest,
appeal, or other action. Lessor hereby agrees to indemnify, defend, and hold harmless Lessee from and against any claims, obligations, liabilities and loss against or incurred by Lessee in connection with such cooperation. Billings for reimbursement
of Personal Property Taxes by Lessee to Lessor shall be accompanied by copies of a bill therefor and payments thereof which identify the personal property with respect to which such payments are made. Lessor, however, reserves the right to effect
any such protest, appeal or other action and, upon Notice to Lessee, shall control any such activity, which shall then go forward at Lessor’s sole expense. Upon such Notice, Lessee, at Lessor’s expense, shall cooperate fully with such
activities. 
  

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 5.2. Notice of Impositions. Lessor shall give prompt Notice to Lessee of all Impositions payable
by Lessee hereunder of which Lessor at any time has knowledge, provided that Lessor’s failure to give any such Notice shall in no way diminish Lessee’s obligations hereunder to pay such Impositions, but such failure shall obviate any
default hereunder for a reasonable time after Lessee receives Notice of any Imposition which it is obligated to pay during the first taxing period applicable thereto. 
 5.3. Adjustment of Impositions. Impositions imposed in respect of the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Lessor and Lessee, whether or not such Imposition
is imposed before or after such termination, and Lessee’s obligation to pay its prorated share thereof after termination shall survive such termination. 
 5.4. Utility Charges. Lessee will be solely responsible for obtaining and maintaining utility services to the Leased Property and will pay or cause to be paid all charges for electricity, gas, oil, water, sewer
and other utilities used in the Leased Property during the Term. 
 5.5. Insurance Premiums. Lessee will pay or cause to be paid all
premiums for the insurance coverage’s required to be maintained by it under Article 13. 
 5.6. Franchise Fees. Lessee will
maintain in full force and effect, and pay or cause to be paid all fees and other charges payable pursuant to, any Franchise Agreement with respect to the Hotel. 
 5.7. Ground Rent. In the event that Lessor’s interest in the Land is pursuant to a Ground Lease or sublease, Lessor shall be solely responsible for the payment of any ground rent, building rent or subrent,
as the case may be, due with respect to the Leased Property. 
 ARTICLE 6 
 LEASED PROPERTY; LESSEE’S PERSONAL PROPERTY 
 6.1. Ownership of the Leased Property. Lessee acknowledges that the Leased Property is the property of Lessor and that Lessee has only the right to the possession and use of the Leased Property upon the terms
and conditions of this Lease. 
 6.2. Lessee’s Personal Property. Lessee will acquire and maintain throughout the Term such
Inventory as is required to operate the Leased Property in the manner contemplated by this Lease. Lessee may (and shall as provided hereinbelow), at its expense, install, affix or assemble or place on any parcels of the Land or in any of the Leased
Improvements, any items of personal property (including Inventory) owned by Lessee. Lessee, at the commencement of the Term, and from time to time thereafter, shall provide Lessor with an accurate list of all such items of Lessee’s personal
property (collectively, the “Lessee’s Personal Property”). Lessee may, subject to the first sentence of this Section 6.2 and the conditions set forth below, remove any of Lessee’s Personal 

  

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Property set forth on such list at any time during the Term or upon the expiration or any prior termination of the Term. All of Lessee’s Personal
Property, other than Inventory, not removed by Lessee within ten (10) days following the expiration or earlier termination of the Term shall be considered abandoned by Lessee and may be appropriated, sold, destroyed or otherwise disposed of by
Lessor without first giving Notice thereof to Lessee, without any payment to Lessee and without any obligation to account therefor. Lessee will, at its expense, restore the Leased Property to the condition required by Subsection 2.3(g), including
repair of all damage to the Leased Property caused by the removal of Lessee’s Personal Property, whether effected by Lessee or Lessor. Upon the expiration or earlier termination of the Term, Lessor or its designee shall have the option to
purchase all Inventory on hand at the Leased Property at the time of such expiration or termination for a sale price equal to the fair market value of such Inventory. Lessee may make such financing arrangements, title retention agreements, leases or
other agreements with respect to Lessee’s Personal Property as it sees fit provided that Lessee first advises Lessor of any such arrangement and such arrangement expressly provides that in the event of Lessee’s default thereunder, Lessor
(or its designee) may assume Lessee’s obligations and rights under such arrangement. 
 6.3. Lessor’s Lien. To the fullest
extent permitted by applicable law, Lessor is granted a lien and security interest on all Lessee’s personal property now or hereinafter placed in or upon the Leased Property, and such lien and security interest shall remain attached to such
Lessee’s personal property until payment in full of all Rent and satisfaction of all of Lessee’s obligations hereunder; provided, however, Lessor shall subordinate its lien and security interest to that of any non-Affiliate of Lessee which
finances such Lessee’s personal property or any non-Affiliate conditional seller of such Lessee’s personal property, the terms and conditions of such subordination to be satisfactory to Lessor in the exercise of reasonable discretion.
Lessee shall, upon the request of Lessor, execute such financing statements or other documents or instruments reasonably requested by Lessor to perfect the lien and security interests herein granted. Lessee hereby authorizes Lessor to execute and
file financing statements signed only be a representative of Lessor covering the security interest of Lessor in Lessee’s personal property. 
 6.4. Lessor’s Option to Purchase Assets of Lessee. Effective on not less than ninety (90) days’ prior Notice given at any time within one hundred eighty (180) days before the expiration of the Term, but not later
than ninety (90) days prior to such expiration, or upon such shorter Notice period as shall be appropriate if this Lease is terminated prior to its expiration date, Lessor shall have the option to purchase all (but not less than all) of the
assets of Lessee, tangible and intangible, relating to the Leased Property (other than this Lease), at the expiration or termination of this Lease for an amount (payable in cash on the expiration date of this Lease) equal to the fair market value
thereof as appraised in conformity with Article 24, except that the appraisers need not be members of the American Institute of Real Estate Appraisers, but rather shall be appraisers having at least ten (10) years’ experience in valuing
similar assets. Notwithstanding any such purchase, Lessor shall obtain no rights to any trade name or logo used in connection with the Franchise Agreement unless separate agreement as to such use is reached with the applicable franchisor.

  

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 ARTICLE 7 
 CONDITION AND USE OF LEASED PROPERTY 
 7.1. Condition of the Leased Property. Lessee
acknowledges receipt and delivery of possession of the Leased Property. Lessee has examined and otherwise has knowledge of the condition of the Leased Property and has found the same to be satisfactory for its purposes hereunder. Lessee is leasing
the Leased Property “as is” in its present condition. Lessee waives any claim or action against Lessor in respect of the condition of the Leased Property. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE
LEASED PROPERTY, OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING AGREED THAT ALL SUCH
RISKS ARE TO BE BORNE BY LESSEE. LESSEE ACKNOWLEDGES THAT THE LEASED PROPERTY HAS BEEN INSPECTED BY LESSEE AND IS SATISFACTORY TO IT. Provided, however, to the extent permitted by law, Lessor hereby assigns to Lessee all of Lessor’s rights to
proceed against any predecessor in title (other than any Affiliate of Lessee, which conveyed the Property to Lessor) for breaches of warranties or representations or for latent defects in the Leased Property. Lessor shall fully cooperate with Lessee
in the prosecution of any such claim, in Lessor’s or Lessee’s name, all at Lessee’s sole cost and expense. Lessee hereby agrees to indemnify, defend and hold harmless Lessor from and against any claims, obligations and liabilities
against or incurred by Lessor in connection with such cooperation. 
 7.2. Use of the Leased Property. 
 (a) Lessee covenants that it will proceed with all due diligence and will exercise reasonable efforts to obtain and to maintain all Licenses and other
approvals needed to use and operate the Leased Property and the Hotel under applicable local, state and federal law. 
 (b) Lessee shall use
or cause to be used the Leased Property only as a Hilton Garden Inn hotel facility, and for such other uses as may be necessary or incidental to such use or such other use as otherwise approved by Lessor (the “Primary Intended Use”).
Lessee shall not use the Leased Property or any portion thereof for any other use without the prior written consent of Lessor, which consent may be granted, denied or conditioned in Lessor’s sole discretion. No use shall be made or permitted to
be made of the Leased Property, and no acts shall be done, which will cause the cancellation or increase the premium of any insurance policy covering the Leased Property or any part thereof (unless another adequate policy satisfactory to Lessor is
available and Lessee pays any premium increase), nor shall Lessee sell or permit to be kept, used or sold in or about the Leased Property any article which may be prohibited by law or fire underwriter’s regulations. Lessee shall, at its sole
cost, comply with all of the requirements pertaining to the Leased Property of any insurance board, association, organization or company necessary for the maintenance of insurance, as herein provided, covering the Leased Property and Lessee’s
Personal Property. 
  

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 (c) Subject to the provisions of Articles 14, 15, 18 and 21, Lessee covenants and agrees that during the
Term it will (1) operate continuously the Leased Property as a hotel facility, (2) keep in full force and effect and comply with all the provisions of the Franchise Agreement and the Management Agreement, (3) not terminate or amend
the Franchise Agreement or the Management Agreement without the consent of Lessor (which shall not be unreasonably withheld or delayed), (4) maintain appropriate certifications and Licenses for such use and (5) seek to maximize the Gross
Revenues generated therefrom consistent with sound business practices. 
 (d) Lessee shall not commit or suffer to be committed any waste on
the Leased Property, or in the Hotel, nor shall Lessee cause or permit any nuisance thereon. 
 (e) Lessee shall neither suffer nor permit
the Leased Property or any portion thereof, or Lessee’s Personal Property, to be used in such a manner as (1) might reasonably tend to impair Lessor’s (or Lessee’s, as the case may be) title thereto or to any portion thereof, or
(2) may reasonably make possible a claim or claims of adverse usage or adverse possession by the public, as such, or of implied dedication of the Leased Property or any portion thereof, except as necessary in the ordinary and prudent operation
of the Hotel on the Leased Property. 
 7.3. Lessor to Grant Easements, Etc. Lessor will, from time to time, so long as no Event of
Default has occurred and is continuing, at the request of Lessee and at Lessee’s cost and expense (but subject to the approval of Lessor, which approval shall not be unreasonably withheld or delayed), (a) grant easements and other rights
in the nature of easements with respect to the Leased Property to third parties, (b) release existing easements or other rights in the nature of easements which are for the benefit of the Leased Property, (c) dedicate or transfer
unimproved portions of the Leased Property for road, highway or other public purposes, (d) execute petitions to have the Leased Property annexed to any municipal corporation or utility district, (e) execute amendments to any covenants and
restrictions affecting the Leased Property and (f) execute and deliver to any Person any instrument appropriate to confirm or effect such grants, releases, dedications, transfers, petitions and amendments (to the extent of its interests in the
Leased Property), but only upon delivery to Lessor of an Officer’s Certificate stating that such grant, release, dedication, transfer, petition or amendment does not interfere with the proper conduct of the business of Lessee on the Leased
Property and does not materially reduce the value of the Leased Property. 
 ARTICLE 8 
 LESSEE’S COMPLIANCE WITH LAW; ENVIRONMENTAL COVENANTS 
 8.1. Compliance with Legal and Insurance Requirements, Etc. Subject to Subsection 8.3(b) below and Section 12.2 (relating to permitted contests), Lessee, at its expense, will promptly (a) comply with
all applicable Legal Requirements and Insurance Requirements in respect of the use, operation, maintenance, repair and restoration of the Leased Property (excluding any repair or restoration of any portion of the Leased Property required to be made
by Lessor pursuant to Subsection 9.1(b) below, which repair shall be made by Lessor), and (b) procure, maintain and comply with all appropriate Licenses and other authorizations required for any use of the Leased Property and Lessee’s
Personal Property then being made, and for the proper erection, installation, operation and maintenance of the Leased Property or any part thereof. 
  

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 8.2. Legal Requirement Covenants. 
 (a) Subject to Subsection 8.3(b) and Subsection 9.1(b) below, Lessee covenants and agrees that the Leased Property and Lessee’s Personal Property
shall not be used for any unlawful purpose, and that Lessee shall not permit or suffer to exist any unlawful use of the Leased Property by others. Lessee shall acquire and maintain all appropriate licenses, certifications, permits and other
authorizations and approvals needed to operate the Leased Property in its customary manner for the Primary Intended Use, and any other lawful use conducted on the Leased Property as may be permitted from time to time hereunder. Lessee further
covenants and agrees that Lessee’s use of the Leased Property and maintenance, alteration, and operation of the same, and all parts thereof, shall at all times conform to all Legal Requirements, unless the same are finally determined by a court
of competent jurisdiction to be unlawful (and Lessee shall cause all sub-tenants, invitees or others within its control so to comply with all Legal Requirements). Lessee may, however, upon prior Notice to Lessor, contest the legality or
applicability of any such Legal Requirement or any licensure or certification decision if Lessee maintains such action in good faith, with due diligence, without prejudice to Lessor’s rights hereunder, and at Lessee’s sole expense. If by
the terms of any such Legal Requirement compliance therewith pending the prosecution of any such proceeding may legally be delayed without the occurrence of any charge or liability of any kind, or the filing of any lien, against the Hotel or
Lessee’s leasehold interest therein and without subjecting Lessee or Lessor to any liability, civil or criminal, for failure so to comply therewith, Lessee may delay compliance therewith until the final determination of such proceeding. If any
lien, charge or civil or criminal liability would be incurred by reason of any such delay, Lessee, on the prior written consent of Lessor, which consent shall not be unreasonably withheld or delayed, may nonetheless contest as aforesaid and delay as
aforesaid provided that such delay would not subject Lessor to criminal liability and Lessee both (a) furnishes to Lessor security reasonably satisfactory to Lessor against any loss or injury by reason of such contest or delay and
(b) prosecutes the contest with due diligence and in good faith. 
 (b) As between Lessor and Lessee, Lessee is solely responsible for
all liabilities or obligations of any kind with respect to employees at the Leased Property during the Term. Without limiting the generality of the foregoing sentence, Lessee is solely responsible for any required compliance with the Worker
Adjustment, Retraining and Notification Act of 1988 (the “WARN Act”) or any similar state law applicable to the Leased Property; any required compliance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”); and all alleged and actual obligations and claims arising from or relating to any employment agreement, collective bargaining agreement or employee benefit plans, any grievances, arbitration’s, or unfair labor practice
charges, and relating to compliance with any applicable state or federal labor employment law, including but not limited to all laws pertaining to discrimination, workers’ compensation, unemployment compensation, occupational safety and health,
unfair labor practices, family and medical leave, and wages, hours or employee benefits. Lessee agrees to indemnify and defend and hold harmless Lessor from and against any claims relating to any of the foregoing matters. Lessee further agrees to
reimburse Lessor for any and all losses, damages, costs, expenses, liabilities and obligations of any kind, including without limitation reasonable attorney’s fees and other legal costs and expenses, incurred by Lessor in connection with any of
the foregoing matters. 
  

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 (c) Notwithstanding the Lessee’s obligations under Section 8.1 to obtain and maintain all
permits and licenses required for the use of the Leased Property, and without limiting any obligations of Lessee hereunder, if (i) applicable law requires that the owner (rather than a lessee) of a hotel be the licensee under the required
liquor license for the Hotel or (ii) the former owner of the Hotel is holding the liquor license and continuing to exercise management and supervision of the liquor services at the Hotel pending transfer of the license to Lessor or Lessee, the
Lessee shall indemnify and hold Lessor harmless from any liability, damages or claims (a) arising in connection with liquor operations at the Hotel during such period of time following the Commencement Date, except to the extent caused by
Lessor’s gross negligence or willful misconduct or (b) made by or through the former owner with respect to liquor operations at the Hotel following the Commencement Date. 
 8.3. Environmental Covenants. Lessor and Lessee (in addition to, and not in diminution of, Lessee’s covenants and undertakings in Sections
8.1 and 8.2 hereof) covenant and agree as follows: 
 (a) At all times hereafter until the later of (i) such time as all liabilities,
duties or obligations of Lessee to Lessor under the Lease have been satisfied in full and (ii) such time as Lessee completely vacates the Leased Property and surrenders possession of the same to Lessor, Lessee shall fully comply with all
Environmental Laws applicable to the Leased Property and the operations thereon. Lessee agrees to give Lessor prompt Notice of (1) all Environmental Liabilities; (2) all pending, threatened or anticipated Proceedings, and all notices,
demands, requests or investigations, relating to any Environmental Liability or relating to the issuance, revocation or change in any Environmental Authorization required for operation of the Leased Property; (3) all Releases at, on, in, under
or in any way affecting the Leased Property, or any Release known by Lessee at, on, in or under any property adjacent to the Leased Property; and (4) all facts, events or conditions that could reasonably lead to the occurrence of any of the
above-referenced matters. 
 (b) Lessor hereby agrees to defend, indemnify and save harmless any and all Lessee Indemnified Parties from and
against any and all Environmental Liabilities other than (i) Environmental Liabilities resulting from conditions disclosed in any environmental audit obtained by Lessor and provided to Lessee prior to the execution of this Lease (the
“Environmental Audit”), and (ii) Environmental Liabilities which were caused by the acts or negligent failures to act of Lessee. 
 (c) Lessee hereby agrees to defend, indemnify and save harmless any and all Lessor Indemnified Parties from and against any and all Environmental Liabilities which were (i) resulting from conditions disclosed in the Environmental
Audit, and (ii) caused by the acts or negligent failures to act of Lessee. 
 (d) If any Proceeding is brought against any Indemnified
Party in respect of an Environmental Liability with respect to which such Indemnified Party may claim indemnification under either Subsection 8.3(b) or (c), the Indemnifying Party, upon request, shall at its sole expense resist and defend such
Proceeding, or cause the same to be resisted and defended by counsel designated by the Indemnified Party and approved by the Indemnifying Party, which approval shall 

  

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not be unreasonably withheld or delayed; provided, however, that such approval shall not be required in the case of defense by counsel designated by any
insurance company undertaking such defense pursuant to any applicable policy of insurance. Each Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel will be at the sole expense of such Indemnified Party unless such counsel has been approved by the Indemnifying Party, which approval shall not be unreasonably withheld or delayed. The Indemnifying Party shall not be liable
for any settlement of any such Proceeding made without its consent, which shall not be unreasonably withheld or delayed, but if settled with the consent of the Indemnifying Party, or if settled without its consent (if its consent shall be
unreasonably withheld or delayed), or if there be a final, nonappealable judgment for an adversary party in any such Proceeding, the Indemnifying Party shall indemnify and hold harmless the Indemnified Parties from and against any liabilities and
loss incurred by such Indemnified Parties by reason of such settlement or judgment. 
 (e) At any time any Indemnified Party has reason to
believe circumstances exist which could reasonably result in an Environmental Liability, upon reasonable prior Notice to Lessee and Manager stating such Indemnified Party’s basis for such belief, an Indemnified Party shall be given immediate
access to the Leased Property (including, but not limited to, the right to enter upon, investigate, drill wells, take soil borings, excavate, monitor, test, cap and use available land for the testing of remedial technologies), Lessee’s
employees, and to all relevant documents and records regarding the matter as to which a responsibility, liability or obligation is asserted or which is the subject of any Proceeding; provided that such access may he conditioned or restricted as may
be reasonably necessary to ensure compliance with law and the safety of personnel and facilities or to protect confidential or privileged information. All Indemnified Parties requesting such immediate access and cooperation shall endeavor to
coordinate such efforts to result in as minimal interruption of the operation of the Leased Property as practicable. 
 (f) The
indemnification rights and obligations provided for in this Article 8 shall be in addition to any indemnification rights and obligations provided for elsewhere in this Lease. 
 (g) The indemnification rights and obligations provided for in this Article 8 shall survive the termination of this Lease. 
 For purposes of this Section 8.3, all amounts for which any Indemnified Party seeks indemnification shall be computed net of (a) any actual
income tax benefit resulting therefrom to such Indemnified Party, (b) any insurance proceeds received (net of tax effects) with respect thereto, and (c) any amounts recovered (net of tax effects) from any third parties based on claims the
Indemnified Party has against such third parties which reduce the damages that would otherwise be sustained; provided that in all cases, the timing of the receipt or realization of insurance proceeds or income tax benefits or recoveries from third
parties shall be taken into account in determining the amount of reduction of damages. Each Indemnified Party agrees to use its reasonable efforts to pursue, or assign to Lessee or Lessor, as the case may be, any claims or rights it may have against
any third party that would materially reduce the amount of damages otherwise incurred by such Indemnified Party. 
  

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 Notwithstanding anything to the contrary contained in this Lease, if Lessor shall become entitled to the
possession of the Leased Property by virtue of the termination of the Lease or repossession of the Leased Property, then Lessor may assign its indemnification rights under this Section 8.3 (but not any other rights under this Section 8.3)
to any Person to whom Lessor subsequently transfers the Leased Property, subject to the following conditions and limitations, each of which shall be deemed to be incorporated into the terms of such assignment, whether or not specifically referred to
therein: 
 (i) The indemnification rights referred to in this section may be assigned only if a known Environmental Liability
then exists or if a Proceeding is then pending or, to the knowledge of Lessee or Lessor, then threatened with respect to the Leased Property; 
 (ii) Such indemnification rights shall be limited to Environmental Liabilities relating to or specifically affecting the Leased Property; and 
 (iii) Any assignment of such indemnification rights shall be limited to the immediate transferee of Lessor, and shall not extend to any
such transferee’s successors or assigns. 
 ARTICLE 9 
 MAINTENANCE AND REPAIRS; ENCROACHMENTS AND RESTRICTIONS 
 9.1. Maintenance
and Repairs. 
 (a) Lessee, at its sole expense, will keep the Leased Property, and all private roadways, sidewalks and curbs appurtenant
thereto that are under Lessee’s control, including windows and plate glass, mechanical, electrical and plumbing systems and equipment (including conduit and ductware), and non-load bearing interior walls, and parking lot surfaces, in good order
and repair, except (i) for ordinary wear and tear (whether or not the need for such repairs occurred as a result of Lessee’s use, any prior use, the elements or the age of the Leased Property, or any portion thereof) and (ii) to the
extent of damage caused by Lessor’s gross negligence or willful misconduct or that of its employees or agents, and, except as otherwise provided in Subsection 9.1(b), Article 14 or Article 15, with reasonable promptness, make all necessary and
appropriate repairs replacements, and improvements thereto of every kind and nature, whether interior or exterior ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior to the commencement of the Term of
this Lease (concealed or otherwise), or required by any governmental agency having jurisdiction over the Leased Property, except as to the structural elements of the Leased Improvements. Lessee, however, shall be permitted to prosecute claims
against Lessor’s predecessors in title for breach of any representation or warranty or for any latent defects in the Leased Property to be maintained by Lessee unless Lessor is already diligently pursuing such a claim. All repairs shall, to the
extent reasonably achievable, be at least equivalent in quality to the original work. Lessee will not take or omit to take any action, the taking or omission of which might materially impair the value or the usefulness of the Leased Property or any
part thereof for its Primary Intended Use. 
  

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 (b) Notwithstanding Lessee’s obligations under Subsection 9.1(a) above, except to the extent of
damage caused by Lessee’s negligence or willful misconduct or that of its employees or agents, Lessor shall be required to bear the cost of maintaining any underground utilities and the structural elements of the Leased Improvements, including
exterior walls and the roof of the Hotel (but excluding windows and plate glass, mechanical, electrical and plumbing systems and equipment, including conduit and ductware, and non-load bearing walls, and parking lot surfaces). Except as set forth in
the preceding sentence and in Section 10.5, Lessor shall not under any circumstances be required to build or rebuild any improvement on the Leased Property, or to make any repairs, replacements, alterations, restorations or renewals of any
nature or description to the Leased Property, whether ordinary or extraordinary, foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto, in connection with this Lease, or to maintain the Leased Property in any way. Lessee
hereby waives, to the extent permitted by law, the right to make repairs at the expense of Lessor, pursuant to any law in effect at the time of the execution of this Lease or hereafter enacted, except following default by Lessor under this Lease, to
the extent of repairs (for which Lessor is obligated hereunder) required to be made in order for the Hotel, and Lessee’s use thereof, to comply with Lessee’s obligations under the Franchise Agreement and the Management Agreement. Lessor
shall have the right to give, record and post, as appropriate, notices of nonresponsibility under any mechanic’s lien laws now or hereafter existing. 
 (c) Nothing contained in this Lease and no action or inaction by Lessor shall be construed as (1) constituting the request of Lessor, expressed or implied, to any contractor, subcontractor, laborer, materialman
or vendor to or for the performance of any labor or services or the furnishing of any materials or other property for the construction, alteration, addition, repair or demolition of or to the Leased Property or any part thereof, or (2) giving
Lessee any right, power or permission to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any claim against Lessor in respect thereof
or to make any agreement that may create, or in any way be the basis for any right, title, interest, lien, claim or other encumbrance upon the estate of Lessor in the Leased Property, or any portion thereof. 
 9.2. Encroachments, Restrictions, Etc. Lessor represents and warrants that the Leased Improvements do not materially encroach upon any property,
street or right-of-way adjacent to the Leased Property, or violate the agreements or conditions contained in any lawful restrictive covenant or other agreement affecting the Leased Property, or any part thereof, or impair the rights of others under
any easement or right-of-way to which the Leased Property is subject. Except to the extent that such representation and warranty is breached by Lessor, if any of the Leased Improvements, at any time hereafter, materially encroach upon any property,
street or right-of-way adjacent to the Leased Property, or violate the agreements or conditions contained in any lawful restrictive covenant or other agreement affecting the Leased Property, or any part thereof, or impair the rights of others under
any easement or right-of-way to which the Leased Property is subject, then promptly upon the request of Lessor or at the behest of any Person affected by any such encroachment, violation or impairment, Lessee shall, at its expense, subject to its
right to contest the existence of any encroachment, violation or impairment and in such case, in the event of an adverse final determination, either (a) obtain valid and effective waivers or settlements of all claims, liabilities and damages
resulting from each such encroachment, violation or impairment, 

  

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whether the same shall affect Lessor or Lessee or (b) make such changes in the Leased Improvements, and take such other actions, as Lessee in the good
faith exercise of its judgment deems reasonably practicable to remove such encroachment, and to end such violation or impairment, including, if necessary, the alteration of any of the Leased Improvements, and in any event take all such actions as
may be necessary in order to be able to continue the operation of the Leased Improvements for the Primary Intended Use substantially in the manner and to the extent the Leased Improvements were operated prior to the assertion of such violation,
impairment or encroachment. Any such alteration shall be made in conformity with the applicable requirements of Article 10. Lessee’s obligations under this Section 9.2 shall be in addition to and shall in no way discharge or diminish any
obligation of any insurer under any policy of title or other insurance held by Lessor. 
 ARTICLE 10 
 ALTERATIONS AND IMPROVEMENTS; FF&E RESERVE 
 10.1. Alterations. After receiving approval of Lessor, which approval shall not be unreasonably withheld or delayed, Lessee shall have the right to make such additions, modifications or improvements to the Leased Property from time
to time as Lessee deems desirable for its permitted uses and purposes, provided that such action will not significantly alter the character or purposes or significantly detract from the value or operating efficiency thereof and will not
significantly impair the revenue-producing capability of the Leased Property or adversely affect the ability of Lessee to comply with the provisions of this Lease. The cost of such additions, modifications or improvements to the Leased Property
shall be paid by Lessee, and all such additions, modifications and improvements shall, without payment by Lessor at any time, be included under the terms of this Lease and upon expiration or earlier termination of this Lease shall pass to and become
the property of Lessor. 
 10.2. Salvage. All materials which are scrapped or removed in connection with the making of repairs
required by Articles 9 or 10 shall be or become the property of Lessor or Lessee depending on which party is paying for or providing the financing for such work. 
 10.3. Joint Use Agreements. If Lessee constructs additional improvements that are connected to the Leased Property or share maintenance facilities, HVAC, electrical, plumbing or other systems, utilities,
parking or other amenities, the parties shall enter into a mutually agreeable cross-easement or joint use agreement, the form of which has been approved in advance by Lessor, to make available necessary services and facilities in connection with
such additional improvements, to protect each of their respective interests in the properties affected, and to provide for separate ownership, use, and/or financing of such improvements. 
 10.4. [Reserved]. 
 10.5.
Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or
refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be 

  

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made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management
Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with
the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the
extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have
accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease. 
 ARTICLE 11 
 COMPLIANCE WITH
FRANCHISE 
 11.1. Compliance with Franchise Agreement and Management Agreement. To the extent any of the provisions of the
Franchise Agreement or Management Agreement impose a greater obligation on Lessee than the corresponding provisions of the Lease, then Lessee shall be obligated to comply with, and to take all reasonable actions necessary to prevent breaches or
defaults under, the provisions of the Franchise Agreement and the Management Agreement. It is the intent of the parties hereto that Lessee shall comply in every respect with the provisions of the Franchise Agreement and the Management Agreement so
as to avoid any material default thereunder during the term of this Lease. Lessee shall not terminate, extend or enter into any material modification of the Franchise Agreement or the Management Agreement without in each instance first obtaining
Lessor’s prior written consent, which shall not be unreasonably withheld. Lessor and Lessee agree to cooperate with each other in the event it becomes necessary to obtain a franchise extension or modification (or, at Lessor’s option, a new
franchise) for the Leased Property, and in any transfer of the Franchise Agreement or Management Agreement to Lessor or any designee of Lessor or any successor to Lessee upon the termination of this Lease. In the event of expiration or termination
of a Franchise Agreement or Management Agreement, for whatever reason, Lessor will have the right, in the exercise of its sole discretion, to approve any new Franchise Agreement or Management Agreement for the Hotel. 
 ARTICLE 12 
 PERMITTED LIENS
AND CONTESTS 
 12.1. Liens. Subject to the provisions of Section 12.2 relating to permitted contests, Lessee will not
directly or indirectly create or allow to remain and will promptly discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon the Leased Property or any attachment, levy, claim or encumbrance in respect of
the Rent, not including, however, (a) this Lease, (b) the matters included as exceptions in the title policy insuring Lessor’s interest in the Leased Property, (c) restrictions, liens and other encumbrances which are consented to
in writing by Lessor or any easements granted pursuant to the provisions of Section 7.3 of this Lease, (d) liens for those taxes upon Lessor or the Leased Property which Lessee is not required to pay hereunder, (e) subleases permitted by
Article 20 hereof, (f) liens for Impositions or for sums 

  

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resulting from noncompliance with Legal Requirements so long as (1) the same are not yet payable or are payable without the addition of any fine or
penalty or (2) such liens are in the process of being contested as permitted by Section 12.2, (g) liens of mechanics, laborers, materialmen, suppliers or vendors for sums either disputed or not yet due provided that (1) the
payment of such sums shall not be postponed under any related contract for more than sixty (60) days after the completion of the action giving rise to such lien and such reserve or other appropriate provisions as shall be required by law or
generally accepted accounting principles shall have been made therefor or (2) any such liens are in the process of being contested as permitted by Section 12.2 hereof, and (h) any liens which are the responsibility of Lessor pursuant
to the provisions of Article 22 of this Lease. 
 12.2. Permitted Contests. Lessee shall have the right to contest the amount or
validity of any Imposition to be paid by Lessee or any Legal Requirement or Insurance Requirement or any lien, attachment, levy, encumbrance, charge or claim (“Claims”) not otherwise permitted by Section 12.1, by appropriate legal
proceedings in good faith and with due diligence (but this shall not be deemed or construed in any way to relieve, modify or extend Lessee’s covenants to pay or its covenants to cause to be paid any such charges at the time and in the manner as
in this Section provided), on condition, however, that such legal proceedings shall not operate to relieve Lessee from its obligations hereunder and shall not cause the sale or risk the loss of any portion of the Leased Property, or any part
thereof, or cause Lessor or Lessee to be in default under any mortgage, deed of trust, security deed or other agreement encumbering the Leased Property or any interest therein. Upon the request of Lessor, Lessee shall either (a) provide a bond
or other assurance reasonably satisfactory to Lessor that all Claims which may be assessed against the Leased Property together with interest and penalties, if any, thereon will be paid, or (b) deposit within the time otherwise required for
payment with a bank or trust company as trustee upon terms reasonably satisfactory to Lessor, as security for the payment of such Claims, money in an amount sufficient to pay the same, together with interest and penalties in connection therewith, as
to all Claims which may be assessed against or become a Claim on the Leased Property, or any part thereof, in said legal proceedings. Lessee shall furnish Lessor and any lender of Lessor with reasonable evidence of such deposit within five
(5) days of the same. Lessor agrees to join in any such proceedings if the same be required legally to prosecute such contest of the validity of such Claims; provided, however, that Lessor shall not thereby be subjected to any liability or loss
for the payment of any costs or expenses in connection with any proceedings brought by Lessee; and Lessee covenants to indemnify and save harmless Lessor from any such liabilities, losses, costs or expenses. Lessee shall be entitled to any refund of
any Claims and such charges and penalties or interest thereon which have been paid by Lessee or paid by Lessor and for which Lessor has been fully reimbursed. In the event that Lessee fails to pay any Claims when due or to provide the security
therefor as provided in this Section and diligently to prosecute any contest of the same, Lessor may, upon ten (10) days’ advance Notice to Lessee, and Lessee’s failure to correct the same within such ten (10) day period, pay
such charges together with any interest and penalties and the same shall be repayable by Lessee to Lessor as Additional Charges at the next Payment Date provided for in this Lease; provided, however, that should Lessor reasonably determine that the
giving of such Notice would risk loss to the Leased Property or cause damage to Lessor, then Lessor shall give such Notice as is practical under the circumstances. Lessor reserves the right to contest any of the Claims at its expense not pursued by
Lessee. Lessor and Lessee agree to cooperate in coordinating the contest of any Claims. 
  

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 ARTICLE 13 
 INSURANCE REQUIREMENTS 
 13.1. General Insurance Requirements. During the Term of this Lease,
Lessor and Lessee shall at all times keep the Leased Property insured with the kinds and amounts of insurance described below, or such other insurance coverage(s) as may be required by the Franchise Agreement. This insurance shall be written by
companies authorized to issue insurance in the State. The policies must name Lessor and/or Lessee, as applicable, as the insured or as an additional named insured, as the case may be. Losses shall be payable to Lessor or Lessee as provided in this
Lease. Any loss adjustment shall require the written consent of Lessor and Lessee, each acting reasonably and in good faith. Evidence of insurance shall be deposited with Lessor. The policies on the Leased Property, including the Leased
Improvements, Fixtures and Lessee’s Personal Property, shall include the following: 
 (a) Lessor shall obtain and maintain, at its own
expense: 
 (i) Building insurance on the “Special Form” (formerly “All Risk” form) (including earthquake
and flood in reasonable amounts as determined by Lessor) in an amount not less than 100% of the then full replacement cost thereof (as defined in Section 13.2) or such other amount which is acceptable to Lessor and Lessee, and personal property
insurance (on other than Lessee’s Personal Property) on the “Special Form” in the full amount of the replacement cost thereof; 
 (ii) Insurance for loss or damage (direct and indirect) from steam boilers, pressure vessels or similar apparatus, now or hereafter installed in the Hotel, in the minimum amount of $5,000,000 or in such greater
amounts as are then customary; and 
 (iii) Loss of income insurance on the “Special Form”, in the amount of one
year of Base Rent and Additional Charges (to the extent quantifiable) for the benefit of Lessor. 
 (b) Lessee shall obtain and maintain, at
its own expense: 
 (i) Personal property insurance on Lessee’s Personal Property on the “Special Form” in the
full amount of the replacement cost thereof; 
 (ii) Comprehensive general liability insurance, with amounts not less than
$10,000,000 covering each of the following: bodily injury, death, or property damage liability per occurrence, personal and advertising injury, general aggregate, products and completed operations, with respect to Lessor, and “all risk legal
liability” (including liquor law or “dram shop” liability, if liquor or alcoholic beverages are served on the Leased Property) with respect to Lessor and Lessee; 
  

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 (iii) Insurance covering such other hazards and in such amounts as may be customary for
comparable properties in the area of the Leased Property and is available from insurance companies, insurance pools or other appropriate companies authorized to do business in the State at rates which are economically practicable in relation to the
risks covered, as may be reasonably requested by Lessor; 
 (iv) Fidelity bonds with limits and deductibles as may be
reasonably requested by Lessor, covering Lessee’s employees in job classifications normally bonded under prudent hotel management practices in the United States or otherwise required by law; 
 (v) Worker’s compensation insurance coverage for all persons, if any, employed by Lessee on the Leased Premises, to the extent
necessary to protect Lessor and the Leased Property against Lessee’s worker’s compensation claims, such worker’s compensation insurance to be in accordance with the requirements of applicable local, state and federal law; 

(vi) Vehicle liability insurance for owned, non-owned, and hired vehicles, in the amount of $5,000,000; and 
 (vii) Such other insurance as Lessor may reasonably request for facilities such as the Leased Property and the operation thereof.

 13.2. Replacement Cost. The term “full replacement cost” as used herein shall mean the actual replacement cost of the
Leased Property requiring replacement from time to time including an increased cost of construction endorsement, if available, and the cost of debris removal. In the event either party believes that full replacement cost (the then-replacement cost
less such exclusions) has increased or decreased at any time during the Lease Term, it shall have the right to have such full replacement cost re-determined. 
 13.3. Waiver of Subrogation. All insurance policies carried by Lessor or Lessee covering the Leased Property, the Fixtures, the Hotel or Lessee’s Personal Property, including, without limitation, contents,
fire and casualty insurance, shall expressly waive any right of subrogation on the part of the insurer against the other party. The parties hereto agree that their policies will include such waiver clause or endorsement so long as the same are
obtainable without extra cost, and in the event of such an extra charge the other party, at its election, may pay the same, but shall not be obligated to do so. 
 13.4. Form Satisfactory, Etc. 
 (a) All of the policies of insurance referred to in this Article 13 to
be maintained by Lessee shall be written in a form, with deductibles and by insurance companies satisfactory to Lessor. Lessee shall pay all of the premiums therefor, and deliver such policies or certificates thereof to Lessor prior to their
effective date (and, with respect to any renewal policy, thirty (30) days prior to the expiration of the existing policy), and in the event of the failure of Lessee either to effect such insurance as herein called for or to pay the premiums
therefor, or to deliver such 

  

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policies or certificates thereof to Lessor at the times required, Lessor shall be entitled, but shall have no obligation, to effect such insurance and pay
the premiums therefor, and Lessee shall reimburse Lessor for any premium or premiums paid by Lessor for the coverages required of Lessee under this Article 13 upon written demand therefor, and Lessee’s failure to repay the same within thirty
(30) days after Notice of such failure from Lessor shall constitute an Event of Default within the meaning of Section 16.1. Each insurer mentioned in this Article 13 shall agree, by endorsement to the policy or policies issued by it, or by
independent instrument furnished to Lessor, that it will give to Lessor thirty (30) days’ written notice before the policy or policies in question shall be materially altered, allowed to expire or canceled. 
 (b) All of the policies of insurance referred to in this Article 13 to be maintained by Lessor shall be written in a form, with deductibles and by
insurance companies satisfactory to Lessee. Lessor shall pay all of the premiums therefor, and deliver such policies or certificates thereof to Lessee prior to their effective date (and, with respect to any renewal policy, thirty (30) days
prior to the expiration of the existing policy), and in the event of the failure of Lessor either to effect such insurance as herein called for or to pay the premiums therefor, or to deliver such policies or certificates thereof to Lessee at the
times required, Lessee shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor, and Lessor shall reimburse Lessee for any premium or premiums paid by Lessee for the coverages required under this
Section upon written demand therefor. Each insurer mentioned in this Article 13 shall agree, by endorsement to the policy or policies issued by it, or by independent instrument furnished to Lessee, that it will give to Lessee thirty
(30) days’ written notice before the policy or policies in question shall be materially altered, allowed to expire or canceled. 
 13.5. Increase in Limits. If either Lessor or Lessee at any time deems the limits of the personal injury or property damage under the comprehensive public liability insurance then carried to be either excessive or insufficient,
Lessor and Lessee shall endeavor in good faith to agree on the proper and reasonable limits for such insurance to be carried and such insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the
provisions of this Article 13. 
 13.6. Blanket Policy. Notwithstanding anything to the contrary contained in this Article 13. Lessee
or Lessor may bring the insurance provided for herein within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Lessee (or Manager) or Lessor; provided, however, that the coverage afforded to Lessor and
Lessee will not be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason of the use of such blanket policy of insurance, and provided further that
the requirements of this Article 13 are otherwise satisfied. 
 13.7. No Separate Insurance. Lessee shall not, on Lessee’s own
initiative or pursuant to the request or requirement of any third party, take out separate insurance concurrent in form or contributing in the event of loss with that required in this Article to be furnished, or increase the amount of any then
existing insurance by securing an additional policy or additional policies, unless all parties having an insurable interest in the subject matter of the insurance, including in all cases Lessor, are included therein as additional insured, and the
loss is payable under such additional separate insurance in the same manner as losses are payable under this Lease. Lessee shall immediately notify Lessor of any such separate insurance that Lessee has obtained or of the increase of any of the
amounts of the then existing insurance. 
  

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 13.8. Reports On Insurance Claims. Lessee shall promptly investigate and make a complete and
timely written report to the appropriate insurance company as to all accidents, claims for damage relating to the ownership, operation, and maintenance of the Hotel, any damage or destruction to the Hotel and the estimated cost of repair thereof and
shall prepare any and all reports required by any insurance company in connection therewith. All such reports shall be timely filed with the insurance company as required under the terms of the insurance policy involved, and a final copy of such
report shall be furnished to Lessor. Lessee shall be authorized to adjust, settle, or compromise any insurance loss, or to execute proofs of such loss, in the aggregate amount of $25,000 or less, with respect to any single casualty or other event.

 ARTICLE 14 
 CASUALTY INSURANCE PROCEEDS; RECONSTRUCTION 
 14.1. Insurance Proceeds. Subject to the provisions of
Section 14.4, all proceeds payable by reason of any loss or damage to the Leased Property, or any portion thereof, insured under any policy of insurance required by Article 13 of this Lease, shall be paid to Lessor and held in trust by Lessor
in an interest-bearing account, shall be made available, if applicable, for reconstruction or repair, as the case may be, of any damage to or destruction of the Leased Property, or any portion thereof, and, if applicable, shall be paid out by Lessor
from time to time for the reasonable costs of such reconstruction or repair upon satisfaction of reasonable terms and conditions specified by Lessor. Any excess proceeds of insurance (and accrued interest) remaining after the completion of the
restoration or reconstruction of the Leased Property, as hereinafter set forth, shall be paid to Lessee. If neither Lessor nor Lessee is required or elects to repair and restore, and the Lease is terminated without purchase by Lessee as described in
Section 14.2, all such insurance proceeds shall be retained by Lessor. All salvage resulting from any risk covered by insurance shall belong to Lessor. 
 14.2. Reconstruction in the Event of Damage or Destruction Covered by Insurance. 
 (a) Except as
provided in Section 14.6, if during the Term the Leased Property is totally or partially destroyed by a risk covered by the insurance described in Article 13 and the Hotel thereby is rendered Unsuitable for its Primary Intended Use, Lessee
shall, at Lessee’s option, either (1) restore the Hotel to substantially the same condition as existed immediately before the damage or destruction and otherwise in accordance with the terms of the Lease, or (2) offer to acquire the
Leased Property from Lessor for a purchase price equal to the Rejectable Offer Price of the Leased Property. If Lessee restores the Hotel, the insurance proceeds shall be paid out by Lessor from time to time for the reasonable costs of such
restoration upon satisfaction of reasonable terms and conditions, and any excess proceeds remaining after such restoration shall be paid to Lessee. If Lessee acquires the Leased Property, Lessee shall receive the insurance proceeds. If Lessor does
not accept Lessee’s offer so to purchase the Leased Property within ninety (90) days, Lessee may withdraw its offer to purchase the Leased Property and, if so withdrawn, Lessee may terminate the Lease with respect to the Leased Property
without further liability hereunder and Lessor shall be entitled to retain all insurance proceeds. 
  

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 (b) Except as provided in Section 14.6, if during the Term the Leased Property is partially
destroyed by a risk covered by the insurance described in Article 13, but the Hotel is not thereby rendered Unsuitable for its Primary Intended Use, Lessee shall restore the Hotel to substantially the same condition as existed immediately before the
damage or destruction and otherwise in accordance with the terms of the Lease. Such damage or destruction shall not terminate this Lease; provided, however, that if Lessee cannot within a reasonable time obtain all necessary government approvals,
including building permits, licenses and conditional use permits, after diligent efforts to do so, to perform all required repair and restoration work and to operate the Hotel for its Primary Intended Use in substantially the same manner as that
existing immediately prior to such damage or destruction and otherwise in accordance with the terms of the Lease, Lessee may offer to purchase the Leased Property for a purchase price equal to the Rejectable Offer Price of the Leased Property,
determined without regard to such damage or destruction if insurance proceeds are available to restore the Hotel. If Lessee makes such offer and Lessor does not accept the same, Lessee shall withdraw such offer, in which event this Lease shall
remain in full force and effect and Lessee shall immediately proceed to restore the Hotel to substantially the same condition as existed immediately before such damage or destruction and otherwise in accordance with the terms of the Lease. If Lessee
restores the Hotel, the insurance proceeds shall be paid out by Lessor from time to time for the reasonable costs of such restoration upon satisfaction of reasonable terms and conditions specified by Lessor, and any excess proceeds remaining after
such restoration shall be paid to Lessee. 
 (c) If the cost of the repair or restoration exceeds the amount of proceeds received by Lessor
from the insurance it maintains as required under Article 13, Lessee shall be obligated to contribute any excess amounts needed to restore the Hotel. Such difference shall be paid by Lessee to Lessor promptly after Lessee receives Lessor’s
written invoice therefor, to be held in trust in an interest-bearing account, together with any other insurance proceeds, for application to the cost of repair and restoration. 
 (d) If Lessor accepts Lessee’s offer to purchase the Leased Property under this Article, this Lease shall terminate as to the Leased Property upon
payment of the purchase price, and Lessor shall remit to Lessee all insurance proceeds pertaining to the Leased Property being held in trust by Lessor. 
 14.3. Reconstruction in the Event of Damage or Destruction Not Covered by Insurance. Except as provided in Section 14.6, if during the Term the Hotel is totally or materially destroyed by a risk not
covered by the insurance described in Article 13, whether or not such damage or destruction renders the Hotel Unsuitable for its Primary Intended Use, Lessee at its option shall either, (a) at Lessee’s sole cost and expense, restore the
Hotel to substantially the same condition it was in immediately before such damage or destruction and such damage or destruction shall not terminate this Lease, or (b) offer to purchase the Leased Property for a purchase price equal to the
Rejectable Offer Price of the Leased Property without regard to such damage or destruction. If such damage or destruction is not material, Lessee shall restore the Hotel to substantially the same condition as existed immediately before the damage or
destruction and otherwise in accordance with the terms of the Lease. If Lessor does not accept Lessee’s offer so to purchase the Leased Property within ninety (90) days, Lessee may withdraw its offer to purchase the Leased Property and, if
so withdrawn, Lessee may terminate the Lease with respect to the Leased Property without further liability hereunder. 
  

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 14.4. Lessee’s Property. All insurance proceeds payable by reason of any loss of or damage to
any of Lessee’s Personal Property shall be paid to Lessee; provided, however, no such payments shall diminish or reduce the insurance payments otherwise payable to or for the benefit of Lessor hereunder. 
 14.5. Abatement of Rent. Any damage or destruction due to casualty notwithstanding, this Lease shall remain in full force and effect and
Lessee’s obligation to make rental payments and to pay all other charges required by this Lease shall remain unabated during the first three (3) months of any period required for the applicable repair and restoration. Thereafter, Base Rent
shall be equitably abated. 
 14.6. Damage Near End of Term. Notwithstanding any provisions of Section 14.2 or 14.3 appearing to
the contrary, if damage to or destruction of the Hotel rendering it unsuitable for its Primary Intended Use occurs during the last twenty-four (24) months of the Term, then Lessor or Lessee shall have the right to terminate this Lease by giving
Notice, respectively, to Lessee or Lessor within thirty (30) days after the date of damage or destruction, whereupon all accrued Rent shall be paid immediately, and this Lease shall automatically terminate five (5) days after the date of
such Notice. 
 14.7. Waiver. Lessee hereby waives any statutory rights of termination that may arise by reason of any damage or
destruction of the Hotel that Lessor is obligated to restore or may restore under any of the provisions of this Lease. 
 ARTICLE 15

 CONDEMNATION; AWARD ALLOCATION 
 15.1. Definitions. 
 (a) “Award” means all compensation, sums or anything of value
awarded, paid or received on a total or partial Condemnation. 
 (b) “Condemnation” means a Taking resulting from
(1) the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor, and (2) a voluntary sale or transfer by Lessor to any Condemnor, either under threat of condemnation or while legal proceedings for
condemnation are pending. 
 (c) “Condemnor” means any public or quasi-public authority, or private corporation or
individual, having the power of Condemnation. 
 (d) “Date of Taking” means the date the Condemnor has the right to
possession of the property being condemned. 
  

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 15.2. Parties’ Rights and Obligations. If during the Term there is any Condemnation of all or
any part of the Leased Property or any interest in this Lease, the rights and obligations of Lessor and Lessee shall be determined by this Article 15. 
 15.3. Total Taking If title to the fee of the whole of the Leased Property is condemned by any Condemnor, this Lease shall cease and terminate as of the Date of Taking by the Condemnor. If title to the fee of
less than the whole of the Leased Property is so taken or condemned, which nevertheless renders the Leased Property Unsuitable or Uneconomic for its Primary Intended Use, Lessee and Lessor shall each have the option, by Notice to the other, at any
time prior to the Date of Taking, to terminate this Lease as of the Date of Taking. Upon such date, if such Notice has been given, this Lease shall thereupon cease and terminate. All Base Rent, Percentage Rent and Additional Charges paid or payable
by Lessee hereunder shall be apportioned as of the Date of Taking, and Lessee shall promptly pay Lessor such amounts. 
 15.4. Allocation
of Award. The total Award made with respect to the Leased Property or for loss of rent, or for Lessor’s loss of business beyond the Term, shall be solely the property of and payable to Lessor. Any Award made for loss of Lessee’s
business during the remaining Term, if any, for the taking of Lessee’s Personal Property, or for removal and relocation expenses of Lessee in any such proceedings shall be the sole property of and payable to Lessee. In any Condemnation
proceedings Lessor and Lessee shall each seek its Award in conformity herewith, at its respective expense; provided, however, Lessee shall not initiate, prosecute or acquiesce in any proceedings that may result in a diminution of any Award payable
to Lessor. 
 15.5. Partial Taking. If title to less than the whole of the Leased Property is condemned, and the Leased Property is
not Unsuitable for its Primary Intended Use, and not Uneconomic for its Primary Intended Use, or if Lessee or Lessor is entitled but neither elects to terminate this Lease as provided in Section 15.3, Lessee at its cost shall with all
reasonable dispatch restore the untaken portion of any Leased Improvements so that such Leased Improvements constitute a complete architectural unit of the same general character and condition (as nearly as may be possible under the circumstances)
as the Leased Improvements existing immediately prior to the Condemnation. Lessor shall contribute to the cost of restoration that part of its Award specifically allocated to such restoration, if any, together with severance and other damages
awarded for the taken Leased Improvements; provided, however, that the amount of such contribution shall not exceed such cost. In the event of such a partial Taking, this Lease shall not terminate, but the Base Rent shall be abated in the manner and
to the extent that is fair, just and equitable to both Lessee and Lessor, taking into consideration, among other relevant factors, the number of usable rooms, the amount of square footage, or the revenues affected by such partial Taking. If Lessor
and Lessee are unable to agree upon the amount of such abatement within thirty (30) days after such partial Taking, the matter may be submitted by either party to a court of competent jurisdiction for resolution. 
 15.6. Temporary Taking. If the whole or any part of the Leased Property (other than the fee) or of Lessee’s interest under this Lease is
condemned by any Condemnor for its temporary use or occupancy (which shall mean a period not to exceed two years), this Lease shall not terminate by reason thereof, and Lessee shall continue to pay, in the manner and at the terms herein specified,
the full amounts of Base Rent and Additional Charges. In addition, Lessee shall pay Percentage Rent at a rate equal to the average Percentage Rent during the last three (3) preceding Fiscal Years 

  

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(or if three (3) Fiscal Years shall not have elapsed, the average during the preceding Fiscal Years). Except only to the extent that Lessee may be
prevented from so doing pursuant to the terms of the order of the Condemnor, Lessee shall continue to perform and observe all of the other terms, covenants, conditions and obligations hereof on the part of Lessee to be performed and observed, as
though such Condemnation had not occurred. In the event of any Condemnation as in this Section 15.6 described, the entire amount of any Award made for such Condemnation allocable to the Term of this Lease, whether paid by way of damages, rent
or otherwise, shall be paid to Lessee. Lessee covenants that upon the termination of any such period of temporary use or occupancy it will, at its sole cost and expense (subject to Lessor’s contribution as set forth below), restore the Leased
Property as nearly as may be reasonably possible to the condition in which the same was immediately prior to such Condemnation, unless such period of temporary use or occupancy extends beyond the expiration of the Term, in which case Lessee shall
not be required to make such restoration. If restoration is required hereunder, Lessor shall contribute to the cost of such restoration that portion of its entire Award that is specifically allocated to such restoration in the judgment or order of
the court, if any, and Lessee shall fund the balance of such costs in a manner reasonably satisfactory to Lessor. 
 ARTICLE 16 

 DEFAULT BY LESSEE; LESSOR’S REMEDIES 
 16.1. Events of Default. If any one or more of the following events (individually, an “Event of Default”) occurs: 
 (a) if an Event of Default occurs under any other lease between Lessor or any Affiliate of Lessor and Lessee or any Affiliate of Lessee; or 
 (b) if Lessee fails to make payment of the Base Rent within ten (10) days after the same becomes due and payable; or 
 (c) if Lessee fails to make payment of Percentage Rent when the same becomes due and payable and such condition continues for a period of thirty
(30) days after the end of the applicable quarter; or 
 (d) if Lessee fails to observe or perform any other term, covenant or condition
of this Lease and such failure is not cured by Lessee within a period of thirty (30) days after receipt by Lessee of Notice thereof from Lessor, unless such failure cannot with due diligence be cured within a period of thirty (30) days, in
which case it shall not be deemed an Event of Default if Lessee proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof provided, however, in no event shall such cure period extend beyond ninety
(90) days after such Notice; or 
 (e) if Lessee shall file a petition in bankruptcy or reorganization for an arrangement pursuant to
any federal or state bankruptcy law or any similar federal or state law, or shall be adjudicated a bankrupt or shall make an assignment for the benefit of creditors or shall admit in writing its inability to pay its debts generally as they become
due, or if a petition or answer proposing the adjudication of Lessee as a bankrupt or its reorganization pursuant to any federal or 

  

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state bankruptcy law or any similar federal or state law shall be filed in any court and Lessee shall be adjudicated a bankrupt and such adjudication shall
not be vacated or set aside or stayed within sixty (60) days after the entry of an order in respect thereof, or if a receiver of Lessee or of the whole or substantially all of the assets of Lessee shall be appointed in any proceeding brought by
Lessee or if any such receiver, trustee or liquidator shall be appointed in any proceeding brought against Lessee and shall not be vacated or set aside or stayed within sixty (60) days after such appointment; or 
 (f) if Lessee is liquidated or dissolved, or begins proceedings toward such liquidation or dissolution, or, in any manner, permits the sale or
divestiture of substantially all of its assets; or 
 (g) if, except as expressly permitted herein, the estate or interest of Lessee in the
Leased Property or any part thereof is voluntarily or involuntarily transferred, assigned, conveyed, levied upon or attached in any proceeding (unless Lessee is contesting such lien or attachment in good faith in accordance with Section 12.2
hereof) or there is a Change of Control of Lessee; or 
 (h) if, except as a result of damage, destruction or a partial or complete
Condemnation as contemplated by this Lease, Lessee voluntarily ceases operations on the Leased Property for a period in excess of thirty (30) days; or 
 (i) if an event of default has been declared by the franchisor under the Franchise Agreement with respect to the Hotel as a result of any action or failure to act by Lessee or any Person with whom Lessee contracts for
management services at the Hotel, and such default is not cured by the earlier of (A) ten (10) days following notice from Lessor or (B) such earlier date as is required for Lessee to avoid termination of the Franchise Agreement by the
franchisor; 
 then, and in any such event, Lessor may exercise one or more remedies available to it herein or at law or in equity, including but not limited
to its right to terminate this Lease by giving Lessee not less than ten (10) days’ Notice of such termination. 
 If litigation is
commenced with respect to any alleged default under this Lease, the prevailing party in such litigation shall receive, in addition to its damages incurred, such sum as the court shall determine as its reasonable attorneys’ fees, and all costs
and expenses incurred in connection therewith. 
 No Event of Default (other than a failure to make a payment of money) shall be deemed to
exist under clause (d) during any time the curing thereof is prevented by an Unavoidable Delay, provided that upon the cessation of such Unavoidable Delay, Lessee remedies such default or Event of Default without further delay. 
 16.2. Surrender. If an Event of Default occurs (and the event giving rise to such Event of Default has not been cured within the curative period
relating thereto as set forth in Section 16.1) and is continuing, whether or not this Lease has been terminated pursuant to Section 16.1, Lessee shall, if requested by Lessor so to do, immediately surrender to Lessor the Leased Property
including, without limitation, any and all books, records, files, licenses, permits and keys relating 

  

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thereto, and quit the same and Lessor may enter upon and repossess the Leased Property by summary proceedings, ejectment or otherwise, and may remove Lessee
and all other Persons and any and all personal property from the Leased Property, subject to rights of any hotel guests and to any requirement of law. Lessee hereby waives any and all requirements of applicable laws for service of notice to re-enter
the Leased Property. Lessor shall be under no obligation to, but may if it so chooses, relet the Leased Property or otherwise mitigate Lessor’s damages. 
 16.3. Damages. Neither (a) the termination of this Lease, (b) the repossession of the Leased Property, (c) the failure of Lessor to relet the Leased Property, nor (d) the reletting of all or
any portion thereof, shall relieve Lessee of its liability and obligations hereunder, all of which shall survive any such termination, repossession or reletting. In the event of any such termination, Lessee shall forthwith pay to Lessor all Rent due
and payable with respect to the Leased Property to and including the date of such termination. 
 Lessee shall forthwith pay to Lessor, at
Lessor’s option, as and for liquidated and agreed current damages for Lessee’s default, either: 
 (i) Without
termination of Lessee’s right to possession of the Leased Property, each installment of Rent (including Percentage Rent as determined below) and other sums payable by Lessee to Lessor under the Lease as the same becomes due and payable, which
Rent and other sums shall bear interest at the Overdue Rate, and Lessor may enforce, by action or otherwise, any other term or covenant of this Lease; or 
 (ii) the sum of: 
 (A) the unpaid Rent which had been earned at the time of termination,
repossession or reletting, and 
 (B) the worth at the time of termination, repossession or reletting of the amount by which
the unpaid Rent for the balance of the Term after the time of termination, repossession or reletting, exceeds the amount of such rental loss that Lessee proves could be reasonably avoided and as reduced for rentals received after the time of
termination, repossession or reletting, if and to the extent required by applicable law, and 
 (C) any other amount necessary
to compensate Lessor for all the detriment proximately caused by Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of things, would be likely to result therefrom. 
 The worth at the time of termination, repossession or reletting of the amount referred to in subparagraph (B) is computed by discounting such amount
at the discount rate of the Federal Reserve Bank of New York at the time of award plus one percent (1%). Percentage Rent for the purposes of this Section 16.3 shall be a sum equal to (i) the average of the annual amounts of the Percentage
Rent for the three (3) Fiscal Years immediately preceding the Fiscal Year in 

  

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which the termination, re-entry or repossession takes place, or (ii) if three (3) Fiscal Years shall not have elapsed, the average of the
Percentage Rent during the preceding Fiscal Years during which the Lease was in effect, or (iii) if one Fiscal Year has not elapsed, the amount derived by annualizing the Percentage Rent from the effective date of this Lease. 
 16.4. Waiver. If this Lease is terminated pursuant to Section 16.1, Lessee waives, to the extent permitted by applicable law, (a) any
right to a trial by jury in the event of summary proceedings to enforce the remedies set forth in this Article 16, and (b) the benefit of any laws now or hereafter in force exempting property from liability for rent or for debt and Lessor
waives any right to “pierce the corporate veil” of Lessee other than to the extent funds shall have been fraudulently paid by Lessee to any Affiliate of Lessee following a default resulting in an Event of Default. 
 16.5. Application of Funds. Any payments received by Lessor under any of the provisions of this Lease during the existence or continuance of any
Event of Default shall be applied to Lessee’s obligations in the order that Lessor may determine or as may be prescribed by the laws of the State. 
 16.6. Lessor’s Right to Cure Lessee’s Default. If Lessee fails to make any payment or to perform any act required to be made or performed under this Lease, including, without limitation, Lessee’s
failure to comply with the terms of any Franchise Agreement, and fails to cure the same within the relevant time periods provided in Section 16.1, Lessor, without waiving or releasing any obligation of Lessee, and without waiving or releasing
any obligation or default, may (but shall be under no obligation to) at any time thereafter make such payment or perform such act for the account and at the expense of Lessee, and may, to the extent permitted by law, enter upon the Leased Property
for such purpose and, subject to Section 16.4, take all such action thereon as, in Lessor’s opinion, may be necessary or appropriate therefor. No such entry shall be deemed an eviction of Lessee. All sums so paid by Lessor and all costs
and expenses (including, without limitation, reasonable attorneys’ fees and expenses, in each case to the extent permitted by law) so incurred, together with a late charge thereon (to the extent permitted by law) at the Overdue Rate from the
date on which such sums or expenses are paid or incurred by Lessors, shall be paid by Lessee to Lessor on demand. The obligations of Lessee and rights of Lessor contained in this Article shall survive the expiration or earlier termination of this
Lease. 
 ARTICLE 17 
 DEFAULT BY LESSOR; LESSEE’S REMEDIES 
 17.1. Breach by Lessor. It shall be a breach of this Lease if Lessor
fails to observe or perform any term, covenant or condition of this Lease on its part to be performed and such failure continues for a period of thirty (30) days after Notice thereof from Lessee, unless such failure cannot with due diligence be
cured within a period of thirty (30) days, in which case such failure shall not be deemed to continue if Lessor, within such thirty (30) day period, proceeds promptly and with due diligence to cure the failure and diligently completes the
curing thereof; provided, however, that such default shall be cured by Lessor in any event prior to the date on which the default becomes an event of default under the terms of the Franchise Agreement for the Hotel. The time within which Lessor
shall be obligated to cure any such failure also shall be subject to 

  

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extension of time due to the occurrence of any Unavoidable Delay. If Lessor fails to cure any such breach within the grace period described above, Lessee,
without waiving or releasing any obligations hereunder, and in addition to all other remedies available to Lessee at law or in equity, may purchase the Leased Property from Lessor for a purchase price equal to the then Fair Market Value. If Lessee
elects to purchase the Leased Property it shall deliver a Notice thereof to Lessor specifying a settlement date to occur not less than ninety (90) days subsequent to the date of such Notice on which it shall purchase the Leased Property, and
the same shall be thereupon conveyed in accordance with the provisions of Section 17.3; provided, however, that Lessor shall pay the cost of Lessee’s title insurance and all closing costs associated with such purchase by Lessee following
default by Lessor. 
 17.2. Lessee’s Right to Cure. Subject to the provisions of Section 17.1, if Lessor breaches any
covenant to be performed by it under this Lease, Lessee, after Notice to and demand upon Lessor, without waiving or releasing any obligation hereunder, and in addition to all other remedies available to Lessee, may (but shall be under no obligation
at any time thereafter to) make such payment or perform such act for the account and at the expense of Lessor. All sums so paid by Lessee and all costs and expenses (including, without limitation, reasonable attorneys’ fees) so incurred,
together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Lessee, shall be paid by Lessor to Lessee on demand or, following entry of a final, nonappealable judgment against Lessor for
such sums, may be offset by Lessee against the Base Rent and/or Percentage Rent payments next accruing or coming due. The rights of Lessee hereunder to cure and to secure payment from Lessor in accordance with this Section 17.2 shall survive
the termination of this Lease with respect to the Leased Property. 
 17.3. Provisions Relating to Purchase of the Leased Property by
Lessee. If Lessee purchases the Leased Property from Lessor pursuant to any of the terms of this Lease, Lessor shall, upon receipt from Lessee of the applicable purchase price, together with full payment of any unpaid Rent due and payable with
respect to any period ending on or before the date of the purchase, deliver to Lessee an appropriate limited or special warranty deed or other conveyance conveying the entire interest of Lessor in and to the Leased Property to Lessee free and clear
of all encumbrances other than (a) those that Lessee has agreed hereunder to pay or discharge, (b) those mortgage liens, if any, that Lessee has agreed in writing to accept and to take title subject to, (c) those liens and
encumbrances subject to which the Leased Property was conveyed to Lessor, to the extent not released in connection with the transactions contemplated by this Lease, (d) encumbrances, easements, licenses or rights of way required to be imposed
on the Leased Property under Section 7.3, and (e) any other encumbrances permitted to be imposed on the Leased Property under the provisions of Article 22 that are assumable at no cost to Lessee or to which Lessee may take subject without
cost to Lessee. The difference between the applicable purchase price and the total of the encumbrances assumed or taken subject to shall be paid in cash to Lessor or as Lessor may direct, in federal or other immediately available funds, except as
otherwise mutually agreed by Lessor and Lessee. All expenses of such conveyance, including, without limitation, the cost of title examination or title insurance, if desired by Lessee, Lessee’s attorneys’ fees incurred in connection with
such conveyance and release, and one-half of any transfer taxes and recording fees, shall be paid by Lessee. Lessor shall pay one-half of any transfer taxes and recording fees and its attorney’s fees. 
  

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 ARTICLE 18 
 INDEMNIFICATION 
 18.1. Indemnification. 
 (a) Notwithstanding the existence of any insurance, and without regard to the policy limits of any such insurance or self-insurance, but subject to
Section 13.3 and Section 8.3, Lessee will protect, indemnify, hold harmless and defend Lessor from and against all liabilities, losses, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses), to the extent permitted by law, imposed upon or incurred by or asserted against Lessor Indemnified Parties by reason of: (a) any accident, injury to or death of persons or loss of or
damage to property occurring on or about the Leased Property or adjoining sidewalks, including without limitation any claims under liquor liability, “dram shop” or similar laws, (b) any use, misuse, non-use, condition, management,
maintenance or repair by Lessee or any of its agents, employees or invitees of the Leased Property or Lessee’s Personal Property during the Term or any litigation, proceeding or claim by governmental entities or other third parties to which a
Lessor Indemnified Party is made a party or participant related to such use, misuse, non-use, condition, management, maintenance, or repair thereof by Lessee or any of its agents, employees or invitees, including any failure of lessee or any of its
agents, employees or invitees to perform any obligations under this Lease or imposed by applicable law (other than arising out of Condemnation proceedings), (c) any Impositions that are the obligations of Lessee pursuant to the applicable
provisions of this Lease, (d) any failure on the part of Lessee to perform or comply with any of the terms of this Lease, and (e) the non-performance of any of the terms and provisions of any and all existing and future subleases of the
Leased Property to be performed by the landlord thereunder. 
 (b) Notwithstanding the existence of any insurance, and without regard to the
policy limits of any such insurance or self-insurance, but subject to Section 13.3 and Section 8.3, Lessor shall indemnify, save harmless and defend Lessee Indemnified Parties from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses imposed upon or incurred by or asserted against Lessee Indemnified Parties as a result of (a) the gross negligence or willful misconduct of Lessor arising in connection with this Lease or
(b) any failure on the part of Lessor to perform or comply with any of the terms of this Lease. Any amounts that become payable by an Indemnifying Party under this Section shall be paid within ten (10) days after liability therefor on the
part of the Indemnifying Party is determined by litigation or otherwise, and if not timely paid, shall bear a late charge (to the extent permitted by law) at the Overdue Rate from the date of such determination to the date of payment. An
Indemnifying Party, at its expense, shall contest, resist and defend any such claim, action or proceeding asserted or instituted against the Indemnified Party. The Indemnified Party, at its expense, shall be entitled to participate in any such
claim, action, or proceeding, and the Indemnifying Party may not compromise or otherwise dispose of the same without the consent of the Indemnified Party, which may not be unreasonably withheld or delayed. Nothing herein shall be construed as
indemnifying a Lessor Indemnified Party against its own (or Lessor’s) grossly negligent acts or omissions or willful misconduct. 
  

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 (c) Lessee’s or Lessor’s liability for a breach of the provisions of this Article shall survive
any termination of this Lease. 
 ARTICLE 19 
 REIT REQUIREMENTS AND RESTRICTIONS 
 19.1. Personal Property Limitation. Anything contained in
this Lease to the contrary notwithstanding, the average of the adjusted tax bases of the items of personal property that are leased to Lessee under this Lease at the beginning and at the end of any Fiscal Year shall not exceed fifteen percent
(15%) of the average of the aggregate adjusted tax bases of the Leased Property at the beginning and at the end of such Fiscal Year. This Section 19.1 is intended to ensure that the Rent qualifies as “rents from real property,”
within the meaning of Section 856(d) of the Code, or any similar or successor provisions thereto, and shall be interpreted in a manner consistent with such intent. 
 19.2. Sublease Rent Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not sublet the Leased Property on any basis such that the rental to be paid by the sublessee
thereunder would be based, in whole or in part, on either (a) the income or profits derived by the business activities of the sublessee, or (b) any other formula such that any portion of the Rent would fail to qualify as “rents from
real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto. 
 19.3.
Sublease Tenant Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not sublease the Leased Property to any Person in which Lessor owns, directly or indirectly, a ten percent (10%) or more interest,
within the meaning of Section 856(d)(2)(B) of the Code, or any similar or successor provisions thereto. 
 19.4. Lessee Ownership
Limitations. 
 (a) Anything contained in this Lease to the contrary notwithstanding, neither Lessee nor an Affiliate of Lessee shall
acquire, directly or indirectly, a ten percent (10%) or more interest in Lessor within the meaning of Section 856(d)(2)(B) of the Code, or any similar or successor provision thereto. 
 (b) Lessee shall not own, operate, manage or have any interest in any hotel or motel property in which Lessor or an Affiliate of Lessor does not have an
interest, pursuant to this Lease or another lease, agreement or arrangement with Lessor or an Affiliate of Lessor. Lessor agrees to notify Lessee promptly of the location of any hotel or motel property in which Lessor or an Affiliate of Lessor has
an interest. 
 19.5. Lessee Officer and Employee Limitation. If a Person serves as both (a) a director of Lessee (or any Person
who furnishes or renders services to the tenants of the Leased Property, or manages or operates the Leased Property) and (b) an officer (or employee) of the Lessor that Person shall not receive any compensation for serving as a director of
Lessee (or any Person who furnishes or renders services to the tenants of the Leased Property, or manages or operates the 

  

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Leased Property). Furthermore, if a Person serves as both (a) a director of the Lessor and (b) an officer (or employee) of Lessee (or any Person
who furnishes or renders services to the tenants of the Leased Property, or manages or operates the Leased Property), that Person shall not receive any compensation for serving as a director of the Lessor. No Person, other than Justin G. Knight,
shall serve as an officer (or employee) of both Lessor and Lessee. 
 19.6. Payments to Affiliates of Lessee. During the Term, Lessee
shall not pay, or become obligated to pay, any fees to any Affiliate of Lessee in connection with the Hotel, other than fees that are subordinated to the payments that are required to be made to Lessor pursuant to this Lease. 
 ARTICLE 20 
 SUBLETTING AND
ASSIGNMENT 
 20.1. Subletting and Assignment. Subject to the provisions of Article 19 and Section 20.2 and any other express
conditions or limitations set forth herein, Lessee may, but only with the consent of Lessor (which shall not be unreasonably withheld or delayed), (a) assign this Lease or sublet all or any part of the Leased Property to an Affiliate of Lessee,
or (b) sublet any retail or restaurant portion of the Leased Improvements in the normal course of the Primary Intended Use; provided that any subletting to any party other than an Affiliate of Lessee shall not individually as to any one such
subletting, or in the aggregate, materially diminish the actual or potential Percentage Rent payable under this Lease. In the case of a subletting, the sublessee shall comply with the provisions of Section 20.2, and in the case of an
assignment, the assignee shall assume in writing and agree to keep and perform all of the terms of this Lease on the part of Lessee to be kept and performed and shall be, and become, jointly and severally liable with Lessee for the performance
thereof. Notwithstanding the above, Lessee may assign the Lease to an Affiliate without the consent of Lessor; provided that any such assignee assumes in writing and agrees to keep and perform all of the terms of the Lease on the part of Lessee to
be kept and performed and shall be and become jointly and severally liable with Lessee for the performance thereof. In case of either an assignment or subletting made during the Term, Lessee shall remain primarily liable, as principal rather than as
surety, for the prompt payment of the Rent and for the performance and observance of all of the covenants and conditions to be performed by Lessee hereunder. An original counterpart of each such sublease and assignment and assumption, duly executed
by Lessee and such sublessee or assignee, as the case may be, in form and substance satisfactory to Lessor, shall be delivered promptly to Lessor. 
 20.2. Attornment. Lessee shall insert in each sublease permitted under Section 20.1 provisions to the effect that (a) such sublease is subject and subordinate to all of the terms and provisions of this Lease and to the
rights of Lessor hereunder, (b) if this Lease terminates before the expiration of such sublease, the sublessee thereunder will, at Lessor’s option, attorn to Lessor and waive any right the sublessee may have to terminate the sublease or to
surrender possession thereunder as a result of the termination of this Lease, and (c) if the sublessee receives a Notice from Lessor or Lessor’s assignees, if any, stating that an uncured Event of Default exists under this Lease, the
sublessee shall thereafter be obligated to pay all rentals accruing under said sublease directly to the party giving such Notice, or as such party may direct. All rentals received from the sublessee by Lessor or Lessor’s assignees, if any, as
the case may be, shall be credited against the amounts owing by Lessee under this Lease. 
  

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 20.3. Conveyance by Lessor. Lessor may assign this Lease to any purchaser of the Leased Property.
If Lessor or any successor owner of the Leased Property conveys the Leased Property in accordance with the terms hereof other than as security for a debt, and the grantee or transferee of the Leased Property expressly assumes all obligations of
Lessor hereunder arising or accruing from and after the date of such conveyance or transfer, Lessor or such successor owner, as the case may be, shall thereupon be released from all future liabilities and obligations of Lessor under this Lease
arising or accruing from and after the date of such conveyance or other transfer as to the Leased Property and all such future liabilities and obligations shall thereupon be binding upon the new owner. 
 ARTICLE 21 
 QUIET ENJOYMENT;
RISK OF LOSS 
 21.1. Quiet Enjoyment. So long as Lessee pays all Rent as the same becomes due and complies with all of the terms
of this Lease and performs its obligations hereunder, in each case within the applicable grace periods, if any, Lessee shall peaceably and quietly have, hold and enjoy the Leased Property for the Term hereof, free of any claim or other action by
Lessor or anyone claiming by, through or under Lessor, but subject to all liens and encumbrances subject to which the Leased Property was conveyed to Lessor, to the extent not released in connection with the transactions contemplated by this Lease,
or hereafter consented to by Lessee or provided for herein. Notwithstanding the foregoing, Lessee shall have the right by separate and independent action to pursue any claim it may have against Lessor as a result of a breach by Lessor of the
covenant of quiet enjoyment contained in this Section. 
 21.2. Risk of Loss. During the Term, the risk of loss or of decrease in the
enjoyment and beneficial use of the Leased Property in consequence of the damage or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise, or in consequence of foreclosures, attachments, levies or executions (other
than those caused by Lessor and those claiming from, through or under Lessor) is assumed by Lessee, and, in the absence of gross negligence, willful misconduct or breach of this Lease by Lessor pursuant to Section 17.1, Lessor shall in no event
be answerable or accountable therefor, nor shall any of the events mentioned in this Section entitle Lessee to any abatement of Rent except as specifically provided in this Lease. 
 ARTICLE 22 
 LESSOR MORTGAGES; SUBORDINATION OF LEASE 
 22.1. Lessor May Grant Liens. Without the consent of Lessee, Lessor may, subject to the terms and conditions set forth below in this
Section 22.1, from time to time, directly or indirectly, create or otherwise cause to exist any lien, encumbrance or title retention agreement (“Encumbrance”) upon the Leased Property, or any portion thereof or interest therein,
whether to secure any borrowing or other means of financing or refinancing. Upon the request of Lessor, Lessee shall subordinate this Lease to the lien of a new mortgage on the Leased Property, on the condition that the proposed mortgagee executes a
non-disturbance agreement recognizing this Lease in accordance with the provisions of Section 22.2, and agreeing, for itself and its successors and assigns, to comply with the provisions of this Article 22. 
  

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 22.2. Subordination of Lease. This Lease and Lessee’s interest hereunder shall at all times
be subject and subordinate to the lien and security title of any deeds to secure debt, deeds of trust, mortgages, or other Encumbrances heretofore or hereafter granted by Lessor or which otherwise encumber or affect the Leased Property and to any
and all advances to be made thereunder and to all renewals, modifications, consolidations, replacements, substitutions, and extensions thereof (all of which are herein called the “Mortgage”); provided, however, that with respect to any
Mortgage hereafter granted, such subordination is conditioned upon delivery to Lessee of a non-disturbance agreement which provides that Lessee shall not be disturbed in its possession of the Leased Property hereunder following a foreclosure of such
Mortgage (or delivery of a deed-in-lieu-of-foreclosure) and that the holder of such Mortgage or the purchaser at a foreclosure sale (or grantee under such deed-in-lieu-of-foreclosure) shall perform all obligations of Lessor under this Lease. In
confirmation of such subordination, however, Lessee shall, at Lessor’s request, promptly execute, acknowledge and deliver any instrument which may be required to evidence subordination to any Mortgage and to the holder thereof. In the event of
Lessee’s failure to deliver such subordination and if the Mortgage does not change any term of the Lease, Lessor may, in addition to any other remedies for breach of covenant hereunder, execute, acknowledge, and deliver the instrument as the
agent or attorney-in-fact of Lessee, and Lessee hereby irrevocably constitutes Lessor its attorney-in-fact for such purpose, Lessee acknowledging that the appointment is coupled with an interest and is irrevocable. 
 ARTICLE 23 
 ESTOPPEL
CERTIFICATES; FINANCIAL STATEMENTS; INSPECTION RIGHTS 
 23.1. Estoppel Certificates; Financial Statements. 
 (a) At any time and from time to time upon not less than ten (10) days Notice by Lessor, Lessee will furnish to Lessor an Officer’s Certificate
certifying that this Lease is unmodified and in full force and effect (or that this Lease is in full force and effect as modified and setting forth the modifications), the date to which the Rent has been paid, whether to the knowledge of Lessee
there is any existing default or Event of Default exists thereunder by Lessor or Lessee, and such other information as may be reasonably requested by Lessor. Any such certificate furnished pursuant to this Section may be relied upon by Lessor, any
lender and any prospective purchaser of the Leased Property. 
 (b) Lessee will furnish the following statements to Lessor: 
 (i) with reasonable promptness, such information respecting the financial condition and affairs of Lessee including audited financial
statements prepared by the same certified independent accounting firm that prepares the returns for Lessor or such other accounting firm as may be approved by Lessor, as Lessor may request from time to time; and 
 (ii) the most recent Consolidated Financials of Lessee within forty-five (45) days after each quarter of any Fiscal Year (or, in the
case of the final quarter in any Fiscal Year, the most recent audited Consolidated Financials of Lessee within ninety (90) days); and 
  

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 (iii) on or about the 20th day of each month, a detailed profit and loss statement for
the Leased Property for the preceding month, a balance sheet for the Leased Property as of the end of the preceding month, and a detailed accounting of revenues for the Leased Property for the preceding month, each in form acceptable to Lessor.

 Lessee will permit the inclusion of such statements in any filings required to be made by Lessor under the Securities Act of 1933 and the Securities
Exchange Act of 1934. 
 (c) At any time and from time to time upon not less than ten (10) days Notice by Lessee, Lessor will furnish to
Lessee or to any Person designated by Lessee an estoppel certificate certifying that this Lease is unmodified and in full force and effect (or that this Lease is in full force and effect as modified and setting forth the modifications), the date to
which Rent has been paid, whether to the knowledge of Lessor there is any existing default or Event of Default on Lessee’s part hereunder, and such other information as may be reasonably requested by Lessee. 
 (d) Lessee shall at all times be Solvent. Furthermore, as of the date of this Agreement, Lessee agrees to establish and maintain, in a form satisfactory
to Lessor, a funding commitment in an amount equal to $2,000,000 upon which Lessee may draw upon to pay to Lessor Base Rent, Percentage Rent and Additional Charges. Repayment of the funding commitment shall be subordinated to all payments of Base
Rent, Percentage Rent and additional charges under all Leases between Lessor and Lessee. 
 23.2. Lessor’s Right to Inspect.
Lessee shall permit Lessor and its authorized representatives as frequently as reasonably requested by Lessor to inspect the Leased Property and Lessee’s accounts and records pertaining thereto and make copies thereof, during usual business
hours upon reasonable advance Notice, subject only to any business confidentiality requirements reasonably requested by Lessee. 
 ARTICLE 24 
 APPRAISERS 
 24.1. Appraisers. If it becomes necessary to determine the Fair Market Value or Fair Market Rental of the Leased Property for any purpose of this Lease, the party required or permitted to give Notice of such
required determination shall include in the Notice the name of a Person selected to act as appraiser on its behalf. Within ten (10) days after Notice, Lessor (or Lessee, as the case may be) shall by Notice to Lessee (or Lessor, as the case may
be) appoint a second Person as appraiser on its behalf. The appraisers thus appointed, each of whom must be a member of the American Institute of Real Estate Appraisers (or any successor organization thereto) with at least five (5) years’
experience in the State appraising property similar to the Leased Property, shall, within forty-five (45) days after the date of the Notice appointing the first appraiser, proceed to appraise the Leased Property to determine the Fair Market
Value or Fair Market Rental thereof as of the relevant date (giving effect to the impact, if any, of inflation from the date of their decision to 

  

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the relevant date); provided, however, that if only one appraiser shall have been so appointed, then the determination of such appraiser shall be final and
binding upon the parties. To the extent consistent with sound appraisal practice as then existing at the time of any such appraisal, such appraisal shall be made on a basis consistent with the basis on which the Leased Property was appraised for
purposes of determining its Fair Market Value at the time the Leased Property was acquired by Lessor. If two (2) appraisers are appointed and if the difference between the amounts so determined does not exceed five percent (5%) of the
lesser of such amounts, then the Fair Market Value or Fair Market Rental shall be an amount equal to fifty percent (50%) of the sum of the amounts so determined. If the difference between the amounts so determined exceeds five percent
(5%) of the lesser of such amounts, then such two appraisers shall have twenty (20) days to appoint a third appraiser. If no such appraiser shall have been appointed within such twenty (20) days or within ninety (90) days of the
original request for a determination of Fair Market Value or Fair Market Rental, whichever is earlier, either Lessor or Lessee may apply to any court having jurisdiction to have such appointment made by such court. Any appraiser appointed by the
original appraisers or by such court shall be instructed to determine the Fair Market Value or Fair Market Rental within forty-five (45) days after appointment of such appraiser. The determination of the appraiser which differs most in the
terms of dollar amount from the determinations of the other two appraisers shall be excluded, and fifty percent (50%) of the sum of the remaining two determinations shall be final and binding upon Lessor and Lessee as the Fair Market Value or
Fair Market Rental of the Leased Property, as the case may be. This provision for determining by appraisal shall be specifically enforceable to the extent such remedy is available under applicable law, and any determination hereunder shall be final
and binding upon the parties except as otherwise provided by applicable law. Lessor and Lessee shall each pay the fees and expenses of the appraiser appointed by it and each shall pay one-half of the fees and expenses of the third appraiser and
one-half of all other costs and expenses incurred in connection with each appraisal. 
 ARTICLE 25 
 ARBITRATION AND DISPUTE RESOLUTION PROCEDURES 
 25.1. Arbitration. Except as set forth in Section 25.2, in each case specified in this Lease in which it shall become necessary to resort to arbitration, such arbitration shall be determined as provided in this
Section 25.1. The party desiring such arbitration shall give Notice to that effect to the other party, and an arbitrator shall be selected by mutual agreement of the parties, or if they cannot agree within thirty (30) days of such notice,
by appointment made by the American Arbitration Association (“AAA”) from among the members of its panels who are qualified and who have experience in resolving matters of a nature similar to the matter to be resolved by arbitration.

 25.2. Alternative Arbitration. In each case specified in this Lease for a matter to be submitted to arbitration pursuant to the
provisions of this Section 25.2, Lessor and Lessee will agree upon a nationally recognized accounting firm with a hospitality division of which neither party nor their Affiliates of Lessor is a significant client to serve as arbitrator of such
dispute within fifteen (15) days after written demand for arbitration is received or sent by either party. In the event the parties fail to make such designation within such fifteen (15) day period, Lessor shall be entitled to designate
any nationally recognized accounting firm with a hospitality division of which Lessor or an Affiliate of Lessor is not a significant client to serve as arbitrator of such dispute within fifteen (15) days after the parties fail to timely make
such designation. In the event Lessor 

  

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fails to make such designation within such fifteen (15) day period, Lessee shall be entitled to designate any nationally recognized accounting firm with
hospitality division of which Lessee or an Affiliate of Lessee is not a significant client to serve as arbitrator of such dispute within fifteen (15) days after the parties fail to timely make such designation. In the event no nationally
recognized accounting firm satisfying such qualifications is available and willing to serve as arbitrator, the arbitrator shall instead be administered as set forth in Section 25.1. 
 25.3. Arbitration Procedure. In any arbitration commenced pursuant to Sections 25.1 or 25.2, a single arbitrator shall be designated and shall
resolve the dispute. The arbitrator’s decision shall be binding on all parties, shall not be subject to further review or appeal except as otherwise allowed by applicable law and may be filed in and enforced by a court of competent
jurisdiction. Upon the failure of either party (the “non-complying party”) to comply with his decision, the arbitrator shall be empowered, at the request of the other party, to order such compliance by the non-complying party and to
supervise or arrange for the supervision of the non-complying party’s obligation to comply with the arbitrator’s decision, all at the expense of the non-complying party. To the maximum extent practicable, the arbitrator and the parties,
and the AAA if applicable, shall take any action necessary to insure that the arbitration shall be concluded within ninety (90) days of the filing of such dispute. The fees and expenses of the arbitrator shall be shared equally by Lessor and
Lessee except as otherwise specified above in this Section 25.3. Unless otherwise agreed in writing by the parties or required by the arbitrator or AAA, if applicable, arbitration proceedings hereunder shall be conducted in the State.
Notwithstanding formal rules of evidence, each party may submit such evidence as each party deems appropriate to support its position and the arbitrator shall have access to and right to examine all books and records of Lessee and Lessor regarding
the Hotel during the arbitration. 
 ARTICLE 26 
 NOTICES 
 26.1. Notices. All notices, demands, requests, consents approvals and other
communications (“Notice” or “Notices”) hereunder shall be in writing and hand-delivered, sent by FedEx or other nationally recognized overnight courier service, or mailed (by registered or certified mail, return receipt requested
and postage prepaid), if to Lessor at 814 East Main Street, Richmond, Virginia 23219, Attn: Krissy Gathright and if to Lessee at 814 East Main Street, Richmond, Virginia 23219, Attn: Krissy Gathright or to such other address or addresses as either
party may hereafter designate. Personally delivered Notice shall be effective upon receipt, and Notice given by overnight courier service or by mail shall be complete at the time of deposit with the courier service or in the U.S. Mail system,
respectively, but any prescribed period of Notice and any right or duty to do any act or make any response within any prescribed period or on a date certain after the service of such Notice given by overnight courier service shall be extended one
(1) day and by mail shall be extended five (5) days. 
 ARTICLE 27 
 MISCELLANEOUS 
 27.1. No Waiver.
No failure by Lessor or Lessee to insist upon the strict performance of any term hereof or to exercise any right, power or remedy consequent upon a breach thereof, and 

  

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no acceptance of full or partial payment of Rent during the continuance of any such breach, shall constitute a waiver of any such breach or of any such term.
To the extent permitted by law, no waiver of any breach shall affect or alter this Lease, which shall continue in full force and effect with respect to any other then existing or subsequent breach. 
 27.2. Remedies Cumulative. To the extent permitted by law and unless otherwise provided herein to the contrary, each legal, equitable or
contractual right, power and remedy of Lessor or Lessee now or hereafter provided either in this Lease or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power and remedy and the exercise or
beginning of the exercise by Lessor or Lessee of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Lessor or Lessee of any or all of such other rights, powers and remedies. 

27.3. Waiver of Trial by Jury. LESSOR AND LESSEE EACH WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN
THE EVENT OF A PROCEEDING WITH RESPECT TO THIS LEASE, INCLUDING, WITHOUT LIMITATION, SUMMARY PROCEEDINGS TO ENFORCE THE REMEDIES SET FORTH IN ARTICLE 16. 
 27.4. Acceptance of Surrender. No surrender to Lessor of this Lease or of the Leased Property or any part thereof, or of any interest therein, shall be valid or effective unless agreed to and accepted in
writing by Lessor and no act by Lessor or any representative or agent of Lessor, other than such a written acceptance by Lessor, shall constitute an acceptance of any such surrender. 
 27.5. No Merger of Title. There shall be no merger of this Lease or of the leasehold estate created hereby by reason of the fact that the same
Person may acquire, own or hold, directly or indirectly: (a) this Lease or the leasehold estate created hereby or any interest in this Lease or such leasehold estate and (b) the fee estate in the Leased Property. 
 27.6. Waiver of Presentment, Etc. Lessee waives all presentments, demands for payment and for performance, notices of nonperformance, protests,
notices of protest, notices of dishonor, and notices of acceptance and waives all notices of the existence, creation, or incurring of new or additional obligations, except as expressly granted herein. 
 27.7. Action for Damages. Except as otherwise expressly provided herein, in any suit or other claim brought by either party seeking damages
against the other party for breach of its obligations under this Lease, the party against whom such claim is made shall be liable to the other party only for actual damages and not for consequential, punitive or exemplary damages. 
 27.8. Lease Assumption in Bankruptcy Proceeding. If an Event of Default occurs and Lessee has filed or has had filed against it a petition in
bankruptcy or for reorganization or other relief pursuant to the federal bankruptcy code, Lessee shall promptly move the court presiding over the proceeding to assume this Lease pursuant to 11 U.S.C. §365, without seeking an extension of the
time to file said motion. 
  

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 27.9. Enforceability. Anything contained in this Lease to the contrary notwithstanding, all claims
against, and liabilities of, Lessee or Lessor arising prior to any date of termination of this Lease shall survive such termination. If any term or provision of this Lease or any application thereof is invalid or unenforceable, the remainder of this
Lease and any other application of such term or provisions shall not be affected thereby. If any late charges or any interest rate provided for in any provision of this Lease are based upon a rate in excess of the maximum rate permitted by
applicable law, the parties agree that such charges shall be fixed at the maximum permissible rate. Neither this Lease nor any provision hereof may be changed, waived, discharged or terminated except by a written instrument in recordable form signed
by Lessor and Lessee. All the terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. The headings in this Lease are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof. This Lease shall be governed by and construed in accordance with the laws of the State, but not including its conflicts of laws rules. 
 27.10. Memorandum of Lease. Lessor and Lessee shall promptly, upon the request of either party, enter into a short form memorandum of this Lease,
in form suitable for recording under the laws of the State in which reference to this Lease, and all options contained herein, shall be made. Lessee shall pay all costs and expenses of recording such memorandum of this Lease. 
 [SIGNATURES ON NEXT PAGE] 
  

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

			
	“LESSOR”
	
	APPLE NINE HOSPITALITY OWNERSHIP, INC., a Virginia corporation
		
	By:	 	 /s/    Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	President
	
	“LESSEE”
	
	APPLE NINE HOSPITALITY MANAGEMENT, INC., a Virginia corporation
		
	By:	 	 /s/    Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	PresidentExhibit 10.9

 Exhibit 10.9 
 AGREEMENT OF PURCHASE AND SALE 
 AND JOINT ESCROW INSTRUCTIONS 
 Courtyard by Marriott Santa Clarita 
  

							
	TO:	  	Land America American Title Company - 1951	  	Escrow No.         -                	 	
		  	2505 N. Plano Rd., Suite 100	  	Escrow Officer: Debby Moore	 	
		  	Richardson, TX 75082	  	Title Order No.                         	 	
		  	(“Escrow Holder”)	  		 	
		  	Telephone: 214-570-0200	  		 	
		  	Facsimile: 214-570-0210	  		 	

 THIS AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made
and entered into as of this 24th day of July, 2008 (the “Effective Date”), by and between OCEAN PARK HOTELS-MMM, LLC, a California limited liability company (“Seller”), and APPLE NINE HOSPITALITY OWNERSHIP, INC.
(“Buyer”). Seller and Buyer enter into this Agreement with respect to the following: 
 RECITALS 
 A. Seller is the owner of fee simple title to the improved real property more commonly known as the 28523 Westinghouse Place, Santa Clarita, California,
which is more particularly described on Exhibit “A,” attached hereto and incorporated herein by reference, together with all rights, privileges and appurtenances pertaining to such improved real property, (hereinafter collectively, the
“Land”). The Land is improved with a hotel consisting of 140 guest rooms and related improvements and fixtures (collectively “Improvements”). The Land and Improvements are collectively referred to herein as the “Real
Property.” 
 B. The Real Property is furnished and equipped with furniture, furnishings, fixtures, linen, uniforms, equipment,
telephones and telephone systems, machinery, and other nonconsummable items (collectively “FF&E”) and an assortment of operating supplies consisting of housekeeping and laundry supplies, paper and accounting supplies, opened and
unopened food and beverages (alcoholic and non-alcoholic) (“Consumables”) and similar items (collectively, “Operating Supplies”). 
 C. The Seller owns fee simple title to the Real Property, the FF&E (except certain items which are documented in Schedule 14.6(b)), and the Operating Supplies. The owned FF&E, the Operating Supplies and all
other tangible personal property owned by the Seller located on or about the Real Property or used in connection with the Hotel (defined below), are collectively called the “Personal Property”. 
 D. The portion of the FF&E not owned by Seller is held under leases, rental agreements or other agreements (“FF&E Leases”). 

E. Seller has entered into various operating agreements, management, service, supply and maintenance contracts for goods and services to the Hotel
(the “Operating Agreements”). Seller has entered into various agreements for advertising, promotion and marketing of the Hotel (the “Advertising Agreements”). Seller has entered into agreements, bookings or other confirmed
reservations for rooms or other facilities including conference rooms (collectively called “Advance Booking Agreements” or “Advance Bookings”), with respect to the reservation of portions of the Hotel for future use.
Seller’s right, title and interest, claim and estate in, to and under the FF&E Leases, the Operating Agreements, the Advertising Agreements and the Advance Booking Agreements are collectively called the “Contract Rights”. Contract
Rights shall not include the right to payment from Parker Properties, Inc. and Beverly Valencia, LLC as contemplated by that certain letter agreement dated September 20, 2006 as amended by that certain letter dated November 17, 2006
(“Parker Agreement”). 
 F. Any goodwill and other intangible assets owned by Seller and related to the Real and Personal Property
and the business of operating the Hotel and including, without limitation, all licenses, permits and approvals, escrow accounts, utility and development rights and privileges, general intangibles, business records, reservation systems, guaranties,
warranties, plans and specifications, trade names, logos, derivations, telephone numbers, internet URLs, e-mail addresses, marks and intellectual property, if any, are collectively called the “Intangible Property”. 
  

					
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 G. The Real Property, the Personal Property, the Contract Rights, and the Intangible Property, are
collectively referred to as the “Property”. The operation and hotel business conducted on the Real Property is sometimes called the “Hotel” or “Hotel Business” in this Agreement. 
 H. The obligation and right to manage the Hotel has been granted to Ocean Park Hotels, Inc. (“Manager”) pursuant to a written management
agreement between Manager and Seller (the “Management Agreement”). The employees at the Hotel (the “Hotel Employees”), are the employees of Seller except for the general manager who is an employee of Manager. 
 I. Seller has been operating the Hotel under a Franchise License Agreement dated December 17, 2004 (“Franchise Agreement”) entered into by
and between Ocean Park Hotels-CVP, LLC, predecessor in interest to Seller, and Marriott International, Inc., a Delaware corporation (“Franchisor”). 
 J. Seller desires to sell the Property to Buyer, and Buyer desires to purchase the Property through this Agreement with Seller, on the terms and conditions in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree that the terms and conditions of this Agreement and the instructions to Escrow Holder with regard to the escrow (“Escrow”) created pursuant hereto are as follows:

 AGREEMENT 
 1. Purchase and Sale

 1.1 Purchase and Sale 
 Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller, upon and subject to the terms and conditions herein set forth. 
 2. Purchase Price 
 The purchase price
(“Purchase Price”) for the Property is TWENTY-TWO MILLION SEVEN HUNDRED THOUSAND DOLLARS ($22,700,000). The parties shall use commercially reasonable efforts to agree upon an allocation of the Purchase Price prior to the expiration of the
Contingency Period, which allocation shall take into consideration the allocation required for the Liquor Escrow as set forth in Section 16.6, and shall represent the parties good-faith, fair market determination of the value of each of the
items included as part of the Property. 
 3. Payment of Purchase Price 
 The Purchase Price for the Property shall be paid by Buyer as follows: 
 3.1 Deposit 
 3.1.1 Definition 
 As used herein the “Deposit” means the Initial Deposit as increased by the Additional Deposit (as such terms are defined below), together with
all interest accrued thereon. 
 3.1.2 Initial Deposit 
 Within two (2) days after the Effective Date of this Agreement, Buyer shall deposit, or cause to be deposited with Escrow Holder, in cash by Federal
Reserve Wire Transfer of Funds (“Immediately Available Funds”), the sum of Two Hundred Thousand Dollars ($200,000) (the “Initial Deposit”). 
  

					
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 3.1.3 Additional Deposit; Release of Deposit to Seller. 
 Unless this Agreement has been terminated in accordance with provisions of Section 7.1.1(d) below, Buyer shall be deemed to have elected to proceed
with the purchase of the Property and shall deposit the sum of Two Hundred Thousand Dollars ($200,000) (the “Additional Deposit”) (resulting in a total Deposit of Four Hundred Thousand Dollars ($400,000)) with Escrow Holder by 5:00 p.m.
Pacific Standard Time on the first (1st) business day following the expiration date of the Contingency Period (as defined below) in Immediately Available Funds. 
 3.1.4 Additional Provisions Regarding the Deposit 
 The Deposit shall be deemed to include all
interest accrued thereon and all references herein to a return, payment or application of the Deposit shall be deemed to include any interest earned thereon. Escrow Holder shall place the Deposit in an interest bearing FDIC insured demand deposit
account approved by Buyer. Such account shall have no penalty for withdrawal. The Deposit shall be refundable to Buyer on or before the expiration of the Contingency Period in accordance with Section 7.1.1, if Buyer terminates this Agreement in
accordance with Section 7.1.1. If the Agreement is not terminated on or before the expiration of the Contingency Period, the Deposit shall be non-refundable to Buyer; provided, however, the Deposit, shall be refunded to Buyer after the
expiration of the Contingency Period, if the Close of Escrow does not occur due to a default under this Agreement by Seller and/or in the event of the failure of a condition precedent to Buyer’s obligation to purchase the Property, as set forth
herein. Subject to the foregoing, the Deposit shall be applied to the Purchase Price upon the Close of Escrow. 
 3.2 Balance of the
Purchase Price 
 Not later than 1:00 p.m. Pacific Time on the date which is at least one (1) business day prior to the Close of
Escrow, Buyer shall deposit or cause to be deposited with Escrow Holder, in Immediately Available Funds, the balance of the Purchase Price, after deduction of the Deposit, as adjusted by the prorations and credits specified herein. 
 3.3 Purchase Price Holdback 
 The sum of Two Hundred Thousand Dollars ($200,000) shall be held back from the Purchase Price in an interest bearing account for the benefit of Seller with Escrow Holder for the purpose of securing the representations and warranties of
Seller and all other obligations of Seller under this Agreement (the “Holdback”), for a period of six (6) months commencing from the Close of Escrow, as more particularly described in an escrow holdback agreement (“Holdback
Agreement”) which shall be executed and delivered at the Closing by Buyer and Seller in the form attached hereto as Exhibit 3.3. 
 4. Escrow

 4.1 Opening of Escrow 
 For purposes of this Agreement, the Escrow shall be deemed opened on the date which Escrow Holder receives (i) a fully executed original or originally executed counterparts of this Agreement from both Seller and
Buyer and (ii) the Initial Deposit from Buyer. Notwithstanding the date escrow is opened, if Buyer fails to deliver the Initial Deposit to Escrow Holder within two (2) Business Days after the Effective Date, this Agreement, at
Seller’s written election, shall terminate. Buyer and Seller agree to execute, deliver and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder or other instruments reasonably required by Escrow Holder in
order to consummate the transaction contemplated by this Agreement, including without limitation, Escrow Holder’s general conditions, as provided by Escrow Holder, if any (the “General Conditions”); provided, however, any such
supplemental instructions, instruments or General Conditions shall not conflict with, amend or supersede any portions of this Agreement. To the extent of any inconsistency between the provisions of such supplemental instructions, instruments or
General Conditions and the provisions of this Agreement, the provisions of this Agreement shall control. 
  

					
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 4.2 Close of Escrow 
 For purposes of this Agreement, “Close of Escrow” shall be defined as the date that the grant deed (“Grant Deed”), the form of which
is attached hereto as Exhibit “B”, conveying the Real Property to Buyer is recorded in the Official Records of Los Angeles County, California. The Close of Escrow shall occur on or before 30 days after the expiration of the Contingency
Period (the “Closing Date”) or as soon thereafter as the parties may mutually agree, subject to waiver of satisfaction of all conditions to closing hereunder. 
 5. Condition of Title 
 Title to the Real Property shall be conveyed to Buyer by the Grant Deed
subject to the following permitted exceptions (“Permitted Exceptions”): 
 (a) A lien to secure payment of general and special real
property taxes and assessments, not yet due and payable. 
 (b) The lien of supplemental taxes assessed pursuant to Chapter 3.5 commencing
with Section 75 of the California Revenue and Taxation Code. 
 (c) Rights of lessee’s in possession under unrecorded leases, if
any. 
 (d) All exceptions which are disclosed by the “Report” described below which are approved or deemed approved by Buyer as
provided in Section 7.1.2 and all matters affecting the Property created with the written consent of Buyer. 
 6. Title Policy 

Title to the Real Property shall be insured by Land America American Title, or its affiliates (“Title Company”) through issuance of
(i) a standard CLTA owner’s form policy of title insurance or, (ii) at Buyer’s election, an ALTA extended coverage owner’s form policy of title insurance (an “ALTA Extended Policy”) which the Title Company
irrevocably agrees to issue during the Contingency Period (in either case, the “Title Policy”) in the amount of the Purchase Price showing fee simple title in the Real Property vested in Buyer, subject only to those matters approved by
Buyer (or deemed approved by Buyer) pursuant to Section 7.1.2 hereof. Notwithstanding the foregoing, (i) the failure of the Buyer to timely obtain a survey necessary for the Title Company to issue an ALTA Extended Policy shall not
otherwise extend the Close of Escrow nor shall the failure of the Title Company to issue an ALTA Extended Policy due to the failure of the Buyer to timely deliver such survey be deemed a failure of a condition for the benefit of the Buyer.

 7. Conditions to Close of Escrow 
 7.1 Conditions to Buyer’s Obligations 
 Buyer’s obligation to consummate the transactions contemplated by
this Agreement is subject to the satisfaction of the following conditions for Buyer’s benefit (or Buyer’s waiver thereof) on or prior to the dates designated below for the satisfaction of such conditions. 
 7.1.1 Contingency Matters; Contingency Period 
 Buyer shall have until 5:00 p.m. Pacific Time on the date which is thirty (30) days after the Effective Date (the “Contingency Period”) to satisfy itself, in Buyer’s sole and absolute discretion,
as to any matters relating to the transaction contemplated by this Agreement, including, without limitation, the following matters: 
 (a)
Buyer’s Review of the Property and Related Matters  
 Buyer shall be satisfied with all aspects of the Property and its
condition and suitability for Buyer’s intended use thereof. During the Contingency Period, Buyer, its agents, contractors and subcontractors shall have the right to enter upon the Property, subject to Seller’s reasonable approval thereof,
at reasonable times during ordinary business hours following not less than twenty-four (24) hours prior notice to Seller, to conduct physical, financial and other due diligence of the Property and the Hotel Business associated therewith
(collectively “Due Diligence”). Due Diligence shall include inspections, surveys and tests as may be necessary in Buyer’s reasonable discretion and Seller shall have the right to pre-approve all such physical testing and shall have
the right to 

  

					
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have a representative present during any such inspections, surveys and tests. If Buyer performs any physical Due Diligence, Buyer shall restore the Property
to its original condition immediately after completion of such test and/or inspection. Buyer hereby indemnifies and agrees to protect, defend and hold Seller free and harmless from and against any and all actual costs, losses, liabilities, damages,
lawsuits, judgments, actions, causes of action, proceedings, penalties, demands, attorneys’ fees, liens, or expenses of any kind or nature whatsoever incurred by Seller arising out of or resulting directly from any entry and/or activities upon
any the Property by Buyer, Buyer’s agents, contractors and/or subcontractors, and/or the contractors and subcontractors of such agents in connection with any Due Diligence. 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 Property, a policy of commercial general liability insurance covering any and all liability of Buyer and Seller with respect to or arising out of any such
investigative activities. Such policy of insurance shall be an occurrence policy and shall have liability limits of not less than One Million Dollars ($1,000,000.00) combined single limit per occurrence for bodily injury, personal injury and
property damage liability. Such insurance policy shall name Seller and its successors and assigns as an additional insured and shall be in form and substance and issued by an insurance company reasonably satisfactory to Seller. In conducting its Due
Diligence, Buyer and its agents shall not interrupt or interfere with the operations of the Hotel in a material manner. All physical tests shall be conducted in a manner that will safeguard all persons from injury or death and all property from
damage. If Buyer proposes to make any tests in connection with any Phase II environmental assessment or any other tests which involve drilling, boring or other similar intrusive or invasive action on or under the Real Property, then Buyer shall
obtain Seller’s written consent prior to making any such tests, which consent may be withheld in Seller’s sole and absolute discretion. Buyer shall coordinate with Seller prior to and during each visit to the Property. Representatives of
Seller shall have the right to accompany Buyer during each visit. Buyer shall not interview or otherwise contact any employees or other personnel of the Hotel without Seller’s prior consent, which consent shall not be unreasonably withheld. All
contacts with Seller shall be directed to James M. Flagg. Seller shall have the right to be present during any contact with any employee of the Hotel and any physical testing of each Property. 
 (b) Review and Approval of Documents and Materials 
 In order to facilitate Buyer’s Due Diligence, Seller has provided or will provide to Buyer upon the opening of escrow or within five (5) business days thereafter, all documents and materials respecting the
Property which are in Seller’s files including a current inventory of FF&E, which will be updated and included at the Close of Escrow with the Bill of Sale, and an a then current report of Advance Bookings, which will also be updated and
included at the Close of Escrow (the “Documents and Materials”). Seller does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information contained in Seller’s files or in the
Documents and Materials. Buyer acknowledges that Seller shall have no responsibility for the contents and accuracy of such Documents and Materials and Buyer agrees that the obligations of Seller in connection with the purchase of the Property shall
be governed by this Agreement irrespective of the contents of any such Documents and Materials. 
 Notwithstanding the foregoing, except as
required by Section 16.7 hereinbelow, Seller shall not be required to disclose any information reflecting (collectively the “Excluded Material”) (i) subject to Section 16.7 below, any corporate, limited liability company or
partnership matters of Seller or its affiliates including, without limitation, Manager (collectively “Affiliates”), including without limitation, matters related to the ownership, governance, organization, or composition of Seller and its
Affiliates; (ii) any agreements Seller and/or its Affiliates are a party to other than those which bind the Hotel; (iii) Seller’s and/or its Affiliates internal work product or internal analysis related to the Hotel; (iv) any
privileged or proprietary information regarding Seller and/or its Affiliates or the Hotel; (v) material relating to Seller’s and/or its Affiliates marketing efforts for the sale of the Hotel; (vi) Seller’s and/or its Affiliates
strategic plans for the Hotel, projections and other internal memoranda or materials, internal analyses, budgets and appraisals; (viii) any other information or documents which do not directly pertain to the Hotel (the “Excluded
Documents”), including without limitation, (a) entity level communications, entity level agreements, identities of partners, shareholders or members, and all other partnership, corporate or company matters of Seller or its Affiliates,
(b) financing or loan documents, (c) subject to Section 16.7 below, any financial information regarding the Seller and/or its Affiliates other than financial information regarding the Hotel; (d) any federal or state income tax
matters related to the Seller and/or its Affiliates, including without limitation, tax returns, audits, or correspondence; provided, however, the foregoing exclusion shall not include property or sales tax matters related to the Hotel; (e) any
litigation matters other than those which relate to the Hotel; and (f) attorney and accountant work product. 
  

					
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 (c) Franchise Agreement 
 Buyer shall have received a Transfer of the Franchise Agreement, on terms and subject to conditions, and at a cost, acceptable to Buyer. Buyer shall pay
all costs, expenses and fees incurred by Seller or Buyer, or assessed by Franchisor, in connection with the transfer or termination of the Franchise Agreement, and Seller shall have no liability for any such costs, expenses or fees other than
(i) any “Key Money” repayment, if any, and (ii) sums that have accrued and are due and payable under the Franchise Agreement for the term ending as of the Cutoff Time (as further set forth in Section 12.4). 
 (d) Disapproval; Termination 
 If,
during the Contingency Period, Buyer determines, in its sole and absolute discretion, that it is dissatisfied with any aspect of the Property or with any of the Documents and Materials, Buyer may terminate this Agreement and the Escrow by delivering
written notice to Seller and Escrow Holder on or before the expiration of the Contingency Period, of Buyer’s election to terminate, in which event (i) Escrow Holder shall return to Buyer the Initial Deposit; (ii) Buyer and Seller
shall share the cost of any title or escrow cancellation fees fifty percent (50%) each; (iii) this Agreement and the Escrow created pursuant hereto shall terminate and be of no further force or effect, and neither party shall have any
further obligation to the other except for those obligations that survive the termination of this Agreement and provided in this Agreement; and (iv) Buyer shall return to Seller copies of all Documents and Materials previously delivered to or
obtained by Buyer from Seller. If Buyer fails to provide Seller and Escrow Holder with written notice of termination to Seller and Escrow Holder on or before the expiration of the Contingency Period, Buyer shall be deemed to have waived its right of
termination contained in this Section. Upon expiration of the Contingency Period, Buyer shall have no further right to conduct further Due Diligence requiring physical inspection of the Property. 
 7.1.2 Buyer’s Review of Title 
 (a) Generally 
 Buyer shall obtain a standard preliminary title report from the Title Company with respect to the Real
Property, together with copies of all the underlying documents relating to the Schedule B exceptions set forth in such reports (a “Report”). Buyer shall have until the expiration of the Contingency Period (the “Title Approval
Period”), to give Seller written notice (“Buyer’s Title Notice”) of Buyer’s approval, disapproval or conditional approval of any matters shown in the Report identifying each specific matter (each, a “Matter”) of
which Buyer disapproves, which approval, conditional approval or disapproval shall be in Buyer’s sole and absolute discretion. The failure of Buyer to give Buyer’s Title Notice on or before the end of the Title Approval Period shall be
deemed to constitute Buyer’s approval of the condition of title. 
 (b) New Title Matters  
 If, after the expiration of the Title Approval Period and prior to the Closing Date, Title Company issues any supplement or amendment to the Report which
reflects new exceptions to title which the Buyer has not otherwise approved (a “New Matter”), then Buyer shall give Seller written notice (a “New Matter Notice”) of that fact no later than five (5) calendar days after
becoming aware of the New Matter or by the Closing Date, whichever is the first to occur, indicating whether Buyer approves and accepts, or disapproves of, such New Matter, in Buyer’s sole and absolute discretion. If Buyer does not timely
deliver to Seller a New Matter Notice approving or disapproving of such New Matter, the Buyer shall be deemed to have approved of such New Matter. 
 (c) Handling of Title Matters 
 If Buyer has disapproved of any Matter or New Matter as provided herein (any Matter or New
Matter being referred to as a “Title Matter”) and Seller fails to give written notice (an “Election to Cure Notice”) to Buyer (A) within three (3) business days after Seller’s receipt of the applicable Matter
Notice or New Matter Notice (each, a “Title Matter Notice”), or (B) by the Closing Date, whichever is the first to occur, informing Buyer that Seller wishes to cure or to attempt to cure the applicable Title Matter, then
(C) Buyer shall have the right exercisable in its sole and absolute discretion, upon delivery to Seller, on or before two (2) business days following expiration of the three (3) business day period referenced in clause (A) above
or by the Closing Date, whichever is the first to occur, to either (i) waive its prior disapproval or conditional approval, in which event said disapproved or conditionally approved matters shall be deemed approved, or (ii) terminate this
Agreement and the Escrow created pursuant hereto, in which event Buyer shall be entitled to a return of the Deposit. Failure to take either one of the actions described in clauses (i) and (ii) above shall be deemed to be Buyer’s
election to take the action described in clause (ii) above, subject to the provisions of subparagraph (d) below. 
  

					
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 (d) Seller’s Right to Cure Title Matters  
 If Seller has timely given to Buyer an Election to Cure Notice, Seller shall have fifteen (15) calendar days after delivering said Election to Cure
Notice to Buyer to cure the Title Matter by (A) causing the Title Matter to be removed from the Report or any supplement thereto, or (B) causing the Title Company to insure Buyer against loss or damage (up to the policy limit) resulting
from the Title Matter in a manner acceptable to Buyer in Buyer’s reasonable discretion. The Closing Date shall be extended as necessary in order to take into account such fifteen (15) day cure period. Having once informed Buyer that Seller
wishes to cure or to attempt to cure a Title Matter, but Seller is unable to do so or elects not to do so, Seller may at any time, by written notice to that effect given to Buyer, without any liability to Buyer, elect not to cure or attempt to cure
that Title Matter (a “Rescission Notice”), and Buyer may, by written notice to Seller, within five (5) calendar days following receipt of the Rescission Notice either (i) waive its prior disapproval or conditional approval, in
which event said disapproved or conditionally approved matters shall be deemed approved, or (ii) terminate this Agreement and the Escrow created pursuant hereto, in which event Buyer shall be entitled to the return of the Deposit. Failure to
take either one of the actions described in clauses (i) and (ii) above shall be deemed to be Buyer’s election to take the action described in clause (i) above. Seller shall have no obligation to enter into any indemnity, bond or
other undertaking in connection with the cure of any Title Matter. 
 (e) Termination of Agreement 
 If this Agreement is terminated by Buyer pursuant to the provisions of this Section 7.1.2, (i) Escrow Holder shall return the Deposit to Buyer;
(ii) Buyer and Seller shall share the cost of any title or escrow cancellation fees fifty percent (50%) each; (iii) this Agreement and the Escrow created pursuant hereto shall terminate and be of no further force or effect, and
neither party shall have any further obligation to the other except for those obligations that survive the termination of this Agreement as expressly provided in this Agreement; and (iv) Buyer shall return to Seller copies of all Documents and
Materials previously delivered to or obtained by Buyer from Seller. 
 7.1.3 Seller’s Obligations 
 As of the Close of Escrow, Seller shall have performed all of the obligations required to be performed by Seller under this Agreement. 
 7.1.4 Title Policy 
 Subject to
Section 6, the Title Company shall be unconditionally and irrevocably obligated to issue the Title Policy with liability in the amount of the Purchase Price showing title to the Real Property vested in Buyer and subject only to those matters
approved by Buyer (or deemed approved by Buyer) as provided in Sections 5 and 7.1.2 hereof. 
 7.1.5 Operating Agreements; FF&E
Leases; Management Agreements 
 As of the Close of Escrow, (i) except for those Operating Agreements, FF&E Leases,
Advertising Agreements and Advance Agreements which Seller has notified Buyer cannot be assigned or which Buyer has elected not to assume, Seller shall assign all Operating Agreements, FF&E Leases, Advertising Agreements and Advance Agreements
to Buyer and Buyer shall assume the same and (ii) Seller shall terminate the Management Agreement. Seller shall indemnify, defend and hold Buyer harmless from and against any and all liabilities, costs, claims, losses, and expenses (including
reasonable attorneys’ fees) incurred by Buyer arising out of or resulting from the breach or default by the holder of Seller’s position of any of the obligations, terms and/or covenants of the Operating Agreements, FF&E Leases,
Advertising Agreements, Advance Agreements and the Management Agreement arising or accruing prior to the Close of Escrow. Buyer shall indemnify, defend and hold Seller harmless from and against any and all liabilities, costs, claims, losses, and
expenses (including reasonable attorneys’ fees) incurred by Seller arising out of or resulting from the breach or default by the holder of Seller’s position of any of the obligations, terms and/or covenants of the Operating Agreements
FF&E Leases, Advertising Agreements and Advance Agreements arising or accruing on or after the Close of Escrow. The indemnification obligations of Seller contained herein shall survive the Close of Escrow for a period of six (6) months.

 7.1.6 Representations and Warranties True 
 The representations and warranties of Seller contained herein, and in all certificates delivered by Seller to Buyer, pursuant to this Agreement or in connection with the transactions contemplated hereby shall be in
all 

  

					
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material respects true and accurate as of the date when made and at and as of the Closing Date as though such representations and warranties were made at and
as of such date, except for changes permitted or contemplated by the terms of this Agreement. 
 7.2 Conditions to Seller’s
Obligations 
 Seller’s obligation to consummate the transaction contemplated by this Agreement is subject to the satisfaction of
the following conditions for the benefit of Seller (or Seller’s waiver thereof) on or prior to the dates designated below for the satisfaction of such conditions. 
 7.2.1 Buyer’s Obligations 
 As of the Close of Escrow, Buyer shall have performed all of
the obligations required to be performed by Buyer under this Agreement. 
 7.2.2 Representations and Warranties True

 The representations and warranties of Buyer contained herein, and in all certificates delivered by Buyer to Seller, pursuant to this
Agreement or in connection with the transactions contemplated hereby shall be in all material respects true and accurate as of the date when made and at and as of the Closing Date as though such representations and warranties were made at and as of
such date. 
 7.3 Failure of Condition 
 Except as otherwise provided in this Agreement, if the Escrow fails to close on or before the Closing Date for any reason whatsoever (other than a reason for which Buyer or Seller has the express right to postpone the
Closing Date), including, without limitation, a failure of a condition precedent set forth in this Section 7, either Buyer or Seller, if not then in default hereunder, may terminate the Escrow and this Agreement and, thereupon: 
 (a) the costs of Escrow and title fees through the Closing Date shall be paid by the party whose failure to perform an applicable condition precedent
caused such failure to close, or, if neither or both Buyer and Seller have failed to perform, such costs shall be paid by Buyer; 
 (b)
except as otherwise provided in Section 19.1, all monies paid into the Escrow (including any interest earned thereon) and all documents deposited in the Escrow shall be returned to the party paying or depositing the same; 
 (c) except as provided in Section 7.3(a) above, each party shall pay its own costs and expenses; 
 (d) subject to Section 19.1, each party shall be released from all obligations under this Agreement except for the obligations which survive
termination as provided herein; and 
 (e) Buyer shall return to Seller or destroy copies of all Documents and Materials previously delivered
to or obtained by Buyer from Seller. 
 Notwithstanding anything in this Section 7.3 to the contrary, in no event shall
either party’s termination of this Agreement pursuant to this Section 7.3 affect the right of either party to seek and obtain the remedies available to such party pursuant to Section 19 of this Agreement. 
 8. Franchise Agreement; Guest Property 
 8.1
Franchise Agreement 
 Effective as of the Close of Escrow, Buyer shall be assigned the Franchise Agreement or the Franchise
Agreement shall be terminated, depending upon the decision of Buyer and Franchisor. If the Agreement is assigned, such new agreement is referred to as a “Transfer.” Buyer shall make such applications with the Franchisor within seven
(7) days after the Effective Date of this Agreement and shall use good faith and commercially reasonable efforts to obtain a Transfer of the Franchise Agreement (or if desired by Buyer a termination of the Franchise Agreement). Prior to the
Close of Escrow and upon the request of Seller, Buyer shall update Seller as to Buyer’s efforts to obtain a Transfer. Buyer shall notify Seller prior to the Closing Date, as to whether Buyer has obtained a Transfer of the Franchise Agreement.
The fees, costs, expenses and premiums associated with any Transfer of the Franchise Agreement shall be borne solely by Buyer; provided, however, Seller shall be solely responsible for any and all accrued franchise fees, “Key Money”
repayment and other pre-closing expenses arising under the Franchise Agreement as contemplated by Sections 7.1.1(c) and 12.4. 
  

					
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 8.2 Guest Property in Seller’s Possession at Close of Escrow 
 (a) On the Closing Date, Seller shall cause notice to be sent to all guests of the Hotel who have safe deposit boxes advising them of the pending sale of
the Property and requesting the removal and verification of the contents of such safe deposit boxes within three (3) days after the Closing Date. Seller may have a representative present at the Hotel during such three-day period for the purpose
of viewing such removal and verification. Boxes of guests not responding to the written notice shall be listed at the end of such three (3) day period. Such boxes shall be opened on the following day in the presence of representatives of Seller
and Buyer to be agreed upon between Seller and Buyer and the contents thereof shall be recorded. Any property contained in the safe deposit boxes and so recorded and thereafter remaining in the hands of Buyer shall be the responsibility of Buyer,
and Buyer hereby agrees to indemnify and save and hold Seller harmless from and against any claim or obligation arising out of or with respect to such property. 
 (b) All guest baggage or other property checked and left in possession, care and control of Seller shall be listed in an inventory to be prepared in duplicate and signed by Seller’s and Buyer’s
representatives on the Closing Date. Buyer’s shall be responsible from and after the Closing Date for all baggage listed in inventory, and Buyer hereby agrees to indemnify and save and hold Seller harmless from and against any claim arising out
of or with respect to the baggage listed in the inventory. 
 (c) The provisions of the Section 8.2 shall survive the Close of Escrow.

 9. Deposits by Seller 
 At least
one (1) business day prior to the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder the following documents and instruments. 
 9.1 Grant Deed 
 The Grant Deed, duly executed and acknowledged by Seller. 
 9.2 Seller’s Tax Certificates 
 A certificate of non-foreign status and a California Withholding Exemption Certificate (collectively, “Seller’s Tax Certificate”), duly executed by Seller, substantially in the form attached hereto as Exhibit “C”.

 9.3 Bill of Sale 
 Two counterpart originals of a bill of sale conveying the Personal Property to Buyer (“Bill of Sale”), duly executed by Seller, substantially in the form attached hereto as Exhibit “D”. 
 9.4 Assignment of Intangible Property 
 Two counterpart originals of an assignment of the Intangible Property conveying the Intangible Property to Buyer (“Assignment of Intangible Property”), duly executed by Seller, substantially in the form attached hereto as Exhibit
“E”, pursuant to which Seller shall assign to Buyer all of Seller’s right, title and interest in, under and to the Intangible Property and Buyer shall assume the same. 
 9.5 Assignment of Contract Rights 
 Two counterpart originals of the Assignment and Assumption of Contract Rights (“Assignment of Contract Rights”), duly executed by Seller substantially in the form attached hereto as Exhibit “F”, pursuant to which Seller
shall assign to Buyer all of Seller’s right, title and interest in, under and to the Contract Rights and Buyer shall assume the same. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-9-	 	

 9.6 Franchisor Documents 
 Such documents as required by Franchisor to terminate the Franchise Agreement or to complete an assignment of the Franchise Agreement (whichever is
applicable), so long as such documents to not impose upon Seller any additional cost or liability. 
 9.7 Holdback Agreement 

 Three counterpart originals of the Holdback Agreement duly executed by Seller. 
 9.8 Other Instruments 
 Such
other documents and instruments to be executed and/or delivered by or on behalf of Seller as provided or contemplated by this Agreement, including a closing date report of Advance Bookings (as contemplated by Section 7.1.1(b)), a letter
agreement regarding the Parker Agreement and Seller’s rights to payment pursuant thereto, and an agreement as to the contents of the online data site (as contemplated by Section 14.10). 
 10. Deposits by Buyer 
 Buyer shall deposit or
cause to be deposited with Escrow Holder the Purchase Price in the amounts and at the times set forth in Section 3 above. In addition, Buyer shall deposit with Escrow Holder at least one (1) business day prior to the Closing Date the
following documents and instruments: 
 10.1 Assignment of Intangible Property 
 Two counterpart originals of the Assignment of Intangible Property, duly executed by Buyer. 
 10.2 Assignment of Contract Rights 
 Two counterpart originals of the Assignment of Contract Rights duly executed by Buyer. 
 10.3 Franchisor Documents 

 Such documents required by Franchisor to evidence the assignment to and assumption of the Franchise Agreement by Buyer, and the consent of
Franchisor to such assignment and assumption, or the termination of the Franchise Agreement, which ever is applicable, such documents in a form and substance acceptable to Buyer. 
 10.4 Buyer’s Financing Documents 
 Such documents as are required by Buyer’s lender(s) to evidence and secure the Buyer’s financing, such documents to be in a form and substance acceptable to Buyer (the “Buyer’s Financing Documents”). 
 10.5 Hold Back Agreement 
 Three counterpart originals of the Holdback Agreement duly executed by Buyer. 
 10.6 Other Instruments 
 Such other documents and instruments to be executed and/or delivered by or on behalf of Buyer as provided or contemplated by this Agreement, including a
letter agreement regarding the Parker Agreement and Seller’s rights to payment pursuant thereto, and an agreement as to the contents of the online data site (as contemplated by Section 14.10). . 
 11. Costs and Expenses 
 The escrow fee of
Escrow Holder shall be shared equally by Seller and Buyer. Seller shall pay (i) all documentary transfer taxes, and (ii) the cost of the CLTA portion of the Title Policy. Buyer shall pay (i) the cost of the ALTA portion of the Title
Policy and any endorsements requested by Buyer, (ii) the cost and premiums for any title insurance required by Buyer’s lender(s), (iii) all fees, costs, expenses and charges assessed by the Franchisor in connection with the assignment
and assumption or terminate of the Franchise Agreement, (iv) the recording fees payable in connection with the recordation of the Grant Deed, and (v) any sales and use taxes payable in connection with the sale of the Hotel. The cost of any
and all ALTA surveys obtained by Buyer shall be paid by Buyer. Buyer and Seller shall each pay the fees and expenses of their own lenders, attorneys, accountants and other advisors retained in connection with the negotiation, documentation and
closing of the purchase and sale contemplated hereby and any investigations or inspections in connection therewith. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-10-	 	

 12. Prorations 
 The following prorations shall be made between Seller and Buyer on the Close of Escrow, computed as of 11:59 P.M. on the date immediately preceding the Closing Date (the “Cutoff Time”). 
 12.1 Taxes and Assessments 
 (a) Real and personal property taxes and assessments on the Property (including but not limited to all general and special taxes, also called “ad valorem” taxes and general and special assessments including improvement, bonded and
so called “betterment” assessments) shall be prorated as of the Close of Escrow based on the latest available tax information. It is agreed that, as between Buyer and Seller, any supplemental real property taxes arising as a result of the
transfer of the Real Property shall be the sole responsibility of Buyer and any supplemental real property taxes allocable by the taxing authority to any period prior to the Close of Escrow shall be the sole responsibility of Seller. The proration
shall be based on a three hundred sixty-five (365) day year. 
 (b) In no event shall Seller be charged with or responsible for any
increase in real or personal property taxes resulting from the sale of the Property to Buyer or from any improvements made or entered into after the Close of Escrow. 
 (c) Any refunds of real or personal property taxes made after the Close of Escrow shall be held in trust and shall first be applied to the unreimbursed third-party costs incurred in obtaining the refund, then paid to
any lessees who are entitled to the same and the balance, if any, shall be paid to Seller (for the period prior to the Close of Escrow) and to Buyer (for the period commencing on and after the Close of Escrow). 
 (d) If any proceeding to determine the assessed value of the Real Property or the real or personal property taxes payable with respect to the Real
Property has been commenced before the date hereof and shall be continuing as of the Close of Escrow, Seller shall be authorized to continue to prosecute such proceeding and shall be entitled to any abatement proceeds therefrom allocable to any
period before the Close of Escrow. Buyer agrees to cooperate with Seller and to execute any and all documents reasonably requested by Seller in furtherance of the foregoing. 
 12.2 Utilities; Operating Expenses 
 Gas, water, electricity, heat, fuel, sewer, telephone service and other utilities and the operating expenses relating to the Property shall be prorated as of the Cutoff Time. If the parties are unable to obtain final meter readings as of
the Close of Escrow for the Cutoff Time, such expenses shall be estimated as of the Close of Escrow based on the prior operating history of the Property. Any amounts not known at the Closing Date will be part of the post-closing adjustments
described in Section 12.12. 
 12.3 Guest Ledger Receivables 
 Amounts accrued to the accounts of guests occupying rooms, including without limitation, room charges, meeting room rentals, and pay television at the
Hotel and any other accounts receivable of the Hotel Business (the “Guest Ledger Receivables”), for the room nights prior to the Cutoff Time shall be retained by Seller. Buyer and Seller shall share the amounts of Guest Ledger Receivables
for the room night in which the Cutoff Time occurs (fifty percent (50%) each. 
 12.4 Contracts 
 Any amounts prepaid or payable under any Contract Rights or the Franchise Agreement shall be prorated as of the Cutoff Time. All amounts known to be due
under any Contract Rights with reference to periods prior to the Cutoff Time shall be charged to Seller. Any additional amounts not known at the Cutoff Time will be part of the post-closing adjustments described in Section 12.12. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-11-	 	

 12.5 Advance Bookings; Reservation Deposits 
 Buyer shall receive a credit against the Purchase Price for Advance Booking payments, if any, to the extent the Advance Bookings relate to a period after
the Cutoff Time. 
 12.6 Food, Beverage and Other Income 
 Revenue from food, beverage and banquet services, room services, public room revenues, health club revenues, vending machine revenues belonging to Seller,
and other non-in-room services rendered to guests of the Hotel shall be prorated as of the Cutoff Time, if, as and when collected, provided that with respect to food, beverage and banquet services, such revenues shall be prorated as of the end of
the employee shift on the night preceding the Close of Escrow. 
 12.7 Intentionally Omitted. 
 12.8 Petty Cash Funds 
 Seller
shall remove and retain all petty cash funds and cash in house as of the Cutoff Time. 
 12.9 Accounts Payable 
 Seller shall be responsible for and shall pay all accounts payable relating to the Hotel (“Accounts Payable”) accrued as of the Cutoff Time.
Buyer shall be responsible for and shall pay all Accounts Payable relating to the Hotel which accrue on or after the Cutoff Time. The Accounts Payable shall include all amounts payable by Seller to creditors from whom FF&E, Operating Supplies
and other purchases have been made in connection with the ownership of the Property or the operation of the Hotel including, without limitation, amounts then owing under open purchase orders, accrued but unpaid amounts payable with respect to any
FF&E Leases or Operating Agreements, and with respect to all maintenance, cleaning, security and other services performed in connection with the operation of the Hotel. Seller shall be responsible for all sales and use tax liabilities, bed tax,
transient occupancy tax, gross receipts tax and any other tax related to the operation of the Hotel accruing before the Cutoff Time and Buyer shall be responsible for all such taxes accruing on or after the Cutoff Time. Buyer shall indemnify, defend
and hold Seller harmless from and against any and all liabilities, costs, claims, losses, and expenses (including reasonable attorneys’ fees) incurred by Seller arising out of or resulting from Buyer’s failure to pay any such taxes or
Accounts Payable which are accrued on or after the Close of Escrow. Seller shall indemnify, defend and hold Buyer harmless from and against any and all liabilities, costs, claims, losses, and expenses (including reasonable attorneys’ fees)
incurred by Buyer arising out of or resulting from Seller’s failure to pay any such taxes or Accounts Payable which are accrued prior to the Cutoff Time. The indemnification obligations contained herein shall survive the Close of Escrow for a
period of twelve (12) months. 
 12.10 Receivables 
 Except as otherwise provided in Section 12.3, Seller shall retain all receivables of the Hotel generated as of the Cutoff Time. Seller shall prepare
a list of its outstanding accounts receivable as of the Cutoff Time, specifying the name of each account and amount due Seller. All accounts receivable on such list and retained by Seller are referred to as “Seller’s Accounts
Receivable”. Seller agrees to notify, in writing, and confer with Buyer prior to bringing any legal action to enforce collection of payment of any of Seller’s Accounts Receivable against current tenants or guests of the Property or other
third parties in a contractual or business relationship with the Hotel on or prior to the Closing Date; provided; however, and subject to the foregoing, Seller shall not otherwise be prevented from bringing such action against such tenants or third
parties. Seller shall be solely responsible for the collection of Seller’s Accounts Receivable. 
 12.11 No Proration of Insurance
Premiums 
 In no event will there be any proration of insurance premiums under Seller’s existing policies of insurance relating
to the Property and/or the Business, and Buyer acknowledges and agrees that none of Seller’s insurance policies (or any proceeds payable thereunder) will be assigned to Buyer at the Close of Escrow, and Buyer shall be solely obligated to obtain
any and all insurance that it deems necessary or desirable. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-12-	 	

 12.12 Closing Statement 
 Seller and Buyer will jointly prepare and agree to, two (2) business days prior to the Closing Date, an estimated closing statement (“Closing
Statement”) which shall reflect the amounts of the items requiring the prorations and adjustments in this Agreement. The amounts set forth on the Closing Statement shall be the basis upon which the prorations and adjustments provided for herein
shall be made as of the Closing Date, and shall be relied upon by Escrow Holder in making such prorations. After the Closing Date, the Closing Statement shall be binding and conclusive on all parties hereto to the extent of the items covered by the
Closing Statement, unless within thirty (30) days after receipt by Buyer of the Closing Statement, either Buyer or Seller notifies the other that it disputes such Closing Statement, and specifying in reasonable detail the items it so disputes.
The parties shall attempt in good faith to resolve such dispute. If such dispute is not resolved within thirty (30) days after delivery of the of such notice of dispute by Buyer or Seller, the parties shall submit such dispute to a recognized
accounting firm mutually agreed to by Buyer and Seller (“Outside Accountants”), and the determination of the Outside Accountants, which shall be made within a period of fifteen (15) days after such submittal by the parties, shall be
conclusive. In the event that, at any time within said thirty (30) day period, either party discovers any items which should have been included in the Closing Statement but were omitted therefrom, such items shall be adjusted in the same manner
as if their existence had been known at the time of the preparation of the Closing Statement. The foregoing limitation shall not apply to any item which, by its nature, cannot be finally determined within the period specified. However, no further
adjustments shall be made beyond six (6) months after the Closing Date. 
 13. Disbursements and Other Actions by Escrow Holder

 Upon the Close of Escrow, Escrow Holder shall promptly undertake all of the following. 
 13.1 Prorations 
 Prorate all
matters referenced in Section 12 based upon the Closing Statement. 
 13.2 Recording 
 Cause the Grant Deed, and any other documents which the parties hereto may mutually direct, to be recorded in the Official Records of Los Angeles County,
California, in the order directed by the parties. 
 13.3 Funds 
 Disburse from funds deposited by Buyer with Escrow Holder towards payment of all items chargeable to the account of Buyer pursuant hereto in payment of
such costs, including, without limitation, the payment of the Purchase Price to Seller, and disburse the balance of such funds, if any, to Buyer. 
 13.4 Title Policy 
 Direct the Title Company to issue the Title Policy to Buyer. 
 13.5 Documents to Seller 
 Deliver to Seller counterparts of the Assignment of Contract Rights and the Assignment of Intangible Property, together with a copy of any other recorded documents showing all available recording information. 
 13.6 Documents to Buyer 
 Deliver to Buyer a conformed copy of the Grant Deed, the Seller’s Tax Certificates, the Bill of Sale, Holdback Agreement, Assignment of Contract Rights and Assignment of Intangible Property executed by Seller. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-13-	 	

 14. Seller’s Representations and Warranties 
 Seller makes the following representations and warranties to Buyer: 
 14.1 Power and Authority 
 Seller is duly organized, validly existing, and in good standing
under the laws of the state of its formation and has all requisite power and authority to carry on its business as now conducted and to own and operate its properties and assets now owned and being operated by it. Seller has the power and authority
to enter into this Agreement and to carry out its obligations under this Agreement. 
 14.2 Due Authorization 
 This Agreement and all agreements, instruments and documents herein provided to be executed by Seller are and as of the Closing Date will be duly
authorized, executed and delivered by Seller. Upon the execution and delivery by Seller of this Agreement, and any other documents to be executed at the Close of Escrow, such documents shall constitute the legal, valid and binding obligations of
Seller, enforceable against Seller in accordance with their respective terms. 
 14.3 No Conflict 
 The execution and delivery of this Agreement and the performance of its obligations hereunder by Seller will not: (i) conflict with any provision of
any law, order or regulation to which Seller or the Property is subject; (ii) conflict with, result in a breach of or constitute a default under any of the terms, conditions or provisions of any agreement or instrument to which the Seller is a
party or by which it or the Property is bound; (iii) violate any order, judgment, or decree of any court or other agency of government applicable to Seller or the Property; or (iv) result in or require the imposition of any lien, claim, or
demand upon any of the Property. 
 14.4 Litigation 
 Seller has received no notice of any action, suit or proceeding that is pending in any court or by or before any other governmental agency or
instrumentality against the Property or would materially and adversely affect the ability of Seller to carry out the transactions contemplated by this Agreement except as set forth in Schedule 14.4 attached hereto. To the best of Seller’s
knowledge, no such action, suit or proceeding is threatened against the Property, except as set forth in Schedule 14.4. 
 14.5 No
Condemnation 
 No condemnation or taking of all or any portion of any of the Property by any governmental entity or agency is
pending, or, to the best of Seller’s knowledge, threatened against the Property. 
 14.6 Agreements 
 Schedules 14.6.a through 14.6.c attached to this Agreement, contain lists of, respectively, FF&E Leases, Operating Agreements and Advertising
Agreements affecting the Property or the Hotel. To the best of Seller’s knowledge, FF&E Leases, Operating Agreements and Advertising Agreements listed in the Schedules are valid, binding and in full force and effect. 
 14.7 Insolvency 
 Seller has
not (i) made a general assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by Seller’s creditors; (iii) suffered the appointment of a receiver
to take possession of all or substantially all of Seller’s assets; or (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s assets. 
 14.8 Brokers 
 Seller has not
dealt with any broker, finder or similar person in connection with the transactions contemplated by this Agreement, other than Eastdil Secured for whose fees and/or commission Seller shall be solely responsible. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-14-	 	

 14.9 Definition 
 “To the best of Seller’s knowledge” or similar words, shall mean the current, actual knowledge (and shall not include the implied, imputed
or constructive knowledge) of Seller without making, and without any duty to make any investigation or inquiry. 
 14.10 Seller’s
Representations Deemed Modified 
 To the extent that Buyer obtains actual knowledge prior to the expiration of the Contingency Period
that Seller’s representations and warranties are inaccurate, untrue or incorrect in any way, such representations and warranties shall be deemed modified to reflect Buyer’s knowledge. For purposes of this Agreement, Buyer shall be deemed
to have “actual knowledge” of what is set forth in this Agreement, the Report, survey, Contract Rights, the Documents and Materials, and any other books, records, documents delivered to Buyer, or made available to Buyer pursuant to that
certain online data site set up by Seller’s Broker, or any studies, tests reports or analyses prepared by or for Buyer. The parties shall sign a statement setting forth their agreement of what was presented in the data site at Closing.

 14.11 Notice of Breach; Seller’s Right To Cure 
 If, after expiration of the Contingency Period but prior to the Close of Escrow, Buyer or Seller obtains actual knowledge that any of the representations
and warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, then such party shall give the other party written notice thereof within five (5) days of obtaining such knowledge (but in any event prior to the
Close of Escrow.) In such case, Seller shall have the right, but not the obligation, to cure such misrepresentation or breach and shall be entitled to a reasonable adjournment of the Closing Date for the purpose of such cure. If Seller is unable or
otherwise elects not to so cure any such misrepresentation or breach, then Buyer, as its sole and exclusive remedy for any and all such materially untrue, inaccurate or incorrect representations or warranties discovered by Buyer prior to the Close
of Escrow, shall elect either (a) to waive such misrepresentations or breaches of warranties and consummate the transactions contemplated herein without any reduction of or credit against the Purchase Price, or (b) to terminate this
Agreement by written notice given to Seller on the Closing Date, in which event this Agreement shall be terminated, the Deposit shall be returned to Buyer and neither party shall have any further rights or obligations hereunder, except for those
rights and obligations which expressly survive the termination of this Agreement. 
 14.12 Survival 
 If the Close of Escrow occurs, the representations and warranties of Seller in this Section 14 shall survive the Close of Escrow (and not be merged
therein) for a period of twelve (12) months following the Close of Escrow and the maximum aggregate liability of Seller for Seller’s breaches of representations and warranties herein or in any documents executed by Seller at the Close of
Escrow shall be limited as set forth in Section 21 hereof. Additionally, if the Close of Escrow occurs, Buyer hereby expressly waives, relinquishes and releases any right or remedy available to it at law, in equity or under this Agreement to
make a claim against Seller for damages that Buyer may incur, or to rescind this Agreement or the transactions contemplated herein, as a result of any of Seller’s representations or warranties being untrue, inaccurate or incorrect if Buyer knew
or is deemed to have known that such representation or warranty was untrue, inaccurate or incorrect at the Close of Escrow. The provisions of this Section 14.12 shall survive the Close of Escrow. 
 15. Buyer’s Representations and Warranties 
 Buyer makes the following representations and warranties: 
 15.1 Power and Authority 
 Buyer is duly organized, validly existing, and in good standing under the laws of the state of its formation, and will be so organized, existing and in
good standing as of the Close of Escrow in the State of California, and has all requisite power and authority to carry on its business as now conducted and to own and operate its properties and assets now owned and being operated by it. Buyer has
the power and authority to enter into this Agreement and to carry out its obligations under this Agreement. 
  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-15-	 	

 15.2 Due Authorization 
 This Agreement and all agreements, instruments and documents herein provided to be executed by Buyer are and as of the Closing Date will be duly
authorized, executed and delivered by Buyer. Upon the execution and delivery by Buyer of this Agreement, and any other documents to be executed at the Close of Escrow, such documents shall constitute the legal, valid and binding obligations of
Buyer, enforceable against Buyer in accordance with their respective terms. 
 15.3 No Conflict 
 To the best of Buyer’s knowledge, the execution and delivery of this Agreement and the performance of its obligations hereunder by Buyer will not:
(i) conflict with any provision of any law, order or regulation to which Buyer is subject; (ii) conflict with, result in a breach of or constitute a default under any of the terms, conditions or provisions of any agreement or instrument to
which the Buyer is a party; or (iii) violate any order, judgment, or decree of any court or other agency of government applicable to Buyer. 
 15.4 Litigation 
 To the best of Buyer’s knowledge, no action, suit or proceeding is pending in any court or by
or before any other governmental agency or instrumentality against Buyer which would materially and adversely affect the ability of Buyer to carry out the transactions contemplated by this Agreement. To the best of Buyer’s knowledge, no such
action, suit or proceeding is threatened against Buyer. 
 15.5 Insolvency 
 Buyer has not (i) made a general assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or suffered the filing
of an involuntary petition by Buyer’s creditors; (iii) suffered the appointment of a receiver to take possession of all or substantially all of Buyer’s assets; or (iv) suffered the attachment or other judicial seizure of all, or
substantially all of Buyer’s assets. 
 15.6 Financial Resources 
 Buyer’s financial condition and ability to perform its obligations under this Agreement are as represented to Seller on any financial statements and
other written information previously submitted to Seller by Buyer. Buyer has adequate financial resources to make timely payment of all sums due from Buyer hereunder and to perform its obligations hereunder. 
 15.7 Plan for Hotel 
 Buyer is
not intending to permanently close the Hotel within sixty (60) days after the Closing Date. 
 15.8 Brokers 
 Buyer has not dealt with any broker, finder or similar person in connection with the transactions contemplated by this Agreement, other than Eastdil
Secured. 
 15.9 Definition 
 “To the best of Buyer’s knowledge” or similar words, shall mean the current, actual knowledge (and shall not include the implied, imputed or constructive knowledge) of Buyer without making, and without
any duty to make any investigation or inquiry. 
 15.10 Survival 
 If the Close of Escrow occurs, the representations and warranties of Buyer in this Section 15 shall survive the Close of Escrow (and not be merged
therein) for a period of twelve (12) months following the Close of Escrow. 
  

					
	Ocean Park Hotels-MMM, LLC	 		 	
	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-16-	 	

 16. Covenants Pending Close of Escrow; Liquor License Escrow 
 During the period from the date of this Agreement until the earlier of Close of Escrow or termination of this Agreement as provided herein: 
 16.1 Operation and Maintenance 
 Seller shall continue to operate the Hotel in substantially the manner as it is being operated on the date of this Agreement, unless interrupted by fire or other casualty, or by any other reason beyond the reasonable control of Seller and
Seller shall maintain the Property and Hotel (including, without limitation the FF&E) in substantially the same condition as existing on the date of this Agreement, reasonable wear and tear and fire and other casualty excepted and subject to the
rights of Seller or its Manager to make replacements (with items of comparable quality), changes and repairs of such items in the ordinary course of business through the Closing Date 
 16.2 Modification of FF&E Leases and Contracts 
 Until the expiration of the Contingency Period, Seller shall have the right in its sole discretion to alter, amend, renew, extend or terminate (collectively a “Modification”) FF&E Leases or the Operating
Agreements, and to enter into any new FF&E Leases or Operating Agreements as Seller deems necessary in connection with the continued operation of the Property and Hotel, provided that Seller shall notify Buyer of all such Modifications and new
FF&E Leases and Operating Agreements. From and after the expiration of the Contingency Period, provided Buyer has not otherwise terminated this Agreement in accordance with Section 7.1 hereof, Seller shall not without the prior written
consent of Buyer (which consent shall not be unreasonably withheld) (a) enter into any new FF&E Leases or Operating Agreements which are not terminable upon thirty (30) days’ notice or which require the payment of any amounts
beyond the Closing Date, or (b) alter, amend, renew, extend or terminate the FF&E Leases or the Operating Agreements except in the ordinary course of business. Seller shall provide Buyer with true, correct and complete copies of each such
Modification, any renewal of any existing contract entered into in the ordinary course of business and any new agreements. Subject to the foregoing, Seller shall use reasonable efforts to keep the Contract Rights in full force and effect.

 16.3 Advance Booking 
 Seller shall continue, consistent with past practice, to enter into Advance Booking Agreements for the Hotel in the ordinary course of business. Seller shall give Buyer reasonable notice of any additions to or cancellations of Advance
Bookings. 
 16.4 Inventories and Supplies 
 Seller shall continue, consistent with past practice, to contract for goods, services and supplies in the ordinary course of business, and to maintain customary levels of Operating Supplies at the Hotel in the manner
previously maintained by Seller. 
 16.5 Encumbrances 
 Seller shall not, without the prior written consent of Buyer, which consent shall not be unreasonably withheld, take any affirmative act which would
subject the Real Property to any lien, encumbrance or charge not in existence as of the date of this Agreement and which would have a material adverse effect on the value of the Real Property or Seller’s ability to consummate the transactions
contemplated under this Agreement and which shall not otherwise be eliminated prior to the Close of Escrow at Seller’s expense. 
 16.6 Liquor License 
 Seller will cooperate with Buyer in all reasonable respects in connection with the transfer of
liquor licenses used in connection with the operation of the Hotel to Buyer or Buyer’s application for new liquor licenses. Seller and Buyer shall open, or caused to be opened, a separate escrow (“Liquor Escrow”) with an escrow
company selected by Buyer and reasonably acceptable to Seller to effect the transfer of the liquor licenses with a reasonable portion of the Purchase Price (not to exceed $50,000.00) designated as consideration for the transfer of the licenses and
the Consumables which are alcoholic beverages. Seller shall satisfy through the Liquor Escrow all claims of creditors 

  

					
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	Courtyard by Marriott Santa Clarita	 		 	
	Agreement of Purchase and Sale	 	-17-	 	

 
of Seller relating to the purchase and sale of alcoholic beverages at the Hotel through the Cutoff Time. Buyer shall promptly commence all actions required
to obtain a temporary license in its own name. Buyer shall file its license application within five (5) business days following the expiration of the Contingency Period and shall diligently pursue the application. Seller shall cooperate with
Buyer in filing all required renewal forms for the existing license and Buyer shall be responsible for paying any and all license renewal fees. Buyer shall indemnify, defend and hold Seller and its affiliates harmless against any liabilities
incurred in such operation and provide adequate insurance (including, without limitation, liquor liability insurance) naming Seller and its affiliates as additional insureds. In no event, shall the transfer of the existing liquor license or the
issuance of a new license be a condition precedent to Buyer’s obligations under this Agreement. 
 16.7 General Cooperation with
Buyer 
 Seller and Buyer shall cooperate in familiarizing Buyer with the operation of the Hotel and in Buyer’s preparations to
assume operation and management of the Hotel at the Close of Escrow. Buyer shall assure that its conduct, and that of its employees, agents and representatives, during such process is at all times unobtrusive and does not interfere with
Seller’s operation of the Hotel in the ordinary course of business. 
 16.7 Access to Financial Information 
 Buyer’s representatives shall have access to, and Seller and its Affiliates shall cooperate with Buyer and furnish upon request, all financial and
other information relating to Seller and the Hotel’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
the Close of Escrow 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 Sellers sufficient to enable an independent public accountant to render an opinion on the financial statements related to the Hotel. Buyer will reimburse Seller for costs reasonably incurred by Seller to comply with the requirements of
the preceding sentence. The provisions of this Section shall survive the Close of Escrow or termination of this Agreement. 
 17. Employment
Matters 
 17.1 Termination by Seller 
 Provided that all other conditions to the Close of Escrow have been satisfied, Manager shall terminate all Hotel Employees as of the Cutoff Time as defined in Section 12. 
 17.2 Wages and Other Employee Compensation 
 Wages, salaries and payroll taxes and other payroll deductions for all Hotel Employees who are working as of the Cutoff Time shall be paid by Seller or Manager. To the extent that Buyer hires Hotel Employees, such
employees shall “punch out” at the Cutoff Time and immediately “punch in”. Effective immediately after the Cutoff Time, wages, salaries and payroll taxes and other payroll deductions of the Hotel Employees shall be paid by Buyer.

 17.3 WARN Act 
 Buyer acknowledges the neither Seller nor Manager shall be employing the Hotel Employees following the Close of Escrow and that neither such party is giving any notice under, or otherwise complying with the Worker Adjustment and Retraining
Notification Act and any similar state or local law including without limitation California Labor Code Sections 1400 et seq. (collectively, and together with all rules and regulations promulgated thereunder, the “WARN Act”). 
  

					
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	Agreement of Purchase and Sale	 	-18-	 	

 18. 1031 Exchange 
 Either party may effectuate this transaction as part of an Internal Revenue Code Section 1031 tax deferred exchange transaction (“1031 Exchange”). In connection with such exchange, the exchanging
party’s rights under this Agreement may be assigned to an exchange facilitator selected by such exchanging party. The other party agrees to use reasonable efforts to cooperate with an exchanging party and such exchange facilitator, in a manner
so as to effect the contemplated 1031 Exchange; provided, however that (i) the other party shall have no obligation or liability whatsoever to the exchange facilitator; (ii) the other party shall not be obligated to cooperate with the
exchanging party in affecting the 1031 Exchange to the extent such cooperation would result in a delay in the Close of Escrow beyond the Closing Date or would cause such other party to incur any greater expense or any greater liability than if the
Property were conveyed to Buyer without such exchange occurring, and (iii) the exchanging party shall indemnify the other party from and against any material loss, damage or liability, including, without limitation, reasonable attorneys’
fees and costs, which the other party suffers as a result of the 1031 Exchange and solely to the extent such loss, damage and/or liability is in excess of that which the other party would incur in the absence of the 1031 Exchange. 
 19. Remedies 
 19.1 LIQUIDATED
DAMAGES 
 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IF BUYER HAS NOT TERMINATED THIS AGREEMENT PRIOR
TO THE EXPIRATION OF THE CONTINGENCY PERIOD IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, AND THE SALE OF THE PROPERTY TO BUYER IS NOT CONSUMMATED DUE TO A DEFAULT UNDER THIS AGREEMENT BY BUYER, SELLER SHALL BE ENTITLED TO RETAIN THE DEPOSIT AS
SELLER’S LIQUIDATED DAMAGES AS SELLER’S SOLE AND EXCLUSIVE REMEDY. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO ASCERTAIN THE ACTUAL DAMAGES SUFFERED BY SELLER AS A RESULT OF BUYER’S FAILURE TO COMPLETE
THE PURCHASE OF THE PROPERTY PURSUANT TO THIS AGREEMENT, AND THAT UNDER THE CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS AGREEMENT, THE LIQUIDATED DAMAGES PROVIDED FOR IN THIS SECTION REPRESENTS A REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER
WILL INCUR AS A RESULT OF SUCH FAILURE, PROVIDED, HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT SELLER’S RIGHTS TO RECEIVE REIMBURSEMENT FOR ATTORNEYS’ FEES, NOR WAIVE OR AFFECT SELLER’S RIGHTS AND BUYER’S INDEMNITY OBLIGATIONS
UNDER OTHER SECTIONS OF THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTION 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE
LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676, AND 1677. 
 THE PARTIES HAVE SET FORTH THEIR
INITIALS BELOW TO INDICATE THEIR AGREEMENT WITH THE LIQUIDATED DAMAGES PROVISION CONTAINED IN THIS SECTION. 
  

							
	 /s/ J. K.
	 		 	 /s/ J. F.
	  	
	Buyer’s Initials	 		 	Seller’s Initials	  	

 19.2 Buyer’s Pre-Closing Remedies 
 IN THE EVENT SELLER FAILS TO PERFORM ANY ACT REQUIRED TO BE PERFORMED BY SELLER PURSUANT TO THIS AGREEMENT ON OR BEFORE THE CLOSE OF ESCROW, THEN BUYER
SHALL EXECUTE AND DELIVER TO SELLER WRITTEN NOTICE OF SUCH BREACH, WHICH NOTICE SHALL SET FORTH COMPLETE INFORMATION ABOUT THE NATURE OF THE BREACH. UPON THE OCCURRENCE OF SUCH BREACH, BUYER’S SOLE AND EXCLUSIVE REMEDY SHALL BE EITHER:
(I) TO CANCEL THIS AGREEMENT, IN WHICH EVENT THE DEPOSIT SHALL BE RETURNED TO BUYER AND SELLER SHALL REIMBURSE BUYER FOR ITS ACTUAL OUT OF POCKET DUE DILIGENCE EXPENSES NOT TO EXCEED $75,000, OR (II) PROVIDED AN ACTION IS FILED WITHIN
NINETY (90) DAYS OF THE 

  

					
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DATE OF SUCH BREACH, FILE AN ACTION AGAINST SELLER FOR SPECIFIC PERFORMANCE OF THIS AGREEMENT, AND BUYER’S FAILURE TO INITIATE SUCH SCHEDULED ACTION
WITHIN SUCH NINETY (90) DAY PERIOD CONSTITUTES AN ABSOLUTE BAR FROM BUYER’S INSTITUTION OF ANY SUCH PROCEEDINGS. BUYER SHALL NOT BE ENTITLED TO RECORD A LIEN OR LIS PENDENS AGAINST THE PROPERTY OTHER THAN IN CONNECTION AND CONCURRENTLY
WITH THE FILING OF SUCH SPECIFIC PERFORMANCE ACTION. BUYER HEREBY WAIVES ANY RIGHT TO ANY OTHER DAMAGES (WHETHER ACTUAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR OTHERWISE). THE FOREGOING WAIVER IS A MATERIAL INDUCEMENT TO SELLER IN ENTERING INTO THIS
AGREEMENT AND SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS AGREEMENT. 
  

							
	 /s/ J. F.
	 		  	 /s/ J. K.
	  	
	SELLER’S INITIALS	 		  	BUYER’S INITIALS	  	

 20. Waiver of Trial by Jury 
 Seller and Buyer, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of action,
or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to this Agreement or the transactions related hereto or thereto, in each
case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the extent they may legally do so, Seller and Buyer hereby agree that any such claim, demand, action, cause of action, or
proceeding shall be decided by a court trial without a jury and that any party hereto may file an original counterpart or a copy of this Section with any court as written evidence of the consent of the other party or parties hereto to waiver of its
or their right to trial by jury. 
 21. Seller’s Maximum Aggregate Liability 
 Notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith,
(a) Buyer hereby expressly waives, relinquishes and releases any right or remedy available to it at law, in equity or under this Agreement or any documents executed by Seller in connection herewith, to receive any punitive, exemplary or
consequential damages from Seller in connection with the transactions contemplated herein, and (b) the maximum aggregate liability of Seller, and the maximum aggregate amount which may be awarded to and collected by Buyer (or any one claiming
by, through or under Buyer), relating in any way to the transactions contemplated under this Agreement (including, without limitation, the breach of any representations or warranties or covenants contained herein or any indemnification obligations
hereunder) and any and all documents executed pursuant hereto or in connection herewith, for which a claim is timely made by Buyer after the Close of Escrow, shall not exceed Two Million Dollars ($2,000,000.00). The provisions of this Section shall
survive the Close of Escrow and shall not be merged therein. 
 22. Damage or Destruction 
 22.1 Insubstantial Damage 
 In
the event of damage or destruction of the Real Property or any portion of the Real Property prior to the Close of Escrow in an amount not exceeding One Hundred Thousand Dollars ($100,000), subject to the terms and conditions of this Agreement, Buyer
and Seller shall consummate this Agreement without change in the Purchase Price, provided that Seller shall assign to Buyer at Close of Escrow its rights under any insurance policy, if any, covering such damage or destruction and shall credit Buyer
with the amount of any applicable deductible. 
 22.2 Substantial Damage 
 In the event of damage or destruction of the Real Property or any portion of the Real Property prior to the Close of Escrow in an amount in excess of One
Hundred Thousand Dollars ($100,000), Buyer may elect to terminate this Agreement upon written notice to Seller given within ten (10) days after learning of such damage or destruction, with the same effect as if terminated under
Section 7.1.1. If Buyer does not so terminate this Agreement as provided in the preceding sentence, the parties shall proceed to consummate this Agreement, in which event Seller shall assign to Buyer at Close of Escrow its rights under any
insurance policy covering such damage or destruction and shall credit Buyer with the amount of any applicable deductible. 
  

					
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 22.3 Cooperation 
 Seller agrees to reasonably cooperate with Buyer in the adjustment of any claim contemplated under this Section 22. 
 23. Condemnation 
 23.1 Insubstantial
Portion 
 If any portion of the Real Property is taken by condemnation or eminent domain or is the subject of a threatened or pending
condemnation or eminent domain proceeding that has not been consummated prior to the Close of Escrow resulting in a decrease in the value of the Real Property in an amount not exceeding One Hundred Thousand Dollars ($100,000), subject to the terms
of this Agreement, Buyer and Seller shall consummate this Agreement without change in the Purchase Price, provided that Seller shall assign to Buyer at Close of Escrow its rights, if any, to all awards for such condemnation or taking. 
 23.2 Substantial Portion 
 In
the event all or any portion of the Real Property is taken by condemnation or eminent domain or is the subject of a threatened or pending condemnation or eminent domain proceeding that has not been consummated prior to the Close of Escrow resulting
in a decrease in the value of the Real Property in an amount in excess of One Hundred Thousand Dollars ($100,000), Buyer may elect to terminate this Agreement upon written notice to Seller given within ten (10) days after learning of such
taking or proceeding, with the same effect as if terminated under Section 7.1.1. If Buyer does not terminate this Agreement as provided in the preceding sentence, the parties shall proceed to consummate this Agreement in which event Seller
shall assign to Buyer at Close of Escrow its rights, if any, to all awards for such condemnation or taking. 
 23.3 Cooperation

 Seller agrees to reasonably cooperate with Buyer in the adjustment of any claim contemplated under this Section 23. 
 24. Property “AS IS” 
 24.1 No
Side Agreements or Representations 
 No person acting on behalf of Seller is authorized to make, and by execution hereof, Buyer
acknowledges that no person has made any representation, agreement, statement, warranty, guarantee or promise regarding the Property or the transaction contemplated herein or the zoning, construction, physical condition or other status of the
Property except as may be expressly set forth in this Agreement. No representation, warranty, agreement, statement, guarantee or promise, if any, made by any person acting on behalf of Seller which is not contained in this Agreement will be valid or
binding on Seller. 
 24.2 AS IS CONDITION 
 BUYER ACKNOWLEDGES THAT EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SPECIFICALLY PROVIDED IN SECTION 14 HEREIN, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (I) VALUE; (II) THE
INCOME TO BE DERIVED FROM THE PROPERTY AND HOTEL; (III) THE SUITABILITY OF THE PROPERTY AND HOTEL FOR ANY AND ALL ACTIVITIES AND USES WHICH BUYER MAY CONDUCT THEREON, INCLUDING THE 

  

					
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POSSIBILITIES FOR FUTURE DEVELOPMENT OF THE PROPERTY AND HOTEL; (IV) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF THE PROPERTY; (V) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY; (VI) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY; (VII) THE
COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (VIII) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE
PROPERTY; (IX) COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATION, ORDERS OR REQUIREMENTS, INCLUDING BUT NOT LIMITED TO, TITLE III OF THE AMERICANS WITH DISABILITIES ACT OF 1990, CALIFORNIA HEALTH &
SAFETY CODE, THE FEDERAL WATER POLLUTION CONTROL ACT, THE FEDERAL RESOURCE CONSERVATION AND RECOVERY ACT, THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND
LIABILITY ACT OF 1980, AS AMENDED, THE RESOURCE CONSERVATION AND RECOVERY ACT OF 1976, THE CLEAN WATER ACT, THE SAFE DRINKING WATER ACT, THE HAZARDOUS MATERIALS TRANSPORTATION ACT, THE TOXIC SUBSTANCE CONTROL ACT, AND REGULATIONS PROMULGATED UNDER
ANY OF THE FOREGOING; (X) THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS AT, ON, UNDER, OR ADJACENT TO THE PROPERTY; (XI) THE CONTENT, COMPLETENESS OR ACCURACY OF THE DOCUMENTS AND MATERIALS OR PRELIMINARY REPORT REGARDING TITLE; (XII) THE
CONFORMITY OF THE IMPROVEMENTS TO ANY PLANS OR SPECIFICATIONS FOR THE PROPERTY, INCLUDING ANY PLANS AND SPECIFICATIONS THAT MAY HAVE BEEN OR MAY BE PROVIDED TO BUYER; (XIII) THE CONFORMITY OF THE PROPERTY TO PAST, CURRENT OR FUTURE APPLICABLE ZONING
OR BUILDING REQUIREMENTS; (XIV) DEFICIENCY OF ANY UNDERSHORING; (XV) DEFICIENCY OF ANY DRAINAGE; (XVI) THE FACT THAT ALL OR A PORTION OF THE PROPERTY MAY BE LOCATED ON OR NEAR AN EARTHQUAKE FAULT LINE; (XVII) THE EXISTENCE OF VESTED LAND USE, ZONING
OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY; OR (XVIII) WITH RESPECT TO ANY OTHER MATTER. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY AND REVIEW INFORMATION AND DOCUMENTATION AFFECTING THE
PROPERTY, EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN SECTION 14 OF THIS AGREEMENT, BUYER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION, AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION MADE AVAILABLE TO BUYER OR PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF
SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND, SUBJECT TO THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN SECTION 14 OF THIS AGREEMENT, SELLER MAKES NO REPRESENTATIONS AS
TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION OR CONSTRUCTION THEREOF, FURNISHED BY ANY
REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS” CONDITION AND
BASIS WITH ALL FAULTS, AND THAT SELLER HAS NO OBLIGATIONS TO MAKE REPAIRS, REPLACEMENTS OR IMPROVEMENTS EXCEPT AS MAY OTHERWISE BE EXPRESSLY STATED HEREIN. BUYER REPRESENTS, WARRANTS AND COVENANTS TO SELLER THAT, EXCEPT FOR SELLER’S EXPRESS
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN SECTION 14 OF THIS AGREEMENT, BUYER IS RELYING SOLELY UPON BUYER’S OWN INVESTIGATION OF THE PROPERTY. 
  

							
	 /s/ J. F.
	 		  	 /s/ J. K.
	  	
	SELLER’S INITIALS	 		  	BUYER’S INITIALS	  	

  

					
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 25. Release; Exclusions From Release 
 25.1 Release 
 Buyer shall rely
solely upon Buyer’s own knowledge of the Property based on its investigation of the Property and Seller’s express representations and warranties set forth in Section 14 of this Agreement, and its own inspection of the Property in
determining the Property’s physical condition. Except for a claim by Buyer against Seller for a breach of this Agreement by Seller, Buyer and anyone claiming by, through or under Buyer hereby waives its right to recover from and fully and
irrevocably releases Seller, its employees, officers, directors, representatives, agents, servants, attorneys, affiliates, parent, subsidiaries, successors and assigns (“Released Parties”) from any and all claims that it may now have or
hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to any construction defects, errors, omissions or other conditions, latent or
otherwise, including environmental matters, affecting the Property, or any portion thereof. This release includes claims of which Buyer is presently unaware or which Buyer does not presently suspect to exist which, if known by Buyer, would
materially affect Buyer’s release to Seller. Buyer specifically waives the provision of California Civil Code Section 1542, which provides as follows: 
  

	
	 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 In this connection and to the extent permitted by law, Buyer hereby agrees, represents and
warrants that Buyer realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently
unknown, unanticipated and unsuspected, and Buyer further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that Buyer nevertheless hereby intends to release,
discharge and acquit Seller from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which might in any way be included as a material portion of the consideration given to Seller by Buyer in
exchange for Seller’s performance hereunder. 
 Seller has given Buyer material concessions regarding this transaction in exchange for
Buyer agreeing to the provisions of this Section 25.1. Seller and Buyer have each initialed this Section 25.1 to further indicate their awareness and acceptance of each and every provision hereof. 
  

							
	 /s/ J. K.
	  		  	 /s/ J. F.
	  	
	BUYER’S INITIALS	  		  	SELLER’S INITIALS	  	

 25.2 Exclusions from Release and Disclaimers 
 Notwithstanding anything set forth in this Agreement that may be construed to the contrary, in no event shall the “as-is” provision of
Section 24.2 or release set forth in Section 25.1, limit or otherwise diminish, or include the representations or warranties of Seller expressly set forth in Section 14 hereof. 
 26. Notices 
 All notices or other
communications required or permitted hereunder shall be in writing and shall be personally delivered, sent by overnight courier, or sent by registered or certified mail, postage prepaid, return receipt requested, or sent by facsimile and shall be
deemed received upon the earlier of (i) if personally delivered or sent by overnight carrier, the date of delivery to the address of the person to receive such notice, or the next business day if delivered on a day which is not a business day,
(ii) if mailed, the date of delivery or refusal of delivery shown on the return receipt, or (iii) if given by facsimile, when sent provided the sending facsimile machine confirms by a written transmission report, the receipt of such
facsimile. 
  

					
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	Agreement of Purchase and Sale	 	-23-	 	

 Notices shall be addressed as follows: 
  

			
	To the Seller:	  	Ocean Park Hotels-MMM, LLC
		  	Attn: James M. Flagg
		  	27441 Tourney Road, Suite 220
		  	Santa Clarita, CA 91355
		  	Telephone: (805) 544-0800
		  	Facsimile: (805) 544-0808
		
	With a Copy to:	  	Mullen & Henzell L.L.P.
	(but which copy shall	  	Attn: Ramon R. Gupta
	not constitute notice)	  	112 E. Victoria Street
		  	P.O. Drawer 789
		  	Santa Barbara, CA 93101-0789
		  	Telephone: (805) 966-1501
		  	Facsimile: (805) 966-9204
		
	To Buyer:	  	Apple Nine Hospitality Ownership, Inc.
		  	814 E. Main Street
		  	Richmond, VA 23219
		  	Attn: Sam Reynolds
		  	Telephone: 804-727-6314
		  	Facsimile: 804-344-8129
		
	With a Copy to:	  	Apple Nine Hospitality Ownership, Inc.
	(but which copy shall	  	814 E. Main Street
	not constitute notice)	  	Richmond, VA 23219
		  	Attn: Legal Dept.
		  	Telephone: 804-727-6313
		  	Facsimile: 804-727-6349
		
	To Escrow Holder:	  	Land America American Title Company - 1951
		  	Escrow Officer: Debby Moore
		  	2505 N. Plano Rd., Suite 100
		  	Richardson, TX 75082
		  	Telephone: 214-570-0200
		  	Facsimile: 214-570-0210

 Notice of change of address shall be given by written notice in the manner detailed in this
Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. 
 27. Brokers 
 Seller represents and warrants to
Buyer that there are no commissions, finder’s fees or brokerage fees arising out of the transactions contemplated by this Agreement other than a brokerage fee payable by Seller to Eastdil Secured (“Seller’s Broker”) under a
separate agreement. Buyer shall have no obligation for Seller’s Broker’s commission. Buyer represents and warrants to Seller that there are no commissions, finder’s fees or brokerage fees arising out of the 

  

					
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transactions contemplated by this Agreement other than as described in the preceding sentence. Seller shall indemnify, defend and hold Buyer harmless from
and against any and all liabilities, claims, demands, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs in connection with claims for any such commissions, finders’ fees or brokerage fees arising out
of Seller’s conduct or the inaccuracy of the foregoing representation and/or warranty of Seller, including without limitation, payment of Seller’s Broker’s commission. Except for Seller’s Broker’s commission, Buyer shall
indemnify, defend and hold Seller harmless from and against any and all liabilities, claims, demands, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, in connection with claims for any such
commissions, finders’ fees or brokerage fees arising out of Buyer’s conduct or the inaccuracy of the foregoing representation and/or warranty of Buyer. The obligations of this Section shall survive any termination of this Agreement.

 28. Legal Fees 
 In the event
any action or suit is initiated by one party against another party by reason of any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this
Agreement, then, in that event, the prevailing party in such action or suit, whether by final judgment, or out of court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including actual
attorneys’ fees. Any judgment or order entered in any final judgment shall contain a specific provision for the recovery of all costs and expenses of suit and a determination of the “prevailing party”, including actual attorneys’
fees (collectively “Costs”) incurred in enforcing, perfecting and executing such judgment. For the purposes of this paragraph, Costs shall include, without limitation, attorneys’ fees, costs and expenses incurred in
(a) post-judgment motions, (b) contempt proceeding, (c) garnishment, levy, and debtor and third party examination, (d) discovery, and (e) bankruptcy litigation. 
 29. Assignment of Rights 
 Neither party shall sell, assign, transfer, convey, encumber,
hypothecate or otherwise divest itself of, in whole or in part, any of its rights or obligations under this Agreement without in each instance obtaining the prior written consent of the other party, which consent may be withheld in such party’s
sole and absolute discretion. No assignment pursuant to this Section will relieve the assignor of any of its obligations or liabilities under this Agreement and any permitted assignee will agree in writing to assume the assignor’s obligations
and liabilities hereunder and provide a copy of such assumption to the non-assigning party. Notwithstanding the foregoing, Buyer shall have the right to assign this Agreement to an entity that is controlled by or under common control with Buyer (a
“Buyer Affiliated Entity”); provided, however, that the Buyer Affiliated Entity shall execute (and provide Seller with a copy of) a written assumption document whereby the Buyer Affiliated Entity assumes, jointly with Buyer, each of
Buyer’s obligations hereunder and confirm each of Buyer’s representations, warranties and covenants set forth herein. In the event of an assignment to a Buyer Affiliated Entity, Buyer shall remain liable for any pre-closing or post-closing
obligations hereunder, and shall also be liable on a joint and several basis with respect to all assumption agreements, indemnifications, and similar understandings made by Buyer’s assignee or in respect of the Closing. Any assignment by Buyer
to a Buyer Affiliated Entity shall be consummated pursuant to an assignment and amendment to this Agreement in the form attached as Exhibit “G” to this Agreement. Any other purported or attempted assignment or delegation without obtaining
Seller’s prior written consent shall be void and of no effect. Buyer shall inform Seller and its attorneys of any contemplated assignment to be made to a Buyer Affiliated Entity five (5) business days prior to the Close of Escrow.

 30. Miscellaneous 
 30.1
Confidentiality 
 (a) Buyer and Seller acknowledge that it is in the best interests of Buyer and Seller to maintain the
confidentiality of the terms and provisions of this Agreement and the materials relating hereto. Except as otherwise provided herein or as required by Federal Securities Regulations, neither Buyer nor Seller shall disclose any of the terms or
provisions of this Agreement prior to the Close of Escrow to any person or entity not a party to this Agreement. Buyer and Seller shall keep in strictest confidence, all information related to the other party and all 

  

					
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materials provided or made available to it by the other party, which, as to Buyer, includes, without limitation, (i) all Documents and Materials
described in Section 7.1 above made available to Buyer, and (ii) all materials generated by Buyer in the course of conducting its inspections, review of books and records, and other due diligence activities relating to the Property
(including, without limitation, matters relating to the environmental condition of the Real Property), whether obtained through documents, oral or written communications, or otherwise (collectively, the “Information”). Under no
circumstances shall any of the Information provided to Buyer be used by Buyer for any purpose other than the investigation or financing of the Property in connection with its purchase by Buyer as contemplated under this Agreement. Buyer and Seller
shall have the right to disclose the Information to their attorneys, auditors, consultants, accountants and any other third parties which either party may employ or with which either party may work in connection with this transaction and the
investigations contemplated hereunder, together with Buyer’s and Seller’s respective directors, officers, employees, agents, lenders and/or partners (collectively “Permitted Recipients”); provided, however, that Buyer and Seller
shall inform their respective Permitted Recipients of, and shall obtain the agreement of each of their respective Permitted Recipients to be bound by, the confidentiality obligations contained herein. After the Close of Escrow, Buyer shall have the
right to disclose the Information at its discretion. 
 (b) Prior to the Close of Escrow, neither Seller nor Buyer shall issue any press
release or public statement regarding the proposed transaction. After the Close of Escrow, any press release or public statement issued by either Buyer or Seller regarding this transaction shall be subject to the prior approval of the other party,
which approval shall not be unreasonably withheld. 
 (c) In the event that either party or any of the Permitted Recipients are required (by
deposition, interrogatories, request for documents or similar legal or administrative process) by any legal or other governmental proceeding, or by any court order, law or applicable regulation, to disclose any Information, such party or its
Permitted Recipient will give the other party prompt notice of such requirement so that such other party may seek an appropriate protective order. If, in the absence of a protective order, either party or any of its Permitted Recipients are
nonetheless compelled in a proceeding to disclose Information, either party or its Permitted Recipient may disclose such Information as is required without being deemed to have breached this Agreement. The provisions of this Section shall survive
any termination of this Agreement. 
 30.2 Required Actions of Buyer and Seller 
 Subject to Buyer’s right to terminate the Agreement prior to the expiration of the Contingency Period as provided in Section 7.1, and except as
otherwise provided herein, Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be reasonably required in order to consummate the purchase and sale herein contemplated and shall use good
faith efforts to accomplish the Close of Escrow in accordance with the provisions hereof. 
 30.3 Time of Essence 

Time is of the essence of each and every term, condition, obligation and provision hereof. All references herein to a particular time of day shall be
deemed to refer to California time. 
 30.4 Counterparts 
 This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and
the same instrument. 
 30.5 Captions 
 Any captions to, or headings of, the Sections or Sub-sections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or
determination of the validity of this Agreement or any provision hereof. 
 30.6 No Obligations to Third Parties 
 The execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties hereto, to any person or
entity other than the parties hereto. 
  

					
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 30.7 Amendment to this Agreement 
 The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. 
 30.8 Waiver 
 The waiver or
failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. Any waiver must be in writing. 
 30.9 Fees and Other Expenses 
 Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Agreement. 
 30.10 Entire Agreement 
 This Agreement, together with the agreements and instruments executed and delivered in
connection herewith or pursuant hereto, supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between Buyer and Seller as to the subject matter hereof. No subsequent agreement,
representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the party to be bound thereby. 
 30.11 Partial Invalidity 
 If
any portion of this Agreement as applied to either party or to any circumstances shall be adjudged by a court to be void or unenforceable, such portion shall be deemed severed from this Agreement and shall in no way effect the validity or
enforceability of the remaining portions of this Agreement. 
 30.12 Successors and Assigns 
 Subject to the provisions of Section 29 hereof, this Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of
the parties hereto. 
 30.13 Days 
 Unless specifically set forth herein, “days” shall mean calendar days. In the event any date described in this Agreement relative to the performance of actions hereunder by Buyer, Seller and/or Escrow Holder
falls on a Saturday, Sunday or legal holiday under the laws of the State of California, such date shall be deemed postponed until the next business day thereafter. 
 30.14 Original Documents; Keys 
 On the Close of Escrow, Seller shall deliver to Buyer (or as
directed by Buyer) possession of the Property subject to the terms of the Agreement, copies of Seller’s files, records and correspondence related to the operation of the Hotel, together with the keys to the Improvements. 
 30.15 Applicable Law; Venue 
 This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of California. All obligations of the parties hereto created under this Agreement shall be performable in Los Angeles County,
California. The parties agree that venue for any action under this Agreement shall be Los Angeles County, California. 
 30.16 Consent
to Jurisdiction 
 Each party hereto hereby consents to jurisdiction in the United States District Court for the Central District of
California and in the Superior Court in and for the County of Los Angeles, within the State of California, for purposes of any litigation to construe or enforce any obligation hereunder or any other obligation arising herefrom or 

  

					
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therefrom, and each party hereto expressly covenants and agrees that service of process may be made, and personal jurisdiction over said party obtained, by
serving a copy of the summons and complaint upon said party in accordance with the applicable laws of the State of California at such address of said party as may from time to time be specified in accordance with the notice provisions contained
herein or at such other address as may then be proper under said laws. 
 30.17 Facsimile or Electronic Signatures 

Any signature on this Agreement, or any amendment or modification thereof, sent by facsimile or electronically shall be considered valid and binding.

 30.18 Authority of Signatories 
 Each person signing this Agreement represents and warrants that he is duly authorized and has the legal capacity to execute and deliver this Agreement on behalf of the party he represents. 
 30.19 Further Assurances. 
 In
addition to the obligations required to be performed hereunder by the parties hereto at or prior to the Close of Escrow, each party, from and after the Close of Escrow, shall execute, acknowledge and deliver such other instruments, documents,
certificates, and notices, and take such actions as may reasonably be required in order to effectuate the purposes of this Agreement. 
 30.20 Right to Cure. 
 Neither Seller nor Buyer shall avail itself of any remedy granted to it hereunder based upon an
alleged default of the other party unless notice of the alleged default in reasonable detail has been delivered to the defaulting party and the alleged default has not been cured within three (3) business days following the giving of notice.

 30.21 Joint and Several 
 Each and every obligation of Buyer set forth herein shall be the joint and several obligation of each separate Buyer named in this Agreement. 
 30.22 Submission of Agreement 
 The submission of this Agreement to Buyer or its broker, agent
or attorney for review or signature does not constitute an offer to sell the Property to Buyer, nor does it grant an option or other rights with respect to the Property to Buyer. No contract with respect to the purchase and sale of the Property
shall exist, and this writing shall have no binding force or effect, until it is executed and delivered by Buyer and by Seller and the Deposit has been timely delivered to the Escrow Holder. If Seller executes this Agreement prior to Buyer, then
this Agreement shall be void, at Seller’s sole option, unless Buyer also executes this Agreement and delivers it together with the Deposit, to Escrow Holder as provided herein. 
 30.23 Indemnification. 
 If the
transactions contemplated by this Agreement are consummated as provided herein: 
 (a) Indemnification of Buyer. Without in any way
limiting or diminishing the warranties, representations or agreements herein contained or the rights or remedies available to Buyer for a breach hereof, Seller hereby agrees to indemnify, defend and hold harmless Buyer and its respective designees,
successors and assigns from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) of every kind, nature and description in existence before, on or after the Close of Escrow, whether
known or unknown, absolute or continent, joint or several, arising out of or relating to: 
 (i) any claim made or asserted
against Buyer or any of the Property by a creditor of Seller, including any claims based on or alleging a violation of any bulk sales act or other similar laws; 
  

					
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 (ii) the breach of any representation, warranty, covenant or agreement of Seller
contained in this Agreement; 
 (iii) any liability or obligation of Seller not expressly assumed by Buyer pursuant to this
Agreement; 
 (iv) any claim made or asserted by an employee of Seller arising out of Seller’s decision to sell the
Property and unrelated to such person’s employment by, or other contractual relationship with, Buyer; and 
 (v) the
conduct and operation by or on behalf of Seller of the Hotel or the ownership, use or operation of the Property prior to the Cutoff Time. 
 (b) Indemnification of Seller. Without in any way limiting or diminishing the warranties, representations or agreements herein contained or the rights or remedies available to Seller for a breach hereof, Buyer hereby agrees, with
respect to this Agreement, to indemnify, defend and hold harmless Seller from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) of every kind, nature and description in existence
before, on or after the Close of Escrow, whether known or unknown, absolute or contingent, joint or several, arising out of or relating to: 
 (i) Any claim made or asserted against Seller by a creditor of Buyer; 
 (ii) the breach of
any representation, warranty, covenant or agreement of Buyer contained in this Agreement; 
 (iii) the conduct and operation
by or on behalf of Buyer of the Hotel or the ownership, use or operation of the Property on or after Cutoff Time; 
 (iv) any
claim made or asserted by an employee or contractor of Buyer; and 
 (v) any liability or obligation of Buyer expressly
assumed by Buyer at the Close of Escrow. 
 (c) Indemnification Procedure for Claims of Third Parties. Indemnification, with respect
to claims resulting from the assertion of liability by those not parties to this Agreement (including governmental claims for penalties, fines and assessments), shall be subject to the following terms and conditions: 
 (i) The party seeking indemnification (the “Indemnified Party”) shall give prompt written notice to the party or parties from
which it is seeking indemnification (the “Indemnifying Party”) of any assertion of liability by a third party which might give rise to a claim for indemnification based on the foregoing provisions of this Section 30.23, which notice
shall state the nature and basis of the assertion and the amount thereof, to the extent known; provided, however, that no delay on the part of the Indemnified Party in giving notice shall relieve the Indemnifying Party of any obligation to indemnify
unless (and then solely to the extent that) the Indemnifying Party is prejudiced by such delay. 
 (ii) If in any action, suit
or proceeding (a “Legal Action”) the relief sought is solely the payment of money damages, and if the Indemnifying Party specifically agrees in writing to indemnify such Indemnified Party with respect thereto and demonstrates to the
reasonable satisfaction of such Indemnified Party its financial ability to do so, the Indemnifying Party shall have the right, commencing thirty (30) days after such notice, at its option, to elect to settle, compromise or defend, pursuant to
this paragraph, by its own counsel and at its own expense, any such Legal Action involving such Indemnified Party’s asserted liability. If the Indemnifying Party does not undertake to settle, compromise or defend any such Legal Action, 

  

					
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such settlement, compromise or defense shall be conducted in the sole discretion of such Indemnified Party, but such Indemnified Party shall provide the
Indemnifying Party with such information concerning such settlement, compromise or defense as the Indemnifying Party may reasonably request from time to time. If the Indemnifying Party undertakes to settle, compromise or defend any such asserted
liability, it shall notify such Indemnified Party in writing of its intention to do so within thirty (30) days of notice from such Indemnified Party provided above. 
 (iii) In any Legal Action initiated by a third party and defended by the Indemnified Party (w) the Indemnified Party shall have the
right to be represented by advisory counsel and accountants, at its own expense, (x) the Indemnifying Party shall keep the Indemnified Party fully informed as to the status of such Legal Action at all stages thereof, whether or not the
Indemnified Party is represented by its own counsel, (y) the Indemnifying Party shall make available to the Indemnified Party and its attorneys, accountants and other representatives, all books and records of Seller relating to such Legal
Action and (z) the parties shall render to each other such assistance as may be reasonably required in order to ensure the proper and adequate defense of such Legal Action. 
 (iv) In any Legal Action initiated by a third party and defended by the Indemnifying Party, the Indemnifying Party shall not make
settlement of any claim without the written consent of the Indemnified Party, which consent shall not be unreasonably withheld. Without limiting the generality of the foregoing, it shall not be deemed unreasonable to withhold consent to a settlement
involving injunctive or other equitable relief against Buyer or its respective assets, employees, affiliates or business. 
 30.24 Bulk
Sales 
 At Seller’s risk and expense, Seller shall take all steps necessary to comply with the requirements of a transferor
under all bulk transfer laws, if any, that are applicable to the transactions contemplated by this Agreement. 
 30.25 Exhibits and
Schedules 
 Attached hereto are the following exhibits and schedules, each of which is incorporated into this Agreement in full by
this reference: 
 EXHIBIT A —Legal Description of the Land 
 EXHIBIT B —Grant Deed 
 EXHIBIT C —Seller’s Tax Certificate 
 EXHIBIT D —Bill of Sale 
 EXHIBIT E —Assignment of Intangible Property 
 EXHIBIT F—Assignment of Contract Rights 
 EXHIBIT G —Form of Assignment of Purchase and Sale Agreement 
 EXHIBIT 3.3 

SCHEDULE 14.4—Litigation 
 SCHEDULE 14.6.b—FF&E Leases 
 SCHEDULE 14.6.c—Operating Agreements 

SCHEDULE 14.6.d—Advertising Agreements 
  

					
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.

  

			
	 “SELLER”

	
	 OCEAN PARK HOTELS-MMM, LLC,
 a
California limited liability company

		
	By:	 	 /s/    James M. Flagg

		 	James M. Flagg, Manager
	
	 “BUYER”

	
	 APPLE NINE HOSPITALITY OWNERSHIP, INC.,
 a Virginia corporation

		
	By:	 	 /s/    Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	President

  

					
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