Document:

Credit Agreement

 Exhibit 10.1 
  
 EXECUTION VERSION 

  
 CREDIT AGREEMENT 
  
 Dated as of July 8, 2005 
  
 by and among 
  
 DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP, 
 as Borrower, 
  
 DIAMONDROCK HOSPITALITY COMPANY, 
 as Parent, 
  
 each of 
 WACHOVIA CAPITAL MARKETS, LLC, 
 CITIGROUP GLOBAL MARKETS, INC. 
 and 

BANC OF AMERICA SECURITIES LLC, 
 as Tri-Lead
Arrangers 
  
 and 
  
 as Tri-Bookrunners, 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent, 
  
 each of 
 CITICORP NORTH AMERICA, INC.

 and 
 BANK OF AMERICA, N.A.,

 as Syndication Agents, 
  
 and 
  
 THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO 
 AND THEIR ASSIGNEES PURSUANT TO
SECTION 13.5., 
 as Lenders 
  

 TABLE OF CONTENTS 
  

					
	Article I. Definitions	  	1
	 Section 1.1.
	  	Definitions	  	1
	 Section 1.2.
	  	General; References to Times	  	25
	 Section 1.3.
	  	Financial Attributes of Non-Wholly Owned Subsidiaries	  	25
		
	Article II. Credit Facility	  	26
			
	 Section 2.1.
	  	Revolving Loans	  	26
	 Section 2.2.
	  	Swingline Loans	  	26
	 Section 2.3.
	  	Letters of Credit	  	28
	 Section 2.4.
	  	Rates and Payment of Interest on Loans	  	32
	 Section 2.5.
	  	Number of Interest Periods	  	33
	 Section 2.6.
	  	Repayment of Loans	  	33
	 Section 2.7.
	  	Prepayments	  	33
	 Section 2.8.
	  	Continuation	  	34
	 Section 2.9.
	  	Conversion	  	35
	 Section 2.10.
	  	Notes	  	35
	 Section 2.11.
	  	Voluntary Reductions of the Commitment	  	36
	 Section 2.12.
	  	Extension of Termination Date	  	36
	 Section 2.13.
	  	Expiration or Maturity Date of Letters of Credit Past Termination Date	  	36
	 Section 2.14.
	  	Amount Limitations	  	36
	 Section 2.15.
	  	Increase of Commitments	  	37
		
	Article III. Payments, Fees and Other General Provisions	  	37
			
	 Section 3.1.
	  	Payments	  	37
	 Section 3.2.
	  	Pro Rata Treatment	  	38
	 Section 3.3.
	  	Sharing of Payments, Etc.	  	39
	 Section 3.4.
	  	Several Obligations	  	39
	 Section 3.5.
	  	Minimum Amounts	  	39
	 Section 3.6.
	  	Fees	  	40
	 Section 3.7.
	  	Computations	  	41
	 Section 3.8.
	  	Usury	  	41
	 Section 3.9.
	  	Agreement Regarding Interest and Charges	  	41
	 Section 3.10.
	  	Statements of Account	  	41
	 Section 3.11.
	  	Defaulting Lenders	  	42
	 Section 3.12.
	  	Taxes	  	43
		
	Article IV. Collateral Properties	  	45
			
	 Section 4.1.
	  	Eligibility of Properties	  	45
	 Section 4.2.
	  	Conditions Precedent to a Property Becoming a Collateral Property	  	46
	 Section 4.3.
	  	Release of Collateral Properties	  	48
	 Section 4.4.
	  	Frequency of Calculations of Borrowing Base	  	49
	 Section 4.5.
	  	Frequency of Appraisals	  	50
	 Section 4.6.
	  	Additional Appraisals Required under Applicable Law	  	51

  

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	Article V. Yield Protection, Etc.	  	51
			
	 Section 5.1.
	  	Additional Costs; Capital Adequacy	  	51
	 Section 5.2.
	  	Suspension of LIBOR Loans	  	52
	 Section 5.3.
	  	Illegality	  	53
	 Section 5.4.
	  	Compensation	  	53
	 Section 5.5.
	  	Treatment of Affected Loans	  	54
	 Section 5.6.
	  	Change of Lending Office	  	54
	 Section 5.7.
	  	Assumptions Concerning Funding of LIBOR Loans	  	54
	 Section 5.8.
	  	Affected Lenders	  	55
		
	Article VI. Conditions Precedent	  	55
			
	 Section 6.1.
	  	Initial Conditions Precedent	  	55
	 Section 6.2.
	  	Conditions Precedent to All Loans and Letters of Credit	  	58
		
	Article VII. Representations and Warranties	  	59
			
	 Section 7.1.
	  	Representations and Warranties	  	59
	 Section 7.2.
	  	Survival of Representations and Warranties, Etc.	  	64
		
	Article VIII. Affirmative Covenants	  	65
			
	 Section 8.1.
	  	Preservation of Existence and Similar Matters	  	65
	 Section 8.2.
	  	Compliance with Applicable Law and Material Contracts	  	65
	 Section 8.3.
	  	Maintenance of Property	  	65
	 Section 8.4.
	  	Conduct of Business	  	66
	 Section 8.5.
	  	Insurance	  	66
	 Section 8.6.
	  	Payment of Taxes and Claims	  	66
	 Section 8.7.
	  	Visits and Inspections	  	66
	 Section 8.8.
	  	Use of Proceeds; Letters of Credit	  	67
	 Section 8.9.
	  	Environmental Matters	  	67
	 Section 8.10.
	  	Books and Records	  	68
	 Section 8.11.
	  	Further Assurances	  	68
	 Section 8.12.
	  	REIT Status	  	68
	 Section 8.13.
	  	Exchange Listing	  	68
	 Section 8.14.
	  	New Subsidiaries/Guarantors/Pledges	  	68
	 Section 8.15.
	  	Release of Guarantors and Pledges	  	69
	 Section 8.16.
	  	Acquisition of Vail Parking Deck	  	70
		
	Article IX. Information	  	70
			
	 Section 9.1.
	  	Quarterly Financial Statements	  	70
	 Section 9.2.
	  	Year-End Statements	  	71
	 Section 9.3.
	  	Compliance Certificate	  	71
	 Section 9.4.
	  	Other Information	  	71
		
	Article X. Negative Covenants	  	74
			
	 Section 10.1.
	  	Financial Covenants	  	74
	 Section 10.2.
	  	Restricted Payments	  	75

  

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	 Section 10.3.
	  	Indebtedness	  	76
	 Section 10.4.
	  	Investments Generally	  	76
	 Section 10.5.
	  	Liens; Negative Pledges; Other Matters	  	77
	 Section 10.6.
	  	Merger, Consolidation, Sales of Assets and Other Arrangements	  	78
	 Section 10.7.
	  	Fiscal Year	  	79
	 Section 10.8.
	  	Modifications to Material Contracts	  	79
	 Section 10.9.
	  	Modifications of Organizational Documents	  	79
	 Section 10.10.
	  	Transactions with Affiliates	  	79
	 Section 10.11.
	  	ERISA Exemptions	  	79
		
	Article XI. Default	  	80
			
	 Section 11.1.
	  	Events of Default	  	80
	 Section 11.2.
	  	Remedies Upon Event of Default	  	83
	 Section 11.3.
	  	Remedies Upon Default	  	84
	 Section 11.4.
	  	Allocation of Proceeds	  	84
	 Section 11.5.
	  	Collateral Account	  	85
	 Section 11.6.
	  	Performance by Agent	  	86
	 Section 11.7.
	  	Rights Cumulative	  	86
		
	Article XII. The Agent	  	87
			
	 Section 12.1.
	  	Authorization and Action	  	87
	 Section 12.2.
	  	Agent’s Reliance, Etc.	  	87
	 Section 12.3.
	  	Notice of Defaults	  	88
	 Section 12.4.
	  	Wachovia as Lender	  	88
	 Section 12.5.
	  	Approvals of Lenders	  	89
	 Section 12.6.
	  	Lender Credit Decision, Etc.	  	89
	 Section 12.7.
	  	Collateral Matters	  	90
	 Section 12.8.
	  	Indemnification of Agent	  	91
	 Section 12.9.
	  	Successor Agent	  	91
	 Section 12.10.
	  	Titled Agents	  	92
		
	Article XIII. Miscellaneous	  	92
			
	 Section 13.1.
	  	Notices	  	92
	 Section 13.2.
	  	Expenses	  	93
	 Section 13.3.
	  	Setoff	  	94
	 Section 13.4.
	  	Litigation; Jurisdiction; Other Matters; Waivers	  	94
	 Section 13.5.
	  	Successors and Assigns	  	95
	 Section 13.6.
	  	Amendments	  	98
	 Section 13.7.
	  	Nonliability of Agent and Lenders	  	99
	 Section 13.8.
	  	Confidentiality	  	100
	 Section 13.9.
	  	Indemnification	  	100
	 Section 13.10.
	  	Termination; Survival	  	102
	 Section 13.11.
	  	Severability of Provisions	  	103
	 Section 13.12.
	  	GOVERNING LAW	  	103
	 Section 13.13.
	  	Patriot Act	  	103
	 Section 13.14.
	  	Counterparts	  	103

  

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	 Section 13.15.
	  	Obligations with Respect to Loan Parties	  	103
	 Section 13.16.
	  	Limitation of Liability	  	104
	 Section 13.17.
	  	Entire Agreement	  	104
	 Section 13.18.
	  	Construction	  	104

  

			
	 SCHEDULE 1.1(A)
	  	List of Loan Parties
	 SCHEDULE 1.1(B)
	  	List of Pledgors
	 SCHEDULE 4.1.
	  	Collateral Properties
	 SCHEDULE 7.1.(b)
	  	Ownership Structure
	 SCHEDULE 7.1.(f)
	  	Title to Properties; Liens
	 SCHEDULE 7.1.(g)
	  	Indebtedness and Guaranties
	 SCHEDULE 7.1.(h)
	  	Material Contracts
	 SCHEDULE 7.1.(i)
	  	Litigation
		
	 EXHIBIT A
	  	Form of Assignment and Acceptance Agreement
	 EXHIBIT B
	  	Form of Assignment of Leases and Rents
	 EXHIBIT C
	  	Form of Environmental Indemnity Agreement
	 EXHIBIT D
	  	Form of Guaranty
	 EXHIBIT E
	  	Form of Notice of Borrowing
	 EXHIBIT F
	  	Form of Notice of Continuation
	 EXHIBIT G
	  	Form of Notice of Conversion
	 EXHIBIT H
	  	Form of Notice of Swingline Borrowing
	 EXHIBIT I
	  	Form of Property Management Contract Assignment
	 EXHIBIT J
	  	Form of Security Deed
	 EXHIBIT K
	  	Form of Swingline Note
	 EXHIBIT L
	  	Form of Revolving Note
	 EXHIBIT M
	  	Form of Opinion of Counsel
	 EXHIBIT N
	  	Form of Compliance Certificate
	 EXHIBIT O
	  	Form of Pledge Agreement
	 EXHIBIT P
	  	Form of Assignment of Contracts, Documents and Rights
	 EXHIBIT Q
	  	Form of Assignment of Franchise Agreement

  

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 THIS CREDIT AGREEMENT (this “Agreement”) dated as of July 8, 2005 by and among DIAMONDROCK
HOSPITALITY LIMITED PARTNERSHIP, a limited partnership formed under the laws of the State of Delaware (the “Borrower”), DIAMONDROCK HOSPITALITY COMPANY, a corporation formed under the laws of the State of Maryland (the “Parent”),
each of the financial institutions initially a signatory hereto together with their assignees pursuant to Section 13.5.(d), WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent, WACHOVIA CAPITAL MARKETS, LLC, CITIGROUP GLOBAL MARKETS INC. and BANC OF
AMERICA SECURITIES LLC, as Tri-Lead Arrangers (each a “Tri-Lead Arranger”) and as Tri-Bookrunners (each a “Tri-Bookrunner”), and each of CITICORP NORTH AMERICA, INC. and BANK OF AMERICA, N.A., as Syndication Agents (each a
“Syndication Agent”). 
  
 WHEREAS, the Agent and the
Lenders desire to make available to the Borrower a revolving credit facility in the initial amount of $75,000,000, which will include a $25,000,000 letter of credit subfacility and a $20,000,000 swingline subfacility, on the terms and conditions
contained herein. 
  
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows: 
  
 ARTICLE I. DEFINITIONS 
  
 Section 1.1. Definitions. 
  
 In addition to terms defined elsewhere herein, the following terms shall have the following meanings for the purposes of this Agreement: 
  
 “Accession Agreement” means an Accession Agreement
substantially in the form of Annex I to the Guaranty. 
  
 “Additional Costs” has the meaning given that term in Section 5.1. 
  
 “Adjusted EBITDA” means, for any given period, (a) the EBITDA of the Parent and its Subsidiaries determined on a consolidated basis for such period, minus (b) FF&E Reserves for such period.

  
 “Adjusted LIBOR” means, with respect to each
Interest Period for any LIBOR Loan, the rate obtained by dividing (a) LIBOR for such Interest Period by (b) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained with respect
to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category of liabilities which includes deposits by
reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United States of America to residents of the United
States of America). Any change in such maximum rate shall result in a change in Adjusted LIBOR on the date on which such change in such maximum rate becomes effective. 
  

 “Affiliate” means any Person (other than the Agent or any Lender): (a) directly or
indirectly controlling, controlled by, or under common control with, the Borrower; (b) directly or indirectly owning or holding ten percent (10.0%) or more of any Equity Interest in the Borrower; or (c) ten percent (10.0%) or more of whose voting
stock or other Equity Interest is directly or indirectly owned or held by the Borrower. For purposes of this definition, “control” (including with correlative meanings, the terms “controlling”, “controlled by” and
“under common control with”) means the possession directly or indirectly of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or
otherwise. The Affiliates of a Person shall include any officer or director of such Person. In no event shall the Agent or any Lender be deemed to be an Affiliate of the Borrower. 
  
 “Agent” means Wachovia Bank, National Association, as contractual representative for the Lenders under the
terms of this Agreement. 
  
 “Agreement Date”
means the date as of which this Agreement is dated. 
  
 “Applicable Law” means all applicable provisions of constitutions, statutes, rules, regulations and orders of all governmental bodies and all orders and decrees of all courts, tribunals and arbitrators. 
  
 “Applicable Margin” means the percentage rate set forth
below corresponding to the ratio of Total Indebtedness to Total Asset Value as determined in accordance with Section 10.1. in effect at such time: 
  

									
	Level

	  	 Leverage Ratio

	  	Applicable Margin
for LIBOR Loans

	 	 	Applicable Margin
for Base Rate Loans

	 
	1	  	Less than 0.65 to 1.00	  	1.45	%	 	0.75	%
	2	  	Greater than or equal to 0.65 to 1.00 but less than 0.70 to 1.00	  	1.75	%	 	1.00	%
	3	  	Greater than or equal to 0.70 to 1.00	  	2.00	%	 	1.25	%

  
 The Applicable Margin shall be
determined by the Agent from time to time, based on the ratio of Total Indebtedness to Total Asset Value as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 9.3. Any adjustment to the Applicable
Margin shall be effective (i) in the case of a Compliance Certificate delivered in connection with quarterly financial statements of the Borrower delivered pursuant to Section 9.3., as of the date 45 days following the end of the last day of the
applicable fiscal period covered by such Compliance Certificate, (ii) in the case of a Compliance Certificate delivered in connection with annual financial statements of the Parent delivered pursuant to Section 9.3., as of the date 120 days
following the end of the last day of the applicable fiscal period covered by such Compliance Certificate, and (iii) in the case of any other Compliance Certificate, as of the date 5 Business Days following the Agent’s request for such
Compliance Certificate. Notwithstanding the foregoing, for the period from the Effective Date through but excluding the date on which the Agent first determines the Applicable Margin as set forth above, the Applicable Margin shall be 

  

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determined based on Level 1. Thereafter, the Applicable Margin shall be adjusted from time to time as set forth above. If the Borrower shall fail to deliver
a compliance certificate within the time period required under Section 9.3., the Applicable Margin shall be determined based on Level 3 until the Borrower delivers the required Compliance Certificate, in which case the Applicable Margin shall be
determined as provided above effective as of the date of delivery of such Compliance Certificate. 
  
 “Appraisal” means, in respect of any Property, an M.A.I. appraisal commissioned by and addressed to the Agent (acceptable to the Agent as
to form, substance and appraisal date), prepared by a professional appraiser acceptable to the Agent, having at least the minimum qualifications required under Applicable Law governing the Agent and the Lenders, including FIRREA, and determining the
“as is” market value of such Property as between a willing buyer and a willing seller. 
  
 “Appraised Value” means, with respect to any Property, the “as is” market value of such Property as reflected in the then most
recent Appraisal of such Property as the same may have been reasonably adjusted by the Agent based upon its internal review of such Appraisal which is based on criteria and factors then generally used and considered by the Agent in determining the
value of similar properties, which review shall be conducted prior to acceptance of such Appraisal by the Agent. 
  
 “Approved Fund” means any Person (other than a natural Person) (a) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business and (b) that is administered or managed by a Lender, an affiliate of a Lender or an entity or an affiliate of an entity that administers
or manages a Lender. 
  
 “Approved Interest
Reserve” means an interest reserve established by the Borrower and satisfactory to the Agent and the Requisite Lenders in their sole and absolute discretion for a Development Property. 
  
 “Arranger” means Wachovia Capital Markets, LLC. 

 
 “Assignee” has the meaning given that term in Section
13.5.(d). 
  
 “Assignment and Acceptance
Agreement” means an Assignment and Acceptance Agreement among a Lender, an Assignee and the Agent, substantially in the form of Exhibit A. 
  
 “Assignment of Contracts, Documents and Rights” means an Assignment of Contracts, Documents and Rights executed by a Loan Party in favor
of the Agent for the benefit of the Lenders, substantially in the form of Exhibit P or otherwise in form and substance satisfactory to the Agent. 
  
 “Assignment of Franchise Agreement” means an Assignment of Franchise Agreement executed by a Loan Party in favor of the Agent for the
benefit of the Lenders, substantially in the form of Exhibit Q or otherwise in form and substance satisfactory to the Agent. 
  

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 “Assignment of Leases and Rents” means an Assignment of Leases and Rents executed by a
Loan Party in favor of the Agent for the benefit of the Lenders, substantially in the form of Exhibit B or otherwise in form and substance satisfactory to the Agent. 
  
 “Base Rate” means the per annum rate of interest equal to the greater of (a) the Prime Rate or (b) the
Federal Funds Rate plus one-half of one percent (0.5%). Any change in the Base Rate resulting from a change in the Prime Rate or the Federal Funds Rate shall become effective as of 12:01 a.m. on the Business Day on which each such change occurs. The
Base Rate is a reference rate used by the Lender acting as the Agent in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged by the Lender acting as the Agent or any other Lender on any extension
of credit to any debtor. 
  
 “Base Rate Loan”
means a Revolving Loan bearing interest at a rate based on the Base Rate. 
  
 “Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group. 
  
 “Borrower” has the meaning set forth in the introductory paragraph hereof. 
  
 “Borrowing Base” means an amount equal to 65% of the sum of the Collateral Property Values of the Collateral Properties. Notwithstanding
the foregoing, a Collateral Property shall be excluded from calculations of the Borrowing Base if (a) at any time such Property shall cease to be an Eligible Property, (b) the Agent shall cease to hold a valid and perfected first priority Lien in
such Collateral Property, or (c) there shall have occurred and be continuing an event of default (beyond applicable notice and cure periods) under the Security Deed, Assignment of Leases and Rents or other Security Document relating to such
Collateral Property. The Borrowing Base shall equal $0 if at any time there are fewer than 2 Collateral Properties. 
  
 “Borrowing Base Certificate” means a report certified by the chief financial officer of the Borrower, setting forth the calculations
required to establish the Borrowing Base for all Collateral Properties as of a specified date, all in form and detail satisfactory to the Agent. 
  
 “Business Day” means (a) any day other than a Saturday, Sunday or other day on which banks in Charlotte, North Carolina or New York, New
York are authorized or required to close and (b) with reference to a LIBOR Loan, any such day that is also a day on which dealings in Dollar deposits are carried out in the London interbank market. 
  
 “Capitalized Lease Obligation” means an obligation under a
lease that is required to be capitalized for financial reporting purposes in accordance with GAAP. The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected on a balance sheet of
the applicable Person prepared in accordance with GAAP as of the applicable date. 
  

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 “Cash Equivalents” means: (a) securities issued, guaranteed or insured by the United
States of America or any of its agencies with maturities of not more than one year from the date acquired; (b) certificates of deposit with maturities of not more than one year from the date acquired issued by a United States federal or state
chartered commercial bank of recognized standing, or a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country,
acting through a branch or agency, which bank has capital and unimpaired surplus in excess of $500,000,000 and which bank or its holding company has a short-term commercial paper rating of at least A-2 or the equivalent by S&P or at least P-2 or
the equivalent by Moody’s; (c) reverse repurchase agreements with terms of not more than seven days from the date acquired, for securities of the type described in clause (a) above and entered into only with commercial banks having the
qualifications described in clause (b) above; (d) commercial paper issued by any Person incorporated under the laws of the United States of America or any State thereof and rated at least A-2 or the equivalent thereof by S&P or at least P-2 or
the equivalent thereof by Moody’s, in each case with maturities of not more than one year from the date acquired; and (e) investments in money market funds registered under the Investment Company Act of 1940, which have net assets of at least
$500,000,000 and at least 85% of whose assets consist of securities and other obligations of the type described in clauses (a) through (d) above. 
  
 “Collateral” means any real or personal property directly or indirectly securing any of the Obligations or any other obligation of a
Person under or in respect of any Loan Document to which it is a party, and includes, without limitation, all “Collateral” under and as defined in any Security Deed, all “Contract Documents” as defined in any Assignment of
Contracts, Documents and Rights, any “Management Agreement” as defined in any Property Management Contract Assignment, any “Franchise Agreement” as defined in any Assignment of Franchise Agreement, all “Leases and
Rents” as defined in any Assignment of Leases and Rents, all “Collateral” under and as defined in the Pledge Agreement and all other property subject to a Lien created by a Security Document. 
  
 “Collateral Account” means a special deposit account
established by the Agent pursuant to Section 11.5. and under its sole dominion and control. 
  
 “Collateral Property” means a Property which the Agent and the Requisite Lenders have agreed to include in calculations of the Borrowing Base pursuant to Section 4.1. and for which each of the
conditions set forth in Section 4.2. have been satisfied. 
  
 “Collateral Property Value” means, with respect to a Collateral Property, an amount equal to the lesser of (a) the Appraised Value of such Collateral Property and (b) the sum of (x) the cost of such Collateral Property,
plus (y) the acquisition capital budget set at the time such Collateral Property was acquired by the applicable Loan Party but only to the extent funds in the amount of such budget have been deposited with the Agent, the franchisor of the applicable
hotel brand or another third party acceptable to the Agent. 
  
 “Commitment” means, as to each Lender (other than the Swingline Lender), such Lender’s obligation (a) to make Revolving Loans pursuant to Section 2.1., (b) to issue (in the 

  

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case of the Lender then acting as Agent) or participate in (in the case of the other Lenders) Letters of Credit pursuant to Section 2.3.(a) and 2.3.(i),
respectively, (but in the case of the Lender acting as the Agent excluding the aggregate amount of participations in the Letters of Credit held by the other Lenders), and (c) to participate in Swingline Loans pursuant to Section 2.3.(e), in each
case, in an amount up to, but not exceeding, the amount set forth for such Lender on its signature page hereto as such Lender’s “Commitment Amount” or as set forth in the applicable Assignment and Acceptance Agreement, as the same may
be reduced from time to time pursuant to Section 2.11. or as appropriate to reflect any assignments to or by such Lender effected in accordance with Section 13.5. 
  
 “Commitment Percentage” means, as to each Lender, the ratio, expressed as a percentage, of (a) the amount
of such Lender’s Commitment to (b) the aggregate amount of the Commitments of all Lenders; provided, however, that if at the time of determination the Commitments have terminated or been reduced to zero, the “Commitment Percentage” of
each Lender shall be the Commitment Percentage of such Lender in effect immediately prior to such termination or reduction. 
  
 “Compliance Certificate” has the meaning given that term in Section 9.3. 
  
 “Continue”, “Continuation” and “Continued” each refers to the
continuation of a LIBOR Loan from one Interest Period to another Interest Period pursuant to Section 2.8. 
  
 “Convert”, “Conversion” and “Converted” each refers to the conversion of a Revolving Loan of one Type
into a Revolving Loan of another Type pursuant to Section 2.9. 
  
 “Credit Event” means any of the following: (a) the making (or deemed making) of any Loan, (b) the Conversion of a Loan and (c) the issuance of a Letter of Credit. 
  
 “Default” means any of the events specified in Section
11.1., whether or not there has been satisfied any requirement for the giving of notice, the lapse of time, or both. 
  
 “Defaulting Lender” has the meaning given that term in Section 3.11. 
  
 “Derivatives Contract” means any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or
any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement. Not in limitation of the
foregoing, the term “Derivatives Contract” includes any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any 

  

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other master agreement, including any such obligations or liabilities under any such master agreement. 
  
 “Derivatives Termination Value” means, in respect of any one
or more Derivatives Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Derivatives Contracts, as determined
based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Derivatives Contracts (which may include the Agent or any Lender). 
  
 “Development Property” means, as of any date of determination, any Property on which the existing building
or other improvements are undergoing renovation and redevelopment that will either (a) disrupt the occupancy of at least 15% of the rentable rooms of such Property or (b) temporarily reduce the Net Operating Income attributable to such Property by
more than 15% as compared to the immediately preceding comparable prior period. A Property shall cease to be a Development Property once all improvements related to the renovation or redevelopment of such Property have been substantially completed.

  
 “Dollars” or “$” means the
lawful currency of the United States of America. 
  
 “Domestic Subsidiary” means any Subsidiary that is incorporated or organized under the laws of any state of the United States or the District of Columbia. 
  
 “EBITDA” means, with respect to a Person for any period (without duplication): (a) net income (loss) of
such Person for such period determined on a consolidated basis (before minority interests), exclusive of the following (but only to the extent included in determination of such net income (loss)): (i) depreciation and amortization expense; (ii)
Interest Expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; and (v) other non-cash charges (other than non-cash charges that constitute an accrual of a reserve for future cash payments) plus (b) such
Person’s pro rata share of EBITDA of its Unconsolidated Affiliates. EBITDA shall be adjusted to remove any impact from (x) non-cash amortization of stock grants to members of the Parent’s management, (y) straight line rent leveling
adjustments required under GAAP and (z) amortization of intangibles pursuant to Statement of Financial Accounting Standards number 141. 
  
 “Effective Date” means the later of: (a) the Agreement Date; and (b) the date on which all of the conditions precedent set forth in
Section 6.1. shall have been fulfilled or waived in writing by the Requisite Lenders. 
  
 “Eligible Assignee” means any Person who is: (i) currently a Lender or an affiliate of a Lender; (ii) an Approved Fund; (iii) a commercial bank, trust, trust company, insurance company, investment
bank or pension fund organized under the laws of the United States of America, or any state thereof, and having total assets in excess of $5,000,000,000; (iv) a savings 

  

 - 7 - 

 
and loan association or savings bank organized under the laws of the United States of America, or any state thereof, and having a tangible net worth of at
least $500,000,000; or (v) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, and having total assets in
excess of $10,000,000,000, provided that such bank is acting through a branch or agency located in the United States of America. Notwithstanding the foregoing, during any period in which an Event of Default exists under subsections (a), (f) or (g)
of Section 11.1., the term “Eligible Assignee” shall mean any Person that is not an individual. 
  
 “Eligible Property” means a Property which satisfies all of the following requirements: (a) such Property (i) is a Development Property
or (ii) is a full service, select service or extended stay lodging Property; (b) such Property is currently open for business to the public and has been continuously operating for the immediately preceding twelve month period; (c) such Property is
branded by a nationally recognized hotel company; (d) such Property is located in a State of the United States of America, in the District of Columbia or in any territories of the United States of America; (e) the Property is owned in fee simple,
or, with the consent of the Agent, leased under a Ground Lease entirely by, the Borrower or a Subsidiary; (f) neither such Property, nor any interest of the Borrower or any Subsidiary therein, is subject to any Lien (other than Permitted Liens (but
not Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens)) or a Negative Pledge; (g) if such Property is owned or leased by a Subsidiary (i) none of the Borrower’s direct or indirect ownership interest
in such Subsidiary is subject to any Lien (other than Permitted Liens (but not Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens)) or to a Negative Pledge; and (ii) the Borrower directly, or indirectly
through a Subsidiary, has the right to take the following actions without the need to obtain the consent of any Person: (x) to sell, transfer or otherwise dispose of such Property and (y) to create a Lien on such Property as security for
Indebtedness of the Borrower or such Subsidiary, as applicable; (h) such Property is either managed by (i) the Borrower or any of its Subsidiaries or (ii) a nationally recognized third-party property management company or any of its affiliates
approved by the Agent and Requisite Lenders; provided, that Marriott International, Inc. and its affiliates and Vail Resorts, Inc. and its affiliates shall be approved third-party property management companies hereunder and (i) such Property is free
of all structural defects or title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable operation of such
Property. 
  
 “Environmental Indemnity Agreement”
means an Environmental Indemnity Agreement executed by a Loan Party in favor of the Agent and the Lenders and substantially in the form of Exhibit C. 
  
 “Environmental Laws” means any Applicable Law relating to environmental protection or the manufacture, storage, remediation, disposal or
clean-up of Hazardous Materials including, without limitation, the following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; regulations of the
Environmental Protection 

  

 - 8 - 

 
Agency and any applicable rule of common law and any judicial interpretation thereof relating primarily to the environment or Hazardous Materials.

  
 “Equity Interest” means, with respect to any
Person, any share of capital stock of (or other ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership or profit
interests in) such Person, any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of
such shares (or such other interests), and any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant,
option, right or other interest is authorized or otherwise existing on any date of determination. 
  
 “Equity Issuance” means any issuance by a Person of any Equity Interest in such Person and shall in any event include the issuance of any
Equity Interest upon the conversion or exchange of any security constituting Indebtedness that is convertible or exchangeable, or is being converted or exchanged, for Equity Interests. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as in effect from time to time.

  
 “ERISA Group” means the Borrower, any
Subsidiary and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower or any Subsidiary, are treated as a single employer under Section 414
of the Internal Revenue Code. 
  
 “Event of
Default” means any of the events specified in Section 11.1., provided that any requirement for notice or lapse of time or any other condition has been satisfied. 
  
 “Excluded Subsidiary” means any Subsidiary as to which both of the following apply (a) such Subsidiary
holds title to, or beneficially owns, assets which are or are intended to become collateral for any Secured Indebtedness of such Subsidiary, or is a beneficial owner of a Subsidiary holding title to or beneficially owning such assets (but having no
material assets other than such beneficial ownership interests); and (b) which (i) is, or is expected to be, prohibited from Guarantying the Indebtedness of any other Person pursuant to any document, instrument or agreement evidencing such Secured
Indebtedness or (ii) is prohibited from Guarantying the Indebtedness of any other Person pursuant a provision of such Subsidiary’s organizational documents which provision was included in such Subsidiary’s organizational documents as a
condition to the extension of such Secured Indebtedness. 
  
 “Fair Market Value” means, with respect to (a) a security listed on a national securities exchange or the NASDAQ National Market, the price of such security as reported on such exchange by any widely recognized reporting
method customarily relied upon by financial institutions and (b) with respect to any other property, the price which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither
of which is under pressure or compulsion to complete the transaction. 
  

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 “Federal Funds Rate” means, for any day, the rate per annum (rounded upward to the
nearest 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day, provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate quoted to the Agent by federal funds dealers selected by the Agent on such day on such transaction as determined by the Agent. 

 
 “Fees” means the fees and commissions provided for or
referred to in Section 3.6. and any other fees payable by the Borrower hereunder or under any other Loan Document. 
  
 “FF&E Reserves” means, for any period and with respect to a Property, an amount equal to 4.0% of total gross revenues for such
Property for such period. If the term FF&E Reserves is used without reference to a specific Property, then the amount shall be determined on an aggregate basis with respect to all Properties of the Parent and its Subsidiaries and a proportionate
share of all Properties of all Unconsolidated Affiliates. 
  
 “FIRREA” means the Financial Institution Recovery, Reform and Enforcement Act of 1989, as amended. 
  
 “Fixed Charges” means, for any period, the sum of (a) Interest Expense of the Parent and its Subsidiaries determined on a consolidated
basis for such period, (b) all regularly scheduled principal payments made with respect to Indebtedness of the Parent and its Subsidiaries during such period, other than any balloon, bullet or similar principal payment which repays such Indebtedness
in full, and (c) all Preferred Dividends paid during such period on Preferred Equity Interests not owned by the Parent or any of its Subsidiaries. The Parent’s pro rata share of the Fixed Charges of Unconsolidated Affiliates of the Parent shall
be included in determinations of Fixed Charges. 
  
 “Floating Rate Indebtedness” means all Indebtedness of a Person which bears interest at a variable rate during the scheduled life of such Indebtedness and for which such Person has not obtained interest rate swap
agreements, interest rate “cap” or “collar” agreements or other similar Derivatives Contracts which effectively cause such variable rates to be equivalent to fixed rates or subject to maximum interest rates which, in each case,
are reasonably acceptable to the Agent. 
  
 “Foreign
Subsidiary” means a Subsidiary that is not a Domestic Subsidiary. 
  
 “Funds Available For Distribution” means, for any period, the Funds From Operations of the Parent and its Subsidiaries determined on a consolidated basis for such period, less the sum of the following
items for such period (to the extent not already deducted in calculating Funds From Operations): (i) FF&E Reserves, (ii) all regularly scheduled principal payments 

  

 - 10 - 

 
made to third parties with respect to Indebtedness of the Parent and its Subsidiaries (including such payments in respect of any Indebtedness of
Unconsolidated Affiliates), other than any balloon, bullet or similar principal payment which repays such Indebtedness in full and (iii) income taxes, if any, to the extent not already deducted in the determination of net income, in each case
determined on a consolidated basis for the Borrower and its Subsidiaries in accordance with GAAP. Funds Available For Distribution shall be adjusted to remove any impact from (a) non-cash amortization of stock grants to members of the Parent’s
management, (b) straight line rent leveling adjustments required under GAAP, (c) amortization of intangibles pursuant to Statement of Financial Accounting Standards number 141 and (d) other non-cash charges (other than non-cash charges that
constitute an accrual of a reserve for future cash payments). 
  
 “Funds From Operations” means, with respect to a Person and for a given period, (a) net income (loss) of such Person determined on a consolidated basis for such period minus (or plus) (b) gains (or losses)
from debt restructuring and sales of property during such period plus (c) depreciation with respect to such Person’s real estate assets and amortization of such Person for such period, all after adjustment for unconsolidated partnerships
and joint ventures. Adjustments for Unconsolidated Affiliates will be calculated to reflect funds from operations on the same basis. 
  
 “GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of determination. 
  
 “Governmental Approvals” means all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities. 
  
 “Governmental Authority” means any national, state or local
government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi-governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department or other entity
(including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law.

  
 “Ground Lease” means a ground lease
containing the following terms and conditions: (a) a remaining term (exclusive of any unexercised extension options) of 25 years or more from the Agreement Date; (b) the right of the lessee to mortgage and encumber its interest in the leased
property without the consent of the lessor, or, if consent is required, such consent has been obtained; (c) the obligation of the lessor to give the holder of any mortgage Lien on such leased property written notice of any defaults on the part of
the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (d) reasonable transferability of the lessee’s interest
under such lease, including ability to sublease; and (e) such other rights customarily required by 

  

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mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease. 
  
 “Guarantor” means any Person that is a party to the Guaranty
as a “Guarantor” and in any event shall include each Material Subsidiary (other than Excluded Subsidiaries and Foreign Subsidiaries). 
  
 “Guaranty”, “Guaranteed”, “Guarantying” or to “Guarantee” as applied to any obligation
means and includes: (a) a guaranty (other than by endorsement of negotiable instruments for collection or deposit in the ordinary course of business), directly or indirectly, in any manner, of any part or all of such obligation, or (b) an agreement,
direct or indirect, contingent or otherwise, and whether or not constituting a guaranty, the practical effect of which is to assure the payment or performance (or payment of damages in the event of nonperformance) of any part or all of such
obligation whether by: (i) the purchase of securities or obligations, (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase or sale of services primarily for the purpose of enabling the obligor with respect to such
obligation to make any payment or performance (or payment of damages in the event of nonperformance) of or on account of any part or all of such obligation, or to assure the owner of such obligation against loss, (iii) the supplying of funds to or
in any other manner investing in the obligor with respect to such obligation, (iv) repayment of amounts drawn down by beneficiaries of letters of credit (including Letters of Credit), or (v) the supplying of funds to or investing in a Person on
account of all or any part of such Person’s obligation under a Guaranty of any obligation or indemnifying or holding harmless, in any way, such Person against any part or all of such obligation. As the context requires, “Guaranty”
shall also mean the Guaranty to which the Guarantors are parties substantially in the form of Exhibit D. 
  
 “Hazardous Materials” means all or any of the following: (a) substances that are defined or listed in, or otherwise classified pursuant
to, any applicable Environmental Laws as “hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation intended to define, list or classify substances by reason
of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity or “EP toxicity”; (b) oil, petroleum or petroleum derived substances, natural gas, natural gas
liquids or synthetic gas and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources; (c) any flammable substances or explosives or any
radioactive materials; (d) asbestos in any form; (e) toxic mold; and (f) electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million. 
  
 “Implied Debt Service” means, for any period, an amount
equal to the annual principal and interest payment sufficient to amortize in full during a 25-year period the aggregate principal balance of Loans and the amount of all Letter of Credit Liabilities outstanding during such period calculated using an
interest rate equal to the greater of (i) the yield on a 10 year United States Treasury Note at such time as determined by the Agent plus 1.75% or (ii) 7.00%. 
  
 “Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the following
(without duplication): (a) all obligations of such Person in respect of money 

  

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borrowed (other than trade debt incurred in the ordinary course of business which is not more than 180 days past due); (b) all obligations of such Person,
whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money
indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or services rendered;
(c) Capitalized Lease Obligations of such Person; (d) all reimbursement obligations of such Person under any letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off-Balance Sheet Obligations of such
Person; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends; (g) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a
binding agreement (excluding any such obligation to the extent the obligation can be satisfied by the issuance of Equity Interests (other than Mandatorily Redeemable Stock)); (h) net obligations under any Derivatives Contract not entered into as a
hedge against existing Indebtedness, in an amount equal to the Derivatives Termination Value thereof; (i) all Indebtedness of other Persons which such Person has Guaranteed or is otherwise recourse to such Person (except for guaranties of customary
exceptions for fraud, misapplication of funds, environmental indemnities and other similar exceptions to recourse liability (but not exceptions relating to bankruptcy, insolvency, receivership or other similar events)); (j) all Indebtedness of
another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable
for the payment of such Indebtedness or other payment obligation; and (k) such Person’s pro rata share of the Indebtedness of any Unconsolidated Affiliate of such Person. Indebtedness of any Person shall include Indebtedness of any partnership
or joint venture in which such Person is a general partner or joint venturer to the extent of such Person’s pro rata share of the ownership of such partnership or joint venture (except if such Indebtedness, or portion thereof, is recourse
(other than in respect of exceptions referred to in the definition of Nonrecourse Indebtedness) to such Person, in which case the greater of such Person’s pro rata portion of such Indebtedness or the amount of such recourse portion of the
Indebtedness, shall be included as Indebtedness of such Person). All Loans and Letter of Credit Liabilities shall constitute Indebtedness of the Borrower. 
  
 “Intellectual Property” has the meaning given that term in Section 7.1.(t). 
  
 “Interest Expense” means, for any period, without duplication, (a) total interest expense of the
Parent and its Subsidiaries, including capitalized interest not funded under a construction loan interest reserve account, determined on a consolidated basis for such period, plus (b) the Parent’s pro rata share of Interest Expense of
Unconsolidated Affiliates for such period. 
  
 “Interest
Period” means with respect to any LIBOR Loan, each period commencing on the date such LIBOR Loan is made or the last day of the next preceding Interest Period for such Loan and ending 1, 2, 3 or 6 months thereafter, as the Borrower may
select in a Notice of 

  

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Borrowing, Notice of Continuation or Notice of Conversion, as the case may be, except that each Interest Period that commences on the last Business Day of a
calendar month shall end on the last Business Day of the appropriate subsequent calendar month. Notwithstanding the foregoing: (i) if any Interest Period would otherwise end after the Termination Date, such Interest Period shall end on the
Termination Date; and (ii) each Interest Period that would otherwise end on a day which is not a Business Day shall end on the immediately following Business Day (or, if such immediately following Business Day falls in the next calendar month, on
the immediately preceding Business Day). 
  
 “Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Investment” means, with respect to any Person, any acquisition or investment (whether or not of a controlling interest) by such Person, by means of any of the following: (a) the purchase or other
acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital contribution to, Guaranty of Indebtedness of, or purchase or other acquisition of any Indebtedness of, another Person, including any
partnership or joint venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute the business or a division or operating unit of another
Person. Any binding commitment to make an Investment in any other Person, as well as any option of another Person to require an Investment in such Person, shall constitute an Investment. Except as expressly provided otherwise, for purposes of
determining compliance with any covenant contained in a Loan Document, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment. 
  
 “L/C Commitment Amount” equals $25,000,000. 
  
 “Lender” means each financial institution from time to time
party hereto as a “Lender” and as the context requires, includes the Swingline Lender. 
  
 “Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender specified as such on its signature page
hereto or in the applicable Assignment and Acceptance Agreement, or such other office of such Lender of which such Lender may notify the Agent in writing from time to time. 
  
 “Letter of Credit” has the meaning given that term in Section 2.3.(a). 
  
 “Letter of Credit Documents” means, with respect to any
Letter of Credit, collectively, any application therefor, any certificate or other document presented in connection with a drawing under such Letter of Credit and any other agreement, instrument or other document governing or providing for (a) the
rights and obligations of the parties concerned or at risk with respect to such Letter of Credit or (b) any collateral security for any of such obligations. 
  
 “Letter of Credit Liabilities” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the Stated
Amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations of the Borrower at such 

  

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time due and payable in respect of all drawings made under such Letter of Credit. For purposes of this Agreement, a Lender (other than the Lender acting as
the Agent) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest in the related Letter of Credit under Section 2.3.(i), and the Lender acting as the Agent shall be deemed to hold a Letter of Credit
Liability in an amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by the Lenders other than the Lender acting as the Agent of their participation interests under such Section. 
  
 “Level” has the meaning given that term in the definition of
the term “Applicable Margin.” 
  
 “LIBOR” means, for any LIBOR Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as the London
interbank offered rate for deposits in Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period. If for any reason such rate is not available,
the term “LIBOR” shall mean, for any LIBOR Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on the Reuters Screen LIBO Page as the London interbank offered rate
for deposits in Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period; provided, however, if more than one rate is specified on the Reuters
Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates. If for any reason none of the foregoing rates is available, LIBOR shall be, for any Interest Period, the rate per annum reasonably determined by the Agent as the
rate of interest at which Dollar deposits in the approximate amount of the LIBOR Loan comprising part of such borrowing would be offered by the Agent to major banks in the London interbank Eurodollar market at their request at or about 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period. 
  
 “LIBOR Loan” means a Revolving Loan bearing interest at a rate based on LIBOR. 
  
 “Lien” as applied to the property of any Person means: (a)
any security interest, encumbrance, mortgage, deed to secure debt, deed of trust, assignment of leases and rents, pledge, lien, charge or lease constituting a Capitalized Lease Obligation, conditional sale or other title retention agreement, or
other security title or encumbrance of any kind in respect of any property of such Person, or upon the income, rents or profits therefrom; (b) any arrangement, express or implied, under which any property of such Person is transferred, sequestered
or otherwise identified for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person; (c) the filing of any financing
statement under the Uniform Commercial Code or its equivalent in any jurisdiction, other than any precautionary filing not otherwise constituting or giving rise to a Lien, including a financing statement filed (i) in respect of a lease not
constituting a Capitalized Lease Obligation pursuant to Section 9-505 (or a successor provision) of the Uniform Commercial Code or its equivalent as in effect in an applicable jurisdiction or (ii) in connection with a sale or other disposition of
accounts or other assets not prohibited by this 

  

 - 15 - 

 
Agreement in a transaction not otherwise constituting or giving rise to a Lien; and (d) any agreement by such Person to grant, give or otherwise convey any
of the foregoing. 
  
 “Loan” means a Revolving
Loan or a Swingline Loan. 
  
 “Loan Document”
means this Agreement, each Note, each Letter of Credit Document, the Guaranty, each Security Document and each other document or instrument now or hereafter executed and delivered by a Loan Party in connection with, pursuant to or relating to this
Agreement. 
  
 “Loan Party” means the Borrower,
the Parent and each other Guarantor. Schedule 1.1.(A) sets forth the Loan Parties in addition to the Borrower and the Parent as of the Agreement Date. 
  
 “Mandatorily Redeemable Stock” means, with respect to any Person, any Equity Interest of such Person which by the terms of such Equity
Interest (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than an Equity Interest to the extent redeemable in exchange for common stock or other equivalent common Equity Interests), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or
(c) is redeemable at the option of the holder thereof, in whole or in part (other than an Equity Interest which is redeemable solely in exchange for common stock or other equivalent common Equity Interests), in each case on or prior to the date on
which all Revolving Loans are scheduled to be due and payable in full. 
  
 “Marketable Securities” means (a) bank deposits and certificates of deposit from a bank rated Baa1 or BBB+ or better by a Rating Agency; (b) government obligations; and (c) commercial paper rated A1 or P1 by a Rating
Agency. 
  
 “Material Adverse Effect” means a
materially adverse effect on (a) the business, assets, liabilities, financial condition or results of operations of the Parent and its Subsidiaries, or the Borrower and its Subsidiaries, in each case, taken as a whole, (b) the ability of the
Borrower or any other Loan Party to perform its obligations under any Loan Document to which it is a party, (c) the validity or enforceability of any of the material provisions of the Loan Documents, or (d) the material rights and remedies of the
Lenders and the Agent under any of the Loan Documents. 
  
 “Material Contract” means any contract or other arrangement (other than Loan Documents), whether written or oral, to which the Parent, the Borrower, or any other Subsidiary is a party as to which the breach, nonperformance,
cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect. 
  
 “Material Subsidiary” means any Subsidiary to which more than 5% of Total Asset Value is attributable on an individual basis. 

 

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 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Mortgage” means a mortgage, deed of trust, deed to secure
debt or similar security instrument made by a Person owning an interest in real property granting a Lien on such interest in real property as security for the payment of Indebtedness of such Person or another Person. 
  
 “Mortgage Receivable” means a promissory note secured by a
Mortgage of which the Parent, the Borrower or another Subsidiary is the holder and retains the rights of collection of all payments thereunder. 
  
 “Multiemployer Plan” means at any time a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year
period. 
  
 “Negative Pledge” means, with respect
to a given asset, any provision of a document, instrument or agreement (other than any Loan Document) which prohibits or purports to prohibit the creation or assumption of any Lien on such asset as security for Indebtedness of the Person owning such
asset or any other Person; provided, however, that an agreement that conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that
do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a Negative Pledge. 
  
 “Net Operating Income” or “NOI” means, for any Property and for a given period, the sum of the following (without
duplication and determined on a consistent basis with prior periods): (a) gross revenues received in the ordinary course from such Property minus (b) all expenses paid (excluding interest but including an appropriate accrual for property taxes and
insurance) related to the ownership, operation or maintenance of such Property, including but not limited to property taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing
expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Property, but specifically excluding general overhead expenses
of the Borrower or any Subsidiary and any property management fees) minus (c) the FF&E Reserves for such Property as of the end of such period minus (d) the greater of (i) the actual property management fee paid during such period and (ii) an
imputed management fee in the amount of three percent (3.0%) of the gross revenues for such Property for such period. 
  
 “Net Proceeds” means with respect to any Equity Issuance by a Person, the aggregate amount of all cash and the Fair Market Value of all
other property (other than securities of such Person being converted or exchanged in connection with such Equity Issuance) received by such Person in respect of such Equity Issuance net of investment banking fees, legal fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and expenses actually incurred by such Person in connection with such Equity Issuance. 
  

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 “Nonrecourse Indebtedness” means, with respect to a Person, (a) Indebtedness for
borrowed money in respect of which recourse for payment (except for customary exceptions for fraud, misapplication of funds, environmental indemnities, and other similar exceptions to recourse liability (but not exceptions relating to bankruptcy,
insolvency, receivership or other similar events)) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness or (b) if such Person is a Single Asset Entity, any Indebtedness for borrowed money of such
Person. 
  
 “Note” means a Revolving Note or a
Swingline Note. 
  
 “Notice of Borrowing” means a
notice in the form of Exhibit E to be delivered to the Agent pursuant to Section 2.1.(b) evidencing the Borrower’s request for a borrowing of Revolving Loans. 
  
 “Notice of Continuation” means a notice in the form of Exhibit F to be delivered to the Agent pursuant to
Section 2.8. evidencing the Borrower’s request for the Continuation of a LIBOR Loan. 
  
 “Notice of Conversion” means a notice in the form of Exhibit G to be delivered to the Agent pursuant to Section 2.9. evidencing the Borrower’s request for the Conversion of a Loan from one Type
to another Type. 
  
 “Notice of Swingline
Borrowing” means a notice in the form of Exhibit H to be delivered to the Agent pursuant to Section 2.2. evidencing the Borrower’s request for a borrowing of Swingline Loans. 
  
 “Obligations” means, individually and collectively: (a) the
aggregate principal balance of, and all accrued and unpaid interest on, all Loans; (b) all Reimbursement Obligations and all other Letter of Credit Liabilities; and (c) all other indebtedness, liabilities, obligations, covenants and duties of the
Borrower and the other Loan Parties owing to the Agent or any Lender of every kind, nature and description, under or in respect of this Agreement or any of the other Loan Documents, including, without limitation, the Fees and indemnification
obligations, whether direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any promissory note. 
  
 “OFAC” means U.S. Department of the Treasury’s Office of Foreign Assets Control and any successor
Governmental Authority. 
  
 “Off-Balance Sheet
Obligations” means liabilities and obligations of the Parent, any Subsidiary or any other Person in respect of “off-balance sheet arrangements” (as defined in the SEC Off-Balance Sheet Rules) which the Parent would be required to
disclose in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Parent’s report on Form 10-Q or Form 10-K (or their equivalents) which the Parent is required to file with the
Securities and Exchange Commission (or any Governmental Authority substituted therefor). As used in this definition, the term “SEC Off-Balance Sheet Rules” means 

  

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the Disclosure in Management’s Discussion and Analysis About Off-Balance Sheet Arrangements, Securities Act Release No. 33-8182, 68 Fed. Reg. 5982 (Feb.
5, 2003) (codified at 17 CFR pts. 228, 229 and 249). 
  
 “Parent” has the meaning given such term in the introductory paragraph hereof. 
  
 “Participant” has the meaning given that term in Section 13.5.(c). 
  
 “PBGC” means the Pension Benefit Guaranty Corporation and any successor agency. 
  
 “Permitted Liens” means, as to any Person: (a) Liens
securing taxes, assessments and other charges or levies imposed by any Governmental Authority (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or the claims of materialmen, mechanics,
carriers, warehousemen or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which are not at the time required to be paid or discharged under Section 8.6.; (b) Liens consisting of deposits or pledges
made, in the ordinary course of business, in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance or similar Applicable Laws; (c) Liens consisting of encumbrances in the nature of zoning
restrictions, easements, and rights or restrictions of record on the use of real property, which do not materially detract from the value of such property or impair the intended use thereof in the business of such Person; (d) the rights of tenants
under leases or subleases not interfering with the ordinary conduct of business of such Person; (e) Liens in favor of the Agent for the benefit of the Lenders; (f) Liens in favor of the Borrower or a Guarantor securing obligations owing by a
Subsidiary to the Borrower or a Guarantor; (g) Liens in existence as of the Agreement Date and set forth in Part II of Schedule 7.1.(f); (h) in the case of any Collateral encumbered by a Security Document, other Liens expressly permitted by such
Security Document; (i) Liens arising out of judgments or awards in respect of the Parent or any of its Subsidiaries not constituting an Event of Default under Section 11.1.(i); (j) Liens with respect to which a title insurance company acceptable to
the Agent has insured the Agent and the Lenders against pursuant to an ALTA 1992 Form mortgagee’s Policy of Title Insurance or other form acceptable to the Agent in favor of the Agent for the benefit of the Lenders; and (k) any interest or
title of a lessor under any lease of equipment (not constituting a fixture) entered into by the Borrower or any Subsidiary in the ordinary course of its business and covering only the assets so leased. 
  
 “Person” means an individual, corporation, partnership,
limited liability company, association, trust or unincorporated organization, or a government or any agency or political subdivision thereof. 
  
 “Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (a) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or (b) has at any time within
the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA Group. 
  

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 “Pledge Agreement” means the Pledge Agreement to which the Pledgors are parties
substantially in the form of Exhibit O. 
  
 “Pledgor” means, initially, each of the Persons set forth on Schedule 1.1.(B), together with any other Person that becomes a “Pledgor” under the Pledge Agreement. 
  
 “Post-Default Rate” means, in respect of any principal of
any Loan or any other Obligation that is not paid when due (whether at stated maturity, by acceleration, by mandatory prepayment or otherwise), a rate per annum equal to the Base Rate as in effect from time to time plus the Applicable Margin
for Base Rate Loans plus two percent (2.0%). 
  
 “Preferred Dividends” means, for any period and without duplication, all Restricted Payments paid during such period on Preferred Equity Interests issued by the Parent or a Subsidiary. Preferred Dividends shall not include
dividends or distributions (a) paid or payable solely in Equity Interests (other than Mandatorily Redeemable Stock) payable to holders of such class of Equity Interests, (b) paid or payable to the Parent or a Subsidiary, or (c) constituting or
resulting in the redemption of Preferred Equity Interests, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full. 
  
 “Preferred Equity Interests” means, with respect to any Person, Equity Interests in such Person which are entitled to preference or
priority over any other Equity Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both. 
  
 “Prime Rate” means the rate of interest per annum announced publicly by the Lender then acting as the Agent as its prime rate from time
to time. The Prime Rate is not necessarily the best or the lowest rate of interest offered by the Lender acting as the Agent or any other Lender. 
  
 “Principal Office” means the office of the Agent located at One Wachovia Center, Charlotte, North Carolina, or such other office of the
Agent as the Agent may designate from time to time. 
  
 “Property” means any parcel of real property owned or leased (in whole or in part) or operated by the Parent, the Borrower, any other Subsidiary or any Unconsolidated Affiliate of the Parent and which is located in a state
of the United States of America or the District of Columbia. 
  
 “Property Management Agreement” means, collectively, all agreements entered into by a Loan Party pursuant to which such Loan Party engages a Person to advise it with respect to the management of a Collateral Property.

  
 “Property Management Contract Assignment”
means a Property Management Contract Assignment executed by a Loan Party in favor of the Agent for the benefit of the Lenders substantially in the form of Exhibit I or otherwise in form and substance reasonably 

  

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satisfactory to the Agent. Such document may, at the Agent’s election, constitute a subordination of Property Management Agreement, rather than an
assignment thereof. 
  
 “Qualified REIT
Subsidiary” shall have the meaning given to such term in the Internal Revenue Code. 
  
 “Register” has the meaning given that term in Section 13.5.(e). 
  
 “Regulatory Change” means, with respect to any Lender, any change effective after the Agreement Date in Applicable Law (including without
limitation, Regulation D of the Board of Governors of the Federal Reserve System) or the adoption or making after such date of any interpretation, directive or request applying to a class of banks, including such Lender, of or under any Applicable
Law (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any Governmental Authority or monetary authority charged with the interpretation or administration thereof or compliance by any Lender
with any request or directive regarding capital adequacy. 
  
 “Reimbursement Obligation” means the absolute, unconditional and irrevocable obligation of the Borrower to reimburse the Agent for any drawing honored by the Agent under a Letter of Credit. 
  
 “REIT” means a Person qualifying for treatment as a
“real estate investment trust” under the Internal Revenue Code. 
  
 “Requisite Lenders” means, as of any date, Lenders having greater than 50% of the aggregate amount of the Commitments (not held by Defaulting Lenders who are not entitled to vote), or, if the
Commitments have been terminated or reduced to zero, Lenders holding greater than 50% of the principal amount of the aggregate outstanding Loans and Letter of Credit Liabilities (not held by Defaulting Lenders who are not entitled to vote);
provided, that in connection with amendments, approvals, waivers and consents under Article IV (and any related defined terms contained therein and the defined term “Approved Interest Reserve”), at any time in which there are only three or
fewer Lenders, “Requisite Lenders” shall mean all Lenders. Commitments, Revolving Loans and Letter of Credit Liabilities held by Defaulting Lenders shall be disregarded when determining the Requisite Lenders. 
  
 “Responsible Officer” means with respect to the Parent, the
Borrower or any Subsidiary, the chief executive officer, the chief financial officer or any other senior executive officer of the Parent, the Borrower or such Subsidiary. 
  
 “Restricted Payment” means: (a) any dividend or other distribution, direct or indirect, on account of any
Equity Interest of the Parent, the Borrower or any Subsidiary now or hereafter outstanding, except a dividend payable solely in Equity Interests; (b) any redemption, conversion, exchange, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any Equity Interest of the Parent, the Borrower or any Subsidiary now or hereafter outstanding; and (c) any payment made to retire, or to obtain the surrender of, 

  

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any outstanding warrants, options or other rights to acquire any Equity Interests of the Parent, the Borrower or any Subsidiary now or hereafter outstanding.

  
 “Revolving Loan” means a loan made by a
Lender to the Borrower pursuant to Section 2.1.(a). 
  
 “Revolving Note” has the meaning given that term in Section 2.10.(a). 
  
 “Sanctioned Entity” means (a) an agency of the government of, (b) an organization directly or indirectly controlled by, or (c) a Person
resident in, in each case, a country that is subject to a sanctions program identified on the list maintained by the OFAC and published from time to time, as such program may be applicable to such agency, organization or Person. 
  
 “Sanctioned Person” means a Person named on the list of
Specially Designated Nationals or Blocked Persons maintained by the OFAC as published from time to time. 
  
 “Secured Indebtedness” means, with respect to any Person, (a) all Indebtedness of such Person that is secured in any manner by any Lien
on any Property plus (b) such Person’s pro rata share of the Secured Indebtedness of any of such Person’s Unconsolidated Affiliates. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time, together with all rules and regulations issued
thereunder. 
  
 “Security Deed” means a deed to
secure debt, deed of trust or other mortgage executed by a Loan Party in favor of the Agent and substantially in the form of Exhibit J or otherwise in form and substance reasonably satisfactory to the Agent. 
  
 “Security Document” means any Security Deed, any Assignment
of Contracts, Documents and Rights, and Assignment of Franchise Agreement, any Assignment of Leases and Rents, any Property Management Contract Assignments, the Pledge Agreement and any other security agreement, financing statement, or other
document, instrument or agreement creating, evidencing or perfecting the Agent’s Liens in any of the Collateral. 
  
 “Significant Subsidiary” means any Subsidiary to which more than $10,000,000 of Total Asset Value is attributable. 
  
 “Single Asset Entity” means a Person (other than an
individual) that (a) only owns a single Property; (b) is engaged only in the business of owning, developing and/or leasing such Property; and (c) receives substantially all of its gross revenues from such Property. In addition, if the assets of a
Person consist solely of (i) Equity Interests in one other Single Asset Entity and (ii) cash and other assets of nominal value incidental to such Person’s ownership of the other Single Asset Entity, such Person shall also be deemed to be a
Single Asset Entity for purposes of this Agreement.  
  
 “Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable value of its assets (excluding any Indebtedness due from any affiliate of such Person) 

  

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are each in excess of the fair valuation of its total liabilities (including all contingent liabilities computed at the amount which, in light of all the
facts and circumstances existing at such time, represents the amount that could reasonably be expected to become an actual and matured liability); (b) such Person is able to pay its debts or other obligations in the ordinary course as they mature;
and (c) such Person has capital not unreasonably small to carry on its business and all business in which it proposes to be engaged. 
  
 “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. 
  
 “Stated Amount” means the amount available to be drawn by a
beneficiary under a Letter of Credit from time to time, as such amount may be increased or reduced from time to time in accordance with the terms of such Letter of Credit. 
  
 “Subsidiary” means, for any Person, any corporation, partnership or other entity of which at least a
majority of the Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other individuals performing similar functions of such corporation, partnership or other entity (without regard to
the occurrence of any contingency) is at the time owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are
consolidated with those of such Person pursuant to GAAP. 
  
 “Swingline Commitment” means the Swingline Lender’s obligation to make Swingline Loans pursuant to Section 2.2. in an amount up to, but not exceeding, $20,000,000, as such amount may be reduced from time to time in
accordance with the terms hereof. 
  
 “Swingline
Lender” means Wachovia Bank, National Association. 
  
 “Swingline Loan” means a loan made by the Swingline Lender to the Borrower pursuant to Section 2.2.(a). 
  
 “Swingline Note” means the promissory note of the Borrower payable to the order of the Swingline Lender in a principal amount equal to
the amount of the Swingline Commitment as originally in effect and otherwise duly completed, substantially in the form of Exhibit K. 
  
 “Taxable REIT Subsidiary” means any corporation (other than a REIT) in which the Parent directly or indirectly owns stock and the Parent
and such corporation have jointly elected that such corporation be treated as a taxable REIT subsidiary of the Parent under and pursuant to Section 856 of the Internal Revenue Code. 
  
 “Taxes” has the meaning given that term in Section 3.12. 
  
 “Termination Date” means July 8, 2008, or such later date to
which the Termination Date may be extended pursuant to Section 2.12. 
  

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 “Tie-In Jurisdiction” means a jurisdiction in which a “tie-in” endorsement may
be obtained for a title insurance policy covering property located in such jurisdiction which endorsement effectively ties coverage to other title insurance policies covering properties located in other jurisdictions. 
  
 “Titled Agents” means each Tri-Lead Arranger, Tri-Bookrunner
and Syndication Agent. 
  
 “Total Asset Value”
means the sum of all of the following of the Borrower and its Subsidiaries on a consolidated basis determined in accordance with GAAP applied on a consistent basis: (a) cash, Cash Equivalents and Marketable Securities, plus (b) with respect to each
Property owned by the Borrower or any Subsidiary (other than Unimproved Land), the Appraised Value of such Property, as updated on an annual basis and reasonably approved by the Agent pursuant to Section 4.5., plus (c) with respect to any Property
(other than Unimproved Land) acquired during the most recent fiscal quarter where the Appraised Value is not available for such Property, the book value of such Property, plus (d) the book value of Unimproved Land, Mortgage Receivables and other
promissory notes, plus (e) the Borrower’s pro rata share of the preceding items for its Unconsolidated Affiliates (excluding assets of the type described in the immediately preceding clause (a)). Notwithstanding the foregoing, for purposes of
determining Total Asset Value, the amount, if any, by which the value of Marketable Securities included under the immediately preceding clause (a) would account for more than 2.5% of Total Asset Value shall be excluded. 
  
 “Total Indebtedness” means all Indebtedness of the Parent,
the Borrower and all other Subsidiaries of the Parent determined on a consolidated basis. 
  
 “Type” with respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or Base Rate Loan. 
  
 “Unconsolidated Affiliate” means, with respect to any Person, any other Person in whom such Person holds an Investment, which Investment
is accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with the financial results of such Person on the consolidated financial statements of such
Person. 
  
 “Unfunded Liabilities” means, with
respect to any Plan at any time, the amount (if any) by which (a) the value of all benefit liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA,
exceeds (b) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the
extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA. 
  
 “Unimproved Land” means land on which no development (other than improvements that are not material and are temporary in nature) has
occurred and for which no development is scheduled in the following 12 months. 
  

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 “Wachovia” means Wachovia Bank, National Association. 
  
 “Wholly Owned Subsidiary” means any Subsidiary of a Person
in respect of which all of the equity securities or other ownership interests (other than, in the case of a corporation, directors’ qualifying shares) are at the time directly or indirectly owned or controlled by such Person or one or more
other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person. 
  
 Section 1.2. General; References to Times. 
  
 Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or determined in accordance with GAAP; provided that, if at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Borrower shall provide to the Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. References
in this Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles, exhibits and schedules herein and hereto unless otherwise indicated. References in this Agreement to any
document, instrument or agreement (a) shall include all exhibits, schedules and other attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, to the extent permitted hereby and (c)
shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended, supplemented, restated or otherwise modified as of the date of this Agreement and from time to time thereafter to the extent not prohibited hereby
and in effect at any given time. A reference to a Person shall include its successors and permitted assigns. Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and plural,
and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter. Unless explicitly set forth to the contrary, a reference to “Subsidiary” means a Subsidiary of the Parent or a
Subsidiary of such Subsidiary and a reference to an “Affiliate” means a reference to an Affiliate of the Parent. Titles and captions of Articles, Sections, subsections and clauses in this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement. Unless otherwise indicated, all references to time are references to Charlotte, North Carolina time. 
  
 Section 1.3. Financial Attributes of Non-Wholly Owned Subsidiaries. 
  
 When determining compliance by the Borrower or the Parent with any financial covenant contained in any of the Loan Documents, only the pro rata share of
the Borrower or the Parent, as applicable, of the financial attributes of a Subsidiary that is not a Wholly Owned Subsidiary shall be included. 
  

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 ARTICLE II. CREDIT FACILITY 
  
 Section 2.1. Revolving Loans. 
  
 (a) Generally. Subject to the terms and conditions hereof, during the
period from the Effective Date to but excluding the Termination Date, each Lender severally and not jointly agrees to make Revolving Loans to the Borrower in an aggregate principal amount at any one time outstanding up to, but not exceeding, the
lesser of (a) the amount of such Lender’s Commitment and (b) such Lender’s Commitment Percentage of the Borrowing Base. Subject to the terms and conditions of this Agreement, during the period from the Effective Date to but excluding the
Termination Date, the Borrower may borrow, repay and reborrow Revolving Loans hereunder. 
  
 (b) Requesting Revolving Loans. The Borrower shall give the Agent notice pursuant to a Notice of Borrowing or telephonic notice of each borrowing of Revolving Loans. Each Notice of Borrowing shall be delivered
to the Agent before 11:00 a.m. (i) in the case of LIBOR Loans, on the date three Business Days prior to the proposed date of such borrowing and (ii) in the case of Base Rate Loans, on the date one Business Day prior to the proposed date of such
borrowing. Any such telephonic notice shall include all information to be specified in a written Notice of Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of Borrowing sent to the Agent by telecopy on the
same day of the giving of such telephonic notice. The Agent will transmit by telecopy the Notice of Borrowing (or the information contained in such Notice of Borrowing) to each Lender promptly upon receipt by the Agent. Each Notice of Borrowing or
telephonic notice of each borrowing shall be irrevocable once given and binding on the Borrower. 
  
 (c) Disbursements of Revolving Loan Proceeds. No later than 1:00 p.m. on the date specified in the Notice of Borrowing, each Lender will make
available for the account of its applicable Lending Office to the Agent at the Principal Office, in immediately available funds, the proceeds of the Revolving Loan to be made by such Lender. With respect to Revolving Loans to be made after the
Effective Date, unless the Agent shall have been notified by any Lender prior to the specified date of borrowing that such Lender does not intend to make available to the Agent the Revolving Loan to be made by such Lender on such date, the Agent may
assume that such Lender will make the proceeds of such Revolving Loan available to the Agent on the date of the requested borrowing as set forth in the Notice of Borrowing and the Agent may (but shall not be obligated to), in reliance upon such
assumption, make available to the Borrower the amount of such Revolving Loan to be provided by such Lender. Subject to satisfaction of the applicable conditions set forth in Article VI. for such borrowing, the Agent will make the proceeds of such
borrowing available to the Borrower no later than 2:00 p.m. on the date and at the account specified by the Borrower in such Notice of Borrowing. 
  
 Section 2.2. Swingline Loans. 
  
 (a) Swingline Loans. Subject to the terms and conditions hereof, during the period from the Effective Date to but excluding the Termination Date,
the Swingline Lender agrees to make Swingline Loans to the Borrower in an aggregate principal amount at any one time outstanding up to, but not exceeding, the amount of the Swingline Commitment. If at any time 

  

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the aggregate principal amount of the Swingline Loans outstanding at such time exceeds the Swingline Commitment in effect at such time, the Borrower shall
immediately pay the Agent for the account of the Swingline Lender the amount of such excess. Subject to the terms and conditions of this Agreement, the Borrower may borrow, repay and reborrow Swingline Loans hereunder. 
  
 (b) Procedure for Borrowing Swingline Loans. The Borrower shall give
the Agent and the Swingline Lender notice pursuant to a Notice of Swingline Borrowing or telephonic notice of each borrowing of a Swingline Loan. Each Notice of Swingline Borrowing shall be delivered to the Swingline Lender no later than 3:00 p.m.
on the proposed date of such borrowing. Any such notice given telephonically shall include all information to be specified in a written Notice of Swingline Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of
Swingline Borrowing sent to the Swingline Lender by telecopy on the same day of the giving of such telephonic notice. On the date of the requested Swingline Loan and subject to satisfaction of the applicable conditions set forth in Article VI. for
such borrowing, the Swingline Lender will make the proceeds of such Swingline Loan available to the Borrower in Dollars, in immediately available funds, at the account specified by the Borrower in the Notice of Swingline Borrowing not later than
4:00 p.m. on such date. 
  
 (c) Interest. Swingline Loans
shall bear interest at a per annum rate equal to the Base Rate plus the Applicable Margin for Base Rate Loans. Interest payable on Swingline Loans is solely for the account of the Swingline Lender. All accrued and unpaid interest on Swingline
Loans shall be payable on the dates and in the manner provided in Section 2.4. with respect to interest on Base Rate Loans (except as the Swingline Lender and the Borrower may otherwise agree in writing in connection with any particular Swingline
Loan). 
  
 (d) Swingline Loan Amounts, Etc. Each Swingline
Loan shall be in the minimum amount of $500,000 and integral multiples of $100,000 or such other minimum amounts agreed to by the Swingline Lender and the Borrower. Any voluntary prepayment of a Swingline Loan must be in integral multiples of
$100,000 or the aggregate principal amount of all outstanding Swingline Loans (or such other minimum amounts upon which the Swingline Lender and the Borrower may agree) and in connection with any such prepayment, the Borrower must give the Swingline
Lender prior written notice thereof no later than 10:00 a.m. on the date of such prepayment. The Swingline Loans shall, in addition to this Agreement, be evidenced by the Swingline Note. 
  
 (e) Repayment and Participations of Swingline Loans. The Borrower agrees to repay each Swingline Loan on demand
therefor by the Swingline Lender and in any event, within 5 Business Days after the date such Swingline Loan was made; provided, that the proceeds of a Swingline Loan shall not be used to repay any other Swingline Loans. Notwithstanding the
foregoing, the Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, the Swingline Loans on the Termination Date (or such earlier date as the Swingline Lender and the Borrower may agree in writing).
In lieu of demanding repayment of any outstanding Swingline Loan from the Borrower, the Swingline Lender may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to act on its behalf for such purpose), request a
borrowing of Base Rate Loans from the Lenders in an amount equal to the 

  

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principal balance of such Swingline Loan. The amount limitations of Section 3.5.(a) shall not apply to any borrowing of Base Rate Loans made pursuant to this
subsection. The Swingline Lender shall give notice to the Agent of any such borrowing of Base Rate Loans not later than 12:00 noon on the proposed date of such borrowing and the Agent shall give prompt notice of such borrowing to the Lenders. No
later than 2:00 p.m. on such date, each Lender will make available to the Agent at the Principal Office for the account of Swingline Lender, in immediately available funds, the proceeds of the Base Rate Loan to be made by such Lender. The Agent
shall pay the proceeds of such Base Rate Loans to the Swingline Lender, which shall apply such proceeds to repay such Swingline Loan. At the time each Swingline Loan is made, each Lender shall automatically (and without any further notice or action)
be deemed to have purchased from the Swingline Lender, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage in such Swingline Loan. If the Lenders are prohibited from making
Loans required to be made under this subsection for any reason, including without limitation, the occurrence of any Default or Event of Default described in Section 11.1.(f) or 11.1.(g), upon notice from the Agent or the Swingline Lender, each
Lender severally agrees to pay to the Agent for the account of the Swingline Lender in respect of such participation the amount of such Lender’s Commitment Percentage of each outstanding Swingline Loan. If such amount is not in fact made
available to the Agent by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof, at the Federal Funds Rate. If such
Lender does not pay such amount forthwith upon demand therefor by the Agent or the Swingline Lender, and until such time as such Lender makes the required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans
in the amount of such unpaid participation obligation for all purposes of the Loan Documents (other than those provisions requiring the other Lenders to purchase a participation therein). Further, such Lender shall be deemed to have assigned any and
all payments made of principal and interest on its Loans, and any other amounts due to it hereunder, to the Swingline Lender to fund Swingline Loans in the amount of the participation in Swingline Loans that such Lender failed to purchase pursuant
to this Section until such amount has been purchased (as a result of such assignment or otherwise). A Lender’s obligation to make payments in respect of a participation in a Swingline Loan shall be absolute and unconditional and shall not be
affected by any circumstance whatsoever, including, without limitation, (i) any claim of setoff, counterclaim, recoupment, defense or other right which such Lender or any other Person may have or claim against the Agent, the Swingline Lender or any
other Person whatsoever, (ii) the occurrence or continuation of a Default or Event of Default (including, without limitation, any of the Defaults or Events of Default described in Sections 11.1.(f) or 11.1.(g)) or the termination of any
Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of an event or condition which has had or could have a Material Adverse Effect, (iv) any breach of any Loan Document by the Agent, any Lender or the Borrower or (v) any
other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 
  
 Section 2.3. Letters of Credit. 
  
 (a) Letters of Credit. Subject to the terms and conditions of this Agreement, the Agent, on behalf of the Lenders, agrees to issue for the account of the Borrower during the period from and including the Effective Date to, but
excluding, the date 30 days prior to the Termination Date one or more letters of credit (each a “Letter of Credit”) up to a maximum 

  

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aggregate Stated Amount at any one time outstanding not to exceed the L/C Commitment Amount. 
  
 (b) Terms of Letters of Credit. At the time of issuance, the amount, form, terms and conditions of each Letter of
Credit, and of any drafts or acceptances thereunder, shall be subject to approval by the Agent and the Borrower. Notwithstanding the foregoing, in no event may the expiration date of any Letter of Credit extend beyond the earlier of (i) the date one
year from its date of issuance or (ii) the Termination Date; provided, however, a Letter of Credit may contain a provision providing for the automatic extension of the expiration date in the absence of a notice of non-renewal from the Agent but in
no event shall any such provision permit the extension of the expiration date of such Letter of Credit beyond the Termination Date.  
  
 (c) Requests for Issuance of Letters of Credit. The Borrower shall give the Agent written notice (or telephonic notice promptly confirmed in
writing) at least 5 Business Days prior to the requested date of issuance of a Letter of Credit, such notice to describe in reasonable detail the proposed terms of such Letter of Credit and the nature of the transactions or obligations proposed to
be supported by such Letter of Credit, and in any event shall set forth with respect to such Letter of Credit the proposed (i) Stated Amount, (ii) the beneficiary, and (iii) the expiration date. The Borrower shall also execute and deliver such
customary letter of credit application forms as requested from time to time by the Agent. Provided the Borrower has given the notice prescribed by the first sentence of this subsection and subject to the other terms and conditions of this Agreement,
including the satisfaction of any applicable conditions precedent set forth in Article VI., the Agent shall issue the requested Letter of Credit on the requested date of issuance for the benefit of the stipulated beneficiary. Upon the written
request of the Borrower, the Agent shall deliver to the Borrower a copy of each issued Letter of Credit within a reasonable time after the date of issuance thereof. To the extent any term of a Letter of Credit Document is inconsistent with a term of
any Loan Document, the term of such Loan Document shall control. 
  
 (d) Reimbursement Obligations. Upon receipt by the Agent from the beneficiary of a Letter of Credit of any demand for payment under such Letter of Credit, the Agent shall promptly notify the Borrower of the amount to be paid by the
Agent as a result of such demand and the date on which payment is to be made by the Agent to such beneficiary in respect of such demand; provided, however, the Agent’s failure to give, or delay in giving, such notice shall not discharge the
Borrower in any respect from the applicable Reimbursement Obligation. The Borrower hereby unconditionally and irrevocably agrees to pay and reimburse the Agent for the amount of each demand for payment under such Letter of Credit on or prior to the
date on which payment is to be made by the Agent to the beneficiary thereunder, without presentment, demand, protest or other formalities of any kind (other than notice as provided in this subsection). Upon receipt by the Agent of any payment in
respect of any Reimbursement Obligation, the Agent shall promptly pay to each Lender that has acquired a participation therein under the second sentence of Section 2.3.(i) such Lender’s Commitment Percentage of such payment. 
  
 (e) Manner of Reimbursement. Upon its receipt of a notice referred to
in the immediately preceding subsection (d), the Borrower shall advise the Agent whether or not the Borrower intends to borrow hereunder to finance its obligation to reimburse the Agent for the amount of the related demand for payment and, if it
does, the Borrower shall submit a timely 

  

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request for such borrowing as provided in the applicable provisions of this Agreement. If the Borrower fails to so advise the Agent, or if the Borrower fails
to reimburse the Agent for a demand for payment under a Letter of Credit by the date of such payment, then (i) if the applicable conditions contained in Article VI. would permit the making of Revolving Loans, the Borrower shall be deemed to have
requested a borrowing of Revolving Loans (which shall be Base Rate Loans) in an amount equal to the unpaid Reimbursement Obligation and the Agent shall give each Lender prompt notice of the amount of the Revolving Loan to be made available to the
Agent not later than 1:00 p.m. and (ii) if such conditions would not permit the making of Revolving Loans, the provisions of subsection (j) of this Section shall apply. The limitations of Section 3.5.(a) shall not apply to any borrowing of Base Rate
Loans under this subsection. 
  
 (f) Effect of Letters of
Credit on Commitments. Upon the issuance by the Agent of any Letter of Credit and until such Letter of Credit shall have expired or been terminated, the Commitment of each Lender shall be deemed to be utilized for all purposes of this Agreement
in an amount equal to the product of (i) such Lender’s Commitment Percentage and (ii) the sum of (A) the Stated Amount of such Letter of Credit plus (B) any related Reimbursement Obligations then outstanding. 
  
 (g) Agent’s Duties Regarding Letters of Credit; Unconditional Nature
of Reimbursement Obligations. In examining documents presented in connection with drawings under Letters of Credit and making payments under such Letters of Credit against such documents, the Agent shall only be required to use the same standard
of care as it uses in connection with examining documents presented in connection with drawings under letters of credit in which it has not sold participations and making payments under such letters of credit. The Borrower assumes all risks of the
acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, neither the Agent nor any of the Lenders shall be responsible for (i) the
form, validity, sufficiency, accuracy, genuineness or legal effects of any document submitted by any party in connection with the application for and issuance of or any drawing honored under any Letter of Credit even if it should in fact prove to be
in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit, or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of the beneficiary of any Letter of Credit to comply fully with conditions required in order to draw upon such Letter of
Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telex, telecopy or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or
delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit, or of the proceeds thereof; (vii) the misapplication by the beneficiary of any Letter of Credit, or the proceeds of any drawing
under any Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Agent or the Lenders. None of the above shall affect, impair or prevent the vesting of any of the Agent’s rights or powers hereunder. Any
action taken or omitted to be taken by the Agent under or in connection with any Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final,
non-appealable judgment), shall not create against the Agent or any Lender any liability to the Borrower or any 

  

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Lender. In this regard, the obligation of the Borrower to reimburse the Agent for any drawing made under any Letter of Credit shall be absolute,
unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement and any other applicable Letter of Credit Document under all circumstances whatsoever, including without limitation, the following circumstances:
(A) any lack of validity or enforceability of any Letter of Credit Document or any term or provisions therein; (B) any amendment or waiver of or any consent to departure from all or any of the Letter of Credit Documents; (C) the existence of any
claim, setoff, defense or other right which the Borrower may have at any time against the Agent, any Lender, any beneficiary of a Letter of Credit or any other Person, whether in connection with this Agreement, the transactions contemplated hereby
or in the Letter of Credit Documents or any unrelated transaction; (D) any breach of contract or dispute between the Borrower, the Agent, any Lender or any other Person; (E) any demand, statement or any other document presented under a Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein or made in connection therewith being untrue or inaccurate in any respect whatsoever; (F) any non-application or misapplication by the
beneficiary of a Letter of Credit of the proceeds of any drawing under such Letter of Credit; (G) payment by the Agent under any Letter of Credit against presentation of a draft or certificate which does not strictly comply with the terms of such
Letter of Credit; and (H) any other act, omission to act, delay or circumstance whatsoever that might, but for the provisions of this Section, constitute a legal or equitable defense to or discharge of the Borrower’s Reimbursement Obligations.
Notwithstanding anything to the contrary contained in this Section or Section 13.9., but not in limitation of the Borrower’s unconditional obligation to reimburse the Agent for any drawing made under a Letter of Credit as provided in this
Section, the Borrower shall have no obligation to indemnify the Agent or any Lender in respect of any liability incurred by the Agent or a Lender arising solely out of the gross negligence or willful misconduct of the Agent or a Lender in respect of
a Letter of Credit as determined by a court of competent jurisdiction in a final, non-appealable judgment. Except as otherwise provided in this Section, nothing in this Section shall affect any rights the Borrower may have with respect to the gross
negligence or willful misconduct of the Agent or any Lender with respect to any Letter of Credit. 
  
 (h) Amendments, Etc. The issuance by the Agent of any amendment, supplement or other modification to any Letter of Credit shall be subject to the
same conditions applicable under this Agreement to the issuance of new Letters of Credit (including, without limitation, that the request therefor be made through the Agent), and no such amendment, supplement or other modification shall be issued
unless either (i) the respective Letter of Credit affected thereby would have complied with such conditions had it originally been issued hereunder in such amended, supplemented or modified form or (ii) the Requisite Lenders shall have consented
thereto. In connection with any such amendment, supplement or other modification, the Borrower shall pay the Fees, if any, payable under the last sentence of Section 3.6.(b). 
  
 (i) Lenders’ Participation in Letters of Credit. Immediately upon the issuance by the Agent of any Letter of
Credit each Lender shall be deemed to have irrevocably and unconditionally purchased and received from the Agent, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage of the
liability of the Agent with respect to such Letter of Credit, and each Lender thereby shall absolutely, unconditionally and irrevocably assume, as primary obligor and not as surety, and 

  

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shall be unconditionally obligated to the Agent to pay and discharge when due, such Lender’s Commitment Percentage of the Agent’s liability under
such Letter of Credit. In addition, upon the making of each payment by a Lender to the Agent in respect of any Letter of Credit pursuant to the immediately following subsection (j), such Lender shall, automatically and without any further action on
the part of the Agent or such Lender, acquire (i) a participation in an amount equal to such payment in the Reimbursement Obligation owing to the Agent by the Borrower in respect of such Letter of Credit and (ii) a participation in a percentage
equal to such Lender’s Commitment Percentage in any interest or other amounts payable by the Borrower in respect of such Reimbursement Obligation (other than the Fees payable to the Agent pursuant to the third and last sentences of Section
3.6.(b)). 
  
 (j) Payment Obligation of Lenders. Each
Lender severally agrees to pay to the Agent on demand in immediately available funds in Dollars the amount of such Lender’s Commitment Percentage of each drawing paid by the Agent under each Letter of Credit to the extent such amount is not
reimbursed by the Borrower pursuant to Section 2.3.(d); provided, however, that in respect of any drawing under any Letter of Credit, the maximum amount that any Lender shall be required to fund, whether as a Revolving Loan or as a participation,
shall not exceed such Lender’s Commitment Percentage of such drawing. If the notice referenced in the second sentence of Section 2.3.(e) is received by a Lender not later than 11:00 a.m., then such Lender shall make such payment available to
the Agent not later than 2:00 p.m. on the date of demand therefor; otherwise, such payment shall be made available to the Agent not later than 1:00 p.m. on the next succeeding Business Day. Each such Lender’s obligation to make such payments to
the Agent under this subsection, and the Agent’s right to receive the same, shall be absolute, irrevocable and unconditional and shall not be affected in any way by any circumstance whatsoever, including without limitation, (i) the failure of
any other Lender to make its payment under this subsection, (ii) the financial condition of the Borrower or any other Loan Party, (iii) the existence of any Default or Event of Default, including any Event of Default described in Section 11.1.(f) or
11.1.(g) or (iv) the termination of the Commitments. Each such payment to the Agent shall be made without any offset, abatement, withholding or deduction whatsoever. 
  
 (k) Information to Lenders. The Agent shall periodically deliver to the Lenders information setting forth the Stated
Amount of all outstanding Letters of Credit. Other than as set forth in this subsection, the Agent shall have no duty to notify the Lenders regarding the issuance or other matters regarding Letters of Credit issued hereunder. The failure of the
Agent to perform its requirements under this subsection shall not relieve any Lender from its obligations under Section 2.3.(j). 
  
 Section 2.4. Rates and Payment of Interest on Loans. 
  
 (a) Rates. The Borrower promises to pay to the Agent for the account of each Lender interest on the unpaid principal amount of each Loan made by
such Lender for the period from and including the date of the making of such Loan to but excluding the date such Loan shall be paid in full, at the following per annum rates: 
  
 (i) during such periods as such Loan is a Base Rate Loan, at the Base Rate (as in effect from time to time)
plus the Applicable Margin; and 
  

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 (ii) during such periods as such Loan is a LIBOR Loan, at Adjusted LIBOR for such Loan
for the Interest Period therefor plus the Applicable Margin. 
  
 Notwithstanding
the foregoing, overdue principal, Reimbursement Obligations and (to the extent permitted by Applicable Law) interest on the Loans and all other overdue amounts payable hereunder or under any of the other Loan Documents shall bear interest at a rate
per annum equal to the Post-Default Rate until such amount shall be paid in full. 
  
 (b) Payment of Interest. Accrued and unpaid interest on each Loan shall be payable (i) in the case of a Base Rate Loan, monthly in arrears on the first day of each calendar month, (ii) in the case of a LIBOR
Loan, in arrears on the last day of each Interest Period therefor, and, if such Interest Period is longer than three months, at three-month intervals following the first day of such Interest Period, and (iii) in the case of any Loan, in arrears upon
the payment, prepayment or Continuation thereof or the Conversion of such Loan to a Loan of another Type (but only on the principal amount so paid, prepaid, Continued or Converted). Interest payable at the Post-Default Rate shall be payable from
time to time on demand. Promptly after the determination of any interest rate provided for herein or any change therein, the Agent shall give notice thereof to the Lenders to which such interest is payable and to the Borrower. All determinations by
the Agent of an interest rate hereunder shall be conclusive and binding on the Lenders and the Borrower for all purposes, absent manifest error. 
  
 Section 2.5. Number of Interest Periods. 
  
 There may be no more than 5 different Interest Periods for LIBOR Loans outstanding at the same time. 
  
 Section 2.6. Repayment of Loans. 
  
 The Borrower shall repay the entire outstanding principal amount of, and all
accrued but unpaid interest on, the Revolving Loans on the Termination Date. 
  
 Section 2.7. Prepayments. 
  
 (a)
Optional. Subject to Section 5.4., the Borrower may prepay any Loan at any time without premium or penalty. The Borrower shall give the Agent at least one Business Day’s prior written notice of the prepayment of any Revolving Loan.

  
 (b) Mandatory. 
  
 (i) Outstandings In Excess of Commitments. If at any
time the aggregate principal amount of all outstanding Revolving Loans, together with the aggregate amount of all Letter of Credit Liabilities and the aggregate principal amount of all outstanding Swingline Loans, exceeds the aggregate amount of the
Commitments in effect at such time, the Borrower shall immediately pay to the Agent for the accounts of the Lenders the amount of such excess; and 
  

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 (ii) Outstandings in Excess of Borrowing Base. If at any time the aggregate
outstanding principal balance of Loans, together with the aggregate amount of all Letter of Credit Liabilities, exceeds the Borrowing Base, then the Borrower shall within 5 days of the Agent’s demand, either (A) repay a portion of the Loans
sufficient to eliminate such excess or (B) identify to the Agent one or more Properties the Collateral Property Values of which if included in the calculation of the Borrowing Base would be sufficient to eliminate such excess and within 15 days of
identifying such Property or Properties, as the case may be, deliver to the Agent all items required to be delivered pursuant to Section 4.2.; provided, however, no such Property shall be included in calculations of the Borrowing Base unless
approved of by the Requisite Lenders. If such excess is not eliminated within 5 days of such notice from the Agent in the case of the preceding clause (A) or 15 days of such notice from the Agent in the case of the preceding clause (B), then the
entire outstanding principal balance of all Loans, together with an amount equal to the aggregate principal amount of all Letter of Credit Liabilities, shall be immediately due and payable in full. All payments under this Section shall be applied to
pay all amounts of principal outstanding on the Loans and any Reimbursement Obligations pro rata in accordance with Section 3.2. and if any Letters of Credit are outstanding at such time the remainder, if any, shall be deposited into the Collateral
Account for application to any Reimbursement Obligations. If the Borrower is required to pay any outstanding LIBOR Loans by reason of this Section prior to the end of the applicable Interest Period therefor, the Borrower shall pay all amounts due
under Section 5.4. 
  
 Section 2.8. Continuation. 
  
 So long as no Default or Event of Default shall exist, the Borrower may on
any Business Day, with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan by selecting a new Interest Period for such LIBOR Loan. Each new Interest Period selected under this Section shall commence on
the last day of the immediately preceding Interest Period. Each selection of a new Interest Period shall be made by the Borrower giving to the Agent a Notice of Continuation not later than 11:00 a.m. on the third Business Day prior to the date of
any such Continuation. Such notice by the Borrower of a Continuation shall be by telephone or telecopy, confirmed immediately in writing if by telephone, in the form of a Notice of Continuation, specifying (a) the proposed date of such Continuation,
(b) the LIBOR Loans and portions thereof subject to such Continuation and (c) the duration of the selected Interest Period, all of which shall be specified in such manner as is necessary to comply with all limitations on Loans outstanding hereunder.
Each Notice of Continuation shall be irrevocable by and binding on the Borrower once given. Promptly after receipt of a Notice of Continuation, the Agent shall notify each Lender by telecopy, or other similar form of transmission, of the proposed
Continuation. If the Borrower shall fail to select in a timely manner a new Interest Period for any LIBOR Loan in accordance with this Section, or if a Default or Event of Default shall exist, such Loan will automatically, on the last day of the
current Interest Period therefor, Convert into a Base Rate Loan notwithstanding the first sentence of Section 2.9. or the Borrower’s failure to comply with any of the terms of such Section. 
  

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 Section 2.9. Conversion. 
  

The Borrower may on any Business Day, upon the Borrower’s giving of a Notice of Conversion to the Agent, Convert all or a portion of a Loan of one
Type into a Loan of another Type; provided, however, a Base Rate Loan may not be Converted to a LIBOR Loan if a Default or Event of Default shall exist. Any Conversion of a LIBOR Loan into a Base Rate Loan shall be made on, and only on, the last day
of an Interest Period for such LIBOR Loan and, upon Conversion of a Base Rate Loan into a LIBOR Loan, the Borrower shall pay accrued interest to the date of Conversion on the principal amount so Converted. Each such Notice of Conversion shall be
given not later than 11:00 a.m. on the Business Day prior to the date of any proposed Conversion into Base Rate Loans and on the third Business Day prior to the date of any proposed Conversion into LIBOR Loans. Promptly after receipt of a Notice of
Conversion, the Agent shall notify each Lender by telecopy, or other similar form of transmission, of the proposed Conversion. Subject to the restrictions specified above, each Notice of Conversion shall be by telephone (confirmed immediately in
writing) or telecopy in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type of Loan to be Converted, (c) the portion of such Type of Loan to be Converted, (d) the Type of Loan such Loan is to be
Converted into and (e) if such Conversion is into a LIBOR Loan, the requested duration of the Interest Period of such Loan. Each Notice of Conversion shall be irrevocable by and binding on the Borrower once given. 
  
 Section 2.10. Notes. 
  
 (a) Revolving Note. The Revolving Loans made by each Lender shall, in addition to this Agreement, also be evidenced
by a promissory note of the Borrower substantially in the form of Exhibit L (each a “Revolving Note”), payable to the order of such Lender in a principal amount equal to the amount of its Commitment as originally in effect and otherwise
duly completed. 
  
 (b) Records. The date, amount, interest
rate, Type and duration of Interest Periods (if applicable) of each Loan made by each Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by such Lender on its books and such entries shall be binding
on the Borrower, absent manifest error; provided, however, that the failure of a Lender to make any such record shall not affect the obligations of the Borrower under any of the Loan Documents. 
  
 (c) Lost, Stolen, Destroyed or Mutilated Notes. Upon receipt by the
Borrower of (i) written notice from a Lender that a Note of such Lender has been lost, stolen, destroyed or mutilated, and (ii) (A) in the case of loss, theft or destruction, an unsecured agreement of indemnity from such Lender in form reasonably
satisfactory to the Borrower, or (B) in the case of mutilation, upon surrender and cancellation of such Note, the Borrower shall at its own expense execute and deliver to such Lender a new Note dated the date of such lost, stolen, destroyed or
mutilated Note. 
  

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 Section 2.11. Voluntary Reductions of the Commitment. 
  
 The Borrower shall have the right to terminate or reduce the aggregate
unused amount of the Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate amount of Letter of Credit Liabilities and the aggregate principal amount of all outstanding Swingline Loans) at any time and from
time to time without penalty or premium upon not less than 5 Business Days prior written notice to the Agent of each such termination or reduction, which notice shall specify the effective date thereof and the amount of any such reduction and shall
be irrevocable once given and effective only upon receipt by the Agent; provided, however, if the Borrower seeks to reduce the aggregate amount of the Commitments below $50,000,000, then the Commitments shall all automatically and permanently be
reduced to zero. The Agent will promptly transmit such notice to each Lender. The Commitments, once terminated or reduced may not be increased or reinstated. 
  
 Section 2.12. Extension of Termination Date. 
  
 The Borrower shall have the right, exercisable one time, to extend the Termination Date by one year. The Borrower may exercise such right only by
executing and delivering to the Agent at least 45 days but not more than 120 days prior to the current Termination Date, a written request for such extension (an “Extension Request”). The Agent shall forward to each Lender a copy of the
Extension Request delivered to the Agent promptly upon receipt thereof. Subject to satisfaction of the following conditions, the Termination Date shall be extended for one year: (a) immediately prior to such extension and immediately after giving
effect thereto, (i) no Default or Event of Default shall exist and (ii) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct
in all material respects on and as of the date of such extension with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case
such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents and (b) the Borrower shall have
paid the Fees payable under Section 3.6.(c). 
  
 Section 2.13. Expiration or
Maturity Date of Letters of Credit Past Termination Date. 
  
 If on the date the Commitments are terminated or reduced to zero (whether voluntarily, by reason of the occurrence of an Event of Default or otherwise), there are any Letters of Credit outstanding hereunder, the Borrower shall, on such
date, pay to the Agent an amount of money equal to the Stated Amount of such Letter(s) of Credit for deposit into the Collateral Account. 
  
 Section 2.14. Amount Limitations. 
  
 Notwithstanding any other term of this Agreement or any other Loan Document, no Lender shall be required to make a Loan, the Agent shall not be required
to issue a Letter of Credit and no reduction of the Commitments pursuant to Section 2.11. shall take effect, if immediately after the making of such Loan, the issuance of such Letter of Credit or such reduction in the Commitments, the aggregate
principal amount of all outstanding Loans, together 

  

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with the aggregate amount of all Letter of Credit Liabilities, would exceed the lesser of (a) the aggregate amount of the Commitments at such time or (b) the
Borrowing Base at such time. 
  
 Section 2.15. Increase of Commitments.

  
 With the prior consent of the Agent, the Borrower shall
have the right at any time and from time to time from during the term of this Agreement to request up to 4 increases in the aggregate amount of the Commitments (provided that after giving effect to any increases in the Commitments pursuant to this
Section, the aggregate amount of the Commitments may not exceed $250,000,000) by providing written notice to the Agent, which notice shall be irrevocable once given. Each such increase in the Commitments must be in an aggregate minimum amount of
$25,000,000 and integral multiples of $5,000,000 in excess thereof. No Lender shall be required to increase its Commitment and any new Lender becoming a party to this Agreement in connection with any such requested increase must be an Eligible
Assignee. If a new Lender becomes a party to this Agreement, or if any existing Lender agrees to increase its Commitment, such Lender shall on the date it becomes a Lender hereunder (or increases its Commitment, in the case of an existing Lender)
(and as a condition thereto) purchase from the other Lenders its Commitment Percentage (as determined after giving effect to the increase of Commitments) of any outstanding Revolving Loans, by making available to the Agent for the account of such
other Lenders at the Principal Office, in same day funds, an amount equal to the sum of (A) the portion of the outstanding principal amount of such Revolving Loans to be purchased by such Lender plus (B) the aggregate amount of payments previously
made by the other Lenders under Section 2.3.(j) which have not been repaid plus (C) interest accrued and unpaid to and as of such date on such portion of the outstanding principal amount of such Revolving Loans. The Borrower shall pay to the Lenders
amounts payable, if any, to such Lenders under Section 5.4. as a result of the prepayment of any such Revolving Loans. No increase of the Commitments may be effected under this Section if (x) a Default or Event of Default shall be in existence on
the effective date of such increase or (y) any representation or warranty made or deemed made by the Borrower or any other Loan Party in any Loan Document to which any such Loan Party is a party is not (or would not be) true or correct in all
material respects on the effective date of such increase (except for representations or warranties which expressly relate solely to an earlier date). In connection with any increase in the aggregate amount of the Commitments pursuant to this
subsection, (a) any Lender becoming a party hereto shall execute such documents and agreements as the Agent may reasonably request and (b) the Borrower shall make appropriate arrangements so that each new Lender, and any existing Lender increasing
its Commitment, receives a new or replacement Note, as appropriate, in the amount of such Lender’s Commitment within 2 Business Days of the effectiveness of the applicable increase in the aggregate amount of Commitments. 
  
 ARTICLE III. PAYMENTS, FEES
AND OTHER GENERAL PROVISIONS 
  
 Section 3.1. Payments. 
  
 Except to the extent otherwise provided herein, all payments of principal, interest and other amounts to be made by the Borrower under this Agreement or any other Loan Document shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to the Agent at its Principal Office, not later than 2:00 p.m. on the date on which 

  

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such payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day).
Subject to Section 11.4., the Borrower may, at the time of making each payment under this Agreement or any Note, specify to the Agent the amounts payable by the Borrower hereunder to which such payment is to be applied. Each payment received by the
Agent for the account of a Lender under this Agreement or any Note shall be paid to such Lender at the applicable Lending Office of such Lender no later than 5:00 p.m. on the date of receipt. If the Agent fails to pay such amount to a Lender as
provided in the previous sentence, the Agent shall pay interest on such amount until paid at a rate per annum equal to the Federal Funds Rate from time to time in effect. If the due date of any payment under this Agreement or any other Loan Document
would otherwise fall on a day which is not a Business Day such date shall be extended to the next succeeding Business Day and interest shall be payable for the period of such extension. 
  
 Section 3.2. Pro Rata Treatment. 
  
 Except to the extent otherwise provided herein: (a) each borrowing from the Lenders under Section 2.1.(a), 2.2.(e) and 2.3.(e) shall be made from the
Lenders, each payment of the Fees under Section 3.6.(a), the first sentence of Section 3.6.(b) and Section 3.6.(c) shall be made for the account of the Lenders, and each termination or reduction of the amount of the Commitments under Section 2.11.
shall be applied to the respective Commitments of the Lenders, pro rata according to the amounts of their respective Commitments; (b) each payment or prepayment of principal of Revolving Loans by the Borrower shall be made for the account of the
Lenders pro rata in accordance with the respective unpaid principal amounts of the Revolving Loans held by them, provided that if immediately prior to giving effect to any such payment in respect of any Revolving Loans the outstanding principal
amount of the Revolving Loans shall not be held by the Lenders pro rata in accordance with their respective Commitments in effect at the time such Loans were made, then such payment shall be applied to the Revolving Loans in such manner as shall
result, as nearly as is practicable, in the outstanding principal amount of the Revolving Loans being held by the Lenders pro rata in accordance with their respective Commitments; (c) each payment of interest on Revolving Loans by the Borrower shall
be made for the account of the Lenders pro rata in accordance with the amounts of interest on such Loans then due and payable to the respective Lenders; (d) the making, Conversion and Continuation of Revolving Loans of a particular Type (other than
Conversions provided for by Section 5.5.) shall be made pro rata among the Lenders according to the amounts of their respective Commitments (in the case of making of Loans) or their respective Loans (in the case of Conversions and Continuations of
Loans) and the then current Interest Period for each Lender’s portion of each Loan of such Type shall be coterminous; (e) the Lenders’ participation in, and payment obligations in respect of, Letters of Credit under Section 2.3., shall be
pro rata in accordance with their respective Commitments; and (f) the Lenders’ participation in, and payment obligations in respect of, Swingline Loans under Section 2.2., shall be pro rata in accordance with their respective Commitments. All
payments of principal, interest, fees and other amounts in respect of the Swingline Loans shall be for the account of the Swingline Lender only (except to the extent any Lender shall have acquired a participating interest in any such Swingline Loan
pursuant to Section 2.2.(e), in which case such payments shall be pro rata in accordance with such participating interests). 
  

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 Section 3.3. Sharing of Payments, Etc. 
  
 If a Lender shall obtain payment of any principal of, or interest on, any Loan made by it to the Borrower under this
Agreement, or shall obtain payment on any other Obligation owing by the Borrower or a Loan Party through the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise or through voluntary prepayments directly
to a Lender or other payments made by the Borrower to a Lender not in accordance with the terms of this Agreement and such payment should be distributed to the Lenders pro rata in accordance with Section 3.2. or Section 11.4., as applicable, such
Lender shall promptly purchase from the other Lenders participations in (or, if and to the extent specified by such Lender, direct interests in) the Loans made by the other Lenders or other Obligations owed to such other Lenders in such amounts, and
make such other adjustments from time to time as shall be equitable, to the end that all the Lenders shall share the benefit of such payment (net of any reasonable expenses which may be incurred by such Lender in obtaining or preserving such
benefit) pro rata in accordance with Section 3.2. or Section 11.4., as applicable. To such end, all the Lenders shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if such payment is rescinded or
must otherwise be restored. The Borrower agrees that any Lender so purchasing a participation (or direct interest) in the Loans or other Obligations owed to such other Lenders may exercise all rights of set-off, banker’s lien, counterclaim or
similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans in the amount of such participation. Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of
any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of the Borrower. 
  
 Section 3.4. Several Obligations. 
  
 No Lender shall be responsible for the failure of any other Lender to make a Loan or to perform any other obligation to be made or performed by such other
Lender hereunder, and the failure of any Lender to make a Loan or to perform any other obligation to be made or performed by it hereunder shall not relieve the obligation of any other Lender to make any Loan or to perform any other obligation to be
made or performed by such other Lender. 
  
 Section 3.5. Minimum Amounts.

  
 (a) Borrowings and Conversions. Except as
otherwise provided in Sections 2.2.(e) and 2.3.(e), each borrowing of Base Rate Loans shall be in an aggregate minimum amount of $500,000 and integral multiples of $100,000 in excess thereof. Each borrowing and each Conversion of LIBOR Loans shall
be in an aggregate minimum amount of $1,000,000 and integral multiples of $100,000 in excess of that amount. 
  
 (b) Prepayments. Each voluntary prepayment of Revolving Loans shall be in an aggregate minimum amount of $100,000 and integral multiples of
$100,000 in excess thereof (or, if less, the aggregate principal amount of Revolving Loans then outstanding). 
  
 (c) Reductions of Commitments. Each reduction of the Commitments under Section 2.11. shall be in an aggregate minimum amount of $10,000,000 and
integral multiples of $5,000,000 in excess thereof. 
  

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 (d) Letters of Credit. The initial Stated Amount of each Letter of Credit shall be at least
$100,000. 
  
 Section 3.6. Fees. 
  
 (a) Unused Fee. During the period from the Effective Date to but
excluding the Termination Date, the Borrower agrees to pay to the Agent for the account of the Lenders an unused facility fee with respect to the average daily difference between the (i) aggregate amount of the Commitments and (ii) the aggregate
principal amount of all outstanding Loans plus the aggregate amount of all Letter of Credit Liabilities (the “Unused Amount”). Such fee shall be computed by multiplying the Unused Amount with respect to such quarter by 0.35% per annum.
Such fee shall be payable in arrears on the last day of each March, June, September or December of each calendar year. Any such accrued and unpaid fee shall also be payable on the Termination Date or any earlier date of termination of the
Commitments or reduction of the Commitments to zero. 
  
 (b)
Letter of Credit Fees. The Borrower agrees to pay to the Agent for the account of each Lender a letter of credit fee at a rate per annum equal to the Applicable Margin for LIBOR Loans times the daily average Stated Amount of each Letter of
Credit for the period from and including the date of issuance of such Letter of Credit (x) through and including the date such Letter of Credit expires or is terminated or (y) to but excluding the date such Letter of Credit is drawn in full. The
fees provided for in the immediately preceding sentence shall be nonrefundable and payable in arrears on (i) the last day of March, June, September and December in each year, (ii) the Termination Date, (iii) the date the Commitments are terminated
or reduced to zero and (iv) thereafter from time to time on demand of the Agent. In addition, the Borrower shall pay to the Agent for its own account and not the account of any Lender, an issuance fee in respect of each Letter of Credit equal to the
greater of (i) $500 or (ii) 0.15% per annum on the initial Stated Amount of such Letter of Credit (A) for the period from and including the date of issuance of such Letter of Credit through and including the expiration date of such Letter of Credit
and (B) if the expiration date of any Letter of Credit is extended (whether as a result of the operation of an automatic extension clause or otherwise), for the period from but excluding the previous expiration date to and including the extended
expiration date. The fees provided for in the immediately preceding sentence shall be nonrefundable and payable upon issuance (or in the case of an extension of the expiration date, on the previous expiration date). The Borrower shall pay directly
to the Agent from time to time on demand all commissions, charges, costs and expenses in the amounts customarily charged by the Agent from time to time in like circumstances with respect to the issuance of each Letter of Credit, drawings, amendments
and other transactions relating thereto. 
  
 (c) Extension
Fee. If the Borrower exercises its right to extend the Termination Date in accordance with Section 2.12., the Borrower agrees to pay to the Agent for the account of each Lender a fee equal to two-tenths of one percent (0.20%) of the amount of
such Lender’s Commitment (whether or not utilized) at the time of such extension. Such fee shall be due and payable in full on the date the Agent receives the Extension Request pursuant to such Section. 
  

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 (d) Administrative and Other Fees. The Borrower agrees to pay the administrative and other fees of
the Agent as may be agreed to in writing by the Borrower and the Agent from time to time. 
  
 Section 3.7. Computations. 
  
 Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or any other Obligations due hereunder shall be computed on the basis of a year of 365 or 366 days, as applicable, and the actual number of days
elapsed; provided, however, interest on LIBOR Rate Loans shall be computed on the basis of a year of 360 days and the actual number of day elapsed. 
  
 Section 3.8. Usury. 
  
 In no event shall the amount of interest due or payable on the Loans or other Obligations exceed the maximum rate of interest allowed by Applicable Law
and, if any such payment is paid by the Borrower or any other Loan Party or received by any Lender, then such excess sum shall be credited as a payment of principal, unless the Borrower shall notify the respective Lender in writing that the Borrower
elects to have such excess sum returned to it forthwith. It is the express intent of the parties hereto that the Borrower not pay and the Lenders not receive, directly or indirectly, in any manner whatsoever, interest in excess of that which may be
lawfully paid by the Borrower under Applicable Law. 
  
 Section 3.9. Agreement
Regarding Interest and Charges. 
  
 The parties hereto hereby
agree and stipulate that the only charge imposed upon the Borrower for the use of money in connection with this Agreement is and shall be the interest specifically described in Section 2.4.(a)(i) and (ii) and in Section 2.2.(c). Notwithstanding the
foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees, unused fees, closing fees, letter of credit fees, underwriting fees, default charges, late charges, funding or “breakage” charges, increased
cost charges, attorneys’ fees and reimbursement for costs and expenses paid by the Agent or any Lender to third parties or for damages incurred by the Agent or any Lender, in each case in connection with the transactions contemplated by this
Agreement and the other Loan Documents, are charges made to compensate the Agent or any such Lender for underwriting or administrative services and costs or losses performed or incurred, and to be performed or incurred, by the Agent and the Lenders
in connection with this Agreement and shall under no circumstances be deemed to be charges for the use of money. All charges other than charges for the use of money shall be fully earned and nonrefundable when due. 
  
 Section 3.10. Statements of Account. 
  
 The Agent will account to the Borrower monthly with a statement of Loans,
Letters of Credit, accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan Documents, and such account rendered by the Agent shall be deemed conclusive upon Borrower absent manifest error. The failure of
the Agent to deliver such a statement of accounts shall not relieve or discharge the Borrower from any of its obligations hereunder. 
  

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 Section 3.11. Defaulting Lenders. 
  
 (a) Generally. If for any reason any Lender (a “Defaulting Lender”) shall fail or refuse to perform any of
its obligations under this Agreement or any other Loan Document to which it is a party within the time period specified for performance of such obligation or, if no time period is specified, if such failure or refusal continues for a period of two
Business Days after notice from the Agent, then, in addition to the rights and remedies that may be available to the Agent or the Borrower under this Agreement or Applicable Law, such Defaulting Lender’s right to participate in the
administration of the Loans, this Agreement and the other Loan Documents, including without limitation, any right to vote in respect of, to consent to or to direct any action or inaction of the Agent or to be taken into account in the calculation of
the Requisite Lenders, shall be suspended during the pendency of such failure or refusal. If a Lender is a Defaulting Lender because it has failed to make timely payment to the Agent of any amount required to be paid to the Agent hereunder (without
giving effect to any notice or cure periods), in addition to other rights and remedies which the Agent or the Borrower may have under the immediately preceding provisions or otherwise, the Agent shall be entitled (i) to collect interest from such
Defaulting Lender on such delinquent payment for the period from the date on which the payment was due until the date on which the payment is made at the Federal Funds Rate, (ii) to withhold or setoff and to apply in satisfaction of the defaulted
payment and any related interest, any amounts otherwise payable to such Defaulting Lender under this Agreement or any other Loan Document and (iii) to bring an action or suit against such Defaulting Lender in a court of competent jurisdiction to
recover the defaulted amount and any related interest. Any amounts received by the Agent in respect of a Defaulting Lender’s Loans shall not be paid to such Defaulting Lender and shall be held uninvested by the Agent and either applied against
the purchase price of such Loans under the following subsection (b) or paid to such Defaulting Lender upon the Defaulting Lender’s curing of its default. 
  

(b) Purchase or Cancellation of Defaulting Lender’s Commitment. Any Lender who is not a Defaulting Lender shall have the right, but not the
obligation, in its sole discretion, to acquire all of a Defaulting Lender’s Commitment. Any Lender desiring to exercise such right shall give written notice thereof to the Agent and the Borrower no sooner than 2 Business Days and not later than
5 Business Days after such Defaulting Lender became a Defaulting Lender. If more than one Lender exercises such right, each such Lender shall have the right to acquire an amount of such Defaulting Lender’s Commitment in proportion to the
Commitments of the other Lenders exercising such right. If after such 5th Business Day, the Lenders have not elected to purchase all of the Commitment of such Defaulting Lender, then the Borrower may, by giving written notice thereof to the Agent,
such Defaulting Lender and the other Lenders, either (i) demand that such Defaulting Lender assign its Commitment to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(d) for the purchase price provided for below
or (ii) terminate the Commitment of such Defaulting Lender, whereupon such Defaulting Lender shall no longer be a party hereto or have any rights or obligations hereunder or under any of the other Loan Documents. The Agent, the Lenders and the
Titled Agents shall have no obligation whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee. Upon any such purchase or assignment, the Defaulting Lender’s interest in the Loans and its rights hereunder (but
not its liability in respect thereof or under the Loan Documents or this Agreement to the extent the same relate to the period prior to the effective date of the 

  

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purchase) shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and
transfer such interest to the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement and, notwithstanding Section 13.5.(d), shall pay to the Agent an assignment fee in the amount of $7,000. The purchase price for
the Commitment of a Defaulting Lender shall be equal to the amount of the principal balance of the Loans outstanding and owed by the Borrower to the Defaulting Lender. Prior to payment of such purchase price to a Defaulting Lender, the Agent shall
apply against such purchase price any amounts retained by the Agent pursuant to the last sentence of the immediately preceding subsection (a). The Defaulting Lender shall be entitled to receive amounts owed to it by the Borrower under the Loan
Documents which accrued prior to the date of the default by the Defaulting Lender, to the extent the same are received by the Agent from or on behalf of the Borrower. There shall be no recourse against any Lender or the Agent for the payment of such
sums except to the extent of the receipt of payments from any other party or in respect of the Loans. 
  
 Section 3.12. Taxes. 
  
 (a) Taxes Generally. All payments by the Borrower of principal of, and interest on, the Loans and all other Obligations shall be made free and clear of and without deduction for any present or future excise, stamp or other taxes,
fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes imposed on or measured by any Lender’s assets, net
income, receipts or branch profits, (iii) any taxes (other than withholding taxes) with respect to the Agent or a Lender that would not be imposed but for a connection between the Agent or such Lender and the jurisdiction imposing such taxes (other
than a connection arising solely by virtue of the activities of the Agent or such Lender pursuant to or in respect of this Agreement or any other Loan Document), and (iv) any taxes, fees, duties, levies, imposts, charges, deductions, withholdings or
other charges to the extent imposed as a result of the failure of the Agent or a Lender, as applicable, to provide and keep current (to the extent legally able) any certificates, documents or other evidence required to qualify for an exemption from,
or reduced rate of, any such taxes fees, duties, levies, imposts, charges, deductions, withholdings or other charges or required by the immediately following subsection (c) to be furnished by the Agent or such Lender, as applicable (such
non-excluded items being collectively called “Taxes”). If any withholding or deduction from any payment to be made by the Borrower hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrower will:

  
 (i) pay directly to the relevant Governmental
Authority the full amount required to be so withheld or deducted; 
  
 (ii) promptly forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such Governmental Authority; and 
  
 (iii) pay to the Agent for its account or the account of the
applicable Lender, as the case may be, such additional amount or amounts as is necessary to ensure that the net amount actually received by the Agent or such Lender will equal the full amount that the Agent or such Lender would have received had no
such withholding or deduction been required. 
  

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 (b) Tax Indemnification. If the Borrower fails to pay any Taxes when due to the appropriate
Governmental Authority or fails to remit to the Agent, for its account or the account of the respective Lender, as the case may be, the required receipts or other required documentary evidence, the Borrower shall indemnify the Agent and the Lenders
for any incremental Taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any such failure. For purposes of this Section, a distribution hereunder by the Agent or any Lender to or for the account of any
Lender shall be deemed a payment by the Borrower. 
  
 (c) Tax
Forms. Prior to the date that any Lender or Participant organized under the laws of a jurisdiction outside the United States of America becomes a party hereto, such Person shall deliver to the Borrower and the Agent such certificates, documents
or other evidence, as required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently
effective and duly executed by such Lender or Participant establishing that payments to it hereunder and under the Notes are (i) not subject to United States Federal backup withholding tax and (ii) not subject to United States Federal withholding
tax imposed under the Internal Revenue Code. Each such Lender or Participant shall, to the extent it may lawfully do so, (x) deliver further copies of such forms or other appropriate certifications on or before the date that any such forms expire or
become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrower or the Agent and (y) obtain such extensions of the time for filing, and renew such forms and certifications thereof, as may be
reasonably requested by the Borrower or the Agent. The Borrower shall not be required to pay any amount pursuant to the last sentence of subsection (a) above to any Lender or Participant that is organized under the laws of a jurisdiction outside of
the United States of America or the Agent, if it is organized under the laws of a jurisdiction outside of the United States of America, if such Lender, Participant or the Agent, as applicable, fails to comply with the requirements of this
subsection. If any such Lender or Participant, to the extent it may lawfully do so, fails to deliver the above forms or other documentation, then the Agent may withhold from any payments to be made to such Lender under any of the Loan Documents such
amounts as are required by the Internal Revenue Code. If any Governmental Authority asserts that the Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any
Lender, such Lender shall indemnify the Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section, and costs and expenses (including all reasonable fees and
disbursements of any law firm or other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel) of the Agent. The obligation of the Lenders under this Section shall survive the termination of the
Commitments, repayment of all Obligations and the resignation or replacement of the Agent. 
  

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 ARTICLE IV. COLLATERAL PROPERTIES 
  
 Section 4.1. Eligibility of Properties. 
  
 (a) As of the Agreement Date, the Lenders have approved for inclusion in
calculations of the Borrowing Base the Properties identified on Schedule 4.1. Upon satisfaction of the conditions set forth in Section 4.2., such Properties shall become Collateral Properties. 
  
 (b) If, after the Agreement Date, the Borrower desires that the Lenders
include any additional Property in calculations of the Borrowing Base, the Borrower shall so notify the Agent in writing. No Property will be evaluated by the Lenders unless it is an Eligible Property, and unless and until the Borrower delivers to
the Agent the following, in form and substance satisfactory to the Agent: 
  
 (i) a description of such Property, such description to include the age, location and size of such Property; 
  
 (ii) an operating statement with respect to such Property for each of the two prior fiscal years and for the current fiscal year through
the fiscal quarter most recently ending and for the current fiscal quarter, certified by a representative of the Borrower to the best of such representative’s knowledge as being true and correct in all material respects; provided, that with
respect to any period such Property was not owned by a Loan Party, such information shall only be required to be delivered to the extent reasonably available to the Borrower;  
  
 (iii) a pro forma operating statement or an operating budget for such Property with respect to the current
and immediately following fiscal years; 
  
 (iv)
a budget for capital expenditures for the immediately following 12-month period showing funding sources acceptable to the Agent; 
  
 (v) a “Phase I” environmental assessment of such Property not more than 12 months old prepared by an environmental engineering
firm acceptable to the Agent and upon which the Agent and the Lenders are expressly permitted to rely, and any additional environmental studies or assessments available to the Borrower performed with respect to such Property; and 
  
 (vi) such other information the Agent may reasonably request
in order to evaluate such Property. 
  
 (c) If, after receipt and
review of the foregoing, the Agent is prepared to proceed with acceptance of such Property as a Collateral Property, the Agent will so notify the Borrower and each Lender within 15 Business Days after receipt of all of the above items, and the Agent
will obtain an Appraisal of such Property in order to determine the Appraised Value thereof. After obtaining such Appraisal, the Agent will promptly submit the foregoing documents and information, including the Appraisal and the Appraised Value, to
the Lenders, for approval by the Requisite Lenders within 10 Business Days thereafter. Each Lender shall notify the Agent 

  

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whether it approves of the designation of such Property as a Collateral Property within 10 Business Days of receipt of all such documents and information. If
a Lender shall fail to so notify the Agent, then such Lender shall be deemed to have approved of such Property. Upon approval of such Property by the Requisite Lenders, and upon execution and delivery of all of the documents required to be provided
under Section 4.2., such Property shall become a Collateral Property. With respect to any use of proceeds of the Loans to repay Indebtedness in jurisdictions imposing a mortgage recording tax, the Lenders hereby agree to reasonably cooperate with
Borrower in taking an assignment of an existing mortgage or otherwise to achieve any mortgage tax savings. 
  
 Section 4.2. Conditions Precedent to a Property Becoming a Collateral Property. 
  
 No Property shall become a Collateral Property until the Borrower shall have caused to be executed and delivered to the Agent and the Lenders all
documents and instruments required to be so executed and delivered under Section 4.1., the Requisite Lenders shall have approved of, or shall have been deemed to have approved of, such Property as provided in such Section, and the Borrower shall
have caused to be executed and delivered to the Agent the following instruments, documents and agreements in respect of such Property, each to be in form and substance satisfactory to the Agent: 
  
 (a) a Security Deed executed by each Loan Party owning (or leasing) such
Property, the form of such Security Deed to be modified as appropriate to conform to the Applicable Laws of the jurisdiction in which such Property is located; 
  

(b) an Assignment of Leases and Rents executed by each such Loan Party, the form of such Assignment of Leases and Rents to be modified as appropriate
to conform to the Applicable Laws of the jurisdiction in which such Property is located; 
  
 (c) an Environmental Indemnity Agreement executed by each such Loan Party, and if not the Borrower, the Borrower; 
  
 (d) copies of (i) all Property Management Agreements, franchise or license agreements and all other material contracts, if any, which will relate to the
use, occupancy, operation, maintenance, enjoyment or ownership of such Property, and (ii) if such Property is not yet owned by the Borrower or a Subsidiary, the purchase agreement pursuant to which the Borrower or a Subsidiary is to acquire such
Property; 
  
 (e) a Property Management Contract Assignment
executed by each such Loan Party and the applicable property manager; 
  
 (f) copies of all material occupancy and operating permits, licenses, warranties and guaranties and any other rights or benefits of such Property, relating to the use, occupancy, operation, maintenance, enjoyment or ownership of such
Property; 
  
 (g) if requested by the Agent, collateral
assignments of the other material contracts, operating permits and licenses, franchise or license agreements and any other rights or benefits of such Property, relating to the use, occupancy, operation, maintenance, enjoyment or 

  

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ownership of such Property, such assignment to be evidenced by an Assignment of Contracts, Documents and Rights and an Assignment of Franchise Agreement, in
each case, executed by each such Loan Party and each other Person party thereto; 
  
 (h) an inspection report prepared by an architect or engineer acceptable to the Agent and addressed to the Agent for the benefit of the Lenders with respect to such Property; 
  
 (i) an ALTA 1992 Form mortgagee’s Policy of Title Insurance (with
deletion of the creditor’s rights exclusion and deletion of the mandatory arbitration provision) or other form acceptable to the Agent in favor of the Agent for the benefit of the Lenders with respect to such Property, including endorsements
with respect to such items of coverage as the Agent may reasonably request (and which endorsements are available in the applicable state), in a coverage amount equal to no less than 100% of the Appraised Value of such Property (subject to increase
without material additional cost through the use of “tie-in” endorsements or other provisions), issued by a title insurance company acceptable to the Agent and with coinsurance or reinsurance (with direct access agreements) with title
insurance companies acceptable to the Agent, showing the fee simple title (or a leasehold estate if leased under a Ground Lease) to the land and improvements described in the applicable Security Deed as vested in the Borrower or a Subsidiary, and
insuring that the Lien granted by such Security Deed is a valid first priority Lien against such Property, subject only to such restrictions, encumbrances, easements and reservations as are acceptable to the Agent and Permitted Liens (other than
Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens); 
  
 (j) copies of all documents of record reflected in Schedule B of such Policy of Title Insurance; 
  
 (k) if such Property is located in a Tie-In Jurisdiction, endorsements to all
other existing title insurance policies issued to the Agent with respect to all other Properties located in Tie-In Jurisdictions reflecting an increase in the aggregate insured amount under the “tie-in” endorsements to an amount equal to
the Collateral Property Value of all such Properties (including the Property to be included as a Collateral Property) but in no event in an amount in excess of the aggregate amount of the Commitments; 
  
 (l) a current or currently certified survey of such Property certified to the
Agent and the Lenders by a surveyor licensed in the jurisdiction where such Property is located to have been prepared in accordance with the then effective Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys; 
  
 (m) if not adequately covered by the survey certification, a certificate from
a licensed engineer or other professional satisfactory to the Agent that such Property is not located in a Special Flood Hazard Area as defined by the Federal Insurance Administration, or, if it is, evidence of flood insurance; 
  
 (n) evidence that such Property complies with applicable zoning and land use
laws or that such Property is the subject of a legal non-conforming use; 
  

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 (o) if reasonably requested by the Agent, copies of all engineering, mechanical, structural and
maintenance studies performed with respect to such Property not more than twelve months old; 
  
 (p) UCC, tax, judgment and lien search reports with respect to each such Loan Party and such Property in all necessary or appropriate jurisdictions and under all legal and appropriate trade names indicating that there
are no Liens of record on such Property or any of the Collateral relating thereto other than Permitted Liens (but not Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens) or Liens to be terminated prior to
such Property’s acceptance as a Collateral Property; 
  
 (q)
an opinion of counsel admitted to practice law in the jurisdiction in which such Property is located and acceptable to the Agent, addressed to the Agent and each Lender covering such legal matters relating to the transactions contemplated hereby as
the Agent may reasonably request; 
  
 (r) an opinion of counsel
qualified to render legal opinions regarding the law of the jurisdiction in which the Borrower is formed (or if the Property is owned by a Subsidiary, in the jurisdiction where such Subsidiary is formed) acceptable to the Agent, addressed to the
Agent and each Lender covering such legal matters relating to the formation and existence and power of the Person executing documents, and the due authorization, execution and delivery of the applicable Security Documents and other documents for
consummating the transactions contemplated hereby as the Agent may reasonably request; 
  
 (s) if such Property is owned by, or leased to, a Subsidiary (including a Taxable REIT Subsidiary) that is not already a Guarantor, an Accession Agreement executed by such Subsidiary and all of the items that would
have been required to be delivered to the Agent under Section 6.1.(viii) through (xii) had such Subsidiary been a Loan Party on the Effective Date; 
  
 (t) final certificates of occupancy relating to such Property, if available and if requested by the Agent; 
  
 (u) a Borrowing Base Certificate calculated after giving effect to the
inclusion of such Property as a Collateral Property; 
  
 (v)
evidence that the insurance required under the applicable Loan Document for such Property is then in effect; and 
  
 (w) such other due diligence materials, instruments, documents, agreements, financing statements, certificates, opinions and other Security Documents
consistent with the existing terms and conditions of the Loan Documents as the Agent may reasonably request. 
  
 Section 4.3. Release of Collateral Properties. 
  
 From time to time the Borrower may request, upon not less than 10 Business Days prior written notice to the Agent, that a Collateral Property be released from the Liens created by the 

  

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Security Documents applicable thereto, which release (the “Release”) shall be effected by the Agent if all of the following conditions are
satisfied as of the date of such Release: 
  
 (a) no Default or
Event of Default exists or would exist immediately after giving effect to such Release; 
  
 (b) the Borrower shall have delivered to the Agent all documents and instruments reasonably requested by the Agent in connection with such Release including, without limitation, the following: 
  
 (i) a quitclaim deed or other instrument to be used to
effect such Release; and 
  
 (ii) an appropriate
endorsement to the mortgagee title insurance policy in effect with respect to the affected Collateral Property (and appropriate corrective endorsements with respect to any other mortgagee policies of title insurance on Collateral Properties which
have tie-in clauses which are affected by the release); and 
  
 (c) the Borrower shall have delivered a compliance certificate showing pro forma compliance with the covenants set forth in Section 10.1. after giving effect to such Release; 
  
 (d) the Borrower shall have delivered to the Agent a Borrowing Base Certificate reflecting the Borrowing Base after giving
effect to such Release; 
  
 (e) the outstanding principal balance
of the Loans, together with the aggregate principal amount of all Letter of Credit Liabilities, will not exceed the Borrowing Base after giving effect to such Release and any prepayment to be made and/or the acceptance of any Property pursuant to
Section 4.1. which is to be given concurrently with such Release as an additional or replacement Collateral Property; and 
  
 (f) after giving effect to such Release there are at least two Collateral Properties. 
  
 In connection with a Release, the Borrower shall deliver to the Agent a certificate from the Borrower’s chief executive officer or
chief financial officer regarding the matters referred to in the immediately preceding clauses (a) and (c). After giving effect to any request that a Collateral Property owned by a Subsidiary cease to be included in determinations of the Borrowing
Base, the Borrower may request in writing that the Agent release, and upon receipt of such request the Agent shall release, such Subsidiary from the Guaranty so long as such Subsidiary does not own any other Collateral Property. 
  
 Section 4.4. Frequency of Calculations of Borrowing Base. 
  
 Initially, the Borrowing Base shall be the amount set forth as such in the
Borrowing Base Certificate delivered under Section 6.1. Thereafter, the Borrowing Base shall be the amount set forth as such in the Borrowing Base Certificate delivered from time to time under Section 4.2.(u), 4.3.(d) or 9.4.(h). Any increase in the
Collateral Property Value of a Collateral Property shall become effective as of the next determination of the Borrowing Base as provided in this Section, provided that prior to such date of determination (a) the applicable Borrowing 

  

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Base Certificate substantiates such increase and (b) if at such time such Collateral Property is subject to a Security Deed, the Borrower delivers to the
Agent (i) if the Property is not located in a Tie-In Jurisdiction, an endorsement to the title insurance policy in favor of the Agent with respect to such Property increasing the coverage amount thereof as related to such Property to not less than
100% of the Appraised Value for such Property and (ii) if the Property is located in a Tie-In Jurisdiction, an endorsement to the title insurance policy in favor of the Agent with respect to such Property increasing the coverage amount thereof as
related to such Property to not less than the Collateral Property Value of such Property, as well as endorsements to all other existing title insurance policies issued to the Agent with respect to all other Properties located in Tie-In Jurisdictions
reflecting an increase in the aggregate insured amount under the “tie-in” endorsements to an amount equal to the aggregate amount of the Collateral Property Values of all such Properties (including the Property which experienced the
increase in Collateral Property Value) but in no event in an amount in excess of the aggregate amount of the Commitments. 
  
 Section 4.5. Frequency of Appraisals. 
  
 (a) Collateral Properties. The Appraised Value of a Collateral Property shall be determined or redetermined, as applicable, under each of the
following circumstances: 
  
 (i) In connection
with the acceptance of a Property as a Collateral Property the Agent shall determine the Appraised Value thereof as provided in Section 4.1.; or 
  
 (ii) From time to time upon at least 5 Business Days written notice to the Borrower and at the Borrower’s expense, the Agent may (and
shall at the direction of the Requisite Lenders) redetermine the Appraised Value of a Collateral Property (based on a new Appraisal obtained by the Agent) in any of the following circumstances: 
  
 (x) if necessary in order to comply with FIRREA or other
Applicable Law relating to the Agent or the Lenders pursuant to the terms of Section 4.6.; or 
  
 (y) if the Agent determines an Appraisal of such Property is necessary in connection with its determination under Section 4.3. regarding
the release of a Collateral Property. 
  
 (iii)
On each anniversary of the date of the acceptance of each Property as a Collateral Property, the Agent shall redetermine the Appraised Value of such Collateral Property (based on a new Appraisal obtained by the Agent), at the Borrower’s
expense; or 
  
 (iv) Following any “Casualty
Event” under and as defined in any Security Deed or any “Condemnation Event” under and as defined in any Security Deed. 
  
 (b) Other Properties. With respect to each Property included in the calculation of Total Asset Value (and without duplication of the requirements
of the immediately preceding subsection (a)), the Agent shall redetermine the Appraised Value of each Property each year (based on a new Appraisal of each such Property obtained by the Agent), at the Borrower’s expense. 
  

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 (c) Upon the Borrower’s written request for a redetermination of the Appraised Value of a Property,
the Agent shall redetermine the Appraised Value of such Property (based on a new Appraisal of such Property obtained by the Agent), at the Borrower’s expense. 
  
 Section 4.6. Additional Appraisals Required under Applicable Law. 
  
 If under FIRREA or any other Applicable Law, a Lender is required to obtain an Appraisal of any Collateral Property in
addition to any other Appraisal previously obtained with respect to such Property pursuant to this Agreement, the Agent shall have the right to cause such an Appraisal to be prepared at the Borrower’s cost and expense. The Borrowing Base shall
be redetermined as a result of delivery of any such new Appraisal if Applicable Law requires such redetermination, in which case the Borrowing Base shall be redetermined in the manner required under such Applicable Law. 
  
 ARTICLE V. YIELD PROTECTION,
ETC. 
  
 Section 5.1. Additional Costs; Capital Adequacy.

  
 (a) Additional Costs. The Borrower shall promptly
pay to the Agent for the account of a Lender from time to time such amounts as such Lender may determine to be necessary to compensate such Lender for any costs incurred by such Lender that it reasonably determines are attributable to its making or
maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans hereunder, any reduction in any amount receivable by such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or such obligation or
the maintenance by such Lender of capital in respect of its Loans or its Commitment (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), to the extent resulting from any Regulatory Change
that: (i) changes the basis of taxation of any amounts payable to such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or its Commitment (other than taxes, fees, duties, levies, imposts, charges,
deductions, withholdings or other charges which are excluded from the definition of Taxes pursuant to the first sentence of Section 3.12.(a)); or (ii) imposes or modifies any reserve, special deposit or similar requirements (other than Regulation D
of the Board of Governors of the Federal Reserve System or other reserve requirement to the extent utilized in the determination of Adjusted LIBOR for such Loan) relating to any extensions of credit or other assets of, or any deposits with or other
liabilities of, such Lender, or any commitment of such Lender (including, without limitation, the Commitment of such Lender hereunder); or (iii) has or would have the effect of reducing the rate of return on capital of such Lender to a level below
that which such Lender could have achieved but for such Regulatory Change (taking into consideration such Lender’s policies with respect to capital adequacy). 
  
 (b) Lender’s Suspension of LIBOR Loans. Without limiting the effect of the provisions of the immediately
preceding subsection (a), if, by reason of any Regulatory Change, any Lender either (i) incurs Additional Costs based on or measured by the excess above a specified level of the amount of a category of deposits or other liabilities of such Lender
that includes deposits by reference to which the interest rate on LIBOR Loans is determined as provided in this Agreement or a category of extensions of credit or other assets of such Lender 

  

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that includes LIBOR Loans or (ii) becomes subject to restrictions on the amount of such a category of liabilities or assets that it may hold, then, if such
Lender so elects by notice to the Borrower (with a copy to the Agent), the obligation of such Lender to make or Continue, or to Convert any other Type of Loans into, LIBOR Loans hereunder shall be suspended until such Regulatory Change ceases to be
in effect (in which case the provisions of Section 5.5. shall apply). 
  
 (c) Additional Costs in Respect of Letters of Credit. Without limiting the obligations of the Borrower under the preceding subsections of this Section (but without duplication), if as a result of any Regulatory Change or any
risk-based capital guideline or other requirement heretofore or hereafter issued by any Governmental Authority there shall be imposed, modified or deemed applicable any tax, reserve, special deposit, capital adequacy or similar requirement against
or with respect to or measured by reference to Letters of Credit and the result shall be to increase the cost to the Agent of issuing (or any Lender of purchasing participations in) or maintaining its obligation hereunder to issue (or purchase
participations in) any Letter of Credit or reduce any amount receivable by the Agent or any Lender hereunder in respect of any Letter of Credit, then, upon demand by the Agent or such Lender, the Borrower shall pay promptly, and in any event within
3 Business Days of demand, to the Agent for its account or the account of such Lender, as applicable, from time to time as specified by the Agent or a Lender, such additional amounts as shall be sufficient to compensate the Agent or such Lender for
such increased costs or reductions in amount. 
  
 (d)
Notification and Determination of Additional Costs. Each of the Agent and each Lender agrees to notify the Borrower of any event occurring after the Agreement Date entitling the Agent or such Lender to compensation under any of the preceding
subsections of this Section as promptly as practicable; provided, however, the failure of the Agent or any Lender to give such notice shall not release the Borrower from any of its obligations hereunder (and in the case of a Lender, to the Agent);
provided further that no Lender shall be entitled to claim any additional cost, reduction in amounts, loss, tax or other additional amount under this Article V if such Lender fails to provide such notice to the Borrower within 180 days of the date
such Lender becomes aware of the occurrence of the event giving rise to the additional cost, reduction in amounts, loss, tax or other additional amount. The Agent or such Lender agrees to furnish to the Borrower (and in the case of a Lender, to the
Agent) a certificate setting forth in reasonable detail the basis and amount of each request by the Agent or such Lender for compensation under this Section. Absent manifest error, determinations by the Agent or any Lender of the effect of any
Regulatory Change shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith. 
  
 Section 5.2. Suspension of LIBOR Loans. 
  
 Anything herein to the contrary notwithstanding, if, on or prior to the determination of Adjusted LIBOR for any Interest Period: 
  
 (a) the Agent reasonably determines (which determination
shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining Adjusted LIBOR for such Interest Period, or 
  

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 (b) the Agent reasonably determines (which determination shall be conclusive) that
Adjusted LIBOR will not adequately and fairly reflect the cost to the Lenders of making or maintaining LIBOR Loans for such Interest Period; 
  
 then the Agent shall give the Borrower and each Lender prompt notice thereof and, so long as such condition remains in effect, the Lenders shall be under no obligation
to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrower shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either repay such Loan or Convert such
Loan into a Base Rate Loan. 
  
 Section 5.3. Illegality. 
  
 Notwithstanding any other provision of this Agreement, if any Lender shall
reasonably determine (which determination shall be conclusive and binding) that it has become unlawful for such Lender to honor its obligation to make or maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower thereof
(with a copy to the Agent) and such Lender’s obligation to make or Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended until such time as such Lender may again make and maintain LIBOR Loans (in which case the
provisions of Section 5.5. shall be applicable). 
  
 Section 5.4. Compensation.

  
 The Borrower shall pay to the Agent for the account of
each Lender, upon the request of such Lender through the Agent, such amount or amounts as shall be sufficient (in the reasonable opinion of such Lender) to compensate it for any loss, cost or expense (excluding lost profits) that such Lender
reasonably determines is attributable to: 
  
 (a)
any payment or prepayment (whether mandatory or optional) of a LIBOR Loan, or Conversion of a LIBOR Loan, made by such Lender for any reason (including, without limitation, acceleration) on a date other than the last day of the Interest Period for
such Loan; or 
  
 (b) any failure by the Borrower
for any reason (including, without limitation, the failure of any of the applicable conditions precedent specified in Article VI. to be satisfied) to borrow a LIBOR Loan from such Lender on the requested date for such borrowing, or to Convert a Base
Rate Loan into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such Conversion or Continuation. 
  
 Upon the Borrower’s request, any Lender requesting compensation under this Section shall provide the Borrower with a statement setting forth in reasonable detail the basis for requesting such compensation and the
method for determining the amount thereof. Absent manifest error, determinations by any Lender in any such statement shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith. 
  

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 Section 5.5. Treatment of Affected Loans. 
  
 If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be
suspended pursuant to Section 5.1.(b) or 5.3., then such Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion
required by Section 5.1.(b) or 5.3., on such earlier date as such Lender may specify to the Borrower with a copy to the Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 5.1. or 5.3.
that gave rise to such Conversion no longer exist: 
  
 (a) to the extent that such Lender’s LIBOR Loans have been so Converted, all payments and prepayments of principal that would otherwise be applied to such Lender’s LIBOR Loans shall be applied instead to its Base Rate Loans; and

  
 (b) all Loans that would otherwise be made or
Continued by such Lender as LIBOR Loans shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans. 
  
 If such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances
specified in Section 5.1. or 5.3. that gave rise to the Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when LIBOR
Loans made by other Lenders are outstanding, then such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so that,
after giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitments. 
  
 Section 5.6. Change of Lending Office. 
  
 Each Lender agrees that it will use reasonable efforts to designate an
alternate Lending Office with respect to any of its Loans affected by the matters or circumstances described in Sections 3.12., 5.1. or 5.3. to reduce the liability of the Borrower or avoid the results provided thereunder, so long as such
designation is not disadvantageous to such Lender as determined by such Lender in its sole discretion, except that such Lender shall have no obligation to designate a Lending Office located in the United States of America. 
  
 Section 5.7. Assumptions Concerning Funding of LIBOR Loans. 
  
 Calculation of all amounts payable to a Lender under this Article V. shall
be made as though such Lender had actually funded LIBOR Loans through the purchase of deposits in the relevant market bearing interest at the rate applicable to such LIBOR Loans in an amount equal to the amount of the LIBOR Loans and having a
maturity comparable to the relevant Interest Period; provided, however, that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be used only for calculation of amounts payable under this Article
V. 
  

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 Section 5.8. Affected Lenders. 
  
 If (a) a Lender requests compensation pursuant to Section 3.12. or 5.1., and the Requisite Lenders are not also doing the
same, or (b) the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 5.1.(b) or 5.3. but the obligation of the Requisite Lenders shall not have been
suspended under such Sections, or (c) a Lender does not vote in favor of any amendment, modification or waiver to this Agreement which, pursuant to Section 13.6., requires the vote of all of the Lenders, and the Requisite Lenders shall have voted in
favor of such amendment, modification or waiver, or (d) at any time in which there are only three or fewer Lenders, a Lender disapproves of the addition of a Property as a Collateral Property and the other two Lenders have approved the addition of
such Property as a Collateral Property, or (e) at any time in which there are more than three Lenders, a Lender twice disapproves of the addition of a Property as a Collateral Property and in each case Lenders which together with such Lender would
constitute Requisite Lenders shall have approved the addition of such Property (or Properties) as a Collateral Property then, so long as there does not then exist any Default or Event of Default, the Borrower may demand that such Lender (the
“Affected Lender”), and upon such demand the Affected Lender shall promptly, assign its Commitment to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(d) for a purchase price equal to the aggregate
principal balance of all Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees owing to the Affected Lender, or any other amount as may be mutually agreed upon by such Affected Lender and
Eligible Assignee. Each of the Agent and the Affected Lender shall reasonably cooperate in effectuating the replacement of such Affected Lender under this Section, but at no time shall the Agent, such Affected Lender nor any other Lender nor any
Titled Agent be obligated in any way whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee. The exercise by the Borrower of its rights under this Section shall be at the Borrower’s sole cost and expense and at
no cost or expense to the Agent, the Affected Lender or any of the other Lenders. The terms of this Section shall not in any way limit the Borrower’s obligation to pay to any Affected Lender compensation owing to such Affected Lender pursuant
to this Agreement (including, without limitation, pursuant to Sections 3.12., 5.1. or 5.4.) with respect to the periods up to the date of replacement. 
  
 ARTICLE VI. CONDITIONS PRECEDENT 
  
 Section 6.1. Initial Conditions Precedent. 
  

The obligation of the Lenders to effect or permit the occurrence of the first Credit Event hereunder, whether as the making of a Loan or the issuance
of a Letter of Credit, is subject to the following conditions precedent: 
  
 (a) The Agent shall have received each of the following, in form and substance satisfactory to the Agent: 
  
 (i) counterparts of this Agreement executed by each of the parties hereto; 
  

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 (ii) Revolving Notes executed by the Borrower, payable to each Lender and complying with
the applicable provisions of Section 2.10., and the Swingline Note executed by the Borrower; 
  
 (iii) the Guaranty executed by the Parent and each Subsidiary that owns or leases a Collateral Property as of the Effective Date and each
other Subsidiary (other than Excluded Subsidiaries) required to become a Guarantor under Section 8.14.; 
  
 (iv) the Pledge Agreement executed by each Pledgor existing as of the Effective Date; 
  
 (v) all certificates representing any shares of Equity
Interests pledged pursuant to the Pledge Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the Pledgor thereof, together with an Acknowledgment and Consent, substantially in
the form of Schedule 2 to the Pledge Agreement, duly executed by any issuer of any Equity Interest pledged pursuant to the Pledge Agreement that is not itself a party to the Pledge Agreement; 
  
 (vi) each document (including, without limitation, any UCC
financing statement) required by the Security Documents or under Applicable Law or reasonably deemed necessary or appropriate by the Agent to be filed, registered or recorded in order to create in favor of the Agent, for the benefit of the Lenders,
a perfected first-priority Lien (other than Permitted Liens (but not Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens)) on the Collateral described therein, shall have been filed, registered or recorded
or shall have been delivered to the Agent and be in proper form for filing, registration or recordation; 
  
 (vii) the results of a recent lien search in each of the jurisdictions in which UCC financing statements or other filings or recordations
should be made to evidence or perfect security interests in Collateral being granted under the Pledge Agreement as of the Effective Date, and such search shall reveal no Liens of record with respect to any of such Collateral other than Permitted
Liens (but not Liens of the types described in clauses (f), (g) and (i) of the definition of Permitted Liens) or Liens to be terminated prior to the Effective Date; 
  
 (viii) the articles of incorporation, articles of organization, certificate of limited partnership or other
comparable organizational instrument (if any) of the Borrower and each other Loan Party certified as of a recent date by the Secretary of State of the state of formation of such Loan Party; 
  
 (ix) a certificate of good standing or certificate of
similar meaning with respect to each Loan Party issued as of a recent date by the Secretary of State of the state of formation of each such Loan Party and certificates of qualification to transact business or other comparable certificates issued by
each Secretary of State (and any state department of taxation, as applicable) of each state in which such Loan Party is required to be so 

  

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qualified and where the failure to be so qualified could reasonably be expected to have a Material Adverse Effect; 
  
 (x) a certificate of incumbency signed by the Secretary or
Assistant Secretary (or other individual performing similar functions) of each Loan Party with respect to each of the officers of such Loan Party authorized to execute and deliver the Loan Documents to which such Loan Party is a party, and in the
case of the Borrower, and the officers of the Borrower then authorized to deliver Notices of Borrowing, Notices of Swingline Borrowings, Notices of Continuation and Notices of Conversion and to request the issuance of Letters of Credit; 

 
 (xi) copies certified by the Secretary or Assistant
Secretary (or other individual performing similar functions) of each Loan Party of (i) the by-laws of such Loan Party, if a corporation, the operating agreement, if a limited liability company, the partnership agreement, if a limited or general
partnership, or other comparable document in the case of any other form of legal entity and (ii) all corporate, partnership, member or other necessary action taken by such Loan Party to authorize the execution, delivery and performance of the Loan
Documents to which it is a party; 
  
 (xii) an
opinion of counsel to the Loan Parties, addressed to the Agent, the Lenders and the Swingline Lender, addressing the matters set forth in Exhibit M; 
  
 (xiii) the Fees then due and payable under Section 3.6., and any other Fees payable to the Agent, the Titled Agents and the Lenders on or
prior to the Effective Date; 
  
 (xiv) a
Compliance Certificate calculated as of the Effective Date (giving pro forma effect to the financing evidenced by this Agreement and the use of the proceeds of the Loans to be funded on the Agreement Date); 
  
 (xv) a Borrowing Base Certificate calculated as of the
Effective Date; and 
  
 (xvi) such other
documents, agreements and instruments as the Agent on behalf of the Lenders may reasonably request; and 
  
 (b) In the good faith and reasonable judgment of the Agent and the Lenders: 
  
 (i) there shall not have occurred or become known to the Agent or any of the Lenders any event, condition,
situation or status since the date of the information contained in the financial and business projections, budgets, pro forma data and forecasts concerning the Parent, the Borrower and its other Subsidiaries delivered to the Agent and the Lenders
prior to the Agreement Date that has had or could reasonably be expected to result in a Material Adverse Effect; 
  
 (ii) no litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding shall be pending or threatened in
writing which could reasonably be expected to (1) result in a Material Adverse Effect or (2) restrain or enjoin, impose 

  

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materially burdensome conditions on, or otherwise materially and adversely affect the ability of any Loan Party to fulfill its obligations under the Loan
Documents to which it is a party; and 
  
 (iii)
the Parent, the Borrower and its other Subsidiaries shall have received all approvals, consents and waivers, and shall have made or given all necessary filings and notices as shall be required to consummate the transactions contemplated hereby
without the occurrence of any default under, conflict with or violation of (1) any Applicable Law or (2) any agreement, document or instrument to which the Borrower or any other Loan Party is a party or by which any of them or their respective
properties is bound, except for such approvals, consents, waivers, filings and notices the receipt, making or giving of which would not reasonably be likely to (A) have a Material Adverse Effect, or (B) restrain or enjoin, impose materially
burdensome conditions on, or otherwise materially and adversely affect the ability of the Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to which it is a party. 
  
 Section 6.2. Conditions Precedent to All Loans and Letters of Credit. 
  
 The obligations of the Lenders to make any Loans, of the Agent to issue
Letters of Credit, and of the Swingline Lender to make any Swingline Loan are all subject to the further condition precedent that: (a) no Default or Event of Default shall exist as of the date of the making of such Loan or date of issuance of such
Letter of Credit or would exist immediately after giving effect thereto; and (b) the representations and warranties made or deemed made by each Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all
material respects on and as of the date of the making of such Loan or date of issuance of such Letter of Credit with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the
Loan Documents. Each Credit Event shall constitute a certification by the Borrower to the effect set forth in the preceding sentence (both as of the date of the giving of notice relating to such Credit Event and, unless the Borrower otherwise
notifies the Agent prior to the date of such Credit Event, as of the date of the occurrence of such Credit Event). In addition, if such Credit Event is the making of a Loan or the issuance of a Letter of Credit, the Borrower shall be deemed to have
represented to the Agent and the Lenders at the time such Loan is made or Letter of Credit issued that all conditions to the occurrence of such Credit Event contained in Article VI. have been satisfied. 
  

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 ARTICLE VII. REPRESENTATIONS AND WARRANTIES

  
 Section 7.1. Representations and Warranties. 
  
 In order to induce the Agent and each Lender to enter into this Agreement
and to make Loans and issue Letters of Credit, the Parent and the Borrower represent and warrant to the Agent and each Lender as follows: 
  
 (a) Organization; Power; Qualification. Each of the Parent, the Borrower, the other Loan Parties and each other Subsidiary is a corporation,
partnership or other legal entity, duly organized or formed, validly existing and in good standing under the jurisdiction of its incorporation or formation, has the power and authority to own or lease its respective properties and to carry on its
respective business as now being and hereafter proposed to be conducted and is duly qualified and is in good standing as a foreign corporation, partnership or other legal entity, and authorized to do business, in each jurisdiction in which the
character of its properties or the nature of its business requires such qualification or authorization and where the failure to be so qualified or authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.

  
 (b) Ownership Structure. As of the Agreement Date, Part
I of Schedule 7.1.(b) is a complete and correct list of all Subsidiaries of the Parent setting forth for each such Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding any Equity Interests in such Subsidiary,
(iii) the nature of the Equity Interests held by each such Person, (iv) the percentage of ownership of such Subsidiary represented by such Equity Interests and (v) whether such Subsidiary is a Material Subsidiary or a Significant Subsidiary. Except
as disclosed in such Schedule, as of the Agreement Date (i) each of the Parent and its Subsidiaries owns, free and clear of all Liens (other than Permitted Liens), and has the unencumbered right to vote, all outstanding Equity Interests in each
Person shown to be held by it on such Schedule, (ii) all of the issued and outstanding capital stock of each such Person organized as a corporation is validly issued, fully paid and nonassessable and (iii) there are no outstanding subscriptions,
options, warrants, commitments, preemptive rights or agreements of any kind (including, without limitation, any stockholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or outstanding securities convertible
into, any additional shares of capital stock of any class, or partnership or other ownership interests of any type in, any such Person. As of the Agreement Date Part II of Schedule 7.1.(b) correctly sets forth all Unconsolidated Affiliates of the
Parent, including the correct legal name of such Person, the type of legal entity which each such Person is, and all Equity Interests in such Person held directly or indirectly by the Parent. 
  
 (c) Authorization of Agreement, Etc. The Borrower has the right and
power, and has taken all necessary action to authorize it, to borrow and obtain other extensions of credit hereunder. Each Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each
of the Loan Documents to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby. The Loan Documents to which any Loan Party is a party have been duly executed and delivered by
the duly authorized officers, agents and/or signatories of such Person and each is a legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms except as the same may be limited by
bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein and as
may be limited by equitable principles generally. 
  
 (d)
Compliance of Loan Documents with Laws, Etc. The execution, delivery and performance of this Agreement, the Notes and the other Loan Documents to which any Loan Party is a party in accordance with their respective terms and the borrowings and
other 

  

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extensions of credit hereunder do not and will not, by the passage of time, the giving of notice, or both: (i) require any Governmental Approval or violate
any Applicable Law (including all Environmental Laws) relating to any Loan Party; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of any Loan Party, or any indenture, agreement or other instrument
to which any Loan Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by any Loan
Party other than those created pursuant to the Loan Documents. 
  
 (e) Compliance with Law; Governmental Approvals. Each Loan Party is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws (including without limitation, Environmental Laws)
relating to such Loan Party except for noncompliances which, and Governmental Approvals the failure to possess which, could not, in the aggregate, reasonably be expected to cause a Default or Event of Default or have a Material Adverse Effect.

  
 (f) Title to Properties; Liens. As of the Agreement
Date, Part I of Schedule 7.1.(f) is a complete and correct listing of all of the real property owned or leased by the Parent, the Borrower and each other Subsidiary. Each such Person has good, marketable and legal title to, or a valid leasehold
interest in, its respective assets (other than Permitted Liens and Liens on assets of an Excluded Subsidiary securing the Indebtedness which causes such Subsidiary to be an Excluded Subsidiary). As of the Agreement Date, there are no Liens against
any assets of the Parent, the Borrower or any other Subsidiary except for Permitted Liens and Liens on assets of an Excluded Subsidiary securing the Indebtedness which causes such Subsidiary to be an Excluded Subsidiary. 
  
 (g) Existing Indebtedness. Schedule 7.1.(g) is, as of March 25, 2005,
a complete and correct listing of all Indebtedness of the Parent and its Subsidiaries, including without limitation, Guarantees of the Parent and its Subsidiaries, and indicating whether such Indebtedness is Secured Indebtedness or Unsecured
Indebtedness. Except as set forth on Schedule 7.1.(g), during the period from such date to the Agreement Date, neither the Parent nor any Subsidiary incurred any material Indebtedness. 
  
 (h) Material Contracts. Excluding Material Contracts evidencing
Indebtedness listed on Schedule 7.1.(g), if any, Schedule 7.1.(h) is, as of the Agreement Date, a true, correct and complete listing of all Material Contracts. No event or condition which with the giving of notice, the lapse of time, or both, would
permit any party to any such Material Contract to terminate such Material Contract exists. 
  
 (i) Litigation. Except as set forth on Schedule 7.1.(i), there are no actions, suits, investigations or proceedings pending (nor, to the knowledge of the Parent, are there any actions, suits or proceedings
threatened) against or in any other way relating adversely to or affecting the Parent or any of its Subsidiaries or any of their respective property in any court or before any arbitrator of any kind or before or by any other Governmental Authority
which could reasonably be expected to have a Material Adverse Effect. 
  

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 (j) Taxes. Subject to applicable extensions, all federal, state and other tax returns of the
Parent and its Subsidiaries required by Applicable Law to be filed have been duly filed, and all federal, state and other taxes, assessments and other governmental charges or levies upon the Parent and its Subsidiaries and their respective
properties, income, profits and assets which are due and payable have been paid, except any such nonpayment which is at the time permitted under Section 8.6. As of the Agreement Date, none of the United States income tax returns of the Parent or any
of its Subsidiaries is under audit. All charges, accruals and reserves on the books of the Parent and each of its Subsidiaries and each other Loan Party in respect of any taxes or other governmental charges are in accordance with GAAP. 

 
 (k) Financial Statements. The Parent has furnished to each Lender
copies of (i) the audited consolidated balance sheet of the Parent and its consolidated Subsidiaries for the fiscal year ending December 31, 2004, and the related audited consolidated statements of operations, cash flows and shareholders’
equity for the fiscal year ending on such date, with the opinion thereon of KPMG LLP, and (ii) the unaudited consolidated balance sheet of the Parent and its consolidated Subsidiaries for the fiscal quarter ending March 25, 2005, and the related
unaudited consolidated statements of operations, cash flows and shareholders’ equity of the Parent and its consolidated Subsidiaries for the period of one fiscal quarter ending on such date. Such financial statements (including in each case
related schedules and notes) present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the consolidated financial position of the Parent and its consolidated Subsidiaries as at their
respective dates and the results of operations and the cash flow for such periods (subject, as to interim statements, to changes resulting from normal year-end audit adjustments). Neither the Parent nor any of its Subsidiaries has on the Agreement
Date any material contingent liabilities, liabilities, liabilities for taxes, unusual or long-term commitments or unrealized or forward anticipated losses from any unfavorable commitments that would be required to be set forth in its financial
statements or in the notes thereto, except as referred to or reflected or provided for in said financial statements. 
  
 (l) No Material Adverse Change. Since December 31, 2004, there has been no material adverse change in the business, assets, liabilities, financial
condition or results of operations of the Parent and its Subsidiaries or the Borrower and its Subsidiaries, in each case, taken as a whole. Each of the Loan Parties is Solvent. 
  
 (m) ERISA. Each member of the ERISA Group is in compliance with its obligations under the minimum funding standards
of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan, except in each case for noncompliances which could not
reasonably be expected to have a Material Adverse Effect. As of the Agreement Date, no member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of any Plan, (ii)
failed to make any contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement, which has resulted or could result in the imposition of a Lien or the
posting of a bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. 
  

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 (n) Not Plan Assets; No Prohibited Transaction. None of the assets of the Parent, the Borrower or
any Subsidiary constitutes “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder. The execution, delivery and performance of this Agreement and the other Loan Documents,
and the borrowing and repayment of amounts hereunder, do not and will not constitute “prohibited transactions” under Section 406 of ERISA or Section 4975 of the Internal Revenue Code. 
  
 (o) Absence of Defaults. None of the Parent, the Borrower or any other
Subsidiary is in default under its articles of incorporation, bylaws, partnership agreement or other similar organizational documents, and no event has occurred, which has not been remedied, cured or waived, which, in any such case: (i) constitutes
a Default or an Event of Default; or (ii) constitutes, or which with the passage of time, the giving of notice, or both, would constitute, a default or event of default by the Parent, the Borrower or any other Subsidiary under any agreement (other
than this Agreement) or judgment, decree or order to which the Parent, the Borrower or any other Subsidiary is a party or by which the Parent, the Borrower or any other Subsidiary or any of their respective properties may be bound where such default
or event of default could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 (p) Environmental Laws. Each of the Parent, the Borrower and its other Subsidiaries has obtained all Governmental Approvals which are required
under Environmental Laws and is in compliance with all terms and conditions of such Governmental Approvals which the failure to obtain or to comply with could reasonably be expected to have a Material Adverse Effect. Except for any of the following
matters that could not be reasonably expected to have a Material Adverse Effect, (i) neither the Parent or the Borrower is aware of, and has received notice of, any past, present, or future events, conditions, circumstances, activities, practices,
incidents, actions, or plans which, with respect to the Parent, the Borrower or any of its other Subsidiaries, may interfere with or prevent compliance or continued compliance with Environmental Laws, or may give rise to any common-law or legal
liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study, or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling or
the emission, discharge, release or threatened release into the environment, of any Hazardous Material; and (ii) there is no civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter, notice of violation,
investigation, or proceeding pending or, to the Borrower’s knowledge after due inquiry, threatened, against the Parent, the Borrower or any of its other Subsidiaries relating in any way to Environmental Laws. 
  
 (q) Investment Company; Public Utility Holding Company. None of the
Parent, the Borrower or any other Subsidiary is (i) an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding
company” or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company”, within the meaning of the
Public Utility Holding Company Act of 1935, as amended, or (iii) subject to any other Applicable Law which purports to regulate or restrict its ability to borrow money or to 

  

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consummate the transactions contemplated by this Agreement or to perform its obligations under any Loan Document to which it is a party. 
  
 (r) Margin Stock. None of the Parent, the Borrower or any other
Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying “margin stock” within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System. 
  
 (s)
Affiliate Transactions. Except as permitted by Section 10.10., none of the Parent, the Borrower or any other Subsidiary is a party to any transaction with an Affiliate. 
  
 (t) Intellectual Property. Each of the Parent, the Borrower and each other Subsidiary owns or has the right to use,
under valid license agreements or otherwise, all material patents, licenses, franchises, trademarks, trademark rights, trade names, trade name rights, trade secrets and copyrights (collectively, “Intellectual Property”) necessary to the
conduct of its businesses as now conducted and as contemplated by the Loan Documents, without known conflict with any patent, license, franchise, trademark, trade secret, trade name, copyright, or other proprietary right of any other Person. The
Parent, the Borrower and each other Subsidiary have taken all such steps as they deem reasonably necessary to protect their respective rights under and with respect to such Intellectual Property. 
  
 (u) Business. As of the Agreement Date, the Parent, the Borrower and
the other Subsidiaries are engaged in the business of developing, construction, acquiring, owning and operating hotel properties, together with other business activities incidental thereto. 
  
 (v) Broker’s Fees. No broker’s or finder’s fee,
commission or similar compensation will be payable with respect to the transactions contemplated hereby. No other similar fees or commissions will be payable by any Loan Party for any other services rendered to the Parent, the Borrower or any of its
other Subsidiaries ancillary to the transactions contemplated hereby. 
  
 (w) Accuracy and Completeness of Information. No written information, report or other papers or data (excluding financial projections and other forward looking statements) furnished to the Agent or any Lender by, on behalf of, or at
the direction of, the Parent, the Borrower or any other Subsidiary in connection with or relating in any way to this Agreement, contained any untrue statement of a fact material to the creditworthiness of the Parent, the Borrower or any other
Subsidiary or omitted to state a material fact necessary in order to make such statements contained therein, in light of the circumstances under which they were made, not misleading. All financial statements (including in each case all related
schedules and notes) furnished to the Agent or any Lender by, on behalf of, or at the direction of, the Parent, the Borrower or any other Subsidiary in connection with or relating in any way to this Agreement, present fairly, in all material
respects and in accordance with GAAP consistently applied throughout the periods involved, the financial position of the Persons involved as at the date thereof and the results of operations for such periods (subject, as to interim statements, to
changes resulting from normal year-end audit adjustments). All financial projections and other forward looking statements prepared by or on behalf of the Parent, the Borrower or any other Subsidiary that have been or may hereafter be made available
to the Agent or any Lender were or 

  

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will be prepared in good faith based on reasonable assumptions but with it being understood that such projections and statement are not a guarantee of future
performance. As of the Effective Date, no fact is known to the Parent or the Borrower which has had, or may in the future have (so far as the Parent or the Borrower can reasonably foresee), a Material Adverse Effect which has not been set forth in
the financial statements referred to in Section 7.1.(k) or in such information, reports or other papers or data or otherwise disclosed in writing to the Agent and the Lenders. 
  
 (x) REIT Status. For all dates after January 1, 2005, the Parent is organized and operated in a manner such that upon
its election of REIT status, it shall be treated as a REIT for purposes of the Internal Revenue Code (beginning with the effective date of such election) and each of its Subsidiaries that are corporations (if any) are organized and operated in a
manner such that upon such election they will qualify as Qualified REIT Subsidiaries or Taxable REIT Subsidiaries (beginning with the effective date of such election), except where a Subsidiary’s failure to so qualify could not reasonably be
expected to have an adverse effect on the Parent’s qualification as a REIT. For all dates thereafter, the Parent is qualified as a REIT and each of its Subsidiaries that is a corporation is a Qualified REIT Subsidiary or Taxable REIT Subsidiary
(beginning with the effective date of such election), except where a Subsidiary’s failure to so qualify could not reasonably be expected to have an adverse effect on the Parent’s qualification as a REIT. 
  
 (y) Security Documents. The Pledge Agreement is effective to create in
favor of the Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. Such security interest will be perfected (i) with respect to any such Collateral that is a
“security” (as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Agent with duly executed stock powers with respect thereto, (ii) with respect to any such Collateral that is a
“security” (as such term is defined in the UCC) but is not evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the Pledgor or when
“control” (as such term is defined in the UCC) is established by the Agent over such interests in accordance with the provision of Section 8-106 of the UCC, or any successor provision, and (iii) with respect to any such Collateral that is
not a “security” (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the Pledgor. 
  
 (z) Foreign Assets Control. None of the Borrower, any Subsidiary or
any Affiliate of the Borrower: (i) is a Sanctioned Person, (ii) has more than 10% of its assets in Sanctioned Entities, or (iii) derives more than 10% of its operating income from investments in, or transactions with, Sanctioned Persons or
Sanctioned Entities. 
  
 Section 7.2. Survival of Representations and
Warranties, Etc. 
  
 All statements contained in any
certificate, financial statement or other instrument delivered by or on behalf of the Parent, the Borrower or any other Subsidiary to the Agent or any Lender pursuant to or in connection with this Agreement or any of the other Loan Documents
(including, but not limited to, any such statement made in or in connection with any amendment thereto or any statement contained in any certificate, financial statement or other instrument 

  

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delivered by or on behalf of the Parent and the Borrower prior to the Agreement Date and delivered to the Agent or any Lender in connection with the
underwriting or closing of the transactions contemplated hereby) shall constitute representations and warranties made by the Parent and or the Borrower in favor of the Agent or any of the Lenders under this Agreement. All representations and
warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and as of the Agreement Date, the Effective Date, the date on which any extension of the Termination Date is effectuated pursuant to Section 2.12. and
the date of the occurrence of any Credit Event, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all
material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents. All such representations and warranties shall survive the effectiveness of this Agreement, the execution and
delivery of the Loan Documents and the making of the Loans and the issuance of the Letters of Credit. 
  
 ARTICLE VIII. AFFIRMATIVE COVENANTS 
  
 For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise
consent in the manner provided for in Section 13.6., the Parent and the Borrower shall comply with the following covenants: 
  
 Section 8.1. Preservation of Existence and Similar Matters. 
  
 Except as otherwise permitted under Section 10.6., the Parent and the Borrower shall, and shall cause each Subsidiary to, preserve and maintain its
respective existence, rights, franchises, licenses and privileges in the jurisdiction of its incorporation or formation and qualify and remain qualified and authorized to do business in each jurisdiction in which the character of its properties or
the nature of its business requires such qualification and authorization and where the failure to be so authorized and qualified could reasonably be expected to have a Material Adverse Effect. 
  
 Section 8.2. Compliance with Applicable Law and Material Contracts. 
  
 The Parent and the Borrower shall, and shall cause each Subsidiary to,
comply with (a) all Applicable Laws, including the obtaining of all Governmental Approvals, the failure with which to comply could reasonably be expected to have a Material Adverse Effect, and (b) all terms and conditions of all Material Contracts
to which it is a party, the failure with which to comply could give any other party thereto the right to terminate such Material Contract. 
  
 Section 8.3. Maintenance of Property. 
  
 In addition to the requirements of any of the other Loan Documents, the Parent and the Borrower shall, and shall cause each Subsidiary to, (a) protect and
preserve all of its respective material properties, including, but not limited to, all Intellectual Property (to the extent reasonably necessary in connection with operations), and maintain in good repair, working order and condition all tangible
properties, ordinary wear and tear and insured casualty losses excepted, and (b) make or cause to be made all repairs, renewals, replacements and additions to 

  

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such properties necessary or appropriate in the Borrower’s good faith and reasonable judgment so that the business carried on in connection therewith
may be properly and advantageously conducted at all times. 
  
 Section 8.4.
Conduct of Business. 
  
 The Parent and the Borrower shall,
and shall cause its Subsidiaries taken as a whole to, carry on the business as described in Section 7.1.(u). 
  
 Section 8.5. Insurance. 
  
 In addition to the requirements of any of the other Loan Documents, the Parent and the Borrower shall, and shall cause each Subsidiary to, maintain insurance (on a replacement cost basis) with financially sound and reputable insurance
companies (with an A.M. Best policyholders rating of at least A-IX (with respect to liability) or A-X (with respect to property damage)) against such risks (including, without limitation, acts of terrorism) and in such amounts as is customarily
maintained by prudent Persons engaged in similar businesses and in similar locations or as may be required by Applicable Law, and from time to time deliver to the Agent upon its request a detailed list, together with copies of all policies of the
insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby; provided, that so long as Marriott International, Inc.
or its affiliates are property managers of any Collateral Property, insurance with respect to such Collateral Property may be maintained under the blanket policy provided by Marriott International, Inc. 
  
 Section 8.6. Payment of Taxes and Claims. 
  
 The Parent and the Borrower shall, and shall cause each Subsidiary to, pay
and discharge before delinquent (a) all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it, and (b) all lawful claims of materialmen, mechanics, carriers,
warehousemen and landlords for labor, materials, supplies and rentals which, if unpaid, might become a Lien on any properties of such Person; provided, however, that this Section shall not require the payment or discharge of any such tax,
assessment, charge, levy or claim (i) which is being contested in good faith by appropriate proceedings which operate to suspend the collection thereof and for which adequate reserves have been established on the books of the Parent, the Borrower or
such Subsidiary, as applicable, in accordance with GAAP or (ii) to the extent covered by title insurance. 
  
 Section 8.7. Visits and Inspections. 
  
 The Parent and the Borrower shall, and shall cause each Subsidiary to, permit representatives or agents of any Lender or the Agent, from time to time after reasonable prior notice and in a manner that does not
unreasonably disrupt the normal business operations of the Parent, the Borrower or such Subsidiary, in each case so long as no Event of Default shall be in existence, as often as may be reasonably requested, but only during normal business hours, as
the case may be, to: (a) visit and inspect all properties of the Parent, the Borrower or such Subsidiary to the extent any such right to visit or inspect is within the control of such Person; 

  

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(b) inspect and make extracts from their respective books and records, including but not limited to management letters prepared by independent accountants;
and (c) discuss with its officers and employees, and its independent accountants, its business, properties, condition (financial or otherwise), results of operations and performance. If requested by the Agent, the Parent and the Borrower shall
execute an authorization letter addressed to their accountants authorizing the Agent or any Lender to discuss the financial affairs of the Parent, the Borrower and any other Subsidiary with their accountants. The Parent may designate a
representative to accompany any Lender or Agent in connection with such visits, inspections and discussion unless a Default or Event of Default exists. The exercise by a Lender or the Agent of its rights under this Section shall be at the expense of
such Lender or the Agent, as applicable, unless an Event of Default shall exist in which case such exercise shall be at the expense of the Borrower. 
  
 Section 8.8. Use of Proceeds; Letters of Credit. 
  
 The Borrower shall use the proceeds of the Loans and the Letters of Credit for general corporate purposes only, to include, without limitation,
acquisitions, repayment of Indebtedness, working capital, short-term bridge advances and payment of fees and expenses related to this Agreement and the other transactions contemplated by this Agreement and the other Loan Documents. No part of the
proceeds of any Loan or Letter of Credit will be used (a) for the purpose of buying or carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or to extend credit to others for the
purpose of purchasing or carrying any such margin stock or (b) to fund any operations in, to finance any investments or activities in, or make any payments to, a Sanctioned Person or Sanctioned Entity. 
  
 Section 8.9. Environmental Matters. 
  
 The Parent and the Borrower shall, and shall cause all of the Subsidiaries
to, comply with all Environmental Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect. If the Parent, the Borrower, or any other Subsidiary shall (a) receive notice that any violation of any
Environmental Law may have been committed or is about to be committed by such Person, (b) receive notice that any administrative or judicial complaint or order has been filed or is about to be filed against the Parent, the Borrower or any other
Subsidiary alleging violations of any Environmental Law or requiring any such Person to take any action in connection with the release of Hazardous Materials or (c) receive any notice from a Governmental Authority or private party alleging that any
such Person may be liable or responsible for costs associated with a response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and the matters referred to in such notices, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, the Borrower shall provide the Agent with a copy of such notice promptly, and in any event within 10 Business Days, after the receipt thereof. The Parent and the Borrower shall, and shall
cause the Subsidiaries to, take promptly all actions necessary to prevent the imposition of any material Liens on any of their respective properties arising out of or related to any Environmental Laws (other than a Lien (i) which is being contested
in good faith by appropriate proceedings which operate to suspend the enforcement thereof and for which adequate reserves have been established on the books of the Parent, the Borrower or such Subsidiary, as applicable, in accordance with GAAP, (ii)
which has been bonded-off in a manner reasonably acceptable to the Agent or (iii) which could not reasonably be expected to have a Material Adverse Effect). 
  

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 Section 8.10. Books and Records. 
  
 The Parent and the Borrower shall, and shall cause each Subsidiary to, maintain books and records pertaining to its
respective business operations in such detail, form and scope as is consistent with good business practice and in accordance with GAAP. 
  
 Section 8.11. Further Assurances. 
  
 The Parent and the Borrower shall, at their cost and expense and upon request of the Agent, execute and deliver or cause to be executed and delivered, to
the Agent such further instruments, documents and certificates consistent with the existing terms and conditions of the Loan Documents, and do and cause to be done such further acts that may be reasonably necessary or advisable in the reasonable
opinion of the Agent to carry out more effectively the existing provisions and purposes of this Agreement and the other Loan Documents. 
  
 Section 8.12. REIT Status. 
  
 The Parent shall at all times maintain its status as a REIT. 
  
 Section 8.13. Exchange Listing. 
  
 The Parent shall maintain at least one class of common Equity Interest of the Parent having trading privileges on the New York Stock Exchange or the
American Stock Exchange or which is the subject of price quotations in the over-the-counter market as reported by the National Association of Securities Dealers Automated Quotation System. 
  
 Section 8.14. New Subsidiaries/Guarantors/Pledges. 
  
 (a) Requirement to Become Guarantor. Within 30 days of any Person
(other than an Excluded Subsidiary or a Foreign Subsidiary) becoming a Material Subsidiary after the Effective Date, the Borrower shall deliver to the Agent each of the following items, each in form and substance satisfactory to the Agent: (i) an
Accession Agreement executed by such Material Subsidiary and (ii) the items with respect to such Material Subsidiary that would have been delivered under Sections 6.1. (a)(viii) through (xii) if such Material Subsidiary had been one on the Effective
Date; provided, however, promptly (and in any event within 30 days) upon any Excluded Subsidiary ceasing to be subject to the restriction which prevented it from delivering an Accession Agreement pursuant to this Section, such
Subsidiary shall comply with the provisions of this Section. 
  
 (b) Additional Pledges. Within 30 days of the Borrower or any Domestic Subsidiary (other than an Excluded Subsidiary) acquiring, forming or otherwise receiving after the Effective Date any Equity Interest in a Foreign Subsidiary that
is a Material Subsidiary, the Borrower shall cause to be delivered to the Agent each of the following in form and substance satisfactory to the Agent: (i) a supplement to the Pledge Agreement executed by the Borrower or such Domestic Subsidiary, as
applicable, subjecting such Equity Interests to the Lien of the Pledge Agreement, (ii) the items that would have been delivered under Sections 6.1.(a)(v) through (vii) and (xii) if 

  

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such Subsidiary Equity Interests had been Collateral under the Pledge Agreement on the Effective Date and (iii) if such Equity Interests are owned by a
Domestic Subsidiary that is not already a Guarantor, the items referred to in clauses (i) and (ii) of the immediately preceding subsection (a). The Borrower shall send to each Lender copies of each of the foregoing items once the Agent has received
all such items with respect to a Subsidiary. Notwithstanding the first sentence of this subsection, the Borrower or a Domestic Subsidiary shall only be required to subject to the Lien of the Pledge Agreement (x) 65% (or such greater percentage that,
due to a change in an Applicable Law after the Agreement Date, (A) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed
dividend to such Foreign Subsidiary’s United States parent and (B) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interest of a Foreign Subsidiary entitled to vote (within
the meaning of Treas. Reg. Section 1.956-2(c)(2)) and (y) 100% of the issued and outstanding Equity Interest of a Foreign Subsidiary not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)). 
  
 Section 8.15. Release of Guarantors and Pledges. 
  
 (a) Release of a Guarantor. The Borrower may request in writing that
the Agent release, and upon receipt of such request the Agent shall release (subject to the terms of the Guaranty), a Guarantor from the Guaranty so long as: (i) such Guarantor meets, or will meet simultaneously with its release from the Guaranty,
all of the provisions of the definition of the term “Excluded Subsidiary” or has ceased to be, or simultaneously with its release from the Guaranty will cease to be, a Material Subsidiary or a Subsidiary; (ii) such Guarantor is not
otherwise required to be a party to the Guaranty under the immediately preceding subsection (a); (iii) no Default or Event of Default shall then be in existence or would occur as a result of such release, including without limitation, a Default or
Event of Default resulting from a violation of any of the covenants contained in Section 10.1.; and (iv) the Agent shall have received such written request at least 10 Business Days prior to the requested date of release. Delivery by the Borrower to
the Agent of any such request shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such request and as of the date of the effectiveness of such request) are true
and correct with respect to such request. If such Guarantor owns a Collateral Property, then the release of such Guarantor shall also be subject to and in accordance with Section 4.3. The Agent agrees to furnish to the Borrower, at the
Borrower’s request and at the Borrower’s sole cost and expense, any release, termination, or other agreement or document evidencing the foregoing release as may be reasonably requested by the Borrower. 
  
 (b) Release of Pledge. The Borrower may request in writing that the
Agent release, and upon receipt of such request the Agent shall release the Equity Interests of a Foreign Subsidiary from the Lien of the Pledge Agreement so long as: (i) such Subsidiary has ceased to be, or simultaneously with the release of its
Equity Interests from the Pledge Agreement will cease to be, a Material Subsidiary or a Subsidiary; (ii) no Default or Event of Default shall then be in existence or would occur as a result of such release; and (iii) the Agent shall have received
such written request at least 5 Business Days prior to the requested date of release. Delivery by the Borrower to the Agent of any such request shall constitute a representation by the Borrower that the matters set forth in the preceding sentence
(both as of the date of the giving of such 

  

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request and as of the date of the effectiveness of such request) are true and correct with respect to such request. The Agent agrees to furnish to the
Borrower, at the Borrower’s request and at the Borrower’s sole cost and expense, any release, termination, or other agreement or document evidencing the foregoing release as may be reasonably requested by the Borrower. 
  
 Section 8.16. Acquisition of Vail Parking Deck. 
  
 In the event that the property known as the Vail Marriot located in Vail,
Colorado (the “Vail Property”) becomes a Collateral Property pursuant to the terms hereof, then the Security Deed for the Vail Property shall also include in the description attached thereto the “Initial Easement”, the
“Interim Easement,” and any and all right, title and interest that Borrower, DiamondRock Vail Owner, LLC (“Vail Property Owner”) or any other Subsidiary may have to the “New Parking Facility”, as such terms are
described in that certain Parking Easement Agreement between The Vail Corporation and Vail Property Owner dated June 24, 2005 (the “Parking Easement”). Notwithstanding the foregoing, the Borrower, the Agent and the Lenders acknowledge that
the New Parking Facility may not be constructed prior to the date that the Vail Property becomes a Collateral Property and therefore, upon Vail Property Owner’s acquisition of a condominium interest in the New Parking Facility pursuant to the
terms of the Parking Easement, Vail Property Owner shall be required to deliver a Security Deed and a Policy of Title Insurance for such condominum interest in the forms as otherwise required for Eligible Properties, as well as such other
information as the Agent may reasonably require, regardless of the fact that such interest in the New Parking Facility does not otherwise qualify an Eligible Property. 
  
 ARTICLE IX. INFORMATION 
  
 For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of
the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Borrower shall furnish to each Lender (or to the Agent if so provided below) at its Lending Office: 
  
 Section 9.1. Quarterly Financial Statements. 
  
 As soon as available and in any event within 5 days after the same is required to be filed with the Securities and Exchange
Commission (but in no event later than 50 days after the end of each of the first, second and third fiscal quarters of the Parent), the unaudited consolidated balance sheet of the Parent and its Subsidiaries as of the end of such period and the
related unaudited consolidated statements of income and cash flows of the Parent and its Subsidiaries for such period, setting forth in each case in comparative form the figures as of the end of and for the corresponding periods of the previous
fiscal year, all of which shall be certified by the chief executive officer, chief financial officer or chief accounting officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the
consolidated financial position of the Parent and its Subsidiaries as at the date thereof and the results of operations for such period (subject to normal year-end audit adjustments); provided, however, the Parent shall not be required to deliver an
item required under this Section if such item is contained in a Form 10-Q filed by the Parent with the Securities and Exchange Commission (or 

  

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any Governmental Authority substituted therefore) and is publicly available to the Agent and the Lenders. 
  
 Section 9.2. Year-End Statements. 
  
 As soon as available and in any event within 5 days after the same is
required to be filed with the Securities and Exchange Commission (but in no event later than 120 days after the end of each fiscal year of the Parent), the audited consolidated balance sheet of the Parent and its Subsidiaries as at the end of such
fiscal year and the related audited consolidated statements of income, shareholders’ equity and cash flows of the Parent and its Subsidiaries for such fiscal year, setting forth in comparative form the figures as at the end of and for the
previous fiscal year, all of which shall be (a) certified by the chief executive officer, chief financial officer or chief accounting officer of the Parent, in his or her opinion, to present fairly, in accordance with GAAP, the consolidated
financial position of the Parent, the Borrower and its other Subsidiaries as at the date thereof and the results of operations for such period and (b) accompanied by the report thereon of independent certified public accountants of recognized
national standing acceptable to the Agent, whose certificate shall be unqualified; provided, however, the Parent shall not be required to deliver an item required under this Section if such item is contained in a Form 10-K filed by the Parent with
the Securities and Exchange Commission (or any Governmental Authority substituted therefore) and is publicly available to the Agent and the Lenders. 
  
 Section 9.3. Compliance Certificate. 
  
 At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., and if the Requisite Lenders reasonably believe that an Event of
Default specified in Sections 11.1.(a), 11.1.(b) and 11.1.(f) or a Default specified in Section 11.1.(g) may occur, then within 10 days of the Agent’s request with respect to any other fiscal period, a certificate substantially in the form of
Exhibit N (a “Compliance Certificate”) executed by the chief financial officer or chief accounting officer of the Parent: (a) setting forth in reasonable detail as at the end of such quarterly accounting period, fiscal year, or other
fiscal period, as the case may be, the calculations required to establish whether or not the Borrower was in compliance with the covenants contained in Sections 10.1. and 10.2. and (b) stating that, to the best of his or her knowledge, information
and belief after due inquiry, no Default or Event of Default exists, or, if such is not the case, specifying such Default or Event of Default and its nature, when it occurred, whether it is continuing and the steps being taken by the Borrower with
respect to such event, condition or failure. Together with the delivery of each Compliance Certificate, the Borrower shall deliver (A) a report, in form and detail reasonably satisfactory to the Agent, setting forth a statement of Funds From
Operations for the fiscal period then ending; and (B) a list of all Persons that have become a Material Subsidiary or a Significant Subsidiary since the date of the Compliance Certificate most recently delivered by the Borrower hereunder.

  
 Section 9.4. Other Information. 
  
 (a) Management Reports. Promptly upon receipt thereof, copies of all
management reports, if any, submitted to the Parent or its Board of Directors by its independent public accountants; 
  

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 (b) Securities Filings. Within 5 Business Days of the filing thereof, copies of all registration
statements (excluding the exhibits thereto (unless reasonably requested by the Agent) and any registration statements on Form S-8 or its equivalent), reports on Forms 10-K, 10-Q and 8-K (or their equivalents) and all other periodic reports which the
Parent, the Borrower, or any other Subsidiary shall file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor) or any national securities exchange; 
  
 (c) Shareholder Information. Promptly upon the mailing thereof to the
shareholders of the Parent generally, copies of all financial statements, reports and proxy statements so mailed and promptly upon the issuance thereof copies of all press releases issued by the Parent, the Borrower or any other Subsidiary;

  
 (d) Partnership Information. Promptly upon the mailing
thereof to the partners of the Borrower generally, copies of all financial statements, reports and proxy statements so mailed; 
  
 (e) Quarterly Operating Summaries. At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., an operating summary with
respect to each Collateral Property for the fiscal quarter most recently ended, including without limitation, a quarterly and year-to-date statement of total revenues, expenses, net operating income and an occupancy status report together with a
current rent roll for each such Property; 
  
 (f) Quarterly
Property Schedules. At the time financial statements are furnished pursuant to Sections 9.1. and 9.2., a schedule of all Properties owned or leased by the Parent, the Borrower and each other Subsidiary of the Parent as of the fiscal quarter most
recently ended, and the applicable Net Operating Income of each such Property, such schedule certified by the chief financial officer or chief accounting officer of the Parent as true, correct and complete as of the date such information is
delivered; 
  
 (g) Development Property Updates. At the
time financial statements are furnished pursuant to Sections 9.1. and 9.2., a schedule of all Development Properties of the Parent, the Borrower and each other Subsidiary which are under development as of the fiscal quarter most recently ended,
setting forth for each such Property its percentage of completion, the estimated completion date, the total amount of development funded and the status of such development against the development budget; 
  
 (h) Borrowing Base Certificate. As soon as available and in any event
within 45 days after the end of each fiscal quarter of the Parent, a Borrowing Base Certificate setting forth the information to be contained therein as of the last day of such fiscal quarter; 
  
 (i) Litigation. To the extent the Parent, the Borrower or any other
Subsidiary is aware of the same, prompt notice of the commencement of any proceeding or investigation by or before any Governmental Authority and any action or proceeding in any court or other tribunal or before any arbitrator against or in any
other way relating adversely to, or adversely affecting, the Parent, the Borrower or any other Subsidiary or any of their respective properties, assets or businesses which could reasonably be expected to have a Material Adverse Effect, and prompt

  

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notice of the receipt of notice that any United States income tax returns of the Parent, the Borrower or any of its Subsidiaries are being audited;

  
 (j) Change of Management or Financial Condition. Prompt
notice of any change in the senior management of the Parent or the Borrower and any change in the business, assets, liabilities, financial condition or results of operations of the Parent, the Borrower or any other Subsidiary which has had or could
reasonably be expected to have a Material Adverse Effect; 
  
 (k)
Default. Notice of the occurrence of any of the following promptly upon a Responsible Officer of the Parent obtaining knowledge thereof: (i) any Default or Event of Default or (ii) any event which with the passage of time, the giving of
notice, or otherwise, would permit any party to a Material Contract to terminate such Material Contract; 
  
 (l) Judgments. Prompt notice of any order, judgment or decree in excess of $5,000,000 having been entered against the Parent, the Borrower or any
other Subsidiary of any of their respective properties or assets; 
  
 (m) Notice of Violations of Law. Prompt notice if the Parent, the Borrower or any other Subsidiary shall receive any notification from any Governmental Authority alleging a violation of any Applicable Law or any inquiry which, in
either case, could reasonably be expected to have a Material Adverse Effect; 
  
 (n) Material Contracts. Promptly upon entering into any Material Contract after the Agreement Date (other than a Material Contract evidencing Indebtedness), a copy to the Agent of such Material Contract unless
such Material Contract is otherwise publicly available to the Agent in a Form 10-K, 10-Q and/or 8-K (or their equivalents) or any other periodic report which the Parent, the Borrower, or any other Subsidiary files with the Securities and Exchange
Commission; provided, that the Borrower shall not be required to deliver to the Agent a copy of any Material Contract that contains a confidentiality provision prohibiting such disclosure; provided further that the Borrower shall use its
commercially reasonable efforts to obtain the other party’s consent to disclose such Material Contract to the Agent and the Lenders; 
  
 (o) ERISA. If and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as
defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of,
or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application; (v) gives notice of intent to terminate any
Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such 

  

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notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment
to any Plan or Benefit Arrangement, and of which has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other security, a certificate of the chief executive officer or chief financial officer
of the Parent setting forth details as to such occurrence and the action, if any, which the Parent or applicable member of the ERISA Group is required or proposes to take; 
  
 (p) Patriot Act Information. From time to time and promptly upon each request, information identifying the Borrower
as a Lender may request in order to comply with the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001); 
  
 (q) Material/Significant Subsidiary. Prompt notice of any Person becoming a Material Subsidiary or a Significant Subsidiary; 
  
 (r) Material Asset Sales. Prompt notice of the sale, transfer or other
disposition of any assets having an undepreciated book value of at least $20,000,000 of the Borrower, any Subsidiary or any other Loan Party to any Person other than the Borrower, any Subsidiary or any other Loan Party; 
  
 (s) Annual Budget. After the end of each fiscal year and within 10
Business Days of approval by the Board of Directors of the Parent, a consolidated operating statement or operating budget for the following fiscal year together with an operating statement or an operating budget for each Collateral Property for the
following fiscal year; 
  
 (t) Other Information. From time
to time and promptly upon each request, such data, certificates, reports, statements, opinions of counsel, documents or further information regarding the business, assets, liabilities, financial condition, results of operations or business prospects
of the Parent, the Borrower or any of its other Subsidiaries as the Agent or any Lender may reasonably request (subject to limitations imposed under confidentiality requirements and agreements to which the Parent, Borrower or a Subsidiary is
subject). 
  
 ARTICLE X. NEGATIVE
COVENANTS 
  
 For so long as this Agreement is
in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Parent and the Borrower shall comply with the following covenants, as
applicable: 
  
 Section 10.1. Financial Covenants. 
  
 The Parent shall not permit: 
  
 (a) Maximum Leverage Ratio. The ratio of (i) Total Indebtedness to
(ii) Total Asset Value, to exceed the levels set forth below tested at any time corresponding to the periods below: 
  

			
	 Period

	  	Maximum Total Leverage Ratio

	 Any time prior to June 30, 2006
	  	0.75 to 1.00
		
	 Any time from July 1, 2006 through June 30, 2007
	  	0.70 to 1.00
		
	 Any time from July 1, 2007 through The Termination Date
	  	0.65 to 1.00

  

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 (b) Minimum Fixed Charge Coverage Ratio. The ratio of (i) Adjusted EBITDA of the Parent and its
Subsidiaries for the fiscal quarter of the Parent most recently ending to (ii) Fixed Charges for such period, to be less than 1.50 to 1.00 at any time. 
  
 (c) Floating Rate Indebtedness. The ratio of (i) Floating Rate Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis
to (ii) Total Indebtedness, to exceed 0.5 to 1.00 at any time. 
  
 (d) Assets Owned by Borrower and Guarantors. The amount of Total Asset Value attributable to assets directly owned by the Borrower and the Guarantors to be less than 90.0% of Total Asset Value. 
  
 (e) Minimum Implied Debt Service Ratio. The ratio of (x) the aggregate
Net Operating Income for all Collateral Properties for the period of twelve consecutive months most recently ended to (y) Implied Debt Service for such period, to be less than 1.40 to 1.00. The following shall be excluded from the calculation
of Net Operating Income and Implied Debt Service: (a) Collateral Properties that were disposed of during such period or which are excluded from calculations of the Borrowing Base during such period and (b) Collateral Properties that were Development
Properties with an Approved Interest Reserve; provided, however, that such Collateral Property shall only be excluded for the period ending twelve months after such Collateral Property ceases to be a Development Property. 
  
 Section 10.2. Restricted Payments. 
  
 The Parent shall not, and shall not permit any of its Subsidiaries to,
declare or make any Restricted Payment; provided, however, that the Parent and its Subsidiaries may declare and make the following Restricted Payments: 
  
 (a) so long as no Event of Default would result therefrom, the Borrower may declare and pay cash distributions to the Parent and other holders of
partnership interests in the Borrower with respect to the period of four fiscal quarters most recently ending to the extent necessary for the Parent to distribute, and the Parent may so distribute, cash distributions to its shareholders in an
aggregate amount not to exceed the greater of (i) 100% of the Borrower’s Funds Available For Distribution for such period plus, (x) for any period of four fiscal quarters ending on or prior to December 31, 2005, an additional $5,000,000 and (y)
for the period of four fiscal quarters ending on March 24, 2006, an additional $2,000,000 or (ii) the amount necessary to permit the 

  

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Parent to avoid payment of taxes with respect to income other than capital gains under Section 857(b)(1) and 4981 of the Internal Revenue Code; 

 
 (b) so long as no Event of Default would result therefrom, the Borrower
may declare and pay cash distributions of capital gains to the Parent and other holders of partnership interests in the Borrower to the extent necessary for the Parent to make, and the Parent may make, cash distributions to its shareholders of
capital gains resulting from gains from certain asset sales to the extent necessary to avoid payment of taxes on such asset sales imposed under Sections 857(b)(1) or (3) and 4981 of the Internal Revenue Code; 
  
 (c) a Subsidiary that is not a Wholly Owned Subsidiary may make cash
distributions to holders of Equity Interests issued by such Subsidiary; provided, however, if an Event of Default exists, such cash distributions must be pro rata to the holders of such Equity Interests; and 
  
 (d) Subsidiaries may pay Restricted Payments to the Parent, the Borrower or
any other Subsidiary. 
  
 Notwithstanding the foregoing, but subject to the
following sentence, if an Event of Default exists, the Borrower may only declare or make cash distributions to the Parent and other holders of partnership interests in the Borrower, and the Parent may only declare or make cash distributions to its
shareholders during any period of four consecutive fiscal quarters, each, in an aggregate amount not to exceed the minimum amount necessary for the Parent to remain in compliance with Section 8.12. If an Event of Default specified in Section
11.1.(a), Section 11.1.(b), Section 11.1.(f) or Section 11.1.(g) shall exist, or if as a result of the occurrence of any other Event of Default any of the Obligations have been accelerated pursuant to Section 11.2.(a), the Parent shall not, and
shall not permit any Subsidiary to, make any Restricted Payments to any Person other than Restricted Payments referred to in the immediately preceding subsections (c) and (d). 
  
 Section 10.3. Indebtedness. 
  
 The Parent and the Borrower shall not, and shall not permit any Subsidiary to, incur, assume, or otherwise become obligated in respect of any Indebtedness
after the Agreement Date if immediately prior to the assumption, incurring or becoming obligated in respect thereof, or immediately thereafter and after giving effect thereto, a Default or Event of Default is or would be in existence, including
without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 10.1. 
  
 Section 10.4. Investments Generally. 
  
 The Parent and the Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, acquire, make or purchase any Investment, or permit
any Investment of such Person to be outstanding on and after the Agreement Date, other than the following: 
  
 (a) Investments in Subsidiaries in existence on the Agreement Date and disclosed on Part I of Schedule 7.1.(b); 
  

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 (b) Investments to acquire Equity Interests of a Subsidiary or any other Person who after giving effect
to such acquisition would be a Subsidiary, so long as in each case immediately prior to such Investment, and after giving effect thereto, no Default or Event of Default is or would be in existence; 
  
 (c) Investments permitted under Section 5.1.; 
  
 (d) Investments in Cash Equivalents; 
  
 (e) intercompany Indebtedness among (i) the Parent and the Borrower and (ii)
the Borrower and its Wholly Owned Subsidiaries provided that such Indebtedness is permitted by the terms of Section 10.3.; 
  
 (f) loans and advances to employees for moving, entertainment, travel and other similar expenses in the ordinary course of business consistent with past
practices; and 
  
 (g) any other Investment so long as immediately
prior to making such Investment, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence. 
  
 Section 10.5. Liens; Negative Pledges; Other Matters. 
  
 (a) The Parent and the Borrower shall not, and shall not permit any Subsidiary to, create, assume, or incur any Lien (other than Permitted Liens and Liens
on assets of an Excluded Subsidiary securing the Indebtedness which causes such Subsidiary to be an Excluded Subsidiary) upon any of its properties, assets, income or profits of any character whether now owned or hereafter acquired if immediately
prior to the creation, assumption or incurring of such Lien, or immediately thereafter, a Default or Event of Default is or would be in existence. 
  
 (b) The Parent and the Borrower shall not, and shall not permit any Subsidiary to, enter into, assume or otherwise be bound by any Negative Pledge except
for a Negative Pledge contained in any agreement (i) evidencing Indebtedness which the Parent, the Borrower or such Subsidiary may create, incur, assume, or permit or suffer to exist under Section 10.3.; (ii) which Indebtedness is secured by a Lien
permitted to exist; (iii) which prohibits the creation of any other Lien on only the property securing such Indebtedness as of the date such agreement was entered into; and (iv) relating to the sale of a Subsidiary or assets pending such sale,
provided that in any such case the Negative Pledge applies only to the Subsidiary or the assets that are the subject of such sale. 
  
 (c) The Parent and the Borrower shall not, and shall not permit any Subsidiary (other than an Excluded Subsidiary) to, create or otherwise cause or suffer
to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary (other than an Excluded Subsidiary) to: (i) pay dividends or make any other distribution on any of such Subsidiary’s capital
stock or other equity interests owned by the Borrower or any Subsidiary; (ii) pay any Indebtedness owed to the Parent, the Borrower or any other Subsidiary; (iii) make loans or advances to the Parent, the Borrower or any other Subsidiary; or (iv)
transfer any of its 

  

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property or assets to the Parent, the Borrower or any other Subsidiary, except for any such encumbrances or restrictions, (A) contained in agreements
relating to the sale of a Subsidiary or assets pending such sale, or relating to Indebtedness secured by a Lien on assets that the Borrower or such Subsidiary may create, incur, assume, or permit or suffer to exist under Sections 10.3. and 10.5.(a),
provided that in any such case the encumbrances and restrictions apply only to the Subsidiary or the assets that are the subject of such sale or Lien, as the case may be, (B) set forth in the organizational documents or other agreements binding on
or applicable to any Excluded Subsidiary or any Subsidiary that is not a Wholly Owned Subsidiary (but only to the extent such encumbrance or restriction covers any Equity Interest in such Subsidiary or the property or assets of such Subsidiary) or
(C) contained in an agreement that governs an Investment in an Unconsolidated Affiliate (but only to the extent such encumbrance or restriction covers any Equity Interest in such Unconsolidated Affiliate). 
  
 Section 10.6. Merger, Consolidation, Sales of Assets and Other Arrangements.

  
 The Parent and the Borrower shall not, and shall not
permit any Subsidiary to: (i) enter into any transaction of merger or consolidation; (ii) liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); or (iii) convey, sell, lease, sublease, transfer or otherwise dispose of, in
one transaction or a series of transactions, any of its business or assets, whether now owned or hereafter acquired; provided, however, that: 
  
 (a) any of the actions described in the immediately preceding clauses (i) through (iii) may be taken with respect to any Subsidiary so long as (x)
immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence, (y) if such action includes the sale of all Equity Interests in a Subsidiary that
is a Guarantor owned directly or indirectly by the Parent, such Subsidiary can and will be released from the Guaranty in accordance with Section 8.15.(b), and (z) if such action includes the disposition of a Collateral Property (regardless of
whether such disposition takes the form of a direct sale of such Collateral Property, the sale of the Equity Interests of the Subsidiary that owns such Collateral Property or a merger of such Subsidiary), such Collateral Property can and will be
released in accordance with Section 4.3.; 
  
 (b) the Parent, the
Borrower and the other Subsidiaries may lease and sublease their respective assets, as lessor or sublessor (as the case may be), in the ordinary course of their business; 
  
 (c) a Person may merge with a Loan Party so long as (i) the survivor of such merger is such Loan Party or becomes a Loan
Party at the time of such merger, (ii) immediately prior to such merger, and immediately thereafter and after giving effect thereto, (x) no Default or Event of Default is or would be in existence and (y) the representations and warranties made or
deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate
solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan
Documents, and (iii) the Borrower shall have given the Agent at least 30-days’ prior written notice of such merger, such notice to include a certification as to the matters described in 

  

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the immediately preceding clause (ii) (except that such prior notice shall not be required in the case of the merger of a Subsidiary that does not own a
Collateral Property with and into a Loan Party but the Borrower shall give the Lender notice of any such merger promptly following the effectiveness of such merger); and 
  
 (d) the Parent, the Borrower and each other Subsidiary may sell, transfer or dispose of assets among themselves. 

 
 Section 10.7. Fiscal Year. 
  
 The Parent shall not change its fiscal year from that in effect as of the
Agreement Date; provided, that if Marriot International, Inc. shall change its fiscal year to a calendar fiscal year, the Parent may change its fiscal year to a calendar fiscal year. 
  
 Section 10.8. Modifications to Material Contracts. 
  
 The Parent and the Borrower shall not, and shall not permit any Subsidiary to, enter into any amendment or modification to
any Material Contract which could reasonably be expected to have a Material Adverse Effect. 
  
 Section 10.9. Modifications of Organizational Documents. 
  
 The Parent and the Borrower shall not, and shall not permit any Subsidiary to, amend, supplement, restate or otherwise modify its articles or certificate
of incorporation, by-laws, operating agreement, declaration of trust, partnership agreement or other applicable organizational document if such amendment, supplement, restatement or other modification could reasonably be expected to have a Material
Adverse Effect. 
  
 Section 10.10. Transactions with Affiliates.

  
 The Parent and the Borrower shall not, and shall not
permit any Subsidiary to, permit to exist or enter into, any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate (other than the Parent, the Borrower, any other Loan Party
or any Wholly Owned Subsidiary), except transactions in the ordinary course of and pursuant to the reasonable requirements of the business of the Parent, the Borrower or any of the other Subsidiaries and upon fair and reasonable terms which are no
less favorable to the Parent, the Borrower or such Subsidiary, as applicable, than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate. 
  
 Section 10.11. ERISA Exemptions. 
  
 The Parent and the Borrower shall not, and shall not permit any Subsidiary to, permit any of its respective assets to become or be deemed to be “plan
assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder. 
  

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 ARTICLE XI. DEFAULT 
  
 Section 11.1. Events of Default. 
  
 Each of the following shall constitute an Event of Default, whatever the
reason for such event and whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or pursuant to any judgment or order of any Governmental Authority: 
  
 (a) Default in Payment of Principal. The Borrower shall fail to pay when due (whether upon demand, at maturity, by
reason of acceleration or otherwise) the principal of any of the Loans, or any Reimbursement Obligation. 
  
 (b) Default in Payment of Interest and Other Obligations. The Borrower shall fail to pay when due any interest on any of the Loans or any of the
other payment Obligations owing by the Borrower under this Agreement or any other Loan Document, or any other Loan Party shall fail to pay when due any payment Obligation owing by such other Loan Party under any Loan Document to which it is a party,
and such failure shall continue for a period of 3 Business Days. 
  
 (c) Default in Performance. (i) The Borrower or the Parent shall fail to perform or observe any term, covenant, condition or agreement contained in Section 9.4.(k) or in Article X. or (ii) any Loan Party shall fail to perform or
observe any term, covenant, condition or agreement contained in this Agreement or any other Loan Document (other than any Security Document) to which it is a party and not otherwise mentioned in this Section and in the case of this clause (ii) only
such failure shall continue for a period of 30 days after the earlier of (x) the date upon which a Responsible Officer of the Parent or such Loan Party obtains knowledge of such failure or (y) the date upon which the Parent has received written
notice of such failure from the Agent. 
  
 (d)
Misrepresentations. Any written statement, representation or warranty made or deemed made by or on behalf of any Loan Party under this Agreement or under any other Loan Document (other than any Security Document), or any amendment hereto or
thereto, or in any other writing or statement at any time furnished or made or deemed made by or on behalf of any Loan Party to the Agent or any Lender, shall at any time prove to have been incorrect or misleading, in light of the circumstances in
which made or deemed made, in any material respect when furnished or made or deemed made. 
  
 (e) Indebtedness Cross-Default; Derivatives Contracts. 
  
 (i) any Loan Party shall fail to pay when due and payable, within any applicable grace or cure period, the principal of, or interest on,
any Indebtedness (other than the Loans) having an aggregate outstanding principal amount of $10,000,000 or more (or $20,000,000 or more in the case of Nonrecourse Indebtedness) (all such Indebtedness being “Material Indebtedness”); or

  
 (ii) (x) the maturity of any Material
Indebtedness shall have been accelerated in accordance with the provisions of any indenture, contract or instrument evidencing, providing for the creation of or otherwise concerning such Material Indebtedness or 

  

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(y) any Material Indebtedness shall have been required to be prepaid or repurchased prior to the stated maturity thereof; 
  
 (iii) any other event shall have occurred and be continuing
which permits any holder or holders of Material Indebtedness, any trustee or agent acting on behalf of such holder or holders or any other Person, to accelerate the maturity of any such Material Indebtedness or require any such Material Indebtedness
to be prepaid or repurchased prior to its stated maturity; or 
  
 (iv) there occurs under any Derivatives Contract an Early Termination Date (as defined in such Derivatives Contract) resulting from (A) any event of default under such Derivatives Contract as to which any Loan Party
is the Defaulting Party (as defined in such Derivatives Contract) or (B) any Termination Event (as so defined) under such Derivatives Contract as to which any Loan Party is an Affected Party (as so defined) and, in either event, the Derivatives
Termination Value owed by any Loan Party as a result thereof is $10,000,000 or more. 
  
 (f) Voluntary Bankruptcy Proceeding. Any Loan Party or any Significant Subsidiary shall: (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or
hereafter in effect); (ii) file a petition seeking to take advantage of any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts; (iii) consent to, or fail
to contest in a timely and appropriate manner, any petition filed against it in an involuntary case under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action described in the immediately following subsection; (iv)
apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or
foreign; (v) admit in writing its inability to pay its debts as they become due; (vi) make a general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to creditors under any Applicable Law; or (viii) take any corporate
or partnership action for the purpose of effecting any of the foregoing. 
  
 (g) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced against any Loan Party or any other Significant Subsidiary in any court of competent jurisdiction seeking: (i) relief under
the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or composition or
adjustment of debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such Person, or of all or any substantial part of the assets, domestic or foreign, of such Person, and such case or proceeding shall continue
undismissed or unstayed for a period of 60 consecutive calendar days, or an order granting the remedy or other relief requested in such case or proceeding against such Loan Party or such Significant Subsidiary (including, but not limited to, an
order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered. 
  

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 (h) Litigation; Enforceability. Any Loan Party shall disavow, revoke or terminate (or attempt to
terminate) any Loan Document to which it is a party or shall otherwise challenge or contest in any action, suit or proceeding in any court or before any Governmental Authority the validity or enforceability of this Agreement, any Note or any other
Loan Document or this Agreement, any Note, the Guaranty or any other Loan Document shall cease to be in full force and effect (except as a result of the express terms thereof or hereof). 
  
 (i) Judgment. A judgment or order for the payment of money or for an injunction shall be entered against any Loan
Party or any other Subsidiary, by any court or other tribunal and (i) such judgment or order shall continue for a period of 30 days without being paid, stayed or dismissed through appropriate appellate proceedings and (ii) either (A) the amount of
such judgment or order for which insurance has not been acknowledged in writing by the applicable insurance carrier (or the amount as to which the insurer has denied liability) exceeds, individually or together with all other such outstanding
judgments or orders entered against any Loan Party or any other Subsidiary, $10,000,000 or (B) in the case of an injunction or other non-monetary judgment, such judgment could reasonably be expected to have a Material Adverse Effect. 
  
 (j) Attachment. A warrant, writ of attachment, execution or similar
process shall be issued against any property of any Loan Party or any other Subsidiary which exceeds, individually or together with all other such warrants, writs, executions and processes, $10,000,000 in amount in the case of a Loan Party, or
$20,000,000 in amount in the case of any other Subsidiary that is not a Loan Party and, in each case, such warrant, writ, execution or process shall not be discharged, vacated, stayed or bonded for a period of 30 days; provided, however, that if a
bond has been issued in favor of the claimant or other Person obtaining such warrant, writ, execution or process, the issuer of such bond shall execute a waiver or subordination agreement in form and substance satisfactory to the Agent pursuant to
which the issuer of such bond subordinates its right of reimbursement, contribution or subrogation to the Obligations and waives or subordinates any Lien it may have on the assets of any Loan Party. 
  
 (k) ERISA. Any member of the ERISA Group shall fail to pay when due an
amount or amounts aggregating in excess of $10,000,000 which it shall have become liable to pay under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Liabilities in excess of $10,000,000 shall be filed
under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under
Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer, any Plan or Plans having aggregate Unfunded Liabilities in excess of $10,000,000; or a condition shall exist by reason of which the PBGC would be entitled to
obtain a decree adjudicating that any such Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which
could cause one or more members of the ERISA Group to incur a current payment obligation in excess of $10,000,000. 
  
 (l) Loan Documents. An Event of Default (as defined therein) shall occur under any of the other Loan Documents (other than any Security Document).

  

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 (m) Change of Control/Change in Management. 
  
 (i) Any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
Person will be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 35% of
the total voting power of the then outstanding voting stock of the Parent; 
  
 (ii) During any period of 12 consecutive months ending after the Agreement Date, individuals who at the beginning of any such 12-month period constituted the Board of Directors of the Parent (together with any new
directors whose election by such Board or whose nomination for election by the shareholders of the Parent was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Parent then in office; or 
  
 (iii) The Parent or a Wholly Owned Subsidiary of the Parent shall cease to be the sole general partner of
the Borrower or shall cease to have the sole and exclusive power to exercise all management and control over the Borrower. 
  
 Section 11.2. Remedies Upon Event of Default. 
  
 Upon the occurrence of an Event of Default the following provisions shall apply: 
  
 (a) Acceleration; Termination of Facilities. 
  
 (i) Automatic. Upon the occurrence of an Event of Default specified in Sections 11.1.(f) or 11.1.(g),
(A)(i) the principal of, and all accrued interest on, the Loans and the Notes at the time outstanding, (ii) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such Event of Default for
deposit into the Collateral Account pursuant to Section 11.5. and (iii) all of the other Obligations of the Borrower, including, but not limited to, the other amounts owed to the Lenders, the Swingline Lender and the Agent under this Agreement, the
Notes or any of the other Loan Documents shall become immediately and automatically due and payable by the Borrower without presentment, demand, protest, or other notice of any kind, all of which are expressly waived by the Borrower and (B) all of
the Commitments, the obligation of the Lenders to make Revolving Loans, the Swingline Commitment, the obligation of the Swingline Lender to make Swingline Loans, and the obligation of the Agent to issue Letters of Credit hereunder, shall all
immediately and automatically terminate. 
  
 (ii)
Optional. If any other Event of Default shall exist, the Agent shall, at the direction of the Requisite Lenders: (A) declare (1) the principal of, and accrued interest 

  

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on, the Loans and the Notes at the time outstanding, (2) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the
occurrence of such other Event of Default for deposit into the Collateral Account pursuant to Section 11.5. and (3) all of the other Obligations, including, but not limited to, the other amounts owed to the Lenders and the Agent under this
Agreement, the Notes or any of the other Loan Documents to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived
by the Borrower and (B) terminate the Commitments and the obligation of the Lenders to make Loans hereunder and the obligation of the Agent to issue Letters of Credit hereunder. Further, if the Agent has exercised any of the rights provided under
the preceding sentence, the Swingline Lender shall: (x) declare the principal of, and accrued interest on, the Swingline Loans and the Swingline Note at the time outstanding, and all of the other Obligations owing to the Swingline Lender, to be
forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower and (y) terminate the Swingline Commitment and
the obligation of the Swingline Lender to make Swingline Loans. 
  
 (b) Loan Documents. The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise any and all of its rights under any and all of the other Loan Documents. 
  
 (c) Applicable Law. The Requisite Lenders may direct the Agent to, and
the Agent if so directed shall, exercise all other rights and remedies it may have under any Applicable Law. 
  
 (d) Appointment of Receiver. To the extent permitted by Applicable Law, the Agent and the Lenders shall be entitled to the appointment of a
receiver for the assets and properties of the Borrower and its Subsidiaries, without notice of any kind whatsoever and without regard to the adequacy of any security for the Obligations or the solvency of any party bound for its payment, to take
possession of all or any portion of the business operations of the Borrower and its Subsidiaries and to exercise such power as the court shall confer upon such receiver. 
  
 Section 11.3. Remedies Upon Default. 
  
 Upon the occurrence of a Default specified in Section 11.1.(g), the Commitments shall immediately and automatically terminate. 
  
 Section 11.4. Allocation of Proceeds. 
  
 If an Event of Default shall exist and maturity of any of the Obligations
has been accelerated, all payments received by the Agent under any of the Loan Documents, in respect of any principal of or interest on the Obligations or any other amounts payable by the Borrower hereunder or thereunder, shall be applied in the
following order and priority: 
  
 (a) amounts due
to the Agent in respect of fees and expenses due under Section 13.2.; 
  

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 (b) amounts due to the Lenders in respect of fees and expenses due under Section 13.2.,
pro rata in the amount then due each Lender; 
  
 (c) payments of interest on Swingline Loans; 
  
 (d) payments of interest on all other Loans and Reimbursement Obligations, to be applied for the ratable benefit of the Lenders; 
  
 (e) payments of principal of Swingline Loans; 
  
 (f) payments of principal of all other Loans, Reimbursement Obligations and other Letter of Credit Liabilities, to be applied for the
ratable benefit of the Lenders; provided, however, to the extent that any amounts available for distribution pursuant to this subsection are attributable to the issued but undrawn amount of an outstanding Letters of Credit, such amounts shall be
paid to the Agent for deposit into the Collateral Account); 
  
 (g) amounts due the Agent and the Lenders pursuant to Sections 12.8. and 13.9.; 
  
 (h) payments of all other Obligations and other amounts due and owing by the Borrower and the other Loan Parties under any of the Loan
Documents, if any, to be applied for the ratable benefit of the Lenders; and 
  
 (i) any amount remaining after application as provided above, shall be paid to the Borrower or whomever else may be legally entitled thereto. 
  
 Section 11.5. Collateral Account. 
  
 (a) As collateral security for the prompt payment in full when due of all Letter of Credit Liabilities and the other Obligations, the Borrower hereby
pledges and grants to the Agent, for the ratable benefit of the Agent and the Lenders as provided herein, a security interest in all of its right, title and interest in and to the Collateral Account and the balances from time to time in the
Collateral Account (including the investments and reinvestments therein provided for below). The balances from time to time in the Collateral Account shall not constitute payment of any Letter of Credit Liabilities until applied by the Agent as
provided herein. Anything in this Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject to withdrawal only as provided in this Section. 
  
 (b) Amounts on deposit in the Collateral Account shall be invested and reinvested by the Agent in such Cash Equivalents as
the Agent shall determine in its sole discretion. All such investments and reinvestments shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit of the Lenders. The Agent shall exercise reasonable
care in the custody and preservation of any funds held in the Collateral Account and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the Agent accords other funds deposited with
the Agent, it being understood that 

  

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the Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any funds held in the
Collateral Account. 
  
 (c) If a drawing pursuant to any Letter of
Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower and the Lenders authorize the Agent to use the monies deposited in the Collateral Account to make payment to the beneficiary with respect to such drawing or the
payee with respect to such presentment. 
  
 (d) If an Event of
Default exists, the Requisite Lenders may, in their discretion, at any time and from time to time, instruct the Agent to liquidate any such investments and reinvestments and apply proceeds thereof to the Obligations in accordance with Section 11.4.

  
 (e) So long as no Default or Event of Default exists, and to
the extent amounts on deposit in the Collateral Account exceed the aggregate amount of the Letter of Credit Liabilities then due and owing, the Agent shall, from time to time, at the request of the Borrower, deliver to the Borrower within 10
Business Days after the Agent’s receipt of such request from the Borrower, against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Collateral Account as exceed the aggregate amount of the
Letter of Credit Liabilities at such time. 
  
 (f) The Borrower
shall pay to the Agent from time to time such fees as the Agent normally charges for similar services in connection with the Agent’s administration of the Collateral Account and investments and reinvestments of funds therein. 
  
 Section 11.6. Performance by Agent. 
  
 If the Borrower shall fail to perform any covenant, duty or agreement
contained in any of the Loan Documents, the Agent may, after notice to the Borrower, perform or attempt to perform such covenant, duty or agreement on behalf of the Borrower after the expiration of any cure or grace periods set forth herein. In such
event, the Borrower shall, at the request of the Agent, promptly pay any amount reasonably expended by the Agent in such performance or attempted performance to the Agent, together with interest thereon at the applicable Post-Default Rate from the
date of such expenditure until paid. Notwithstanding the foregoing, neither the Agent nor any Lender shall have any liability or responsibility whatsoever for the performance of any obligation of the Borrower under this Agreement or any other Loan
Document. 
  
 Section 11.7. Rights Cumulative. 
  
 The rights and remedies of the Agent and the Lenders under this Agreement
and each of the other Loan Documents shall be cumulative and not exclusive of any rights or remedies which any of them may otherwise have under Applicable Law. In exercising their respective rights and remedies the Agent and the Lenders may be
selective and no failure or delay by the Agent or any of the Lenders in exercising any right shall operate as a waiver of it, nor shall any single or partial exercise of any power or right preclude its other or further exercise or the exercise of
any other power or right. 
  

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 ARTICLE XII. THE AGENT 
  
 Section 12.1. Authorization and Action. 
  
 Each Lender hereby appoints and authorizes the Agent to take such action as
contractual representative on such Lender’s behalf and to exercise such powers under this Agreement and the other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto. Not in limitation of the foregoing, each Lender authorizes and directs the Agent to enter into the Loan Documents for the benefit of the Lenders. Each Lender hereby agrees that, except as otherwise set forth herein,
any action taken by the Requisite Lenders in accordance with the provisions of this Agreement or the Loan Documents, and the exercise by the Requisite Lenders of the powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the Lenders. Nothing herein shall be construed to deem the Agent a trustee or fiduciary for any Lender nor to impose on the Agent duties or obligations other than those
expressly provided for herein. At the request of a Lender, the Agent will forward to such Lender copies or, where appropriate, originals of the documents delivered to the Agent pursuant to this Agreement or the other Loan Documents. The Agent will
also furnish to any Lender, upon the request of such Lender, a copy of any certificate or notice furnished to the Agent by the Borrower, any Loan Party or any other Affiliate of the Borrower, pursuant to this Agreement or any other Loan Document not
already delivered to such Lender pursuant to the terms of this Agreement or any such other Loan Document. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of any of the
Obligations), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the
Requisite Lenders (or all of the Lenders if explicitly required under any other provision of this Agreement), and such instructions shall be binding upon all Lenders and all holders of any of the Obligations; provided, however, that, notwithstanding
anything in this Agreement to the contrary, the Agent shall not be required to take any action which exposes the Agent to personal liability or which is contrary to this Agreement or any other Loan Document or Applicable Law. Not in limitation of
the foregoing, the Agent shall not exercise any right or remedy it or the Lenders may have under any Loan Document upon the occurrence of a Default or an Event of Default unless the Requisite Lenders have so directed the Agent to exercise such right
or remedy. 
  
 Section 12.2. Agent’s Reliance, Etc. 
  
 Notwithstanding any other provisions of this Agreement or any other Loan
Documents, neither the Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any other Loan Document, except for
its or their own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment. Without limiting the generality of the foregoing, the Agent: (a) may treat the payee of any Note as the
holder thereof until the Agent receives written notice of the assignment or transfer thereof signed by such payee and in form satisfactory to the Agent; (b) may consult with legal counsel (including its own counsel or counsel for the Parent, the
Borrower or any other Loan Party), independent public accountants and other experts selected by it and shall not be 

  

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liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no
warranty or representation to any Lender or any other Person and shall not be responsible to any Lender or any other Person for any statements, warranties or representations made by any Person in or in connection with this Agreement or any other
Loan Document; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any of this Agreement or any other Loan Document or the satisfaction of any conditions
precedent under this Agreement or any Loan Document on the part of the Parent, the Borrower or other Persons or inspect the property, books or records of the Parent, the Borrower or any other Person; (e) shall not be responsible to any Lender for
the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document, any other instrument or document furnished pursuant thereto or any collateral covered thereby or the perfection or
priority of any Lien in favor of the Agent on behalf of the Lenders in any such collateral; and (f) shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telephone or telecopy) believed by it to be genuine and signed, sent or given by the proper party or parties. Unless set forth in writing to the contrary, the making of its initial Loan by a Lender shall
constitute a certification by such Lender to the Agent and the other Lenders that the conditions precedent for initial Loans set forth in Sections 6.1. and 6.2. that have not previously been waived by the Requisite Lenders have been satisfied.

  
 Section 12.3. Notice of Defaults. 
  
 The Agent shall not be deemed to have knowledge or notice of the occurrence
of a Default or Event of Default unless the Agent has received notice from a Lender or the Borrower referring to this Agreement, describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice
of default.” If any Lender (excluding the Lender which is also serving as the Agent) becomes aware of any Default or Event of Default, it shall promptly send to the Agent such a “notice of default.” Further, if the Agent receives such
a “notice of default”, the Agent shall give prompt notice thereof to the Lenders. 
  
 Section 12.4. Wachovia as Lender. 
  
 Wachovia, as a Lender, shall have the same rights and powers under this Agreement and any other Loan Document as any other Lender and may exercise the same as though it were not the Agent; and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated, include Wachovia in each case in its individual capacity. Wachovia and its affiliates may each accept deposits from, maintain deposits or credit balances for,
invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally engage in any kind of business with, the Parent, the Borrower, any other Loan Party or any other affiliate thereof as if it were any other
bank and without any duty to account therefor to the other Lenders. Further, the Agent and any affiliate may accept fees and other consideration from the Loan Parties for services in connection with this Agreement and otherwise without having to
account for the same to the other Lenders. The Lenders acknowledge that, pursuant to such activities, Wachovia or its affiliates may receive information regarding the Parent, the Borrower, other Loan Parties, other Subsidiaries and other Affiliates
(including information that may be subject to confidentiality 

  

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obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them. 
  
 Section 12.5. Approvals of Lenders. 
  
 All communications from the Agent to any Lender requesting such
Lender’s determination, consent, approval or disapproval (a) shall be given in the form of a written notice to such Lender, (b) shall be accompanied by a description of the matter or issue as to which such determination, approval, consent or
disapproval is requested, or shall advise such Lender where information, if any, regarding such matter or issue may be inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall include, if reasonably requested by such
Lender and to the extent not previously provided to such Lender, written materials and, as appropriate, a brief summary of all oral information provided to the Agent by the Parent or the Borrower in respect of the matter or issue to be resolved, and
(d) shall include the Agent’s recommended course of action or determination in respect thereof. Each Lender shall reply promptly, but in any event within 10 Business Days (or such lesser or greater period as may be specifically required under
the Loan Documents) of receipt of such communication. Except as otherwise provided in this Agreement, unless a Lender shall give written notice to the Agent that it specifically objects to the recommendation or determination of the Agent (together
with a written explanation of the reasons behind such objection) within the applicable time period for reply, such Lender shall be deemed to have conclusively approved of or consented to such recommendation or determination. 
  
 Section 12.6. Lender Credit Decision, Etc. 
  
 Each Lender expressly acknowledges and agrees that neither the Agent nor any
of its officers, directors, employees, agents, counsel, attorneys-in-fact or other affiliates has made any representations or warranties as to the financial condition, operations, creditworthiness, solvency or other information concerning the
business or affairs of the Parent, the Borrower, any other Loan Party, any Subsidiary or any other Person to such Lender and that no act by the Agent hereafter taken, including any review of the affairs of the Parent, the Borrower, any other Loan
Party or any other Subsidiary, shall be deemed to constitute any such representation or warranty by the Agent to any Lender. Each Lender acknowledges that it has made its own credit and legal analysis and decision to enter into this Agreement and
the transactions contemplated hereby, independently and without reliance upon the Agent, any other Lender or counsel to the Agent, or any of their respective officers, directors, employees and agents, and based on the financial statements of the
Parent, the Borrower, the other Subsidiaries or any other Affiliate thereof, and inquiries of such Persons, its independent due diligence of the business and affairs of the Parent, the Borrower, the other Loan Parties, the other Subsidiaries and
other Persons, its review of the Loan Documents, the legal opinions required to be delivered to it hereunder, the advice of its own counsel and such other documents and information as it has deemed appropriate. Each Lender also acknowledges that it
will, independently and without reliance upon the Agent, any other Lender or counsel to the Agent or any of their respective officers, directors, employees and agents, and based on such review, advice, documents and information as it shall deem
appropriate at the time, continue to make its own decisions in taking or not taking action under the Loan Documents. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Agent under
this Agreement or any of the other 

  

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Loan Documents, the Agent shall have no duty or responsibility to provide any Lender with any credit or other information concerning the business,
operations, property, financial and other condition or creditworthiness of the Parent, the Borrower, any other Loan Party or any other Affiliate thereof which may come into possession of the Agent, or any of its officers, directors, employees,
agents, attorneys-in-fact or other affiliates. Each Lender acknowledges that the Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only acting as counsel to the Agent and is not acting as counsel to
such Lender. 
  
 Section 12.7. Collateral Matters. 
  
 (a) The Agent is authorized on behalf of all of the Lenders, without the
necessity of any notice to or further consent from any Lender, from time to time prior to an Event of Default, to take any action with respect to any Collateral or Loan Documents which may be necessary to perfect and maintain perfected the Liens
upon the Collateral granted pursuant to any of the Loan Documents. 
  
 (b) The Lenders hereby authorize the Agent, at its option and in its discretion, to release any Lien granted to or held by the Agent upon any Collateral (i) upon termination of this Agreement in accordance with Section 13.10.; or (ii) as
required or permitted by Section 4.3. Upon request by the Agent at any time, the Lenders will confirm in writing the Agent’s authority to release particular types or items of Collateral pursuant to this Section or any other applicable provision
of any of the other Loan Documents. 
  
 (c) Upon any sale and
transfer of Collateral which is expressly permitted pursuant to the terms of this Agreement, and upon at least 5 Business Days’ prior written request by the Borrower, the Agent shall (and is hereby irrevocably authorized by all of the Lenders
to) execute such documents as may be necessary to evidence the release of the Liens granted to the Agent for the benefit of the Lenders herein or pursuant hereto upon the Collateral that was sold or transferred; provided, however, that (i) the Agent
shall not be required to execute any such document on terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty;
and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Liens upon (or obligations of the Borrower or any Loan Party in respect of) all interests retained by the Borrower or any Subsidiary, including (without
limitation) the proceeds of the sale, all of which shall continue to constitute part of the Collateral. In the event of any sale or transfer of Collateral, or any foreclosure with respect to any of the Collateral, the Agent shall be authorized to
deduct all of the expenses reasonably incurred by the Agent from the proceeds of any such sale, transfer or foreclosure. 
  
 (d) The Agent shall have no obligation whatsoever to the Lenders or to any other Person to assure that the Collateral exists or is owned by any Loan Party
or is cared for, protected or insured or that the Liens granted to the Agent herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to
exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Agent in this Section or in any of the Loan Documents, it being
understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Agent may act in 

  

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any manner it may deem appropriate, in its sole discretion, given the Agent’s own interest in the Collateral as one of the Lenders and that the Agent
shall have no duty or liability whatsoever to the Lenders, except to the extent found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the Agent’s gross negligence or willful misconduct. 

 
 Section 12.8. Indemnification of Agent. 
  
 Each Lender agrees to indemnify the Agent (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so) pro rata in accordance with such Lender’s respective Commitment Percentage, from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the Agent (in its capacity as Agent but not as a Lender) in any way relating to or arising out
of the Loan Documents, any transaction contemplated hereby or thereby or any action taken or omitted by the Agent under the Loan Documents (collectively, “Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any
portion of such Indemnifiable Amounts to the extent resulting from the Agent’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment or if the Agent fails to follow the
written direction of the Requisite Lenders (or all of the Lenders if expressly required hereunder) unless such failure results from the Agent following the advice of counsel to the Agent of which advice the Lenders have received notice. Without
limiting the generality of the foregoing but subject to the preceding proviso, each Lender agrees to reimburse the Agent (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), promptly upon
demand for its ratable share of any out-of-pocket expenses (including counsel fees of the counsel(s) of the Agent’s own choosing) incurred by the Agent in connection with the preparation, negotiation, execution, or enforcement of, or legal
advice with respect to the rights or responsibilities of the parties under, the Loan Documents, any suit or action brought by the Agent to enforce the terms of the Loan Documents and/or collect any Obligations, any “lender liability” suit
or claim brought against the Agent and/or the Lenders, and any claim or suit brought against the Agent, and/or the Lenders arising under any Environmental Laws. Such out-of-pocket expenses (including counsel fees) shall be advanced by the Lenders on
the request of the Agent notwithstanding any claim or assertion that the Agent is not entitled to indemnification hereunder upon receipt of an undertaking by the Agent that the Agent will reimburse the Lenders if it is actually and finally
determined by a court of competent jurisdiction that the Agent is not so entitled to indemnification. The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder or under the other Loan Documents and
the termination of this Agreement. If the Borrower shall reimburse the Agent for any Indemnifiable Amount following payment by any Lender to the Agent in respect of such Indemnifiable Amount pursuant to this Section, the Agent shall share such
reimbursement on a ratable basis with each Lender making any such payment. 
  
 Section 12.9. Successor Agent. 
  
 The Agent may
resign at any time as Agent under the Loan Documents by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation, the Requisite Lenders shall have the right to appoint a successor Agent which appointment shall,
provided no Default or Event of Default exists, be subject to the Borrower’s approval, which approval shall 

  

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not be unreasonably withheld or delayed (except that the Borrower shall, in all events, be deemed to have approved each Lender and its affiliates as a
successor Agent). If no successor Agent shall have been so appointed in accordance with the immediately preceding sentence, and shall have accepted such appointment, within 30 days after the resigning Agent’s giving of notice of resignation,
then the resigning Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a Lender, if any Lender shall be willing to serve, and otherwise shall be a commercial bank having total combined assets of at least $50,000,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall
be discharged from its duties and obligations under the Loan Documents. Such successor Agent shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or shall make other arrangements
satisfactory to the current Agent, in either case, to assume effectively the obligations of the current Agent with respect to such Letters of Credit. After any Agent’s resignation hereunder as Agent, the provisions of this Article XII. shall
continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under the Loan Documents. 
  
 Section 12.10. Titled Agents. 
  
 Each of the Titled Agents in each such respective capacity, assumes no responsibility or obligation hereunder, including, without limitation, for
servicing, enforcement or collection of any of the Loans, nor any duties as an agent hereunder for the Lenders. The titles of “Tri-Lead Arranger”, “Tri-Bookrunner” and “Syndication Agent” are solely honorific and imply
no fiduciary responsibility on the part of the Titled Agents to the Agent, the Borrower or any Lender and the use of such titles does not impose on the Titled Agents any duties or obligations greater than those of any other Lender or entitle the
Titled Agents to any rights other than those to which any other Lender is entitled. 
  
 ARTICLE XIII. MISCELLANEOUS 
  
 Section 13.1. Notices. 
  
 Unless otherwise provided herein, communications provided for hereunder shall be in writing and shall be mailed, telecopied or delivered as follows: 
  
 If to the Borrower: 
  
 DiamondRock Hospitality Limited Partnership 
 6903 Rockledge Dr., Suite 800 
 Bethesda, Maryland 20817 
 Attn: Michael Schecter 

			
	 Telephone:
	 	(301) 380-6012
	 Telecopy:
	 	(301) 380-6850

  

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 With a copy to: 
  

Willkie Farr & Gallagher LLP 
 787 Seventh Ave. 
 New York, New York 10019 
 Attn: Steven D. Klein 

			
	Telephone:	  	(212) 728-8221
	Telecopy:	  	(212) 728-8111

  
 If to the Agent:

  
 Wachovia Bank, National Association

 301 S. College Street, NC0172 
 Charlotte, North Carolina 28288 
 Attn: David M. Blackman 

			
	Telephone:	  	(704) 374-6272
	Telecopy:	  	(704) 383-6205

  
 If to a Lender:

  
 To such Lender’s address or telecopy number, as
applicable, set forth on its signature page hereto or in the applicable Assignment and Acceptance Agreement; 
  
 or, as to each party at such other address as shall be designated by such party in a written notice to the other parties delivered in compliance with this Section. All such notices and other communications shall be
effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered or sent by overnight courier, when delivered. Notwithstanding the immediately preceding sentence, all notices or communications to the Agent or
any Lender under Article II. shall be effective only when actually received. Neither the Agent nor any Lender shall incur any liability to the Borrower (nor shall the Agent incur any liability to the Lenders) for acting upon any telephonic notice
referred to in this Agreement which the Agent or such Lender, as the case may be, believes in good faith to have been given by a Person authorized to deliver such notice or for otherwise acting in good faith hereunder. Failure of a Person designated
to get a copy of a notice to receive such copy shall not affect the validity of notice properly given to any other Person. 
  
 Section 13.2. Expenses. 
  
 The Borrower agrees (a) to pay or reimburse each of the Agent and the Arranger for all of its reasonable out-of-pocket costs and expenses incurred in
connection with the preparation, negotiation and execution of, and any amendment, supplement or modification to, any of the Loan Documents (including due diligence expenses and travel expenses relating to closing), and the consummation of the
transactions contemplated thereby, including the reasonable fees and disbursements of counsel to the Agent and the Arranger and costs and expenses in connection with (i) the use of IntraLinks, Inc. or other similar information transmission systems
in connection with the Loan Documents, and (ii) the reasonable fees and disbursements of counsel to the Agent and all third party costs and expenses incurred by the Agent in connection with the review of Properties for inclusion in calculations of
the Collateral Property Value and the 

  

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Agent’s other activities under Article XII., including the cost of all Appraisals, title insurance and the reasonable fees and disbursements of counsel
to the Agent relating to all such activities (b) to pay or reimburse the Agent, the Arranger and the Lenders for all their reasonable costs and expenses incurred in connection with the enforcement or preservation of any rights under the Loan
Documents, including the reasonable fees and disbursements of their respective counsel (including the allocated fees and expenses of in-house counsel) and any payments in indemnification or otherwise payable by the Lenders to the Agent pursuant to
the Loan Documents, (c) to pay, and indemnify and hold harmless the Agent, the Arranger and the Lenders from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any failure to pay or delay in paying,
documentary, stamp, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of any of the Loan Documents, or consummation of any amendment, supplement or modification of,
or any waiver or consent under or in respect of, any Loan Document and (d) to the extent not already covered by any of the preceding subsections, to pay or reimburse the Agent, the Arranger and the Lenders for all their costs and expenses incurred
in connection with any bankruptcy or other proceeding of the type described in Sections 11.1.(f) or 11.1.(g), including the reasonable fees and disbursements of counsel to the Agent, the Arranger and any Lender, whether such fees and expenses are
incurred prior to, during or after the commencement of such proceeding or the confirmation or conclusion of any such proceeding. If the Borrower shall fail to pay any amounts required to be paid by it pursuant to this Section, the Agent, and/or the
Lenders may pay such amounts on behalf of the Borrower and either deem the same to be Loans outstanding hereunder or otherwise Obligations owing hereunder. 
  
 Section 13.3. Setoff. 
  
 Subject to Section 3.3. and in addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, the
Agent, each Lender and each Participant is hereby authorized by the Borrower, at any time or from time to time during the continuance of an Event of Default, without prior notice to the Borrower or to any other Person, any such notice being hereby
expressly waived, but in the case of a Lender or Participant subject to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off and to appropriate and to apply any and all deposits (general or special,
including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Lender or any affiliate of the Agent or such Lender, to or for
the credit or the account of the Borrower against and on account of any of the Obligations, irrespective of whether or not any or all of the Loans and all other Obligations have been declared to be, or have otherwise become, due and payable as
permitted by Section 11.2., and although such obligations shall be contingent or unmatured. 
  
 Section 13.4. Litigation; Jurisdiction; Other Matters; Waivers. 
  
 (a) EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS WOULD BE
BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT, THE PARENT, AND THE BORROWER HEREBY 

  

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WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR
AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT, THE NOTES, OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS OF ANY
KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS. 
  
 (b) EACH
OF THE PARENT, THE BORROWER, THE AGENT AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, OR, AT THE OPTION OF THE AGENT, ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN OF NEW YORK, NEW YORK,
SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PARENT, THE BORROWER, THE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE LOANS AND LETTERS OF CREDIT, THE NOTES OR ANY
OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM. THE PARENT, THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO
SUCH CLAIMS OR DISPUTES. EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH
AGREES NOT TO PLEAD OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH
FORUM IN ANY OTHER APPROPRIATE JURISDICTION. 
  
 (c) THE
PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE
OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS AGREEMENT. 
  
 Section 13.5. Successors and Assigns. 
  
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted
assigns, except that neither the Parent or the Borrower may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of all Lenders and any such assignment or other transfer to which all of
the Lenders have not so consented shall be null and void. 
  

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 (b) Any Lender may make, carry or transfer Loans at, to or for the account of any of its branch offices
or the office of an affiliate of such Lender except to the extent such transfer would result in increased costs to the Borrower. 
  
 (c) Any Lender may at any time grant to one or more banks or other financial institutions (each a “Participant”) participating interests in its
Commitment or the Obligations owing to such Lender; provided, however, (i) any such participating interest must be for a constant and not a varying percentage interest, and (ii) after giving effect to any such participation by a Lender, the amount
of its Commitment, or if the Commitments have been terminated, the aggregate outstanding principal balance of Notes held by it, in which it has not granted any participating interests must be equal to $10,000,000. Except as otherwise provided in
Section 13.3., no Participant shall have any rights or benefits under this Agreement or any other Loan Document. In the event of any such grant by a Lender of a participating interest to a Participant, such Lender shall remain responsible for the
performance of its obligations hereunder, and the Borrower and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement pursuant to which
any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Borrower hereunder including, without limitation, the right to approve any amendment,
modification or waiver of any provision of this Agreement; provided, however, such Lender may agree with the Participant that it will not, without the consent of the Participant, agree to (i) increase, or extend the term (to the extent consent is
required with respect thereto) or extend the time or waive any requirement for the reduction or termination of, such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or interest on the Loans or portions thereof
owing to such Lender, (iii) reduce the amount of any such payment of principal, (iv) reduce the rate at which interest is payable thereon or (v) release any Guarantor (except as otherwise permitted under Section 4.3.). An assignment or other
transfer which is not permitted by subsection (d) or (e) below shall be given effect for purposes of this Agreement only to the extent of a participating interest granted in accordance with this subsection (c). Upon request from the Agent, a Lender
shall notify the Agent of the sale of any participation hereunder and, if requested by the Agent, certify to the Agent that such participation is permitted hereunder and that the requirements of Section 3.12. (c) have been satisfied. 
  
 (d) Any Lender may with the prior written consent of the Agent and, so long
as no Default or Event of Default exists, the Borrower (which consent, in each case, shall not be unreasonably withheld (it being agreed that the Borrower’s withholding of consent to an assignment which would result in the Borrower having to
pay amounts under Section 3.12. shall be deemed to be reasonable)), assign to one or more Eligible Assignees (each an “Assignee”) all or a portion of its rights and obligations under this Agreement and the Notes (including all or a portion
of its Commitments and the Loans owing to such Lender); provided, however, (i) no such consent by the Borrower shall be required in the case of any assignment to another Lender or any affiliate of such Lender or another Lender and no such consent by
the Agent shall be required in the case of any assignment by a Lender to any affiliate of such Lender; (ii) unless the Borrower and the Agent otherwise agree, after giving effect to any partial assignment by a Lender, the Assignee shall hold, and
the assigning Lender shall retain, a Commitment, or if the Commitments have been terminated, Loans having an outstanding principal balance, of at least 

  

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$10,000,000 and integral multiples of $1,000,000 in excess thereof; and (iii) each such assignment shall be effected by means of an Assignment and Acceptance
Agreement. Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a Lender party
to this Agreement with respect to the assigned interest as of the effective date of the Assignment and Acceptance Agreement and shall have all the rights and obligations of a Lender with respect to the assigned interest as set forth in such
Assignment and Acceptance Agreement, and the transferor Lender shall be released from its obligations hereunder with respect to the assigned interest to a corresponding extent, and no further consent or action by any party shall be required. Upon
the consummation of any assignment pursuant to this subsection, the transferor Lender, the Agent and the Borrower shall make appropriate arrangements so that new Notes are issued to the Assignee and such transferor Lender, as appropriate. In
connection with any such assignment, the transferor Lender shall pay to the Agent an administrative fee for processing such assignment in the amount of $3,500. Anything in this Section to the contrary notwithstanding, no Lender may assign or
participate any interest in its Commitment or any Loan held by it hereunder to the Borrower or any Subsidiary or Affiliate of the Borrower. 
  
 (e) The Agent shall maintain at the Principal Office a copy of each Assignment and Acceptance Agreement delivered to and accepted by it and a register for
the recordation of the names and addresses of the Lenders and the Commitment of each Lender (including the outstanding principal balance, accrued and unpaid interest and other fees due thereunder) from time to time (the “Register”). The
Agent shall give each Lender and the Borrower notice of the assignment by any Lender of its rights as contemplated by this Section. The Borrower, the Agent and the Lenders shall treat each Person whose name is recorded in the Register as a Lender
hereunder for all purposes of this Agreement. The Register and copies of each Assignment and Acceptance Agreement shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior
notice to the Agent. Upon its receipt of an Assignment and Acceptance Agreement executed by an assigning Lender, together with each Note subject to such assignment, the Agent shall, if such Assignment and Acceptance Agreement has been completed and
if the Agent receives the processing and recording fee described in subsection (d) above, (i) accept such Assignment and Acceptance Agreement, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the
Borrower. 
  
 (f) In addition to the assignments and
participations permitted under the foregoing provisions of this Section, any Lender may assign and pledge all or any portion of its Loans and its Notes to any Federal Reserve Bank as collateral security pursuant to Regulation A and any Operating
Circular issued by such Federal Reserve Bank, and such Loans and Notes shall be fully transferable as provided therein. No such assignment shall release the assigning Lender from its obligations hereunder. 
  
 (g) A Lender may furnish any information concerning the Borrower, any other
Loan Party or any of their respective Subsidiaries in the possession of such Lender from time to time to Assignees and Participants (including prospective Assignees and Participants) subject to compliance with Section 13.8. 
  

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 (h) Anything in this Section to the contrary notwithstanding, no Lender may assign or participate any
interest in any Loan held by it hereunder to the Borrower, any other Loan Party or any of their respective Affiliates or Subsidiaries. 
  
 (i) Each Lender agrees that, without the prior written consent of the Borrower and the Agent, it will not make any assignment hereunder in any manner or
under any circumstances that would require registration or qualification of, or filings in respect of, any Loan or Note under the Securities Act or any other securities laws of the United States of America or of any other jurisdiction. 

 
 Section 13.6. Amendments. 
  
 (a) Except as otherwise expressly provided in this Agreement, any consent or
approval required or permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, and any term of this Agreement or of any other Loan Document may be amended, and the performance or observance by the Borrower or
any other Loan Party or any Subsidiary of any terms of this Agreement or such other Loan Document or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Requisite Lenders (and, in the case of an amendment to any Loan Document, the written consent of each Loan Party a party thereto). 
  
 (b) Notwithstanding the foregoing, without the prior written consent of each
Lender adversely affected thereby, no amendment, waiver or consent shall do any of the following: 
  
 (i) increase the Commitments of the Lenders (except for any increase in the Commitments effectuated pursuant to Section 2.15.) or subject
the Lenders to any additional obligations; 
  
 (ii) reduce the principal of, or interest rates that have accrued or that will be charged on the outstanding principal amount of, any Loans or other Obligations; 
  
 (iii) reduce the amount of any Fees payable hereunder or postpone any date fixed for payment thereof;

  
 (iv) modify the definition of the term
“Termination Date” (except as contemplated under Section 2.12.) or otherwise postpone any date fixed for any payment of any principal of, or interest on, any Loans or any other Obligations (including the waiver of any Default or Event of
Default as a result of the nonpayment of any such Obligations as and when due), or extend the expiration date of any Letter of Credit beyond the Termination Date; 
  
 (v) amend or otherwise modify the provisions of Section 3.2.; 
  
 (vi) modify the definition of the term “Requisite
Lenders” or otherwise modify in any other manner the number or percentage of the Lenders required to make any 

  

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determinations or waive any rights hereunder or to modify any provision hereof, including without limitation, any modification of this Section 13.6. if such
modification would have such effect; 
  
 (vii)
release any Guarantor from the Guaranty other than as provided in Section 4.3. in connection with the release of a Collateral Property or Section 8.15.(a); 
  
 (viii) release any of the Collateral from the Lien of the Security Documents other than as provided in Section 4.3. in connection with the
release of a Collateral Property or Section 8.15.(b); 
  
 (ix) amend or otherwise modify the provisions of Section 4.1.; 
  
 (x) modify the definition of the term “Eligible Property”; 
  
 (xi) amend or otherwise modify the provisions of Section 2.14.; or 
  
 (xii) increase the number of Interest Periods permitted with respect to Loans under Section 2.5. 

 
 (c) No amendment, waiver or consent, unless in writing and signed by the
Agent, in such capacity, in addition to the Lenders required hereinabove to take such action, shall affect the rights or duties of the Agent under this Agreement or any of the other Loan Documents. Any amendment, waiver or consent relating to
Section 2.2. or the obligations of the Swingline Lender under this Agreement or any other Loan Document shall, in addition to the Lenders required hereinabove to take such action, require the written consent of the Swingline Lender. 
  
 (d) No waiver shall extend to or affect any obligation not expressly waived
or impair any right consequent thereon and any amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose set forth therein. Except as otherwise provided in Section 12.5., no course of dealing or delay
or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto. Any Event of Default occurring hereunder shall continue to exist until such time as such Event of
Default is waived in writing in accordance with the terms of this Section, notwithstanding any attempted cure or other action by any Loan Party or any other Person subsequent to the occurrence of such Event of Default. Except as otherwise explicitly
provided for herein or in any other Loan Document, no notice to or demand upon any Loan Party shall entitle such Loan Party to any other or further notice or demand in similar or other circumstances. 
  
 Section 13.7. Nonliability of Agent and Lenders. 
  
 The relationship between the Borrower and the Lenders and the Agent shall be
solely that of borrower and lender. Neither the Agent nor any Lender shall have any fiduciary responsibilities to the Borrower or the Parent and no provision in this Agreement or in any of the other Loan Documents, and no course of dealing between
or among any of the parties hereto, shall be deemed to create any fiduciary duty owing by the Agent or any Lender to any Lender, the Borrower, any Subsidiary or any other Loan Party. Neither the Agent nor any Lender 

  

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undertakes any responsibility to the Borrower or the Parent to review or inform the Borrower or the Parent of any matter in connection with any phase of the
business or operations of the Borrower or the Parent. 
  
 Section 13.8.
Confidentiality. 
  
 The Agent and each Lender shall use
reasonable efforts to assure that information about the Parent, Borrower, the other Loan Parties and other Subsidiaries, and the Properties thereof and their operations, affairs and financial condition, not generally disclosed to the public, which
is furnished to the Agent or any Lender pursuant to the provisions of this Agreement or any other Loan Document, is used only for the purposes of this Agreement and the other Loan Documents and shall not be divulged to any Person other than the
Agent, the Lenders, and their respective agents who are actively and directly participating in the evaluation, administration or enforcement of the Loan Documents and other transactions between the Agent or such Lender, as applicable, and the
Borrower, but in any event the Agent and the Lenders may make disclosure: (a) to any of their respective affiliates (provided they shall agree to keep such information confidential in accordance with the terms of this Section 13.8.); (b) as
reasonably requested by any bona fide Assignee, Participant or other transferee in connection with the contemplated transfer of any Commitment or participations therein as permitted hereunder (provided they shall agree to keep such information
confidential in accordance with the terms of this Section); (c) as required or requested by any Governmental Authority or representative thereof or pursuant to legal process or in connection with any legal proceedings; (d) to the Agent’s or
such Lender’s independent auditors and other professional advisors (provided they shall be notified of the confidential nature of the information); (e) after the happening and during the continuance of an Event of Default, to any other Person,
in connection with the exercise by the Agent or the Lenders of rights hereunder or under any of the other Loan Documents; (f) upon Borrower’s prior consent (which consent shall not be unreasonably withheld), to any contractual counter-parties
to any swap or similar hedging agreement or to any rating agency; and (g) to the extent such information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Agent or any Lender on a
nonconfidential basis from a source other than the Borrower or any Affiliate. 
  
 Section 13.9. Indemnification. 
  
 (a) The
Borrower shall and hereby agrees to indemnify, defend and hold harmless the Agent, each of the Lenders, any affiliate of the Agent or any Lender, and their respective directors, officers, shareholders, agents, employees and counsel (each referred to
herein as an “Indemnified Party”) from and against any and all of the following (collectively, the “Indemnified Costs”): losses, costs, claims, damages, liabilities, deficiencies, judgments or reasonable expenses of every kind
and nature (including, without limitation, amounts paid in settlement, court costs and the reasonable fees and disbursements of counsel incurred in connection with any litigation, investigation, claim or proceeding or any advice rendered in
connection therewith, but excluding losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses indemnification in respect of which is specifically covered by Section 3.12. or 5.1. or expressly excluded from the coverage of such
Sections 3.12. or 5.1.) incurred by an Indemnified Party in connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration, investigation or settlement, consent decree or other proceeding 

  

 - 100 - 

 
(the foregoing referred to herein as an “Indemnity Proceeding”) which is in any way related directly or indirectly to: (i) this Agreement or any
other Loan Document or the transactions contemplated thereby; (ii) the making of any Loans or issuance of Letters of Credit hereunder; (iii) any actual or proposed use by the Borrower of the proceeds of the Loans or Letters of Credit; (iv) the
Agent’s or any Lender’s entering into this Agreement; (v) the fact that the Agent and the Lenders have established the credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the Agent and the Lenders are creditors of
the Borrower and have or are alleged to have information regarding the financial condition, strategic plans or business operations of the Parent, the Borrower and the Subsidiaries; (vii) the fact that the Agent and the Lenders are material creditors
of the Borrower and are alleged to influence directly or indirectly the business decisions or affairs of the Parent, the Borrower and the Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Agent or the Lenders
may have under this Agreement or the other Loan Documents; (ix) any civil penalty or fine assessed by the OFAC against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof by,
the Agent or any Lender as a result of conduct of the Borrower, any other Loan Party or any Subsidiary that violates a sanction enforced by the OFAC; or (x) any violation or non-compliance by the Parent, the Borrower or any Subsidiary of any
Applicable Law (including any Environmental Law) including, but not limited to, any Indemnity Proceeding commenced by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental Authority or other Person under any
Environmental Law, including any Indemnity Proceeding commenced by a Governmental Authority or other Person seeking remedial or other action to cause the Borrower or its Subsidiaries (or its respective properties) (or the Agent and/or the Lenders as
successors to the Borrower) to be in compliance with such Environmental Laws; provided, however, that the Borrower shall not be obligated to indemnify any Indemnified Party for (A) any acts or omissions of such Indemnified Party in connection with
matters described in this subsection to the extent arising from the gross negligence or willful misconduct of such Indemnified Party, as determined by a court of competent jurisdiction in a final, non-appealable judgment or (B) Indemnified Costs to
the extent arising directly out of or resulting directly from claims of one or more Indemnified Parties against another Indemnified Party. 
  
 (b) The Borrower’s indemnification obligations under this Section 13.9. shall apply to all Indemnity Proceedings arising out of, or related to, the
foregoing whether or not an Indemnified Party is a named party in such Indemnity Proceeding. In this regard, this indemnification shall cover all Indemnified Costs of any Indemnified Party in connection with any deposition of any Indemnified Party
or compliance with any subpoena (including any subpoena requesting the production of documents). This indemnification shall, among other things, apply to any Indemnity Proceeding commenced by other creditors of the Borrower or any Subsidiary, any
shareholder of the Borrower or any Subsidiary (whether such shareholder(s) are prosecuting such Indemnity Proceeding in their individual capacity or derivatively on behalf of the Borrower), any account debtor of the Borrower or any Subsidiary or by
any Governmental Authority. If indemnification is to be sought hereunder by an Indemnified Party, then such Indemnified Party shall notify the Borrower of the commencement of any Indemnity Proceeding; provided, however, that the failure to so notify
the Borrower shall not relieve the Borrower from any liability that it may have to such Indemnified Party pursuant to this Section 13.9. except to the extent such failure to notify materially and adversely affects the Borrower. 
  

 - 101 - 

 (c) This indemnification shall apply to any Indemnity Proceeding arising during the pendency of any
bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary. 
  
 (d) All out-of-pocket fees and expenses of, and all amounts paid to third-persons by, an Indemnified Party shall be advanced by the Borrower at the request of such Indemnified Party notwithstanding any claim or
assertion by the Borrower that such Indemnified Party is not entitled to indemnification hereunder, upon receipt of an undertaking by such Indemnified Party that such Indemnified Party will reimburse the Borrower if it is actually and finally
determined by a court of competent jurisdiction that such Indemnified Party is not so entitled to indemnification hereunder. 
  
 (e) An Indemnified Party may conduct its own investigation and defense of, and may formulate its own strategy with respect to, any Indemnity Proceeding
covered by this Section and, as provided above, all Indemnified Costs incurred by such Indemnified Party shall be reimbursed by the Borrower. No action taken by legal counsel chosen by an Indemnified Party in investigating or defending against any
such Indemnity Proceeding shall vitiate or in any way impair the obligations and duties of the Borrower hereunder to indemnify and hold harmless each such Indemnified Party; provided, however, that if (i) the Borrower is required to indemnify an
Indemnified Party pursuant hereto and (ii) the Borrower has provided evidence reasonably satisfactory to such Indemnified Party that the Borrower has the financial wherewithal to reimburse such Indemnified Party for any amount paid by such
Indemnified Party with respect to such Indemnity Proceeding, such Indemnified Party shall not settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrower (which consent shall not be unreasonably withheld or
delayed). Notwithstanding the foregoing, an Indemnified Party may settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrower where (x) no monetary relief is sought against such Indemnified Party in such
Indemnity Proceeding or (y) there is an allegation of a violation of law by such Indemnified Party. 
  
 (f) If and to the extent that the obligations of the Borrower under this Section are unenforceable for any reason, the Borrower hereby agrees to make the
maximum contribution to the payment and satisfaction of such obligations which is permissible under Applicable Law. 
  
 (g) The Borrower’s obligations under this Section shall survive any termination of this Agreement and the other Loan Documents and the payment in
full in cash of the Obligations, and are in addition to, and not in substitution of, any other of their obligations set forth in this Agreement or any other Loan Document to which it is a party. 
  
 Section 13.10. Termination; Survival. 
  
 At such time as (a) all of the Commitments have been terminated, (b) all
Letters of Credit have terminated, (c) none of the Lenders nor the Swingline Lender is obligated any longer under this Agreement to make any Loans and (d) all Obligations (other than obligations which survive as provided in the following sentence)
have been paid and satisfied in full, this Agreement shall terminate. The indemnities to which the Agent, the Lenders and the Swingline Lender are entitled under the provisions of Sections 3.12., 5.1., 5.4., 12.8., 13.2. and 13.9. and any other

  

 - 102 - 

 
provision of this Agreement and the other Loan Documents, and the provisions of Section 13.4., shall continue in full force and effect and shall protect the
Agent, the Lenders and the Swingline Lender (i) notwithstanding any termination of this Agreement, or of the other Loan Documents, against events arising after such termination as well as before and (ii) at all times after any such party ceases to
be a party to this Agreement with respect to all matters and events existing on or prior to the date such party ceased to be a party to this Agreement. The Agent agrees to furnish to the Borrower, upon the Borrower’s request and at the
Borrower’s sole cost and expense, any release, termination, or other agreement or document evidencing the foregoing termination and the release of the Liens created under any of the Security Documents as may be reasonably requested by the
Borrower. 
  
 Section 13.11. Severability of Provisions. 
  
 Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions or affecting the validity or enforceability of
such provision in any other jurisdiction. 
  
 Section 13.12. GOVERNING LAW.

  
 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
  
 Section 13.13. Patriot Act. 
  
 The Lenders and the Agent each hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Agent, as
applicable, to identify the Borrower in accordance with such Act. 
  
 Section
13.14. Counterparts. 
  
 This Agreement and any amendments,
waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together
shall constitute but one and the same instrument. 
  
 Section 13.15.
Obligations with Respect to Loan Parties. 
  
 The obligations
of the Parent or the Borrower to direct or prohibit the taking of certain actions by the other Loan Parties as specified herein shall be absolute and not subject to any defense the Parent or the Borrower may have that the Parent or the Borrower does
not control such Loan Parties. 
  

 - 103 - 

 Section 13.16. Limitation of Liability. 
  
 Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or agent of the Agent or any
Lender shall have any liability with respect to, and each of the Parent and the Borrower hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred
by the Parent or the Borrower in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other Loan Documents. Each of the
Parent and the Borrower hereby waives, releases, and agrees not to sue the Agent or any Lender or any of the Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any
claim in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or financed hereby. 
  
 Section 13.17. Entire Agreement. 
  
 This Agreement, the Notes, and the other Loan Documents referred to herein
embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations, and understandings, whether written or oral, relating to the subject matter hereof and thereof and may not be
contradicted or varied by evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto. 
  
 Section 13.18. Construction. 
  
 The Parent, the Borrower, the Agent and each Lender acknowledge that each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents with its legal counsel and that this Agreement and the other Loan Documents shall be construed as if jointly drafted by the Parent, the Borrower, the Agent and each
Lender. 
  
 [Signatures on Following Pages] 
  

 - 104 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be executed by their
authorized officers all as of the day and year first above written. 
  

							
	DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP
		
	By:	 	DiamondRock Hospitality Company, its sole General Partner
				
	 	 	By:	 	 	 	/s/  Mark W. Brugger
	 	 	 	 	 Name:
	 	Mark W. Brugger
	 	 	 	 	 Title:
	 	 Executive Vice President,
 Chief Financial Officer and Treasurer

							
	
	DIAMONDROCK HOSPITALITY COMPANY
				
	By:	 	 	 	 	 	/s/  Mark W. Brugger
	 	 	 Name:
	 	 	 	Mark W. Brugger
	 	 	 Title:
	 	 	 	 Executive Vice President,
 Chief Financial Officer and Treasurer

  
 [Signatures
Continued on Next Page] 
  

 - 105 - 

  
 [Signature Page to Credit
Agreement dated as of 
 July 8, 2005 with DiamondRock Hospitality Limited Partnership] 
  

					
	 WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent, as a Lender and as Swingline Lender

			
	 By:
	 	 	 	/s/  David M. Blackman
	 	 	 Name:
	 	David M. Blackman
	 	 	 Title:
	 	Managing Director

					
	
	Commitment Amount:
	
	$25,000,000
	
	Lending Office (all Types of Loans):
	
	 Wachovia Bank, National Association
 301 S. College Street, NC0172
 Charlotte, North Carolina 28288
 Attn: David M. Blackman

	Telephone:	 	     (704) 374-6272

	Telecopy:	 	    (704) 383-6205

  
 [Signatures
Continued on Next Page] 
  

 - 106 - 

  
 [Signature Page to Credit
Agreement dated as of 
 July 8, 2005 with DiamondRock Hospitality Limited Partnership] 
  

					
	 CITICORP NORTH AMERICA, INC.

		
	 By:
	 	 /s/  David Bouton

	 	 	 Name:
	 	 David Bouton

	 	 	 Title:
	 	 Vice President

					
	
	Commitment Amount:
	
	$25,000,000
	
	Lending Office (all Types of Loans):
	
	 390 Greenwich
 New York, New 10013

Attn: Niraj Shah

	Telephone:	 	  (212) 723-6351

	Telecopy:	 	 (212) 646-291-1622

  

 - 107 - 

  
 [Signature Page to Credit
Agreement dated as of 
 July 8, 2005 with DiamondRock Hospitality Limited Partnership] 
  

					
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 /s/  Steven Renwick

	 	 	 Name:
	 	 Steven Renwick

	 	 	 Title:
	 	 Senior Vice President

					
	
	Commitment Amount:
	
	$25,000,000
	
	Lending Office (all Types of Loans):
	
	 Bank of America, N.A.
 901 Main Street,
64th Floor
 Mail Code
TX1-492-14-04
 Dallas, Texas 75202
 Attn: Ms. Jayshree
Shah

	Telephone:	 	  (214) 209 1232

	Telecopy:	 	 (214) 290-9486

  

 - 108 -Business Loan Agreement

 Exhibit 10.1 
  
 BUSINESS LOAN AGREEMENT 
  

																
	Principal

	  	Loan Date

	  	Maturity

	  	Loan No

	  	Call / Coll

	  	Account

	  	Officer

	  	Initials

	$	1,500,000.00	  	06-14-2005	  	06-14-2008	  	258905	  	410	  	0000002589-01	  	310	  	 

  
 References in the
shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations. 
  

							
	Borrower:	  	 RAINMAKER SYSTEMS, INC.
 1800 GREEN HILLS
ROAD
 SCOTTS VALLEY CA 95066
	  	Lender:	  	 BRIDGE BANK, National Association
 55 Almaden
Boulevard
 Suite 100
 San Jose, CA
95113

  
 THIS BUSINESS LOAN AGREEMENT dated
June 14, 2005, is made and executed between RAINMAKER SYSTEMS, INC. (“Borrower”) and BRIDGE BANK, National Association (“Lender”) on the following terms and conditions. Borrower has received prior commercial loans from Lender or
has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may be described on any exhibit or schedule attached to this Agreement (“Loan”). Borrower understands and agrees that: (A) in
granting, renewing, or extending any Loan, Lender is relying upon Borrower’s representations, warranties, and agreements as set forth in this Agreement; (B) the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender’s sole judgment and discretion; and (C) all such Loans shall be and remain subject to the terms and conditions of this Agreement. 
  
 TERM. This Agreement shall be effective as of June 14, 2005, and shall continue in full force and effect until such time as all of Borrower’s Loans in favor
of Lender have been paid in full, including principal, interest, costs, expenses, attorneys’ fees, and other fees and charges, or until such time as the parties may agree in writing to terminate this Agreement. 
  
 CONDITIONS PRECEDENT TO EACH ADVANCE. Lender’s obligation to make the initial
Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender’s satisfaction of all of the conditions set forth in this Agreement and in the Related Documents. 
  
 Loan Documents. Borrower shall provide to Lender the following
documents for the Loan: (1) the Note; (2) Security Agreements granting to Lender security interests in the Collateral; (3) financing statements and all other documents perfecting Lender’s Security Interests; (4) evidence of insurance as
required below; (5) together with all such Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender’s counsel. 
  
 Borrower’s Authorization. Borrower shall have provided in form and substance satisfactory to Lender properly
certified resolutions, duly authorizing the execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have provided such other resolutions, authorizations, documents and instruments as Lender or its
counsel, may require. 
  
 Payment of Fees and Expenses.
Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document. 
  
 Representations and Warranties. The representations and warranties set forth in this Agreement, in the Related
Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct. 
  
 No Event of Default. There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement
or under any Related Document. 
  
 REPRESENTATIONS AND WARRANTIES. Borrower
represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists: 
  
 Organization. Borrower is a corporation for profit which is, and at
all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Delaware. Borrower is duly authorized to transact business in the State of California and all other states in which Borrower
is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which Borrower is doing business. Specifically, Borrower is, and at all times shall be, duly qualified as a foreign corporation in all
states in which the failure to so qualify would have a material adverse effect on its business or financial condition. Borrower has the full power and authority to own its properties and to transact the business in which it is presently engaged or
presently proposes to engage. Borrower maintains an office at 1800 GREEN HILLS ROAD, SCOTTS VALLEY, CA 95066. Unless Borrower has designated otherwise in writing, the principal office is the office at which Borrower keeps its books and records
including its records concerning the Collateral. Borrower will notify Lender prior to any change in the location of Borrower’s state of organization or any change in Borrower’s name. Borrower shall do all things necessary to preserve and
to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to Borrower and
Borrower’s business activities. 
  
 Assumed Business
Names. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower. Excluding the name of Borrower, the following is a complete list of all assumed business names under which
Borrower does business: 
  

							
	 Borrower

	  	 Assumed Business Name

	  	Filing Location

	  	Date

	 RAINMAKER SYSTEMS, INC.
	  	SEE EXHIBIT “A” ATTACHED HERETO	  	 	  	 

  
 Authorization.
Borrower’s execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under
(1) any provision of (a) Borrower’s articles of incorporation or organization, or bylaws, or (b) any agreement or other instrument binding upon Borrower or (2) any law, governmental regulation, court decree, or order applicable to Borrower or
to Borrower’s properties. 
  
 Financial Information.
Each of Borrower’s financial statements supplied to Lender truly and completely disclosed Borrower’s financial condition as of the date of the statement, and there has been no material adverse change in Borrower’s financial
condition subsequent to the date of the most recent financial statement supplied to Lender. Borrower has no material contingent obligations except as disclosed in such financial statements. 
  
 Legal Effect. This Agreement constitutes, and any instrument or
agreement Borrower is required to give under this Agreement when delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms. 
  
 Properties. Except as contemplated by this Agreement or as previously
disclosed in Borrower’s financial statements or in writing to Lender and as accepted by Lender, and except for property tax liens for taxes not presently due and payable. Borrower owns and has good title to all of Borrower’s properties
free and clear of all Security Interests, and has not executed any security documents or financing statements 

  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 2

  

 
relating to such properties. All of Borrower’s properties are titled in Borrower’s legal name, and Borrower has not used or filed a financing
statement under any other name for at least the last five (5) years. 
  
 Hazardous Substances. Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period of Borrower’s ownership of the Collateral, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2) Borrower has no knowledge of, or reason to believe that there has been (a) any
breach or violation of any Environmental Laws; (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral by any prior owners or occupants of
any of the Collateral; or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use,
generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and any such activity shall be conducted in compliance with all applicable federal, state, and local laws,
regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the
Collateral with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower’s expense and for Lender’s purposes only and shall not be construed to create any responsibility or liability on the part of Lender
to Borrower or to any other person. The representations and warranties contained herein are based on Borrower’s due diligence in investigating the Collateral for hazardous waste and Hazardous Substances. Borrower hereby (1) releases and waives
any future claims against Lender for indemnity or contribution in the event Borrower becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities,
damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened
release of a hazardous waste or substance on the Collateral. The provisions of this section of the Agreement, including the obligation to indemnify, shall survive the payment of the Indebtedness and the termination, expiration or satisfaction of
this Agreement and shall not be affected by Lender’s acquisition of any interest in any of the Collateral, whether by foreclosure or otherwise. 
  
 Litigation and Claims. No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against
Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower’s financial condition or properties, other than litigation, claims, or other events, if any, that have been disclosed to and
acknowledged by Lender in writing. 
  
 Taxes. To the best
of Borrower’s knowledge, all of Borrower’s tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to
be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided. 
  
 Lien Priority. Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements, or
permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of Borrower’s Loan and Note, that would be prior or that may in any way be superior to Lender’s
Security Interests and rights in and to such Collateral. 
  
 Binding Effect. This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their successors, representatives and assigns, and are legally enforceable in
accordance with their respective terms. 
  
 AFFIRMATIVE COVENANTS. Borrower
covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will: 
  
 Notices of Claims and Litigation. Promptly inform Lender in writing of (1) all material adverse changes in Borrower’s financial condition, and
(2) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of
any Guarantor. 
  
 Financial Records. Maintain its books
and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine and audit Borrower’s books and records at all reasonable times. 
  
 Financial Statements. Furnish Lender with the following: 
  
 Interim Statements. As soon as available, but in no event later than
thirty (30) days after the end of each month, Borrower’s balance sheet and profit and loss statement for the period ended, prepared by Borrower. 
  
 Additional Requirements. 
  
 10Q Reports: As soon as available, but in no event later than 45 days after the end of each fiscal quarter, Borrower’s 10Q reports for the period
ended, prepared by a certified public accountant satisfactory to Lender. 
  
 10K Reports: As soon as available, but in no event later than 120 days after the end of each fiscal year, Borrower’s 10K reports for the period ended, prepared by a certified public accountant satisfactory to
Lender. 
  
 Financial Projection: As soon as available, but in no
event later than 30 days after the end of each fiscal year, Borrower’s Annual financial projection reports, prepared by Borrower satisfactory to Lender. 
  

Semi-annual A/R audit. 
  
 Borrower shall execute and deliver to Lender schedules of Accounts in a form and substance satisfactory to the Lender. Thereafter supplemental schedules
shall be delivered 20 days after month-end. 
  
 All financial
reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by Borrower as being true and correct. 
  
 Additional Information. Furnish such additional information and statements, as Lender may request from time to time.

  
 Financial Covenants and Ratios. Comply with the
following covenants and ratios: 
  
 Working Capital
Requirements. Borrower shall comply with the following working capital ratio requirements: 
  
 Quick Ratio. Maintain a Quick Ratio in excess of 0.650 to 1.000. The term “Quick Ratio” means Borrower’s Cash &
Equivalent plus Borrower’s net Trade Receivables divided by Borrower’s total Current Liabilities. This liquidity ratio will be evaluated as of month-end. 
  
 Other Requirements. 
  
 Minimum unrestricted cash and equivalent of $3,000,000.00 at all time held at Bridge Bank. 
  
 Variance not to exceed 15% of net income compared to budget evaluated quarterly. 
  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 3

  

 Except as provided above, all computations made to determine compliance with the requirements
contained in this paragraph shall be made in accordance with generally accepted accounting principles, applied on a consistent basis, and certified by Borrower as being true and correct. 
  
 Insurance. Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may
require with respect to Borrower’s properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates
of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing
that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest for the Loans,
Borrower will provide Lender with such lender’s loss payable or other endorsements as Lender may require. 
  
 Insurance Reports. Furnish to Lender, upon request of Lender, reports on each existing insurance policy showing such information as Lender may
reasonably request, including without limitation the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the properties insured; (5) the then current property values on the basis of which insurance has
been obtained, and the manner of determining those values; and (6) the expiration date of the policy. In addition, upon request of Lender (however not more often than annually), Borrower will have an independent appraiser satisfactory to Lender
determine, as applicable, the actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid by Borrower. 
  
 Other Agreements. Comply with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other
party and notify Lender immediately in writing of any default in connection with any other such agreements. 
  
 Loan Proceeds. Use all Loan proceeds solely for Borrower’s business operations, unless specifically consented to the contrary by Lender in
writing. 
  
 Taxes, Charges and Liens. Pay and discharge
when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the date
on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower’s properties, income, or profits. 
  
 Performance. Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this
Agreement, in the Related Documents, and in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in writing of any default in connection with any agreement. 
  
 Operations. Maintain executive and management personnel with
substantially the same qualifications and experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable and prudent
manner. 
  
 Environmental Studies. Promptly conduct and
complete, at Borrower’s expense, all such investigations, studies, samplings and testings as may be requested by Lender or any governmental authority relative to any substance, or any waste or by-product of any substance defined as toxic or a
hazardous substance under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any property or any facility owned, leased or used by Borrower. 
  
 Compliance with Governmental Requirements. Comply with all laws, ordinances, and regulations, now or hereafter in
effect, of all governmental authorities applicable to the conduct of Borrower’s properties, businesses and operations, and to the use or occupancy of the Collateral, including without limitation, the Americans With Disabilities Act. Borrower
may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so and so long as, in Lender’s sole
opinion, Lender’s interests in the Collateral are not jeopardized. Lender may require Borrower to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender’s interest. 
  
 Inspection. Permit employees or agents of Lender at any reasonable
time to inspect any and all Collateral for the Loan or Loans and Borrower’s other properties and to examine or audit Borrower’s books, accounts, and records and to make copies and memoranda of Borrower’s books, accounts, and records.
If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon request of
Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower’s expense. 
  
 Compliance Certificates. Unless waived in writing by Lender, provide
Lender at least annually, with a certificate executed by Borrower’s chief financial officer, or other officer or person acceptable to Lender, certifying that the representations and warranties set forth in this Agreement are true and correct as
of the date of the certificate and further certifying that, as of the date of the certificate, no Event of Default exists under this Agreement. 
  
 Environmental Compliance and Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a
result of an intentional or unintentional action or omission on Borrower’s part or on the part of any third party, on property owned and/or occupied by Borrower, any environmental activity where damage may result to the environment, unless such
environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after
receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission on Borrower’s part in
connection with any environmental activity whether or not there is damage to the environment and/or other natural resources. 
  
 Additional Assurances. Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments,
financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security Interests. 
  
 LENDER’S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender’s interest in the
Collateral or if Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower’s failure to discharge or pay when due any amounts Borrower is required to discharge or pay under
this Agreement or any Related Documents, Lender on Borrower’s behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
encumbrances and other claims, at any time levied or placed on any Collateral and paying all costs for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at
the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on demand; (B) be added to the
balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note’s maturity. 
  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 4

  

 NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower
shall not, without the prior written consent of Lender: 
  
 Capital Expenditures. Make or contract to make capital expenditures, including leasehold improvements, in any fiscal year in excess of $3,000,000.00 or incur liability for rentals of property (including both real and personal
property) in an amount which, together with capital expenditures, shall in any fiscal year exceed such sum. 
  
 Indebtedness and Liens. (1) Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this
Agreement, create, incur or assume indebtedness for borrowed money, including capital leases, (2) sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber any of Borrower’s assets (except as allowed as
Permitted Liens), or (3) sell with recourse any of Borrower’s accounts, except to Lender. 
  
 Continuity of Operations. (1) Engage in any business activities substantially different than those in which Borrower is presently engaged, (2)
cease operations, liquidate, merge, transfer, acquire or consolidate with any other entity, change its name, dissolve or transfer or sell Collateral out of the ordinary course of business, or (3) pay any dividends on Borrower’s stock (other
than dividends payable in its stock), provided, however that notwithstanding the foregoing, but only so long as no Event of Default has occurred and is continuing or would result from the payment of dividends, if Borrower is a “Subchapter S
Corporation” (as defined in the Internal Revenue Code of 1986, as amended), Borrower may pay cash dividends on its stock to its shareholders from time to time in amounts necessary to enable the shareholders to pay income taxes and make
estimated income tax payments to satisfy their liabilities under federal and state law which arise solely from their status as Shareholders of a Subchapter S Corporation because of their ownership of shares of Borrower’s stock, or purchase or
retire any of Borrower’s outstanding shares or alter or amend Borrower’s capital structure. 
  
 Loans, Acquisitions and Guaranties. (1) Loan, invest in or advance money or assets to any other person, enterprise or entity, (2) purchase, create
or acquire any interest in any other enterprise or entity, or (3) incur any obligation as surety or guarantor other than in the ordinary course of business. 
  
 Agreements. Borrower will not enter into any agreement containing any provisions which would be violated or breached by the performance of
Borrower’s obligations under this Agreement or in connection herewith. 
  
 CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(A) Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes incompetent or becomes
insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse change in Borrower’s financial condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor’s guaranty of the Loan or any other loan with Lender. 
  
 DEFAULT. Each of the following shall constitute an Event of Default under this Agreement:  
  
 Payment Default. Borrower fails to make any payment when due under
the Loan. 
  
 Other Defaults. Borrower fails to comply
with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Borrower. 
  
 Default in Favor of Third Parties.
Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s or any
Grantor’s property or Borrower’s or any Grantor’s ability to repay the Loans or perform their respective obligations under this Agreement or any of the Related Documents. 
  
 False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on
Borrower’s behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 
  
 Insolvency. The dissolution or termination of Borrower’s
existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under
any bankruptcy or insolvency laws by or against Borrower. 
  
 Defective Collateralization. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time
and for any reason. 
  
 Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the Loan. This includes
a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any Guaranty of the Indebtedness. 
  
 Change
in Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. 
  
 Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance
of the Loan is impaired. 
  
 EFFECT OF AN EVENT OF DEFAULT. If any Event of
Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately will terminate (including any
obligation to make further Loan Advances or disbursements), and, at Lender’s option, all Indebtedness immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the
type described in the “Insolvency” subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender’s rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other
remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender’s right to declare a default and to exercise its rights and remedies. 
  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 5

  

 JURY WAIVER. LENDER AND BORROWER HEREBY WAIVE THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM BROUGHT BY EITHER LENDER OR BORROWER AGAINST THE OTHER. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
  
 IF THE JURY WAIVER SET FORTH IS NOT ENFORCEABLE. THEN ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED THEREIN SHALL BE SETTLED BY FINAL AND BINDING ARBITRATION HELD IN SAN JOSE, CALIFORNIA IN ACCORDANCE WITH THE THEN APPLICABLE COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. JUDGMENT UPON ANY AWARD
RESULTING FROM ARBITRATION MAY BE ENTERED INTO AND ENFORCED BY ANY STATE OF FEDERAL COURT HAVING JURISDICTION THEREOF. 
  
 LIQUID ASSETS. The words “Liquid Assets” mean Borrower’s cash on hand plus Borrower’s readily marketable securities. 
  
 WORKING CAPITAL. The words “Working Capital” mean Borrower’s current
assets, less Borrower’s current liabilities. 
  
 DEPOSIT ACCOUNTS.
Borrower shall establish and maintain its primary operating accounts with Lender. 
  
 GOVERNING LAW. This Agreement will be governed by, construed and enforced in accordance with the laws of the State of California. This Agreement has been accepted by Lender in the State of California. 
  
 MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this
Agreement: 
  
 Amendments. This Agreement, together with
any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the
party or parties sought to be charged or bound by the alteration or amendment. 
  
 Attorneys’ Fees; Expenses. Borrower agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s attorneys’ fees and Lender’s legal expenses, incurred in connection
with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s attorneys’ fees and legal
expenses whether or not there is a lawsuit, including attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection
services. Borrower also shall pay all court costs and such additional fees as may be directed by the court. 
  
 Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions
of this Agreement. 
  
 Consent to Loan Participation.
Borrower agrees and consents to Lender’s sale or transfer, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any
limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may
have with respect to such matters. Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such
participation interests will be considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests. Borrower further
waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower’s obligation
under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or
defenses that Borrower may have against Lender. 
  
 Choice of
Venue. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Santa Clara County, State of California. 
  
 No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is
given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or
constitute a waiver of Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and
any Grantor, shall constitute a waiver of any of Lender’s rights or of any of Borrower’s or any Grantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such
consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. 
  
 Notices. Any notice required to be given under this Agreement shall
be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the
United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice
to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower’s current address. Unless otherwise provided or
required by law, if there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers. 
  
 Severability. If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If
the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality,
validity or enforceability of any other provision of this Agreement. 
  
 Subsidiaries and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation any representation, warranty or covenant, the word “Borrower” as used
in this Agreement shall include all of Borrower’s subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender to make any Loan or other financial accommodation
to any of Borrower’s subsidiaries or affiliates. 
  
 Successors and Assigns. All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall bind Borrower’s successors and assigns and shall inure to the benefit of Lender and its
successors and assigns. Borrower shall not, however, have the right to assign Borrower’s rights under this Agreement or any interest therein, without the prior written consent of Lender. 
  
 Survival of Representations and Warranties. Borrower understands and
agrees that in making the Loan, Lender is relying on all representations, warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by 

  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 6

  

 
Borrower to Lender under this Agreement or the Related Documents Borrower further agrees that regardless of any investigation made by Lender, all such
representations, warranties and covenants will survive the making of the Loan and delivery to Lender of the Related Documents, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower’s Indebtedness
shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur. 
  
 Time is of the Essence. Time is of the essence in the performance of this Agreement. 
  
 DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless
specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as
the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code Accounting words and terms not otherwise defined in this Agreement shall have the
meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date of this Agreement: 
  
 Advance. The word “Advance” means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower’s behalf on a line of
credit or multiple advance basis under the terms and conditions of this Agreement. 
  
 Agreement. The word “Agreement” means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to
this Business Loan Agreement from time to time. 
  
 Borrower.
The word “Borrower” means RAINMAKER SYSTEMS, INC. and includes all co-signers and co-makers signing the Note. 
  
 Cash & Equivalent. The words “Cash & Equivalent” mean all of Borrower’s cash, marketable securities, and other near-cash
items, excluding sinking funds. 
  
 Collateral. The word
“Collateral” means all property and assets granted as collateral security for a Loan, whether real or personal property, whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a
security interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor’s lien, equipment trust, conditional sale, trust receipt, lien, charge, lien
or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise. 
  
 Environmental Laws. The words “Environmental Laws” mean any and all state, federal and local statutes,
regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.
(“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the California Health and Safety Code. Section 25100, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. 
  
 Event of Default. The words “Event of Default” mean any of
the events of default set forth in this Agreement in the default section of this Agreement. 
  
 GAAP. The word “GAAP” means generally accepted accounting principles. 
  
 Grantor. The word “Grantor” means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan,
including without limitation all Borrowers granting such a Security Interest. 
  
 Guarantor. The word “Guarantor” means any guarantor, surety, or accommodation party of any or all of the Loan. 
  

Guaranty. The word “Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of
the Note. 
  
 Hazardous Substances. The words
“Hazardous Substances” mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly
used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances” are used in their very broadest sense and include without limitation any and all hazardous or toxic substances,
materials or waste as defined by or listed under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. 
  
 Indebtedness. The word “Indebtedness” means the
indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any of the Related Documents.

  
 Lender. The word “Lender” means BRIDGE BANK,
National Association, its successors and assigns. 
  
 Loan.
The word “Loan” means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing, and however evidenced, including without limitation those loans and financial accommodations described
herein or described on any exhibit or schedule attached to this Agreement from time to time. 
  
 Note. The word “Note” means the Note executed by RAINMAKER SYSTEMS, INC. in the principal amount of $1,500,000.00 dated June 14, 2005, together with all renewals of, extensions of, modifications of,
refinancings of, consolidations of, and substitutions for the note or credit agreement. 
  
 Permitted Liens. The words “Permitted Liens” mean (1) liens and security interests securing Indebtedness owed by Borrower to Lender; (2) liens for taxes, assessments, or similar charges either not yet
due or being contested in good faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or other like liens arising in the ordinary course of business and securing obligations which are not yet delinquent; (4) purchase money liens or
purchase money security interests upon or in any property acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permitted to be incurred under the paragraph of this
Agreement titled “Indebtedness and Liens”; (5) liens and security interests which, as of the date of this Agreement, have been disclosed to and approved by the Lender in writing; and (6) those liens and security interests which in the
aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of Borrower’s assets. 
  
 Related Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Loan. 
  
 Security Agreement. The words “Security Agreement” mean and
include without limitation any agreements, promises, covenants, arrangements, understandings or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating a Security Interest. 
  

					
	 	  	BUSINESS LOAN AGREEMENT	  	 
	Loan No: 258905	  	(Continued)	  	Page 7

  

 Security Interest. The words “Security Interest” mean, without limitation, any and
all types of collateral security, present and future, whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust,
factor’s lien, equipment trust, conditional sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether created by law, contract, or
otherwise. 
  
 Trade Receivables. The words “Trade
Receivables” mean all of Borrower’s accounts from trade, net of allowance for doubtful accounts. 
  
 BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED JUNE 14, 2005. 
  

			
	BORROWER:
	
	RAINMAKER/SYSTEMS, INC.
		
	By:	 	 /s/ Steve Valenzuela

	 	 	Authorized Signer for RAINMAKER SYSTEMS, INC.
	
	LENDER:
	
	BRIDGE BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/

	 	 	Authorized Signer

  

  
 EXHIBIT “A”

  

							
	 Business Name

	  	FBN
Number

	  	 Registrant

	  	File Date

	IBM SERVICE SALES	  	2004-
0001714	  	 RAINMAKER SERVICE
CONTRACT SALES, INC.
	  	8/6/2004
				
	DELL SERVICE SALES	  	2004-
0000424	  	 RAINMAKER SERVICE
SALES, INC.
	  	2/23/2004
				
	 NORTEL NETWORKS ENTERPRISE
 SUPPORT
SERVICES
	  	2004-
0000418	  	 RAINMAKER SERVICE
SALES, INC.
	  	2/20/2004
				
	SONY PRO SERVICES	  	2004-
0001271	  	 RAINMAKER SERVICES
SALES, INC.
	  	6/2/2004
				
	 NORTEL NETWORKS ENTERPRISE
 SUPPORT
SERVICES
	  	2001-
000141	  	 RAINMAKER SERVICES, INC.
	  	7/19/2001
				
	SYBASE IAD SUBSCRIPTION SERVICES	  	2004-
0000428	  	 RAINMAKER SERVICES, INC.
	  	2/23/2004
				
	HEWLETT-PACKARD EXPRESS SERVICES	  	2004-
0000425	  	 RAINMAKER SERVICES, INC.
	  	2/23/2004
				
	CONTRACT RENEWAL SERVICES	  	2004-
0000426	  	 RAINMAKER SERVICES, INC.
	  	2/23/2004
				
	PUMA TECHNOLOGY SERVICES	  	1999-
0001658	  	 RAINMAKER SYSTEM, INC.
	  	7/29/1999
				
	BORLAND SUBSCRIPTION SERVICES	  	1999-
0001130	  	 RAINMAKER SYSTEMS, INC.
	  	5/13/1999
				
	EXTENDED SERVICE SALES FOR IBM	  	2003-
0001451	  	 RAINMAKER SYSTEMS, INC.
	  	7/3/2003
				
	DELL SERVICE SALES	  	2002-
0000462	  	 RAINMAKER SYSTEMS, INC.
	  	2/26/2002
				
	SUN AUTHORIZED SOFTWARE SUBSCRIPTIONS	  	1998-
0002176	  	 RAINMAKER SYSTEMS, INC.
	  	11/23/1998
				
	NOVELL SUBSCRIPTION SERVICES	  	1999-
0000127	  	 RAINMAKER SYSTEMS, INC.
	  	1/14/1999
				
	INSTEP SOLUTIONS	  	1999-
0000381	  	 RAINMAKER SYSTEMS, INC.
	  	2/11/1999
				
	SYBASE IAD SUBSCRIPTION SERVICES	  	1999-
0000706	  	 RAINMAKER SYSTEMS, INC.
	  	3/23/1999
				
	BORLAND SUPPORT SERVICES	  	1999-
0001015	  	 RAINMAKER SYSTEMS, INC.
	  	4/28/1999
				
	NEXT STEP SOLUTIONS	  	1999-
0001289	  	 RAINMAKER SYSTEMS, INC.
	  	6/4/1999

  

 EXHIBIT “A” 
  

							
	ROGUE WAVE SOFTWARE SERVICES	  	2000-
0000371	  	 RAINMAKER SYSTEMS, INC.
	  	2/16/2000
				
	MICROGRAFX SUPPORT SERVICES	  	2000-
0000774	  	 RAINMAKER SYSTEMS, INC.
	  	4/7/2000
				
	PTC GLOBAL SERVICES EDUCATION	  	2000-
0000885	  	 RAINMAKER SYSTEMS, INC.
	  	4/21/2000
				
	RAINMAKER SERVICES, INC.	  	2004-
0000417	  	 RAINMAKER SYSTEMS, INC.
	  	2/20/2004
				
	RAINMAKER SERVICE SALES, INC.	  	2004-
0000417	  	 RAINMAKER SYSTEMS, INC.
	  	2/20/2004
				
	HEWLETT-PACKARD EXPRESS SERVICES	  	2000-
0002083	  	 RAINMAKER SYSTEMS, INC.
	  	10/13/2000
				
	3COM SERVICES	  	2000-
0002167	  	 RAINMAKER SYSTEMS, INC.
	  	10/27/2000
				
	SORTWARE SUBSCRIPTIONS	  	2001-
0000803	  	 RAINMAKER SYSTEMS, INC.
	  	4/20/2001
				
	CALDERA SERVICES SALES	  	2001-
0001211	  	 RAINMAKER SYSTEMS, INC.
	  	6/21/2001
				
	SOFTWARE SUBSCRIPTIONS	  	2001-
0001212	  	 RAINMAKER SYSTEMS, INC.
	  	6/21/2001
				
	TRIOS SUPPORT SALES	  	2002-
0002486	  	 RAINMAKER SYSTEMS, INC.
	  	12/17/2002
				
	AUTODESK SUBSCRIPTION SERVICES	  	1998-
0001701	  	 RAINMAKER SYSTEMS, INC.
	  	9/10/1998
				
	CONTRACT RENEWAL SERVICES	  	2003-
0000163	  	 RAINMAKER SYSTEMS, INC.
	  	1/24/2003
				
	SYMANTEC SUPPORT SOLUTIONS	  	1999-
0000277	  	 RAINMAKER SYSTEMS, INC.
	  	2/2/1999
				
	INPRISE SUBSCRIPTION SERVICE	  	1999-
0001846	  	 RAINMAKER SYSTEMS, INC.
	  	8/27/1999
				
	SCO SERVICES SALES	  	1999-
0001853	  	 RAINMAKER SYSTEMS, INC.
	  	8/27/1999
				
	PTC EDUCATIONAL SERVICES	  	1999-
0002294	  	 RAINMAKER SYSTEMS, INC.
	  	11/3/1999
				
	QUICKBOOKS SUPPORT NETWORK PREMIER PLAN RENEWAL SERVICES	  	1999-
0002296	  	 RAINMAKER SYSTEMS, INC.
	  	11/3/1999
				
	SYBASE MEC SUBSCRIPTION SERVICES	  	2000-
0000570	  	 RAINMAKER SYSTEMS, INC.
	  	3/10/2000
				
	SYBASE EDUCATIONAL SERVICES	  	2000-
0000726	  	 RAINMAKER SYSTEMS, INC.
	  	3/31/2000
				
	SYBASE EDUCATION SERVICES	  	2000-
0001211	  	 RAINMAKER SYSTEMS, INC.
	  	6/6/2000
				
	NOVELL PARTNERNET SERVICES	  	2001-
0000393	  	 RAINMAKER SYSTEMS, INC.
	  	2/23/2001
				
	NOVELL VLA SERVICES	  	2001-
0000713	  	 RAINMAKER SYSTEMS, INC.
	  	4/6/2001

  
 End Of List 

 

 DISBURSEMENT REQUEST AND AUTHORIZATION 
  

																
	Principal

	  	Loan Date

	  	Maturity

	  	Loan No

	  	Call / Coll

	  	Account

	  	Officer

	  	Initials

	$	1,500,000.00	  	06-14-2005	  	06-14-2008	  	258905	  	410	  	0000002589-01	  	310	  	 

  
 References in the
shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations. 
  

							
	Borrower:	  	 RAINMAKER SYSTEMS, INC.
 1800 GREEN HILLS
ROAD
 SCOTTS VALLEY, CA 95066
	  	Lender:	  	 BRIDGE BANK, National Association
 55 Almaden
Boulevard
 Suite 100
 San Jose, CA
95113

  
 LOAN TYPE. This is a Variable
Rate Nondisclosable Loan to a Corporation for $1,500,000.00 due on June 14, 2008. The reference rate (Prime Rate as published in the Wall Street Journal, currently 6.000%) is added to the margin of 1.000%, resulting in an initial rate of 7.000.

  
 PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is
for: 
  
  ̈ Personal, Family, or Household Purposes or Personal Investment. 
  
 x Business (Including Real Estate Investment). 
  
 SPECIFIC PURPOSE. The specific purpose of this loan is: PURCHASE AND IMPLEMENTATION OF
RAINMAKER’S NEW CLIENT MANAGEMENT SYSTEM. 
  
 DISBURSEMENT INSTRUCTIONS.
Borrower understands that no loan proceeds will be disbursed until all of Lender’s conditions for making the loan have been satisfied. Please disburse the loan proceeds of $1,500,000.00 as follows: 
  

				
	 Amount paid to Borrower directly:
	  	 	 
	         $1,500,000.00 Deposited to Account # ______________
	  	$	1,500,000.00
	 	  	
	

	Note Principal:	  	$	1,500,000.00

  
 CHARGES PAID IN CASH. Borrower
has paid or will pay in cash as agreed the following charges: 
  

				
	 Prepaid Finance Charges Paid in Cash:
	  	 	 
	         $15,000.00 LOAN FEE
	  	$	15,000.00
	 	  	
	

	 Total Charges Paid in Cash:
	  	$	15,000.00

  
 AUTOMATIC PAYMENTS. Borrower
hereby authorizes Lender automatically to deduct from Borrower’s account, numbered 101032936, the amount of any loan payment. If the funds in the account are insufficient to cover any payment, Lender shall not be obligated to advance funds to
cover the payment. At any time and for any reason, Borrower or Lender may voluntarily terminate Automatic Payments. 
  
 FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE
HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED JUNE 14, 2005. 
  

			
	BORROWER:
	
	RAINMAKER SYSTEMS, INC.
		
	By:	 	 /s/ Steve Valenzuela

	 	 	 Authorized Signer for RAINMAKER SYSTEMS, INC.

  

 PROMISSORY NOTE 
  

																
	Principal

	  	Loan Date

	  	Maturity

	  	Loan No

	  	Call / Coll

	  	Account

	  	Officer

	  	Initials

	$	1,500,000.00	  	06-14-2005	  	06-14-2008	  	258905	  	410	  	0000002589-01	  	310	  	 

  
 References in the
shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.  
  

							
	Borrower:	  	 RAINMAKER SYSTEMS, INC.
 1800 GREEN HILLS
ROAD
 SCOTTS VALLEY, CA 95066
	  	Lender:	  	 BRIDGE BANK, National Association
 55 Almaden
Boulevard
 Suite 100
 San Jose, CA
95113

  

							
	Principal Amount:	  	$1,500,000.00	  	Initial Rate: 7.000%	  	Date of Note: June 14, 2005

  
 PROMISE TO PAY. RAINMAKER SYSTEMS,
INC. (“Borrower”) promises to pay to BRIDGE BANK, National Association (‘Lender’), or order, in lawful money of the United States of America, the principal amount of One Million Five Hundred Thousand & 00/100 Dollars
($1,500,000.00), together with interest on the unpaid principal balance from June 14, 2005, until paid in full. 
  
 PAYMENT. Subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in 35 principal payments of $41,666.66 each and one final
principal and interest payment of $41,918.06. Borrower’s first principal payment is due July 14, 2005, and all subsequent principal payments are due on the same day of each month after that. In addition, Borrower will pay regular monthly
payments of all accrued unpaid interest due as of each payment date, beginning July 14, 2005, with all subsequent interest payments to be due on the same day of each month after that. Borrower’s final payment due June 14, 2008, will be for all
principal and all accrued interest not yet paid. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late
charges. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of
days the principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing. 
  
 VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent
index which is the Prime Rate as published in the Wall Street Journal (the “Index”). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may
designate a substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans
based on other rates as well. The Index currently is 6.000%. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 7.000%.
NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. 
  
 PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon
early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer
payments. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights under this
Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes “payment in
full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: BRIDGE BANK, National Association, 55 Almaden Blvd San Jose, CA 95113. 
  
 LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000%
of the unpaid portion of the regularly scheduled payment or $5.00, whichever is greater. 
  
 INTEREST AFTER DEFAULT. Upon default, the variable interest rate on this Note shall immediately increase to 6.000 percentage points over the Index, if permitted under applicable law. 
  
 DEFAULT. Each of the following shall constitute an event of default (“Event of
Default”) under this Note:  
  
 Payment Default.
Borrower fails to make any payment when due under this Note. 
  
 Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or
condition contained in any other agreement between Lender and Borrower. 
  
 Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor
or person that may materially affect any of Borrower’s property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents. 
  
 False Statements. Any warranty, representation or statement made or
furnished to Lender by Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

  
 Insolvency. The dissolution or termination of
Borrower’s existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower. 
  
 Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any
governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by
Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety
bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or
accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this
Note. 
  
 Change in Ownership. Any change in ownership of
twenty-five percent (25%) or more of the common stock of Borrower. 
  

					
	 	  	PROMISSORY NOTE	  	 
	Loan No: 258905	  	(Continued)	  	Page 2

  

 Adverse Change. A material adverse change occurs in Borrower’s financial condition, or
Lender believes the prospect of payment or performance of this Note is impaired. 
  
 LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. 
  
 ATTORNEYS FEES; EXPENSES. Lender may hire or pay someone else to help collect this
Note if Borrower does not pay, Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is a lawsuit, including
attorneys’ fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. Borrower also will pay any court costs, in addition to all other sums provided by law. 
  
 CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to
submit to the jurisdiction of the courts of Santa Clara County, State of California. 
  
 DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored. 
  
 COLLATERAL. Borrower acknowledges this Note is secured by Collateral described in a
Commercial Security Agreement dated April 29, 2004 and February 2, 2005 
  
 JURY WAIVER. LENDER AND BORROWER HEREBY WAIVE THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER LENDER OR BORROWER AGAINST THE OTHER. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. 
  
 IF THE JURY WAIVER SET FORTH IS NOT
ENFORCEABLE, THEN ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN SHALL BE SETTLED BY FINAL AND BINDING ARBITRATION HELD IN SAN JOSE, CALIFORNIA IN
ACCORDANCE WITH THE THEN APPLICABLE COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. JUDGMENT UPON ANY AWARD RESULTING FROM ARBITRATION MAY BE ENTERED INTO AND ENFORCED BY ANY STATE OF FEDERAL COURT HAVING JURISDICTION THEREOF.

  
 GOVERNING LAW. This Note will be governed by, construed and
enforced in accordance with the laws of the State of California. This Note has been accepted by Lender in the State of California. 
  
 PAYMENT DEFERRAL. Notwithstanding anything contained herein to the contrary, in the event funds are first advanced under this Note after the date specified for the
first payment of interest and/or principal (“First Monthly Payment”) specified in the section of this Note entitled “Payment”, or within ten days prior to such date, then Borrower shall make the first regular monthly payment on
the same day of the calendar month immediately following the date on which funds are first advanced under this Note and the Maturity Date shall be extended for a period that is equal to the time difference between the date specified in the Payment
section of this Note for the First Monthly Payment and the date on which the First Monthly Payment is due as a result of the application of this Section. 
  
 RIGHT TO SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff
would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender’s option, to administratively freeze all
such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph. 
  
 SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its
successors and assigns. 
  
 GENERAL PROVISIONS. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand
for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from
liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the
collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the
modification is made. The obligations under this Note are joint and several. 
  
 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. 
  
 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. 

 

			
	BORROWER:
	
	RAINMAKER SYSTEMS, INC.
		
	By:	 	 /s/ Steve Valenzuela

	 	 	Authorized Signer for RAINMAKER SYSTEMS, INC.

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