Document:

Description of Verbal Arrangements with Members of the Company's Board

 Exhibit 10.1 
  
 The following is a summary description of the verbal arrangements with the Company’s non-employee members of the Board of Directors
regarding their compensation: 
  
 Each non-employee director is paid an annual fee
of $20,000 for his or her services as a director, and $1,000 for each Board of Directors meeting attended. Each regular member of the Compensation Committee receives $1,000 for each Compensation Committee meeting attended; the Chairperson of the
Compensation Committee receives $2,000 for each Compensation Committee meeting attended. Each regular member of the Audit Committee receives $2,000 for each Audit Committee meeting attended; the Chairperson of the Audit Committee receives $3,000 for
each Audit Committee meeting attended. Each regular member of the Nominating and Corporate Governance Committee receives $1,000 for each Nominating and Corporate Governance Committee meeting attended; the Chairperson of the Nominating and Corporate
Governance Committee receives $2,000 for each Nominating and Corporate Governance Committee meeting attended. All non-employee directors are reimbursed for their reasonable out-of-pocket expenses incurred in attending Board of Directors meetings and
committee meetings. New non-employee directors elected or appointed at any time other than at the August Board meeting will receive an initial pro-rated stock option grant in an amount equal to the product of (i) the percentage of the year remaining
until the next regularly scheduled August Board meeting, and (ii) 12,000. Each non-employee director of the company automatically receives an annual grant of 12,000 options at the August meeting of the Board. These stock options are granted at the
then-current market price, and vest immediately but will not be exercisable until the one-year anniversary of the grant date.SFSB, Inc. and Slavie Federal Savings Bank Director Compensation Policy

 Exhibit 10.1 
  
 SFSB, INC. 
 SLAVIE FEDERAL SAVINGS BANK 
 Director Compensation Policy 
  
 This Director Compensation Policy (the “Director Compensation
Policy”) sets forth the policies of SFSB, Inc. (the “Company”) and Slavie Federal Savings Bank (the “Bank”), pertaining to the remuneration which the Company and the Bank shall pay to members (“Directors”) of their
respective Boards of Directors. 
  
 1. Remuneration for Officers and
Employees All Directors, including Directors who are officers or employees of the Company or the Bank are entitled to remuneration for serving as a Director. 
  
 2. Cash Compensation for Meetings. Slavie Federal Savings Bank shall pay each director, including the employee directors (Messrs.
Logan and Wagner), $700 for each regular meeting and the annual meeting, $75 for each quarterly meeting and an amount determined by the board of directors for special meetings. All directors are also eligible for an annual bonus, which shall be
awarded at the discretion of the board of directors. In addition, each non-employee director shall be paid $200 for the first hour of each committee meeting attended, and $50 for each additional half-hour with a $700 maximum fee per committee
meeting. Members of the loan committee shall also receive a monthly fee of $50. Directors shall be paid for two excused absences from board and committee meetings. Directors shall only paid for additional absences if the absence is for a medical
reason. 
  
 3. Special Cash Compensation. The Board of Directors or the
compensation committee of the Board of Directors of Slavie Federal Savings Bank may authorize discretionary payments to one or more Directors or the entire Board of Directors as a result of outstanding service. 
  
 4. Expense Reimbursements. All Directors of the Company and Slavie Federal Savings
Bank are entitled to reimbursement for reasonable expenses incurred on behalf of the Company and Slavie Federal Savings Bank. 
  
 5. Compensation to Secretary. The Secretary of Slavie Federal Savings Bank, in addition to any fees such person may receive as a director, shall be compensated
$150.00 for each regular, annual and special board meeting attended and $75.00 for each quarterly meeting. 
  
 6. Compensation to Directors of SFSB, Inc.. Unless and until the Company becomes actively involved in additional businesses other than owning all the capital stock of Slavie Federal Savings Bank, no separate
cash compensation will be paid to the directors of the Company in addition to that paid to them by Slavie Federal Savings Bank in their capacities as directors of Slavie Federal Savings Bank. The Company may determine in the future that such
separate cash compensation is appropriate. 

 7. Amendment or Termination. This Director Compensation Policy may be amended, altered or terminated at the
election of the Board of Directors of the Company in its absolute discretion. 
  
 8. Effective Date. This Director Compensation Policy was adopted by the Board of Directors of the Company and the Bank on February 7, 2005.Form of Retention Agreement

 Exhibit 10.1 
  
 MATRIX SERVICE COMPANY 
  
 Change of Control and Retention Agreement 
  
 This Agreement between Matrix Service Company (the “Company”) and
                     (“Employee”) is entered into effective
                    . 
  
 Severance/Change of Control 
  
 In the event of a “change of control” in the ownership of the Company and any “adverse personnel action” against Employee, Employee may terminate his
employment with the Company and receive one year of severance pay. The severance pay will be equal to Employee’s annual base salary at the time of the adverse personnel action or the termination, whichever is greater. This severance arrangement
will apply for a period of six months following any change of control. The severance will be paid in a lump sum payment and will be paid to Employee within 30 days of the termination. 
  
 In addition, all outstanding stock options will vest immediately in the event of “change of control,” regardless of whether any
adverse personnel action affects the Employee. 
  
 For purposes of this severance
agreement, a “change of control” will mean: 
  

	 	•	 	The merger or consolidation of the Company with any person or entity (other than a merger or consolidation to change the place of domicile of the Company) where the Company is not
the surviving entity (or survives only as the subsidiary of another person or entity), or 

  

	 	•	 	The sale of all or substantially all of the Company’s assets to any person or entity, or 

  

	 	•	 	If any person or entity together with its affiliates shall become, directly or indirectly, the beneficial owner of at least 51% of the voting stock of the Company, or

  

	 	•	 	If any person or entity together with its affiliates shall acquire, directly or indirectly, the voting power to elect a majority of the members of the Board of Directors of the
Company, other than the acquisition and voting of proxies by management of the Company to elect members to the Board of Directors in the normal course at an annual meeting of shareholders that is not, directly or indirectly, in connection with, or
for the purposes of effecting, a “change of control.” 

  
 For purposes of this severance agreement, “adverse personnel action” will mean an action taken against Employee by the acquiring entity which has an adverse impact on Employee’s economic status or opportunity with the
Company. These actions will include: 
  

	 	•	 	Involuntary termination 

  

	 	•	 	Reduction in base salary 

  

	 	•	 	Reduction in salary range or opportunity 

  

	 	•	 	Reduction in incentive compensation range or opportunity 

  

	 	•	 	Material reduction in benefits or perquisites 

  

	 	•	 	Reassignment to a position or role with a lower salary range, salary opportunity, incentive range or incentive opportunity 

  

	 	•	 	Material reduction in responsibilities. 

  
 Retention Bonus 
  
 Provided Employee remains employed with the Company through August 15, 2006, Employee will be paid a Retention Bonus, according to the terms outlined below: 
  

	 	•	 	Bonus Payment will equal the greater of the Target bonus or the actual bonus earned in FY06 under the company’s Incentive Compensation Plan. 

	 	•	 	To receive the Retention Bonus, Employee must be employed by the Company at the time the bonus is paid, but no later than August 15, 2006. 

  

	 	•	 	If Employee is involuntarily terminated for any reason, other than “cause,” prior to August 15, 2006, Employee will be paid the Target bonus on a pro-rata basis in
relation to the full months of service completed at the time of termination. 

  
 For purposes of this Retention bonus arrangement, “cause” will be defined as: 
  

	 	•	 	Conviction of a felony, pleading guilty or nolo contendre to a felony charge 

  

	 	•	 	Gross and willful neglect of job responsibilities 

  

	 	•	 	Participation as an employee, officer, or principal shareholder in any business engaged in activities in direct competition with the Company without the consent of the Company

  

	 	•	 	Other offenses against the Company, including theft, embezzlement, dishonesty, violation of Company policy or release of proprietary or confidential information in a manner that
would be detrimental to the Company’s best interests. 

  

			
	Matrix Service Company
		
	By:	 	  

	 	 	Michael J. Hall
	 	 	President and Chief Executive Officer
		
	By:	 	  

	 	 	EmployeeEXHIBIT 10.3

 Exhibit 10.3 
  
 FORM 
 MANAGEMENT AGREEMENT 
  
 by and between 

 
 MARRIOTT HOTEL SERVICES, INC. 
  
 (as “MANAGER”) 
  
 and 
  
 (as “OWNER”) 
  
 Dated as of  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I - MANAGEMENT OF THE HOTEL
	  	2
			
	 1.01
	  	 Appointment
	  	2
	 1.02
	  	 Delegation of Authority
	  	2
	 1.03
	  	 [Intentionally Omitted]
	  	2
	 1.04
	  	 Management Responsibilities
	  	2
	 1.05
	  	 Licenses and Permits
	  	4
	 1.06
	  	 Employees
	  	4
	 1.07
	  	 Owner’s Right to Inspect
	  	6
	 1.08
	  	 Regular Meetings
	  	6
	 1.09
	  	 System Standards and Criteria for Approvals
	  	6
	 1.10
	  	 Central Office Services
	  	6
	 1.11
	  	 Chain Services
	  	6
	 1.12
	  	 Related Party Transactions
	  	7
	 1.13
	  	 Profit and Cost Transactions Relating to the Hotel
	  	7
	 1.14
	  	 Marriott Rewards Program
	  	8
	 1.15
	  	 Procurement Rebates and Fees
	  	9
	 1.16
	  	 Limitations on Manager’s Authority
	  	10
	 1.17
	  	 Time-Share
	  	10
		
	 ARTICLE II - TERM
	  	11
			
	 2.01
	  	 Term
	  	11
	 2.02
	  	 Performance Termination
	  	11
	 2.03
	  	 Limitation on Termination by Owner
	  	13
		
	 ARTICLE III - COMPENSATION OF MANAGER
	  	13
			
	 3.01
	  	 Management Fees
	  	13
	 3.02
	  	 Distribution of Operating Profit
	  	14
		
	 ARTICLE IV - ACCOUNTING AND REPORTING MATTERS
	  	14
			
	 4.01
	  	 Accounting and Interim Distributions
	  	14
	 4.02
	  	 Books and Records; Annual Operating Statement
	  	15
	 4.03
	  	 Hotel Accounts and Expenditures
	  	16
	 4.04
	  	 MBS Systems
	  	17
	 4.05
	  	 Direct Deductions and Direct Deductions Report
	  	17
	 4.06
	  	 Annual Profit Transactions Report
	  	18
	 4.07
	  	 Chain Services Report
	  	18
	 4.08
	  	 Business Plan
	  	18
	 4.09
	  	 Working Capital
	  	20
	 4.10
	  	 Fixed Asset Supplies
	  	20
	 4.11
	  	 Real Estate and Personal Property Taxes
	  	21

  

 - i - 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE V - REPAIRS, MAINTENANCE AND REPLACEMENTS
	  	21
			
	 5.01
	  	 Repairs and Maintenance Costs Which Are Expensed
	  	21
	 5.02
	  	 FF&E Reserve
	  	22
	 5.03
	  	 Capital Expenditures
	  	25
	 5.04
	  	 Ownership of Replacements
	  	26
	 5.05
	  	 Management of Hotel Renovation and Construction Projects
	  	26
		
	 ARTICLE VI - INSURANCE
	  	27
			
	 6.01
	  	 Property Insurance
	  	27
	 6.02
	  	 Operational Insurance
	  	29
		
	 ARTICLE VII DAMAGE, REPAIR AND CONDEMNATION
	  	30
			
	 7.01
	  	 Damage and Repair
	  	30
	 7.02
	  	 Condemnation
	  	31
		
	 ARTICLE VIII - OWNERSHIP OF THE HOTEL
	  	31
			
	 8.01
	  	 Ownership of the Hotel
	  	31
	 8.02
	  	 Mortgages
	  	32
	 8.03
	  	 Subordination, Non–Disturbance and Attornment
	  	33
	 8.04
	  	 No Covenants, Conditions or Restrictions
	  	34
	 8.05
	  	 Liens; Credit
	  	35
	 8.06
	  	 Amendments Requested by Mortgagee
	  	35
		
	 ARTICLE IX - DEFAULTS
	  	36
			
	 9.01
	  	 Events of Default
	  	36
	 9.02
	  	 Remedies
	  	37
	 9.03
	  	 Additional Remedies
	  	38
		
	 ARTICLE X ASSIGNMENT AND SALE
	  	38
			
	 10.01
	  	 Assignment
	  	38
	 10.02
	  	 Sale of the Hotel
	  	39
		
	 ARTICLE XI MISCELLANEOUS
	  	42
			
	 11.01
	  	 Right to Make Agreement
	  	42
	 11.02
	  	 Consents and Cooperation
	  	42
	 11.03
	  	 Relationship
	  	42
	 11.04
	  	 Applicable Law
	  	42
	 11.05
	  	 Recordation
	  	43
	 11.06
	  	 Headings
	  	43
	 11.07
	  	 Notices
	  	43
	 11.08
	  	 Environmental Matters
	  	44
	 11.09
	  	 Confidentiality
	  	45

  

 - ii - 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 11.10
	  	 Projections
	  	45
	 11.11
	  	 Actions to be Taken Upon Termination
	  	46
	 11.12
	  	 Trademarks and Intellectual Property
	  	48
	 11.13
	  	 Trade Area Restriction and Competing Facilities
	  	49
	 11.14
	  	 Waiver
	  	50
	 11.15
	  	 Partial Invalidity
	  	51
	 11.16
	  	 Survival
	  	51
	 11.17
	  	 Negotiation of Agreement
	  	51
	 11.18
	  	 Estoppel Certificates
	  	51
	 11.19
	  	 Restrictions on Operating the Hotel in Accordance with System Standards
	  	52
	 11.20
	  	 Decision by Experts
	  	52
	 11.21
	  	 Waiver of Jury Trial and Consequential and Punitive Damages
	  	53
	 11.22
	  	 Counterparts
	  	53
	 11.23
	  	 Extraordinary Events
	  	53
	 11.24
	  	 Indemnification
	  	54
	 11.25
	  	 Entire Agreement
	  	54
		
	 ARTICLE XII - DEFINITION OF TERMS
	  	54
			
	 12.01
	  	 Definition of Terms
	  	54

  

 - iii - 

 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT (“Agreement”) is executed as of the
         day of              (“Effective Date”), between
                     (“Owner”), a Delaware limited liability company with offices at c/o DiamondRock Hospitality Limited
Partnership, 10400 Fernwood Road, Bethesda, Maryland 20817, and MARRIOTT HOTEL SERVICES, INC. (“Manager”), a Delaware corporation, with a mailing address at c/o Marriott International, Inc., 10400 Fernwood Road, Bethesda, Maryland
20817. 
  
 R E C I T A L S 
  
 A.
                     (“Landlord”) is the owner of fee title to the parcel of real property (the “Site”) described on
Exhibit A, which is attached to this Agreement and incorporated by reference herein. 
  
 B. The Site has been improved with a building or buildings containing approximately              Guest Rooms, a lobby, restaurants, meeting rooms,
administrative offices, parking, and certain other amenities and related facilities (collectively, the “Hotel Improvements”). The Site and the Hotel Improvements, in addition to certain other rights, improvements, and personal property as
more particularly described in the definition of “Hotel” in Section 12.01 hereof, are collectively referred to as the “Hotel.” 
  
 C. Landlord and Owner have entered into that certain lease agreement dated as of
                     (the “Lease Agreement”), pursuant to which Landlord leases the Hotel to Owner. 
  
 D. Owner, Landlord and Manager have entered into that certain Owner Agreement
(the “Owner Agreement”), dated as of the Effective date, which document clarifies the relationship between Owner, Landlord and Manager and addresses Owner’s and Landlord’s obligations with respect to this Agreement. 

 
 F. All capitalized terms used in this Agreement shall have the meanings
ascribed to such terms in Section 12.01 hereof. 
  
 G. Owner
desires to engage Manager to manage and operate the Hotel and Manager desires to accept such engagement upon the terms and conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and Manager agree as follows. 
  

 ARTICLE I 
  

MANAGEMENT OF THE HOTEL 
  
 1.01 Appointment 
  
 Owner hereby appoints and employs Manager to supervise, direct and control the management and operation of the Hotel for the Term. Manager accepts said
appointment and agrees to manage and operate the Hotel during the Term in accordance with the terms and conditions hereinafter set forth. 
  
 1.02 Delegation of Authority 
  
 The operation of the Hotel shall be under the exclusive supervision and control of Manager which, except as otherwise specifically provided in this
Agreement, shall be responsible for the proper and efficient operation of the Hotel. In fulfilling its obligations under this Agreement, Manager shall act as a reasonable and prudent operator of the Hotel, having regard for the status of the Hotel
and maintaining the System Standards. Manager shall operate the Hotel with the goal of achieving long-term profitability, subject to the requirement that the Hotel be managed, operated and maintained as part of the Marriott Hotel System and in
accordance with System Standards. Subject to the terms hereof, Manager shall have discretion and control in all matters relating to management and operation of the Hotel, free from interference, interruption or disturbance, but in all respects
subject to the provisions of this Agreement. 
  
 1.03
[Intentionally Omitted] 
  
 1.04 Management
Responsibilities 
  
 A. Manager shall manage the Hotel in
accordance with the standards set forth in Section 1.02 and perform each of the following functions (the costs and expenses of which shall be Deductions) with respect to the Hotel: 
  
 1. Establish employment policies and recruit, employ, supervise, direct and discharge the employees at the
Hotel. 
  
 2. Establish prices, rates and charges
for services provided in the Hotel, including Guest Room rates and rates for commercial space and other space in the Hotel. 
  
 3. Establish and revise, as necessary, administrative policies and procedures, including policies and procedures for the control of
revenue and expenditures, for the purchasing of supplies and services, for the control of credit, and for the scheduling of maintenance, and verify that the foregoing procedures are operating in a sound manner. 
  
 4. Receive, hold and disburse funds, maintain bank accounts
and make payments on accounts payable and handle collections of accounts receivable. 
  

 - 2 - 

 5. Undertake publicity and promotion, arrange for and supervise public relations and
advertising, prepare marketing plans, and make available to the Hotel the benefits of various marketing and guest loyalty and recognition programs in use in the Marriott Hotel System as they may exist from time to time, such as the Marriott Rewards
Program. 
  
 6. Procure all Inventories and
replacement Fixed Asset Supplies. 
  
 7. Prepare
and deliver interim accountings, annual accountings, Annual Operating Statements, Building Estimates, FF&E Estimates, and such other information as is required by this Agreement and be available at reasonable times to discuss generally with
Owner the above-listed items as well as the operations at the Hotel. 
  
 8. Plan, execute and supervise repairs, maintenance and FF&E purchases at the Hotel in accordance with the terms of Article V of this Agreement. 
  
 9. Provide, or cause to be provided, risk management services relating to the types of insurance required to
be obtained or provided by Manager under this Agreement. 
  
 10. Provide food and beverage services. 
  
 11. Except as provided in the Addendum, use reasonable efforts to obtain and keep in full force and effect, either in Manager’s name or in Owner’s name, as may be determined by Manager or as required by
applicable law, any and all operating licenses and permits. 
  
 12. Enter into leases, licenses and concessions for the Hotel (including rooftops and all other spaces related to the Hotel), which Manager may execute on behalf of the Hotel or Owner. 
  
 B. Manager will use its reasonable efforts to comply with and abide by all
applicable Legal Requirements (except for certain Legal Requirements which are Owner’s responsibility under Section 5.03 and Section 11.08 hereof) pertaining to its operation of the Hotel. Owner will use its reasonable efforts to comply with
and abide by all applicable Legal Requirements pertaining to the Hotel Improvements or to Owner’s ownership interest in the Hotel (including, without limitation, Owner’s obligations under Section 5.03 and Section 11.08 hereof). Either
Owner or Manager shall have the right, but not the obligation, in its reasonable discretion, to 

  

 - 3 - 

 
contest or oppose, by appropriate proceedings, any such Legal Requirements. The reasonable expenses of any such contest of a Legal Requirement by Manager
shall be paid from Gross Revenues as Deductions. 
  
 1.05
Licenses and Permits 
  
 Owner agrees that, upon request by
Manager, Owner will sign without charge applications for licenses necessary for operation of the Hotel. 
  
 1.06 Employees 
  
 A. All personnel employed at the Hotel shall, at all times from and after the Effective Date, be the employees of Manager (or one of its Affiliates).
Manager shall have absolute discretion with respect to all personnel employed at the Hotel, including, without limitation, decisions regarding hiring (except as provided in Section 1.06.E below), promoting, transferring, compensating, supervising,
terminating, directing and training all employees at the Hotel, and, generally, establishing and maintaining all policies relating to employment. All information regarding individual employees, such as employee records and individual compensation
information, is proprietary to Manager and confidential and shall not be disclosed to Owner. Manager shall be permitted to provide free accommodations and amenities to its employees and representatives visiting the Hotel in connection with its
management or operation. No person shall otherwise be given gratuitous accommodations or services without prior joint approval of Owner and Manager except in accordance with usual practices of the hotel and travel industry. If Manager shall be
required to recognize a labor union or to enter into collective bargaining with a labor union, it shall promptly notify Owner and shall keep Owner apprised of the course of any such union negotiations. 
  
 B. All settlements or payments of Employee Claims (in excess of amounts
covered by applicable insurance) shall be made by Manager exercising its reasonable discretion and, subject to Section 1.06.G, shall be paid as Deductions. 
  
 C. With respect to all Litigation or arbitration involving Employee Claims in which both Manager and Owner are involved as actual or potential defendants,
Manager shall have exclusive and complete responsibility for the resolution of such Employee Claims. In the event that any Employee Claim is made against Owner, but not against Manager, Owner shall give notice to Manager of the Employee Claim in a
timely manner so as to avoid any prejudice to the defense of the Employee Claim, provided that Manager shall in all events be so notified within twenty (20) days after the date such Employee Claim is made against Owner. Manager will thereafter
assume exclusive and complete responsibility for the resolution of such Employee Claim. 
  
 D. Manager shall have the right to allocate the services and time of a Hotel employee between the Hotel and (i) other hotels (including hotels under development) managed by Manager or its Affiliates and/or (ii) local,
regional or central office(s); provided, however, that Manager shall obtain Owner’s prior approval if Manager elects to allocate more than fifteen 

  

 - 4 - 

 
percent (15%) of the General Manager’s annual time to a hotel other than the Hotel. The compensation and other costs (including, without limitation,
termination costs, if any) of such Hotel employee (x) shall be allocated to the Hotel and such other hotels or regional or central office on a fair and consistent basis and (y) shall not otherwise be financially disadvantageous to Owner or the
Hotel. Manager shall disclose such allocation upon Owner’s request. 
  
 E. Owner hereby approves the General Manager and Director of Marketing employed at the Hotel as of the Effective Date. Manager shall have the power to hire, dismiss or transfer the Hotel’s General Manager and the
Director of Marketing; provided, however, Manager shall keep Owner reasonably informed with respect to such actions, including prior notification to Owner of Manager’s desire to transfer the Hotel’s General Manager, and shall give Owner
the opportunity to participate in the process with respect to the hiring of any such position as follows: 
  
 1. Owner shall be given at least thirty (30) days’ prior notice of any proposed hiring of a General Manager or Director of Marketing.
Manager shall consult with Owner to obtain any suggestions by Owner as to the preferred background and specific expertise of candidates for such Hotel position, which suggestions, if any, Manager shall utilize in arriving at a preferred profile for
candidates for such position. 
  
 2. Manager
shall submit to Owner for its approval a reasonably qualified candidate for such position. Owner shall have a period of fifteen (15) days from its receipt of the applicable candidate’s resume within which to interview and evaluate such
candidate (provided that such candidate and the necessary representatives of Owner are reasonably available during such period for such interview or evaluation, and such candidate will not be required to provide additional information or undertake
testing of any sort as part of such process). Owner shall be deemed to have approved such candidate unless Manager shall have received from Owner notice to the contrary within such fifteen (15) day period. If Owner disapproves the first candidate,
Manager shall submit a second candidate, using the same process described above, and if such second candidate is disapproved by Owner, Manager shall submit a third candidate, using the same process as described above. If Owner disapproves three (3)
candidates for the position submitted in good faith by Manager pursuant to the provisions of this Section 1.06.E.2, Manager shall have the right to select the person to be offered the position, in its sole discretion, from the three (3) candidates
disapproved by Owner. 
  
 F. Manager shall consult with Owner, and
shall in good faith consider Owner’s comments, concerning Manager’s hiring or replacement of the Director of Finance at the Hotel. 
  
 G. Manager shall pay from its own funds, and not from Gross Revenues, any Employee Claim where the basis of such Employee Claim is conduct by Manager
that: (i) is a substantial violation of the standards of responsible labor relations as generally practiced by prudent owners or operators of similar hotel properties in the general geographic area of the Hotel; and (ii) is not the isolated act of
individual employees, but rather is a direct result of corporate policies of Manager that either encourage or fail to discourage such conduct. Any 

  

 - 5 - 

 
dispute between Owner and Manager as to whether or not certain conduct by Manager is not in accordance with the aforesaid standards shall be resolved by a
panel of Experts in accordance with Section 11.20. 
  
 1.07
Owner’s Right to Inspect 
  
 Owner and its agents
shall have access to the Hotel at any and all reasonable times for the purpose of inspection or showing the Hotel. 
  
 1.08 Regular Meetings 
  
 At Owner’s request, Owner and Manager shall have quarterly meetings at the Hotel and at mutually convenient times. Manager shall be represented at
such meetings by the general manager of the Hotel and such other members of the executive committee at the Hotel as the general manager may deem appropriate. The purpose of the meetings shall be to discuss the performance of the Hotel and other
related issues, including any variations from the Business Plan for the preceding quarter. 
  
 1.09 System Standards and Criteria for Approvals 
  
 Owner and Manager agree that it is their mutual intent that the Hotel be operated as part of the Marriott Hotel System in compliance with System Standards. Owner and Manager agree that, subject to the terms and
conditions of this Agreement, Manager shall have discretion in operating the Hotel in order that the Hotel will comply with System Standards, and that, in exercising their respective rights of approval herein, they will do so consistent with the
requirements of System Standards. 
  
 1.10 Central Office
Services 
  
 As part of its management services provided
hereunder, Manager shall provide, at its own cost and not as a Deduction, the Central Office Services that are described on Exhibit B attached hereto. 
  
 1.11 Chain Services 
  
 A. Manager shall cause to be furnished to the Hotel certain services (“Chain Services”) that are furnished on a comparable basis to full service
hotels in the Marriott Hotel System. Chain Services shall include: (i) the general categories of services listed in Exhibit C attached hereto, and (ii) such additional central programs or services as may, from time to time, be furnished for the
benefit of hotels in the Marriott Hotel System or in substitution for services now performed at individual hotels which Manager determines can be provided more efficiently and economically on a system basis; provided, however, that services shall
only be added to “Chain Services” pursuant to clause (ii) above if, and to the extent that, such services: (a) are not Central Office Services; and (b) are either (x) new services (i.e., not previously performed at the Hotel) or (y)
services that theretofore had been performed at the Hotel, but that can be performed 

  

 - 6 - 

 
more efficiently and economically for the Marriott Hotel System as a whole. In no event shall the charge to the Hotel in a Fiscal Year for the Chain Services
described in clause (i) above (but excluding those related to Central Reservation Services) exceed an amount equal to          percent (        %) of Gross
Revenues for such Fiscal Year. 
  
 B. Costs and expenses incurred
in the providing of Chain Services shall be allocated on a fair and consistent basis among all hotels in the Marriott Hotel System. The charges for Chain Services shall include, as applicable, an allocation of salaries, wages, development costs and
overhead related to the employees of Manager, Marriott or any Affiliate of Manager or Marriott involved in providing any of the Chain Services. The costs associated with any Chain Services that are used by hotels in the Marriott Hotel System and
that are also provided to other hotel brands owned by Marriott shall be allocated to such other brands on a fair and consistent basis, taking into account the level of such Chain Services being provided to each of such other brands.

  
 C. Pursuant to the provisions of Section 4.07, Manager shall
provide to Owner the Chain Services Report, as such document is described in Section 4.07. 
  
 1.12 Related Party Transactions 
  
 Subject to Manager’s compliance with the provisions of Section 1.13, Manager shall have the right to enter into or implement transactions with one or more Related Parties to purchase, sell, lease, procure or provide goods and/or
services for or to the Hotel. 
  
 1.13 Profit and Cost
Transactions Relating to the Hotel 
  
 A. A “Profit
Transaction” shall mean any transaction entered into or implemented by Manager or a Related Party involving the purchase, sale, lease or other procurement or provision of goods or services for or to the Hotel, which is structured for Manager or
a Related Party to receive a direct economic benefit (including receipt of an equity interest) as a result of such transaction, other than through Management Fees, that is in excess of the costs of such transaction. 
  
 B. Manager and the Related Parties may implement any Profit Transaction
without Owner’s approval, provided that (i) the Profit Transaction satisfies the Competitive Terms Standard, and (ii) Manager notifies Owner of such Profit Transaction as part of the Annual Profit Transactions Report. 
  
 C. Any dispute as to whether a Profit Transaction satisfies the Competitive
Terms Standard shall be resolved by a panel of Experts in accordance with Section 11.20. If the Experts determine that the Competitive Terms Standard was not satisfied, Manager shall elect either to (i) incorporate, or cause the applicable Related
Party to incorporate, modifications into the Profit Transaction that the Experts may require to satisfy the Competitive Terms Standard, in which event the Profit Transaction, as so modified, may be implemented; or (ii) cease, not undertake, or cause
the applicable Related Party to cease or not undertake, the transaction as a 

  

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Profit Transaction; provided, however, that (i) Manager and the Related Parties shall nevertheless have the right to undertake such transaction for other
parties, entities or hotels, and (ii) as Owner’s sole and exclusive remedy for Manager’s actions, Manager shall return to the Hotel the excess of the amount paid by the Hotel to the Related Party with respect to such Profit Transaction
less the amount that would have been paid had the Profit Transaction met the Competitive Terms Standard. If such reimbursement to the Hotel relates to a matter that was treated as a Deduction, appropriate adjustments shall be made to the calculation
of Operating Profit and to all other related calculations to reflect the reimbursement to the Hotel. A Profit Transaction shall be deemed to satisfy the Competitive Terms Standard if Manager elects to obtain approval of such Profit Transaction from
owners of a majority of the then-existing rooms in the Marriott Hotel System, and obtains such approval from the owners of a majority of the then-existing rooms in the Marriott Hotel System. 
  
 D. The parties agree that the utilization of Avendra, LLC for procurement
purposes pursuant to its contract terms as of the Effective Date and the utilization of STSN, Inc. for high-speed internet access service pursuant to its contract terms as of the Effective Date are Profit Transactions that satisfy the Competitive
Terms Standard allowed under the terms hereof. 
  
 E. A “Cost
Transaction” shall mean any transaction involving the purchase, sale, lease or other procurement or provision of goods or services that (i) when provided for or to the Hotel, is implemented utilizing a cost reimbursement or cost allocation
methodology to price such goods or services (which costs may include a reasonable allocation of development, start-up and operational costs incurred by the provider in connection with providing such goods or services), as opposed to a methodology
designed to yield a profit on such goods or services (other than profits that Manager earns through Management Fees); and/or (ii) when provided for or to any third party, is implemented on any terms and conditions (including the utilization of
either a cost or a profit methodology). Consistent with the other terms and conditions of this Agreement, Manager and the Related Parties may implement any Cost Transaction for or to the Hotel without Owner’s approval. 
  
 F. If Manager or a Related Party implements a Cost Transaction for both the
Hotel and any third party, then Manager or the Related Party may earn a profit from implementing such Cost Transaction to such third party, provided that the costs associated with such Cost Transaction (including development and start-up costs, if
any) shall be allocated on a fair and consistent basis among all the parties (including the Hotel) utilizing such Cost Transaction, taking into account the level of services provided under such Cost Transaction to each of the parties (including the
Hotel) utilizing such Cost Transaction. Any disputes between Owner and Manager concerning the allocation of such costs under this Section 1.13.F shall be resolved by a panel of Experts in accordance with Section 11.20 hereof. 
  
 1.14 Marriott Rewards Program 
  
 Manager shall have the right to include the Hotel, and to cause the Hotel to
participate, in the Marriott Rewards Program from and after the Effective Date. Charges and reimbursements to the Hotel resulting from the Marriott Rewards Program shall be consistent with charges and reimbursements to all other hotels in the MHRS
System participating in the Marriott Rewards 

  

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Program, which charges and reimbursements shall be subject to change from time to time. All expenses charged to the Hotel in connection with the Marriott
Rewards Program shall be treated as Deductions. Manager and the Related Parties shall not earn a profit from the Hotel with respect to its participation in the Marriott Rewards Program; provided, however, that Manager and the Related Parties shall
nevertheless have the right to earn a profit by utilizing the systems and infrastructure of the Marriott Rewards Program for third parties in accordance with and subject to the terms and conditions of Section 1.13.F. 
  
 1.15 Procurement Rebates and Fees 
  
 A. In any instance in which Manager receives an Unrestricted Rebate with
respect to any purchase, sale, lease or other procurement or provision of goods or services for or to the Hotel, such Unrestricted Rebate (or allocable portion thereof, based on a reasonable allocation formula, to the extent that such Unrestricted
Rebate also applies to the purchase, sale, lease or other procurement or provision of goods or services for or to other hotels or third parties) shall be treated as follows: (i) first, the amount of such Unrestricted Rebate shall be applied against
any costs incurred in connection with the purchase, sale, lease or other procurement or provision of goods or services for or to the Hotel (which costs shall be allocated to the Hotel on a reasonable basis to the extent such costs also apply to the
purchase, sale, lease or other procurement or provision of goods or services for or to other hotels or third parties) and (ii) second, any remaining amount of such Unrestricted Rebate shall be reimbursed to the Hotel (which reimbursement shall be
treated as a reduction of the Deductions for the applicable period). Manager shall have the right, at its reasonable discretion, to modify the above procedure to (x) pay the entire amount of the costs described in clause (i) above as a Deduction and
(y) reimburse to the Hotel the entire amount of such Unrestricted Rebate (i.e., without netting the two amounts as described in the immediately preceding sentence). 
  
 B. For purposes hereof, the term “Unrestricted Rebate” shall mean a rebate, payment or other enrichment received
by Manager with respect to the purchase, sale, lease or other procurement or provision of goods or services specifically for or to the Hotel, where Manager is entitled to return such rebate, payment or enrichment to each of the hotels for or to
which the goods or services were purchased, sold, leased, procured or provided. The term “Unrestricted Rebate” shall not include (i) any allowances, payments or other enrichments received by Manager with respect to the purchase, sale,
lease or other procurement or provision of goods or services for or to the Hotel, where Manager is not entitled to return such allowances, payments or enrichments to the hotels for or to which the goods or services were purchased, sold, leased,
procured or provided or is required by a third party to utilize or allocate such allowances, payments or enrichments in a specific manner or (ii) any conference sponsorship payments received by Manager that are used to defray conference costs. If
Manager receives an allowance, payment or enrichment pursuant to Section 1.15.B(i) or (ii), Manager shall utilize or allocate such allowance, payment or enrichment in the manner required by the third party and shall not directly profit from such
allowance, payment or enrichment. 
  

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 1.16 Limitations on Manager’s Authority 
  
 Manager shall not, without Owner’s prior approval: 
  
 A. Engage any consultant, professional or operational expert to provide
services with respect to the Hotel and its operation, if the total cost of such engagement will exceed Ten Thousand Dollars ($10,000) in any Fiscal Year, as adjusted by the GDP Deflator; 
  
 B. Enter into, renew or extend any (y) lease or sublease with any Affiliate of Manager or (z) equipment lease, other lease,
sublease, license, concession or service contract at the Hotel if (i) the total term or renewal term of such lease, sublease, concession or service contract will exceed five (5) calendar years; (ii) the annual rent, payment or fee required to be
paid by the lessee, sublessee, licensee or third party under such service contract or concession agreement will exceed Fifty Thousand Dollars ($50,000), as adjusted by the GDP Deflator; or (iii) the total square footage covered by such lease,
sublease, license or concession will exceed one thousand (1,000) square feet; provided that the foregoing limitation shall not apply if such lease, sublease, concession or service contract arises from or is related to a master contract, national
agreement or other lease or agreement entered into by Manager or any of its Affiliates concerning more than one hotel; or 
  
 C. Adjust any claim or settle any Litigation which (a) is not covered by any of the insurance policies described in Article VI and is not an Employee
Claim, and which would result in a Deduction or payment in excess of One Hundred Fifty Thousand Dollars ($150,000), as adjusted by the GDP Deflator, in any Fiscal Year. 
  
 1.17 Time-Share 
  
 Owner and Manager agree that Manager shall have no obligation to allow Owner or any third party to utilize any portion of the Site or the Hotel for any
marketing and/or sales activities relating to the sale of interests in a time-share facility or facilities developed and/or marketed and sold by Owner or any such third party. Owner and Manager further agree that Manager may permit an Affiliate of
Manager to utilize a portion of the Site or Hotel to install a desk or kiosk to market and/or sell interests in a time-share facility or facilities developed and/or marketed and sold by such Affiliate, provided the economic terms of such arrangement
satisfy the Competitive Terms Standard, and the location of the desk or kiosk at the Hotel shall be subject to Owner’s approval. If Manager wants to permit an Affiliate of Manager to utilize a portion of the Site or Hotel that includes more
than the installation of a desk or kiosk in the Hotel to market and/or sell interests in a time-share facility or facilities developed and/or marketed and sold by such Affiliate, the economic terms of such arrangement and the location of the
facility at the Hotel shall be subject to Owner’s approval. For purposes of this Section 1.17, the term “time-share facility” shall be broadly construed to include any facility recognized by law or otherwise as a time-share facility
or one wherein purchasers acquire an ownership interest and/or use rights in a facility on a periodic basis and pay for such ownership and/or use in advance. 
  

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 ARTICLE II 
  

TERM 
  
 2.01 Term 
  
 The “Term” of this Agreement shall begin on the Effective Date and shall continue until the expiration of the
                     (    th) full Fiscal Year after the expiration of the Fiscal Year in which the Effective Date occurs.

  
 2.02 Performance Termination 
  
 A. Subject to the provisions of Section 2.02.B below, Owner shall have the
option to terminate this Agreement if, with respect to any two (2) consecutive Fiscal Years (not including any portion of any Fiscal Year prior to the Performance Termination Commencement Year): 
  
 1. Operating Profit for each such Fiscal Year is less than
the Performance Termination Threshold for such Fiscal Year; provided that, for purposes of this Section 2.02.A.1 only, Operating Profit shall be computed without deducting any Impositions; and 
  
 2. The Revenue Index of the Hotel during each such Fiscal
Year is less than the Revenue Index Threshold for such Fiscal Year; and 
  
 3. The fact that the Hotel has not met the tests set forth in Section 2.02.A.1 and Section 2.02.A.2 is not wholly or partially the result of (x) an Extraordinary Event, (y) any major renovation of the Hotel, or (z)
any default by Owner. In the event that either clause (x), clause (y) or clause (z) has materially affected the ability of the Hotel to meet the tests set forth in Section 2.02.A.1 or Section 2.02.A.2 in any given Fiscal Year, then such Fiscal Year
shall not be counted for purposes of the foregoing test, and shall be treated as not having occurred for purposes of determining whether the test is satisfied for two consecutive Fiscal Years; provided, however, in order for an Extraordinary Event
to be deemed wholly or partially the reason that the Hotel has not met or will not meet the test set forth in Section 2.02.A.2 in any given year, the Extraordinary Event has to affect the Hotel in a manner that is disproportionate to the effect such
Extraordinary Event has on the other hotels in the Competitive Set for the year in question. In the event that clause (y) is wholly or partially the reason that the Hotel has not met or will not meet the tests set forth in Section 2.02.A, Manager
shall notify Owner of this fact no later than the expiration of the Fiscal Year in which the renovation described in clause (y) is completed; provided, however, Manager’s failure to notify Owner shall not negate any of the provisions of this
Section 2.02. 
  
 Owner shall exercise such option to terminate by
serving written notice (“Termination Notice”) thereof on Manager no later than sixty (60) days after Owner’s receipt of the annual accounting under Section 4.02 for the second (2nd) of the two (2) Fiscal Years referred to in this
Section 2.02.A. If Manager does not elect to avoid such Termination pursuant to Section 2.02.B below, this Agreement shall terminate as of the end of the fourth (4th) full Accounting Period 

  

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following the date on which Manager receives the Termination Notice; provided that such period of time shall be extended as required by applicable Legal
Requirements pertaining to the termination of the employment of the employees at the Hotel. Owner’s failure to exercise its right to terminate this Agreement pursuant to this Section 2.02.A with respect to any given Fiscal Year shall not be
deemed an estoppel or waiver of Owner’s right to terminate this Agreement with respect to subsequent Fiscal Years to which this Section 2.02.A may apply. Prior to serving on Manager the Termination Notice, Owner shall, as applicable, (x)
satisfy in full all repayment and other obligations to Manager and its Affiliates under any Marriott Funding Obligations, and (y) release or cause the release of all obligations of Manager and its Affiliates under such Marriott Funding Obligations;
provided that if Owner fails to complete all such actions prior to the date on which Owner is required to send such Termination Notice, (x) the foregoing Owner’s election to terminate this Agreement under this Section 2.02.A shall be canceled
and of no force or effect and this Agreement shall not terminate, and (y) the first (1st) of the two (2) Fiscal
Years to which such Termination Notice would have applied shall no longer be treated as a Fiscal Year for the purposes of Section 2.02.A.1. 
  
 B. Upon receipt of Owner’s Termination Notice pursuant to Section 2.02.A, Manager shall have the option, to be exercised by written notice to Owner
(the “Cure Notice”) within sixty (60) days after receipt of such Termination Notice, to avoid such Termination by making a Cure Payment. The term “Cure Payment” shall mean the payment to Owner of the amount by which Operating
Profit for each of the two (2) Fiscal Years referenced in Section 2.02.A was less than the applicable Performance Termination Threshold for each such Fiscal Year (such amount, the “Cure Amount”), which payment shall be made within ten (10)
business days after the date on which Owner receives the Cure Notice. Alternatively, if the Hotel is leased to Owner as part of an ownership structure that is subject to the REIT tax requirements, the Owner can require, upon written notice to
Manager within five (5) business days of Owner’s receipt of the Cure Notice, that any Cure Payment that Manager elects to make hereunder shall be paid by Manager by the waiver of its receipt of the Base Management Fees. The waiver of
Manager’s receipt of the Base Management Fees shall commence with the first (1st) full Accounting Period
following the date on which Manager receives notice from Owner that Owner has elected the waiver of Base Management Fees to pay the Cure Amount and ending on the date on which the total, aggregate amount of such waived Base Management Fees equals
the Cure Amount. 
  
 If Manager makes a Cure Payment pursuant to
this Section 2.02.B, the Fiscal Years with respect to which such Cure Payment was made shall thereafter not be treated, for purposes of subsequent elections by Owner pursuant to Section 2.02.A, as Fiscal Years in which the circumstances described in
Section 2.02.A.1 have occurred. If Manager makes such Cure Payment, then the foregoing Owner’s election to terminate this Agreement under Section 2.02.A shall be canceled and of no force or effect with respect to the two (2) Fiscal Years in
question, and this Agreement shall not terminate. Such cancellation, however, shall not affect the right of Owner, as to each subsequent Fiscal Year to which Section 2.02.A applies, to again elect to terminate this Agreement pursuant to the
provisions of Section 2.02.A (which subsequent election shall again be subject to Manager’s rights under this Section 2.02.B). If Manager does not exercise its option to make a Cure Payment as aforesaid, then this Agreement shall be 

  

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terminated as of the date set forth in Section 2.02.A. Manager shall have the right to make a Cure Payment pursuant to the provisions of this Section 2.02.B
(i) on only three (3) occasions through the end of the                      (    th) full Fiscal Year after the Effective date, (ii) on only one (1) occasion during the period from the commencement of the
                     (    st) full Fiscal Year after the Effective date through the end of the                     
(    th) full Fiscal Year after the Effective date and (iii) on only one (1) occasion
during the period from the commencement of the                      (    st) full Fiscal Year after the Effective date through the end of the
                     (    th) full Fiscal Year after the Effective date. 
  
 2.03 Limitation on Termination by Owner 
  
 A. Notwithstanding anything in this Agreement to the contrary, without the express written consent of Manager (which consent may be withheld in Manager’s sole and absolute discretion), Owner covenants and agrees
that it may not terminate this Agreement for any reason whatsoever (including, without limitation, any Event of Default caused by Manager) at any time that (i) Manager or any of its Affiliates are providing (or are obligated to provide) any credit
enhancement, guarantee, loan or other funding (collectively, the “Marriott Funding Obligations”) to Owner, an Affiliate of Owner or a lender of Owner with respect to the Hotel; or (ii) any amounts funded by Manager or its Affiliate
pursuant to any Marriott Funding Obligation remain outstanding and payable to Manager or its Affiliate. Owner agrees that during any period of time described in clauses (i) or (ii) above, Owner’s sole remedy for an Event of Default caused by
Manager shall be to sue Manager for monetary damages incurred by Owner as a result of such Event of Default. However, nothing herein shall preclude Owner from satisfying in full all repayment and other obligations to Manager and its Affiliates under
such Marriott Funding Obligations (in accordance with the terms thereof), or releasing or causing the release of any obligations of Manager and its Affiliates under such Marriott Funding Obligations, to the extent that Manager or its Affiliates have
any liability thereunder, in order to exercise its termination rights in accordance with this Agreement. As used herein, “Marriott Funding Obligations” shall be limited only to those obligations in which Manager or its Affiliates have
contractual liability thereon or in which Manager or its Affiliates have directly provided funding that has not been repaid. 
  
 B. Termination of this Agreement shall also be subject to the provisions of Section 11.28.B, if applicable. 
  
 ARTICLE III 
  
 COMPENSATION OF MANAGER 
  
 3.01 Management Fees 
  
 Manager shall be paid the sum of the following as its management fees:

  
 A. the Base Management Fee, which shall be retained by Manager
from Gross Revenues; plus 
  

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 B. the Incentive Management Fee, which shall be retained by Manager from Operating Profit in accordance
with Section 3.02 and Section 4.01. 
  
 3.02 Distribution of
Operating Profit 
  
 With respect to each Fiscal Year during
the Term, Operating Profit for such Fiscal Year (to the extent available) shall be distributed to Owner and to Manager in the following order of priority: 
  
 A. first, an amount equal to Owner’s Priority shall be paid to Owner; 
  
 B. second, any Incentive Management Fee shall be paid to Manager; and 
  
 C. third, any remaining balance of Operating Profit shall be paid to Owner.

  
 Such distributions shall be made on an interim basis in
accordance with Section 4.01.B below. 
  
 ARTICLE IV

  
 ACCOUNTING AND REPORTING MATTERS 

 
 4.01 Accounting and Interim Distributions 
  
 A. Within twenty (20) days after the close of each Accounting Period, Manager
shall deliver an interim accounting (the “Accounting Period Statement”) to Owner showing Gross Revenues, Deductions, Operating Profit, and applications and distributions thereof for the preceding Accounting Period. At the time that Manager
delivers each Accounting Period Statement, Manager shall transfer to Owner any interim amounts due Owner, subject to Working Capital needs, and shall retain any interim Management Fees due Manager. 
  
 B. Calculations and payments of the Incentive Management Fee, the Base
Management Fee, and Owner’s Priority shall be accounted for cumulatively within a Fiscal Year, but shall not be cumulative from one Fiscal Year to the next. Interim distributions of Incentive Management Fees shall be calculated, earned and
distributed based on prorating the full Fiscal Year Owner’s Priority equally over thirteen (13) Accounting Periods. Calculations of such distributions shall be made on a cumulative basis using cumulative year-to-date Operating Profit and
cumulative year-to-date prorated Owner’s Priority, and applying the percentage calculations set forth in the definition of Incentive Management Fee. Such amounts shall be adjusted each Accounting Period, and may, in the event of a significant
negative change in performance, require Manager to return previously distributed Incentive Management Fees for such Fiscal Year. 
  

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 C. Within seventy-five (75) days after the close of each Fiscal Year, Manager shall furnish Owner a
statement (the “Annual Operating Statement”) in reasonable detail summarizing the Hotel’s operations for such Fiscal Year and a certificate executed by a vice president of Manager certifying that such Annual Operating Statement is
true and correct. Within ten (10) days after Owner’s receipt of such Annual Operating Statement, the parties shall make any adjustments, by cash payment, in the amounts paid or retained for such Fiscal Year as are required based on the final
figures set forth in such Annual Operating Statement. Such Annual Operating Statement shall be controlling over the Accounting Period Statements for the applicable Fiscal Year. No adjustments shall be made for any Operating Loss or Operating Profit
in any preceding Fiscal Year. 
  
 D. To the extent that Manager
projects an Operating Loss for any Accounting Period, additional funds in the amount of any such Operating Loss shall be provided by Owner within thirty (30) days after Manager has delivered written notice thereof to Owner. If Owner does not so fund
such Operating Loss within the thirty (30) day time period, Manager shall have the right (without affecting Manager’s other remedies under this Agreement) to withdraw an amount to cover such Operating Loss from distributions of funds otherwise
due to Owner. 
  
 4.02 Books and Records; Annual Operating
Statement 
  
 A. Books of control and account pertaining to
the operations of the Hotel shall be kept on the accrual basis and in material respects in accordance with the Uniform System of Accounts and with generally accepted accounting principles applied on a consistent basis (provided that, to the extent
of a conflict between the two, the generally accepted accounting principles shall control over the Uniform System of Accounts) with the exceptions provided in this Agreement. Owner may at reasonable intervals during Manager’s normal business
hours examine the Books and Records. Owner shall have ninety (90) days after delivery of the Annual Operating Statement to examine or review (at Owner’s sole expense, and not as a Deduction) such Annual Operating Statement. If Owner does not
request an audit of the Books and Records within such ninety (90) day period, such Annual Operating Statement shall be deemed to have been accepted by Owner as true and correct, and Owner shall have no further right to question its accuracy except
in the event of fraud by Manager. Owner may, during such ninety (90) day period, but not thereafter (except in the event of fraud by Manager), request an independent audit of the Books and Records (“Audit”) which shall be arranged for by
Owner and commenced and completed not later than one (1) calendar year after the date of delivery of such Annual Operating Statement. No extension of such one (1) calendar-year period shall be permitted without the approval of Manager, except in the
event of fraud by Manager. Owner shall pay all costs and expenses of the Audit at its sole expense (and not as a Deduction); provided, however, that if such audit establishes that Manager has underpaid Owner for the applicable Fiscal Year by five
percent (5%) or more, the reasonable costs and expenses of the Audit shall be paid solely by Manager. If any such audit discloses an underpayment of any amounts due to Owner pursuant to the provisions hereof, Manager shall promptly pay Owner such
amounts found to be due. If any audit discloses that Manager has not received any amounts due to Manager pursuant to the provisions hereof, Owner shall promptly pay Manager such amounts found to be due. Manager shall reasonably cooperate with Owner
and its representatives in connection with any Audit. 

  

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Any dispute concerning the correctness of an Audit shall be settled by a panel of Experts in accordance with Section 11.20. All information regarding the
operation of the Hotel which is obtained by Owner through an Audit shall be considered confidential information and Owner agrees not to disclose such information except as necessary to its advisors, attorneys and consultants participating in the
Audit process, who shall likewise be informed of the confidential nature of the information and of the duty not to disclose such information to third parties, except as required by law or pursuant to the rules and regulations of any applicable
securities exchange; provided, however, that Owner shall be permitted to disclose such information to a third party in connection with a prospective Sale of the Hotel or financing related to the Hotel if such third party has executed a
confidentiality agreement reasonably satisfactory to Manager regarding such information. 
  
 B. Manager shall have the right, at its option, to provide Owner with automated delivery, in electronic format, of the data required under Section 4.02.A and Section 4.08.A (consistent with the then-current standard
operating procedures generally employed by Manager with respect to other hotels in the Marriott Hotel System). The parties shall cooperate reasonably with each other in order to adapt to new technologies that may be available with respect to the
transmission of such data. 
  
 C. Manager shall cooperate
reasonably with Owner (including providing reasonable information, if applicable) in order to assist Owner to understand the reports, statements and other information that Manager submits to Owner pursuant to the provisions hereof; provided,
however, that the foregoing provisions of this Section 4.02.C shall not be construed to provide Owner with any audit or similar rights with respect to such reports, statements and information that are not otherwise expressly described in this
Agreement. 
  
 4.03 Hotel Accounts and Expenditures

  
 A. Except as may be required in connection with MBS Systems,
all funds derived from operation of the Hotel shall be deposited by Manager in accounts in Manager’s name, established by Manager in a bank or banks designated by Manager and approved by Owner. Owner hereby approves the Operating Accounts of
the Hotel (if any) existing as of the Effective Date. The bank accounts into which such funds are deposited (other than MBS Systems accounts) are referred to herein as “Operating Accounts.” 
  
 B. Withdrawals from the Operating Accounts shall be made only by
representatives of Manager whose signatures have been authorized. Reasonable petty cash funds shall be maintained at the Hotel. 
  
 C. Except as otherwise specifically provided hereunder and as may be required in connection with the MBS Systems, all payments made by Manager hereunder
shall be made from the Operating Accounts, petty cash funds, or from the FF&E Reserve (in accordance with Section 5.02). Manager shall not be required to make any advance or payment with respect to the Hotel except out of such funds, and Manager
shall not be obligated to incur any liability or obligation with respect to the Hotel. In any event, if any such liability or obligation is incurred 

  

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by Manager with respect to the Hotel, Manager shall have the option to deduct such amounts from Owner’s share of Operating Profit if Owner has not fully
reimbursed Manager for said amounts within ten (10) days after Owner’s receipt of notice from Manager that said amounts are due. As part of Manager’s cash management procedures, certain accruals and advance payments shall be made to
Manager for paid time off, pension and other corporate charges in advance of actual payment of such expenses, without interest or imputed interest accruing on such funds for the benefit of Hotel. Any and all accruals shall be reasonable, based on
historical experience (where appropriate), and shall be applied to the Hotel in a manner consistent with the rest of the Marriott Hotel System. 
  
 D. Debts and liabilities incurred by Manager as a result of its operation and management of the Hotel pursuant to the terms hereof, whether asserted
before or after Termination, will be paid by Owner to the extent funds are not available for that purpose from Gross Revenues. The provisions of this Section 4.03.D shall survive Termination. 
  
 4.04 MBS Systems 
  
 Manager shall manage certain aspects of the Hotel’s finances through the
MBS Systems. The scope, features and functions of the MBS Systems are subject to modification from time to time as Manager shall, in its reasonable discretion, determine to be most efficient and economical for the Marriott Hotel System. Costs and
expenses (collectively, the “MBS Charges”) incurred by Manager or its Affiliates in providing the MBS Systems, which shall include both MBS Systems development costs and current operating costs and expenses, shall be allocated on a fair
and consistent basis among all participating hotels in the Marriott Hotel System. If the MBS Systems used by hotels in the Marriott Hotel System are also provided to other hotel brands owned by Marriott or its Affiliates, the costs and expenses
incurred by Manager or its Affiliates in providing such MBS Systems shall be allocated to such other brands on a fair and consistent basis, taking into account the level of MBS Systems being provided to each of such other brands. MBS Charges
allocated to the Hotel shall not be included in Chain Services or Central Office Services, but instead shall be Direct Deductions. 
  
 4.05 Direct Deductions and Direct Deductions Report 
  
 A. Owner hereby approves the current categories of Direct Deductions, which are set forth in Exhibit D attached hereto, and their treatment as Deductions.
Within ninety (90) days after the end of each Fiscal Year, Manager shall furnish to Owner, for Owner’s review, an updated list (the “Direct Deductions Report”) of all then-current categories of Direct Deductions. 
  
 B. Manager may, in its reasonable discretion, modify, add or subtract
categories of services that are or will be provided as Direct Deductions. In the event Manager provides a new system or program to the Hotel that is not listed in either Exhibit C or Exhibit D, Manager shall make the determination of whether such
new system or program should be classified as a Direct Deduction rather than a Chain Service based upon whether such new system or program (i) supports only a subgroup of hotels in the Marriott Hotel System, or selected or individual hotels, or (ii)
is a system or program for which the cost is more appropriately recovered based on 

  

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property usage. If either clause (i) or (ii) in the immediately preceding sentence applies, the new system or program shall be classified as a Direct
Deduction as opposed to a Chain Service. Manager’s classification of any new system or program (or reclassification of an existing system or program) as either a Direct Deduction or a Chain Service shall be implemented on a consistent basis
throughout the Marriott Hotel System. 
  
 4.06 Annual Profit
Transactions Report 
  
 Within ninety (90) days after the end
of each Fiscal Year, Manager shall deliver to Owner a report (the “Annual Profit Transactions Report”) containing a list of all Profit Transactions relating to the Hotel to which Manager or any Related Party was a party, or which Manager
or any Related Party implemented, during such Fiscal Year, together with a certification by a vice president of Manager that such list is true and accurate and that, in Manager’s reasonable judgment, the Profit Transactions listed therein
satisfy the Competitive Terms Standard. 
  
 4.07 Chain Services
Report 
  
 Within ninety (90) days after the end of each
Fiscal Year, Manager shall deliver to Owner for its review a report (the “Chain Services Report”): (i) identifying the general categories (e.g., National Sales Office Services) and subcategories (e.g., International sales offices) of Chain
Services provided for or to the Hotel during such Fiscal Year; (ii) setting forth the total cost paid by the Hotel for each general category of Chain Services, and the methodologies for allocating such costs to the Hotel, with respect to such Fiscal
Year; and (iii) containing a certification by a vice president of Manager that each of the allocations of Chain Services costs to the Hotel for such Fiscal Year was made in accordance with this Agreement. 
  
 4.08 Business Plan 
  
 A. Beginning ninety (90) days prior to the first day of each Fiscal Year,
Hotel management shall work cooperatively with Owner to provide Owner with all available Hotel operation information reasonably requested by Owner for the current Fiscal Year and next Fiscal Year. No later than thirty (30) days prior to the
beginning of each Fiscal Year, Manager shall provide to Owner a preliminary business plan showing the estimated Gross Revenues, departmental profits, Deductions, and Operating Profit for the forthcoming Fiscal Year, in comparison to the forecasted
Gross Revenues, departmental profits, Deductions, and Operating Profit for the current Fiscal Year. Such comparison will include the estimated percentage changes in such items for the forthcoming Fiscal Year compared to the current Fiscal Year.
Manager shall prepare the Business Plan (hereinafter defined) in accordance with the System Standards and the general standards of the hotel industry for similar first-class properties. Manager shall meet with Owner and shall in good faith discuss
and consider all of Owner’s comments concerning the preliminary budget, including, but not limited to, Manager’s forecast of Gross Revenues for the forthcoming Fiscal Year. In addition, Owner shall have the right to approve Manager’s
estimates of each major Deduction category for the forthcoming Fiscal Year; provided, however, Owner shall not have the right to approve, and shall not be entitled to withhold its approval of the preliminary business plan based on, the following:
(i) individual line 

  

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items comprising Manager’s projections of Gross Revenues (including, without limitation, projected Guest Room rates and occupancy) and Deductions; (ii)
projected costs and expenses that are “system charges” (that is, costs and expenses that are generally uniform throughout the Marriott System, such as the costs of Marriott Rewards Program, other chain-wide marketing programs, employee
wages, employee benefits and other compensation programs) or (iii) costs and expenses that are not within the control of Owner and/or Manager, such as Impositions and the costs of utilities. 
  
 B. If, after its meeting with Manager, Owner disapproves the preliminary
business plan for the forthcoming Fiscal Year, Owner shall provide Manager with the specific reasons for its disapproval within forty-five (45) days after Owner’s receipt of the preliminary business plan. Thereafter, in the ten (10) day period
following receipt of Owner’s disapproval, the parties will attempt to resolve in good faith any objections by Owner. In the event that there is a disagreement that cannot be resolved by the parties within the above-specified time periods, all
matters shall be determined by a panel of Experts in accordance with the provisions of Section 11.20 of this Agreement. Pending such Experts’ determination, Manager shall operate the Hotel with respect to those categories that are not in
dispute based on the preliminary business plan provided to Owner, and shall operate the Hotel with respect to those categories that are disputed in accordance with the previous Fiscal Year’s approved Business Plan, adjusted in accordance with
changes in the GDP Deflator over the Fiscal Year just ended and anticipated changes in Gross Revenues to the extent that increases in Gross Revenues would reasonably be expected to impact such category. If Owner fails to provide any objection within
such forty-five (45) day period, the business plan as submitted by Manager shall be deemed approved. As of approximately forty-five (45) days after the beginning of each Fiscal Year, Manager shall deliver to Owner the final business plan, in which
the above-mentioned percentage changes are applied to the actual final numbers in the Annual Operating Statement for the preceding Fiscal Year. Such business plan, as delivered to Owner, is herein referred to as the “Business Plan.”

  
 C. Manager shall diligently operate the Hotel in accordance
with the Business Plan. It is understood, however, that the Business Plan is an estimate only and that unforeseen circumstances such as the costs of labor, material, services and supplies, casualty, operation of law or economic and market
conditions, as well as the requirement that the Hotel be operated in accordance with the System Standards, may make adherence to the Business Plan impracticable, and Manager shall be entitled to depart therefrom due to causes of the foregoing
nature. Manager shall notify Owner on a monthly basis of any substantial departures from the Business Plan. In the event that the foregoing circumstances (i) would require a change in any major Deduction category (e.g., a major line item such
as “General and Administrative”) that would vary by more than ten percent (10%) from the amount for such Deduction set forth in the Business Plan; or (ii) would require a change in the total annual amount of Deductions that, in the
aggregate, would vary by more than five percent (5%) from the total annual amount of Deductions set forth in the Business Plan, Manager shall so notify Owner and shall provide Owner with the reasons for such change; provided further that, unless
required due to (i) an emergency affecting the Hotel, its guests, its invitees or its employees, (ii) an Extraordinary Event where it would be unreasonable for Manager to delay taking immediate action, or (iii) any other cause beyond Manager’s
control (including, without limitation, a change that is caused or 

  

 - 19 - 

 
necessitated by increases in Gross Revenues), such change in the total amount of Deductions shall be subject to Owner’s approval (although it is
understood that Owner shall have no greater approval rights for any such change than those set forth for the Business Plan in Section 4.08.A, and any disputes arising therefrom shall be settled pursuant to Section 4.08.B). 
  
 D. At the time that Manager submits the preliminary business plan to Owner
pursuant to Section 4.08.A, Manager shall also submit to Owner, for Owner’s review and comment, Manager’s marketing plan for the forthcoming Fiscal Year. Manager shall discuss with Owner, and shall in good faith consider, Owner’s
comments and suggestions concerning the marketing plan. 
  
 4.09
Working Capital 
  
 Owner shall, from time to time during
the Term, promptly, but no later than thirty (30) days after written request by Manager (ten (10) days if the request is due to an emergency), advance any additional funds (over and above those required pursuant to the Addendum) necessary to
maintain Working Capital at levels determined by Manager to be reasonably necessary to satisfy the needs of the Hotel as its operation may from time to time require in accordance with System Standards. If Owner does not fund such additional Working
Capital amounts within such thirty (30) day period (ten (10) day period if it is an emergency), Manager shall have the right, at its option and without affecting Manager’s other remedies under this Agreement, to either (or both) (i) withdraw an
amount equal to the additional Working Capital funds requested by Manager from distributions of funds otherwise due to Owner and/or (ii) lend to Owner such amount from Manager’s own funds (which loan shall (x) bear interest at an annual rate
equal to the Prime Rate plus three (3) percentage points and (y) be repaid from distributions of funds otherwise due to Owner or, if not fully repaid prior to Termination, pursuant to the provisions of Section 11.11.I). Manager will manage the
Working Capital of the Hotel prudently and funds advanced for Working Capital pursuant to this Section 4.09 shall be utilized by Manager for the purposes described in this Agreement pursuant to cash management policies established for the Marriott
Hotel System. Manager shall, each year in connection with the delivery of the Business Plan, evaluate the level of Working Capital needed at the Hotel and inform Owner in writing of whether the current level of Working Capital is adequate for the
Hotel. If Manager determines that such Working Capital is excessive, Manager shall promptly return such excess. Upon Termination, Manager shall, except as otherwise provided in this Agreement, return the outstanding balance of the Working Capital to
Owner. 
  
 4.10 Fixed Asset Supplies 
  
 Owner shall, within thirty (30) days after request by Manager, provide funds
that are necessary to increase the level of Fixed Asset Supplies to levels determined by Manager, in its good faith judgment, to be necessary to satisfy the needs of the Hotel as its operation may, from time to time, require in accordance with
System Standards. The cost of Fixed Asset Supplies consumed in the operation of the Hotel shall constitute a Deduction. Fixed Asset Supplies shall remain the property of Owner during the Term and upon Termination (except for those Fixed Asset
Supplies which are purchased by Manager pursuant to Section 11.11.E). 
  

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 4.11 Real Estate and Personal Property Taxes 
  
 A. Except as specifically set forth in Section 4.11.B below, all real estate
and personal property taxes, levies, assessments and similar charges on or relating to the Hotel (“Impositions”) during the Term shall be paid by Manager from Gross Revenues, unless (i) payment thereof is in good faith being contested and
enforcement thereof is stayed or (ii) available Gross Revenues are insufficient for the payment thereof. Any such payments shall be Deductions in determining Operating Profit. Owner shall, within ten (10) calendar days after receipt, furnish Manager
with copies of official tax bills and assessments which it may receive with respect to the Hotel. Either Owner or Manager (in which case Owner agrees to sign the required applications and otherwise cooperate with Manager in expediting the matter)
may initiate proceedings to contest any negotiations or proceedings with respect to any Imposition, and all reasonable costs of any such contest shall be paid from Gross Revenues and shall be a Deduction in determining Operating Profit. Manager
shall, as part of its contest or negotiation of any Imposition, be entitled, on Owner’s behalf, to waive any applicable statute of limitations in order to avoid paying the Imposition during the pendency of any proceedings or negotiations with
applicable authorities. 
  
 B. The word “Impositions” as
used in this Agreement shall not include the following, all of which shall be paid solely by Owner, not from Gross Revenues nor from the FF&E Reserve: 
  
 1. Any franchise, corporate, estate, inheritance, succession, capital levy or transfer tax imposed on Owner, or any income tax imposed on
any income of Owner (including distributions to Owner pursuant to Article III hereof); 
  
 2. Special assessments (regardless of when due or whether they are paid as a lump sum or in installments over time) other than taxes,
levies or assessments which may be enacted by the applicable governmental authority in lieu of, or in complete or partial substitution for, real estate taxes; or 
  
 3. “Impact fees” (regardless of when due or whether they are paid as a lump sum or in installments
over time) which are required of Owner as a condition to the issuance of site plan approval, zoning variances or building permits. 
  
 ARTICLE V 
  
 REPAIRS, MAINTENANCE AND REPLACEMENTS 
  
 5.01 Repairs and Maintenance Costs Which Are Expensed 
  
 Manager shall maintain the Hotel in good repair and condition, and shall make or cause to be made such routine maintenance, repairs and minor alterations
as it determines are necessary 

  

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for such purposes. The phrase “routine maintenance, repairs, and minor alterations” as used in this Section 5.01 shall include only those which are
normally expensed under generally accepted accounting principles. The cost of such maintenance, repairs and alterations shall be paid from Gross Revenues (and not from the FF&E Reserve) and shall be treated as a Deduction. 
  
 5.02 FF&E Reserve 
  
 A. Manager shall establish a reserve account (the “FF&E
Reserve”), in a bank or similar institution reasonably acceptable to both Manager and Owner, to cover the cost of: 
  
 1. Replacements, renewals and additions to the FF&E at the Hotel; and 
  
 2. Routine Capital Expenditures. 
  
 B. For each Accounting Period from the Effective Date to the expiration of the thirteenth (13th) full Accounting Period after the Effective Date, Manager shall transfer into the FF&E Reserve an amount equal to
             percent (    %) of Gross Revenues for such period; for each Accounting Period from the beginning of the fourteenth (14th) full Accounting Period after the Effective Date to the expiration of the twenty-sixth (26th) full Accounting Period after the Effective date, Manager shall transfer into the FF&E Reserve an amount equal to
             percent (    %) of Gross Revenues for such period; for each Accounting Period from the beginning of the twenty-seventh (27th) full Accounting Period after the Effective date to the expiration of the thirty-ninth (39th) full Accounting Period after the Effective date, Manager shall transfer into the FF&E Reserve an amount equal to
             percent (    %) of Gross Revenues for each such Accounting Period; and, commencing with the beginning of the fortieth (40th) full Accounting Period after the Effective date and for all Accounting Periods thereafter, subject to the provisions of
Section 5.02.E, below, Manager shall transfer into the FF&E Reserve an amount equal to              percent (    %) of Gross Revenues for each such
Accounting Period. Transfers into the FF&E Reserve shall be made at the time of each interim accounting described in Section 4.01 hereof. All amounts transferred into the FF&E Reserve pursuant to this Section 5.02.B shall be paid from Gross
Revenues as Deductions. 
  
 C. 1. Manager shall prepare an annual
estimate (the “FF&E Estimate”) of the expenditures necessary for (i) replacements, renewals and additions to the FF&E of the Hotel and (ii) Routine Capital Expenditures, during the ensuing Fiscal Year, and shall deliver the
FF&E Estimate to Owner for its review and comment (and approval, in the event Section 5.02.C.2 below is applicable), at the same time as Manager submits the preliminary business plan described in Section 4.08.A. The FF&E Estimate shall also
indicate the estimated time schedule for making such replacements, renewals, and additions, a reasonable description of items required to be replaced, the number of units to be replaced, unit costs and costs in the aggregate, together with such
additional information as Owner shall reasonably request, to the extent then known by Manager. Manager shall consider in good faith Owner’s comments regarding the FF&E Estimate. 
  

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 2. (a) The Owner agrees that it shall take all reasonable steps to enable Manager to
maintain System Standards at the Hotel and it agrees that the funds within the FF&E Reserve shall be spent over a reasonable period of time on maintaining the System Standards. The Owner recognizes that FF&E replacements and routine capital
expenditures occur at regular cycles for soft goods, case goods and routine capital expenditures, which cycles are incorporated in Systems Standards. Owner shall have no approval rights over (x) any expenditure for FF&E in an amount less than
One Hundred Thousand Dollars ($100,000) as adjusted by the GDP Deflator or (y) whether any Required Expenditure (as defined below) shall be made. Consistent with the foregoing, Owner shall have the right to approve a given project that is not a
Required Expenditure if the expenditures from the FF&E Reserve for such project exceed One Hundred Thousand Dollars ($100,000) as adjusted by the GDP Deflator. 
  
 (b) At Owner’s request, Manager shall review with Owner, and Manager shall in good faith give due
consideration to any suggestions from Owner, prior to making any Required Expenditure, taking into account the timing of the Required Expenditure and the then-existing condition of the FF&E to be replaced. 
  
 (c) A “Required Expenditure” shall be any project
which predominantly consists of a scheduled, periodic renovation plan for the Hotel’s soft goods or case goods, involves ordinary repair or replacement of equipment or furnishing typically funded out of the FF&E Reserve or is required
pursuant to System Standards. 
  
 3. Owner shall
have forty-five (45) days after receipt of the applicable FF&E Estimate to review and approve any expenditure contained therein for a project over which Owner has approval rights pursuant to the foregoing provisions. If Owner does not give
written notice of its disapproval of any such expenditure (along with the reasons for such disapproval) within such forty-five (45) day period, Owner shall be deemed to have approved such expenditure. If Owner provides written notice of its
disapproval as set forth in the immediately preceding sentence, then in the ten (10) day period following Manager’s receipt of Owner’s disapproval, the parties shall attempt to resolve in good faith the objections so specified by Owner. If
one or more of such objections have not been resolved as of the end of such ten (10) day period, any such matter may be referred by either party to the Expert panel for resolution in accordance with the provisions of Section 11.20. In resolving such
dispute, the Expert panel shall determine whether such project should be funded from the FF&E Reserve, giving due consideration to (x) the expected return on the investment related to such project and (y) whether such project is required in
order to maintain the competitive position of the Hotel, as compared to other hotels that are similar in size, type and functionality to the Hotel. In addition, if during such ten (10) day period, the parties are not able to agree as to whether
Owner has the right to approve a specific project pursuant to the above provisions, either party may refer such dispute to the Expert panel for resolution in accordance with the provisions of Section 11.20 (and the Expert panel shall make such
determination based on the parameters set forth above). Pending a decision by the Expert panel, Manager may proceed with the implementation of any such expenditure that is not subject to dispute. 
  

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 D. Manager shall (endeavoring in good faith to comply with the applicable FF&E Estimate) from time to
time make such (i) replacements, renewals and additions to the FF&E of the Hotel and (ii) Routine Capital Expenditures, as Manager deems necessary, up to the balance in the FF&E Reserve. No expenditures will be made in excess of said balance
without the approval of Owner and Manager shall not make any expenditure over which Owner has approval pursuant to the provisions of Section 5.02.C prior to obtaining Owner’s approval therefor (or, if applicable, obtaining the determination of
the Expert that such expenditure is permitted). In addition, Manager shall not, without Owner’s approval, make any expenditures from the FF&E Reserve that, in the aggregate, exceed the total aggregate amount of expenditures set forth in the
then-applicable FF&E Estimate; provided, however, that Manager shall be authorized to take appropriate remedial action (including making any necessary expenditures from the FF&E Reserve above the total aggregate amount set forth in the
then-applicable FF&E Estimate), without receiving Owner’s prior approval, to remedy or respond to any of the Emergency Requirements (provided further that Manager shall notify Owner of any such remedial action that requires more than a de
minimus expenditure of funds from the FF&E Reserve). At the end of each Fiscal Year, any amounts remaining in the FF&E Reserve shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer necessary to the
operation of the Hotel shall be added to the FF&E Reserve. The FF&E Reserve will be kept in an interest-bearing account, and any interest which accrues thereon shall be retained in the FF&E Reserve. Neither (i) proceeds from the
disposition of FF&E nor (ii) interest which accrues on amounts held in the FF&E Reserve shall (a) result in any reduction in the required transfers to the FF&E Reserve set forth in Section 5.02.B above or (b) be included in Gross
Revenues. 
  
 E. As the Hotel ages, the percentages of Gross
Revenues that are set forth in Section 5.02.B may not be sufficient to keep the FF&E Reserve at the levels necessary to make the alterations, improvements, replacements, renewals, and additions to the FF&E of the Hotel, or to make the
Routine Capital Expenditures, that are required to maintain the Hotel in accordance with the System Standards. If Manager reasonably believes that the funding of the FF&E Reserve (with respect to the following Fiscal Year or any subsequent
Fiscal Year as specified) will not be adequate to maintain the Hotel in accordance with System Standards, Manager shall so notify Owner. Owner shall have forty-five (45) days after receipt of such notification to review and approve Manager’s
assessment and recommendations concerning the funding of the FF&E Reserve and, in the event Owner disapproves any portion of Manager’s recommendations, Owner will provide Manager in writing with the specific reasons for its disapproval
within such forty-five (45) day period. Thereafter, in the ten (10) day period following Manager’s receipt of Owner’s disapproval, the parties will attempt to resolve in good faith the objections so specified by Owner. In the event that
one or more of such objections have not been resolved as of the end of such ten (10) day period, any such matter may be referred by either party to the Expert panel for resolution in accordance with the provisions of Section 11.20. Pending a
decision by the Expert panel, Manager may proceed with the implementation of any portion of its assessment and recommendations that is not subject to dispute. 
  

With respect to increased fundings to which Owner does not object, or increased fundings to which it objected but the Expert panel determined were
necessary, Owner shall elect in writing 

  

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one of the following two (2) alternatives within forty-five (45) days after receipt of Manager’s notice or the Expert’s decision, as appropriate:

  
 1. to increase the annual percentage of
FF&E Reserve fundings under Section 5.02.B to provide the additional funds required for the specified Fiscal Year(s), which additional FF&E Reserve fundings shall be treated as Deductions; or 
  
 2. to make a lump sum contribution to the FF&E Reserve
in an amount necessary to increase the FF&E Reserve to a level sufficient to fund the items which necessitated Manager’s request for additional FF&E Reserve fundings; such amount shall be fully repaid (without interest) to Owner from
Gross Revenues in equal installments over the period of the next sixty-five (65) Accounting Periods, which installment payments shall be treated as Deductions. 
  

If Owner fails to elect one of the above alternatives within such forty-five (45) day period, Owner shall be deemed to have elected the alternative set
forth in Section 5.02.E.1 above. If Owner elects the alternative set forth in Section 5.02.E.2. above and fails to provide the additional funds required thereunder within (i) fifteen (15) days after making such election where such election follows a
determination by the Expert panel pursuant to the foregoing provisions, or (ii) forty-five (45) days after Owner’s receipt of Manager’s request for such additional funding where such election does not follow a determination by the Expert
panel, such failure shall constitute an Event of Default by Owner. In addition, the placing of any restrictions on the expenditure by Manager of funds from the FF&E Reserve other than as set forth in this Section 5.02 (including, without
limitation, restrictions resulting from (a) any Litigation involving the Owner or the Hotel, or (b) a Foreclosure) shall constitute an Event of Default by Owner under Section 9.01. 
  
 5.03 Capital Expenditures 
  
 A. Manager shall prepare an annual estimate (the “Building Estimate”) of all Capital Expenditures. Manager shall submit the Building Estimate to
Owner for its approval at the same time as Manager submits the preliminary business plan described in Section 4.08.A. Manager shall not make any Capital Expenditures without the prior approval of Owner, except as otherwise permitted herein. Owner
shall have forty-five (45) days after receipt of such Building Estimate to review and approve such Building Estimate, it being agreed that Owner shall not withhold its approval with respect to Capital Expenditures as are required, in Manager’s
reasonable judgment, to keep the Hotel in a first-class, competitive, efficient and economical operating condition in accordance with System Standards, or otherwise required for the continued safe and orderly operation of the Hotel. In the event
Owner disapproves any portion of such Building Estimate, Owner shall provide Manager in writing with the specific reasons for its disapproval within such forty-five (45) day period. Thereafter, in the ten (10) day period following Manager’s
receipt of Owner’s disapproval, the parties shall attempt to resolve in good faith any objections so specified by Owner. In the event that one or more of such objections have not been resolved as of the end of such ten (10) day period, any such
matter may be referred by either party for resolution by the Expert panel in accordance with the provisions of 

  

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Section 11.20. Pending a decision by the Expert panel, Manager may proceed with the implementation of any portion of such Building Estimate that is not
subject to dispute. It shall be an Event of Default by Owner if Owner (i) fails to provide funding for any Capital Expenditure that Owner has approved within sixty (60) days after the submission to Owner of the Building Estimate requesting such
Capital Expenditure, or (ii) fails to provide funding for any Capital Expenditure determined necessary by an Expert panel within sixty (60) days after the Expert panel’s determination. 
  
 B. Notwithstanding the provisions of Section 5.03.A, Manager shall be
authorized to take appropriate remedial action (including making any necessary Capital Expenditures) without receiving Owner’s prior approval in the following circumstances: (i) if there is an emergency threatening the Hotel, or the life or
property of its guests, invitees or employees; (ii) if the Capital Expenditures are necessary to satisfy a Legal Requirement; or (iii) if the continuation of the given condition would subject Manager and/or Owner to civil or criminal liability.
Manager shall cooperate with Owner in the pursuit of any such action and shall have the right to participate therein. Owner shall, upon written request by Manager, promptly reimburse all expenditures made by Manager pursuant to this Section 5.03.B.

  
 C. The cost of all Capital Expenditures (including the
expenses incurred by either Owner or Manager in connection with any civil or criminal proceeding described above) shall be borne solely by Owner, and shall not be paid from Gross Revenues or from the FF&E Reserve. The amount of Capital
Expenditures funded by Owner pursuant to this Section 5.03 (excluding all costs related to the correction of errors, omissions or defects in the design, construction or renovation of the Hotel) shall be included in the calculation of Owner’s
Priority, as set forth in the definition of Owner’s Priority. 
  
 5.04 Ownership of Replacements 
  
 All repairs,
alterations, improvements, renewals or replacements made pursuant to this Article V, and all amounts kept in the FF&E Reserve, shall, except as otherwise provided in this Agreement, be the property of Owner. 
  
 5.05 Management of Hotel Renovation and Construction Projects

  
 A. Owner shall have the right to manage any Hotel renovation
or construction project that exceeds a total budgeted cost of One Hundred Thousand Dollars ($100,000), as adjusted by the GDP Deflator; provided, however, that (i) Marriott International Design & Construction Services, Inc. (and its successors
and assigns) shall be allowed to bid on all such projects (which bid may be as a Profit Transaction); (ii) prior to commencement of such project, Owner shall submit to Manager’s Hotel Design Review committee (or such similar committee), for its
approval, all project plans, drawings and specifications and shall ensure that the final plans, drawings and specifications pursuant to which such project is undertaken conform to those approved by such committee; (iii) all materials used in, and
the quality of installation and finish with respect to, such project shall be equal to or better than those required by System Standards; (iv) the contractors, architects and other consultants utilized by Owner with respect to such project shall be
subject to the approval of Manager (based upon reputation and experience) and 

  

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shall be fully insured and bonded to the reasonable satisfaction of Manager; (v) such project shall not be deemed completed until Manager, in its reasonable
judgment, certifies that the project work conforms with all project plans, drawings and specifications approved by Manager; and (vi) Owner shall (x) work cooperatively with Manager to minimize interruption to Hotel operations, and to the experience
of the Hotel’s guests, from such project and (y) obtain Manager’s approval prior to undertaking any activity with respect to such project that could affect guest experience at the Hotel or Manager’s operation and management of the
Hotel. 
  
 B. Manager shall have the right to manage any Hotel
renovation or construction project that has a total budgeted cost of One Hundred Thousand Dollars ($100,000) or less, as adjusted by the GDP Deflator, and shall have the right to contract with Marriott International Design & Construction
Services, Inc. (and its successors and assigns) to perform the work related to any such project; provided, however, the contract with Marriott International Design & Construction Services, Inc. shall satisfy the Competitive Terms Standards. If
Owner asks Manager to manage a Hotel renovation or construction project that has a total budgeted cost of One Hundred Thousand Dollars ($100,000) or more, as adjusted by the GDP Deflator and Manager agrees to manage the Hotel renovation or
construction project, Owner can require Manager to obtain two (2) bids from contractors (other than Marriott International Design & Construction Services, Inc.) to perform the work related to any such project. 
  
 ARTICLE VI 
  
 INSURANCE 
  
 6.01 Property Insurance 
  
 Commencing with the Effective date, Owner shall procure and maintain the
following: 
  
 A. Property insurance (and to the extent applicable
builders risk insurance), including boiler and machinery coverage, on the Hotel building(s) and contents against loss or damage by fire, lightning and all other risks as commonly covered by an “all risk of physical loss,” form or
equivalent policy of insurance, including, but not limited to, fire, windstorm, sprinkler leakage, vandalism and malicious mischief, water damage, explosion of steam boilers, pressure vessels and other similar apparatus, and other hazards generally
included under extended coverage, in an amount not less than the full replacement cost (less excavation and foundation costs) of the Hotel Improvements, contents, signs awnings, canopies, gazebos, fences and retaining walls. Such coverage shall
include an agreed value provision, waiver of co-insurance, landscape improvements coverage of not less than One Million Dollars ($1,000,000) and law and ordinance coverage in an amount equal to twenty-five percent (25%) of the replacement value or
Ten Million Dollars ($10,000,000) whichever is greater; 
  

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 B. Business interruption insurance including extra expense covering at least two (2) years’ loss of
profits, necessary continuing expenses, and if applicable, rent, for interruptions at the Hotel, including an extended period of indemnity of not less than 365 days, caused by any occurrence covered by the insurance referred to in Section 6.01.A,
Section 6.01.C and Section 6.01.D; 
  
 C. Flood insurance, if the
Hotel is located in whole or in part within an area identified as having a special flood hazard under the National Flood Insurance Program; 
  
 D. If the Hotel is located in an “earthquake prone zone” as determined by the U.S. Geological Survey, Owner shall maintain coverage for loss or
damage caused by earthquake. Such coverage, including business interruption, shall be for not less than the probable maximum loss as determined by a recognized earthquake-engineering firm reasonably acceptable to Owner and Manager, less a reasonable
deductible. Owner shall provide written notice to Manager if actual losses meet or exceed such limits. 
  
 E. Such other property insurance as is customarily required by Manager at similar hotels. 
  
 F. All insurance procured by Owner hereunder shall be obtained from reputable insurance companies of recognized
responsibility and financial standing reasonably acceptable to Manager. Any deductibles under said policies shall be subject to the reasonable approval of Manager and, upon such approval, shall be paid as Deductions. 
  
 G. All such policies of insurance shall be carried in the name of Owner, with
Manager as an additional insured. Any property losses thereunder shall be payable to the respective parties as their interests may appear. The documentation with respect to each Mortgage shall contain provisions to the effect that proceeds of the
insurance policies required to be carried under Section 6.01 shall be available for repair and restoration of the Hotel, to the extent required pursuant to Section 7.01. 
  
 H. Owner shall deliver to Manager certificates of insurance or upon request, a certified copy of the policy, so procured
and, in the case of insurance policies about to expire, shall deliver certificates with respect to the renewal thereof. 
  
 I. All such certificates of insurance shall, to the extent obtainable, state that the insurance shall not be canceled, nonrenewed, or materially changed
without at least thirty (30) days’ prior written notice to the certificate holder. 
  
 J. Owner hereby waives its rights of recovery and its insurer rights of subrogation from Manager or any of its Affiliates (and their respective directors, officers, shareholders, agents and employees) for loss or
damage to the Hotel, and any resultant interruption of business regardless of the cause of such property or business interruption loss. 
  

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 K. All reasonable insurance premiums for insurance procured pursuant to this Section 6.01 shall be
treated as Deductions. 
  
 6.02 Operational Insurance

  
 Commencing with the Effective date and thereafter during the
Term, Manager shall procure and maintain the following: 
  
 A.
Commercial general liability insurance against claims for bodily injury, death or property damage occurring on, in or in conjunction with the operations of the Hotel, and automobile liability insurance on vehicles operated in conjunction with the
Hotel, with a combined single limit for each occurrence of not less than One Hundred Million Dollars ($100,000,000); 
  
 B. Workers’ compensation coverage as may be required under applicable laws covering all of Manager’s employees at the Hotel, and employer’s
liability insurance of not less than One Million Dollars ($1,000,000) per accident/disease; 
  
 C. Fidelity bond coverage in an amount not less than Two Million Dollars ($2,000,000) covering Manager’s employees at the Hotel; and 
  
 D. Employment practices liability insurance covering all of Manager’s employees at the Hotel, to the extent available
at commercially reasonable rates and terms, in an amount not less than One Million Dollars ($1,000,000); 
  
 E. Such other insurance in amounts as Manager, in its reasonable judgment, deems advisable for protection against claims, liabilities and losses arising
out of or connected with the operation of the Hotel. 
  
 F. All
insurance described in Section 6.02 may be obtained through blanket insurance programs, provided that such blanket programs substantially fulfill the requirements specified herein. The blanket insurance programs may include an “Insurance
Retention.” Insurance Retention shall mean the deductibles or risk retention levels; however, the Hotel’s responsibility for such deductibles or risk retention levels shall be limited to the Hotel’s per occurrence limit for any loss
or reserve as established for the Hotel, which limit shall be the same as other similar hotels participating in the blanket insurance programs. 
  
 G. All insurance required under Section 6.02 shall be carried in the name of Manager. The insurance required under Section 6.02.A shall include Owner, and
any Mortgagees specified by Owner, in writing, as additional insureds. 
  
 H. Manager, upon request, shall deliver to Owner certificates of insurance evidencing the insurance coverages required under Section 6.02.A and any renewals thereof. All such certificates of insurance shall, to the extent obtainable, state
that the insurance shall not be 

  

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canceled or materially reduced without at least thirty (30) days’ prior written notice to the certificate holder. 
  
 I. All insurance premiums, costs and other expenses, including any Insurance
Retention, for insurance procured pursuant to this Section 6.02 shall be treated as Deductions. All charges under the blanket programs shall be allocated to the Hotel and other similar participating hotels on a reasonable basis. Any losses and
associated costs and expenses that are uninsured shall be treated as a cost of insurance and shall also be treated as Deductions. 
  
 J. Upon Termination, a reserve in an amount determined by Manager based on loss projections, shall be established from Gross Revenues to cover the amount
of any Insurance Retention and all other costs and expenses that will eventually have to be paid by either Owner or Manager with respect to pending or contingent claims, including those that arise after Termination for causes arising during the
Term. If Gross Revenues are insufficient to meet the requirements of such reserve, Owner shall deliver to Manager, within ten (10) days after receipt of Manager’s written request thereof, the sums necessary to establish such reserve; and if
Owner fails to timely deliver such sums to Manager, Manager shall have the right (without affecting Manager’s other remedies under this Agreement) to withdraw the amount of such expenses from the Operating Accounts, the FF&E Reserve, the
Working Capital funds or any other funds of Owner held by or under the control of Manager. 
  
 ARTICLE VII 
  
 DAMAGE, REPAIR AND CONDEMNATION 
  
 7.01
Damage and Repair 
  
 A. If, during the Term, the Hotel is
damaged by a Minor Casualty, Manager shall, with all reasonable diligence, proceed to process the claim with the applicable insurance carriers, including settling such claim, and to make the necessary arrangements with appropriate contractors and
suppliers to repair and/or replace the damaged portion of the Hotel. Owner’s consent shall not be needed for Manager to perform any of the foregoing, all of which shall be performed in accordance with Manager’s reasonable judgment. Owner
agrees to sign promptly any documents which are necessary to process and/or adjust the claim with the insurance carriers, as well as any contracts with such contractors and/or suppliers. 
  
 B. If, during the Term, the Hotel suffers a Total Casualty, this Agreement shall be terminable at the option of either party
upon ninety (90) days’ written notice to the other party. Such notice must be sent within thirty (30) days after the date of the Total Casualty. 
  
 C. If, during the Term, the Hotel is damaged by fire, casualty or other cause to a greater extent than a Minor Casualty, but not to the extent of a Total
Casualty, or if the Hotel suffers a Total Casualty but neither party elects to terminate under Section 7.01.B, Owner shall, at its cost and expense and with all reasonable diligence, repair and/or replace the damaged 

  

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portion of the Hotel to the same condition as existed previously. Manager shall have the right to discontinue operating the Hotel to the extent it deems
necessary to comply with applicable Legal Requirements or as necessary for the safe and orderly operation of the Hotel. To the extent available, proceeds from the insurance described in Section 6.01 of this Agreement shall be applied to such repairs
and/or replacements. If Owner fails to so promptly commence and complete the repairing and/or replacement of the Hotel so that it shall be substantially the same as it was prior to such damage or destruction, such failure shall be an Event of
Default by Owner. 
  
 7.02 Condemnation 
  
 A. In the event all or substantially all of the Hotel shall be taken in any
eminent domain, condemnation, compulsory acquisition, or similar proceeding by any competent authority for any public or quasi-public use or purpose, or in the event a portion of the Hotel shall be so taken, but the result is that it is unreasonable
to continue to operate the Hotel in accordance with the standards required by this Agreement, this Agreement shall terminate. Owner and Manager shall each have the right to initiate such proceedings as they deem advisable to recover any compensation
to which they may be entitled. 
  
 B. In the event a portion of
the Hotel shall be taken by the events described in Section 7.02.A, or the entire (or portion of the) Hotel is affected but on a temporary basis, and the result is not to make it unreasonable to continue to operate the Hotel, this Agreement shall
not terminate. However, so much of any award for any such partial taking or condemnation as shall be necessary to render the Hotel equivalent to its condition prior to such event shall be used for such purpose; and Manager shall have the right to
discontinue operating the Hotel to the extent it deems necessary for the safe and orderly operation of the Hotel. 
  
 ARTICLE VIII 
  
 OWNERSHIP OF THE HOTEL 
  
 8.01
Ownership of the Hotel 
  
 A. Owner hereby covenants that
it holds good and marketable fee title to the Site, subject to the exceptions set forth on the title policy attached as Exhibit E hereto, and that, during the Term, it will have and maintain good and marketable fee title to the Site free and clear
of any and all liens, encumbrances or other charges, except as follows: 
  
 1. easements or other encumbrances (other than those described in Section 8.01.A.2 and Section 8.01.A.3 hereof) that (a) do not adversely affect the operation of the Hotel by Manager and that are not prohibited
pursuant to Section 8.04 of this Agreement or (b) those listed in the title policy attached as Exhibit E hereto; 
  
 2. Qualified Mortgages; or 
  

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 3. liens for taxes, assessments, levies or other public charges not yet due or due but
not yet payable. 
  
 B. Owner shall pay and discharge, on or
before the due date, any and all payments due under any Mortgage that Owner has entered into with respect to the Hotel. Owner shall indemnify, defend, and hold Manager harmless from and against all claims, litigation and damages arising from the
failure to make any such payments as and when required; and this obligation of Owner shall survive Termination. Manager shall have no responsibility for payment of debt service due with respect to the Hotel, from Gross Revenues or otherwise, and
such responsibility shall be solely that of Owner. 
  
 C. Owner
covenants that Manager shall quietly hold, occupy and enjoy the Hotel in accordance with the terms of this Agreement throughout the Term hereof free from hindrance, ejection or molestation by Owner or any other party claiming under, through or by
right of Owner. Owner agrees to pay and discharge any payments and charges and, at its expense, to prosecute all appropriate actions, judicial or otherwise, necessary to assure such free and quiet occupation. 
  
 8.02 Mortgages 
  
 A. Owner shall be permitted to encumber the Hotel and/or the Site with any
Mortgage, provided that such Mortgage meets all of the following requirements: 
  
 1. The proposed Mortgage is from an Institutional Lender and is on commercially reasonable terms and conditions; 
  
 2. (i) As of the date of the closing of the proposed
financing, the aggregate principal balance of all Mortgages encumbering the Hotel, including the proposed Mortgage, shall be no greater than seventy percent (70%) of the fair market value of the Hotel or 
  
 (ii) As of the date of the closing of the proposed
financing, the aggregate principal balance of all Mortgages encumbering the Hotel, including the proposed Mortgage, shall be no greater than seventy-five percent (75%) of the fair market value of the Hotel and, as of the date of the closing
of the proposed financing, the ratio (the “DSCR”) of (x) the total, projected aggregate Operating Profit for the thirteen (13) full Accounting Periods immediately following such date to (y) the annual debt service for all Mortgages
encumbering the Hotel, including the proposed Mortgage, shall be projected to equal or exceed one and one-tenth to one (1.1:1); the DSCR for the thirteen (13) full Accounting Periods immediately following the first anniversary of the closing of the
proposed financing shall be projected to equal or exceed one and one-quarter to one (1.25:1); the DSCR for the thirteen (13) full Accounting Periods immediately following the second anniversary of the closing of the proposed financing shall be
projected to equal or exceed one and three-tenths to one (1.3:1); and the DSCR for the thirteen (13) full Accounting Periods immediately following the third anniversary of the closing of the proposed financing shall be projected to equal or exceed
one and four-tenths to one (1.4:1); 
  

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 3. Owner, Manager and the holder of such Mortgage shall have entered into a Subordination
Agreement (to be recorded in the real property records in the jurisdiction where the Site is located) as further described in Section 8.03 below; and 
  
 4. Projections of Operating Profit for the thirteen (13) full Accounting Periods immediately following the closing of the proposed
financing will be consistent with the approved Business Plan at the time of the closing of such financing. All other projections of Operating Profit for purposes of calculating the DSCR in Section 8.02.A.2 shall be subject to the mutual approval of
Owner and Manager. 
  
 B. In the event the proposed Mortgage is a
refinancing of an existing Mortgage, the initial principal amount of the new Mortgage may exceed the principal amount of a Mortgage permitted pursuant to Section 8.02.A.2 as long as (i) the initial principal amount of the new Mortgage does not
exceed the lesser of the (x) initial principal amount of the existing Mortgage and (y) current principal amount of the existing Mortgage, and (ii) the new Mortgage satisfies the requirements set forth in clauses 8.02.A.1 and 8.02.A.3. 
  
 C. Notwithstanding the requirements of Section 8.03, in the event the
proposed Mortgage is from an Institutional Lender, is on commercially reasonable terms and conditions, and the aggregate principal balance of all Mortgages encumbering the Hotel, including the proposed Mortgage, is less than sixty percent (60%) of
the fair market value of the Hotel as of the date of the closing of the proposed financing, Owner shall not be obligated to obtain a Subordination Agreement from the Mortgagee of the proposed Mortgage. 
  
 D. For purposes of this Section 8.02, the fair market value of the Hotel
shall be reasonably determined by Owner and Manager. If Owner and Manager do not agree on such fair market value, either party may request that a licensed appraiser (reasonably acceptable to both parties) shall determine the fair market value of the
Hotel. If the parties cannot agree on an appraiser within ten (10) days after the date on which either party notifies the other that it wishes to have the fair market value of the Hotel be determined by an appraisal, either party may elect to have
such fair market value determined by a panel of Experts pursuant to Section 11.20. Any Mortgage which meets all of the requirements set forth in this Section 8.02 shall be referred to in this Agreement as a “Qualified Mortgage.”

  
 E. In the event Manager receives any reasonable request for
information on the Hotel from the holder of any Qualified Mortgage (and including any Affiliate of Manager providing any financing in connection with the Hotel), Owner agrees that Manager is hereby authorized to provide or distribute such
information directly to such lender. 
  
 8.03 Subordination,
Non-Disturbance and Attornment 
  
 A. Owner shall obtain from
any Mortgagee which holds a Mortgage as of the Effective date or thereafter an agreement (the “Subordination Agreement”), which (i) is 

  

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satisfactory in all respects to Manager and such Mortgagee and (ii) shall be recordable in the jurisdiction where the Hotel is located, pursuant to which:

  
 1. The right, title and interest of Manager
in and to the Hotel under this Agreement shall be subject and subordinate to the lien of the Mortgage; 
  
 2. If there is a Foreclosure of such Mortgage, and Termination of this Agreement has not occurred, Manager shall be obligated to each
Subsequent Owner to perform all of the terms and conditions of this Agreement for the balance of the remaining Term hereof, with the same force and effect as if such Subsequent Owner were the Owner; and 
  
 3. If there is a Foreclosure of such Mortgage, (i) this
Agreement shall not be terminated, (ii) Mortgagee and all Subsequent Owners shall recognize Manager’s rights under this Agreement, (iii) Manager shall not be named as a party in any Foreclosure action or proceeding and (iv) Manager shall not be
disturbed in its right to manage and operate the Hotel pursuant to the provisions of this Agreement. 
  
 B. In the event that the Subordination Agreement contains provisions requiring Manager (upon a default under the Mortgage, or upon various other
stipulated conditions) to pay certain amounts which are otherwise due to Owner under this Agreement to the Mortgagee or its designee (rather than to Owner), Owner hereby gives its consent to such provisions, which consent shall be deemed to be
irrevocable until the entire debt secured by the Mortgage has been discharged. 
  
 C. Prior to encumbering the Hotel or the Site with any Mortgage, Owner shall obtain from the proposed Mortgagee an executed, recordable Subordination Agreement. Manager agrees to execute such Subordination Agreement
for the benefit of such proposed Mortgagee. If Owner encumbers the Hotel or the Site with a Mortgage without first obtaining such a Subordination Agreement from the Mortgagee: (i) it shall constitute an Event of Default by Owner; and (ii) in
addition, Manager shall thereafter have a continuing right to terminate this Agreement upon sixty (60) days’ prior written notice to Owner, unless Owner obtains a Subordination Agreement prior to Manager’s exercise of such termination
right. In addition, any Mortgage described in the preceding sentence shall be subject and subordinate to Manager’s rights under this Agreement. 
  
 D. Notwithstanding the subordination of this Agreement which is described in Section 8.03.A.1, if, in connection with the exercise by any Mortgagee of its
remedies under any Mortgage, there is an adverse impact upon the operation of the Hotel by Manager in accordance with the System Standards, the foregoing shall constitute an Event of Default by Owner. 
  
 8.04 No Covenants, Conditions or Restrictions 
  
 A. Owner covenants that, as of the Effective date and during the Term, there
will not be (unless Manager has given its prior consent thereto) any covenants, conditions or restrictions, including reciprocal easement agreements or cost-sharing arrangements (individually or 

  

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collectively referred to as “CC&R(s)”) affecting the Site or the Hotel, other than those set forth on the title policy attached to this
Agreement as Exhibit E, (i) which would prohibit or limit Manager from operating the Hotel in accordance with the System Standards, including related amenities proposed for the Hotel; (ii) which would allow the Hotel facilities (for example, parking
spaces) to be used by persons other than guests, invitees or employees of the Hotel; (iii) which would allow the Hotel facilities to be used for specified charges or rates which have not been approved by Manager; or (iv) which would subject the
Hotel to exclusive arrangements regarding food and beverage operation or retail merchandise. 
  
 B. Owner shall submit all proposed CC&R’s to Manager for its approval. Manager’s consent to any such CC&R shall be conditioned (among other things) on satisfactory evidence that: (i) the CC&R in
question provides a reasonable benefit to the operation of the Hotel; (ii) the costs incurred (including administrative expenses) pursuant to such CC&R will be both reasonable and allocated to the Hotel on a reasonable basis; and (iii) no
capital expenditures incurred pursuant to said CC&R will be paid from Gross Revenues or from the FF&E Reserve (but rather, such capital expenditures will be paid separately by Owner). All CC&R’s set forth on Exhibit E-1 plus all
future CC&R’s which have been approved by Manager shall constitute a Deduction and shall be paid from Gross Revenues. The costs incurred (including administrative expenses) pursuant to any CC&R not set forth on Exhibit E-1 or approved
by Manager pursuant to this Section 8.04.B shall be paid by Owner from its own funds and not from Gross Revenues or from the FF&E Reserve. 
  
 8.05 Liens; Credit 
  
 Manager and Owner shall use commercially reasonable efforts to prevent any liens from being filed against the Hotel which arise from any maintenance,
repairs, alterations, improvements, renewals or replacements in or to the Hotel, and shall cooperate fully in obtaining the release of any such liens. The cost of releasing any lien shall be treated the same as the cost of the matter to which it
relates. In no event shall either party borrow money in the name of or pledge the credit of the other. 
  
 8.06 Amendments Requested by Mortgagee 
  
 If requested by any Mortgagee or prospective Mortgagee, Manager agrees to execute and deliver any amendment of this Agreement that is reasonably required
by such Mortgagee or prospective Mortgagee, provided that Manager shall be under no obligation to amend this Agreement if the result of such amendment would be: (i) to reduce, defer or delay the amount of any payment to be made to Manager hereunder;
(ii) to materially and adversely increase Manager’s obligations or affect Manager’s rights under this Agreement; (iii) to change the Term; (iv) to cause the Hotel to be operated other than pursuant to the System Standards and other
provisions hereof; or (v) to amend Section 5.02, Section 5.03 or Article VI. Any such amendment shall be in effect only for the period of time in which such Mortgage is outstanding. 
  

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 ARTICLE IX 
  

DEFAULTS 
  
 9.01 Events of Default 
  
 Each of the following shall constitute a “Default” under this Agreement. 
  
 A. The filing of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy law
by either party, or the admission by either party that it is unable to pay its debts as they become due. Upon the occurrence of any Default by either party (referred to as the “defaulting party”) as described under this Section 9.01.A,
said Default shall be deemed an “Event of Default” under this Agreement. The parties expressly agree that such Event of Default would have a material adverse effect on the non-defaulting party. 
  
 B. The consent to an involuntary petition in bankruptcy or the failure to
vacate, within ninety (90) days from the date of entry thereof, any order approving an involuntary petition by either party. Upon the occurrence of any Default by either party as described under this Section 9.01.B, said Default shall be deemed an
“Event of Default” under this Agreement. The parties expressly agree that such Event of Default would have a material adverse effect on the non-defaulting party. 
  
 C. The entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor,
adjudicating either party as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee, or liquidator of all or a substantial part of such party’s assets, and such order, judgment or decree’s
continuing unstayed and in effect for an aggregate of sixty (60) days (whether or not consecutive). Upon the occurrence of any Default by either party as described under this Section 9.01.C, said Default shall be deemed an “Event of
Default” under this Agreement. The parties expressly agree that such Event of Default would have a material adverse effect on the non-defaulting party. 
  
 D. The failure of either party to make any payment required to be made in accordance with the terms of this Agreement, as of the due date as specified in
this Agreement. Upon the occurrence of any Default by either party as described under this Section 9.01.D, said Default shall be deemed an “Event of Default” under this Agreement if the defaulting party fails to cure such Default within
ten (10) days after receipt of written notice from the non-defaulting party demanding such cure. 
  
 E. Subject to the provisions of Section 4.1 of the Addendum, the failure of Owner to complete the design, construction, furnishing and equipping of the
Hotel Improvements in the manner contemplated by the Addendum on or before the dates set forth in the time schedules mutually approved by Owner and Manager in Section 4.1 of the Addendum and in accordance with the time periods set forth in Section
4.1 of the Addendum. Upon the occurrence of any 

  

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Default by Owner as described under this Section 9.01.E, said Default shall be deemed an “Event of Default” under this Agreement if Owner fails to
cure the Default within thirty (30) days after receipt of written notice from Manager demanding such cure. 
  
 F. Owner or any of Owner’s Affiliates is or becomes a Specially Designated National or Blocked Person. Upon the occurrence of any Default as
described in this Section 9.01.F, said Default shall be deemed an “Event of Default” under this Agreement. The parties expressly agree that such Event of Default would have a material adverse effect on the non-defaulting party. 

 
 G. The failure of either party to perform, keep or fulfill any of the
other covenants, undertakings, obligations or conditions set forth in this Agreement, and the continuance of such default for a period of thirty (30) days after the defaulting party’s receipt of written notice from the non-defaulting party of
said failure. Upon the occurrence of any Default by either party as described under this Section 9.01.G, said Default shall be deemed an “Event of Default” under this Agreement if the defaulting party fails to cure the Default within
thirty (30) days after receipt of written notice from the non-defaulting party demanding such cure, or, if the Default is such that it cannot reasonably be cured within said thirty (30) day period of time, if the defaulting party fails to commence
the cure of such Default within said thirty (30) day period of time or thereafter fails to diligently pursue such efforts to completion. 
  
 9.02 Remedies 
  
 A. Upon the occurrence of an Event of Default, the non-defaulting party shall have the right to pursue any one or more of the following courses of action:

  
 (i) To institute forthwith any and all
proceedings permitted by law or equity with respect to such Event of Default, including, without limitation (but subject to the provisions of Sections 11.20 and 11.21 hereof), actions for specific performance and/or damages; 
  
 (ii) To avail itself of the remedies described in Section
9.03; and 
  
 (iii) To terminate this Agreement,
provided, however, that a non-defaulting party may not terminate this Agreement on the basis of an Event of Default unless and until (x) such Event of Default has a material adverse effect on the non-defaulting party and, (y) if the defaulting party
contests the occurrence of the Event of Default or its effect on the non-defaulting party, a court of competent jurisdiction has issued a final, binding and non-appealable order finding that the Event of Default has occurred and that it has such a
material adverse effect. 
  
 B. A non-defaulting party that has
the right to terminate this Agreement pursuant to Section 9.02.A(iii) shall do so by written notice to the defaulting party submitted after satisfaction of the provisions of Section 9.02.A(iii). Such termination shall be effective as of the
effective date set forth in such notice, provided that such effective date shall occur at least 

  

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thirty (30) days after the date on which the defaulting party receives such notice and further provided that, if the defaulting party is Manager, such period
of thirty (30) days shall be extended to seventy-five (75) days (or such longer period of time as may be necessary under Legal Requirements pertaining to termination of employment). 
  
 9.03 Additional Remedies 
  
 A. Upon the occurrence of a Default by either party under the provisions of Section 9.01.D, the amount owed to the non-defaulting party shall accrue
interest, at an annual rate equal to the Prime Rate plus three (3) percentage points, from and after the date on which the Default occurred. 
  
 B. Upon the occurrence of a Default by Owner under the provisions of Section 9.01.D, Manager shall have the right (without affecting Manager’s other
remedies under this Agreement) to withdraw the amount (plus accrued interest as described in Section 9.03.A above) owed to Manager by Owner from distributions otherwise payable to Owner pursuant to Section 3.02 and Section 4.01 of this Agreement.

  
 C. Manager and/or any Affiliate of Manager shall be entitled,
in case of any breach of the covenants of Section 11.11.E, Section 11.11.F or Section 11.12 by Owner or others claiming through it, to injunctive relief and to any other right or remedy available at law or in equity. 
  
 D. The remedies granted under Section 9.02 and Section 9.03 shall not be in
substitution for, but shall be in addition to, any and all rights and remedies available to the non-defaulting party (including, without limitation, injunctive relief and damages) by reason of applicable provisions of law or equity and shall survive
Termination. 
  
 ARTICLE X 
  
 ASSIGNMENT AND SALE 
  
 10.01 Assignment 
  
 A. Manager shall not assign or transfer its interest in this Agreement
without the prior consent of Owner; provided, however, that Manager shall have the right, without Owner’s consent, to (1) assign its interest in this Agreement to Marriott or any Affiliate of Marriott, (2) subject to Sections 1.16 and 1.17
hereof, lease shops or grant concessions at the Hotel so long as the terms of any such leases or concessions do not exceed the Term, (3) assign its interest in this Agreement in connection with a merger or consolidation or a sale of all or
substantially all of the assets of Manager or Marriott, and (4) assign its interest in this Agreement in connection with a merger or consolidation or a sale of all or substantially all of the Marriott Hotel System assets owned by Manager, Marriott
or any Affiliate of Manager or Marriott. 
  

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 B. Owner shall not assign or transfer its interest in this Agreement without the prior consent of
Manager; provided, however, that Owner shall have the right, without such consent, to (1) conditionally assign this Agreement as security for a Mortgage encumbering the Hotel in accordance with this Agreement, and (2) assign its interest in this
Agreement in connection with a Sale of the Hotel which complies with the provisions of Section 10.02 of this Agreement. 
  
 C. In the event either party consents to an assignment of this Agreement by the other, no further assignment shall be made without the express consent in
writing of such party, unless such assignment may otherwise be made without such consent pursuant to the terms of this Agreement. An assignment by Owner of its interest in this Agreement shall not relieve Owner from its obligations under this
Agreement that accrued prior to the date of such assignment, but shall relieve Owner of such obligations accruing on and after such date if the assignment by Owner complies with Section 10.1.B and if Manager has received an assumption agreement
executed by the assignee (in form and substance reasonably satisfactory to Manager). 
  
 D. Subject to the provisions of this Article X, the terms and conditions of this Agreement shall inure to the benefit of, and be binding upon, the respective successors, heirs, legal representatives, or assigns of
each of the parties hereto. 
  
 10.02 Sale of the Hotel

  
 A. Owner shall not enter into any Sale of the Hotel to any
Person (or any Affiliate of any Person) who: (1) does not, in Manager’s reasonable judgment, have sufficient financial resources and liquidity to fulfill Owner’s obligations under this Agreement; (2) is known in the community as being of
bad moral character, or has been convicted of a felony in any state or federal court, or is in control of or controlled by persons who have been convicted of felonies in any state or federal court; (3) either directly or indirectly, has an ownership
interest (excluding that of a mere franchisee or a mere passive investor with a non-controlling interest) in a brand of hotels totaling at least ten (10) full-service hotels or twenty-five (25) select-service hotels, or in a group of hotels totaling
at least ten (10) full-service hotels or twenty-five (25) select-service hotels that are not affiliated with a brand but that are marketed and operated as a collective group, if such brand or group of hotels compete with Manager, Marriott or any
Affiliate of either that operates a brand or group of hotels; or (4) is, or any of its Affiliates or any other Person related to such Person that is proscribed by applicable law is, a Specially Designated National or Blocked Person. Furthermore,
Owner shall not enter into a Sale of the Hotel if Owner is at the time in Default under the terms of this Agreement unless such Sale of the Hotel is pursuant to a Foreclosure. 
  
 B. If Owner decides to sell the Hotel to a third party, then prior to offering the Hotel for sale or negotiating a Sale of
the Hotel with any third party, Owner will give Manager notice of such decision, and both Owner and Manager will, during the period of twenty (20) days after such notice, attempt in good faith to negotiate a mutually satisfactory agreement for the
purchase of the Hotel. For purposes of this Section 10.02.B, a sale to a third party shall not include any transfer, sale or assignment to a Mortgagee nor to a sale at Foreclosure under a Mortgage. If, after the expiration of twenty (20) days
following the date of Owner’s notice of its desire to sell 

  

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the Hotel, Owner and Manager have not entered into a mutually acceptable agreement for the purchase of the Hotel, Owner shall be free to sell or lease the
Hotel to a third party, provided that any such sale or lease shall be subject to the following further conditions: 
  
 1. Owner shall deliver a written notice (the “Notice of Proposed Sale”) of the proposed Sale of the Hotel to Manager stating:
(i) the name of the prospective purchaser or tenant, as the case may be; (ii) the price or rental; and (iii) the terms and conditions of such proposed Sale of the Hotel, together with all other information reasonably requested by Manager.

  
 2. Within twenty (20) days after the date of
receipt of such Notice of Proposed Sale from Owner and such other information, Manager shall elect, by written notice to Owner, one of the following two (2) alternatives: 
  
 a. To consent to such Sale of the Hotel and to the assignment of this Agreement to such purchaser or tenant,
provided that concurrently with the closing thereof, the purchaser or tenant, as the case may be, shall, by appropriate instrument in form satisfactory to Manager, assume all of Owner’s obligations under this Agreement. An executed original of
such assumption agreement shall be delivered to Manager; or 
  
 b. To not consent to such proposed Sale of the Hotel, based upon such Sale of the Hotel not being in compliance with Section 10.02.A above, in which event such Sale of the Hotel shall not be permitted hereunder and it
shall be an Event of Default for Owner to proceed with such Sale of the Hotel. 
  
 C. If Manager shall fail to elect one of the alternatives set forth in Section 10.02.B.2 above, within said twenty (20) day period, such failure shall be deemed to constitute an election to consent under Section
10.02.B.2.a above, and the provisions thereof shall prevail as if Manager had consented in writing thereto. Any proposed Sale of the Hotel with respect to which a Notice of Proposed Sale has been delivered by Owner to Manager hereunder must be
finalized within one hundred eighty (180) days following the delivery of such Notice of Proposed Sale. Failing such finalization, such Notice of Proposed Sale, and any response thereto given by Manager, shall be null and void and all of the
provisions of Section 10.02.B and Section 10.02.C must again be complied with before Owner shall have the right to finalize a Sale of the Hotel upon the terms contained in said Notice of Proposed Sale, or otherwise. 
  
 D. If Manager consents (or is deemed to have consented) to the proposed Sale
of the Hotel, then Manager shall have the option to require (in lieu of receipt of the assumption agreement described in Section 10.02.B.2.a) that such purchaser or tenant enter into a new management agreement with Manager, which new management
agreement will be on all of the terms and conditions of this Agreement except that the Term of any such new agreement shall consist only of the balance of the Term remaining under this Agreement at the time of execution of any such new management
agreement. Such new management agreement shall be executed by Manager and such new owner at the time of closing of the Sale of the Hotel, and a memorandum of such new management agreement shall be executed by the parties and recorded 

  

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immediately following recording of the deed or memorandum of lease (or assignment) and prior to recordation of any other documents. 
  
 E. Owner hereby represents and warrants to Manager that: (i) neither Owner
nor any of Owner’s Affiliates nor any other Person related to Owner that is proscribed by applicable law is a Specially Designated National or Blocked Person; and (ii) its equity is directly and (if applicable) indirectly owned as shown on
Exhibit H. In connection with the possibility of a Sale of the Hotel achieved by means of a transfer of the controlling interest in Owner, Owner shall, from time to time, within thirty (30) days after written request by Manager, furnish Manager with
a list of the names and addresses of the direct and indirect owners of capital stock, partnership interest, limited liability company interests, or other proprietary interest of Owner (but only those owners which hold an ownership interest of thirty
percent (30%) or more), or the partnership interests (both (i) general partner and (ii) any limited partner holding an ownership interest of thirty percent (30%) or more) in Owner. In addition, Owner shall notify Manager of any transaction or series
of transactions in which Owner, or any Parent Owner, reduces its ownership interest in the Hotel below fifty percent (50%) or in which the then-controlling interest in Owner or any Parent Owner is reduced below fifty percent (50%). Manager agrees
that it will treat all such lists as confidential. 
  
 F. It is
understood that no Sale of the Hotel shall reduce or otherwise affect: (i) the current level of Working Capital; (ii) the outstanding balance deposited in the FF&E Reserve; (iii) the outstanding balance in any of the Operating Accounts
maintained by Manager pursuant to this Agreement; or (iv) Owner’s Priority. If, in connection with any Sale of the Hotel, the selling Owner intends to withdraw, for its own use, any of the cash deposits described in the preceding sentence, the
selling Owner must obtain the contractual obligation of the buying Owner to replenish those deposits (in the identical amounts) simultaneously with such withdrawal. The selling Owner is hereby contractually obligated to Manager to ensure that such
replenishment in fact occurs. The obligations described in this Section 10.02.F shall survive such Sale of the Hotel and shall survive Termination. 
  
 G. The terms and provisions of this Agreement shall be binding upon all successors to Owner’s interest in the Site and/or the Hotel. Each selling
Owner shall be obligated to Manager to obtain from each buying Owner an assumption (reasonably satisfactory to Manager) of this Agreement, and this obligation of the selling Owner (as well as all other obligations under this Agreement) shall survive
any Sale of the Hotel and any Termination of this Agreement. 
  
 H. Manager shall have the right (without prejudice to its rights to declare an Event of Default and seek damages or other compensation) to terminate this Agreement, on thirty (30) days’ written notice, if title to or possession of the
Hotel is transferred by judicial or administrative process (including, without limitation, a Foreclosure, or a sale pursuant to an order of a bankruptcy court, or a sale by a court-appointed receiver) to an individual or entity which would not
qualify as a permitted transferee under Section 10.02.A, regardless of whether or not such transfer is the voluntary action of the transferring Owner, or whether (under applicable law) the Owner is in fact the transferor. 
  

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 ARTICLE XI 
  

MISCELLANEOUS 
  
 11.01 Right to Make Agreement 
  
 Each party warrants, with respect to itself, that neither the execution of this Agreement nor the finalization of the transactions contemplated hereby
shall violate any provision of law or judgment, writ, injunction, order or decree of any court or governmental authority having jurisdiction over it; result in or constitute a breach or default under any indenture, contract, other commitment or
restriction to which it is a party or by which it is bound; or require any consent, vote or approval which has not been taken, or at the time of the transaction involved shall not have been given or taken. Each party covenants that it has and will
continue to have throughout the Term and any extensions thereof, the full right to enter into this Agreement and perform its obligations hereunder. 
  
 11.02 Consents and Cooperation 
  
 Wherever in this Agreement the consent or approval of Owner or Manager is required, such consent or approval shall not be unreasonably withheld, delayed
or conditioned, shall be in writing and shall be executed by a duly authorized officer or agent of the party granting such consent or approval. If either Owner or Manager fails to respond within thirty (30) days to a request by the other party for a
consent or approval, such consent or approval shall be deemed to have been given (except as otherwise expressly provided in this Agreement). Additionally, Owner agrees to cooperate with Manager by executing such leases, subleases, licenses,
concessions, equipment leases, service contracts and other agreements negotiated in good faith by Manager and pertaining to the Hotel that, in Manager’s reasonable judgment, should be made in the name of the Owner. Each Owner shall be bound by
the approvals and consents granted by any prior Owner. 
  
 11.03
Relationship 
  
 In the performance of this Agreement,
Manager shall act solely as an independent contractor. Neither this Agreement nor any agreements, instruments, documents, or transactions contemplated hereby shall in any respect be interpreted, deemed or construed as making Manager a partner, joint
venturer with, or agent of, Owner. Owner and Manager agree that neither party will make any contrary assertion, claim or counterclaim in any action, suit, Expert resolution pursuant to Section 11.20, arbitration or other legal proceedings involving
Owner and Manager. 
  
 11.04 Applicable Law 
  
 This Agreement shall be construed under and shall be governed by the laws of
the State of Maryland. 
  

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 11.05 Recordation 
  
 The terms and provisions of the Agreement shall run with the parcel of land designated as the Site, and with Owner’s
interest therein, and shall be binding upon all successors to such interest. Simultaneously with the execution of this Agreement, the parties shall execute a recordable “Memorandum of Management Agreement,” in the form which is attached
hereto as Exhibit F. Such memorandum shall be recorded or registered promptly following the Effective date in the jurisdiction in which the Hotel is located. Any cost of such recordation shall be reimbursed from Gross Revenues and treated as a
Deduction. 
  
 11.06 Headings 
  
 Headings of articles and sections are inserted only for convenience and are
in no way to be construed as a limitation on the scope of the particular articles or sections to which they refer. 
  
 11.07 Notices 
  
 Notices, statements and other communications to be given under the terms of the Agreement shall be in writing and delivered by hand against receipt or
sent by certified or registered mail, postage prepaid, return receipt requested or by nationally utilized overnight delivery service, addressed to the parties as follows: 
  

			
	To Owner:	  	___________________________
	 	  	c/o DiamondRock Hospitality Limited Partnership
	 	  	10400 Fernwood Road, Suite 300
	 	  	Bethesda, Maryland 20817
	 	  	Attn: General Counsel
	 	  	Phone:
	 	  	Fax:
		
	To Manager:	  	Marriott Hotel Services, Inc.
	 	  	c/o Marriott International, Inc.
	 	  	10400 Fernwood Road
	 	  	Bethesda, Maryland 20817
	 	  	Attn: Law Department 52/923 - Hotel Operations
	 	  	Phone:
	 	  	Fax:

  

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	with copy to:	  	Marriott Hotel Services, Inc.
	 	  	c/o Marriott International, Inc.
	 	  	10400 Fernwood Road
	 	  	Bethesda, Maryland 20817
	 	  	Attn: Executive Vice President, Lodging, Dept. 911.01
	 	  	Phone:
	 	  	Fax:

  
 or at such other address as is from
time to time designated by the party receiving the notice. Any such notice that is mailed in accordance herewith shall be deemed received when delivery is received or refused, as the case may be. Additionally, notices may be given by telephone
facsimile transmission, provided that an original copy of said transmission shall be delivered to the addressee by nationally utilized overnight delivery service by no later than the second business day following such transmission. Telephone
facsimiles shall be deemed delivered on the date of such transmission. 
  
 11.08 Environmental Matters 
  
 A. Owner hereby
represents and warrants to Manager that, to the best of Owner’s knowledge, as of the Effective date, other than what is disclosed in the Phase I Report, there are no Hazardous Materials (as defined below) on any portion of the Site or the
Hotel, nor have any Hazardous Materials been released or discharged on any portion of the Site or the Hotel. In addition, Owner hereby represents and warrants that it has previously delivered to Manager copies of all reports concerning environmental
conditions which have been received by Owner or any of its Affiliates. In the event of the discovery of Hazardous Materials on any portion of the Site or in the Hotel during the Term, Owner shall promptly remove such Hazardous Materials, together
with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with: (1) the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as amended; (2) the regulations
promulgated thereunder, from time to time; (3) all federal, state and local laws, rules and regulations (now or hereafter in effect) dealing with the use, generation, treatment, storage, disposal or abatement of Hazardous Materials; and (4) the
regulations promulgated thereunder, from time to time (collectively referred to as “Environmental Laws”). Subject to Sections 11.08.B and 11.08.D, Owner shall indemnify, defend and hold Manager harmless from and against all loss, costs,
liability and damage (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the presence of Hazardous Materials on the Site or in the Hotel; and this obligation of Owner shall
survive Termination. “Hazardous Materials” shall mean and include any substance or material containing one or more of any of the following: “hazardous material,” “hazardous waste,” “hazardous substance,”
“regulated substance,” “petroleum,” “pollutant,” “contaminant,” “polychlorinated biphenyls,” “lead or lead-based paint” or “asbestos” as such terms are defined in any applicable
Environmental Law in such concentration(s) or amount(s) as may impose clean-up, removal, monitoring or other responsibility under the Environmental Laws, as the same may be amended from time to time, or which may present a significant risk of harm
to guests, invitees or employees of the Hotel. 
  

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 B. Manager shall indemnify, defend and hold Owner harmless from and against all loss, costs, liability
and damages (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of Litigation) arising from the presence of Hazardous Materials on the Site or in the Hotel that is caused by the gross negligence or
willful misconduct of a member of the Hotel’s executive team. Any amounts paid to Owner pursuant to the indemnity set forth in this Section 11.08.B shall be paid by Manager from its own funds, and not from Gross Revenues. 
  
 C. Subject to Sections 11.08.B and 11.08.D, all costs and expenses of the
aforesaid removal of Hazardous Materials from the Site or the Hotel, and of the aforesaid compliance with all Environmental Laws, and any amounts paid to Manager pursuant to the indemnity set forth in Section 11.08.A, shall be paid by Owner from its
own funds, and not from Gross Revenues or from the FF&E Reserve. 
  
 D. To the extent not otherwise covered by insurance maintained by either Manager or Owner (including any deductible or Insured Retention, if any, related thereto), the amount of any loss, costs, liability or damage (including, without
limitation, engineers’ and attorneys’ fees and expenses and the cost of litigation) arising from the presence of Hazardous Materials on or under the Site or in the Hotel as a direct result of the negligence of Manager’s employees at
the Hotel (but not any third parties, including any independent contractors retained to provide goods or services to the Hotel) shall be paid from Gross Revenues as a Deduction. 
  
 11.09 Confidentiality 
  
 Owner and Manager agree that the terms of this Agreement are strictly confidential and will use their reasonable efforts to ensure that such matters and
information are not disclosed to any outside person or entities without the prior consent of the other party, except (but in all events subject to the provisions of Section 11.12.B) as required by law or, to the extent necessary, (i) to obtain
licenses, permits and other public approvals, (ii) in connection with a Sale of the Hotel or (iii) in connection with a financing or sale of Manager or Marriott or its or their corporate assets. Owner acknowledges that competitive information
regarding brands, customers, marketing, operating or other strategies (including information related to other hotels) is confidential and proprietary to Manager and shall not be disclosed to Owner. 
  
 11.10 Projections 
  
 Owner acknowledges that any written or oral projections, pro formas, or other
similar information that has been (prior to execution of this Agreement) or will (during the Term) be provided by Manager or Marriott (or any Affiliate of either) to Owner is for information purposes only, and that Manager, Marriott, and any such
Affiliate do not guarantee that the Hotel will achieve the results set forth in any such projections, pro formas, or other similar information. Owner further acknowledges that (i) any such projections, pro formas, or other similar information are
based on assumptions and estimates, and (ii) unanticipated events may occur subsequent to the date of preparation of such projections, pro formas, and other similar information which impact the performance of the Hotel, and (iii) the actual results
achieved by 

  

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the Hotel are likely to vary from the estimates contained in any such projections, pro formas, or other similar information and such variations might be
material. 
  
 11.11 Actions to be Taken Upon Termination

  
 Upon a Termination, the following shall be applicable:

  
 A. Manager shall, within ninety (90) days after Termination,
prepare and deliver to Owner a final accounting statement with respect to the Hotel, as more particularly described in Section 4.02 hereof, along with a statement of any sums due from Owner to Manager pursuant hereto, dated as of the date of
Termination. Within thirty (30) days of the receipt by Owner of such final accounting statement, the parties will make whatever cash adjustments are necessary pursuant to such final statement. The cost of preparing such final accounting statement
shall be a Deduction, unless the Termination occurs as a result of a Default by either party, in which case the defaulting party shall pay such cost. Manager and Owner acknowledge that there may be certain adjustments for which the information will
not be available at the time of the final accounting and the parties agree to readjust such amounts and make the necessary cash adjustments when such information becomes available; provided, however, that all accounts shall be deemed final as of the
first (1st) anniversary of the effective date of Termination. 
  
 B. Upon delivery to Owner of the final accounting statement, Manager shall
release and transfer to Owner any of Owner’s funds which are held or controlled by Manager with respect to the Hotel with the exception of funds to be held in accordance with Sections 6.02.J, 11.11.G and 11.11.I and otherwise in accordance
herewith. 
  
 C. Manager shall make available to Owner such Books
and Records (including those from prior years, subject to Manager’s reasonable records retention policies) as will be needed by Owner to prepare the accounting statements, in accordance with the Uniform System of Accounts, for the Hotel for the
year in which the Termination occurs and for any subsequent year. 
  
 D. Manager shall (to the extent permitted by law) assign to Owner or to the new manager all operating licenses and permits for the Hotel which have been issued in Manager’s name (including liquor and restaurant licenses, if any);
provided that if Manager has expended any of its own funds in the acquisition of any of such licenses or permits, Owner shall reimburse Manager therefor if it has not done so already. 
  
 E. Manager shall have the option, to be exercised within thirty (30) days after Termination, to purchase, at their then fair
market value, any items of the Hotel’s Inventories and Fixed Asset Supplies as may be marked with any Marriott Trademarks. If Manager does not exercise its right to purchase the Hotel’s Inventories and Fixed Asset Supplies marked with any
Marriott Trademarks, Owner shall have the right to continue the use of such items for a period of ninety (90) days after Termination. Subject to the immediately preceding sentence, upon Termination, all use of or right to use the Marriott Trademarks
at or in connection with the Hotel shall cease forthwith, and Owner shall: (i) immediately, as of the date of such Termination, 

  

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place coverings over any signs or similar identification which contain any of the Marriott Trademarks, or shall otherwise render such signs or other similar
identification not visible to the public; (ii) remove any such signs or similar identification from the Hotel by no later than ten (10) days after the date of Termination; and (iii) immediately, as of the date of such Termination, remove from the
Hotel all Fixed Asset Supplies, Inventories and other items bearing any Marriott Trademark or remove all Marriott Trademarks from such items. If Owner has not removed such signs or other items bearing Marriott Trademarks within ten (10) days after
Termination, Manager shall have the right to do so at Owner’s expense; and if Owner fails to reimburse Manager for such expense within ten (10) days after receipt of written notice thereof from Manager to Owner, then Manager shall have the
right (without affecting Manager’s other remedies under this Agreement) to withdraw the amount of such expenses from the Operating Accounts, the FF&E Reserve, or any other funds of Owner held by or under the control of Manager. Manager
shall have the right to seek injunctive or other relief in a court of competent jurisdiction to enforce the foregoing provisions, and if such enforcement shall be necessary, Owner shall bear all of Manager’s costs of such enforcement, including
attorneys’ fees. 
  
 F. All Software used at the Hotel which
is owned by any of the Marriott Companies or the licensor of any of them is proprietary to such Marriott Company or the licensor of any of them, and shall in all events remain the exclusive property of such Marriott Company or the licensor of any of
them, as the case may be, and nothing contained in this Agreement shall confer on Owner the right to use any of such Software. Manager shall have the right to remove from the Hotel without compensation to Owner any Software (including upgrades and
replacements). Furthermore, upon Termination, notwithstanding Section 5.04 hereof, Manager shall be entitled to remove from the Hotel any computer equipment which is: (i) owned by a party other than Owner (without reimbursement to Owner); or (ii)
owned by Owner, but utilized as part of a centralized reservation or property management system (with reimbursement to Owner of all previous expenditures made by Owner with respect to such equipment, subject to a reasonable allowance for
depreciation). 
  
 G. A reserve shall be established from Gross
Revenues to reimburse Manager for all costs and expenses incurred by Manager (a) that may accrue after Termination, but that result or relate to Manager’s operation and management of the Hotel prior to Termination (including, without
limitation, costs and expenses relating to sales, use and occupancy tax liability), and that would otherwise be treated as Deductions under this Agreement, and (b) in terminating its employees at the Hotel, such as severance pay, unemployment
compensation, employment relocation, and other employee liability costs arising out of the termination of employment of Manager’s employees at the Hotel. If Gross Revenues are insufficient to meet the requirements of such reserve, then Owner
shall deliver to Manager, within ten (10) days after receipt of Manager’s written request therefor, the sums necessary to establish such reserve; and if Owner fails to timely deliver such sums to Manager, Manager shall have the right (without
affecting Manager’s other remedies under this Agreement) to withdraw the amount of such expenses from the Operating Accounts, the FF&E Reserve, or any other funds of Owner held by or under the control of Manager. The reserve described in
this Section 11.11.G shall be in addition to the reserve described in Section 6.02.J. 
  

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 H. Owner shall cause the entity which shall succeed Manager as the operator of the Hotel to hire a
sufficient number of the employees at the Hotel to avoid the occurrence, in connection with such Termination, of a “closing” under the WARN Act. 
  
 I. Prior to such Termination, Owner shall repay to Manager the amounts, if any, that Manager has funded through such date pursuant to the provisions of
Section 4.09(ii) and that remain outstanding and payable to Manager (plus any interest due thereon). If Owner does not make such repayment, Manager shall have the right to withhold and retain such amounts from any Working Capital or other funds held
or controlled by Manager with respect to the Hotel. 
  
 J. Various
other actions shall be taken, as described in this Agreement, including, but not limited to, the actions described in Section 4.09, Section 6.02.J and Section 11.28.B. 
  
 K. Manager shall peacefully vacate and surrender the Hotel to Owner. 
  
 The provisions of this Section 11.11 shall survive Termination. 

 
 11.12 Trademarks and Intellectual Property 
  
 A. During the Term, the Hotel shall be known as the
“            Marriott Hotel,” with such alternative identification determined by Manager from time to time to be necessary to provide local or specific geographic
definition to the name of the Hotel. However, if the name of the Marriott Hotel System is changed, Manager will have the right to change the name of the Hotel to conform thereto. 
  
 B. Owner acknowledges that Manager and its Affiliates are the sole and exclusive owners of all rights, title and interest to
the Marriott Trademarks, which shall in all events remain the exclusive property of Manager (or one of its Affiliates). All use of the Marriott Trademarks at or in connection with the Hotel, or as otherwise contemplated by this Agreement, shall be
made solely by and inure solely to the benefit of Manager and its Affiliates. Nothing in this Agreement shall be construed to grant Owner any right of ownership in or right to use or license others to use the Marriott Trademarks. Owner may not use
the Marriott Trademarks without the prior written consent of Manager, which may be withheld in Manager’s sole and absolute discretion, in any manner whatsoever, including, without limitation, the following: 
  
 1. No reference to Manager or to any of its Affiliates will
be made in any prospectus, private placement memorandum, offering circular or offering documentation related thereto (herein collectively referred to as the “Prospectus”), issued by Owner or one of its Affiliates, which is designed to
interest potential investors or lenders in the Hotel (as opposed to potential investors in DiamondRock Hospitality Company or DiamondRock Hospitality Limited Partnership), unless Manager has previously received a copy of all such references.
However, regardless of whether Manager does or does not so receive a copy of all such references, neither Manager nor any of its Affiliates will be deemed a sponsor of the offering described in the Prospectus, nor will it have any responsibility for
the Prospectus, and the Prospectus will so 

  

 - 48 - 

 
state. Unless Manager agrees in advance, the Prospectus will not include: (i) any Marriott Trademark; or (ii) except as required by applicable securities
laws, the text of this Agreement. Owner shall be entitled, however, to include in the Prospectus an accurate summary of this Agreement. If there are no Legal Requirements pursuant to which such information must be publicly disclosed, appropriate
measures shall be taken to ensure that entities or individuals receiving such Prospectus shall acknowledge the confidentiality of such information. Owner shall indemnify, defend and hold Manager and its Affiliates (and their respective directors,
officers, shareholders, employees and agents) harmless from and against all loss, costs, liability and damage (including attorneys’ fees and expenses, and the cost of Litigation) arising out of any Prospectus or the offering described therein.

  
 2. No Marriott Trademark will be included in
any material or Prospectus prepared for the purpose of a Sale of the Hotel or designed to interest potential investors or lenders in the Hotel, the Owner or Parent Owner, unless Manager has given its prior written approval to each such inclusion.

  
 3. No Trade Name adopted by Owner or its
Affiliates may include any Marriott Trademark or a term that is confusingly similar to a Marriott Trademark. Owner shall not apply for registration of any Marriott Trademark in any jurisdiction. 
  
 C. All right, title and interest (including copyright and patent rights) to
Intellectual Property shall at all times be the exclusive property of Manager (or any other Marriott Company), and all benefits obtained directly or indirectly from the use, sale or commercial exploitation of Intellectual Property shall belong
exclusively to Manager and its Affiliates. Neither Manager nor any other Marriott Company shall be restricted in disclosing or using any Intellectual Property directly or indirectly by this Agreement, and Manager and any other Marriott Company shall
have the right to use it for any purpose. Owner shall not have any rights to any Intellectual Property, shall treat as confidential any Intellectual Property in its possession, and shall not disclose to any third party any Intellectual Property or
use any Intellectual Property for any purpose whatsoever. Upon Termination, all Intellectual Property shall be removed from the Hotel by Manager, without compensation to Owner, subject to the provisions of Section 11.11.E regarding Marriott
Trademarks. 
  
 D. Manager and/or its Affiliates shall be
entitled, in case of any breach by Owner of any of the covenants of this Section 11.12, to injunctive relief and to any other right or remedy available at law or in equity. 
  
 E. The provisions of this Section 11.12 shall survive Termination. 
  
 11.13 Trade Area Restriction and Competing Facilities 
  
 A. Neither Manager nor any of its Affiliates shall open for business, or
permit any other Person to open for business, any Restricted Hotel within the Restricted Area during the period from the Effective date to the
            (    th)
anniversary of the Effective date. 
  

 - 49 - 

 B. Except as expressly provided in Section 11.13.A, neither this Agreement nor anything implied by the
relationship between Manager and Owner shall prohibit Manager or any of the Marriott Companies from developing, constructing, owning, operating, promoting, and/or authorizing others to develop, construct, operate, or promote one or more hotels, or
any other lodging products, time-share facilities, restaurants, or other business operations of any type, using any brand name available to the Marriott Companies, at any location, including a location proximate to the Site, and Owner hereby
acknowledges and agrees that Manager and any of the Marriott Companies have the unconditional right to engage in such activities. 
  
 11.14 Waiver 
  
 The failure of either party to insist upon a strict performance of any of the terms or provisions of the Agreement, or to exercise any option, right or
remedy contained in this Agreement, shall not be construed as a waiver or as a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect. No waiver by either party
of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed by such party. 
  

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 11.15 Partial Invalidity 
  
 If any portion of any term or provision of this Agreement, or the application thereof to any person or circumstance shall be
invalid or unenforceable, at any time or to any extent, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 
  
 11.16 Survival 
  
 Except as otherwise specifically provided in this Agreement, the rights and obligations of the parties herein shall not survive any Termination.

  
 11.17 Negotiation of Agreement 
  
 Owner and Manager are both business entities having substantial experience
with the subject matter of this Agreement, and each has fully participated in the negotiation and drafting of this Agreement. Accordingly, this Agreement shall be construed without regard to the rule that ambiguities in a document are to be
construed against the draftsman. No inferences shall be drawn from the fact that the final, duly executed Agreement differs in any respect from any previous draft hereof. 
  
 11.18 Estoppel Certificates 
  

Each party to this Agreement shall at any time and from time to time, upon not less than thirty (30) days’ prior notice from the other party,
execute, acknowledge and deliver to such other party, or to any third party specified by such other party, a statement in writing: (a) certifying that this Agreement is unmodified and in full force and effect (or if there have been modifications,
that the same, as modified, is in full force and effect and stating the modifications) and (b) stating whether or not to the best knowledge of the certifying party (i) there is a continuing Default or Event of Default by the non-certifying party in
the performance or observance of any covenant, agreement or condition contained in this Agreement, or (ii) there shall have occurred any event which, with the giving of notice or passage of time or both, would become a Default or Event of Default,
and, if so, specifying each such Default or Event of Default or occurrence of which the certifying party may have knowledge. Such statement shall be binding upon the certifying party and may be relied upon by the non-certifying party and/or such
third party specified by the non-certifying party as aforesaid. In addition, upon written request after a Termination, each party agrees to execute and deliver to the non-certifying party and to any such third party a statement certifying that this
Agreement has been terminated. 
  

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 11.19 Restrictions on Operating the Hotel in Accordance with System Standards 
  
 In the event of either (i) a Legal Requirement, including an order, judgment
or directive by a court or administrative body which is issued in connection with any Litigation involving Owner, or (ii) any action taken by a Mortgagee in connection with a Foreclosure, which in either case restricts or prevents Manager, in a
material and adverse manner, from operating the Hotel in accordance with System Standards (including without limitation, any restrictions on expenditures by Manager from the Operating Accounts or from the FF&E Reserve, other than restrictions
which are set forth in this Agreement), Manager shall be entitled, at its option, to terminate this Agreement upon sixty (60) days’ written notice to Owner. The foregoing shall not reduce or otherwise affect the rights of the parties under
Article IX. 
  
 11.20 Decision by Experts 
  
 Where this Agreement calls for a matter to be referred to a panel of Experts
for determination, the following provisions shall apply: 
  
 A.
With respect to any referred matter, the matter shall be decided by a majority vote of a panel of Experts. In the event that either party calls for a determination by Experts pursuant to the terms hereof, each party shall have ten (10) days from the
date of such request to select one Expert and, within ten (10) days after such respective selections, the two (2) respective firms and/or individuals so selected shall select the third Expert. If a party fails to make its respective selection of a
firm or individual within the ten (10) day period provided for above, then the Expert selected by the other party shall select two (2) Experts to serve on the Experts panel. Also, if the two (2) respective Experts selected by the parties shall fail
to select a third firm or individual (satisfying the requirements set forth in the definition of “Expert” in Section 12.01) to be an Expert, then such third Expert shall be appointed by the American Arbitration Association. With respect to
any issue hereunder to be referred to a panel of Experts for determination, the use of the Experts shall be the exclusive remedy of the parties and neither party shall attempt to adjudicate any dispute in any other forum. The decision of the Experts
shall be final and binding on the parties and shall not be capable of challenge, whether by arbitration, in court or otherwise; 
  
 B. Each party shall be entitled to make written submissions to the Experts, and if a party makes any submission it shall also provide a copy to the other
party and the other party shall have the right to comment on such submission (all within the time periods established pursuant to Section 11.20.D below). The parties shall make available to the Experts all books and records relating to the issue in
dispute and shall render to the Experts any assistance requested of the parties. The costs of the Experts and the proceedings shall be borne as directed by the Experts unless otherwise provided for herein. The Experts may direct that such costs be
treated as Deductions; 
  

 - 52 - 

 C. The Experts shall make their decision with respect to the matter referred for determination by
applying the standard set forth in this Agreement regarding such matter. If this Agreement does not contain a specific standard regarding such matter, then the Experts shall apply the standards applicable to first-class hotels in accordance with the
System Standards, taking into consideration the long-term profitability of the Hotel and the requirement that the Hotel be managed, operated and maintained in accordance with System Standards; and 
  
 D. The terms of engagement of the Experts shall include an obligation on the
part of the Experts to: (i) notify the parties in writing of their decision within forty-five (45) days from the date on which the last Expert has been selected (or such other period as the parties may agree or as set forth herein); and (ii)
establish a timetable for the making of submissions and replies. 
  
 11.21 Waiver of Jury Trial and Consequential and Punitive Damages 
  
 Owner and Manager each hereby absolutely, irrevocably and unconditionally waive trial by jury and the right to claim or receive consequential, incidental, special or punitive damages in any litigation, action, claim,
suit or proceeding, at law or in equity, arising out of, pertaining to or in any way associated with the covenants, undertakings, representations or warranties set forth herein, the relationships of the parties hereto, whether as “Owner”
or “Manager” or otherwise, this Agreement or any other agreement, instrument or document entered into in connection herewith, or any actions or omissions in connection with any of the foregoing 
  
 11.22 Counterparts 
  
 This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, and all of which shall constitute one and the same instrument. Such executed counterparts may be delivered by facsimile which, upon transmission to the other party, shall have the same force and effect as delivery
of the original signed counterpart. The submission of an unsigned copy of the Agreement or an electronic instrument with or without electronic signature to either party shall not constitute an offer or acceptance. This Agreement shall become
effective and binding only upon execution and delivery of the Agreement in non-electronic form by both parties in accordance with this Section 11.22. 
  
 11.23 Extraordinary Events 
  
 If either Owner’s or Manager’s failure to conform to, keep, perform, fulfill, or satisfy any representation, warranty, covenant, undertaking,
obligation, standard, test, or condition set forth in this Agreement, other than an obligation to make monetary payments or provide monetary funding, is caused in whole or in part by one or more Extraordinary Events, such failure shall not
constitute a failure or an Event of Default or Default under this Agreement, and such failure shall be excused for as long as the failure is caused in whole or in part by such Extraordinary Event(s). In order to have any such failure excused
pursuant to this Section 11.23, the party claiming that an Extraordinary Event caused such failure must notify the other party in writing within one hundred eighty (180) days after the Extraordinary Event first begins to affect its performance.

  

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 11.24 Indemnification 
  
 Manager shall indemnify and hold harmless Owner (and any officer, director, employee, advisor, partner or shareholder of
Owner) in respect of, and, at Owner’s request shall defend, any action, cause of action, suit, debt, cost, expense (including, without limitation, reasonable attorneys’ fees and expenses, and the cost of Litigation), claim or demand
whatsoever brought or asserted by any third person whomsoever, at law or in equity, arising by reason of (i) liabilities stemming from general corporate matters of Manager or its majority-owned Affiliates, to the extent such matters are not directly
and primarily related to the Hotel, and (ii) infringement and other claims relating to the Marriott Trademark with respect to the Hotel. 
  
 11.25 Entire Agreement 
  
 The Agreement, together with any other writings signed by the parties expressly stated to be supplemental hereto and together with any instruments to be
executed and delivered pursuant to the Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings and writings, and may be changed only by a written non-electronic instrument that has been duly executed
by the non-electronic signatures of authorized representatives of the parties hereto. 
  
 ARTICLE XII 
  
 DEFINITION OF TERMS 
  
 12.01 Definition
of Terms 
  
 The following terms when used in the Agreement
shall have the meanings indicated: 
  
 “Accounting
Period” shall mean the four (4) week accounting periods having the same beginning and ending dates as Manager’s four (4) week accounting periods, except that an Accounting Period may occasionally contain five (5) weeks when necessary
to conform Manager’s accounting system to the calendar. Manager shall have the right, at its discretion, to modify the definition of Accounting Period to mean a calendar month or such other period of time as is consistent with the accounting
periods that Manager may implement, from time to time, with respect to the Marriott Hotel System. 
  
 “Accounting Period Statement” shall have the meaning ascribed to it in Section 4.01.A. 
  
 “Addendum” shall mean that certain Technical Services and
Pre-Commencement Addendum attached to this Agreement, which is incorporated by reference in this Agreement. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common
control with such Person. For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under 

  

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common control with”) of a Person means the possession, directly or indirectly, of the power: (i) to vote more than fifty percent (50%) of the voting
stock of such Person; or (ii) to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting stock, by contract or otherwise. 
  
 “Agreement” shall mean this Management Agreement between Owner and Manager, including the exhibits attached
hereto. 
  
 “Annual Operating Statement(s)” shall
have the meaning ascribed to it in Section 4.01.C. 
  
 “Annual Profit Transactions Report” shall have the meaning ascribed to it in Section 4.06. 
  
 “Available Cash Flow” shall mean an amount, with respect to each Fiscal Year or portion thereof during the Term, equal to the excess, if
any, of the Operating Profit for such Fiscal Year over the Owner’s Priority for such Fiscal Year or portion thereof. 
  
 “Audit” shall have the meaning ascribed to it in Section 4.02. 
  
 “Base Management Fee” shall mean an amount payable to Manager as a Deduction from Gross Revenues equal to
three percent (3%) of Gross Revenues for each Fiscal Year or portion thereof. 
  
 “Books and Records” shall mean books of control and account pertaining to the operations of the Hotel that are maintained at the Hotel. 
  
 “Building Estimate(s)” shall have the meaning ascribed to it in Section 5.03.A. 
  
 “Business Plan” shall have the meaning ascribed to it in
Section 4.08. 
  
 “Capital Expenditure(s)” shall
mean the expenses necessary for non-routine, major repairs, alterations, improvements, renewals, replacements, and additions to the Hotel including, without limitation, to the structure, the exterior facade and all of the mechanical, electrical,
heating, ventilating, air conditioning, plumbing or vertical transportation elements of the Hotel building, together with all other expenditures which are classified as “capital expenditures” under generally-accepted accounting principles.
Capital Expenditures shall not include Routine Capital Expenditures. 
  
 “Case Goods” shall mean furniture and furnishings used in the Hotel, including, without limitation: chairs, beds, chests, headboards, desks, lamps, tables, television sets, mirrors, pictures, wall decorations and similar
items. 
  
 “CC&R(s)” shall have the meaning
ascribed to it in Section 8.04. 
  

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 “Central Office Services” are those services described in Exhibit B attached hereto.

  
 “Central Reservation Services” shall have the
meaning set forth in Exhibit C. 
  
 “Chain
Services” shall have the meaning ascribed to it in Section 1.11. 
  
 “Chain Services Report” shall have the meaning ascribed to it in Section 4.07. 
  
 “Competitive Set” shall mean the group of full-service hotels that are generally within the same hotel market and market segment as the
Hotel. As of the Effective date, the parties agree that the Competitive Set shall consist of:                     . If any of such hotels
identified in this definition, subsequent to the Effective date, either changes its chain affiliation or ceases to operate or otherwise ceases to reflect the general criteria set forth in the first sentence of this definition, Owner and Manager
agree to mutually, reasonably and in good faith, discuss appropriate changes to the foregoing list of the hotels that shall comprise the Competitive Set. Disputes regarding such changes to the Competitive Set will be resolved by the panel of Experts
in accordance with the provisions of Section 11.20. 
  
 “Competitive Terms Standard” shall mean the standard to be employed in determining whether a Profit Transaction can be implemented with respect to the Hotel. The Competitive Terms Standard shall be deemed satisfied if the
terms of the Profit Transaction are consistent with commercially competitive terms available to parties contracting for similar goods or services in the marketplace relevant to the Hotel, taking into account price, quality, reputation and
reliability of the vendor, the need of the Hotel and the Marriott Hotel System for reliability in performance and/or quality to satisfy guest needs, the scale of the purchase, and such other factors reasonably appropriate to determine whether
particular terms reflect competitive terms in the marketplace. In determining, pursuant to the foregoing, whether such terms are competitive, the goods and/or services that are being purchased shall be grouped in reasonable categories, rather than
being compared item by item. 
  
 “Cost
Transaction” shall have the meaning ascribed to it in Section 1.13.F. 
  
 “Cure Amount” shall have the meaning ascribed to it in Section 2.02.B.1. 
  
 “Cure Notice” shall have the meaning ascribed to it in Section 2.02.B. 
  
 “Cure Payment” shall have the meaning ascribed to it in Section 2.02.B. 
  
 “Customer Information” shall mean customer data, customer
lists and personal guest profiles and data regarding guest preferences, including, without limitation, any data derived from or contained in any database controlled by Manager or its Affiliates (including, without limitation, the Marriott Rewards
Program). 
  

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 “Deductions” shall mean the following expenses incurred by Manager in operating the
Hotel: 
  
 1. the cost of sales, including,
without limitation, compensation, benefits and related administration costs, payroll taxes, ERISA-related liabilities, pension-fund withdrawal liabilities, and other costs related to employees of Manager (or one of its Affiliates) who are working
for the benefit of the Hotel (regardless of whether such employees are located at the Hotel or elsewhere); provided that the foregoing costs shall not include the salary and other employee costs of Manager’s corporate executive staff who are
located at Manager’s corporate headquarters; 
  
 2. departmental expenses incurred at departments within the Hotel; administrative and general expenses; the cost of marketing incurred by the Hotel; advertising and business promotion incurred by the Hotel; heat, light, and power; computer
line charges; and routine repairs, maintenance and minor alterations treated as Deductions under Section 5.01; 
  
 3. the cost of Inventories and Fixed Asset Supplies used or consumed in the operation of the Hotel; 
  
 4. a reasonable reserve for uncollectible accounts
receivable as determined by Manager; 
  
 5. all
costs and fees of independent professionals or other third parties who are retained by Manager or Owner to perform services required or permitted hereunder; 
  
 6. all costs and fees of technical consultants, professionals and operational experts who are retained or employed by Manager, a Marriott
Company, and their Affiliates for specialized services (including, without limitation, quality assurance inspectors, personnel providing architectural, technical or procurement services for the Hotel, tax consultants, and personnel providing legal
services in connection with matters involving the Hotel) and the cost of attendance by employees of the Hotel at training and manpower development programs designated by Manager; 
  
 7. the Base Management Fee paid to or retained by Manager; 
  
 8. insurance costs and expenses as provided in Article VI;

  
 9. taxes, if any, payable by or assessed
against Manager related to this Agreement or to Manager’s operation of the Hotel (exclusive of Manager’s income taxes or franchise taxes); 
  
 10. all Impositions; 
  

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 11. the amount of any transfers into the FF&E Reserve required pursuant to Section
5.02; 
  
 12. the Hotel’s share of costs and
expenses incurred in connection with sales, advertising, promotion and marketing programs developed for the Marriott Hotel System, including guest loyalty and recognition programs and the Marriott Rewards Program, where such expenses are not
deducted as departmental expenses under paragraph 2 above or as Chain Services pursuant to paragraph 13 below; 
  
 13. the Hotel’s share of the charges for Chain Services; 
  
 14. all costs and expenses of compliance by Manager with applicable Legal Requirements pertaining to the
operation of the Hotel; 
  
 15. the Hotel’s
pro rata share of costs and expenses (including those relating to development and implementation) incurred in connection with providing services to multiple hotels and/or other facilities in substitution for or in association with services that are
or would have been performed or procured by individual hotels, which may be more effectively performed on a shared or group basis; and 
  
 16. such other costs and expenses incurred by Manager (either at the Hotel or elsewhere) as are specifically provided for elsewhere in
this Agreement or are otherwise reasonably necessary for the proper and efficient operation of the Hotel. 
  
 The term “Deductions” shall not include: (a) debt service payments pursuant to any Mortgage on the Hotel; (b) payments pursuant to equipment
leases or other forms of financing obtained for the FF&E located in or connected with the Hotel, unless Manager has previously given its consent to such equipment lease and/or financing; (c) rental payments pursuant to any ground lease of the
Site; or (d) depreciation on the Hotel or any of its contents. All of the foregoing items listed in this paragraph shall be paid by Owner from its own funds. In no event shall the costs or expenses of providing the Central Office Services be treated
as Deductions, or otherwise be reimbursed out of Gross Revenues, it being the intent of the parties that all such costs and expenses are to be paid by Manager (or its Affiliates) from its own funds. 
  
 “Default” shall have the meaning ascribed to it in Section
9.01. 
  
 “Direct Deduction” shall mean a
Deduction relating to a system or program performed for the Hotel by or through Manager or one of the Related Parties that is described in the listing of Direct Deductions attached hereto as Exhibit D, plus such additional systems and programs that
may be added after the date hereof in accordance with this Agreement. The term Direct Deduction shall not include Chain Services or Central Office Services. 
  

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 “Direct Deductions Report” shall have the meaning ascribed to it in Section 4.05.A.

  
 “DSCR” shall have the meaning set forth in
Section 8.02.A.2. 
  
 “Effective date” shall have
the meaning ascribed to it in the Preamble. 
  
 “Emergency
Requirements” shall mean any of the following events or circumstances: (i) an emergency threatening the Hotel, or the life or property of its guests, invitees or employees; (ii) a Legal Requirement; (iii) a condition, the continuation of
which would subject Manager and/or Owner to civil or criminal liability; or (iv) an Extraordinary Event that prevents Manager from managing or operating the Hotel pursuant to System Standards. 
  
 “Employee Claims” shall mean any and all claims (including
all fines, judgments, penalties, costs, Litigation and/or arbitration expenses, attorneys’ fees and expenses, and costs of settlement with respect to any such claim) by any employee or employees of Manager against Owner or Manager with respect
to the employment at the Hotel of such employee or employees. “Employee Claims” shall include, without limitation, the following: (i) claims that are eventually resolved by arbitration, by Litigation or by settlement; (ii) claims that also
involve allegations that any applicable employment-related contracts affecting the employees at the Hotel have been breached; and (iii) claims that involve allegations that one or more of the Employment Laws has been violated; provided, however,
that “Employee Claims” shall not include claims for worker compensation benefits or for unemployment benefits. 
  
 “Employment Laws” shall mean any federal, state or local law (including the common law), statute, ordinance, rule, regulation, order or
directive with respect to employment, conditions of employment, benefits, compensation, or termination of employment that currently exists or may exist at any time during the Term, including, but not limited to, Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act, the Workers Adjustment and Retraining Act, the Occupational Safety and Health Act, the Immigration Reform and Control Act of 1986, the Polygraph Protection Act of 1988 and the Americans With
Disabilities Act of 1990. 
  
 “Environmental
Laws” shall have the meaning ascribed to it in Section 11.08. 
  
 “Event of Default” shall have the meaning ascribed to it in Section 9.01. 
  
 “Expert” shall mean an independent, nationally recognized consulting firm or individual with a minimum of ten (10) years of experience in
the lodging industry and qualified to resolve the issue in question, provided that an Expert shall not include any individual who is, as of the date of appointment or within six (6) months prior to such date, employed, either directly or indirectly
as a consultant in connection with any other matter, by a party attempting to appoint such person. 
  
 “Extraordinary Event” shall mean any of the following events (but only to the extent that such events have a direct material effect on
the Hotel): acts of nature (including hurricanes, 

  

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typhoons, tornadoes, cyclones, other severe storms, winds, lightning, floods, earthquakes, volcanic eruptions, fires, explosions, disease, or epidemics);
fires and explosions caused wholly or in part by human agency; acts of war or armed conflict; riots or other civil commotion; terrorism (including hijacking, sabotage, chemical or biological events, nuclear events, disease-related events, bombing,
murder, assault and kidnapping), or the threat thereof; strikes or similar labor disturbances; embargoes or blockades; shortage of critical materials or supplies; action or inaction of governmental authorities which have an impact upon the Hotel
(including restrictions on room rates or wages or other material aspects of operation; restrictions on financial, transportation or information distribution systems; or the revocation or refusal to grant licenses or permits, where such revocation or
refusal is not due to the fault of the party whose performance is to be excused for reasons of the Extraordinary Event); and any other events beyond the reasonable control of Owner or Manager, excluding, however, general economic and/or market
conditions not caused by any of the events described herein. 
  
 “FF&E” shall mean furniture, furnishings, fixtures, Soft Goods, Case Goods, signage, audio-visual equipment, kitchen appliances, vehicles, carpeting and equipment, including front desk and back-of-the-house computer
equipment, but shall not include Fixed Asset Supplies or Software. 
  
 “FF&E Estimate” shall have the meaning ascribed to it in Section 5.02.C. 
  
 “FF&E Reserve” shall have the meaning ascribed to it in Section 5.02.A. 
  
 “Fiscal Year” shall mean Manager’s Fiscal Year which, as of the Effective date, ends at midnight on
the Friday closest to December 31 in each calendar year; the new Fiscal Year begins on the Saturday immediately following said Friday. Any partial Fiscal Year between the Effective date and the commencement of the first full Fiscal Year shall
constitute a separate Fiscal Year. A partial Fiscal Year between the end of the last full Fiscal Year and the Termination of this Agreement shall also constitute a separate Fiscal Year. If Manager’s Fiscal Year is changed in the future,
appropriate adjustment to this Agreement’s reporting and accounting procedures shall be made; provided, however, that no such change or adjustment shall alter the Term or in any way reduce the distributions of Operating Profit or other payments
due hereunder. 
  
 “Fixed Asset Supplies” shall
mean items included within “Property and Equipment” under the Uniform System of Accounts that may be consumed in the operation of the Hotel or are not capitalized, including, but not limited to, linen, china, glassware, tableware,
uniforms, and similar items, whether used in connection with public space or Guest Rooms. 
  
 “Foreclosure” shall mean any exercise of the remedies available to a Mortgagee, upon a default under the Mortgage held by such Mortgagee, which results in a transfer of title to or control or
possession of the Hotel. The term “Foreclosure” shall include, without limitation, any one or more of the following events, if they occur in connection with a default under a Mortgage: (i) a transfer by judicial foreclosure; (ii) a
transfer by deed in lieu of foreclosure; (iii) the appointment by a court of a receiver to assume possession of the Hotel; (iv) a transfer of either 

  

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ownership or control of the Owner, by exercise of a stock pledge or otherwise; (v) a transfer resulting from an order given in a bankruptcy, reorganization,
insolvency or similar proceeding; (vi) if title to the Hotel is held by a tenant under a ground lease, an assignment of the tenant’s interest in such ground lease; or (vii) a transfer through any similar judicial or non-judicial exercise of the
remedies held by the Mortgagee. 
  
 “GDP
Deflator” shall mean the “Gross Domestic Product Implicit Price Deflator” issued from time to time by the United States Bureau of Economic Analysis of the Department of Commerce, or if the aforesaid GDP Deflator is not at such
time so prepared and published, any comparable index selected by Owner and reasonably satisfactory to Manager (a “Substitute Index”) then prepared and published by an agency of the Government of the United States, appropriately adjusted
for changes in the manner in which such index is prepared and/or year upon which such index is based. Any dispute regarding the selection of the Substitute Index or the adjustments to be made thereto shall be settled by the panel of Experts in
accordance with Section 11.20. Except as otherwise expressly stated herein, whenever a number or amount is required to be “adjusted by the GDP Deflator,” or similar terminology, such adjustment shall be equal to the percentage increase or
decrease in the GDP Deflator which is issued for the month in which such adjustment is to be made (or, if the GDP Deflator for such month is not yet publicly available, the GDP Deflator for the most recent month for which the GDP Deflator is
publicly available) as compared to the GDP Deflator which was issued for the month in which the Effective date occurred. 
  
 “Gross Revenues” shall mean all revenues and receipts of every kind derived from operating the Hotel and all departments and parts
thereof, including, but not limited to: income (from both cash and credit transactions) from rental of Guest Rooms, telephone charges, stores, offices, exhibit or sales space of every kind; license, lease and concession fees and rentals (not
including gross receipts of licensees, lessees and concessionaires); income from vending machines; income from parking; health club membership fees; food and beverage sales; wholesale and retail sales of merchandise; service charges; and proceeds,
if any, from business interruption or other loss of income insurance (provided that for purposes of calculating Gross Revenues, such proceeds shall be grossed up, as necessary, to the extent such proceeds were calculated to account solely for
management fees and/or Owner distributions); provided, however, that Gross Revenues shall not include the following: gratuities to employees of the Hotel; federal, state or municipal excise, sales or use taxes or any other taxes collected directly
from patrons or guests or included as part of the sales price of any goods or services; proceeds from the sale of FF&E; interest received or accrued with respect to the funds in the FF&E Reserve; any refunds, rebates, discounts and credits
of a similar nature, given, paid or returned in the course of obtaining Gross Revenues or components thereof; insurance proceeds (other than proceeds from business interruption or other loss of income insurance); condemnation proceeds (other than
for a temporary taking); or any proceeds from any Sale of the Hotel or from the refinancing of any debt encumbering the Hotel. 
  
 “Guest Room” shall mean a separately-keyed lodging unit in the Hotel. 
  

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 “Hazardous Materials” shall have the meaning ascribed to it in Section 11.08.

  
 “Hotel” shall mean the Site together with the
following: (i) the Hotel Improvements and all other improvements constructed or to be constructed on the Site pursuant to this Agreement; (ii) all FF&E, Fixed Asset Supplies and Inventories installed or located on the Site or in the Hotel
Improvements; and (iii) all easements or other appurtenant rights thereto. 
  
 “Hotel Improvements” shall have the meaning ascribed to it in the Recitals. 
  
 “Impositions” shall have the meaning ascribed to it in Section 4.11. 
  
 “Incentive Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount
payable to Manager that is equal to twenty percent (20%) of Available Cash Flow for such Fiscal Year or portion thereof. 
  
 “Initial FF&E Amount” shall have the meaning ascribed to it in Section 5.05.C. 
  
 “Institutional Lender” shall mean a foreign or domestic
commercial bank, trust company, savings bank, savings and loan association, life insurance company, real estate investment trust, pension trust, pension plan or pension fund, a public or privately-held fund engaged in real estate and/or corporate
lending, or any other financial institution commonly known as an institutional lender (or any Affiliate thereof) having a minimum paid up capital (or net assets in the case of a pension fund) of One Hundred Million Dollars ($100,000,000); provided
further that a Person may not be an “Institutional Lender” if such Person, or any of its Affiliates or any other Person related to such Person that is proscribed by applicable law, is a Specially Designated National or Blocked Person.

  
 “Insurance Retention” shall have the meaning
ascribed to it in Section 6.02.F. 
  
 “Intellectual
Property” shall mean: (i) all Software, including the data and information processed or stored thereby; (ii) all manuals, brochures, directives, policies, programs and other information issued by Manager to its employees at the Hotel or
otherwise used in the operation of the Hotel or any other hotel in the Marriott Hotel System; (iii) Customer Information; (iv) all Marriott Trademarks; and (v) all Marriott (or other Marriott Company) trade secrets, confidential information and all
other information, materials, and copyrightable or patentable subject matter developed, acquired, licensed or used by any Marriott Company in the operation of the Hotel or in any other hotel in the Marriott Hotel System, including, without
limitation, materials relating to sales and marketing programs, revenue and inventory management programs, processes or systems, brand and pricing strategies, business and technology plans, and research and development reports. The foregoing shall
apply regardless of the form or medium involved (e.g., paper, electronic, tape, tangible or intangible). 
  

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 “Inventories” shall mean “Inventories” as defined in the Uniform System of
Accounts, such as, but not limited to, provisions in storerooms, refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical supplies; stationery; and other expensed supplies and
similar items. 
  
 “Landlord” shall have the
meaning set forth in the Recitals. 
  
 “Lease
Agreement” shall mean that certain lease dated as of the Effective date pursuant to which Landlord leases the Site to Owner. 
  
 “Legal Requirement(s)” shall mean any federal, state or local law, code, rule, ordinance, regulation or order of any governmental
authority or agency having jurisdiction over the business or operation of the Hotel or the matters which are the subject of this Agreement, including, without limitation, the following: (i) any building, zoning or use laws, ordinances, regulations
or orders; and (ii) Environmental Laws. 
  
 “Litigation” shall mean: (i) any cause of action (including, without limitation, bankruptcy or other debtor/creditor proceedings) commenced in a federal, state or local court; or (ii) any claim brought before an
administrative agency or body (for example, without limitation, employment discrimination claims). 
  
 “Manager” shall have the meaning ascribed to it in the Preamble hereto or shall mean any successor or permitted assign, as applicable.

  
 “Management Fees” shall mean the Base
Management Fee and the Incentive Management Fee. 
  
 “Marriott” shall mean Marriott International, Inc., a Delaware corporation, and its successors and assigns. 
  
 “Marriott Company(ies)” shall mean Manager, Marriott, and any Affiliate of Manager or Marriott. 
  
 “Marriott Funding Obligations” shall have the meaning
ascribed to it in Section 2.03. 
  
 “Marriott Hotel
System” shall mean the chain of full-service hotels located in the continental United States and Canada and managed by Marriott (or one or more of its Affiliates) that is, as of the Effective date, operated under the trade name
“Marriott Hotels and Resorts.” 
  
 “Marriott
Rewards Program” shall mean the frequent-guest affinity program of Marriott known as “Marriott Rewards,” together with any similar or successor program or other affinity program instituted in conjunction with “Marriott
Rewards” or any similar or successor program thereof. 
  

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 “Marriott Trademark” shall mean (i) the name and mark “Marriott”; (ii) the
“M” logo; and (iii) any word, name, device, symbol, logo, slogan, design, brand, service mark, Trade Name, other distinctive feature or any combination of the foregoing, whether registered or unregistered, and whether or not such term
contains the “Marriott” mark, that is used in connection with the Hotel or by reason of extent of usage is associated with hotels in the Marriott Hotel System. 
  
 “MBS Charges” shall have the meaning ascribed to it in Section 4.04. 
  
 “MBS Systems” shall mean the processes developed by Marriott
that consolidate, on a system-wide basis in the Marriott Hotel System, into one or more shared services centers, certain accounts payable, billing and accounts receivable, revenue capture subsidiary ledger, human resources management systems and
related functions and procedures, or any similar or successor systems thereof. 
  
 “Minor Casualty” shall mean any fire or other casualty which results in damage to the Hotel and/or its contents, to the extent that the total cost of repairing and/or replacing the damaged portion of
the Hotel to the same condition as existed previously does not exceed an amount equal to ten percent (10%) of the total insured value of the Hotel (which amount shall in no event be less than
             Million Dollars ($    ,000,000), as adjusted by the GDP Deflator). 
  
 “Mortgage(s)” shall mean any mortgage, deed of trust, or security document encumbering the Hotel and/or the
Site. 
  
 “Mortgagee(s)” shall mean the holder of
any Mortgage. 
  
 “Notice of Proposed Sale” shall
have the meaning ascribed to it in Section 10.02.B. 
  
 “Operating Accounts” shall have the meaning ascribed to it in Section 4.03.A. 
  
 “Operating Loss” shall mean a negative Operating Profit. 
  
 “Operating Profit” shall mean, with respect to any given period of time, the excess of Gross Revenues over
Deductions (each calculated in accordance with this Agreement and the Uniform System of Accounts). 
  
 “Owner” shall have the meaning ascribed to it in the Preamble or shall mean any successor or permitted assign, as applicable. 

 
 “Owner Agreement” shall have the meaning set forth in the
Recitals. 
  

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 “Owner’s Priority” shall mean, with respect to each Fiscal Year (pro rated for any
partial Fiscal Year), a dollar amount equal to the sum of (i)                      Dollars
($                    ) plus (ii) ten and three quarters percent (10.75%) of the amount of all Capital Expenditures funded by Owner pursuant
to Section 5.03 (excluding (x) all costs relating to the Renovation and (y) all costs related to the correction of errors, omissions or defects in the design, construction or renovation of the Hotel). The parties agree that with respect to Capital
Expenditures funded by Owner and added to the calculation of Owner’s Priority pursuant to subsection (ii) above, such amount shall be added to the amount described in subsection (ii) above (i.e., the amount that will be multiplied by ten and
three quarters percent (10.75%) as set forth above) commencing with the second Accounting Period after the Accounting Period in which the project for which such Capital Expenditure was made is completed. 
  
 “Parent Owner” shall mean any Person that controls, directly
or indirectly, Owner. For the purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) of a Person means the possession, directly or
indirectly, of the power: (i) to vote more than fifty percent (50%) of the voting stock of such Person; or (ii) to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting stock, by
contract or otherwise. 
  
 “Performance Termination
Commencement Year” shall mean the later to occur of (i)                      or (ii) the
             (    th)
full Fiscal Year after the date on which Owner completes the Renovation. 
  
 “Performance Termination Threshold” shall mean, with respect to each Fiscal Year, an amount equal to
                     percent (    ) of the Owner’s Priority for such Fiscal Year. 
  
 “Person” means an individual (and the heirs, executors,
administrators, or other legal representatives of an individual), a partnership, a corporation, limited liability company, a government or any department or agency thereof, a trustee, a trust and any unincorporated organization. 
  
 “Phase I Report” shall mean that certain Phase I
Environmental Site Assessment dated                     . 
  
 “Prime Rate” shall mean the “prime rate” of interest announced from time to time in the
“Money Rates” section of the Wall Street Journal (Eastern Edition). 
  
 “Profit Transaction” shall have the meaning ascribed to it in Section 1.13. 
  
 “Prospectus” shall have the meaning ascribed to it in Section 11.12.B. 
  
 “Qualified Mortgage” shall have the meaning ascribed to it in Section 8.02. 
  

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 “Related Party(ies)” shall mean any Person that, directly or indirectly, is controlled
by or is under common control with Marriott or Manager. For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) of a Person
means the possession, directly or indirectly, of: (i) more than thirty-five percent (35%) of the equity of such Person; or (ii) the power to direct or cause the direction of the management and policies of such Person, whether through the ownership
of voting stock, by contract or otherwise. 
  
 “Renovation” shall have the meaning ascribed to it in Section 5.05.C. 
  
 “Renovation Cap” shall have the meaning ascribed to it in Section 5.05.C. 
  
 “Renovation Scope” shall have the meaning ascribed to it in Section 5.05.C. 
  
 “Restricted Area” shall mean that area described in the
narrative that is set forth in Exhibit G-1 and that is shown on the map attached hereto as Exhibit G-2. If there is any conflict between the narrative description in Exhibit G-1 and the map shown on Exhibit G-2, the narrative description shall
govern. 
  
 “Restricted Hotel” shall mean any
full-service hotel operating under the “Marriott” trade name as a member of the Marriott Hotel System. The term “Restricted Hotel” shall not include any one or more of the following: (i) any existing (as of the Effective date)
full-service hotel operating under the “Marriott” trade name as a member of the Marriott Hotel System within the Restricted Area; (ii) any Ritz-Carlton hotel, Courtyard by Marriott Hotel, Renaissance Hotel, Conference Center by Marriott,
Residence Inn by Marriott, Fairfield Inn, Marriott Vacation Club International, SpringHill Suites, TownePlace Suites or any other lodging product (including time share or interval ownership facilities) which is not operated as a full-service hotel
under the “Marriott” trade name and as a member of the Marriott Hotel System; (iii) any hotel or hotels which are members of a chain of hotels (provided that such chain has a minimum of four (4) or more hotels in operation), all or
substantially all (but in no event less than three (3) hotels) of which is acquired by, or merged with, or franchised by or joined through marketing agreement with, Manager or one of its Affiliates (or the operation of which is transferred to
Manager or one of its Affiliates); (iv) any hotel or hotels which are members of a group of hotels which is acquired by, or merged with, or franchised by or joined through marketing agreement with, Manager or one of its Affiliates, or the operation
of which is transferred to Manager or one of its Affiliates, provided that such group of hotels contains no fewer than three (3) hotels; (v) any future lodging product developed by Manager or one of its Affiliates which is not included within the
Marriott Hotel System; or (vi) in the event that any existing hotel described in clause (i) above ceases to operate under the “Marriott” trade name as a member of the Marriott Hotel System, then for each such hotel (if any), an additional
hotel that may operate under the “Marriott” trade name as a member of the Marriott Hotel System. 
  

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 “Revenue Data Publication” shall mean Smith’s STAR Report, a monthly publication
distributed by Smith Travel Research, Inc. of Gallatin, Tennessee, or an alternative source, reasonably satisfactory to both parties, of data regarding the Revenue Per Available Room of hotels in the general trade area of the Hotel. If such
Smith’s STAR Report is discontinued in the future, or ceases (in the reasonable opinion of either Owner or Manager) to be a satisfactory source of data regarding the Revenue Per Available Room of various hotels in the general trade area of the
Hotel, Manager shall select an alternative source for such data, subject to Owner’s approval. If the parties fail to agree on such alternative source within a reasonable period of time, the matter shall be resolved by the panel of Experts in
accordance with the provisions of Section 11.20. 
  
 “Revenue Index” shall mean that fraction that is equal to (a) the Revenue Per Available Room for the Hotel divided by (b) the average Revenue Per Available Room for the hotels in the Competitive Set, as set forth in the
Revenue Data Publication. Appropriate adjustments to the Revenue Index shall be made in the event of a major renovation of the Hotel. 
  
 “Revenue Index Threshold” shall mean the fraction equal to one hundred (100) divided by one hundred (100), or 1.00 as a decimal. However,
if the entry of a new hotel into the Competitive Set (or the removal of a hotel from the Competitive Set) causes significant variations in the Revenue Index that do not reflect the Hotel’s true position in the relevant market, appropriate
adjustments shall be made to the Revenue Index Threshold by mutual consent of Owner and Manager. 
  
 “Revenue Per Available Room” shall mean (i) the term “revenue per available room” as defined by the Revenue Data Publication,
or (ii) if the Revenue Data Publication is no longer being used (as more particularly set forth in the definition of “Revenue Data Publication”), the aggregate gross room revenues of the hotel in question for a given period of time divided
by the total room nights for such period. If clause (ii) of the preceding sentence is being used, a “room” shall be an available hotel guestroom that is keyed as a single unit. 
  
 “Routine Capital Expenditures” shall mean certain routine, non-major expenditures which are classified as
“capital expenditures” under generally accepted accounting principles, but which will be funded from the FF&E Reserve (pursuant to Section 5.02), rather than pursuant to the provisions of Section 5.03. Routine Capital Expenditures
consist of the following types of expenditures: exterior and interior repainting; resurfacing building walls and floors; resurfacing parking areas; replacing folding walls; and miscellaneous similar expenditures (all such types of expenditures to be
in accordance with Manager’s policies as then generally implemented throughout the Marriott Hotel System). 
  
 “Sale of the Hotel” shall mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary, of
the fee simple or leasehold title to the Site and/or the Hotel. For purposes of this Agreement, a Sale of the Hotel shall also include: (i) a lease (or sublease) of all or substantially all of the Hotel or Site (other than a lease of the Hotel or
Site by a Real Estate Investment Trust (“REIT”) to a taxable REIT subsidiary); or (ii) any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary, in a 

  

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single transaction or a series of transactions, of the controlling interest in Owner. The phrase “controlling interest,” as used in the preceding
sentence, shall mean either: (x) the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the shares of Owner (through ownership of such shares or by contract); or (y) the possession, directly
or indirectly, of the power to direct or cause the direction of the management or policies of Owner. Notwithstanding the foregoing, a Sale of the Hotel shall not include any sale, assignment, transfer or other disposition of any limited partnership
unit issued by DiamondRock Hospitality Limited Partnership or any share of common stock in DiamondRock Hospitality Company. 
  
 “Site” shall have the meaning ascribed to it in the Recitals. 
  
 “Soft Goods” shall mean all fabric, textile and flexible plastic products (not including items which are
classified as “Fixed Asset Supplies”) which are used in furnishing the Hotel, including, without limitation: carpeting, drapes, bedspreads, wall and floor coverings, mats, shower curtains and similar items. 
  
 “Software” shall mean all computer software and accompanying
documentation (including all future upgrades, enhancements, additions, substitutions and modifications thereof), other than computer software which is generally commercially available, which are used by Manager in connection with operating or
otherwise providing services to the Hotel and/or the Marriott Hotel System, including without limitation the property management system, the reservation system and the other electronic systems used by Manager in connection with operating or
otherwise providing services to the Hotel and/or the Marriott Hotel System. 
  
 “Specially Designated National or Blocked Person” shall mean: (i) persons designated by the U.S. Department of Treasury’s Office of Foreign Assets Control, or other governmental entity, from time
to time as a “specially designated national or blocked person” or similar status, (ii) a person described in Section 1 of U.S. Executive Order 13224 issued on September 23, 2001, or (iii) a person otherwise identified by government or
legal authority as a person with whom Manager or its Affiliates are prohibited from transacting business. 
  
 “Subordination Agreement” shall have the meaning ascribed to it in Section 8.03. 
  
 “Subsequent Owner” shall mean any individual or entity that
acquires title to or control or possession of the Hotel at or through a Foreclosure (together with any successors or assigns thereof), including, without limitation, (i) Mortgagee, (ii) any purchaser of the Hotel from Mortgagee, or any lessee of the
Hotel from Mortgagee, or (iii) any purchaser of the Hotel at Foreclosure. 
  
 “System Standards” shall mean any one or more (as the context requires) of the following three (3) categories of standards: (i) operational standards (for example, services offered to guests, quality
of food and beverages, cleanliness, staffing and employee compensation and benefits, Chain Services, frequent traveler programs such as the Marriott Rewards Program and 

  

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other similar programs, etc.); (ii) physical standards (for example, quality of the Hotel Improvements, FF&E, and Fixed Asset Supplies, frequency of
FF&E replacements, etc.); and (iii) technology standards (for example, those relating to software, hardware, telecommunications, high speed internet access, systems security and information technology); each of such standards shall be the
standard which is generally prevailing or in the process of being implemented at other hotels in the Marriott Hotel System, including all services and facilities in connection therewith that are customary and usual at comparable hotels in the
Marriott Hotel System. 
  
 “Term” shall have the
meaning ascribed to it in Section 2.01. 
  
 “Termination” shall mean the expiration or sooner cessation of this Agreement. 
  
 “Termination Notice” shall have the meaning ascribed to it in Section 2.02.A. 
  
 “Total Casualty” shall mean any fire or other casualty which
results in damage to the Hotel and its contents to the extent that the total cost of repairing and/or replacing the damaged portion of the Hotel to the same condition as existed previously would be forty percent (40%) or more of the then total
replacement cost of the Hotel. 
  
 “Trade Name”
shall mean any name, whether informal (such as a fictitious name or d/b/a) or formal (such as the full legal name of a corporation or partnership) which is used to identify an entity. 
  
 “Uniform System of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, Ninth
Revised Edition, 1996, as published by the Educational Institute of the American Hotel & Motel Association, as revised from time to time to the extent such revision has been or is in the process of being generally implemented within the Marriott
Hotel System. 
  
 “Unrestricted Rebate” shall
have the meaning ascribed to it in Section 1.15.B. 
  
 “Working Capital” shall mean funds that are used in the day-to-day operation of the business of the Hotel, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, amounts
deposited in operating bank accounts, receivables, amounts deposited in payroll accounts, prepaid expenses and funds required to maintain Inventories, less accounts payable and accrued current liabilities. 
  
 “WARN Act” shall mean the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. 2101, et seq. 
  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under seal as of the day
and year first written above. 
  

			
	OWNER:
	
	                                      
                                      ,
LLC
	a
                                        
                                       
 
		
	 By: 
	 	 

			
	 Print Name: 
	 	 

			
	 Title: 
	 	 
	
	MANAGER:
	
	MARRIOTT HOTEL SERVICES, INC.,
a Delaware corporation
		
	 By: 
	 	 

			
	 Print Name: 
	 	 

			
	 Title:

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