Document:

Master Lease Assignment Agreement

 Exhibit 10.1 
  
 MASTER LEASE ASSIGNMENT AGREEMENT 
  
 This Master Lease Assignment Agreement (the “Agreement”) is made as of this 8th day of August, 2003
by and among Innkeepers USA Trust, a Maryland real estate investment trust (the “REIT”), Innkeepers USA Limited Partnership, a Virginia limited partnership (“Innkeepers USA Partnership”) (of which a wholly-owned
subsidiary of the REIT is the general partner and of which the REIT indirectly owns the substantial majority of the partnership interests) and its subsidiaries described on Exhibit A(1) hereto (each, a “Lessor” and
collectively, the “Lessors”), each of the subsidiaries of the REIT set forth on Exhibit A(2) hereto (each, a “TRS Lessee” and collectively, the “TRS Lessees” and together with the
Lessors, Innkeepers USA Partnership and the REIT, the “REIT Parties”), Innkeepers Hospitality, Inc. and certain related entities (collectively, the “IH Entities,” each of which is set forth on Exhibit
A(3) attached hereto and which is individually referred to herein as a “Lessee” and which are collectively referred to herein as the “Lessees”), and Innkeepers Hospitality Management, Inc., a Florida
corporation under common control with the IH Entities (the “IH Manager”). 
  
 RECITALS 
  
 WHEREAS, the REIT beneficially owns interests in 67 hotels through its indirect ownership of partnership interests in Innkeepers USA Partnership and the Lessors; 
  
 WHEREAS, through various REIT Parties, 61 of such hotels have been leased to certain of the IH Entities; 
  
 WHEREAS, in effectuating the lease of such hotels, the Lessors (which are
certain of the REIT Parties) and the Lessees (which are certain of the IH Entities) have entered into those certain Lease Agreements set forth on Exhibit B(1) attached hereto (each such agreement, as amended, individually being a
“Lease,” and all such agreements, as amended, collectively being the “Leases”) for certain hotels (all of which hotels are described on Exhibit B(2) attached hereto (individually, a
“Hotel” and, collectively, the “Hotels”)); 
  
 WHEREAS, the Lessees have entered into certain franchise agreements (identified on Exhibit C(1), the “Franchise Agreements”) with respect to the Hotels; 
  
 WHEREAS, the Lessees self-manage all of the Hotels; 

 
 WHEREAS, the REIT desires to take advantage of the provisions of the
so-called “REIT Modernization Act” (the “Act”) and create so-called “taxable REIT subsidiaries” to lease the Hotels and engage the IH Manager to act as an “eligible independent contractor” (as defined
in Section 856(d)(9) of the Internal Revenue Code) and manage such Hotels pursuant to management agreements, all as permitted by the Act; and 
  
 WHEREAS, the parties desire, subject to the terms and conditions set forth in this Agreement, to (a) assign to the TRS Lessees the Leases, (b) assign the
Franchise Agreements to the TRS Lessees or have reissued to the TRS Lessees new franchise agreements in substitution for the existing Franchise Agreements, and (c) enter into management agreements between the TRS Lessees and the IH Manager pursuant
to which the IH Manager will manage the Hotels, all 

 
effective as of the Lease Assignment Time (as defined herein) or as otherwise contemplated by this Agreement. 
  
 AGREEMENTS 
  
 NOW, THEREFORE, in consideration of the foregoing recitals, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. Definitions. Defined terms shall have the meaning ascribed to them either in this Agreement or on Attachment 1 attached hereto
(which is expressly made part of this Agreement). 
  
 2.
Assignment of Leases and Certain Related Matters. 
  
 (a)
Subject to the terms and conditions set forth herein, the REIT Parties and the IH Entities shall cause the Leases to be assigned to the applicable TRS Lessees, by execution of a Lease Assignment Agreement, in substantially the form of Exhibit
2(a) attached hereto, effective as of 11:59 p.m. on the Assignment Date (such date and time of assignment being the “Lease Assignment Time”), and from and after such assignment no party to the Leases shall have any
obligations or liabilities thereunder to the other party except with respect to (i) rent and other obligations and liabilities accruing or for periods prior to the Lease Assignment Time, (ii) such terms and conditions of such Leases that expressly
survive the assignment thereof and (iii) any breaches thereof by any party thereto arising, or with respect to matters or periods occurring, prior to such Lease Assignment Time. Upon such assignment, the applicable Lessee shall immediately surrender
to the applicable Lessor control of the premises subject to the applicable assigned Lease and, in connection therewith, shall remise, release, surrender and quitclaim unto the applicable TRS Lessees all right, title and interest of such Lessee in
and to the Lease relating to the Hotel as to which such Lease has been assigned. Subject to the terms and conditions set forth herein, the parties shall each use their good faith commercially reasonable efforts to obtain all consents of third
parties necessary to the assignment of the Leases to be assigned pursuant to this Section 2(a). 
  
 (b) Franchise Agreements. 
  
 (i) Subject to the terms and conditions set forth herein, the IH Manager and the Lessee for each Hotel shall exercise their good faith
commercially reasonable efforts, with respect to each Franchise Agreement and at the option of the REIT, to either (1) assist the applicable TRS Lessee and the Lessor in obtaining a replacement franchise agreement of the same brand for the balance
of the term of the current applicable Franchise Agreement in favor of the applicable TRS Lessee or (2) obtain assignments of such Franchise Agreements in favor of the applicable TRS Lessee, consented to in writing by the applicable franchisor, for
the balance of the term of the current Franchise Agreement, in each case, effective as of the Lease Assignment Time (or such other date and time as may be requested by the REIT), including, without limitation, executing any assignment or termination
agreements or other documents reasonably required by the franchisors to effect such assignment or termination and which are not inconsistent with 

  

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the terms and conditions of this Agreement. 
  
 (ii) Notwithstanding Section 2(b)(i) above, if the REIT determines, in its sole discretion, that the terms and conditions with respect to
the issuance of a particular replacement Franchise Agreement or the assignment of a particular Franchise Agreement, including, without limitation, a franchisor’s Product Improvement Plan (“PIP”), new franchise terms and
conditions or change of ownership terms or conditions or costs related to any of the foregoing, are unreasonable or unacceptable, the REIT may elect to so notify the applicable Lessee of such determination, in which event, at the direction of the
REIT, (1) the Hotel subject thereto may be excluded from the applicable Closing or (2) such Hotel may be included in the applicable Closing and the Lessee shall maintain the Franchise Agreement for that Hotel, subject to the right of the REIT or the
TRS Lessees subsequent to the Assignment Date to require the Lessee and the IH Manager to use their good faith commercially reasonable efforts to transfer the franchise license and assign the applicable Franchise Agreement to the applicable TRS
Lessee or a designee thereof at any time upon reasonable notice from the REIT, but subject to franchisor consent, upon terms and conditions of assignment acceptable to the REIT and the Lessee. In the event that such Hotel is so included in the
applicable Closing, the TRS Lessee shall pay the applicable franchise fees under such Franchise Agreement and the TRS Lessee, the Lessee and IH Manager shall cooperate and enter into such reasonable arrangements as between themselves and the TRS
Lessee as may be necessary or appropriate to provide the benefits, subject to the detriments, of such Franchise Agreement to the TRS Lessee with respect to the applicable Hotel to the same extent as that possessed by the current Lessee. 

 
 (iii) Except with respect to any Franchise Agreement(s)
maintained by the Lessees after the applicable Assignment Date pursuant to Section 2(b)(ii) hereof, the parties shall exercise their good faith commercially reasonable efforts to obtain from each franchisor a release of the applicable Lessee from
all liabilities arising under each Franchise Agreement or any other related agreement, in each case, for periods and related liabilities from and after the Lease Assignment Time, and the parties shall execute and deliver all documents reasonably
required by franchisors in connection therewith (other than indemnity agreements) and which are reasonable for the applicable Lessee to execute; provided, however, it is understood and agreed that the failure to obtain such a release shall not be a
condition to close the transaction contemplated by this Agreement; provided further that in obtaining such releases the REIT Parties shall have no obligation to incur any liability under or with respect to such Franchise Agreement other than for
periods from and after the Lease Assignment Time for which the applicable TRS Lessee is the franchisee thereunder, and the Lessees shall have no obligation to incur any liability under or with respect to such Franchise Agreement other than for
periods prior to the Lease Assignment Time for which the applicable Lessee was the franchisee thereunder. 
  
 (iv) The REIT Parties will bear all documented change of ownership fees, termination fees, PIP costs and/or other fees and costs required
by the franchisors and incurred in connection with Sections 2(b)(i) and (ii) hereof. Notwithstanding the foregoing, the Lessees will continue to pay when due, and will be responsible for, all fees 

  

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payable under the Franchise Agreements through the assignment thereof. Upon request by the REIT Parties, the Lessees will request and shall use good faith
commercially reasonable efforts to obtain from the franchisors, and deliver to the REIT Parties upon receipt, estoppel letters with respect to the Franchise Agreements. 
  
 (c) Contracts. Subject to the terms and conditions set forth herein, the Lessees shall use their good faith
commercially reasonable efforts (such efforts to include, without limitation, obtaining any necessary consents to assignment) to cause all Contracts related to a Hotel, including, without limitation, insurance policies, to be assigned to either the
applicable TRS Lessee or the IH Manager, as directed by the REIT, effective as of the Lease Assignment Time with respect to such Hotel, and the applicable TRS Lessee or the IH Manager, as the case may be, shall, as of such time, assume such
Contracts which are so properly assigned; provided, however, that the applicable TRS Lessee or the REIT (with respect to such TRS Lessee) may elect (by written notice delivered to the applicable Lessee no less than ten (10) days prior to the
applicable Assignment Date) (i) for the applicable IH Entity to maintain any Contract in connection with, and for the benefit of, the IH Manager in the operation of such Hotel or (ii) not to accept and assume (or not to direct the IH Manager to
accept and assume) any Contract, in which event the applicable Lessee shall use its good faith commercially reasonable efforts to terminate such Contract as of (or as soon as practicable after) the applicable Assignment Date pursuant to the terms
and conditions thereof (in which event the REIT Parties shall pay all costs associated with terminating such Contract, other than costs associated with arrearages and/or defaults). In the event of such termination of any such Contract, the IH
Manager will use its good faith commercially reasonable efforts to obtain (and to take all necessary action to assist the applicable TRS Lessee in obtaining) a replacement contract reasonably acceptable to the REIT or the applicable TRS Lessee. Any
such Contracts held in the name of the IH Manager will be held for the benefit of the applicable TRS Lessee in connection with the operation of the Hotel by the IH Manager pursuant to the applicable Management Agreement. 
  
 (d) Licenses. Subject to the terms and conditions set forth herein,
the Lessees shall use their good faith commercially reasonable efforts (such efforts to include, without limitation, obtaining any necessary consents to assignment) to cause all Licenses related to a Hotel to be assigned to either the applicable TRS
Lessee or the IH Manager, as directed by the REIT, effective as of the Lease Assignment Time with respect to such Hotel, and the applicable TRS Lessee or the IH Manager, as the case may be, shall, as of such time, assume such Licenses which are so
properly assigned; provided, however, that the applicable TRS Lessee or the REIT (with respect to such TRS Lessee) may elect (by written notice delivered to the applicable Lessee no less than ten (10) days prior to the applicable Assignment Date)
(i) for the applicable IH Entity to maintain any License in connection with, and for the benefit of, the IH Manager in the operation of such Hotel or (ii) not to accept and assume (or not to direct the IH Manager to accept and assume) any License,
in which event the Lessee shall use its good faith commercially reasonable efforts to terminate such License as of (or as soon as practicable after) the applicable Assignment Date pursuant to the terms and conditions thereof (in which event the REIT
Parties shall pay all costs associated with terminating such License, other than costs associated with arrearages and/or defaults). In the event of such termination of any such License, the IH Manager will use its good faith commercially reasonable
efforts to obtain (and to take all necessary action to assist the applicable TRS Lessee in obtaining) a replacement license (including liquor licenses) reasonably acceptable to the REIT or the applicable TRS Lessee. Any such Licenses 

  

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held in the name of the IH Manager will be held for the benefit of the applicable TRS Lessee in connection with the operation of the Hotel by the IH Manager
pursuant to the applicable Management Agreement. 
  
 3.
Consents. 
  
 (a) If the parties are unable to obtain on or
prior to the initial Closing, on the terms contemplated by this Agreement, all the consents necessary to (1) the assignment of one or more of the Leases hereunder, (2) the assignment or re-issuance of a Franchise Agreement hereunder (or to the
Franchise Agreement otherwise remaining in effect pursuant to the terms of Section 2(b) above) or (3) the assignment of all Contracts, Licenses and Leasehold Assets with respect to a particular Hotel which if not obtained and if the transactions
contemplated by this Agreement were closed would materially adversely affect such Hotel or the applicable REIT Party, the applicable IH Entity or the IH Manager with respect thereto, then in each such case, the Lease assignment and the other
transactions contemplated hereby shall not occur until such time as the foregoing no longer applies with respect to such Hotel (or the REIT, the applicable TRS Lessee and the applicable Lessee all agree to proceed to a Closing with respect to such
Hotel without regard to the foregoing), at which time the Lease with respect to such Hotel shall be assigned and the related transactions as described herein as to such Lease and such Hotel shall close in accordance with the terms hereof as soon as
practicable thereafter. In the event any Leases are not assigned as contemplated by the foregoing, for purposes of payments to be made at the initial Closing, the Aggregate Lease Assignment Payment (as defined herein) shall be reduced by the net
positive aggregate amount, if any, of the Individual Lease Assignment Payments (as defined herein) for all such Leases not so assigned, and upon the subsequent assignment as to such a Lease as contemplated above and a Closing of the transaction
contemplated hereby with respect thereto, the REIT Parties will make the Individual Lease Assignment Payment with respect to such Lease to the applicable IH Entity, enter into the applicable Management Agreement with respect thereto as contemplated
by Section 4 below (such Individual Lease Assignment Payment with respect to such Lease will be paid by wire transfer of immediately available funds to such bank account(s) as the applicable IH Entity shall specify (by written notice delivered to
the REIT Parties not less than three (3) business days prior to the required payment date) within five (5) business days after the date of such assignment); provided, however, that if the applicable Individual Lease Assignment Payment is less than
zero, then the REIT Parties shall make no such payment and shall instead be entitled to a credit (to be utilized at the discretion of the REIT Parties) against any amounts then owing or in the future owing to any of the IH Entities or the IH
Manager. As to any such consents which are not so obtained on or prior to the applicable Closing Date, the IH Entities and the IH Manager shall continue to use their good faith commercially reasonable efforts to obtain such consents after the
applicable Closing Date. Notwithstanding anything contained in this Agreement to the contrary, in no event shall the REIT Parties be required to pay more than $5,250,000 in the aggregate at any time with respect to Individual Lease Assignment
Payments. 
  
 (b) As to any such Leases which are not, pursuant to
Section 3(a), assigned as of the initial Closing, the Lessees will continue to pay all Rent (under each such Lease) due and owing through the actual assignment time for such Lease and the actual parties to such Leases, and the related Franchise
Agreements, Contracts and Licenses, shall continue to be entitled to the economic benefits, and bear the economic burdens, thereof until such actual assignment and the 

  

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consummation of the transactions contemplated by this Agreement with respect thereto. 
  
 (c) Notwithstanding the provisions of this Section 3 or otherwise in this Agreement, the IH Entities and the IH Manager
expressly acknowledge and agree that the consummation of the transactions contemplated by this Agreement is conditioned upon (subject to waiver by the REIT) obtaining (i) those consents and agreements (including, without limitation, as to Franchise
Agreements, Contracts, Licenses, Leasehold Assets and with respect to loans secured by a Hotel (including consents and agreements of applicable lenders and third parties such as rating agencies with respect thereto)) which are necessary to the
assignment of the Leases, or otherwise material with respect to the consummation of the transaction contemplated hereby, for those certain Hotels listed on Exhibit 3(c) attached hereto and (ii) those consents necessary to the
assignment of the Leases, or otherwise with respect to the consummation of the transaction contemplated hereby, which if not obtained in connection with the consummation of the transaction contemplated hereby could reasonably be expected to have a
Material Adverse Effect (as defined herein) on the REIT or materially and adversely affect the benefits to the REIT of the transactions contemplated by this Agreement (the consents in clauses (i) and (ii) collectively being the “Material
Lease Assignment Consents”). 
  
 (d) Certain Special
Arrangements. Any other provision of this Agreement to the contrary notwithstanding, this Agreement shall not constitute an agreement to assign, or an assignment of, any Contract, License or Leasehold Asset, or any benefit arising thereunder or
resulting therefrom, if an attempt at such an assignment thereof without the consent required or necessary for such assignment, would constitute a material breach thereof or in any way materially and adversely affect the rights of any of the REIT
Parties or IH Entities thereunder. In such event, the REIT Parties, the IH Entities and the IH Manager shall cooperate in such arrangements, as reasonably requested by any such party, as will provide for the benefits (subject to the detriments)
under or with respect to such Contract, License or Leasehold Asset in connection with the operation of the Hotel pursuant to the applicable Management Agreement. Such arrangements may include, without limitation, and at the applicable party’s
request shall include, an arrangement pursuant to which the applicable IH Entities shall, subject to reasonable indemnity, nominally perform a Contract, or act with respect to a License or Leasehold Asset, but the REIT Parties and the IH Manager
shall in connection with the operation of the Hotel pursuant to the applicable Management Agreement obtain the economic benefits (and detriments) of such Contract, License or Leasehold Asset, as the case may be. Cooperation shall also include, with
respect to matters covered by this Section 3(d), the IH Entities’ collection of any monies owed to the IH Entities under an asset subject hereto, all for the benefit of the applicable party, and remittance to the applicable party net of any
cost or expense to the IH Entities. It is understood and agreed that the REIT Parties shall not be required to enter into any arrangements pursuant to this Section 3(d) and any arrangements that may be so entered into shall be acceptable to the REIT
Parties and the IH Entities in their reasonable discretion. 
  
 4.
Payments, New Management Agreements and Certain Related Matters. In consideration of the transactions contemplated by this Agreement: 
  
 (a) Leasehold Assets. Subject to the terms and conditions set forth herein, at the applicable Closing the applicable Lessees shall convey, assign
and deliver the Leasehold Assets (as defined herein), for each Hotel as to which a Lease is to be assigned, to the applicable 

  

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TRS Lessees, all as of the Lease Assignment Time (it being understood and agreed that no consideration other than the consideration as expressly contemplated
by this Agreement shall be due or owed in connection therewith). 
  
 (b) New Management Agreements. Subject to the terms and conditions set forth herein, on the Assignment Date, the applicable TRS Lessees shall enter into a management agreement with the IH Manager for each of the Hotels as to which
the applicable Lease has been assigned to the TRS Lessee, such management agreement to be in substantially the form attached hereto as Exhibit 4(b) (the “Management Agreement”) and to be effective as of the applicable
Lease Assignment Time. 
  
 (c) Payments. 
  
 (i) Assignment Consideration. As consideration for
the assignment of the Leases, on the first business day following the initial Closing Date (or such other date pursuant to Section 3 hereof), the REIT Parties shall deliver to the Lessees $5,250,000 (the “Aggregate Lease Assignment
Payment”), as adjusted if required pursuant to Sections 3(a) or 10 hereof, if applicable, and as further adjusted as provided in Section 4(c)(ii) below, by wire transfer of immediately available funds to such bank account(s) as the Lessees
shall specify (by written notice delivered to the REIT Parties not less than three (3) business days prior to the initial Closing Date). The Aggregate Lease Assignment Payment shall be allocated to the Leases for the applicable Hotels as described
in Exhibit 4(c)(i) hereto (as so allocated to a particular Hotel, an “Individual Lease Assignment Payment”). 
  
 (ii) Operational Settlement. 
  
 (1) Preliminary Operational Settlement. The applicable Lessee, using its good faith efforts, shall prepare, or cause its accountants to prepare, a
preliminary operational settlement statement (the “Preliminary Operational Settlement Statement”) allocating and prorating as of the Lease Assignment Time all of the items described on Exhibit 4(c)(ii) hereto with
respect to each of the Hotels in the manner described in said Exhibit 4(c)(ii) and calculating the appropriate credits to be given to the REIT Parties and the Lessees as adjustments to each Individual Lease Assignment Payment (it being
understood and agreed that such adjustment shall also adjust the Aggregate Lease Assignment Payment). The applicable Lessee shall cause such Preliminary Operational Settlement Statement to be delivered to the REIT Parties three (3) business days
prior to the initial Closing on the basis of a good faith estimate of the amounts of the allocations and prorations as of the Lease Assignment Time. Such estimated amounts shall be used for purposes of making the Aggregate Lease Assignment Payment
on the first business day following the initial Closing Date and which estimated amounts shall be finally adjusted as set forth below and a final payment shall be made, in the manner set forth below, with respect thereto to the appropriate party
after such final adjustment with respect thereto. If any of the REIT Parties, in good faith, object to any of the estimates used for such prorations or allocations, the REIT Parties shall provide their good faith alternative estimations of such
allocations 

  

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and prorations and such allocations and prorations as estimated by the REIT Parties shall be used for purposes of calculating the Preliminary Operational
Settlement Statement and the payments to be made on the first business day following the initial Closing Date, subject to adjustments as contemplated below. In the event that a Hotel is not included in the initial Closing, the Preliminary
Operational Settlement Statement for such Hotel shall be prepared and delivered in accordance with the foregoing provisions of this Section 4(c)(ii)(1) in connection with the actual Closing of the transaction contemplated hereby with respect to such
Hotel. 
  
 (2) Final Operational Settlement. Within ninety
(90) days after the initial Closing, the applicable Lessee, using its good faith efforts, shall prepare, or cause its accountants to prepare, and deliver to the REIT a final operational settlement statement (the “Final Operational Settlement
Statement” and together with the Preliminary Operational Settlement Statement, the “Settlement Statements”) re-allocating and re-prorating (based on the actual amounts) as of the Lease Assignment Time all of the items
described on Exhibit 4(c)(ii) hereto with respect to each of the Hotels as to which the Leases were assigned at the initial Closing, in the manner described in said Exhibit 4(c)(ii) and re-calculating the appropriate
credits to be given to the REIT Parties and the Lessees as final adjustments to each Individual Lease Assignment Payment which were paid in connection with the initial Closing (it being understood and agreed that such adjustment shall also adjust
the Aggregate Lease Assignment Payment). In the event the parties have not agreed on the Final Operational Settlement Statement within thirty (30) days after it is prepared and delivered to the REIT with respect to the adjustments required to be
made pursuant to this Section 4(c)(ii), upon application by any such party, a certified public accountant reasonably acceptable to the parties hereto shall determine any such adjustments which have not theretofore been agreed to by the parties
hereto. The charges for such accountant shall be borne equally by the parties to such disputed adjustment. All adjustments to be made as a result of the final calculation shall be paid to the party entitled to such adjustment within thirty (30) days
after the final determination thereof as contemplated above, by wire transfer of immediately available funds to such bank account(s) as such party shall specify (by written notice delivered to the party making such payment not less than three (3)
business days prior to the required payment date). With respect to each Hotel in which the Lease is assigned pursuant to the terms of this Agreement after the initial Closing, and as to which a Preliminary Operational Settlement Statement has been
prepared in connection with the actual Closing of the transactions contemplated hereby with respect to such Hotel, a Final Operational Settlement Statement, and any adjustments and payments, if any resulting therefrom, shall be calculated and made
with respect to such Hotel after such actual Closing for such Hotel consistent with the provisions of this paragraph. In the event that costs and expenses are determined after final adjustments are made and paid, re-allocations and re-prorations
shall be made and the appropriate credits shall be re-calculated from time to time, and any resulting adjustments shall be paid consistent with the principles of this Section 4(c)(ii)(2) as if such re-allocations, re-prorations, re-calculations and
adjustments had been 

  

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timely made. 
  
 (3) Inspection. In connection with the foregoing, the parties shall have a right to inspect and audit the other parties’ books and records
relating to estimates, allocations, prorations, re-allocations and re-prorations, provided that such inspection or audit is conducted on a reasonable basis and at the offices of the party who is subject to such inspection or audit. Each affected
party shall bear its own costs with respect to such inspections. 
  
 (4) GAAP. All calculations on the Settlement Statements shall be made on an accrual basis in accordance with GAAP. 
  
 (iii) Payments by Lessees. On the applicable Closing Date with respect to a Hotel, the applicable Lessee with respect to such Hotel
shall (1) pay in addition to all other amounts called for under this Agreement all Rent (as defined in the applicable Lease) and other amounts due under the Lease relating to such Hotel with respect to all days through the Lease Assignment Time, (2)
pay all franchise fees due under the Franchise Agreement relating to such Hotel as of the Lease Assignment Time and (3) make provisions reasonably acceptable to the REIT for payment of all trade payables, including, without limitation, franchise
fees not due as of the Lease Assignment Time, with respect to all days through the Lease Assignment Time with respect to such Hotel. Such trade payables, if not paid as of the Lease Assignment Time, will be paid by the IH Entities when and as they
become due. Notwithstanding anything to the contrary contained in this Agreement, the Aggregate Lease Assignment Payment shall not be required to be paid to the extent all Rent and such other amounts through and including the Assignment Date have
not been paid (including through the settlement process) and all such trade payables have not so been paid (including through the settlement process) or with respect to which such provision has not been made. 
  
 5. Representations and Warranties. 
  
 (a) Notwithstanding any notices, knowledge or investigation to, of or by the
REIT or any of the REIT Parties, as an inducement to the REIT Parties to enter into this Agreement and to consummate the transactions contemplated herein, each of the IH Entities and the IH Manager hereby jointly and severally represent and warrant
to the REIT Parties that: 
  
 (i) Each of the IH
Entities and the IH Manager is duly organized or formed, validly existing and in good standing under the laws of the state of its formation. Each of the IH Entities and the IH Manager has full power and authority to carry on the businesses in which
it is engaged and to own, lease and use the properties owned, leased and used by it. 
  
 (ii) Each of the IH Entities and the IH Manager has full corporate power and authority to enter into and perform (1) this Agreement and
(2) all other documents and instruments to be executed by any of the IH Entities or the IH Manager pursuant to this Agreement (such other documents and instruments collectively, the “IH Ancillary Documents”). Each of this Agreement
and the IH Ancillary Documents have been (or 

  

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will be) duly executed and delivered by duly authorized officers or representatives, as the case may be, of the IH Entities and the IH Manager, as the case
may be. Each of this Agreement and the IH Ancillary Documents constitutes a valid and legally binding obligation of the IH Entities and the IH Manager signatory thereto, enforceable against each of such IH Entities and the IH Manager in accordance
with its terms (except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief, specific performance and other equitable
remedies). All actions on the part of each of the IH Entities and the IH Manager and their officers, directors, shareholders and other constituents which are necessary to approve this Agreement, the IH Ancillary Documents and the consummation of the
transactions contemplated by this Agreement have been taken and no other or further corporate act or proceeding on the part of any of the IH Entities or the IH Manager or other act of or by their officers, directors, shareholders and other
constituents is necessary to authorize this Agreement, the IH Ancillary Documents or the consummation of the transactions contemplated hereby and thereby. 
  
 (iii) Except as set forth on Exhibit 5(a)(iii), no material consent, authorization, order or approval of, or filing
or registration with, any governmental authority or other person is required for the execution and delivery by the applicable IH Entities or the IH Manager of this Agreement, the IH Ancillary Documents or the consummation by each of the IH Entities
and the IH Manager of the transactions contemplated by this Agreement or the IH Ancillary Documents. 
  
 (iv) Neither the execution and delivery of this Agreement or the IH Ancillary Documents by each of the IH Entities and the IH Manager, nor
the consummation by each of the IH Entities and the IH Manager of the transactions herein and therein contemplated, will conflict with, result in a breach of, constitute a default under, or provide a right of termination or acceleration or create
any lien or encumbrance under, any of the terms, conditions or provisions of (1) the Articles of Incorporation or bylaws (or other similar organizational and constituent documents) of any of the IH Entities or the IH Manager, (2) any note or other
evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which the IH Manager, any of the IH Entities or Jeffrey H. Fisher is a party or by which the IH Manager or any of the IH
Entities may be bound or (3) any statute or administrative regulation, or of any order, writ, injunction, judgment or decree of any court or any governmental authority or of any arbitration award. 
  
 (v) Except as set forth on Exhibit 5(a)(v),
there are no legal actions, suits or similar proceedings pending and served, or, to the knowledge of the IH Manager or any of the IH Entities, threatened, against the IH Manager or any of the IH Entities or affecting any of the Hotels (except for
those fully covered by insurance, other than applicable deductibles). 
  
 (vi) There are no facts which, if known by a potential claimant or governmental authority, could give rise to a claim or proceeding against the IH Manager or any of the IH Entities which, if determined adversely to
any of the IH Entities or the IH Manager, could reasonably be expected to materially and adversely affect any of the 

  

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Hotels. 
  
 (vii) Neither the IH Manager nor any of the IH Entities has (1) commenced a voluntary case, or had entered against it a petition, for
relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (2) caused, suffered or consented to the appointment of a
receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceedings, to hold, administer and/or liquidate all or substantially all of its property or (3) made an
assignment for the benefit of creditors as an alternative to commencing a petition of bankruptcy. Each of the IH Entities and the IH Manager each (A) has assets which exceed its liabilities, (B) is able to pay its debts in the usual and ordinary
course of business and (C) is able to pay its debts as they become due. 
  
 (viii) The Lessees have paid all Rent and other amounts due and owing under the Leases and have otherwise complied, in all material respects, with the terms and conditions thereof and are not in breach or default
thereof. 
  
 (ix) The Lessees have paid or
accrued for all sales, use, occupancy or other taxes relating to the operation of the Hotels through the applicable Lease Assignment Time. 
  
 (x) Exhibit 5(a)(x)(i) sets forth a true, complete and correct list of all Hotels at which alcoholic beverages are served.
The Lessees have all necessary licenses and permits required by all regulatory authorities with respect to alcoholic beverages at such Hotels, and Exhibit 5(a)(x)(ii) sets forth a true, complete and correct list of all such
necessary licenses and permits. 
  
 (xi) At each
Closing, taking into account the Hotels included in such Closing and all prior Hotels as to which a Closing has occurred, the IH Manager will meet the requirements of an “eligible independent contractor” as defined in Section 856(d)(9) of
the Internal Revenue Code with respect to all of such Hotels. 
  
 (xii) Except for agreements which are immaterial to the operation of the Hotels, Exhibit 5(a)(xii) sets forth a true, complete and correct list of all agreements, including all amendments or
modifications thereof, as to which any of the IH Entities is a party. 
  
 (xiii) Exhibit 5(a)(xiii) sets forth a true and correct description of each sublease or Space Lease (as defined herein), including all amendments or modifications thereof, executed by any of the IH
Entities. 
  
 (xiv) Exhibit
5(a)(xiv) sets forth a true, complete and correct list of all Licenses (other than liquor licenses) material to the operations of the Hotels, on a hotel-by-hotel basis, and generally with respect to the operation of the business of the
Lessees. Each of the IH Entities and the IH Manager has all Licenses necessary to conduct its business as currently conducted or as currently contemplated to be conducted, and all Licenses (including liquor licenses) which are material to the
operation of each Hotel have been issued and paid for, are in full force and effect and have not expired without a renewal 

  

 11 

 
having been applied for. 
  
 (xv) Exhibit 5(a)(xv) hereto sets forth a true, complete and correct list of all agreements, including all amendments
or modifications thereof, entered into by any of the IH Entities or the IH Manager with a related or affiliated party which affect any of the Hotels or the operation thereof. 
  
 (xvi) Exhibit 5(a)(xvi) hereto sets forth a true, complete and correct list of any management
agreements or other material agreements, including all amendments or modifications thereof, affecting any of the Hotels which are not otherwise described in Sections 5(a)(xii) through 5(a)(xv). 
  
 (xvii) Each agreement or License described in Sections
5(a)(xii) through 5(a)(xvi) and set forth on the corresponding exhibits is in full force and effect and constitutes a valid and binding obligation of each of the IH Entities or the IH Manager which is a party to each such agreement and, to the
knowledge of each of the IH Entities and the IH Manager, all other parties thereto. Each of the IH Entities and the IH Manager has in all material respects performed the obligations required to be performed by it under such agreements and is not in
default or, to the knowledge of each of the IH Entities and the IH Manager, alleged to be in default under any such agreement. To the knowledge of each of the IH Entities and the IH Manager, (1) there exists no event or condition, which after notice
or lapse of time, or both, would constitute such a default and (2) there are no material defaults by any other party to any such agreement. 
  
 (xviii) Each of the IH Entities and the IH Manager has complied with all applicable laws, rules, regulations, ordinances, orders,
judgments, injunctions, decrees, or other legislative, administrative or judicial restrictions (“Laws”), and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or
commenced against any of the IH Entities or the IH Manager alleging any failure so to comply. Neither the IH Manager nor any of the IH Entities knows of any proposed Laws, the adoption, approval or passage of which could, directly or indirectly,
reasonably be expected to have a Material Adverse Effect on any of the IH Entities, the IH Manager or the operation of the Hotels. 
  
 (xix) Significant Supplies and any other franchisor brand standard items required to be maintained at each Hotel are in compliance with
any requirements set forth by the applicable Franchise Agreements and otherwise are of sufficient quality and quantity to comply with the applicable Franchise Agreement and to permit the operation of each Hotel in the usual and ordinary course,
consistent with past practice and otherwise consistent with the class and reputation of each such Hotel. 
  
 (xx) Neither the IH Manager nor any of the IH Entities has any liabilities or obligations, whether absolute, accrued, contingent or
otherwise, other than (1) pursuant to, and evident from, the contracts described in this Agreement, the exhibits hereto, and the other agreements referred to herein, and (2) liabilities which would not be reasonably likely to have a Material Adverse
Effect on any of the IH Entities, the IH Manager or any of the Hotels or the operation thereof. 
  

 12 

 (xxi) Since March 31, 2002, there has not been (1) any material adverse change in the
assets, liabilities, business, operations or prospects of any of the IH Entities, the IH Manager or any of the Hotels, (2) any destruction or material damage (whether or not covered by insurance) affecting any asset of any of the IH Entities or the
IH Manager or any of the Hotels of which the REIT does not have actual notice or (3) any sale, assignment, license, or other disposition of any material asset or right of any of the IH Entities, the IH Manager or any of the Hotels. 
  
 (xxii) Neither the IH Manager, any of the IH Entities nor,
to the knowledge of each of the IH Entities and the IH Manager, any of their agents or employees has ever made (a) any illegal payment of any kind, directly or indirectly, including, without limitation, payments, gifts or gratuities to national,
state or local government officials, employees or agents or (b) any payments, gifts or gratuities to its employees, customers or suppliers which would violate the law. 
  
 (xxiii) Neither the IH Manager nor any of the IH Entities has received written notice of any casualty or
condemnation proceeding with respect to any Hotel that would adversely affect the ownership or operation of any Hotel of which the REIT does not have actual notice. No casualty has occurred at any Hotel, the repairs of which are expected to cost in
excess of $20,000 of which the REIT does not have actual notice. 
  
 (xxiv) No services, materials or work for which a lien may attach have been supplied by contractors, subcontractors or materialmen with respect to any Hotel for which payment has not been made in full or for which
provision for payment has not been made that would be material to or adversely affect the operation of any Hotel, except those that the REIT contracted for or has actual notice of and has specifically agreed to pay or reimburse Lessee for. No
written notice has been received by any of the IH Entities or the IH Manager of any bill or claim for labor or services or for materials furnished to any Hotel, which remains unpaid and for which provision for payment has not (or will not as of the
Closing have) been made, that would have a material adverse effect on the operation of any Hotel. 
  
 (xxv) All of the personal property used in connection with the operation of each of the Hotels is located at the applicable Hotel and, in
the case of tangible personal property, is in good condition except for such personal property scheduled to be replaced in the ordinary course of business. 
  
 (xxvi) Each of the IH Entities and the IH Manager owns, leases or licenses all the Intellectual Property which is necessary or appropriate
to the present conduct of the business and operations conducted at each of the Hotels and the presently contemplated conduct of such business and operations in the future, and Exhibit 5(a)(xxvi) sets forth a true, complete and correct
list of all such Intellectual Property. Each of the IH Entities and the IH Manager has the right to use all such Intellectual Property and is not obligated to pay any royalties or other compensation to any other person in respect of its ownership,
use or license of any of such Intellectual Property. Neither the IH Manager nor any of the IH Entities has licensed or granted any other person any rights in or otherwise permitted to exist any licenses, encumbrances or security interests with
respect 

  

 13 

 
to such Intellectual Property. No third party is currently infringing on any of such Intellectual Property. The operation of the business of the IH Manager
and each of the IH Entities at each of the Hotels, as currently conducted and as contemplated to be conducted, does not and will not conflict with or infringe on the intellectual property rights of any other person. 
  
 (xxvii) Each of the applicable IH Entities is in compliance
with each of its respective Franchise Agreements, current on all franchise payments and has delivered to the REIT all notices from franchisors regarding any deficiencies, all inspection reports and all guest satisfaction survey score reports.

  
 (xxviii) Each of the IH Entities and the IH
Manager has been fully and adequately represented by independent representatives and advisors in connection with the transactions contemplated by this Agreement and has not relied on the REIT Parties or any of its employees, agents, advisors or
representatives in connection with such transactions. 
  
 (xxix) The representations and warranties of each of the IH Entities and the IH Manager in this Agreement, and all representations, warranties and statements of each of the IH Entities and the IH Manager contained in any schedule, financial
statement, exhibit, list or document delivered pursuant hereto or in connection herewith, do not contain any untrue statement of any material fact and do not omit to state a material fact necessary in order to make the representations, warranties or
statements contained herein or therein not misleading. 
  
 (xxx) The copies of all documents furnished by any of the IH Entities or the IH Manager to the REIT Parties pursuant to the terms of this Agreement or in connection with the transaction contemplated hereby are complete and accurate in all
material respects. The information contained in the exhibits is complete and accurate. 
  
 (b) As an inducement to the IH Manager and each of the IH Entities to enter into this Agreement and to consummate the transactions contemplated herein, the REIT Parties hereby jointly and severally represent and
warrant to the IH Manager and the IH Entities that: 
  
 (i) Each of the REIT Parties is duly organized or formed, validly existing and in good standing under the laws of the state of its formation. 
  
 (ii) Each of the REIT Parties has full corporate power and authority to enter into and perform (1) this Agreement and (2) all other
documents and instruments to be executed by any of the REIT Parties pursuant to this Agreement (such other documents and instruments collectively, the “REIT Ancillary Documents”). Each of this Agreement and the REIT Ancillary
Documents have been (or will be) duly executed and delivered by duly authorized officers or representatives, as the case may be, of the REIT Parties. Each of this Agreement and the REIT Ancillary Documents constitutes a valid and legally binding
obligation of each of the REIT Parties’ signatory thereto, enforceable against each such REIT Party in accordance with its terms (except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency
and creditors’ 

  

 14 

 
rights and by the availability of injunctive relief, specific performance and other equitable remedies). All actions on the part of each of the REIT Parties
and their officers, directors or trustees, shareholders and other constituents which are necessary to approve this Agreement, the REIT Ancillary Documents and the consummation of the transactions contemplated by this Agreement have been taken, and
no other or further corporate act or proceeding on the part of any of the REIT Parties or other act of or by their officers, directors or trustees, shareholders and other constituents is necessary to authorize this Agreement or the REIT Ancillary
Documents, or the consummation of the transactions contemplated hereby and thereby. 
  
 (iii) Except as set forth on Exhibit 5(b)(iii), no consent, authorization, order or approval of, or filing or
registration with, any governmental authority or other person is required for the execution and delivery by the applicable REIT Parties of this Agreement or the REIT Ancillary Documents or the consummation by each of the REIT Parties of the
transactions contemplated by this Agreement or the REIT Ancillary Documents. 
  
 (iv) Neither the execution and delivery of this Agreement or the REIT Ancillary Documents by each of the REIT Parties nor the consummation by each of the REIT Parties of the transactions herein and therein
contemplated, will conflict with, result in a breach of, constitute a default under, provide a right of termination or acceleration, or create any lien or encumbrance under, any of the terms, conditions or provisions of (1) the Limited Partnership
Agreement or the Declaration of Trust, as the case may be, or the bylaws (or other similar organizational and constituent documents) of any of the REIT Parties, (2) except with respect to any consents which will be obtained prior to the applicable
closing, any note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which any of the REIT Parties is a party or by which any of the REIT Parties may be bound or (3)
any statute or administrative regulation, or of any order, writ, injunction, judgment or decree of any court or any governmental authority or of any arbitration award. 
  
 (v) There are no legal actions, suits or similar proceedings pending and served, or, to the knowledge of any
of the REIT Parties, threatened against any of the REIT Parties which if adversely determined would materially adversely affect the ability of any of the REIT Parties to consummate the transactions contemplated hereby. 
  
 (vi) None of the REIT Parties has (1) commenced a voluntary
case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (2) caused,
suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceedings, to hold, administer and/or liquidate all or
substantially all of its property, or (3) made an assignment for the benefit of creditors as an alternative to commencing a petition of bankruptcy. Each of the REIT Parties (A) has assets which exceed its liabilities, (B) is able to pay its debts in
the usual and ordinary course of business and (C) is able to pay its debts as they become due. 
  

 15 

 (vii) None of the REIT Parties has any material liabilities or obligations, whether
absolute, accrued, contingent or otherwise, which would be reasonably likely to have a Material Adverse Effect on its ability to perform under this Agreement. 
  

(viii) The representations and warranties of each of the REIT Parties in this Agreement, and all representations, warranties and
statements of each of the REIT Parties contained in any schedule, financial statement, exhibit, list or document delivered pursuant hereto or in connection herewith, do not contain any untrue statement of any material fact and do not omit to state a
material fact necessary in order to make the representations, warranties or statements contained herein or therein not misleading. 
  
 6. Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of the
REIT on the third (3rd) business day immediately following the date on which the last of the conditions set forth in
Section 8 hereof is first fulfilled or has been waived, provided that all such conditions continue to be so satisfied or waived on such day, and if not so satisfied or waived, the Closing shall be automatically extended from time to time until the
first subsequent business day on which all such conditions are again so satisfied or waived, subject, however, to Section 15 hereof, or at such other time, date and place as the parties shall mutually agree (the “Closing Date”). In
the event that the Closing occurs but all Leases have not, pursuant to the terms and conditions hereof, been assigned to the applicable REIT Parties, then the parties shall thereafter, subject to Section 15 hereof, from time to time consummate the
assignment of the Leases and the other transactions contemplated hereby with respect to one or more of such Hotels, all as further contemplated by this Agreement. Each consummation of the assignment of Leases and the other transactions contemplated
hereby with respect to one or more of such Hotels (whether occurring at the initial Closing or occurring on or after the initial Closing) shall be referred to herein as a Closing and the date on which each such Closing occurs shall be referred to
herein as a Closing Date. Notwithstanding anything to the contrary contained herein, the parties agree that, subject to the satisfaction (or waiver) of the conditions contained in this Agreement, as soon as the parties are able to consummate
the initial Closing with respect to those Hotels listed on Exhibit 3(c), they shall do so. 
  
 7. Conduct Prior to Closing. The IH Entities, the IH Manager and the REIT Parties shall have the rights and obligations which are set forth in the
remainder of this Section 7 with respect to the period between the date hereof and the date on which all the Leases have been assigned to the REIT Parties and transactions contemplated hereby with respect thereto have been consummated. 

 
 (a) Obligations of the IH Entities and the IH Manager. The
following are the obligations of each of the IH Entities and the IH Manager: 
  
 (i) Each of the IH Entities and the IH Manager shall give to the REIT Parties’ officers, employees, attorneys, consultants, accountants and lenders reasonable access during normal business hours to all of the
properties, books, contracts, documents, current and expired insurance policies, records and personnel of each of the IH Entities and the IH Manager, which are relevant to the Hotels subject to this Agreement or the operation thereof, and shall
furnish to the REIT Parties such information as the REIT Parties may at any time and from time to time reasonably request; 
  

 16 

 (ii) Without limiting (and notwithstanding) any other provision of this Agreement, each
of the IH Entities and the IH Manager shall use commercially reasonable efforts and make every good faith attempt (and the REIT Parties shall reasonably cooperate with each of the IH Entities and the IH Manager) to obtain all (1) consents specified
by the REIT Parties to the assignment of, or alternate arrangements satisfactory to the REIT Parties with respect to, any Contract, Franchise Agreement, License or Leasehold Asset and (2) consents and waivers from third parties necessary to effect
the transactions contemplated by this Agreement; 
  
 (iii) Each of the IH Entities and the IH Manager shall use its good faith commercially reasonable efforts to preserve its business and the goodwill of its customers, suppliers and others having business relations with any of them and to
retain its business organization intact, including keeping available the services of its present employees, representatives and agents, and shall maintain the Hotels and all of its properties and assets related thereto in good operating condition
and repair, ordinary wear and tear excepted; 
  
 (iv) The IH Manager shall use its good faith efforts to meet the requirements to be, and maintain its status as, an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code; provided, however,
the REIT Parties shall have no obligation to assist the IH Manager in meeting such requirements or maintaining such status; 
  
 (v) Without the prior written consent of the REIT Parties, and without limiting the generality of any other provision of this Agreement,
the IH Entities and the IH Manager shall not: 
  
 (1) sell,
transfer or otherwise dispose of any material asset or property material to the operation of any of the Hotels except for sales in the usual and ordinary course of business and except for application of cash in payment of liabilities of the IH
Entities or the IH Manager in the usual and ordinary course of business; or 
  
 (2) amend, terminate, give notice of termination with respect to or waive any material rights under any existing agreement or instrument to which any of the IH Entities or the IH Manager is a party and which are
material to the operation of any of the Hotels, including, without limitation, Contracts, Licenses, Franchise Agreements and management agreements. 
  
 (b) Obligations of the REIT Parties. Consistent with the provisions of Section 3 hereof, the REIT Parties shall, as applicable, reasonably
cooperate with the IH Entities and the IH Manager, and use their good faith commercially reasonable efforts to obtain consents and waivers from third parties necessary to effect the transactions contemplated by this Agreement. Notwithstanding any
other provision of this Agreement to the contrary, at the election of the REIT, the REIT Parties shall be responsible for obtaining appropriate lender consents and the IH Entities and the IH Manager shall be responsible for obtaining all other
consents and approvals. 
  

 17 

 (c) Joint Obligations. The following shall apply with equal force to each of the IH Entities, the
IH Manager and the REIT Parties: 
  
 (i) The
parties shall promptly give the other parties written notice of the existence or occurrence of any condition which would make any of its representations or warranties herein contained untrue or which might reasonably be expected to prevent the
consummation of the transaction contemplated hereby; 
  
 (ii) No party shall intentionally perform any act which, if performed, or omit to perform any act which, if omitted to be performed, would prevent or excuse the performance of this Agreement by any party hereto or which would result in any
representation or warranty herein contained of said party being untrue in any material respect as if originally made on and as of a Closing Date; and 
  
 (iii) Consistent with the other provisions of the Agreement, each party shall use its respective good faith commercially reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate the transactions contemplated hereby as soon as practicable. 
  
 8. Conditions to Each Closing. 
  
 (a) Conditions to Obligations of the IH Entities and the IH Manager.
The obligation of each of the IH Entities and the IH Manager to consummate the transaction contemplated hereby is subject to the fulfillment of all of the following conditions on or prior to a particular Closing Date, upon the non-fulfillment of any
of which this Agreement may, at the option of the IH Entities and the IH Manager, be terminated to the extent provided in, pursuant to and with the effect set forth in Section 15 hereof: 
  
 (i) Each and every representation and warranty made by the REIT Parties shall have been true and correct
when made and shall be true and correct as if originally made on and as of such Closing Date; 
  
 (ii) All obligations of the REIT Parties to be performed hereunder through, and including on, such Closing Date (including, without
limitation, all obligations which the REIT Parties would be required to perform at such Closing if the transaction contemplated hereby was consummated) shall have been fully performed (or, as to obligations which the REIT Parties are to perform as
of such Closing, the REIT Parties shall be ready, willing and able to perform such obligations against performance by the IH Entities and the IH Manager hereunder); 
  
 (iii) No suit, proceeding or investigation shall have been commenced, or threatened in writing, by any
governmental authority or private person (unrelated to the IH Entities or the IH Manager) on any grounds to restrain, enjoin or hinder, or to seek material damages on account of, the consummation of the transaction contemplated hereby; and

  
 (iv) All of the Material Lease Assignment
Consents as provided in Section 3(c) shall have been obtained with respect to each Hotel as to which the assignment is 

  

 18 

 
being made as of such Closing. 
  
 (b) Conditions to the Obligations of the REIT Parties. The obligation of the REIT Parties to consummate the transaction contemplated hereby is
subject to the fulfillment of all of the following conditions on or prior to a particular Closing Date, upon the non-fulfillment of any of which this Agreement may, at the option of the REIT Parties, be terminated to the extent provided in, pursuant
to and with the effect set forth in Section 15 hereof: 
  
 (i) Each and every representation and warranty made by each of the IH Entities and the IH Manager shall have been true and correct when made and shall be true and correct as if originally made on and as of such Closing Date; 
  
 (ii) All obligations of each of the IH Entities and the IH
Manager to be performed hereunder through, and including on, such Closing Date (including, without limitation, all obligations which each of the IH Entities and the IH Manager would be required to perform at such Closing if the transaction
contemplated hereby was consummated) shall have been fully performed (or, as to obligations which the IH Entities and the IH Manager are to perform as of such Closing, the IH Entities and the IH Manager shall be ready, willing and able to perform
such obligations against performance by the REIT Parties hereunder); 
  
 (iii) All of the Material Lease Assignment Consents as provided in Section 3(c) and all of the other consents, assignments, replacements, reissuances, amendments and alternate arrangements referred to in Section 3(c)
shall have been obtained, in each case, with respect to each Hotel as to which the assignment is being made as of such Closing (without cost, obligation or limitation to the REIT Parties in excess of the normal, customary cost, obligations or
limitations associated therewith, none of which are materially adverse individually or in the aggregate to the REIT or to the aggregate benefits intended to accrue to the REIT from the consummation of the transactions contemplated hereby) and
otherwise on terms and conditions reasonably acceptable to the REIT; 
  
 (iv) No suit, proceeding or investigation shall have been commenced, or threatened in writing, by any governmental authority or private person on any grounds to restrain, enjoin or hinder, or to seek material damages
on account of, the consummation of the transaction contemplated hereby; 
  
 (v) The IH Manager shall then meet the requirements of an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code and shall have provided evidence thereof, in each
case, satisfactory to the REIT in its sole discretion; 
  
 (vi) Receipt from the franchisors of documentation reasonably acceptable to the REIT with respect to the Franchise Agreements; 
  
 (vii) The IH Entities and the IH Manager shall have delivered to the REIT Parties the written opinions of counsel to the IH Entities and
the IH Manager, addressed to the REIT Parties and dated as of such Closing Date, in form and substance reasonably 

  

 19 

 
acceptable to the REIT Parties, with such changes thereto as may reasonably be required by the REIT Parties’ lenders (it being understood that the REIT
Parties’ lenders may rely upon such opinions); 
  
 (viii) That certain Covenant Not to Compete, in substantially the form of Exhibit 8(b)(viii) attached hereto, shall have been entered into and be in full force and effect; 
  
 (ix) The owner’s agreements with respect to each
Franchise Agreement as to the Hotels included in such Closing shall have been terminated, on terms and conditions acceptable to the REIT in its sole discretion; 
  
 (x) The IH Entities and the IH Manager shall have delivered to the REIT Parties the consents, “comfort
letters” and similar documents contemplated by Section 13 hereof; and 
  
 (xi) All of the Hotels listed on Exhibit 3(c) shall be included in the initial Closing. 
  
 9. Closing Documents and Deliveries. At the initial Closing, the parties shall deliver the documents, and shall perform the acts, which are set
forth in this Section 9. All documents which each of the IH Entities and the IH Manager shall deliver shall be in form and substance reasonably satisfactory to the REIT Parties and their counsel. All documents which the REIT Parties shall deliver
shall be in form and substance reasonably satisfactory to the IH Entities, the IH Manager and their counsel. As to any Closing that occurs subsequent to the initial Closing, the parties shall comply with this Section 9 as nearly as practicable with
respect to such subsequent Closing. 
  
 (a) Closing Deliveries
by the IH Entities and the IH Manager. Subject to the fulfillment or written waiver of the conditions set forth in Section 8(a), at a particular Closing each of the IH Entities and the IH Manager, as applicable, shall execute and/or deliver or
cause to be executed and delivered to the REIT Parties all of the following: 
  
 (i) certified copies of the Certificate or Articles of Incorporation, as applicable, and bylaws (or other similar organizational and constituent documents) of each of the IH Entities and the IH Manager; 
  
 (ii) certificates of good standing for each of the IH
Entities and the IH Manager, issued not earlier than ten (10) days prior to such Closing by the applicable Secretaries of State; 
  
 (iii) an incumbency and specimen signature certificate with respect to the officers of each of the IH Entities and the IH Manager
executing this Agreement and the IH Ancillary Documents on behalf of such parties; 
  
 (iv) a certified copy of resolutions of the board of directors, stockholders and other constituents, for each of the IH Entities and the
IH Manager authorizing the 

  

 20 

 
execution, delivery and performance of this Agreement and the IH Ancillary Documents; 
  
 (v) a bill of sale, executed by each of the IH Entities, conveying all of the Leasehold Assets with respect
to each Hotel, as to which a Lease is being assigned hereunder at such Closing, to the REIT Parties, free and clear of all liens, claims, encumbrances and security interests other than those set forth on Exhibit 9(a)(v) hereto;

  
 (vi) a counterpart to the Preliminary
Operational Settlement Statement; 
  
 (vii)
evidence acceptable to the REIT in its sole discretion that the IH Manager has met the requirements to be an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code, including, without limitation, an
opinion from the REIT’s regular outside tax counsel; 
  
 (viii) copies of the consents obtained by the IH Entities and the IH Manager; 
  
 (ix) a duly executed franchisor counterpart to a replacement, or assignment, for each Franchise Agreement for each Hotel included in such
Closing and operating under a Franchise Agreement in favor of the applicable TRS Lessee in accordance with Section 2(b) hereof; 
  
 (x) a duly executed counterpart to an Assignment of Contracts and Assumption Agreement for each Hotel included in such Closing, in form
and substance reasonably acceptable to the REIT Parties and consistent with the terms and conditions of this Agreement, covering all Contracts to be assigned and assumed as of such Closing Date in accordance with Section 2(c) hereof; 
  
 (xi) a duly executed counterpart to an Assignment of
Licenses and Assumption Agreement for each Hotel included in such Closing, in form and substance reasonably acceptable to the REIT Parties and consistent with the terms and conditions of this Agreement, covering all Licenses to be assigned and
assumed as of such Closing Date in accordance with Section 2(d) hereof, or, to the extent any Licenses are not assignable, replacement licenses in accordance with Section 2(d) hereof; 
  
 (xii) a duly executed counterpart to the Management Agreement substantially in the form of Exhibit
4(b) with respect to each Hotel included in such Closing; 
  
 (xiii) a duly executed counterpart to the Lease Assignment Agreement with respect to each Hotel included in such Closing; 
  
 (xiv) a duly executed counterpart to the Covenant Not to Compete in substantially the form of Exhibit 8(b)(viii)
attached hereto (unless such a counterpart was previously executed and delivered in connection with a prior Closing, and in such case, a statement acknowledging such agreement remains in full force and effect); 
  
 (xv) a duly executed counterpart to the Pooling and
Cumulation Agreement in substantially the form of Exhibit 9(a)(xv) attached hereto (unless such a counterpart was previously executed and delivered in connection with a prior Closing, and in such case, a 

  

 21 

 
statement acknowledging such agreement remains in full force and effect and that the Hotels included in such Closing shall be subject to such agreement);

  
 (xvi) a certificate duly executed by the
president of each of the IH Entities and the IH Manager (or any other officer of such parties specifically authorized to do so), on behalf of each of the IH Entities and the IH Manager, that the representations and warranties of such parties
contained in this Agreement shall be true and correct as of such Closing Date as if then originally made, except for any such representations or warranties which were made as of a specific date, which representations and warranties shall have been
true as of such date (or, if any such representation or warranty is untrue in any respect, specifying the respect in which the same is untrue); 
  
 (xvii) a certificate duly executed by the president of each of the IH Entities and the IH Manager (or any other officer of such parties
specifically authorized to do so), on behalf of each of the IH Entities and the IH Manager, that each of the covenants and other obligations of each of the IH Entities and the IH Manager to be performed by it on or before such Closing Date pursuant
to the terms of this Agreement, to the extent not waived by the REIT Parties in writing, and each of the provisions hereof to be complied with by each of the IH Entities and the IH Manager on or before such date, shall have been duly performed and
complied with in all respects (or, if any such covenant or provision has not been so duly performed or complied with, indicating the respect in which such covenant or provision has not been performed or complied with); 
  
 (xviii) affidavits of each of the IH Entities and the IH
Manager in form and substance required under the Treasury Regulations as to non-foreign status pursuant to Section 1445 of the Internal Revenue Code; 
  
 (xix) all payments (including credits on Preliminary Operational Settlement Statements) required to be made by the IH Entities and the IH
Manager on such Closing Date as set forth in Section 4 hereof; 
  
 (xx) upon request by the REIT, all books and records (including, without limitation, accounting and financial records) kept by the IH Entities which relate to the operation of the Hotels included in such Closing;

  
 (xxi) duly executed opinions of counsel to
the IH Entities and the IH Manager in form and substance reasonably acceptable to the REIT Parties, addressed to the REIT Parties, and dated as of such Closing Date; 
  
 (xxii) an estoppel certificate from each applicable taxing authority that all sales, use and occupancy taxes
with respect to the Hotels included in such Closing have been paid in full; 
  
 (xxiii) the consents, “comfort letters” and similar documents contemplated by Section 13 hereof; and 
  
 (xxiv) such other documents as may be reasonably requested by the REIT Parties in connection with the consummation at such Closing of the
transactions contemplated by 

  

 22 

 
this Agreement. 
  
 (b) Closing Deliveries by the REIT Parties. Subject to the fulfillment or written waiver of the conditions set forth in Section 8(b), at a
particular Closing the REIT Parties shall execute and/or deliver or cause to be executed and delivered to the IH Entities and the IH Manager, as applicable, all of the following: 
  
 (i) certified copies of the Certificate or Articles of Incorporation, Declaration of Trust or Certificate of
Limited Partnership, as the case may be, and bylaws (or other similar organizational and constituent documents) of each of the REIT Parties; 
  
 (ii) certificates of good standing for each of the REIT Parties, issued not earlier than ten (10) days prior to such Closing by the
applicable Secretaries of State; 
  
 (iii) an
incumbency and specimen signature certificate with respect to the officers of each of the REIT Parties executing this Agreement and the REIT Ancillary Documents on behalf of such parties; 
  
 (iv) a certified copy of resolutions of the board of
directors, trustees and other constituents for each of the REIT Parties authorizing the execution, delivery and performance of this Agreement and the REIT Ancillary Documents; 
  
 (v) a duly executed counterpart to the Preliminary Operational Settlement Statement; 
  
 (vi) a duly executed counterpart to a replacement, or
assignment, for each Franchise Agreement for each Hotel included in such Closing and operating under a Franchise Agreement in favor of the applicable TRS Lessee in accordance with Section 2(b) hereof; 
  
 (vii) a duly executed counterpart to an Assignment of
Contracts and Assumption Agreement for each Hotel included in such Closing, in form and substance reasonably acceptable to the IH Entities and the IH Manager and consistent with the terms and conditions of this Agreement, covering all Contracts to
be assigned and assumed as of such Closing Date in accordance with Section 2(c) hereof; 
  
 (viii) a duly executed counterpart to an Assignment of Licenses and Assumption Agreement for each Hotel included in such Closing, in form
and substance reasonably acceptable to the IH Entities and the IH Manager and consistent with the terms and conditions of this Agreement, covering all Licenses to be assigned and assumed as of such Closing Date in accordance with Section 2(d)
hereof; 
  
 (ix) a duly executed counterpart to
the Management Agreement substantially in the form of Exhibit 4(b) with respect to each Hotel included in such Closing; 
  
 (x) a duly executed counterpart to the Lease Assignment Agreement with respect to each Hotel included in such Closing; 
  

 23 

 (xi) a duly executed counterpart to the Covenant Not to Compete in substantially the form
of Exhibit 8(b)(viii) attached hereto (unless such a counterpart was previously executed and delivered in connection with a prior Closing, and in such case, a statement acknowledging such agreement remains in full force and effect);

  
 (xii) a duly executed counterpart to the
Pooling and Cumulation Agreement substantially in the form of Exhibit 9(a)(xv) attached hereto (unless such a counterpart was previously executed and delivered in connection with a prior Closing, and in such case, a statement
acknowledging such agreement remains in full force and effect and that the Hotels included in such Closing shall be subject to such agreement); 
  
 (xiii) copies of the consents obtained by the REIT Parties; 
  
 (xiv) a certificate duly executed by the vice president of each of the REIT Parties (or any other officer of
such parties specifically authorized to do so), on behalf of each of the REIT Parties, that the representations and warranties of such parties contained in this Agreement shall be true and correct as of such Closing Date as if then originally made,
except for any such representations or warranties which were made as of a specific date, which representations and warranties shall have been true as of such date (or, if any such representation or warranty is untrue in any respect, specifying the
respect in which the same is untrue); 
  
 (xv) a
certificate duly executed by the vice president of each of the REIT Parties (or any other officer of such parties specifically authorized to do so), on behalf of each of the REIT Parties, that each of the covenants and other obligations of the REIT
Parties to be performed by each of them on or before such Closing Date pursuant to the terms of this Agreement, to the extent not waived by the IH Entities and the IH Manager in writing, and each of the provisions hereof to be complied with by the
REIT Parties on or before such date, shall have been duly performed and complied with in all respects (or, if any such covenant or provision has not been so duly performed or complied with, indicating the respect in which such covenant or provision
has not been performed or complied with); 
  
 (xvi) such other documents as may be reasonably requested by the IH Entities and the IH Manager in connection with the consummation at such Closing of the transactions contemplated by this Agreement. 
  
 10. Interim Lease Terminations. From and after the date hereof and
prior to the date of assignment hereunder of the Lease with respect to a particular Hotel, a Lessor may terminate the Lease with respect to such Hotel upon sale of the Hotel, to the extent such sale is permitted as set forth in the Lease for such
Hotel (an “Interim Lease Termination”). At the option of the applicable REIT Party, in the event of such a sale, the REIT Party may (a) comply with the terms and conditions of the applicable Lease with respect to such sale (provided
that any substitution that occurs may at the option of the REIT be with a Management Agreement as opposed to a new lease) or (b) alternatively, in connection therewith terminate the applicable Lease in consideration of (i) payment of the Individual
Lease Assignment Payment for the applicable Hotel as set forth on Exhibit 4(c)(i) attached hereto and (ii) the provision of a credit to the IH 

  

 24 

 
Manager under Section III.C of the Pooling and Cumulation Agreement equal to the amount which would have been required to be paid to the IH Manager with
respect to a termination under Section 4.01 of the Management Agreement for the Hotel subject to such Lease if the Management Agreement for such Hotel were in effect as of the date of such sale. If an Interim Lease Termination occurs, the
consideration to which the Lessee is entitled pursuant to clause (a) above shall be received by Lessee within the time period provided for in the related Lease. In the event that a payment is made pursuant to clauses (a) or (b) above with respect to
any Interim Lease Terminations, the Aggregate Lease Assignment Payment shall be reduced by the amount equal to the Individual Lease Assignment Payments for all such Leases as to which an Interim Lease Termination has occurred. All payments paid
pursuant to this Section 10 shall be made by wire transfer of immediately available funds to such bank account(s) as the Lessees shall specify (by written notice delivered to the REIT Parties not less than three (3) business days prior to the
required payment date). Notwithstanding the foregoing, it is understood and agreed that no consideration shall be owed to any of the IH Entities or the IH Manager by the REIT Parties if an Interim Lease Termination occurs with respect to either or
both of the Leases for Winston-Salem or Eden Prairie. 
  
 11.
Closing Inventories. On a Closing Date, the IH Entities and the IH Manager shall cause each Hotel included in such Closing to have on hand, at no cost to the REIT Parties, inventories of the Significant Supplies at the levels and of the
quality described on Exhibit 11 and all other supplies at levels consistent with past practices, but in any event as may be necessary or appropriate under then-current franchise brand standards and for the conduct of the business at
such Hotel. 
  
 12. Subordination; Special Purpose
Entities. The REIT Parties, the IH Entities and the IH Manager hereby agree to subordinate to lenders, franchisors and the like all agreements as may be reasonably requested by such parties in order for such parties to provide their consents to
the completion of the transactions contemplated by this Agreement. The parties acknowledge that such lenders, franchisors and the like may require that one or more “special purpose entities” be formed as wholly-owned affiliates or
subsidiaries of the REIT or wholly-owned affiliates, subsidiaries or “sister” entities of the IH Entities or the IH Manager and by their execution hereof, the parties hereby agree to form and organize such entities and to cause such
entities to become party to the appropriate documents contemplated hereby and assume the rights and obligations with respect to the Hotels to be managed by such entities as may be required by such lenders, franchisors and the like. 
  
 13. Financial Information. From and after the date hereof, each of the
IH Entities agrees to (a) provide such financial information with respect to the Lessees and the Hotels as may be reasonably requested by the REIT Parties and their respective permitted successors and assigns and (b) obtain from their independent
public accountants such audits, reviews, consents, “comfort letters” and similar documents relating to the financial information described in clause (a) above as may reasonably be requested by the REIT Parties and their respective
permitted successors and assigns for compliance with their respective disclosure obligations under state and federal securities laws and applicable stock exchange rules and in connection with financings or similar transactions. 
  
 14. Further Covenants and Agreements. 
  

 25 

 (a) Cooperation. Each party hereby agrees to cooperate in good faith with the other parties and to
execute and deliver such other agreements, documents or instruments as may be necessary or desirable in connection with the transactions contemplated by this Agreement (including, without limitation, the assignment of the Leases and the operational
settlement procedures described in Section 4(c)(ii)). Notwithstanding the foregoing, the parties agree that the Lessees’ compliance with the provisions of Sections 7(a)(iv) and 8(b)(v) of this Agreement is solely the responsibility of the
Lessees and nothing herein shall be deemed to require the REIT Parties to take any action or execute any agreement or waiver with respect thereto. Notwithstanding any other provision of this Agreement, it is understood and agreed that the
parties’ respective obligations to use their good faith commercially reasonable efforts to take action hereunder and to otherwise cooperate with respect to the consummation of the transactions contemplated hereby shall not require the REIT
Parties, collectively on the one hand, and the IH Entities and the IH Manager, collectively on the other hand, to take any action or incur any cost, expense or obligation which would materially detract (in such parties’ good faith judgment)
from the aggregate benefits intended to accrue to such parties from the consummation of the transactions contemplated hereby. 
  
 (b) Hotel Budgets. The Lessees have prepared and submitted to the TRS Lessees and the Lessors operating budgets for each Hotel for 2003 effective
January 1, 2003. 
  
 (c) Rent Payment. The Lessees shall
pay all Rent owing prior to the applicable Lease Assignment Time as and when it becomes due. 
  
 (d) Employees. The IH Entities and the IH Manager acknowledge that the IH Entities shall be responsible for payment of, and shall pay when due under applicable law, all wages and salaries payable to, and all
vacation pay, sick pay and other paid time off, pension and welfare benefits, payroll taxes and other fringe benefits accrued with respect to all individuals employed at the Hotels relating to the period prior to the applicable Lease Assignment
Time. Subject to the Management Agreement, the IH Manager shall be responsible for payment of all such wages, salaries and benefits relating to the period commencing on and from the Assignment Date with respect to all the Hotels managed by the IH
Manager and leased by the TRS Lessees. Notwithstanding anything to the contrary contained in this Agreement, at no time whether before, on or after the date on which a Lease with respect to such a Hotel is assigned to a TRS Lessee, shall any of the
employees at such Hotel (including any employees of any manager thereof), be or be deemed to be the employees of any of the REIT Parties, or be or be deemed to be transferred to any of the REIT Parties pursuant to the terms hereof. If required, each
of the applicable IH Entities and the IH Manager will comply with the notice and other requirements under the Worker Adjustment Retraining and Notification Act (the “WARN Act”), the Consolidated Omnibus Budget Reconciliation Act or
any similar state or local legislation with respect to such employee matters, and such obligation shall survive each Closing, notwithstanding anything to the contrary in the WARN Act. Because the REIT Parties at no time will be or be deemed to be
the employer of the employees at any Hotel, it is expressly understood and agreed (subject to the Management Agreement) that the REIT Parties are not and shall not be responsible or liable, directly or indirectly, for the payment of any benefits
(including unemployment benefits), severance liability, compensation, pay, bonus or other obligations, of whatever nature, due or alleged to be due to any current or former employee at the Hotels, including employees of any current or former manager
thereof, or of any of the IH 

  

 26 

 
Entities attributable to any time period up to, on and after the date on which a related Lease with respect to such a Hotel is assigned to a TRS Lessee.
Similarly, there shall be no union agreements, pension plans, health plans, benefit plans, deferred compensation plans, bonus plans or vacation plans or similar agreements for or concerning such employees which shall be binding upon the REIT
Parties, except to the extent assumed by the IH Manager and provided for in the Management Agreement. 
  
 15. Termination. 
  
 (a) This Agreement may be terminated, but only with respect Hotels and related Leases as to which a Closing has not occurred pursuant to this Agreement:

  
 (i) as to one or more of such Hotels and
related Leases, at any time by mutual written agreement of the REIT and Innkeepers Hospitality, Inc.; 
  
 (ii) as to all such Hotels and related Leases, by any party hereto upon notice if a Closing for (1) all the Hotels set forth on
Exhibit 3(c) shall not have occurred on or before November 4, 2003 or (2) all Hotels shall not have occurred on or before August 4, 2004; provided, however, that the right to terminate this Agreement under this Section
15(a)(ii) shall not be available to a party if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of the breach of this Agreement or the bad faith or willful misconduct of such party
(or (A) in the case of any REIT Party, any other REIT Party or (B) in the case of any IH Entity or the IH Manager, any other IH Entity or the IH Manager); provided, further, that no party shall be relieved of any liability or obligation for any
material breach of this Agreement prior to such termination or for any breach of this Agreement which arises out of or results from such party’s bad faith or willful misconduct; 
  
 (iii) as to all such Hotels and related Leases, by the REIT upon notice if there is a breach of any material
covenant or material agreement to be complied with or performed by the IH Manager or any of the IH Entities pursuant to the terms of this Agreement or a breach of any material representation or warranty of the IH Manager or the IH Entities and such
breach is incapable of being cured or is not cured within thirty (30) days of notice being given thereof; 
  
 (iv) as to all such Hotels and related Leases, by Innkeepers Hospitality, Inc. upon notice if there is a breach of any material covenant
or material agreement to be complied with or performed by the REIT Parties pursuant to the terms of this Agreement or a breach of any material representation or warranty of the REIT Parties and such breach is incapable of being cured or is not cured
within thirty (30) days of notice being given thereof; or 
  
 (v) as to all such Hotels and related Leases, by any party as set forth in Section 3(c) hereof. 
  
 (b) Effect of Termination. The termination of this Agreement pursuant to Section 15(a) shall not affect the right of any party to bring any action
for breach of this Agreement, and the obligations of the parties under Sections 16, 17(m) and 17(r) of this 

  

 27 

 
Agreement shall survive any such termination, and this Agreement shall survive in its entirety in the event a Closing occurs with respect to any of the
Hotels. Each of the IH Entities and the IH Manager shall be jointly and severally liable for any breach of this Agreement by any of the IH Entities or the IH Manager, and each of the REIT Parties shall be jointly and severally liable for any breach
of this Agreement by any of the REIT Parties. Notwithstanding the foregoing, the REIT Parties shall not have any liability or obligation for any breach which is not material or for any breach which does not constitute willful misconduct or bad
faith. Notwithstanding the foregoing, neither the IH Entities nor the IH Manager shall have any liability or obligation for the failure to satisfy the condition set forth in Section 8(b)(v) hereof, provided that the IH Manager shall have used its
good faith efforts to satisfy such condition. 
  
 16.
Indemnification. 
  
 (a) General. The IH Entities
and the IH Manager shall jointly and severally indemnify the REIT Parties and the REIT Parties shall jointly and severally indemnify the IH Entities and the IH Manager as provided in this Section 16. No specifically enumerated indemnification
obligation with respect to a particular subject matter as set forth below shall limit or affect the applicability of a more general indemnification obligation as set forth below with respect to the same subject matter. For the purposes of this
Section 16, each party shall be deemed to have remade all of its representations and warranties contained in this Agreement at each Closing with the same effect as if originally made at each Closing. 
  
 (b) Certain Definitions. As used in this Agreement, the following
terms shall have the indicated meanings: 
  
 (i)
“Damages” shall mean all liabilities, demands, claims, actions or causes of action, regulatory or judicial proceedings or investigations, assessments, levies, losses, fines, penalties, damages, costs and expenses, including, without
limitation, reasonable attorneys’, accountants’, investigators’, and experts’ fees and expenses, sustained or incurred in connection with the defense or investigation of any such claim; 
  
 (ii) “Third Party Claim” shall mean any
claim, action, suit, proceeding, investigation or like matter which is asserted or threatened by a party other than the parties hereto, their successors and permitted assigns, against any Indemnified Party or to which an Indemnified Party is subject
and to which an indemnification obligation is owed hereunder. 
  
 (iii) “Indemnified Party” shall mean, as to a particular matter, a party to which an indemnification obligation is owed under this Section 16. 
  
 (iv) “Indemnifying Party” shall mean, as to
a particular matter, a party which owes an indemnification obligation under this Section 16. 
  
 (c) Indemnification Obligations of the IH Entities and the IH Manager. The IH Entities and the IH Manager shall jointly and severally indemnify, save and keep harmless the REIT Parties and their successors and
permitted assigns against and from all Damages sustained or incurred by any of them resulting from or arising out of or by virtue of: 
  

 28 

 (i) any inaccuracy in or breach of any representation or warranty made by any of the IH
Entities or the IH Manager in this Agreement or in any closing document delivered to the REIT Parties in connection with this Agreement; 
  
 (ii) any breach by any of the IH Entities or the IH Manager of, or failure by any of the IH Entities or the IH Manager to comply with, any
of its covenants or obligations under this Agreement (including, without limitation, their obligations under this Section 16); 
  
 (iii) the operations of the Hotels by the Lessees prior to the applicable Lease Assignment Time, including, without limitation, claims or
causes of action relating in any way to any employees of the Lessees based upon events occurring prior to the applicable Lease Assignment Time; or 
  
 (iv) any untrue statement of a material fact or omission of any material fact included in written information provided by any IH Entities
or the IH Manager to any of the REIT Parties or their respective permitted successors and assigns or the TRS Lessee expressly for inclusion in any report filed under the Securities Exchange Act of 1934, as amended, or registration statement or
prospectus (or any amendment or supplement thereto) filed under the Securities Act of 1933, as amended. 
  
 (d) Indemnification Obligations of the REIT Parties. The REIT Parties shall jointly and severally indemnify, save and keep harmless the IH Entities
and the IH Manager and their successors and permitted assigns against and from all Damages sustained or incurred by any of them resulting from or arising out of or by virtue of: 
  
 (i) any inaccuracy in or breach of any representation or warranty made by any of the REIT Parties in this
Agreement or in any closing document delivered to the IH Entities or the IH Manager in connection with this Agreement; or 
  
 (ii) any breach by any of the REIT Parties of, or failure by any of the REIT Parties to comply with, any of its covenants or obligations
under this Agreement (including, without limitation, their obligations under this Section 16). 
  
 (e) Cooperation. Subject to the provisions of Section 16(g), an Indemnified Party shall have the right, at its own expense, to participate in the defense of any Third Party Claim, and if said right is
exercised, the parties shall cooperate in the investigation and defense of said Third Party Claim. 
  
 (f) Subrogation. The Indemnifying Party shall not be entitled to require that any action be brought against any other person before action is
brought against it hereunder by an Indemnified Party but shall be subrogated to any right of action to the extent that it has paid or successfully defended against any Third Party Claim. 
  
 (g) Third Party Claims. Within ten (10) business days after the receipt of notice of a Third Party Claim, the
Indemnified Party receiving the notice of the Third Party Claim shall (i) notify the Indemnifying Party of its existence setting forth with reasonable specificity the facts and circumstances of which such party has received notice and (ii) specify

  

 29 

 
the basis hereunder upon which the Indemnified Party’s claim for indemnification is asserted. The Indemnified Party may, upon reasonable notice, tender
the defense of a Third Party Claim to the Indemnifying Party. If (1) the defense of a Third Party Claim is so tendered and within thirty (30) days thereafter such tender is accepted without qualification by the Indemnifying Party and with an
acknowledgment of the requirement to provide indemnification with respect to such Third Party Claim or (2) within thirty (30) days after the date on which written notice of a Third Party Claim has been given pursuant to this Section 16(g), the
Indemnifying Party shall acknowledge in writing to the Indemnified Party and without qualification its indemnification obligations with respect to such Third Party Claim; then, except as hereinafter provided, the Indemnified Party shall not have the
right to, and the Indemnifying Party shall, contest, defend, litigate or settle such Third Party Claim. Failure to provide notice of a Third Party Claim shall not relieve an Indemnifying Party of any obligation with respect thereto except to the
extent that such Indemnifying Party is materially and actually prejudiced by such failure. The Indemnified Party shall have the right to be represented by counsel at its own expense in any such contest, defense, litigation or settlement conducted by
the Indemnifying Party provided that the Indemnified Party shall be entitled to reimbursement therefor if the Indemnifying Party shall lose its right to contest, defend, litigate and settle the Third Party Claim as herein provided. The Indemnifying
Party shall lose its right to defend, contest, litigate and settle the Third Party Claim if it shall fail to diligently contest the Third Party Claim. So long as the Indemnifying Party has not lost its right and/or obligation to defend, contest,
litigate and settle as herein provided, the Indemnifying Party shall have the exclusive right to contest, defend and litigate the Third Party Claim and shall have the exclusive right, in its discretion exercised in good faith, and upon the advice of
counsel, to settle any such matter, either before or after the initiation of litigation, at such time and upon such terms as it deems fair and reasonable, provided that at least ten (10) days prior to any such settlement, written notice of its
intention to settle shall be given to the Indemnified Party. All expenses (including without limitation attorneys’ fees) incurred by the Indemnifying Party in connection with the foregoing shall be paid by the Indemnifying Party.
Notwithstanding the foregoing, in connection with any settlement negotiated by an Indemnifying Party, no Indemnified Party shall be required by an Indemnifying Party to (A) enter into any settlement that does not include as unconditional terms
thereof satisfactory confidentiality provisions and the delivery by the claimant or plaintiff to the Indemnified Party of a release from all liability in respect of such claim or litigation, (B) enter into any settlement that attributes by its terms
liability to the Indemnified Party or (C) consent to the entry of any judgment that does not include as a term thereof a full dismissal of the litigation or proceeding with prejudice. No failure by an Indemnifying Party to acknowledge in writing its
indemnification obligations under this Section 16 shall relieve it of such obligations to the extent they exist. If an Indemnified Party is entitled to indemnification against a Third Party Claim, and the Indemnifying Party fails to accept a tender
of, or assume, the defense of a Third Party Claim pursuant to this Section 16(g), or if, in accordance with the foregoing, the Indemnifying Party shall lose its right to contest, defend, litigate and settle such a Third Party Claim, the Indemnified
Party shall have the right, without prejudice to its right of indemnification hereunder, in its discretion exercised in good faith and upon the advice of counsel, to contest, defend and litigate such Third Party Claim, and may settle such Third
Party Claim, either before or after the initiation of litigation, at such time and upon such terms as the Indemnified Party deems fair and reasonable, provided that at least ten (10) days prior to any such settlement, written notice of its intention
to settle is given to the Indemnifying Party. If, pursuant to this Section 16(g), the Indemnified Party so contests, defends, 
  

 30 

 
litigates or settles a Third Party Claim, for which it is entitled to indemnification hereunder as hereinabove provided, the Indemnified Party shall be
reimbursed by the Indemnifying Party for the reasonable attorneys’ fees and other expenses of defending, contesting, litigating and/or settling the Third Party Claim which are incurred from time to time, forthwith following the presentation to
the Indemnifying Party of reasonably itemized bills for said attorneys’ fees and other expenses. An Indemnifying Party shall not have the right to defend or exclusively defend, and the Indemnified Party will have the right to defend or
co-defend at the expense of the Indemnifying Party, a Third Party Claim if the Indemnifying Party or its counsel has a conflict with respect to the defense of such Third Party Claim and its indemnification obligations hereunder. 
  
 17. Miscellaneous. 
  
 (a) Amendments. This Agreement shall not be modified or amended except
pursuant to an instrument in writing executed and delivered on behalf of each of the parties hereto. 
  
 (b) Notices. All notices required or permitted hereunder shall be in writing and shall be served on the parties at the following address:

  

	     If to the REIT Parties:
	  	 Innkeepers USA Trust
 306 Royal Poinciana
Way
 Palm Beach, Florida 33480
 Attention: Mark A.
Murphy
 Facsimile: (561) 832-2332

		
	     With Copies to:
	  	 Greenberg Traurig
 77 W. Wacker Drive,
Suite 2500
 Chicago, Illinois 60601
 Attention: Peter H.
Lieberman
 Facsimile: (312) 456-8435

		
	 	  	 Greenberg Traurig
 77 W. Wacker Drive,
Suite 2500
 Chicago, Illinois 60601
 Attention: Todd A.
Mazur
 Facsimile: (312) 456-8435

		
	     If to the IH Entities:
	  	 Innkeepers Hospitality
 302 Royal
Poinciana Way
 Palm Beach, Florida 33480
 Attention: Jeffrey H.
Fisher
 Facsimile: (561) 835-1800

		
	     With Copies to:
	  	 Patton Boggs LLP
 8484 Westpark Drive,
Suite 900
 McLean, Virginia 22102
 Attention: Christopher G.
Townsend

  

 31 

		
	 	  	Facsimile: (703) 744-8001

  
 Any such notices may
be sent by (i) certified mail, return receipt requested, postage prepaid in the U.S. mail, (ii) a nationally recognized overnight courier, or (iii) facsimile transmission. All notices shall be deemed delivered upon receipt or refusal to accept
delivery. The above addresses and facsimile numbers may be changed by written notice to the other party; provided that no notice of a change of address or facsimile number shall be effective until actual receipt of such notice. Copies of notices are
for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. 
  
 (c) Assignability. This Agreement shall not be assignable by any party hereto without the prior written consent of the other parties (which may be
withheld for any reason or no reason whatsoever), except that at or prior to any Closing the REIT may assign its rights and delegate its duties under this Agreement to one or more of its subsidiaries and may assign its rights under this Agreement to
its lenders for collateral security purposes, and after any Closing the REIT may assign its rights and delegate its duties under this Agreement to any third party capable of performing its duties hereunder. 
  
 (d) No Joint Venture. Nothing set forth in this Agreement shall be
construed to create a joint venture between any two or more of the parties hereto. 
  
 (e) Applicable Law and Consent to Jurisdiction. This Agreement shall be governed and controlled as to validity, enforcement, interpretation, construction, effect and in all other respects by the internal laws
of the State of Florida applicable to contracts made in that State. This Agreement has been executed and delivered in and shall be deemed to have been made in Palm Beach, Florida. The parties hereto agree to the exclusive jurisdiction of any state
or Federal court within the City of West Palm Beach, Florida and the county of Palm Beach, Florida with respect to any claim or cause of action arising under or relating to this Agreement, and waive personal service of any and all process upon it,
and consent to all services of process being made by registered mail, directed to it at its address as set forth in Section 17(b), and service so made shall be deemed to be completed when received. The parties hereto waive any objection based on
forum non conveniens and waive any objection to venue of any action instituted hereunder. Nothing in this Agreement shall affect the right to serve legal process in any other manner permitted by law. 
  
 (f) WAIVER OF TRIAL BY JURY. EACH OF THE PARTIES HERETO WAIVES THE
RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING SEEKING ENFORCEMENT OF SUCH PARTY’S RIGHTS UNDER THIS AGREEMENT. 
  
 (g) Time of the Essence. The parties hereto agree that time is of the essence with respect to this Agreement and the transactions contemplated
hereby. 
  
 (h) Non-Waiver. The failure in any one or more
instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement or to exercise any right or privilege in this Agreement conferred, or the waiver by said party of any breach of any of the terms,
covenants or conditions of this Agreement, shall not be construed as a 

  

 32 

 
subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no
such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. A breach of any representation, warranty or covenant shall not be affected by the fact
that a more general or more specific representation, warranty or covenant was not also breached. 
  
 (i) Entire Agreement. This Agreement and the documents and instruments to be delivered by the parties pursuant to the provisions hereof constitute
the entire agreement between the parties. Each exhibit and schedule shall be considered incorporated into this Agreement and expressly made of part hereof. Any amendments, or alternative or supplementary provisions to this Agreement must be made in
writing and duly executed by an authorized representative or agent of each of the parties hereto. 
  
 (j) Headings. Headings of the sections of this Agreement are for the convenience of the parties only and shall be given no substantive or
interpretive effect whatsoever. 
  
 (k) Severability. The
invalidity of any provision of this Agreement or portion of a provision shall not affect the validity of any other provision of this Agreement or the remaining portion of the applicable provision. 
  
 (l) Enforcement; Attorneys’ Fees. The parties agree that
irreparable damage will occur in the event that any of the provisions of this Agreement are not performed in accordance with the specific terms hereof or are otherwise breached. It is accordingly agreed that in addition to any other remedy to which
the parties are entitled at law or in equity, the parties shall be entitled to seek injunctive relief to prevent breaches of this Agreement and to seek specific enforcement of the terms and provisions hereof. If any action is brought by any party to
this Agreement to enforce or interpret its terms or provisions, the prevailing party will be entitled to reasonable attorneys’ fees and costs incurred in connection with such action prior to and at trial and on any appeal therefrom. 

 
 (m) Expenses. Except as otherwise set forth in this Agreement, each
party hereto shall bear all fees and expenses incurred by such party in connection with, relating to or arising out of the execution, delivery and performance of this Agreement and the consummation of the transaction contemplated hereby, including,
without limitation, financial advisors’, attorneys’, accountants’ and other professional fees and expenses. 
  
 (n) Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, and all such
counterparts shall constitute but one instrument. 
  
 (o) Risk
of Loss. In the event of a casualty or condemnation affecting any Hotel, no party shall have the right to terminate this Agreement and the applicable Lessee shall hold and assign, as of the applicable Lease Assignment Time, to the applicable
Lessor or TRS Lessee any and all proceeds of property insurance or any condemnation award relating to such casualty or condemnation that it receives or is entitled to receive. The applicable Lessee shall be 

  

 33 

 
entitled to retain the proceeds of business interruption insurance payable to such Lessee as a result of such casualty or condemnation affecting any Hotel
prior to or as of the applicable Lease Assignment Time, subject to such Lessee continuing to pay all Rent under the applicable Lease, when due, prior to and through the applicable Lease Assignment Time. 
  
 (p) Default. Subject to the limitations, terms and conditions
contained elsewhere in this Agreement, in the event that any of the REIT Parties default in its obligations under this Agreement, each of the IH Entities and the IH Manager shall have any and all rights at law and in equity. Subject to the
limitations, terms and conditions contained elsewhere in this Agreement, in the event that any of the IH Entities or the IH Manager default in its obligations under this Agreement, the REIT Parties shall have any and all rights at law and in equity.

  
 (q) Offsets. The parties hereto may offset amounts owed
or future amounts owing to other parties hereunder against any amounts owed or future amounts owing pursuant to any other agreements among the parties. 
  
 (r) Consents. Whenever the consent or approval of a party is required under this Agreement, such consent shall not be unreasonably withheld or
delayed unless the context clearly requires otherwise. 
  
 (s)
Publicity; Confidentiality. Neither the IH Manager nor any of the IH Entities shall issue or make any reports, statements or releases to the public or generally to its employees, customers, suppliers or other persons with respect to this
Agreement or the transactions contemplated hereby without the prior written consent of the REIT, which consent may be withheld in its sole discretion. Each party hereto shall keep confidential, and shall cause its directors, officers, employees,
agents, representatives and advisors to keep confidential, any information from time to time received by it from any other party regarding such other party or its business affairs; provided, however, that nothing herein shall restrict the disclosure
of any such information to the extent required by statute, rule (including New York Stock Exchange rules and rules and regulations of the Securities Exchange Commission), regulation or judicial process, or the disclosure of any such information
which is generally available to the public. 
  
 (t) Binding
Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their successors and permitted assigns. Nothing in this Agreement, express or implied, shall confer on any person other than the parties
hereto, and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
  
 (u) NONLIABILITY. NO TRUSTEE, OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE, MEMBER OR AGENT OF ANY PARTY HERETO SHALL BE HELD TO ANY PERSONAL
LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM AGAINST, ANY PARTY HERETO. ALL PERSONS DEALING WITH ANY PARTY HERETO, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF THAT PARTY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY
OBLIGATION. 
  
 (v) Survival. All covenants and agreements
of the IH Entities, the IH Manager 

  

 34 

 
and the REIT Parties shall survive each Closing, and all representations and warranties of the IH Entities, the IH Manager and the REIT Parties shall survive
each Closing for a period of five (5) years regardless of any investigation or lack of investigation by any of the parties hereto (and no covenants, agreements or representations and warranties shall merge into any instrument of conveyance).

  
 (w) Rule of Construction. The parties acknowledge and
agree that each has negotiated and reviewed the terms of this Agreement, assisted by such legal and tax counsel as they desired, and has contributed to its revisions. The parties further agree that the rule of construction that any ambiguities are
resolved against the drafting party will be subordinated to the principle that the terms and provisions of this Agreement will be construed fairly as to all parties and not in favor of or against any party. The word “including,” means
“including, without limitation.” For clarification purposes, all references to the IH Entities and Lessees herein shall include the IH Manager, which is also a lessee and manager under the Leases. 
  
 (x) Final Exhibits. The parties acknowledge and agree that the
exhibits and schedules hereto and the exhibits and schedules to the agreements attached hereto will take significant time and effort to complete and agree that, to the extent not completed as of the date hereof, such schedules and exhibits shall be
finalized, agreed upon by the parties, and attached hereto and thereto on or prior to the initial Closing, with each party acting in good faith. 
  
 [signature pages follow] 
  

 35 

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

	THE REIT PARTIES:
	
	 INNKEEPERS USA TRUST

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, General Counsel and Secretary

	
	 INNKEEPERS USA LIMITED
 PARTNERSHIP

		
	 By:
	 	 Innkeepers Financial Corporation

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS FINANCING
PARTNERSHIP,
 L.P.

		
	 By:
	 	 Innkeepers USA Trust

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, General Counsel and Secretary

	
	 INNKEEPERS FINANCING
PARTNERSHIP,
 II, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation II

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS FINANCING
PARTNERSHIP,
 III, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation III

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

  

 1 

	 INNKEEPERS FINANCING
PARTNERSHIP,
 IV, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation V

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE SILI I, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation III

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE SILI II, L.P.

		
	 By:
	 	 Innkeepers Residence Sili II, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE EAST
LANSING,
 L.P.

		
	 By:
	 	 Innkeepers Residence East Lansing, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE GRAND

RAPIDS, L.P.

		
	 By:
	 	 Innkeepers Residence Grand Rapids, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

  

 2 

	 INNKEEPERS RESIDENCE DENVER-
 DOWNTOWN, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation III

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE WICHITA
EAST,
 L.P.

		
	 By:
	 	 Innkeepers Financial Corporation III

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS SCHAUMBURG, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation V

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS WESTCHESTER, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation V

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS SUMMERFIELD
GENERAL,
 L.P.

		
	 By:
	 	 Innkeepers RI Northwest, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

  

 3 

	 INNKEEPERS SUMMERFIELD
GENERAL
 II, L.P.

		
	 By:
	 	 Innkeepers Financial Corporation V

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RI ALTAMONTE, L.P.

		
	 By:
	 	 Innkeepers RI Altamonte, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RI GENERAL, L.P.

		
	 By:
	 	 Innkeepers RI General, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RI NORTHWEST, L.P.

		
	 By:
	 	 Innkeepers RI Northwest, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS SUNRISE TINTON
FALLS,
 L.P.

		
	 By:
	 	 Innkeepers Financial Corporation IV

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS HAMPTON NORCROSS, L.P.

		
	 By:
	 	 Innkeepers Hampton Norcross, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

  

 4 

	 INNKEEPERS RESIDENCE ATLANTA-
 DOWNTOWN, L.P.

		
	 By:
	 	 Innkeepers Residence Atlanta-Downtown,
 Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE
PORTLAND,
 L.P.

		
	 By:
	 	 Innkeepers Residence Portland, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE SAN
MATEO,
 L.P.

		
	 By:
	 	 Innkeepers Residence San Mateo, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE EDEN
PRAIRIE,
 L.P.

		
	 By:
	 	 Innkeepers Residence Eden Prairie, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE
ARLINGTON
 (TX), L.P.

		
	 By:
	 	 Innkeepers Residence Arlington, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE ADDISON
(TX),
 L.P.

  

 5 

	 By:
	 	 Innkeepers Residence Addison, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 INNKEEPERS RESIDENCE SHELTON, L.P.

		
	 By:
	 	 Innkeepers Residence Shelton, Inc.

	 Its:
	 	 General Partner

	
	 /s/    MARK A.
MURPHY        

	 Mark A. Murphy, Vice President

	
	 THE LESSEES:

	
	 INNKEEPERS HOSPITALITY, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY II, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY III, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY IV, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY V, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

  

 6 

	 INNKEEPERS HOSPITALITY VI, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY VII, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 INNKEEPERS HOSPITALITY
 MANAGEMENT, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

	
	 THE MANAGER:

	
	 INNKEEPERS HOSPITALITY
 MANAGEMENT, INC.

		
	 By:
	 	 /s/    JEFFREY H.
FISHER        

	 	 	 Jeffrey H. Fisher, President

  

 7 

 Attachment 1 
  
 “Act” shall have the meaning set forth in the Recitals. 
  
 “Aggregate Lease Assignment Payment” shall have the meaning
set forth in Section 4(c)(i) of this Agreement. 
  
 “Agreement” shall have the meaning set forth in the introductory paragraph of this document. 
  
 “Assignment Date” shall mean the date on which a Lease is assigned and the related transactions are closed with respect thereto in
accordance with the terms of this Agreement. 
  
 “Closing” shall have the meaning set forth in Section 6 of this Agreement. 
  
 “Closing Date” shall have the meaning set forth in Section 6 of this Agreement. 
  
 “Contract” and “Contracts” shall have the
meanings set forth in subsection (iv) of the definition of “Leasehold Assets” as set forth in Attachment 1 to this Agreement. 
  
 “Damages” shall have the meaning set forth in Section 16(b)(i) of this Agreement. 
  
 “Final Operational Settlement Statement” shall have the
meaning set forth in Section 4(c)(ii)(2) of this Agreement. 
  
 “Franchise Agreement” and “Franchise Agreements” shall have the meaning set forth in the Recitals. 
  
 “GAAP” shall mean generally accepted accounting principles and procedures in the United States, as in effect from time to time,
consistent with such principles and procedures utilized by the REIT, based on the Uniform System. 
  
 “Hotel” and “Hotels” shall have the meanings set forth in the Recitals. 
  
 “IH Ancillary Documents” shall have the meaning set forth in
Section 5(a)(ii) of this Agreement. 
  
 “IH
Entities” shall have the meaning set forth in the introductory paragraph of this Agreement. 
  
 “IH Manager” shall have the meaning set forth in the introductory paragraph of this Agreement. 
  
 “Indemnified Party” shall have the meaning set forth in
Section 16(b)(iii) of this Agreement. 
  
 “Indemnifying
Party” shall have the meaning set forth in Section 16(b)(iv) of this Agreement. 

 “Individual Lease Assignment Payment” shall have the meaning set forth in Section
4(c)(i) of this Agreement. 
  
 “Innkeepers USA
Partnership” shall have the meaning set forth in the introductory paragraph of this Agreement. 
  
 “Intellectual Property” shall mean all of the following that are owned by or licensed to any of the IH Entities or the IH Manager (a) all
domestic and foreign patents and applications, and all reissues, reexaminations, divisions, continuations, renewals, extensions, and continuations-in-part thereof, (b) all inventions (whether patentable or not), improvements, trade secrets, and
other proprietary information, including, without limitation, know-how, technology, technical data, schematics and customer lists, and all documentation relating to any of the foregoing, (c) all copyrights, copyright registrations and applications
therefor and other rights correspondent thereto, (d) all designs, processes, methods, tooling, drawings, blueprints, product testing data, work methods, bills of materials and specifications and any registrations and applications therefor, (e) all
trademarks, service marks, trademark registrations, and trade names (f) all income, royalties, damages and payments now and hereafter due and/or payable with respect to any of the foregoing and (g) all rights to sue for past, present and future
infringements or misappropriations of any of the foregoing. 
  
 “Interim Lease Termination” shall have the meaning set forth in Section 10 of this Agreement. 
  
 “Interim Lease Termination Payment” shall have the meaning set forth in Section 10 of this Agreement. 
  
 “Laws” shall have the meaning set forth in Section
5(a)(xviii) of this Agreement. 
  
 “Lease” and
“Leases” shall have the meanings set forth in the Recitals. 
  
 “Lease Assignment Time” shall have the meaning set forth in Section 2(a) of this Agreement. 
  
 “Leasehold Assets” shall mean as follows: 
  
 (i) All expendable supplies, including, but not limited to, all china, glassware, linens, towels, washcloths, bedding, napkins,
tablecloths, silverware, kitchen and bar small goods, paper goods, guest supplies, cleaning and maintenance supplies, office supplies, operating supplies, printing, stationery and uniforms owned by the Lessees and located at the Hotels or held in
storage for use at the Hotels; 
  
 (ii) All
fixtures, furniture, furnishings, fittings, equipment, machinery, apparatus, appliances, computer hardware and equipment, software, reservations terminals, vehicles, building materials, telephones and other communications equipment, copiers,
facsimile machines, postal machines, televisions, art work, signs, vacuum cleaners, video equipment and other articles of personal property (including any of the foregoing which has been fully depreciated) owned by Lessees and located at the Hotels,
held in storage for use at the Hotels or used in the operation of the Hotels, excluding 

 
therefrom all property owned by any hotel franchisor or by any tenant under a Space Lease; 
  
 (iii) All opened and unopened food and beverages (alcoholic and non-alcoholic) owned by the Lessees and
located at the Hotels or held in storage for use at the Hotels; 
  
 (iv) All service and equipment contracts, purchase orders, equipment leases, insurance policies and other contracts or agreements relating to the ownership, operation, maintenance, provisioning or equipping of the
Hotels, together with all assignable related written warranties and guaranties, but not including any Leases, Franchise Agreements, Licenses or employment agreements or relationships (each a “Contract” and collectively, the
“Contracts”); 
  
 (v) All goodwill,
trade names and logos (if any, and used solely in connection with the Hotels, and only to the extent of Lessees’ interest therein, if any), the Hotels’ websites and web addresses, if any, and the Hotels’ telephone numbers; 

 
 (vi) All contracts or reservations for the use or
occupancy of guest rooms, meeting rooms and/or banquet facilities of the Hotels, and (except to the extent the TRS Lessees have received a credit therefor on the Settlement Statements) all advance deposits with respect thereto. 
  
 (vii) All books of original financial entry, books of
account and other records with respect to the Hotels, and all guest lists, customer files, group files, sales records, sales literature, brochures and other written marketing materials used in conducting the business and operations of the Hotels, to
the extent in the possession of the Lessees, in such form as they exist on the effective date; 
  
 (viii) All federal, state local and foreign governmental licenses, permits, certificates, authorizations and approvals, whether applied
for, pending or issued, (1) used in or relating to the ownership, leasing, occupancy or operations of the Hotels, including, without limitation, those necessary for the sale and on-premises consumption of liquor and other alcoholic beverages, to the
extent held by the Lessees, or (2) with respect to the operation of the Hotels (each, a “License” and collectively, the “Licenses”); 
  
 (ix) All leases, subleases and other agreements for the use of space at the Hotels, including, but not limited to, agreements for the use
of rooftop space of the Hotels for communications and leases for vending and laundry machines (each, a “Space Lease” and collectively, the “Space Leases”); and 
  
 (x) All petty cash funds at the Hotels and cash in house banks and on deposit, but only to the extent the
Lessees have received a credit therefor on the Settlement Statements; and 
  
 The parties to this Agreement acknowledge and agree that (a) the Leasehold Assets do not include any computer software which is proprietary to the managers or the franchisors and/or their affiliates, and (b) to the
extent any Leasehold Assets are subject to, used by or licensed to 

 
the Lessees or the managers under any License or a Franchise Agreement, or are subject to any Contract, such transfer to and use by the TRS Lessees of such
Leasehold Assets shall be subject to (i) the terms and conditions of such License, Franchise Agreement, or Contract and (ii) all rights in such Leasehold Assets held by the licensor or franchisor under such License or Franchise Agreement, or the
contract party under such Contract. 
  
 “Lessee”
and “Lessees” shall have the meanings set forth in the introductory paragraph of this Agreement. 
  
 “Lessor” and “Lessors” shall have the meanings set forth in the introductory paragraph of this Agreement. 
  
 “License” and “Licenses” shall have the
meanings set forth in subsection (viii) of the definition of “Leasehold Assets” as set forth in Attachment 1 to this Agreement. 
  
 “Management Agreement” shall have the meaning set forth in Section 4(b) of this Agreement. 
  
 “Material Adverse Effect” shall mean a material adverse
affect on the assets, liabilities, condition (financial or otherwise), business, prospects or results of operations on or with respect to the particular property or entity in question. 
  
 “Material Lease Assignment Consents” shall have the meaning set forth in Section 3(c) of this Agreement.

  
 “PIP” shall have the meaning set forth in
Section 2(b)(ii) of this Agreement. 
  
 “Preliminary
Operational Settlement Statement” shall have the meaning set forth in Section 4(c)(ii)(1) of this Agreement. 
  
 “REIT” shall have the meaning set forth in the introductory paragraph of this Agreement. 
  
 “REIT Ancillary Documents” shall have the meaning set forth
in Section 5(b)(ii) of this Agreement. 
  
 “REIT
Parties” shall have the meaning set forth in the introductory paragraph of this Agreement. 
  
 “Rent” shall be the amount payable under each Lease as defined in each Lease. 
  
 “Settlement Statements” shall have the meaning set forth in
Section 4(c)(ii)(2) of this Agreement.  
  
 “Significant Supplies” shall mean supplies in the following categories as required by a franchisor: (a) irons/ironing boards, (b) coffee makers, (c) kitchen supplies, equipment and china for guest rooms in any extended stay
Hotels and with respect to continental breakfasts, (d) linens, (e) maintenance supplies, (f) housekeeping supplies, (g) china and (h) other operational supplies, including, without limitation, paper products, cleaning materials and similar items.

 “Space Lease” and “Space Leases” shall have the meanings set forth in
Section (ix) of the definition of “Leasehold Assets” as set forth in Attachment 1 to this Agreement. 
  
 “Third Party Claim” shall have the meaning set forth in Section 16(b)(ii) of this Agreement. 
  
 “TRS Lease” and “TRS Leases” shall have the
meanings set forth in the Recitals. 
  
 “TRS
Lessee” and “TRS Lessees” shall have the meanings set forth in the introductory paragraph of this Agreement. 
  
 “Uniform System” shall mean the then current edition of the “Uniform System of Accounts for the Lodging Industry” published by
the American Hotel and Motel Association, with such modifications as may be required by the provisions of this Agreement, consistent with the application thereof by the REIT. 
  
 “WARN Act” shall have the meaning set forth in Section 14(d) of this Agreement.Form of Management Agreement

 Exhibit 10.2 
  
 HOTEL MANAGEMENT AGREEMENT 
  
 THIS HOTEL MANAGEMENT AGREEMENT (“Agreement”) is made and entered into this      day of
            , 2003 (“Effective Date”) by and between KPA Leaseco         , Inc., a Virginia corporation with its
principal place of business at 306 Royal Poinciana Plaza, Palm Beach, Florida 33480 (“Lessee”), and INNKEEPERS HOSPITALITY MANAGEMENT, INC., a Florida corporation, with its principal place of business at 302 Royal Poinciana Plaza, Palm
Beach, Florida 33480 (“Manager”). 
  
 RECITALS

  
 WHEREAS,
                        , a
                         (“Owner”) is the owner of fee title1 to the parcel of real property described on Exhibit A attached hereto and made a part hereof (which, collectively with its buildings and the
facilities contained thereon, shall be defined herein as the “Hotel”). 
  
 WHEREAS, Owner has leased the Hotel to Lessee pursuant to a percentage lease agreement (as the same may be amended, modified, supplemented or restated from time to time, the “Percentage Lease”), a copy of
which is attached to that certain Lease Identification Letter entered into by the parties simultaneously herewith. 
  
 WHEREAS, simultaneously herewith, Owner is entering into that certain Guaranty Agreement dated as of even date herewith and attached hereto as
Exhibit 1 pursuant to which Owner will guarantee the obligations of Lessee hereunder up to the value of the Hotel. 
  
 WHEREAS, Lessee desires to have Manager manage and operate the Hotel from and after the Management Commencement Date (as defined herein), and Manager is
willing to perform such services on the terms and conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Manager and Lessee agree as follows:

  
 Definition of Terms 
  
 When used herein, the following terms shall mean and be defined as follows:

  
 1.01 Accounting Period shall be defined as meaning a
calendar month. 
  
 1.02 Accounting Services Fee shall be
defined as meaning an amount payable to Manager for accounting services provided under and pursuant to this Agreement in an amount equal to Seven Hundred Fifty Dollars ($750) per month. The Accounting Services Fee shall be separate from and in
addition to any other fees, payments or charges due hereunder, including without limitation those for group services. 
  
 1.03 Affiliate shall be defined as meaning any individual or entity, directly or indirectly 

	1	 	Revise for properties with ground leases. 

 
controlling, controlled by, or under common control with a party, including, without limitation, through one or more intermediaries. With respect to an
entity, the term “control” (for purposes of this definition, the definition of Sale of the Hotel and Section 16) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of the controlled entity, whether through the ownership of voting securities, by contract or otherwise. Manager and its principals, on the one hand, and Lessee and Owner, on the other hand, shall not be deemed to be Affiliates of one another for
purposes of this Agreement. 
  
 1.04 Agreement shall have
the meaning set forth in the Preamble. 
  
 1.05 Agreements
shall have the meaning set forth in Section 13.12A. 
  
 1.06 Annual Operating Projection means the estimated budget statements of profit and loss, cash flows and a balance sheet prepared and submitted by Manager and approved by Lessee in accordance with Section 12.04, which sets forth
Manager’s reasonable estimate of the Hotel’s Gross Revenues, Deductions and Operating Profit for the forthcoming Fiscal Year. 
  
 1.07 Annual Operating Statement shall be defined as meaning the statement prepared and submitted by Manager in accordance with Section 12.02, which
sets forth in reasonable detail the Hotel operations for the prior Fiscal Year. 
  
 1.08 Appraiser shall have the meaning set forth in Section 4.01. 
  
 1.09 Available Cash Flow shall be defined as meaning an amount, with respect to each Fiscal Year or portion thereof, equal to the excess (if any)
of the Operating Profit for such Fiscal Year over Lessee’s Priority. 
  
 1.10 Base Management Fee shall be an amount payable to Manager pursuant to Section 9.03C for services provided under and pursuant to this Agreement in an amount equal to three percent (3%) of Gross Revenues.

  
 1.11 Building Estimate shall be defined as meaning the
statement prepared and submitted by Lessee to Manager for informational purposes only in accordance with Section 10.03, which sets forth Lessee’s estimate of the amounts required to cover the expenditures with respect to Major Capital
Improvements for the following Fiscal Year. At Lessee’s option, the FF&E Estimate and the Building Estimate may be combined into a single, integrated estimate and document. 
  
 1.12 Business Plan shall be defined as meaning a collective term to describe the Annual Operating Projection, the
FF&E Estimate, the final Building Estimate and the Marketing Plan. 
  
 1.13 Capital Expenditure Policy shall have the meaning set forth in Section 10.06. 
  
 1.14 CPI shall be defined as meaning the Consumer Price Index for All Urban Consumers (1982-84 = 100) as published by the United States Bureau of
Labor Statistics, U.S. City Average. If the compilation and/or publication of the CPI shall be discontinued or transferred to any other governmental department or bureau or agency, Lessee shall (subject to Manager’s approval, which shall not be
unreasonably withheld) fix an alternate index or method to implement the parties’ intention that the purchasing power of the amounts to be adjusted by reference to the CPI shall be the same as the 

  

 2 

 
purchasing power of the stated amounts as of the Effective Date. Likewise, if the CPI shall be modified as to components, computing methods or otherwise,
then Lessee may (subject to Manager’s approval, which shall not be unreasonably withheld) fix an alternate index or method, as aforesaid, or Lessee may utilize an appropriate conversion factor so as to achieve substantially the same result as
would have been obtained if the CPI in effect and as computed, calculated and constituted on the Effective Date were still then in effect. 
  
 1.15 Change of Control Event of Innkeepers shall mean in a single transaction or series of related transactions (i) a sale or other transfer by
Innkeepers of all or substantially all of its assets (which for these purposes shall expressly include any sale or disposal of Innkeepers USA Limited Partnership or all or substantially all of its assets), (ii) a sale resulting in fifty percent
(50%) or more of the outstanding common shares of Innkeepers being owned by a single purchaser or group of related purchasers or (iii) a merger, consolidation or other business combination transaction of Innkeepers as a result of which the persons
who, in the aggregate, owned all the outstanding common shares immediately prior to the merger, consolidation or other business combination transaction own, in the aggregate, less than fifty percent (50%) of the outstanding common equity of the
survivor. 
  
 1.16 Change of Control Event of Manager shall
mean in a single transaction or series of related transactions (i) a sale or other transfer by Manager of substantially all of its assets, (ii) a sale or other transfer for value resulting in fifty percent (50%) or more of the outstanding common
stock of Manager being owned by a single person or entity or group of related persons or entities or (iii) a merger, consolidation or other business combination transaction of Manager as a result of which the persons who, in the aggregate, owned all
the outstanding common stock immediately prior to the merger, consolidation or other business combination transaction own, in the aggregate, less than fifty percent (50%) of the outstanding common equity of the survivor. Notwithstanding the
foregoing, a transfer by Manager to an entity controlled by Jeffrey H. Fisher, which transfer is made for estate planning purposes (and which remains controlled by Jeffrey H. Fisher (other than upon his death or disability)), shall not be deemed a
Change of Control Event of Manager. 
  
 1.17 Chief Executive
Officer shall have the meaning set forth in Section 19.17E. 
  
 1.18 Claims shall have the meaning set forth in Section 13.12A. 
  
 1.19 Code shall have the meaning set forth in Section 5.02. 
  
 1.20 Competitive Set shall mean the group of comparable service hotels which are closest in geographical distance from the Hotel and which are
generally within the same hotel market segment as the Hotel. As of the Effective Date, the parties agree that the Competitive Set shall be comprised of those hotels set forth on Schedule 1.20 attached hereto. Lessee and Manager agree to
mutually, reasonably and in good faith, discuss appropriate changes to the foregoing list pursuant to Section 3.02B. hereof and reflect any agreed changes on Schedule 1.20 attached hereto. 
  
 1.21 Contract Term shall have the meaning set forth in Section 4.01D.

  
 1.22 Commitment shall have the meaning set forth in
Section 3.03K. 
  
 1.23 Decline Percentage shall have the
meaning ascribed thereto in Section 3.02B hereof. 
  

 3 

 1.24 Deductions shall be defined as all operating expenses in connection with the operation of the
Hotel or the generation or creation of Gross Revenues, determined in accordance with the Uniform System of Accounts and past practice with respect to the Hotel, or as may otherwise be appropriate to include an item as such an operating expense,
including, without limitation, the following: (i) cost of sales and salaries, wages, fringe benefits, payroll taxes and other cash payroll costs of employees with respect to the Hotel; (ii) departmental expenses, administrative and general expenses,
the cost of Hotel advertising and business promotion, heat, light and power, routine repairs and maintenance under Section 10.01 and FF&E expenditures which are not capital expenditures as determined under the Capital Expenditure Policy; (iii)
the cost of Inventories and Fixed Asset Supplies (as defined herein) consumed in the operation of the Hotel; (iv) the aggregate amount of accounts receivable written off (or reduced) as uncollectible, and (without double counting) any reserves for
doubtful accounts established by Manager and Lessee as part of the Business Plan process described in Section 12; (v) all costs of independent professionals or other third parties who perform services required or permitted hereunder if and to the
extent the cost is not capitalized in accordance with GAAP, including without limitation, third parties providing legal services to Manager in connection with matters involving the Hotel (excluding legal fees of the parties hereto for disputes
between Lessee and Manager with respect to the provisions of this Agreement); (vi) the cost and expense of technical consultants and operational experts for specialized services in connection with non-routine Hotel work; (vii) the Base Management
Fee and the Accounting Services Fee; (viii) without duplication for payments treated as Deductions in the immediately following paragraph, all the costs and expenses incurred by Lessee pursuant to the Franchise Agreement including, but not limited
to, franchise fees, advertising fees, chain services fees, and the like; (ix) insurance costs and expenses with respect to the policies required to be maintained pursuant to Section 13 (provided property insurance costs and expenses shall not be a
Deduction); (x) all costs and expenses to obtain and keep in full force and effect any licenses and permits required for the operation of the Hotel and related facilities, including without limitation, liquor licenses for the sale of alcoholic
beverages at all restaurants, bars, lounges, banquet rooms, meeting rooms and guest rooms at the Hotel; (xi) charges for group services, if any; (xii) such other costs and expenses incurred by Manager as are specifically provided for elsewhere in
this Agreement or are otherwise reasonably related to the operation of the Hotel, unless such are excluded specifically from Deductions elsewhere in this Agreement; (xiii) all expenditures made or incurred by Lessee or Owner which are required by
the terms of the Agreement to be borne by Manager, or which otherwise arise out of Manager’s breach or failure to comply with any of the terms of this Agreement (unless and until Manager reimburses Lessee for the amount of such expenditure),
including, without limitation, expenditures to which Lessee Indemnified Parties (as defined in Section 13.12B) are entitled to indemnification under Section 13.12B; (xiv) Taxes (other than hotel, bed and transient occupancy taxes); (xv) any other
item which pursuant to the terms and conditions of this Agreement is to be treated as a Deduction and (xvi) rental costs and expenses (other than under capitalized lease obligations) with respect to any personal property leases used in the operation
of the Hotel. The provisions of this paragraph shall apply regardless of whether an item is paid by Lessee or Manager. 
  
 In addition to the items listed in the paragraph above, Deductions for any period shall also include the following fees that were paid or are payable to
Marriott for the period: (1) the “Conversion Fee”, as defined in the Omnibus Agreement, dated April 25, 2003, between Innkeepers USA Trust, Innkeepers Hospitality, Marriott International, Inc. (“Marriott”), and certain of their
affiliates (“Omnibus Agreement”) and (2) the additional 1.5% franchise fee payable to Marriott under the franchise agreement for 10 years pursuant to the Omnibus Agreement. Notwithstanding anything to the contrary contained herein, (i)
Gross Revenues shall not include any revenue and (ii) Deductions shall not include any item of expense (except as expressly provided in the immediately preceding sentence of this paragraph), in each case, as would otherwise be determined in
accordance in with GAAP related to the items referenced in the immediately preceding sentence. 
  
 Deductions shall not include and shall specifically exclude the following: (i) debt service payments related to any financing of the Hotel or the premises on which the Hotel is located; (ii) ground lease rental
or other rental payments pursuant to any ground lease in connection with the Hotel; (iii) any capital expenditures by Lessee, including FF&E expenditures which are capital expenditures, as determined by GAAP or the Uniform System; (iv) rental
payments pursuant to any capital leases approved by Lessee; (v) the cost of external (third party) audits of Hotel operations and/or with respect to the Lessee entity itself; and (vi) other recurring and non-recurring ownership costs, including
without 

  

 4 

 
limitation Lessee’s entity administration costs; all of which shall be paid by Lessee from its own funds, and not from Gross Revenues. 
  
 1.25 Default shall have the meaning set forth in Section 15.

  
 1.26 Early Termination Fee shall have the meaning set
forth in Section 4.01A. 
  
 1.27 Effective Date shall have
the meaning set forth in the Preamble. 
  
 1.28 Employee
Claims shall be defined as meaning any and all claims (including without limitation all fines, judgments, penalties, costs, litigation and/or arbitration expenses, attorneys’ fees and expenses, and costs of settlement with respect to any
such claim) by any employee or employees of Manager against Lessee or Manager with respect to his, her and/or their employment at the Hotel, including, without limitation, those which: (i) are eventually resolved by arbitration, by litigation or by
settlement; (ii) involve allegations that any applicable employment-related contract(s) affecting the employee(s) at the Hotel have been breached; and (iii) involve allegations that any employment laws have been violated. 
  
 1.29 Environmental Laws shall have the meaning set forth in Section
1.45. 
  
 1.30 Event of Default shall have the meaning set
forth in Section 15. 
  
 1.31 Expense Test Failure shall
have the meaning ascribed thereto in Section 3.02A. 
  
 1.32
Expiration shall have the meaning set forth in Section 1.86. 
  
 1.33 Extension Term shall have the meaning set forth in Section 3.01. 
  
 1.34 Fair Market Value shall have the meaning set forth in Section 4.01D. 
  
 1.35 FF&E shall be defined as meaning the fixtures, furnishings and equipment in and of the Hotel, including, without limitation, all fixtures,
furniture, furnishings, equipment (not including Fixed Asset Supplies and Inventories), apparatus and other personal property used in, or held in storage for use in (or if the context so dictates, required in connection with), or required for, the
operation of the Hotel. 
  
 1.36 FF&E Estimate shall be
defined as meaning an estimate prepared and submitted by Lessee to Manager for informational purposes only in accordance with Section 10.02, which sets forth Lessee’s estimate of the capital expenditures necessary for replacement and renewal of
the Hotel FF&E and for building repairs for the following Fiscal Year. 
  
 1.37 Fiscal Year shall be defined as meaning each period commencing at 12:00 AM on January 1st and ending at 11:59:59 PM on December 31st. The partial Fiscal Year between the Management
Commencement Date and the December 31st first following the Management Commencement Date shall be deemed to be its
own Fiscal Year, albeit a short Fiscal Year, and if necessary or appropriate adjustments shall be made to this Agreement’s reporting and accounting procedures to account therefor. The Fiscal Year in which this Agreement is terminated shall be
the final Fiscal Year under this Agreement, and if the Agreement is terminated prior to midnight on December 31st of
such year it shall be deemed to be its own Fiscal Year, albeit a short Fiscal Year, and if necessary 

  

 5 

 
or appropriate, adjustments shall be made to this Agreement’s reporting and accounting procedures to account therefor. 
  
 1.38 Fixed Asset Supplies shall be defined as meaning supply items
included within “Property and Equipment” under the Uniform System of Accounts, including without limitation linen, china, glassware, silver, uniforms and similar items. 
  
 1.39 Franchisor shall have the meaning set forth in Section 1.41. 
  
 1.40 Force Majeure Event shall be defined as meaning any one or more
of the following events or circumstances that, alone or in combination, materially and adversely affects the operation of the Hotel: fire, earthquake, storm or other casualty; strikes; terrorism, war, rebellion, riots or other civil unrest; or any
other similar event or circumstance of an extraordinary nature which is beyond Manager’s reasonable control. 
  
 1.41 Franchise Agreement shall be defined as meaning that certain Franchise Agreement dated
                 between
                             (“Franchisor”) and Lessee with respect to operating
within the hotel brand, as amended or renewed from time to time, and including any related agreements which may impact the operation of the Hotel. 
  
 1.42 GAAP shall have the meaning set forth in Section 10.06. 
  
 1.43 GOP Percentage shall have the meaning ascribed thereto in Section 3.02C. 
  
 1.44 Gross Revenues shall be defined as meaning all revenues and
receipts of every kind derived from operating the Hotel, classified as such consistent with the Uniform System of Accounts, relevant industry practices and relevant GAAP, including, but not limited to: income (from both cash and credit
transactions), before commissions and discounts for prompt or cash payments, from rental of rooms, stores, offices, meeting, exhibit or sales space of every kind; license, lease and concession fees and rentals; income from vending machines; health
club membership fees; food and beverage sales; wholesale and retail sales of merchandise; service charges, and proceeds, if any, from business interruption or other loss of income insurance. Gross Revenues shall not include (i) gratuities, including
tips, paid to Hotel employees by third parties; (ii) Taxes collected directly from patrons or guests or included as part of the sales price of any rooms, goods, or services or as part of the sales price of any goods, services, or displays, including
gross receipts, admission, cabaret, or similar or equivalent taxes; (iii) the proceeds realized from the sale of capital assets (including FF&E) no longer necessary to the operation of the Hotel; (iv) proceeds of any insurance other than
business interruption insurance or other insurance against loss of income; (v) condemnation awards; (vi) gross receipts received by lessees, licensees, or concessionaires of the Hotel; (vii) proceeds from any financing or refinancing, including
loans from Affiliates of Owner; (viii) proceeds of any judgment or settlement not received as compensation for actual or potential loss of Gross Revenues or Operating Profit; (ix) interest earned on any sums which may be deposited in any Hotel
Account, the Operating Account or other bank accounts established pursuant to this Agreement (all of which interest shall be the property of Lessee); (x) rebates, discounts or credits of a similar nature, paid or returned in the course of obtaining
Gross Revenues (not including charge or credit card discounts, which shall not constitute a deduction from revenues in determining Gross Revenues, but shall constitute a Deduction in determining Operating Profit); and (xi) rental received by Lessee
for space leases, including, without limitation, rooftop leases and all 

  

 6 

 
telecommunications and similar leases and licenses described in Section 6.03.2 
  
 1.45 Hazardous Materials shall be defined as meaning and including petroleum products, flammable explosives, radioactive materials, asbestos or any material containing asbestos, polychlorinated biphenyls,
and/or any hazardous, toxic or dangerous waste, substance or material defined as such, or as a Hazardous Substance or any similar term, by, in, or for the purposes of all environmental laws now or hereafter applicable to the Hotel, including,
without limitation, Section 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (the “Environmental Laws”), or which may present a significant risk of harm to guests, invitees or employees of the
Hotel. 
  
 1.46 Holding Account shall have the meaning set
forth in Section 12.03A. 
  
 1.47 Hotel shall have the
meaning set forth in the Recitals. 
  
 1.48 Hotel Accounts
shall be defined as meaning all bank accounts established pursuant to Section 12.03 other than the Operating Account and the Holding Account. 
  
 1.49 Incentive Management Fee shall be defined as meaning an amount payable to Manager pursuant to Section 9.03D that is equal to fifty percent
(50%) of Available Cash Flow in any Fiscal Year (or portion thereof). 
  
 1.50 Initial Term shall have the meaning set forth in Section 3.01. 
  
 1.51 Innkeepers shall have the meaning set forth in Section 2.04B(ii). 
  
 1.52 Intellectual Property shall be defined as meaning Manager’s proprietary software, including without limitation the Software (as defined
herein), Manager’s proprietary forms, manuals, brochures and directives issued by Manager to its employees at the Hotel regarding procedures, Manager’s servicemarks and Manager’s proprietary techniques to be used in operating the
Hotel. All Intellectual Property owned and used by Manager in connection with the Hotel is listed in Schedule 1.52; it being understood and agreed that Manager may acquire, license or develop additional Intellectual Property for use in
connection with the operation of the Hotel (and to modify such Schedule 1.52 accordingly), with the prior written consent of Lessee, which shall not be unreasonably withheld. 
  
 1.53 Inventories shall be defined as meaning “Inventories” as defined in the Uniform System of Accounts,
and shall include without limitation the following: provisions in storerooms, refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical supplies; stationery; and other supplies
and similar items. 
  
 1.54 Legal Requirements shall be
defined as meaning all public laws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governments and governmental authorities, which, now or hereafter, may be applicable to the
premises and the operation thereof, including, without limitation, those relating to zoning, building, life/safety, environmental and health, employee benefits, and providing continued health care coverage under 

	2	 	Exclusion for Germantown restaurant lease will be added to the Management Agreement for such property. 

  

 7 

 
ERISA. 
  
 1.55 Lessee shall be defined as meaning the entity which is described as such in the preamble to this Agreement, inclusive of its successors and
assigns, provided that such succession and assignment is undertaken in full compliance with the terms and conditions of this Agreement. 
  
 1.56 Lessee Indemnified Parties shall have the meaning set forth in Section 13.12B. 
  
 1.57 Lessee’s Intellectual Property shall have the meaning set forth in Section 17.03. 
  
 1.58 Lessee’s Priority as of a date of determination shall be
defined as meaning the total Rent which is owed to Owner by Lessee under the Percentage Lease, and which is unpaid as of such date of determination, on a cumulative basis from the Effective Date, including the amount of any accrued and unpaid Rent
due Owner for any prior Fiscal Year or portion thereof as contemplated by the Pooling and Cumulation Agreement. 
  
 1.59 Lessee Taxes shall have the meaning set forth in Section 11.01. 
  
 1.60 Major Capital Improvements shall mean all major repairs, alterations and improvements to, as well as for the
renewals and replacements of, the structural, mechanical, electrical, heating, ventilating, air conditioning, plumbing and vertical transportation elements of the Hotel building. 
  
 1.61 Managed Hotels shall be defined as meaning, collectively, the Hotel and all other hotels within the United
States of America operated by Manager or its Affiliates for Lessee or its Affiliates. 
  
 1.62 Management Commencement Date shall be defined as meaning the date upon which Manager commences operation of the Hotel pursuant to this Agreement. The Management Commencement date shall be the date hereof
and shall be confirmed in writing by Manager, unless otherwise agreed by the parties. 
  
 1.63 Management Fees shall have the meaning set forth in Section 9.01. 
  
 1.64 Manager shall have the meaning set forth in the Preamble. 
  
 1.65 Manager Indemnified Parties shall have the meaning set forth in Section 13.12A. 
  
 1.66 Market Decline shall have the meaning ascribed thereto in Section
3.02B. 
  
 1.67 Marketing Plan shall be defined as meaning
the annual marketing plan for the Hotel developed by Manager. The Marketing Plan shall include all items included in the marketing plan prepared by Manager for internal use in relation to the Hotel. 
  
 1.68 Marriott shall have the meaning set forth in Section
1.24 
  
 1.69 Mortgage shall be defined as meaning
any security instrument which encumbers the Hotel and/or the Hotel premises, including, without limitation, any and all mortgages, deeds of trust, security deeds and similar instruments. 
  
 1.70 Mortgagee shall be defined as meaning the holder of, or trustee under, any Mortgage, or 

  

 8 

 
the holder of any indebtedness secured thereby. 
  
 1.71 New Management Contract shall have the meaning set forth in Section 4.01B. 
  
 1.72 Notice Period shall have the meaning set forth in Section 3.02D. 
  
 1.73 Omnibus Agreement shall have the meaning set forth in
Section 1.24 
  
 1.74 Operating Account shall have the
meaning set forth in Section 12.03A. 
  
 1.75 Operating
Profit shall be defined as meaning the Gross Revenues minus Deductions. 
  
 1.76 Other Managed Hotels shall be defined as meaning all Managed Hotels other than the Hotel. 
  
 1.77 Overdue Rate shall be defined as meaning the lesser of (i) the Prime Rate plus five percentage points or (ii) the highest lawful rate under
applicable law. 
  
 1.78 Owner shall have the meaning set
forth in the Recitals. 
  
 1.79 Percentage Lease shall have
the meaning set forth in the Recitals. 
  
 1.80 Pooled
Agreements shall mean the management agreements for each of the Pooled Hotels. 
  
 1.81 Pooled Hotels shall mean all hotel properties described on Schedule 1.81 attached hereto, as may be amended from time to time pursuant to the terms of the Pooling and Cumulation Agreement.

  
 1.82 Pooling and Cumulation Agreement shall mean that
certain Pooling and Cumulation Agreement made as of this      day of             , 2003 by Lessee and Manager, in the form attached hereto as
Exhibit B. 
  
 1.83 Prime Rate shall be
defined as meaning the “prime rate” as published in the “Money Rates” section of The Wall Street Journal; however, if such rate is, at any time during the term of this Agreement, no longer so published, the term “Prime
Rate” shall mean the average of the prime interest rates which are announced, from time to time, by the three (3) largest banks (by assets) headquartered in the United States which publish a “prime rate.” 
  
 1.84 Prior Year GOP Percentage shall have the meaning ascribed thereto
in Section 3.02C. 
  
 1.85 Profit Decline shall have the
meaning ascribed thereto in Section 3.02C. 
  
 1.86 Rent
shall be defined as meaning all “Rent” under the Percentage Lease; provided, however, that from and after the expiration (the “Expiration”) of the current term of the Percentage Lease as in effect on the date hereof until the
expiration of the Term of this Management Agreement, Rent shall mean on an annual basis (from and after each Re-Set Date (as defined herein), until the next Re-Set Date) the lesser of: (a) annual rent actually owed by Lessee under the Percentage
Lease (or any replacement or extension thereof) following the Expiration; and (b) the annual rent that would be produced under the Percentage Lease (or any replacement or extension thereof) if the formula for 

  

 9 

 
calculating annual rent thereunder was the greater of (i) 7% of the un-depreciated value of the Hotel on Owner’s books, plus then-current annual real
estate taxes, plus then-current annual premiums for property insurance, all as of the “Re-Set Date”; and (ii) 30% of all amounts up to the revised Breakpoint thereunder and 68% of all amounts in excess of such revised Breakpoint, with the
”Breakpoint” being defined as a dollar amount of annual room revenues determined with reference to (1) the three years of Hotel operating results immediately preceding the ”Re-Set Date” and (2) the expected operating results of
the Hotel (taking account of the results referred to in the immediately preceding clause (1) and then-current market conditions) for the twelve (12) months immediately following the ”Re-Set Date” (such twelve (12) month period being the
“Pro Forma Period”), such that (A) ninety five percent (95%) of the expected annual Operating Profit of the Hotel for the Pro Forma Period would be allocated to the Owner (in the form of rent) and (B) five percent (5%) of the expected
annual Operating Profit of the Hotel for the Pro Forma Period would be allocated to Lessee (in the form of net income). The “Re-Set Date” means the first day immediately following the Expiration, and each five year anniversary thereof. In
the event of a dispute with respect to the calculation of Rent, the parties shall engage in good faith discussions in an effort to resolve such dispute and failing such a resolution, the amount of Rent shall be determined pursuant to arbitration by
a mutually agreeable expert familiar with hotel management agreements and limited service hotels and the parties shall provide to such expert such information as such expert shall deem necessary or appropriate to make the determinations set forth
hereunder. Until resolution of any such dispute, the amount of Rent shall be determined by Lessee in good faith, and in the event that Lessee is unable to make such a determination in good faith then pending resolution of such dispute Rent shall be
the amount set forth in clause (a) of the proviso of the first sentence of this Section 1.86. 
  
 1.87 RevPar Index Baseline shall have the meaning ascribed thereto in Section 3.02B. 
  
 1.88 RevPar Yield Index shall have the meaning ascribed thereto in Section 3.02B hereof. 
  
 1.89 Sale of the Hotel shall be defined as meaning: (i) any sale,
assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary, of Owner’s title to the Hotel or Lessee’s leasehold interest in the Hotel or the site on which the Hotel is located (either fee or leasehold
title, as the case may be), whether pursuant to foreclosure or deed in lieu, a merger involving Owner or Lessee, a sale of substantially all of the assets of Owner or Lessee, or another form of business combination having a similar effect, or
otherwise; or (ii) a further lease or sublease of the entire Hotel or site on which the Hotel is located; as well as (iii) a change of control (as defined in the definition of Affiliate) of Owner or Lessee, through any sale, transfer, or other
disposition, including, without limitation, by virtue of a sale or merger transaction involving Innkeepers or Innkeepers USA Limited Partnership, for value or otherwise, in a single transaction or a series of related transactions, which change of
control (for clarification purposes) shall expressly include a Change of Control Event of Innkeepers. 
  
 1.90 Software shall be defined as meaning any and all computer software, together with its accompanying documentation, if any, which is owned or
exclusively licensed by Manager in connection with its property management system, with any reservation system and with all other computer programs and systems developed by or for Manager and/or its Affiliates for use in connection with the
operation of the Hotel or Other Managed Hotels. All Software currently owned or used by Manager in connection with the Hotel is listed on Schedule 1.90 attached hereto. 
  
 1.91 Special Termination Fee shall have the meaning set forth in Section 15.02D. 
  

 10 

 1.92 Subsequent Owner shall have the meaning set forth in Section 5.05B. 
  
 1.93 Taxes shall be defined as meaning all sales, use, hotel, bed,
transient occupancy or excise taxes, inventory taxes and similar charges on or relating to the Hotel or the operation thereof. Irrespective of the foregoing, the following are not Taxes and are specifically excluded from the definition thereof: (i)
Any income, excess profits or revenue taxes of Lessee or any person, firm or entity as a partner of Lessee; (ii) Special assessments imposed because of facilities which are constructed by or on behalf of the assessing jurisdiction (e.g., roads,
sidewalks, sewers, etc.) which directly benefit the Hotel; (iii) “Impact Fees” which are required of Lessee as a condition to the issuance of site plan approval, zoning variances or building permits; (iv) “Tax-increment
financing” or similar financing whereby the municipality or other taxing authority has assisted in financing the construction of the Hotel by temporarily reducing or abating normal Taxes in return for substantially higher levels of Taxes at
later dates; and (v) Lessee Taxes. 
  
 1.94 Term shall have
the meaning set forth in Section 3.01. 
  
 1.95 Termination
shall be defined as meaning the expiration or sooner cessation of this Agreement. 
  
 1.96 Unavoidable Occurrences shall have the meaning ascribed thereto in Section 3.02E. 
  
 1.97 Uncontrollable Expenses shall have the meaning set forth in Section 12.05B. 
  
 1.98 Uniform System of Accounts shall be defined as meaning the Uniform System of Accounts for Hotels, currently the
Ninth Revised Edition, 1996, as may be revised from time to time and as modified by applicable provisions of this Agreement. 
  
 1.100 Unrelated Persons shall have the meaning set forth in Section 2.04C. 
  
 1.101 Valuation Notice shall have the meaning set forth in Section 4.01D. 
  
 1.102 WARN Act shall be defined as meaning the Worker Adjustment and
Retraining Notification Act of 1990, as such may be amended from time to time. 
  
 Section 2. Appointment of Manager 
  
 2.01 Appointment. Lessee hereby appoints Manager as the exclusive manager of the Hotel, and Lessee hereby confers upon Manager the exclusive right to supervise, direct and control the management and operation
of the Hotel for the duration of the Term (as defined herein), all in accordance with and subject to the terms and conditions of this Agreement. Manager accepts this appointment and shall manage the Hotel during the Term in accordance with the terms
and conditions set forth herein, in good faith and at all times in consideration of the best interests of Lessee and Owner. Manager agrees that it shall manage and operate the Hotel, in accordance with the terms of this Agreement, as a first-class
                         limited service hotel,3 taking into account the size, location and 

	3	 	For Residence Inns, it will refer to upscale, extended stay, for Hampton Inns, it will refer to mid-scale, limited service without F&B, for TownPlace Suites, it
will refer to mid-priced, extended stay and for Courtyard by Marriott it will refer to mid-scale with F&B. If a hotel is not a limited service hotel, the reference will be deleted and replaced with the appropriate term. 

 

 11 

 
character of the Hotel, and in accordance with the standards set forth in the Franchise Agreement. In connection therewith and subject thereto, Manager, as
agent of Lessee, shall have the authority and responsibility, subject to the provisions of this Agreement, to (i) determine operating policy, standards of operation, quality of service, the maintenance and physical appearance of the Hotel and any
other matters affecting operations and management; (ii) supervise and direct all phases of advertising, sales and business promotion for the Hotel; and (iii) carry out all programs contemplated by the Business Plan approved by Lessee pursuant to
Section 12.04. Lessee hereby confirms that Owner has acknowledged and approved of Lessee’s appointment of Manager in accordance with this Section 2.01 and recognizes Manager’s rights as set forth herein subject to the rights of Lessee
hereunder. 
  
 2.02 Required Management. Except as
otherwise provided herein, during the Term Manager shall be responsible for the proper and efficient operation of the Hotel. Except as provided to the contrary or as may be limited herein (including, without limitation, by virtue of the rights of
Lessee hereunder), Manager shall have discretion and control, free from interference, interruption or disturbance, in all matters relating to the management and operation of the Hotel, including, without limitation, charges for rooms and commercial
space, credit policies (which credit policies shall be reasonable, customary and in keeping with industry standards for the market segment which the Hotel services), food and beverage services, the receipt, holding and disbursement of funds,
maintenance of bank accounts, procurement of Inventories, supplies and services, promotion and publicity and, generally, all activities necessary for the operation of the Hotel. Without limiting the generality of the foregoing, Manager shall perform
the following additional services, or cause the same to be performed for the Hotel, subject to any other applicable provisions of this Agreement and subject to any applicable provisions of the Business Plan: 
  
 A. Establish and revise, as necessary, administrative policies and
procedures, including policies and procedures for the control of revenue and expenditures, for the management of accounts receivable and accounts payable, for the purchasing of supplies and services, for the control of credit, and for the scheduling
of repairs and maintenance and preventive maintenance, and verify that the foregoing procedures are operating in a sound manner. 
  
 B. Enter into contracts, commitments and obligations for goods and services for the Hotel, at competitive, fair market rates and prices; provided
that Lessee’s prior written approval (which approval shall not be unreasonably withheld) shall be required for any contract, commitment or obligation (or series of related contracts, commitments or obligations) (i) having a term in excess of
one (1) year unless such agreement may be terminated without penalty, premium or ongoing obligation, or (ii) if the amount of the aggregate expenditures thereunder would, or are reasonably anticipated to, exceed $50,000 in the aggregate per annum
(it being understood and agreed that Lessee’s approval shall not be required for national pricing contracts entered into by Manager which relate to the purchase of Inventories, provided that such contract falls within clause (i) above);
provided further that Lessee’s prior written approval, which may be granted or withheld in its sole discretion, shall be required for any contract, commitment or obligation (or series of related contracts, commitments or obligations) with any
Affiliate of Manager. Notwithstanding the foregoing, Manager shall not enter into any real property leases, space leases (including rooftop space leases), concessions or similar arrangements without Lessee’s prior written approval, which may be
granted or withheld in its sole discretion, and, if Manager shall have received a notice of termination of this Agreement from Lessee, Manager shall not enter into any contracts, commitments or obligations for goods or services without Lessee’s
prior written approval, which may be granted or withheld in its sole discretion. 
  

 12 

 C. Cause to be made all such repairs and routine maintenance as required under Section 10.01
hereof and cooperate with Lessee and Lessee’s designees in making all repairs, decorations, revisions, alterations and improvements to the Hotel which constitute capital items under the Capital Expenditure Policy, as shall be reasonably
necessary for the proper maintenance thereof in good order, condition and repair. 
  
 D. Purchase (but not out of Manager’s own funds) such Fixed Asset Supplies and Inventories as shall be reasonably necessary for the operation of the Hotel and treat such purchases as Deductions.

  
 E. Apply for, and keep in full force and effect (to the
extent the same is within the control of Manager or its Affiliate), all licenses and permits required of Owner, Lessee or Manager in connection with the operation and management of the Hotel (including without limitation any and all licenses
required for the sale or service of alcoholic beverages). Lessee agrees to execute and deliver any and all applications and other documents as shall be reasonably required and to otherwise cooperate, in all reasonable respects, with Manager in
applying for, obtaining and maintaining such licenses and permits. 
  
 F. Use its reasonable best efforts to do, or cause to be done, all such acts and things in and about the Hotel as shall be reasonably necessary to comply with Legal Requirements (including without limitation, all applicable
environmental law, rules, and regulations) and the terms of all insurance policies, and to discharge any lien, encumbrance or charge on or with respect to the Hotel and the operation thereof; provided that if the lien, encumbrance or charge on or
with respect to the Hotel and the operation thereof arises out of the actions of Lessee or Owner, then Manager shall reasonably cooperate with Lessee or Owner in the discharge of any such lien, encumbrance or charge. 
  
 G. Pay all Taxes and insurance premiums (other than property insurance
premiums described in Section 13.02A-13.02C), when due. 
  
 H.
Use its reasonable best efforts to cause the Hotel (and operation thereof) to comply with all applicable covenants and provisions of the Percentage Lease, the Franchise Agreement, the Pooling and Cumulation Agreement and any Mortgage, and at
Lessee’s option and direction pay, when due, Rent under the Percentage Lease, and payments under the Franchise Agreement. 
  
 I. Subject to the prior written approval of Lessee, retain legal counsel for the Hotel, which legal counsel shall be acceptable to Lessee and shall
perform legal services under the direction of Manager (it being understood and agreed that the fees of any such legal counsel so retained shall be an operating expense of the Hotel and shall be treated as a Deduction), provided that Manager shall
regularly confer with Lessee regarding the status of any matters or disputes requiring the retention of legal counsel in accordance herewith. Lessee shall have the option of controlling any litigation or disputes which do not impact or affect Hotel
operations or revenues, provided that Lessee shall regularly confer with Manager regarding the status of any such litigation or disputes. 
  
 J. Reasonably cooperate with Owner, Lessee and any current or prospective purchaser, lessee, Mortgagee, auditor, broker, financial intermediary or
other lender in connection with any proposed sale, lease, financing or inspection of or relating to the Hotel; provided, however, that Manager shall not be required to release any information that is confidential or proprietary to Manager 

  

 13 

 
or its Affiliates. 
  
 K. Institute in its own name or in the name of Owner, Lessee or the Hotel, and as an operating expense of the Hotel (which shall be treated as a
Deduction), any and all legal actions or proceedings to collect charges, rent, or other income derived from the Hotel’s operations or to oust or dispossess guests, tenants, or other persons in possession therefrom, or to cancel or terminate any
lease, license, or concession agreement for the breach thereof or default thereunder by the tenant, licensee, or concessionaire; and at the direction of Lessee (and as a Deduction), Manager shall take appropriate steps to challenge, protest, appeal
and/or litigate to final decision in any appropriate court or forum any alleged non-compliance with Legal Requirements affecting the Hotel or any alleged violation of any law, subject however to the provisions of Section 12.05D with respect to
indemnification. 
  
 L. Collect and account for, and remit
to governmental authorities, all Taxes collectible by the Hotel directly from patrons or guests, or as part of the sales price of any goods or services, including gross receipts, admission, or similar or equivalent taxes, duties, levies or charges.

  
 M. Establish prices, rates, and charges for services
provided at the Hotel, including room rates, and collect all charges, rent and other amounts due from guests, lessees and concessionaires of the Hotel. 
  
 N. Perform such other tasks as are customary and usual in the operation of a hotel of the class and standing of the Hotel. 
  
 O. Provide risk management services with respect to the Hotel, which
services shall be in scope no less favorable to Lessee than such risk management services being provided by Manager (or its Affiliates) with respect to the Hotel (or Other Managed Hotels in the event no services are provided by Manager or its
Affiliates to the Hotel prior to the Effective Date) prior to the Effective Date of this Agreement, which shall include, without limitation, loss prevention efforts, interfacing with insurance companies on claims management, and insurance renewal;
provided, however, to the extent that the cost or expense related thereto was being borne by Manager or its Affiliates prior to the Effective Date with respect to the Hotel or Other Managed Hotels, such cost and expense shall be borne by Manager and
not be treated as a Deduction or otherwise be chargeable to or reimbursed by the Hotel or Lessee. 
  
 P. Provide sales and revenue management leadership, support and training to the employees of the Hotel. 
  
 Nothing set forth in this Section 2.02 shall be deemed to limit
Manager’s obligations or Lessee’s rights under Section 12 of this Agreement. Lessee shall be entitled to meet with (i) such senior executive officers of Manager as Lessee may request, on a quarterly basis or more frequently as Lessee may
reasonably request and (ii) the General Manager of the Hotel, the Chief Engineer, the Director of Sales, or other mutually agreeable responsible Manager representatives on a quarterly basis, or more frequently as Lessee may reasonably request, not
to exceed one meeting per month, to review and discuss the operation of the Hotel, including any substantial deviation from the operating strategies, policies or procedures which form the basis on which the then current Business Plan was made. In
the event that Lessee desires to avail itself of the meetings in the foregoing, Lessee shall direct its inquiry and request therefor to a member of Manager’s senior executive staff. 
  

 14 

 2.03 Representations Regarding Restrictions. Each party hereto warrants and represents to the
other that to its knowledge, as of the Management Commencement Date, there are no covenants or restrictions which would prevent, prohibit or limit Manager from operating the Hotel or any part thereof. Manager shall promptly and periodically advise
Lessee of all licenses, permits or other instruments necessary for the operation of the Hotel, and, to the extent Manager is prohibited from holding such licenses, permits or other instruments (or Lessee or Owner otherwise elect), Lessee shall, and
shall cause Owner to, sign any and all applications therefor upon the reasonable request of Manager, without delay or charge, as more fully set forth in Section 2.02E. 
  
 2.04 Representations of Manager. Manager warrants and represents that: 
  
 A. Manager is experienced in the operation of hotels similar to the
Pooled Hotels and shall manage and operate the Hotel in a first-class manner in accordance with the standards of management for other similar hotels, and in compliance with the Franchise Agreement. 
  
 B. At the Effective Date, Manager qualifies as an “eligible
independent contractor” as defined in Section 856(d)(9) of the Code (as defined herein). From the Effective Date until the end of the Term, Manager covenants and agrees that it shall satisfy the following requirements: 
  
 (i) Manager shall not permit wagering activities to be conducted at or in
connection with the Hotel by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with the Hotel; 
  
 (ii) Manager shall not own, directly or indirectly (within the meaning of Section 856(d)(5) of the Code), more than 35% of
the shares of beneficial interest of Innkeepers USA Trust (“Innkeepers”); 
  
 (iii) No more than 35% of the ownership interest in Manager’s outstanding stock, assets or net profits shall be owned, directly or indirectly, by one or more persons owning 35% or more of the outstanding shares
of beneficial interest of Innkeepers; and 
  
 (iv) Manager shall
not sublet the Hotel or enter into any similar arrangement on any basis such that the rental or other amounts to be paid by the sublessee thereunder would be based, in whole or in part, on either (1) the net income or profits derived by the business
activities of the sublessee, or (2) any other formula such that any portion of the rent would fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto.

  
 C. At the Effective Date, Manager is (or is, within the
definition of Section 856(d)(9)(F) of the Code, related to a person that is) actively engaged in the trade or business of operating “qualified lodging facilities” (as defined herein) for a person who is not a “related person”
within the meaning of Section 856(d)(9)(F) of the Code with respect to Innkeepers or Lessee (“Unrelated Persons”). In order to meet this requirement, Manager agrees that it (or any related person) (1) derives at least 10% of both its
revenue and profit from operating “qualified lodging facilities” for Unrelated Persons and (2) 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 to qualify as an “eligible independent contractor” with the meaning of such Code section. A “qualified lodging facility” is defined in Section 856(d)(9)(D) of the Code
and means a 

  

 15 

 
“lodging facility” (as defined herein), 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 legally authorized to engage in such business 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 a 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 unrelated to Innkeepers. 
  
 D. If Manager ceases to qualify as an “eligible independent contractor” by virtue of its failure to comply with (i) Section 2.04C(1) notwithstanding Manager using its good faith commercially reasonable efforts or (ii)
Section 2.04C(2) due to a change in the law notwithstanding Manager using its good faith commercially reasonable efforts, then, in each case, Lessee shall have the rights provided in Section 15.02D. 
  
 Section 3. Term 
  
 3.01 Term. The initial term of this Agreement (the “Initial
Term”) shall commence on the Effective Date, and, unless sooner terminated as provided in this Agreement, shall continue for a period ending on the tenth (10th) anniversary of the Management Commencement Date. Following the expiration of the Initial Term (or the first Extension Term (as defined below) as applicable), this Agreement shall, unless sooner
terminated pursuant to the provisions of this Agreement or unless Manager is then in default under this Agreement (which default shall not have been expressly waived in writing by Lessee), continue in force and be automatically extended for a
successive sixty (60) month term (an “Extension Term”) unless Manager provides written notice of termination to Lessee at least ninety (90) days prior to the end of the then current term. Both the Initial Term and any Extension Term may
collectively be referred to herein as the “Term,” provided that the Term shall end upon Termination notwithstanding anything to the contrary set forth in this Agreement or implied by such defined term. 
  
 3.02 Early Termination by Lessee for Cause. 
  
 A. If, as of the end of any Fiscal Year during the Term (excluding the
partial Fiscal Year ending on December 31, 2003), Manager exceeds the aggregate expenses budgeted for the Hotel as set forth in the Annual Operating Projection for such Fiscal Year by an amount greater than or equal to 5%, then there shall be an
“Expense Test Failure” under this Agreement. The existence of an Expense Test Failure for any Fiscal Year shall be determined by Lessee on the basis of the annual reports furnished pursuant to Sections 9.03B and 12.02, and shall be subject
to confirmation pursuant to such sections. Any updatings or revisions to the Annual Operating Projection pursuant to Section 12.05 shall be disregarded for purposes of this Section 3.02A and the existence of an Expense Test Failure shall be
determined solely on the basis of the Annual Operating Projection originally determined for a Fiscal Year determined pursuant to Section 12.04 (and with respect thereto Section 19.13 to the extent applicable). 
  
 B. If, as of the end of any Fiscal Year during the Term (excluding the
partial Fiscal Year ending on December 31, 2003), (i) the RevPar Yield Index of the Hotel shall be more than fifteen (15) percentage points (the “Decline Percentage”) below     % (i.e., the Hotel’s RevPar
Yield Index as of the Effective Date of this Agreement) (the “RevPar Index Baseline”) and (ii) the RevPar Yield Index shall be below ninety-five percent (95%), such combined decline shall constitute a “Market 

  

 16 

 
Decline” under this Agreement. As used herein, “RevPar Yield Index” when used with respect to the Hotel, shall mean the percentage amount
obtained by dividing the RevPar of the Hotel by the RevPar of the Competitive Set, with the term “RevPar” having the meaning ascribed to it in the Smith Travel Trends Report, Star Report, produced by Smith Travel Research. Lessee and
Manager shall work in good faith to determine any additions and deletions to the Hotel’s Competitive Set, and any resulting resetting of the RevPar Index Baseline as necessary to reflect any such changed circumstances, on or before December 15
of each Fiscal Year, with such changes to be applicable to the following Fiscal Year. In the event Lessee and Manager cannot agree to the Hotel’s Competitive Set or the RevPar Index Baseline changes by December 15 of any Fiscal Year, such
unagreed items shall be determined by Smith Travel Research, or, if it refuses or is unable to do so, by arbitration pursuant to Section 19.13. The costs of resetting the Hotel’s Competitive Set or RevPar Index Baseline shall be borne equally
by the parties. The existence of a Market Decline shall be determined on the basis of the Star Report which contains a full calendar year calculation of the RevPar Yield Index of the Hotel. If the Star Report is no longer published or does not
contain sufficient information for the determination of a Market Decline, the existence of a Market Decline shall be instead determined using the methodology employed by the Star Report, from information on the RevPar Yield Index of the Hotel
contained in any other publication reasonably selected by Lessee and recognized by the hotel industry as being an authoritative source of such information, or if no such publication exists, from an analysis of the RevPar Yield Index of the Hotel
conducted at the joint expense of the parties by a nationally recognized accounting firm or other mutually agreeable entity with a hospitality division of which neither Lessee nor any affiliate of Lessee, nor Manager nor any affiliate of Manager, is
a significant client. Lessee’s right to terminate this Agreement under Section 3.02D as a result of a Market Decline shall be subject to Manager’s right to cure the Market Decline with respect to the relevant Fiscal Year, by providing to
Lessee, during the Notice Period (as defined in Section 3.02D), a rebate of Management Fees previously paid or if such a rebate were insufficient by providing to Lessee (with documentation reasonably acceptable to Lessee) a credit against future
Management Fees otherwise next owing to Manager hereunder, such rebate and any such credit to be equal in the aggregate to the difference between (a) Lessee’s Priority that would have been paid if the Gross Revenues for such Fiscal Year equaled
the amount necessary to cause the RevPar Yield Index for the Fiscal Year to be ninety-five percent (95%), less (b) Lessee’s Priority paid for such Fiscal Year; provided, however, any such credit provided to Lessee by Manager pursuant to the
foregoing shall be applied and actually used as an offset against Management Fees or other amounts owed to Manager hereunder within two (2) years of the termination right pursuant to Section 3.02D accruing hereunder, and in the event such credit is
not applied and actually used within such two (2) year period, then Lessee shall have the right to immediately terminate this Agreement. Lessee shall have no obligation to repay any amount rebated or credited by Manager to cure a Market Decline.
Manager may only cure a Market Decline (i) if it cures a Profit Decline in the same Fiscal Year pursuant to Section 3.02C and (ii) on account of two (2) Fiscal Years during the Initial Term, and, if applicable, one (1) Fiscal Year during any
Extension Term. 
  
 C. If, with respect to any Fiscal Year
during the Term (excluding the partial Fiscal Year ending on December 31, 2003), the ratio of Operating Profit to Gross Revenues (the “GOP Percentage”) is five (5) percentage points less than the ratio of Operating Profit to Gross Revenues
actually achieved in the prior Fiscal Year (“Prior Year GOP Percentage”), such event shall constitute a “Profit Decline” under this Agreement. The existence of a Profit Decline shall be determined on the basis of the Annual
Operating Statement submitted by Manager to Lessee pursuant to Section 12.02 and shall be subject to confirmation by Lessee pursuant to the terms thereof. Lessee’s right to terminate this Agreement under Section 3.02D as a result of a Profit
Decline shall be subject to Manager’s right to cure 

  

 17 

 
the Profit Decline with respect to the relevant Fiscal Year, by providing to Lessee, during the Notice Period (as defined in Section 3.02D), a rebate of
Management Fees previously paid or if such a rebate were insufficient by providing to Lessee (with documentation reasonably acceptable to Lessee) a credit against future Management Fees otherwise next owing to Manager hereunder, such rebate and any
such credit to be equal in the aggregate to fifty percent (50%) of the amount by which expenses would have had to be reduced in order to have produced a GOP Percentage five (5) percentage points less than the prior year GOP Percentage; provided,
however, any such credit provided to Lessee by Manager pursuant to the foregoing shall be applied and actually used as an offset against Management Fees or other amounts owed to Manager hereunder within two (2) years of the termination right
pursuant to Section 3.02D accruing hereunder, and in the event such credit is not applied and actually used within such two (2) year period, then Lessee shall have the right to immediately terminate this Agreement. The Manager may only cure a Profit
Decline (i) if it cures a Market Decline in the same Fiscal Year pursuant to Section 3.02B and (ii) on account of two (2) Fiscal Years during the Initial Term, and, if applicable, one (1) Fiscal Year during any Extension Term. 
  
 D. If during any two (2) consecutive Fiscal Years any two (or more )
of the following occur: (1) an Expense Test Failure, (2) a Market Decline or (3) a Profit Decline, and if Manager does not elect to avoid termination by cure thereof pursuant to the foregoing subsections of this Section 3.02, to the extent
applicable, then Lessee shall have the right, at its sole option, to terminate this Agreement upon thirty (30) days’ notice (the “Notice Period”) to Manager, in which event Manager shall immediately surrender possession of the Hotel
to Lessee, and, if Manager fails to so surrender, Lessee shall have the right, without notice, to enter upon and take possession of the Hotel and to expel or remove Manager and its effects without being liable for prosecution or any claim for
damages therefore. Manager shall, and hereby agrees, to indemnify Lessee for the total of (1) in the event that Manager does not promptly surrender possession of the Hotel, the reasonable costs of recovering possession of the Hotel and all other
losses, liabilities and reasonable expenses incurred by Lessee in connection with Manager’s failure to surrender; (2) the unpaid Available Cash Flow due to Lessee as of the date of termination, plus interest at the Overdue Rate accruing after
the due date; and (3) all other sums of money then owed by Manager to Lessee hereunder. Lessee’s option to terminate this Agreement under this Section 3.02D shall be exercised by serving written notice thereof on Manager within ninety (90) days
after the later of (A) the receipt by Lessee of the Annual Operating Statement for such second (2nd) consecutive
Fiscal Year and (B) with respect to the Market Decline, the date of publication of information regarding the RevPar Index of the hotels within the Competitive Set, if applicable. Lessee’s failure to exercise its right to terminate this
Agreement pursuant to this Section 3.02 with respect to a specific period of two (2) consecutive Fiscal Years shall not be deemed an estoppel or waiver of Lessee’s right to terminate this Agreement as to any other specific period of two (2)
consecutive Fiscal Years to which this Section 3.02 may apply. 
  
 E. Notwithstanding anything to the contrary contained herein, Lessee’s right to terminate this Agreement pursuant to Section 3.02D shall be eliminated with respect to a particular Fiscal Year to the extent that the termination
right is attributable to the following “Unavoidable Occurrences:” (i) a Force Majeure Event; provided that with respect to Section 3.02B a Force Majeure Event must materially and disproportionately impact the Hotel as compared to other
hotels in the Competitive Set, (ii) Major Capital Improvements which result in forty percent (40%) or more of the Hotel rooms being out of service for more than one hundred twenty (120) days, (iii) taking by eminent domain which by its nature
materially and adversely affects Operating Profit of the Hotel or (iv) failure by Lessee to provide capital for any expenditures with respect to Major Capital Improvements, after a 

  

 18 

 
determination by arbitration under Section 19.13 that such capital is required to maintain the Hotel in accordance with the Franchise Agreement. Any disputes
concerning the applicability of this Section 3.02E shall be resolved pursuant to the arbitration procedure described in Section 19.13, and the time period governing any Lessee termination right or Manager cure right shall be extended for a
reasonable period of time (not exceeding 180 days) following such resolution. 
  
 F. If Jeffrey H. Fisher ceases, for any reason, to have a controlling interest in Manager, the performance standards and measuring periods set forth in Sections 3.02B and 3.02C. shall be revised as follows:
Manager’s right to cure a Market Decline and a Profit Decline with respect to the relevant Fiscal Year shall not include the right to provide Lessee a credit against future Management Fees otherwise next owing to Manager. 
  
 3.03 Actions to be Taken upon Termination. Upon a Termination of this
Agreement, the following shall apply and shall survive any Termination: 
  
 A. Except as otherwise provided in this Agreement, any and all expenses with respect to the Hotel arising as a result of such Termination or as a result of the cessation of Hotel operations (including expenses
arising under this Section 3.03) shall be for the sole account of Lessee (and shall not be treated as a Deduction), and Lessee shall reimburse Manager immediately on receipt of any invoice or invoices from Manager, for any expenses, including those
arising from or in connection with the severing of the employment of Hotel personnel (with severance benefits calculated according to policies applicable generally to employees of Managed Hotels, subject to Lessee’s prior written approval)
incurred by Manager in the course of effecting the termination of this Agreement or the cessation of Hotel operations. Notwithstanding the foregoing, any expenses arising as a result of a termination of this Agreement due to an Event of Default or a
termination pursuant to Section 3.02D by Manager shall be for the sole account of Manager. 
  
 B. Manager shall, within sixty (60) days after Termination, prepare and deliver to Lessee a final accounting statement with respect to the Hotel, along with a statement of any sums due from Lessee to Manager
pursuant hereto, dated as of the date of Termination. Within thirty (30) days after the receipt by Lessee of such final accounting statement, or Lessee’s receipt of the financial statements of the Hotel for the last Fiscal Year, whichever is
later, the parties will make whatever cash adjustments are necessary pursuant to such final statement, to the extent agreed upon. The cost of preparing such final accounting statement shall be a Deduction, unless the Termination occurs as a result
of an Event of Default by either party, in which case the defaulting party shall pay such cost. Manager and Lessee acknowledge that there may be certain adjustments for which the necessary information will not be available at the time of such final
accounting, and the parties agree to readjust such amounts and make the necessary cash adjustments when such information becomes available; provided, however, that (unless there are ongoing disputes of which each party has received notice) all
accounts shall be deemed final as of one hundred eighty (180) days after such Termination. 
  
 C. As of the date of the final accounting referred to in subsection B above, Manager shall release and transfer to Lessee any of Lessee’s funds which are held or controlled by Manager with respect to the
Hotel. During the period between the date of Termination and the date of such final accounting, Manager shall pay (or reserve against) all Deductions which accrued (but were not paid) prior to the date of Termination, using for such purpose any
Gross Revenues which accrued prior to the date of Termination. In any event, Lessee shall be entitled to such distributions and rights with respect to 

  

 19 

 
cash as otherwise provided in this Agreement as if a Termination had not occurred. 
  
 D. Manager shall assign and deliver to Lessee (or its designee) all books and records respecting the Hotel
(including, without limitation, books and records for all periods prior to the Effective Date), subject to Manager’s right to make copies thereof in accordance with reasonable records retention policies, such books and records to include,
without limitation, those needed by Lessee to prepare the financial statements, in accordance with the Uniform System of Accounts, for the Hotel for the year in which the Termination occurs and for any subsequent year. Such books and records shall
not include: (i) employee personnel files or (ii) any Intellectual Property. 
  
 E. Manager shall assign and transfer to Lessee (or its designee): 
  
 (i) any interest which Manager may have or claim in and to all of Lessee’s books and records, plans and specifications, architectural or engineering
drawings, contracts, leases and other documents respecting the Hotel that are not Intellectual Property or employee personnel files and are in the custody and control of Manager, including those provided for in Section 12.01; 
  
 (ii) all of Manager’s right, title and interest in and to all liquor,
restaurant and any other licenses and permits, if any, held by Manager in connection with the operation of the Hotel; provided, however, that to the extent Manager has expended a material amount of its own funds (and not funds from Gross Revenues or
Lessee), and for which it has not been reimbursed, for the procurement and/or maintenance of a liquor license, in each case after the Effective Date and during the Term, then promptly following the effective assignment and transfer by Manager of any
such liquor license pursuant to the provisions of this Section 3.03E(ii), Lessee shall reimburse Manager for such reasonable, documented unreimbursed funds so expended; and 
  
 (iii) any interest which Manager may have or claim in and to the Hotel Accounts. 
  
 F. Manager shall assign to Lessee (or its designee) its interest (if
any) in, and Lessee shall confirm in writing its continuing responsibility for all obligations and liabilities relating to, any and all contracts (including, if, but only to the extent, required by law, collective bargaining agreements and pension
plans, leases, licenses or concession agreements and maintenance and service contracts) in effect with respect to the Hotel as of the date of termination of this Agreement; provided that, notwithstanding the foregoing, the obligations and
liabilities assumed by Lessee shall, to the extent permitted by law, exclude any collective bargaining agreement and employment agreements and arrangements if and only if such employment agreements and arrangements are entered into without
Lessee’s prior written consent, unless Lessee in its sole and absolute discretion elects to assume such obligations and agreements by subsequent written document; provided further that Manager shall only assign such an interest if (i) such
assignment is permissible, (ii) Lessee (or its designee) agrees to assume responsibility for future obligations and liabilities thereunder (but only to the extent such future obligations and liabilities relate to future performance and benefits to
Lessee accruing thereunder) and (iii) Lessee (or its designee) executes such documents as may be reasonably required by Manager in connection with such assignment. Additionally, Manager shall indemnify, defend and hold Lessee (or its designee)
harmless from and against any costs, claims, expenses or loss incurred as a result of the transfer by Manager of personnel from the Hotel to another hotel property. 
  

 20 

 G. All reservations, proposed reservations and arrangements for rooms, catering, meetings or other
Hotel facilities and services shall be the property of Lessee and/or Owner following the effective date of the Termination, and Manager shall use all necessary efforts to maintain and promote the business of the Hotel through the effective date of
the Termination, including, without limitation, by the maintenance of licenses and permits, and soliciting reservations and other business for the Hotel following Termination and in accordance with the then-existing operating policies of the Hotel.

  
 H. Manager shall continue to operate the Hotel in good
faith in accordance with the terms of this Agreement until the effective date of such Termination. Manager shall peacefully vacate and surrender the Hotel to Lessee or Owner (or to Lessee’s or Owner’s designee) on the effective date of
such termination. Manager shall cooperate with the new operator of the Hotel as to effect a smooth transition, including, without limitation, by responding to all reasonable information requests from such operator (at no expense to Manager),
including, without limitation, “data dumps” of information into the new operator’s property management systems. 
  
 I. To the extent that Manager’s books and records are not required to be transferred to Lessee by any other provision of this Agreement upon
Termination hereof or the expiration of any Term hereunder, Manager shall make its books and records with respect to all matters involving the Hotel during the Term and through Termination hereof (including work papers in the possession of its
accountants) available for inspection by Lessee, or by its representatives, at all reasonable times during normal business hours, for a seven (7) year period after the Termination of this Agreement or the expiration of any Term hereunder. In the
event that Manager desires to destroy such books and records prior to the end of such seven (7) year period, Manager shall give Lessee ninety (90) days prior written notice of such intent to destroy and shall transfer to Lessee any such books and
records requested in writing by Lessee. 
  
 J. Various
other actions shall be taken as may be described elsewhere in this Agreement. 
  
 K. If an attempt at transfer or assignment of (i) a liquor license or (ii) any material claim, contract, lease, license, permit, commitment, sales order or purchase order, or (iii) any benefit arising
thereunder or resulting from any of the foregoing (each of the items in (i), (ii) or (iii) being a “Commitment”), without the consent required or necessary for such transfer or assignment, would constitute a breach thereof or in any way
adversely affect the rights of Lessee with respect thereto, then at the option of Lessee (1) any other provision of this Agreement to the contrary notwithstanding, this Agreement shall not constitute an agreement to transfer or assign a Commitment,
or a transfer or assignment thereof or (2) Manager shall use its best efforts to obtain the consent to the assignment or transfer thereof. If Manager is unable to obtain the consent to the assignment or transfer of a Commitment, then Manager shall
use it best efforts to obtain (and to take all necessary action to assist Lessee in obtaining) a replacement Commitment acceptable to Lessee in its sole discretion. If (A) any required consent to the transfer or assignment to Lessee of any
Commitment is not obtained, (B) a replacement of a Commitment is not obtained, (C) an attempted transfer or assignment would be ineffective or would adversely affect the rights of Lessee thereunder so that Lessee would not receive substantially all
of such rights or (D) a Commitment is assigned to Lessee pursuant to the provisions hereof and the other party thereto (or the issuing party in the case of a license) thereafter raises objections to the assignment and refuses to allow Lessee to
perform the Commitment on the terms 

  

 21 

 
therein provided, or threatens to terminate the Commitment or sue for damages, then Lessee and Manager (at Lessee’s expense) shall cooperate in any
arrangement Lessee may reasonably request to provide for Lessee the benefits under such Commitment. Cooperation may include, without limitation, and at Lessee’s request shall include, an arrangement, to be entered into between Lessee and
Manager, pursuant to which Manager shall nominally perform the Commitment with full and complete indemnification by Lessee, and Lessee shall retain the economic benefits or detriments of the Commitment. Cooperation shall also include, with respect
to matters covered by this Section 3.03K, Manager’s collection of any monies owed with respect to a Commitment, all for the benefit of Lessee. 
  
 In this connection, Manager shall, without further consideration therefor, pay and remit to Lessee promptly all monies, rights and other considerations
received in respect of such Commitment. If and when any such consent shall be obtained or unassigned Commitments shall otherwise become assignable or able to be novated, Manager shall promptly assign and novate all rights and obligations thereunder
to Lessee without the payment of further consideration and Lessee shall, without the payment of any further consideration therefor, assume such rights. Nothing contained in this Section 3.03K shall limit the liability, if any, of Manager pursuant to
this Agreement. It is understood and agreed that Lessee shall not be required to enter into any arrangements pursuant to this Section 3.03K and any arrangements that may be so entered into shall be acceptable to Lessee in its sole discretion,
provided that such arrangement is otherwise consistent with the terms of this Section 3.03K, including, without limitation, full and complete indemnification of Manager by Lessee in connection with the operation of such arrangement. 
  
 Section 4. Termination upon Sale or Demolition 
  
 4.01 Sale or Demolition of the Hotel. 
  
 A. Lessee may terminate this Agreement upon any Sale of the Hotel or
demolition of the Hotel (other than a demolition contemplated by Section 14 hereof in which case such section shall apply by its own terms and conditions), provided that Lessee provides at least sixty (60) days prior written notice thereof to
Manager, and further provided that Lessee pays to Manager a termination fee (an “Early Termination Fee”), subject to the Pooling and Cumulation Agreement, equal to the Fair Market Value of the Agreement as determined in accordance with
Section 4.01D. 
  
 Notwithstanding anything to the contrary
contained in this Agreement, it is expressly understood and agreed that in the event that Lessee does not provide funding as contemplated by this Agreement, or does not comply with its obligations hereunder which require material funding, with
respect to the Hotel, in connection with a determination by Lessee or the board of trustees of Innkeepers that such funding or compliance is not in the best interests of Lessee or Innkeepers (regardless of when such determination is made), then
Lessee, at the direction of the board of trustees of Innkeepers, may choose to terminate this Agreement as if a “Sale of the Hotel” occurred pursuant to this Section 4.01A and Manager shall have no other rights or remedies hereunder with
respect thereto, and no Default or Event of Default under this Agreement shall occur, or be deemed to occur, in connection with, related to, or as a result of such termination or the failure to provide such funding or comply with such obligations.

  
 B. Notwithstanding the foregoing, Lessee and Manager
agree that the Early Termination Fee shall be $0, and that there shall be no other determination or appraisal of the Early Termination Fee as contemplated by Section 4.01A., if: (1) Lessee assigns this Agreement 

  

 22 

 
to an assignee in connection with a Sale of the Hotel (such assignment and assignee to be in accordance with Section 16.02); (2) within twelve (12) months
following the termination of this Agreement, an assignee and Manager enter into, and Manager commences operations under, a replacement management contract for the Hotel on substantially similar terms and conditions as this Agreement and with
economic benefits to Manager which are no less than those of this Agreement, taking into account any interim period (a “New Management Contract”); or (3) as of the effective date of termination of this Agreement, Manager has not accepted a
written offer from the assignee to enter into a New Management Contract on terms similar or more favorable to Manager than this Agreement within thirty (30) days of being offered the same;4 
  
 C. Manager shall cooperate with Lessee, Owner and their Affiliates in connection with a Sale of Hotel or a Change of Control Event of Innkeepers, and shall otherwise act in good faith in connection with any
such transaction, consistent with the interests of Lessee and Owner. 
  
 D. As used in this Section 4.01, “Fair Market Value” of the applicable management contract with respect to which a fair market value determination is being made shall mean the fair market value of such contract, including,
without limitation, taking into account the management fees payable under such management contract (but excluding the Accounting Services Fee in determining an Early Termination Fee), the costs of Manager associated with such contract and the
performance of its duties under such contract, and giving effect to the Contract Term (as defined herein). For purposes of this Agreement, “Contract Term” shall mean with respect to this Agreement the period of time remaining in the
Initial Term (if the Initial Term is then in effect) or an Extension Term (if an Extension Term is then in effect). For purposes of any Additional Management Contract (as defined in the Pooling and Cumulation Agreement), the “Contract
Term” shall be the initial term thereof. Lessee and Manager shall use reasonable, good faith efforts to reach agreement on the Fair Market Value. If Lessee and Manager fail to reach agreement on the Fair Market Value within thirty (30) days of
Lessee’s written notice to Manager requesting the commencement of negotiations as to the Fair Market Value (a “Valuation Notice”), the determination of the Fair Market Value shall be made by a mutually satisfactory independent
accounting firm, investment banking firm, real estate concern or other appraisal firm, of recognized national standing, experienced in valuations of this type (the “Appraiser”). If Lessee and Manager are unable to agree as to the selection
of the Appraiser, each shall select an appraiser at his or its own expense, and each appraiser so selected shall select a third appraiser which shall perform the appraisal herein described. The Appraiser shall employ such methods of valuation as are
customarily applicable to valuation of hotel management agreements, taking into account all appropriate factors. The Appraiser shall issue a written opinion confirming its appraisal of the Fair Market Value as soon as practicable (but in no event
later than sixty (60) days) after the Valuation Notice and receipt of all the appropriate information from the parties as provided below. The parties shall provide such information as is reasonably requested by the Appraiser. The determination of
the Fair Market Value by the Appraiser so selected shall be final and binding upon Lessee and Manager, and their respective successors and assigns. Lessee and Manager shall each pay one-half (1/2) of the fees and expenses of the Appraiser.

	4	 	Termination of the Management Agreements for the Winston-Salem or Eden Prairie Hotels will not result in an Early Termination Fee. 

  

 23 

 Section 5. The Hotel 
  
 5.01 Ownership. During the term of this Agreement, Lessee shall take such actions as are commercially reasonable,
without undue cost or expense to Lessee or Owner, in an effort to ensure that Owner has good and marketable title to the land described in Exhibit A and all improvements thereon, free and clear of all liens and encumbrances other than:
(a) liens, easements and other encumbrances that do not materially and adversely affect the operation of the Hotel by Manager and do not require the payment of any money by Manager; (b) Mortgages which are given to secure any loans; (c) liens for
taxes, assessments, levies, other public charges and Taxes which are not yet due or are being contested in good faith; (d) amendments or modifications to the ground lease, if any, existing as of the Effective Date to which Manager consents, which
consent shall not be unreasonably withheld; (e) liens, easements and other encumbrances arising from Manager’s acts or omissions in contravention of its obligations under this Agreement; (f) the Percentage Lease and the terms thereof; (g)
undetermined or inchoate liens or charges for labor or materials supplied to the Hotel in connection with the construction or current operation thereof, which have not at the time been filed or recorded pursuant to law; (h) easements, restrictions
on use, zoning laws and ordinances, rights of way and other encumbrances and minor irregularities in title, which do not individually or in the aggregate impair the use of the Hotel for hotel purposes; and (i) those matters set forth on Schedule
5.01 attached hereto and incorporated herein by this reference. 
  
 5.02 Subordination of Agreement to Percentage Lease. Manager acknowledges and agrees that this Agreement is subject and subordinate to the Percentage Lease and that Manager, on behalf of Lessee and at Lessee’s sole expense
(except as otherwise provided herein) shall use its best efforts to fulfill Lessee’s duties and obligations as tenant under the Percentage Lease; provided, however, that the payments to be made to Manager hereunder are to be made in accordance
with Schedule 9.03F. Lessee shall not enter into any amendments or modifications of the Percentage Lease, without the prior written approval of Manager; provided that such approval of Manager shall not be unreasonably withheld, and that no
such approval shall be required if (a) the amendment or modification (i) would not have a material adverse effect on the rights and/or obligations of Manager, and (ii) would not reduce in any material way the amount of the fees to be paid to Manager
under this Agreement; or (b) the amendment or modification is (i) made solely to ensure that rents under the Percentage Lease continue to qualify as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue
Code of 1986, as amended (the “Code”), and, to the extent applicable, the Treasury Regulations promulgated under the Code, each as amended from time to time; or (ii) is required in order to otherwise conform to the Code and such Treasury
Regulations. This Section 5.02 shall not limit action taken under the Percentage Lease with respect to the setting of the rent formula from and after the expiration of the current term of the Percentage Lease as in effect on the date hereof.

  
 5.03 Cooperation with respect to Financings. Operator
acknowledges that Lessee or Owner has financed and/or may in the future finance their interests in the Hotel, including construction, development, furnishing and equipment of the Hotel through equity and/or debt financing. Manager shall cooperate in
all respects with Lessee or Owner, at the request of Lessee or Owner, in Lessee’s or Owner’s efforts to obtain, amend, renew or otherwise retain construction and permanent financing for the Hotel. In connection with any financing obtained
after the Effective Date with respect to the Hotel, Lessee shall request a non-disturbance agreement for the benefit of Manager, in form and substance reasonably satisfactory to Manager (provided following such request Lessee shall not be required
to take any further action with respect thereto and provided further that the failure to obtain a non-disturbance 

  

 24 

 
provision or agreement for the benefit of Manager shall have no effect on Manager’s obligations to enter into any subordination agreement). Lessee shall
have the right to encumber all of the assets that comprise the Hotel, or any part thereof, or any interest therein, including the real estate upon which the Hotel is located, the Hotel building and improvements thereto, and all FF&E and Fixed
Asset Supplies placed in or used in connection with the operation of the Hotel as contemplated in any Mortgage that is entered into by Owner or Lessee, and to assign to any Mortgagee as collateral security for any loan secured by the Mortgage, all
of Owner’s or Lessee’s right, title and interest in and to this Agreement. 
  
 5.04 Cooperation with Mortgagee. Manager agrees to cooperate with any Mortgagee who may encumber the Hotel and related assets, such cooperation to include, but not be limited to, Manager’s agreement to
transfer its interest in this Agreement to a special purpose entity in a form and substance reasonably approved by Mortgagee or any rating agency which may rate such mortgage loans or related securities. Manager and Lessee each agree to bear
one-half of the costs and expenses incurred by Manager in complying with the foregoing. Further, Manager hereby consents to any requested modifications or amendments to this Agreement which may be required by a proposed Mortgagee as a condition to
making a mortgage loan to Lessee or Owner on their interest in the Hotel, so long as such modification or amendment does not diminish the formula for fees or reimbursements becoming due to Manager hereunder and does not otherwise materially and
adversely affect Manager’s rights and benefits under this Agreement. 
  
 5.05 Subordination of Agreement to Mortgage. Subject to the terms of any subordination agreement, Manager acknowledges and agrees that this Agreement is subject and subordinate in all respects to a Mortgage
which may encumber the Hotel and parts thereof and interests therein, from time to time, and that Manager, on behalf of Lessee and at Lessee’s sole expense, shall use its best efforts to fulfill Lessee’s duties and obligations under the
Mortgage; provided, however, that, after payment of all debt service and reserves under any mortgage and subject to Section 5.05C below, the payments to be made to Manager hereunder are to be made in accordance with Schedule 9.03F. Lessee may
request, but shall not be obligated to use commercially reasonable efforts to obtain, from each Mortgagee, a subordination agreement which includes a nondisturbance covenant for the benefit of Manager, provided, however, the failure to obtain a
non-disturbance covenant for the benefit of Manager shall have no effect on Manager’s obligations to enter into such subordination agreement. Manager agrees to cooperate with Lessee with respect to Lessee’s and/or Owner’s efforts to
finance or refinance the Hotel and shall not withhold its cooperation as a result of being required to subordinate its interests to and attorn to the Mortgagee and not receiving a nondisturbance covenant from such Mortgagee. Further, Manager
acknowledges and agrees it shall promptly execute and deliver to Owner, Lessee and any Mortgagee a subordination agreement which includes the following terms and such other terms as may be required by the Mortgagee: 
  
 A. This Agreement and the extensions, renewals, replacements or
modifications thereto, and all right and interest of Manager in the Hotel, shall be subject and subordinate to such Mortgage; 
  
 B. Manager shall be obligated to each party coming into possession or title to the Hotel at foreclosure or as a subsequent purchaser from the
Mortgagee or its designee (each a “Subsequent Owner”) to perform all of the terms and conditions of this Agreement for the balance of the remaining term hereof, with the same force and effect as if such Subsequent Owner were Lessee; and

  

 25 

 C. Each Mortgagee (in the event of an uncured default under the applicable Mortgage) and
Subsequent Owner shall have the right to terminate this Agreement without penalty, cost or expense. 
  
 Section 6. Possession and Use of the Hotel 
  
 6.01 Possession and Use. Lessee covenants that, so long as an Event of Default by Manager has not occurred and Lessee has not exercised any right
arising as a result of such an Event of Default, including the right to terminate this Agreement, and Lessee has not otherwise terminated this Agreement (under any Section of this Agreement), subject to the rights of any Mortgagee pursuant to
Section 5.05, Manager shall have the right to quietly hold, occupy and enjoy the Hotel throughout the Term hereof free from hindrance or ejection by Lessee, by Owner or by any other party claiming under, through or by right of Lessee or Owner,
except as otherwise specified in this Agreement. Without limiting the generality of its other obligations under this Agreement, including, without limitation, Section 2.01, Manager shall manage and operate the Hotel in compliance with all applicable
laws, ordinances, and regulations. 
  
 6.02 Right to
Inspect. Lessee and Owner or their agents shall have access to the Hotel at all reasonable times for the purpose of protecting the same against fire or other casualty, prevention of damage to the Hotel, inspection, making repairs, showing the
Hotel to prospective purchasers, tenants or Mortgagees, examining and making extracts of the financial books and records of the Hotel or for any other purpose which Lessee, in its discretion, shall deem necessary or advisable (without material
disruption to the operation and business of the Hotel, and at the Hotel’s expense, except as otherwise provided under this Agreement). Lessee shall, and shall cause Owner to, provide at least 24 hours’ notice to Manager prior to exercising
their rights under this Section 6.02, except in the event of an emergency. 
  
 6.03 Telecommunications Leases and Licenses. Notwithstanding any other provision of this Agreement to the contrary, Lessee, without the consent of Manager, shall have the right to lease or license portions of
the Hotel for (and to retain all revenue from) telecommunications and similarly related facilities, or other uses, to the extent such leases and licenses do not materially interfere with the operations of the Hotel, and Manager shall take all
actions to cooperate with Lessee and any lessees or licensees under this Section 6.03, including, without limitation, rights of access. 
  
 Section 7. Hotel Employees 
  
 7.01 Employees. 
  
 A. Manager shall hire, promote, supervise, direct and train all employees at the Hotel, shall fix their terms of compensation and shall establish
and maintain policies relating to employment at the Hotel. Manager shall ensure that all members of the executive staff of the Hotel shall be properly qualified for their positions, and that the direct compensation payable to such persons shall be
competitive with the direct compensation paid to the members of the executive staff of other comparable hotels of the same franchise brand, taking into account the location and size of the Hotel, and so that Manager can best ensure compliance with
the Franchise Agreement. Notwithstanding anything contained in the foregoing to the contrary, Lessee shall have the right to approve the selection and any replacement of the individuals for the General Manager of the Hotel; provided that Lessee
shall 

  

 26 

 
be deemed to have approved the appointment of any such individuals unless Lessee delivers notice of its disapproval of such appointment within two (2)
business days after (a) Manager’s delivery to Lessee of a written summary of such individual’s professional experience and qualifications, (b) an interview between Lessee and such individual at the Hotel or at another mutually acceptable
location (it being agreed that Lessee will forego its right to interview any such individual if Lessee is unwilling or unable to have an authorized representative participate in the interview within two (2) business days following Manager’s
notice to Lessee of Manager’s desire to arrange such an interview) and (c) Manager’s delivery of a written summary of a background check, interview summaries and salary or wage requirements. Manager shall be required to maintain at all
times a full-time General Manager, Director of Sales and Chief Engineer or other equivalent maintenance position (and all such other persons as may be required by the Franchise Agreement, market demands and good practice) for the Hotel. Manager
represents that Schedule 7.01 specifies the structure, functions and identity of each member of Manager’s executive staff at the Hotel and the corporate personnel of Manager who may render services to or with respect to the Hotel and
Manager covenants that it shall not deviate from such functions and the reasonable performance thereof of Manager’s executive staff without Lessee’s prior written approval, which approval shall not be unreasonably withheld. 
  
 B. All employees shall at all times be the employees of Manager and
not of Lessee or Owner. All compensation of Hotel employees shall be paid by Manager, and the amount of such payments to Hotel employees shall be reimbursed to Manager by Lessee by Manager’s withdrawal of such amounts as Deductions each
Accounting Period. Lessee shall not have any responsibility or control respecting such employees unless otherwise specified in this Agreement. Manager shall establish appropriate payroll accounts covering all such employees of the Hotel.
Notwithstanding any other provision of this Agreement to the contrary, no collective bargaining agreements will be signed by Manager without Lessee’s prior written approval which may be provided or withheld in its sole discretion (subject to
the provisions of applicable law). 
  
 C. Manager and
Lessee agree to cooperate with each other to attempt to avoid any disqualification of qualified employee benefit plans of any of them to the extent such plans may be affected by the provisions of this Agreement or the services provided hereunder.
However, neither Manager nor Lessee shall be required to change the terms of any such plan as part of such cooperation. Notwithstanding the foregoing, in no event shall Manager initiate or adopt any plans, programs or benefits for Hotel employees
not otherwise in effect at Other Managed Hotels unless (i) required by applicable collective bargaining agreements or applicable laws, statutes, ordinances or regulations or (ii) necessitated by local labor market conditions, provided that such
plan, program or benefit does not require a collective bargaining agreement to be entered into, is not a violation of law and does not require the provision of such plan, program or benefit at Other Managed Hotels. 
  
 D. All personnel employed at the Hotel shall be recruited and trained
by Manager in a manner consistent with the Franchise Agreement, and with Manager’s practices at other comparable hotels managed and operated by Manager. Manager shall reasonably decide which, if any, of the Hotel’s employees or guests
shall reside at the Hotel and shall be permitted to provide gratuitous or reduced charge accommodations, services, and amenities to its employees and guests, subject to availability and in accordance with the usual practices of the hotel and travel
industry. 
  
 E. Subject to the limitations on union
contracts otherwise contained in this Agreement, Manager agrees to respond to organizational efforts by unions and in negotiating and 

  

 27 

 
implementing union agreements. With respect to Manager’s employees, Manager will control the terms of any union contract and will not be required to
take actions which will unreasonably increase Manager’s liabilities pursuant to the union contract. Upon termination of this Agreement, in the event that Lessee or its designee elects to hire any employees of Manager, Lessee (or its designee)
will assume Manager’s obligations under the union contract with respect to any employees hired by Lessee (or its designee) at that time; provided, however, it is understood and agreed that Lessee or its designee shall have no obligation to hire
any employees of Manager upon the termination or expiration this Agreement. 
  
 7.02 Termination. Lessee acknowledges that Manager or its Affiliate may have an obligation under federal, state, or local law to give advance notice to Hotel personnel of any termination of their employment,
and that failure to comply with any such notification obligation could give rise to civil liabilities. Therefore, notwithstanding anything to the contrary contained in this Agreement, (i) the date of Termination of this Agreement shall be extended
(other than upon expiration of the Initial Term or any Extension Term), so that the date of termination after notice of termination is given to or by Manager shall be on a date which is not earlier than ten (10) days plus the number of days, if any,
Manager is required to give its employees advance notification of termination of employment as required by the WARN Act, or any similar federal or state statute; (ii) Lessee shall indemnify, hold harmless and defend Manager and its Affiliates from
and against any such liabilities based on Lessee’s actions (including terminating this Agreement) which give rise to such a notification obligation on the part of Manager or any of its Affiliates, if Lessee fails to extend the date of
termination as required by, and in accordance with, subsection (i) of this Section 7.02; and (iii) Manager shall continue to employ such current employees at the Hotel from and after the Effective Date of this Agreement as are necessary and for so
long as is necessary to not cause a “mass layoff,” “plant closing,” or other violation relating to the termination of employees of Manager under the WARN Act. Lessee shall have no responsibility under, nor any liability to
Manager and its Affiliates with respect to, the WARN Act or any similar federal or state statute, provided Lessee has complied with its obligations under this Section 7.02. If a WARN Act notice or other similar notice is required to be given in
connection with the termination of this Agreement, then Manager shall give such notice as soon as reasonably practicable. 
  
 7.03 Employee Claims. Manager shall pay from its own funds, and not from Gross Revenues, for any Employee Claim and for the defense of any Employee
Claim which: (i) is a substantial violation of the standards of responsible labor relations as generally practiced by prudent owners or operators of similar hotel properties in the general geographic area of the Hotel, or (ii) is not the isolated
act of individual employees, but rather is a direct result of action or neglect of Manager which either encourages or fails to discourage such conduct. In addition, Manager shall indemnify, defend and hold harmless Lessee and Owner from and against
any fines or judgments arising out of such conduct, and all litigation expenses (including reasonable attorneys’ fees and expenses) incurred in connection therewith. 
  
 Section 8. Franchise Agreement 
  
 During the Term, the Hotel shall be managed and operated in compliance with the terms and conditions of the Franchise
Agreement, and Manager shall at all times comply with the Franchise Agreement and, without limiting any other provisions of this Agreement, any loan and loan related documents with respect to the Hotel and advise and assist Lessee in the performance
and discharge of its covenants and obligations thereunder. Lessee shall comply with any capital expenditure requirements and product improvement plan, and shall purchase or provide for the purchase of FF&E and Fixed Asset Supplies (but in the
case of Fixed Asset Supplies 

  

 28 

 
only such amount as necessary to initially implement operating standard changes), in each case as may be required from time to time by the Franchisor in
accordance with the terms of the Franchise Agreement, the cost of which shall be paid in accordance with this Agreement. Franchisor shall have the right to communicate directly with Manager regarding day-to-day operation of the Hotel, provided that
Manager shall promptly brief Lessee on any such direct communication. 
  
 Section 9. Compensation and Reimbursements to Manager 
  
 9.01 Management Fees. In consideration of the services to be performed by Manager, during the Term Manager shall be paid the following fees (which may be referred to herein collectively as the “Management Fees”):

  
 A. Base Management Fee. Manager shall be paid a
periodic base management fee (“Base Management Fee”) in the amount of three percent (3%) of Gross Revenues for each Fiscal Year. 
  
 B. Incentive Management Fee. In addition to the Base Management Fee, subject to the Pooling and Cumulation Agreement, Manager shall be paid an
incentive fee (“Incentive Management Fee”) equal to fifty percent (50%) of Available Cash Flow in any Fiscal Year. 
  
 C. Accounting Services Fee. In addition to the Base Management Fee and the Incentive Management Fee, Manager shall be paid a flat fee for
accounting services (“Accounting Services Fee”) equal to Seven Hundred Fifty Dollars ($750) per month. 
  
 9.02 Group Services. Manager and its Affiliates may furnish or cause to be furnished to the Hotel a list of group services which Manager proposes
to render to the Hotel. Lessee shall have the right to decline any or all of the group services proposed to be furnished by Manager, and to not be responsible for the costs of same. Charges for group services which are accepted by Lessee in writing
shall be equal to the actual cost thereof, without mark-up or profit to Manager or any Affiliates. As of the date hereof, Manager expressly acknowledges and agrees that it is not providing any group services to Lessee. 
  
 9.03 Accounting and Payment. 
  
 A. Periodic Accounting. Within twenty (20) days after the close
of each Accounting Period, Manager shall submit paper and electronic copies of an accounting to Lessee, in form satisfactory to Lessee, showing Manager’s computation of Gross Revenues, Deductions, Operating Profit, Available Cash Flow and
distributions for such Accounting Period and for the Fiscal Year to date. Notwithstanding the foregoing, Manager shall deliver to Lessee on a daily basis electronic “flash” reports with respect to revenue, the average daily rate and
occupancy for the Hotel. 
  
 B. Annual Accounting. The
calculation and payment of the Management Fees and the distribution of Available Cash Flow made with respect to each Accounting Period within a Fiscal Year shall be accounted for cumulatively. Within twenty (20) days after the close of each Fiscal
Year, Manager shall submit an accounting, as more fully described in Section 12.02 for such Fiscal Year to Lessee, which accounting shall be controlling over the interim accountings. Any payment adjustments required for such Fiscal Year by such
final accounting shall be made promptly by the parties. 
  

 29 

 C. Base Management Fee. The Base Management Fee shall be payable in monthly installments
concurrently with the delivery to Lessee of the monthly report under Section 9.03A. The monthly installments of the Base Management Fee shall be an amount equal to 3% of Gross Revenues for the preceding month. On a quarterly basis, the monthly (and,
if applicable, annual) reports to be delivered by Manager to Lessee under Sections 9.03 and 12.02 shall be reviewed with respect to the Base Management Fee. If such reports show that the aggregate of the monthly installments of the Base Management
Fee actually paid with respect to the preceding quarter of the Fiscal Year exceed or are less than the Base Management Fees as shown in the reports applicable to such quarter of the Fiscal Year, then Manager shall deposit from its own funds into, or
withdraw from, the Hotel Accounts or the Operating Account, the amount of such overpayment or underpayment, as the case may be. 
  
 D. Incentive Management Fee. Notwithstanding that the Incentive Management Fee shall be calculated based upon the Available Cash Flow with
respect to a Fiscal Year pursuant to the terms of this Agreement, quarterly advances on the actual Incentive Management Fee, if any, to be paid to Manager with respect to a Fiscal Year shall be made based upon interim calculations of year-to-date
Available Cash Flow at the end of each of the first three (3) fiscal quarters of a Fiscal Year giving Lessee credit for any prior advances which have been made in respect of a prior fiscal quarter in such Fiscal Year. Payments of such quarterly
advances of the Incentive Management Fee shall be made based upon, and within thirty (30) days of the delivery to Lessee of the month-end reports required by Section 9.03A, subject to the terms and conditions of this Agreement and subject to
Lessee’s rights to contest or challenge such report and to the resolution of any such challenge. If, as of the end of any fiscal quarter, Manager has received excess payments of its Incentive Management Fee for year-to-date performance, then
Manager shall immediately repay such excess to Lessee and Lessee shall, without limiting the foregoing, have the right to instead offset such excess amounts owing to it against any amount owing by Lessee to Manager hereunder. Within thirty (30) days
of the delivery to Lessee of the Annual Operating Statement report under Sections 9.03B and 12.02, the final payment of amounts owed to Manager with respect to the Available Cash Flow in respect of the Fiscal Year as to which such Annual Operating
Statement relates shall be made, or, if based upon such Annual Operating Statement Manager has been paid advances on the Incentive Management Fee in respect of such Fiscal Year which exceed the amount of the Incentive Management Fee actually owed to
Manager for such Fiscal Year, then within such thirty (30) days Manager shall repay to Lessee such excess. All payments to Manager with respect to the Incentive Management Fee, including, without limitation advances, are expressly subject to the
prior payment to Lessee, and subordinated to Lessee’s right to receive, Lessee’s Priority, and are subject to the other terms and conditions of this Agreement, the Pooling and Cumulation Agreement, and Lessee’s rights to contest or
challenge any such report and to the resolution of any such challenge. Without limiting the foregoing, for clarification purposes, Manager and Lessee hereby agree that the payment to Manager of the Incentive Management Fee, if any, shall be
subordinated to Lessee’s Priority hereunder (for the then current Fiscal Year and for any and all prior Fiscal Years, to the extent not fully paid) and shall be subject to the Pooling and Cumulation Agreement. 
  
 E. Accounting Services Fees. The Accounting Services Fee shall be
payable in monthly installments concurrently with the delivery to Lessee of the monthly report under Section 9.03A. 
  
 F. Order and Priority. Notwithstanding anything to the contrary contained in this Section 9, but subject to the last two sentences of 9.03D above,
payment of Management Fees provided for hereunder shall be subject to the priority of payment on, and made in the order contemplated by, 

  

 30 

 
Schedule 9.03F attached hereto. 
  
 G. Disputes. Any disputes arising out of the subject matter of this Section 9 shall be submitted to mediation and arbitration pursuant to Section
19.13. 
  
 Section 10. Maintenance, Repairs, Alterations and
Improvements 
  
 10.01 Repairs and Maintenance. From
and after the Management Commencement Date, Manager shall maintain the Hotel in good repair and condition, in material conformity with applicable laws and regulations, as well as in compliance in all material respects with any and all reasonable
requirements of the Franchisor. Manager shall make or cause to be made all routine maintenance and repairs to the Hotel which are normally expensed under GAAP, as it may reasonably deem necessary. The cost of all such routine maintenance and repairs
shall be paid from Gross Revenues and be treated as a Deduction hereunder. 
  
 10.02 FF&E Estimate. 
  
 A. On or before December 1st of each Fiscal Year, Lessee shall cause Owner to prepare and submit for
Lessee’s and Manager’s information only a preliminary FF&E Estimate anticipated for the following Fiscal Year, with input and cooperation from Manager. Then, on or before January 1st of each Fiscal Year, Lessee shall cause Owner to prepare and submit for Lessee’s and Manager’s information only a final FF&E Estimate, which
shall be subject to approval of the board of trustees of Innkeepers, anticipated for the following Fiscal Year, with input and cooperation from Manager. Manager shall consider the preliminary and final FF&E Estimates in preparing the projections
of revenues and expenses contained in the Annual Operating Projection. Manager shall not have any right to approve any FF&E Estimate so long as the Franchisor of the Hotel has not declared a default concerning the requirements for the condition
of the Hotel under the Franchise Agreement. 
  
 B.
Notwithstanding Section 10.02A, Manager shall be entitled to make additional expenditures not authorized under the then applicable FF&E Estimate in case of emergencies arising out of fire or any other casualty (as contemplated by Section
12.05C), or in an emergency in order to comply with any applicable Legal Requirements or reasonable safety requirements (as contemplated by Section 12.05D), provided Manager shall notify Lessee before making such additional expenditures (which
notice shall also include an explanation of the necessity of the additional expenditures, as well as documentation in support of such expenditures), or if prior notice to Lessee is not practically possible, then Manager shall notify Lessee as
promptly as reasonably possible after the making of any such additional expenditures. If, at any time, such expenditures are required to be made, Manager may make such expenditures out of then available Gross Revenues contained in the Hotel Accounts
and such expenditures shall be accounted for in accordance with Section 1.24 hereof. 
  
 C. Manager shall cooperate with Lessee in Lessee’s (or its agents’) planning, scheduling and performing of projects contemplated by the FF&E Estimate, including, without limitation, coordinating
material delivery, permitting access to contractors and others involved with the projects, and making the affected guest rooms and other areas of the Hotel available for the projects on the contemplated schedule. 
  
 D. If, as a condition to its required consent to or approval of a
Change of Control Event of Manager, the Franchisor requires this Agreement to be amended to provide for the 

  

 31 

 
establishment of an FF&E reserve out of Gross Revenues, then Lessee and Manager shall in good faith negotiate an amendment to provide for the
establishment of an FF&E reserve to the extent so required by Franchisor; provided, however, Lessee shall not be required to enter into any amendment which increases Lessee’s financial obligation with respect to FF&E, provided further
that (i) Manager shall not, without the express prior written consent of Lessee, initiate or engage in any discussions or negotiations with the Franchisor with respect to the foregoing and (ii) Lessee shall at all times control any negotiations or
discussions with the Franchisor with respect to the foregoing. 
  
 10.03 Major Capital Expenditures. The cost of expenditures with respect to Major Capital Improvements not otherwise provided for herein, shall be approved and borne solely by Lessee and/or Owner, and shall not be paid from Gross
Revenues. 
  
 A. On or before December 1st of each Fiscal Year, Lessee shall cause Owner to prepare and submit for Lessee’s and Manager’s information only a
preliminary Building Estimate of the Major Capital Improvements anticipated for the following Fiscal Year, with input and cooperation from Manager. Then, on or before January 1st of each Fiscal Year, Lessee shall cause Owner to prepare and submit for Lessee’s and Manager’s information only a final Building Estimate, which
shall be subject to approval of the board of trustees of Innkeepers, of the Major Capital Improvements anticipated for the following Fiscal Year, with input and cooperation from Manager. Such preliminary and final Building Estimates shall take into
account those Major Capital Improvements necessary to comply with the Franchise Agreement. Manager shall consider the preliminary and final Building Estimates in preparing the projections of revenues and expenses contained in the Annual Operating
Projection. Except as provided in Section 10.03, all work necessary to perform Major Capital Improvements shall be performed by Lessee or Owner or persons employed by Lessee or Owner to perform such Major Capital Improvements, and Manager shall
cooperate with Lessee and persons retained by Lessee to perform such Major Capital Improvements. Manager shall not make any Major Capital Improvements without the prior written consent of Lessee, which may be granted or withheld in its sole
discretion, except as provided in Subsection B below. 
  
 B.
Notwithstanding the foregoing, Manager shall be authorized to take appropriate remedial action (including making any necessary capital expenditures) without receiving Lessee’s prior approval if (i) there is an emergency imminently
threatening the Hotel, or the life or property of its guests, invitees or employees or (ii) the continuation of the given condition would subject Manager, Lessee or Owner to criminal or material civil liability. Manager shall notify Lessee as
promptly as reasonably possible in either case, and before making such expenditures, or if prior notice to Lessee is not practically possible, then Manager shall notify Lessee as promptly as reasonably possible after the making of any such
expenditures, and shall adhere to all reasonable instructions of Lessee in response thereto. 
  
 C. Manager shall cooperate with Lessee in Lessee’s (or its agents’) planning, scheduling and performing of Major Capital Improvements, including, without limitation, coordinating material delivery,
permitting access to contractors and others involved with the projects, and making the affected guest rooms and other areas of the Hotel available for the projects on the contemplated schedule. 
  
 10.04 Liens. Manager and Lessee shall use their reasonable best
efforts to prevent any liens from being filed against the Hotel which arise from any maintenance, changes, repairs, alterations, 

  

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improvements, renewals or replacements in or to the Hotel. Manager and Lessee shall cooperate fully in obtaining the release of any such liens, and the cost
thereof, if the lien was not occasioned by the fault of either party, shall be treated the same as the cost incurred pursuant to Section 10.03. If the lien arises as a result of the fault of either party, then the party at fault shall bear the cost
of obtaining the lien release. 
  
 10.05 Ownership of
Replacements. All changes, repairs, alterations, improvements, renewals, or replacements to the Hotel made pursuant to this Section 10 shall be the property of Lessee or Owner, as determined in the Percentage Lease. 
  
 10.06 Capital Expenditure Policy. In addition to the foregoing
provisions of this Section 10, Lessee or Owner may, from time to time, promulgate a Capital Expenditure Policy providing for the identification, payment, and implementation of capital expenditures and non-capital expenditures. Attached hereto as
Schedule 10.06 is Owner’s current Capital Expenditure Policy. Lessee or Owner shall have the right, from time to time, to modify this Capital Expenditure Policy to conform to generally accepted accounting principles (“GAAP”) or
the Uniform System or as otherwise may be required by GAAP or the Uniform System, and any such modifications shall be deemed controlling upon Lessee and Manager upon such promulgation by Lessee or Owner, provided, however, that in the event that any
such modification of the Capital Expenditure Policy shall have a material adverse affect on the benefits to Manager under this Agreement, then Manager shall have the right by written notice to Lessee, within thirty (30) days of receiving notice of
such modification, to terminate this Agreement upon ninety (90) days prior written notice without further liability or obligation of Lessee hereunder and Manager shall comply with Section 3.03 in connection with such termination. In the event of any
conflict between this Agreement and the Capital Expenditure Policy, the terms of the Capital Expenditure Policy shall govern. 
  
 Section 11. Payment of Certain Taxes 
  
 11.01 Payment of Certain Taxes. During the Term, all taxes in the nature of personal property or real estate taxes (“Lessee Taxes”)
following or allocable to the period following the Management Commencement Date shall be, as between Manager and Lessee, the responsibility of Lessee at its sole cost and expense before any fines, penalties, or interest are added thereto or liens
placed upon the Hotel, unless payment is in good faith being contested and enforcement thereof is stayed. Manager shall have no right or interest in any refund or rebate of any such Lessee Taxes and, as between Lessee and Manager, Lessee shall be
entitled thereto. Any fines, penalties or interest added to any Lessee Taxes which result from Lessee’s or Owner’s acts or omissions shall be paid by Lessee at its sole expense, and Lessee shall indemnify Manager and hold Manager harmless
from and against liability for such fines, penalties or interest. 
  
 Section 12. Books, Records, Statements, Accounts and Projections 
  
 12.01 Books and Records; Centralized Accounting Services. Except as otherwise provided in this Agreement, Manager shall keep full and adequate books of account and such other records as are necessary to reflect
the operations, assets and liabilities of the Hotel, all such books and records to be kept by Manager on an accrual basis in accordance with GAAP consistently applied, and in all material respects in accordance with the Uniform System of Accounts.
Lessee may, upon 24 hours’ notice and during Manager’s normal business hours, examine such records and Manager’s accounting system and internal controls. Manager expressly agrees to adopt any internal controls as may be reasonably

  

 33 

 
requested by Lessee from time to time. Manager shall, directly, or through an Affiliate or one of the Other Managed Hotels, provide the accounting functions
for the Hotel, including without limitation, accounts payable, general ledger, payroll and accounts receivable, or any part thereof, which may be kept on a centralized basis with one or more Other Managed Hotels for the purpose of achieving, and for
so long as such efforts of Manager result in, a more cost-efficient operation of the Hotel. 
  
 12.02 Annual Operating Statement; Audits and Inspection Rights.  
  
 A. Within twenty (20) days following the close of each Fiscal Year, Manager shall furnish to Lessee (a) paper and electronic copies of an Annual
Operating Statement, in the form attached hereto as Exhibit C, a balance sheet, a related statement of profit and loss and a statement of cash flows, having annexed thereto a computation in reasonable detail of each component of the
Management Fees for such Fiscal Year, (b) a certificate signed by Manager’s chairman, its chief executive officer and its chief accounting officer, certifying that the Annual Operating Statement and such other financial statements are true and
correct to the best of the knowledge and belief of each such officer, and certifying as to such other matters as reasonably requested by Lessee to comply with its Affiliates’ securities laws reporting requirements and, (c) if required by a
Mortgagee, an opinion thereon (to be delivered within the time required by Mortgagee, rendered by a firm of independent certified public accountants of recognized standing in the hotel industry as may be approved by Lessee and Manager). The form of
Annual Operating Statement shall be as approved in writing by Lessee. Any objections by Lessee to the Annual Operating Statement or such other financial statements must be made in writing and sent to Manager in accordance with the notice provisions
of this Agreement within thirty (30) days of Manager’s submission thereof. If Lessee elects not to raise any such objections in accordance with the foregoing sentence, it shall be deemed to have accepted the Annual Operating Statement and such
other financial statements, absent fraud. Within twenty (20) days following the close of each month end quarter of each Fiscal Year, Manager shall furnish to Lessee statements similar to those statements required to be delivered on an annual basis
pursuant to this Section 12.02A. 
  
 B. Lessee shall have
the right, at its own expense, to inspect and audit any and all books and records of Manager or the Hotel with respect to costs and expenses related to the Hotel, as further provided below. Such inspections and audits may be conducted by Lessee or
its designated agent no more than quarterly (for inspections) and annually (for full-scale audits) at the Hotel (and/or at any location where Manager provides for the storage, compilation, processing or generation of books and records relating to
the Hotel) on twenty (20) days prior written notice to Manager. Manager agrees to cooperate with any such inspection and audit by making available to Lessee or its designated agent all books and records reasonably necessary for the conduct of such
inspection or audit. If any such inspection or audit discloses that any fees, expenses or any other amounts required to be paid under this Agreement have been underpaid or overpaid by three percent (3%) or more, then Manager shall (i) promptly
deposit into the Hotel Accounts, or, if necessary and permitted by any applicable Mortgagee, directly disburse to the applicable payee thereof, the amount of any such underpayment or overpayment together with interest at the Overdue Rate (provided
that, if and for so long as this Agreement is in effect, Manager shall credit any such underpaid amounts against future Management Fees next payable to it hereunder), and (ii) pay to Lessee, at Manager’s sole cost and expense, all reasonable
fees and costs incurred by Lessee directly in connection with the audit. 
  
 C. Lessee shall have such additional inspection and audit rights, and Manager shall provide such additional reports to Lessee, as Lessee may request from time to time in connection with 

  

 34 

 
the satisfaction of the federal securities laws reporting obligations of Innkeepers. In the event that Manager incurs material costs in complying with the
foregoing sentence, the parties shall negotiate in good faith with respect to bearing such costs and/or any appropriate compensation as may be consistent with the other terms and conditions of this Agreement. 
  
 12.03 Accounts; Cash Management and Funding. 
  
 A. All funds derived from the operation of the Hotel, or otherwise
relating to the Hotel (including, without limitation, proceeds of extraordinary events and other non-operating proceeds), shall belong to and be the property of Lessee and shall be deposited by Manager, as and when received, in bank accounts (the
“Hotel Accounts”) established by Manager for Lessee in one or more banks approved by Lessee, which approval shall not be unreasonably be conditioned, withheld or delayed. All such funds so deposited shall be swept daily into an account
established by Manager on behalf of and for the benefit of Lessee (such account being referred to hereinafter as the “Operating Account”). Subject to the working capital requirement in the Pooling and Cumulation Agreement, all funds in the
Operating Account shall be swept on a daily basis to an account established and solely controlled and operated by Lessee or one of its Affiliates (such account being referred to hereinafter as the “Holding Account”) (it being understood
and agreed that Manager shall not have access to or control over the Holding Account). Notwithstanding the foregoing, Manager and Lessee agree to meet from time to time regarding the number and nature of the above described accounts and the method
of sweeping cash from such accounts. All disbursements and withdrawals from the Hotel Accounts and the Operating Account as required or permitted under this Agreement shall be made by authorized representatives of Manager. Reasonable petty cash
funds and house banks, in amounts satisfactory to Lessee, shall be maintained at the Hotel. Lessee may, upon reasonable notice, inspect and/or copy monthly statements for any or all of the Hotel Accounts. In the event of a Change of Control Event of
Innkeepers or a permitted Change of Control Event of Manager, Manager shall be entitled to propose, and the parties shall negotiate in good faith with respect to the imposition of, a cash sweep mechanism consistent with the then-prevailing industry
practice. 
  
 B. All payments to be made by Manager
hereunder shall be made from the Operating Account, from petty cash funds or from other funds provided by Lessee as contemplated by Section 12.03D hereof. Debts and liabilities incurred by Manager as a result of its operation and management of the
Hotel pursuant to the terms hereof and which are the responsibility of Lessee hereunder, whether asserted before or after Termination, shall be paid directly by Lessee to the extent that funds from Gross Revenues are not available for that purpose.
Manager shall not be required to make any advance or payment to or for the account of Lessee except out of such funds, and Manager shall not be obligated to incur any liability or obligation for Lessee’s account. 
  
 C. The Hotel Accounts and the Operating Account shall be owned by
Lessee and shall be solely controlled and operated by Manager on Lessee’s behalf. Any funds deposited in such bank accounts shall not be commingled with the assets of Manager, its Affiliates or other third parties. Manager will deposit in Hotel
Accounts all monies received from the operation of the Hotel. Lessee shall be provided with “read-only” internet access to the Hotel Accounts and the Operating Account if and to the extent such access is commercially reasonably available.
All of the terms and provisions of this Section 12.03 shall be subject to the terms of any Mortgage, subordination agreement or other loan documents held by a Mortgagee. 
  

 35 

 D. Subject to the requirements of any Mortgagee and the terms of the Pooling and Cumulation
Agreement, Manager shall present documentation reasonably acceptable to Lessee evidencing any amounts required to be paid in connection with the operation of the Hotel. Upon receipt of such documentation, Lessee shall promptly distribute such
amounts required to be paid into the Operating Account and Manager shall pay such amounts on or prior to their due dates. Notwithstanding the foregoing, Lessee’s funding of the foregoing amounts shall not constitute a modification of the
Business Plan, acceptance or approval of any expenses, or a waiver of any of Lessee’s rights or remedies or Manager’s obligations hereunder, including, without limitation, Lessee’s rights to review, approve and audit the Annual
Operating Statement under Section 12.02 and to review and audit the periodic and annual accountings delivered pursuant to Section 9.03. Subject to Section 3.03, any amounts remaining in the Hotel Accounts and the Operating Account on the termination
of this Agreement shall be disbursed to Lessee. Subject to the foregoing provisions of this Section 12.03, Manager’s designees shall be the only persons authorized to draw from the Hotel Accounts and the Operating Account, and Manager shall be
entitled to make deposits in all the Hotel Accounts, in accordance with the terms of this Agreement and Manager’s standard accounting policies and practices. Manager shall establish controls to ensure accurate reporting, safety and security of
all transactions involving the Hotel Accounts and the Operating Account and to comply with the provisions of applicable law with respect thereto. Unless due to Manager’s gross negligence or willful misconduct, any loss suffered in the Hotel
Accounts or any other bank account established pursuant to this Section 12.03, shall be treated as a Deduction; to the extent any such loss suffered is a result of Manager’s gross negligence or willful misconduct, Manager shall have the
liability and responsibility therefor and shall reimburse such account therefor (provided that Manager shall be liable for any loss in the Operating Account due to the action or inaction of Manager or any of its agents or employees). All designees
of Manager that are signatories on either the Hotel Accounts or the Operating Account shall be employees of Manager and, as such, shall be insured by Manager’s fidelity/crime insurance coverage with respect to the management of such accounts.
Notwithstanding the foregoing provisions of this Section 12.03, the Hotel Accounts and the Operating Account may, in accordance with the requirements of a Mortgage, be established at a banking institution or institutions selected by Mortgagee and
held in Mortgagee’s name. In such event, Lessee and Mortgagee shall enter into a cash management agreement, “lock-box” agreement or other similar agreement regulating the management of Gross Revenues from the operation of the Hotel.

  
 12.04 Business Plan. 
  
 A. Manager will submit to Lessee, not less than forty-five (45) days
in advance of each Fiscal Year, an estimate of profit and loss, cash flows and a balance sheet and each other component of the Business Plan (i.e., which considers the FF&E Estimate and Building Estimate prepared and submitted by Lessee, and the
Marketing Plan) for such Fiscal Year. Additionally, Manager shall submit the following information along with each Business Plan: general information concerning pay scales and benefits programs applicable to the employees of the Hotel,
Manager’s general staffing policies and Manager’s plans for staffing levels at the Hotel for the forthcoming Fiscal Year. A specimen copy of a Business Plan is attached hereto as Schedule 12.04A, however, the form and structure of
the Business Plan is subject to change upon the agreement of Lessee and Manager. The Business Plan shall separate expenses into specific “departmental” groupings and provide an aggregate expense amount for each such departmental grouping,
in addition to line item amounts of expenses within a departmental grouping. 
  

 36 

 B. In connection with the submission of the Business Plan, the representatives of Manager will
meet with Lessee to have an in-depth discussion with respect thereto, including a comparison with the previous year’s performance of the Hotel, a discussion of marketing strategy, identity of markets and the proposed expenditures contained in
the Annual Operating Projection, and any questions Manager may have concerning the FF&E Estimate and Building Estimate, subject to the provisions of Section 10. 
  
 C. The Business Plan shall be subject to the approval of Lessee, in its sole discretion, it being contemplated that
each such Business Plan shall be agreed upon by the parties by January 15th of each year. If Lessee shall fail to
approve any Business Plan by January 15th and fails to submit its written objections thereto to Manager by such
date, then in such event Lessee shall be deemed to have approved the same. In case of a dispute with regard to any component of the Annual Operating Projection, then pending the settlement thereof by the parties, or until such dispute is resolved in
arbitration in accordance with Section 19.13 (which arbitration decision with respect to such dispute shall be resolved by the arbitrator(s) on a reasonable basis giving due consideration to such factors as may be relevant to such dispute,
including, without limitation, the reasonableness of the parties’ positions and information, to the extent available, with respect to the Competitive Set and such other relevant information available from Smith Travel Trends Report, Star
Report, produced by Smith Travel Research), Manager shall be entitled to continue to operate the Hotel in accordance with the standards set forth herein and shall be entitled to make expenditures which are contemplated by and consistent with the
relevant Annual Operating Projection proposed by Manager for such Fiscal Year; provided that, subject to Sections 12.05A-12.05D, the maximum approved amount of such expenditures shall be equal to (a) the aggregate of all items set forth in the
Annual Operating Projection which are not disputed by Lessee, plus (b) with respect to all items in the Annual Operating Projection which are disputed or objected to by Lessee, the amount allocated to such item(s) in the Annual Operating Projection
for the immediately preceding Fiscal Year increased by the difference between the CPI on January 1 of the Fiscal Year immediately preceding the Fiscal Year in question and the CPI on January 1 of the Fiscal Year in question. 
  
 12.05 Performance Under Business Plan. Manager shall use commercially
reasonable best efforts to achieve the results set forth in each component of the Business Plan with respect to any Fiscal Year in order to achieve the Available Cash Flow as anticipated by the Business Plan; provided, however, Lessee acknowledges
that the Business Plan is a compilation of estimates and, therefore, Manager cannot guarantee or warrant that the actual operation of the Hotel for any Fiscal Year will be as set forth in the Business Plan for such Fiscal Year, provided further that
Lessee’s acknowledgment and such lack of guarantee and warranty shall not limit Lessee’s rights of Termination under Section 3.02 or otherwise. During each Fiscal Year during the Term, Manager shall use its commercially reasonable best
efforts to operate the Hotel within the approved Business Plan (subject, in the case of any disputed items, to the provisions of Section 12.04C). In preparing all budgets and forecasts to be submitted to Lessee hereunder, Manager shall base its
estimates upon the most recent and reliable information then available, taking into account the location of the Hotel and its experience in other comparable hotels. Manager reserves the right, and shall have the obligation, to update and revise the
Business Plan, or any component thereof, from time to time (and at least quarterly) during the periods covered thereby to reflect Uncontrollable Expenses or changed circumstances. Such updatings and revisions shall incorporate actual results for the
year to date and Manager’s then current estimate of the results of operations of the Hotel for the balance of the Fiscal Year, include a reasonably detailed explanation of the changes and the new estimate and shall be provided quarterly
together with the monthly statement 

  

 37 

 
delivered after the month ending each quarter. All such updatings and revisions of the Business Plan (whether or not any such changes in the Business Plan
indicate shortfalls which would necessitate a need for additional working capital to be provided by Lessee) shall be submitted, together with reasonable explanations of the reasons for such changes, to Lessee for its approval, which may be granted
or withheld in its sole discretion. Notwithstanding the foregoing, Lessee and Manager understand and agree as follows: 
  
 A. Certain expenses provided for in the Annual Operating Projection for any Fiscal Year will vary based on the occupancy of the Hotel; and,
accordingly, to the extent that occupancy of the Hotel for any Fiscal Year exceeds or is less than the occupancy projected in the approved Annual Operating Projection for such Fiscal Year, such approved Annual Operating Projection shall be deemed to
include corresponding increases or decreases in such variable expenses (for clarification purposes, it being expressly agreed that such corresponding increases or decreases shall be included in the Annual Operating Projection for purposes of Section
3.02). 
  
 B. Utilities, insurance premiums (other than
property insurance premiums) and license and permit fees incurred pursuant to this Agreement (other than regularly scheduled or expressly stated payments contemplated thereby) may exceed the budgeted amounts provided therefore in the Annual
Operating Projection and FF&E Estimate for any Fiscal Year, as a result of circumstances which are outside of Manager’s ability to control; and (ii) certain expenditures that may be required to comply with new and unforeseen mid-Fiscal Year
requirements imposed by the Franchisor and such expenditures may exceed the budgeted amounts for the Franchise Agreement (but only for the balance of such Fiscal Year) (collectively, the matters described in A and B shall be considered
“Uncontrollable Expenses”). Manager shall notify Lessee as promptly as reasonably possible of any proposed expenditure contemplated by this subsection (B)(ii) before making such expenditures, or if prior notice to Lessee is not practically
possible, then Manager shall notify Lessee as promptly as reasonably possible after the making of any such expenditures, and shall adhere to all reasonable instructions of Lessee in response thereto. 
  
 C. If any expenditures are required as a result of a Force Majeure
Event directly and adversely affecting the physical plant or operation of the Hotel, or on an emergency basis to avoid material property damage to the Hotel or injury to persons or property, Manager may make such expenditures, whether or not
provided for or within the amounts provided for in the approved Annual Operating Projection for the Fiscal Year in question, as may reasonably be required to avoid or mitigate such damage or injury. Manager shall notify Lessee as promptly as
reasonably possible of any Force Majeure Event, and before making such expenditures, or if prior notice to Lessee is not practically possible, then Manager shall notify Lessee as promptly as reasonably possible after the making of any such
expenditures, and shall adhere to all reasonable instructions of Lessee in response thereto. 
  
 D. If any expenditures are required to cure a violation of a Legal Requirement or necessary with respect to the reasonable safety of persons at the Hotel, subject to Lessee’s right to direct Manager to
contest such Legal Requirements or violation out of funds available from Gross Revenues (or if not so available, from Lessee), Manager may make such expenditures, whether or not provided for or within the amounts provided for in the approved
Business Plan for the Fiscal Year in question, as may be necessary to comply with such Legal Requirement or to remove or prevent the violation thereof or necessary with respect to the reasonable safety of persons at the Hotel. Manager shall notify
Lessee as promptly as reasonably possible of any proposed expenditure contemplated by this Section 12.05D 

  

 38 

 
before making such expenditures, or if prior notice to Lessee is not practically possible, then Manager shall notify Lessee as promptly as reasonably
possible after the making of any such expenditures, and shall adhere to all reasonable instructions of Lessee in response thereto. Any such amounts so paid from Gross Revenues or paid by Lessee pursuant to this Section 12.05D shall be treated as a
Deduction under this Agreement. If Lessee directs Manager to contest a Legal Requirement or violation, Manager shall be indemnified against any direct liability that Manager may have as a result of failing to cure such a violation, such
indemnification first to come from Gross Revenues and thereafter, if necessary, from Lessee. 
  
 E. Any deviations by Manager from any line item of any component of the Business Plan (but, in the case of expenses, deviations from any estimate in the Business Plan of the aggregate amount of any expense
department) during any Fiscal Year (including, without limitation, any Lessee-approved updates or revisions thereto as contemplated above) shall be subject to Lessee’s prior written approval which may be granted or withheld in its sole
discretion; provided, however, Lessee’s approval shall not be required to the extent such deviations are caused by any of the circumstances contemplated in subsections A through D of this Section 12.05, and are consistent with the limitations
set forth in such subsections. 
  
 12.06 Allocation of Certain
Expenses. Subject to Section 9.02, it is agreed that, to the extent that any compensation or other expense reimbursable to Manager or its Affiliates under this Agreement is not incurred solely for the benefit of the Hotel, then such compensation
or expense shall be appropriately allocated to the other beneficiaries of such expense. With respect to group services provided by Manager in accordance with Section 9.02, if any, Manager shall, within ninety (90) days after the end of each Fiscal
Year, furnish to Lessee a certification from the chief financial officer of Manager (a) that such person has reviewed all the group services and purchasing and procurement compensation, costs and expenses, and allocations thereof, (b) that such
services were furnished on a not-for-profit basis; and (c) that the allocations of such compensation, costs and expenses as described were uniformly and fairly allocated to the Hotel and all Other Managed Hotels in the manner described without
giving effect to any other benefits given to Other Managed Hotels. Upon receipt of such certification, Lessee may elect to require, and Manager consents to, an audit by an independent accounting firm selected by Lessee of such group services and
purchasing and procurement compensation, costs and expenses, and the allocation thereof to the Hotel. In the event such audit reveals a variance with respect to the matters certified in the foregoing, Manager shall promptly refund the amount of such
variance to Lessee from Manager’s own funds (such refund shall not be treated as a Deduction). If such audit reveals a variance in excess of $50,000, then Manager shall solely bear the expense of such audit (otherwise Lessee shall solely bear
such expense). Manager shall give Lessee not less than sixty (60) days prior written notice of any proposed change in the method for allocating such costs and expenses, including the reasons therefor and a description of the proposed new method of
allocation together with an analysis, in reasonable detail, of how such change would affect the group services and purchasing or procurement compensation, costs and expenses which would be billed or credited to the Hotel. Manager shall not change
the method of allocating such costs and expenses unless the revised method is fair and equitable, and such revised method provides for the allocation of such costs and expenses on the same basis as allocated to all of the Other Managed Hotels.

  
 Section 13. Insurance; Indemnification 
  
 13.01 Property and Operational Insurance. 
  

 39 

 A. Maintenance of Insurance. Commencing with the Management Commencement Date and
continuing throughout the Term, Lessee shall at all times keep the Hotel insured with the kinds and amounts of Insurance described in Section 13.02 below and in accordance with any Mortgage and the Franchise Agreement with the exception of
workers’ compensation insurance and employment practices liability insurance, provided for in Sections 13.02H and 13.02J, respectively. This insurance shall be written by qualified, solvent companies which can legally write insurance in the
state in which the Hotel is located. The policies must name Lessee and Manager as parties insured, as their interest may appear, with minimum deductibles customary in the industry, but in any event, not greater than $25,000, or $250,000 with
respect to property coverages; such deductible limitations shall not apply to earthquake, wind, flood insurance and employment practices liability coverage. Losses shall be payable to Lessee except to the extent that Manager’s interests may
appear with respect to any matter being settled under the coverages described in Sections 13.02D or 13.02J below. Subject to Section 13.10 below, any loss adjustment with respect to the insurance coverages set forth in A, B and C of Section 13.02
below shall be made by Lessee acting in its sole and absolute discretion. Certificates in standard form evidencing the insurance required to be maintained under this Agreement shall be provided by the procuring party to the other party. 

 
 B. Lessee Methods of Obtaining Insurance. At its option,
Lessee may procure and maintain the insurance by (i) undertaking the procuring of insurance directly in its own name and behalf or (ii) agreeing to coverage under Manager’s blanket policies in accordance with Manager’s proposal at a price
established by Manager. Upon and in the event of the selection of Manager’s insurance policy, such policy shall be deemed acceptable to Lessee. 
  
 13.02 Coverages. The policies provided by Lessee shall include: 
  
 A. Subject to Section 13.02M, Building Insurance of risks on the “Special Form” or “All Risk
Form” in an amount not less than 100% of the then full replacement cost thereof (as defined in Section 13.04 below) or such other amount which is acceptable to Lessee, and personal property insurance on the “Special Form” or “All
Risk Form” in the full amount of the replacement cost thereof; 
  
 B. Earthquake and, if the Hotel is in the 100-year floodplain, flood insurance in reasonable and adequate amounts as reasonably determined by Lessee; 
  
 C. Insurance for loss or damage (direct and indirect) from steam boilers, pressure vessels or similar apparatus, now
or hereafter installed in the Hotel, in the minimum amount of $5,000,000 or in such greater amounts as are then customary or as may be reasonably determined by Lessee from time to time; 
  
 D. Loss of income and business interruption insurance on the “Special Form” or “All Risk Form,”
in the amount of at least one year of Manager’s net income and Lessee’s net income for the benefit of Lessee and Manager; 
  
 E. Commercial general liability insurance, with amounts not less than $20,000,000 covering each of the following: bodily injury, death, or property
damage liability per occurrence, personal and advertising injury, general aggregate, products and completed operations, and liquor law or “dram shop” liability, if liquor or alcoholic beverages are served at the Hotel, with respect to
Lessee and Manager; 
  

 40 

 F. Insurance covering such other hazards and in such amounts as may be customary for comparable
properties in the area of the Hotel and is available from insurance companies, insurance pools or other appropriate companies authorized to do business in the state in which the Hotel is located at rates which are economically practicable in
relation to the risks covered as may be reasonably determined by Lessee; 
  
 G. Fidelity bonds with limits and deductibles as may be reasonably determined by Lessee, covering Manager’s employees in job classifications normally bonded under prudent hotel management practices in the
United States or otherwise required by law; 
  
 H.
Workers’ compensation insurance coverage for all persons employed by Manager at the Hotel. Such workers’ compensation insurance shall be in accordance with the requirements of applicable local, state and federal law, and shall always
be procured and maintained by Manager; 
  
 I. Vehicle
liability insurance for owned, non-owned, and hired vehicles, in the amount of $15,000,000. Such vehicle liability insurance shall be in accordance with the requirements of applicable local, state and federal law, and shall always be procured and
maintained by Manager; 
  
 J. Employment practices
liability insurance in an amount not less than $2,000,000. Such employment practices liability insurance shall be in accordance with the requirements of applicable local, state and federal law, and shall always be procured and maintained by Manager;

  
 K. Such other insurance as Lessee and Manager may
reasonably determine for facilities such as the Hotel and the operation thereof, or as Franchisor may require; 
  
 L. Crime Coverage in the amount of $500,000, Guest Property and Safe Deposit Liability in the aggregate amount of $25,000 ($1,000 per guest), and
Innkeeper’s Liability in the amount of $25,000; and 
  
 M.
At Lessee’s option, in it sole discretion, terrorism insurance with limits and deductibles as may be reasonably determined by Lessee. 
  
 13.03 Responsibility for Premiums. All premiums, other than for the coverages referenced in Sections 13.02A through 13.02C, shall be reflected in
the Annual Operating Projection and paid out of Gross Revenues (and shall be treated as Deductions). 
  
 13.04 Replacement Cost. The term “full replacement cost” as used herein shall mean the actual replacement cost of the Hotel requiring
replacement from time to time including an increased cost of construction endorsement, if available, and the cost of debris removal. 
  
 13.05 Waiver of Subrogation and Indemnities. All insurance policies carried by Lessee or Manager covering the Hotel, including, without limitation,
contents, fire and casualty insurance, shall expressly waive any right of subrogation on the part of the insurer against the other party. The parties hereto agree that their policies will include such waiver clause or endorsements so long as the
same are obtainable without extra cost, and in the event of such an extra charge the other party, at its election, may pay the same, but shall not be obligated to do so. 
  
 13.06 Form Satisfactory, etc. All of the policies of insurance referred to in this Section 13 

  

 41 

 
shall be written in a form reasonably satisfactory to the party to whom the benefit of the insurance runs in accordance with the terms of this Agreement.
Lessee shall deliver such policies or certificates thereof to Manager prior to their effective date (and, with respect to any renewal policy, thirty (30) days prior to the expiration of the existing policy), and in the event of the failure of Lessee
to effect such insurance as herein called for, or to deliver such policies or certificates thereof to Manager at the times required, Manager shall be entitled, but shall have no obligation, to effect such insurance, the premiums for which will be
paid in accordance with Section 13.03. Each insurer mentioned in this Section 13 shall agree, by endorsement of the policy or policies issued by it, or by independent instrument, that it will give to Lessee and Manager thirty (30) days written
notice before the policy or policies in question shall be materially altered, allowed to expire or cancelled. 
  
 13.07 Increase in Limits. If either Lessee or Manager at any time deems the limits of the personal injury or property damage under the
comprehensive public liability insurance then carried to be either excessive or insufficient, Lessee and Manager shall endeavor in good faith to agree on the proper and reasonable limits for such insurance to be carried and such insurance shall
thereafter be carried with the limits thus agreed on until further change pursuant to the provisions of this Section 13. 
  
 13.08 Blanket Policy. Notwithstanding anything to the contrary contained in this Section 13, Lessee, or Manager, as the case may be, may bring the
insurance provided for herein within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Lessee, or Manager, as the case may be; provided, however, that the coverage afforded to Lessee and Manager will not
be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Agreement by reason of the use of such blanket policy of insurance, and provided further that the
requirements of this Section 13 are otherwise satisfied. 
  
 13.09 Separate Insurance. Lessee shall not on Lessee’s own initiative or pursuant to the request or requirement of any third party, take out separate insurance concurrent in form or contributing in the event of loss with that
required in this Section 13 to be furnished, or increase the amount of any then existing insurance by securing an additional policy or additional policies, unless all parties have an insurable interest in the subject matter of the insurance,
including in all cases Manager, are included therein as additional insured, and the loss is payable under such additional separate insurance in the same manner as losses are payable under the Agreement. Lessee shall immediately notify Manager that
Lessee has obtained any such separate insurance or of the increasing of any of the amounts of the then existing insurance. 
  
 13.10 Reports on Insurance Claims. Manager, with the assistance of Lessee, shall promptly investigate and make a complete and timely written report
to the appropriate insurance company as to all accidents, claims for damage relating to the ownership, operation, and maintenance of the Hotel, any damage or destruction to the Hotel and the estimated cost of repair thereof and shall prepare any and
all reports required by any insurance company in connection therewith. All such reports shall be timely filed with the insurance company as required under the terms of the insurance policy involved, and a final copy of such report shall be furnished
to Lessee. Manager shall not adjust, settle, or compromise any insurance loss, or execute proofs of such loss, with respect to the insurance coverages with respect to any casualty or other event without the prior written consent of Lessee.

  
 13.11 Deductibles to be Operating Expenses. Any
deductibles paid toward insurance claims shall be deemed Deductions, other than deductibles paid with respect to the coverages referenced in 

  

 42 

 
Sections 13.02A through 13.02C. 
  
 13.12 Indemnification. 
  
 A. Lessee shall indemnify, defend and hold Manager, its Affiliates and the respective directors, officers, shareholders, employees and agents of
each of them (collectively, “Manager Indemnified Parties”), harmless from and against all claims, causes of action, losses, attorneys’ fees and other costs and expenses (including, but not limited to, liquidated damages, transfer
fees, and termination costs), liabilities and damages (collectively referred to as “Claims”) imposed upon or incurred by or asserted against Manager Indemnified Parties under, or on account of, or with respect to this Agreement arising out
of or resulting from: (i) Manager’s due performance of this Agreement and the agreements and instruments entered into in connection with this Agreement (this Agreement and such other agreements and instruments are collectively referred to
herein as the “Agreements”) or (ii) the failure by Lessee to perform its obligations under any of the Agreements. Without limiting the generality of the foregoing, Lessee shall indemnify, defend and hold Manager Indemnified Parties
harmless from and against all Claims imposed upon or incurred by or asserted against Manager Indemnified Parties under or with respect to the Franchise Agreement which arise as a result of any default by Lessee or Owner under the terms of the
Franchise Agreement, except to the extent such default is the result of the gross negligence or willful misconduct of, or breach of any of the Agreements by, Manager. 
  
 B. Manager shall indemnify, defend and hold Lessee, Owner, its Affiliates and the respective directors, officers,
shareholders, employees and agents of each of them (collectively, “Lessee Indemnified Parties”), harmless from and against all Claims imposed upon or incurred by or asserted against Lessee Indemnified Parties under, or on account of, or
with respect to any of the Agreements arising out of or resulting from: (i) Lessee’s and/or Owner’s due performance of the Agreements, (ii) the failure by Manager to perform its obligations under any of the Agreements, or (iii) the
infringement of the rights of third parties arising from the use of the Intellectual Property or other intellectual property used by Manager (except, in the case of this clause (iii), if such infringement arises under the Franchise Agreement by
virtue of Lessee’s failure to make payments under the Franchise Agreement). Without limiting the generality of the foregoing, Manager shall indemnify, defend and hold Lessee Indemnified Parties harmless from and against all Claims imposed upon
or incurred by or asserted against Lessee Indemnified Parties under or with respect to the Franchise Agreement which arise as a result of any default by Manager under the terms of any of the Agreements or the Franchise Agreement, except to the
extent such default is the result of the gross negligence or willful misconduct of, or breach of any of the Agreements by, Lessee or Owner. 
  
 C. The provisions of this Section 13.12 shall survive Termination of this Agreement. 
  
 Section 14. Damage and Condemnation 
  
 14.01 Damage and Repair. 
  
 A. If the Hotel is damaged by fire, casualty, or other cause during the Term, and such damage does not materially and adversely affect the
operation of the Hotel, Lessee shall, with all reasonable diligence, to the extent that proceeds from the insurance described in Section 13 are available (subject to the provisions of any Mortgage encumbering the Hotel) for such purpose, repair or
replace 

  

 43 

 
the damaged or destroyed portion of the Hotel to substantially the same condition as existed previously, subject to the remainder of this Section 14.01. In
such event and during the period of such repair, it is understood and agreed that the Hotel shall not be deemed to be a Pooled Hotel for purposes of Section III.A of the Pooling and Cumulation Agreement. 
  
 B. In the event damage or destruction to the Hotel from any cause
materially and adversely affects the operation of the Hotel and Lessee fails or elects not to commence and complete the repairing, rebuilding or replacement of the same so that the Hotel shall be substantially the same as it was prior to such damage
or destruction, Lessee may, at its option, elect to terminate this Agreement (without any Early Termination Fee) upon sixty (60) days’ prior written notice. In such event and during such period, it is understood and agreed that the Hotel shall
not be deemed to be a Pooled Hotel for purposes of Section III.A of the Pooling and Cumulation Agreement. Additionally, if the Franchise Agreement is terminated due to Lessee’s failure to repair and/or restore the Hotel, this Agreement shall
terminate, effective upon the termination of the Franchise Agreement. In the event damage or destruction to the Hotel from any cause materially and adversely affects the operation of the Hotel and Lessee elects to commence and complete the
repairing, rebuilding or replacement of the same so that the Hotel shall be substantially the same as it was prior to such damage or destruction, during the pendency of any period of repair it is understood and agreed that the Hotel shall not be
deemed to be a Pooled Hotel for purposes of Section III.A of the Pooling and Cumulation Agreement. 
  
 C. For purposes of this Section 14, the Hotel shall be considered materially and adversely affected by a casualty event if forty percent (40%) or
more of the Hotel rooms are out of service and the estimated time for repair of such damage does or could equal or exceed one hundred eighty (180) days. 
  
 14.02 Condemnation. 
  
 A. If all or substantially all of the Hotel is taken in any eminent domain, condemnation, compulsory acquisition, or similar proceeding by any
competent authority for any public or quasi-public use or purpose, Lessee or Manager may elect to terminate this Agreement, subject to Section 14.02B (without any Early Termination Fee). All awards for such taking or condemnation shall be paid to
Lessee or Owner. 
  
 B. In the event a portion of the Hotel
shall be taken by the events described in Section 14.02A or the entire Hotel is affected on a temporary basis, but the result in either case is not to make it unreasonable, in Lessee’s discretion, for Manager to continue to operate the Hotel,
this Management Agreement may remain in full force and effect. All awards for any such partial or temporary taking or condemnation shall be paid over to Lessee and/or Owner. 
  
 C. Manager shall be entitled to make a claim to the condemning authority for the value of its loss of business
arising from the events described in this Section 14.02A or 14.02B, which shall in no way serve to diminish or reduce the claim allocable to Lessee or Owner. 
  
 Section 15. Default 
  
 15.01 Defaults and Events of Default. 
  

 44 

 Each of the following shall constitute a “Default”: 
  
 A. The appointment of a receiver, trustee, or custodian for all or
any substantial part of the property of Manager, Lessee or Owner, as the case may be, if such appointment is not set aside or vacated within sixty (60) days. Upon the occurrence of any Default by either party as described under this Section 15.01A,
said Default shall be deemed an “Event of Default” under this Agreement. 
  
 B. The commencement by Manager, Lessee or Owner, as the case may be, of any voluntary case or proceeding under present or future federal bankruptcy laws or under any other bankruptcy, insolvency, or other laws
respecting debtor’s rights. Upon the occurrence of any Default by either party as described under this Section 15.01B, said Default shall be deemed an “Event of Default” under this Agreement. 
  
 C. The making of a general assignment by Manager, Lessee or Owner, as
the case may be, for the benefit of its creditors. Upon the occurrence of any Default by either party as described under this Section 15.01C, said Default shall be deemed an “Event of Default” under this Agreement. 
  
 D. The entry against Manager, Lessee or Owner, as the case may be, or
any “order for relief” or other judgment or decree by any court of competent jurisdiction in any involuntary proceeding against Manager, Lessee or Owner, as the case may be, under any present or future federal bankruptcy laws or under any
other bankruptcy, insolvency, or other laws respecting debtor’s rights, if such order, judgment, or decree continues unstayed and in effect for a period of sixty (60) consecutive days. Upon the occurrence of any Default by either party as
described under this Section 15.01D, said Default shall be deemed an “Event of Default” under this Agreement. 
  
 E. The failure of Manager or Lessee, as the case may be, to make any payment required to be made in accordance with the terms hereof. Upon the
occurrence of any Default by either party as described under this Section 15.01E, said Default shall be deemed an “Event of Default” under this Agreement if the defaulting party fails to make the required payment within ten (10) days after
written notice by the non-defaulting party to the defaulting party that the payment has not yet been received. 
  
 F. A withdrawal or revocation, by any lawful governing body having jurisdiction thereof, of any material licenses, permits, decrees, acts, orders
or any other approvals, the absence of which would prevent Manager’s performance hereunder, provided that such withdrawal or revocation is due to the acts, omissions or negligence of either party. Upon the occurrence of any Default by either
party as described under this Section 15.01F, said Default shall be deemed an “Event of Default” under this Agreement and shall be attributed hereunder to such defaulting party if it fails to cure such Default within thirty (30) days after
receipt of written notice from the non-defaulting party demanding such cure, or, if the Default is such that it cannot reasonably be cured within said thirty (30) day period of time, if the defaulting party fails to commence the cure of such Default
within said thirty (30) day period of time or thereafter fails to diligently pursue such efforts to completion. 
  
 G. The failure of Lessee or Manager to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions set forth in
this Agreement, including, without limitation, Manager exceeding the authority granted to it hereunder. Upon the occurrence of any Default by either party as described under this Section 15.01G, said Default shall be deemed an “Event of 

  

 45 

 
Default”; provided, however, if such Default is capable of being cured, then the defaulting party shall have thirty (30) days after receipt of written
notice from the non-defaulting party demanding such cure to cure the Default, provided further that if the Default is such that it cannot reasonably be cured by the defaulting party using its best efforts within said thirty (30) day period of time
then the defaulting party shall have an additional thirty (30) days to cure such Default. 
  
 H. Manager fails to comply with Section 2.04 hereof or otherwise ceases to be an “eligible independent contractor,” as defined in Section 856(d) of the Code, with respect to the Hotel. Upon the
occurrence of any Default by Manager as described under this Section 15.01H, said Default shall be deemed an “Event of Default” under this Agreement if Manager fails to cure the Default within sixty (60) days after the occurrence thereof
(provided that such period is permitted by law) subject to the limitations of Section 15.02D. 
  
 I. Manager shall have committed an Event of Default under any of the Pooled Agreements. Upon the occurrence of any Default by Manager as described under this Section 15.01I, such Default shall be deemed an
“Event of Default” by Manager under this Agreement. 
  
 J. Termination of the Franchise Agreement by the Franchisor as a result of Lessee’s failure to provide capital to improve the Hotel as required by such Franchise Agreement. Upon the occurrence of any Default as described under
this Section 15.01J, such Default shall be deemed an “Event of Default” by Lessee under this Agreement. 
  
 K. Termination of the Franchise Agreement by the Franchisor as a result of any reason other than the reason specified in Section 15.01J. Upon the
occurrence of any Default as described under this Section 15.01K, such Default shall be deemed an “Event of Default” by Manager under this Agreement. 
  

L. Termination of this Agreement under Section 5.05C where such termination does not result from actions or omission of Manager and
Manager is not otherwise in default hereunder. Upon the occurrence of any Default as described under this Section 15.01L, such Default shall be deemed an “Event of Default” by Lessee under this Agreement. 
  
 15.02 Remedies upon Event of Default. 
  
 A. Upon the occurrence of an Event of Default, the non-defaulting
party shall have the right to pursue any one or more of the following courses of action: (i) to terminate this Agreement by written notice to the defaulting party, which termination shall be effective as of the effective date which is set forth in
said notice; (ii) to institute any and all proceedings permitted by law or equity, including without limitation actions for specific performance and/or damages; and/or (iii) to avail itself of any and all other remedies which may be available to the
non-defaulting party. Upon the occurrence of an Event of Default by either party with respect to the payment of money, the amount owed to the non-defaulting party shall accrue interest at the Overdue Rate, from and after the date on which such
payment was originally due to the non-defaulting party. The rights granted hereunder shall not be in substitution for, but shall be in addition to, any and all rights and remedies available to the non-defaulting party by reason of applicable
provisions of law or equity. 
  
 B. Notwithstanding the
foregoing, in the event that Manager terminates, or has the right to terminate, this Agreement by reason of an Event of Default on behalf of Lessee, Lessee shall pay to 

  

 46 

 
Manager as liquidated damages an amount equal to (i) the fair market value of this Agreement taking into account all relevant facts and circumstances,
including, without limitation, all fees, costs and expenses of the parties, plus (ii) to the extent Manager is not compensated therefor by amounts to be paid pursuant to clause (i) above, the direct costs of employee termination and severance
resulting directly from the termination of this Agreement, all of which must be reasonable, customary and pursuant to and in accordance with employment plans, policies and agreements of Manager with Hotel-level employees in effect consistent with
the terms and conditions of this Agreement of which Lessee has knowledge and which have historically been in effect. If the parties are unable to agree upon such fair market value and such direct costs referred to in clauses (i) and (ii) above
within thirty (30) days after such right of termination by Manager arises, the determination of such fair market value plus such direct costs shall be made by an Appraiser. If Lessee and Manager are unable to agree as to the selection of the
Appraiser, each shall select an appraiser at his or its own expense, and each appraiser so selected shall select a third appraiser which shall perform the appraisal herein described. The Appraiser shall employ such methods of valuation as are
customarily applicable to valuation of hotel management agreements, taking into account all appropriate factors as aforesaid. The Appraiser shall issue a written opinion confirming its appraisal of such fair market value and such direct costs as
soon as practicable (but in no event later than sixty (60) days) after the date of termination of this Agreement by Manager and receipt of all the appropriate information from the parties as provided below. The parties shall provide such information
as is reasonably requested by the Appraiser. The determination of such fair market value and such direct costs by the Appraiser so selected shall be final and binding upon Lessee and Manager, and their respective successors and assigns. Lessee and
Manager shall each pay one-half (1/2) of the fees and expenses of the Appraiser. Such liquidated damages shall be Manager’s sole and exclusive remedy at law or in equity arising from or related to such Event of Default. The parties agree that
the foregoing liquidated damages are fair and reasonable compensation to Manager for the business which it will lose as a result of the premature termination and that the same are not and shall not be construed as a penalty. If Lessee disputes
Manager’s right to terminate this Agreement, the provisions of this Section 15.02B shall be tolled pending resolution of any dispute. Upon the payment of such liquidated damages as contemplated by the foregoing, this Agreement shall terminate
(if not previously terminated by Manager in connection therewith). Manager shall be entitled to payment liquidated damages only once under this Agreement. 
  
 C. Notwithstanding the foregoing, Manager shall not be entitled to treat an event under Section 15.01J as a Default or an Event of Default
hereunder for a period of one (1) year following the termination of the Franchise Agreement referred to therein, and in the event that within such one (1) year period Lessee replaces the terminated Franchise Agreement and elects to apply this
Agreement to the Hotel under such new franchise agreement, which shall be a reasonably equivalent brand which could reasonably be expected to provide substantially similar economics to the terminated Franchise Agreement, then such Default and Event
of Default shall be deemed cured, but in such event Lessee shall compensate Manager, subject to the Pooling and Cumulation Agreement, for the amount of lost Management Fees actually sustained by Manager during such gap period as a result of the
termination of the Franchise Agreement; provided, however, that Manager shall be conclusively deemed not to have sustained any losses or damages if Gross Revenues and Available Cash Flow for the Hotel during such period are substantially equivalent
to those set forth in the Annual Operating Projection for the Fiscal Year in which such termination occurs (any updatings or revisions to the Annual Operating Projection pursuant to Section 12.05 shall be disregarded). It is understood and agreed
that during such one (1) year period as described above, the Hotel shall not be deemed to be a Pooled Hotel for purposes of Section III.A of the Pooling and Cumulation Agreement. 
  
 D. Notwithstanding the foregoing, in the event of an Event of Default pursuant to Section 15.01H, if such Event of
Default results from a change of law after the Effective Date which 

  

 47 

 
precludes Manager from continuing to manage the Hotel or any of the other Pooled Hotels, or as a result of which Lessee or any of its direct or indirect
affiliates, including, without limitation, Innkeepers, would suffer adverse federal income tax consequences from Manager’s continued management of the Hotel or any of the other Pooled Hotels, then, Lessee shall have the right, as its sole and
exclusive remedy, to terminate this Agreement and Manager shall have no liability or obligation to Lessee in damages as a result of such termination of this Agreement; provided that in the event that Lessee so terminates this Agreement in accordance
with the foregoing, Lessee shall pay to Manager a one-time termination payment equal to the Fair Market Value of this Agreement as determined in accordance with Section 4.01D less the fair market value (determined consistent with the fair market
value determination methodology and process set forth in Section 15.02B above) of the agreement (or agreements) entered into to replace this Agreement following such termination through the end of the Contract Term (the “Special Termination
Fee”). In the event that such replacement agreement is an interim replacement agreement that does not extend through the end of the Contract Term used to determine the Fair Market Value of this Agreement (or is terminable by Lessee without
penalty or premium), then Lessee shall provide a good faith estimate of the fair market value of a replacement agreement to the new manager for the remainder of the Contract Term not so covered and such good faith estimate shall be utilized,
together with the fair market value of the interim replacement agreement, to determine the aggregate fair market value of the replacement agreements through the end of the Contract Term. It is understood and agreed that if a replacement agreement is
terminable by Lessee at any time (subject to notice) without penalty or premium, then it shall be deemed a one (1) year interim replacement agreement for purposes of this Section 15.02D. 
  
 Section 16. Assignment 
  
 16.01 Assignment by Manager. Manager shall not assign this Agreement without the prior written consent of Lessee, which consent may be provided or
withheld in its sole discretion. Manager shall not engage in a Change of Control Event of Manager without the prior written consent of Lessee, which consent thereto (and any related assignment in connection therewith) will not be unreasonably
withheld, and, if applicable, the prior written consent of Mortgagee and/or the Franchisor; provided however, that it is expressly understood and agreed that, without limiting any other determinations of Lessee’s reasonableness in connection
with any such consent, Lessee shall not be acting unreasonably if it withholds consent to a Change of Control Event of Manager involving a party that is not experienced and qualified and proficient in the management of first class5 limited service hotels on a basis reasonably commensurate with Manager or that is not an “eligible independent
contractor” as defined in Section 856(d) of the Code or that does not otherwise meet the requirements under Section 2.04B hereof. In the event that Manager engages in a Change of Control Event of Manager without obtaining the prior written
consent of Lessee as contemplated above, then Lessee shall have the right, in addition to any other rights and remedies of Lessee hereunder, to terminate this Agreement without any obligation, liability or penalty. The disposition by Manager,
directly or indirectly, of its controlling interest in any Affiliate to which it has previously assigned this Agreement, or any other Change of Control Event of Manager, shall be deemed to be a prohibited assignment hereunder requiring the prior
written consent of Lessee and, if applicable, the Mortgagee and/or the Franchisor. No assignment of this Agreement shall 

	5	 	For Residence Inns, it will refer to upscale, extended stay, for Hampton Inns, it will refer to mid-scale, limited service without F&B, for TownPlace Suites, it
will refer to mid-priced, extended stay and for Courtyard by Marriott it will refer to mid-scale with F&B. 

  

 48 

 operate to release Manager from any of its obligations under this Agreement unless otherwise agreed to in writing by
Lessee in its sole discretion. No assignment by Manager of its interest in this Agreement, whether such occurs voluntarily or by operation of law, shall relieve Manager from any of its obligations under this Agreement which accrued prior to the date
of such assignment and is expressly permitted. 
  
 16.02
Assignment by Lessee. Lessee may assign this Agreement without the prior written consent of Manager provided that: (a) the assignee meets the following criteria: (i) it has sufficient financial resources and liquidity to meet the ongoing
financial obligations of the Hotel and to maintain the Hotel in accordance with the Franchise Agreement pursuant to Section 2.01; (ii) it is not a convicted felon or a person generally known to be a member of organized crime; and (iii) it has
assumed and agreed in writing (to be delivered to Manager not more than twenty (20) days following the effective date of such assignment) to be bound by all of the terms of this Agreement; (b) the assignment results from any merger, consolidation or
reorganization involving Lessee or Owner (but subject to any consent, if any, required by any applicable Mortgagee), provided that the surviving entity meets the following criteria: (i) it has sufficient financial resources and liquidity to meet the
ongoing financial obligations of the Hotel and to maintain the Hotel in accordance with the Franchise Agreement pursuant to Section 2.01; and (ii) it is not a convicted felon or a person generally known to be a member of organized crime; or (c) the
assignee is any Mortgagee or its affiliated designee or other party who acquires title to the Hotel through sale by power of sale, foreclosure, or deed-in-lieu thereof. No assignment by Lessee of its interest in this Agreement, whether such occurs
voluntarily or by operation of law, shall relieve Lessee from any of its obligations under this Agreement which accrued prior to the date of such assignment, but Lessee shall be expressly released for liabilities and obligations accruing on or after
the date of such assignment. It is expressly understood and agreed that a Change of Control Event of Innkeepers shall not be deemed an assignment hereunder. Nothing in this Section 16.02 shall limit the rights of Lessee under Section 4 of this
Agreement (except as provided in Section 4.01B(1)). 
  
 16.03
Effect of Permitted Assignments. A consent to any particular assignment shall not be deemed to be a consent to any other assignment or a waiver of the requirement that consent be obtained in the case of any other assignment. No such assignment
shall relieve the assigning party from its liabilities or obligations under this Agreement accruing prior to the effective date of the assignment. 
  
 16.04 Further Assignments. If either party consents to an assignment of this Agreement by the other, no further assignment shall be made without
the express consent in writing of such party, unless such assignment may otherwise be made without such consent pursuant to the terms of this Agreement. 
  
 Section 17. Intellectual Property, Software and Equipment 
  

17.01 Intellectual Property. All Intellectual Property paid for and owned by Manager is and shall remain the exclusive property of Manager
and/or its Affiliates, and shall be utilized by Manager in connection with the operation of the Hotel and the performance of Manager’s services under this Agreement. Lessee shall have no right to use any Intellectual Property without
Manager’s prior written approval, which may be granted or withheld in Manager’s sole and absolute discretion. Upon Termination, all Intellectual Property shall be removed from the Hotel by Manager without compensation therefor to Lessee,
and Lessee shall cease immediately any use of the Intellectual Property and return to Manager any and all copies or other reproductions thereof, whether such are in physical or electronic format. 
  

 49 

 17.02 Software and Equipment. All Software is and shall remain the exclusive property of Manager
and/or its Affiliates (or of the licensor of such Software, as the case may be), and Lessee shall have no right to use, copy, duplicate, reverse engineer or otherwise handle or manipulate any Software. Manager owns, or has other lawful rights, under
licenses and other contracts with third party vendors, to use, all Software, for all purposes required in order for Manager to perform its obligations under this Agreement. Upon Termination, Manager shall remove all Software from the Hotel without
compensation therefor to Lessee, together with any computer equipment which is proprietary to Manager and has been paid for and is owned by Manager. Manager shall facilitate the prompt and orderly transfer to Lessee (or its designee) of
Lessee’s records and customer, financial, operating and other data regarding the Hotel in Manager’s control in whatever form or medium that such records and data are maintained or stored by Manager or on its behalf and Manager shall cease
using such records and data after such transfer. 
  
 17.03
Lessee’s Intellectual Property. Information which constitutes Lessee’s Intellectual Property (as defined herein), regardless of the medium in which it is compiled or stored, and regardless of whether any portion of Lessee’s
Intellectual Property is compiled or stored using any portion of Software or other components of Intellectual Property, shall be and remain the exclusive property of Lessee. Notwithstanding the foregoing, Manager may use information comprising
Lessee’s Intellectual Property for purposes reasonably related to the provision of services by Manager under and in accordance with the terms and conditions of this Agreement, provided that Manager shall take such steps to provide reasonable
assurances that Lessee’s Intellectual Property shall remain confidential, is not disclosed to anyone other than the employees at the Hotel and not used for any purpose other than the purpose of providing services under this Agreement.
Lessee’s Intellectual Property shall be defined as meaning (i) any names or logos used by the Hotel or restaurants or lounges located in the Hotel, whether used alone or in any combination of words or phrases (but excluding Manager’s name
to the extent part thereof), (ii) any and all information regarding guests and other users of guest rooms or other amenities and facilities at the Hotel, including, without limitation, guest profiles or history of use by a guest at the Hotel and
(iii) all information concerning the Hotel and its operations, financial or otherwise. Upon a termination of this Agreement, Manager shall make available to Lessee all of Lessee’s Intellectual Property stored in the Intellectual Property of
Manager 
  
 Section 18. Hazardous Materials

  
 18.01 Responsibilities of Manager. Manager
covenants and agrees that: (i) the Hotel shall not be used to generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce, or process Hazardous Materials, excepting quantities of chemicals and other products
customarily used in the operation of similar Hotels; (ii) Manager shall not cause or permit the release of Hazardous Materials from the Hotel; (iii) Manager shall comply with all applicable Environmental Laws relating to or affecting the Hotel; and
(iv) if and when Manager receives written notice of or becomes aware (by current actual knowledge) of the presence of Hazardous Materials or mold on the premises or coming onto the Hotel from off site, Manager shall notify Lessee of such condition
and, after consultation with Lessee, shall take such action, in compliance with applicable Legal Requirements, at no expense to Manager (except that Manager shall be solely responsible for such costs if and to the extent that the presence of such
Hazardous Materials or mold was caused by the actions or omissions of Manager, its Affiliates, agents or representatives), as Lessee and Manager mutually deem appropriate in order to comply with law, and to preserve and protect the Hotel and the
health and safety of guests, employees and invitees. Without limiting any other remedy that Lessee may have, Manager shall indemnify, defend 

  

 50 

 
and hold Lessee and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless from and against all losses,
costs, liabilities and damages (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation, which shall not be a Deduction and shall be paid for by Manager out of Manager’s own funds)
arising from the breach of this Section 18.01. 
  
 18.02
Responsibilities of Lessee. In the event of the discovery of Hazardous Materials or mold on the Hotel premises or in the Hotel during the term of this Agreement, Lessee shall (except to the extent such removal is Manager’s responsibility
pursuant to Section 18.01) promptly remove, if required by applicable environmental law, such Hazardous Materials or mold, together with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with all
environmental laws. Lessee shall (except to the extent that Manager has breached Section 18.01) indemnify, defend and hold Manager and its Affiliates (and their respective directors, officers, shareholders, employees and agents) harmless from and
against all losses, costs, liabilities and damages (including, without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the presence of Hazardous Materials or mold on the Hotel premises or
in the Hotel. All costs and expenses of the removal of Hazardous Materials or mold pursuant to this Section 18.02, and of compliance with all Environmental Laws, shall be paid by Lessee from its own funds, and the same shall not be treated as a
Deduction. 
  
 Section 19. Miscellaneous 
  
 19.01 Right to Make Agreement. Each party warrants, with respect to
itself, that neither the execution of this Agreement nor the finalization of the transactions contemplated hereby shall violate any provisions of law or judgment, writ, injunction, order or decree of any court or governmental authority having
jurisdiction over it; result in or constitute a breach or default under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; or require any consent, vote or approval which has not been taken, or at
the time of the transaction involved shall not have been given or taken. 
  
 19.02 Relationship of Parties. Neither this Agreement nor any other agreements, instruments, documents, or transactions contemplated hereby shall in any way be or be interpreted, deemed or construed as making
Manager a partner of or joint venturer with, Lessee. Lessee and Manager agree that neither party will make any contrary assertion in any legal proceedings involving Lessee and Manager. 
  
 19.03 Failure to Perform; Reservation of Rights. Subject to the other terms and conditions of this Agreement, if
Manager or Lessee at any time fails to make any payments to third parties as specified or required hereunder or fails to perform any other act for third parties required on its part to be made or performed hereunder, then the other party after
thirty (30) days’ written notice to the non-performing party may (but shall not be obligated to) pay any such delinquent amount or perform any such other act on the non-performing party’s part; provided, however, that any such payment or
performance by the other party on the non-performing party’s part shall not cure such non-performing party’s breach under this Agreement. Any sums thus paid and all costs and expenses incurred in connection with the making of such payment
or the proper performance of any such act, together with interest thereon at the lesser of (i) the interest rate allowed by the applicable usury laws or (ii) at the Overdue Rate, from the date that such payment is made or such costs and expenses
incurred, shall constitute a liquidated amount to be paid by the defaulting party under this Agreement to the other party 

  

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on demand. 
  
 19.04 Breach of Covenant. Lessee and Manager shall be entitled, in case of any breach of this Agreement by the other party to injunctive relief and
to any other right or remedy available at law. 
  
 19.05
Headings. Headings of Sections are inserted only for convenience and are in no way to be construed as a limitation on the scope of the particular Sections to which they refer. 
  
 19.06 Notices. Notices, statements and other communications to be given in accordance with terms of this Agreement
shall be in writing and delivered by hand against receipt or sent by facsimile (with an electronic confirmation of transmission thereof), certified mail, return receipt requested, or by a nationally recognized overnight service to the following
addresses: 
  

	 Owner

	  	 Lessee

	  	 Manager

	 Original to:
	  	Original to:	  	 Original to:
  
 Innkeepers Hospitality Management, Inc.
 302 Royal Poinciana Plaza

Palm Beach, Florida 33480
 Attention: President
 Facsimile:
                        

			
	 With a copy to:
	  	With a copy to:	  	 With a copy to:
  
 Innkeepers Hospitality, Inc.
 Hotel Address
 Hotel City, State and Zip
 Attention: General Manager
 Facsimile:
                        

  
 or to such other addresses as from
time to time designated by the party receiving the notice, provided that such designation shall be in accordance with this Section 19.06. Any such notice which is properly sent in accordance with the foregoing shall be deemed to have been served
when delivered as provided above. 
  
 19.07 Certain
Restrictions. The parties acknowledge and agree that Manager is subject to that certain Covenant Not to Compete dated                 , 2003 which is being
entered into simultaneously herewith or has been previously entered into. 
  
 19.08 Estoppel Certificates. Manager and Lessee shall, and Lessee shall cause Owner to, at any time and from time to time within fifteen (15) days of the request of the requesting party, execute, acknowledge,
and deliver to the requesting party a certificate certifying: (a) that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating such
modifications); (b) the dates through which the required distributions to Lessee have been paid and all Management Fees have been paid; (c) whether there are any existing Defaults by the other party to the knowledge of the party making such
certification, and specifying the nature of such Defaults, if any; and (d) such other matters as may be reasonably requested. Any such certificates may be relied upon by any party to whom the certificate is directed. 
  

 52 

 19.09 Waiver. The failure of either party to insist upon strict performance of any of the terms or
provisions of this Agreement, or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and
remain in full force and effect. No waiver by either party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed by such party, and no waiver shall be implied by any payment, funding of a payment or
authorization of payment by Lessee pursuant to Section 12.03D or knowledge with respect to any of the foregoing. No waiver of a provision in one instance is a waiver of that provision in any other instance or a waiver of any other provision.

  
 19.10 Savings. In the event that any portion of this
Agreement shall be declared invalid by order, decree or judgment of a court, this Agreement shall be construed as if such portion had not been inserted herein except when such construction would operate as an undue hardship to Manager or Lessee or
constitute a substantial deviation from the general intent and purpose of said parties as reflected in this Agreement. 
  
 19.11 Negotiation of Agreement. Lessee and Manager are both business entities having substantial experience with the subject matter of this
Agreement, and each has fully participated in the negotiation and drafting of this Agreement. Accordingly, this Agreement shall be construed without regard to the rule that ambiguities in a document are to be construed against the draftsman. No
inferences shall be drawn from the fact that the final, duly executed Agreement differs in any respect from any previous draft hereof. 
  
 19.12 Choice of Law. This Agreement shall be interpreted under and enforced in accordance with the laws of the State of Florida, irrespective of
the rules governing choice of laws. 
  
 19.13 Dispute
Resolution. Except as may be otherwise contemplated by this Agreement, any controversy, dispute or claim arising out of or relating to this Agreement or the performance, enforcement, breach, termination or validity thereof, shall first be
submitted to non-binding mediation and shall thereafter be determined by final binding arbitration (whether or not the relevant provisions of this Agreement make reference to a dispute resolution mechanism), and not litigation, the agreed venue for
mediation and arbitration being in Palm Beach County, Florida, in accordance with the terms of this Section 19.13 and as set forth in Schedule 19.13 attached hereto and incorporated herein by this reference. Disputes with respect to financial
matters shall be resolved in accordance with Paragraph 2 of Schedule 19.13 and disputes with respect to all other matters shall be resolved in accordance with Paragraph 3 of Schedule 19.13. This Section 19.13 shall not limit claims for
fraud. 
  
 19.14 Entire Agreement. This Agreement, together
with the exhibits and schedules hereto, and other writings signed by the parties expressly stated to be supplementary hereto and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement
between the parties and supersedes all prior understandings and writings, and may be changed only by a writing signed by the parties hereto. This Agreement may be executed in counterparts, each of which shall be deemed an original and all such
counterparts together shall constitute one and the same instrument. 
  
 19.15 Exculpation. Except as otherwise provided in the Guaranty, notwithstanding any other provision of this Agreement to the contrary, the liability of Lessee arising out of or in connection with 

  

 53 

 
this Agreement, the obligations contemplated hereby, and the ownership of the Hotel shall at all times be limited to the interest of Lessee in the Hotel, and
in any litigation or other dispute, neither Manager nor any other party shall seek or have recourse to any other asset of Lessee or to Lessee’s partners, members, associates, shareholders, agents, executives or Affiliates, and no such person
affiliated with Lessee shall be personally liable with respect to any obligation of Lessee. Except as otherwise provided in the Guaranty, without limiting the foregoing, neither Lessee nor any party associated with Lessee shall have any liability in
excess of Lessee’s interest in the Hotel for any act by Lessee, including liability for the gross negligence, willful misconduct, fraud or breach of this Agreement by Lessee for any reason whatsoever. 
  
 19.16 References to Owner. Except as otherwise provided in the
Guaranty, no reference to Owner in this Agreement shall make Owner a party hereto or create any liability or obligation of Owner under this Agreement to Manager, and Manager shall look solely to Lessee for the performance of Lessee’s
obligations hereunder. 
  
 19.17 Approval Right of Lessee.

  
 A. Notwithstanding anything to the contrary contained
in this Agreement, in the event of the death or permanent disability of Jeffrey H. Fisher during the Term of this Agreement (but prior to the occurrence of a permitted Change of Control Event of Manager), then at all times thereafter Manager shall
have a person serving as the Chief Executive Officer (as defined below) of Manager, who shall be subject to the approval of Lessee in writing, which approval shall only be given at the direction of the board of trustees of Innkeepers, and which
approval and direction shall not be unreasonably withheld (it being understood and agreed that Lessee shall not have the right to revoke its approval with respect to a particular Chief Executive Officer after such approval has been given).

  
 B. Subject to Section 19.17C(ii), Lessee shall be
deemed to have approved (and received the board of trustees of Innkeepers’ direction with respect thereto) any person as Chief Executive Officer who for at least the last (i) fifteen (15) years (as of the time of such person’s hiring) has
been employed in the hotel management business and (ii) five (5) years (as of the time of such person’s hiring) has served in one or more senior corporate management positions for one or more hotel management companies with at least twenty-five
(25) first-class limited and/or full service hotels. 
  
 C.
For clarification purposes, it is understood and agreed that Lessee shall not be deemed to have acted unreasonably in not approving a Chief Executive Officer-nominee (and the board of trustees of Innkeepers shall not be deemed to have acted
unreasonably in not giving direction) if (i) the proposed person does not have the experience described in Section 19.17B and, in the reasonable opinion of Lessee, is not otherwise experienced and qualified in the management of first-class limited
service or full-service hotels on a basis reasonably commensurate with Manager or (ii) notwithstanding such person having the experience described in Section 19.17B, such person would cause Manager not to be an “eligible independent
contractor” as defined in Section 856(d) of the Code with respect to the Hotel. 
  
 D. Notwithstanding 19.17A, if Manager is acting in good faith and continuing to use its reasonable best efforts to identify and hire a replacement Chief Executive Officer to be approved by Lessee as
contemplated hereby (which approval shall not be unreasonably withheld), then until the first (1st) anniversary of
the death or disability of Mr. Fisher or the death, disability or departure of any Chief Executive Officer that was so approved by Lessee, Manager shall not be in default under this Agreement for failing to employ 

  

 54 

 
a Chief Executive Officer that has been so approved by Lessee. 
  
 E. For purposes of this Agreement, the “Chief Executive Officer” of Manager shall be the principal executive officer of Manager at any
time, who shall in general supervise and control all of the business and affairs of Manager, subject to the general direction of the board of directors of Manager pursuant to applicable law. 
  
 F. This Section 19.17 shall have no force or effect from and after the
date that Lessee ceases to be an Affiliate of Innkeepers USA Trust. 
  
 [signature page follows] 
  

 55 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by duly authorized
individuals. 
  

		
	 Lessee:
	 	  

  

	 By:
	 	  

	 Attest:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 Manager: INNKEEPERS
HOSPITALITY MANAGEMENT, INC. 
  

	 By:
	 	  

	 Attest:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 56

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