Document:

Management Agreement, dated September 1, 2001

 Exhibit 10.8 
  
 WYNDHAM PALM SPRINGS 
  
 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of September 1, 2001 (the “Effective Date”) by and between AP/APH
PALM SPRINGS, L.P., a Delaware limited partnership, whose address is c/o Apollo Real Estate Advisors III, L.P., 1301 Avenue of the Americas, 38th Floor, New York, New York 10019 (the “Owner”), and WYNDHAM MANAGEMENT CORPORATION, a Delaware
corporation, whose address is 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (the “Manager”). 
  
 RECITALS: 
  
 Owner owns leasehold title to the Site (hereinafter defined) and all improvements now situated thereon. 
  
 Owner desires to retain Manager’s services in managing and operating the hotel situated on the Site and Manager is willing to provide such services,
all upon the terms and conditions set forth in this Agreement. For and in consideration of the premises and of the mutual covenants and agreements set forth herein, Owner and Manager agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1 Defined Terms. Certain terms in this Agreement have been given specially defined meanings. The defined terms may be used in the
singular or plural or in varying tenses or forms, but such variations shall not affect their defined meaning so long as they are written with initial capital letters. 
  
 Section 1.2 Definitions. As used herein, the following terms shall have the respective meanings indicated:

  
 Affiliate shall mean any person or entity that directly
or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person or entity. The term “control” shall mean the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise, and shall in any event include the ownership or power to vote fifty percent (50%) or more of the outstanding equity
or voting interests, respectively, of such other person. 
  
 Annual Plan shall mean an annual plan for the operation of the Project prepared by the Manager and approved by Owner in accordance with Section 6.1, consisting of the Operating Budget, Capital Improvements Budget and FF&E
Budget and a description or narrative which shall reasonably describe the methods to be employed and the strategies to be adopted in order to achieve the results set forth in such Budgets. 
  

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 Asset Manager shall mean Edward Rohling, unless and until a successor asset manager is designated
by Owner in a notice in writing to Manager, in which case it shall mean such successor. 
  
 Average Monthly Base Fee shall mean (a) after this Agreement has been in effect for a period of at least twelve (12) calendar months, one-twelfth (1/12) of the total Base Fees for the twelve (12) full calendar
months immediately preceding the event requiring a determination of the Average Monthly Base Fee or (b) prior to such time as this Agreement has been in effect for twelve (12) calendar months, the monthly average of the Base Fees for the number of
full calendar months during which this Agreement has been in effect. 
  
 Base Fee in respect of any period shall mean an amount equal to two percent (2%) of Gross Revenues for such period. 
  
 Capital Improvements shall mean any and all major alterations and improvements to the Hotel and all major repairs and replacements to the
structural, mechanical, electrical, HVAC, plumbing or vertical transportation elements of the Hotel other than certain non-routine repairs and maintenance to the Project which are normally capitalized under generally accepted accounting principles.

  
 Capital Improvements Budget shall mean each annual
budget prepared by the Manager and approved by Owner as part of the Annual Plan, reflecting the estimated costs for all Capital Improvements which in the reasonable opinion of Manager are necessary to keep and maintain the Project during the
applicable Operating Year in good condition and in keeping with the Operating Standards. 
  
 Condemnation shall mean the acquisition of all or any portion of the Project by any Governmental Authority having the power of condemnation or eminent domain, by compulsory acquisition, conveyance in lieu of or
under threat of condemnation or like procedure. 
  
 Default
Rate shall mean the lesser of (i) the Prime Rate plus four percent (4%) or (ii) the highest lawful rate permitted by applicable Legal Requirements. 
  
 Executive Personnel shall mean all or any one of the following: general manager, assistant general manager, director of food and beverage, director
of sales, director of marketing, controller and any other key executive of the Project designated by Manager. 
  
 Force Majeure shall mean acts of God, war, insurrection, civil commotion, riots, strikes, lockouts, embargoes, shortages of labor or materials
specified or reasonably necessary in connection with the construction, refurbishment, equipping, ownership or management of the Project, fire, unavoidable casualties, failure of any applicable Governmental Authority to issue required Governmental
Permits and any other occurrence, event or condition beyond the reasonable control of Owner or Manager, whichever shall be applicable. 
  
 FF&E shall mean all furniture, fixtures, furnishings and specialized equipment and systems (exclusive of Operating Equipment) necessary or
customary (now or in the future) in the reasonable opinion of Manager in order to operate the Project in accordance with the terms of this Agreement and the Operating Standards, including but not limited to all equipment required 
  

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 for the operation of kitchens, laundries, dry cleaning facilities and bars, special lighting and other
equipment, signs, carpets, drapes, shades, tapestries, pictures, paintings, beds, mattresses, chairs, desks, tables, sofas, wall coverings, televisions, radios, intercoms, telephones and office equipment and machinery. 
  
 FF&E Budget shall mean each annual budget prepared by the Manager
and approved by Owner as part of the Annual Plan, reflecting the estimated costs and expenses for all FF&E which in the reasonable opinion of Manager are necessary or customary in order to operate the Project during the applicable Operating Year
in accordance with the terms of this Agreement and the Operating Standards. 
  
 Governmental Authority shall mean the United States of America, State of California, County of Riverside, City of Palm Springs and any political or other subdivision of any of the foregoing, and any agency,
department, commission, board, bureau, court or instrumentality of any of them which now or hereafter has jurisdiction over the Owner, the Manager, any part of the Project or operation or management of the Project. 
  
 Governmental Permits shall mean all certificates, licenses and permits
from any Governmental Authority required to evidence full compliance by Owner or Manager with all Legal Requirements or required to evidence conformance of the Project with all Legal Requirements. 
  
 Gross Revenues in respect of any period shall mean all revenues,
receipts and income of every kind derived directly or indirectly during such period from all or any part of the Project, as finally determined on an accrual basis in accordance with the Uniform System of Accounts and generally accepted accounting
principles consistently applied, including but not limited to (i) all rentals and charges for guest rooms, suites, meeting rooms, conference rooms, ballrooms and other public rooms, including but not limited to all charges for room reservations and
deposits not refunded to guests; (ii) all sales of food and beverages, whether served on or off the premises, including but not limited to all charges for room service, banquets and catering fees; (iii) all sales or leases of miscellaneous and
sundry merchandise and services including but not limited to laundry, valet, garage, parking, telephone, telex, check room, vault and other miscellaneous services, cover and minimum charges for guest entertainment, fees charged for the temporary use
of facilities at the Project, all sales through vending machines and all other receipts from business conducted by, through or under Manager at, in, on, about or from the Project; (iv) all business interruption insurance awards received in respect
of the Project; (v) Condemnation awards for temporary use of the Project; and (vi) all rentals, fees, commissions, concessions and other payments derived from lessees, licensees and concessionaires. Gross Revenues for any such period shall not
include: 
  
 (1) Excise, sales and use taxes or
similar impositions collected directly from patrons or guests or included as part of the sales price of any goods or services and paid to any Governmental Authority, such as gross receipts, admission or similar equivalent taxes; 
  
 (2) Sales and other receipts of tenants, licensees and
concessionaires, except to the extent payable as rent under a lease or occupancy agreement; 
  

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 (3) Insurance proceeds (subject, however, to the inclusion of business interruption
insurance awards as provided in clause (iv) above); 
  
 (4) Condemnation awards, except as provided in clause (v) above; 
  
 (5) Proceeds from sale or other transfer of all or any portion of the Project; 
  
 (6) Proceeds from any financing or refinancing of all or any portion of the Hotel; 
  
 (7) Payments made by Owner to Manager under this Agreement;
and 
  
 (8) Interest earned on the Operating
Account, the Reserve or any tax, insurance or similar escrow account. 
  
 Gross Room Revenues in respect of any period shall mean all revenues derived during such period, as finally determined on an accrual basis in accordance with the Uniform System of Accounts and generally accepted accounting principles
consistently applied, from (i) rentals and charges for guest rooms and suites (“Rooms”); (ii) all business interruption insurance awards in respect of the Rooms; and (iii) Condemnation awards for temporary use of the Rooms. 
  
 Hazardous Materials shall mean (i) any “hazardous waste” as
defined by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended from time to time, and regulations promulgated thereunder; (ii) any “hazardous substance” as defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as amended from time to time, and regulations promulgated thereunder (including petroleum-based products as described therein); (iii) asbestos in any
quantity or form which would subject it to regulation under any applicable environmental law; (iv) polychlorinated biphenyls; (v) any substance, the presence of which on the Project is prohibited by any Legal Requirements; (vi) underground storage
tanks; and (vii) any other substance which by any Legal Requirements requires special handling in its collection, storage, treatment or disposal. In no event, however, shall the term “Hazardous Materials” include (1) chemicals routinely
used in office areas or (2) janitorial supplies, cleaning fluids or chemicals necessary for the day-to-day operation or other maintenance of the Project if the disposition, handling, storage or quantity of the items described in (1) and (2) herein
are at all times in compliance with all applicable Legal Requirements. 
  
 Hazardous Materials Contamination shall mean the contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on or of the Project by Hazardous Materials,
or the contamination of the buildings, facilities, soil, groundwater, air or other elements on or of any other property as a result of Hazardous Materials at any time (whether before or after the date of this Agreement) emanating from the Project.

  
 Hotel shall mean and include (i) the hotel situated on
the Site, all restaurants and other facilities therein and all related improvements, equipment and facilities and (ii) all FF&E, Inventories and Operating Equipment now or hereafter placed or installed therein. 
  

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 Impositions shall mean all real estate, personal property, utility, business or occupation taxes
that cannot be passed along to customers of the Project and other taxes (other than income, payroll and casino), imposed by any Governmental Authority which at any time may be assessed, levied or imposed on or with respect to the Project.

  
 Incentive Fee in respect of (i) any full twelve (12)
calendar month Operating Year shall mean an amount equal to ten percent (10%) of the amount, if any, by which Net Operating Income for such Operating Year exceeds $6,292,000 and (ii) any Operating Year consisting of less than twelve (12) full
calendar months shall mean an amount equal to the product obtained by multiplying (A) the Time Period Quotient (hereinafter defined) by (B) ten percent (10%) of the amount, if any, by which Net Operating Income for the Trailing Twelve Month Period
(hereinafter defined) exceeds $6,292,000. As used in the preceding sentence, (1) the “Time Period Quotient” shall mean the amount determined by dividing the number of days in the applicable Operating Year by three hundred and sixty-five
(365); and (2) the “Trailing Twelve Month Period” shall mean (A) in the case of an Operating Year ending on the last day of a calendar month, the twelve (12) full calendar month-period ending on such day; or (B) in the case of an Operating
Year ending on a day other than the last day of a calendar month, the twelve (12) full calendar-month period ending on the last day of the calendar month immediately preceding the calendar month in which the last day of such Operating Year occurs.

  
 Income Before Fixed Charges for any period shall mean
an amount equal to the Project’: total income before fixed charges for such period as calculated pursuant to the Uniform System o Accounts. An example of the calculation of Income Before Fixed Charges and Net Operating Income is set forth on
Exhibit D attached hereto. 
  
 Independent Auditor
shall mean Deloitte & Touche or another national firm of independent certified public accountants having hotel experience selected by Owner from time to time an( approved by Manager, such approval not to be unreasonably withheld or delayed.

  
 Inventories shall mean all food and beverages, fuel,
soap, light bulbs, mechanical supplies cleaning supplies, stationery, paper supplies and other similar consumable and expendable items necessary or customary (now or in the future) in the reasonable opinion of Manager in order to operate the Project
in accordance with the terms of this Agreement and the Operating Standards. 
  
 Legal Requirements shall mean any law, ordinance, order, rule or regulation of any Governmental Authority and any requirement, term or condition contained in any restriction or restrictive covenant affecting
Owner, Manager, the Project or the construction or operation of the Project. 
  
 Management Fee in respect of any period shall mean the sum of the Base Fee and the Incentive Fee payable for such period. 
  

Mortgage shall mean any mortgage or deed of trust encumbering all or any portion of the Project, whether now in existence or hereafter created.

  
 Mortgagee shall mean the mortgagee or beneficiary
(whether one or more) under any Mortgage. 
  

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 Net Operating Income for any period shall mean an amount equal to Income Before Fixed Charges for
such period less an amount equal to the sum of (i) the Base Fee for such period, (ii) any ground lease rent for such period, (iii) the amount of real estate taxes and property insurance premiums for such period and (iv) the amount contributed to the
Reserve for such period (but, for purposes of this definition, such amount not to exceed the amount to be contributed to the Reserve pursuant to Section 5.2(b)). An example of the calculation of Income Before Fixed Charges and Net Operating
Income is set forth on Exhibit D attached hereto. 
  
 Operating Accounts shall mean one or more accounts with a bank or banks designated by Owner and approved by Manager, such approval not to be unreasonably withheld or delayed, bearing a name identifying the Project and styled
Operating Account, into which all funds advanced to the Project by Owner as working capital or otherwise derived from the operation of the Project shall be deposited and from which sums shall be withdrawn in accordance with this Agreement.

  
 Operating Budget shall mean an annual budget prepared
by the Manager and approved by Owner as part of the Annual Plan, reflecting in reasonable detail the projected or estimated revenues and expenses in respect of the Project for the applicable Operating Year. 
  
 Operating Equipment shall mean all blankets, linens, uniforms, silver,
china, glassware, crockery, kitchen utensils, cleaning equipment or any other similar items necessary or customary (now or in the future) in the reasonable opinion of Manager in order to operate the Project in accordance with the terms of this
Agreement and the Operating Standards. 
  
 Operating
Standards shall mean the operation of the Project in a manner consistent with (i) the condition of the Project as of the Effective Date (or, after the completion of any renovation specifically contemplated by this Agreement or any applicable
franchise agreement, the condition of the Project as of the date of completion of such renovation) and the condition and level of operation of hotels of comparable class and standing to the Project, (ii) then current market conditions regarding
rental rates and lease terms and conditions with respect to hotels of comparable class and standing to the Project, and (iii) then current prudent business and management practices applicable to the leasing, operation, repair, maintenance and
management of a hotel comparable in size, character and location to the Project, including those concerning compliance with applicable Legal Requirements and those business and management practices consistent with Wyndham system standards as applied
to Wyndham hotels of comparable character to the Project. For purposes of determining any Capital Improvements to be included in any Capital Improvements Budget, Manager agrees that, with respect to the general physical condition of the Hotel and
the Capital Improvements contained therein, the physical condition of the Project as of the completion of any renovation specifically contemplated by this Agreement or any applicable franchise agreement shall be sufficient to satisfy the related
Operating Standards. 
  
 Operating Year shall mean each
twelve (12) month period during the Term commencing on January 1 and ending on December 31, except that the first Operating Year shall be that period commencing on the Effective Date and ending on the next succeeding December 31. In the event that
this Agreement shall terminate on a date other than December 31, the last Operating Year hereunder shall end on the date of termination. 
  

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 Prime Rate shall mean the rate that is announced from time to time by Citibank, N.A. (or another
national bank agreed upon by Owner and Manager) as its “prime”, “base” or similar reference rate of interest for commercial loans. 
  
 Project shall mean the Hotel and the Site. 
  
 Reimbursable Expenses shall mean all travel, lodging, entertainment, telephone, telecopy, postage, courier, delivery, employee training and other
expenses incurred by Manager which are directly related to its performance of this Agreement. Each Annual Plan shall make provision for Reimbursable Expenses. 
  

Reserve shall mean the reserve established pursuant to Section 5.2(b) of this Agreement to be deposited in one or more accounts with a
bank or banks designated by Owner and approved by Manager, such approval not to be unreasonably withheld or delayed, bearing the name of the Project and styled Repairs and Replacement Account. 
  
 Restoration shall mean the repairing, rebuilding and replacing of the
Hotel upon the destruction or damage of the Project or any part thereof or upon the taking of the Project or any part thereof by Condemnation to a value, condition and character substantially the same as (in the case of damage or destruction) or as
near as possible to (in the event of Condemnation) the value, condition and character of the Project immediately prior to such damage, destruction or Condemnation. 
  
 Site shall mean that certain tract of land located in the State of California, County of Riverside, City of Palm
Springs, more particularly described in Exhibit A to this Agreement. 
  
 Term shall mean that period commencing on the Effective Date and continuing until the fifth (5th) anniversary of the Effective Date, unless this Agreement shall be sooner terminated or extended as herein
provided, in which case the word “Term” shall mean such lesser or extended period of time. 
  
 Termination Fee, in respect of any termination of this Agreement pursuant to which a Termination Fee is payable, shall mean an amount equal to
three (3) times the Average Monthly Base Fee. 
  
 Uniform
System of Accounts shall mean the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, 1996, as adopted by the American Hotel and Motel Association and all future amendments and supplements thereto approved by Manager and
Owner (such approval not to be unreasonably withheld or delayed). 
  
 ARTICLE II 
  
 APPOINTMENT OF MANAGER AND RENEWAL RIGHTS

  
 Section 2.1 Appointment of Manager. Owner hereby
appoints Manager as its sole and exclusive agent to manage and operate the Project during the Term in accordance with the Operating Standards and the terms and conditions set forth in this Agreement. Manager agrees to manage the Project during the
Term as the agent of Owner in accordance with the Operating 
  

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 Standards and the terms and conditions of this Agreement. Owner and Manager agree that the agency created by this
Agreement is coupled with an interest and is terminable only in accordance with the express provisions of this Agreement. 
  
 Section 2.2 Renewal of Term. Upon the expiration of the original Term of this Agreement, it shall be automatically renewed for an additional
five (5) year period commencing upon the expiration of the original Term unless terminated by Owner or Manager effective at the end of the original Term by notice in writing to the other given not later than ninety (90) days prior to the end of the
original Term. Unless otherwise agreed, upon the effective date of any renewal, the Term of this Agreement and all other terms, covenants and conditions set forth in this Agreement shall be automatically extended to the expiration of the applicable
renewal term. 
  
 ARTICLE III  
  
 OPERATION OF THE PROJECT 
  
 Section 3.1 Duties and Authority of Manager. 
  
 (a) Subject to and consistent with the terms of this Agreement and the
Operating Standards, Manager shall have exclusive supervision, control and discretion in the management, maintenance and operation of the Project, including, but not limited to, the right, power and authority to (i) enter into such contracts and
agreements in the name and at the expense of Owner as Manager may deem to be reasonably necessary or advisable in connection with the management, maintenance and operation of the Project, provided, however, that Manager shall not enter into any such
contract or agreement without the approval of Owner if it obligates Owner for more than Twenty-Five Thousand Dollars ($25,000) or has a term, not cancelable upon not more than ninety (90) days’ notice without penalty, of more than one (1) year,
unless such contract or agreement has previously been approved by Owner as part of the Annual Plan, or if it includes an indemnity of the service provider by the Hotel or Owner for causes other than those caused by Owner’s willful misconduct or
gross negligence; (ii) determine and implement terms of admittance, charges for rooms and commercial space, charges for entertainment and food and beverages, which right shall specifically allow Manager to charge varying rates to different customers
or groups of customers and allow Manager, in the exercise of reasonable and sound business judgment consistent with the Operating Standards, to permit persons to occupy rooms or suites at the Project at rates lower than published rates or free of
charge or permit persons to dine at the restaurants or lounges located at the Project free of charge; (iii) determine and implement all phases of advertising, promotion and publicity relating to the Project; (iv) determine and implement all
employment policies (including salaries, wages, fringe benefits and other compensation, the hiring and discharge of employees and the establishment of employee retirement, severance and other benefit plans); (v) determine and implement credit
policies (including arrangements with credit card organizations); (vi) receive, hold and disburse funds, maintain bank accounts, procure Inventories, Operating Equipment, supplies and services; (vii) engage independent contractors to provide legal,
accounting or other professional or technical services in connection with the operation of the Project; (viii) initiate, settle or otherwise dispose of litigation or claims which might give rise to litigation, including the adjustment of insurance
claims, provided, however, that Manager shall not have such authority without the approval of Owner with respect to any litigation or claim where the amount in controversy exceeds Fifty 
  

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 Thousand Dollars ($50,000) and provided further that Manager shall obtain Owner’s written consent before filing any
lawsuit in the name of or on behalf of Owner (and in such case, such consent must in fact have been delivered and shall not be subject to being deemed to have been given pursuant to the last two sentences of this Section 3.1(a)); and (ix)
manage and direct generally all activities incidental to the operation of the Project in the ordinary course of business. Manager shall operate the Project in a businesslike and efficient manner and shall operate the Project solely for the operation
of a hotel business and for such other activities which are customary and usual in connection therewith. Except as otherwise expressly provided in this Agreement, to the extent that Owner’s approval is required for any matter in connection with
the foregoing or any other matter in connection with this Agreement, Owner shall approve or disapprove such matter within ten (10) days after being notified thereof by Manager; provided, however, that Owner shall approve or disapprove any such
matter involving pending litigation concerning the Project within five (5) business days after being notified thereof by Manager. If Owner does not approve or disapprove any such matter within the specified time period, then Manager may give a
second notice to Owner stating that Owner shall be deemed to have approved such matter if it does not approve or disapprove such matter within five (5) business days after the giving of such second notice. If Owner does not approve or disapprove
such matter within such further five (5) business day time period, Owner shall be deemed to have approved such matter. 
  
 (b) The parties acknowledge that Owner has engaged the Asset Manager to advise Owner with respect to the operation of the Hotel. The Asset Manager shall
not have any authority to manage the Hotel or to perform any of the responsibilities of Manager hereunder, but to the extent that Owner authorizes the Asset Manager to act on Owner’s behalf hereunder and notifies Manager in writing of such
authority and any limits thereon, Manager shall be entitled to rely upon consents, approvals, instructions and other actions of the Asset Manager within such authority and limits as if such actions were taken directly by Owner, unless and until
Manager is notified in writing to the contrary by Owner. 
  
 (c)
Upon Owner’s written request, Manager agrees that, to the extent funds in the Operating Accounts are sufficient to do so and provided that Owner has furnished Manager copies of billing statements or other information required to make such
payments, and unless otherwise instructed by Owner, Manager shall pay from the Operating Accounts all amounts necessary to discharge Owner’s payment obligations under any Mortgage indebtedness, ground leases and Impositions relating to the
Project, and Manager shall furnish to Owner, upon request, evidence that all such amounts have been paid. Manager will notify Owner prior to the due date of any payment of principal or interest on any Mortgage indebtedness, ground lease payment or
any payment of any Imposition if the funds in the Operating Account are insufficient to make any such payment (provided that Owner shall have previously furnished Manager copies of billing statements or other information setting forth such payments
and the dates the same are due and payable). 
  
 Section
3.2 Leases and Concessions. Neither party hereto, without the approval of the other party hereto, which shall not be unreasonably withheld or delayed, shall arrange leases or concessions for any restaurant, food service operation or any
other commercial or other operation in or about the Project. Any such lease or concession so approved shall be entered into in Owner’s name and shall be executed by Owner. As agent for Owner, Manager shall use all 
  

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 reasonable efforts to perform or cause to be performed all of Owner’s obligations under all present and future
leases and concessions made or granted with respect to the Project. Manager shall use reasonable efforts to collect all rents and other sums falling due during the Term under any such leases and concessions and shall deposit the same in the
Operating Accounts. 
  
 Section 3.3 Working Capital.
Owner shall at all times cause sufficient funds to be on hand in the Operating Accounts to assure the timely payment of all current liabilities of the Project, including but not limited to all items entering into the calculation of Income Before
Fixed Charges, all other costs and expenses incurred in connection with the Project pursuant to this Agreement and the performance by Manager of its obligations under this Agreement, all fees, charges and reimbursements payable to Manager hereunder
and all amounts required hereunder to be transferred into the Reserve. From time to time, upon ten (10) business days prior written notice from Manager that such funds are required and describing the purposes for which such funds are required, Owner
shall furnish to Manager funds which Manager deems reasonably necessary to assure that the Project shall have adequate working capital as herein provided. Owner agrees to deposit, on or before September 4, 2001 (such that such funds will be
available on September 4, 2001), the sum of $100,000 into the Operating Account for use as working capital, which amount shall be in addition to any other funds already on deposit therein. Owner shall be responsible for the Project’s working
capital requirements in excess of such amount, as provided in the foregoing provisions of this Section 3.3. 
  
 Section 3.4 Owner to Bear All Expenses. In performing its duties under any provision of this Agreement and in managing and operating the
Project, Manager shall act solely for the account of and as the agent of Owner. All expenses incurred by Manager in performing its duties in accordance with this Agreement and in managing and operating the Project in accordance with this Agreement
shall be borne exclusively by Owner. To the extent that the funds necessary therefor are not generated by the operation of the Project, they shall be promptly supplied by Owner in the manner provided in Section 3.3, above. Manager shall in no
event be required to advance any of its funds or utilize Manager’s credit for the operation of the Project, nor shall Manager be required to incur any liability in connection therewith, unless Owner shall have furnished Manager with funds
necessary for the discharge thereof. 
  
 Section 3.5
Transactions with Affiliates. Manager may, with Owner’s consent, which shall not be unreasonably withheld or delayed, engage one or more of its Affiliates or other related parties to furnish goods or services to the Project, provided,
however, that the terms of any such arrangement shall be no less favorable in any material respect to the Project than those reasonably obtainable from an unrelated party. Manager shall include provision in the applicable Annual Plan for any amounts
payable pursuant to such arrangements, which shall be in addition to the Management Fee and other amounts payable to Manager under this Agreement. Upon Owner’s written request, Manager will obtain at least two (2) competitive bids from
unrelated third parties approved by Manager for any such goods and services. At its option, Owner may elect to obtain such goods and services from an unrelated third party provided that the cost thereof does not exceed that which would be payable if
the applicable goods and services were acquired from an Affiliate of Manager and, provided further, that the quality of such goods and standards must comply with the Operating Standards. 
  

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 Section 3.6 Centralized or Pooled Purchasing. Manager may, with Owner’s consent, which
shall not be unreasonably withheld or delayed, cause the Project to participate, along with other hotels owned, managed or franchised by Manager or one of its Affiliates, in one or more centralized or pooled purchasing programs or arrangements for
the procurement of goods or services used in connection with the operation of the Project, provided, however, that the terms of any such program or arrangement shall be no less favorable to the Project in any material respect than those reasonably
obtainable from an unrelated party (and, in that regard, upon Owner’s written request, Manager shall follow the same bid procedure under this Section 3.6 with respect to the goods and services as provided in Section 3.5). Owner
acknowledges that Manager from time to time may receive certain volume discounts, refunds, rebates or bonuses in connection with its centralized or pooled purchasing programs or arrangements. Any such refunds, rebates or bonuses that are reasonably
allocable to the Project in a fair and equitable manner will be paid into the Operating Accounts. Any refunds, rebates or bonuses attributable to hotels owned by Manager or its Affiliates may be retained by Manager or such Affiliates. Any such
refunds, rebates or bonuses received by Manager or its Affiliates that are not reasonably allocable to the Project may be retained by Manager or its Affiliates. 
  

ARTICLE IV 
  
 PERSONNEL 
  
 Section 4.1 Employment of Personnel. Manager shall be responsible for and shall have the sole and exclusive right to hire, promote, discharge, supervise, train, transfer and determine the terms of employment of the Executive
Personnel and, through the Executive Personnel, all other administrative, service and operating employees of the Project. All such employees of the Project shall be employees of Manager or one of Manager’s Affiliates. In addition, Manager may,
from time to time, assign one or more of its employees to the staff of the Project on a full-time, part-time or temporary basis. Owner shall have the right to approve the hiring of the initial and any subsequent general manager, controller, director
of sales and director of food and beverage for the Project, which approval shall not be unreasonably withheld or delayed. Notwithstanding the provisions of this Section 4.1 or any other provision of this Agreement, all costs, expenses and
liabilities relating to Project employees shall be expenses of operating the Project and the responsibility of Manager for acts or omissions of Project employees shall not extend beyond responsibility for the gross negligence or willful misconduct
of the Executive Personnel. Manager acknowledges, however, that such Executive Personnel have the duties specified in the first sentence of this Section 4.1 with respect to other Project employees. 
  
 Section 4.2 Union Negotiations. Manager will notify and consult
with Owner and obtain Owner’s consent (which shall not be unreasonably withheld or delayed) prior to engaging in any negotiations with any labor union that, at the applicable time, is lawfully entitled to represent employees of the Project.
Manager will keep Owner advised of the progress of any such union negotiations, and Owner shall have the right to have a representative present at such negotiations. Manager shall not enter into any collective bargaining agreements or labor
contracts with respect to employees of the Project without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed. 
  

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 Section 4.3 Payment of Employees. Manager shall be entitled to withdraw from the Operating
Accounts all wages, salaries, fringe benefits and other compensation paid or payable with respect to all Project employees and Manager shall pay such compensation directly to such employees. 
  
 Section 4.4 Personnel Accommodations. Manager shall decide
which, if any, of the Executive Personnel shall reside at the Project. Manager shall be permitted to provide free room and board to one member of the Executive Personnel and his or her family. In addition, Manager shall be permitted to provide free
accommodations and amenities to Manager’s employees and representatives visiting the Project on a temporary basis in connection with the management and operation of the Project. 
  
 Section 4.5 Employee Health Insurance. Subject to reasonable availability, Manager shall, at no cost to
Manager, be responsible for arranging health insurance coverage for employees of the Project. Subject to the prior agreement of Owner and Manager and subject to reimbursement of Manager of all applicable costs and expenses (including, but not
limited to, those associated with compliance with the Consolidated Omnibus Budget Reconciliation Act of 1985 and an exit premium in connection with the termination of such coverage), Manager may permit the enrollment of some or all of such employees
under health insurance plans maintained by Manager. 
  
 ARTICLE V
 
  
 REPAIRS, MAINTENANCE AND CAPITAL IMPROVEMENTS

  
 Section 5.1 Repairs and Maintenance. During the
Term, Manager, at the expense of Owner, shall take good care of the Project (other than such portions thereof as are leased to tenants who undertake a duty of repair and maintenance) and maintain the same in good order and condition and make all
repairs thereto as may be necessary to maintain and operate the Project in accordance with the Operating Standards; provided, however, that in no event shall the responsibilities of Manager include the obligation to repair or otherwise maintain the
structural integrity of the Hotel or other matter relating to defects in design, materials or workmanship in the construction of the Hotel, all of which shall be the responsibility of Owner. 
  
 Section 5.2 Repairs and Replacements. 
  
 (a) As set forth in this Section 5.2, Manager shall, from funds
derived from the operation of the Project or funds contributed by Owner, establish the Reserve to cover the cost of (i) additions to and substitutions, replacements and renewals of FF&E and (ii) certain non-routine repairs and maintenance to the
Project which are normally capitalized under generally accepted accounting principles such as exterior and interior repainting, resurfacing building walls, floors, roof and parking areas, replacing folding walls and similar items. Subject to the
requirements of any Mortgage or other applicable loan documents (with Owner to provide copies of any such Mortgage or other applicable loan documents to Manager), the Reserve shall be maintained in an interest-bearing account or, if directed by
Owner, shall be invested in short-term obligations approved by Owner and Manager. All amounts in the Reserve shall be the property of Owner, and any interest on amounts in the Reserve shall remain a part of the 
  

 12 

 Reserve. To the extent that Manager shall be required to pay any income taxes on any interest paid on amounts in the
Reserve, the same shall be payable out of the Reserve. 
  
 (b)
Once each calendar month, Manager shall transfer from the Operating Accounts into the Reserve an amount equal to four percent (4%) of the Gross Revenues for each such month during the Term or such greater amount as may be required under the terms of
any Mortgage or other applicable loan documents (with Owner to provide copies of any such Mortgage or other applicable loan documents to Manager). The amount to be contributed to the Reserve is an estimate of amounts required for the purposes set
forth in Section 5.2(a). 
  
 (c) To the extent funds are
available in the Reserve or are otherwise supplied by Owner, Manager shall from time to time make such additions to and substitutions, replacements and renewals of FF&E and all such non-routine repairs to the Hotel (as described in Section
5.2(a)(ii) above) as Manager shall reasonably deem necessary or desirable and Manager shall be entitled to withdraw funds from the Reserve for such purpose provided that the related expenditure or expenditures are provided for in the Annual Plan
or are otherwise permitted by this Agreement or approved in writing by Owner. Proceeds from the sale of FF&E no longer necessary to the operation of the Project shall be deposited in the Reserve in addition to the amounts otherwise required to
be deposited into the Reserve under Section 5.2(b). At the end of each Operating Year, any amounts remaining in the Reserve shall be carried forward to the next Operating Year, and the amount thereof shall not reduce contributions to be made
to the Reserve in accordance with Section 5.2(b) for any succeeding month. Any amount remaining in the Reserve upon termination of this Agreement shall be transferred to Owner. 
  
 Section 5.3 Capital Improvements. 
  
 (a) Manager shall promptly notify Owner of the need for all Capital Improvements provided for in the Annual Plan then in
effect, whereupon work in respect of such Capital Improvements will be promptly commenced and completed by Owner in accordance with plans, schedules and specifications therefor approved by Manager. Except as otherwise provided herein or in the
Annual Plan then in effect, Manager shall make no Capital Improvements in or to the Project without the express written approval of Owner. Notwithstanding the foregoing, if Manager shall, at any time, believe that (i) a dangerous condition exists at
the Project, (ii) repairs or Capital Improvements are required to comply with any applicable Legal Requirement or (iii) expenditures are required to remedy any condition caused by fire, Act of God, flood, earthquake or other like casualty or other
emergency, Manager shall notify Owner (in the case of emergency, such notice to be given as promptly as reasonably possible given the circumstances of the emergency) and Manager shall as promptly as possible take all steps and make all expenditures
necessary to remedy or cure any such condition or to comply with any applicable Legal Requirement. 
  
 (b) The cost of all Capital Improvements made under this Section (except as otherwise expressly provided in (a) above) shall be borne and paid for
directly by Owner. 
  
 Section 5.4 Enforcement of
Guaranties and Warranties. Owner shall furnish to Manager copies of all guaranties and warranties relating to the Project in Owner’s possession or control and will exercise all reasonable efforts to obtain and deliver to Manager copies of
all 
  

 13 

 such guaranties and warranties not in Owner’s possession or control. Manager shall use all reasonable efforts to
enforce all such guaranties or warranties and Owner shall cooperate with Manager in such efforts. 
  
 Section 5.5 Ownership of Replacements. All changes, repairs, alterations, improvements, renewals or replacements of FF&E and Capital
Improvements to the Project shall be the property of Owner. 
  
 ARTICLE VI 
  
 ANNUAL PLAN, BOOKS, RECORDS AND REPORTS

  
 Section 6.1 Annual Plan. 
  
 (a) At least forty-five (45) days prior to the commencement of each Operating
Year (except the first Operating Year), Manager shall submit to Owner for Owner’s written approval the Annual Plan for the following Operating Year. Manager shall submit an interim operating budget for the first Operating Year within thirty
(30) days after the Effective Date, with such interim operating budget to include a cash forecast and Manager’s estimate of the Gross Revenues and operating expenses of the Project for the first Operating Year. 
  
 (b) Owner shall give its written approval or disapproval of the Annual Plan
not later than thirty (30) days after its submission to Owner by Manager. 
  
 (c) If Owner does not approve or disapprove such Annual Plan within such thirty (30) day period, then Manager may deliver written notice to Owner (with a copy to Owner’s counsel as required by Section
13.10) stating that Owner shall be deemed to have approved the Annual Plan as submitted by Manager if it does not approve the Annual Plan within ten (10) days after the giving of such notice. If Owner does not approve or disapprove such Annual
Plan within such ten (10)-day period, then Owner shall be deemed to have approved the Annual Plan as submitted by Manager. If Owner objects to all or any portion of such Annual Plan, then Owner shall notify Manager of the reasons for its objections
at the same time as it notifies Manager of its objection or as soon thereafter as reasonably practicable (and in any event within fifteen (15) days thereafter), and Owner and Manager shall use their commercially reasonable efforts to agree in
respect of the items to which Owner objects. Should Owner and Manager not reach agreement on all or any portion of the Annual Plan, pending agreement being reached, and in the case of the first Operating Year, during the period prior to submission
of the Annual Plan, Manager shall operate the Project in accordance with the Operating Standards and this Agreement and, if such disagreement relates to an Operating Year after the first Operating Year, at rates or levels of expenditures comparable
to those of the preceding Operating Year with suitable adjustments of rates and expenses for such items or portions thereof as dictated by inflationary factors, seasonality and the necessity of operating the Project in accordance with the Operating
Standards and this Agreement. The foregoing procedure shall also apply to approval of proposed revisions to the Annual Plan pursuant to Section 6.1(d). 
  

(d) Manager shall monitor the Annual Plan throughout the Operating Year. Should Manager consider it necessary to revise the Annual Plan during the
course of the Operating Year, whether due to changed trading climate, unforeseen capital requirements or for any other reason. 
  

 14 

 Manager shall submit such revisions to Owner for Owner’s approval, setting forth the reasons for the revisions.

  
 (e) Manager will use commercially reasonable efforts to cause
the Project to be operated in accordance with the Annual Plan. While the Annual Plan is an estimate only, Manager will prepare it using assumptions that Manager believes to be reasonable at the time of its preparation. The Project’s actual
results may differ from the projected results, and Manager does not guarantee, warrant or represent that the actual financial or other results will conform to the Annual Plan. Nevertheless, Manager shall not, without Owner’s approval, incur
discretionary expenses (meaning expenses other than those that meet all of the following criteria: (i) they are required to be incurred for the operation of the Project in accordance with the Operating Standards, (ii) they are determined by a third
party or Governmental Authority and (iii) they are not within the reasonable control of Manager, such as utilities and energy expenses, minimum wages under collective bargaining agreements, taxes and insurance premiums) in any full Operating Year
that cause the total amount expended with respect to any expense category listed on Exhibit C for any full Operating Year to exceed the amount budgeted therefor in the applicable Annual Plan by more than three percent (3%) of such budgeted
amount; provided, however, that the foregoing shall not apply to expenses incurred to mitigate emergencies at the Project or to variable expenses to the extent of any increase in Gross Revenues with respect to which such expenses are variable.
Notwithstanding any other provision in this Agreement, this Section qualifies any and all references to the Annual Plan in this Agreement and any and all authority of Manager to incur, create, pay or receive reimbursement from Owner for, costs and
expenses incurred in connection with the operation of the Project. 
  
 Section 6.2 Books and Records; Operating Accounts. 
  
 (a) Manager shall keep full and adequate books of account and such other records as are necessary to reflect the results of operation of the Project. Such books of account shall be kept in all material respects in
accordance with the Uniform System of Accounts. The books of account and all other records relating to, or reflecting the operation of, the Project shall be kept at the Project or at the corporate office of Manager and shall be available to Owner
and its representatives at all reasonable times for examination, inspection and copying. Upon any termination of this Agreement, all of such books and records (or copies thereof) shall be turned over to Owner forthwith so as to insure the orderly
continuance of the operation of the Project, but the books and records through such date of termination shall thereafter be available to Manager at all reasonable times for inspection, examination and copying. 
  
 (b) It is acknowledged that Manager has no knowledge and cannot represent the
accuracy of historical financial information concerning the Project prior to the Effective Date of this Agreement. To the extent that Project accounting records relating to the period prior to the Effective Date require reconstruction or material
correction, Manager shall exercise all reasonable efforts to assist Owner to effect such reconstruction or correction, and notwithstanding any provision in this Agreement to the contrary, to the extent that Manager’s preparation and delivery of
financial statements for the Project hereunder are dependent upon such reconstruction or correction, Manager shall not be required to deliver to Owner any such financial statements for the Project until at least thirty (30) days following the
completion of such reconstruction or correction. 
  

 15 

 (c) Manager shall cause all funds advanced to the Project by Owner as working capital and all funds
derived from the operation of the Project to be deposited in the Operating Accounts. Manager shall have sole signatory authority over the Operating Accounts (provided, however, that Owner shall have the authority to close the Operating Accounts but
shall not otherwise have signatory authority thereon) and Manager shall be entitled to pay out of the Operating Accounts all costs and expenses incurred in connection with the operation of the Project, including without limitation all wages,
salaries, fringe benefits and other compensation and expenses relating to Project employees, all costs and expenditures which Manager is permitted or required to make pursuant to this Agreement, all fees, charges, reimbursements and other amounts
due Manager under this Agreement and all other amounts required to perform Manager’s obligations hereunder. Checks or other documents of withdrawal drawn upon the Operating Accounts shall be signed by representatives of Manager or Project
employees designated by Manager. Owner shall be responsible for and shall pay directly from funds outside the Operating Accounts and the Reserve all costs of Capital Improvements, as well as the payments and related costs and expenses for which
Owner is responsible pursuant to Section 11.1 hereof. In addition to the Operating Accounts, Manager shall be entitled to maintain such funds as it deems necessary in house banks or in petty cash funds at the Project. 
  
 Section 6.3 Reports. 
  
 (a) On or before the fifteenth (15th) day of each calendar month during the
Term, Manager shall deliver to Owner monthly unaudited financial statements prepared from the books of account maintained by Manager, consisting of a balance sheet and a profit and loss statement for the Project for the preceding calendar month and
the Operating Year to date. The monthly financial statements shall also contain or be accompanied by statements and calculations of the Management Fee for the preceding calendar month. 
  
 (b) Within ninety (90) days after the end of each Operating Year, Manager shall cause to be delivered to Owner financial
statements for such Operating Year consisting of at least a balance sheet and related statement of profit and loss, together with a source and application of funds analysis for such Operating Year, audited and certified by the Independent Auditor as
prepared in accordance with the Uniform System of Accounts and generally accepted accounting principles consistently applied. The annual financial statements shall also include or be accompanied by a statement prepared by the Independent Auditor
showing the calculation of the Management Fee for such Operating Year. Unless Owner or Manager notifies the other in writing of any objection to such audited financial statements within thirty (30) days following its receipt thereof, such financial
statements shall be conclusive upon the parties and shall be deemed to be a final determination of the Management Fee for such Operating Year. The cost of the annual audit shall be an operating expense of the Project. 
  
 ARTICLE VII 
  
 MANAGEMENT FEE, EXPENSE REIMBURSEMENT AND REMITTANCES TO OWNER 
  
 Section 7.1 Management Fee. 
  
 (a) Base Fee. On or before the tenth (10th) day of each calendar month
during the Term, and at the expiration or sooner termination of the Term, Owner shall pay to Manager an 
  

 16 

 amount equal to the Base Fee for the period from the commencement of the then current Operating Year to the end of the
immediately preceding calendar month or the date of such expiration or sooner termination of the Term, as the case may be, less the aggregate amount of monthly payments theretofore paid in respect of the Base Fee for such Operating Year. 

 
 (b) Incentive Fee. On or before the ninetieth (90th) day following
the end of each Operating Year, and at the expiration or sooner termination of the Term, Owner shall pay to Manager an amount equal to the Incentive Fee, if any, for such Operating Year. 
  
 Section 7.2 Year-End Adjustment to Management Fee. If for any Operating Year, the aggregate amount of the
monthly payments of the Management Fee theretofore paid by Owner to Manager shall be more or less than the Management Fee payable for such Operating Year based upon the final determination of such Management Fee as reflected in the annual financial
statements certified by the Independent Auditor in accordance with Section 6.3 of this Agreement, then, by way of year-end adjustment, within thirty (30) days after the delivery of such annual financial statements to Owner, Manager shall pay into
the Operating Accounts the amount of any overpayment or withdraw from the Operating Accounts the amount of any underpayment; provided, however, that in the event that funds in the Operating Accounts are not sufficient to pay fully the Management Fee
payable to Manager hereunder, Owner shall promptly pay to Manager on demand the amount of such deficiency. 
  
 Section 7.3 Expense Reimbursement. Owner shall be obligated to reimburse Manager for all Reimbursable Expenses incurred by it (subject to
Section 6.1(e)) in connection with the performance of this Agreement. Manager shall submit a monthly invoice for its Reimbursable Expenses showing in reasonable detail the nature and amount of such expenses, and such invoices shall be payable within
five (5) days after submission. 
  
 Section 7.4
Purchasing and Technical Services Fees. To the extent provided for in the Annual Plan or otherwise approved by Owner, Manager or one of its Affiliates shall be entitled to the payment of purchasing and technical services fees with respect to
the acquisition, or supervision of installation or construction, of Capital Improvements, FF&E, Operating Equipment and Inventories at the Project. 
  
 Section 7.5 Remittances to Owner. On or before the fifteenth (15th) day of each calendar month of each Operating Year, subject to the
requirements of any Mortgage or other applicable loan documents (with Owner to provide copies of any such Mortgage or other applicable loan documents to Manager), Manager shall remit to Owner all sums in the Operating Accounts in excess of the then
working capital requirements of the Project determined in accordance with Section 3.3 of this Agreement. 
  
 ARTICLE VIII 
  
 INSURANCE AND INDEMNITIES 
  
 Section 8.1
Insurance. Subject to reasonable availability, Manager shall, at no cost to Manager, procure and maintain with responsible and properly licensed companies reasonably acceptable to Owner insurance in such amounts, written on such forms and
covering such risks as shall be required by any Mortgagee or as shall otherwise be reasonably required by Owner or 
  

 17 

 Manager, including but not limited to the insurance in respect of the Project described in Exhibit B to this
Agreement. Notwithstanding the foregoing, upon notice to Manager, Owner may procure and maintain any such insurance with responsible and properly licensed companies reasonably acceptable to Manager, in which case Owner shall have, for the benefit of
Manager, the responsibilities set forth in Section 8.2 with respect to such insurance. 
  
 Section 8.2 Evidence of Insurance. Upon written request of Owner, Manager agrees to deliver to Owner evidence reasonably satisfactory to Owner that all insurance required to be maintained under this
Agreement is in full force and effect. In addition, prior to the date on which any such insurance premiums must be paid to prevent delinquency thereof, Manager will, upon request of Owner, deliver to Owner a statement or statements showing the
amount of the premiums required to be paid, the name and mailing address of the party to whom the same is payable and receipts reflecting that all such amounts have been fully paid. 
  
 Section 8.3 Investigation of Claims and Reports. Manager shall promptly investigate and, as soon as reasonably
practicable, make a full written report to Owner as to all material accidents, claims for damage relating to the ownership, operation and maintenance of the Project and the estimated cost of repair thereof, and shall prepare at the expense of and
for the approval of Owner, any and all reports required by any insurance company in connection therewith. All such reports shall be promptly filed with the applicable insurance company. All policies of insurance required under this Agreement shall
provide for adjustment of losses of less than Fifty Thousand Dollars ($50,000) by Manager alone and of greater losses by Owner and Manager jointly (provided, however, that Manager’s approval of any such adjustment of greater losses shall not be
required in respect of insurance procured by Owner, rather than by Manager, unless such insurance by its terms requires such approval by Manager). 
  
 Section 8.4 Indemnities. 
  
 (a) Manager shall indemnify and hold harmless Owner and its Affiliates and their respective partners, shareholders, directors, officers, employees and
agents from and against any and all liability, loss, damages, costs and expenses (“Liabilities”) incurred by reason of the management and operation of the Project by Manager during the Term insofar and only insofar as such Liabilities are
caused by the gross negligence or willful misconduct of the Executive Personnel. Project employees other than the Executive Personnel shall not be deemed to be employees or agents of, or otherwise acting on behalf of, Manager. 
  
 (b) Owner shall indemnify and hold harmless Manager and its shareholders and
Affiliates and their respective partners, shareholders, directors, officers, employees and agents from and against any and all Liabilities (including those caused by the simple negligence of the indemnitee and those as to which the indemnitee may
be strictly liable) (i) arising out of or incurred in connection with the construction, renovation, management or operation of the Project or (ii) which may be asserted or arise as a direct or indirect result of the presence on or under, or
escape, seepage, leakage, spillage, discharge, emission or release from the Project of any Hazardous Materials or any Hazardous Materials Contamination or arise out of or result from the environmental condition of the Project or the applicability of
any Legal Requirements relating to Hazardous Materials, except, in the case of both (i) and (ii) above, those Liabilities caused by the gross negligence or willful misconduct of the Executive Personnel during the 
  

 18 

 Term. Owner shall in no event be required to indemnify any individual indemnitee from and against Liabilities that are
directly caused by his, her or its own gross negligence or willful misconduct. 
  
 (c) In case an action covered by this Section 8.4 is brought against any indemnified party, the indemnifying party will be entitled to assume the defense thereof, subject to the provisions herein stated, with
counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party will not be liable to such indemnified party
for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense
thereof, but the fees and expenses of such counsel shall not be at the expense of the indemnifying party if the indemnifying party has assumed the defense of the action with counsel reasonably satisfactory to the indemnified party; provided that the
fees and expenses of the indemnified party’s counsel shall be at the expense of the indemnifying party if (i) the employment of such counsel has been specifically authorized in writing by the indemnifying party or (ii) such indemnified party
shall have been advised by counsel that there is a conflict of interest or issue conflict involved in the representation by counsel employed by the indemnifying party in the defense of such action on behalf of the indemnified party or that there may
be one or more legal defenses available to such indemnified party which are not available to the indemnifying party (in which case the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified
party, it being understood, however, that the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnified party, which firm shall be designated in writing by the indemnified party). 
  
 (d) Notwithstanding any contrary provision of this Section 8.4, Owner
and Manager agree for the benefit of each other that, with respect to Liabilities covered by this Section, they will look for recovery first to the appropriate insurance coverages in effect pursuant to this Agreement, regardless of the cause of such
Liabilities. Any payment by Owner pursuant to this Section shall be treated as an operating expense of the Project to the extent that the basis of the Liabilities with respect to which the payment is made is an expense that would qualify as such
under the Uniform System of Accounts. Such payments by Owner otherwise shall be a cost of operating the Hotel, which shall be payable from the Operating Account (or if there are not sufficient funds available therein, by Owner) but shall not
constitute a deduction in calculating Net Operating Income for purposes of determining the Incentive Fee payable hereunder. 
  
 (e) The provisions of this Section shall survive any termination or expiration of this Agreement, whether by lapse of time or otherwise, and shall be
binding upon the parties hereto and their respective successors and assigns and shall not impair any remedy either party has for an event of default by the other party hereunder. 
  

 19 

 ARTICLE IX 
  
 DAMAGE AND CONDEMNATION 
  
 Section 9.1 Damage or Destruction. 
  
 (a) If the Hotel shall be totally destroyed or substantially damaged by fire or other casualty, either party may, within sixty (60) days after the
occurrence of such event, give written notice to the other terminating this Agreement. For purposes of this Section, the Hotel shall be deemed to have been substantially damaged if the estimated cost of Restoration shall exceed twenty percent (20%)
of the cost of replacing the Hotel by constructing, furnishing and equipping a new hotel on the site substantially the same as the Hotel prior to such casualty. 
  

(b) In the event of (i) any damage to the Hotel by fire or other casualty which does not amount to “substantial damage” as described in
subsection (a) above, or (ii) the total destruction of or substantial damage to the Project and the failure of either party to terminate this Agreement pursuant to subsection (a) above, then this Agreement shall not terminate, and, subject to the
requirements of any Mortgage, Owner shall, at its own expense and in accordance with plans and specifications therefor developed by Owner and approved by Manager (which approval shall not be unreasonably withheld or delayed), promptly commence and
expeditiously complete the Restoration and all proceeds of property and casualty insurance shall be made available to Owner for this purpose; provided, however, that Manager shall have the right to ensure that such proceeds of insurance shall be
applied to the Restoration. Owner shall promptly commence and diligently pursue the Restoration to completion; provided, however, that if Owner shall not fully complete the Restoration within a reasonable period of time after the date of such
casualty or one hundred eighty (180) days, whichever is earlier (or such longer period as Manager may approve), then Manager shall have the right to terminate this Agreement upon thirty (30) days’ prior written notice to Owner. 
  
 Section 9.2 Condemnation. 
  
 (a) If all or a substantial portion of the Project shall be taken by
Condemnation (other than for temporary use), this Agreement shall terminate as of the date of such taking. A substantial portion of the Project shall be deemed taken if in the reasonable opinion of Manager or Owner the part not taken may not be
repaired, restored, replaced, rebuilt or utilized so as to constitute a hotel facility in keeping with this Agreement. If this Agreement shall terminate pursuant to the foregoing provisions of this Section, the Condemnation award, after payment of
all sums due and payable to any Mortgagee, shall be paid to Owner as its property, provided, however, that Manager may make a separate and distinct claim against the condemning authority for the value of the loss of its interest in this Agreement.

  
 (b) If a portion of the Project shall be taken by Condemnation
and this Agreement is not terminated pursuant to subsection (a) above, the Condemnation award relating to damage to or the taking of the Project, including any interest thereon, shall be made available to Owner for application to the Restoration of
the Project made necessary by such taking (provided, however, that Manager shall have the right to ensure that such Condemnation award, together with interest thereon, shall be applied to the Restoration). Such Restoration shall, subject to the
requirements of any Mortgage, be promptly commenced and expeditiously completed by, and at the expense 
  

 20 

 of, Owner in accordance with plans and specifications therefor developed by Owner and approved by Manager (which approval
shall not be unreasonably withheld or delayed) so as to restore the Project as nearly as possible to its value, condition and character immediately prior to the Condemnation. 
  
 (c) In the event of a Condemnation of all or part of the Project for temporary use, this Agreement shall remain in full
force and effect, and the following shall be applicable: 
  
 (i) If the Condemnation is for a period not extending beyond the Term, the Condemnation award, including any interest, shall be included in Gross Revenues for the Operating Year or Years in which received. When and if
during the Term the period of temporary use shall terminate, Owner shall, at its own expense, after the approval of plans and specifications by Manager, promptly commence and expeditiously complete the Restoration necessary to restore the Project to
its condition prior to the Condemnation for temporary use; or 
  
 (ii) If the Condemnation is for a period extending beyond the Term, that portion of the Condemnation award which is attributable to the period up to the expiration of the Term shall be included in Gross Revenues for
the Operating Year or Years in which received. The remainder of the Condemnation award shall be paid to Owner as its property. 
  
 ARTICLE X 
  
 ASSIGNMENT 
  
 Section 10.1 Assignment by Manager. Except as herein provided, Manager shall not assign its rights and obligations under this Agreement without the approval of Owner. Manager shall have the right, without the consent of Owner,
to assign its interest in this Agreement to (i) any Affiliate of Manager having full right, power and authority to provide to Owner all services and organizational expertise which Manager is required to provide hereunder, or (ii) any assignee who
also acquires all, or substantially all, of the assets of Manager and assumes its obligations, provided such assignee is financially responsible and capable of performing the duties of Manager hereunder. In such latter event, Manager’s
liability hereunder shall terminate upon such assignment, but in the event of such an assignment to an Affiliate of Manager, Manager shall continue to be liable under this Agreement to the same extent as though such assignment had not been made.
Manager shall also have the right to assign its rights to receive payments hereunder as security for indebtedness or any other obligation. 
  
 Section 10.2 Assignment by Owner. 
  
 (a) Except as otherwise expressly provided for herein, Owner may not sell, transfer or otherwise convey all or any part of the Project or Owner’s
interest therein or assign this Agreement or any interest herein without the express prior written consent of Manager (which will not be unreasonably withheld or delayed). Manager agrees that it will not use its right to grant or withhold consent as
a means to extract economic concessions from Owner. Instead, Manager agrees to make its decision based on its commercially reasonable evaluation of whether the proposed transferee or assignee has adequate net worth to timely discharge all of the

  

 21 

 obligations of Owner under this Agreement and whether the persons identified with the proposed transferee or assignee
will be persons of high character and with a favorable reputation for integrity, honesty and veracity and whether a proposed transfer or assignment will adversely affect the ownership, operation and management of the Project subject to and in
accordance with the provisions of this Agreement. In addition, Manager may consider whether the proposed transferee is another hotel manager or franchisor. Accordingly, Manager shall grant or withhold consent to any proposed transfer or assignment
on the basis of Manager’s evaluations and determinations of the factors enumerated in the preceding sentences. Any transferee or assignee by reason of any such transfer or assignment shall assume and agree to perform all of Owner’s duties,
obligations and liabilities herein contained pursuant to a written instrument in form and substance reasonably satisfactory to Manager, the transferee or assignee and any Mortgagee. The sale or other disposition of fifty percent (50%) or more of the
beneficial interests in Owner (whether partnership interests, shares of stock or other beneficial interests), whether in a single transaction or in a series of transactions, shall be deemed to constitute the sale or disposition of an interest in the
Project for purposes of this Article. With respect to any sale or transfer of the Project consented to by Manager which is to a person who is affiliated with, but is not itself, another hotel manager or franchisor, Manager shall have the right to
terminate this Agreement upon or following such transfer as provided in Section 12.5(b). 
  
 (b) Manager agrees that Owner may, upon at least fifteen (15) days’ prior written notice to Manager, transfer the entire Project to (i) American
Property Hotel LLC ( a New Mexico limited liability company) or one of its direct or indirect subsidiaries or (ii) any person who is directly or indirectly controlled by or under common control with Apollo Real Estate Investment Fund III, L.P., so
long as such person is not in the hotel franchising business as a franchisor of, and does not operate or manage hotels under, its own regionally or nationally recognized brand. In the event of a transfer pursuant to this Section 10.2(b),
Owner shall continue to be liable for its obligations hereunder in respect of the period prior to such transfer as if such transfer had not been made. Any transferee or assignee by reason of any such transfer shall assume and agree to perform all of
Owner’s duties, obligations and liabilities herein contained pursuant to a written instrument in form and substance reasonably satisfactory to Manager, the transferee and any Mortgagee. 
  
 (c) In the event of a proposed transfer of the Project, Owner shall provide
to Manager such information concerning the proposed transferee as Manager may reasonably request. Manager agrees not to disclose any such information to any person other than a Permitted Person (as hereinafter defined), provided, however, that the
restrictions of this Section 10.2(c) shall not apply to any information required to be disclosed by applicable law or to information that is public or becomes public other than by virtue of a breach of this Section 10.2(c). For
purposes of this Section 10.2(c), the term “Permitted Person” shall mean (i) the partners, shareholders, directors, officers and employees of Manager, (ii) accountants, attorneys, consultants and other professionals engaged to
render services in connection with the Project or Manager’s business and (iii) lenders, potential lenders and potential purchasers of or investors in Manager. Such Permitted Persons shall be informed of the confidential nature of the
information disclosed to them and shall be required to agree to act in accordance with the provisions of this Section 10.2(c) with respect to such information. 
  

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 Section 10.3 Binding Effect. Subject to the terms of this Article, this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 ARTICLE XI 
  
 OWNER’S COVENANTS, TITLE AND ENCUMBRANCES 
  
 Section 11.1 Covenants and Warranties. With respect to any ground or underlying leases, mortgages, deeds of trust, security agreements or other encumbrances affecting the Project, Owner agrees to use its good faith and
commercially reasonable efforts to secure for Manager’s benefit a non-disturbance agreement (in form and substance satisfactory to Manager) to the effect that this Agreement shall not be subject to forfeiture or termination except in accordance
with the provisions hereof, notwithstanding a default, termination, foreclosure or exercise of a power of sale with respect to any such lease or encumbrance. Owner covenants and represents that, so long as Manager shall not be in default hereunder,
Manager shall be entitled to operate the Project for the Term, and Owner shall, at no expense to Manager, perform all actions and obligations and undertake and prosecute all appropriate actions, judicial or otherwise, required to assure such right
of operation to Manager. Without limiting the generality of the foregoing, Owner agrees that it will obtain and maintain in good standing all Governmental Permits, except those which under applicable Legal Requirements are required to be obtained
and maintained by Manager. 
  
 Section 11.2 Estoppel
Certificates. Manager agrees, at any time and from time to time, upon not less than fifteen (15) days’ prior notice by Owner or any Mortgagee, to execute, acknowledge and deliver to Owner or such Mortgagee a statement in writing certifying
that this Agreement has not been modified and is in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and specifying the modifications) and stating whether or not to the best knowledge
of the party providing such certificate there exists any default of which such party may have knowledge. Upon similar notice, Manager shall be entitled to a similar certificate from Owner. 
  
 ARTICLE XII 
  
 DEFAULT AND TERMINATION  
  
 Section 12.1 Events of Default. 
  
 (a) The following shall constitute events of default: 
  

	 	(i)	The filing of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy law by either party; 

  

	 	(ii)	The consent to an involuntary petition in bankruptcy or the failure to vacate within thirty (30) days from the date of entry thereof any order approving an involuntary petition by
either party; 

  

	 	(iii)	The entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor, adjudicating either party as 

  
  

 23 

 bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee
or liquidator of all or a substantial part of such party’s assets, and such order, judgment or decree shall continue unstayed and in effect for thirty (30) days after its entry; 
  

	 	(iv)	The appointment of a receiver or trustee for all or any substantial portion of the property of either party and the order, judgment or decree appointing any such receiver or trustee
shall continue unstayed and in effect for thirty (30) days after its entry; 

  

	 	(v)	The death, legal incapacity, liquidation, termination or dissolution of either party; 

  

	 	(vi)	Any representation or warranty made in this Agreement by either party shall be false or misleading in any material respect on the date as of which it is made or deemed made;

  

	 	(vii)	The failure of either party to make any payment or provide funds to or on behalf of the other party in accordance with the terms hereof and the continuation of such failure for five
(5) business days after the date such payment was to be made or such funds were to be provided; or 

  

	 	(viii)	The failure of either party to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions set forth in this Agreement, and the continuance of such
default for a period of thirty (30) days after written notice is given by the other party specifying said failure; provided that in the event such failure is of the nature that it cannot, with due diligence, be cured within thirty (30) days, it
shall not constitute an event of default unless the defaulting party fails to proceed promptly and with due diligence to cure the same, it being the intention of the parties that with respect to a failure not susceptible of being cured within thirty
(30) days, the time of such defaulting party within which to cure the same shall be extended for such period as may be necessary for the curing thereof with the exercise of due diligence (provided, however, that the defaulting party shall provide
the non-defaulting party with reasonable evidence of its actions to effect such cure within such extended period of time). 

  
 (b) Upon the occurrence of any event of default, in addition to and cumulative of any and all rights and remedies available to the non-defaulting party
under this Agreement, at law or in equity, the non-defaulting party may give to the defaulting party notice of intention to terminate this Agreement, whereupon this Agreement shall terminate upon the expiration of thirty (30) days after the giving
of such notice. In addition to and cumulative of the foregoing, upon the occurrence of any event of default on the part of Owner, all accrued and unpaid Management Fees and all other accrued and unpaid sums payable to Manager under this Agreement
shall be immediately due and payable without notice. Neither the provisions of the preceding sentence nor the provisions of this Agreement with respect to the payment of a 
  

 24 

 Termination Fee upon termination of this Agreement under certain circumstances are intended as a statement of liquidated
damages and shall not be construed to establish or limit the amount of damages recoverable by Manager from Owner by reason of any event of default on the part of Owner. 
  
 Section 12.2 Manager’s Right to Perform Owner’s Obligations. If Owner shall fail to make any payment
or to perform any act to be made or performed by Owner pursuant to this Agreement and such failure shall continue for ten (10) days after Manager has given written notice thereof to Owner, then Manager may (but shall not be obligated to) without
further notice to, or demand upon, Owner, and without waiving or releasing Owner from any obligations under this Agreement, make such payment (either with its own funds or with funds withdrawn for such purpose from the Operating Accounts or the
Reserve) or perform such act. All sums so paid by Manager and all necessary incidental costs and expenses incurred by Manager in connection with the performance of any such act, together with interest thereon at the Default Rate from the date of
making such expenditure or expenditures by Manager, shall be payable to Manager upon demand. 
  
 Section 12.3 Default Interest. If either party hereto shall fail to pay to the other party hereto any sum payable when due hereunder, then such defaulting party shall, without notice or demand, be liable
to the non-defaulting party for the payment of all such sums together with interest thereon at the Default Rate. The terms and provisions of this Section shall survive any termination of this Agreement for any reason whatsoever (including the
expiration of the Term) and shall continue until all such amounts, together with interest thereon, are paid in full. 
  
 Section 12.4 Special Right of Owner to Terminate Without Cause. Owner shall have the right to terminate this Agreement, without cause, at
any time upon at least ninety (90) days prior written notice to Manager and the payment to Manager of the applicable Termination Fee. Such payment shall be made no later than, and shall be a condition precedent (which may be waived by Manager) to,
the termination of this Agreement. In addition, upon any such termination of this Agreement, all accrued and unpaid Management Fees and other accrued and unpaid amounts payable to Manager under this Agreement shall be immediately due and payable.

  
 Section 12.5 Special Rights of Manager to
Terminate. 
  
 (a) In addition and without prejudice to any
other right Manager may have to terminate this Agreement under any other provision of this Agreement, Manager shall have the right to terminate this Agreement upon the occurrence of any of the following events: 
  
 (1) Any Governmental Permit required to be maintained by
Owner for the operation of the Project, including without limitation any certificate of occupancy or restaurant or liquor license, shall at any time be suspended, terminated or revoked and such suspension, termination or revocation is not due to the
fault of Manager and shall continue for a period of thirty (30) days, unless such suspension, termination or revocation is subject to cure within such period by reasonable efforts on the part of Manager and Manager fails to take such action; or

  

 25 

 (2) Due to Force Majeure or any Legal Requirement, the operation of the Project in
accordance with this Agreement is not economical, feasible or reasonably practical, as determined in the reasonable, good faith opinion of Manager. 
  
 In the event that Manager elects to terminate this Agreement pursuant to this Section 12.5(a), Manager shall give Owner written notice of such election whereupon
this Agreement shall terminate as of the date set forth in any such notice of termination, which date shall be not less than thirty (30) days after the date such notice is given. Manager shall not be entitled to payment of a Termination Fee in
connection with a termination of this Agreement pursuant to this Section 12.5(a). 
  
 (b) In addition and without prejudice to any other right Manager may have to terminate this Agreement under any other provision of this Agreement, Manager shall have the right to terminate this Agreement if Owner
shall sell or transfer the Project in a transaction consented to by Manager pursuant to Section 10.2 and in which the transferee is affiliated with, but is not itself, another hotel manager or franchisor. If Manager elects to exercise such
termination right, it shall give written notice to Owner (which at the time the notice is given may be such transferee) of such election on or before the date that is sixty (60) days after the date of the consummation of the related sale or
transfer, and this Agreement shall terminate as of the date specified in such notice, which shall be not less than thirty (30) days after the date such notice is given. Manager shall not be entitled to payment of a Termination Fee in connection with
a termination of this Agreement pursuant to this Section 12.5(b). 
  
 Section 12.6 Termination of Employees. In connection with any termination of this Agreement, Manager shall, unless otherwise requested in writing by Owner, give notice of termination of employment to all
Project employees containing such information as is required by any severance policy applicable to such employees and the provisions of any applicable federal or state plant closing or similar laws. The notice to employees shall be given within ten
(10) days after notice of termination is given. Owner shall bear the severance and related costs terminating such employees and of any applicable federal or state plant closing or similar laws in connection with any termination of this Agreement.

  
 Section 12.7 Cooperation Upon Termination. Upon
the termination or expiration of this Agreement, Manager shall, at Owner’s expense, cooperate with and assist Owner and any successor management company in a smooth and orderly transition in the management and operation of the Hotel in a manner
consistent with past practices for day-to-day operations. In connection therewith, Manager shall cooperate to transfer to Owner, to the extent assignable under applicable Legal Requirements, all of Manager’s right, title and interest in and to
all restaurant, liquor and other licenses and permits relating solely and specifically to the Hotel. 
  
 ARTICLE XIII 
  
 MISCELLANEOUS 
  
 Section 13.1 Use of
Names. During the Term of this Agreement, the Project shall at all times be known and designated under such name as Owner and Manager may agree. Initially, pursuant to the terms of that certain Franchise Agreement between Owner and an Affiliate
of Manager, the Project shall be known as “Wyndham Palm Springs.” Upon the termination of this 
  

 26 

 Agreement, such portion of the Project name which does not contain the word “Wyndham” shall continue to be the
property of Owner. Owner further agrees that the name, trade name, trademark and service mark “Wyndham,” when used alone or in conjunction with some other emblem, design, slogan, word or words, and all other trademarks, service marks,
tradenames and names owned in whole or in part by Manager or an Affiliate of Manager, when used alone or in conjunction with some other design, emblem, slogan, word or words, are the exclusive property of Manager or such Affiliate, as the case may
be, and shall not be used by Owner in any manner. Accordingly, Owner agrees that no right or remedy of Owner for any default of Manager or delivery or possession of the Project to Owner upon the expiration or sooner termination of this Agreement,
shall confer, nor shall any provisions of this Agreement confer, upon the Owner or any person acquiring an interest in Owner or the Project, the right to use the name “Wyndham,” either alone or in conjunction with some other emblem,
design, slogan, word or words, or any other name, tradename, trademark or service mark owned in whole or in part by Manager or any of its Affiliates, either alone or in conjunction with some other design, emblem, slogan, words or words, in the use
and operation of the Project or any other property. In the event of any breach of this covenant by Owner, then Manager shall be entitled to damages, relief by injunction and to any other right or remedy at law or equity. Upon the expiration or
sooner termination of this Agreement, (i) Manager may, at its option, purchase from Owner any Operating Equipment, Inventories and other supplies bearing any name, trade name, trademark, service mark, design, emblem or slogan owned by Manager or an
Affiliate of Manager which is the subject of this Section at a cash purchase price equal to the cost thereof as reflected on the books and records of the Project or (ii) Manager may, at its option, permit Owner to continue to use (but not replace)
any such Operating Equipment, Inventories or supplies until the same shall have been used up (provided, however, that in such event, Manager may require Owner to execute any and all documents and instruments, including without limitation a licensing
agreement, as Manager may reasonably require to effectuate the purposes of this Section). The provisions of this Section shall survive the expiration or sooner termination of this Agreement and shall be binding upon Owner, its successors and
assigns. 
  
 Section 13.2 Limitations on Manager’s
Ability to Perform. Notwithstanding any other provision in this Agreement to the contrary, Manager shall be excused from the performance of its obligations under this Agreement (i) to the extent and whenever Manager shall be prevented from such
compliance by Force Majeure, (ii) to the extent of any breach by Owner of any provision of this Agreement, including but not limited to a breach by Owner of any of its obligations under Sections 3.3 and 3.4 of this Agreement, and (iii) to the
extent and whenever there is provided in this Agreement a limitation upon the ability of Manager to expend funds in respect of the Project. If at any time Manager shall be excused, in whole or in part, from the performance of its obligations under
this Agreement pursuant to the terms and provisions of this Section or otherwise, then, in addition to any other right or remedy available to Manager by reason thereof, Manager may, in its sole and absolute discretion, and for so long as Manager
shall be so excused, exclude the use of the name, trade name, trademark and service mark “Wyndham,” and all other names, tradenames, trademarks and service marks owned in whole or in part by Manager or an Affiliate or Manager, whether
alone or in conjunction with any other design, emblem, slogan, word or words, in connection with the Project. The provisions of this Section shall operate without prejudice to any other remedy which Manager may have under the terms of this
Agreement. 
  

 27 

 Section 13.3 Negation of Partnership or Joint Venture. Nothing in this Agreement shall
constitute or be construed to constitute or create a partnership, joint venture or lease between Owner and Manager with respect to the Project. 
  
 Section 13.4 Right to Make Agreement. Each party warrants and represents, with respect to itself, that the execution, delivery and
performance of this Agreement have been duly authorized by all necessary corporate, partnership or limited liability company action (as the case may be) and are legal, valid and binding obligations of such party, enforceable in accordance with the
terms hereof; and that neither the execution of this Agreement nor performance of the obligations contemplated hereby shall violate any Legal Requirement, result in or constitute a breach or default under any indenture, contract or other commitment
or restriction to which it is a party or by which it is bound, or require any consent, vote or approval which has not been obtained, or at the appropriate time shall not have been given or obtained. Each party covenants that it has and will continue
to have throughout the Term full right and authority to enter into this Agreement and to perform its obligations hereunder and each party agrees to supply to the other party upon request evidence of such right and authority. 
  
 Section 13.5 Further Assurances. Each party hereto will execute
and acknowledge any and all agreements, contracts, leases, licenses, applications, verifications and such other additional instruments and documents in recordable form as may be requested by the other party hereto in order to carry out the intent of
this Agreement and to perfect or give further assurances of any of the rights granted or provided for herein. 
  
 Section 13.6 Form of Documents and Evidence. Each written instrument or other document required by this Agreement to be furnished to the
Manager shall be duly executed by the person or persons specified (or where no particular person is specified, by such person as the Manager will require), duly acknowledged where required by the Manager and, in the case of affidavits, waivers and
similar sworn instruments, duly sworn to and subscribed before a notary public or similar public official authorized to act in the premises by Governmental Authority and shall be furnished to Manager in one or more copies as required by Manager and
shall in all respects be in form and substance reasonably satisfactory to Manager. Where evidence of the existence or non-existence of any circumstance or condition is required by this Agreement to be furnished to Manager, such evidence shall in all
respects be in form and substance reasonably satisfactory to Manager. 
  
 Section 13.7 Approvals by Manager. Owner and Manager agree that whenever Manager is required to give its approval of plans, specifications, budgets, drawings, schedules or financing, pursuant to this Agreement or otherwise,
such approval shall not imply or be deemed to constitute an opinion by Manager nor impose upon Manager any responsibility for the design or construction of the Hotel or any part thereof, including but not limited to its structural integrity and/or
life safety requirements, compliance with Legal Requirements, or the adequacy of any such budgets or financing. All reviews and approvals by Manager under the terms of this Agreement or otherwise are for the sole and exclusive benefit of Manager and
no other person or party shall have the right to rely on any such reviews or approvals. Manager shall have absolute right, in its sole discretion, to waive any such reviews or approvals required under this Agreement. 
  

 28 

 Section 13.8 Sale of Securities. In the event Owner, or any Affiliate of Owner, shall at
any time, sell of offer to sell any securities in any way relating to the Project, through the medium of any prospectus or otherwise, it shall do so only in compliance with all applicable Legal Requirements and shall clearly disclose to all
purchasers and offerees that (i) neither Manager nor any of its stockholders or partners nor any of their respective officers, directors, agents or employees shall in any way be deemed an issuer or underwriter of said securities, and (ii) Manager
and said stockholders, partners, officers, directors, agents and employees have not assumed and shall not have any liability arising out of or relating to the sale or offer of said securities, including but not limited to any liability or
responsibility for any financial statements, projections or other financial information contained in the prospectus or similar written or oral communication. Manager shall have the right to approve any description of Manager, or any description of
this Agreement or of the Owner’s relationship with Manager hereunder, which may be contained in any prospectus or other communication, and Owner further agrees to furnish copies of all such materials to Manager for such purpose not less than
thirty (30) days prior to delivery thereof to any prospective purchaser. 
  
 Section 13.9 Third Party Beneficiaries. This Agreement has been made and entered into for the sole protection and benefit of the Manager and Owner and their respective successors and assigns (but in the
case of assigns, so long as any such assignment has been made in accordance with this Agreement), and no other person or entity shall have any right or action under this Agreement, except as otherwise expressly provided in Section 8.4.

  
 Section 13.10 Notices. All notices to be given
hereunder shall be in writing, and all payments to be made hereunder shall be by check, and may be given, served or made by delivering the same in person or by reputable overnight courier to the party to be notified. Notice also may be given by
facsimile. Notice delivered by overnight courier shall be deemed to have been given on the second business day next following the date on which it is entrusted to the courier, or when actually received, whichever is earlier. Notice given in any
other manner shall be effective only if and when received by the party to be notified. All notices to be given to the parties hereto shall be addressed as follows: 
  
 To Manager: 
  
 Wyndham Management Corporation 
 c/o Legal
Department 
 1950 Stemmons Freeway, Suite 6001 
 Dallas, Texas 75207 
 Facsimile:            (214)
863-1986 
  
 With a copy to: 
  
 Locke Liddell & Sapp LLP 2200 
 Ross Avenue, Suite 2200 
 Dallas, TX 75201

 Attn:              Robert P. Taylor, III 
 Facsimile:    (214) 740-8800 
  

 29 

 To Owner: 
  
 AP/APH Palm Springs, L.P. 
 c/o Apollo Real
Estate Advisors III, L.P. 
 1301 Avenue of the Americas 
 38th Floor 
 New York, NY 10019 
 Attn:                  Alfred C. Trivilino, Vice President 
 Facsimile:        (212) 515-3283 
  
 With copies to: 
  
 Edward Rohling 
 c/o Shields, Britton &
Fraser 
 5401 Village Creek Drive 
 Plano, Texas 75093 
 Attn:                     Michael S. Britton, Esq. 
 Facsimile:            (972) 788-4332 
  
 and 
  
 Apollo Advisors, L.P. 
 1999 Avenue of the
Stars Suite 1900 
 Los Angeles, CA 90067 
 Attn:                 Michael D. Weiner 
 Facsimile:        (310) 201-4166 
  
 and 
  
 Brownstein Hyatt &
Farber, P.C. 
 Twenty-Second Floor 
 410 Seventeenth Street 
 Denver, CO 80202 
 Attn:              Steven C. Demby 
 Facsimile:    (303) 223-1111 
  
 By giving the other
party at least fifteen (15) days written notice thereof, each party hereto shall have the right to change its address and specify as its new address for the purposes hereof any other address in the United States of America. 
  
 Section 13.11 Waiver. No consent or waiver, express or implied,
by either party to this Agreement to or of any breach or default by the other in the performance of any obligations hereunder shall be deemed or construed to be consent or waiver to or of any other breach or default by such party hereunder. Except
as otherwise provided herein, failure on the part of any party hereto to complain of any act or failure to act by the other party or to declare the other party in default hereunder, irrespective of how long such failure continues, shall not
constitute a waiver of the rights of such party hereunder. 
  

 30 

 Section 13.12 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which, taken together, shall be construed as a single instrument. 
  
 Section 13.13 Captions. The captions used for the Articles and Sections in this Agreement are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope or the intent of this Agreement or any Article or Section hereof. 
  
 Section 13.14 Gender. Unless the context clearly indicates to the contrary, words singular or plural in number shall be deemed to include
the other and pronouns having a neuter, masculine or feminine gender shall be deemed to include the others. The term “person” shall be deemed to include an individual, corporation, partnership, trust, limited liability company,
unincorporated organization, government and governmental agency or subdivision, as the context shall require. 
  
 Section 13.15 Unenforceable Provisions. In the event any provision of this Agreement is declared or adjudged to be unenforceable or unlawful
by any Governmental Authority, then such unenforceable or unlawful provision shall be excised herefrom, and the remainder of this Agreement, together with all rights and remedies granted thereby, shall continue and remain in full force and effect.

  
 Section 13.16 Cumulative Remedies. All rights,
powers, remedies, benefits and privileges available under any provision of this Agreement to any party hereunder are in addition to and cumulative of any and all rights, powers, remedies, benefits and privileges available to such party under all
other provisions of this Agreement, at law or in equity. 
  
 Section 13.17 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the matters covered hereby. All prior negotiations, representations and agreements with respect thereto
not incorporated in this Agreement are hereby canceled. This Agreement can be modified or amended only by a written document duly executed by the parties hereto or their duly appointed representatives. 
  
 Section 13.18 Governing Law. This Agreement shall be governed
by and construed under the laws of the State of Texas and the United States of America. 
  
 Section 13.19 Exhibits. Exhibits referred to in this Agreement and attached hereto are incorporated herein in full by this reference as if each of such exhibits were set forth in the body of this
Agreement and duly executed by the parties hereto. 
  
 Section
13.20 Confidentiality. Owner agrees not to disclose the terms or conditions of this Agreement to any person other than a Permitted Person (as hereinafter defined), provided, however, that the restrictions of this Section 13.20
shall not apply to any information required to be disclosed by applicable law or to information that becomes public other than by virtue of a breach of this Section. For purposes of this Section, the term “Permitted Person” shall mean (i)
the partners, shareholders, directors, officers and employees of Owner, (ii) accountants, attorneys, consultants and other professionals engaged to render services in connection with the Project and (iii) lenders, potential lenders and potential
purchasers of the Project. Permitted Persons shall be informed of the confidential nature of the information disclosed to them and 
  

 31 

 shall be required to agree to act in accordance with the provisions of this Section 13.20 with respect to such
information. 
  
 Section 13.21 Limitation of
Liability. Subject to the other provisions of this Section 13.21, Manager agrees that it shall look solely to the assets of Owner (including, but not limited to, Owner’s interest in the Project) and not to the assets of any general
or limited partner in or of Owner or any employees, officers or agents of Owner or its Affiliates in the enforcement of any obligations of Owner under this Agreement; provided, however, that with respect to any person against whom or which Manager
would have recourse but for such liability-limiting provisions, Manager shall have recourse against such persons to the extent of the value of any sales proceeds that such persons actually receives in connection with any sale of the Project. The
general or limited partners, shareholders, members, employees, agents or Affiliates of Manager will not in any manner be personally or individually liable for the obligations of Manager hereunder or for any claims related to this Agreement.
Notwithstanding the foregoing, the provisions of this Section 13.21 are not intended to, and shall not, relieve any person from liability for any fraud, criminal act, theft or conversion it commits with respect to or in furtherance of this
Agreement. 
  
 Section 13.22 Memorandum. The parties
hereby agree that, upon the request of either party, each will execute, acknowledge and deliver a memorandum of this Agreement in recordable form and either party shall have the right to record or cause to be recorded such memorandum in the
appropriate real property records of the county in which the Project is located. Recording and like charges and any stamp, transfer or other tax incurred in connection with the filing of such memorandum shall be an expense of the Project.

  
 IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first set forth above. 
  

			
	 AP/APH PALM SPRINGS, L.P.
 a Delaware limited
partnership
 (“Owner”)

		
	By:	 	AP/APMC-GP, Inc.,
	 	 	a Delaware corporation,
	 	 	Its General Partner

  

					
		
	By:	 	/S/    ALFRED C. TRIVILINO
	 	 	

	 	 	Name:  Alfred C. Trivilino
	 	 	Title:  Authorized Signatory

  
  
  

			
	 WYNDHAM MANAGEMENT CORPORATION,
 a Delaware
corporation
 (“Manager”)

					
		
	By:	 	/S/    MARK CHLOUPEK
	 	 	

	 	 	Name:  Mark Chloupek
	 	 	Title:  Vice President

  

 32 

 EXHIBIT B 
  

INSURANCE 
  
 A. Pursuant to Section 8.1 of the Management Agreement (“Agreement”) made and entered into as of September 1, 2001 by and between AP/APH Palm
Springs, L.P. (the “Owner”) and Wyndham Management Corporation (the “Manager”), subject to reasonable availability, Manager shall procure and maintain insurance in respect of the Project (as that term is defined in the
Agreement), at Owner’s expense, as follows: 
  
 1. Property damage insurance in an amount not less than that stipulated by Owner covering all real and personal property, which insurance shall be written on an “all risks” and replacement cost form; 
  
 2. Boiler and machinery coverage insuring against damage to,
and against loss or damage caused by an accident or occurrence arising from or related to, boilers, heating apparatus, pressure vessels and pipes, air conditioning apparatus and electrical equipment, which insurance coverage shall be written on a
standard, broad form boiler and machinery policy (on a blanket or comprehensive basis) and shall include “repair and replacement” coverage; 
  
 3. Commercial general liability insurance in an amount not less than $1,000,000.00 per occurrence/$3,000,000.00 aggregate, insuring
against liability for bodily injury and property damage and, including without limitation, the following coverage: 
  

	 	a)	premises and operations liability; 

  

	 	b)	independent contractors liability; 

  

	 	c)	product/completed operations liability; 

  

	 	d)	broad form property damage liability; 

  

	 	e)	blanket contractual liability with respect to all contracts, written and oral; 

  

	 	f)	personal injury liability; 

  

	 	g)	liquor liability; 

  

	 	h)	incidental malpractice liability; and 

  

	 	i)	garagekeepers legal liability. 

  
 4. Comprehensive automobile liability insurance in an amount not less than $1,000,000.00 per occurrence covering liability for bodily
injury and property damage arising out of the ownership, maintenance or use of all private passenger and commercial vehicles and other equipment required to be licensed for road use; 
  

 B-1 

 5. Innkeeper’s legal liability insurance covering the property of premises guests in
an amount not less than $10,000.00 per guest and $250,000.00 per occurrence; 
  
 6. Safe depository insurance in an amount not less than $250,000.00 per occurrence; 
  
 7. Business interruption insurance written on an “all risks” form either as endorsements to the policies satisfying (1) and (2)
above or on a separate policy, such insurance to include specific coverage for Manager’s Management Fee calculated based on the Gross Revenues used as the basis for calculation of the business interruption insurance award; and 
  
 8. Broad form umbrella/excess liability insurance, which
shall cover defense costs on a “first dollar” basis and shall provide coverage not less than “following form” in respect of all underlying coverages, in an amount not less than $140,000,000.00 covering against excess liability
over coverages provided by all primary general liability, automobile liability and employers’ liability insurance policies. 
  
 B. In addition, Owner and Manager agree that, subject to reasonable availability, Manager shall maintain the following insurance with respect to Project
employees, agents and servants, at Owner’s expense: 
  
 1. Workers’ compensation. insurance complying with the statutory workers’ compensation law for the state in which the Project is located; 
  
 2. Employer’s liability insurance in an amount not less than $500,000.00 covering against liability in
respect of employees, agents and servants not covered by workers’ compensation insurance and against occupational disease benefits; 
  
 3. Employee fidelity insurance in an amount not less than $1,000,000.00; and 
  
 4. Employment practices coverage in an amount not less than
$1,000,000 per claim/aggregate. 
  
 Manager shall also maintain such other
insurance as Manager shall deem necessary for operation of the Project, with the prior approval of Owner. 
  
 C. All insurance procured and maintained pursuant to the Agreement shall have such deductibles, limits and coverages, and shall otherwise be in such form,
as Manager shall from time to time specify. However, Owner assumes all responsibility and risks with respect to the adequacy of insurance in respect of the Hotel and any and all claims expenses and other required payments in respect of such
insurance. Manager may obtain certain insurance hereunder from an Affiliate. 
  
 D. All insurance policies procured and maintained pursuant to the Agreement shall have attached thereto an endorsement that such policy shall not be cancelled or materially changed without at least thirty (30) days
prior written notice to Owner and Manager (ten (10) 
  

 B-2 

 days prior written notice in the case of any such cancellation or material change arising from failure to pay any
insurance premium). 
  
 E. All property damage insurance procured
and maintained pursuant to the Agreement, including, without limitation, insurance procured and maintained pursuant to A(1), A(2) and A(7) above, shall name Owner and Manager as insureds and shall provide for the payment of losses thereunder to
Owner and Manager as their respective interests shall appear thereon. All liability insurance procured and maintained pursuant to the Agreement, including without limitation, the policies procured and maintained pursuant to A(3), (4), (5), (6) and
(8), shall name Owner, Manager, their Affiliates and their and their Affiliates’ respective shareholders, partners, directors, officers, agents and employees as insureds. All policies of Workers Compensation, Employers Liability and Employment
Practices insurance pursuant to B (1), (2) and (4) shall include a waiver of subrogation in favor of Owner. Without limiting the foregoing, all policies of liability insurance procured by either party hereunder shall include a waiver of subrogation
in favor of the other party. 
  
 F. Any insurance procured and
maintained pursuant to the Agreement by either party may be effected under policies of blanket insurance which may cover other properties managed or owned by such party. 
  

 B-3 

 EXHIBIT C 
  

EXPENSE CATEGORIES 
  
 Departmental Expenses 
 Rooms 
 Food and Beverage 
 Telephone 
 Rentals and Other 
  
 Unallocated Expenses 
 Administrative and General 

Marketing 
 Energy 
 Property Operations and Maintenance 
  

 C-1 

 EXHIBIT D 
  

CALCULATION OF INCOME BEFORE FIXED CHARGES 
 AND NET OPERATING INCOME 
  
 REVENUES

 Rooms 
 Food & Beverage

 Telecommunications 
 Other
Operated Departments 
 Miscellaneous Revenue 

	+	TOTAL REVENUES 

  
 DEPARTMENTAL EXPENSES  
 Rooms

 Food & Beverage 
 Telecommunications 
 Other Operated Departments 

	(-)	TOTAL DEPARTMENTAL EXPENSES 

  
 TOTAL DEPARTMENTAL PROFIT (Total Revenues less Total Departmental Expenses) (Also called Gross Operating Income) 
  
 UNDISTRIBUTED OPERATING EXPENSES 
 Administrative & General 
 Franchise Fees

 Human Resources 
 Sales and
Marketing 
 Utility Costs/Energy 
 Repairs and Maintenance 

	(-)	TOTAL UNDISTRIBUTED OPERATING EXPENSES 

  

	=	GROSS OPERATING PROFIT (Total Department Profit less Total Overhead Expenses) (Also called Income Before Fixed Charges) 

  
 FIXED CHARGES 
 Base Fee 
 Rents and Leases (including ground
rent) 
 Real Estate and Property Taxes 
 Property Insurance 
 FF&E Reserve Contribution 

	(-)	TOTAL FIXED CHARGES 

  

	=	NET OPERATING INCOME 

	(-)	Incentive Fee 

  

 D-1 

 WYNDHAM PALM SPRINGS 
  
 ASSIGNMENT, ASSUMPTION AND AMENDMENT 
  
 OF MANAGEMENT AGREEMENT 
  
 THIS ASSIGNMENT, ASSUMPTION AND AMENDMENT OF MANAGEMENT AGREEMENT (this “Assignment and Amendment”) is made and entered into as of
                    , 2004 by and among AP/APH PALM SPRINGS, L.P., a Delaware limited partnership, whose address is c/o Apollo Real Estate
Advisors III, L.P., 1301 Avenue of the Americas, 38th Floor, New York, New York 10019 (the “Assignor”),
CAPITAL LODGING TRS OPERATIONS II, INC., a Delaware corporation, whose address is 2527 Maple Avenue, Suite 503, Dallas, Texas 75201 (the “Assignee”), and WYNDHAM MANAGEMENT CORPORATION, a Delaware corporation, whose address is 1950
Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (the “Manager”). 
  
 RECITALS: 
  
 Assignor and
Manager entered into that certain Management Agreement dated as of September 1, 2001, pursuant to which Assignor engaged Manager to manage and operate the Hotel situated on the Site (the “Management Agreement”). 
  
 Assignor will transfer, convey and assign to Capital Lodging Palm Springs,
LLC, a Delaware limited liability company (“New Hotel Owner”), all of Assignor’s interest in and to the Project as provided in that certain Contribution Agreement and Joint Escrow Instructions dated effective
                    , 2004, between Assignor, as a Contributor, the other Contributors named therein, Capital Lodging, a Maryland real estate
investment trust, and Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (the “Contribution Agreement”), and Capital Lodging Operating Partnership, L.P. will assign all of its interest in and to the Contribution
Agreement with respect to the Project to New Hotel Owner concurrently with the transfer of the Project pursuant to the Contribution Agreement. Assignee will enter into a lease agreement with New Hotel Owner with respect to the Project. 

 
 In connection therewith, Assignor, Assignee and Manager desire that
Assignor assign to Assignee, and Assignee accept and assume, all of Assignor’s right, title and interest in, to and under, and all of Assignor’s benefits, obligations and liabilities under, the Management Agreement, subject to and in
accordance with the terms of this Assignment and Amendment. Manager is willing to consent to such assignment and assumption, and Assignee and Manager desire to amend the Management Agreement as set forth herein, effective upon the consummation of
such assignment and assumption, as described in Paragraph 4 below. For and in consideration of the premises and of the mutual covenants and agreements set forth herein, Assignor, Assignee and Manager agree as follows: 
  
 1. Assignment and Assumption; Consent of Manager. Assignor hereby
transfers, conveys and assigns to Assignee all of Assignor’s right, title and interest in, to and under, and all of Assignor’s benefits, obligations and liabilities under, the Management Agreement, from and after the effective date hereof,
and Assignee hereby accepts such assignment and benefits and assumes such obligations and liabilities and agrees to timely perform the obligations of the “Owner” under the Management Agreement. Manager hereby consents to such assignment
and assumption with respect to the Management Agreement. 

 2. Ownership of the Project. Assignee hereby represents and warrants to Manager that, as of the
effective date hereof (as described in Paragraph 4 below), Assignee has entered into a lease with New Hotel Owner for the Project and that the execution, delivery and performance of this Assignment and Amendment by Assignee have been duly authorized
by all necessary corporate action and the Management Agreement and this Assignment and Amendment are the legal, valid and binding obligations of Assignee, enforceable in accordance with the terms thereof and hereof; and that neither the execution of
this Assignment and Amendment nor the performance of the obligations contemplated hereby shall violate any Legal Requirement, result in or constitute a breach or default under any indenture, contract or other commitment or restriction to which it is
a party or by which it is bound, or require any consent, vote or approval which has not been obtained, or at the appropriate time shall not have been given or obtained. 
  
 3. Amendment of Management Agreement. Assignee and Manager agree that Article XIII of the Management Agreement
is hereby amended as follows, with such amendments to be effective from and after the date hereof: 
  
 (a) Amendment of Section 13.10. Section 13.10 of the Management Agreement is amended by replacing the provisions thereof setting forth the address
for notices to Owner (and the provisions for the delivery of copies of notices to Owner) with the following: 
  
 To Owner: 
  
 Capital Lodging TRS Operations II, Inc. 
 2527 Maple Avenue, Suite 503 
 Dallas, Texas 75201 
 Attn: Edward J. Rohling 
 Facsimile: (214) 721-1095 
  
 With a copy to: 
  
 Morgan, Lewis & Bockius LLP 
 300 South Grand Avenue, 22nd Floor 
 Los Angeles, California
90071 
 Attn: Anthony Ciasulli, Esq. 
 Facsimile: (213) 612-2501 
  

 2 

 (b) Addition of Section 13.23. Article XIII of the Management Agreement is amended to add thereto
a new Section 13.23, which shall read in its entirety as follows: 
  
 13.23 Eligible Independent Contractor. During the Term of this Agreement, Manager shall at all times qualify as an “eligible independent contractor” (an “Eligible Independent Contractor”)
within the meaning of Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the “Code”). To that end, Manager covenants that, during the Term of this Agreement: 
  
 (a) Manager shall not conduct or permit wagering activities, as described in Section 856(d)(9)(D)(i) of the
Code, at the Hotel; 
  
 (b) Manager shall not own
(within the meaning of Section 856(d)(5) of the Code) more than twenty-five percent (25%) of the outstanding stock of Capital Lodging, a Maryland real estate investment trust (“Capital Lodging”), provided, however, that
Manager shall not be in violation of this Section 13.23(b) if such ownership restriction is breached solely as a result of the ownership of Capital Lodging stock by AP/APH Ventures, LLC or any of its Affiliates; 
  
 (c) No more than thirty-five percent (35%) of either (i) the
total combined voting power in Manager (determined by reference to interests in the capital stock of Manager) or (ii) the total shares of all classes of capital stock of Manager shall be owned (within the meaning of Section 856(d)(5) of the Code) by
one or more persons owning (within the meaning of Section 856(d)(5) of the Code) in the aggregate thirty-five percent (35%) or more of the outstanding stock of Capital Lodging; 
  
 (d) Manager (or a person who is a “related person,” within the meaning of Section 856(d)(9)(F) of
the Code (a “Related Person”), with respect to Manager) shall be actively engaged in the trade or business of operating “Qualified Lodging Facilities,” as defined below, for one or more persons who are not Related Persons with
respect to Capital Lodging or Owner (“Unrelated Persons”). For purposes of determining whether the requirements of this Section 13.23(d) have been met, Manager shall be treated as being actively engaged in such a trade or business if
Manager (i) derives at least ten percent (10%) of both its profits and revenues from operating Qualified Lodging Facilities for Unrelated Persons, or (ii) complies with any regulations or other administrative guidance under Section 856(d)(9) of the
Code with respect to the amount of hotel management business with Unrelated Persons that is necessary for Manager to qualify as an Eligible Independent Contractor. 
  
 (e) For purposes of this Section 13.23, a “Qualified Lodging Facility” means a Lodging
Facility, as defined below, unless wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is fully authorized to engage in such activities at or in connection
with such facility. A “Lodging Facility” is a hotel, motel, or other establishment more than one-half of the dwelling units in which are used on transient basis, and includes customary amenities and facilities 
  

 3 

 operated as part of, or associated with, the lodging facility so long as such amenities and facilities
are customary for other properties of a comparable size and class owned by other owners who are Unrelated Persons. 
  
 In the event of any breach of Section 13.23(c) above, Owner’s sole remedy shall be to terminate this Agreement in accordance
with the provisions of Section 12.4 hereof (which shall include the payment to Manager of the applicable Termination Fee). 
  
 4. Effective Date. This Assignment and Amendment shall become effective upon the Closing Date, as defined in the Contribution Agreement. If the
Closing Date does not occur as provided in the Contribution Agreement, then this Assignment and Amendment shall be null and void and of no further force and effect, and Assignor shall (a) continue to be responsible for all obligations under the
Management Agreement, (b) the request for Manager’s approval of the assignment contemplated by this Assignment and Amendment shall be deemed withdrawn, unapproved and without any force or effect, and (c) Assignor shall continue to manage the
Hotel in accordance with the terms of the Management Agreement. 
  
 5. Miscellaneous. 
  
 (a) Capitalized terms used
in this Assignment and Amendment that are not defined herein shall have the respective meanings provided therefor in the Management Agreement. 
  
 (b) The captions used for the Sections in this Assignment and Amendment are inserted only as a matter of convenience and for reference and in no way
define, limit or describe the scope or the intent of this Assignment and Amendment or any Section hereof. 
  
 (c) This Assignment and Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together,
shall be construed as a single instrument. 
  
 (d) In the event
any provision of this Assignment and Amendment is declared or adjudged to be unenforceable or unlawful by any Governmental Authority, then such unenforceable or unlawful provision shall be excised herefrom, and the remainder of this Assignment and
Amendment, together with all rights and remedies granted thereby, shall continue and remain in full force and effect. 
  
 (e) The Management Agreement, as amended by this Assignment and Amendment, constitutes the entire agreement between the parties hereto with respect to the
matters covered hereby and thereby. All prior negotiations, representations and agreements with respect thereto not incorporated in this Assignment and Amendment or the Management Agreement are hereby canceled. As modified hereby, the Management
Agreement shall continue in full force and effect and be binding upon the parties hereto and their respective successors and permitted assigns. References to the Management Agreement after the date hereof shall mean the Management Agreement as
amended pursuant to this Assignment and Amendment. 
  

 4 

 (f) This Assignment and Amendment shall be governed by and construed under the law governing the
Management Agreement. 
  
 [The remainder of this page is
intentionally left blank.] 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Amendment as of the date first
set forth above. 
  

					
	 AP/APH PALM SPRINGS, L.P.

	 a Delaware limited partnership

	 (“Assignor”)

		
	 By:
	 	 AP/APMC-GP, Inc.,

	 	 	 a Delaware corporation, its

	 	 	 General Partner

		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
  
	 	

	
	 CAPITAL LODGING TRS OPERATIONS II, INC.

	 a Delaware corporation

	 (“Assignee”)

		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	
	 WYNDHAM MANAGEMENT CORPORATION,

	 a Delaware corporation

	 (“Manager”)

		
	 By:
	 	  

	 	 	 Name:
  
	 	

	 	 	 Title:
  
	 	

  

 6Management Agreement, as amended, dated May 31, 2002

 Holiday Inn – Cheyenne, Wyoming 
  
 Exhibit 10.9 
  
 MANAGEMENT AGREEMENT 
  
 BETWEEN 
  
 SIX CONTINENTS RESOURCES, INC. 
  
 AND 
  
 HOTEL VENTURE LIMITED PARTNERSHIP 
  
 MAY 31, 2002 

 INDEX 
 HOLIDAY INN 
 MANAGEMENT AGREEMENT 
  

					
	 	  	 	  	PAGE

	RECITALS	  	 	  	1
			
	ARTICLE 1	  	SCOPE OF AGREEMENT	  	2
			
	1.01	  	Engagement of Manager	  	2
	1.02	  	Funding	  	2
			
	ARTICLE 2	  	TERM AND RENEWALS	  	2
			
	2.01	  	Effective Date	  	2
	2.02	  	Initial Term	  	2
	2.03	  	Renewal Term	  	3
	2.04	  	Performance Termination	  	3
	2.05	  	Manager’s Termination Right	  	4
			
	ARTICLE 3	  	TITLE TO HOTEL	  	4
			
	3.01	  	Ownership	  	4
	3.02	  	Covenants of Title	  	5
	3.03	  	Estoppels	  	6
	3.04	  	Subordination	  	6
			
	ARTICLE 4	  	FINANCIAL ENHANCEMENT	  	6
			
	4.01	  	Financial Enhancement	  	6
			
	ARTICLE 5	  	STANDARDS AND MANAGER’S CONTROL	  	7
			
	5.01	  	Standards	  	7
	5.02	  	Manager’s Control	  	7
			
	ARTICLE 6	  	OPERATION OF THE HOTEL	  	8
			
	6.01	  	Permits	  	8
	6.02	  	Equipment and Supplies	  	8
	6.03	  	Personnel	  	8
	6.04	  	Sales, Marketing and Advertising	  	11
	6.05	  	Intentionally Omitted	  	11
	6.06	  	Maintenance and Repairs	  	11

					
	6.07	  	Capital Expenditures	  	12
			
	ARTICLE 7	  	FISCAL MATTERS	  	15
			
	7.01	  	Accounting Matters and Fiscal Periods	  	15
	7.02	  	Yearly Budgets	  	16
	7.03	  	Bank Accounts	  	19
			
	ARTICLE 8	  	FEES TO MANAGER	  	21
			
	8.01	  	Management Fees	  	21
	8.02	  	Accounting Fee	  	22
	8.03	  	Termination Fee	  	23
			
	ARTICLE 9	  	DISBURSEMENTS	  	23
			
	9.01	  	Priority of Disbursements	  	23
	9.02	  	Adjustment to Bank Account	  	25
			
	ARTICLE 10	  	CERTAIN OTHER SERVICES	  	25
			
	10.01	  	Optional Services	  	25
	10.02	  	Purchasing	  	26
			
	ARTICLE 11	  	SIGNS AND SERVICE MARKS	  	27
			
	11.01	  	Intentionally Omitted	  	27
	11.02	  	System Marks	  	27
	11.03	  	System Mark Litigation	  	28
			
	ARTICLE 12	  	INSURANCE	  	28
			
	12.01	  	Insurance Coverage	  	28
	12.02	  	Insurance Policies	  	29
			
	ARTICLE 13	  	INDEMNITY AND RELATED MATTERS	  	30
			
	13.01	  	Scope	  	30
	13.02	  	Defense	  	31
	13.03	  	Waiver of Subrogation	  	31
			
	ARTICLE 14	  	DAMAGE TO AND DESTRUCTION OF THE HOTEL	  	32
			
	14.01	  	Obligation to Restore	  	32
	14.02	  	Termination Option	  	32

					
	ARTICLE 15	  	CONDEMNATION	  	33
			
	15.01	  	Termination	  	33
	15.02	  	Restoration and Continuation	  	33
			
	ARTICLE 16	  	DEFAULT AND TERMINATION	  	34
			
	16.01	  	Events of Default	  	34
	16.02	  	Default Termination	  	36
	16.03	  	Post Termination Obligations	  	37
			
	ARTICLE 17	  	NOTICES	  	40
			
	17.01	  	Procedure	  	40
			
	ARTICLE 18	  	RELATIONSHIP, AUTHORITY AND FURTHER ACTIONS	  	41
			
	18.01	  	Relationship	  	41
	18.02	  	Contractual Authority	  	41
	18.03	  	Further Actions	  	41
			
	ARTICLE 19	  	APPLICABLE LAW	  	42
			
	19.01	  	Scope	  	42
			
	ARTICLE 20	  	SUCCESSORS AND ASSIGNS	  	42
			
	20.01	  	Assignment by Manager	  	42
	20.02	  	Assignment pursuant to an Authorized Mortgage	  	42
	20.03	  	Assignment by Owner	  	43
	20.04	  	Binding Effect	  	44
			
	ARTICLE 21	  	RECORDING	  	44
			
	21.01	  	Memorandum to Agreement	  	44
			
	ARTICLE 22	  	FORCE MAJEURE	  	45
			
	22.01	  	Operation of Hotel	  	45
	22.02	  	Extension of Time	  	45
			
	ARTICLE 23	  	GENERAL PROVISIONS	  	45
			
	23.01	  	Authorization	  	45
	23.02	  	Interest	  	46
	23.03	  	Formalities	  	46

					
	23.04	  	Documents	  	46
	23.05	  	Consent	  	46
	23.06	  	Time	  	46
	23.07	  	Attorneys’ Fees	  	46
	23.08	  	Other Hotels	  	46
			
	ARTICLE 24	  	SALE OF HOTEL	  	47
			
	24.01	  	Sale of Hotel to Third Party; Management Agreement	  	47
			
	ARTICLE 25	  	DEFINITIONS	  	47
			
	25.01	  	Definitions	  	47

  

	
	 EXHIBITS

	
	 Exhibit “A” - Site Legal Description

	 Exhibit “B” - Form of Operating Statement

	 Exhibit “C” - Minimum Insurance Provisions

	 Exhibit “C-1” - Manager’s Insurance Requirements

	 Exhibit “D” – Hotel Portfolio

	 Exhibit “E” – Amortization of Enhancement

 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of the 31st day of May, 2002, by and between HOTEL VENTURE LIMITED PARTNERSHIP, a Delaware limited partnership, with offices at 3100 McKinnon, Suite 1080,
Dallas, Texas 75201 (hereinafter referred to as “Owner”), and SIX CONTINENTS RESOURCES, INC., a Delaware corporation, with offices at Three Ravinia Drive, Suite 2900, Atlanta, Georgia 30346 (hereinafter referred to as “Manager”);

  
 RECITALS: 
  
 A. Owner wishes to have Manager manage the Hotel described on Exhibit
“A”, attached hereto, as a Holiday Inn hotel; 
  
 B.
Manager desires to manage and operate the Hotel as a Holiday Inn hotel and as a member of the Brand; and 
  
 C. Owner and Holiday Inns Franchising, Inc., an affiliate of Manager, have entered into that certain Holiday Inn Change of Ownership License Agreement
dated February 6, 1998, as amended by Milestone Addendum to License Agreement dated January 1, 1999, with respect to the Hotel (as amended, the “License Agreement”). 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, Owner and Manager agree as follows:

  

 1 

 ARTICLE 1 
  

SCOPE OF AGREEMENT 
  
 1.01 Engagement of Manager. Owner hereby grants to Manager the sole and exclusive right to supervise and direct the management and operation of the
Hotel for the account of Owner. Manager hereby accepts said grant and agrees that it will control, supervise and direct the management and operation of the Hotel, all subject to the terms and conditions of this Agreement, and that it will exercise
commercially reasonable efforts in doing so with the objective of maximizing the profitability of Hotel operations and the value of the Hotel as an asset. Subject to such terms and conditions of this Agreement, the Yearly Budget and the Brand
Standards, Manager shall have the right to determine operating policy, standards of operation, quality of service and any other matters affecting customer relations or management and operation of the Hotel. Owner and Manager will each cooperate with
and assist the other in every reasonable and proper way to permit Manager to carry out its duties hereunder with respect to the Hotel. 
  
 1.02 Funding. Owner shall provide all funds, both initially and throughout the Initial Term and any Renewal Term(s), as shall be necessary to
perform and satisfy Owner’s covenants and responsibilities under this Agreement, and to enable Manager to operate the Hotel as contemplated by this Agreement. Manager’s performance of all activities hereunder will be on behalf of, and for
the account of, Owner. 
  
 ARTICLE 2 
  
 TERM AND RENEWALS 
  
 2.01 Effective Date. This Agreement is effective upon execution by
all parties. Manager’s management of the Hotel will commence on and as of the Effective Date. 
  
 2.02 Initial Term. The Initial Term of this Agreement will be ten (10) years from the 
  

 2 

 Effective Date, and will expire on the Expiration Date, as such date may be accelerated if this Agreement is sooner
terminated as hereinafter provided in Section 2.04, 2.05 or in Articles 14, 15 or 16 or as such date may be extended as provided in Section 2.03. 
  
 2.03 Renewal Term. This Agreement may be extended for up to two (2) consecutive five (5) year Renewal Terms beyond the Initial Term upon the mutual
agreement of Manager and Owner. In the event that either Owner or Manager wishes to enter into a Renewal Term, then on or before the date which is ninety (90) days prior to the Expiration Date of the Initial Term (or the Expiration Date as extended
by then effective Renewal Term, as the case may be) such party shall provide the other party with written notice of its election to further extend the term of this Agreement. If the non-renewing party wishes to enter into a Renewal Term, then shall
confirm such renewal within thirty (30) days after receiving the extension notice. Failure of the non-renewing party to timely provide such written notice shall be deemed such party’s election not to enter into a Renewal Term. The terms and
provisions of this Agreement will remain in effect as stated herein during any Renewal Term. 
  
 2.04 Performance Termination. 
  
 (a) Beginning with the Fiscal Year starting January 1, 2003, and so long as Owner is not in default of its obligations under this Agreement, including without limitation, funding of all necessary Capital Replacements under Article 6 of this
Agreement, Owner may terminate this Agreement without payment of the Termination Fee described in Section 8.03 upon ninety (90) days prior written notice to Manager (such notice to be sent to Manager within thirty (30) days of Owner’s receipt
of the final operating statement for such Fiscal Year) if, following the end of any Fiscal Year, the Hotel’s actual Gross Operating Profit for such Fiscal Year is less than ninety percent (90%) of budgeted Gross Operating Profit as determined
pursuant to the Yearly Budget for such Fiscal Year (the “Performance Test”). 
  

 3 

 (b) Notwithstanding subsection (a) above, Owner shall not be entitled to exercise such termination right
if, within sixty (60) days following Manager’s receipt of Owner’s written notice of termination, Manager cures such failure by paying into the Bank Account the shortfall between the Hotel’s actual Gross Operating Profit and budgeted
Gross Operating Profit (as determined pursuant to the Yearly Budget) for such Fiscal Year. Thereafter, such Fiscal Year shall not count toward any future Performance Test measure. However, in no event shall Manager have the right to cure a failure
of the Performance Test for more than one (1) period of two (2) consecutive Fiscal Years. 
  
 (c) Notwithstanding subsection (a) above, Owner and Manager agree that the Performance Test shall be waived in any Fiscal Year that (i) force majeure resulted in a failure of the Performance Test, or (ii) a major
renovation to the Hotel costing at least $2,000,000.00 resulted in a failure of the Performance Test. 
  
 2.05 Manager’s Termination Right. The License Agreement for the Hotel expires on February 6, 2008. In the event that Owner does not obtain a
renewal of the License Agreement or an extension of the term of the License Agreement through the Expiration Date, Manager shall have the right to terminate this Agreement effective upon the expiration of the License Agreement. Upon such
termination, Owner shall pay to Manager the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement. 
  
 ARTICLE 3 
  
 TITLE TO HOTEL 
  
 3.01 Ownership. Owner represents that it has, and throughout the Initial Term and any Renewal Term(s) will, maintain full ownership of the Site,
the Building, including all FF&E, the 
  

 4 

 Operating Equipment and Operating Supplies, subject only to any Authorized Mortgage(s) and to any permitted transfers as
described in Article 20 and, if applicable, to the terms of a ground lease in form and substance approved by manager prior to the Effective Date. Owner shall not consent to amendment of or waive any term or condition of such a ground lease which
would adversely affect the rights of Manager or its ability to manage the Hotel under this Agreement. 
  
 3.02 Covenants of Title. During the Initial Term and any Renewal Term(s), provided Manager is not in default under the terms of this Agreement
beyond the expiration of any applicable cure period, Manager shall have the right peaceably and quietly to operate the Hotel in accordance with the terms of this Agreement, free from interference, disturbance and eviction by Owner or by any other
person from whom Owner derives its title to or right to occupy and use the Hotel or by any other person or persons claiming by, through or under Owner, subject only to termination of this Agreement due to an Event of Default by Manager. Owner, at
Owner’s own expense shall prosecute all appropriate actions, judicial or otherwise, required to assure such quiet and peaceable operation by Manager and shall pay and discharge any ground rents, other lease or rental payments, or any other
charges payable by Owner relative to the Hotel or any component thereof, including all amounts due under a ground lease for the Site or an Authorized Mortgage. Owner shall pay, prior to delinquency, all taxes and assessments which may become a lien
on or are assessed against the Hotel or any component thereof and which may be due and payable during the Initial Term and any Renewal Term(s) of this Agreement, unless payment thereof is in good faith being contested by Owner, enforcement is stayed
and the amount so contested is escrowed or guaranteed in a form satisfactory to Manager. Upon Manager’s request, Owner agrees to furnish to Manager copies of all documents by and through which Owner has the right of possession to the Hotel and
the right and ability to enter into this Agreement. 
  

 5 

 3.03 Estoppels. Upon request, Owner will use all commercially reasonable efforts to obtain and
provide to Manager estoppel certificates from the holder of an Authorized Mortgage, if any, and from the lessor under any approved ground lease, stating that there is no default under such agreements or the related obligations and confirming the
name, address and amounts due or coming due to such holder or lessor and the completeness and accuracy of copies of the relevant documents provided to Manager. 
  

3.04 Subordination. Provided that Owner assists Manager in obtaining a commercially reasonable subordination, non-disturbance and attornment
agreement which provides for the priority payment of the Base Management Fee and the fees under the License Agreement from the holder of each Authorized Mortgage, this Agreement shall be subordinate to any Authorized Mortgage. 
  
 ARTICLE 4 
  
 FINANCIAL ENHANCEMENT 
  
 4.01 Financial Enhancement. On or before May 31, 2002, Manager
shall pay to Owner in cash a financial enhancement in the total amount of $3,000,000.00 in immediately available funds with respect to the Hotel and the other hotels owned by Owner and managed by Manager, all as listed on Exhibit
“D”, which shall be non-refundable except as otherwise provided in this Agreement. A portion of the total enhancement in the amount of $500,000.00 (the “Enhancement”) shall be allocated to the Hotel and shall be amortized
(without interest thereon) in accordance with the amortization schedule attached hereto as Exhibit “E” and incorporated herein by reference. Upon any termination of this Agreement prior to the full amortization of the Enhancement,
Owner shall immediately repay to Manager the unamortized portion of the Enhancement at the time of such termination. The foregoing repayment obligation shall be secured by a guaranty given by Circa Capital Corporation, the general partner of Owner,
for the benefit of Manager and in form and content reasonably satisfactory to Manager. 
  

 6 

 ARTICLE 5 
  

BRAND STANDARDS AND MANAGER’S CONTROL 
  
 5.01 Brand Standards. Manager shall operate the Hotel as a Holiday Inn hotel for the account of and at the expense of Owner in accordance with the
terms of this Agreement, the License Agreement and the Brand Standards. Owner acknowledges that Manager’s expectation of operating a hotel which is at all times physically in compliance with the Brand Standards, including, without limitation,
standards relating to life safety and quality of the hotel, is essential to inducing Manager and its affiliates to undertake this Agreement because such standards are critical to maintaining the integrity of the Brand. Accordingly, the Brand
Standards shall be observed by Owner and the Hotel at all times. Affiliates of Manager which own the System Marks and Brand Standards reserve the right to revise and amend the System Marks or Brand Standards from time to time on a non-discriminatory
basis in accordance with the terms of the License Agreement. Owner also agrees that the Hotel will be required to participate in Brand-wide or area quality programs that are implemented from time to time by Affiliates of Manager in accordance with
the License Agreement. The allocable cost of participation in such programs shall be Operating Costs of the Hotel. 
  
 5.02 Manager’s Control. Manager shall have uninterrupted control over the operation of the Hotel. Owner acknowledges that under this
Agreement, except as may otherwise be expressly provided herein, Owner delegates all authorities and responsibilities for operation of the Hotel to Manager. Manager, in the exercise of reasonable discretion and business judgment and in accordance
with the Yearly Budget, shall be solely responsible for determining room rates, food 
  

 7 

 and beverage menu prices and charges to guests for other Hotel services. Manager shall also have sole responsibility, in
the exercise of reasonable discretion and business judgment and in accordance with the Yearly Budget, to determine the terms of guest occupancy and admittance to the Hotel, use of rooms for commercial purposes, policies relating to entertainment,
labor policies, publicity and promotion activities and technology services and equipment to be used in the Hotel. Manager shall review with Owner from time to time and during the annual review of the Yearly Budget material changes in policies,
practices and procedures and their effect on the financial performance of the Hotel. 
  
 ARTICLE 6 
  
 OPERATION
OF THE HOTEL 
  
 6.01 Permits. Manager, as an
Operating Cost of the Hotel, shall obtain in the name of Owner (unless otherwise required by applicable law to be held in the name of Manager) and maintain in full force and effect all necessary operating licenses and permits, including liquor, bar,
restaurant, sign and hotel licenses, as may be required for the operation of the Hotel. Manager will make all reasonable efforts within its control to comply with conditions or requirements set out in or imposed by law in connection with any such
licenses and permits and at all times to manage the Hotel in accordance with such conditions and any other legal requirements. 
  
 6.02 Equipment and Supplies. After the Effective Date, Manager shall procure, at Owner’s expense and pursuant to the Yearly Budgets, all such
Operating Supplies and Operating Equipment as Manager deems necessary for the normal and ordinary course of operation of the Hotel in accordance with the Brand Standards. 
  
 6.03 Personnel. 
  
 (a) The General Manager and all other personnel engaged in the operation of the Hotel 
  

 8 

 will be the employees of Manager; provided, however, Manager shall not assume, and Owner hereby expressly agrees to
indemnify Manager for any and all cost, loss, expenses, claims, and liability associated with or in any manner related to the employment of such personnel at any time prior to the Effective Date. Manager will hire, supervise, direct, discharge and
determine the compensation, other benefits and terms of employment of all personnel working in the Hotel; provided, however, that Owner shall have the right to participate in the hiring process for the Hotel’s General Manager, Controller and
Director of Sales and that Owner shall have the right disapprove Manager’s first selection for the Hotel’s General Manager. Manager will be the sole judge of the fitness and qualifications of such personnel and is vested with absolute
discretion in the hiring, supervising, directing, discharging and determining the compensation, other benefits and terms of employment of such personnel. In such discretion and in accordance with the Yearly Budget, Manager may elect to staff certain
functions at offsite or regional locations, or to provide employee benefits on a Brand-wide or other multi-location basis and may allocate the employee costs among the hotels participating in such staffing or benefits. Owner shall not interfere with
the performance of employment duties of, or give orders or instructions to, any personnel employed at the Hotel. However, Owner shall be solely responsible for, as an Operating Cost, and will reimburse and hold harmless Manager from and against all
expenses, costs, charges or claims which are or would be related to or incidental to any personnel (whether incurred or paid before, during or after the Initial or any Renewal Term of this Agreement), including the General Manager, employed in the
operation of the Hotel (including, without limitation, salaries, wages, other compensation, benefit contributions and premiums, net of amounts paid by Hotel employees; stop-loss insurance premiums; group health plan benefit payments in excess of
contribution and premium amounts paid by Owner and Hotel employees; pay for vacation, holidays, sick leave and 
  

 9 

 other leaves of absence; workers’ compensation premiums; workers compensation benefit payments paid by Manager in
excess of premium amounts paid by Owner; administrative fees and taxes; and severance benefits applicable under Manager’s then current Human Resources policies) all as generally set forth in the Yearly Budget except for items of an unforeseen
or unpredictable nature. 
  
 (b) Owner shall reimburse Manager for
all reasonable travel expenses incurred by Manager’s employees in connection with (i) constructing improvements of additions, renovating, furnishing and supplying the Hotel; (ii) hiring and training Hotel employees; (iii) maintaining the
physical condition and appearance of the Hotel; (iv) maintaining and promoting proper operational procedures and practices at the Hotel; (v) maintaining books and records of the Hotel; and (vi) otherwise performing duties undertaken by or rights
granted to Manager in this Agreement. Manager will have sole discretion, which shall not be unreasonably exercised, within the Yearly Budget to determine the appropriateness of such travel. All such travel must be consistent with Manager’s
policies governing travel by its employees. 
  
 (c) The costs,
fees, compensation or other expenses of any independent contractors engaged by Owner or Manager (with the consent of Owner, which consent shall not be unreasonably withheld) to perform duties of a special nature, directly related to the ownership of
the Hotel, such as attorneys and independent accountants, are an Ownership Cost and will be a direct expense of Owner which shall not be the direct responsibility of Manager nor an Operating Cost, nor an expense disbursed by Manager from Gross
Revenues or the Bank Account, unless the engagement of such independent contractor is caused by Manager’s non-performance in accordance with the terms of this Agreement. 
  

 10 

 6.04 Sales, Marketing and Advertising. Manager, in accordance with the Yearly Budget and on behalf
of Owner and at Owner’s expense, shall or shall cause its affiliates to: 
  
 (a) advertise and promote the business of the Hotel; 
  
 (b) institute and supervise a sales and marketing program for the Hotel; 
  
 (c) include the Hotel in Manager’s local, regional and worldwide promotional and advertising programs directed at the leisure, business and meetings
markets, as Manager may deem advisable; 
  
 (d) represent the
Hotel through Manager’s worldwide sales offices; 
  
 (e)
include the Hotel in the Six Continents Hotels loyalty program, presently called “Priority Club”, including, without limitation, inclusion of the Hotel in promotional materials distributed to participants of such program; 
  
 (f) coordinate the Hotel’s participation in travel programs marketed by
airlines, travel agents and government tourist departments when Manager determines such participation to be advisable; and 
  
 (g) cause the Hotel to participate in sales and promotional campaigns and activities involving complimentary rooms, food and beverages to bona fide travel
agents, tourist officials and airline representatives where Manager has determined that such participation is in furtherance of the Hotel’s business and is customary in the travel industry or in the practices and policies of Manager.

  
 (h) The Hotel’s Pro rata cost of participation in all of
the foregoing programs shall be paid by Manager as an Operating Cost. 
  
 6.05 Intentionally Omitted. 
  
 6.06
Maintenance and Repairs. 
  
 (a) Owner shall be
responsible for providing the funds necessary, either from Hotel revenues or otherwise, to maintain the Hotel and its FF&E in good repair and in a condition consistent with the Brand Standards. 
  

 11 

 (b) Manager shall, on behalf of Owner and at Owner’s expense, make or cause to be made all repairs,
replacements, corrections and maintenance items as are required in the normal and ordinary course of operation of the Hotel and as are required to comply with the Brand Standards. In conjunction therewith, Manager is authorized to make and enter
into in the name of, for the account of and at the expense of Owner all contracts and agreements (all of which must be terminable within thirty (30) days notice unless Owner approves otherwise) as are necessary or advisable in Manager’s opinion
for the repair and maintenance of the Hotel. 
  
 6.07 Capital
Expenditures. 
  
 (a) Owner acknowledges the necessity of
making Capital Replacements in the Hotel, and that replacements of FF&E are only a part of the total Capital Replacement requirements of the Hotel. Owner shall expend such amounts for Capital Replacements as are required in the normal and
ordinary course of operation of the Hotel in accordance with the Brand Standards. At Owner’s election, design and installation of Capital Replacements may be carried out under Manager’s supervision, except that the costs of design,
construction management, technical services, project management and similar project-specific services will be separate and will be Ownership Costs. 
  
 (b) It is acknowledged by the parties that necessary expenditures for Capital Replacements will fluctuate from year to year depending on varying operating
conditions in the Hotel. However, it is anticipated, over the Initial Term and any Renewal Term(s) that capital expenditures for repair and/or replacement of FF&E and interior furnishings of the Hotel will average not less than four percent (4%)
of Gross Revenues. Manager shall pay from the Bank Account in cash in each Fiscal Month beginning in the Fiscal Month commencing immediately after the Effective Date, and continuing for each and every month through June, 2003, two percent

  

 12 

 (2%) of Gross Revenues attributable to that month. Thereafter, Manager shall pay from the Bank Account in cash in each
Fiscal Month beginning in July, 2003, and continuing for each and every month during the remainder of the Initial Term and any Renewal Term(s), four percent (4%) of Gross Revenues attributable to that month. Such amount shall be paid into the
Reserve Account to pay for the FF&E Replacements in future periods. The amounts so paid into the Reserve Account shall be recorded on the Hotel’s books of account as “Reserve for FF&E Replacements.” Any expenditures for
FF&E Replacements during any Fiscal Year which have been approved in the yearly Capital Replacements Budget may be made without Owner’s further approval and, to the extent available, may be made by Manager from the Reserve Account
(including accrued interest and unused balances from earlier years). Any amounts remaining in the Reserve Account at the close of each Fiscal Year will be carried forward and retained in the Reserve Account until fully used for FF&E Replacements
as herein provided. To the extent funds in the Reserve Account are insufficient at any time or to the extent such funds plus anticipated contributions for the ensuing year are less than the budget for FF&E Replacements for the ensuing year,
Owner shall supply the necessary funds by deposit to the Reserve Account within thirty (30) days of delivery of notice to that effect from Manager. All proceeds from the sale of items of FF&E no longer needed for the operation of the Hotel will
be deposited in the Reserve Account. Sale of such items will be made only pursuant to an approved capital expenditure program as provided in the Yearly Budget. Upon termination of this Agreement for any reason, except to the extent of contractual
commitments made pursuant to a Capital Replacements Budget any balance then remaining in the Reserve Account will be returned to and applied in the same manner as other funds in the Bank Account. 
  
 (c) In addition to budgeted expenditures in the Capital Replacements Budget
as provided for in Section 6.07(b), Manager shall have the further right, as an Ownership Cost, to 
  

 13 

 make alterations, additions or improvements in or to the Hotel which are beneficial to the Hotel or its operations but
which do not involve structural modifications to the Building; provided, however, that no such alteration, addition or improvement in excess of Twenty-Five Thousand Dollars ($25,000) per Fiscal Year, if not contained in the Yearly Budget or the
Capital Replacements Budget, may be made without Owner’s prior written approval, which approval shall not be unreasonably withheld or delayed. The amount of Twenty-Five Thousand Dollars ($25,000) per Fiscal Year and may be annually adjusted by
Manager with reference to the Consumer Price Index to retain the same purchasing power as at the Effective Date. Expenditures under this Article 6.07(c) must be paid from the Reserve Account. 
  
 (d) In the event that a condition should exist in or about the Hotel of an
illegal or emergency nature, including structural conditions, which requires immediate repair necessary to protect guests or employees or to preserve and protect the Hotel, or to maintain its insurance coverage or right to permits and licenses or
otherwise to assure its continued operation, Manager, on behalf of and at the expense of Owner, is hereby authorized to take all steps and to make all expenditures necessary to repair and correct any such condition, regardless of whether provisions
have been made in the applicable Yearly Budget for any such expenditures. Upon the occurrence of such an event or condition, Manager will communicate to Owner all available information regarding such event or condition as soon as reasonably possible
and will take reasonable steps to obtain Owner’s approval before incurring such expenses. Expenditures under this Section 6.07(d) shall be paid from the Reserve Account unless otherwise agreed by Owner and Manager. 
  
 (e) In the event that at any time during the Initial Term and any Renewal
Term(s), repairs to or additions, changes or corrections in the Hotel of any nature are required by reason of any laws, ordinances, rules, regulations or other applicable legal requirements, or by order of any 
  

 14 

 governmental or municipal power, department, agency, authority or officer, such repairs, additions, changes or
corrections shall be made at the direction of Manager and paid for by Owner. Such work shall be accomplished with as little hindrance as possible to the operation of the Hotel. Expenditures under this Section 6.07(e) shall be paid from the Reserve
Account unless otherwise agreed by Owner and Manager. Further, Manager and Owner agree that Manager shall not be required to make such repairs, additions, changes or corrects and Owner shall not be obligated to pay for such items if Owner in good
faith contests such legal requirements and negotiates an alternative settlement with the applicable governmental or municipal authority. 
  
 ARTICLE 7 
  
 FISCAL MATTERS 
  
 7.01 Accounting Matters and Fiscal Periods. 
  
 (a) Manager shall maintain books and records reflecting the results of Hotel operations in accordance with the Accounting Principles. In consideration thereof, Manager shall be paid the Accounting Fee as provided in
Article 8. Owner and Manager and their respective independent accounting firms will have the right to examine such books and records of the Hotel at any reasonable time and to make and retain copies thereof at the requesting party’s expense.

  
 (b) At Owner’s election but as an Ownership Cost, a
certified audit of the Hotel operations may be performed annually, and after the Expiration Date, by a nationally recognized, independent Certified Public Accounting firm appointed by Owner and approved by Manager, such approval not to be
unreasonably withheld or delayed. In the event that Owner elects to have such an audit performed, Owner must give notice of its election within sixty (60) days after the end of the Fiscal Year, or within sixty (60) days after the Expiration Date of
this Agreement, as the case may be. 
  

 15 

 (c) On or before the twenty-fifth (25th) day after the close of each Fiscal Month, Manager shall furnish
Owner with a detailed operating statement setting forth the results of Hotel operations with respect to such month. Attached hereto as Exhibit “B” is a form of the operating statement currently utilized by Manager which reflects the
results of the prior month as well as the cumulative Fiscal Year-to-date results of operations. Owner acknowledges that the form of the operating statement may be modified from time to time by Manager as it determines appropriate for all hotels
operated by it. In the event that either no notice of audit is given within 60 days, or no audit is in fact commenced within 120 days after the end of the Fiscal Year, the year-end operating statement will constitute the final statement for that
Fiscal Year, deemed to have been approved by Owner. 
  
 7.02
Yearly Budgets. 
  
 (a) Not less than sixty (60) days
prior to the first day of each Fiscal Year after the Effective Date, Manager shall submit to Owner for Owner’s approval a proposed Yearly Budget including a proposed Capital Replacements Budget for the ensuing full or partial Fiscal Year, as
the case may be. Owner’s approval of the Yearly Budget and the Capital Replacements Budget shall not be unreasonably withheld or delayed and shall be deemed given unless a specific written disapproval thereof (as provided below) is delivered by
Owner to Manager within thirty (30) days after submission of such budgets. Manager will, on a monthly basis, issue periodic forecasts of operating performance to Owner reflecting any significant unanticipated changes, variables or events or
describing significant additional unanticipated items of income or expense. Manager will provide Owner with the material data and information utilized in preparing the Yearly Budget and the Capital Replacements Budget or any revisions thereof.
Manager will not be deemed to have made any guaranty, warranty or representation whatsoever in connection with the Yearly Budget 
  

 16 

 and the Capital Replacements Budget, and Owner acknowledges that the Yearly Budget, including the Capital Replacements
Budget are intended only as reasonable estimates of the matters they describe. In administering the Yearly Budget, Manager may, without Owner’s approval, reallocate, without restriction, budget line items within the same general divisional
classification of budget items shown in the Yearly Budget (e.g., rooms, food and other similar or dissimilar categories, as determined in accordance with the Accounting Principles, and shall not mean the sub-categories such as, for example, linen
replacement and uniforms, appearing under a general divisional category) so long as such reallocation does not materially and adversely affect the purposes for which the original budget line items were intended and so long as Manager provides notice
of such reallocation to Owner. Manager is always authorized to make expenditures for taxes, insurance and utilities to reflect actual costs thereof. With respect to other items, in the event that Manager encounters circumstances which require
unbudgeted and unanticipated expenditures not foreseen at the time of preparation of the Yearly Budget and which Manager deems reasonably necessary, Manager may submit such matters for Owner’s approval, which approval will not be unreasonably
withheld or delayed. Expenditures required to complete, or correct deficiencies, in construction, reconstruction or refurbishment of the Hotel, if undertaken, are Ownership Costs and will not be reflected in the Yearly Budget or the Capital
Replacements Budget or paid from the Reserve Account. 
  
 (b) In
the event Owner disapproves or raises any objections to the proposed Yearly Budget, or any portion thereof, or any revisions thereto, Owner and Manager shall cooperate with each other in good faith to resolve the disputed or objectionable items. Any
objectionable items in the proposed Yearly Budget or Capital Replacements Budget, or revisions thereto, which Owner disapproves must be disapproved on a specific line-by-line basis in order to establish which, if any, 
  

 17 

 line items are not acceptable to Owner. In the event Owner and Manager are not able to negotiate and resolve the disputed
or objectionable items within a period of thirty (30) days after the date on which Owner provides written notice of its disapprovals to Manager, either party may submit the disputed items to arbitration before a panel of three (3) arbitrators who
will conduct the arbitration proceedings in accordance with the provisions of this Agreement and the rules of the American Arbitration Association. Unless otherwise mutually agreed by Owner and Manager, the arbitration proceedings will be conducted
at the Hotel. All arbitrators appointed by or on behalf of either party shall be persons with recognized expertise in the operation of hotels of similar size and class as the Hotel. The party desiring arbitration will give written notice to that
effect to the other party, specifying in such notice the name, address and professional qualifications of the person designated to act as arbitrator on its behalf. Within fifteen (15) days after service of such notice, the other party will give
written notice to the party desiring such arbitration specifying the name, address and professional qualifications of the person designated to act as arbitrator on its behalf. The two arbitrators will, within fifteen (15) days thereafter, select a
third, neutral arbitrator. As soon as possible after the selection of the third arbitrator, and no later than fifteen (15) days thereafter, the parties will submit their positions on each disputed item in writing to the three arbitrators. In so
submitting their positions, each party shall state only one substantive proposal as a resolution for each disputed item. The arbitrators may not consider multiple or alternative positions from either party with respect to any disputed budget item.
The decision of the arbitrators so chosen shall be given within a period of twenty (20) days after the appointment of such third arbitrator. The arbitrators must, by majority vote, agree upon and approve the substantive position of either Owner or
Manager with respect to each disputed item, and are not authorized to agree upon or impose any other substantive position which has not been presented to the arbitrators by Manager or Owner. A 
  

 18 

 decision in which any two (2) arbitrators so appointed and acting hereunder concur in writing with respect to each
disputed item shall in all cases be binding and conclusive upon Owner and Manager and a copy of said decision shall be forwarded to the parties. The fees and expenses of the arbitration will be paid by the non-prevailing party. 
  
 If the party receiving a request for arbitration fails to appoint its
arbitrator within the time above specified, or if the two arbitrators so selected cannot agree on the selection of the third arbitrator within the time above specified, then either party, on behalf of both parties, may request such appointment of
such second or third arbitrator, as the case may be, by application to any judge of any court in the jurisdiction where the Hotel is located which has original jurisdictional authority over contractual disputes involving a claim equal to the
disputed budget item upon ten (10) days prior written notice to the other party of such intent. 
  
 In the event Owner and Manager are not able to resolve the disputed or objectionable matters raised by Owner in regard to a Yearly Budget prior to the
commencement of the applicable Fiscal Year, either voluntarily or by means of arbitration, Manager is authorized to operate the Hotel in accordance with the proposed Yearly Budget; provided, however, that as for disputed budget items, Manager may
not expend more than the previous year’s budgeted amount for such item (if any), increased by a percentage equal to the increase in the Consumer Price Index during the last year. For purposes of this section, “increase in the Consumer
Price Index during the last year” shall mean the percentage increase in the Consumer Price Index for the 12-month period ending immediately prior to the date of submission of the Yearly Budget during the calendar year which began during the
Fiscal Year which is in dispute. 
  
 7.03 Bank Accounts.

  
 (a) The revenues of the Hotel shall be deposited into one or
more Bank Account(s) 
  

 19 

 established by Manager in Owner’s name at such banks as Manager shall determine. The Bank Accounts will be separate
and distinct from any other accounts, reserves or deposits required by this Agreement, and Manager’s designees who are included in the coverage of any required fidelity or similar insurance will be the only parties authorized to draw upon any
Bank Account; provided, however, such designees shall only be authorized to draw upon a Bank Account for purposes authorized by the terms of this Agreement. Within one (1) business day of the Effective Date, Owner shall deposit in the Bank Accounts
designated by Manager the sum of Two Hundred Forty Four Thousand and No/100 Dollars ($244,000.00), as the minimum working capital for the Hotel. Such amount is based upon the purchasing power of money at the Effective Date and shall be annually
increased or decreased with reference to increase or decrease in the Consumer Price Index in order to retain the same purchasing power. This amount as adjusted shall be the “Target Bank Balance” to be maintained by Owner during the
remainder of the Initial Term and any Renewal Term(s). The Target Bank Balance will serve as working capital for Hotel operations and any interest earned on the Target Bank Balance shall belong to the Hotel. It is acknowledged by Manager and Owner
that the Target Bank Balance will fluctuate during each Fiscal Month and that Manager shall have no obligation to fund any deficiency in the Target Bank Balance. Owner shall, within seven (7) days of receiving written notice from Manager that the
actual working capital balance is more than ten percent (10%) less than the Target Bank Balance, furnish Manager with, or Manager may retain from amounts otherwise distributable to or on behalf of Owner on a monthly basis if available, sufficient
funds to make up any deficiency in the Target Bank Balance. Owner acknowledges that the Target Bank Balance will be administered by Manager on a consolidated basis across the portfolio of hotels owned by Owner and listed on Exhibit
“D” attached hereto. Notwithstanding the provisions of this Section 7.03(a) and Section 9.02 to the contrary, Owner and 
  

 20 

 Manager agree that the obligation of Owner to fund deficits in the Target Bank Balance and the obligation of Manager to
disburse excess funds above the Target Bank Balance shall be determined on a consolidated basis for all such hotels. 
  
 (b) Manager shall have exclusive control of the Bank Accounts. Nothing contained herein is to be construed as preventing Manager from maintaining separate
payroll accounts or petty cash funds and making payments therefrom as the same may be customary in the hotel business or the Brand Standards. Further, Manager shall have the right to consolidate the Bank Accounts for the Hotel with the bank accounts
of any other hotels owned by Owner and managed by Manager as Manager determines in its sole discretion. Manager shall not have the right to consolidate the Bank Accounts with any other hotels managed by Manager that are not owned by Owner. Manager
shall reconcile the Bank Accounts on a monthly basis and shall provide copies of the Bank Account statements and reconciliation worksheets to Owner with the monthly operating statement provided under Section 7.01(c) of this Agreement. 
  
 ARTICLE 8 
  
 FEES TO MANAGER 
  
 8.01 Management Fees. As consideration for the management and
operation of the Hotel by Manager and for such other services as are provided by Manager as required in this Agreement, Manager shall have the right to withdraw from the Bank Account and pay itself a Base Management Fee and an Incentive Management
Fee as follows: 
  
 (a) A Base Management Fee equal to three
percent (3%) of Adjusted Gross Revenues in each Fiscal Year during the Initial Term and any Renewal Term(s), inclusive of the Accounting Fee described in Section 8.02 below. The Base Management Fee for the immediately preceding Fiscal Month shall be
paid to Manager by the 15th day of the next succeeding Fiscal Month. The Base Management Fee for any period less than a full 12-month Fiscal Year shall be paid on the basis of Adjusted Gross Revenues in that period. 
  

 21 

 (b) The Incentive Management Fee for the period from the Effective Date through December 31, 2003, shall
be equal to twenty-five percent (25%) of the amount, if any, by which the Hotel’s actual Gross Operating Profit exceeds the Hotel’s budgeted Gross Operating Profit as determined pursuant to the Yearly Budget. The Incentive Management Fee
for the period commencing January 1, 2004, and continuing through the Initial Term and any Renewal Term(s) shall be equal to twenty-five percent (25%) of the amount, if any, by which the Hotel’s actual Gross Operating Profit in each Fiscal Year
exceeds the Hotel’s actual Gross Operating Profit for Fiscal Year 2003 (adjusted annually by a percentage equal to the percentage increase or decrease in the Consumer Price Index from the prior Fiscal Year). The Incentive Management Fee for the
immediately preceding Fiscal quarter shall be paid on an estimated basis to Manager by the 15th day of the next
succeeding Fiscal Month. The Incentive Management Fee for each Fiscal Year shall be finally determined and adjusted after receipt of year end financial statements from Manager, and upon such final determination and adjustment, Manager shall either
(x) repay to Owner any overage (by redepositing the amount of such overage into the Bank Account) or (y) withdraw from the Bank Account any underpayment of Incentive Management Fee for such Fiscal Year, as applicable. The Incentive Management Fee
for any Fiscal Year which is a partial year shall be calculated by prorating the Incentive Management Fee on the basis of the elapsed portion of the current Fiscal Year. 
  
 8.02 Accounting Fee. In consideration of certain other mandatory services related to the Brand provided by Manager
and/or its affiliates, Manager shall have the right to withdraw from the Bank Account and pay itself an Accounting Fee equal to Fifteen Dollars ($15.00) per 
  

 22 

 room for each Fiscal Month or part thereof during the Initial Term and any Renewal Term(s), subject to adjustment from
time to time on an area-wide basis within the Brand. The Accounting Fee for the immediately preceding Fiscal Month shall be paid to Manager by the 15th day of the next succeeding Fiscal Month. 
  
 8.03 Termination Fee. In the event that Manager’s services are terminated under this Agreement upon mutual consent or for any reason other than a final determination through an arbitration proceeding
conducted in accordance with Section 7.02(b) of this Agreement that Manager is subject to termination with cause for an Event of Default (in which case no Termination Fee will be due to Manager), then Manager shall be entitled to a termination fee
equal to the total of the Base Management Fee and the Incentive Management Fee earned for the most recent full Fiscal Year at the time of such termination (the “Termination Fee”). In addition to the Termination Fee described above, Owner
must pay to Manager any and all amounts due to Manager under this Agreement on the effective date of any such termination, including, without limitation, the unamortized portion of the Enhancement due under Section 4.01 of this Agreement. Owner
shall have the right to terminate this Agreement without cause upon thirty (30) days prior written notice to Manager and payment to Manager of the Termination Fee and all other amounts due to Manager under this Agreement on the effective date of
such termination, including, without limitation, the unamortized portion of the Enhancement due under Section 4.01 of this Agreement. 
  
 ARTICLE 9 
  
 DISBURSEMENTS 
  
 9.01 Priority of Disbursements. As and when received by Manager or the Hotel, all Gross Revenues shall be deposited into a Bank Account created pursuant to the requirements of Section 7.03. Manager shall in
turn disburse on a monthly basis, for and on behalf of Owner, funds from such account in the following order of priority and to the extent available: 
  
 (a) the Base Management Fee, the Accounting Fee, the fees due under the License Agreement, and all reimbursements due Manager under this Agreement;

  

 23 

 (b) all Operating Costs other than those described in subparagraph (a) above; 
  
 (c) Disbursements to Owner, from which the following Ownership Costs will be
paid directly by Owner: 
  

	 	(i)	Debt Service on any Authorized Mortgage; 

  

	 	(ii)	real property taxes and assessments; 

  

	 	(iii)	fire and extended coverage insurance premiums; 

  

	 	(iv)	rental pursuant to an approved ground lease, if any, or any other lease payments approved by Manager; 

  
 (d) expenditures under Section 6.07, including those for Capital Replacements; 
  
 (e) contributions to the Reserve Account. 
  
 Any Incentive Management Fee due and payable to Manager will be paid to
Manager from one of the Bank Accounts on a quarterly basis as set forth in Section 8.01(b) above; provided, however, the payment of the Incentive Management Fee shall be subordinate to the payment of Debt Service on any Authorized Mortgage and to
the extent there is insufficient funds to pay the Incentive Management Fee when due, such Incentive Management Fee will accrue and become a priority payment after payment of Debt Service in succeeding Fiscal Months. 
  
 Notwithstanding the foregoing priority of disbursements, Manager agrees that
Owner shall have the right to defer and accrue items described under subsection (d) and subsection (e) above for up to two (2) months per Fiscal Year in order to accommodate the seasonal nature of 
  

 24 

 the Hotel’s business; provided, however, that all such deferred and accrued amounts must be fully funded by the end
of each Fiscal Year, all as to be agreed by Owner and Manager as part of the Yearly Budget. If all such deferred and accrued amounts are not fully funded by the end of the Fiscal Year, Manager shall have the right to fully fund the deficit before
making the disbursement set forth in Section 9.02 at the end of each Fiscal Year. 
  
 9.02 Adjustment to Bank Accounts. After the disbursements pursuant to Section 9.01 (including reasonable provisions for periodic disbursements not made on a monthly basis), any excess funds remaining in the
Bank Account into which Gross Revenues are so deposited over the Target Bank Balance will then be disbursed to Owner on or before the 20th day of each month. Accordingly, any deficiency or projected shortfall in the Bank Accounts shall promptly be
funded by Owner as required in Section 7.03(a). Notwithstanding that Manager is authorized to and will make the disbursements described above in the order set forth and to the extent funds are available, Owner is ultimately solely liable for all
Operating Costs and Ownership Costs. Owner shall at all times promptly make available, to the extent not provided by the Gross Revenue of the Hotel, the necessary funds to enable Manager to operate the Hotel as contemplated in this Agreement.
Manager shall have no responsibility to incur obligations for or on account of the Hotel or to perform services requiring Manager to incur or pay obligations of the Hotel unless Manager is reasonably assured that funds to discharge such obligations
will be available as the amounts come due. 
  
 ARTICLE 10

  
 CERTAIN OTHER SERVICES 
  
 10.01 Optional Services. Owner acknowledges that Manager and its
affiliates sometimes provide separate, optional services which may relate to the Hotel in addition to those which are 
  

 25 

 encompassed by this Agreement, such as, by way of example, construction project management or technical services
including design, architectural, engineering, auditing and estimating services. Owner agrees to consider in good faith any proposals presented to it by Manager or any of Manager’s affiliates for such additional services relative to the Hotel;
it being understood, however that this Section shall in no event be construed to require Owner to accept any such proposals. 
  
 10.02 Purchasing. In making purchasing decisions with respect to products and service used in the operation of the Hotel, Manager will exercise
reasonable business judgment in accordance with the standards in this Agreement generally applicable to management of the Hotel. Manager will act in a manner that enables Owner and the Hotel to gain the same benefits with respect to purchasing as
are made available to other hotels of the same category as the Hotel which hotels are owned or operated by Manager of its affiliates. In the aggregate of all purchasing decisions Manager will give consideration to relevant competitive standards and
practices among potential suppliers, taking into account the same price, quality, service and other considerations which would be applied to a supplier unrelated to Manager, and will confirm that the hotel is not being charged amounts in excess of
the amount which would be charged to a similarly situated hotel owned or operated by Manager. 
  
 Owner acknowledges that Manager, an affiliate of Manager, or an entity in which Manager has an interest, purchases or provides various goods and services used in the operation of the Hotel, and that in such instances,
Manager or the related entity sets charges for such goods and services (which may include recovery of costs as well as profit). In addition, Owner acknowledges that Manager or entities related to it may receive rebates, allowances or similar kinds
of payments in connection with purchasing activities. Owner agrees that, so long as Manager is acting in accordance with the standards described above, it may make such purchases unless otherwise 
  

 26 

 instructed by Owner in writing. Within thirty (30) days of written request by Owner, Manager will provide Owner with
pricing comparison information for such goods and services that Manager has in its possession. 
  
 Owner may cancel the foregoing authorization and remove the Hotel from participation in Manager’s purchasing programs provided (i) Owner has given Manager sixty (60) days advance written notice of its intent to
do so, and (ii) Owner has, at least thirty (30) days in advance, arranged for an alternative, comprehensive purchasing program which is sufficient, in Manager’s reasonable business judgment, to meet all of the Hotel’s requirements for the
purchase of goods and services. 
  
 ARTICLE 11 

 
 SIGNS AND SERVICE MARKS 
  
 11.01 Intentionally Omitted. 
  
 11.02 System Marks. It is understood and agreed by Owner that the
name Holiday Inn and all System Marks are the exclusive property of Manager or its Affiliates. Owner agrees and acknowledges the exclusive right of ownership of Manager and its Affiliates to the System Marks and the Reservation System. Owner hereby
disclaims any right or interest therein, regardless of the legal protection afforded thereto. Unless the License Agreement remains in full force and effect, in the event of termination or cancellation of this Agreement, whether as a result of a
default by Manager or otherwise, Owner shall not hold itself out as, or operate the Hotel as, a Holiday Inn hotel, and will immediately cease using the name Holiday Inn, and all other System Marks in connection with the name or operation of the
Hotel as of the Expiration Date. Manager will then have the right to enter the Hotel and to remove all signs, furnishings, printed material, emblems, slogans or other distinguishing characteristics which are now or hereafter may be connected or
identified with the Reservation System. Owner shall not use any System Marks or any part, 
  

 27 

 combination or variation thereof in the name of any partnership, corporation or other business entity, nor allow the use
thereof by others. Owner shall not make, or allow others to make, reference to any System Marks, or any combination or variation thereof, directly or indirectly, in connection with Owner’s participation in a public sale of securities or other
comparable means of financing without the prior written consent of Manager or its affiliate as applicable, which may be withheld in its sole discretion. 
  
 11.03 System Mark Litigation. In the event the Hotel, Owner or Manager is the subject of any litigation or action brought by any party seeking to
claim rights in or to restrain the use of any System Mark used by Manager in connection with the Hotel, then any such litigation or action will be defended entirely by and at the expense of Manager, notwithstanding that Manager may or may not be
named as a party thereto. The Owner shall not have the right to bring suit against any user of any System Mark with respect to the System Mark. In all cases the conduct of any suit whether brought by Manager or instituted against Owner and/or
Manager shall be under the absolute control of counsel to be nominated and retained by Manager notwithstanding that Manager may not be a party to such suit. Manager shall hold Owner harmless from and indemnify Owner against any amounts voluntarily
paid in connection with a settlement and any judgments or awards of any court or administrative agency of competent jurisdiction, whether such awards be in the form of damages, costs or otherwise which Owner is required to pay as a result of Manager
using any of its System Marks as the name of or in connection with the operation of the Hotel in accordance with the terms of this Agreement. 
  
 ARTICLE 12 
  
 INSURANCE 
  
 12.01 Insurance Coverage. Owner agrees to procure and maintain, at its expense and at all 
  

 28 

 times during the Initial Term and any Renewal Term(s), reasonable and adequate amounts of casualty, liability and other
usual and customary types of insurance, including, but not limited to, the minimum insurance coverages set forth in Exhibit “C” attached hereto. Owner acknowledges and agrees that Manager has not made any representations or
warranties regarding the adequacy of the insurance coverages set forth in Exhibit “C” to Owner or Owner’s shareholders, partners, members, agents, or employees. Manager agrees to procure and maintain the insurance coverages set
forth in Exhibit “C-1” attached hereto. 
  
 12.02
Insurance Policies. 
  
 (a) All insurance provided for
under this Article 12 must be effected by policies issued by insurance companies of good reputation and of sound financial responsibility and will be subject to Manager’s reasonable approval. 
  
 (b) Notwithstanding anything herein to the contrary, this Agreement will not
be effective until all required insurance coverage has been obtained and evidence thereof has been furnished to Manager; provided, however, that certificates of insurance will be delivered to Manager within thirty (30) days after the Effective Date.

  
 (c) All insurance policies shall be issued in the name of
Owner with Manager being named as an additional insured. 
  
 (d)
Subject to the rights of a mortgagee under any Authorized Mortgage, all insurance policies shall be endorsed specifically to provide that the proceeds of any building, contents, crime or business interruption losses will be payable to Owner and
Manager jointly, as their interests may appear as “owner” or “manager.” All such policies of insurance shall also be endorsed specifically to provide that such policies may not be canceled or materially changed without at least
thirty (30) days’ prior written notice to Owner and Manager: 
  

 29 

 Certificates of insurance for Manager will be sent to: 
  

					
	 	 	Six Continents Resources, Inc.	 	 
	 	 	c/o Six Continents Hotels, Inc.	 	 
	 	 	Risk Management Department	 	 
	 	 	Three Ravinia Drive	 	 
	 	 	Suite 2900	 	 
	 	 	Atlanta, Georgia 30346-2149	 	 
	 	 	Attn: Risk Manager	 	 

  
 ARTICLE 13

  
 INDEMNITY AND RELATED MATTERS 
  
 13.01 Scope. 
  
 (a) Subject to Section 13.01(c) of this Agreement, Owner shall indemnify and
hold Manager free and harmless from any liability for injury to persons or damage to property by reason of any cause, arising out of or related in any way to the performance of this Agreement by Manager, its agents, employees or independent
contractors, either in the Hotel or elsewhere, irrespective of whether negligence on the part of Manager, its agents, employees or independent contractors is alleged. 
  
 (b) Subject to Section 13.01(c) of this Agreement, Owner shall reimburse Manager upon demand for any money or other property
which Manager is required to pay out for any reason whatsoever related to Manager’s performance under this Agreement, whether the payment is for Operating Costs or Ownership Costs or any other costs, charges or debts incurred or assumed by
Manager, or any other party, or for judgments, settlements or expenses in defense of any claim, civil or criminal action, proceeding, charge or prosecution made, instituted or maintained against Manager or Owner jointly or severally, affecting or
because of the condition or use of the Hotel, or acts or failure to act of Manager, employees, agents or independent contractors of Manager, Owner, employees, agents or independent contractors of Owner, or arising out of or based upon any law,

  

 30 

 regulation, requirement, contract or award relating to the hours of employment, working conditions, wages and/or
compensation of employees or former employees of Owner, or for any other cause in connection with the Hotel, unless such payment is a matter for which Manager is obligated to indemnify Owner under the terms of this Agreement. 
  
 (c) Notwithstanding the foregoing, Owner shall not be liable to indemnify and
hold Manager harmless from any such liability which is finally determined by a judgment in litigation to result from the gross negligence or willful misconduct of Manager. Manager shall indemnify and hold Owner free and harmless from any liability
for injury to persons or damage to property arising out of the gross negligence, willful misconduct, or fraudulent activities of Manager, its agents, employees or independent contractors in connection with Manager’s performance or
non-performance under the terms of this Agreement. 
  
 13.02
Defense. Except as provided in Section 13.01(c) of this Agreement, Owner shall defend, promptly and diligently at Owner’s expense, any claim, action or proceeding brought against Manager or Owner jointly or severally arising out of or
connected with any of the matters referred to in Section 13.01(a) or 13.01(b), and hold Manager harmless and fully indemnify Manager from any judgment, liability, loss or settlement on account thereof. 
  
 13.03 Waiver of Subrogation. To the fullest extent permitted by law,
Owner hereby waives any and all right of subrogation and right of recovery or cause of action, and agrees to release the Manager from liability, for loss or damage to the extent such loss or damage is covered by valid and collectible insurance in
effect at the time of such loss or damage (or which would have been covered if Owner was carrying the insurance required by this Agreement). Said waivers are in addition to, and not in limitation or derogation of, any other waiver or release
contained in this Agreement. Written notice of the terms of the above waivers shall be given to 
  

 31 

 the insurance carriers of Owner and the insurance policies shall be properly endorsed, if necessary, to prevent the
invalidation of said policies by reason of such waivers. Owner shall require inclusion in all policies of property insurance, general liability insurance and all other forms of insurance required by the terms of this Agreement a waiver by the
insurer of all right of subrogation against Manager in connection with any loss or damage thereby insured against. 
  
 ARTICLE 14 
  
 DAMAGE TO AND DESTRUCTION OF THE HOTEL 
  
 14.01
Obligation to Restore. At its cost, Owner agrees, subject to the provisions of this Article 14 and to the terms of any Authorized Mortgage then in effect, to repair, restore, rebuild or replace any damage to, or impairment or destruction of,
the Hotel from fire or other casualty. If Owner fails to undertake such work within one hundred twenty (120) days after the fire or other casualty, or fails to complete the same diligently, Manager may, but will not be obligated to, undertake or
complete such work for the account of Owner and will be entitled to be repaid therefor with reasonable interest, and all the proceeds of any insurance covering such loss or other casualty will be payable to Manager for that purpose. 
  
 14.02 Termination Option. In the event the Building is destroyed or
substantially destroyed (over seventy percent (70%) of the Building affected) during the Initial Term or any Renewal Terms by fire or other casualty, Owner shall have the right not to repair, restore, rebuild or replace the Building and in such
event, Owner will have the right, upon notice served to Manager within sixty (60) days after such fire or other casualty, to terminate this Agreement. In the event Owner exercises the foregoing termination right, Owner shall pay Manager the
Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement. If Owner does not elect to terminate this Agreement, Owner agrees, at its cost, to repair, restore, 
  

 32 

 rebuild or replace such damage, impairment or destruction. If Owner fails to undertake such work within one hundred
twenty (120) days after the fire or other casualty or fails to complete the same diligently, Manager, without prejudice to its rights to repair, restore, rebuild or replace such damage, impairment or destruction for and on behalf of Owner and its
rights and remedies upon undertaking any such work provided for in this Article 14, may, at its election, terminate this Agreement upon delivery of thirty (30) days written notice to Owner, and in addition to any other sums due to Manager from
Owner, Owner shall pay Manager the Termination Fee, together with the unamortized portion of the Enhancement. 
  
 ARTICLE 15 
  
 CONDEMNATION 
  
 15.01 Termination. If the
whole of the Hotel is taken or condemned in any eminent domain, condemnation, compulsory acquisition or like proceeding by any competent authority for any public or quasi-public use or purpose, or if such a portion thereof is taken or condemned as
to make it imprudent or unreasonable, in Manager’s opinion, to use the remaining portion as a hotel of the type and class immediately contemplated by this Agreement, then in either of such events this Agreement shall terminate as of the date of
such taking or condemnation, but any award for such taking or condemnation shall, after deduction of any fees, payments or reimbursements then due Manager (including the Termination Fee set forth in Section 8.03 of this Agreement and the unamortized
portion of the Enhancement) and any sums required to be paid to the mortgagee under any Authorized Mortgage, be paid to Owner. 
  
 15.02 Restoration and Continuation. If only a part of the Hotel is taken or condemned and the taking or condemnation of such part does not make it
unreasonable or imprudent, in Owner and Manager’s reasonable opinion, to operate the remainder as a hotel of the type and class 
  

 33 

 contemplated by this Agreement, this Agreement will not terminate. However, out of any award to Owner, so much thereof as
shall be reasonably necessary to alter or modify the Hotel, or any part thereof, or to repair any damage so as to render the Hotel a complete and satisfactory architectural unit as a hotel of the same type and class as it is contemplated by this
Agreement shall be employed by Owner or otherwise made available to Manager for that purpose. The balance of the award, after deduction of the sum necessary for restoration, shall be fairly and equitably apportioned between Owner and Manager so as
to compensate Manager for any loss of income resulting or to result from the taking or condemnation. Notwithstanding the foregoing, should the Building be substantially taken or condemned (over seventy percent (70%) of the Building affected), Owner
shall have the right not to repair, restore, modify or alter the Building and in such event, Owner will have the right, upon notice served to Manager within sixty (60) days after the date of such condemnation, to terminate this Agreement. In the
event Owner exercises the foregoing termination right, Owner shall pay Manager the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement. 
  
 ARTICLE 16 
  
 DEFAULT AND TERMINATION 
  
 16.01 Events of Default. Subject to the provisions of Article 22, it
will be an event of default hereunder if any one or more of the following occurs (“Event of Default”): 
  
 (a) The breach, default or non-compliance in any material respect by either party with any covenants, obligations or agreements to be performed by such
party under this Agreement, followed by written notice of such breach, default or non-compliance from the other party to the breaching or defaulting party (and to the mortgagee or mortgagees under any Authorized Mortgage if Owner is the defaulting
party) and failure of such defaulting party (or such mortgagee if Owner is 
  

 34 

 the defaulting party) to remedy or correct such breach, default or non-compliance within thirty (30) days after receipt
of such notice. If the breach, default or non-compliance is other than for the payment of money and is also of a nature that it cannot reasonably be cured within such thirty (30) day period, then the defaulting party will not be considered to be in
default, and an Event of Default will not be deemed to have occurred, so long as the defaulting party commences and diligently pursues a cure of such default within such thirty (30) day period and continues to pursue a cure to completion with
diligence and continuity; or 
  
 (b) If an event of default occurs
under the License Agreement and continues beyond applicable notice and cure periods; or 
  
 (c) If: (i) a party is voluntarily or involuntarily dissolved; applies for or consents to the appointment of a receiver, trustee or liquidator of all or a substantial part of its assets; files a voluntary petition in
bankruptcy (or has filed against it an involuntary petition in bankruptcy which has not been dismissed within sixty (60) days after filing) or otherwise voluntarily avails itself of any federal or state laws for the relief of debtors; admits in
writing its inability to pay its debts as they become due; makes a general assignment for the benefit of creditors; files a petition (or has filed against it any such petition which has not been dismissed within sixty (60) days after filing) or an
answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law; or files an answer admitting the material allegations of any petition filed against it in any bankruptcy, reorganization or insolvency
proceeding; or (ii) an order, judgment or decree is entered by any court of competent jurisdiction, on the application of any one or more creditors of such party, adjudicating such party to be bankrupt or insolvent or approving a petition seeking
reorganization or appointing a receiver, trustee or liquidator of all or a substantial part of its assets, and such order, judgment or decree becomes final; or (iii) a party is directly or indirectly owned or 
  

 35 

 controlled by another company or entity and an event described in sub-sections (b)(i) or (ii) occurs with respect to any
company or entity owning or controlling such party; or (iv) if Owner conveys title to the Hotel or any part thereof in lieu of foreclosure of any security interest in the Hotel or if an action to foreclose any security interest in the Hotel or any
part thereof is instituted against Owner and is not dismissed within sixty (60) days thereafter. 
  
 16.02 Default Termination. 
  
 (a) If an Event of Default occurs and has not been cured within the cure period described above, this Agreement shall terminate at the election of the
Non-Defaulting Party. Notice of termination pursuant to this Article 16 may be given by the Non-Defaulting Party to the Defaulting Party at any time prior to the curing of such Event of Default, and such termination shall be effective as of the date
specified in such notice of termination, which date shall be not less than thirty (30) and not more than one hundred twenty (120) days after the date of such notice. 
  
 (b) Unless the License Agreement remains in full force and effect, Owner will have no right from and after the date of
termination of this Agreement to use the System Marks or to operate the Hotel as a Holiday Inn hotel. Further, Owner will have no right whatsoever from and after the date of termination to make use of or to dispose of any Furnishings and Equipment,
Operating Equipment and Operating Supplies bearing or incorporating any System Marks of Manager except upon and in accordance with the terms and provisions of this Section 16.02. Specifically, it is understood and agreed that Owner may not make any
use of such property from and after such effective date unless Owner is specifically authorized in writing (whether under license from Manager or otherwise, but other than by this Agreement) to use property bearing any System Marks of Manager, nor
may Owner dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Manager (whether under license from Manager or otherwise) to use property bearing or incorporating any System
Marks of Manager. 
  

 36 

 (c) If this Agreement is terminated by either Owner or Manager for any reason, then Owner will
immediately pay to Manager all amounts due and owing under this Agreement through the effective date of such termination including any applicable termination fees or damages. 
  
 (d) The waiver by any party of any one Event of Default will not be construed as a waiver by that party of any other Event
of Default. 
  
 (e) The terms of this Agreement shall not be
deemed to impair the right of any party to exercise any other right or remedy it may have at law or equity, whether for damages, injunction, specific performance or otherwise, upon any breach or termination hereof. 
  
 16.03 Post Termination Obligations. Upon expiration or termination of
this Agreement for any reason, Owner and Manager shall proceed as follows: 
  
 (a) Within sixty (60) days following the effective date of such expiration or termination, Manager will prepare and submit to Owner a final accounting of the results of Hotel operations and all accounts between Owner
and Manager through the effective date of such expiration or termination. Said final accounting will promptly be submitted by Manager to Owner for its approval. Owner shall not unreasonably withhold or delay its approval of the final accounting.

  
 (b) Within thirty (30) days following its receipt of the final
accounting, Owner will either notify Manager that Owner has approved the final accounting or will provide Manager a written statement of Owner’s disapproval, together with an explanation of the specific reasons for such disapproval in such
reasonable detail as will allow Manager to respond to or address Owner’s concerns. Failure by Owner to timely respond to the final accounting will be deemed Owner’s approval of the same. 
  
 (d) Once the final accounting has been approved or deemed approved by any of
the 
  

 37 

 methods described above, Owner shall pay to Manager all remaining amounts owed to Manager shown by such final accounting
no later than thirty (30) days from approval or deemed approval of the final accounting (or, if the final accounting shows Manager has received an overpayment previously, then Manager shall pay to Owner the amounts owed to Owner as shown by the
final accounting no later than thirty (30) days from the approval or deemed approval of the final accounting), and any funds remaining in the Bank Account will be paid to Owner. 
  
 (e) On the effective date of such expiration or termination, Manager will promptly deliver to Owner all books and records of
the Hotel, provided that Manager may retain copies of any of the same for Manager’s records. Manager will not be required to deliver to Owner any information or materials (including software, database, manuals and technical information) which
are proprietary property of Manager. Notwithstanding the foregoing, Manager will deliver all information relating to future bookings, sales contracts and other information directly relating to the historic or future operation of the Hotel. From and
after Manager’s delivery of such books and records (including but not limited to purchase orders and purchase invoices) to Owner, Owner will have sole responsibility for (i) maintaining such books and records, (ii) responding to any inquiries
and conducting any audits of any of such books and records (including but not limited to any audit of sales, use, gross receipts, hotel occupancy, property, withholding or similar taxes); provided, however, that Manager agrees to cooperate with any
such inquiries and audits, and (iii) payment of any and all costs associated with any such audit (including but not limited to any interest and penalties, unless such penalties are the result of Manager’s negligence or misconduct, in which case
Manager shall be responsible for such penalties). Manager agrees to reasonably cooperate with Owner, at no cost to Manager, to the extent necessary or appropriate for the response to any such inquiry or the conduct of any such audit. Owner agrees to
indemnify and hold Manager harmless 
  

 38 

 from and against any and all loss, cost, liability, damage, claim or expense (including but not limited to reasonable
attorney fees and court costs) incurred by Manager, any Affiliate of Manager or any of their respective officers, directors, agents or representatives in connection with any inquiry or audit described in this Section 16.03(e) except to the extent
that such loss, cost, liability, damage, claim or expense results from Manager’s gross negligence or willful misconduct. 
  
 (f) On the effective date of such expiration or termination, Manager will deliver possession of the Hotel, together with any and all keys or other access
devices, to Owner, subject to the prior or simultaneous removal from the Hotel of any items of FF&E, Operating Equipment, or other personal property bearing or incorporating the System Marks (unless the License Agreement remains in full force
and effect). In addition, Manager shall provide Owner with information on employee health claims and worker’s compensation history, but will not provide complete copies of employee records. 
  
 (g) On the effective date of such expiration or termination Manager will
assign to Owner, and Owner will assume, all booking, reservation, service and operating contracts relating exclusively to the operation of the hotel and entered into in the ordinary course of business by Manager. Owner agrees to indemnify and hold
Manager harmless from liability or other obligations under any such agreements relating to acts or occurrences, including Owner’s failure to perform, on or after the effective date of such assignment. 
  
 (h) Manager will reasonably cooperate with Owner as may be necessary for the
transfer of any and all Hotel licenses and permits to Owner or Owner’s designee; provided, however, such cooperation will be at no cost to Manager. The provisions of this Section 16.03 shall survive the expiration or termination of this
Agreement. 
  

 39 

 ARTICLE 17 
  
 NOTICES 
  
 17.01 Procedure. All notices or other communications provided for in this Agreement shall be in writing and personally served or sent by any
internationally recognized express delivery service, or by confirmed facsimile transmission followed immediately by a postage prepaid Registered or Certified Letter at the following address until such time as written notice, as provided hereby, of a
change of address with a new address to be used thereafter is delivered the other party: 
  

			
	 OWNER:
	  	Hotel Venture Limited Partnership
	 	  	c/o Circa Capital Corporation
	 	  	3100 McKinnon, Suite 1080
	 	  	Dallas, Texas 75201
	 	  	Attn: Lamont Meek
	 	  	Facsimile: (214) 954-4160
		
	 MANAGER:
	  	Six Continents Resources, Inc.
	 	  	c/o Six Continents Hotels, Inc.
	 	  	Three Ravinia Drive, Suite 2900
	 	  	Atlanta, Georgia 30346
	 	  	Attn: Vice President of Operations
	 	  	Facsimile: (770) 604-8875
		
	 with a copy to:
	  	Six Continents Resources, Inc.
	 	  	c/o Six Continents Hotels, Inc.
	 	  	Three Ravinia Drive, Suite 2900
	 	  	Atlanta, Georgia 30346
	 	  	Attn: General Counsel - Operations
	 	  	Facsimile: (770) 604-5802

  
 The delivery and receipt of any such
notice will be presumed to have occurred at the address to which it is sent within seventy-two (72) hours, but such presumption will be rebuttable. Upon request, a party shall send copies of any notice or communication by ordinary mail as instructed
by the other party. 
  

 40 

 ARTICLE 18 
  
 RELATIONSHIP, AUTHORITY AND FURTHER ACTIONS 
  
 18.01 Relationship. Manager shall be the agent of Owner with a limited agency solely for the purpose of operating the
Hotel and carrying out ordinary and customary transactions for that purpose. Manager shall not be a fiduciary and shall not be held to have fiduciary duties to Owner by virtue of this Agreement. Owner and Manager shall not be construed as joint
venturers or partners of each other, and neither shall have the power to bind or obligate the other except as set forth in this Agreement. Manager shall not constitute a tenant or subtenant of Owner and this Agreement shall not constitute Owner a
franchisee of Manager or of any of Manager’s affiliates. This Agreement shall not create a franchise or a franchisor/franchisee relationship within the meaning of the Federal Trade Commission Act, any rule or regulation promulgated, or any
other state or federal law, rule regulation, administrative or judicial decision. 
  
 18.02 Contractual Authority. Manager is authorized to make, enter into and perform in the name of, for the account of, on behalf of and at the expense of Owner any contracts and agreements deemed necessary in
Manager’s commercially reasonable judgment in order to carry out the terms and conditions of this Agreement; provided, however, that no contract or agreement with a term in excess of one (1) year (unless expressly terminable on thirty (30) days
notice), if not included in the Yearly Budget, may be entered into without Owner’s prior written approval, which approval shall not be unreasonably withheld or delayed. The foregoing dollar amounts are based upon the purchasing power of money
at the Effective Date and shall be periodically adjusted by Manager with reference to the then current Consumer Price Index to retain the same purchasing power. 
  

18.03 Further Actions. Owner agrees to execute all contracts, agreements and documents and to take all actions necessary to comply with the
provisions of this Agreement and the intent hereof. 
  

 41 

 ARTICLE 19 
  
 APPLICABLE LAW 
  
 19.01 Scope. The interpretation, validity and performance of this Agreement will be governed by the laws of the jurisdiction in which the Hotel is
located. In the event any court or competent judicial authority holds or declares that the law of another jurisdiction is applicable, this Agreement will remain enforceable under the laws of that jurisdiction. If any of the terms and provisions
hereof are held invalid or unenforceable for any reason, such invalidity or unenforceability will in no event affect any of the other terms or provisions hereof, all such other terms and provisions to be valid and enforceable to the fullest extent
permitted by law; provided, however, if in any event any material part of one party’s obligations under this Agreement are declared invalid or unenforceable, the other party will have the option to terminate this Agreement. 
  
 ARTICLE 20 
  
 SUCCESSORS AND ASSIGNS 
  
 20.01 Assignment by Manager. Owner’s consent will not be
required for Manager to assign any of its rights or interests as Manager hereunder to any parent, subsidiary or Affiliate of Manager, provided that any such assignee agrees to be bound by the terms and conditions of this Agreement. Manager may
transfer this Agreement and its rights hereunder to a successor by merger or otherwise by law, provided that such successor acquires all of Manager’s rights in the use of the Brand and the System Marks and the right to participate in the
benefits of the Brand Standards and the Reservation System. 
  
 20.02 Assignment pursuant to an Authorized Mortgage. Owner may assign its interest in 
  

 42 

 the Agreement together with all of its interest in the Hotel to a mortgagee who is a recognized institutional source of
hotel loans and holds in its own name (whether or not participated with others) an Authorized Mortgage. An “Authorized Mortgage” is defined to mean a first priority mortgage, pledge or encumbrance of or other form of security interest in
the assets constituting the Hotel which provides, at a minimum, that (i) such mortgage, pledge, encumbrance or security interest shall contain terms which are reasonable and customary in similar transactions; (ii) the lien shall not be
cross-collateralized outside of the pool of hotels listed on Exhibit “D” or the obligation cross-defaulted with any other obligation, (iii) if the loan secured by such encumbrance is made after completion of construction of the
Hotel, at the time the lien is first attached the loan does not require a debt service coverage ratio of 1.3:1, nor allow a loan-to-value ratio of greater than eighty percent (80%); (iv) this Agreement shall not be subject to forfeiture or
termination in the event of a default or foreclosure under such mortgage, pledge, encumbrance or security interest; and (vi) in the event of default, foreclosure or the exercise of any remedy available to the mortgagee thereunder, this Agreement and
Manager’s rights hereunder, including Manager’s right to manage and operate the Hotel as a Holiday Inn hotel, may not be disturbed. The foregoing shall be applicable both to original financing and to any refinancing. 
  
 20.03 Assignment by Owner. Owner may not assign (or permit the
assignment of) any of Owner’s interest in this Agreement or in any manner, either directly or indirectly, partition (or seek the partition of), sell, assign or transfer any of its rights or interests in the Hotel or permit (except by testate or
intestate succession) a change in a fifty percent (50%) or more equity or profit sharing interest in Owner, without the prior written consent (which consent shall not be unreasonably withheld or delayed) of Manager. If at any time after the
Effective Date hereof, without the prior written consent of Manager, (a) a change of fifty percent (50%) or more equity or profit sharing 
  

 43 

 interest in Owner occurs (except by testate or intestate succession), (b) Owner or any other party partitions (or seeks
the partition of), sells, transfers or assigns the whole or any part of its interest(s) in the Hotel or any of Owner’s interest in this Agreement or (c) any mortgage, pledge, encumbrance or similar security interest, other than an Authorized
Mortgage, is placed upon the Hotel or any part thereof or interest therein, Manager may elect to terminate this Agreement (which termination will be effective thirty (30) days after Manager’s service upon Owner of written notice of its election
to terminate). In the event this Agreement is terminated (whether by election of Manager or otherwise) due to any of the foregoing causes, Owner shall be obligated to pay to Manager a Termination Fee as provided in Section 8.03, together with the
unamortized portion of the Enhancement. 
  
 20.04 Binding
Effect. The terms, provisions, covenants, undertakings, agreements, obligations and conditions of this Agreement shall be binding upon and shall inure to the benefit of the successors in interest and the assigns of the parties hereto with the
same effect as if mentioned in each instance where the party hereto is named or referred to, except that no assignment, transfer, sale, pledge, encumbrance, mortgage, lease or sublease by or through Owner, as the case may be, in violation of the
provisions of this Agreement shall vest any rights in the assignee, transferee, purchaser, secured party, mortgagee, pledgee, lessee, sublessee or occupant. 
  
 ARTICLE 21 
  
 RECORDING 
  
 21.01 Memorandum of Agreement. Manager and Owner agree that no Memorandum of this Agreement will be recorded in the land records of the State and County where the Hotel is located. 
  

 44 

 ARTICLE 22 
  
 FORCE MAJEURE 
  
 22.01 Operation of Hotel. If at any time during the Initial Term and any Renewal Term(s) hereof it becomes necessary in Manager’s reasonable
opinion to cease or alter operations at the Hotel in order to protect the health, safety and welfare of the guests and/or employees of the Hotel, or the Hotel itself, for reasons of force majeure beyond the control of Manager such as, but not
limited to, acts of war, insurrection, civil strife and commotion, labor unrest or acts of God, then in such event Manager may close and cease or alter operation of all or part of the Hotel, reopening and commencing or resuming operation when
Manager deems that such may be done without jeopardy to the Hotel, its guests and employees. 
  
 22.02 Extension of Time. Owner and Manager agree that, with respect to any obligation, other than the payment of money, to be performed by a party during the Initial Term and any Renewal Term(s) of this
Agreement, neither party will be liable for failure so to perform when prevented by any force majeure cause such as strike, lockout, breakdown, accident, order or regulation of or by any governmental authority, failure of supply or inability, by the
exercise of reasonable diligence, to obtain supplies, parts or employees necessary to perform such obligation, or war or other emergency. The time within which such obligation must be performed will be extended for a period of time equivalent to the
number of days of delay from such cause. 
  
 ARTICLE 23

  
 GENERAL PROVISIONS 
  
 23.01 Authorization. Owner represents that it has full power and
authority to execute this Agreement and to be bound by and perform the terms hereof. Manager represents it has full power and authority to execute this Agreement and to be bound by and perform the terms hereof. On request each party will furnish the
other evidence of such authority. 
  

 45 

 23.02 Interest. Any amount payable to Manager hereunder which is not paid when due shall accrue
interest from the date due until paid at the lesser of: (a) the highest legal limit, or (b) two percent (2%) over the prime rate of interest charged by Citibank, New York, New York, to borrowers on ninety day unsecured commercial loans, as the same
may be changed from time to time. 
  
 23.03 Formalities.
Any amendment or modification of this Agreement must be in writing signed by all parties hereto. This Agreement may be executed in one or more counterparts, each of which will be deemed an original. The captions for each Article are intended for
convenience only. 
  
 23.04 Documents. Throughout the
Initial Term and any Renewal Term(s) hereof, Owner agrees to furnish Manager copies of all property tax and insurance statements, all financing documents (including notes and mortgages) relating to the Hotel and such other documents pertaining to
the Hotel as Manager may request. 
  
 23.05 Consent.
Whenever under this Agreement the consent or approval of a party is required before the other party may proceed or take certain action, or before an act or proceeding is effective, such consent or approval shall not be unreasonably withheld or
delayed. 
  
 23.06 Time. Time is of the essence with
respect to this Agreement. 
  
 23.07 Attorneys’ Fees.
In the event of any litigation arising out of this Agreement, the prevailing party shall be entitled to reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees. 
  
 23.08 Other Hotels. Manager hereby agrees that sales and marketing
information (including but not limited to advertising strategies) that is proprietary to the Hotel shall not be shared by Manager with any other hotel product that is owned or managed by Manager or its Affiliates in the metropolitan statistical area
in which the Hotel is located without Owner’s prior written approval. 
  

 46 

 ARTICLE 24 
  
 SALE OF HOTEL TO THIRD PARTY; MANAGEMENT AGREEMENT. 
  
 24.01 Sale to Third Party. 
  
 (a) In the event that Owner consummates the transfer of the Hotel to a third
party purchaser approved by Manager (such approval to be in the exercise of Manager’s reasonable business judgment and underwriting policies) and such third party purchaser elects to retain this Agreement, the third party purchaser shall
execute and deliver to Manager an amendment and restatement of this Agreement confirming all the terms hereof, and assuming all of the obligations of Owner hereunder, including, without limitation, assumption of the unamortized portion of the
Enhancement and the Guaranty, at which time Owner shall have no further liability under this Agreement or the Guaranty. 
  
 (b) In the event that Owner consummates the transfer of the Hotel to a third party purchaser and such third party purchaser elects to terminate this
Agreement, upon the transfer of the Hotel, in addition to any other amounts payable to Manager hereunder, Owner shall pay the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement.

  
 ARTICLE 25 
  
 DEFINITIONS 
  
 25.01 Definitions. As used herein the following terms shall have the
meanings provided below: 
  
 (a) Accounting Fee – the
fee paid to Manager pursuant to Section 8.02. 
  

 47 

 (b) Accounting Principles - generally accepted accounting principles and procedures, based on the
then current edition of “the Uniform System of Accounts for the Lodging Industry”, published by the Educational Institute of the American Hotel and Motel Association, as consistently applied by Manager in accounting for the operations at
hotels owned, leased and operated, or managed by Manager or its subsidiaries, all as may be amended or modified from time to time by Manager. 
  
 (c) Adjusted Gross Revenues - Gross Revenues less (to the extent such items have been included in Gross Revenues): (i) gratuities or service
charges added to a customer’s bill; (ii) credits or refunds made to customers, guests or patrons; (iii) sums and credits (other than those already excluded from Gross Revenues) received by Owner for lost or damaged merchandise; (iv) sales
taxes, excise taxes, use taxes, gross receipts taxes, admission taxes, entertainment taxes, tourist taxes or charges, and similar charges required by law to be collected from patrons or guests or as part of the sale price for goods, services or
entertainment which must be remitted to governmental authorities; (v) proceeds from the sale or other disposition of the Hotel, Furnishings and Equipment or other assets of the Hotel; (vi) interest paid with respect to the Reserve Fund or any Bank
Accounts; (vii) fire and extended coverage insurance proceeds or other insurance proceeds payable in connection with any property casualty loss; (viii) condemnation awards; and (ix) proceeds of financing or refinancing of the Hotel. 
  
 (d) Affiliate – any entity which owns or controls another entity,
is owned or controlled by such entity or which is under common ownership or control with such entity is an “affiliate” of such entity, and the two entities are “affiliated entities”; for purposes of this definition,
“ownership” shall include and be limited to 50.1% or more of the equity interest. 
  
 (e) Authorized Mortgage – shall have the meaning provided in Section 20. 
  

 48 

 (f) Bank Accounts – one or more bank accounts necessary for the operation of the Hotel
established in Owner’s name at a bank selected by as provided in Section 7.03. 
  
 (g) Base Management Fee – the fee paid to Manager pursuant to Section 8.01(a). 
  
 (h) Brand – the Holiday Inn hotel service marks, the Brand Standards, and all of the attributes and features customarily associated with the
Holiday Inn hotel chain in North America from time to time. 
  
 (i) Brand Standards – the standards of operation from time to time in effect at substantially all hotels similar to the Hotel which are operated under the Holiday Inn name, which standard shall include but not be limited to
standards of operation from time to time required of owners of similar hotels or may be specified in manuals and other guidelines provided by the owner of the System Marks or its affiliates. Brand Standards may include changed or upgraded service
and equipment standards instituted in future to maintain the Brand’s competitive market position. 
  
 (j) Building - all buildings, structures and improvements now or hereafter located on the Site, and all fixtures and equipment attached to, forming
a part of and necessary for the operation of such buildings, structures and improvements as a hotel (including, without limitation, heating, lighting, sanitary, air-conditioning, laundry, refrigeration, kitchen, elevator and similar items) having
guest sleeping rooms, each with bath, and such (i) restaurants, bars, banquet, meeting and other public areas; (ii) commercial space, including concessions and shops; (iii) parking facilities and areas; (iv) storage and service areas; (v)
recreational facilities and areas; (vi) permanently affixed signage; (vii) public grounds and gardens; and (viii) other facilities and appurtenances, as may hereafter be attached to and form a part of the Building in accordance with this Agreement

  
 (k) Capital Replacements – acquisition,
installation, and replacement of (i) FF&E, and (ii) capital items as required to maintain the Hotel and comply with Brand Standards. 
  

 49 

 (l) Capital Replacements Budget – the annual budget for Capital Replacements in the Hotel,
covering a Fiscal Year, as prepared by Manager and approved by Owner as part of a Yearly Budget. References to Yearly Budget shall be deemed to incorporate the Capital Replacement Budget unless specifically excluded. 
  
 (m) Consumer Price Index – the Consumer Price Index for all Urban
Consumers, U.S. City Average, published by the United States Bureau of Labor Statistics. 
  
 (n) Debt Service – the payments of principal (assuming not more than 20 year amortization by constant payments) and interest required under any Authorized Mortgage. 
  
 (o) Defaulting Party - The party responsible for the occurrence of an
Event of Default or on account of whom an Event of Default has occurred. 
  
 (p) Effective Date – July 1, 2002. 
  
 (q) Event of Default – the occurrence of any one or more of the events set forth in Article 16.01(a) or (b). 
  
 (r) Expiration Date – June 30, 2012. 
  
 (s) Fiscal Month - a calendar month. 
  
 (t) Fiscal Year - twelve calendar months ending December 31 of each year. 
  
 (u) Furniture, Fixtures and Equipment or FF&E - all furniture, furnishings and equipment (excepting
“Operating Equipment” as hereinafter defined) now or hereafter located and installed in or about the Hotel which are used in the operation thereof as a hotel in accordance with the standards set forth in this Agreement, including, without
limitation (i) office furnishings and equipment; (ii) specialized hotel equipment necessary for the operation of any portion of the Building as a Holiday Inn hotel, including equipment for kitchens, laundries, dry cleaning facilities, 
  

 50 

 bars, restaurants, public rooms, commercial space, parking areas, and recreational facilities; and (iii) all other
furnishings and equipment hereafter located and installed in or about the Building which are used in the operation of the Building as a Holiday Inn hotel in accordance with the standards set forth in this Agreement. 
  
 (v) Gross Operating Profit - the amount, if any, by which Adjusted
Gross Revenues for any period exceed “Operating Costs” for the same period. 
  
 (w) Gross Revenue - all revenues and income of any nature derived directly or indirectly from the Hotel or from the use or operation thereof, including without limitation room sales; food and beverage sales;
telephone, telegraph, fax and internet revenues; rental or other payments from lessees, subleases, concessionaires and others occupying or using space or rendering services at the Hotel (but not the gross receipts of such lessees, subleases or
concessionaires); interest on the Reserve Account or any Bank Accounts; and the actual cash proceeds of business interruption, use, occupancy or similar insurance. 
  
 (x) Guaranty – that certain Guaranty of even date herewith executed by Circa Capital Corporation, the general
partner of Owner, for the benefit of Manager and securing the repayment obligations with respect to the Enhancement . 
  
 (y) Hotel - a collective term for the Owner’s interest in the Site, the Building, the Furniture, Fixtures and Equipment, the Operating
Equipment and the Operating Supplies. 
  
 (z) Incentive
Management Fee - the fee paid to Manager pursuant to Section 8.01(b). 
  
 (aa) Initial Term – the period of time commencing on the Effective Date and continuing until the Expiration Date of the Initial Term as provided in Section 2.02. 
  
 (bb) License Agreement – as defined in Recital C. 
  
 (cc) Non-Defaulting Party – the party to this Agreement who is
not responsible for an Event of Default. 
  

 51 

 (dd) Operating Cost(s) - The term “Operating Cost(s)” shall mean and refer to the entire
cost and expense of maintaining, operating and supervising the operation of the Hotel. Operating Costs shall be the sum of such costs and expenses as are normally charged as a cost of operation under the Accounting Principles, including, without
limitation: 
  

	 	i.	the cost of Operating Supplies, wages, salaries and employee fringe benefits, advertising and promotional expenses, the cost of personnel training programs, utility and energy
costs, operating licenses and permits, maintenance costs, and equipment rentals; 

  

	 	ii.	all expenditures made for maintenance and repairs to keep the Hotel in good condition and repair; 

  

	 	iii.	premiums for Workers’ Compensation Insurance, Employment Practices Liability Insurance and Comprehensive General Liability Insurance (including Automobile or Liquor Liability);

  

	 	iv.	the Base Management Fee; and 

  

	 	v.	the Accounting Fee payable to Manager as provided in Section 8.02 and all reimbursements due Manager. 

  
 (ee) Operating Equipment - non-consumable equipment and supplies required for the operation of the Hotel, including
chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies. 
  
 (ff) Operating Supplies - food and beverages and other consumable items used in the operation of a hotel, such as fuel, soap, cleaning materials,
matches, stationery, brochures, folios and all other items used in the routine operation of the Hotel which are consumable by nature. 
  

 52 

 (gg) Ownership Costs - all costs of operating or owning the Hotel other than those which are
within the definition of Operating Costs, including, without limitation: 
  

	 	i.	depreciation of the Building, Furniture, Fixtures and Equipment and Operating Equipment; 

  

	 	ii.	rental payments pursuant to a ground lease, if any, or any other equipment lease or lease financial arrangement; 

  

	 	iii.	amounts due for Debt Service or any other amounts coming due on any mortgage or other debt related to the Hotel; property taxes and assessments; expenditures under Section 6.07,
including those for Capital Replacements; 

  

	 	iv.	audit, legal and other professional or special fees not normally chargeable to the Hotel under the Accounting Principles, including but not limited to any of such fees incurred in
connection with the handling of inquiries, assessments and audits of sales, use, gross receipts, hotel occupancy, property, withholding or similar taxes; 

  

	 	v.	real estate taxes and assessments and personal property taxes and assessments; 

  

	 	vi.	premiums for property, casualty or fire and extended coverage insurance premiums; 

  

	 	vii.	the Incentive Management Fee; and 

  

	 	viii.	such other costs or expenses which are normally treated as capital expenditures under the Accounting Principles. 

  
 (hh) Renewal Term(s) – any period of years extending the Term of
this Agreement, commencing upon the expiration of the Initial Term or any extensions thereto, as provided in Section 8.03. 
  

 53 

 (ii) Reservation System - a computerized network of high speed terrestrial and satellite-linked
hardware and data lines connecting hotels, central reservation centers, data processing centers and travel agencies which provides reservations services to hotel brands owned and/or operated by Manager or its affiliates. 
  
 (jj) Reserve Account - an interest-bearing account established for
funds to be held in reserve for FF&E Replacements as set forth in Section 6.07(b) in Owner’s name at a bank selected by Manager over which Manager’s designees shall be the sole authorized signatories. 
  
 (kk) Reserve for FF&E Replacements – amounts paid into the
Reserve Account. 
  
 (ll) Rooms Revenue – all revenue
derived from the rental of guest rooms in the Hotel determined in accordance with the Accounting Principles. 
  
 (mm) Site - the parcel or parcels of real estate more particularly described on Exhibit “A”. 
  
 (nn) System Marks – all service marks, trademarks, copyrights,
trade names, logo types, commercial symbols, patents or other similar rights or registrations now or hereafter held or applied for by Manager or any Affiliate of Manager in connection with the Holiday Inn brand of Hotels. 
  
 (oo) Target Bank Balance – as defined in Section 7.03(a). 
  
 (pp) Yearly Budget – the annual operating budget of the Hotel,
covering a Fiscal Year, as prepared by Manager in accordance with the Accounting Principles and approved by Owner. Such budget may include provision for an operating budget, a business plan, and a Capital Replacement Budget. 
  

 54 

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

			
	 OWNER:
	 	 
	
	 HOTEL VENTURE LIMITED PARTNERSHIP,
 A Delaware limited partnership

	 	 	 
	 By:
	 	 Circa Capital Corporation, a Texas

	 	 	 corporation, its sole general partner

		
	 	 	 By:

	 	 	 Name:

	 	 	 Title:

	
	 Date of Execution:

  

	
	 MANAGER:

	
	 SIX CONTINENTS RESOURCES, INC.,

	 a Delaware corporation

	
	 By:

	 Name:

	 Title:

	
	 Date of Execution:

  

 55 

 EXHIBIT “A” 
  
 SITE LEGAL DESCRIPTION 
  

[TO BE INSERTED] 
  

 56 

 EXHIBIT “B” 
  
 FORM OF OPERATING STATEMENT 
  
 [TO BE INSERTED] 
  

 57 

 EXHIBIT “C” 
  
 MINIMUM INSURANCE COVERAGES 
  
 Commercial property insurance written on all-risk form, including, but not limited to, the following on a full replacement cost basis: fire,
explosion, lightning, windstorm, hail, smoke, riot or civil commotion, vandalism, sprinkler leakage, flood, boiler and machinery. Coverage shall include Business Interruption and Extra Expense. 
  
 Commercial general liability coverage with worldwide jurisdiction (including coverage for
liquor liability, product liability, completed operations, contractual liability and Comprehensive Automobile liability in an amount not less than $20,000,000 per occurrence/per location. 
  
 Workers’ Compensation and Employer’s Liability. 
  
 Comprehensive Crime coverage in an amount equal to not less than $1,000,000. 
  
 All coverages to be written on an occurrence form. 
  

 58 

 EXHIBIT “C-1” 
  
 Manager’s Insurance Requirements 
  

	1.	Comprehensive Crime Insurance covering all of Manager’s employees assigned to the Hotel and/or responsible for handling funds regardless of location. The limits shall be no
less than $500,000 with a deductible no greater than $5,000 per occurrence. 

  

	2.	Workers Compensation and Employer’s Liability with limits of $1,000,000 for accident and disease per accident per employee and policy limit (or qualify as a non-subscriber in
the State of Texas with excess coverage of at least $1,000,000 for the State of Texas). 

  

	3.	Employment Practices coverage with a minimum limit of $1,000,000 and a deductible no greater than $25,000 (in California the deductible shall be no greater than $25,000 plus 10% of
the claim), provided that if the premium cost for this coverage exceeds $2,000 per year, then Manager shall be responsible for payment of any premium cost in excess of $2,000. 

  
 These requirements are minimum requirements and do not serve to limit Manager’s
liability to Owner. Owner agrees that the premiums for coverages provided in 1, 2 and, to the extent provided in 3 above, shall be reimbursed by Owner to Manager to the extent provided in the Yearly Budget. If any such coverages are provided by
Manager under a “blanket” policy of coverage, then such reimbursement shall be on an equitable basis in relation to all other properties also covered under such policy. 
  

 59 

 EXHIBIT “D” 
  
 HOTEL PORTFOLIO 
  

	 	1.	Holiday Inn Hotel Towers - Lubbock, Texas 

	 	2.	Holiday Inn Park Plaza - Lubbock, Texas 

	 	3.	Holiday Inn City Center - Fort Smith, Arkansas 

	 	4.	Holiday Inn – Cheyenne, Wyoming 

	 	5.	Holiday Inn – Billings, Montana 

	 	6.	Holiday Inn – Fresno, California 

  

 60 

 EXHIBIT “E” 
  
 ENHANCEMENT AMORTIZATION 
  

				
	 Period:

	  	Unamortized Balance:

	 Through end of Fiscal Year 1
	  	$	500,000.00
		
	 Through end of Fiscal Year 2
	  	$	450,000.00
		
	 Through end of Fiscal Year 3
	  	$	400,000.00
		
	 Through end of Fiscal Year 4
	  	$	350,000.00
		
	 Through end of Fiscal Year 5
	  	$	300,000.00
		
	 Through end of Fiscal Year 6
	  	$	250,000.00
		
	 Through end of Fiscal Year 7
	  	$	200,000.00
		
	 Through end of Fiscal Year 8
	  	$	150,000.00
		
	 Through end of Fiscal Year 9
	  	$	100,000.00
		
	 Through end of Fiscal Year 10
	  	$	50,000.00

  

 61 

 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN CHEYENNE, WYOMING 
  
 This MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT AGREEMENT FOR THE HOLIDAY INN CHEYENNE, WYOMING, (“Assignment”), is made as of this
22nd day of July, 2003, by and between Hotel Venture Limited Partnership, (“Assignor”), Hotel Venture West, L.P., (“Assignee”), InterContinental Hotels Group Resources, Inc. f/k/a Six Continents Resources, Inc.,
(“Manager”) and Circa Capital Corporation, (“Guarantor”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Assignor is a party to that certain management agreement dated the 31st of May, 2002 by and between Assignor and Manager for the Holiday Inn Cheyenne, Wyoming, (“the Management Agreement”); and, 
  
 WHEREAS, Assignee is a recently formed affiliated entity of Assignor; and,

  
 WHEREAS, Assignor will transfer to Assignee the title to the
hotel which is the subject of the Management Agreement (“the Hotel”); and 
  
 WHEREAS, Manager, pursuant to this Assignment, desires to authorize the transfer of the Management Agreement to Assignee, and, 
  

WHEREAS, Assignor desires to assign to Assignee all of its interest in and to the Management Agreement, and Assignee and Guarantor desire to accept
such assignment, all in connection with the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and upon the conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Manager,
Assignor, Assignee and Guarantor hereby agree as follows: 
  
 1.
Assignment. Assignor hereby assigns, sells, transfers, grants, delivers and conveys to Assignee all of Assignor’s rights in, interest in, and obligations under the Management Agreement. (“Assignment”). 
  
 2. Acceptance and Assumption by Assignee. Assignee hereby accepts said
Assignment and irrevocably assumes and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Assignor under the Management Agreement from and after the effective date
hereof. 
  
 3. Acceptance by Manager. Manager hereby
accepts said Assignment to Assignee, and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Manager under the Management Agreement from and after the date hereof.

 4. Acceptance by Guarantor. Guarantor hereby agrees that Guarantor becomes the guarantor of the
obligations of Assignee under the Management Agreements as if Assignee were identified as the Owner in the 31st of May 2002 Guaranty executed for the benefit of Manager; and, that Guarantor’s obligations to Manager under that Guaranty therefore
have not been released or diminished as a result of this Assignment. 
  
 5. Modification of Management Agreement. Assignor, Assignee, Guarantor and Manager hereby agree that the Management Agreement shall be modified as specified in the attached Exhibit A. 
  
 6. Further Actions. Assignor, Assignee, Manager and Guarantor hereby
agree to take any further actions and to execute any other documents deemed to be reasonably necessary to carry out the purposes of this Assignment. 
  
 7. Modification. No modification, waiver, amendment, discharge or change of this Assignment shall be valid unless the same is in writing and signed
by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. 
  
 8. Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of the parties hereto, and to its respective successors
in interest and assigns. 
  
 9. Effective Date. This
Assignment shall become effective upon the transfer to Assignee of title to the Hotel or                          (date),
whichever is sooner. 
  
 10. Counterparts. This Assignment
may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date and year first above written. 
  
 ASSIGNOR: 
  
 HOTEL VENTURE LIMITED PARTNERSHIP, a Delaware limited partnership. 
  
 BY: CIRCA CAPITAL CORPORATION, a Texas Corporation, its general partner 
  

			
	 By:

	 Name:

	 Title:

  

 2 

 ASSIGNEE: 
  
 HOTEL VENTURE WEST, L.P., a Texas limited partnership 
  
 BY: CIRCA GP WEST, INC. a Texas corporation 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 MANAGER: 
  
 INTERCONTINENTAL HOTELS GROUP RESOURCES, INC., a Delaware Corporation. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 GUARANTOR: 
  
 CIRCA CAPITAL CORPORATION, a Texas Corporation 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 3 

 EXHIBIT A to 
 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN
CHEYENNE, WYOMING 
  
 Section 6.01 Permits. Shall be modified to
read as follows: 
  
 “6.01 Permits. Manager, as an Operating Cost of the
Hotel, shall obtain in the name of the Owner (unless otherwise required by applicable law to be held in the name of Manager) and maintain in full force and effect all necessary operating licenses and permits, including restaurant, sign and hotel
licenses, as may be required for the operation of the Hotel, but excluding the alcoholic beverage permit, which Owner shall obtain. Manager will make all reasonable efforts within its control to comply with conditions or requirements set out in or
imposed by law in connection with any such licenses and permits and at all times to manage the Hotel in accordance with such conditions and any other legal requirements.” 
  
 Section 7.03 Bank Accounts, sub-section (a) shall be modified to read as follows: 
  
 “Section 7.03 Bank Accounts. 
  
 (a) The revenues of the Hotel shall be deposited into one or more Bank
Account(s) established by Manager in Owner’s name at such banks as Manager shall determine. The Bank Accounts will be separate and distinct from any other accounts, reserves or deposits required by this Agreement, and Manager’s designees
who are included in the coverage of any required fidelity or similar insurance will be the only parties authorized to draw upon any Bank Account; provided, however, such designees shall only be authorized to draw upon a Bank Account for purposes
authorized by the terms of this Agreement. Within one (1) business day of the Effective Date, Owner shall deposit in the Bank Accounts designated by Manager the sum of One Hundred Forty-Six Thousand Four Hundred and No/100 Dollars ($146,400.00), as
the minimum working capital for the Hotel. Such amount is based upon the purchasing power of money at the Effective Date and shall be annually increased or decreased with reference to increase or decrease in the Consumer Price Index in order to
retain the same purchasing power. This amount as adjusted shall be the “Target Bank Balance” to be maintained by Owner during the remainder of the Initial Term and any Renewal Term(s). The Target Bank Balance will serve as working capital
for Hotel operations and any interest earned on the Target Bank Balance shall belong to the Hotel. It is acknowledged by Manager and Owner that the Target Bank Balance will fluctuate during each Fiscal Month and that Manager shall have no obligation
to fund any deficiency in the Target Bank Balance. Owner shall, within three (3) business days of receiving written notice from Manager that the actual working capital balance is more than ten percent (10%) less than the Target Bank Balance, furnish
Manager with, or Manager may retain from amounts otherwise distributable to or on behalf of Owner on a monthly basis if available, sufficient funds to make up any deficiency in the Target Bank Balance. Owner acknowledges that the Target Bank Balance
will be administered by Manager on a consolidated basis across the portfolio of hotels owned by Owner and listed on Exhibit “D” attached hereto. Notwithstanding the provisions of this Section 7.03(a) and Section 9.02 to the
contrary, Owner and Manager agree that the obligation of Owner to fund deficits in the Target Bank Balance and the obligations of Manager to disburse excess funds above the Target Bank Balance shall be determined on a consolidated basis for all such
hotels.” 
  

 4 

 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN CHEYENNE, WYOMING 
  
 This MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT AGREEMENT FOR THE HOLIDAY INN CHEYENNE, WYOMING (“Second Assignment”), is made
as of this          day of June, 2004, by and between Hotel Venture West, L.P., (“Assignor”), Circa Capital Corporation (“Circa”), InterContinental Hotels Group Resources, Inc. f/k/a
Six Continents Resources, Inc., (“Manager”), Capital Lodging TRS HV West Operations, Inc. (“Assignee”), and Capital Lodging, a Maryland real estate investment trust (“Guarantor”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Assignor, an affiliate of Circa, is a party to that certain
management agreement dated the 31st of May, 2002 by and between Assignor, Manager and Circa for the Holiday Inn
Cheyenne, Wyoming, as modified by the Modification, Assignment and Assumption of Management Agreement for the Holiday Inn Cheyenne, Wyoming dated July 22, 2003 (the “Management Agreement”); 
  
 WHEREAS, Assignor has agreed to transfer, convey and assign to Capital
Lodging HV West Properties, L.P., a Delaware limited partnership and subsidiary of Guarantor (“New Hotel Owner”), all of Assignor’s interest in and to the hotel which is the subject of the Management Agreement (the “Hotel”),
as provided in that certain Agreement for Purchase and Sale and Joint Escrow Instructions, between Assignor, as Seller, the other Sellers named therein and AP/APMC Partners, LLC, a Delaware limited liability company, as Buyer (the “Purchase
Agreement”); and AP/APMC Partners, LLC will assign all of its interest in and to the Purchase Agreement with respect to the Hotel to New Hotel Owner concurrently with the transfer of the Hotel pursuant to the Purchase Agreement; 
  
 WHEREAS, New Hotel Owner will enter into a lease agreement with Assignee with
respect to the Hotel; 
  
 WHEREAS, Assignee will enter into a new
license agreement with Holiday Hospitality Franchising, Inc. with respect to the Hotel; 
  
 WHEREAS, Manager, pursuant to this Second Assignment, desires to authorize the transfer of the Management Agreement to Assignee; 
  

WHEREAS, Assignor desires to assign to Assignee all of its interest in and to the Management Agreement, and Assignee and Guarantor desire to accept
such assignment, all in connection with the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and upon the conditions contained herein, and for other good and valuable consideration, the receipt 

 and sufficiency of which are hereby acknowledged, Manager, Assignor, Assignee and Guarantor hereby agree as follows:

  
 1. Assignment. Assignor hereby assigns, sells,
transfers, grants, delivers and conveys to Assignee all of Assignor’s rights in, interest in, and obligations under the Management Agreement (“Assignment”). 
  
 2. Acceptance and Assumption by Assignee. Assignee hereby accepts said Assignment and irrevocably assumes and agrees
to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Assignor under the Management Agreement from and after the effective date hereof. 
  
 3. Acceptance by Manager. Manager hereby accepts said Assignment to
Assignee, and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Manager under the Management Agreement from and after the date hereof. 
  
 4. Acceptance by Guarantor. Guarantor hereby agrees that Guarantor
becomes the guarantor of the obligations of Assignee under the Management Agreements as if Assignee were identified as the Owner in the 31st of May, 2002 Guaranty executed for the benefit of Manager; and, that Guarantor’s obligations to Manager under the Guaranty therefore have not been released or diminished as a result of this Agreement. 
  
 5. Modification of Management Agreement. Assignor, Assignee, Guarantor
and Manager hereby agree that the Management Agreement shall be modified as specified in the attached Exhibit A. 
  
 6. Further Actions. Assignor, Assignee, Manager and Guarantor hereby agree to take any further actions and to execute any other documents deemed to
be reasonably necessary to carry out the purposes of this Agreement. 
  
 7. Modification. No modification, waiver, amendment, discharge or change of this Second Assignment shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is or may be sought. 
  
 8.
Successors and Assigns. This Second Assignment shall be binding upon and inure to the benefit of the parties hereto, and to its respective successors in interest and assigns. 
  
 9. Effective Date. This Second Assignment shall become effective upon the Closing Date, as defined in the Purchase
Agreement. If the Closing Date does not occur as provided in the Purchase Agreement, then this Second Assignment shall be null and void and of no further force and effect, and (a) Assignor shall continue to be responsible for all obligations under
the Management Agreement, (b) the request for Manager’s approval of the assignment contemplated by this Second Assignment shall be deemed 
  

 Page 2 of 6 

 withdrawn, unapproved and without any force or effect, and (c) Manager shall continue to manage the Hotel in accordance
with the terms of the Management Agreement. 
  
 10.
Counterparts. This Second Assignment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 
  
 11. Release of Assignor and Circa. Assignor, Circa and Manager release
one another from any further claims or obligations of any nature whatsoever in any way which may arise out of the Management Agreement from and after the Effective Date. Notwithstanding the foregoing, such release shall not be effective with respect
to any claims or liabilities existing as of the Effective Date, known or unknown, for which Manager, Assignor and/or Circa may be liable. 
  
 12. Retention of Accounting Information. Manager shall perform all necessary actions as called for under Section 16.03 of the Management Agreement
or as otherwise appropriate in order to provide Assignor with a true and accurate final accounting of Assignor’s ownership period (“Assignor’s Information”) and to wind up Assignor’s accounts and affairs in a timely and
efficient manner. Inasmuch as Manager will continue to operate the Hotel, Manager will not be required to turn over all the books and records of the Hotel to Assignor as provided in Section 16.03(e) of the Management Agreement, and Manager will
continue to be responsible for maintaining such books and records for so long as Manager continues to operate the Hotel; provided, however, Manager will keep Assignor’s Information and make same available to Assignor for no less than three
years from the date hereof (the “Safekeeping Period”). Manager agrees to continue to cooperate with Assignor in responding to any inquiries or audits pertaining to Assignor’s period of ownership. If Manager ceases to manage the Hotel
prior to the expiration of the Safekeeping Period, Manager will contact Assignor to obtain instructions for the final disposition of Assignor’s Information. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Second Assignment as of the date and year first
above written. 
  
 ASSIGNOR: 
 HOTEL VENTURE WEST, L.P., a Texas limited partnership 
  
 BY: CIRCA GP WEST, INC., a Texas corporation, its general partner 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 CIRCA CAPITAL CORPORATION, a Texas corporation 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 ASSIGNEE: 
 CAPITAL LODGING TRS HV WEST OPERATIONS, INC., a Delaware corporation 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 MANAGER: 
 INTERCONTINENTAL HOTELS GROUP RESOURCES, INC., a Delaware corporation. 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 GUARANTOR: 
 CAPITAL LODGING, a Maryland real estate investment trust 

			
		
	By:	 	 
	Name:	 	Edward J. Rohling
	Title:	 	President and Chief Executive Officer

  

 Page 4 of 6 

 EXHIBIT A to 
 SECOND ASSIGNMENT 
  

	1.	The following sentence shall be added to the end of Section 2.04 (a): For the Fiscal Year 2004, the budgeted Gross Operating Profit shall be $1,825,821 for purposes of the
Performance Test. 

  

	2.	The first sentence of Section 2.04(b) shall be replaced with the following: “Notwithstanding subsection (a) above, Owner shall not be entitled to exercise such termination
right if, within sixty (60) days following Manager’s receipt of Owner’s written notice of termination, Manager cures such failure by paying into the Bank Account the shortfall between the Hotel’s actual Gross Operating Profit and
ninety percent (90%) of budgeted Gross Operating Profit (as determined pursuant to the Yearly Budget) for such Fiscal Year.” 

  

	a.	 	Section 2.05 shall be amended to delete the date at the end of the first sentence and replace it with the following: February 6, 2008. 

  

	3.	Section 6.07(b) shall be amended by deleting the ninth sentence of that section and inserting the following in its place: 

  
 “To the extent funds in the Reserve Account are insufficient at any
time or to the extent such funds plus anticipated contributions for the ensuing year are less than the budget for FF&E Replacements for the ensuing year, Owner shall provide the necessary funds to Manager within thirty (30) days of delivery of
notice to that effect from Manager.” 
  

	4.	The following section shall be added to Article 23: 

  
 Section 23.09: Eligible Independent Contractor. During the Term of this Agreement, Manager shall at all times qualify as an “eligible
independent contractor” (an “Eligible Independent Contractor”) within the meaning of Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the “Code”). To that end, Manager covenants that, during the Term of
this Agreement: 
  
 (a) Manager shall not conduct
or permit wagering activities at any of the Hotels; 
  

 Page 5 of 6 

 (b) Manager shall not own (within the meaning of Section 856(d)(5) of the Code) more than
twenty-five percent (25%) of the outstanding stock of Capital Lodging, a Maryland real estate investment trust (“Capital Lodging”); 
  
 (c) no more than thirty-five percent (35%) of either (i) the total combined voting power in Manager (determined by reference to interests
in the capital stock of Manager) or (ii) the total shares of all classes of capital stock of Manager shall be owned (within the meaning of Section 856(d)(5) of the Code) by one or more persons owning (within the meaning of Section 856(d)(5) of the
Code) in the aggregate thirty-five percent (35%) or more of the outstanding stock of Capital Lodging; 
  
 (d) Manager (or a person who is a “related person,” within the meaning of Section 856(d)(9)(F) of the Code (a “Related
Person”), with respect to Manager) shall be actively engaged in the trade or business of operating “Qualified Lodging Facilities,” as defined below, for one or more persons who are not Related Persons with respect to Capital Lodging
or Owner (“Unrelated Persons”). For purposes of determining whether the requirements of this Section 23.09(d) have been met, Manager shall be treated as being actively engaged in such a trade or business if Manager (i) derives at least ten
percent (10%) of both its profits and revenues from operating Qualified Lodging Facilities for Unrelated Persons, or (ii) complies with any regulations or other administrative guidance under Section 856(d)(9) of the Code with respect to the amount
of hotel management business with Unrelated Persons that is necessary for Manager to qualify as an Eligible Independent Contractor. 
  
 (e) For purposes of this Section 23.09, a “Qualified Lodging Facility” means a Lodging Facility, as defined below, unless
wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is fully authorized to engage in such activities at or in connection with such facility. A
“Lodging Facility” is a hotel, motel, or other establishment more than one-half of the dwelling units in which are used on transient basis, and includes customary amenities and facilities operated as part of, or associated with, the
lodging facility so long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners who are Unrelated Persons. 
  

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