Document:

CNS RESPONSE, INC.

 

SECOND AMENDED AND RESTATED SECURITY
AGREEMENT

 

This SECOND AMENDED
AND RESTATED SECURITY AGREEMENT (this “Agreement”), dated as of August ___, 2012, is entered into by
and between CNS Response, Inc., a Delaware corporation (the “Company”), and David B. Jones, as administrative
agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined below).

 

WHEREAS, the Company
issued convertible promissory notes (including any subsequent amendments, the “October 2010 Notes”) pursuant
to a certain Note and Warrant Purchase Agreement (including any subsequent amendments, the “October 2010 Purchase Agreement”),
dated as of October 1, 2010, between the Company and the investors signatory thereto (such investors, the “October
2010 Noteholders”);

 

WHEREAS, the Company
issued convertible promissory notes (including any subsequent amendments, the “January 2011 Notes”) pursuant
to a certain Note and Warrant Purchase Agreement (including any subsequent amendments, the “January 2011 Purchase Agreement”),
dated as of January 20, 2011, between the Company and the investors party thereto (such investors, the “January 2011
Noteholders”);

 

WHEREAS, the Company
issued convertible promissory notes (including any subsequent amendments, the “November 2011 Notes”)
pursuant to a certain Amended and Restated Note and Warrant Purchase Agreement (including any subsequent amendments, the “November
2011 Purchase Agreement”), dated as of November 11, 2011, between the Company and the investors party thereto (such
investors, the “November 2011 Noteholders”);

 

WHEREAS, the Company
entered into a Security Agreement, dated as of October 1, 2010, between the Company and John Pappajohn, as administrative agent,
for the October 2010 Noteholders, as amended and restated by that certain Amended and Restated Security Agreement, dated as of
September 30, 2011, between the Company and Paul Buck, as administrative agent (together, the “Prior Security Agreement”),
which related to the October 2010 Notes, January 2011 Notes and November 2011 Notes;

 

WHEREAS, the Company
wishes to issue senior secured convertible promissory notes (the “Senior Notes”) in the aggregate principal
amount of $2 million to investors (the “Senior Noteholders”), such amount subject to increase at the
discretion of the Company’s Board of Directors, pursuant to a new Note and Warrant Purchase Agreement, dated on or about
the date hereof (the “New Purchase Agreement”);

 

WHEREAS, the October
2010 Noteholders, the January 2011 Noteholders, the November 2011 Noteholders and the Senior Noteholders are collectively referred
to herein as the “Investors”, the October 2010 Purchase Agreement, January 2011 Purchase Agreement, November
2011 Purchase Agreement and the New Purchase Agreement are collectively referred to herein as the “Purchase Agreements”
and the October 2010 Notes, the January 2011 Notes, the November 2011 Notes, and the Senior Notes are collectively referred to
herein as the “Notes”;

 

    	 

    	 

    

 

WHEREAS, the Company
wishes to amend and restate the Prior Security Agreement to provide for the grant of (i) a first position security interest in
the Collateral (as defined below) to the Senior Noteholders with respect to the Senior Notes, (ii) a second position security interest
in the Collateral to the October 2010 Noteholders with respect to the October 2010 Notes, which security interest will be subordinated
to the security interest in the Collateral granted to the Senior Noteholders, and (iii) a third position security interest in the
Collateral to the January 2011 Noteholders and the November 2011 Noteholders with respect to the January 2011 Notes and the November
2011 Notes, as applicable, which security interest will be subordinated to the security interest in the Collateral granted to the
Senior Noteholders and the October 2010 Noteholders.

 

WHEREAS, the
obligations of each Investor to the Company under the Purchase Agreements are conditioned upon, among other things, the execution
and delivery by the Company of an agreement in the form hereof to secure (a) the due and punctual payment of (i) the principal
of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Notes, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary obligations, including
fees (including fees and disbursements of counsel), costs, expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Company to the Investors under
the Purchase Agreements and the other Transaction Documents and (b) the due and punctual performance of all covenants, agreements,
obligations and liabilities of the Company under or pursuant to the Purchase Agreements and the other Transaction Documents (all
of the obligations described in the preceding clauses (a) and (b) being referred to herein collectively as the “Obligations”).

 

NOW THEREFORE, in consideration
of these premises and in order to induce the Investors to enter into, or amend, the Purchase Agreements, as the case may be, the
Company and the Administrative Agent, for its benefit and for the ratable benefit of the Secured Parties, hereby agree as follows:

 

AMENDMENT AND RESTATEMENT

 

The Company and the
Administrative Agent, for the ratable benefit of the Senior Noteholders, hereby agree and acknowledge that this Agreement amends
and restates the Prior Security Agreement and that the Company’s and the Senior Noteholders’ rights and obligations
under the Prior Security Agreement shall hereby cease and that such agreement shall be of no further effect.

 

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ARTICLE
I

Definitions

 

SECTION 1.01.         Definition
of Terms Used Herein. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such
terms in the respective Purchase Agreement. All terms defined in the UCC (as defined herein) and not defined in this Agreement
shall have the meanings specified therein; the term “instrument” shall have the meaning specified in Article 9 of the
UCC.

 

SECTION 1.02.         Definition
of Certain Terms Used Herein. As used herein, the following terms shall have the following meanings:

 

“Account
Debtor” shall mean any person who is or who may become obligated to the Company under, with respect to, or on account
of, an Account.

 

“Collateral”
shall mean all right, title or interest now owned or at anytime hereafter acquired by the Company or in which the Company now has
or at any time in the future may acquire any right, title or interest in all (a) Accounts, (b)  Chattel Paper, (c) Commercial
Tort Claims, (d) Deposit Accounts, (e) Documents, (f) Electronic Chattel Paper, (g) Equipment, (h) General
Intangibles, (i) Instruments, (j) Inventory, (k) Investment Property, (l) Letter-of-Credit Rights, (m) Supporting
Obligations, (n) all books and records pertaining to the foregoing and (o) to the extent not otherwise included, all
Proceeds and products of any of the foregoing and all collateral security and guarantees given by any person with respect to any
of the foregoing.

 

“Copyright
License” shall mean any written agreement, now or hereafter in effect, granting any right to any third party under
any Copyright now or hereafter owned by the Company or which the Company otherwise has the right to license, or granting any right
to the Company under any Copyright now or hereafter owned by any third party, and all rights of the Company under any such agreement.

 

“Copyrights”
shall mean all of the following now owned or hereafter acquired by the Company: (a) all copyright rights in any work subject to
the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise and (b) all
registrations and applications for registration of any such copyright in the United States or any other country, including registrations,
recordings, supplemental registrations and pending applications for registration in the United States Copyright Office.

 

“Documents”
shall mean all instruments, files, records, ledger sheets and documents covering or relating to any of the Collateral.

 

“Event
of Default” shall have the meaning ascribed to such term in the Notes.

 

“Existing
Note Documents” shall mean (i) the October Purchase Agreement, (ii) the October 2010 Notes, (iii) the January 2011
Purchase Agreement, (iv) the January 2011 Notes, (v) the November 2011 Purchase Agreement, (vi) the November 2011 Notes, and (vii)
the four Guaranties, dated November 3, 2010, by SAIL Venture Partners, LP executed in favor of Deerwood Holdings, LLC and Deerwood
Partners, LLC, as holders of October 2010 Notes, as subsequently amended (the “Existing Guaranties”).

 

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“General
Intangibles” shall mean all choses in action and causes of action and all other assignable intangible personal property
of the Company of every kind and nature (other than Accounts) now owned or hereafter acquired by the Company, including interests
in any trust, corporate or other business records, contract rights, indemnification claims, Intellectual Property, goodwill, registrations,
franchises, tax refund claims and any letter of credit, guarantee, claim, security interest or other security held by or granted
to the Company to secure payment by an Account Debtor of any of the Accounts.

 

“Intellectual
Property” shall mean all intellectual and similar property of the Company of every kind and nature now owned or hereafter
acquired by the Company, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential
or proprietary technical and business information, know-how or other data or information, software and databases and all embodiments
or fixations thereof and related documentation, registrations and franchises, and all additions, improvements and accessions to,
and books and records describing or used in connection with, any of the foregoing.

 

“License”
shall mean any Patent License, Trademark License, Copyright License or other license or sublicense to which the Company is a party.

 

“Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement,
capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

 

“Transaction
Documents” shall mean (a) this Agreement, (b) the Purchase Agreements, (c) the Notes, (d) the Consent, Warrant Forfeiture
and Note Amendment Agreement, dated as of August _____, 2012, by and among the Company and the other parties signatory thereto,
and (e) the Existing Guaranties or any replacements thereof.

 

“Patent
License” shall mean any written agreement, now or hereafter in effect, granting to any third party any right to make,
use or sell any invention on which a Patent, now or hereafter owned by the Company or which the Company otherwise has the right
to license, is in existence, or granting to the Company any right to make, use or sell any invention on which a Patent, now or
hereafter owned by any third party, is in existence, and all rights of the Company under any such agreement.

 

“Patents”
shall mean all of the following now owned or hereafter acquired by the Company: (a) all letters patent of the United States or
any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or any
other country, including registrations, recordings and pending applications in the United States Patent and Trademark Office or
any similar offices in any other country, and (b) all reissues, continuations, divisions, continuations-in-part, renewals or extensions
thereof, and the inventions disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

 

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“Perfection
Certificate” shall mean a certificate substantially in the form of Annex 1 hereto, completed and supplemented with
the schedules and attachments contemplated thereby, and duly executed by an officer of the Company.

 

“Secured
Parties” shall mean (a) the Investors, (b) the Administrative Agent and (c) the successors and assigns of each of
the foregoing.

 

“Trademark
License” shall mean any written agreement, now or hereafter in effect, granting to any third party any right to use
any Trademark now or hereafter owned by the Company or which the Company otherwise has the right to license, or granting to the
Company any right to use any Trademark now or hereafter owned by any third party, and all rights of the Company under any such
agreement.

 

“Trademarks”
shall mean all of the following now owned or hereafter acquired by the Company: (a) all trademarks, service marks, trade names,
corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business
identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all registration and recording applications filed in connection therewith, including registrations and
registration applications in the United States Patent and Trademark Office, any State of the United States or any similar offices
in any other country or any political subdivision thereof, and all extensions or renewals thereof, (b) all goodwill associated
therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely reflect or embody such goodwill.

 

“UCC”
shall mean the Uniform Commercial Code as amended from time to time.

 

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ARTICLE
II

Security Interest

 

SECTION 2.01.         Security
Interest. As security for the payment and performance in full of the Obligations, the Company hereby grants, mortgages, pledges,
hypothecates and transfers to the Administrative Agent, its successors and assigns, for the ratable benefit of the Secured Parties,
and hereby grants to the Administrative Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a continuing
security interest in all of the Company’s right, title and interest now owned or at any time hereafter acquired by the Company
or in which the Company now has or any time in the future may acquire any right, title or interest, in, to or under the Collateral
(the “Security Interest”). The Company hereby irrevocably authorizes the Administrative Agent at any
time and from time to time to file in any relevant jurisdiction any initial financing statements (including fixture filings), and
amendments thereto that contain the information required by the Uniform Commercial Code of each applicable jurisdiction for the
filing of any financing statement or amendment (without the signature of the Company), including (a) whether the Company is an
organization, the type of organization and any organizational identification number issued to the Company and (b) in the case of
a financing statement filed as a fixture filing or covering Collateral constituting minerals or the like to be extracted or timber
to be cut, a sufficient description of the real property to which such Collateral relates. The Company agrees to provide such information
to the Administrative Agent promptly upon request. The Company ratifies and authorizes the filing by the Administrative Agent of
any financing statement filed prior to the date hereof. Any person (other than the Administrative Agent) at any time and from time
to time holding all or any portion of the Collateral shall be deemed to, and shall, hold the Collateral as the agent of, and as
pledge holder for, the Administrative Agent. At any time and from time to time, the Administrative Agent may give notice to any
such person holding all or any portion of the Collateral that such person is holding the Collateral as the agent and bailee of,
and as pledge holder for, the Administrative Agent, and obtain such person’s written acknowledgment thereof. Without limiting
the generality of the foregoing, the Company will join with the Administrative Agent in notifying any person who has possession
of any Collateral of the Administrative Agent’s security interest therein and obtaining an acknowledgment from such person
that it is holding the Collateral for the benefit of the Administrative Agent.

 

The Administrative
Agent is further authorized to file filings with the United States Patent and Trademark Office or United States Copyright Office
(or any successor office or any similar office in any other country) or other documents for the purpose of perfecting, confirming,
continuing, enforcing or protecting the Security Interest granted by the Company, without the signature of the Company, and naming
the Company as debtor and the Administrative Agent as secured party.

 

SECTION 2.02.         No
Assumption of Liability. The Security Interest is granted as security only and shall not subject the Administrative Agent or
any other Secured Party to, or in any way alter or modify, any obligation or liability of the Company with respect to or arising
out of the Collateral. In no event shall the Administrative Agent or any other Secured Party be deemed a trustee or become liable
as a trustee as a result of the grant of the Security Interest in any interest in any trust.

 

ARTICLE
III

Representations and Warranties

 

The Company represents
and warrants to the Administrative Agent and the other Secured Parties that:

 

SECTION 3.01.         Title
and Authority. The Company has good and valid rights in, and title to, the Collateral with respect to which it has purported
to grant a Security Interest hereunder and has full power and authority to grant to the Administrative Agent the Security Interest
in such Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement,
without the consent or approval of any other person other than any consent or approval which has been obtained.

 

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SECTION 3.02.         Filings.
(a) A Perfection Certificate has been duly prepared, completed and executed by the Company and the information set forth therein,
including the exact legal name of the Company, is correct and complete. Fully executed Uniform Commercial Code financing statements
(including fixture filings, as applicable) or other appropriate filings, recordings or registrations containing a description of
the Collateral have been delivered, or will be delivered promptly after execution hereof, to the Administrative Agent for filing
in each governmental, municipal or other office specified in the Perfection Certificate, which are all the filings, recordings
and registrations that are necessary to publish notice of and protect the validity of and to establish a legal, valid and perfected
security interest in favor of the Administrative Agent (for the ratable benefit of the Secured Parties) in respect of all Collateral
in which the Security Interest may be perfected by filing, recording or registration in the United States (or any political subdivision
thereof) and its territories and possessions, and no further or subsequent filing, refiling, recording, rerecording, registration
or reregistration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of
continuation statements or amendments.

 

(b)          The
Company represents and warrants that fully executed security agreements in the form hereof and containing a description of all
Collateral consisting of Intellectual Property with respect to United States Patents and United States registered Trademarks (and
Trademarks for which United States registration applications are pending) and United States registered Copyrights have been delivered
to the Administrative Agent for recording by the United States Patent and Trademark Office and the United States Copyright Office
pursuant to 35 U.S.C. Section 261, 15 U.S.C. Section 1060 or 17 U.S.C. Section 205 and the regulations thereunder, as applicable,
and otherwise as may be required pursuant to the laws of any other necessary jurisdiction, to protect the validity of and to establish
a legal, valid and perfected security interest in favor of the Administrative Agent (for the benefit of the Secured Parties) in
respect of all Collateral consisting of Patents, Trademarks and United States registered Copyrights in which a security interest
may be perfected by filing, recording or registration in the United States (or any political subdivision thereof) and its territories
and possessions, or in any other necessary jurisdiction, and no further or subsequent filing, refiling, recording, rerecording,
registration or reregistration is necessary (other than the financing statements referred to above in Section 3.02(a) and such
actions as are necessary to perfect the Security Interest with respect to any Collateral consisting of Patents, Trademarks and
Copyrights (or registration or application for registration thereof) acquired or developed after the date hereof).

 

SECTION 3.03.         Validity
of Security Interest. The Security Interest constitutes (a) a legal and valid security interest in all the Collateral securing
the payment and performance of the Obligations, (b) a perfected security interest in all Collateral in which a security interest
may be perfected by filing, recording or registering a financing statement or analogous document in the United States (or any political
subdivision thereof) and its territories and possessions pursuant to the Uniform Commercial Code or other applicable law in such
jurisdictions and (c) a security interest that shall be perfected in all Collateral in which a security interest may be perfected
upon the receipt and recording of this Agreement with the United States Patent and Trademark Office and the United States Copyright
Office, as applicable, within the three month period (commencing as of the date hereof) pursuant to 35 U.S.C. Section 261, 15 U.S.C.
Section 1060 or 17 U.S.C. Section 205 and otherwise as may be required pursuant to the laws of any other necessary jurisdiction.
The Security Interest is and shall be prior to any other Lien on any of the Collateral (now held or hereafter acquired).

 

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SECTION 3.04.         Absence
of Other Liens. The Collateral is owned by the Company free and clear of any Lien other than those arising under the Existing
Note Documents. Other than as contemplated by the Existing Note Documents, the Company has not filed or consented to the filing
of (a) any financing statement or analogous document under the Uniform Commercial Code or any other applicable laws covering any
Collateral, (b) any assignment in which the Company assigns any Collateral or any security agreement or similar instrument covering
any Collateral with the United States Patent and Trademark Office or the United States Copyright Office or (c) any assignment in
which the Company assigns any Collateral or any security agreement or similar instrument covering any Collateral with any foreign
governmental, municipal or other office, which financing statement or analogous document, assignment, security agreement or similar
instrument is still in effect. The Company does not hold any Commercial Tort Claim or Letter-of-Credit Right. Except with respect
to any rights arising under the Existing Note Documents, no person has control (as defined in the UCC) over the Company’s
Deposit Accounts, Electronic Chattel Paper, Investment Property or Letter-of-Credit Rights.

 

ARTICLE
IV

Covenants

 

SECTION 4.01.         Change
of Name; Location of Collateral; Records; Place of Business. (a) The Company agrees promptly to notify the Administrative Agent
in writing of any change (i) in its corporate name, (ii) in the location of its chief executive office, its principal place of
business, any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which
Collateral owned by it is located (including the establishment of any such new office or facility) other than with respect to Collateral
(A) consisting of goods in transit between facilities, whether in vehicles owned by the Company or on common carriers and (B) located
in temporary warehousing which will remain in such warehousing for no longer than one month, (iii) in its identity or type of organization
or legal structure, (iv) in its Federal Taxpayer Identification Number or organizational identification number, as applicable or
(v) in its jurisdiction of organization. The Company agrees promptly to provide the Administrative Agent with certified organizational
documents reflecting any of the changes described in the preceding sentence. The Company agrees not to effect or permit any change
referred to in the preceding sentences unless all filings have been made under the Uniform Commercial Code or otherwise that are
required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected
first priority security interest in all the Collateral. The Company agrees promptly to notify the Administrative Agent if any material
portion of the Collateral owned or held by the Company is damaged or destroyed.

 

(b)          The
Company agrees to maintain, at its own cost and expense, such complete and accurate records with respect to the Collateral owned
by it as is consistent with its current practices and in accordance with such prudent and standard practices used in industries
that are the same as or similar to those in which the Company is engaged, but in any event to include complete accounting records
indicating all payments and proceeds received with respect to any part of the Collateral, and, at such time or times as the Administrative
Agent may reasonably request, promptly to prepare and deliver to the Administrative Agent a duly certified schedule or schedules
in form and detail satisfactory to the Administrative Agent showing the identity, amount and location of any and all Collateral.

 

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SECTION 4.02.         Changes
to Perfection Certificate. The Company shall notify the Administrative Agent promptly after any change to any of the information
set forth in the Perfection Certificate.

 

SECTION 4.03.         Protection
of Security. The Company shall, at its own cost and expense, take any and all actions necessary to defend title to the Collateral
against all persons and to defend the Security Interest of the Administrative Agent in the Collateral and the priority thereof
against any Lien.

 

SECTION 4.04.         Further
Assurances. The Company agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Administrative Agent may from time to time reasonably request to better
assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of
any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other documents in connection herewith or therewith.
If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any promissory note or
other instrument, such note or instrument shall be promptly pledged and delivered to the Administrative Agent, duly endorsed in
a manner satisfactory to the Administrative Agent. Without limiting the generality of the foregoing, the Company hereby authorizes
the Administrative Agent, with prompt notice thereof to the Company, to supplement this Agreement by adding additional schedules
hereto to specifically identify any asset or item that may constitute Copyrights, Patents or Trademarks; provided, however, that
the Company shall have the right, exercisable within 10 days after it has been notified by the Administrative Agent of the specific
identification of such Collateral, to advise the Administrative Agent in writing of any inaccuracy of the representations and warranties
made by the Company hereunder with respect to such Collateral. The Company agrees that it will use its reasonable best efforts
to take such action as shall be necessary in order that all representations and warranties hereunder shall be true and correct
with respect to such Collateral within 30 days after the date it has been notified by the Administrative Agent of the specific
identification of such Collateral. Upon the request of the Administrative Agent, the Company will cooperate with the Administrative
Agent in obtaining control (as defined in the UCC) of Collateral consisting of any Deposit Accounts, Electronic Chattel Paper,
Investment Property or Letter-of-Credit Rights. Upon the request of the Administrative Agent, the Company will (a) immediately
deliver to the Administrative Agent appropriately endorsed or accompanied by appropriate instruments of transfer or assignment,
all Instruments, Documents, Chattel Paper and certificated securities with respect to any Investment Property, all letters of credit,
and all other Accounts at any time evidenced by promissory notes, trade acceptances or other instruments, (b) cause any securities
intermediaries to show on their books that the Administrative Agent is the entitlement holder with respect to any Investment Property,
and/or obtain agreements to establish control (as defined in the UCC) in favor of the Administrative Agent from such securities
intermediaries, in form and substance satisfactory to the Administrative Agent with respect to any Investment Property, as requested
by the Administrative Agent and (c) provide such notice, obtain such acknowledgements and take all such other action, with respect
to any Chattel Paper, Documents and Letter-of-Credit Rights, as the Administrative Agent shall reasonably specify.

 

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SECTION 4.05.         Inspection
and Verification. The Administrative Agent and such persons as the Administrative Agent may reasonably designate shall have
the right to inspect the Collateral, all records related thereto (and to make extracts and copies from such records) and the premises
upon which any of the Collateral is located, to discuss the Company’s affairs with the officers of the Company and their
independent accountants and to verify under reasonable procedures the validity, amount, quality, quantity, value, condition and
status of, or any other matter relating to, the Collateral, including, in the case of Accounts or Collateral in the possession
of any third person, by contacting Account Debtors or the third person possessing such Collateral for the purpose of making such
a verification. The Administrative Agent shall have the absolute right to share any information it gains from such inspection or
verification with any Secured Party.

 

SECTION 4.06.         Taxes;
Encumbrances. At its option and after notice to the Company, the Administrative Agent may discharge past due taxes, assessments,
charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral and may pay for the
maintenance and preservation of the Collateral to the extent the Company fails to do so as required by this Agreement, and the
Company agrees to reimburse the Administrative Agent on demand for any payment made or any expense incurred by the Administrative
Agent pursuant to the foregoing authorization; provided, however, that nothing in this Section 4.06 shall be interpreted
as excusing the Company from the performance of, or imposing any obligation on the Administrative Agent or any Secured Party to
cure or perform, any covenants or other promises of the Company with respect to taxes, assessments, charges, fees, liens, security
interests or other encumbrances and maintenance as set forth herein or in the other Transaction Documents.

 

SECTION 4.07.         Assignment
of Security Interest. If at any time the Company shall take a security interest in any property of an Account Debtor or any
other person to secure payment and performance of an Account, the Company shall promptly assign such security interest to the Administrative
Agent. Such assignment need not be filed of public record unless necessary to continue the perfected status of the security interest
against creditors of and transferees from the Account Debtor or other person granting the security interest.

 

SECTION 4.08.         Continuing
Obligations of the Company. The Company shall remain liable to observe and perform all the conditions and obligations to be
observed and performed by it under each contract, agreement or instrument relating to the Collateral, all in accordance with the
terms and conditions thereof, and the Company agrees to indemnify and hold harmless the Administrative Agent and the Secured Parties
from and against any and all liability for such performance.

 

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SECTION 4.09.         Use
and Disposition of Collateral. The Company shall not make or permit to be made an assignment, pledge or hypothecation of the
Collateral or shall grant any other Lien in respect of the Collateral. The Company shall not make or permit to be made any transfer
of the Collateral and the Company shall remain at all times in possession of the Collateral owned by it. Without limiting the generality
of the foregoing, the Company agrees that it shall not permit any Inventory to be in the possession or control of any warehouseman,
bailee, agent or processor at any time unless such warehouseman, bailee, agent or processor shall have been notified of the Security
Interest and shall have agreed in writing to hold the Inventory subject to the Security Interest and the instructions of the Administrative
Agent and to waive and release any Lien held by it with respect to such Inventory, whether arising by operation of law or otherwise.

 

SECTION 4.10.         Limitation
on Modification of Accounts. The Company shall not, without the Administrative Agent’s prior written consent, grant any
extension of the time of payment of any of the Accounts included in the Collateral, compromise, compound or settle the same for
less than the full amount thereof, release, wholly or partly, any person liable for the payment thereof or allow any credit or
discount whatsoever thereon, other than extensions, credits, discounts, compromises or settlements granted or made in the ordinary
course of business and consistent with its current practices and in accordance with such prudent and standard practices used in
industries that are the same as or similar to those in which the Company is engaged.

 

SECTION 4.11.         Insurance.
The Company, at its own expense, shall maintain or cause to be maintained insurance covering physical loss or damage to the Collateral.
The Company irrevocably makes, constitutes and appoints the Administrative Agent (and all officers, employees or agents designated
by the Administrative Agent) as the Company’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance
of an Event of Default, of making, settling and adjusting claims in respect of Collateral under policies of insurance, endorsing
the name of the Company on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance
and for making all determinations and decisions with respect thereto. In the event that the Company at any time or times shall
fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto,
the Administrative Agent may, without waiving or releasing any obligation or liability of the Company hereunder or any Event of
Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions
with respect thereto as the Administrative Agent deems advisable. All sums disbursed by the Administrative Agent in connection
with this Section 4.11, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall
be payable, upon demand, by the Company to the Administrative Agent and shall be additional Obligations secured hereby.

 

SECTION 4.12.         Legend.
The Company shall legend, in form and manner satisfactory to the Administrative Agent, its Chattel Paper and its books, records
and documents evidencing or pertaining thereto with an appropriate reference to the fact that such Chattel Paper have been assigned
to the Administrative Agent for the benefit of the Secured Parties and that the Administrative Agent has a security interest therein.

 

SECTION 4.13.         Covenants
Regarding Patent, Trademark and Copyright Collateral.

 

(a)          The
Company agrees that it will not, nor will it permit any of its licensees to, do any act, or omit to do any act, whereby any Patent
may become invalidated or dedicated to the public, and agrees that it shall continue to mark any products covered by a Patent with
the relevant patent number as necessary and sufficient to establish and preserve its maximum rights under applicable laws.

 

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(b)          The
Company (either itself or through its licensees or its sublicensees) will, for each Trademark, (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for non-use, (ii) maintain the quality of products and services offered
under such Trademark, (iii) display such Trademark with notice of Federal or foreign registration to the extent necessary and sufficient
to establish and preserve its maximum rights under applicable law and (iv) not knowingly use, or knowingly permit the use of, such
Trademark in violation of any third party rights.

 

(c)          The
Company (either itself or through licensees) will, for each work covered by a Copyright, continue to publish, reproduce, display,
adopt and distribute the work with appropriate copyright notice as necessary and sufficient to establish and preserve its maximum
rights under applicable laws.

 

(d)          The
Company shall notify the Administrative Agent immediately if it knows, or has reason to know, that any Patent, Trademark or Copyright
may become abandoned, lost or dedicated to the public, or of any adverse determination or development (including the institution
of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, United States
Copyright Office or any court or similar office of any country) regarding the Company’s ownership of any Patent, Trademark
or Copyright, its right to register the same, or to keep and maintain the same.

 

(e)          In
no event shall the Company, either itself or through any agent, employee, licensee or designee, file an application for any Patent,
Trademark or Copyright (or for the registration of any Trademark or Copyright) with the United States Patent and Trademark Office,
United States Copyright Office or any office or agency in any political subdivision of the United States or in any other country
or any political subdivision thereof, unless it promptly informs the Administrative Agent, and, upon request of the Administrative
Agent, executes and delivers any and all agreements, instruments, documents and papers as the Administrative Agent may request
to evidence the Administrative Agent’s security interest in such Patent, Trademark or Copyright, and the Company hereby appoints
the Administrative Agent as its attorney-in-fact to execute and file such writings for the foregoing purposes, all acts of such
attorney being hereby ratified and confirmed; such power, being coupled with an interest, is irrevocable.

 

(f)          The
Company will take all necessary steps that are consistent with the practice in any proceeding before the United States Patent and
Trademark Office, United States Copyright Office or any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof, to maintain and pursue each application relating to the Patents, Trademarks
and/or Copyrights (and to obtain the relevant grant or registration) and to maintain each issued Patent and each registration of
the Trademarks and Copyrights, including timely filings of applications for renewal, affidavits of use, affidavits of incontestability
and payment of maintenance fees, and, if consistent with good business judgment, to initiate opposition, interference and cancellation
proceedings against third parties.

 

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(g)          In
the event that the Company has reason to believe that any Collateral consisting of a Patent, Trademark or Copyright has been or
is about to be infringed, misappropriated or diluted by a third party, the Company promptly shall notify the Administrative Agent
and shall, if consistent with good business judgment, promptly sue for infringement, misappropriation or dilution and to recover
any and all damages for such infringement, misappropriation or dilution, and take such other actions as are appropriate under the
circumstances to protect such Collateral.

 

(h)          Upon
and during the continuance of an Event of Default, the Company shall use its reasonable best efforts to obtain all requisite consents
or approvals by the licensor of each Copyright License, Patent License or Trademark License to effect the assignment of all of
the Company’s right, title and interest thereunder to the Administrative Agent or its designee.

 

(i)          The
Company shall ensure that fully executed security agreements in the form hereof and containing a description of all Collateral
consisting of Intellectual Property shall have been received and recorded within three months after the execution of this Agreement
with respect to United States Patents, United States registered Trademarks (and Trademarks for which United States registration
applications are pending) and United States registered Copyrights have been delivered to the Administrative Agent for recording
by the United States Patent and Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. Section 261, 15 U.S.C.
Section 1060 or 17 U.S.C. Section 205 and the regulations thereunder, as applicable, and otherwise as may be required pursuant
to the laws of any other necessary jurisdiction, to protect the validity of and to establish a legal, valid and perfected security
interest in favor of the Administrative Agent (for the ratable benefit of the Secured Parties) in respect of all Collateral consisting
of Patents, Trademarks and registered Copyrights in which a security interest may be perfected by filing, recording or registration
in the United States (or any political subdivision thereof) and its territories and possessions, or in any other necessary jurisdiction,
and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary (other than
such actions as are necessary to perfect the Security Interest with respect to any Collateral consisting of Patents, Trademarks
and Copyrights (or registration or application for registration thereof) acquired or developed after the date of this amendment
and restatement).

 

SECTION 4.14.         Other
Actions. In order to further insure the attachment, perfection and priority of, and the ability of the Administrative
Agent to enforce, the Administrative Agent’s security interest in the Collateral, the Company agrees, in each case at the
Company’s own expense, to take the following actions with respect to the following Collateral:

 

(a)          Instruments
and Tangible Chattel Paper. If the Company shall at any time hold or acquire any Instruments or Tangible Chattel Paper,
the Company shall forthwith endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of
transfer or assignment duly executed in blank as the Administrative Agent may from time to time specify.

 

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(b)          Investment
Property. If the Company shall at any time hold or acquire any certificated securities, the Company shall forthwith
endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Administrative Agent may from time to time specify. If any securities now or hereafter acquired by the
Company are uncertificated and are issued to the Company or its nominee directly by the issuer thereof, the Company shall promptly
notify the Administrative Agent thereof and, at the Administrative Agent’s request and option, pursuant to an agreement in
form and substance satisfactory to the Administrative Agent, either (i) cause the issuer to agree to comply with instructions from
the Administrative Agent as to such securities, without further consent of the Company or such nominee or (ii) arrange for the
Administrative Agent to become the registered owner of the securities. If any securities, whether certificated or uncertificated,
or other investment property now or hereafter acquired by the Company are held by the Company or its nominee through a securities
intermediary or commodity intermediary, the Company shall promptly notify the Administrative Agent thereof and, at the Administrative
Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative
Agent, either (A) cause such securities intermediary or commodity intermediary (as the case may be) to agree to comply with entitlement
orders or other instructions from the Administrative Agent to such securities intermediary as to such securities or other investment
property or to apply any value distributed on account of any commodity contract as directed by the Administrative Agent to such
commodity intermediary, in each case without further consent of the Company or such nominee or (B) in the case of Financial Assets
or other Investment Property held through a securities intermediary, arrange for the Administrative Agent to become the entitlement
holder with respect to such Investment Property, with the Company being permitted, only with the consent of the Administrative
Agent, to exercise rights to withdraw or otherwise deal with such Investment Property. The Administrative Agent agrees with the
Company that the Administrative Agent shall not give any such entitlement orders or instructions or directions to any such issuer,
securities intermediary or commodity intermediary, and shall not withhold its consent to the exercise of any withdrawal or dealing
rights by the Company, unless an Event of Default has occurred and is continuing, or, after giving effect to any such investment
and withdrawal rights would occur.

 

(c)          Electronic
Chattel Paper and Transferable Records. If the Company at any time holds or acquires an interest in any Electronic Chattel
Paper or any “transferable record,” as that term is defined in Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
the Company shall promptly notify the Administrative Agent thereof and, at the request of the Administrative Agent, shall take
such action as the Administrative Agent may reasonably request to vest in the Administrative Agent control under the UCC of such
Electronic Chattel Paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act
or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable
record. The Administrative Agent agrees with the Company that the Administrative Agent will arrange, pursuant to procedures satisfactory
to the Administrative Agent and so long as such procedures will not result in the Administrative Agent’s loss of control,
for the Company to make alterations to the electronic chattel paper or transferable record permitted under the UCC or, as the case
may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic
Transactions Act for a party in control to allow without loss of control, unless an Event of Default has occurred and is continuing
or would occur after taking into account any action by the Company with respect to such Electronic Chattel Paper or transferable
record.

 

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(d)          Letter-of-Credit
Rights. If the Company is at any time a beneficiary under a letter of credit now or hereafter issued in favor of the Company,
the Company shall promptly notify the Administrative Agent thereof and, at the request and option of the Administrative Agent,
the Company shall, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, either (i)
arrange for the issuer and any confirmed of such letter of credit to consent to an assignment to the Administrative Agent of the
proceeds of any drawing under the letter of credit or (ii) arrange for the Administrative Agent to become the transferee beneficiary
of the letter of credit.

 

(e)          Commercial
Tort Claims. If the Company shall at any time hold or acquire a Commercial Tort Claim, the Company shall promptly notify
the Administrative Agent in a writing signed by the Company of the brief details thereof and grant to the Administrative Agent
in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing
to be in form and substance satisfactory to the Administrative Agent.

 

ARTICLE
V

Collections 

 

SECTION 5.01.         Collections.
Upon the occurrence of and during the continuance of an Event of Default, the Administrative Agent shall have the right, at any
time and from time to time, (a) to notify the Account Debtors and other third parties holding or otherwise concerned with the Collateral
that the Accounts have been assigned to the Administrative Agent and that the Administrative Agent has a security interest therein;
(b) to direct all such persons to make payments to the Administrative Agent of all or any part of the sums owing to the Company
by such persons; (c) to enforce collection of any of the Accounts by suit or otherwise; (d) to surrender, release or exchange all
or any part of such Accounts; or (e) to compromise, settle, extend or renew for any period (whether or not longer than the original
period) any indebtedness thereunder or evidenced thereby.

 

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SECTION 5.02.         Power
of Attorney. The Company irrevocably makes, constitutes and appoints the Administrative Agent (and all officers, employees
or agents designated by the Administrative Agent) as the Company’s true and lawful agent and attorney-in-fact, and in such
capacity the Administrative Agent shall have the right, with full power of substitution for the Company and in the Company’s
name or otherwise, for the use and benefit of the Administrative Agent and the Secured Parties, upon the occurrence and during
the continuance of an Event of Default (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts,
money orders or other evidences of payment relating to the Collateral or any part thereof; (b) to demand, collect, receive payment
of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to sign the name of the Company on any
invoice or bill of lading relating to any of the Collateral; (d) to send verifications of Accounts included in the Collateral to
any Account Debtor; (e) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of
competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any
Collateral; (f) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the
Collateral; (g) to notify, or to require the Company to notify, Account Debtors to make payment directly to the Administrative
Agent; and (h) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of
the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely
as though the Administrative Agent were the absolute owner of the Collateral for all purposes; provided, however, that nothing
herein contained shall be construed as requiring or obligating the Administrative Agent or any Secured Party to make any
commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Administrative Agent or any Secured
Party, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the
moneys due or to become due in respect thereof or any property covered thereby, and no action taken or omitted to be taken by the
Administrative Agent or any Secured Party with respect to the Collateral or any part thereof shall give rise to any defense, counterclaim
or offset in favor of the Company or to any claim or action against the Administrative Agent or any Secured Party. It is understood
and agreed that the appointment of the Administrative Agent as the agent and attorney-in-fact of the Company for the purposes set
forth above is coupled with an interest and is irrevocable. The provisions of this Section shall in no event relieve the Company
of any of its obligations hereunder or under any other Transaction Document with respect to the Collateral or any part thereof
or impose any obligation on the Administrative Agent or any Secured Party to proceed in any particular manner with respect to the
Collateral or any part thereof, or in any way limit the exercise by the Administrative Agent or any Secured Party of any other
or further right which it may have on the date of this Agreement or hereafter, whether hereunder, under any other Transaction Document,
by law or otherwise.

 

ARTICLE
VI

Remedies 

 

SECTION 6.01.         Remedies
upon Default. Upon the occurrence and during the continuance of an Event of Default, the Company agrees to deliver each item
of Collateral to the Administrative Agent on demand, and it is agreed that the Administrative Agent shall have the right to take
any of, or all, the following actions at the same or different times: (a) with respect to any Collateral consisting of Intellectual
Property, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Collateral
by the Company to the Administrative Agent, or to license or sublicense, whether general, special or otherwise, and whether on
an exclusive or non-exclusive basis, any such Collateral throughout the world on such terms and conditions and in such manner as
the Administrative Agent shall determine (other than in violation of any then-existing licensing arrangements to the extent that
waivers cannot be obtained) and (b) with or without legal process and with or without prior notice or demand for performance, to
take possession of the Collateral and without liability for trespass to enter any premises where the Collateral may be located
for the purpose of taking possession of or removing the Collateral and, generally, to exercise any and all rights afforded to a
secured party under the UCC or other applicable law. Without limiting the generality of the foregoing, the Company agrees that
the Administrative Agent may sell or otherwise dispose of all or any part of the Collateral, at public or private sale or at any
broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Administrative Agent shall
deem appropriate. The Administrative Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict
the prospective bidders or purchasers to persons who will represent and agree that they are purchasing the Collateral for their
own account for investment and not with a view to the distribution or sale thereof, and upon consummation of any such sale the
Administrative Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral
so sold. Each such purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part
of the Company, and the Company hereby waives all rights of redemption, stay, valuation and appraisal which the Company now has
or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.

 

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The Administrative
Agent shall give the Company 10 days’ written notice (which the Company agrees is reasonable notice within the meaning of
the UCC or its equivalent in other jurisdictions) of the Administrative Agent’s intention to make any sale of Collateral.
Such notice, in the case of a public sale, shall state the time and place for such sale and, in the case of a sale at a broker’s
board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the
Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall be held at
such time or times within ordinary business hours and at such place or places as the Administrative Agent may fix and state in
the notice of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety
or in separate parcels, as the Administrative Agent may (in its sole and absolute discretion) determine. The Administrative Agent
shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice
of sale of such Collateral shall have been given. The Administrative Agent may, without notice or publication, adjourn any public
or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such
sale may, without further notice, be made at the time and place to which the same was so adjourned. In case any sale of all or
any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Administrative
Agent until the sale price is paid by the purchaser or purchasers thereof, but the Administrative Agent shall not incur any liability
in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure,
such Collateral may be sold again upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant
to this Section, any Secured Party may bid for or purchase, free from any right of redemption, stay, valuation or appraisal on
the part of the Company (all said rights being also hereby waived and released), the Collateral or any part thereof offered for
sale and may make payment on account thereof by using any claim then due and payable to such Secured Party from the Company as
a credit against the purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose
of such property without further accountability to the Company therefor. For purposes hereof, a written agreement to purchase the
Collateral or any portion thereof shall be treated as a sale thereof; the Administrative Agent shall be free to carry out such
sale pursuant to such agreement; and the Company shall not be entitled to the return of the Collateral or any portion thereof subject
thereto, notwithstanding the fact that after the Administrative Agent shall have entered into such an agreement all Events of Default
shall have been remedied and the Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon
it, the Administrative Agent may proceed by a suit or suits at law or in equity to foreclose upon the Collateral and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant
to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 6.01 shall be deemed to conform
to the commercially reasonable standards as provided in the UCC or its equivalent in other jurisdictions.

 

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SECTION 6.02.         Application
of Proceeds. The Administrative Agent shall apply the proceeds of any collection or sale of Collateral, as well as any Collateral
consisting of cash, as follows:

 

FIRST, to
the payment of all costs and expenses incurred by the Administrative Agent (in its capacity as such hereunder or under any other
Transaction Document) in connection with such collection or sale or otherwise in connection with this Agreement, any other Transaction
Document or any of the Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment
of all advances made by the Administrative Agent hereunder or under any other Transaction Document on behalf of the Company and
any other costs or expenses incurred by the Administrative Agent in connection with the exercise of any right or remedy hereunder
or under any other Transaction Document;

 

SECOND, to
the payment in full of the Obligations with respect to the Senior Notes (the amounts so applied to be distributed among the Senior
Noteholders pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution);

 

THIRD, to
the payment in full of the Obligations with respect to the October 2010 Notes (the amounts so applied to be distributed among the
October 2010 Noteholders pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution);

 

FOURTH, to
the payment in full of the Obligations with respect to the January 2011 Notes and the November 2011 Notes (the amounts so applied
to be distributed among the January 2011 Noteholders and the November 2011 Noteholders pro rata in accordance with the amounts
of the Obligations owed to them on the date of any such distribution); and

 

FIFTH, to
the Company, its successors or assigns, or as a court of competent jurisdiction may otherwise direct.

 

The Administrative
Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with
this Agreement. Upon any sale of the Collateral by the Administrative Agent (including pursuant to a power of sale granted by statute
or under a judicial proceeding), the receipt of the purchase money by the Administrative Agent or of the officer making the sale
shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall
not be obligated to see to the application of any part of the purchase money paid over to the Administrative Agent or such officer
or be answerable in any way for the misapplication thereof.

 

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SECTION 6.03.         Grant
of License to Use Intellectual Property. For the purpose of enabling the Administrative Agent to exercise rights and remedies
under this Article at such time as the Administrative Agent shall be lawfully entitled to exercise such rights and remedies, the
Company hereby grants to the Administrative Agent an irrevocable, non-exclusive license (exercisable without payment of royalty
or other compensation to the Company) to use, license or sub-license any of the Collateral consisting of Intellectual Property
now owned or hereafter acquired by the Company, and wherever the same may be located, and including in such license reasonable
access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used
for the compilation or printout thereof. The use of such license by the Administrative Agent shall be exercised, at the option
of the Administrative Agent, upon the occurrence and during the continuation of an Event of Default; provided that any license,
sub-license or other transaction entered into by the Administrative Agent in accordance herewith shall be binding upon the Company
notwithstanding any subsequent cure of an Event of Default.

 

ARTICLE
VII

Miscellaneous 

 

SECTION 7.01.         Notices.
All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided
in the Purchase Agreements.

 

SECTION 7.02.         Security
Interest Absolute. All rights of the Administrative Agent hereunder, the Security Interest and all obligations of the Company
hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Purchase Agreements,
any other Transaction Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating
to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure from the Purchase Agreements, any other Transaction
Document or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or
any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of
the Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Company
in respect of the Obligations or in respect of this Agreement.

 

SECTION 7.03.         Survival
of Agreement. All covenants, agreements, representations and warranties made by the Company herein and in the certificates
or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Transaction Document shall
be considered to have been relied upon by the Secured Parties and shall survive the Closing, regardless of any investigation made
by the Investors or on their behalf.

 

SECTION 7.04.         Binding
Effect; Several Agreement. This Agreement shall become effective as to the Company when a counterpart hereof executed on behalf
of the Company shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf
of the Administrative Agent, and thereafter shall be binding upon the Company and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the Administrative Agent and the other Secured Parties and
their respective successors and assigns, except that the Company shall not have the right to assign or transfer its rights or obligations
hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated
by this Agreement and the other Transaction Documents.

 

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SECTION 7.05.         Successors
and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include
the successors and permitted assigns of such party; and all covenants, promises and agreements by or on behalf of the Company that
are contained in this Agreement shall bind and inure to the benefit of its successors and permitted assigns.

 

SECTION 7.06.         Administrative
Agent’s Fees and Expenses; Indemnification. (a) The Company agrees to pay upon demand to the Administrative Agent the
amount of any and all reasonable expenses, including the reasonable fees, other charges and disbursements of its counsel and of
any experts or agents, which the Administrative Agent may incur in connection with (i) the administration of this Agreement, (ii)
the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, (iii) the exercise,
enforcement or protection of any of the rights of the Administrative Agent hereunder or (iv) the failure of the Company to perform
or observe any of the provisions hereof.

 

(b)          Without
limitation of its indemnification obligations under the other Transaction Documents, the Company agrees to indemnify the Administrative
Agent and the other Secured Parties against, and hold each Secured Party harmless from, any and all losses, claims, damages, liabilities
and related expenses, including reasonable counsel fees, other charges and disbursements, incurred by or asserted against any Secured
Party arising out of, in any way connected with, or as a result of, the execution, delivery or performance of this Agreement or
any other Transaction Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations thereunder or the consummation of the transactions contemplated hereby and thereby and the other
transactions contemplated thereby or any claim, litigation, investigation or proceeding relating to any of the foregoing or to
the Collateral, whether or not any Secured Party is a party thereto.

 

(c)          Any
amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Transaction Documents. The
provisions of this Section 7.06 shall remain operative and in full force and effect regardless of the termination of this Agreement
or any other Transaction Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations,
the invalidity or unenforceability of any term or provision of this Agreement or any other Transaction Document, or any investigation
made by or on behalf of the Administrative Agent or any other Secured Party. All amounts due under this Section 7.06 shall be payable
on written demand therefor.

 

SECTION 7.07.         GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

 

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SECTION 7.08.         Waivers;
Amendment. (a) No failure or delay of the Administrative Agent in exercising any power or right hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent hereunder and of the other Secured Parties under the other Transaction Documents
are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provisions of this
Agreement or any other Transaction Document or consent to any departure by the Company therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on the Company in any case shall entitle the Company to any
other or further notice or demand in similar or other circumstances.

 

(b)          Neither
this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into
between the Administrative Agent and the Company.

 

SECTION 7.09.         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR ANY OF THE OTHER TRANSACTION DOCUMENTS.

 

SECTION 7.10.         Severability.
In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected
or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in
and of itself affect the validity of such provision in any other jurisdiction).

 

SECTION 7.11.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute a single contract and shall become effective as provided in Section 7.04. Delivery of an executed
counterpart of a signature page to this Agreement by facsimile or PDF transmission shall be as effective as delivery of a manually
executed counterpart of this Agreement.

 

SECTION 7.12.         Headings.
Article and Section headings used herein are for the purpose of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

 

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SECTION
7.13.         Termination or Release. This Agreement and the Security Interest
shall terminate at the earliest of (i) the date when all of the Obligations have been indefeasibly paid in full or (ii) (A) with
respect to the Senior Notes, the date that holders of a majority of the aggregate principal amount of the Senior Notes issued have
converted their Senior Notes in accordance with the terms of such notes, (B) with respect to the October 2010 Notes, the date that
holders of a majority of the aggregate principal amount of the October 2010 Notes issued have converted their October 2010 Notes
in accordance with the terms of such notes and (C) with respect to the January 2011 Notes and the November 2011 Notes, the date
that holders of a majority of the aggregate principal amount issued of January
2011 Notes and November 2011 Notes (on a combined basis) have converted such January
2011 Notes and November 2011 Notes, as the case may be, in accordance with the terms of such notes, at
which time the Administrative Agent shall execute and deliver to the Company, at the Company’s expense, all Uniform Commercial
Code termination statements and similar documents which the Company shall reasonably request to evidence such termination. Any
execution and delivery of termination statements or documents pursuant to this Section 7.13 shall be without recourse to or warranty
by the Administrative Agent. 

 

[Signatures on following
page]

 

    	22

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of
the date first written above.

  

	 	CNS RESPONSE, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	ADMINISTRATIVE AGENT
	 	 
	 	 
	 	David B. Jones

 

[SIGNATURE
PAGE TO SECURITY AGREEMENT] 

 

    	23EXHIBIT
10.10

 

FRANCHISE
LICENSE AGREEMENT

 

HILTON SAN FRANCISCO FINANCIAL DISTRICT

 

SAN FRANCISCO, CA

 

	 

     

     

    

 

Table
of Contents

 

	Section	 	Page
    No.
	 	 	 
	1.  Definitions	1
	a.	The Hotel.	1
	b.	The Marks.	1
	c.	The System.	1
	d.	The Manual.	2
	e.	Including.	2
	f.	License Term.	2
	 	 	 
	2.  Grant of License	2
	 	 	 
	3.  Our Responsibilities	2
	a.	Training.	2
	b.	Reservation Services.	2
	c.	Consultation.	2
	d.	Arrangements for Marketing, Etc.	2
	e.	Inspections/Compliance Assistance.	3
	f.	Manual.	3
	g.	Equipment and Supplies.	3
	 	 	 
	4.  Proprietary Rights	3
	 	 
	5.  Proprietary Marks	4
	a.	Use of Trade Name.	4
	b.	Trademark Disputes.	4
	c.	Web Sites.	4
	d.	Covenant.	5
	 	 	 
	6.  Your Responsibilities	5
	a.	Operational and Other Requirements.	5
	b.	Hotel Quality Assurance.	9
	c.	Staff and Management.	9
	 	 	 
	7.  Fees	9
	a.	Monthly Fees.	9
	b.	Determination and Payment of Fees.	9
	c.	Room Addition Fee.	10
	d.	Other Fees.	10
	e.	Taxes.	10
	f.	Application of Fees.	10
	 	 	 
	8.  Records and Audits	10
	a.	Reports.	10
	b.	Maintenance of Records.	10
	c.	Audit.	11
	d.	Ownership of Information.	11
	 	 	 
	9.  Indemnity	11
	 	 
	10.  Right of First Offer: INTENTIONALLY DELETED	12
	 	 
	11.  Transfer	12
	a.	Our Transfer of this Agreement.	12

 

    	i

    	 

    

 

	b.	Your Transfer.	12
	 	 	 
	12.  Condemnation and Casualty	16
	a.	Condemnation.	16
	b.	Casualty.	17
	c.	No Extensions of Term.	17
	 	 	 
	13.  Term of License.	17
	 	 
	14.  Termination	17
	a.	Termination or Suspension by Us on Advance Notice.	17
	b.	Immediate Termination by Us.	19
	c.	Liquidated Damages upon Termination by Us.	21
	d.	De-identification of Hotel Upon Termination.	21
	e.	Special Termination.	21
	 	 	 
	15.  Relationship of Parties	21
	a.	No Agency Relationship.	21
	b.	Notices to Public Concerning Your Independent Status.	22
	 	 	 
	16. Miscellaneous	22
	a.	Severability and Interpretation.	22
	b.	Controlling Law.	22
	c.	Exclusive Benefit.	23
	d.	Entire Agreement.	23
	e.	Consent; Business Judgment.	23
	f.	Notices.	24
	g.	General Release.	24
	h.	Estoppel Certificate.	24
	i.	Descriptive Headings.	24
	j.	Representations and Warranties.	24
	k.	Time.	24
	l.	Counterparts.	24
	m.	Performance Requirements/Responsibilities.	24
	n.	Informational Copies.	24
	o.	Blocked Persons or Entities.	25
	 	 	 
	17.  WAIVER OF JURY TRIAL	25
	 	 
	ATTACHMENT A - PERFORMANCE CONDITIONS:  CONVERSION	a-1
	ATTACHMENT B - RIDER TO FRANCHISE LICENSE AGREEMENT	b-1

 

    	ii

    	 

    

 

EXHIBIT
10.10

 

FRANCHISE LICENSE AGREEMENT

 

Dated as of the date set forth on
the Rider attached hereto as Attachment B (the “Rider”) between the licensor entity set forth on the Rider (“we,”
“us,” “our” or “Licensor”), and the licensee entity (“you,” “your”
or “Licensee”), the name and address of which is set forth on the Rider.

 

INTRODUCTION

 

We are a subsidiary
of Hilton Hotels Corporation, a Delaware corporation (“HHC”). HHC and its subsidiaries and affiliates (collectively,
“Hilton”) own, lease, operate, manage and provide various services for a network of hotels, inns, conference
centers, time share properties and other operations (the “Network”). HHC and Hilton Hospitality, Inc., a wholly
owned subsidiary of HHC, have authorized us to grant licenses to selected, first-class, independently owned or leased hotel properties,
to operate under the brand name set forth in the Rider (the “Licensed Brand”). You have expressed an interest
in operating the property identified on the Rider under the Licensed Brand. You have confirmed to us that you (i) independently
investigated the risks of operating a hotel under the Licensed Brand, including current and potential market conditions, and competitive
factors and risks, and have made an independent evaluation of all such matters, and (ii) reviewed our uniform franchise offering
circular (“UFOC”). After doing so, you have expressed a desire to enter into a Franchise License Agreement with
us to obtain a license to use the Licensed Brand in the operation of a hotel at the address set forth on the Rider.

 

NOW, THEREFORE, in
consideration of the premises and the undertakings and commitments of each party to the other party as set forth in this agreement
(the “Agreement”), the parties agree as follows:

 

1. Definitions

 

The following capitalized
terms will have the meanings set forth after each term:

 

a.    The
Hotel. The Hotel is the property you will operate under this Agreement. The “Hotel” includes all structures,
facilities, appurtenances, furniture, fixtures, equipment, and entry, exit, parking and other areas located on the site we have
approved for your business, or located on any land we approve in the future for additions, signs, parking or other facilities;
provided, however, that for the purposes of this Agreement, the parking garage attached to the Hotel
shall not be included in the definition of “Hotel.”   Notwithstanding the foregoing, Licensee will, upon
Licensor’s request from time to time, provide a plan, acceptable to Licensor, to ensure that Licensee is able to meet guests’
ongoing parking needs in connection with the Hotel.

 

 

b.    The
Marks. References to the “Marks” will include the Licensed Brand service marks and all other service marks,
copyrights, trademarks, logos, insignia, emblems, symbols, designs, slogans, distinguishing characteristics, trade names, domain
names, and all other marks or characteristics associated or used with or in connection with the System (as we define that term
in Subparagraph 1c.), and similar intellectual property rights, that we designate from time to time to be used in the System.

 

c.    The
System. The “System” is the elements we designate from time to time to identify hotels operating under
the Licensed Brand that provide to the consuming public a similar, distinctive, high quality hotel service. “System hotels”
means hotels we license to operate under the System and to use the Licensed Brand name. The System currently includes the Licensed
Brand and the Marks; access to a reservation service; advertising, publicity and other marketing programs and materials; training
programs and materials, standards, specifications and policies for construction, furnishing, operation, appearance and service
of the Hotel, we refer to in this Agreement or in the Manual (as defined in Subparagraph 1.d.) and programs for our inspecting
the Hotel and consulting with you. We may add elements to the System or modify, alter or delete elements of the System at our
sole discretion.

 

    	 

    	 

    

 

d.    The
Manual. References to the “Manual” will include all written standards and requirements we adopt from time
to time for constructing, equipping, furnishing, supplying, operating, maintaining and marketing System hotels, including the
Hotel. Changes made in the Manual will apply to System hotels as specified and may not apply to all System hotels. We may set
forth these standards and requirements in one or more documents or guides. All of these items, as we modify them from time to
time, will be considered the Manual. We will change the Manual from time to time. We will notify you at least thirty (30) days
before any change becomes effective. You will be responsible for the costs of complying with the Manual, including any changes.

 

e.    Including.
The word “including,” whenever used in this Agreement, will mean “including, by way of example, but
without limitation.”

 

f.    License
Term. References to the “License Term” will mean the period from the date of this Agreement through the
expiration of this Agreement.

 

2. Grant of License - Paragraph
2 of the Franchise License Agreement is deleted in its entirety and a new Paragraph 2 has been inserted in its place on Attachment
B – Rider to Franchise License Agreement.

 

3. Our Responsibilities

 

a.    Training.
We will specify required and optional training programs and provide these programs at various locations. We may charge you
for (i) required training services and materials and (ii) optional training services and materials we provide to you.
You are also responsible for all travel, lodging and other expenses you or your employees incur in attending these programs.

 

b.    Reservation
Services. We will, directly or indirectly, furnish you with the Reservation Service (as defined in Subparagraph 6a(15)
below). This service will be furnished to you on the same basis as is furnished to other System hotels, subject to the provisions
of Subparagraph 14.a.(3) below.

 

c.    Consultation.
We may, from time to time at our sole discretion, make available to you consultation and advice in areas such as operations,
facilities, and marketing on the same basis as other Licensed Brand hotels. We have the right to establish fees in advance or
on a project-by-project basis, for consultation and advice you request.

 

d.    Arrangements
for Marketing, Etc. Periodically, we or one of the Entities will publish and make available to the traveling public a directory
of System hotels, including the Hotel. Additionally, we will include the Hotel, or cause the Hotel to be included in (i) national
or regional group advertising of System hotels, and (ii) international, national and regional market programs offered by
us or the Entities; subject to and in accordance with the general practice for System hotels.

 

    	2

    	 

    

 

We will use your Monthly
Program Fee (as defined in Subparagraph 7.a. below) to pay for various programs to benefit the System, including (i) advertising,
promotion, publicity, public relations, market research, and other marketing programs; (ii) developing and maintaining Licensed
Brand directories and Internet sites; (iii) developing and maintaining the Reservation Service systems and support; and (iv) administrative
costs and overhead related to the administration or direction of these projects and programs. We will have the sole right to determine
how we spend these funds, including sole control over the creative concepts, materials and media used in the programs, and the
placement and allocation of advertising. We may enter into arrangements for development, marketing, operations, administrative,
technical and support functions, facilities, programs, services and/or personnel with any other entity, including our affiliates.
You acknowledge that Monthly Program Fees are intended for the benefit of the System, and will not simply be used to promote or
benefit any one property or market. We will have no obligation in administering any activities paid by the Monthly Program Fee
to make expenditures for you which are equivalent or proportionate to your payments, or to ensure that the Hotel benefits directly
or proportionately from such expenditures. We may create any programs and allocate monies derived from Monthly Program Fees to
any regions or localities, as we consider appropriate in our sole judgment. The aggregate of Monthly Program Fees paid to us by
System hotels does not constitute a trust or “advertising fund” and we are not a fiduciary with respect to the Monthly
Program Fees paid by you and other System hotels. We are not obligated to expend funds in excess of the amounts received from System
hotels. If any interest is earned on unused Monthly Program Fees, we will use the interest before using the principal. The Monthly
Program Fee does not cover your costs of participating in any optional marketing programs and promotions offered by us or Hilton
from time to time in which you voluntarily choose to participate. These fees also do not cover the cost of operating the Hotel
in accordance with the standards in the Manual.

 

e.    Inspections/Compliance
Assistance. We will administer a quality assurance program for the System which may include conducting periodic inspections
of the Hotel and guest satisfaction surveys and audits to ensure compliance with System standards. We have the right to inspect
the Hotel and its operations at any time, with or without prior notice to you, and to determine if the Hotel is in compliance
with the standards and rules of operation set forth in this Agreement and in the Manual. If the Hotel fails to comply with such
standards and rules of operation, we may, at our option and at your cost, require an action plan to correct the deficiencies.
You must then take all steps necessary to correct any deficiencies within the times we establish. You may be charged a fee (“Quality
Assurance Re-Evaluation Fee”), and you will provide complimentary accommodations for the quality assurance auditor,
each time we conduct a special on-site quality assurance re-evaluation (a) after the Hotel has failed a regular quality assurance
evaluation or (b) to verify that deficiencies noted in a quality assurance evaluation report or property improvement plan have
been corrected or completed by the required dates. The Quality Assurance Re-Evaluation fee is subject to change by us from time
to time provided that any change will be established in the Manual. Our approval of an action plan does not waive any rights we
may have under this Agreement, nor does it relieve you of any obligations under this Agreement. We will also have the right to
place materials required for System and Hilton purposes at the Hotel.

 

f.    Manual.
We will issue the Manual to you, and any revisions and updates we may make to the Manual.

 

g.    Equipment
and Supplies. We will make available to you for use in the Hotel various purchase, lease, or other arrangements with respect
to exterior signs, operating equipment, operating supplies, and furnishings, which we or Hilton may have and which we make available
to other System hotels.

 

4. Proprietary Rights

 

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

 

    	3

    	 

    

 

5.   Proprietary Marks

 

a.    Use
of Trade Name. You will operate under, and prominently display, the Marks in the Hotel. You will not adopt any other names
in operating the Hotel that we do not approve. You also will not use any of the Marks, or the word “Hilton,” or other
Network trademarks, trade names or service marks, or any similar word(s) or acronyms, in (i) your corporate, partnership,
business or trade name except as we provide in this Agreement or the Manual, or (ii) any Internet-related name (including
a domain name), except as we provide in this Agreement or in the Manual, or (iii) any business operated separately from the
Hotel, including the name or identity of developments adjacent to or associated with the Hotel. You agree that any unauthorized
use of the Marks will be an infringement of our rights and a material breach of this Agreement.

 

b.    Trademark
Disputes. We and you each agree that the protection of the Marks and their distinguishing characteristics as standing for
the System is important to all of us. Accordingly, you will immediately notify us of any infringement or dilution of or challenge
to your use of any of the Marks and will not, absent a court order or our prior written consent, communicate with any other person
regarding any such infringement, dilution, challenge or claim. We will take the action we deem appropriate with respect to such
challenges and claims and have the sole right to handle disputes concerning use of all or any part of the Marks or the System.
You will extend your full cooperation to us at your expense in these matters. You appoint us as your exclusive attorney-in-fact,
to prosecute, defend and/or settle all disputes of this type at our sole discretion. You will sign any documents we believe are
necessary to prosecute, defend or settle any dispute or obtain protection for the Marks and the System and assign to us any claims
you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final.
All recoveries made as a result of disputes regarding use of all or part of the System or the Marks will be for our account.

 

c.    Web
Sites. You may not register, own, maintain or use any domain names, World Wide Web or other electronic communications sites
(collectively, “Site(s)”), relating to the Network or the Hotel or that include the Marks. The only domain
names, Sites, or Site contractors that you may use relating to the Hotel or this Agreement are those assigned or otherwise approved
in writing by us. You also agree to obtain our prior written approval concerning any third-party Site in which the Hotel will
be listed, and any proposed links between such Site and any other Site(s) (“Linked Sites”) and any proposed
modifications to same. All Sites containing any of the Marks and any Linked Sites must advertise, promote, and reflect on the
Hotel and the System in a first-class, dignified manner. You acknowledge and agree that our right to approve all materials is
necessitated by the fact that those materials will include and be linked with our Marks. Therefore, any use of the Marks on the
World Wide Web, the Internet, or any computer network/electronic distribution, must conform to our requirements, including the
identity and graphics standards for all System hotels. Given the changing nature of this technology, we have the right to withhold
our approval, and to withdraw any prior approval, and to modify our requirements.

 

You acknowledge that you may not, without
a legal license or other legal right, post on your Site(s) any material in which any third party has any direct or indirect ownership
interest (including video clips, photographs, sound bites, copyrighted text, trademarks or service marks, or any other text or
image in which any third party may claim intellectual property ownership interests). You also agree to incorporate on your Site(s)
any other information we require in the manner we deem necessary to protect our Marks.

 

Upon the expiration or termination of this
Agreement, you agree to irrevocably assign and transfer to us (or to our designee) all of your right, title and interest in any
domain name listings and registrations which contain any reference to our Marks, System, Network or Licensed Brand, and will notify
the applicable domain name registrar(s) of the termination of your right to use any domain name or Site(s) associated with the
Marks or the Licensed Brand, and will authorize and instruct the cancellation or transfer of the domain name to us (or our designee),
as directed by us. You will also delete all references to our Marks, System, Network or Licensed Brand from any other Site(s) you
own, maintain or operate beyond the expiration or termination of this Agreement.

 

    	4

    	 

    

 

d.    Covenant.
You agree, as a direct covenant with Hilton, that you will comply with all of the provisions of this Agreement related to
the manner, terms and conditions of the use of the Marks, and the termination of any right on your part to use any of the Marks.
You agree that any non-compliance by you with this covenant, the terms of this Agreement, or any unauthorized or improper use
of the System or the Marks will cause irreparable damage to us and/or to the Entities. You therefore agree that if you engage
in this non-compliance, or unauthorized and/or improper use of the System or the Marks during or after the License Term, Hilton,
its successors and assigns, separately or along with us, will be entitled to both temporary and permanent injunctive relief against
you from any court of competent jurisdiction, in addition to all other remedies that Hilton or we may have at law. You consent
to the entry of such temporary and permanent injunctions. You will be responsible for payment of all costs and expenses, including,
reasonable attorneys’ fees, which we and/or Hilton and/or the Entities may incur in connection with your non-compliance
with this covenant.

 

6. Your Responsibilities

 

a.    Operational
and Other Requirements. During the License Term, you agree to:

 

(1) promptly pay to us,
or reimburse us for, all amounts due to us and/or Hilton as Monthly Royalty Fees, Monthly Program Fees, and other charges, or for
goods or services purchased by you or your agents, including those set forth in Paragraph 7 below;

 

(2) operate the Hotel
twenty-four (24) hours a day every day, except as we may otherwise permit based on special circumstances;

 

(3) operate, furnish,
maintain and equip the Hotel in a clean, safe and orderly manner and in first-class condition in accordance with the provisions
of this Agreement and the Manual, and in compliance with all applicable local, state, and federal laws, customs and regulations,
including maintaining and conducting your business in accordance with sound business and financial practices;

 

(4) provide efficient,
courteous and high-quality service to the public;

 

(5) adopt, use and comply
with the standards, requirements, services, products, programs, materials, specifications, policies, methods, procedures, and techniques
set forth in the Manual, as it may be amended by us from time to time, and keep your Manual current at all times;

 

(6) comply with System
standards, specifications and requirements regarding the purchase of products and services, including furniture, fixtures, equipment,
food, operating supplies, consumable inventories, merchandise for resale to be used at, and/or sold from, the Hotel, in-room entertainment,
computer networking, and any and all other items used in the operation of the Hotel (collectively, the “Supplies”),
including our specifications for all Supplies. We may from time to time require you to purchase a particular brand of product (“Required
Brand”), however, you may purchase this Required Brand from any authorized source of distribution;

 

(7) comply with System
standards, specifications and requirements as to the types and levels of services, amenities and products that either must or may
be used, promoted or offered at or in connection with the Hotel;

 

(8) install, display,
and maintain signage displaying or containing the Licensed Brand name and other distinguishing characteristics in accordance with
plans, specifications and standards we establish for System hotels;

 

    	5

    	 

    

 

(9) comply with System
requirements for the training of persons involved in the operation of the Hotel, including completion by the general manager and
other key personnel of the Hotel of a training program for operation of the Hotel under the System at a site we designate, except
that if, in our sole opinion, it is not necessary or desirable for the general manager or any other key personnel of the Hotel
to complete that training program, then we may waive this requirement in whole or in part. You will pay us for all fees and charges,
if any, we require for your personnel to attend these training program(s) on the same basis as we charge other System hotels. You
will also be responsible for the wages, room, board and travel expenses of your personnel;

 

(10) purchase and maintain
property management, revenue management, in-room entertainment, telecommunications and other computer and technology systems we
designate as System-wide (or area-wide) programs based on our assessment of the long-term best interests of hotels using the System,
considering the interest of the System as a whole;

 

(11) advertise and promote
the Hotel and related facilities and services on a local and regional basis in a first-class, dignified manner, using our identity
and graphics standards for all System hotels, at your cost and expense. You agree to submit to us samples of all advertising and
promotional materials that we have not previously approved (including any materials in digital, electronic or computerized form,
or in any form of media that exists now or is developed in the future) before you produce or distribute them. You will not begin
using the materials until we approve them. You also agree to immediately discontinue your use of any advertising or promotional
materials we reasonably believe is not in the best interest of the Hotel or System, even if we previously approved the materials;

 

(12) participate in,
and pay all charges in connection with (i) all required System guest complaint resolution programs, which programs may include
chargebacks to the Hotel for guest refunds or credits, and (ii) all required System quality assurance programs, such as guest
comment card and mystery shopper programs; and maintain minimum performance standards and scores for such quality assurance programs
that we may establish from time to time in the Manual;

 

(13) comply with System
standards, specifications and requirements as to maintenance, appearance and condition of the Hotel, and adopt in your business
all changes or additions to the System as we may periodically designate;

 

(14) honor all nationally
recognized credit cards and credit vouchers issued for general credit purposes which are generally honored at other System hotels,
and enter into all necessary credit card and voucher agreements with the issuers of such cards or vouchers;

 

(15) participate in and
use, on the terms set forth in this Agreement and in the Manual, those reservation services which we require (the “Reservation
Service”), including any additions, enhancements, supplements or variants which we or the Entities develop or adopt;
and honor and give first priority on available rooms to all confirmed reservations referred to the Hotel through the Reservation
Service. You agree that the only reservation service or system you may use in regard to outgoing reservations referred by and from
the Hotel to other hotels will be the Reservation Service or other reservation services we or the Entities designate;

 

(16) comply with all
governmental requirements, including the filing and maintenance of any required trade name or fictitious name registrations, pay
all taxes, and maintain all governmental licenses and permits necessary to operate the Hotel in accordance with the System;

 

(17) permit inspection
of the Hotel by our representatives at any time to ensure compliance with System standards, cooperate fully with our representatives
during these inspections and take all steps necessary to correct any deficiencies detected within the time periods we specify.
You will also provide free lodging to our personnel at the Hotel while they are making their inspections on a space-available basis;

 

    	6

    	 

    

 

(18) provide to us statistics
on Hotel operations in the form we specify and using definitions we specify;

 

(19) not engage, directly
or indirectly, in any cross-marketing or cross-promotion of the Hotel with any other hotel, lodging or related business, except
for Affiliated Hotels (as defined in Subparagraph 6.a.21), without our prior written consent;

 

(20) participate in,
and pay all fees of, any System travel agent commission payment program(s) as modified from time to time, and promptly pay as we
require in the Manual and/or specific program terms, all travel agent commissions and third party reservation service charges (such
as airline reservation systems) in accordance with the terms of these programs;

 

(21) refer guests and
customers, wherever reasonably possible, only to, Licensed Brand, Network, Hilton International, and Conrad International hotels
(collectively, the “Affiliated Hotels”) and (if and as we direct) any other hotel systems owned or licensed
by us and/or the Entities (each, an “Other Hotel”) (except that this will not prohibit us from requiring you
to participate in programs designed to refer prospective customers to other hotels, whether in the System or otherwise); display
all material, including brochures and promotional material we provide for Affiliated Hotels and Other Hotel Systems; and allow
advertising and promotion only of Affiliated Hotels and Other Hotel Systems on the Hotel premises;

 

(22) treat as confidential
the Manual, and all other information or materials concerning the methods, techniques, plans, specifications, procedures, information,
systems and knowledge of and experience in the development, operation, marketing and licensing of the System (the “Proprietary
Information”). You acknowledge and agree that you: (i) do not acquire any interest in Proprietary Information other
than the right to utilize the same in the development and operation of the Hotel under the terms of this Agreement, (ii) will
not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Hotel
under the System, (iii) will maintain the absolute confidentiality of the Proprietary Information during and after the License
Term, (iv) will not make unauthorized copies of any portion of the Proprietary Information, and (v) will adopt and implement
all reasonable procedures we may periodically establish to prevent unauthorized use or disclosure of the Proprietary Information,
including restrictions on disclosure to employees and the use of non-disclosure and non-competition clauses in agreements with
employees, agents and independent contractors who have access to the Proprietary Information. These restrictions will not apply
to any information that does not relate or refer in any way or part to the System, Manual, Licensed Brand and/or Marks and that
you can demonstrate came lawfully to your attention before our disclosure or which, at the time of or after our disclosure, becomes
a part of the public domain through lawful publication or communication by others;

 

(23) not own, at any
time during the term of this Agreement, in whole or in part, or be the licensor of, a hotel brand, or trade name, either directly
or through an Affiliate as defined in Subparagraph 11.b.(2)(a)(i)of this Agreement, without our prior written consent. Any
entity that, directly or through an Affiliate, owns in whole or in part, or is the licensor or other owner of a hotel brand or
trade name (whether or not licensed) that, in our judgment, competes with the System, irrespective of the number of hotels comprising
the competitive hotel brand or trade name will be referred to as a “Competitor”. These restrictions do not restrict
you or your Affiliate from (i) owning a minority interest in a Competitor if you or your Affiliate do not provide services
to the Competitor (including as a consultant or employee), do not have any officer, director, or similar position with the Competitor,
and have no control or influence in the business decisions of the Competitor; (ii) being a licensee of a Competitor; or (iii) managing
a property for a Competitor;

 

(24) own fee simple title
(or long-term ground leasehold interest, provided that such interest has been granted to you by an unrelated third party ground
lessor in an arms length transaction for a term equal to, or longer than, the License Term) to the real property and improvements
of the Hotel, or, at our request, cause the fee simple owner or other third party acceptable to us, to provide its guarantee covering
all of your obligations under this Agreement in form and substance acceptable to us;

 

    	7

    	 

    

 

(25) maintain possession
and control of the Hotel and Hotel site, and promptly deliver to us a copy of any notice of default you receive from any mortgagee,
trustee under any deed of trust, or ground lessor for the Hotel, and upon our request, provide any additional information we may
request related to any alleged default or any subsequent action or proceeding in connection with any alleged default;

 

(26) refrain from directly
or indirectly conducting, or permitting by lease, concession arrangement or otherwise, gaming or casino operations in the Hotel
or on its premises without our express written permission, which we may withhold at our sole discretion, and then only to the extent
and subject to the terms set forth in such permission;

 

(27) refrain from directly
or indirectly conducting, or permitting the marketing or sale of timeshares or condominiums at, or adjacent to, the Hotel without
our express written permission, which we may withhold at our sole discretion, and then only to the extent and subject to the terms
set forth in such permission; provided, however, that the foregoing shall not prohibit you from directly or indirectly conducting
timeshare or condominium sales or marketing at and for any property located adjacent to the Hotel that is owned or leased by you
so long as (i) you do not use any of the Marks in such sales or marketing efforts and (ii) you do not use the Hotel or its facilities
in such sales, marketing efforts or business operations;

 

(28) obtain and maintain
in full force and effect from and after the confirmed Opening Date of the Hotel as set forth in Attachment A (conditional or otherwise)
all licenses required for the sale of alcoholic beverages at the Hotel (unless no alcoholic beverages are offered at or from the
premises of the Hotel);

 

(29) promptly provide
to us or Hilton all information we reasonably request with respect to you and your affiliates, including your respective officers,
directors, shareholders, partners or members, and/or the Hotel, title to the property on which the Hotel is constructed and any
other property used by the Hotel. The information requested may include, but not necessarily be limited to, financial condition,
personal and family background, litigation, indictments, criminal proceedings and the like in which any of the aforementioned may
have been involved;

 

(30) participate in,
and pay, all charges related to (i) our and Hilton’s marketing programs (in addition to programs covered by Monthly
Program Fees), and (ii) all guest frequency programs we or Hilton require. You also agree to honor the terms of any discount
or promotional programs (including any frequent guest program) that we or Hilton offer to the public on your behalf, any room rate
quoted to any guest at the time the guest makes an advance reservation, and any award guest certificates issued to Hotel guests
participating in these programs;

 

(31) operate the Hotel
so as to maximize Gross Rooms Revenue (as defined in Subparagraph 7.b.) consistent with sound marketing and industry practice
and not engage in any conduct that is likely to reduce Gross Rooms Revenue in order to further other business activities; and

 

(32) maintain, at your expense, insurance,
of the types, and in the minimum amounts, we specify in the Manual. All such insurance must (i) be with insurers having minimum
ratings we specify, (ii) name as additional insureds the parties we specify in the Manual, and (iii) carry the endorsements
and notice requirements we specify in the Manual. If you fail or neglect to obtain or maintain the insurance or policy limits required
by this Agreement, we have the option, but not the obligation to obtain and maintain such insurance without notice for you, and
you, will immediately upon our demand, pay us the premiums and cost we incur in obtaining this insurance.

 

    	8

    	 

    

 

b.    Hotel
Quality Assurance. We may from time to time require you to modernize, rehabilitate and/or upgrade the Hotel’s fixtures,
equipment, furnishings, furniture, signs, computer hardware and software and related equipment, supplies and other items to meet
the then-current standards and specifications specified in the Manual. These standards will benefit the System as a whole and
you will make all these changes at your sole cost and expense. Nothing in this paragraph will relieve you from the obligation
to maintain acceptable product quality ratings at the Hotel and maintain the Hotel in accordance with the Manual at all times
during the Agreement. We may make limited exceptions to some of those standards based on local conditions or special circumstances,
but we are not required to do so. You may not make any change in the number of approved guest rooms (the “Guest Rooms”)
set forth in the Rider or any other significant change (including major changes in structure, design or decor) in the Hotel without
our prior written approval. Minor redecoration and minor structural changes that comply with our standards and specifications
will not be considered significant.

 

c.    Staff
and Management. You are at all times responsible for the management of the Hotel’s business. You may fulfill this responsibility
only by providing (i) qualified and experienced management, which may be a third-party management company, and (ii) a
general manager, (the “Management”), each approved by us in writing. However, you represent and agree that
you have not, and will not, enter into any lease, management agreement or other similar arrangement for the operation of the Hotel
or any part of the Hotel with any person or entity without our prior written consent. To be approved by us as the operator of
the Hotel, you or any proposed Management must be qualified to manage the Hotel. We may refuse to approve you or any proposed
Management which, in our reasonable business judgment, is inexperienced or unqualified in managerial skills or operating capacity
or capability, or is unable to adhere fully to the obligations and requirements of this Agreement. You understand that we reserve
the right to not approve a Competitor, or any entity that (through itself or an affiliate) is the exclusive manager for a Competitor,
to manage the Hotel. If the Management becomes a Competitor or otherwise becomes unsuitable in our sole discretion to manage the
Hotel at any time during the License Term, you will have ninety (90) days to retain qualified substitute Management acceptable
to us. Any Management must have the authority to perform all of your obligations under this Agreement, including all indemnity
and insurance obligations. In the case of any conflict between this Agreement and any agreement with Management, this Agreement
prevails.

 

7. Fees

 

a.    Monthly
Fees. Beginning on the Opening Date, you will pay to us for each month (or part of a month, including the final month you
operate under this Agreement) the Monthly Royalty Fees as set forth and defined in the Rider and a Monthly Program Fee in the
amount of four percent (4%) of the Hotel’s Gross Rooms Revenue (as the term is defined more specifically in Subparagraph 7.b.
below) for the preceding calendar month. The amount of this Monthly Program Fee is subject to change by us from time to time,
provided that any change will be established in the Manual. However, increase in the Monthly Program Fee, if any, will not exceed
one percent (1%) of the Hotel’s Gross Rooms Revenue in any calendar year, and the cumulative increases in the Monthly Program
Fee, during the Term of this Agreement, will not exceed five percent (5%) of Gross Rooms Revenue.

 

b.    Determination
and Payment of Fees. The monthly fees (described in Subparagraph 7.a.) will be determined in accordance with the accounting
methods of then current Uniform System of Accounts for Lodging Industry (currently, the Ninth Revised Edition, 1996), or such
other accounting methods as may otherwise be specified by Licensor from time to time in the Manual. “Gross Rooms Revenue,”
as used in the calculation of the Monthly Royalty Fee and the Monthly Program Fee under the Agreement, means all revenues derived
from the sale or rental of Guest Rooms (both transient and permanent) of the Hotel, including guaranteed no-show revenue and credit
transactions, whether or not collected, at the actual rates charged, less allowances for any Guest Room rebates and overcharges,
and will not include federal, state and local taxes collected directly from patrons or guests. Gross Rooms Revenue will also include
the proceeds from any business interruption insurance applicable to loss of revenues due to the non-availability of Guest Rooms.
The Monthly Royalty Fee and the Monthly Program Fee will be paid to us at the place we designate on or before the fifteenth (15th)
day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly
Royalty Fee and Monthly Program Fee for such month. There will be an annual adjustment within ninety (90) days after the end of
each operating year so that the total Monthly Royalty Fees and Monthly Program Fees paid annually will be the same as the amounts
determined by audit. We reserve the right to require you to transmit the Monthly Royalty Fee and the Monthly Program Fee and all
other payments required under this Agreement by wire transfer or other form of electronic funds transfer. You agree to bear all
costs of wire transfer or other form of electronic funds transfer.

 

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c.    Room
Addition Fee. If you desire to add or construct additional Guest Rooms at the Hotel (the “Room Addition”)
at any time after you Open the Hotel under the Licensed Brand, you will pay us a nonrefundable fee equal to the prevailing per
Guest Room initial fee charged to System hotels multiplied by the number of additional Guest Rooms (“Room Addition Fee”).
You must pay the Room Addition Fee to us when you submit an application for the Room Addition, and you must submit that application
to us before you enter into any agreement to construct the Room Addition. As a condition to our granting approval of your Room
Addition application, we may require you to modernize, rehabilitate or upgrade the Hotel, subject to Subparagraph 6.b. of
this Agreement.

 

d.    Other
Fees. You will timely pay all amounts due any of the Entities for any invoices or for goods or services purchased by or provided
to you or paid by any of the Entities on your behalf, including pre-opening sales and operations training.

 

e.    Taxes.
If any gross receipts, sales, use, excise or any similar tax (the “Gross Receipts Tax”) is imposed upon
Hilton based on any payment(s) made by you to Hilton under this Agreement, then you must reimburse us for any such Gross Receipts
Tax to ensure that the amount of your payment(s) we retain after we pay the Gross Receipts Tax, equals the full amount of the
payment(s) you are required to pay us under this Agreement had such Gross Receipts Tax not been imposed on Hilton.

 

This Subparagraph 7.e.,
does not apply to federal or state income taxes payable by Licensor or Hilton as a result of its net income relating to any fees
collected under this Agreement.

 

f.    Application
of Fees. We may apply any amounts received under this Paragraph 7 to any amounts due under this Agreement. If any amounts
are not paid when due, such non-payment will constitute a material breach of this Agreement and, in addition, such unpaid amounts
will accrue a service charge beginning on the first day of the month following the due date of one and one-half percent (1 1⁄2%)
per month or the maximum amount permitted by applicable law, whichever is less. Should we hire counsel to collect any amounts
due under this Agreement, and/or any late charges, you will pay our reasonable attorneys’ fees.

 

8. Records and Audits

 

a.    Reports.
At our request, you will prepare and deliver to us daily, monthly, quarterly and annual operating statements, profit and loss
statements, balance sheets, and other reports (the “Reports”) we require, prepared in the form, and by the
methods and within the time frames, we require in the Manual. The reports will contain all information we require, including daily
rate and room occupancy, and will be certified as accurate in the manner we require. You will also provide us any additional related
information and Reports we may periodically request and permit us to inspect your books and records at all reasonable times. At
least monthly, you will prepare a statement that will include all information concerning Gross Rooms Revenue, other revenues generated
at the Hotel, room occupancy rates, reservation data and other information we require (the “Data”). By the
fifteenth (15th) day of each month, you will submit to us a statement setting forth the Data for the previous month and reflecting
the computation of the amounts then due under Paragraph 7, in the form and detail we reasonably request.

 

b.    Maintenance
of Records. You will, in a manner and form satisfactory to us and using accounting and reporting standards we reasonably require,
prepare on a current basis (and preserve for no less than the greater of four (4) years or our record retention requirements),
complete and accurate records concerning Gross Rooms Revenue and all financial, operating, marketing and other aspects of the
Hotel, and maintain an accounting system that fully and accurately reflects all financial aspects of the Hotel and its business.
These records will include books of account, tax returns, governmental reports, register tapes, daily reports, and complete quarterly
and annual financial statements (including profit and loss statements, balance sheets and cash flow statements).

 

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c.    Audit.
We may require you to have the Gross Rooms Revenue or other monies due to us computed and certified as accurate by a certified
public accountant. During the License Term and for two (2) years thereafter, we and our authorized agents will have the right
to verify information required under this Agreement by requesting, receiving, inspecting and auditing, at all reasonable times,
any and all records referred to above wherever they may be located (or elsewhere if requested by us). If any inspection or audit
reveals that you understated or underpaid any payment due to us that is not fully offset by overpayments, you will promptly pay
to us the deficiency plus interest from the date each payment was due until paid at a rate of one and one-half percent (11⁄2%)
per month or the maximum amount permitted by applicable law, whichever is less. If the audit or inspection reveals that the underpayment
is either willful, or is for five percent (5%) or more of the total amount owed for the period being inspected, you will also
reimburse us for all inspection and audit costs (including reasonable travel, lodging, meals, salaries and other expenses of the
inspecting or auditing personnel). Our acceptance of your payment of any deficiency will not condone your breach of this Agreement,
or waive that breach, or any rights we may have for your breach, including our right to terminate this Agreement as provided in
Paragraph 14. If the audit discloses an overpayment, we will credit this overpayment against your future payments under this
Agreement, without interest, or if no future payments are due under this Agreement, we will promptly pay you the amount of the
overpayment without interest.

 

d.    Ownership
of Information. All of the information we obtain from you or about the Hotel or its guests under this Agreement, or under
any agreement ancillary to this Agreement (including agreements relating to the computerized reservation, revenue management,
property management, and other system(s) we provide or require), or otherwise related to the Hotel (the “Information”),
and all revenues we derive from such Information will be our property. However, you may at any time during or after the License
Term use to the extent lawful and at your sole risk and responsibility any information that you acquire from third parties in
operating the Hotel, such as customer data. The Information (except for Information you provide to us or Hilton with respect to
you and your affiliates, including your respective officers, directors, shareholders, partners or members) will become our Proprietary
Information which we may use for any reason as we deem necessary or appropriate, in our discretion, including making an earnings
claim in our UFOC.

 

9. Indemnity

 

You agree, during and
after the License Term, to indemnify us and the Entities, and our successors and assigns, and the members, officers, directors,
employees, agents, predecessors, successors and assigns of each such entity (the “Indemnified Parties”) against,
and hold them harmless from, all losses, costs, liabilities, damages, claims, and expenses, including reasonable attorneys’
fees, arising out of or resulting from (i) any claimed occurrence at the Hotel or arising from, as a result of, or in connection
with the development, construction or operation of the Hotel (including the design, construction, financing, furnishing, equipment,
acquisition of Supplies or operation of the Hotel in any way); (ii) any bodily injury, personal injury, death or property
damage suffered by any guest, customer, visitor or employee of the Hotel; (iii) your alleged or actual infringement or violation
of any patent, mark or copyright or other proprietary right owned or controlled by third parties; (iv) your alleged or actual
violation or breach of any contract, federal, state or local law, regulation, ruling, standard or directive applicable to the Hotel,
or of any industry standard; (v)  any other business conducted by you or a third party in, on or about the Hotel or its grounds;
or (vi) any other of your acts, omissions or obligations or those of anyone associated or affiliated with you or the Hotel or in
any way arising out of or related to this Agreement. However, you do not have to indemnify us to the extent damages otherwise covered
under this Paragraph 9 are adjudged by a court of competent jurisdiction to have been the result of the gross negligence or
willful misconduct of any of the Indemnified Parties so long as the claims are not asserted on the basis of (i) theories of
vicarious liability, including agency, apparent agency or employment or (ii) our failure to compel you to comply with the
provisions of this Agreement. You will give us written notice of any action, suit, proceeding, claim, demand, inquiry or investigation
involving an Indemnified Party within five (5) days of your actual or constructive knowledge of it. At our election, you will defend
us and/or the Indemnified Parties against the same, or we may elect to assume (but under no circumstance will we be obligated to
undertake) the defense and/or settlement of the action, suit, proceeding, claim, demand, inquiry or investigation at your expense
and risk. We may obtain separate counsel of our choice if we believe your and our interests may conflict. Our undertaking of defense
and/or settlement will in no way diminish your obligation to indemnify the Indemnified Parties and to hold them harmless. In either
case, you will also reimburse the Indemnified Parties upon demand for all expenses, including reasonable attorneys’ fees
and court costs the Indemnified Parties incur to protect themselves, or to remedy your defaults. Under no circumstances will the
Indemnified Parties be required to seek recovery from third parties or otherwise mitigate their losses to maintain a claim against
you, and their failure to do so will in no way reduce the amounts recoverable from you by the Indemnified Parties. Further, you
will indemnify the Indemnified Parties for any claim for damages by reason of failure of any contractor, subcontractor, supplier
or vendor doing business with you relating to the Hotel to maintain adequate insurance as required in the Manual.

 

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10. Right of First Offer: INTENTIONALLY
DELETED

 

11. Transfer

 

a.     Our
Transfer of this Agreement. We have the right to transfer or assign this Agreement or any of our rights, obligations, or assets
under this Agreement to any person or legal entity. You acknowledge and agree that this Agreement is a license for the Licensed
Brand only, and the programs that are unique to the Licensed Brand. Therefore, if we transfer or assign this Agreement, your right
to use any programs, rights or services related to or provided by the Entities or their designees, including the Reservation Service,
any guest frequency program not unique to the Licensed Brand, and any Marks (except the principal name identified in the Rider),
may terminate. The transferee must assume all of our obligations to you under this Agreement.

 

b.           Your
Transfer. We recognize that at some time, you or other persons associated with you or the Hotel may want to sell or transfer
all or part of an interest in this Agreement, the Licensee or in the Hotel. At the same time, you understand and acknowledge that
the rights and duties set forth in this Agreement are personal to you, and that we are entering into this Agreement in reliance
on your business skill, financial capacity, and personal character (if you are an individual), and that of your officers, directors,
partners, members, stockholders or trustees (if you are a partnership, company, corporation, trust or other legal entity). As
a result, you agree that if you or other persons associated with you or the Hotel desire to sell, transfer or lease an interest
in this Agreement, the Licensee or in the Hotel, or in any entity that has an interest in this Agreement, the Licensee or the
Hotel, you will abide by the terms of this Subparagraph 11.b.

 

For purposes of this Subparagraph 11.b.,
the term “control” in all its forms, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of an entity, or of the power to veto major policy decisions of an entity, whether
through the ownership of voting securities, by contract, or otherwise. References in this Agreement to “Equity Interests”
mean any direct or indirect beneficial interest in the Licensee, the Equity Owners and/or the Hotel (an “indirect”
interest is an interest in an entity other than the Licensee that either itself, or through others, has an interest in the Licensee).
References in this Agreement to “Equity Owners” mean the owners of a direct or indirect Equity Interest in the
Licensee, the Agreement, and/or in the Hotel. “Publicly Traded Equity Interest” means any Equity Interest that
is traded on any securities exchange or is quoted in any publication or electronic reporting service maintained by the National
Association of Securities Dealers, Inc., or any of its successors. In computing changes of Equity Interests, limited partners will
not be distinguished from general partners except as provided below. General partners, managing members and other controlling interests
in Licensee will be considered Equity Owners for purposes of this section, regardless of whether they have any actual ownership
interest in the Licensee. Non-voting equity interests may not qualify as an Equity Interest, at our discretion. Our judgment will
be final if there is any question as to the definition of Equity Interest or as to the computation of relative Equity Interests.
You represent that as of the date of this Agreement the Equity Interests are directly and (if applicable) indirectly owned as shown
on the Rider.

 

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(1)           Transfers
That Do Not Require Our Consent or Notification.

 

(a)           Privately
Held Equity Interests: Less than 25% Change/No Change of Control. Equity Interests that are not publicly traded may be transferred
by you and the Equity Owners without notice to us and without our consent, if after the transaction: (i) less than twenty-five
percent (25%) of all Equity Interests in Licensee will have changed hands since the date of this Agreement, and (ii) there
has not been a change of control of the Licensee, of this Agreement or of the Hotel since the date of this Agreement.

 

(b)           Publicly
Held Equity Interests. Publicly Traded Equity Interests may be transferred without notice to us and without our consent if
the transfer does not effectuate a change of control of the Licensee, of this Agreement or of the Hotel since the date of this
Agreement.

 

(c)           Commercial
Leases. You may lease or sublease commercial space in the Hotel that is customarily subject to lease, or enter into concession
arrangements in the ordinary course of business at the Hotel, without notice to us and without our consent.

 

(2)           Other
Transfers. No other direct or indirect interest in the Hotel or in this Agreement, and no direct or indirect Equity Interest
in the Licensee, may be sold, leased, assigned, or transferred in any way (individually or collectively, a “Transfer”),
except as specifically provided in this Subparagraph 11.b.(2). If you or any Equity Owners want to transfer any Equity Interest,
other than in a transaction that meets the requirements of the foregoing clause (1), you must first notify us and you must
first obtain our consent.

 

(a)          Permitted
Transfers. Certain transfers are transfers we describe as “Permitted Transfers.” We will consent to a Permitted
Transfer, so long as you (i) give us sixty (60) days advance written notice of any proposed Permitted Transfer (the “Permitted
Transfer Consent Request”), and (ii) submit to us a nonrefundable processing fee of Two Thousand Five Hundred Dollars
($2,500) with the Permitted Transfer Consent Request to cover our costs to review the Transfer (except that in the case of a Transfer
of Equity Interests which requires registration under any federal or state securities law, you must pay us an additional processing
fee of Two Thousand Five Hundred Dollars ($2,500) as provided for in Subparagraph 11.b.(3) below), and meet the requirements
for the particular Permitted Transfer as described below.

 

(i)          Affiliate
Transfer. You or any Equity Owners as of the date of this Agreement may sell, lease, transfer or otherwise convey any Equity
Interest to an Affiliate (each an “Affiliate Transfer”); provided that such event does not, in our opinion,
result in a change in the ultimate controlling Equity Owners of the Licensee, this Agreement or the Hotel and the following conditions
are met. “Affiliate” means, with respect to any entity, any natural person or firm, corporation, partnership,
association, trust or other entity which, directly or indirectly, controls, is controlled by, or is under common control with,
you or any Equity Owners as of the date of this Agreement. A natural person or entity which has an entity as an Affiliate will
also be deemed to be an Affiliate of that entity. We will not withhold our consent to an Affiliate Transfer if (x) you are not
then in material default under this Agreement; (y) the Affiliate Transfer is not, directly or indirectly, to a Competitor; and
(z) you otherwise satisfy the conditions as set forth in Subparagraphs 11.b.(2)(b)(i)-(vii), (ix) and (x) below that we may require
you to satisfy.

 

(ii)         Family
Transfers. If you or any Equity Owners as of the date of this Agreement are a natural person, and desire to sell, lease, transfer
or otherwise convey any Equity Interest to: (x) a member or member of your or any such Equity Owner’s immediate family i.e.
spouse, children, parents, siblings (“Family Members”) or (y) a trust or trusts for the benefit of Equity Owner
or the Equity Owner’s Family Member(s) (each, a “Family Transfer”), in either case, without causing a
change in the ultimate controlling Equity Owners of the Licensee, this Agreement, or the Hotel, we will not withhold our consent
to a Family Transfer if you otherwise satisfy the conditions set forth in Subparagraphs 11.b.(2)(b)(i)-(vii), (ix), and (x) below
that we may require you to satisfy.

 

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(iii)        Transfer
Upon Death. Upon the death of a Licensee or Equity Owner, this Agreement or the Equity Interest (if applicable) may pass in
accordance with such person’s will or, if such person dies intestate, in accordance with laws of intestacy governing the
distribution of such person’s estate, without our consent, provided that (x) the Transfer is to a Family Member or to a legal
entity formed by such Family Member(s), and (y) within one (1) year after the death, such Family Member(s) or entity meets all
our then current requirements for an approved applicant.

 

(iv)        Brick
and Mortar Transfers. You may sell, lease or transfer the Hotel, the Hotel site, or any portion thereof if, in our reasonable
judgment, after the sale, you retain possession and control of the Hotel site and the management control of the Hotel operations
and continue to comply with the requirements of Subparagraph 6.a.(24), provided you give us at least sixty (60) days’
prior notice of the proposed transfer, and any Transfer Information (as defined below) that we request. If, in our reasonable
judgment, the Transfer will result in your loss of possession or control of the Hotel or Hotel site or management of the Hotel,
the sale will then be considered a change of ownership and you must comply with the provisions of Subparagraph 11.b.(2)(b).

 

(v)         Privately
Held Equity Interests: 25% or Greater Change/No Change of Control. You or any Equity Owners as of the date of this Agreement
may sell, lease, transfer or otherwise convey Equity Interests if a twenty-five percent (25%) or more cumulative change in Equity
Interests in Licensee will have changed hands since the date of this Agreement; provided that such event does not, in our opinion,
result in a change in the ultimate controlling Equity Owner of the Licensee, this Agreement or the Hotel and the following conditions
are met: (x) you are not then in material default under this Agreement; (y) the Transfer is not, directly or indirectly, to a Competitor;
and (z) you otherwise satisfy the conditions as set forth in Subparagraphs 11.b.(2)(b)(i)-(vii), (ix) and (x) below that we may
require you to satisfy.

 

(b)          Change
of Ownership.  Any proposed Transfer that does not otherwise qualify as a Permitted Transfer as defined in Subparagraph 11.b.(2)(a)
above will be considered a change of ownership (“Change of Ownership”). If there is a proposed Change of Ownership
and the proposed owner desires to continue to operate the Hotel as a System hotel, the proposed owner must submit to us a complete
application for a new franchise license agreement (the “Change of Ownership Application”) accompanied by payment
of our then prevailing application fee. If we do not approve the Change of Ownership Application, we will refund the application
fee, less Two Thousand Five Hundred Dollars ($2,500) for processing costs. The proposed owner may also be required to pay the then
prevailing property improvement plan (“PIP”) fee for us to determine the renovation requirements for the Hotel.
If we approve the Change of Ownership Application, the new owner will then be required to pay any other applicable fees and charges
we then impose for new Licensed Brand franchise licenses.

 

We will process the Change of Ownership
Application in accordance with our then current procedures, including review of criteria and requirements regarding upgrading of
the Hotel, credit, background investigation, operations abilities and capabilities, prior business dealings, market feasibility,
guarantees, and other factors we consider relevant. We will have sixty (60) days from our receipt of the completed and signed application
to consent or withhold our consent to the proposed owner as Licensee.

 

We may, at our option, or as applicable,
make our consent subject to satisfaction of certain conditions, including:

 

(i)          The
cure of any existing defaults or events that would become defaults with the giving of notice and passage of time, including, the
payment in full at the closing of the Transfer (the “Closing”) of all unpaid obligations owed to us and any
Entities by you, and/or the renovation by you or the proposed owner of all or part of the Hotel;

 

(ii)         Receipt
of evidence from the transferee that insurance coverage, as required by this Agreement, is in full force and effect on the date
of Closing;

 

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(iii)        Payment
of the amount of any fees and charges we estimate will accrue to us or any of the Entities through the date of Closing;

 

(iv)        That
you at all times remain in compliance with the terms of this Agreement pending the Closing;

 

(v)         Your
signing of an estoppel and a general release in a form satisfactory to us, of any and all claims, demands and causes of action
that you and your partners, proprietors, directors, officers, shareholders, members, successors and assigns (as the case may be)
may or might have against us or any of the Entities, and their respective officers, directors, shareholders, agents, attorneys,
contractors and employees in their corporate and individual capacities including claims arising under federal, state and local
laws, rules and ordinances;

 

(vi)        That
you submit to us all information related to the Transfer that we may reasonably require, including copies of any proposed agreement(s),
the proposed ownership structure of the proposed transferee if ownership of this Agreement or of the Hotel is being transferred
and/or all entities involved, the names and addresses of the proposed owners of the Equity Interests and of the site at which the
Hotel is operated, and financial statements and business information for all participants in the proposed sale or lease (collectively,
the “Transfer Information”);

 

(vii)       Evidence
of adequate assurances (as determined by us in our sole discretion) of the proposed owner’s assumption of and ability to
perform all, or its pro rata share, of your or any Equity Owners’ obligations under this Agreement;

 

(viii)      Execution
by you of our then-current standard form of voluntary termination agreement covering termination of this Agreement and execution
by the new owner of a new franchise license agreement (“New License”) with us for the then unexpired term of
this Agreement (or for such other term as we may approve in our sole discretion). The New License will (i) be on our then
current form for the grant of new franchise licenses, (ii) contain our then current license terms (except for duration), and
(iii) contain upgrading and other requirements, if any, that we impose.

 

(ix)         Execution
of our then-current standard form of guarantee of franchise license agreement by the same guarantors, if any, of this Agreement
or substitute guarantors we approve; and

 

(x)          Successful
completion by the proposed owner and its management team of any training and orientation programs we require.

 

We have the right to
withhold our consent to any proposed Transfer if any of these conditions are not met to our satisfaction, or if the proposed owner
is a Competitor. If we approve the Change of Ownership Application, we will not assess you any liquidated damages for early termination
of this Agreement as long as the New License is signed by the new owner no later than the Closing of the Change of Ownership transaction.
If we do not approve the Change of Ownership Application, or if you or the new owner do not comply with all these conditions and
the Transfer still occurs, then you will be in material default of this Agreement and we will be entitled to all of our remedies,
including the right to terminate this Agreement, and the right to payment of all amounts set forth in Subparagraph 14.c.

 

(3)            Public
Offering. If you “offer to sell” or “sell” any “securities” in the Licensee or in the
Hotel, you shall do so in accordance with the terms and conditions set forth in this Subparagraph 11.b.(3). All materials
required by federal, state or other applicable law for the offer or sale of those securities must be submitted to us for review
at least twenty (20) days before the date you distribute those materials, or file them with any governmental agency, including
any materials to be used in any offering exempt from registration under federal or state securities laws. You must submit a non-refundable
Two Thousand Five Hundred Dollar ($2,500) processing fee to us with the offering documents, and agree to pay any additional costs
we may incur in reviewing your documents, including reasonable attorneys’ fees. You also may not use any of the Marks or
otherwise imply Hilton’s or our participation or endorsement of any securities offering. We will have the right to approve
any description of this Agreement or of your relationship with us, or any use of the Marks, contained in any “prospectus”
or other communications or materials you use in the sale or offer of any “securities.” You may not imply Hilton’s
or our participation in or endorsement of any such “securities.” To the extent we give you any comments to your documents,
you must modify the documents to address those comments, satisfactory to us, before filing or distributing the documents. Our
review of these documents will not in any way be considered our agreement with any statements contained in those documents, including
any projections, or our acknowledgment or agreement that the documents comply with any applicable laws.

 

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You may not sell any
“securities” unless you do so in compliance with all applicable federal and state securities laws, and unless you clearly
disclose to all purchasers and offerees that (i) neither we, nor any Entity, nor any of our or their respective officers,
directors, agents or employees, will in any way be deemed an “issuer” or “underwriter” of said “securities,”
and that (ii) we, the Entities, and our respective officers, directors, agents and employees have not assumed and will not
have any liability or responsibility for any financial statements, prospectuses or other financial information contained in any
“prospectus” or similar written or oral communication. You agree to indemnify, defend and hold the Indemnified Parties
free and harmless of and from any and all liabilities, costs, damages, claims or expenses arising out of or related to the “sale”
or “offer” of any of your “securities” to the same extent as provided in Paragraph 9 of this Agreement.
All terms used in this Subparagraph 11.b.(3) will have the same meaning as in the Securities Act of 1933, as amended.

 

(4)         Transfers
Not in Accordance With This Agreement. Any purported Transfer, by operation of law or otherwise, not in accordance with the
provisions of this Agreement, will be null and void and will constitute a material breach of this Agreement, which will allow us
to terminate this Agreement without giving you any opportunity to cure. Further, we will have all other rights and remedies, including
the right to specific performance or mandatory or prohibitory injunctive relief, to redress any attempt on your part to transfer
this Agreement other than in accordance with the provisions of this Agreement.

 

(5)         Pledge
to Lending Institution. Notwithstanding any other provision of this Agreement, you do not need to notify us to obtain our approval
if you want to pledge or mortgage the assets of the Hotel or any Equity Interest to a third-party bank or other commercial lending
institution that is not a Competitor. However, you do need to notify us and obtain our consent if you want to pledge or mortgage
your interest in this Agreement. As a condition to our giving our consent to a pledge or mortgage of this Agreement we will require
the lender to sign a lender comfort letter that describes our requirements on foreclosure, and
includes an estoppel and general release of Claims that you may have against us, Hilton or the Entities, in a form satisfactory
to us. If it desires to continue to operate the Hotel as a System hotel, the lender will be required to conform to the lender
comfort letter signed with us or, if no lender comfort letter was signed, then it must meet the terms and conditions of this Agreement
for a Transfer involving a Change of Ownership.

 

12. Condemnation and Casualty

 

a.   Condemnation.
You will, at the earliest possible time, give us notice of any proposed taking of any portion of the Hotel by eminent domain.
If we agree that the Hotel or a substantial part of the Hotel is to be taken, we may, in our sole discretion and within a reasonable
time of the taking (within four months) transfer this Agreement to a nearby location you select. If we approve a new location,
and if within one (1) year of the closing of the Hotel you open a new hotel (or are diligently proceeding toward opening a new
hotel and ultimately do so) at the new location in accordance with our specifications and in accordance with our timing requirements,
then the new hotel will be deemed to be the Hotel licensed under this Agreement. If a condemnation takes place and a new hotel
does not, for whatever reason, become the Hotel under this Agreement in strict accordance with this Paragraph 12 (or if it
is reasonably evident to us that this will be the case), then we may terminate this Agreement immediately upon notice to you,
and we will not require you to pay a Termination Fee under Subparagraph 14.c.

 

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b.   Casualty.
If the Hotel is damaged by fire or other casualty, you will immediately notify us. If the damage or repair requires closing
the Hotel, you may choose to repair or rebuild the Hotel according to our standards, provided you (i) immediately notify
us (ii) begin reconstruction within four (4) months after closing, and (iii) reopen the Hotel for continuous business
operations as soon as practicable (but in any event within one (1) year after the closing of the Hotel), giving us ample advance
notice of the date of reopening. Until we determine that the Hotel can be re-opened as a System hotel, the Hotel will not promote
itself as a System hotel, or otherwise identify itself with any of the Marks without our prior written consent. You and we each
have the right to terminate this Agreement if you elect not to repair or rebuild the Hotel as set forth above in this Paragraph 12,
provided the terminating party gives the other party sixty (60) days written notice, in which case we will not require you to
pay a Termination Fee under Subparagraph 14.c; provided however, if subsequent to such termination notice and prior to the
natural expiration of the License Term, you, or any of your Affiliates, have a controlling interest in and/or operate a hotel
at this Hotel site and such hotel is not operated under a license or franchise from one of the Entities, then you must pay us
the Termination Fee.

 

c.   No
Extensions of Term. Nothing in this Paragraph 12 will extend the License Term.

 

13.    Term of License.

 

a.    Unless
terminated earlier, this Agreement will expire without notice on the date set forth on the Rider. You acknowledge and agree that
this Agreement is non-renewable and that this Agreement confers upon you absolutely no rights of license renewal whatsoever following
the expiration of the License Term.

 

b.    Renewal
Option. Notwithstanding the terms set forth in Paragraph 13.a above, you will have a one-time option to extend the License
Term (“Renewal Option”) for an additional five (5) years provided that you strictly comply with each of the
following conditions:

 

(i)   You
provide written notice of your exercise of the Renewal Option at least twelve (12) months prior to the expiration of the License
Term (the “Renewal Notice”);

 

(ii)   Within
the time frame specified by us, you (a) enter into an amended and restated franchise license agreement for the Hotel upon the then-current
form in use by us, and (b) comply with all terms, conditions, fees and charges then commonly imposed by us for a franchise re-licensing,
including your satisfactory completion of any required renovations and any other work required to ensure that the Hotel meets our
then-current physical and operational requirements necessary to maintain the Hotel as a System hotel; and

 

(iii)
   You are not in default under this Agreement at any time from the date of the Renewal Notice through the effective
date of the amended and restated franchise license agreement. Should you be in default during such period, the Renewal Notice will
be deemed cancelled, your Renewal Option will become void and this Agreement will terminate at the end of the License Term, unless
terminated earlier in accordance with the terms of this Agreement.

 

14.   Termination

 

a.    Termination,
Suspension or Other Interim Remedies by Us on Advance Notice. In addition to our right to immediately terminate this Agreement
upon the occurrence of certain events as provided in Subparagraph 14.b below, we have the right to terminate this Agreement
immediately upon notice to you if you fail to cure an Event of Default (as defined in Subparagraph 14.a.(1)) within thirty
(30) days after we furnish notice of default to you based on the Event of Default, or, if there is a non-monetary Event of Default
that is incapable of cure within thirty (30) days, if you fail to commence to cure within such thirty (30) day period and diligently
pursue cure of such default and fail to cure the default within the additional time periods we set forth in the notice of default.
In lieu of Event of Default termination at such time, we may elect to postpone termination for a period of time we alone determine
and impose one or more of the Interim Remedies listed below in subsection (3), it being expressly understood that, at any time
after doing so, we continue to retain the right – exercisable at any time we determine – to terminate this Agreement.

 

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(1)   An
“Event of Default” will occur if you fail to satisfy or comply with any of the obligations, requirements, conditions,
or terms set forth in (i) this Agreement, the Manual (including the standards in the Manual and minimum performance scores
required by the Manual), or any attachment to this Agreement; or (ii) any other agreement you have with us, or any of the
Entities, relating to the Hotel, including, any computer system agreement, or any agreement to manage the Hotel. An “Event
of Default” will also occur if you make any misrepresentations to us, whether in entering into this Agreement, or in the
performance of your obligations to us.

 

(2)   Our
notice of termination will not relieve you of your obligations under this Agreement or any of its attachments.

 

(3)   After
expiration of the applicable notice and cure periods for an Event of Default, we may at anytime elect to postpone termination for
a period of time we alone determine and impose any one or more of the following interim remedies (each, an “Interim Remedy”),
including the suspension of our and/or Hilton’s obligations under this Agreement and/or the Hilton Information Technology
System Agreement, and any other agreement between you and us or any Affiliate related to this Hotel and/or the property upon which
the Hotel is located (collectively, “Your Agreements”):

 

(a)   We
and/or Hilton may suspend you from any reservation and/or website services. We may remove the listing of the Hotel from any directories
we publish, and from any advertising we publish, and/or remove or suspend you from the Reservation Service. If we suspend you from
the Reservation Service, we will have the right to divert reservations previously made for the Hotel to other System hotels.

 

(b)   We
and/or Hilton may disable all or any part of the software provided to you pursuant to Your Agreements, and/or may suspend any one
or more of the information technology and/or network services that we and/or Hilton provide or support under Your Agreements.

 

(c)   We
and/or Hilton may charge you for: the cost of any computer hardware, computer software, other information technology and/or information
technology service which we and/or Hilton provided to you at no additional charge other than the fees you paid under Your Agreements;
costs related to such suspending, disabling, together with intervention or administration fees set forth in the Manual; and, the
cost of any computer hardware, computer software, other information technology and/or information technology service we and/or
Hilton determine to provide you (in our and Hilton’s sole discretion) (each, an “Information Technology Recapture
Charge”). An Information Technology Recapture Charge may, at our sole option, take the form of one or more specific dollar
amounts and/or of a percentage increase to any of the fees charged based on a percentage of your Gross Room Revenues under this
Agreement and/or Your Agreements (a “Percentage Fee”). If an Information Technology Recapture Charge consists
of one or more specific dollar amounts, then you must pay each such amount to us or Hilton immediately upon demand. If an Information
Technology Recapture Charge consists of an increase to a Percentage Fee, you must pay the increased Percentage Fee when and as
provided in Your Agreements (as applicable). You understand and agree that such increases may be levied in any Percentage Fee notwithstanding
any other provision of this Agreement and/or any other of Your Agreements. 

 

If,
after we impose any Interim Remedy, but before we exercise our reserved right to terminate this Agreement (as provided above),
you completely cure to our satisfaction the subject Event(s) of Default, then we may either elect to terminate this Agreement despite
your untimely cure, or, at our sole option, elect not to terminate this Agreement; if the latter, we will withdraw the Interim
Remedy on a going-forward basis.

 

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You agree that our exercise
of the right to elect Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement,
and that the rights granted to us in this clause (3) to elect Interim Remedies are in addition to, and apart from, any other
rights we may have in this Agreement, including our right to thereafter at any time we determine terminate this Agreement. If we
exercise the right to elect Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition
of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any
fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim
Remedy.

 

(4)   In
addition to the cure requirements specified in our written notice of an Event of Default, we may also require you to cause person(s)
or entity(ies) acceptable to us to guarantee all of your obligations under this Agreement by executing our then-current standard
form guarantee.

 

b.   Immediate
Termination by Us. We have the right to terminate this Agreement immediately upon notice to you (or terminate it at the earliest
time permitted by applicable law) if one or more of the following breaches to this Agreement or any of its attachments occur:

 

(1)   After
curing any material violation of this Agreement or the Manual, you engage in the same noncompliance within any consecutive twenty
four (24) month period, whether or not the noncompliance is corrected after notice; or after we have notified you of your noncompliance
with any of the requirements imposed by this Agreement or the Manual, regardless of materiality, you engage in a pattern of noncompliance
with any of those requirements, whether or not the noncompliance is corrected after notice, which pattern of non-compliance in
and of itself will be deemed material;

 

(2)   You
or any guarantor of your obligations under this Agreement:

 

(a)   Generally
fails to pay its debts as they become due or admits in writing its inability to pay its debts, or makes a general assignment for
the benefit of its creditors;

 

(b)   Commences
any case, proceeding or other action seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of
it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of
a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property;

 

(c)   Takes
any corporate or other action to authorize any of the actions set forth above in clauses (a) or (b);

 

(d)   Suffers
initiation of any case, proceeding or other action against it seeking to have an order for relief entered against it as debtor,
or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any law relating
to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other
similar official for it or for all or any substantial part of its property, and such case, proceeding or other action (i) results
in the entry of an order for relief against it which is not fully stayed within seven (7) business days after the entry of the
order or (ii) remains undismissed for forty-five (45) days;

 

(e)   Allows
an attachment to remain on all or a substantial part of the Hotel or of its assets for thirty (30) days;

 

(f)    Fails
within sixty (60) days of the entry of a final judgment against it in any amount exceeding One Hundred Thousand Dollars ($100,000)
to discharge, vacate or reverse the judgment, or to stay execution of it, or if appealed, to discharge the judgment within thirty
(30) days after a final adverse decision in the appeal;

 

(g)   Loses
possession or the right to possession of all or a significant part of the Hotel or Hotel site, whether through foreclosure, including,
but not limited to, foreclosure of any lien, trust deed, or mortgage, loss of lease, or for other reasons apart from those described
in Paragraph 12;

 

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(h)   Fails
to continue to identify the Hotel to the public as a System hotel, or abandons the operation of the Hotel by failing to operate
the Hotel for five (5) consecutive days, or any shorter period after which it is not unreasonable under the facts and circumstances
for us to conclude that you do not intend to continue to operate the Hotel, unless the failure to operate is due to fire, flood,
earthquake or similar causes beyond your control, provided that you have taken reasonable steps to minimize the impact of such
events;

 

(i)   Contests
in any court or proceeding our ownership of the System or any part of the System, or the validity of any of the Marks;

 

(j)   Takes
any action toward dissolving or liquidating itself, if it is a corporation, limited liability company or partnership, except for
death of a partner;

 

(k)   Any
of the owners of a controlling Equity Interest is discovered to have been convicted of a felony (or any other offense or conduct
if we reasonably determine it is likely to adversely reflect upon or affect the Hotel, the System, us and/or any Entity);

 

(l)   Conceals
revenues, maintains false books and records of accounts, submits false reports or information to us or otherwise attempts to defraud
us;

 

(m)   
Becomes a Competitor (as defined in Subparagraph 6.a.(23));

 

(n)   Transfers
any interest in this Agreement or in the Hotel other than in the transaction that we have approved (unless the Transfer is of a
type described in Paragraph 11 where our approval is not required); or

 

 

(o)   Does
not purchase or maintain insurance required by this Agreement, or does not reimburse us for our purchase of insurance on its behalf;
of

 

(p)   
Becomes a “Specially Designated National or Blocked Person” as defined in Subparagraph 16.o. or fails to comply with
the provisions of Subparagraph 16.o, including a breach of the representations set forth therein or we discover through notice
from you or through our own investigation that the representations set forth in Subparagraph 16.o are or have become false.

 

(3)   Information
involving you or your affiliates, whether provided by you under Subparagraph 6.a.(28) or obtained through Hilton’s or
our own investigation, discloses facts concerning you or your affiliates, including your respective officers, directors, shareholders,
partners or members, and/or the Hotel, or title to the property over which the Hotel is constructed or any other property used
by the Hotel, including leased commercial space, which, in the reasonable opinion of Hilton is likely to adversely reflect upon
or affect in any manner, any gaming licenses or permits held by the Entities or the then current stature of any of the Entities
with any gaming commission, board, or similar governmental or regulatory agency, or the reputation or business of any of the Entities;

 

(4)   We
make a reasonable determination that continued operation of the Hotel by you will result in an imminent danger to public health
or safety; or

 

(5)   Any
guarantor of your obligations under this Agreement breaches its guarantee, if any, or any guarantee fails to be a continuing obligation
fully enforceable against the person(s) signing the guarantee, or if there is any inadequacy of the guarantee or guarantor, and
the guarantor fails to provide adequate assurances to us as we may reasonably request.

 

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c.    Liquidated
Damages upon Termination by Us. If we terminate the Agreement under Subparagraphs 14.a. or 14.b. above, you acknowledge that
your default will cause substantial damage to us, the actual amount of which will be difficult to determine. Therefore, you agree
that if we terminate this Agreement under Subparagraphs 14.a. or 14.b. as a result of your default or breach of this Agreement,
or if you unilaterally terminate this Agreement without cause, which is not authorized and which would be a material breach of
this Agreement, then upon termination you must pay us a lump-sum payment equal to the sum of the following: (i) all amounts
owed to us for periods prior to the date of termination, plus (ii) as liquidated damages for the future Monthly Royalty Fees
and Monthly Program Fees we will lose, a “Termination Fee” determined by multiplying the average of the Monthly
Royalty Fees and Monthly Program Fees (collectively, the “Average Monthly Fees”) with respect to the Hotel
for the twenty-four (24) month period immediately preceding the month of termination, by thirty-six (36), or by such lesser multiple
as would represent the remaining full or partial months between the date of termination and the expiration of the License Term.
If the Hotel has been open for less than twenty-four (24) months, then in calculating the Termination Fee we will multiply thirty-six
(36) by the greater of a) the Average Monthly Fees you owed us from the Opening Date through the month immediately preceding the
month of termination, and b) the average Monthly Royalty Fees and Monthly Program Fees per Guest Room owed to us by all System
hotels in operation throughout the same twenty-four (24) month period, multiplied by the number of Guest Rooms in the Hotel. The
Termination Fee is intended to compensate us only for the value lost in Monthly Royalty Fees and Monthly Program Fees as a result
of the early termination of the Agreement, and you agree that you remain liable for all other obligations and claims under the
Agreement, including obligations following termination under Subparagraphs 5.c., 5.d., 8.c., 14.d. and Paragraph 9 and liabilities
arising out of your breach or default.

 

d.    De-identification
of Hotel Upon Termination. Upon expiration or termination of this Agreement for any reason, you will immediately stop holding
yourself out to the public as a System hotel, and will take whatever action is necessary to assure that no use is made of any
part of the System (including the Marks, all forms of advertising and other indicia of operation as a System hotel), and discontinue
use of all distinguishing indicia of System and HHC hotels, including such indicia on exterior and interior signs, stationery,
operating equipment and supplies, Internet sites, brochures and other promotional material at or in connection with the Hotel
or otherwise. You will return to us the Manual and all other proprietary materials, remove all distinctive System features of
the Hotel, including the primary freestanding sign down to the structural steel, and take all other actions (“De-identification
Actions”) required to preclude any possibility of confusion on the part of the public that the Hotel is still using
all or any part of the System or is otherwise holding itself out to the public as a System hotel. If within thirty (30) days after
the termination or expiration of this Agreement, you fail to comply with this paragraph, we and our agents, at your expense, may
enter the premises of the Hotel to perform the De-identification Actions without being deemed guilty of or liable for trespass
or any other tort, and make or cause to be made such changes at your expense. You will pay all such expenses that we incur upon
demand. If you fail to take all De-identification Actions, we and Hilton will be entitled to recover all losses, costs, expenses
and damages caused by that failure. We and Hilton will also be entitled to relief by injunction, and any other right or remedy
at law or in equity to enforce our rights under this Agreement.

 

e.    Special
Termination.You recognize the additional harm by way of confusion for national accounts, greater
difficulty in re-entering the market, and damage to goodwill of the Marks that we will suffer if (i) you (or any of your
Affiliates) cause two (2) or more franchise license agreements for the Licensed Brand between yourself (or any of your Affiliates)
and us to be terminated prior to the expiration date of such agreements within twelve (12) months of each other (if we terminate
those agreements following your breach or default, you (or your Affiliate) will be deemed to have caused the termination) or (ii) this
Agreement terminates or is terminated by us following an unapproved Transfer to a Competitor (each of these will be referred to
as a “Special Termination”). In the case of a Special Termination, the amount
due to us upon termination will be an amount equal to the amount set forth in clause (i) of Subparagraph 14.c., plus
an additional amount equal to two (2) times the Termination Fee payable under clause (ii) of Subparagraph 14.c. This
Subparagraph 14.e. is not triggered upon mutual voluntary termination of this Agreement. For purposes of Subparagraph 14.e.(i)
above only, Licensed Brand includes Hilton and Hilton Suites.

 

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15. Relationship of Parties

 

a.    No
Agency Relationship. You are an independent contractor. Neither of us is the legal representative
or agent of the other, or has the power to obligate (or has the right to direct or supervise the daily affairs of) the other for
any purpose. You expressly acknowledge that we have a business relationship based entirely on, and defined by, the express provisions
of this Agreement and that no partnership, joint venture, agency, fiduciary or employment relationship is intended or created by
reason of this Agreement. Neither we nor any of the Entities will have any responsibility to any person for any debts, liabilities,
damages, claims or expenses related to the establishment, construction or operation of the Hotel or arising out of or related to
your policies, procedures, practices or alleged practices in the operation of the Hotel or any other business conducted at the
Hotel.

 

b.    Notices
to Public Concerning Your Independent Status. You will take all steps reasonably necessary to
minimize the chance of a claim being made against us for anything that occurs at the Hotel, or for the acts or omissions of you
or anyone associated or affiliated with you or the Hotel, including steps mandated by us in the Manual or otherwise. You will not
incur any obligation or indebtedness on our behalf. All contracts for the Hotel’s operations and services at the Hotel will
be in your name or in the name of your management company. You will not enter into or sign any contracts in our name or using the
name of the Licensed Brand or the Marks or any acronyms or variations on same. You will disclose in all dealings with suppliers
and third parties that you are an independent entity and that we have no liability for your debts. 

 

		16.	Miscellaneous

 

a.    Severability
and Interpretation. The remedies provided in this Agreement are cumulative. These remedies are
not exclusive of any other remedies to which you or we may be entitled in case of any breach or threatened breach of the terms
and provisions hereof. If any provision of this Agreement is held to be unenforceable, void or voidable, that provision will be
ineffective to the extent of the prohibition without in any way invalidating or affecting the remaining provisions of this Agreement,
and all remaining provisions will continue in effect. If any provision of this Agreement is held unenforceable due to its scope,
but may be made enforceable by limiting its scope, the provision will be considered amended to the minimum extent necessary to
make it enforceable. This Agreement will be interpreted without interpreting any provision in favor of or against either of us
by reason of the drafting of the provision, or either of our positions relative to the other. Any covenant, term or provision of
this Agreement that provides for continuing obligations after the expiration or termination of this Agreement will survive any
expiration or termination. To the extent that the provisions of this Agreement provide for periods of notice less than those required
by applicable law, or provide for termination, cancellation, non-renewal or the like other than in accordance with applicable law,
those provisions will, to the extent they are not in accordance with applicable law, be superseded by said law, and we will comply
with applicable law in connection with each of these matters.

 

b.    Controlling
Law. This Agreement will become valid when signed by both of us. We each agree that the State
of New York has a deep and well developed history of business decisional law. For this reason, we each agree that except to the
extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended, this Agreement,
all relations between us, and any and all disputes between us, whether sounding in contract, tort, or otherwise, are to be exclusively
construed in accordance with and/or governed by (as applicable) the laws of the State of New York without recourse to New York
(or any other) choice of law or conflicts of law principles. If, however, any provision of this Agreement would not be enforceable
under the laws of New York, and if the Hotel is located outside of New York and the provision would be enforceable under the laws
of the state in which the Hotel is located, then the provision in question (and only that provision) will be interpreted and construed
under the laws of that state. Nothing in this section is intended to invoke the application of any franchise, business opportunity,
antitrust, “implied covenant,” unfair competition, fiduciary or any other doctrine of law of the State of New York
or any other state which would not otherwise apply absent this Subparagraph 16.b.

 

Because, as stated
above, the State of New York has a well developed history of business decisional law and because the courts of the State of New
York are best suited to interpret and apply that law, we each agree that any litigation arising out of or related to this Agreement,
any breach of this Agreement, the relationship between us, and, any and all disputes between us, whether sounding in contract,
tort, or otherwise, will be submitted to and resolved exclusively by a court of competent jurisdiction located in the City and
State of New York. You waive, and agree never to assert, move or otherwise claim that this venue is for any reason improper, inconvenient,
prejudicial or otherwise inappropriate (including, any claim under the judicial doctrine of forum non conveniens).

 

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If our mutual choice
of venue in the City and State of New York is not honored by the subject court(s), then we each agree that any litigation arising
out of or related to this Agreement; any breach of this Agreement; the relationship between us; and, any and all disputes between
us, whether sounding in contract, tort, or otherwise, will instead be submitted to and resolved exclusively by a court of competent
jurisdiction located in the City and County of Los Angeles, California. You waive, and agree never to assert, move or otherwise
claim that this substitute venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, any
claim under the judicial doctrine of forum non conveniens).

 

c.    Exclusive
Benefit. This Agreement is exclusively for our and your benefit, and none of the obligations of either of us in this Agreement
will run to, or be enforceable by, any other party (except for covenants in favor of the Entities, which covenants will run to
and be enforceable by the Entities or their successors and assigns), or give rise to liability to a third party, except as otherwise
specifically set forth in this Agreement.

 

d.   Entire
Agreement. You and we acknowledge that we want all terms of this business relationship defined in this written Agreement,
and that neither of us wants to enter into a business relationship with the other in which any terms or obligations are subject
to any oral statements or in which oral statements serve as the basis for creating rights or obligations different than or supplementary
to the rights and obligations set forth in this Agreement. Therefore, you and we agree that this Agreement and its attachments
will be construed together and will supersede and cancel any prior and/or contemporaneous discussions or writings (whether described
as representations, inducements, promises, agreements or by any other term) between us. We each agree that we placed, and will
place, no reliance on any such discussions or writings. You agree that no claims, representations or warranties of earnings, sales,
profits, success or failure of the Hotel have been made to you. This Agreement and its attachments is the entire agreement between
us and contains all of the terms, conditions, rights and obligations between us with respect to the Hotel and any other aspect
of the relationship between us. No change, modification, amendment or waiver of any of the provisions of this Agreement will be
effective and binding upon us unless it is in writing, specifically identified as an amendment to this Agreement, signed by one
of our officers, and which may include an estoppel and general release of Claims that you may
have against us, Hilton or the Entities, in a form satisfactory to us. If any provision of this Agreement is inconsistent
with the Manual, the provisions of this Agreement will prevail. No failure by us or by any of the Entities to exercise any power
given us under this Agreement or to insist on strict compliance by you with any of your obligations, and no custom or practice
at variance with the terms of this Agreement, will be considered a waiver of our or any Entity’s right to demand exact compliance
with the terms of this Agreement.

 

e.   Consent;
Business Judgment. Wherever our consent or approval is required in this Agreement, unless the provision specifically indicates
otherwise, we have the right to withhold our approval in our discretion taking into consideration our assessment of the long-term
interests of the System overall. You and we recognize, and any arbitrator or judge is affirmatively advised that if those decisions
are supported by our business judgment, neither an arbitrator nor a judge nor any other person reviewing those decisions will
substitute his, her or its judgment for our judgment. When the terms of this Agreement specifically require that we not unreasonably
withhold our approval or consent, if you are in default or breach under this Agreement, any withholding of our approval or consent
will be considered reasonable. Our approvals and consents will not be effective unless given in writing. In no event may you make
any claim for money damages based on any claim that we have unreasonably withheld or delayed any consent or approval to a proposed
act by you under the terms of this Agreement. You also may not claim damages by way of set-off, counterclaim or defense for our
withholding of consent. Your sole remedy for the claim will be an action or proceeding to enforce the provisions of this Agreement
by specific performance or by declaratory judgment.

 

    	23

    	 

    

 

f.    Notices.
All notices must be in writing and will be effective on the earlier of (i) the day it is sent via facsimile with a confirmation
of receipt; or (ii) one business day after it is sent by next business day delivery service; or (iii) the third business
day after it is sent by first-class or certified mail or other form of express delivery to the appropriate party at the following
single address, or such other single address as may be designated by the party to be notified (which, in no event, is a P.O. Box).
If to us, the notice should be sent to our principal executive offices, addressed to “General Counsel.” The current
address of our principal executive offices is as follows: 9336 Civic Center Drive, Beverly Hills, CA 90210. If to you, then to
the address set forth for you in the Rider. Notice to you is deemed given if 1) delivered in writing via one of the delivery methods
set forth above and 2) addressed to the Principal Correspondent at the address you designate in the Rider. Any change to your address
or Principal Correspondent for notice must be delivered to us in writing in accordance with the delivery procedure set forth in
this Subparagraph 16.f. Licensee hereby grants Licensor permission to send communications to the Licensee via facsimile for
the purposes of notices under this Agreement, including this Subparagraph 16.f., and/or to provide information from the Licensor
to the Licensee via facsimile or email, subject to any applicable laws. To the extent there are any regulations or laws prohibiting
such mass communications and to the extent they are waivable, Licensee hereby waives them.

 

g.   General
Release. You and your heirs, administrators, executors, agents and representatives and their respective successors and assigns
release, remise, acquit and forever discharge us and the Entities and their officers, directors, employees, agents, representatives
and their respective successors and assigns from any and all actions, claims, causes of action, suits, rights, debts, liabilities,
accounts, agreements, covenants, contracts, promises, warranties, judgments, executions, demands, damages, costs and expenses,
whether known or unknown at this time, of any kind or nature, absolute or contingent, at law or in equity, on account of any matter,
cause or thing whatsoever that has happened, developed or occurred before you sign and deliver this Agreement to us (collectively,
“Claims”). This release will survive the termination of this Agreement.

 

h.   Estoppel
Certificate. Whenever we reasonably request it, you will deliver to us an estoppel certificate in the form we require as to
the matters described in this Agreement.

 

i.    Descriptive
Headings. The descriptive headings in this Agreement are for convenience only and will not control or affect the meaning or
construction of any provision in this Agreement.

 

j.    Representations
and Warranties. You warrant, represent and agree that all statements made by you in the Application you submitted to us in
anticipation of this Agreement and all other documents and information you submitted to us are true, correct and complete as of
the date of this Agreement and that you will continue to update them so that they are always true, correct and complete. You further
represent and warrant to us that you have the full legal power and authority to enter into this Agreement and that by entering
into this Agreement you will not be breaching any agreement to which you are a party. You hereby indemnify and hold us harmless
from any breach of these representations and warranties. These warranties and representations will survive the termination of this
Agreement.

 

k.   Time.
Time is of the essence in this Agreement.

 

l.    Counterparts.
This Agreement may be signed in counterparts, each of which will be considered an original.

 

m.  Performance
Requirements/Responsibilities. Attachment A, setting forth certain of your performance conditions and requirements, is incorporated
by reference and made a part of this Agreement.

 

n.   Informational
Copies. You acknowledge that we may provide, but are not required to provide, copies of any information we provide to you concerning
the Hotel (such as quality assurance reports and default notices) to the owner and/or lessor of the Hotel.

 

    	24

    	 

    

 

o.    Blocked
Persons or Entities. Licensee represents and warrants to Hilton that to Licensee’s actual or constructive knowledge:
(1) neither Licensee (including its directors and officers), nor any of its Affiliates, or the funding sources for any of the
foregoing, is identified on the list of the Treasury’s Office of Foreign Assets Control (OFAC); (2) neither Licensee nor
any of its Affiliates, is directly or indirectly owned or controlled by the government of any country that is subject to an embargo
imposed by the United States government; and (3) neither Licensee nor any of its Affiliates is acting on behalf of a government
of, or is involved in business arrangements or other transactions with, any country that is subject to such an embargo. Licensee
agrees that it will notify Hilton in writing immediately upon the occurrence of any event which would render the foregoing representations
and warranties of this Subparagraph 16.o. incorrect. Notwithstanding anything to the contrary in this Agreement, no Transfer shall
be made to a Specially Designated National or Blocked Person (as herein defined below) or to an entity in which a Specially Designated
National or Blocked Person has an interest. For purposes of this Agreement, "Specially Designated National or Blocked
Person" means (i) a person or entity designated by OFAC (or any successor office or agency of the U.S. government) from
time to time as a "specially designated national or blocked person" or similar status, (ii) a person or entity described
in Section 1 of U.S. Executive Order 13224, issued on September 23, 2001, or (iii) a person or entity otherwise identified by
government or legal authority as a person with whom Hilton is prohibited from transacting business. Note to Licensee: The U.S.
government has published a list of such designations and the text of the Executive Order are is published under the internet website
address www.ustreas.gov/offices/enforcement/ofac.

 

17. WAIVER OF JURY TRIAL

 

TO THE EXTENT EITHER
PARTY INITIATES LITIGATION INVOLVING THIS AGREEMENT OR ANY ASPECT OF THE RELATIONSHIP BETWEEN US (EVEN IF OTHER PARTIES OR OTHER
CLAIMS ARE INCLUDED IN SUCH LITIGATION), ALL THE PARTIES WAIVE THEIR RIGHT TO A TRIAL BY JURY. THIS WAIVER WILL APPLY TO ALL CAUSES
OF ACTION THAT ARE OR MIGHT BE INCLUDED IN SUCH ACTION, INCLUDING CLAIMS RELATED TO THE ENFORCEMENT OR INTERPRETATION OF THIS AGREEMENT,
ALLEGATIONS OF STATE OR FEDERAL STATUTORY VIOLATIONS, FRAUD, MISREPRESENTATION, OR SIMILAR CAUSES OF ACTION, AND IN CONNECTION
WITH ANY LEGAL ACTION INITIATED FOR THE RECOVERY OF DAMAGES BETWEEN OR AMONG US OR BETWEEN OR AMONG ANY OF OUR OWNERS, AFFILIATES,
OFFICERS, EMPLOYEES OR AGENTS.

 

 [THIS AGREEMENT CONTINUES WITH AN ATTACHMENT
A AND ATTACHMENT B, WHICH ARE A PART OF THIS AGREEMENT.]

 

    	25

    	 

    

  

Attachment A - 1

 

    	 

    	 

    

 

ATTACHMENT A - PERFORMANCE CONDITIONS:

CONVERSION

 

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

 

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

 

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

 

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

 

You are solely responsible for
making certain that the Hotel and the Renovation Work comply in all respects with all Legal Requirements. For purposes of this
Agreement, “Legal Requirements” means all public laws, statutes, ordinances, orders, rules, regulations, permits,
licenses, authorizations, directions and requirements of all governments and governmental authorities, which, now or hereafter,
may apply to the construction, completion, equipping and opening of the Hotel and the operation of the Hotel, including environmental,
zoning, building, and life safety. We and Hilton will have the right to, and you will arrange for us and Hilton to, participate
in all progress meetings during the Renovation Work, to have access to all contract and construction documents relating to the
Hotel and the Renovation Work, and to have access to the Hotel during reasonable business hours to visit the Hotel, its construction,
completion, furnishing and equipping. However, neither we nor Hilton are obligated to participate in progress meetings, or visit
the Hotel, and our and Hilton’s participation and site visits are not to be considered as a representation of the adequacy
of the construction, the structural integrity, or the sufficiency of mechanical and electrical systems for the Hotel or the Renovation
Work. Before we approve your Plans, your architect or other certified professional must certify to us that the Plans comply with,
or do not require compliance with, the Americans with Disabilities Act and its architectural guidelines as well as the applicable
state and local codes for accessible facilities. Upon completion of the Renovation Work and as a condition to Opening of the Hotel,
your architect, general contractor or other certified professional must provide us with a certificate stating that the as-built
premises comply with, or do not require compliance with, the Americans with Disabilities Act and its architectural guidelines and
all state and local codes for accessible facilities.

 

Attachment A - 1

 

    	 

    	 

    

 

 

E.           Commencement;
Completion. You will begin the Renovation Work on or before the date specified on the Rider (the “CCD”)
and will continue the Renovation Work uninterrupted (except to the extent continuation is prevented by events beyond Licensee’s
control, such as acts of God, third party strikes, acts of terrorism, war, or general governmental restrictions (“Force
Majeure”)) until it is completed. For purposes of this Paragraph E, Force Majeure does not include your own financial
inability, inability to obtain financing, inability to obtain permits or any other events unique to you or the Hotel. Notwithstanding
any Force Majeure, or any other matter, the Renovation Work must be completed and the Hotel must be furnished, equipped, and comply
with this Agreement no later than the date specified in the Rider (the “Renovation Work Completion Date”). If
you fail to complete the Renovation Work in accordance with this Agreement on or before the Renovation Work Completion Date and
this failure to meet the Renovation Work Completion Date is due solely to Force Majeure, the Pre-Opening Termination Fee (as defined
in Paragraph S below) will not be assessed. Your failure to complete the Renovation Work by the Renovation Work Completion
Date will be an Event of Default, unless we extend such date. If you want to request an extension of the Renovation Work Completion
Date, you must submit a written request and a Ten Thousand Dollar ($10,000) extension fee before the Renovation Work Completion
Date. If we approve the extension, we will set a new Renovation Work Completion Date and the extension fee will become non-refundable.
If we deny the extension, we will refund the extension fee. We will have the sole right to determine whether the Renovation Work
has been completed in accordance with this Agreement, the approved Plans and Designs, the Manual and the PIP.

 

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

 

G.           Progress
Reports. You will submit to us each month (or more frequently if we so request) a report showing progress made toward fulfilling
the terms of this Agreement.

 

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

 

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

 

J.           Insurance
During Conversion. In addition to the insurance coverage required under this Agreement, during the course of Renovation Work,
you will maintain or will cause the general contractor to maintain Builder’s Risk coverage for the replacement value of the
Hotel, which policies must name us and the Entities as additional insureds. This coverage must be evidenced by an original certificate
of insurance, submitted to us at least thirty (30) days before you begin Renovation Work and thereafter any time before a change
is made in the coverage. Prior to the Opening, you will submit to us a certificate of insurance evidencing the other types of insurance
we require under subparagraph 6.a.(31) of this Agreement.

 

Attachment A -
2 

 

    	 

    	 

    

 

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

 

L.           Trademarks.
During the Renovation Work, you will have the right, so long as this Agreement is in effect: (i) to place a sign on the Hotel
site, advising the general public that a System hotel is under construction or renovation, and you agree, at your sole expense,
on or before the date specified in the Rider, to erect, install and maintain in complete working order at the site of the Hotel
a large construction sign using the Licensed Brand name and other distinguishing characteristics in accordance with our plans and
specifications for System hotels; (ii) to advertise and promote the development and Opening of the Hotel in the media; (iii) to
purchase, from vendor(s) approved by us, operating supplies and equipment bearing the Marks required for the operation of the Hotel;
and (iv) to purchase, from vendor(s) approved by us, and install the permanent Licensed Brand signage required for the operation
of the Hotel. Once we authorize the Hotel to Open (conditionally or otherwise) as a System hotel, you may use the Marks and the
System in the operation of the Hotel consistent with the terms and conditions of this Agreement. Upon Opening, you will stop using
all other names, symbols, trademarks or trade logos other than those used and associated with the System.

 

		M.	Staffing. Before the Opening Date, you will, at your cost, hire a staff to operate the Hotel,
and train that staff, all in accordance with the Manual and such other instructions as we may furnish to you.

 

N.           Opening.
The Hotel will be considered open for business (“Open” or “Opening”) on the date (“Opening
Date”) we authorize you to make available the facilities, Guest Rooms or services of the Hotel to the general public
under the Licensed Brand name(s). You will not Open the Hotel unless and until you receive our written authorization to do so.
We will only authorize the Hotel to Open when we, in our sole discretion, are satisfied that: (i)  you have complied with
all the terms and conditions set forth in this Agreement; (ii) your staff has received adequate training and instruction;
and (iii) all fees and charges you owe to us or the Entities have been paid. Opening the Hotel before we authorize you to
Open will constitute unauthorized use of our Marks and a material breach of this Agreement. Recognizing the difficulty of ascertaining
damages for such a breach, you agree to pay to us, as liquidated damages, solely for the damage to our Marks, and not as a penalty,
Five Thousand Dollars ($5,000) per day to compensate us for the damage to our Marks. You also agree to reimburse us for our costs,
including attorneys fees, incurred in enforcing our rights. These damages do not limit any other remedies we may have, at law or
in equity.

 

O.           Compliance/Investigation.
You will give us at least fifteen (15) days advance notice that, in your opinion, you have complied with all the terms and conditions
of this Agreement and the Hotel is ready to Open (conditionally or otherwise). We will use reasonable efforts within fifteen (15)
days after we receive your notice to visit the Hotel and to conduct other investigations as we deem necessary to determine whether
to authorize the Opening (conditional or otherwise) of the Hotel, but we will not be liable for delays or loss occasioned by our
inability to complete our investigation and to make this determination within the fifteen (15) day period. If you fail to pass
our initial opening site visit, we may, in our sole discretion, charge you reasonable fees associated with any additional visits.

 

Attachment A – 3

 

    	 

    	 

    

 

P.           Conditional
Opening. Notwithstanding Paragraph N above, we may, in our sole discretion, conditionally authorize you to Open and operate
the Hotel as a System hotel (“Conditional Opening”) even though you have not fully complied with the terms of
this Agreement, if you are meeting your performance obligations under this Agreement and if you agree to fulfill all remaining
terms of this Agreement, including any attachment, on or before the completion date set forth on the Rider, or any extension we
approve. Our determination as to whether to authorize a Conditional Opening will be final and binding.

 

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

 

R.           Termination
Prior to Opening. Your failure to satisfy the terms of this Agreement, including your failure to begin or complete the Renovation
Work in accordance with the Plans, the Manual and our requirements (including the milestone and completion dates) will constitute
a material breach of your obligations under this Agreement and will be considered an Event of Default. If an Event of Default occurs
before the Opening, we may terminate this Agreement if that Event of Default continues for ten (10) days (or longer, if required
by law) after written notice to you.

 

S.           Pre-Opening
Termination Fees. If there is an Event of Default by you prior to Opening and, as a result of your failure to cure such Event
of Default, we terminate this Agreement either:

 

		1.	Before you begin the Renovation Work, but only if, within one (1) year of such termination you
(or your affiliate) then, directly or indirectly, (a) enter into a franchise, license and/or management agreement for, and/or (b) begin
construction or commence operation of: a hotel, motel, inn, or similar facility at the Hotel site under a Competitor brand name;
or

 

		2.	After you begin the Renovation Work, but before Opening (unless the Event of Default is due solely
to Force Majeure as provided for in Paragraph E above);

  

then you will be liable to us
for a Pre-Opening termination fee equal to One Thousand Two Hundred Dollars ($1200.00), for each Guest Room, multiplied by three
(3) (the “Pre-Opening Termination Fee”). You must pay the entire Pre-Opening Termination Fee to us in one lump
sum upon demand. The Pre-Opening Termination Fee represents the minimum damages we would incur as a result of the additional time
necessary for us to develop an alternative site in the market. It does not substitute for any other damages we may incur as a result
of any breach by you of any provision of this Agreement before or after the termination date, for which you will remain liable.

 

T.           Termination
after Opening of the Hotel. Termination of this Agreement after the Opening of the Hotel (conditionally or otherwise) will
be governed by Paragraph 14 of this Agreement.

 

(Remainder of page left intentionally
blank.) 

 

Attachment A – 4

 

    	 

    	 

    

 

ATTACHMENT B -

RIDER TO FRANCHISE LICENSE AGREEMENT

 

Effective Date:
NOVEMBER 24, 2004

 

Licensor Name: HILTON INNS, INC., a
Delawarecorporation

 

Licensed Brand: Hilton (excluding Hilton
Suites, Hilton Garden Inn,Homewood Suites by Hilton and any other sub-brands containing Hilton in the name.)

 

Initial Approved Hotel Name (Trade Name):
Hilton San Francisco Financial District

 

Principal Name in Licensed Brand: Hilton

 

	Licensee Name and Address (Principal Correspondent for Notice):	 	JUSTICE INVESTORS
	 	 	750 Kearny Street, Suite 502
	 	 	San Francisco, CA  94108
	 	 	Attn:  Geoffrey Palermo
	 	 	Phone:  415/984-0786
	 	 	Fax:  415/984-0783
	 	 	Email:  geoffreyp@msn.com

 

Address of Hotel: 750 Kearny Street,
San Francisco, CA 94108

 

Initial Number of Approved Guest Rooms:
555

 

Plans Submission Dates:

 

	Preliminary Plans:	N/A
	 	 
	Design Development (50%) Plans and Specifications:	FEBRUARY 24, 2005
	 	 
	Final (100%) Plans and Specifications:	APRIL 24, 2005

 

	Renovation Commencement Date:	APRIL 24, 2005
	 	 
	Renovation Work Completion Date:	Prior to the Opening Date, which in no event will be later than JUNE 1, 2006
	 	 
	 	All references in the PIP to “Conversion” shall mean “Opening”.

 

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

 

Expiration
of Term: At midnight on the day before the 15th anniversary of the Opening Date, subject to the Renewal Option set
forth in Subparagraph 13.b.

 

Attachment B - 1

 

    	 

    	 

    

 

Monthly Royalty Fee:  You will pay a
Monthly Royalty Fee representing a percentage of the Gross Rooms Revenue of the Hotel, as defined in Subparagraph 7.b. of the Agreement,
in the amounts set forth below:

 

	Years 1* and 2	Three percent (3%) of Gross Rooms Revenue
	Year 3	Four percent (4%) of Gross Rooms Revenue
	Year 4 through end of Term	Five percent (5%) of Gross Rooms Revenue

 

*through the first twelve (12) full
calendar months after the Opening of the Hotel.

 

Additional Requirements/Special Provisions:

 

		·	Licensee acknowledges and agrees that (i) its right to operate the Hotel under the Licensed
Brand will not become effective until after the existing third-party franchise (or similar) agreement for this Hotel, if any, has
terminated or expired and (ii) Licensee is wholly responsible for ensuring that any such agreement has terminated or expired
on or prior to the Opening Date.

 

		·	Paragraph 1.a – The Hotel: See insert

 

		·	Paragraph 10 – Right of First Offer: Intentionally deleted

 

		·	Paragraph 13.b – Renewal Option: New

 

		·	Paragraph 2 – Grant of License: Paragraph 2 of the Franchise License Agreement is deleted
in its entirety and the following is inserted in its place and stead:

 

2. Grant of License

 

a.   Non-Exclusive
License. We hereby grant to you and you hereby accept a non-exclusive license (the “License”) to use the
System at, and in connection with the operation of, the Hotel, in accordance with the terms of this Agreement. You acknowledge
and agree that you are not acquiring any rights other than the non-exclusive right to use the System to operate the Hotel under
the Licensed Brand at the site licensed under this Agreement and in accordance with the terms of this Agreement.

 

Except
as provided below, this Agreement does not limit our right, or the right of any of our present or future owners, subsidiaries,
and affiliated entities (the “Entities”), to own, license or operate any other business of any nature (“Other
Businesses”), including a hotel, inn, conference center, time share property, lodging facility or similar business, whether
under the Licensed Brand or as a competitive brand, or otherwise. We reserve the right to engage in any Other Businesses, even
if they compete with the Hotel, the System, or the Licensed Brand, whether we start those businesses, or purchase, merge with,
acquire, are acquired by, or affiliate with, those businesses. We may also: (a) use or license to others all or part of the
System; (b) use the facilities, programs, services and/or personnel used in connection with the System inOther Businesses;
and (c) use the System, the Licensed Brand, and the Marks in the Other Businesses. You waive and release any claims, demands
or damages arising from or related to any of the foregoing activities, and you acknowledge and agree that those activities will
not give rise to any liability on our part, including liability for claims for unfair competition, breach of contract, breach of
any applicable implied covenant of good faith and fair dealing, or divided loyalty.

 

Notwithstanding
the foregoing, neither we nor any of the Entities will operate, or allow to operate, a full-service
hotel or motel under the Licensed Brand, as such name may be changed by us from time to time, within the Restrictive Area One
and Restrictive Area Two (defined below) during the two time periods (the “Restrictive Period(s)”) as shown
below. This restriction does not apply to any hotel that is currently open or under construction or has been approved for development
or opening as a Licensed Brand hotel as of the Effective Date (“Existing Hotel”). The term Existing Hotel also
includes any hotel located or to be located within the Restrictive Area that replaces such Existing Hotel under the Licensed Brand.

 

Attachment
B - 2 

 

    	 

    	 

    
  

Restrictive
Period One: The first Restrictive Period will commence on the Effective Date and continue to the FOURTH
(4TH) anniversary of the Opening Date (“Restrictive Period One”). Under Restrictive Period One,
the Restrictive Area is generally outlined on the map attached to, and incorporated by reference into, this Agreement as
Exhibit B-1 (“Restrictive Area One”). Except as may otherwise be specifically provided in this
Subparagraph 2.a., Restrictive Area One means the area located within the boundaries below and
is from the shore or side of the street currently closest to the Hotel. If there is a conflict between Exhibit B-1 and this narrative
description, this description will control.

 

	North Boundary:	Lombard Street between Van Ness and the San Francisco Bay
	East Boundary:	The waterline of San Francisco Bay between Lombard and 1-80
	South Boundary:	Intersection of 17th Street and Van Ness, east along 17th Street to the intersection of 17th Street and Hwy 101. Hwy 101 to 1-80 and the northeast along 1-80 to the waterline of San Francisco Bay. 
	West Boundary:	Van Ness Avenue

 

Restrictive
Period Two: The second Restrictive Period will commence on FOURTH (4TH) anniversary of the Opening Date and
continue to the TENTH(10th) anniversary of the Opening Date(“Restrictive Period Two”). Under
Restrictive Period Two, the Restrictive Area is generally outlined on the map attached to, and incorporated by reference
into, this Agreement as Exhibit B-2 (“Restrictive Area Two”). Except as may otherwise be specifically
provided in this Subparagraph 2.a., Restrictive Area Two means the area located within the boundaries
below and is from the shore or side of the street currently closest to the Hotel. If there is a conflict between Exhibit
B-2 and this narrative description, this description will control.

 

	North Boundary:	Lombard Street between Van Ness and the San Francisco Bay
	East Boundary:	The waterline of San Francisco Bay between Lombard and 1-80
	South Boundary:	Market Street
	West Boundary:	Van Ness Avenue

 

b. You
agree that nothing contained in this Agreement or any laws, prohibits or limits us, Hilton, the Entities or any successors (by
purchase, merger, acquisition or otherwise) from (1) engaging in any of the activities relating to Other Businesses under brand
names other than the Licensed Brand, (2) constructing, owning, leasing, managing, franchising, licensing, operating or authorizing
the operation of any Existing Hotel, and (3) constructing, owning, leasing, managing, franchising, or licensing any hotel other
than an Existing Hotel under the Licensed Brand in the Restrictive Area, as long as the subject hotel does not begin operating
under the Licensed Brand until after the expiration of the Restrictive Period. In addition, the restrictions do not apply to (i)
areas located anywhere outside the Restrictive Area; (ii) any period after the earlier of the expiration of the Restrictive Period
or termination of this Agreement; (iii) any gaming-oriented hotels, facilities, or Other Businesses; (iv) any shared ownership
properties commonly known as “vacation ownership” or “time share ownership” or similar real estate properties;
or (v) any hotel(s), motel(s), or inn(s) that are part of a chain or group of four (4) or more hotels, motels, or inns that we,
Hilton or the Entities, in a single transaction, after the Effective Date own, operate, acquire, lease, manage, franchise, license,
or join through a merger, acquisition or marketing agreement (or otherwise), whether under their existing name or the Licensed
Brand name or any other name.

 

You waive
and release any claims, demands or damages arising from or related to any of the foregoing activities, and you acknowledge and
agree that those activities will not give rise to any liability on our part, including liability for claims for unfair competition,
breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.

 

Attachment B - 3

 

    	 

    	 

    

 

c. Trade
Name. The Hotel will be initially known by the trade name set forth in the Rider (the “Trade Name”). We
may change the Trade Name and/or the Licensed Brand name and/or any of the Marks at any time at our sole discretion, but we will
not change the principal name identified in the Rider. You may not change the Trade Name without our specific written consent.
You acknowledge and agree that you are not acquiring the right to use any service marks, copyrights, trademarks, logos, designs,
insignia, emblems, symbols, slogans, distinguishing characteristics, trade names, domain names or other marks or characteristics
owned by the Entities that we do not specifically designate to be used in the System.

 

Your Ownership Structure:JUSTICE
INVESTORS

 

	Name	 	 	 	 	 	 
	(Shareholder, Partner, Member, and Manager)	 	Nature of  
Ownership Interest	 	 	% Interest	 
	EVON GARAGE CORPORATION  	 	 	 	 	 	 	 	 
	-Evon Ownership – See Exhibit C-2	 	 	Managing General Partner	 	 	 	0.1100	%
	PORTSMOUTH SQUARE, Inc., a public company	 	 	General Partner	 	 	 	49.8000	%
	LIMITED PARTNERS:  See Exhibit C-1	 	 	Limited Partners	 	 	 	50.0900	%
	TOTAL:	 	 			 	 	100 	% 

  

IN WITNESS WHEREOF, the parties
have executed this Agreement, which has an effective date as of the date set forth in this Rider (the “Effective Date”).

 

	LICENSEE:	 	LICENSOR:
	 	 	 
	JUSTICE INVESTORS,	 	HILTON INNS, INC.,
	a California limited partnership	 	a Delaware corporation
		 	 
	By:	Evon Garage Corporation,	 	 
	 	a California corporation	 	 
	 	its Managing General Partner	 	By:	/s/ Dawn P. Beghi
	 	 	 
	 	By:	/s/ Geoffrey M. Palermo	 	 	Name:	Dawn P. Beghi
	 	 	 	 	 	 
	 	Name: Geoffrey M. Palermo	 	Title:	Vice President – Franchise Administration
	 	 	 	 	 
	 	Title: President	 	 
	 	 	 	 
	Executed on:     12-10-2004	 	 
	
         

         
	 	 
	By: 	Portsmouth Square, Inc.,	 	 
	 	a California corporation	 	 
	 	its General Partner	 	 
	 	 	 
	 	By:	/s/ Michael G. Zybala	 	 
	 	 	 	 	 
	 	Name: Michael G. Zybala	 	 
	 	 	 	 
	 	Title: Vice President & Secretary	 	 
	 	 	 	 
	Executed on:  12-10-2004	 	 

  

 

Attachment B - 4

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