Document:

Exhibit 10.4

 

INNOVATIVE INDUSTRIAL PROPERTIES, INC.

 

2016 OMNIBUS INCENTIVE PLAN

 

PERFORMANCE SHARE UNIT AWARD GRANT NOTICE
AND

PERFORMANCE SHARE UNIT AWARD AGREEMENT

 

Innovative Industrial Properties, Inc.,
a Maryland corporation (the “Company”), pursuant to its 2016 Omnibus Incentive Plan (the “Plan”),
hereby grants to the individual listed below (“Participant”) an award of performance share units (the
 “Units”) with respect to the number of shares of common stock of the Company (the “Shares”)
set forth below. This award (this “Award”) is subject to all of the terms and conditions as set forth
herein, in the Performance Share Unit Award Agreement attached hereto as Exhibit A (the “Performance Share
Unit Agreement”) and in the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the
terms defined in this Grant Notice and the Performance Share Unit Agreement shall have the same defined meanings specified in the
Plan.

 

	Participant:	____________________________
	Grant Date:	________ ___, 20__
	Target Units:	_______ Units
	Maximum Units:	_______ Units
	Vesting Schedule:	Subject to the terms of the Performance Share Unit Agreement, the Units shall vest on the date and in the percentages set forth on Exhibit B attached hereto.

 

By his or her signature, Participant agrees
to be bound by the terms and conditions of the Plan, the Performance Share Unit Agreement and this Grant Notice. Participant has
reviewed the Performance Share Unit Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Performance
Share Unit Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations
of the Administrator of the Plan upon any questions arising under the Plan, this Grant Notice or the Performance Share Unit Agreement.

 

	INNOVATIVE INDUSTRIAL PROPERTIES, INC.	 	PARTICIPANT
	 	 	 

	By:	 	 	By:	 

	Print Name:	 	Print Name:
	Title:	 	 	 
	 	 	 	 
	Address:	 	Address:

 

     

     

    

 

CONSENT OF SPOUSE

 

I, _________, spouse of ___________, have
read and approve this Grant Notice and the attached Performance Share Unit Agreement and Vesting Schedule. In consideration of
granting to my spouse the performance share units relating to shares of the common stock of Innovative Industrial Properties, Inc.
set forth in this Grant Notice, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights
under this Grant Notice and agree to be bound by the provisions of this Grant Notice insofar as I may have any rights in said Grant
Notice, any performance share units or any shares of the common stock of Innovative Industrial Properties, Inc. issued pursuant
thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence
as of the date of the signing of the foregoing Grant Notice.

 

	Dated: _______ __, 20__	 
	 	Signature of Spouse

 

     

     

    

 

EXHIBIT A

 

TO
Performance SHARE UNIT AWARD GRANT NOTICE

 

performance
SHARE UNIT AWARD AGREEMENT

 

Pursuant to the Performance Share Unit Award
Grant Notice (“Grant Notice”) to which this Performance Share Unit Award Agreement (this “Agreement”)
is attached, Innovative Industrial Properties, Inc., a Maryland corporation (the “Company”),
has granted to Participant the number of performance share units (the “Units”) under the Company’s
2016 Omnibus Incentive Plan (the “Plan”) indicated in the Grant Notice. The Units are subject to the
terms and conditions of the Plan which are incorporated herein by reference. Capitalized terms not specifically defined herein
shall have the meanings specified in the Plan and the Grant Notice.

 

ARTICLE I

AWARD OF UNITS

 

1.1            Grant
of Units. Pursuant to the Plan and subject to the terms and conditions of this Agreement, effective on the Grant Date, the
Company irrevocably grants to Participant the number of Units set forth in the Grant Notice in consideration of Participant’s
continued employment with or service to the Company or one of its Subsidiaries. Prior to actual issuance of any Shares, the Units
and this Agreement represent an unsecured obligation of the Company, payable only from the general assets of the Company.

 

1.2            Vesting.
The Award shall vest in accordance with Exhibit B to the Grant Notice.

 

ARTICLE II

SETTLEMENT OF UNITS

 

2.1            Settlement
Mechanics.

 

(a)            Time
of Settlement. Subject to the terms and conditions of the Plan and this Agreement and to any deferral election Participant
has made pursuant to the terms of the Company’s Nonqualified Deferred Compensation Plan (or any successor deferred compensation
plan thereto), the Company shall distribute one Share to Participant (or in the event of Participant’s death, to his or her
estate) in settlement of each vested Unit, if any, as soon as practicable following the later of the Vesting Date (as defined in
Exhibit B to the Grant Notice) and the date the Administrator determines the number of Units that have been earned
in accordance with Exhibit B to the Grant Notice, but in no event later than thirty (30) days following the Vesting
Date.

 

(b)            Taxes.
As a condition of receiving this award of Units, Participant agrees to pay to the Company upon demand such amount as may be requested
by the Company for the purpose of satisfying its liability to withhold federal, state, or local income or other taxes due by reason
of the grant, vesting or settlement of, or by reason of any other event relating to, the Units. However, Participant may elect
to have the Company satisfy such withholding obligations by withholding a number of Shares otherwise issuable hereunder having
a Fair Market Value on the date the tax obligation arises equal to the amount to be withheld; provided, however, that the amount
to be withheld may not exceed the total maximum statutory tax rates associated with the transaction to the extent needed for the
Company to avoid adverse accounting treatment. If Participant does not make the payment or election described in the foregoing,
then the Company or an affiliate may withhold such taxes from other amounts owed to the Participant or may choose to satisfy the
withholding obligations by withholding Shares otherwise issuable hereunder in accordance with the preceding sentence.

 

    A-1 

     

    

 

(c)            Generally.
Shares issued under this Agreement shall be issued to Participant or Participant’s beneficiaries, as the case may be, at
the sole discretion of the Administrator, in either (i) uncertificated form, with the Shares recorded in the name of Participant
in the books and records of the Company’s transfer agent with appropriate notations regarding the restrictions on transfer
imposed pursuant to this Agreement; or (ii) certificated form. Unless otherwise determined by the Administrator or provided
in this Agreement, all distributions in respect of the Units shall be made by the Company in the form of whole Shares. In no event
will fractional shares be issued upon settlement of the Units. In lieu of any fractional Share, the Company shall make a cash payment
to Participant equal to the Fair Market Value of such fractional Share on the date the Units are settled pursuant to this Section 2.1.

 

2.2            Conditions
to Issuance of Shares. The Company shall not be required to issue or deliver any Shares upon settlement of the Units prior
to fulfillment of all of the conditions set forth in this Agreement and the Plan.

 

ARTICLE III

RESTRICTIONS

 

3.1            Transfer
Restriction. No Units or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements
of the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law
by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted
disposition thereof shall be null and void and of no effect. In addition, notwithstanding anything to the contrary herein, the
Participant agrees and acknowledges that (a) with respect to any Shares issued hereunder that have not been registered under
the Securities Act of 1933, as amended (the “Act”), he or she will not sell or otherwise dispose of such
Shares except pursuant to an effective registration statement under the Act and any applicable state securities laws, or in a transaction
which, in the opinion of counsel for the Company, is exempt from such registration, and a legend will be placed on the certificates
for the Shares to such effect, and (b) the Participant agrees not to sell any Shares acquired under this Agreement other than
as set forth in the Plan and at a time when applicable laws, Company policies or an agreement between the Company and its underwriters
do not prohibit a sale.

 

3.2            Rights
as Stockholder; Dividend Equivalents. Participant shall not have any rights of a stockholder with respect to the Shares subject
to the Units (including, without limitation, any voting rights or any right to dividends) until the Shares have been issued hereunder.
If, however, after the Grant Date set forth in the Grant Notice and prior to the settlement date, a record date with respect to
a cash dividend on the Shares occurs, then on the date that such dividend is paid to Company stockholders Participant shall accrue
 “dividend equivalents” in an amount equal to the dividends that would have been paid to Participant if Participant
owned a number of Shares equal to the maximum number of outstanding Units hereunder as of such record date. Such dividend equivalents
shall be deemed reinvested in additional Units on the ex-dividend date based on the Fair Market Value of a Share on such date,
and such additional Units shall be earned and vested only to the extent the underlying Units with respect to which the dividend
equivalents were credited are also earned and vested. Such additional Units shall also be subject to the same terms and conditions
(including vesting and forfeiture provisions set forth in Exhibit B), and be paid at the same time, as the underlying
Units with respect to which the dividend equivalents were credited.

 

    A-2 

     

    

 

3.3            Ownership
Limit and REIT Status. Notwithstanding anything to the contrary herein, Shares shall not be issued or paid hereunder if the
issuance or payment of such Shares would likely result in any of the following:

 

(a)            a
violation of the restrictions or limitations on ownership provided for from time to time under the terms of the organizational
documents of the Company; or

 

(b)            income
to the Company that could impair the Company’s status as a real estate investment trust, within the meaning of Sections 856
through 860 of the Code.

 

ARTICLE IV

TAXATION REPRESENTATIONS

 

Participant represents to the Company the
following:

 

(a)            Participant
has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated
by this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or
any of its agents. Participant understands that Participant (and not the Company) shall be responsible for his or her own tax liability
that may arise as a result of the transactions contemplated by this Agreement.

 

(b)            Notwithstanding
anything to the contrary in this Agreement, the Company shall be entitled to require payment (which payment may be made in cash,
by deduction from other compensation payable to Participant or in any form of consideration permitted by the Plan) of any sums
required by federal, state or local tax law to be withheld with respect to the issuance or other event with respect to the Units
or Shares. The Company shall not be obligated to issue any Shares or deliver any stock certificate representing Shares to Participant
or Participant’s legal representative, or, if the Shares are held in book entry form, to remove the notations on the book
form, unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied in full the
amount of all federal, state and local taxes applicable to the taxable income of Participant resulting from the issuance or other
event with respect to the Units or Shares.

 

ARTICLE V

Miscellaneous

 

5.1            Governing
Law; Limitation on Actions. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of
the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Maryland, without giving
effect to principles of conflicts of law. Any legal action or proceeding with respect to this Agreement and all acts and transactions
pursuant hereto may only be brought and determined in (a) a court sitting in the State of California, and (b) a “bench”
trial, and any party to such action or proceeding shall agree to waive its right to a jury trial. In accordance with Section 17(g) of
the Plan, any legal action or proceeding with respect to this Agreement and all acts and transactions pursuant hereto, must be
brought within one year (365 days) after the day the complaining party first knew or should have known of the events giving rise
to the complaint.

 

5.2            Entire
Agreement; Enforcement of Rights. This Agreement and the Plan set forth the entire agreement and understanding of the parties
relating to the subject matter herein and merge all prior discussions between them. Subject to Section 14(c) of the Plan,
no modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless
in writing signed by the parties to this Agreement.

 

    A-3 

     

    

 

5.3            Bound
by Plan; Interpretation. Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the
terms and provisions therein. In the event of a conflict between any term or provision contained herein and a term or provision
of the Plan (as such may be amended from time to time in accordance with the terms of the Plan), the applicable terms and provisions
of the Plan will govern.

 

5.4            Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of
the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be
enforceable in accordance with its terms.

 

5.5            Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally
or sent by electronic mail (with return receipt requested and received) or fax or forty-eight (48) hours after being deposited
in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified, if to the Company,
at its principal offices, and if to Participant, at Participant’s address, electronic mail address or fax number in the Company’s
records or as subsequently modified by written notice.

 

5.6            Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument.

 

5.7            Successors
and Assigns. The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by the Company’s
successors and assigns. The Company may assign its rights under this Agreement to any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company without
the prior written consent of Participant. The rights and obligations of Participant under this Agreement may only be assigned with
the prior written consent of the Company.

 

5.8            Conformity
to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions
of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange
Commission thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall
be administered, and the Shares are to be issued, only in such a manner as to conform to such laws, rules and regulations.
To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform
to such laws, rules and regulations.

 

5.9            No
Right to Continued Service. EXCEPT AS MAY BE PROVIDED IN ANY EMPLOYMENT AGREEMENT WITH THE PARTICIPANT, THE PARTICIPANT
ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE UNITS PURSUANT TO SECTION 2.1 HEREOF IS EARNED ONLY BY CONTINUING SERVICE
TO THE COMPANY, OR ONE OF ITS SUBSIDIARIES AS AN “AT WILL” EMPLOYEE OR CONSULTANT OF THE COMPANY, OR ONE OF ITS SUBSIDIARIES
OR A NON-EMPLOYEE DIRECTOR OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED OR ACQUIRING SHARES HEREUNDER). THE PARTICIPANT
FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH
HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR
FOR SUCH PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH THE COMPANY’S, OR ANY OF ITS SUBSIDIARIES’
RIGHT TO TERMINATE THE PARTICIPANT’S EMPLOYMENT OR SERVICE TO THE COMPANY AT ANY TIME, WITH OR WITHOUT CAUSE.

 

    A-4 

     

    

 

5.10            No
Right to Future Awards. The grant of the Award is a one-time benefit and does not create any contractual or other right to
receive a grant of Awards or benefits in lieu of Awards in the future. Future grants, if any, will be at the sole discretion of
the Company. In addition, the value of the Award is an extraordinary item of compensation outside the scope of any employment contract.
As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. The future value of
the underlying Stock is unknown and cannot be predicted with certainty.

 

5.11 Section 409A.
Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant
Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of
the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued after the Grant Date, “Section 409A”).
The Administrator may, in its discretion, adopt such amendments to the Plan, this Agreement or the Grant Notice or adopt
other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, as the Administrator determines are necessary or appropriate to comply with the requirements of
Section 409A.

 

5.12 Vesting Provisions Supersede.
Participant acknowledges and agrees that the provisions of this Agreement concerning vesting and settlement supersede, as to the
Units, any contrary terms of any severance or change of control agreement or plan to which the Participant is or becomes a party
or in which the Participant is or becomes a participant that purports to govern the vesting of Participant’s equity-based
awards generally.

 

    A-5 

     

    

 

EXHIBIT B

 

TO
Performance SHARE UNIT AWARD GRANT NOTICE

 

vesting
schedule

 

Capitalized terms used in this Exhibit B
and not defined in Section 4 below shall have the meanings given them in the Grant Notice and the Agreement to which this
Exhibit B is attached.

 

1.            Performance
Vesting. Provided that Participant has remained continuously employed with or in service to the Company or its Subsidiaries
from the Grant Date until the Vesting Date, such number of Units shall vest as determined by multiplying (a) the Target Units
set forth in the Grant Notice by (b) the Performance Multiplier determined as follows (rounded to the nearest whole Unit):

 

	Average Relative TSR Rank	Performance Multiplier*
	At or Above 80th percentile	150%
	55th percentile	100%
	25th percentile	33.3%
	Below 25th percentile	0%

*The
Performance Multiplier will be linearly interpolated for performance between levels.

 

The Company’s Average Relative TSR
Rank for the Performance Period is determined by taking the numeric average of (a) the Company’s Relative TSR Rank calculated
using the Peer Group as the comparator group and (b) the Company’s Relative TSR Rank calculated using the REIT Index
Group as the comparator group. Notwithstanding the foregoing, if the Company’s TSR is negative, then the Performance Multiplier
may not exceed 100%.

 

Notwithstanding anything to the contrary
herein, in no event shall the Units that vest under this Award have an aggregate Fair Market Value as calculated on the Vesting
Date greater than 800% of the aggregate Fair Market Value of the Target Units set forth in the Grant Notice as calculated on the
Grant Date (the “Value Cap”), and the number of Units that would otherwise vest shall be reduced to the
extent necessary to prevent such Value Cap from being exceeded.

 

Any Units that do not vest as a result of
the Company’s Average Relative TSR Rank, or that are prevented from vesting as a result of the application of the Value Cap,
shall automatically and without further action be cancelled and forfeited by Participant, and Participant shall have no further
right or interest in or with respect to such portion of the Award or such Units.

 

2.            Effect
of Termination of Employment.

 

2.1            If
Participant’s employment or service with the Company and its Subsidiaries terminates before the Vesting Date as a result
of Participant’s death, termination by the Company without Cause or resignation by Participant for Good Reason, or, in the
case of a Participant who is party to a Severance and Change of Control Agreement with the Company, the Participant’s Disability
or Qualifying Retirement, then Participant shall continue to be eligible to earn the Units hereunder as though Participant’s
employment or service had not terminated, provided that if Participant’s termination date occurs before the 12-month
anniversary of the Grant Date, then the Participant’s Target Units will be reduced to the product of (i) the Target
Units set forth in the Grant Notice, multiplied by (ii) a fraction, the numerator of which is the number of full months between
the Grant Date and the Participant’s termination date, and the denominator of which is 12.

 

    B-1

     

    

 

2.2            If
Participant’s employment or service terminates before the Vesting Date for any reason other than those set forth in Section 2.1,
then the Award and the Units shall automatically and without further action be cancelled and forfeited by Participant, and Participant
shall have no further right or interest in or with respect to such portion of the Award or Units.

 

3.            Change
of Control.

 

3.1            Upon
a Change of Control, the Administrator will determine the Average Relative TSR Rank and the Performance Multiplier using the table
set forth in Section 1 and the corresponding number of Units that are earned. However, the earned Units will continue to be
subject to a requirement of continued employment or service and will vest on the Vesting Date only if Participant remains employed
or in service with the Company and its Subsidiaries (or their successor in the Change of Control) through such date, except as
otherwise provided in Section 3.2; provided that such requirement of continued employment or service shall not apply to the
earned Units if the purchaser, successor or surviving entity in the Change of Control (or parent thereof) does not agree to continue,
assume or replace this Award in the Change of Control.

 

3.2            Notwithstanding
Section 3.1, if, following a Change of Control, Participant’s employment or service terminates before the Vesting Date
due to Participant’s death, termination by the Company without Cause or resignation by Participant for Good Reason, or, in
the case of a Participant who is party to a Severance and Change of Control Agreement with the Company, the Participant’s
Disability or Qualifying Retirement, then Participant shall vest in such Units as of Participant’s termination date, and
such vested Units shall be settled in accordance with Section 2.1 of the Agreement following the Vesting Date as though Participant’s
employment or service had continued through the Vesting Date.

 

4.            Holding
Period. Participant agrees to hold any Shares issued in settlement of vested Units, less any Shares withheld to satisfy federal,
state, or local income or other tax withholding due in connection with this Award (the “Net Shares”),
and not to sell, transfer or otherwise dispose of such Net Shares, until after the first anniversary of the Vesting Date. Following
the first anniversary of the Vesting Date, the Participant may sell, transfer or otherwise dispose of the Net Shares, subject to
and in compliance with any applicable limitations, restrictions or requirements under the Plan, the Grant Notice, the Agreement,
any agreement with the Company or any applicable Company policy.

 

5.            Definitions.

 

5.1            “Adjusted
End Price” means the average adjusted closing stock price (i.e., the price assuming that dividends are reinvested
in additional shares of stock as of the ex-dividend date) over the twenty (20) trading days ending on the last day of the Performance
Period.

 

5.2            “Good
Reason” has the same meaning as set forth in Participant’s Severance and Change of Control Agreement with the
Company, or if no such agreement exists, then it shall mean the occurrence of any of the following events without Participant’s
prior written consent or subsequent ratification in writing: (a) a material diminution in Participant’s authority, duties
or responsibilities, (b) a material diminution of Participant’s annual base salary, or (c) a material change in
the geographic location at which Participant must perform Participant’s duties and responsibilities. However, Participant
will not be considered to have terminated for Good Reason unless Participant provides notice to the Company of the condition giving
rise to Good Reason within ninety (90) days of the initial existence of such condition and provides the Company with thirty (30)
days to cure such condition before terminating employment.

 

    B-2

     

    

 

5.3            “Disability”
shall have the meaning as set forth in the applicable Severance and Change of Control Agreement of the Participant.

 

5.4            “Grant
Date” is the date set forth in the Grant Notice as the grant date of the Award.

 

5.5            “Measurement
Date” means the first to occur of (a) December 31, 2023, or (b) the trading day immediately preceding
the date on which a Change of Control occurs.

 

5.6            “Peer
Group” means the companies listed in the table below, provided that if a company meets either of the following criteria,
then it shall be excluded from the Peer Group for all purposes: (i) during the Performance Period, the company makes a public
disclosure of its intent or agreement to enter into a merger or sale with another company, it will not remain the survivor of said
merger or sale, and the transaction has not been consummated at the end of the Performance Period; or (ii) it is not listed
on a securities exchange for the entire applicable Performance Period; provided, however, that a company that becomes de-listed
due to bankruptcy during the applicable Performance Period will be included with TSR equal to negative one hundred percent (-100%).

 

	Agree Realty Corporation
	Broadstone Net Lease, Inc. Class A
	Easterly Government Properties, Inc.
	EPR Properties
	Essential Properties Realty Trust, Inc.
	Four Corners Property Trust, Inc.
	Gaming & Leisure Properties, Inc.
	Getty Realty Corp.
	Gladstone Commercial Corporation
	Global Net Lease Inc.
	Industrial Logistics Properties Trust
	Lexington Realty Trust
	Monmouth Real Estate Investment Corporation Class A
	National Retail Properties, Inc.
	One Liberty Properties, Inc.
	PS Business Parks, Inc.
	Realty Income Corporation
	Safehold, Inc.
	Spirit Realty Capital, Inc.
	STAG Industrial, Inc.
	STORE Capital Corporation
	Terreno Realty Corporation
	VEREIT, Inc. Class A
	VICI Properties Inc.
	W.P. Carey Inc.

 

5.7            “Performance
Period” means the period beginning on January 11, 2021 and ending on the Measurement Date.

 

    B-3

     

    

 

5.8            “Qualifying
Retirement” shall have the meaning as set forth in the applicable Severance and Change of Control Agreement of the
Participant.

 

5.9            “REIT
Index Group” means companies that are included in the FTSE Nareit All Equity REIT Index as of the first day of
the Performance Period, but excluding the Company, provided that, if a company meets either of the following criteria, then
it shall be excluded from the REIT Index Group for all purposes: (i) during the Performance Period, a company makes a
public disclosure of its intent or agreement to enter into a merger or sale with another company, it will not remain the
survivor of said merger or sale, and the transaction has not been consummated at the end of the Performance Period; or
(ii) a company is not listed on a securities exchange for the entire Performance Period; provided, however, that a
company that becomes de-listed due to bankruptcy during the applicable Performance Period will be included with TSR equal to
negative one hundred percent (-100%).

 

5.10            “Relative
TSR Rank” means the Company’s TSR compared to the TSR of a comparator group (either the Peer Group or REIT
Index Group), calculated as follows:

 

(a)  rank the companies in
the comparator group (excluding the Company) from highest to lowest TSR, with the company with the highest TSR being assigned the
rank of 1.

 

(b)  calculate the percentile
rank of (i) the company in the comparator group with the TSR closest to, but greater than, the Company’s TSR (the “Above
Company”), and (ii) the company in the comparator group with the TSR closest to, but less than, the Company’s
TSR, using the equation below (the “Below Company”):

 

 

 

where “N” equals the total number of companies
in the comparator group and “R” is the company’s ranking within the comparison group.

 

(c)  calculate the Company’s
Relative TSR Rank using the equation below:

 

 

 

where “Pabove”
and “TSRabove” equals the percentile rank and TSR, respectively, for the Above Company, Pbelow”
and “TSRbelow” equals the percentile rank and TSR, respectively, for the Below Company, and TSRIIPR
equals the Company’s TSR.

 

Notwithstanding the foregoing, if (i) the Company’s
TSR exceeds the TSR of the comparator group company that ranked “1,” then the Company’s Relative TSR Rank will
equal 100% with respect to such comparator group, and (ii) if the Company’s TSR is less than the TSR of the comparator
group company that ranked last, then the Company’s Relative TSR Rank with respect to such comparator group will equal 0%.

 

5.11            “Start
Price” means the average closing stock price over the twenty (20) trading days starting on the first day of the Performance
Period.

 

    B-4

     

    

 

5.12            “TSR”
or “Total Stockholder Return” means the return a stockholder of a company would earn if the stockholder
purchased shares of such company’s common stock at the beginning of the Performance Period, reinvested all dividends paid
on such stock during the Performance Period in additional shares, and sold the shares at the end of the Performance Period, calculated
according to the following formula:

 

 

 

5.13            “Vesting
Date” means December 31, 2023.

 

    B-5Exhibit 10.1

 

SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT

ASHFORD HOSPITALITY TRUST, INC.

 

THIS SECOND AMENDED AND
RESTATED ADVISORY AGREEMENT (this “Agreement”), is dated and effective as of January 14, 2021 (the “Effective
Date”), by and between ASHFORD HOSPITALITY TRUST, INC., a Maryland corporation (“Ashford Trust” or
the “Company”), ASHFORD HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership (the “Operating
Partnership”), ASHFORD TRS CORPORATION, a Delaware corporation (“TRS”), ASHFORD INC., a Nevada corporation
(“Ashford Inc.”), and ASHFORD HOSPITALITY ADVISORS LLC, a Delaware limited liability company (“Ashford
LLC” and, together with Ashford Inc., the “Advisor”), which is the operating company of Ashford Inc.

 

WHEREAS, Ashford Trust,
through its interest in the Operating Partnership, is in the business of investing in the hospitality industry including, the acquiring,
developing, owning, asset managing and disposing of hotels (for purposes hereof, unless the context otherwise requires, the term
 “Company” shall collectively include Ashford Trust and the Operating Partnership);

 

WHEREAS, Ashford Trust,
the Operating Partnership and Ashford LLC entered into an Advisory Agreement dated and effective on November 12, 2014, which was
amended and restated on June 10, 2015 (as amended on June 26, 2018, the “Existing Advisory Agreement”), pursuant
to which the Advisor agreed to perform certain advisory services identified in such agreement, on behalf of, and subject to the
supervision of, the board of directors of Ashford Trust (the “Board of Directors”), in exchange for the compensation
set forth therein;

 

WHEREAS, the board of
directors of each of Ashford Inc. and the Company desires to modify certain provisions of the Existing Advisory Agreement, and,
in doing so to amend and restate the Existing Advisory Agreement to include these amendments;

 

WHEREAS, the Company
desires to continue to avail itself of the experience, brand relationships, lender and capital provider sources and relationships,
asset management expertise, sources of information, advice, assistance and certain facilities of the Advisor and to have the Advisor
continue to provide the services hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors,
all as provided herein; and

 

WHEREAS, the Advisor
is willing to continue to provide such services to the Company on the terms set forth herein;

 

NOW, THEREFORE, in consideration
of the mutual covenants set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

 

1.
APPOINTMENT OF ADVISOR

 

The Company
acknowledges the appointment of the Advisor as the exclusive advisor of the Company pursuant to the terms of the Existing
Advisory Agreement and acknowledges the continued role of the Advisor as the exclusive advisor of the Company, to provide the
management and real estate services specified herein on the terms and conditions set forth in this Agreement, and the Advisor
hereby acknowledges and accepts such continued appointment.

  

     

     

    

 

2.
DUTIES OF ADVISOR

 

2.1.        Specific Duties. Subject to the supervision of the
Board of Directors, the Advisor will be responsible for the day-to-day operations of the Company (and all subsidiaries and joint
ventures of the Company) and shall perform (or cause to be performed) all services relating to the acquisition and disposition
of hotels, asset management, financing and operations of the Company as may be reasonably required, which shall include the following
related to the Company’s hotel assets:

 

(a)         source, investigate and evaluate acquisitions and dispositions consistent with the Company’s Investment Guidelines
(as defined in Section 9.2(a) below) and make recommendations to the Board of Directors;

 

(b)         engage and supervise, on the Company’s behalf and at the Company’s expense, third parties to provide development
management, property management, project management, design and construction services, investment banking services, financial services,
property disposition brokerage services, independent accounting and auditing services and tax reviews and advice, transfer agent
and registrar services, feasibility studies, appraisals, engineering studies, environmental property inspections and due diligence
services, underwriting review services, consulting services and all other services reasonably necessary for Advisor to perform
its duties hereunder;

 

(c)         negotiate, on the Company’s behalf, any acquisitions, dispositions, financings, restructurings or other transactions
with sellers, purchasers, lenders, brokers, agents and other applicable representatives;

 

(d)         coordinate and manage joint ventures with the Company, including monitoring and enforcing compliance with applicable joint
venture or partnership governing documents;

 

(e)         negotiate, on behalf of the Company, terms of hotel management agreements, franchise agreements and other contracts or agreements
of the Company, and modifications, extensions, waivers or terminations thereof including, without limitation, the negotiation and
approval of annual operating and capital budgets thereunder;

 

(f)          on behalf of the Company, enforce, monitor and manage compliance of hotel management agreements, franchise agreements and
other contracts or agreements of the Company, and modifications, extensions, waivers or terminations thereof;

 

(g)         negotiate, on behalf of the Company, terms of loan documents for the Company’s financings;

 

    -2-

     

    

  

(h)         enforce,
monitor and manage compliance of loan documents to which the Company is a party, in each case, on behalf of the Company;

 

(i)          administer bookkeeping and accounting functions as are required for the management and operation of the Company, contract
for audits and prepare or cause to be prepared such periodic reports and filings as may be required by any governmental authority
in connection with the ordinary conduct of the Company’s business, and otherwise advise and assist the Company with its compliance
with applicable legal and regulatory requirements, including without limitation, periodic reports, returns or statements required
under the Securities Exchange Act of 1934, as amended, the Code and any regulations or rulings thereunder, the securities and tax
statutes of any jurisdiction in which the Company is obligated to file such reports, or the rules and regulations promulgated under
any of the foregoing;

 

(j)          advise and assist in the preparation and filing of all offering documents, registration statements, prospectuses, proxies,
and other forms or documents filed with the Securities and Exchange Commission (the “SEC”) pursuant to the Securities
Act of 1933, as amended, or any state securities regulators (it being understood that the Company shall be responsible for the
content of any and all of its offering documents, SEC filings or state regulatory filings, including, without limitation, those
filings referred to in subparagraph 2.1(i) above, and Advisor shall not be held liable for any costs or liabilities arising out
of any misstatements or omissions in the Company’s offering documents, SEC filings, state regulatory filings or other filings
referred to in subparagraphs 2.1(i) and (j), whether or not material, and the Company shall promptly indemnify Advisor for such
costs and liabilities);

 

(k)         retain counsel, consultants and other third party professionals on behalf of the Company, coordinate, supervise and manage
all consultants, third party professionals and counsel, and investigate, evaluate, negotiate and oversee the processing of claims
by or against the Company;

 

(l)          advise and assist with the Company’s risk management and oversight function;

 

(m)        provide office space, office equipment and personnel necessary for the performance of services;

 

(n)         perform or supervise the performance of such administrative functions reasonably necessary for the establishment of bank
accounts, related controls, collection of revenues and the payment of Company debts and obligations;

 

(o)         communicate with the Company’s investors and analysts as required to satisfy reporting or other requirements of any
governing body or exchange on which the Company’s securities are traded and to maintain effective relations with such investors;

 

(p)         advise and assist the Company with respect to the Company’s public relations, preparation of marketing materials,
website and investor relation services;

 

(q)         counsel the Company regarding qualifying, and maintaining Ashford Trust’s qualification as a REIT;

 

    -3-

     

    

 

(r)          assist
the Company in complying with all regulatory requirements applicable to the Company (subject to the Company providing appropriate,
necessary and timely funding of capital);

 

(s)         counsel the Company in connection with policy decisions to be made by the Board of Directors;

 

(t)          furnish reports and statistical and economic research to the Company regarding the Company’s activities, investments,
financing and capital market activities and services performed for the Company by the Advisor;

 

(u)         asset manage (subject to Section 2.5) and monitor the operating performance of the Company’s real estate investments,
including the management and implementation of capital improvement programs, pursue property tax appeals (as appropriate), and
provide periodic reports with respect to the Company’s investments to the Board of Directors, including comparative information
with respect to such operating performance and budgeted or projected operating results;

 

(v)         maintain cash in U.S. Treasuries or bank accounts (with the understanding that Advisor’s duties shall not include
providing or assisting in proactive investment management strategies or investment in securities other than U.S. Treasuries), and
make payment of fees, costs and expenses, or the payment of distributions to stockholders of the Company;

 

(w)        advise the Company as to its capital structure and capital raising;

 

(x)         take all actions reasonably necessary to enable the Company to comply with and abide by all applicable laws and regulations
in all material respects subject to the Company providing appropriate, necessary and timely funding of capital;

 

(y)        provide the Company with an internal audit staff with the ability to satisfy any applicable regulatory requirements, including,
requirements of the New York Stock Exchange and the SEC, and any additional duties that are determined reasonably necessary or
appropriate by the Company’s audit committee; and

 

(z)         take such other actions and render such other services as may reasonably be requested by the Company consistent with the
purpose of this Agreement and the aforementioned services.

 

2.2.       Officers
and Other Personnel. The Advisor shall make available sufficient experienced and appropriate personnel to perform
the services and functions specified including, without limitation, the positions of the chief executive officer, president,
chief operating officer, chief financial officer, chief accounting officer and general counsel (collectively,
 “Executives”) or such positions as Advisor deems reasonably necessary. The Advisor shall not be obligated
to dedicate any of its officers or other personnel exclusively to the Company nor is the Advisor, its Affiliates or any of
its officers or other employees obligated to dedicate any specific portion of its or their time to the Company or its
business, except as necessary to perform the services provided above. The Advisor shall be entitled to rely on qualified
experts and professionals (including, without limitation, accountants, legal counsel and other professional service
providers) hired by the Advisor at the Company’s sole cost and expense. The Advisor may retain, for and on behalf, and
at the sole cost and expense, of the Company, such services of any individual, corporation, partnership, limited liability
company, joint venture, association, trust, unincorporated organization or other entity (each, a “Person”)
as the Advisor deems necessary or advisable in connection with the management and operations of the Company.

 

    -4-

     

    

 

2.3.           
Certain Related Party Matters. Any waiver, consent,
approval, modification, enforcement matter or election required to be made by the Company under the Amended and Restated Mutual
Exclusivity Agreement between the Company, Remington Lodging and Hospitality LLC (together with its Affiliates, “Remington”)
and Monty J. Bennett, dated as of August 8, 2018, as the same has been amended through the date hereof and may be amended from
time to time hereafter, or the Consolidated, Amended and Restated Hotel Master Management Agreement (the “Hotel Master
Management Agreement”) dated as of August 8, 2018, by and among TRS, RI Manchester Tenant Corporation, CY Manchester
Tenant Corporation and Remington, as the same has been amended through the date hereof or may be amended or supplemented from time
to time hereafter, shall be within the exclusive discretion and control of a majority of the Independent Directors (or higher vote
thresholds specifically set forth in such agreements) unless specifically delegated to the Advisor by a majority of the Independent
Directors. For purposes of this Agreement, “Independent Director” shall mean any director of Ashford Trust who,
on the date at issue, is currently serving on the Board of Directors and is “independent” as determined by application
of the current rules and regulations of the New York Stock Exchange in effect as of the Effective Date of this Agreement. For purposes
of this Agreement, “Affiliate” shall mean a Person that directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with the Person in question and any officer, director, trustee, key decision-making
employee, stockholder or partner of any Person referred to in the preceding clause, except that for purposes of this Agreement,
the Company shall not be considered an Affiliate of the Advisor.

 

2.4.           
Increase in Scope of Duties. Any increase in the
scope of duties or services to be provided by the Advisor must be jointly approved by the Company and the Advisor and will be subject
to additional compensation determined in accordance with the provisions of Section 6.4 and the process set forth in Section
9.3 below.

 

2.5.           
Exclusivity. Ashford Inc. and its subsidiaries
shall be the Company’s sole and exclusive provider of asset management, project management and other services offered by
Ashford Inc. or any of its subsidiaries, with authority to source, evaluate and monitor the Company’s investment opportunities
consistent with the Company’s Investment Guidelines, and to direct the operation and policies of the Company, such as managing
the Company’s assets and monitoring the operating performance of the Company’s hotel real estate investments and other
assets, including the management and implementation of capital improvement programs, pursue property tax appeals (as appropriate),
and providing periodic reports with respect to the Company’s hotel real estate investments and other assets to the Board
of Directors, including comparative information with respect to such operating performance and budgeted or projected operating
results.

 

    -5-

     

    

 

3.
AUTHORITY OF ADVISOR

 

Subject to the express
limitations set forth in this Agreement and the continuing authority of the Board of Directors over the management of the Company,
the power to direct the management, operation and policies of the Company shall be vested in the Advisor. Notwithstanding the foregoing,
all material decisions with respect to annual capital plans, brand conversions, the commencement or settlement of litigation matters,
investment decisions, capital market transactions, annual budgets and management and franchise options recommended by the Advisor,
including the acquisition, sale, financing and refinancing of assets, shall be subject to the prior authorization of the Board
of Directors, except to the extent such authority is expressly delegated by the Board of Directors to the Advisor. Additionally,
if the charter or Maryland General Corporation Law requires the prior approval of the Board of Directors, the Advisor may not take
any action on behalf of the Company without the prior approval of the Board of Directors or duly authorized committees thereof.
In such cases where prior approval is required, the Advisor will deliver to the Board of Directors such documents and supporting
information as may be reasonably requested by the Board of Directors to evaluate a proposed investment (and any related financing)
or other matter requiring the Board of Directors’ authorization.

 

4.
BANK ACCOUNTS

 

(i) The Advisor shall,
and hereby is authorized to, and shall have the exclusive right and authority to, establish and maintain subject to any applicable
conditions or limitations of loan documents applicable to the Company, one or more bank, brokerage or similar accounts in the Advisor’s
own name for the account of the Company or in the name of the Company and collect and deposit into any account or accounts, and
disburse from any such account or accounts, any and all money, securities and other cash equivalents on behalf of the Company,
provided, that no funds shall be commingled with the funds of the Advisor. The Advisor shall from time to time render appropriate
accountings of such collections and payments to the Board of Directors and the independent auditors of the Company.

 

(ii) The Advisor shall
have the right, in its sole discretion, without prior notice to the Company, to set off, take and apply any monies of the Company
on deposit in any bank, brokerage or similar account established and maintained for the Company by the Advisor pursuant to Section
4 or, subject to Section 19, any money on deposit in the Termination Fee Escrow Account established and maintained pursuant
to Section 12 of this Agreement to the payment of all amounts becoming due and payable by the Company; provided, that
exercise of such set-off right shall not cause the Company’s remaining cash and cash equivalents to be less than the Working
Capital Reserve. The exercise of any such set-off right shall not impact the Company’s obligation to pay any obligations
that remain due and payable following set-off by Advisor. For the avoidance of doubt, in determining the amount of Enhanced Return
Investments that Ashford LLC has funded or committed as of any time, amounts repaid in respect of previously made Enhanced Return
Investments shall not be deducted. Advisor shall notify the Company in writing promptly after any exercise of setoff rights hereunder
setting forth in reasonable detail the amounts so setoff.

 

    -6-

     

    

 

5.
PAYMENT OF EXPENSES

 

Subject to the last two
paragraphs of this Section 5, in addition to the compensation paid to the Advisor pursuant to Section 6 hereof, the
Company shall pay directly or reimburse the Advisor, on a monthly basis, for all of the expenses paid or incurred by the Advisor
or its Affiliates on behalf of the Company or in connection with the services provided to the Company pursuant to this Agreement,
including, but not limited to, tax, legal, accounting, advisory, investment banking and other third party professional fees, Board
of Directors’ fees, debt service, taxes, insurance (including errors and omissions insurance and any additional insurance
required by Section 8.2), underwriting, brokerage, reporting, registration, listing fees and charges, travel and entertainment
expenses, conference sponsorships, transaction diligence and closing costs, dead deal costs, dividends, office space, the cost
of all equity awards or compensation plans established by the Company, including the value of awards made by the Company to the
employees, officers, Affiliates and representatives of the Advisor, and any other costs which are reasonably necessary for the
performance by the Advisor of its duties and functions under this Agreement and also including any expenses incurred by Advisor
to comply with new or revised laws or governmental rules or regulations that impose additional duties on the Company or the Advisor
in its capacity as advisor to the Company, including any personnel costs incurred to satisfy such additional duties. In addition,
the Company shall pay its pro rata share of the office overhead and administrative expenses of the Advisor incurred in providing
its duties pursuant to this Agreement.

 

The Advisor shall be
responsible for all wages, salaries, cash bonus payments and benefits related to all employees of the Advisor providing services
to the Company (including any officers of the Company who are also officers of the Advisor), excluding expenses related to (i) the
provision of internal audit services as described below and (ii) equity compensation awarded by the Company to employees,
officers, Affiliates and representatives of the Advisor pursuant to Section 6.3 below. The Advisor shall also be responsible
for reimbursing the Company for all costs associated with Ashford Trust’s chairman emeritus, Archie Bennett, Jr., which reimbursement
shall include a seven hundred thousand dollar ($700,000) annual stipend payable to Mr. Archie Bennett as well as the actual cost
of all benefits available to him on November 12, 2014 (the “Original Effective Date”) and reimbursement for
reasonable expenses incurred by him in connection with his service to Ashford Trust.

 

Subject to the last two
paragraphs of this Section 5, the Company shall reimburse the Advisor, on a monthly basis, the Company’s pro-rata
portion (as reasonably agreed to between the Advisor and a majority of the Company’s Independent Directors or Ashford Trust’s
audit committee, chairman of the audit committee or lead director) of all expenses related to (i) employment of the Advisor’s
internal audit managers and other employees of the Advisor who are actively engaged in providing internal audit services to the
Company, (ii) the reasonable travel and other out-of-pocket costs of the Advisor relating to the activities of the Advisor’s
internal audit employees and the reasonable third party expenses which the Advisor incurs, in each case, in connection with providing
internal audit services, and (iii) all reasonable international office expenses, overhead, personnel costs, travel and other
costs directly related to Advisor’s non-Executive personnel that are located internationally or that oversee the operations
of international assets or related to Advisor’s personnel that source, investigate or provide diligence services in connection
with possible acquisitions or investments internationally. Such expenses shall include, but are not limited to, salary,
wages, payroll taxes and the cost of employee benefit plans.

 

    -7-

     

    

 

The Company shall pay
the costs and expenses that are reimbursable to the Advisor pursuant to this Agreement on a monthly basis in advance on the first
business day of each month in an amount equal to the budgeted monthly reimbursements for the applicable month, which shall be equal
to the amount estimated to be payable on account of the costs and expenses that are reimbursable to the Advisor for each month
included in each annual expense budget prepared by the Advisor and approved by the Board of Directors (the “Annual Expense
Budget”); provided, that if the Advisor and the Company do not agree on an Annual Expense Budget for the applicable
fiscal year, the budgeted monthly reimbursements for each month of the existing fiscal year shall be equal to one hundred and ten
percent (110%) of the Actual Monthly Reimbursements (as defined below) for the same month in the prior fiscal year.

 

No later than forty-five
(45) days following the end of the applicable fiscal quarter, the Advisor shall calculate (and provide the Company with a copy
of the calculation) the costs and expenses that were actually reimbursable to the Advisor pursuant to this Agreement for each month
(each amount, the “Actual Monthly Reimbursements”) in the fiscal quarter just ended. The Company shall have
ten (10) business days to review and comment upon the calculation provided by the Advisor. If the aggregate Actual Monthly Reimbursements
payable as calculated by the Advisor for the fiscal quarter just ended exceeds the aggregate budgeted monthly reimbursements paid
by the Company for the fiscal quarter (the difference being referred to as a “Reimbursement Underpayment”),
then the Company shall pay the Advisor the full amount of the Reimbursement Underpayment no later than fifty-five (55) days following
the end of the applicable fiscal quarter. If the aggregate budgeted monthly reimbursements paid by the Company for the fiscal quarter
just ended is greater than the aggregate Actual Monthly Reimbursements payable as calculated by the Advisor for the fiscal quarter
(the difference being referred to as a “Reimbursement Overpayment”), then the Advisor shall repay the Reimbursement
Overpayment to the Company no later than fifty-five (55) days following the end of the applicable fiscal quarter.

 

6.
COMPENSATION

 

6.1.           
The Company shall, on a monthly basis, pay a fee (the “Base Fee”) in an amount equal to 1/12 of (i) 0.70%
of the Total Market Capitalization of the Company for the prior month, plus (ii) the Net Asset Fee Adjustment, if any, on the last
day of the prior month during which this Agreement was in effect; provided, however in no event shall the Base Fee for any
month be less than the Minimum Base Fee.

 

The Company shall
pay the Base Fee or the Minimum Base Fee on the fifth business day of each month based on the calculation set forth above.

 

For purposes of this
Agreement, the following terms have the meanings set forth below:

 

“Average VWAP”
shall mean, for any period, (i) the sum of the VWAPs for each trading day in such period divided by (ii) the number of trading
days in such period.

 

“Enhanced Return
Hotel Asset” shall have the meaning set forth in the ERFP Agreement.

 

    -8-

     

    

 

“Gross Asset
Value” shall mean, with respect to any of the Company’s assets as of any date, the undepreciated carrying value
of all such assets including all cash and cash equivalents and capitalized leases and any furniture, fixtures and equipment (FF&E)
leased to subsidiaries of the Company to facilitate the purchase of any Enhanced Return Hotel Asset as reflected on the most recent
balance sheet and accompanying footnotes of the Company filed with the SEC or prepared by the Advisor in accordance with GAAP consistent
with its performance of its duties hereunder without giving effect to any impairments plus the publicly disclosed purchase price
(excluding any net working capital and transferred FF&E reserves) of any assets acquired after the date of the most recent
balance sheet and all capital expenditures made (to the extent not already reflected in the carrying value of the asset) with respect
to an asset since the date of its acquisition for any improvements or for additions thereto, that have a useful life of more than
one (1) year and that are required to be capitalized under GAAP.

 

“Minimum Base
Fee” for each quarter beginning January 1, 2021 or thereafter will be equal to the greater of:

 

(i) ninety percent (90%)
of the Base Fee paid for the same month in the prior fiscal year and

 

(ii) 1/12th of the G&A
Ratio for the most recent completed fiscal quarter multiplied by the Company’s Total Market Capitalization on the last balance
sheet date included in the most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed by the Company with the
SEC.

 

For purposes of this
Agreement, the “G&A Ratio” will be calculated as the simple average of the ratios of total general and administrative
expenses, less any non-cash expenses but including any dead deal costs, paid in the applicable quarter by each member of a select
peer group set forth in Exhibit A (each, a “Peer Group Member” and collectively, the “Peer Group”),
divided by the total market capitalization of such Peer Group Member (calculated in the same manner as the Company’s Total
Market Capitalization). The G&A Ratio for each Peer Group Member will be calculated based on the financial information presented
in such Peer Group Member’s Form 10-Q or 10-K periodic filings with the SEC following the end of each quarter. The Peer Group
may be modified from time to time by mutual written agreement of the Advisor and a majority of the Independent Directors, negotiating
in good faith.

 

“Net Asset Fee
Adjustment” shall be equal to the result of (i) the product of (A) the Sold Non-ERFP Asset Amount, if any, and (B) 0.70%
plus (ii) the product of (A) the Sold ERFP Asset Amount, if any, and (B) 1.07%.

 

    -9-

     

    

 

“Sold ERFP
Asset Amount” shall mean an amount, calculated immediately after the first sale or other disposition (including by
way of a foreclosure or deed-in-lieu of foreclosure by a mortgage or mezzanine lender of the Operating Partnership or its
subsidiaries) of an Enhanced Return Hotel Asset occurring after the date of the ERFP Agreement (the “First ERFP
Sale”) and, thereafter, immediately after each successive purchase or sale or disposition (including any such
foreclosure or deed-in-lieu) of an Enhanced Return Hotel Asset (each, a “Successive ERFP Transaction”),
equal to (i) immediately after the First ERFP Sale, the publicly disclosed sales or disposition price (excluding any net
working capital and transferred FF&E reserves) of such Enhanced Return Hotel Asset and (ii) immediately after each
Successive ERFP Transaction, an amount equal to the Sold ERFP Asset Amount in effect immediately prior to the Successive ERFP
Transaction plus, in the case that such Successive ERFP Transaction is a sale or disposition of an Enhanced Return Hotel
Asset, the publicly disclosed sales or disposition price (excluding any net working capital and transferred FF&E
reserves) of such Enhanced Return Hotel Asset or minus, in the case that such Successive ERFP Transaction is a purchase of an
Enhanced Return Hotel Asset, the publicly disclosed purchase price (excluding any net working capital and transferred
FF&E reserves) of such Enhanced Return Hotel Asset; provided that if the foregoing calculation results, at any time
of calculation, in a negative number, the calculated amount at such time of calculation shall be deemed to be zero; and
provided further that if (x) the Company purchases any real property without any additional Enhanced Return Investment
provided by Ashford LLC (a “Replacement Asset” and the publicly disclosed purchase price of such
Replacement Asset (excluding any net working capital and transferred FF&E reserves), the “Replacement Asset
Purchase Price”), (y) such acquisition would have reduced the Sold ERFP Asset Amount to zero (if such acquisition
were of an Enhanced Return Hotel Asset) and (z) such Replacement Asset is subsequently sold or disposed of (including by way
of a foreclosure or deed-in-lieu of foreclosure), then the Sold ERFP Asset Amount shall be increased as a result of such sale
or disposition by an amount equal to the product of (A) the publicly disclosed sales or disposition price (excluding any net
working capital and transferred FF&E reserves) of such Replacement Asset and (B) a fraction, (1) the numerator of which
is the Sold ERFP Asset Amount immediately prior to the purchase of the Replacement Asset and (2) the denominator of which is
the Replacement Asset Purchase Price.

 

“Sold
Non-ERFP Asset Amount” shall mean an amount, calculated immediately after the first sale or other disposition
(including by way of a foreclosure or deed-in-lieu of foreclosure by a mortgage or mezzanine lender of the Operating
Partnership or its subsidiaries) of any real property owned by the Company (other than any Enhanced Return Hotel Asset) (a
 “Non-ERFP Hotel Asset”) occurring after the date of the ERFP Agreement (the “First Non-ERFP
Sale”) and, thereafter, immediately after each successive purchase or sale or disposition (including any such
foreclosure or deed-in-lieu) of a Non-ERFP Hotel Asset (each, a “Successive Non-ERFP Transaction”), equal
to (i) immediately after the First Non-ERFP Sale, the publicly disclosed sales or disposition price (excluding any net
working capital and transferred FF&E reserves) of such Non-ERFP Hotel Asset and (ii) immediately after each Successive
Non-ERFP Transaction, an amount equal to the Sold Non-ERFP Asset Amount in effect immediately prior to the Successive
Non-ERFP Transaction plus, in the case such Successive Non-ERFP Transaction is the sale of a Non-ERFP Hotel Asset, the
publicly disclosed sales or disposition price (excluding any net working capital and transferred FF&E reserves) of such
Non-ERFP Hotel Asset or minus, in the case such Successive Non-ERFP Transaction is the purchase of an Non-ERFP Hotel Asset,
the publicly disclosed purchase price (excluding any net working capital and transferred FF&E reserves) of such Non-ERFP
Hotel Asset; provided that if the foregoing calculation results, at any time of calculation, in a negative number, the
calculated amount at such time of calculation shall be deemed to be zero; and provided further that if (x) the Company
purchases a Replacement Asset, (y) such acquisition would have reduced the Sold ERFP Asset Amount to zero (if such
acquisition were of an Enhanced Return Hotel Asset) and (z) such Replacement Asset is subsequently sold or disposed of
(including by way of a foreclosure or deed-in-lieu of foreclosure), then the Sold Non-ERFP Asset Amount shall be increased as
a result of such sale or disposition by an amount equal to the product of (A) the publicly disclosed sales or disposition
price (excluding any net working capital and transferred FF&E reserves) of such Replacement Asset and (B) a fraction, (1)
the numerator of which is the Replacement Asset Purchase Price less the Sold ERFP Asset Amount immediately prior to the
purchase of the Replacement Asset and (2) the denominator of which is the Replacement Asset Purchase Price.

 

    -10-

     

    

 

 

“Total Market
Capitalization” shall mean, for any period:

 

(a) With respect to the
Company to the extent Company Common Stock is listed for trading on a national securities exchange for every day during any period
for which the Total Market Capitalization is to be calculated, the amount calculated as:

 

(i) the Average
VWAP multiplied by the weighted average number of shares of Company Common Stock outstanding during such applicable period,
on a fully-diluted basis (assuming, for these purposes, that all common units in the Operating Partnership (“Common
Units”), and long term incentive partnership units in the Operating Partnership to the extent they have achieved
economic parity with Common Units have been converted into shares of Company Common Stock and including any shares of Company
Common Stock issuable upon conversion of any convertible preferred stock of the Company where the conversion price is less
than the Average VWAP), plus

 

(ii) the
average, as reflected in the Company’s books and records, for the applicable period of the aggregate principal amount
of the Company’s consolidated indebtedness (including, if applicable, the Company’s proportionate share of debt
of any entity that is not consolidated and excluding, if applicable, any of the Company’s joint venture partners’
proportionate share of consolidated debt), plus

 

(iii) the
average, as reflected in the Company’s books and records, for the applicable period of the liquidation value of the
Company’s outstanding preferred equity (excluding any convertible preferred stock of the Company where the conversion
price is less than the Average VWAP).

 

(b) With respect to the
Company, if the Company Common Stock is not listed for trading on a national securities exchange (due to any reason, including
but not limited to delisting by the New York Stock Exchange or the occurrence of a Company Change of Control) for any day during
any period for which the Total Market Capitalization is to be calculated, the greater of: (i) the weighted average Gross Asset
Value of all the Company’s assets on each day during such period; or (ii) the Total Market Capitalization as calculated
pursuant to paragraph (a) of this definition on the last day on which Company Common Stock was listed for trading on a national
securities exchange, regardless of whether this day occurred during the applicable period.

 

“VWAP”
shall mean the dollar volume-weighted average price for the securities in question on the national securities exchange on which
it trades during the period beginning at 9:30:01 a.m., New York City time (or such other time as the national securities exchange
on which it trades publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York City time (or such
other time as the national securities exchange on which it trades publicly announces is the official close of trading), as reported
by Bloomberg, L.P. through its “Volume at Price” function.

 

    -11- 

     

    

 

6.2.           
 Incentive Fee. In each year that the Company’s
total shareholder return exceeds the average total shareholder return for the Peer Group (the “Incentive Fee Threshold”),
the Company shall pay to the Advisor an incentive fee (the “Incentive Fee”), calculated as set forth in the
following paragraph. For purposes of determining the Incentive Fee, the Company’s total shareholder return will be calculated
using the year-end stock price equal to the closing price of Company Common Stock on the last trading day of the year, as compared
to the closing stock price of Company Common Stock on the last trading day of the prior year, in each case assuming all dividends
on the common stock during such period are reinvested into additional shares of Company Common Stock on the day such dividends
are paid. The average total shareholder return for each Peer Group Member will be calculated in the same manner and for the same
time period, and the average for the Peer Group will be the simple average of the total shareholder return for each Peer Group
Member.

 

If the Company’s
total shareholder return exceeds the Incentive Fee Threshold with respect to any calendar year (or stub period), the annual Incentive
Fee for such calendar year (or stub period) shall be calculated, for each year (or stub period), as (i) five percent (5%) of the
amount (expressed as a percentage but in no event greater than twenty-five percent (25%)) by which the Company’s annual total
shareholder return exceeds the Incentive Fee Threshold, multiplied by (ii) the Fully Diluted Equity Value (defined below)
of the Company at December 31 of such calendar year (or last day of the stub period, if applicable). The Company’s “Fully
Diluted Equity Value” shall be calculated by assuming that all units in the Operating Partnership, including long term
incentive partnership units of the Operating Partnership that have achieved economic parity with the common units of the Operating
Partnership, if any, are converted into common stock and that the per share value of each share of Company Common Stock is equal
to the closing price of the Company Common Stock on the last trading day of the year.

 

If this Agreement is
terminated on a day other than the last trading day of a calendar year, then the Company’s total shareholder return, the
Incentive Fee Threshold and the total shareholder return for each Peer Group Member will be calculated using the stock price of
Company Common Stock and each Peer Group Member’s common stock closing price on the last trading day immediately preceding
the date of termination of this Agreement, and the Incentive Fee, if any, shall be reduced proportionately based on number of days
in which this Agreement is in effect for such calendar year.

 

The Incentive Fee, if
any, subject to the FCCR Condition (defined below), shall be payable in arrears in three (3) equal annual installments with the
first installment payable on January 15 following the applicable year for which the Incentive Fee relates and on January 15 of
the next two (2) successive years. Notwithstanding the foregoing, upon any termination of this Agreement for any reason, any unpaid
Incentive Fee (including any Incentive Fee installment for the stub period ending on the termination date) shall become fully earned
and immediately due and payable without regard to the FCCR Condition defined below. Except in the case when the Incentive Fee is
payable on the date of termination of this Agreement, up to fifty percent (50%) of the Incentive Fee may be paid by the Company,
at the option of the Company, in shares of common stock of Ashford Trust or common units of the Operating Partnership, with the
balance payable in cash, unless at the time for payment of the Incentive Fee:

 

    -12- 

     

    

 

(i)               
the Advisor (or its Affiliates) owns common stock or common units in an amount (determined with reference to the closing
price of the Company’s common stock on the last trading day of the year or stub period) greater than or equal to three times
the Base Fee for the preceding four quarters,

 

(ii)              
payment in such securities would cause the Advisor to be subject to the provisions of the Investment Company Act, or

 

(iii)              payment in such securities would not be legally permissible for any reason; in which case, the entire Incentive Fee will
be paid by the Company in cash.

 

Upon the determination
of the Incentive Fee, except in the case of any termination of this Agreement in which case the Incentive Fee for the stub period
and all unpaid installments of an Incentive Fee shall be deemed earned and fully due and payable, each one-third installment of
the Incentive Fee shall not be deemed earned by Advisor or otherwise payable by the Company unless the Company, as of the December
31 immediately preceding the due date for the payment of the Incentive Fee installment, has a FCCR of .20x or greater (the “FCCR
Condition”). For purposes hereof, “FCCR” shall mean the Company’s fixed charge coverage ratio
being the ratio of Adjusted EBITDA for the previous four consecutive fiscal quarters to fixed charges, which includes all (i) interest
expense of the Company and its subsidiaries, (ii) regularly scheduled principal payments of the Company and its subsidiaries,
other than balloon or similar principal payments which repay indebtedness in full and payments under cash flow mortgages applied
to principal, and (iii) preferred dividends paid by the Company.

 

6.3.           
Equity Compensation. To incentivize employees, officers,
consultants, non-employee directors, Affiliates or representatives of the Advisor to achieve goals and business objectives of the
Company, as established by the Board of Directors, in addition to the Base Fee and the Incentive Fee set forth above, the Board
of Directors will have the authority to and shall make recommendations of annual equity awards to the Advisor or directly to employees,
officers, consultants, non-employee directors, Affiliates or representatives of the Advisor, based on the achievement by the Company
of certain financial or other objectives established by the Board of Directors.

 

The Company, at its option,
may choose to issue such compensation in the form of equity awards in Ashford Trust or the Operating Partnership, unless and to
the extent that receipt of such equity awards would adversely affect the Company’s status as a REIT, in which case, the equity
awards shall be limited to equity awards in the Operating Partnership. For a period of one year from the date of issuance, any
such equity awards in the Operating Partnership shall not be transferable, except by operation of law, without the written consent
of the General Partner which consent may be withheld in the sole and absolute discretion of the General Partner; provided, however,
the Advisor may assign, without the consent of the General Partner, such equity awards to employees, officers, consultants, non-employees,
directors, Affiliates or representatives of Advisor provided the one-year restriction on transfer shall remain applicable to such
assignee. In addition, except as expressly provided above, any transfer of such equity awards at any time must comply with the
transfer restrictions of the Operating Partnership’s partnership agreement or the Company’s charter and bylaws, as
applicable.

 

    -13- 

     

    

 

6.4.           
 Additional Services. If, and to the extent that,
the Company requests the Advisor to render services on behalf of the Company other than those required to be rendered by the Advisor
under this Agreement, such additional services shall be compensated separately at Market Rates as determined in accordance with
the process set forth in Section 9.3 below.

 

6.5.           
Fee Renegotiation. If the Advisor has given notice of its election to extend this Agreement in accordance with Section
12(b), either Party may then give written notice to the other Party at least one hundred eighty (180) days prior to the expiration
of the then current term to renegotiate the amount of Base Fee or Incentive Fee payable by the Company. Following receipt of a
renegotiation notice, each Party shall, for a period of up to sixty (60) days, use its commercially reasonable efforts to negotiate
in good faith a revised compensation amount or amounts. If the Parties are unable to agree on a revised Base Fee or Incentive Fee,
then the revised compensation amount shall be determined by an “Arbitration Panel” comprised of three members
all of whom have sufficient knowledge and experience of external asset management entities, the national hospitality lodging industry
generally and industry standards and market trends for similar advisory agreements in the United States. The Advisor shall have
the right to select one member of the panel (the “Advisor Panel Member”). The Company shall have the right to
select one member of the panel (the “Company Panel Member”). The third member of the panel shall be selected
by the mutual agreement of the Company Panel Member and the Advisor Panel Member; provided that in no event may the Arbitration
Panel reduce the multiplier for the Base Fee below 0.65% or increase the multiplier for the Base Fee above 0.75% during the term
of this Agreement, including all extensions. Further, in no event shall the Arbitration Panel reduce the Incentive Fee multiplier
below 0.04 or increase the Incentive Fee multiplier above 0.06 during the term of this Agreement. Each Party shall submit, in writing,
a statement summarizing its fee proposal and the underlying rationale therefor within ten (10) business days after the selection
of the Arbitration Panel is complete. If the Arbitration Panel requests an in person meeting or teleconference in addition to written
statements, the Parties shall use commercially reasonable efforts to attend, and the Parties shall promptly comply with all other
reasonable requests by the Arbitration Panel, including requests for information, books, records and similar items. The Arbitration
Panel shall make a final determination, and notify the parties in writing as soon as practicable but in no event later than thirty
(30) days after the panel’s decision no later than thirty (30) days after the Arbitration Panel is selected. The decision
of the Arbitration Panel shall be final, binding and non-appealable on the Parties thereto.

 

6.6.           
Temporary Deferral of Advisory Fees. In order to comply with the terms of a loan to the Company and certain of its
subsidiaries (the “Credit Facility”), and notwithstanding anything to the contrary herein, the Company has requested,
and the Advisor hereby agrees that the Advisor shall defer the portion, if any, of the Base Fee and the Incentive Fee in excess
of eighty percent (80%) of the amount of each such Fee that was paid by the Company to the Advisor for advisory services rendered
during 2019 (the “Deferred Advisory Fees”), until the later of: (a) two (2) years after the date of the Credit
Facility; and (b) all previously capitalized interest accruing on the Credit Facility has been paid in full. The Deferred Advisory
Fees shall be paid to the Advisor, in cash, promptly following the repayment by the Company of all amounts owed pursuant to the
terms of the Credit Facility to the lender thereunder.

 

    -14- 

     

    

 

7.
LIMITATION ON ACTIVITIES

 

Notwithstanding anything
in this Agreement to the contrary, the Advisor shall not take any action (unless directed by the Board of Directors, in which case
the Company shall indemnify and hold harmless Advisor and each of its officers, directors, employees, members, managers, agents
and representatives, from and against any and all claims, liabilities, costs and expenses threatened or incurred by Advisor or
any other indemnified person, which, directly or indirectly, results from the Advisor following the directive of the Board of Directors),
which would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, as amended, (c) knowingly and intentionally violate any law, rule or regulation of any governmental
body or agency having jurisdiction over the Company (provided that without adequate assurance of funding by the Company necessary
for compliance, Advisor shall not be responsible for such violations and the Company shall indemnify and hold harmless Advisor
and each of its officers, directors, employees, members, managers, agents and representatives, from and against all claims, liabilities,
costs and expenses threatened or incurred by Advisor, directly or indirectly, as a result of the Company’s failure to timely
fund adequate capital to comply with any applicable law, rule or regulation), (d) violate any of the rules or regulations
of any exchange on which the Company’s securities are listed or (e) violate the Company’s charter, bylaws or resolutions
of the Board of Directors, all as in effect from time to time.

 

The Advisor acknowledges
receipt of the Company’s Code of Business Conduct and Ethics, Code of Conduct for CEO, CFO and CAO, and Policy on Insider
Training, and agrees to require its employees who provide services to the Company to comply with such codes and policies.

 

8.
LIMITATION OF LIABILITY AND INDEMNIFICATION

 

8.1.           
Limitation on Liability. The Advisor shall have no
responsibility other than to render the services and take the actions described herein in good faith and with the exercise of due
care and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or recommendation
of the Advisor. The Advisor (including its officers, directors, managers, employees and members) will not be liable for any act
or omission by the Advisor (or its officers, directors, managers, employees and members) performed in accordance with and pursuant
to this Agreement, except by reason of acts constituting gross negligence, bad faith, willful misconduct or reckless disregard
of its duties under this Agreement.

 

8.2.           
Insurance Coverage of the Advisor. The Advisor shall
maintain errors and omissions insurance coverage and other insurance coverage in amounts which are customarily carried by asset
managers performing functions similar to those of the Advisor under this Agreement. No fidelity bond shall be required.

 

8.3.            Indemnification.
(a) The Company shall reimburse, indemnify and hold harmless the Advisor and its partners, directors, officers, stockholders,
managers, members, agents, employees and each other Person, if any, controlling the Advisor (each, an “Advisor
Indemnified Party”), to the full extent lawful, from and against any and all losses, claims, damages or liabilities
of any nature whatsoever (“Losses”) with respect to or arising from any acts or omission of the Advisor
(including ordinary negligence) in its capacity as such, except with respect to losses, claims, damages or liabilities with
respect to or arising out of such Advisor Indemnified Party’s gross negligence, bad faith or willful misconduct, or
reckless disregard of its duties under this Agreement.

 

    -15- 

     

    

 

(b)            The Advisor shall reimburse, indemnify and hold harmless the Company, and its partners, directors, officers, stockholders,
managers, members, agents, employees and each other Person, if any, controlling the Company (each, a “Company Indemnified
Party”; Advisor Indemnified Party and Company Indemnified Party are each sometimes hereinafter referred to as an “Indemnified
Party”) of and from any and all Losses in respect of or arising from (i) any acts or omissions of the Advisor constituting
bad faith, willful misconduct, gross negligence or reckless disregard of duties of the Advisor under this Agreement or (ii) any
claims by the Advisor’s employees relating to the terms and conditions of their employment by the Advisor.

 

(c)            Notwithstanding the indemnification provisions in Section 8.3(a) and Section 8.3(b) above, indemnification
will not be allowed for any liability arising from or out of a violation of state or federal securities laws by an Indemnified
Party. Indemnification will be allowed for settlements and related expenses of lawsuits alleging securities law violations, and
for expenses incurred in successfully defending such lawsuits, provided that a court either (i) approves the settlement and
finds that indemnification of the settlement and related costs should be made, or (ii) approves indemnification of litigation
costs if a successful defense is made. If indemnification is unavailable as a result of this Section 8.3(c), the indemnifying
party shall contribute to the aggregate losses, claims, damages or liabilities to which the Indemnified Party may be subject in
such amount as is appropriate to reflect the relative benefits received by each of the indemnifying party and the party seeking
contribution on the one hand and the relative faults of the indemnifying party and the party seeking contribution on the other,
as well as any other relevant equitable considerations.

 

(d)            Promptly after receipt by an Indemnified Party of notice of the commencement of any action, such Indemnified Party shall,
if a claim in respect thereof is to be made pursuant hereto, notify the indemnifying party in writing of the commencement thereof;
but the omission to so notify the indemnifying party shall not relieve it from any liability that it may have to any Indemnified
Party pursuant to this Section 8.3. In case any such action shall be brought against an Indemnified Party and it shall notify
the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the
extent that it shall wish, to assume the defense thereof, with counsel satisfactory to such Indemnified Party and, after notice
from the indemnifying party to such Indemnified Party of its election to assume the defense thereof, the indemnifying party shall
not be liable to such Indemnified Party under Section 8.3(a) or (b) hereof, as applicable, for any legal expenses
of other counsel or any of the expenses, in each case subsequently incurred by such Indemnified Party, unless (i) the indemnifying
party and the Indemnified Party shall have mutually agreed to the retention of such counsel, or (ii) the named parties to any such
Proceeding (including any impleaded parties) include both the indemnifying party and Indemnified Party and representation of both
parties by the same counsel would be inappropriate in the reasonable opinion of the Indemnified Party, due to actual or potential
differing interests between them. The obligations of the indemnifying party under this Section 8.3 shall be in addition
to any liability which the indemnifying party otherwise may have.

 

    -16- 

     

    

 

(e)              
 The Company shall be required to advance funds to an Indemnified Party for legal expenses and other costs incurred as a
result of any Proceeding if a claim in respect thereof is to be made pursuant hereto and if requested by such Indemnified Party
if (i) such Proceeding relates to or arises out of, or is alleged to relate to or arise out of or has been caused or alleged
to have been caused in whole or in part by, any action or inaction on the part of the Indemnified Party in the performance of its
duties or provision of its services on behalf of the Company; and (ii) the Indemnified Party undertakes to repay any funds
advanced pursuant to this Section 8.3(e) in cases in which such Indemnified Party would not be entitled to indemnification
under Section 8.3(a). If advances are required under this Section 8.3(e), the Indemnified Party shall furnish
the Company with an undertaking as set forth in clause (ii) of the preceding sentence and shall thereafter have the right to bill
the Company for, or otherwise require the Company to pay, at any time and from time to time after such Indemnified Party shall
become obligated to make payment therefor, any and all reasonable amounts for which such Indemnified Party is entitled to indemnification
under Section 8.3, and the Company shall pay the same within thirty (30) days after request for payment. In the event that
a determination is made by a court of competent jurisdiction or an arbitrator that the Company is not so obligated in respect of
any amount paid by it to a particular Indemnified Party, such Indemnified Party will refund such amount within sixty (60) days
of such determination, and in the event that a determination by a court of competent jurisdiction or an arbitrator is made that
the Company is so obligated in respect to any amount not paid by the Company to a particular Indemnified Party, the Company will
pay such amount to such Indemnified Party within thirty (30) days of such final determination, in either case together with interest
at the current prime rate plus two percent (2%) from the date paid until repaid or the date it was obligated to be paid until the
date actually paid.

 

9.
RELATIONSHIP OF ADVISOR AND COMPANY

 

9.1.           
Relationship. (a) The Company and the Advisor are
not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or
joint venturers. Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without limitation,
the rendering of advice to other Persons (including other REITs) and to the management of Braemar Hotels & Resorts Inc. (“Braemar”),
or other programs advised, sponsored or organized by the Advisor, Braemar or their Affiliates. The Company shall not revise its
Investment Guidelines to be directly competitive with all or any portion of the Investment Guidelines of Braemar as of November
19, 2013 or with all or any portion of the initial investment guidelines of any Spin-Off Company (as defined in Section 17).
The Company acknowledges that Braemar’s investment guidelines as of such date and as of the date hereof include hotel real
estate assets primarily consisting of equity or ownership interests, as well as debt investments when such debt is acquired with
the intent of obtaining an equity or ownership interest, in:

 

(i)               
full service and urban select service hotels with trailing twelve (12) month average RevPAR or anticipated twelve (12) month
average RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined with reference to the
most current Smith Travel Research reports, generally in the 20 most populous metropolitan statistical areas, as estimated by the
United States Census Bureau and delineated by the U.S. Office of Management and Budget;

 

    -17- 

     

    

 

(ii)      upscale,
upper-upscale and luxury hotels meeting the RevPAR criteria set forth in clause (i) above and situated in markets that may be
generally recognized as resort markets; and

 

(iii)     international hospitality assets predominantly focused in areas that are general destinations or in close proximity to major
transportation hubs or business centers, such that the area serves as a significant entry or departure point to a foreign country
or region of a foreign country for business or leisure travelers and meet the RevPAR criteria set forth in clause (i) above (after
any applicable currency conversion to U.S. dollars).

 

The Company further acknowledges
that any subsequent change to Braemar’s Investment Guidelines, including in connection with any future spin-off, carve-out,
split-off or other consummation of a transfer of a division or subset of assets for the purpose of forming a joint venture, a newly
created private platform or a new publicly traded company will not have any impact on or change the “Investment Guidelines
of Braemar as of November 19, 2013” for purposes of enforcing this Section 9. Except as described in this Section
9.1, this Agreement shall not limit or restrict the right of any manager, director, officer, employee or equityholder of the
Advisor or its Affiliates to engage in any other business or to render services of any kind to any other Person. The Advisor may,
with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant
therein. While the information and recommendations provided to the Company shall, in the Advisor’s reasonable and good faith
judgment, be appropriate under the circumstances, they may be different from those supplied to other persons.

 

(b)     To the extent the Advisor deems an investment opportunity suitable for recommendation, the Advisor must present any such
individual investment opportunity that satisfies the Company’s Initial Investment Guidelines (as set forth and subject to
the limitations in Section 9.2 below) to the Company, and the Board of Directors will have ten (10) business days to accept
such opportunity prior to it being available to Braemar or any other Person advised by the Advisor. Except as set forth in the
preceding sentence, the Company recognizes that it is not entitled to preferential treatment and is only entitled to equitable
treatment in receiving information, recommendations and other services. The Company shall have the benefit of the Advisor’s
best judgment and effort, and the Advisor shall not undertake any activities that, in its good faith judgment, will materially
and adversely affect the performance of its obligations under this Agreement.

 

(c)     The parties hereto agree and acknowledge that each of the Company, the Advisor and Braemar, as well as other companies that
the Advisor may advise in the future, may benefit from the strategic relationships between such companies and accordingly intend
to cooperate to achieve results, pursue transactions jointly or establish other strategic relationships that are in the best interests
of each such entities’ respective shareholders. From time to time, as may be determined by the independent directors of the
Advisor, the Company, Braemar and any other company subsequently advised by the Advisor, each such entity may provide financial
accommodations, guaranties, back-stop guaranties, and other forms of financial assistance to the other entities on terms that the
respective Independent Directors determine to be fair and reasonable.

 

    -18- 

     

    

 

9.2.          Conflicts
of Interest. (a) To minimize conflicts with Braemar and the Company, both of which are advised by the Advisor, Braemar
and the Company have identified the asset type that such party intends to select as its principal investment focus and to set
parameters for its real estate investments, including parameters primarily relating to RevPAR, segments, markets and other factors
or financial metrics. The asset type, together with the relevant parameters for investments are referred to as such Person’s
 “Investment Guidelines,” and the “Initial Investment Guidelines” of the Company are the
Investment Guidelines of the Company as set forth below. The Board of Directors may modify or supplement, after consultation with
Advisor, the Company’s Investment Guidelines upon written notice to the Advisor from time to time (subject, however, to
the prohibition in Section 9.1(a) restricting the Company from changing its Initial Investment Guidelines to be directly
competitive with all or any portion of Braemar’s Investment Guidelines as of November 19, 2013 or the initial investment
guidelines of any Spin-Off Company). As of the Effective Date, the Advisor advises Braemar and also advises the Company. The Advisor
may enter into an advising relationship with additional companies in the future. The Company hereby declares its Initial Investment
Guidelines to be all segments of the hospitality industry (including, without limitation, direct, joint venture and debt investments
in hotels, condo-hotels, time-shares and other hospitality related assets), with RevPAR criteria less than two times the then-current
U.S. average RevPAR.

 

When determining whether
an asset satisfies the Company’s Investment Guidelines, the Advisor shall make a good faith determination of projected RevPAR,
taking into account historical RevPAR as well as such additional considerations as conversions or reposition of assets, capital
plans, brand changes and other factors that may reasonably be forecasted to raise RevPAR after stabilization of such initiative.

 

(b)           If the Company materially modifies its Initial Investment Guidelines set forth in Section 9.2(a) above without the
written consent of the Advisor (except in connection with the establishment of a Spin-Off Company), the Advisor will not have an
obligation to present investment opportunities to the Company as set forth in Section 9.1(b) above at any time thereafter,
regardless of any subsequent modifications by the Company to its Investment Guidelines. Instead, the Advisor shall use its best
judgment in determining how to allocate investment opportunities to Persons (including, without limitation, Braemar, the Company
or other Spin-Off Companies) which Advisor advises, taking into account such factors as the Advisor deems relevant, in its discretion,
subject to any then existing or future obligations that the Advisor may have to other Persons. The Company acknowledges that if
it materially modifies its Initial Investment Guidelines, it will not be entitled to preferential treatment from the Advisor and
only will be entitled to the Advisor’s best judgment in allocating investment opportunities.

 

(c)           In
the event that the Advisor obtains a portfolio acquisition opportunity composed of asset types that satisfies the Initial
Investment Guidelines of the Company and Braemar or, as applicable, one or more other Persons
managed by the Advisor, the Advisor will endeavor in its good faith judgment to present such opportunity to the Board of
Directors, Braemar and, if applicable, such other Person(s) to the extent the portfolio can be reasonably divided by asset
type and acquired on the basis of such asset types in satisfaction of each Person’s Investment Guidelines. If the board
of directors of Braemar, the Board of Directors and, if applicable, such other Person(s) approve its portion of such
acquisition, Braemar, the Company and, if applicable, such other Person(s) will cooperate in good faith in completing the
acquisition of the portfolio. If the portfolio cannot be reasonably separated by asset type, the Advisor shall allocate
portfolio investment opportunities between the Company, Braemar and, if applicable, other Persons advised by the Advisor, in
a fair and equitable manner consistent with the investment objectives of the Company, Braemar and, if applicable, other
Persons advised by the Advisor. In making this determination, the Advisor will consider, in its sole discretion, the
Investment Guidelines and investment strategy of each entity with respect to the acquisition of properties, portfolio
concentrations, tax consequences, regulatory restrictions, liquidity requirements, leverage and other factors deemed
appropriate by the Advisor. Notwithstanding the foregoing, if the Company materially modifies its Initial Investment
Guidelines set forth in Section 9.2(a) above without the written consent of the Advisor, the Advisor will not have an
obligation to present portfolio acquisition opportunities to the Company as set forth in this Section 9.2(c) at any
time thereafter, regardless of any subsequent modifications by the Company to its Investment Guidelines. Instead, the Advisor
shall use its best judgment in determining how to allocate such portfolio investment opportunities to Persons (including
Braemar and the Company) which Advisor advises, taking into account such factors as the Advisor deems relevant, in its
discretion, subject to any then existing or future obligations that the Advisor may have to other Persons. In making the
allocation determination with respect to any portfolio opportunity, the Advisor will have no obligation to make any such
portfolio investment opportunity available to the Company.

 

    -19- 

     

    

 

9.3.           
Exclusive Provider of Products or Services. At any
time the Company desires to engage a third party for the performance of services or delivery of products (other than the services
contemplated by this Agreement) and provided that the Company has the right to control the decision on the award of the applicable
contract, the Advisor shall have the exclusive right to provide such service or product (assuming that Advisor has obtained any
required licensing needed, if any, to provide the service or product) at market rates for the provision of such services (“Market
Rates”). For purposes of this Agreement, Market Rates shall be determined by reference to fees charged by third party
providers who are not discounting such fees as a result of fees generated from other sources.

 

If the Company, after
consultation with the Advisor, intends to solicit bids or enter the market for a particular service or product, the Company shall
afford the Advisor the opportunity to provide such service or product. In any event, the Advisor shall be provided at least twenty
(20) days to elect to provide such service or product at Market Rates. If a majority of the Independent Directors of the Company
affirmatively vote that the proposed pricing of the Advisor is not at Market Rates, then the Company and Advisor shall engage a
consultant acceptable to the parties to determine the Market Rate for such services. If the consultant’s opinion reflects
fees lower than the pricing proposed by the Advisor, the Advisor will pay the expenses of the consultant and shall have the option
to provide the services or product at the Market Rate as determined by the consultant. If the consultant determines that the proposed
pricing by the Advisor is at or below Market Rates, then the Company shall pay the expenses of the consultant and shall engage
Advisor at the Market Rate as determined by the consultant.

 

9.4.            The
Ashford Name. The Advisor and its Affiliates have a proprietary interest in the trademarked “Ashford”
name and logo. The Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right
and license to use the “Ashford” name and logo during the term of this Agreement. Accordingly, and in recognition
of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services
for the Company, the Company will, within sixty (60) days after receipt of written request from the Advisor, cease to conduct
business under or use the name “Ashford” or any derivative thereof and the Company shall change its name and the
names of any of its subsidiaries to a name that does not contain the name “Ashford” or any other word or words
that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between
the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to any trademarks,
servicemarks, logos, or other marks necessary to remove any references to the word “Ashford.” Consistent with the
foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the
future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real
estate) and financial and service organizations having “Ashford” as a part of their name and using the
 “Ashford” logo, all without the need for any consent (and without the right to object thereto) by the
Company.

 

    -20- 

     

    

 

10.
BOOKS AND RECORDS

 

All books and records
compiled by the Advisor in the course of discharging its responsibilities under this Agreement shall be the property of the Company
and shall be delivered by the Advisor to the Company immediately upon any termination of this Agreement regardless of the grounds
for such termination (including, but not limited to, a breach by the Company of this Agreement); provided, however, that the Advisor
shall have reasonable access to such books and records to the extent reasonably necessary in connection with the conduct of its
services hereunder. The Advisor shall not maintain or assert any lien against or upon any of the books and records. During the
term of this Agreement, the books and records of the Company maintained by the Advisor shall be accessible for inspection by any
designated representative of the Company upon reasonable advance notice and during normal business hours.

 

11.
CONFIDENTIALITY

 

The Advisor shall keep
confidential any and all non-public information (“Confidential Information”), written or oral, obtained by it
in connection with the performance of services to the Company except that the Advisor may share such Confidential Information (i) with
Affiliates, officers, directors, employees, agents and other parties who need such Confidential Information for the Advisor to
be able to perform its duties hereunder, (ii) with appraisers, lenders, bankers and other parties as necessary in the ordinary
course of the Company’s business, (iii) in connection with any governmental or regulatory filings of the Company, filings
with the New York Stock Exchange or other applicable securities exchanges or markets, or disclosure or presentations to Company
investors (subject to compliance with Regulation FD), (iv) with governmental officials having jurisdiction over the Company
and (v) as required by law.

 

Nothing will
prevent the Advisor from disclosing Confidential Information (i) upon the order of any court or administrative agency,
(ii) upon the request or demand of, or pursuant to any law or regulation to, any regulatory agency or authority,
(iii) to the extent reasonably required in connection with the exercise of any remedy under this Agreement, or
(iv) to the Advisor’s legal counsel or independent auditors; provided, however that with respect to (i) and (ii),
so long as legally permissible, the Advisor will give notice to the Company so that the Company may seek, at its sole
expense, an appropriate protective order or waiver.

 

    -21- 

     

    

 

 

For purposes of this
Agreement, Confidential Information shall not include (i) information that is available to the public from a source other
than the Advisor, (ii) information that is released in writing by the Company to the public or to persons who are not under
similar obligations of confidentiality to the Company, or (iii) information that is obtained by the Advisor from a third-party
which, to the best of the Advisor’s knowledge, does not constitute a breach by such third-party of an obligation of confidence.

 

12.
TERM AND TERMINATION

 

(a)      Term. This Agreement shall be effective on the Effective Date and shall expire on the ten (10) year anniversary of
the Effective Date, subject to Section 12(b).

 

(b)      Extensions. This Agreement may be extended by the Advisor for up to seven (7) successive additional ten (10)-year
terms upon written notice to the Company, given at least two hundred and ten (210) days prior to the expiration of the then current
term, of the Advisor’s election to extend this Agreement on the same terms and conditions of this Agreement, subject to the
rights of the Parties under Section 6.5.

 

(c)      Termination
by the Company. This Agreement may be terminated by the Company, and no Termination Fee shall be due and payable by the Company
to the Advisor under the following circumstances:

 

(i)       immediately
upon providing written notice to the Advisor, following the Advisor’s conviction (including a plea or nolo contendere) of
a felony;

 

(ii)      immediately
upon providing written notice to the Advisor, if the Advisor commits an act of fraud against the Company, converts the funds of
the Company or acts in a manner constituting gross negligence in the performance of its material duties under this Agreement (including
a failure to act); provided, however, that if any such actions or omissions described in this Section 12(c)(ii) are caused
by an employee and/or an officer of the Advisor or an Affiliate of the Advisor and the Advisor takes all reasonable necessary
and appropriate action against such person and cures the damage caused by such actions or omissions within forty-five (45) days
of the Advisor’s actual knowledge of the commission or omission, the Company will not have the right to terminate this Agreement
pursuant to this Section 12(c)(ii);

 

(iii)     immediately
upon providing written notice to the Advisor, if a Bankruptcy Event occurs with respect to the Advisor; provided, the Advisor
shall notify the Company no later than thirty (30) days following the Advisor’s knowledge of a Bankruptcy Event; or

 

    	 	-22-	 

     

    

 

(i)         upon
the entry by a court of competent jurisdiction of a final non-appealable order awarding monetary damages to the Company based
on a finding that the Advisor committed a material breach or default of a material term, condition, obligation or covenant of
this Agreement, which breach or default had a Material Adverse Effect, but only where the Advisor fails to pay the monetary
damages in full within sixty (60) days of the date when the monetary judgment becomes final and non-appealable. For the
avoidance of doubt, if the Advisor pays the monetary judgment in full within sixty (60) days of the judgment becoming final
and non-appealable, the Company shall not have the right to terminate this Agreement. Notwithstanding the above, if the
Advisor notifies the Company that the Advisor is unable to pay any judgment for monetary damages in full within sixty (60)
days of when the judgment becomes final and non-appealable, the Company may not terminate this Agreement if, within the
60-day period, the Advisor delivers a promissory note to the Company having a principal amount equal to the unpaid balance of
the judgment and bearing interest at eight percent (8.00%) per annum, which note shall mature on the 12 month anniversary of
the date that the court's judgment becomes final and non-appealable. The Company may terminate this Agreement if the Advisor
fails to pay all principal and interest due under the note by the maturity date of the note.

 

(ii)        Prior
to initiating any Proceeding claiming a material breach or default by the Advisor, the Company shall give written notice of the
default or breach to the Advisor specifying the nature of the default or breach and providing the Advisor with an opportunity
to cure the default or breach within no less than sixty (60) days of notice, or if the default or breach is not reasonably susceptible
to cure within sixty (60) days, such additional cure period as is reasonably necessary to cure the default or breach so long as
the Advisor is diligently and in good faith pursuing the cure.

 

(d)             Company
Change of Control

 

   (i)         This Agreement may be terminated, subject to the requirements of Section 12(e) below, by either party effective upon
the occurrence of closing of a transaction contemplated by a Change of Control Agreement, completion of a Change of Control Tender,
or occurrence of a Voting Control Event; provided that the party desiring to terminate shall give written notice of intent to terminate
to the other party on a date (I) no earlier than the date on which: (1) the Company enters into a Change of Control Agreement;
(2) the Company’s Board of Directors recommends that the Company’s stockholders accept the offer made in a Change of
Control Tender; or (3) a Voting Control Event occurs; and (II) no later than two (2) days after closing of a transaction contemplated
by a Change of Control Agreement, completion of a Change of Control Tender, or occurrence of a Voting Control Event. This Agreement
shall terminate at the time set forth in Section 12(e) hereof.

 

   (ii)        (I)
The Termination Fee shall, subject to Section 19, be due and payable by the Company to the Advisor upon the later of
closing of a transaction contemplated by a Change of Control Agreement, completion of a Change of Control Tender, or
occurrence of a Voting Control Event or the notice of termination provided under Section 12(d)(i) above; (II) at the
time (A) the Company enters into a Change of Control Agreement; (B) a Change of Control Tender is initiated and the
Company’s Board of Directors recommends acceptance by the Company’s stockholders; or (C) a Voting Control Event
occurs; the Advisor may, and hereby is authorized to, in the name of and on behalf of the Company, transfer cash of the
Company maintained in bank, brokerage or similar accounts established by the Advisor for the Company pursuant to Section
4 to the Termination Fee Escrow Account in an amount equal to the (i) Termination Fee; plus (ii) the Repayment (as
defined in the ERFP Agreement); plus (iii) all accrued fees and any other amounts that would be due and payable by the
Company to the Advisor pursuant to the Agreement if the Termination Payment Time had occurred concurrently with the events
described in (A)-(C) above. The amount required to be deposited into the Termination Fee Escrow Account shall be referred to
herein as the “Required Amount.” Notwithstanding the above, if the amount to be deposited into the
Termination Fee Escrow Account would cause the Company’s remaining cash and cash equivalents to be less than the
Working Capital Reserve, then the Company may reduce the Required Amount by an amount of cash equal to the difference between
the Working Capital Reserve and cash and cash equivalents that would be remaining on the Company’s balance sheet
prepared in accordance with GAAP outside of the Termination Fee Escrow Account. All amounts so deposited shall be retained in
escrow pursuant to the terms of the Termination Fee Escrow Agreement. The Company and the Advisor shall equally share all
costs of the Termination Fee Escrow Account including the reasonable fees and expenses of each
Escrow Agent.

 

    	 	-23-	 

     

    

 

  (iii)         Notwithstanding
Section 12(d)(ii)(II) above, if, in the case of an event described in Section 12(d)(i)(2)-(3), the Company does
not deposit cash equal to the Required Amount into the Termination Fee Escrow Account, then the Company shall deliver to the Escrow
Agent for the Termination Fee Escrow Account, the Letter of Credit; provided that the Company has deposited an amount of cash
equal to at least fifty percent (50%) of the Required Amount. The Advisor shall have the right and power, without any further
approval of the Company to cause the Escrow Agent to draw on the Letter of Credit, provided that any draws on the Letter of Credit
shall remain in the Termination Fee Escrow Account.

 

  (iv)         If the face amount of the Letter of Credit is not equal to at least the aggregate of
the Required Amount less the cash deposited into the Termination Fee Escrow Account, then, subject to Section 19, to secure
prompt and complete payment of any deficit, the Company shall pledge and grant to Advisor a continuing first priority security
interest in and lien upon the Company’s right, title and interest, to and in real property, personal property and other assets
acceptable to the Advisor owned by the Company, and having a book value of no less than one hundred twenty percent (120%) of the
deficit (collectively, the “Collateral”). In addition, the Company shall execute and deliver all further instruments
and documents, and take all further action that may be reasonably necessary or reasonably desirable, or that Advisor may reasonably
request (including without limitation the filing of any fee and leasehold mortgages), in order to perfect and protect the security
interest in the Collateral described above to enable Advisor to exercise and enforce its rights and remedies hereunder with respect
to any of the Collateral. The Company hereby irrevocably authorizes Advisor to file in any filing office in any Uniform Commercial
Code jurisdiction any initial financing statements and amendments thereto that provide any information required by part 5 of Section
9 of the Uniform Commercial Code or such other jurisdiction for the sufficiency or filing office acceptance of any, financing statement
or amendment relating to the Collateral. The Company agrees to furnish any such information to Advisor promptly upon Advisor’s
request.

 

(e)          Termination
Obligations: Termination Fee Escrow Account.

 

(i)           Any
amounts due and payable in connection with any termination of this Agreement pursuant to this Section 12 shall become due
and payable at the time of termination (each such time, a “Termination Payment Time”). No termination of this
Agreement shall become effective unless and until any and all amounts due and payable in connection with a termination pursuant
to this Section 12 have been fully paid.

 

    	 	-24-	 

     

    

 

(ii)          At
the Termination Payment Time, the Company shall pay to the Advisor (I) all Base Fees, Incentive
Fees and expenses reimbursable pursuant to Section 5 due and owing through the date of termination, including, without
limitation, any unpaid Incentive Fee installments which shall, upon any termination become immediately earned by Advisor and due
from the Company (collectively, “Accrued Fees”), and (II) the Repayment pursuant to Section 2.02(a) of the
ERFP Agreement (the “ERFP Repayment”). In addition to the Accrued Fees and the ERFP Repayment, upon the occurrence
of the closing of a Company Change of Control, giving effect to the transfer of amounts deposited in the Termination Fee Escrow
Account, the Company shall, subject to Section 19, pay to the Advisor at the Termination Payment Time the Termination Fee
(and, for the avoidance of doubt, any working capital previously set aside pursuant to Section 12(d)(iv) to the extent
needed to pay any balance on the Termination Fee).

 

(iii)         At
the Termination Payment Time, the Advisor shall have the right and authority to notify the
Escrow Agent for the Termination Fee Escrow Account that the Termination Payment Time has occurred and, subject to Section
19, to cause the Escrow Agent to disburse to the Advisor, by cashier’s check or wire transfer, the cash funds, including
any cash generated by drawing on the Letter of Credit either prior to or at the Termination Payment Time, in the Termination Fee
Escrow Account at the applicable Termination Payment Time without any action required on the part of the Company. The Advisor
shall also have the right and power, without any further approval of the Company to exercise, by foreclosure or otherwise, any
rights in the Collateral, pursuant to the security interest granted to the Advisor therein. Any cash in the Termination Fee Escrow
Account that exceeds the amounts due and payable under Section 12(e)(ii) shall be disbursed by the Escrow Agent to the
Company, by cashier’s check or wire transfer. The Advisor shall retain all rights to pursue collection and payment of any
amounts that are not otherwise paid through the exercise of rights under the Termination Fee Escrow Account, the Letter of Credit
and against the Collateral. If the applicable Change of Control Agreement is terminated, the Change of Control Tender is withdrawn
or fails to be consummated or the Voting Control Event does not occur, then, upon notice from the Company to the Advisor, the
Advisor shall, as soon as reasonably practicable, notify in writing the Escrow Agent for the Termination Fee Escrow Account and
the Escrow Agent for the Termination Fee Escrow Account shall disburse to the Company, for deposit into one of the bank, brokerage
or similar accounts established by the Advisor for the Company pursuant to Section 4, the cash (net of any applicable fees
and expenses associated with the Termination Fee Escrow Account) in the Termination Fee Escrow Account. Further, the Advisor shall
release all liens on the Collateral, cause the Letter of Credit to terminate by its terms and the Company's obligations hereunder
shall remain in full force and effect.

 

(iv)         Immediately
at the Termination Payment Time, and subject to the Advisor’s rights under Section 4 and the full payment of all
other amounts due and payable pursuant to this Section 12(e), the Advisor shall: (i) pay over all money collected and held
for the account of the Company, provided that the Advisor shall be permitted to deduct any amount required to pay amounts due
and payable pursuant to this Section 12(e); (ii) deliver a full accounting of all accounts held by the Advisor in the name
of or on behalf of the Company; and (iii) deliver all documents, files, contracts and assets of the Company in the possession
or control of the Advisor or its Affiliates to the Company; and (iv) cooperate with and assist the Company in executing
an orderly transition of the management of the Company’s assets to a new advisor.

 

    	 	-25-	 

     

    

 

  (v)              
 In connection with any termination pursuant to Section 12(d)(i), if requested by the Company, the Advisor may agree,
in its sole discretion, to provide, transition services agreed to by the parties for a period of up to thirty (30) days in consideration
for the payment of Base Fees and Incentive Fees equal to the monthly average Base Fee and Incentive Fee due and payable or paid
for the three (3) months prior to the month in which the Termination Payment Time occurs. During any period of continued service
pursuant to this Section 12(e)(v), the Advisor shall also be entitled to reimbursements of costs and expenses required by
Section 5.

 

(f)             No
Solicitation. In the event of any termination of this Agreement, the Company (and any of its Affiliates) shall not, without
the consent of the Advisor, solicit for employment, employ or otherwise retain (directly or indirectly) any employee of the Advisor
(or any of its Affiliates) for a period of two (2) years.

 

(g)            Survival
of Specific Provisions. The following Sections, including the rights and obligations contained therein, shall survive the
termination of this Agreement:

 

(i)             Section
5;

 

(ii)            Section
6;

 

(iii)           Section
8;

 

(iv)           Section
9.4;

 

(v)            Section
11; and

 

(vi)           Section
12.

 

13.Certain
definitions.

 

The following terms,
as used in this Agreement, are defined as follows:

 

“Adjusted EBITDA,”
with respect to the Advisor, means Advisor’s GAAP net income, including all income and earnings of Advisor and any of its
affiliates and subsidiaries from providing any service or product to the Company, the Operating Partnership or any of their affiliates
or subsidiaries, plus income taxes, depreciation, amortization and all one-time expenses and other adjustments that are made and
reported by the Advisor to calculate adjusted EBITDA.

 

“Bankruptcy
Event” means, with respect to any Person, (A) the filing by the Person of a voluntary petition seeking liquidation,
reorganization, arrangement, or readjustment, in any form, of its debts under Title 11 of the United States Code or any other
U.S. federal or state or foreign insolvency law, or the Person's filing an answer consenting to or acquiescing in any
petition, (B) the making by the Person of any assignment for the benefit of its creditors, (C) the expiration of sixty (60)
days after the filing of an involuntary petition under Title 11 of the United State Code, an application for the appointment
of a receiver for a material portion of the assets of the Person, or an involuntary petition seeking liquidation,
reorganization, arrangement or readjustment of its debts under any other U.S. federal or state or foreign insolvency law,
provided that the petition shall not have been vacated, set aside or stayed within such 60-day period, or (D) the entry
against the Person of a final and non-appealable order for relief under any bankruptcy, insolvency or similar law now or
hereinafter in effect.

 

    	 	-26-	 

     

    

 

"Change of Control
Agreement" means a letter of intent or a definitive agreement contemplating transactions which, if consummated, would
constitute a Company Change of Control.

 

“Change of Control
Tender” means a tender offer by any “person” or “group” (within the meaning of Section 13(d)
of the Exchange Act) pursuant to which such person or group would, if such tender offer were completed, become the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act) directly or indirectly, of securities of the Company representing thirty-five
percent (35%) or more of the shares of voting stock of the Company then outstanding.

 

“Company Change
of Control” shall mean any of the following events:

 

(i)            the occurrence of a (i) Voting Control Event or (ii) Change of Control Tender;

 

(ii)           the consummation of any merger, reorganization, business combination or consolidation of the Company, or one of its respective
Subsidiaries, as applicable, with or into any other company, other than a merger, reorganization, business combination or consolidation
which would result in the holders of the voting securities of the Company outstanding immediately prior thereto holding securities
which represent immediately after such merger, reorganization, business combination or consolidation more than fifty percent (50%)
of the combined voting power of the voting securities of the Company or the surviving company or the parent of such surviving company;
or

 

(iii)          (x) from the Effective Date until the first anniversary of the Effective Date, the consummation of a sale or disposition
by the Company of forty percent (40%) of the gross book value of the Company’s assets, exclusive of assets sold or contributed
to a platform also advised by the Advisor; provided that the assets listed on Exhibit B which were foreclosed upon or otherwise
returned to the Company’s lenders prior to the Effective Date shall be deemed to be assets sold or disposed from the Effective
Date until the first anniversary of the Effective Date for purposes of this clause (x), or (y) commencing after the first anniversary
of the Effective Date, the consummation of a sale or disposition by the Company of twenty percent (20%) of the gross book value
of the Company’s assets over any one-year period or the consummation of a sale or disposition by the Company of thirty percent
(30%) of the gross book value of the Company’s assets over any three-year period, exclusive in each case of assets sold or
contributed to a platform also advised by the Advisor.

 

“Company Common
Stock” means common stock of the Company, $0.01 par value per share.

 

    	 	-27-	 

     

    

 

“Escrow Agent”
means the agent under the Termination Fee Escrow Account.

 

“Letter of Credit”
means an irrevocable standby letter of credit issued by a recognized commercial bank having net assets of not less than five hundred
million ($500,000,000) to the Escrow Agent, that the Escrow Agent at the request of the Advisor may draw upon, conditioned only
upon the presentation of the original letter of credit and a signed statement that the Advisor is entitled to cause the Escrow
Agent to draw, in the maximum aggregate amount equal to the difference between (1) the Required Amount; and (2) the amount
of cash deposited into the Termination Fee Escrow Account by the Company.

 

“Liquidated
Damages Amount” means the amount that is the greater of:

 

(i)      1.1
times the greater of:

 

(A)          12 multiplied by the Net Earnings of the Advisor for the 12-month period preceding the LTM Period; or

 

(B)           the
earnings multiple (calculated as the total enterprise value on the trading day immediately preceding the day on which a Liquidated
Damages Event occurs, divided by the Advisor’s most recently reported Adjusted EBITDA) for the Advisor’s common stock
for the LTM Period, multiplied by the Net Earnings of the Advisor for the LTM Period; or

 

(C)           the
simple average of the earnings multiples for each of the three (3) fiscal years preceding the fiscal year in which the Liquidated
Damages Event occurs (calculated as the total enterprise value on the last trading day of each of the three (3) preceding fiscal
years divided by, in each case, the Advisor’s Adjusted EBITDA for the same periods), multiplied by the Net Earnings of the
Advisor for the LTM Period, plus

 

(ii)     an
additional amount such that the total net amount received by Advisor after the reduction by state and federal income taxes at
an assumed combined rate of forty percent (40%) on the sum of the amounts described in (i) and (ii) shall equal the amount described
in (i).

 

“Liquidated
Damages Event” means any action or omission by the Company that individually or when considered with other actions or
omissions previously taken or omitted by the Company constitute a repudiation by the Company of this Agreement depriving the Advisor
of the benefit that the Advisor could reasonably anticipate from full performance by the Company of its obligations hereunder.

 

“LTM Period”
means the 12-month period ending on the last day of the fiscal quarter prior to which the Liquidated Damages Event occurs.

 

“Material Adverse
Effect" means a material adverse effect on the Company's business, results of operations or financial condition.

 

    	 	-28-	 

     

    

 

“Net Earnings”
is equal to the (A) Advisor’s reported Adjusted EBITDA for the 12-month period preceding the termination of this Agreement
(adjusting assuming the Agreement was in place for the full 12-month period if it otherwise was not), as reported in the Advisor’s
earnings releases less (B) the Advisor’s pro forma Adjusted EBITDA assuming this Agreement was not in place during such period
plus (C) all EBITDA (Net Income (per GAAP) plus interest expenses, income taxes, depreciation and amortization) of Advisor and
any of its affiliates and subsidiaries from providing any service or product to the Company, the Operating Partnership or any of
their affiliates or subsidiaries, exclusive of EBITDA directly resulting from this Agreement.

 

“Ownership Limit”
has the meaning ascribed to such term in the Company’s charter in effect as of the date of this Agreement.

 

“Proceedings”
means all disputes or controversies of any kind including without limitation all charges, complaints,  grievances, actions,
causes of action, suits, rights, demands, claims, lawsuits, other legal actions or litigation, arbitration, investigations (internal
or external), inquiries or other proceedings.

 

“Termination
Fee” means:

 

(i)     1.1
times the greater of:

 

(A)        12 multiplied by the Net Earnings of the Advisor for the 12-month period preceding the termination date of this Agreement;
or

 

(B)         the earnings multiple (calculated as the total enterprise value on the trading day immediately preceding the day the Termination
Notice is given to the Advisor divided by the Advisor’s most recently reported Adjusted EBITDA) for the Advisor’s common
stock for the 12-month period preceding the termination date of this Agreement multiplied by the Net Earnings of the Advisor for
the 12-month period preceding the termination date of this Agreement; or

 

(C)         the simple average of the earnings multiples for each of the three (3) fiscal years preceding the termination of this Agreement
(calculated as the total enterprise value on the last trading day of each of the three (3) preceding fiscal years divided by, in
each case, the Advisor’s Adjusted EBITDA for the same periods), multiplied by the Net Earnings of the Advisor for the 12-month
period preceding the termination date of this Agreement, plus

 

(ii)    an
additional amount such that the total net amount received by Advisor after the reduction by state and federal income taxes at
an assumed combined rate of forty percent (40%) on the sum of the amounts described in (i) and (ii) shall equal the amount described
in (i).

 

“Termination
Fee Escrow Account” means the account established by the parties with an Escrow Agent as contemplated by Section 12(d)(ii).

 

    	 	-29-	 

     

    

 

“Termination
Fee Escrow Agreement” means that certain Escrow Agreement among the Advisor, the Company, and the Escrow Agent, which
Termination Fee Escrow Agreement sets forth certain terms and conditions governing the Termination Fee Escrow Account.

 

“Termination
Notice” means a written notice sent by a party to the other party and pursuant to which the delivering party thereof
provides notice to the receiving party of its election to terminate this Agreement in accordance with the terms hereof.

 

“Voting Control
Event” means (A) any “person” or “group” (within the meaning of Section 13(d) of the Exchange
Act) other than (1) the Company or any of its Subsidiaries, (2) any employee benefit plan of the Company or any of its Subsidiaries,
(3) a company owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as the ownership
of the Company, or (4) an underwriter temporarily holding securities pursuant to an offering of such securities, becoming the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing
thirty-five percent (35%) or more of the shares of voting stock of the Company then outstanding and the Company fails to enforce
the Ownership Limit within five (5) business days of the person or group becoming the beneficial owner or a court of competent
jurisdiction enjoins enforcement of the Ownership Limit; or (B) any person or group enters into an agreement which if consummated
would result in the person or group becoming the beneficial owner of securities representing thirty-five percent (35%) or more
of the shares of the Company’s voting stock and either: (1) the Board of Directors waives the Ownership Limit; or (2)
a court of competent jurisdiction enjoins enforcement of the Ownership Limit.

 

“Working Capital
Reserve” means, as of any date of determination, (i) twenty million dollars ($20,000,000) plus (ii) an amount equal to
(A) 0.04 multiplied by (B) (1) the Company’s Gross Asset Value as of such date of determination less (2) the Company’s
Gross Asset Value as of the effective date of the ERFP Agreement.

 

14.
LIQUIDATED AND OTHER DAMAGES

 

(a)               Upon
the entry of a final non-appealable order from a court of competent jurisdiction that a Liquidated Damages Event has
occurred, the Company shall pay to the Advisor the Liquidated Damages Amount. The parties intend that the payment of the
Liquidated Damages Amount constitutes compensation, and not a penalty. The parties acknowledge and agree that the occurrence
of a Liquidated Damages Event would deprive the Advisor of the benefits that the Advisor could reasonably anticipate from
full performance by the Company of its obligations hereunder and that the damages incurred by the Advisor if a Liquidated
Damages Event occurs are uncertain and incapable or very difficult to accurately estimate, and that the Liquidated Damages
Amount is a reasonable estimate of the anticipated or actual harm caused by a Liquidated Damages Event and not a penalty. The
parties agree and acknowledge that without the agreements embodied by this Section 14, the parties would not enter
into this Agreement. Upon payment by the Company of the (i) Liquidated Damages Amount less any outstanding amounts owed by
the Advisor to the Company as a result of a judgment contemplated by Section 12(c) and, to the extent not otherwise
included in the Liquidated Damages Amount, (ii) (A) all costs and expenses reimbursable pursuant to Section 5 through
termination due to the Liquidated Damages Event; plus (B) any other amounts then due and payable hereunder including but not
limited to any interest that has accrued but not been paid pursuant to Section 14(b) to the Advisor, the parties shall
have no further obligations hereunder, and this Agreement shall be terminated; provided that during the pendency of any
action (including any appeals related thereto) brought by the Advisor claiming that a Liquidated Damages Event has occurred,
the Company shall continue to pay or reimburse the Advisor all amounts due or reimbursable hereunder including any
obligations imposed on the Company under Section 12 hereof.

 

    	 	-30-	 

     

    

 

 

(b)           If the Company fails to timely pay any amount due pursuant to Section 5, Section
6, Section 12 or Section 14(a) hereof, the Company shall pay interest at a rate equal to eight percent (8%)
per annum, increasing 200 basis points at the end of each 90 day period that amounts remain outstanding (or such lesser rate
as is the maximum permitted by applicable law) and compounded annually on the amounts due and payable for the period from the
date the amount became due and payable through the date the Advisor receives payment for all outstanding amounts including
interest thereon.

 

(c)           The
party that prevails in any Proceeding to enforce rights and obligations under this Agreement shall be entitled to be
reimbursed by the other party for the reasonable fees and expenses of counsel in connection with the Proceeding.

 

(d)           All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by
the Advisor or the Company, as applicable, of any right or remedy does not preclude the exercise of any other right or
remedy, at law or in equity, that may now or subsequently be available to the Advisor or the Company.

 

15.
NOTICES

 

Any notices, instructions
or other communications required or contemplated by this Agreement shall be deemed to have been properly given and to be effective
upon delivery if delivered in person, sent electronically or upon receipt if sent by courier service. All such communications to
the Company shall be addressed as follows:

 

Ashford Hospitality Trust, Inc.

14185 Dallas Parkway, Suite 1100

Dallas, TX 75254

Attn: Chief Executive Officer

 

With a copy to:

Ashford Hospitality Trust, Inc.

14185 Dallas Parkway, Suite 110

Dallas, TX 75254

Attn: General Counsel

 

    -31-

     

    

 

All such communications to the
Advisor shall be addressed as follows:

Ashford Hospitality Advisors LLC

14185 Dallas Parkway, Suite 1100

Dallas, TX 75254

Attn: Chief Executive Officer

 

With a copy to:

Ashford Hospitality Advisors LLC

14185 Dallas Parkway, Suite 1100

Dallas, TX 75254

Attn: General Counsel

 

Either party hereto may designate a different
address by written notice to the other party delivered in accordance with this Section 15.

 

16.
DELEGATION OF RESPONSIBILITY AND ASSIGNMENT

 

Notwithstanding anything
in this Agreement, the Advisor shall have the power to delegate all or any part of its rights and powers to manage and control
the business and affairs of the Company to such officers, employees, Affiliates (other than to Ashford Hospitality Services LLC
(“Ashford Services”) or its subsidiaries), agents and representatives of the Advisor or the Company as it may
deem appropriate. Any authority delegated by the Advisor to any other person shall be subject to the limitations on the rights
and powers of the Advisor specifically set forth in this Agreement or the charter of the Company.

 

The Advisor may assign
this Agreement to any Affiliate that remains under the control of the Advisor, other than Ashford Services or its subsidiaries,
without the consent of the Company.

 

The Advisor may also
assign this Agreement or pledge and grant a security interest in such Agreement to any lender of the Advisor without the consent
of the Company; provided, however, that in advance of such assignment the Advisor and such lender must enter
into definitive documentation, pursuant to which the Company shall be an express third-party beneficiary, providing that (i) in
the event the lender is required pursuant to the terms of such loan agreement to provide to the Advisor notice of any default or
potential default by the Advisor under such loan agreement, the lender shall simultaneously provide such notice to the Company,
(ii) the Advisor shall promptly notify the Company upon the Advisor’s reasonable belief that it is in default under any such
loan agreement, (iii) the Company shall have an explicit right to cure, for the account of the Advisor, all actual or potential
defaults of the Advisor within the longer of (A) seven (7) business days of such default and (B) the number of days Advisor has
to cure such default pursuant to the underlying loan agreement and (iv) the lender shall not take an action, or fail to take any
action, that would result in the Company failing to maintain its status as a REIT under the Internal Revenue Code.

 

Any assignment contrary
to this Section 16 shall be null and void ab initio.

 

    -32-

     

    

 

17.
FUTURE SPIN-OFF BY THE COMPANY

 

If the Company elects
to spin-off, carve-out, split-off or otherwise consummate a transfer of a division or subset of assets for the purpose of forming
a joint venture, a newly created private platform or a new publicly traded company to hold such division or subset of assets constituting
a distinct asset type and/or Investment Guidelines (collectively, a “Spin-Off Company”), the Company and Advisor
agree that such Spin-Off Company shall be externally advised by the Advisor pursuant to an advisory agreement containing substantially
the same material terms set forth in this Agreement.

 

18.
COMPANY COVENANTS

 

(a) Consolidated Tangible
Net Worth. Commencing with the first fiscal quarter beginning after June 30, 2023, the Company shall not permit its Consolidated
Tangible Net Worth, as of the end of any fiscal quarter, to be less than the sum of (A) one billion dollars ($1,000,000,000) and
(B) an amount equal to seventy-five percent (75%) of the net equity proceeds received by the Company by reason of the issuance
and sale of equity interests in the Company after June 30, 2023.

 

(b) Dividend Payments.
Without the Advisor’s consent, delivered in writing to the Board of Directors, the Company shall not declare or pay (A) any
dividend or distribution (whether in cash, securities or other property) with respect to any common shares or common units of the
Company, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account
of the purchase, redemption, retirement, acquisition, cancellation or termination of any common shares or common units of the Company,
or on account of any return of capital to the Company’s common stockholders or common unitholders (or the equivalent person
thereof) (a “Distribution”), that (x) would exceed the Company’s current quarterly dividend of $0.12 per
common share and common unit and (y) on an annualized basis would exceed a dividend rate of nine point nine percent (9.9%) (or
such higher annualized dividend rate, if applicable, equal to the average annualized dividend rate of the Peer Group over the ninety
(90) days immediately preceding such Distribution) or (B) any Distribution for the purpose of avoiding, hindering or delaying the
payment by the Company of the Termination Fee hereunder; provided, however, that nothing herein shall prohibit
the Company from declaring or paying any dividend or distribution which, based on the advice of counsel, is necessary for the Company
to maintain its REIT status. For the purposes of this Section 18(b), a Distribution in securities or other property shall
be valued at the fair market value thereof (i.e., the price at which a willing buyer and a willing seller would purchase and sell
the securities or other property, neither under any compulsion to buy or sell).

 

(c) Investment Guidelines.
(A) The Company’s Investment Guidelines pursuant to Section 9.2 of this Agreement will be deemed modified, without
further action required by the parties hereto, to exclude select service assets, meaning, generally, not full service assets and
(B) the Company shall be deemed to have granted to the Advisor, without further action required by the parties hereto, the right
to advise and sponsor a select service platform including sourcing select service assets for such platform to the exclusion of
the Company (provided that the Company shall not be required to convey to or otherwise include in the Advisor’s select service
platform any select service assets owned by the Company).

 

    -33-

     

    

 

(d) For purposes of this
Section 18, “Consolidated Tangible Net Worth” shall mean, as of any date of determination, the consolidated
shareholders’ equity of the Company on that date, as determined in accordance with GAAP, minus the amount of the Company’s
consolidated intangible assets under GAAP, plus the amount of the Company’s consolidated accumulated depreciation; provided,
however, that there shall be excluded from the calculation of “Consolidated Tangible Net Worth” any effects
resulting from the application of FASB ASC No. 715: Compensation—Retirement Benefits. Consolidated Tangible Net Worth shall
be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of intangibles
pursuant to State of Financial Accounting Standards number 141.

 

19.
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ADVISOR.

 

The Advisor represents
and warrants to, and covenants and agrees with, the Company as follows:

 

(a)             The
Advisor, taking into account its own personnel and the personnel available to it through its Affiliates, has access to
personnel trained and experienced in the business of acquisitions, leasing of hotels, asset management, financing, the
ownership and dispositions of hotels and such other areas as may be necessary and sufficient to enable the Advisor to perform
its obligations under this Agreement.

 

(b)             The Advisor shall comply with all laws, rules, regulations and ordinances applicable to the performance of its obligations
under this Agreement.

 

Neither the Advisor nor
any of its Affiliates is party to or otherwise bound by or, during the term of this Agreement (including any extension thereof),
will become party to or otherwise bound by, any agreement that would restrict or prevent (i) the Advisor from performing any obligation
contemplated by this Agreement or (ii) the Company from operating its business as proposed to be conducted, including, without
limitation, acquiring any hotel in any geographic market in the United States or any foreign country.

 

Notwithstanding anything
in this Agreement to the contrary, in the event that, on or prior to the first anniversary of the Effective Date, the Company enters
into the Credit Facility, then the Advisor hereby agrees to execute and deliver to the lenders thereunder such documents as are
reasonably necessary to subordinate to such loan this Agreement, including without limitation, the Advisor’s interest in
the Termination Fee or Liquidated Damages Amount to which the Advisor may become entitled hereunder, subject to such lenders granting
to the Advisor non-disturbance rights that are acceptable to the Advisor in its reasonable discretion.

 

20.
PROJECT MANAGEMENT FEES

 

With respect to that
certain Master Project Management Agreement (the “Master Project Management Agreement”) dated as of August 8,
2018, by and among TRS, the Operating Partnership, RI Manchester Tenant Corporation, CY Manchester Tenant Corporation and Premier
Project Management, LLC and any successor or related project management agreement with Premier Project Management, LLC and its
subsidiaries or Affiliates, the Company and the Advisor agree as follows:

 

    -34-

     

    

 

(a)             the initial term of the Master Project Management Agreement shall commence on the Effective Date and expire on the ten
(10)-year anniversary of the Effective Date; and

 

(b)             the
project management and related fees to be paid by the Company or its Affiliates to Premier Project Management, LLC shall be as
set forth on Exhibit C.

 

21.
GOVERNING LAW

 

This Agreement shall
be governed by and construed in accordance with the laws of the State of Texas, without regard to the conflict of laws principals
thereof.

 

22.
ENTIRE AGREEMENT

 

This Agreement reflects
the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes and replaces all agreements
between the Company and the Advisor with respect to the subject matter hereof.

 

23.
SUCCESSORS AND ASSIGNS

 

This Agreement shall
inure to the benefit of and be binding upon the parties to this Agreement and their respective successors and permitted assigns,
and no other Person shall acquire or have any right under, or by virtue of, this Agreement. The Company shall be entitled to assign
this Agreement to any successor to all or substantially all of its assets, rights and/or obligations; the Advisor shall have the
right to assign this Agreement to any Affiliate (as such term is defined in Section 2).

 

24.
AMENDMENT, MODIFICATIONS AND WAIVER

 

This Agreement hereto
shall not be altered or otherwise amended in any respect, except pursuant to an instrument in writing signed by the parties hereto;
provided, that any additions to or deletions from the Peer Group Members identified in Exhibit A shall only be made with the approval
of a majority of the Independent Directors of the Company. The waiver by a party of a breach of any provisions of this Agreement
shall not operate or be construed as a waiver of any subsequent breach.

 

25.
COUNTERPARTS

 

This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be an original, and all of which shall constitute one and
the same agreement.

 

(SIGNATURES BEGIN ON NEXT PAGE)

 

* * * * *

 

    -35-

     

    

 

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

 

	 	ASHFORD TRUST:
	 	 	 
	 	Ashford Hospitality Trust, Inc.
	 	 	 
	 	By:	/s/ J. Robison Hays, III
	 	 	Name:	 J. Robison Hays, III
	 	 	Title:	 President and Chief Executive Officer

 

[Signature page to the Second Amended and Restated Advisory
Agreement]

 

    

     

    

 

	 	OPERATING PARTNERSHIP:
	 	 	 
	 	Ashford Hospitality Limited Partnership
	 	 	 
	 	By: Ashford OP General Partner LLC, its general partner 
	 	 	 
	 	By:	/s/ J. Robison Hays, III 
	 	 	Name:	 J. Robison Hays, III
	 	 	Title:	 President and Chief Executive Officer
	 	 	 
	 	TAXABLE REIT SUBSIDIARY:
	 	 	 
	 	Ashford TRS Corporation
	 	 	 
	 	By:	/s/ Deric S. Eubanks
	 	 	Name:	 Deric S. Eubanks
	 	 	Title:	 President

 

[Signature page to the Second Amended and Restated Advisory
Agreement]

 

    

     

    

 

	 	ADVISOR:
	 	 	 
	 	Ashford Hospitality Advisors LLC
	 	 	 
	 	By:	/s/ Jeremy Welter 
	 	 	Name:	 Jeremy Welter
	 	 	Title:	 President and Chief Operating Officer
	 	 	 
	 	Ashford Inc.
	 	 	 
	 	By:	/s/ Jeremy Welter 
	 	 	Name:	 Jeremy Welter
	 	 	Title:	 President and Chief Operating Officer

 

[Signature page to the Second Amended and Restated Advisory
Agreement]

 

    

     

    

 

Exhibit A

 

Peer Group Members

 

Chatham Lodging Trust (CLDT)

Diamondrock Hospitality Co. (DRH)

Hersha Hospitality Trust (HT)

Host Hotels & Resorts, Inc. (HST)

RLJ Lodging Trust (RLJ)

Summit Hotel Properties, Inc. (INN)

Sunstone Hotel Investors Inc. (SHO)

 

    

     

    

 

Exhibit B

 

Returned Assets

 

Hampton Columbus

Hampton Pittsburg Waterfront

Hampton Pittsburg Meadowland

Homewood Suites Pittsburg
Southpointe

Hampton Phoenix Airport

Courtyard Boston Billerica

Courtyard Wichita

Residence Inn Stillwater

Embassy Suites New York

W Minneapolis

Courtyard Ft. Lauderdale

Courtyard Louisville

Residence Inn Buena Vista

 

    

     

    

 

Exhibit C

 

Project Management and Related Fees

 

Project Management – four
percent (4%) of total project costs; if total project costs exceed five percent (5%) of the hotel’s gross revenue (the “Threshold”),
then the project management fees on the portion of the total project costs in excess of the Threshold are reduced to three percent
(3%) of the total project costs

 

Architecture – six point five
percent (6.5%) of total construction costs

 

Construction Management –
ten percent (10%) of total construction costs (for projects without a general contractor)

 

Interior Design – six percent
(6%) of the purchase price of FF&E designed or selected by Premier

 

FF&E Purchasing – eight
percent (8%) of the FF&E purchase price; if the purchase price exceeds two million dollars ($2,000,000) for a single property
in a calendar year, then the purchasing fee is reduced to six percent (6%) of the FF&E purchase price in excess of two million
dollars ($2,000,000).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]