Document:

Form of Escrow Agreement

 EXHIBIT 10.1 
  
 Form of Escrow Agreement between 
 CNL Hospitality Properties II, Inc. 
 and
                     

 ESCROW AGREEMENT 
  
 THIS ESCROW AGREEMENT (the “Agreement”) is dated this
         day of             , 2004, by and among CNL HOSPITALITY PROPERTIES II, INC., a Maryland corporation (the “Company”),
CNL SECURITIES CORP., a Florida corporation (the “Managing Dealer”), and                      (the “Escrow Agent”). This
Agreement shall be effective as of the effective date of the Company’s Registration Statement filed with the Securities and Exchange Commission (the “Effective Date”). 
  
 WHEREAS, the Company proposes to offer and sell, on a best-efforts basis through the Managing Dealer and selected
broker-dealers who are registered with the National Association of Securities Dealers, Inc. or who are exempt from broker-dealer registration (the Managing Dealer and such selected broker-dealers are hereinafter referred to collectively as the
“Soliciting Dealers”) up to 200,000,000 shares of common stock of the Company (the “Shares”) to investors pursuant to a registration statement (the “Registration Statement”) filed with the Securities and Exchange
Commission; 
  
 WHEREAS, the Company has agreed that the
subscription price paid by subscribers for Shares will be refunded to such subscribers if an aggregate of 250,000 Shares or more of the Company have not been sold and paid for, within one year of the initial effective date of the Company’s
prospectus (each date referred to herein individually as the “Closing Date”); 
  
 WHEREAS, the Company and the Managing Dealer desire to establish an escrow in which funds received from subscribers will be deposited until the Closing Date or such earlier date on which subscriptions for at least
250,000 Shares have been received (exclusive of any subscriptions from Pennsylvania residents, which shall not be counted toward the 250,000 Share threshold and shall not be released from escrow until at least $65,000,000 in subscriptions have been
received), and the Escrow Agent is willing to serve as Escrow Agent upon the terms and conditions herein set forth; and 
  
 WHEREAS, in order to subscribe for Shares, a subscriber must deliver the full amount of its subscription: (i) by check in U.S. dollars, (ii) by wire
transfer of immediately available funds in U.S. dollars, or (iii) as otherwise agreed to by the Company (collectively, the “Payment”). 
  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by the parties, the parties covenant and agree as follows. 
  
 1.
Establishment of Escrow Accounts. On or prior to the Effective Date, the Company and the Managing Dealer shall establish an interest-bearing escrow account with the Escrow Agent, which escrow account shall be entitled “ESCROW ACCOUNT FOR
THE BENEFIT OF SUBSCRIBERS FOR COMMON STOCK OF CNL HOSPITALITY PROPERTIES II, INC.” (the “Escrow Account”). All monies deposited in the Escrow Account are hereinafter referred to as the “Escrowed Funds.” The Managing Dealer
will, and will cause selected broker-dealers acting as Soliciting Dealers to, instruct subscribers to make Payments for subscriptions payable to the order of the Escrow Agent until such time (if any) as the Escrowed Funds are deliverable to the
Company pursuant to the provisions of Paragraph 5(a) below. From and after such time, Payments may be made payable to either the Escrow Agent or the Company. Any Payments received prior to the time, if any, that the Escrowed Funds are deliverable to
the Company pursuant to the provisions of Paragraph 5(a) below that are made payable to a party other than the Escrow Agent shall be returned to the Soliciting Dealer who submitted the Payment. The Managing Dealer may authorize certain Soliciting
Dealers which are “$250,000 broker-dealers” to instruct their customers to make their Payments for Shares subscribed for payable directly to the Soliciting Dealer. In such case, the Soliciting Dealer will collect the proceeds of the
subscribers’ Payments and issue a Payment made payable to the order of the Escrow Agent for the aggregate amount of the subscription proceeds. 
  
 2. Deposits into the Escrow Account. The Managing Dealer will promptly deliver all monies received from subscribers for the payment of Shares to
the Escrow Agent for deposit in the Escrow Account. Until such time that the Escrowed Funds are deliverable to the Company pursuant to the provisions of Paragraph 5(a) below, the Managing Dealer also will deliver to the Escrow Agent a written
account of each sale, which account shall set forth, 

 among other things, the following information: (i) the subscriber’s name and address, (ii) the number of Shares
purchased by such subscriber, and (iii) the amount paid for by such subscriber for such Shares. The Company is aware and understands that, during the escrow period, it is not entitled to any funds received into escrow and no amount deposited in the
Escrow Account shall become the property of the Company or any other entity, or be subject to the debts of the Company or any other entity. 
  
 3. Collection Procedure. 
  
 (a) The Escrow Agent is hereby authorized to forward each Payment for collection and, upon collection of the proceeds of each Payment, to
deposit the collected proceeds in the Escrow Account or, alternatively, the Escrow Agent may telephone the bank on which the Payment is drawn to confirm that the Payment has been paid. 
  
 (b) Any Payment returned unpaid to the Escrow Agent shall be returned to the Soliciting Dealer that
submitted the Payment. In such cases the Escrow Agent will promptly notify the Company of such return. 
  
 (c) In the event that (i) the Company rejects any subscription for Shares or (ii) an investor who has telephonically or orally subscribed
for Shares properly withdraws such subscription within ten (10) days from the date written confirmation has been received by the subscriber, and, in either such event, the Escrow Agent has already collected funds for such subscription, the Escrow
Agent shall promptly issue a refund Payment to the drawer of the Payment submitted by or on behalf of the rejected or withdrawing subscriber. If either of the events specified in the clauses (i) or (ii) of the preceding sentence occur and, in either
such event, the Escrow Agent has not yet collected funds for such subscription but has submitted the Payment relating to such subscription for collection, the Escrow Agent shall promptly issue a Payment in the amount of such Payment to the rejected
or withdrawing subscriber after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet submitted the Payment relating to the subscription of the rejected or withdrawing subscriber, the Escrow Agent shall promptly remit such Payment
directly to the drawer of the Payment submitted by or on behalf of the subscriber. 
  
 4. Investment of Escrowed Funds. The Escrow Agent, immediately upon receipt of each Payment remitted to it, shall deposit such Payment in a bank account (including, but not limited to, interest-bearing savings
accounts and bank money market accounts), in short-term certificates of deposit issued by a bank, in short-term securities directly or indirectly issued or guaranteed by the United States Government, or in other short-term, highly liquid investments
with appropriate safety of principal, all as directed by the Company. Interest and dividends earned on such investments shall be similarly reinvested. Following the distribution of Escrowed Funds to the Company pursuant to Paragraph 5 below, any
funds remaining in the Escrow Account shall be invested in bank money market funds or similar instruments as directed by the Company. 
  
 5. Distribution of Escrowed Funds. The Escrow Agent shall distribute the Escrowed Funds in the amounts, at the times, and upon the conditions
hereinafter set forth in this Agreement. 
  
 (a)
Subject to the last three sentences of this Paragraph 5(a), if at any time on or prior to the Closing Date, an aggregate of 250,000 Shares of the Company have been sold, then upon the happening of such event, the Escrow Agent shall deliver the
Escrowed Funds to the Company. An affidavit or certification from an officer of the Company stating that, after excluding all Shares covered by the subscriptions described in the last two sentences of this Paragraph 5(a), 250,000 Shares have been
timely sold, together with the receipt by the Escrow Agent of a minimum of $2,500,000 in cleared funds attributable to sales of Shares shall constitute sufficient evidence for the purpose of this Agreement that such event has occurred. Thereafter,
the Escrow Agent shall release from the Escrow Account to the Company any and all Escrowed Funds therein, together with all interest earned thereon, upon the written request of an officer of the Company as listed on the incumbency certificate
provided to the Bank by the Company, except as expressly provided otherwise in the last two sentences. In determining whether the 250,000 share threshold has been attained, subscriptions from investors who have subscribed for Shares orally, where
representatives of a Soliciting Dealer have executed the Subscription Agreement relating to such Shares on 
  

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 behalf of the investor, shall not be included in determining whether the minimum 250,000 Shares have been
sold for a period of ten (10) days from the date written confirmation has been received by the subscriber, provided that such subscriptions shall not be released from escrow until the expiration of a period fifteen (15) days from the date written
confirmation has been mailed to the subscriber relating to such subscriptions. Additionally, in determining whether the 250,000 share threshold has been attained, subscriptions from investors who received a prospectus less than five (5) business
days prior to the determination under this subparagraph (a) of the number of available Shares to be released from escrow as evidenced by the date of execution of such investor’s subscription agreement shall not be included in determining
whether the minimum 250,000 Shares have been sold. Further, in determining whether the 250,000 Share threshold has been attained, subscriptions from Pennsylvania residents shall not be included in determining whether the minimum 250,000 Shares have
been sold. Moreover, subscription funds from Pennsylvania investors shall not be released from the Escrow Account until at least $65,000,000 in subscriptions have been received. 
  
 (b) If the Escrowed Funds do not, on or prior to the Closing Date, become deliverable to the Company
pursuant to subparagraph (a) above, the Escrow Agent shall return the Escrowed Funds to the respective subscribers in amounts equal to the subscription amount theretofore paid by each of them, together with interest calculated as described in
Paragraph 6 below and without deduction, penalty or expense to the subscriber. The Escrow Agent shall notify the Company and the Managing Dealer of any such return of subscription amounts. The purchase money returned to each subscriber shall be free
and clear of any and all claims of the Company or any of its creditors. 
  
 6. Distribution of Interest. If the Escrowed Funds become deliverable to subscribers pursuant to Paragraph 5(b) above, the Escrow Agent shall compute and distribute to each investor a pro rata share of the investment earnings
of the Escrowed Funds. Each subscriber’s pro rata share of investment earnings shall be computed as follows: 
  
 7. 
  

			
	 	 	Individual Subscription
	 Investment Earnings                x
	 	 amount x days held

	 	Total subscription
	 	 	amounts x days held

  
 Such pro rata
share of investment earnings shall be distributed to each subscriber with the return of their subscription amounts. 
  
 8. Liability of Escrow Agent. 
  
 (a) In performing any of its duties under this Agreement, or upon the claimed failure to perform its duties hereunder, the Escrow Agent
shall not be liable to anyone for any damages, losses, or expenses which it may incur as a result of the Escrow Agent so acting, or failing to act; provided, however, the Escrow Agent shall be liable for damages arising out of its willful default or
misconduct or its gross negligence under this Agreement. Accordingly, the Escrow Agent shall not incur any such liability with respect to (i) any action taken or omitted to be taken in good faith upon advice of its counsel or counsel for the Company
which is given with respect to any questions relating to the duties and responsibilities of the Escrow Agent hereunder, or (ii) any action taken or omitted to be taken in reliance upon any document, including any written notice or instructions
provided for in this Escrow Agreement, not only as to its due execution and to the validity and effectiveness of its provisions but also as to the truth and accuracy of any information contained therein, if the Escrow Agent shall in good faith
believe such document to be genuine, to have been signed or presented by a proper person or persons, and to conform with the provisions of this Agreement. 
  
 (b) The Company hereby agrees to indemnify and hold harmless the Escrow Agent against any and all losses, claims, damages, liabilities and
expenses, including, without limitation, reasonable costs of investigation and counsel fees and disbursements which may be incurred by it resulting from any act or omission of the Company; provided, however, that the Company shall not indemnify the
Escrow Agent for any losses, claims, damages, or expenses arising out of the Escrow Agent’s willful default, misconduct, or gross negligence under this Agreement. 
  

 -3- 

 (c) If a dispute ensues between any of the parties hereto which, in the opinion of the
Escrow Agent, is sufficient to justify its doing so, the Escrow Agent shall be entitled to tender into the registry or custody of any court of competent jurisdiction, including the Circuit Court of Orange County, Florida, all money or property in
its hands under the terms of this Agreement, and to file such legal proceedings as it deems appropriate, and shall thereupon be discharged from all further duties under this Agreement. Any such legal action may be brought in any such court as the
Escrow Agent shall determine to have jurisdiction thereof. The Company shall indemnify the Escrow Agent against its court costs and attorneys’ fees incurred in filing such legal proceedings. 
  
 9. Inability to Deliver. In the event that Payments for subscriptions
delivered to the Escrow Agent by the Company pursuant to this Agreement are not cleared through normal banking channels within 120 days after such delivery, the Escrow Agent shall deliver such uncleared Payments to the Company unless the Escrowed
Funds are returned to subscribers pursuant to Paragraph 5(b) above, in which case the Escrow Agent shall mail such uncleared Payments to the subscribers. 
  
 10. Notice. All notices, requests, demands and other communications or deliveries required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given if delivered personally, given by facsimile confirmed by telephone call or deposited for mailing, first class, postage prepaid, registered or certified mail, as follows: 
  

			
	 If to the subscribers for Shares:
	 	To their respective addresses as specified in their Subscription Agreements.
		
	 If to the Company:
	 	CNL HOSPITALITY PROPERTIES II, INC.
	 	 	CNL Center at City Commons
	 	 	450 South Orange Avenue
	 	 	Orlando, Florida 32801
	 	 	Attention:                     , Chief Executive
	 	 	Officer and President
		
	 If to the Managing Dealer:
	 	CNL Securities Corp.
	 	 	CNL Center at City Commons
	 	 	450 South Orange Avenue
	 	 	Orlando, Florida 32801
	 	 	Attention: Mr. Robert A. Bourne, President
		
	 If to the Escrow Agent:
	 	 

  
 11. Fees to Escrow
Agent. In consideration of the services to be provided by the Escrow Agent hereunder, the Company agrees to pay the following fees to the Escrow Agent. 
  
 (a) In the event that by the Closing Date an aggregate of 250,000 Shares have not been sold for the account of the Company, the Company
will pay the Escrow Agent a fee in an amount equal to $15 per investor, with a minimum fee of $1,500, payable within 30 days following the Closing Date. 
  
 (b) In the event that an aggregate of at least 250,000 Shares are sold by the Closing Date, the Company will pay the Escrow Agent a fee
for its services hereunder (the “Escrow Fee”). The Escrow Fee shall be $350 for each month or any portion thereof that the Escrow Account continues for the Company. The first payment of the Escrow Fee by the Company shall be due on the
earlier of (i) the date on which the Escrowed Funds become distributable to the Company pursuant to Paragraph 5 hereof, or (ii) six months from the effective date of this Agreement; or (iii) the closing of the offering of Shares in the Company.

  

 -4- 

 Subsequent payments by the Company, if any, shall be due and payable no less frequently than six-month
intervals while the escrow continues for the Company. In no event shall the total Escrow Fees payable by the Company pursuant to this Agreement be less than $2,100, nor more than $4,200, for any 12-month period. Notwithstanding anything contained in
this Agreement to the contrary, in no event shall any fee, reimbursement for costs and expenses, indemnification for any damages incurred by the Escrow Agent, or monies whatsoever be paid out of or chargeable to the Escrowed Funds in the Escrow
Account. 
  

	12.	General. 

  
 (a) This Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of Florida
applicable to contracts to be made and performed entirely in said state. 
  
 (b) The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
  
 (c) This Agreement sets forth the entire agreement and understanding of the parties with regard to this
escrow transaction and supersedes all prior agreements, arrangements and understandings relating to the subject matter hereof. 
  
 (d) This Agreement may be amended, modified, superseded or cancelled, and any of the terms or conditions hereof may be waived, only by a
written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a
later time to enforce the same. No waiver in any one or more instances by any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, shall be deemed to be, or construed as, a further or
continuing waiver of any such condition or breach, or a waiver of any other condition or of the breach of any other terms of this Agreement. 
  
 (e) This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 
  
 (f) This Agreement shall inure to the benefit of the parties hereto and their respective administrators, successors, and assigns. 
  
 12. Representation of the Company. The Company hereby acknowledges that the status of the Escrow Agent with respect to the offering of the Shares
is that of agent only for the limited purposes herein set forth, and hereby agrees it will not represent or imply that the Escrow Agent, by serving as the Escrow Agent hereunder or otherwise, has investigated the desirability or advisability of an
investment in the Shares, or has approved, endorsed or passed upon the merits of the Shares, nor shall the Company use the name of the Escrow Agent in any manner whatsoever in connection with the offer or sale of the Shares, other than by
acknowledgement that it has agreed to serve as Escrow Agent for the limited purposes herein set forth. 
  
 13. Resignation of Escrow Agent. Should, at any time, any attempt be made to modify this Agreement in a manner that would increase the duties and
responsibilities of the Escrow Agent, or to modify the Escrow Agreement in any manner that the Escrow Agent shall deem undesirable, the Escrow Agent may resign by notifying the Company. Such resignation shall become effective on the earlier to occur
of (i) the acceptance by a successor Escrow Agent as shall be appointed by the Company or (ii) sixty (60) days following the date upon which notice was mailed. Until such time as the Escrow Agent has resigned in accordance herewith, the Escrow Agent
shall perform its duties hereunder in accordance with the terms of this Escrow Agreement. 
  
 14. Acts of God. The Escrow Agent shall not be responsible for any failure or delay in the performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by circumstances
beyond its reasonable control, including without limitation, acts of God, earthquakes, fires, floods, wars, civil or military disturbances, sabotage, epidemics, riots, interruptions, loss or malfunctions of utilities, computer (hardware or software)
or communication service, accidents, labor disputes, acts of civil or military authority, or governmental actions. 
  

 -5- 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written.

  

					
	 	  	“COMPANY”
	 	  	CNL HOSPITALITY PROPERTIES II, INC.
			
	 	  	By:	 	  

	 	  	 	 	  

	 	  	 	 	Chief Executive Officer and President
		
	 	  	“MANAGING DEALER”
	 	  	CNL SECURITIES CORP.
			
	Attest:                     	  	By:	 	  

	 	  	 	 	ROBERT A. BOURNE, President
		
	 	  	“ESCROW AGENT”
	 	  	  

			
	Attest:                     	  	By:	 	  

	 	  	Name:	 	  

	 	  	Title:	 	  

  

 -6-Form of Advisory Agreement

  
  
 Exhibit 10.2 
  
 Form of Advisory Agreement 
  

 ADVISORY AGREEMENT 
  
 THIS ADVISORY AGREEMENT, dated as of
                    , 2004, is between CNL HOSPITALITY PROPERTIES II, INC., a corporation organized under the laws of the State of Maryland (the
“Company”) and CNL LODGING ADVISORS II CORP., a corporation organized under the laws of the State of Florida (the “Advisor”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Company has filed with the Securities and Exchange Commission a Registration Statement (No.
333-[                    ]) on Form S-11 covering 200,000,000 of its common shares, par value $.01 per share (the “Shares”), to be offered
to the public, and the Company may subsequently issue securities other than such Shares (the “Securities”) or otherwise raise additional capital; 
  
 WHEREAS, the Company intends to qualify as a REIT (as defined below), and to invest its funds in investments permitted by the terms of the Registration
Statement and Sections 856 through 860 of the Code (as defined below); 
  
 WHEREAS, the Company desires to avail itself of the experience, sources of information, advice, assistance and certain facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set
forth, on behalf of, and subject to the supervision, of the Board of Directors of the Company all as provided herein; and 
  
 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the Board of Directors, on the terms and conditions
hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows: 
  
 (1)    Definitions.  As used in this Advisory Agreement (the “Agreement”), the following terms have the
definitions hereinafter indicated: 
  
 Acquisition
Expenses.    Any and all expenses incurred by the Company, the Advisor, or any Affiliate of either in connection with the selection, acquisition or making of any investment, including any Property, Mortgage Loan or other
Permitted Investment, whether or not acquired or made, including, without limitation, legal fees and expenses, travel and communication expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and
expenses, and title insurance. 
  
 Acquisition
Fees.    Any and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person or entity to any other Person or entity (including any fees or commissions paid by or to any Affiliate of the Company or the
Advisor) in connection with making an investment including making or investing in Mortgage Loans or other Permitted Investments or the purchase, 

 
development or construction of a Property, including, without limitation, real estate commissions, acquisition fees, finder’s fees, selection fees,
development fees, construction fees, nonrecurring management fees, consulting fees, loan fees, points, or any other fees or commissions of a similar nature. Excluded shall be development fees and construction fees paid to any Person or entity not
Affiliated with the Advisor in connection with the actual development and construction of any Property. Further, Acquisition Fees will not be paid in connection with temporary short-term investments acquired for purposes of cash management.

  
 Advisor.    CNL Lodging Advisors II
Corp., a Florida corporation, any successor Advisor to the Company, or any Person or entity to which CNL Lodging Advisors II Corp. or any successor advisor subcontracts substantially all of its functions. The Advisor has the responsibility or will
cause others to have the responsibility for the day-to-day operations of the Company. 
  
 Advisory Fee.    To the extent the Acquisition Fee is reduced in the manner described in subparagraph (9)(b)(i), for investments by a stockholder in excess of 500,000 Shares, such
stockholder and any person it transfers Shares to will be required to pay an annual 0.40% advisory fee on its Shares to the Advisor or its Affiliates. 
  
 Affiliate or Affiliated (or any derivation thereof).    An affiliate of another Person, which is defined as: (i) any Person
directly or indirectly owning, controlling, or holding, with power to vote 10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held, with power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (iv) any executive officer, director, trustee or general partner of
such other Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner. 
  
 Appraised Value.    Value according to an appraisal made by an Independent Appraiser. 
  
 Articles of Incorporation.    The Articles of
Incorporation of the Company, as amended from time to time. 
  
 Asset Management Fee.    The fee payable to the Advisor or its Affiliates for day-to-day professional management services in connection with the Company and its investments in Properties, Mortgage Loans and other
Permitted Investments pursuant to this Agreement. 
  
 Assets.    Properties, Mortgage Loans and other Permitted Investments, collectively. 
  
 Average Invested Assets.    For a specified period, the average of the aggregate book value of the Assets of the Company
invested, directly or indirectly, in equity interests in, and Mortgage Loans secured by, real estate, or in other Permitted Investments, before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average
of such values at the end of each month during such period. 
  

 2 

 Board of Directors or Board.    The Directors of the Company. 
  
 Bylaws.    The bylaws of the Company, as the same
are in effect and may be amended from time to time. 
  
 Cause.    With respect to the termination of this Agreement, fraud, criminal conduct, willful misconduct or willful or negligent breach of fiduciary duty by the Advisor, breach of this Agreement, a default by the
Sponsor under the guarantee by the Sponsor to the Company or the bankruptcy of the Sponsor. 
  
 Code.    Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from
time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
  
 Company.    CNL Hospitality Properties II, Inc., a corporation organized under the laws of the State of Maryland. 

 
 Company Property.    Any and all property,
real, personal or otherwise, tangible or intangible, including Mortgage Loans and other Permitted Investments, which is transferred or conveyed to the Company (including all rents, income, profits and gains therefrom), and which is owned or held by,
or for the account of, the Company. 
  
 Competitive Real Estate
Commission.    A real estate or brokerage commission for the purchase or sale of property which is reasonable, customary, and competitive in light of the size, type, and location of the property. The total of all real estate
commissions paid by the Company to all Persons (including the Subordinated Disposition Fee payable to the Advisor or its Affiliates) in connection with any Sale of one or more of the Company’s Properties shall not exceed the lesser of (i) a
Competitive Real Estate Commission or (ii) six percent of the gross sales price of the Property or Properties. 
  
 Contract Purchase Price.    The amount actually paid or allocated (as of the date of purchase) to the purchase, development,
construction or improvement of property, exclusive of Acquisition Fees and Acquisition Expenses. 
  
 Contract Sales Price.    The total consideration received by the Company for the sale of Company Property. 
  
 Director.    A member of the Board of Directors of
the Company. 
  
 Distributions.    Any
distribution of money or other property by the Company to owners of Equity Shares, including distributions that may constitute a return of capital for federal income tax purposes. 
  

 3 

 Gross Proceeds.    The aggregate purchase price of all Shares sold for the
account of the Company through the Offering, without deduction for fees, commissions, expense reimbursements, volume or other discounts. For the purpose of computing Gross Proceeds, the purchase price of any Share for which a reduced purchase price
is paid (where net proceeds to the Company are not reduced) shall be deemed to be the full offering price of the Shares, with the exception of Shares purchased pursuant to the Company’s reinvestment plan, which will be factored into the
calculation of Gross Proceeds using their actual purchase price. 
  
 Independent Appraiser.    A qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the Appraisal Institute or the Society of Real Estate
Appraisers shall be conclusive evidence of such qualification. 
  
 Independent Director.    A Director of the Company who is not and within the last two years has not been directly or indirectly associated with the Advisor by virtue of (i) ownership of an interest in the Advisor
or its Affiliates, (ii) employment by the Advisor or its Affiliates, (iii) service as an officer or director of the Advisor or its Affiliates, (iv) performance of services, other than as a Director, for the Company, (v) service as a director or
trustee of more than three real estate investment trusts advised by the Advisor, or (vi) maintenance of a material business or professional relationship with the Advisor or any of its Affiliates. A business or professional relationship is considered
material if the gross revenue derived by the Director from the Advisor and Affiliates exceeds 5% of either the Director’s annual gross revenue during either of the last two years or the Director’s net worth on a fair market value basis. An
indirect relationship shall include circumstances in which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law, or brothers- or sisters-in-law are or have been associated with the Advisor, any
of its Affiliates, or the Company. 
  
 Invested
Capital.    The amount calculated by multiplying the total number of Shares purchased by stockholders by the issue price, without deduction for fees, commissions, expense reimbursements, volume or other discounts (which price
per Share, in the case of Shares purchased pursuant to the Company’s reinvestment plan, shall be deemed to be the actual purchase price), reduced by the portion of any Distribution that is attributable to Net Sales Proceeds and by any amounts
paid to the Company to repurchase Shares pursuant to the Company’s redemption plan. 
  
 Investment Committee.    A committee of the Advisor, whose members shall not be employed by or hold any positions with CNL
Hospitality Corp., or CNL Hospitality Properties, Inc. which shall recommend investments to the Board of Directors of CNL Hospitality Properties II, Inc. 
  
 Joint Ventures.    The joint venture or general partnership arrangements in which the Company is a co-venturer or general
partner which are established to acquire Properties, and/or make Mortgage Loans or other Permitted Investments. 
  
 Line of Credit.    One or more lines of credit initially in an aggregate amount up to $100 million (or such greater amount as
shall be approved by the Board of Directors), the proceeds of which will be used to acquire Properties and make Mortgage Loans and other Permitted Investments and for any other authorized purpose. The Line of Credit may be in addition to any
Permanent Financing. 
  

 4 

 Listing.    The listing of the Shares of the Company on a national securities
exchange or their inclusion for quotation on the National Market System of the Nasdaq Stock Market. 
  
 Managing Dealer.    CNL Securities Corp., an Affiliate of the Advisor, or such other Person or entity selected by the Board of
Directors to act as the managing dealer for the Offering. CNL Securities Corp. is a member of the National Association of Securities Dealers, Inc. 
  
 Mortgage Loans.    Mortgage loans and other types of debt financing provided by the Company. 
  
 Net Income.    For any period, the total revenues
applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable
Operating Expenses (as defined herein) shall exclude the gain from the sale of the Company’s assets. 
  
 Net Sales Proceeds.    In the case of a transaction described in clause (i)(A) of the definition of Sale, the proceeds of any
such transaction less the amount of all real estate commissions and closing costs paid by the Company. In the case of a transaction described in clause (i)(B) of such definition, Net Sales Proceeds means the proceeds of any such transaction less the
amount of any legal and other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause (i)(C) of such definition, Net Sales Proceeds means the proceeds of any such transaction actually
distributed to the Company from the Joint Venture. In the case of a transaction or series of transactions described in clause (i)(D) of the definition of Sale, Net Sales Proceeds means the proceeds of any such transaction or series of transactions
less the amount of all commissions and closing costs paid by the Company. In the case of a transaction described in clause (ii) of the definition of Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all
amounts generated thereby and reinvested in one or more Properties within 180 days thereafter and less the amount of any real estate commissions, closing costs, and legal and other selling expenses incurred by or allocated to the Company in
connection with such transaction or series of transactions. Net Sales Proceeds shall also include, in the case of any lease of a Property consisting of a building only or any Mortgage Loan or other Permitted Investment, any amounts from tenants,
borrowers or lessees that the Company determines, in its discretion, to be economically equivalent to proceeds of a Sale. Net Sales Proceeds shall not include, as determined by the Company in its sole discretion, any amounts reinvested in one or
more Properties, Mortgage Loans, or other Permitted Investments, to repay outstanding indebtedness, or to establish reserves. 
  
 Offering.    The initial public offering of Shares. 
  

 5 

 Operating Expenses.    All costs and expenses incurred by the Company, as
determined under generally accepted accounting principles, which in any way are related to the operation of the Company or to Company business, including the Asset Management Fee, but excluding (i) the expenses of raising capital such as
Organizational and Offering Expenses, legal, audit, accounting, underwriting, brokerage, Listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration
and Listing of the Shares; (ii) interest payments; (iii) taxes; (iv) non-cash expenditures such as depreciation, amortization and bad loan reserves; (v) the subordinated 10% share of Net Sales Proceeds; (vi) the Subordinated Incentive Fee, (vii) the
Performance Fee, (viii) the Advisory Fees, and (ix) Acquisition Fees and Acquisition Expenses, real estate or other commissions on the Sale of Assets, and other expenses connected with the acquisition disposition and ownership of real estate
interests, Mortgage Loans or other Permitted Investments (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). 
  
 Organizational and Offering Expenses.    Any and all costs and expenses, other than selling
commissions, the marketing support fee and due diligence expense reimbursements incurred by the Company, the Advisor or any Affiliate of either in connection with the formation, qualification and registration of the Company and the marketing and
distribution of Shares, including, without limitation, the following: legal, accounting and escrow fees; printing, amending, supplementing, mailing and distributing costs; filing, registration and qualification fees and taxes; telegraph and
telephone costs; and all advertising and marketing expenses, including the costs related to investor and broker-dealer sales meetings. 
  
 Participating Brokers.    Broker-dealers that are members of the NASD, or that are exempt from broker-dealer registration, and
that, in either case, enter into participating broker or other agreements with the Managing Dealer or the Company to sell Shares. 
  
 Performance Fee.    The fee payable to the Advisor or to an Affiliate of the Advisor under certain circumstances if certain
performance standards have been met and the Subordinated Incentive Fee has not been paid. 
  
 Permanent Financing.    The financing to (i) acquire Properties and to make Mortgage Loans or other Permitted Investments; (ii) pay any Acquisition Fees arising from any Permanent Financing;
and (iii) refinance outstanding amounts on the Line of Credit. Permanent financing may be in addition to any borrowing under the Line of Credit. 
  
 Permitted Investments.    All investments that the Company may acquire pursuant to its Articles of Incorporation and bylaws,
other than the short-term investments acquired for purposes of cash management. 
  
 Person.    An individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for
or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, 
  

 6 

 or any government or any agency or political subdivision thereof, and also includes a group as that term is used for
purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, but does not include (i) an underwriter that participates in a public offering of Equity Shares for a period of sixty days following the initial purchase by such
underwriter of such Equity Shares in such public offering, or (ii) CNL Lodging Advisors II Corp., during the period ending December 31, 2004, provided that the foregoing exclusions shall apply only if the ownership of such Equity Shares by an
underwriter or CNL Lodging Advisors II Corp. would not cause the Company to fail to qualify as a REIT by reason of being “closely held” within the meaning of Section 856(a) of the Code or otherwise cause the Company to fail to qualify as a
REIT. 
  
 Property or
Properties.    Interests in (i) the real properties, including the buildings and equipment located thereon; or (ii) the real properties only; or (iii) the buildings only, including equipment located therein; whether such
interest is acquired by the Company, either directly or indirectly through the acquisition of interests in Joint Ventures, partnerships, or other legal entities. 
  
 Prospectus.    “Prospectus” means the final prospectus included in the Company’s
Registration Statement, as the same may be amended or supplemented from time to time after the effective date of such Registration Statement. 
  
 Real Estate Asset Value.    The amount actually paid or allocated to the purchase, development, construction or improvement of
a Property, exclusive of Acquisition Fees and Acquisition Expenses. 
  
 Registration Statement.    The Registration Statement (No. 333-[                    ]) on Form S-11 registering
the Shares to be sold in the Offering. 
  
 REIT.    A “real estate investment trust” as defined pursuant to Sections 856 through 860 of the Code. 
  
 Sale or Sales.    (i) Any transaction or series of transactions whereby: (A) the Company sells, grants, transfers, conveys or
relinquishes its ownership of any Property or portion thereof, including the lease of any Property, Mortgage Loan or other Permitted Investment consisting of the building only, and including any event with respect to any Property which gives rise to
a significant amount of insurance proceeds or condemnation awards; (B) the Company sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest of the Company in any Joint Venture in which it is a
co-venturer or partner; (C) any Joint Venture in which the Company as a co-venturer or partner sells, grants, transfers, conveys or relinquishes its ownership of any Property, Mortgage Loan or other Permitted Investment or portion thereof, including
any event with respect to any Property, Mortgage Loan or other Permitted Investment which gives rise to insurance claims or condemnation awards; or (D) the Company sells, grants, conveys or relinquishes its interest in any Mortgage Loan or other
Permitted Investment, or portion thereof, including any event with respect to any Mortgage Loan or other Permitted Investment, which gives rise to a significant amount of insurance proceeds or similar awards, but (ii) shall not include any
transaction or series of transactions specified in clause (i)(A), (i)(B), or (i)(C) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Properties, Mortgage Loans or other Permitted Investments
within 180 days thereafter. 
  

 7 

 Securities.    Any Equity Shares, Excess Shares, as such terms are defined in
the Company’s Articles of Incorporation, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or
warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing. 
  
 Shares.    The common shares of the Company. 
  
 Sponsor.    Any Person directly or indirectly instrumental in organizing, wholly or in part, the Company or any Person who will
control, manage or participate in the management of the Company, and any Affiliate of such Person. Not included is any Person whose only relationship with the Company is that of an independent property manager of the Company’s Properties,
Mortgage Loans or other Permitted Investments, and whose only compensation is as such. Sponsor does not include wholly independent third parties such as attorneys, accountants, and underwriters whose only compensation is for professional services. A
Person may also be deemed a Sponsor of the Company by: 
  

	 	a.	taking the initiative, directly or indirectly, in founding or organizing the business or enterprise of the Company, either alone or in conjunction with one or more other Persons;

  

	 	b.	receiving a material participation in the Company in connection with the founding or organizing of the business of the Company, in consideration of services or property, or both
services and property; 

  

	 	c.	having a substantial number of relationships and contacts with the Company; 

  

	 	d.	possessing significant rights to control the Company’s Properties; 

  

	 	e.	receiving fees for providing services to the Company which are paid on a basis that is not customary in the industry; or 

  

	 	f.	providing goods or services to the Company on a basis which was not negotiated at arms length with the Company. 

  
 Stockholders.    The registered holders of the
Company’s Equity Shares. 
  

 8 

 Stockholders’ 8% Return.    As of each date, an aggregate amount equal to
an 8% cumulative, noncompounded, annual return on Invested Capital. 
  
 Subordinated Disposition Fee.    The Subordinated Disposition Fee as defined in Paragraph 9(c). 
  
 Subordinated Incentive Fee.    The fee payable to the Advisor or its Affiliates under certain circumstances if Listing occurs.

  
 Termination Date.    The date of
termination of this Agreement. 
  
 Total
Proceeds.    The Gross Proceeds plus Mortgage Loan proceeds from Permanent Financings and the Line of Credit that are used to make or acquire Properties, Mortgage Loans and other Permitted Investments. 
  
 2%/25% Guidelines.    The requirement pursuant to
the guidelines of the North American Securities Administrators Association, Inc. that, in any 12 month period, total Operating Expenses may not exceed the greater of 2% of the Company’s Average Invested Assets during such 12 month period or 25%
of the Company’s Net Income over the same 12 month period; unless the Independent Directors of the Company shall have made a finding that, based on such unusual and non-recurring factors which they deem sufficient, a higher level of Operating
Expenses is justified for such year. 
  
 (2)    Appointment.    The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.

  
 (3)    Duties of the
Advisor.    The Advisor undertakes to use its best efforts to present to the Company an adequate supply of suitable potential investment opportunities consistent with the investment objectives and policies of the Company, as
determined and adopted from time to time by the Directors. In performance of this undertaking, subject to the supervision of the Directors and consistent with the provisions of the Registration Statement, Articles of Incorporation and Bylaws of the
Company, the Advisor shall, either directly or by engaging an Affiliate: 
  

	 	(a)	have the responsibility for the day-to-day operations of the Company; 

  

	 	(b)	administer the Company’s bookkeeping and accounting functions; 

  

	 	(c)	serve as the Company’s investment and financial advisor and provide research and economic and statistical data in connection with the Company’s assets and investment
policies; 

  

 9 

	 	(d)	provide the daily management of the Company and perform and supervise the various administrative functions reasonably necessary for the management of the Company;

  

	 	(e)	investigate, select, and, on behalf of the Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations
hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers,
insurance agents, banks, builders, developers, property owners, mortgagors, and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable
for the performance of any of the services herein, including but not limited to entering into contracts in the name of the Company with any of the foregoing; 

  

	 	(f)	consult with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s financial policies, and, as necessary,
furnish the Directors with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company;

  

	 	(g)	make recommendations through its Investment Committee to the Company in connection with the acquisitions or financing of any Property, Mortgage Loan or other Permitted Investment;

  

	 	(h)	subject to the provisions of Paragraphs 3(g) and 4 hereof, (i) locate, analyze and select potential investments in Properties and Mortgage Loans and other Permitted Investments,
(ii) structure and negotiate the terms and conditions of transactions in connection with the Company’s investments in Properties, Mortgage Loans and other Permitted Investments; (iii) arrange for the acquisition and disposition of Properties,
Mortgage Loans and other Permitted Investments in compliance with the investment objectives and policies of the Company; (iv) arrange for financing and refinancing and negotiate the terms of any borrowing by the Company, including lines of credit
and any long-term, permanent financing; (v) make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with the investments in, Properties, Mortgage Loans and other Permitted
Investments; and (vi) enter into leases and service contracts for Company Property and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Company Property; 

  

 10 

	 	(i)	provide the Directors with periodic reports regarding prospective investments in Properties, Mortgage Loans and other Permitted Investments; 

  

	 	(j)	obtain the prior approval of the Directors (including a majority of all Independent Directors, where applicable) for any and all investments in Properties, Mortgage Loans and other
Permitted Investments; 

  

	 	(k)	negotiate on behalf of the Company with banks or lenders for loans to be made to the Company and negotiate on behalf of the Company with investment banking firms and broker-dealers
or negotiate private sales of Shares and Securities or obtain loans for the Company, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third
parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company; 

  

	 	(l)	obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated investments of the Company;

  

	 	(m)	from time to time, or at any time reasonably requested by the Directors, make reports to the Directors of its performance of services to the Company under this Agreement;

  

	 	(n)	provide the Company with all necessary cash management services; 

  

	 	(o)	do all things necessary to assure its ability to render the services described in this Agreement; 

  

	 	(p)	deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the investments in Properties, Mortgage Loans and other Permitted Investments;

  

	 	(q)	notify the Board of all proposed material transactions before they are completed; 

  

	 	(r)	identify potential operators and tenants of the Company’s Properties and potential borrowers for the Company’s Mortgage Loans, and formulate, evaluate and negotiate the
terms of each of the Company’s lease, loan and operating arrangements; 

  

	 	(s)	supervise the activities of any advisor to which it subcontracts some or all of its obligations under this Agreement pursuant to Paragraph 18 hereof; and 

 

 11 

	 	(r)	render or cause others to render such other administrative services as the Board of Directors deems appropriate. 

  
 (4)    Authority of the Advisor. 
  
 (a)    Pursuant to the terms of this
Agreement (including the restrictions included in this Paragraph 4 and in Paragraph 7), and subject to the continuing and exclusive authority of the Directors over the management of the Company, the Directors hereby delegate to the Advisor the
authority to (1) locate, analyze and select investment opportunities, (2) structure the terms and conditions of transactions pursuant to which investments will be made or acquired for the Company, (3) acquire Properties, make Mortgage Loans and
other Permitted Investments in compliance with the investment objectives and policies of the Company, (4) arrange for financing or refinancing with respect to Properties, Mortgage Loans and other Permitted Investments, (5) enter into leases and
service contracts for the Company’s Property, and perform other property management services, (6) oversee non-affiliated property managers and other non-affiliated Persons who perform services for the Company; and (7) undertake accounting and
other record-keeping functions at the Property level. 
  
 (b)    Notwithstanding the foregoing, any investment in Properties, Mortgage Loans or other Permitted Investments, including any acquisition of Property by the Company (as well as any financing acquired by the Company in
connection with such acquisition), will require the prior recommendation of the Investment Committee and approval of the Directors (including a majority of the Independent Directors). 
  
 (c)    If a transaction requires approval by the Independent Directors, the Advisor will
deliver to the Independent Directors all documents required by them to properly evaluate the proposed investment in the Property, Mortgage Loan or other Permitted Investment. 
  
 The prior approval of a majority of the Independent Directors and a majority of the Directors not otherwise interested in
the transaction will be required for each transaction of the Company with the Advisor or its Affiliates. 
  
 The Directors of the Company may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Paragraph 4. If
and to the extent the Directors so modify or revoke the authority contained herein, the Advisor shall henceforth submit to the Directors for prior approval such proposed transactions involving investments that thereafter require prior approval,
provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor
of such notification. 
  
 (5)    Bank
Accounts.    The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect and deposit into any such account or 

  

 12 

 
accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Directors may approve,
provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Directors and to the auditors of the Company. 
  
 (6)    Records; Access.  The Advisor
shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business
hours. The Advisor shall at all reasonable times have access to the books and records of the Company. 
  
 (7)    Limitations on Activities.  Anything else in this Agreement to the contrary notwithstanding, the Advisor shall
refrain from taking any action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, or (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Equity Shares or its Securities, or otherwise not be permitted by the Articles of Incorporation or Bylaws of the Company, except if
such action shall be ordered by the Directors, in which case the Advisor shall notify promptly the Directors of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further
clarification or instructions from the Directors. In such event the Advisor shall have no liability for acting in accordance with the specific instructions of the Directors so given. 
  
 (8)    Relationship with Directors.  Directors, officers and employees of the Advisor
or of an Affiliate of the Advisor or of any corporate parents of the Advisor or an Affiliate may serve as a Director and as officers of the Company, except that no director, officer or employee of the Advisor, or its Affiliates or a corporate parent
who also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer of the Company other than reasonable reimbursement for travel and related expenses incurred in attending meetings
of the Directors of the Company. 
  
 (9)    Fees. 
  
 (a)    Asset Management Fee.    The Company shall pay to the Advisor or its Affiliates as compensation for the advisory services rendered to the Company under Paragraph 3 above a monthly fee in
an amount equal to 0.08334% of the Company’s Real Estate Asset Value and the outstanding principal amount of the Mortgage Loans and other Permitted Investments (the “Asset Management Fee”), as of the end of the preceding month.
Specifically, Real Estate Asset Value equals the amount invested in the Properties wholly owned by the Company, determined on the basis of cost, plus, in the case of Properties owned by any Joint Venture or partnership in which the Company is a
co-venturer or partner, the portion of the cost of such Properties paid by the Company, exclusive of Acquisition Fees and Acquisition Expenses. The Asset Management Fee shall be payable monthly on the last day of such month, or the first business
day following the last day of such month. The Asset Management Fee, which will not exceed fees which are competitive 

  

 13 

 
for similar services in the same geographic area, may or may not be taken, in whole or in part as to any year, in the sole discretion of the Advisor. All or
any portion of the Asset Management Fee not taken as to any fiscal year shall be deferred without interest and may be taken in such other fiscal year as the Advisor shall determine. 
  
 (b)    Acquisition Fees. 
  
 (i)    The Company shall pay the Advisor
or its Affiliates a fee in the amount of 3.0% of Total Proceeds as Acquisition Fees. The total of all Acquisition Fees and any Acquisition Expenses payable to the Advisor and its Affiliates shall be reasonable and shall not exceed an amount equal to
6.0% of the Real Estate Asset Value or the Contract Purchase Price of a Property, or in the case of a Mortgage Loan or other Permitted Investment, 6.0% of the funds advanced, unless a majority of the Board of Directors, including a majority of the
Independent Directors not otherwise interested in the transaction, approves fees in excess of these limits, subject to a determination that the transaction is commercially competitive, fair and reasonable to the Company. Acquisition Fees shall be
reduced to the extent that, and, if necessary to limit, the total compensation paid to all persons involved in the acquisition of any Property to the amount customarily charged in arm’s-length transactions by other persons or entities rendering
similar services as an ongoing public activity in the same geographical location and for comparable types of Properties and to the extent that other acquisition fees, finder’s fees, real estate commissions, or other similar fees or commissions
are paid by any person in connection with the transaction. In addition, Acquisition Fees shall be reduced to 1.0% of Gross Proceeds in connection with sales in excess of 500,000 shares to a “purchaser” (as such term is defined in the
section of the Prospectus titled “The Offering — Plan of Distribution”), provided all such shares are purchased through the same registered investment adviser, Participating Broker or the Managing Dealer. The total of all
Acquisition Fees and any Acquisition Expenses shall be limited in accordance with the Articles of Incorporation. 
  
 (ii)    Advisory Fee.    To the extent the Acquisition Fee is reduced in the manner
described in subparagraph (9)(b)(i) above, for investments by a stockholder in excess of 500,000 Shares, such stockholder and any person it transfers shares to will be required to pay an annual 0.40% Advisory Fee on its Shares to the Advisor or its
Affiliates. Payment of this fee will be withheld from Distributions otherwise payable to such stockholder. Upon Listing, the Advisory Fee will no longer be payable to the Advisor or its Affiliates. Other than the Company’s obligation to
withhold Distributions if and when such Distributions are declared and made, and its obligation to forward such withheld amounts to the Advisor or its Affiliates, the Company shall have no further obligations with respect to this fee. 
  
 (c)    Subordinated Disposition
Fee.    If the Advisor or an Affiliate provides a substantial amount of the services (as determined by a majority of the Independent Directors) in connection with the Sale of one or more Assets, the Advisor or an Affiliate
shall receive a Subordinated Disposition Fee equal to the lesser of (i) one-half of a Competitive Real Estate Commission or (ii) 3% of the sales price of such Property or Properties (or comparable competitive fee in the case of a Mortgage Loan or
other Permitted Investment). The Subordinated Disposition 

  

 14 

 
Fee will be paid only if Stockholders have received total Distributions in an amount equal to or greater than the sum of their aggregate Invested Capital and
their aggregate Stockholders’ 8% Return. To the extent that Subordinated Disposition Fees are not paid by the Company on a current basis due to the foregoing limitation, the unpaid fees will be accrued and paid at such time as the subordination
conditions have been satisfied. The Subordinated Disposition Fee may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions paid to all Persons by the Company (including the
Subordinated Disposition fee) shall not exceed an amount equal to the lesser of (i) 6% of the Contract Sales Price of a Property or (ii) the Competitive Real Estate Commission. In the event this Agreement is terminated prior to such time as the
Stockholders have received total Distributions in an amount equal to 100% of Invested Capital plus an amount sufficient to pay the Stockholders’ 8% Return through the Termination Date, an appraisal of the Properties then owned by the Company
shall be made and the Subordinated Disposition Fee on Properties previously sold will be deemed earned if the Appraised Value of the Properties then owned by the Company plus total Distributions received prior to the Termination Date equals or is
greater than 100% of Invested Capital plus an amount sufficient to pay the Stockholders’ 8% Return through the Termination Date. Upon Listing, if the Advisor or its Affiliates have accrued but not been paid such Subordinated Disposition Fee,
then for purposes of determining whether the subordination conditions have been satisfied, Stockholders will be deemed to have received a Distribution in the amount equal to the product of the total number of Shares outstanding and the average
closing price of the Shares over a period, beginning 180 days after Listing, of 30 days during which the Shares are traded. 
  
 (d)    Subordinated Share of Net Sales Proceeds.    The Subordinated Share of Net Sales
Proceeds shall be payable to the Advisor or its Affiliates in an amount equal to 10% of Net Sales Proceeds from Sales of Assets of the Company payable after the Stockholders have received Distributions equal to or greater than the sum of the
Stockholders’ 8% Return and 100% of Invested Capital. Following Listing, no Subordinated Share of Net Sales Proceeds will be paid to the Advisor or its Affiliates. 
  
 (e)    Subordinated Incentive Fee.    Upon Listing, the
Advisor or its Affiliates shall be paid the Subordinated Incentive Fee in an amount equal to 10% of the amount by which (ii) the market value of the Company, measured by taking the average closing price or average of bid and asked price, as the case
may be, over a period of 30 days during which the Shares are traded, with such period beginning 180 days after Listing (the “Market Value”), plus the total Distributions paid to Stockholders from the Company’s inception until the date
of Listing, exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date the Market Value is determined.
The Company shall have the option to pay such fee in the form of cash, Securities, a promissory note or any combination of the foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor or its
Affiliates of a deferred, subordinated share of Net Sales Proceeds from Sales of Assets of the Company. The Performance Fee, to the extent payable at the time of Listing, will not be payable in the event the Subordinated Incentive Fee is paid to the
Advisor or its Affiliates following Listing. 
  

 15 

 (f)    Loans from Affiliates.    If any
loans are made to the Company by the Advisor or an Affiliate, the maximum amount of interest that may be charged by such Affiliate shall be the lesser of (i) 1% above the prime rate of interest charged from time to time by The Bank of New York and
(ii) the rate that would be charged to the Company by unrelated lending institutions on comparable loans for the same purpose. The terms of any such loans shall be no less favorable than the terms available between non-Affiliated Persons for similar
commercial loans. 
  
 (g)    Changes to Fee Structure.    In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity. A
majority of the Independent Directors must approve the new fee structure negotiated with the Advisor. In negotiating a new fee structure, the Independent Directors shall consider all of the factors they deem relevant, including, but not limited to:
(i) the amount of the advisory compensation in relation to the asset value, composition and profitability of the Company’s portfolio; (ii) the success of the Advisor or any entity to which it assigns or subcontracts its responsibilities
hereunder in generating opportunities that meet the investment objectives of the Company; (iii) the rates charged to other REITs and to investors other than REITs by advisors performing the same or similar services; (iv) additional revenues realized
by the Advisor and its Affiliates through their relationship with the Company, including loan administration, underwriting or broker commissions, servicing, engineering, inspection and other fees, whether paid by the Company or by others with whom
the Company does business; (v) the quality and extent of service and advice furnished by the Advisor; (vi) the performance of the investment portfolio of the Company, including income, conversion or appreciation of capital, and number and frequency
of problem investments; and (vii) the quality of the Property, Mortgage Loan and other Permitted Investment portfolio of the Company in relationship to the investments generated by the Advisor for its own account. The new fee structure can be no
more favorable to the Advisor than the current fee structure. 
  
 (10)    Expenses. 
  
 (a)    In addition to the compensation paid to the Advisor or its Affiliates pursuant to Paragraph 9 hereof, the Company shall pay directly or reimburse the Advisor or its Affiliates for all of the costs and expenses
paid or incurred by the Advisor or its Affiliates in connection with the services they provide to the Company pursuant to this Agreement, including, but not limited to: 
  
 (i)    the Company’s Organizational and Offering Expenses; 
  
 (ii)    Acquisition Expenses incurred in
connection with the selection and acquisition of Properties or the making of Mortgage Loans or other Permitted Investments; 
  
 (iii)    the actual cost of goods and materials used by the Company and obtained from entities not affiliated with the
Advisor, other than Acquisition Expenses; 
  
 (iv)    interest and other costs for borrowed money, including discounts, points and other similar fees; 
  

 16 

 (v)    taxes and assessments on income or Property and taxes as an
expense of doing business; 
  
 (vi)    costs associated with insurance required in connection with the business of the Company or by the Directors; 
  
 (vii)    expenses of managing and operating Properties owned by the Company, whether payable to an Affiliate of the
Company or a non-affiliated Person; 
  
 (viii)    all expenses in connection with payments to the Directors and meetings of the Directors and Stockholders; 
  
 (ix)    expenses associated with Listing or with the issuance and distribution of Shares and Securities, such as
selling commissions and fees, advertising expenses, taxes, legal and accounting fees, and Listing and registration fees; 
  
 (x)    expenses connected with payments of Distributions in cash or otherwise made or caused to be made by the
Directors to the Stockholders; 
  
 (xi)    expenses of organizing, revising, amending, converting, modifying, or terminating the Company or the Articles of Incorporation; 
  
 (xii)    expenses of maintaining communications with Stockholders, including the cost of
preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
  
 (xiii)    expenses related to arranging financing and negotiating and servicing the Mortgage Loans and other Permitted
Investments; 
  
 (xiv)    administrative service expenses (including personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for
which the Advisor receives a separate fee) at the lesser of actual cost or 90% of the competitive rate charged by unaffiliated persons providing similar goods and services in the same geographic location; and 
  
 (xv)    advertising and marketing
expenses, expense reimbursements, audit, accounting and legal fees. 
  
 (b)    Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Paragraph 10 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a
statement documenting such expenses during each quarter, and shall deliver such statement to the Company within 45 days after the end of each quarter. 
  

 17 

 (11)    Other Services.    Should the Directors request
that the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Paragraph 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the
Independent Directors of the Company, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement. 
  
 (12)    Reimbursement to the Advisor or its
Affiliates.    The Company shall not reimburse the Advisor or its Affiliates at the end of any fiscal quarter for Operating Expenses that, in the four consecutive fiscal quarters then ended (the “Expense Year”)
exceed the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year; unless the Independent Directors of the Company shall have made a finding that, based on such unusual and non-recurring
factors which they deem sufficient, a higher level of Operating Expenses is justified for such year. 
  
 Within 60 days after the end of any fiscal quarter of the Company for which total Operating Expenses for the Expense Year exceed the 2%/25% Guidelines,
the Advisor shall send to the Stockholders of the Company a written disclosure of such fact, together with an explanation of the factors the Independent Directors considered in arriving at the conclusion that such higher Operating Expenses were
justified. In the event that the Independent Directors do not determine that such excess expenses are justified, the Advisor shall reimburse the Company the amount by which the total Operating Expenses paid or incurred by the Company exceed the
2%/25% Guidelines. The Company will not reimburse the Advisor or its Affiliates for services for which the Advisor or its Affiliates are entitled to compensation in the form of a separate fee. All figures used in the foregoing computation shall be
determined in accordance with generally accepted accounting principles applied on a consistent basis. 
  
 (13)    Other Activities of the Advisor. 
  
 (a)    Nothing herein contained shall prevent the Advisor from engaging in other
activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or
restrict the right of any director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association.
The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall report to the Directors the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other partnership,
corporation, firm, individual, trust or association. The Advisor or its Affiliates shall promptly disclose to the Directors knowledge of such condition or circumstance. If the Sponsor, Advisor, Director or Affiliates thereof have sponsored other
investment programs with similar investment objectives which have investment funds available at the same time as the Company, it shall be the duty of the Directors 

  

 18 

 
(including the Independent Directors) to (i) follow the method adopted by them and described in the Registration Statement or another reasonable method by
which properties are to be allocated to the competing investment entities and to use their best efforts to apply such method fairly to the Company, and (ii) abide by the terms of the rights of first offer between the Company and CNL Hospitality
Properties, Inc., as described in the Registration Statement (the “Rights of First Offer”). 
  
 (b)    The Advisor shall be required to use its best efforts to present an adequate number of suitable investments to
the Company which are consistent with the investment policies and objectives of the Company but, subject to Paragraph 13(a) and the Rights of First Offer neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to present
any particular investment opportunity to the Company even if the opportunity is of character which, if presented to the Company, could be taken by the Company. 
  

(c)    Except as required by the Rights of First Offer, in the event that the Advisor or its Affiliates is
presented with a potential investment which might be made by the Company and by another investment entity which the Advisor or its Affiliates advises or manages, the Advisor and its Affiliates shall consider the investment portfolio of each entity,
cash flow of each entity, the effect of the acquisition on the diversification of each entity’s portfolio, rental payments during any renewal period, the estimated income tax effects of the purchase on each entity, the policies of each entity
relating to leverage, the funds of each entity available for investment and the length of time such funds have been available for investment. In the event that an investment opportunity becomes available which is suitable for both the Company and a
public or private entity with which the Advisor or its Affiliates are Affiliated, then the entity which has had the longest period of time elapse since it was offered an investment opportunity will first be offered the investment opportunity. For
purposes of this conflict resolution procedure, an investment opportunity will be considered “offered” to the Company when an opportunity is presented to the Board of Directors for its consideration. 
  
 (14)    Relationship of Advisor and
Company.    The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on
either of them. 
  
 (15)    Term;
Termination of Agreement.    This Agreement shall continue in force until [                    , 2005] subject to an
unlimited number of successive one-year renewals upon mutual consent of the parties. It is the duty of the Directors to evaluate the performance of the Advisor annually before renewing the Agreement, and each such agreement shall have a term of no
more than one year. 
  
 (16)    Termination
by Either Party.    This Agreement may be terminated upon 60 days’ prior written notice without Cause or penalty, by either party, or by the mutual consent of the parties (by a majority of the Independent Directors of
the Company or a majority of the Board of Directors of the Advisor, as the case may be). 
  

 19 

 (17)    Assignment to an Affiliate.    This Agreement may
be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors (including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement without
obtaining the approval of the Directors. This Agreement shall not be assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of
the assets, rights and obligations of the Company, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 
  
 (18)    Subcontracts with
Affiliates.    The Advisor may subcontract with an Affiliate for all or a portion of the services and duties to be performed under this Agreement without obtaining the approval of the Directors of the Company to the extent
such services or duties are primarily administrative in nature. If the services or duties under the subcontract with an Affiliate are not primarily administrative in nature, the Advisor must obtain the approval of the Directors of the Company prior
to entering into a subcontract with an Affiliate for all or a portion of the services and duties to be performed under this Agreement. The Advisor may further subcontract any rights to receive fees or other payments for such services or duties under
this Agreement without obtaining the approval of the Directors and may direct the Company to make such payments directly to such affiliates. For purposes of this Agreement, it is agreed that CNL Hospitality Corp. is an Affiliate and that the Advisor
may subcontract all or any portion of the services and duties to be performed hereunder to CNL Hospitality Corp. and, upon execution and delivery of such a subcontract, CNL Hospitality Corp. will be delegated the authority hereunder to perform such
services and will be entitled to receive payments for services under such subcontract directly from the Company. In such instance, CNL Hospitality Corp. shall be deemed a third party beneficiary of this Agreement. 
  
 (19)    Payments to and Duties of Advisor Upon
Termination.    Payments to the Advisor pursuant to this Paragraph (19) shall be subject to the 2%/25% Guidelines to the extent applicable. 
  
 (a)    After the Termination Date, the Advisor shall not be entitled to compensation for
further services hereunder except it shall be entitled to receive from the Company within 30 days of the Termination Date all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this
Agreement, exclusive of disputed items arising out of possible unauthorized transactions. All other amounts payable to the Advisor in the event of a termination shall be evidenced by a promissory note and shall be payable from time to time.

  
 (b)    The Advisor shall
promptly upon termination: 
  
 (i)    pay over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then
entitled; 
  

 20 

 (ii)    deliver to the Directors a full accounting, including a
statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Directors; 
  
 (iii)    deliver to the Directors all assets, including Properties, Mortgage Loans, and
other Permitted Investments, and documents of the Company then in the custody of the Advisor; and 
  
 (iv)    cooperate with the Company and its Directors to provide an orderly management transition. 
  
 (20)    Liability.    Except
as otherwise provided herein or in the Articles of Incorporation of the Company, the Advisor and its officers, directors, Stockholders and employees shall be held harmless for any liabilities, claims, damages and losses suffered by the Company.

  
 (21)    Indemnification by the
Company.    The Company shall indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the
performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees (which expenses may be advanced), to the extent such liabilities, claims, damages or losses and related expenses are not fully reimbursed by
insurance, subject to any limitations imposed by the laws of the State of Maryland or the Articles of Incorporation of the Company. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held harmless pursuant to
this Paragraph 21 for any activity for which the Advisor shall be required to indemnify or hold harmless the Company pursuant to Paragraph 22. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from
Stockholders. 
  
 (22)    Indemnification
by the Advisor.    The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related expenses including reasonable attorneys’ fees (which expenses
may be advanced), to the extent that such liabilities, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, misconduct, or negligence, but the
Advisor shall not be held responsible for any action of the Board of Directors in following or declining to follow any advice or recommendation given by the Advisor. 
  
 (23)    Notices.    Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be
given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein: 
  

 21 

			
	 To the Directors and to the Company:
	 	 CNL Hospitality Properties II, Inc.
 CNL Center at
City Commons
 450 South Orange Avenue
 Orlando, Florida
32801

		
	 To the Advisor:
	 	 CNL Lodging Advisors II Corp.
 CNL Center at City
Commons
 450 South Orange Avenue
 Orlando, Florida
32801

  
 Any party may at any
time give notice in writing to any other party of a change in its address for the purposes of this Paragraph 23. 
  
 (24)    Modification.    This Agreement shall not be changed, modified, terminated, or discharged, in whole
or in part, except by an instrument in writing signed by both parties hereto, or their respective successors or assignees. 
  
 (25)    Severability.    The provisions of this Agreement are independent of and severable from each other,
and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 
  
 (26)    Construction.    The
provisions of this Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of Florida applicable to contracts to be made and performed entirely in said state. 
  
 (27)    Entire
Agreement.    This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
  
 (28)    Indulgences, Not Waivers.    Neither the failure nor any delay on the part of a party to exercise
any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right,
remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  

 22 

 (29)    Gender.    Words used herein regardless of the
number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
  
 (30)    Titles Not to Affect
Interpretation.    The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation
hereof. 
  
 (31)    Execution in
Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute
one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 
  
 (32)    Survival.    All
agreements hereunder which specifically provide that they survive the termination hereof or which require performance after the termination of this Agreement shall survive the termination of this Agreement, including but not limited to the
agreements under Paragraphs 13, 19, 20, 21 and 22. 
  
 (33)    Name.    CNL Lodging Advisors II. Corp. has a proprietary interest in the name “CNL” and has licensed such rights to the Company. Accordingly, and in recognition of this
right, if at any time the Company ceases to retain CNL Lodging Advisors II Corp. or an Affiliate thereof to perform the services of Advisor, the Directors of the Company will, promptly after receipt of written request from CNL Lodging Advisors II
Corp., cease to conduct business under or use the name “CNL” or any diminutive thereof and the Company shall use its best efforts to change the name of the Company to a name that does not contain the name “CNL” or any other word
or words that might, in the sole discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any Affiliate thereof. Consistent with the foregoing, it is specifically recognized that the
Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having
“CNL” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company or its Directors. 
  
 (34)    Initial Investment.    The Advisor has contributed to the Company $200,000 in exchange for 20,000
Shares (the “Initial Investment”). The Advisor may not sell these Shares while the Advisory Agreement is in effect, although the Advisor may transfer such Shares to Affiliates. The restrictions included above shall not apply to any Shares,
other than the Shares acquired through the Initial Investment, acquired by the Advisor or its Affiliates. The Advisor shall not vote any Shares it now owns, or hereafter acquires, in any vote for the removal of Directors or any vote regarding the
approval or termination of any contract with the Advisor or any of its Affiliates. 
  

 23 

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

			
	CNL HOSPITALITY PROPERTIES II, INC.
		
	By:	 	 
	 Name:
 Its:

  

			
	CNL LODGING ADVISORS II CORP.
		
	By:	 	 
	 Name:
 Its:

  

 24

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