Document:

Exhibit 10.4

 

HOTEL MANAGEMENT AGREEMENT

 

between

 

PHR TCI OPCO SUB, LLC

as Owner

 

and

 

PHR TRAVERSE CITY HOTEL MANAGER, LLC

as Manager

 

FOR

 

Hotel Indigo

263 W Grandview Pkwy, Traverse City, MI 49684

 

     

     

    

 

HOTEL MANAGEMENT AGREEMENT

 

This Hotel Management
Agreement (the "Agreement") made as of this 15th day of August 2018 (the “Effective Date”)
between PHR TCI OPCO SUB, LLC, a Delaware limited liability company (the "Owner")
and PHR TRAVERSE CITY HOTEL MANAGER, LLC, a Michigan limited liability company, as Manager ("Manager"),

 

RECITALS:

 

WHEREAS, PHR TCI, LLC,
a Delaware limited liability company (“Fee Owner”) is the owner of the Premises (as defined below), and (ii)
all Building and Appurtenances (as defined below), including, without limitation an existing 107-room hotel which is branded as
a Hotel Indigo located at 263 W Grandview Parkway, Traverse City, Michigan 49684 (as more particularly defined in the Article I
below, the “Hotel”).

 

WHEREAS, Owner holds a
leasehold interest in the Hotel pursuant to the Lease (as defined below).

 

WHEREAS, Manager is experienced
in the management and operation of hotels.

 

WHEREAS, Owner desires
to retain Manager to manage and operate the Hotel. Manager is willing to perform such services for the account of Owner on the
terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the parties hereto agree
as follows:

 

ARTICLE 1

DEFINITIONS, TERMS AND REFERENCES

 

1.1         Definitions.
In this Agreement and any Exhibits, the following terms shall have the following meanings:

 

"AAA”
shall have the meaning set forth in Article 30.

 

"Accounting Period"
shall mean each calendar month (whether of 28, 29, 30 or 31 days) during each Fiscal Year.

 

"Affiliate"
shall mean any person or entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or
is under common control with another person or entity. The term “control” (and correlative terms) shall mean
the power, whether by contract, equity ownership or otherwise, to direct the policies or management of a person or entity. Without
limiting the foregoing, an "Affiliate" also includes any partner or a partnership of any party to this Agreement,
any member or membership parties thereto and any corporation, partnership, individual or trust related to or controlling or controlled
by such partnership, individual or trust related to or controlling or controlled by such partnership party or its partners or such
membership party or its members. A natural person is related to another natural person if he or she is a spouse, parent, or lineal
descendant of the other person.

 

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"Allocated Services"
shall mean certain support services that Manager obtains from a third party and provides on a central or regional basis to the
hotels that it manages because such support services can be provided on a more efficient, effective and economical basis to each
individual Manager managed hotel if the expenses of such support services are shared by other Manager managed hotels. Such support
services include services in the areas of sales and marketing, purchasing, food and beverage, human resources, insurance, technology,
training and payroll (each such service, an "Allocated Service"; collectively, the "Allocated Services").
Owner and Manager agree that Manager shall provide Allocated Services to the Hotel and that the Hotel's portion of the cost thereof
shall constitute a Gross Operating Expense so long as (i) the costs of the Allocated Services are allocated in a commercially reasonable
fashion on a proportionate basis among the Hotel and the other Manager managed hotels benefiting therefrom; and (ii) the Allocated
Services shall not include services that do not benefit the Hotel. The parties agree that Manager (or its Affiliates) and the Hotel
shall be returned a proportionate share of any rebates received by Manager with respect to any of the Allocated Services on a proportionate
basis as compared to other hotels managed by Manager or its Affiliates.

 

"Annual Operating
Budget" shall mean an annual operating projection for the Hotel prepared and submitted by Manager to Owner and approved
by Owner for each Fiscal Year pursuant to Section 4.4(a).

 

"Annual Plan"
shall mean an annual business plan for the operation of the Hotel prepared by the Manager and approved by the Owner, which shall
include the Annual Operating Budget, the Approved Capital Budget and any other material
included therein by Manager as provided in Section 4.4.

 

"Approved Capital
Budget" shall have the meaning set forth in Section 4.4(b).

 

"Base Fee"
shall have the meaning set forth in Article 11.

 

"Building and Appurtenances"
shall mean (i) the hotel building located on the Premises, and (ii) landscaping and other related facilities, together with all
installations located at, or used in connection with the operation of the building for hotel purposes including, without limitation,
any swimming pools, health club and recreational facilities, walkways, parking facilities, heating, lighting, sanitation equipment,
air conditioning, laundry facilities, refrigeration, built-in kitchen equipment, and elevators.

 

"Capital Budget"
shall mean Manager's proposed estimate of FF&E and Capital Improvements submitted to Owner each Fiscal Year pursuant to Section
4.4.

 

"Capital Improvements"
shall have the meaning set forth in Section 8.2 hereof.

 

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“Centralized Services”
means those services described on Schedule IV attached hereto, which reflects those Centralized Services provided by the
Manager and which may be amended from time to time in writing by the Owner and Manager or as set forth in an approved Annual Plan.

 

“Commencement
Date” shall mean the date hereof.

 

"Competitive Set"
shall mean the properties listed on Exhibit C attached hereto and any revisions to such
list agreed upon by Owner and Manager from time to time.

 

"CPI"
shall mean the Consumer Price Index for All Urban Consumers, United States City Average, All Items (1982-84=100),
issued by the Bureau of Labor Statistics of the United States Department of Labor.         

 

“Default Rate”
shall mean the lesser of (i) the Prime Rate plus four percent (4%) per annum or (ii) the highest lawful rate permitted by applicable
Legal Requirements from time to time.

 

“Earnings Before
Interest, Taxes, Depreciation and Amortization” or “EBITDA” shall Total Operating Revenues less Gross
Operating Expenses, excluding taxes of any kind (including betterments and assessments), interest, depreciation, amortization,
reserves, insurance, any debt service payments and costs of the Hotel (including without limitation, debt service, fees to lenders
and servicers, penalties, late fees, amortization any equipment lease payments and costs) and property, casualty and hazard insurance.

 

"Effective Date"
shall mean the date of this Agreement as set forth on page 1 hereof.

 

"ERISA”
shall have the meaning set forth in Section 4.2(a).

 

"Event of Default"
shall mean any of the events described in Article 16, provided that any condition contained therein for the giving of notice or
the lapse of time, or both, has been satisfied.

 

“Executive Personnel”
shall mean the general manager, director of sales and the controller of the Hotel.

 

“Fee Owner”
shall have the meaning set forth in the introductory section of this Agreement.

 

"Fiscal Year"
shall mean the fiscal year that ends on the last day of each calendar year. The first Fiscal Year shall be the period commencing
on the Commencement Date and ending on December 31st of the same calendar year in which the Commencement Date occurs.
The last Fiscal Year shall be the period commencing on January 1st of the same calendar year in which the last day of the Term
of this Agreement occurs and ending on such last day of the Term. The words "full Fiscal Year" shall mean any Fiscal
Year containing not fewer than 365 days. A partial Fiscal Year after the end of the last full Fiscal Year and ending with the expiration
or earlier termination of the Term shall constitute a separate Fiscal Year.

 

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"Furniture, Fixtures
and Equipment" or "FF&E" shall mean all furniture, furnishings, wall coverings, fixtures,
carpeting, rugs, fine arts, paintings, statuary, decorations, and hotel equipment and systems (including the costs associated with
the purchase, installation and delivery thereof) located at, or used in connection with, the operation of the Building and Appurtenances
as a hotel, including without limitation, major equipment and systems required for the operation of kitchens, bars, laundry and
dry cleaning facilities, office equipment, dining room wagons, major material handling equipment, major cleaning and engineering
equipment, telephone systems, computerized accounting and vehicles (including the costs associated with the purchase, installation
and delivery thereof) together with all replacements therefor and additions thereto, but in all events excluding Operating Equipment
and Supplies.

 

"GAAP”
shall have the meaning set forth in Section 4.2.

 

"Gross Operating
Expenses" shall have the meaning contained on Schedule II attached hereto. .

 

"Hotel"
shall mean (a) the Building and Appurtenances and the Premises owned by Owner and (b) all FF&E, all Operating Equipment and
Supplies, and all Inventories owned by Owner located at the address set forth on Schedule I.

 

"hotel"
shall mean any hotel (other than the Hotel), inn, motor inn, motor hotel, motel, suite hotel, conference center, meeting center
or any other facility providing either or both of short-term lodging and meeting arrangements.

 

"Hotel Employees"
shall have the meaning set forth in Section 4.2.

 

"Inventories"
shall mean inventories of supplies, in accordance with the Uniform System of Accounts, such as soap, toilet paper, stationery,
writing pens, food and beverage inventories, paper products, menus, expendable office and kitchen supplies, fuel, supplies and
items similar to any of the foregoing.

 

“Lease”
means that certain Hotel Lease entered into by and between Owner, as tenant, and Fee Owner, as landlord, on or about the date hereof,
as the same may be amended from time to time.

 

"Legal Proceedings"
shall mean all complaints, counterclaims or cross-claims filed in a court of competent jurisdiction, any notice of any claim of
violation of any legal requirement by any governmental agency or authority, or any summons or other legal process, in each instance
by or against the Hotel or by or against Owner, or Manager in connection with the Hotel.

 

"Legal Requirements"
shall mean (a) all laws, ordinances, statutes, regulations and orders relating to the Hotel and the Premises now or hereafter in
effect, including but not limited to, environmental laws and (b) all terms, conditions, requirements and provisions of (i) all
Permits; (ii) all leases; and (iii) all liens, restrictive covenants and encumbrances affecting the Hotel or the Premises or any
part thereof.

 

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"Liabilities"
shall have the meaning set forth in Section 24.1.

 

"License Agreement"
shall mean the franchise or license agreement from time to time entered into by Owner with respect to the branding and operation
of the Hotel. For the purposes of this definition, the following terms used in said section shall have the following meaning:

 

"Licensor"
shall mean the franchisor or licensor under the franchise or license agreement from time to time entered into by Owner with respect
to the branding and operation of the Hotel.

 

"Licensee"
shall mean Owner; and the "Manual" shall mean the Licensor's operating manual and other manuals for Licensor described
in its standard license agreement.

 

"Major Capital
Expenditures" shall have the meaning set forth in Section 4.4.

 

"Major Renovations"
shall mean a contemporaneously made set or series of alterations, additions and/or improvements
to the Hotel with a total cost in excess of $100,000 (or a lesser amount in the event a project with a total cost less than $100,000
requires material design and purchasing and installation services related thereto and/or results in a material alteration in the
design of the Hotel), but shall not include any Repairs or Maintenance with respect to Capital Improvements or FF&E.

 

"Management Fee"
shall mean the Base Fee and other fees payable or due hereunder, all as set forth in Article
11 hereof and Schedule I attached hereto.

 

"Manager"
shall have the meaning set forth in the introductory section of this Agreement.

 

"Manager’s
Liability Cap" shall have the meaning set forth in Article 33.

 

"MEPPA”
shall have the meaning set forth in Section 4.2(a).

 

"Minimum Cost"
shall have the meaning set forth in Section 15.1.

 

"Mortgage"
shall mean, collectively, each of the documents evidencing or securing current or future indebtedness on the Hotel in favor of
a third party lender or financial institution or any successor thereto or replacement thereof (the "Lender").

 

"OFAC”
shall have the meaning set forth in Section 26.18.

 

“Open for Business”
shall mean the period of time during which all or substantially all of the Hotel is open for business to the general public.

 

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"Operating Account"
shall mean a special account or accounts, bearing the name of the Hotel, established by Owner in a federally insured bank or trust
company selected by Owner.

 

"Operating Equipment
and Supplies" shall mean supply items which constitute "Operating Equipment and Supplies" under the Uniform
System of Accounts, all miscellaneous serving equipment, linen, towels, uniforms, silver, glassware, china and similar items.

 

“Operating Standards”
shall mean the operation of the Hotel in a manner consistent with (i) the requirements under the License Agreement; (ii) the
condition of the Hotel as of the Commencement Date (or, following completion of a Renovation, the condition of the Hotel as of
the completion of the Renovation), normal wear and tear excepted; (iii) the condition and level of the operation of hotels of comparable
class and standing to the Hotel in its market area; (iv) then current market conditions regarding rental rates
and lease terms and conditions with respect to Hotels of comparable class and standing to the Hotel (including
but not limited to the Competitive Set); (v) the requirements under the Lease; and (vi) then current business and management
practices (including those related to compliance with Legal Requirements) applicable to the management, operation, leasing, maintenance
and repair of a hotel comparable in size, character and location to the Hotel.

 

"Owner"
shall have the meaning set forth in the introductory section of this Agreement.

 

"Owner’s
Annual Plan Objections” shall have the meaning set forth in Section 4.4.

 

"Performance Standard"
shall have the meaning set forth in Section 18.2.

 

"Permits"
shall mean all governmental or quasi-governmental licenses and permits, including but not limited to any certificate of occupancy,
business licenses and liquor licenses.

 

"Permitted Investments"
shall mean (subject to modification, addition or deletion from time to time at the option of Owner by written request to Manager)
all of which shall be in the name of Owner:

 

(a)           interest-bearing
deposit accounts (which may be represented by certificates of deposit, time deposit open account agreements or other deposit instruments)
in commercial banks having a combined capital and surplus of not less than $50,000,000; or

 

(b)          all
other investments approved by Owner.

 

"Premises"
shall mean the land on which the Hotel is located, which land is described in Exhibit A attached hereto.

 

“Prime Rate”
shall mean the rate per annum announced, designated or published from time to time by JP Morgan Chase Bank N.A. as its “prime”,
 “reference” or “base” rate of interest for commercial loans.

 

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"Privileged Information"
shall have the meaning set forth in Section 26.19.

 

"Prohibited Persons”
shall have the meaning set forth in Section 26.18.

 

"Proposed Capital
Expenditures Budget" shall have the meaning set forth in Section 4.4.

 

"Proposed FF&
E Budget” shall have the meaning set forth in Section 4.4.

 

"Proposed Operating
Budget” shall have the meaning set forth in Section 4.4.

 

“Reimbursable
Expenses” shall mean all travel, lodging, entertainment, telephone, facsimile, postage, courier, delivery, employee training
and other expenses incurred by Manager in accordance with the standard policies for expenses incurred by Manager on its own behalf
and which are directly related to its performance of this Agreement, but in no event will Reimbursable Expenses include or duplicate
expenses for Manager’s overhead, Allocated Services or Centralized Services.

 

“Renovation”
shall mean a renovation of any portion of the Hotel during the Term, pursuant to a plan proposed by Manager and approved by Owner
to, among other things, bring the Hotel to a physical condition that satisfies the standards under the License Agreement and to
operate in a manner consistent with the assumptions for the then-current Annual Operating Budget and then-current Annual Plan.
A Renovation shall be carried out at the expense of Owner pursuant to plans and specifications and a schedule prepared by Manager
and approved by Owner and, to the extent required under the License Agreement, by Licensor.

 

"Repairs and Maintenance"
shall have the meaning as defined in Section 8.1.

 

"Reserve"
shall mean an account maintained as a Permitted Investment for Reserve for replacement of FF&E and/or Capital Improvements,
as described in Section 7.1 and funded as provided in Section 7.2.

 

“Schedule I”
shall mean Schedule I attached to and made a part of this Agreement.

 

“Schedule II”
shall mean Schedule II attached to and made a part of this Agreement.

 

“Schedule III”
shall mean Schedule III attached to and made a part of this Agreement.

 

“Schedule IV”
shall mean Schedule IV attached to and made a part of this Agreement.

 

"State"
shall mean the State in which the Hotel is located or other as designated.

 

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"Term"
shall mean the term of this Agreement, which shall be an initial five (5) year term commencing on the Commencement Date and expiring
on the fifth (5th) anniversary of the Commencement Date, as such Term may be extended or shortened as expressly set
forth in this Agreement or as otherwise agreed to by Owner and Manager.

 

“Third Party Purchaser”
shall have the meaning set forth in Section 18.1.

 

"Total Operating
Revenues" has the meaning set forth on Schedule III attached hereto.

 

"Unavoidable Interruptions"
shall mean interruptions in the operation of or access to the Hotel or any of its essential services on account of an interruption
in any one or more of the utility services described in Section 13.2, or on account of labor disputes, strikes, lockouts, fire
or other casualty, war, terrorist actions, acts of God and other similar causes beyond the reasonable control of the party claiming
an unavoidable interruption, but never financial inability. Other than obligations accruing prior to the occurrence of an event
of Unavoidable Interruption or obligations that, if not performed, would cause a material adverse effect on the Hotel or its operations
(for instance, the requirement to maintain the Permits or insurance obligations hereunder), the obligations of the party hereunder
shall be suspended during the period of an Unavoidable Interruption.

 

"Uniform System
of Accounts" shall mean the Uniform System of Accounts for the Lodging Industry, 11th Revised Edition, 2014,
as published by the Hotel Association of New York City, Inc. or any later edition thereof.

 

"Working Capital"
shall mean and refer to the funds which are reasonably necessary for the day-to-day operation of the Hotel's business, including,
without limitation, amounts sufficient for the maintenance of petty cash funds, operating bank accounts, receivables, payrolls,
prepaid expenses, advance deposits, funds required to maintain inventories, and amounts due to/or from Manager and/or Owner less
accounts payable and accrued current liabilities.

 

1.2         Terminology.
All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all genders;
the singular shall include the plural, and the plural shall include the singular. The titles of Articles, Sections and Subsections
in this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement, and all references
in this Agreement to Articles, Sections, Subsections, paragraphs, clauses, sub-clauses or exhibits shall refer to the corresponding
Article, Section, Subsection, paragraph, clause or sub-clause of, or exhibit attached to, this Agreement, unless specific reference
is made to the articles, sections or other subdivisions of, or exhibits to, another document or instrument.

 

1.3         Exhibits.
All exhibits, schedules and other attachments attached hereto are by this reference made a part of this Agreement.

 

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ARTICLE 2

MANAGEMENT OF HOTEL

 

Owner hereby engages and
appoints Manager, pursuant to the terms of this Agreement, to operate and manage the Hotel, and Manager hereby agrees and contracts
to plan, operate, repair and manage the Hotel pursuant to the terms of this Agreement.

 

Subject
to the terms of this Agreement, Hotel operations shall be under the exclusive supervision of Manager, which, except as otherwise
specifically provided in this Agreement, shall be responsible for the proper and efficient operation, maintenance
and repair of the Hotel in accordance with the terms of this Agreement. Except as specifically set forth in
this Agreement, Manager shall have discretion and control respecting matters relating
to management and operation of the Hotel, including, without limitation, charges for rooms and commercial space, credit policies,
food and beverage services, other Hotel services, employment policies, granting of concessions or leasing of shops and agencies
within the Hotel, procurement of inventories, supplies and services, promotion and publicity and, in general, all activities necessary
for operation of the Hotel.

 

Manager shall devote its knowledge, experience
and efforts to operate and manage the Hotel pursuant to this Agreement in a businesslike manner in accordance with the Operating
Standards. Manager shall make available to Owner the full benefit of the judgment, experience and advice of the members of Manager's
organization and staff with respect to the policies pursued by Owner in operating, maintaining, and servicing the Hotel.

 

ARTICLE 3

TERM

 

3.1         Term.
The agreement shall be in effect for the initial Term. If this Agreement has not been otherwise terminated in accordance with
the terms of this Agreement, upon the expiration of the initial Term, the initial Term shall be automatically be extended by four
(4) terms of one (1) year each, unless either Owner and Manager send a termination notice at least thirty (30) days prior to the
then expiration of the Term to cancel this Agreement effective as of the then next expiration of the Terms (as it may be extended).
Notwithstanding the foregoing, the Agreement may be terminated prior to the scheduled expiration of the Term or any extension
thereof (i) upon the sale of the Hotel to a bona fide Third Party Purchaser, subject to and as allowed and provided in Article
18 hereof; and (ii) as otherwise provided in Articles 15, 17 and 18.

 

3.2         Surrender.
On the expiration or sooner termination of the Term, Manager shall quit and surrender the Premises to Owner in the condition required
pursuant to this Agreement and take such other actions as contemplated by Article 20 hereof.

 

ARTICLE 4

USE AND OPERATION OF THE HOTEL

 

4.1         Operation.
Manager shall be the sole and exclusive manager of the Hotel during the Term and shall operate the Hotel in accordance with the
Operating Standards and the provisions of this Agreement. Manager shall act in good faith with respect to the proper protection
of and accounting for Owner's assets and shall deal at arm's length with Owner and all
third parties.

 

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4.2         Employment.
(a)         Subject to the terms of this Agreement, Manager shall select, employ,
promote, transfer, compensate, terminate where appropriate, supervise, direct, train, and assign the duties of the Executive Personnel
and, through the Executive Personnel, a sufficient number of personnel whom Manager reasonably determines to be necessary or appropriate
for the proper, adequate and safe operation and management of the Hotel (collectively, the "Hotel Employees").
All such employees of the Hotel shall be employees of Manager or Manager's Affiliate.
In addition, Manager may, from time to time, assign one or more of its employees to the staff of the Hotel on a full-time, part-time
or temporary basis. Notwithstanding the provisions of this Section 4.2 or any other provision of this Agreement, all costs, expenses
and liabilities relating to Hotel Employees shall be expenses of operating the Hotel and the responsibility of Manager for acts
or omissions of Hotel Employees shall not extend beyond responsibility for the gross negligence or willful misconduct of, or the
willful violation of Legal Requirements by the Executive Personnel. Subject to Section 4.6 below, Manager will negotiate with any
union lawfully entitled to represent such employees and may execute collective bargaining agreements or labor contracts resulting
therefrom that have been approved by Owner. Manager shall fully comply with all Legal Requirements having to do with worker's compensation,
social security, unemployment insurance, hours of labor, wages, working conditions, and other employer-employee related subjects.
The cost of all labor, employees and employment arrangements and any benefits and taxes related thereto shall be charged as Gross
Operating Expenses of the Hotel and shall be accrued in accordance with generally accepted accounting principles (“GAAP”)
and shall be promptly paid by Owner in accordance with the terms of this Agreement. The costs provided for in the immediately preceding
sentence shall include, by way of example and not limitation, all reasonable costs and expenses (including, without limitation,
all employment related expenses incurred by Manager with respect to the Hotel Employees), such as severance pay, unemployment compensation
and health insurance and related costs (i.e., in order to comply with COBRA-type regulations) as a result of the termination of
employees and which shall have been paid or accrued in accordance with GAAP. Manager shall use
commercially reasonable efforts and exercise reasonable care to select qualified, competent, and trustworthy employees. The Hotel's
general cashier and all employees having check signing authority shall be adequately bonded or insured to the reasonable satisfaction
of Owner (or as provided herein) and the cost of such bonds or insurance shall be an expense of the Hotel. To the extent possible
and reasonably available, Manager shall use local labor to fill non-Executive Personnel positions in the operation of the Hotel.
Owner may at any time consult or communicate with Manager regarding any of the Hotel Employees, but will not interfere in the day-to-day
activities of Hotel Employees. The Manager shall not discriminate against any employee or applicant for employment because of race,
color, religion, national origin, ancestry, age, sex or sexual orientation, and all employment advertising shall indicate that
Manager and Owner are each an Equal Opportunity Employer as that term is defined under Legal Requirements.

 

Notwithstanding anything to the contrary contained
in this Agreement, the following subparagraphs (b) and (c) shall apply to any liability that may, from time to time, arise out
of the Employee Retirement Income Security Act of 1974 ("ERISA") and the Multi-employer Pension Plan Amendments
Acts of 1980 ("MEPPA"), respectively, as from time to time amended.

 

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(b)          Employee
Benefits: Any Hotel Employees who are not then represented by a collective bargaining representative shall be entitled to participate
in the incentive programs, profit sharing and/or other employee retirement, disability, health, welfare or other benefit plan
or plans then made available by Manager to similarly situated employees of other hotels managed by Manager, in accordance with
their respective terms. Manager will have the right to charge the Hotel with its allocable share of the cost of any such plan
or plans and any contributions to be made thereunder provided that such charges and contributions shall be determined by Manager
in good faith on a uniform basis with respect to charges and contributions imposed for the same or similar plans at other hotels
then managed by Manager, subject to Legal Requirements. Manager's rights under this Subsection (b) shall be subject to the condition
that Manager shall not put into effect any amendment to any existing plan, or adopt any additional plan, which is not imposed
upon all other similarly situated hotels managed by Manager.

 

Upon the expiration or
termination of this Agreement, the sale of the Hotel or other similar event, Manager shall cooperate with the Owner with respect
to disposition of such plan or plans (or plan assets) in a mutually satisfactory manner, all in compliance with then applicable
Legal Requirements.

 

(c)          Collective
Bargaining or Other Multi-employer Plans: Manager and Owner agree that with respect to any withdrawal liability arising under any
collective bargaining agreement or other "multi-employer plan" (as defined in Section 3(37) of ERISA) in which the Hotel
Employees become participants, the obligations of the parties shall be determined as follows:

 

(1)         Withdrawal
liability arising with respect to Hotel Employees shall be the responsibility of Owner, and Owner shall either pay the amount of
such withdrawal liability directly to such plan or reimburse Manager for withdrawal liability payments made to such plan by Manager
with respect to Hotel Employees (including withdrawal liability arising after the sale or other termination of this Agreement,
provided that such liability arises as a result of such sale, disposition, termination or other similar event). To the extent permitted
under then applicable laws, regulations and agreements, Manager shall cooperate with Owner in structuring transactions and transferring
actual or contingent withdrawal liability to a successor in ownership or purchaser of the Hotel in accordance with "relief"
provisions of ERISA, such as ERISA Section 4204 or then applicable statutory or regulatory provisions of a similar nature.

 

(2)         For
purpose of this subparagraph (c), the term "withdrawal liability" shall mean the actual amount assessed by and payable
to a multi-employer pension fund upon a complete or partial withdrawal of the Hotel or Hotel Employees from such fund. Manager
shall cooperate with Owner in challenging a plan's assessment of such liability, provided that all costs of litigation, arbitration
or other procedures shall be paid by Owner (including any bonds that must be posted). If Manager or its Affiliates have employees
at other locations who participate in the same multi-employer plan as Hotel Employees, Owner shall be charged with and be responsible
only for multi-employer plan withdrawal liability arising solely with respect to the participation of Hotel Employees in such plan.

 

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4.3         Legal
Proceedings. Legal Proceedings of a "non-extraordinary nature" (hereafter defined), may be instituted by Manager,
in accordance with guidelines and policies determined from time to time by Manager and Owner, in the name of Manager or the Hotel
or Owner and by counsel designated by Manager pursuant to such guidelines and policies. Legal Proceedings of an "extraordinary
nature" (hereafter defined) shall require Owner's prior approval of the proceedings and counsel approved by Owner. Manager
shall furnish Owner with quarterly status reports with respect to all Legal Proceedings of an extraordinary nature. In addition,
Manager shall have the right to defend, through counsel designated by Manager, Legal Proceedings of a non-extraordinary nature
against Owner or Manager resulting from the operation of the Hotel. The defense of Legal Proceedings against the Hotel of an extraordinary
nature (including, without limitation, any aspect of any claims against Manager or Owner arising out of the operation of the Hotel
as to which the insurance company denies coverage) shall be coordinated with Owner, designated counsel shall be subject to Owner's
reasonable approval and Manager shall furnish Owner with quarterly status reports with respect to such actions. All claims against
Owner and/or Manager arising out of the management or operation of the Hotel which (i) are not covered by insurance shall be promptly
communicated to Owner and (ii) are covered in whole or in part by insurance shall be promptly forwarded by Manager to the appropriate
insurer (with a copy thereof to Owner in the case of claims against Owner). Legal Proceedings of a "non-extraordinary nature"
shall be proceedings in which the monetary exposure is less than $50,000 that are (i) initiated by Manager or Owner relating to
the operation of the Hotel for matters such as collections, maintenance of licenses and permits, enforcement of contracts and proceedings
against Hotel tenants; and/or (ii) defense of actions against the Owner or Manager resulting from the operation of the Hotel, for
matters such as guest claims for loss of property or injury to persons and claims relating to employment or the application for
employment at the Hotel. Legal Proceedings of an "extraordinary nature" shall mean all other Legal Proceedings. All costs,
expenses, fees and liability associated with any Legal Proceedings shall be paid solely by Owner.

 

4.4         Annual
Plan. On or before the date that is forty-five (45) days following the Commencement Date, Manager shall submit to Owner a proposed
Annual Plan in Manager’s format for the remaining portion of the Fiscal Year in which the Commencement Date occurs and Owner
and Manager shall cooperate to agree on the annual plan for the remainder of the Fiscal Year in which the Commencement Date occurs,
which shall be the “Annual Plan” for such Fiscal Year. On or before December 1st of each year following
the Commencement Date, Manager shall submit to Owner a proposed Annual Plan in Manager’s format for the next Fiscal Year.
On or before December 15th of each year following the Commencement Date, Owner either shall accept the proposed Annual
Plan submitted to Owner by Manager or shall submit to Manager a detailed list of Owner's objections or questions to the proposed
Annual Plan ("Owner's Annual Plan Objections"). Within fifteen (15) days after Manager's receipt of Owner's Annual
Plan Objections, Owner and Manager shall meet and discuss Owner's Annual Plan Objections with the goal of agreeing upon an Annual
Plan for the subject Fiscal Year (the “Annual Plan”). Owner, as part of Owner's Annual Plan Objections, shall
have the right to object to the entire proposed Annual Plan or to any specific item or items contained in the proposed Annual Plan.
In the event Owner objects to the proposed Annual Plan or any specific item or items of expense in the proposed Annual Plan and
Owner and Manager are unable to reach agreement thereon as provided above prior to commencement of the Fiscal Year in question,
pending such agreement, the proposed Annual Plan or the specific item or items of expense (not revenue) in question shall be suspended
and replaced for such period that the Annual Plan or such item(s) are in question by an amount equal to the lesser of (i) that
proposed by Manager for such Fiscal Year, or (ii) if an objection to the entire Annual Plan, the Actual Gross Operating Expenses
for the immediately preceding Fiscal Year subject to an adjustment equal to the percentage increase in the CPI over the last twelve
(12) month period immediately preceding the start of the Fiscal Year in question, or (iii) if an objection to a specific item or
items of expense in the Annual Plan, such item or items of expense for the immediately preceding Fiscal Year subject to an adjustment
for each item equal to the percentage increase in the CPI over the twelve (12) month period immediately preceding the start of
the Fiscal Year in question.

 

    	Management Agreement - Page 12	 

     

    

 

(a)          The
Annual Operating Budget shall be prepared in accordance with the Uniform System of Accounts. The proposed Annual Operating Budget
shall incorporate Manager's good faith reasonable estimates of the items of revenue and expense contained therein and shall contain
the proposed budget for operations for the succeeding Fiscal Year. When approved by Owner, the proposed Annual Operating Budget
shall be the approved Annual Operating Budget. Any revisions, substitutions or additions to the Annual Operating Budget must be
approved by the Owner in writing. The proposed Annual Plan shall include for the ensuing Fiscal Year, the following proposed budgets
and programs:

 

A.         A
proposed operating budget (the “Proposed Operating Budget”) on a monthly and yearly basis with detailed departmental
schedules for each line item and the assumptions underlying the same, including, without limitation: (a) projected occupancy
and average room rates by month broken down by room segment; (b) projected Total Operating Revenues; (c) proposed Hotel
room rates and charges for other services; (d) projected Gross Operating Expenses; (e) projected EBITDA; (f) proposed
staff scheduling and compensation (including, without limitation, any bonuses or other incentive compensation for Hotel Employees
which may take the form of a “bonus pool” stating an aggregate amount to be distributed among the Hotel Employees as
appropriate, rather than separately setting forth incentive and/or bonus compensation for each Hotel Employee); (g) a narrative
comparison of budgeted revenue and expense levels to the previous Fiscal Year’s estimated and actual results, highlighting
material changes for the upcoming Fiscal Year; (h) anticipated depreciation and amortization of fixed assets at the Hotel;
(i) annual debt service with respect to the Hotel; (j) projected contributions by, and distributions to, Owner as the
result of Hotel operations; (k) an estimate of the working capital funds required to be maintained, as of the end of each
month; (l) a year-over-year comparison with comments regarding variance; (m) the cost of the Centralized Services, and(o) all
other items reasonably requested by Owner in order to provide the projected cash flow for the Hotel during such upcoming Fiscal
year.

 

B.         A
proposed budget (the “Proposed Capital Expenditures Budget” or “Capital Budget” and when
the Annual Plan is approved and agreed, the “Approved Capital Budget”) setting forth Manager’s estimate
of the Capital Expenditures to be made respecting the Hotel for both of the following:

 

    	Management Agreement - Page 13	 

     

    

 

(a)         major
repairs, alterations, improvements, renewals and replacements (which repairs, alterations, improvements, renewals and replacements
are not routine maintenance, repairs and alterations referred to in Section 6.1.2(b)) to the structural, mechanical,
electrical, heating, ventilating, air conditioning, plumbing and vertical transportation elements of the Hotel building (“Major
Capital Expenditures”); and

 

(b)         non-routine
repairs and maintenance to the Hotel building which are normally capitalized under GAAP, such as exterior and interior repainting,
resurfacing building walls, floors, roofs and parking areas, and replacing folding walls and the like, but which are not Major
Capital Expenditures.

 

C.         A
proposed budget (the “Proposed FF&E Budget”) setting forth Manager’s estimate of the FF&E expenditures
to be made and the sources of funds for the replacements and renewals to the Hotel’s FF&E, including all information
necessary to satisfy the reporting requirements in the License Agreement and the Mortgage relating to the FF&E Reserve.

 

D.         A
market overview of local competitive properties of the Hotel including narrative descriptions of (a) the Hotel’s target
market, (b) the Hotel’s relative position in such market, and (c) the proposed room rate structures and occupancy
for the target market.

 

E.         A
marketing plan for the Hotel including narrative descriptions and Hotel allocable costs, of (a) Manager’s national or
regional or business segment marketing plans, (b) local Hotel marketing, and (c) intended sales initiatives.

 

F.         A
staffing plan describing the general staffing needs for the operation and management of the Hotel.

 

In preparing the Proposed
Operating Budget, or otherwise from time to time upon the request of Owner, Manager shall use commercially reasonable efforts to
investigate, consider and incorporate into the day-to-day operations of the Hotel certain efficiencies and economies of scale that
may be achieved by outsourcing some or all services that may be currently provided “in-house”.

 

In addition, Manager shall provide to Owner
for Owner's review, a written schedule for the Hotel listing all executive and management employees to be employed "on-site"
in the direct management of the Hotel including, but not limited to the positions of General Manager, Director of Sales, and Chief
Engineer. These schedules shall include such employee's title or job description and the salary range including additional compensation
or prerequisites such as lodging, meals, maintenance, moving expenses, bonus/incentive compensation and the like. In the event
that any employee's services are shared with (or subsidized through a sharing arrangement with) another hotel, the employee shall
be identified together with a description of his/her responsibilities and the amount and source of any subsidy, together with a
breakdown of the relative time expended with respect to the Hotel and each other hotel. If Owner notifies Manager that Owner does
not believe that some or all of the scheduled wages and salaries are reasonable and customary as required above, then Manager shall
promptly provide to Owner a wage and salary survey that supports the scheduled wages and salaries. No proposed amendment including
changes in salary or other compensation shall be effective unless the salary or other compensation as changed is reasonable and
customary as required above.

 

    	Management Agreement - Page 14	 

     

    

 

4.5         Contracts;
Equipment Leases.

 

Subject to the
terms of this Section 4.5, Manager may contract for the purchase of goods and services for the Hotel with third parties that have
other contractual relationships with Manager or its Affiliates, so long as the prices charged by such third parties are reasonably
competitive. In addition:

 

A.         Contracts.
Manager is authorized, without the prior written approval of Owner if not otherwise expressly contemplated by the Annual Plan,
to enter in the name of Owner any contracts for or covering the Hotel (except for Equipment Leases and Space Leases as more fully
described in subparagraph B below) with vendors of its choice; provided, however, if not otherwise expressly contemplated
by the Annual Plan, Manager may not enter into any contract for or covering the Hotel without Owner’s prior written approval
if (a) the contract term is longer than one (1) year and is not terminable by Owner without penalty upon 30 days’
prior written notice, or (b) the total expenditure by the Hotel pursuant to such contract shall be in excess $25,000.

 

B.         Equipment
Leases. Manager is authorized, without the prior written approval of Owner if not otherwise a part of the Annual Plan, to enter
in the name of Owner any equipment leases and Space Leases covering the Hotel with vendors of its choice; provided, however,
if not otherwise expressly contemplated by the Annual Plan, Manager may not enter into any equipment lease without Owner’s
prior written consent if (a) the contract term is longer than one (1) year and is not terminable by Owner without penalty
upon 30 days’ prior written notice or (b) the total expenditures under such Equipment Lease or Space Lease exceed
$25,000.

 

4.6         Labor
Relations. Manager shall have no right to enter into any collective bargaining agreement
concerning any employees of the Hotel without the prior written approval of Owner, which may
be granted or withheld in its reasonable discretion. Upon Owner’s approval of any such agreement, Manager shall be responsible
to perform such agreements. To the extent applicable, Manager: (a) represents that it is an equal opportunity employer as
described in Section 202 of Executive Order 11246 dated September 24, 1965, as amended, and as such agrees to comply with the provisions
of Paragraphs 1 through 7 of Section 202 of said Executive Order during the performance of this Agreement, (b) agrees to comply
with the affirmative action requirements of Part 60.741 of Title 41, Code of Federal Regulations, with respect to handicapped workers
during the performance of this Agreement, (c) agrees to comply with the affirmative action requirements of Part 60.250 of Title
41, Code of Federal Regulations, with respect to Disabled Veterans and Veterans of the Vietnam Era during the performance of this
Agreement, and (d) shall submit to Owner in the form approved by the Director of the Office of Federal Contract Compliance, U.S.
Department of Labor, a certification that Manager does not and will not maintain any facilities that provide for their employees
in a segregated manner, or permit their employees to perform their services at any location under its control, where segregated
facilities are maintained, and that Manager will obtain a similar certification from its contractors.

 

    	Management Agreement - Page 15	 

     

    

 

4.7         Liquor
License. Owner shall obtain and maintain throughout the Term all alcoholic beverage licenses either in its name or its designee
and shall maintain the alcoholic beverage licenses in good standing and effect, free of all liens (and in compliance with the conditions
imposed upon such alcoholic beverage licenses by any alcoholic beverage control commission or other governmental authority or agency,
pursuant to the License Agreement.

 

4.8         Employee
Discount. To the extent Manager provides discounted rates to Manager’s employees at other hotels managed by Manager or
its Affiliates, pursuant to discount rate programs applicable to other hotels, Manager agrees to include this Hotel in such discounted
rate programs (subject to availability and black-out periods determined by Owner and Manager during the Annual Plan process, or
as otherwise approved by Manager or Owner as part of the revenue management of this Hotel) and to provide the same discounted rates
to the Hotel Employees, to the extent allowed under the management and franchise agreements affecting such other hotels.

 

4.9         Forms.
Manager shall prepare or cause to be prepared for execution by Owner all forms, reports and returns, if any, required to be filed
by Owner under applicable law with respect to the operation of the Hotel; however, Manager shall not be obligated to prepare any
of Owner's income tax returns. Without limitation, Manager shall timely prepare and deliver, as required by law, an Internal Revenue
Service Tax Form 1099 with respect to payments made during a calendar year to third party contractors and professionals.

 

4.10       Notice
of Violations. Manager shall promptly notify Owner in writing of any written notice received from any regulatory or
governmental body regarding an actual or perceived violation of any Legal Requirements.

 

4.11      In-House
Services. Manager shall have the right to provide in-house services to the Hotel, including without limitation, legal counsel,
the reasonable costs of which shall not exceed current market rates for similar services and shall be paid to Manager or its Affiliates
as an Gross Operating Expense of the Hotel; provided, however, that the cost of such in-house services shall not exceed the $25,000
in the aggregate in any Fiscal Year without Owner’s prior written approval. In the event Manager desires to enter into any
transaction with an Affiliate or any person in which Manager or any of its Affiliates has any ownership, investment or management
interest or responsibility which is on terms that are not arms-length, Manager shall (i) disclose to Owner the nature of such
affiliation prior to engaging in any transaction in connection with the Hotel; and (ii) obtain the prior written approval of Owner
(which consent shall not be unreasonably withheld, conditioned or delayed), regardless if such transaction was included in the
approved Annual Plan.

 

    	Management Agreement - Page 16	 

     

    

 

4.12       Centralized
Services. Subject to the terms and conditions of this Agreement, Manager shall furnish or cause its Affiliates to furnish to
the Hotel, the Centralized Services. Subject to the approved Annual Plan and the terms and conditions of this Agreement, Owner
shall pay to Manager the Hotel’s allocable share of the Centralized Services actually incurred by Manager or its Affiliates
(without profit, premium or mark-up or other element of compensation of any kind). Although the method of allocation of the Centralized
Services among the Managed Hotels may change from time to time as agreed to by Owner and Manager, the current method of allocating
the Centralized Services is set forth on Schedule IV. Additional Centralized Services may be added by amendment to Schedule IV
from time to time only upon Owner’s prior written approval (which shall not be unreasonably withheld, conditioned or delayed)
with Manager’s explanation of how the costs of such additional Centralized Services to be charged and allocated among the
Manager managed hotels or if provided for in an approved Annual Plan. Except with respect to the Centralized Services, under no
circumstances shall Manager charge for any general corporate overhead of Manager or Affiliates (except as otherwise provided or
allowed in this Agreement). As part of the Proposed Annual Plan, in addition to the Centralized Services, Manager will set forth
a list of those additional services (if any) that are furnished generally on a central or system-wide basis to Managed Hotels,
together with Manager’s proposal as to which of such additional services are appropriate for the Hotel.

 

4.13       Lease.
Owner or Manager at Owner’s request shall make any and all lease payments under the Lease as and when they become due, and
shall comply with and perform any and all covenants contained in the Lease, in each instance before any event of default (as defined
in the Lease) or other event occurs under the Lease, which would trigger the lessor’s right to terminate the Lease.

 

ARTICLE 5

RELATIONSHIP OF PARTIES

 

Owner and Manager acknowledge
and agree that this Agreement creates an agency relationship; provided, however, that (a) each Hotel Employee shall be the employee
of Manager or Manager’s Affiliate and not of Owner, (b) Manager's authority is subject to the terms and conditions of this
Agreement, and (c) nothing in this Agreement shall constitute, or be construed to be, or create, a partnership, joint venture or
lease or employment arrangement between Owner and Manager with respect to the Hotel or the operation thereof. Employees or agents
of Manager are not by this Agreement or by any actions of Owner and/or Manager hereunder made employees of Owner, and are not entitled
to the benefits provided by Owner or its Affiliates to its employees, including but not limited to, group insurance, leave and
pension plan. This Agreement shall not be deemed at any time to be an interest in real estate or a lien or security interest of
any nature against the Hotel, the Premises or any other land used in connection with the Hotel, or any equipment, fixtures, inventory,
motor vehicles, contracts, documents, accounts, notes, drafts, acceptances, instruments, chattel paper, general intangibles, or
other personal property now existing or that may hereafter be acquired or entered into with respect to the Hotel or the operation
thereof.

 

    	Management Agreement - Page 17	 

     

    

 

ARTICLE 6

ADVERTISING

 

Subject to and in strict
compliance with the provisions of the License Agreement, Manager shall arrange and contract for all advertising, which Manager
may reasonably deem necessary, in accordance with Section 4.4, for the operation of the Hotel. So long as the License Agreement
may be in effect, Manager generally shall advertise the Hotel under the name of the Hotel set forth on Schedule I or such other
name as Owner may designate or approve.

 

ARTICLE 7

RESERVE FOR FF&E

 

7.1.        Reserve
for Replacement of FF&E. The Reserve shall be funded pursuant to Section 7.2, and Manager shall use amounts in the Reserve
to cover the cost of FF&E expenditures and Capital Improvements, as described in Section 4.4 in conjunction with the Approved
Capital Budget. All FF&E, Capital Improvements and the Reserve shall be the property
of Owner.

 

7.2         Transfers
to Reserve for FF&E. Commencing on the Commencement Date and continuing thereafter
during the remainder of the Term, Manager shall deposit monthly into the Reserve for FF&E an amount equal to the amounts required
by Lender and/or by Licensor; provided that in no event will the amounts to be deposited monthly into the Reserve be less than
an amount equal to such amounts required by the Owner’s lender or the Franchisor.

 

7.3         Annual
Adjustment. At the end of each Fiscal Year and following receipt by Manager of the annual accounting referred to in Article
10, an adjustment will be made to such annual account, if necessary and if available, so that the appropriate amount shall have
been deposited in the Reserve.

 

7.4         Maintenance
of Reserve. Checks or other documents of withdrawal shall be signed by representatives of Manager who shall be bonded or otherwise
insured pursuant to insurance provisions of this Agreement. The proceeds from the sale of FF&E no longer needed for the operation
of the Hotel shall be deposited in the Reserve, but not be credited against the obligation to deposit cash in such fund for the
then current Fiscal Year. All interest earned or accrued on amounts invested from the Reserve shall be added to the Reserve (but
shall not be credited against Owner's obligations to fund the Reserve), and shall not constitute Total Operating Revenues or be
included therein.

 

7.5         Accumulation
of Reserve and Additional Cost of FF&E and Capital Improvements. Owner and Manager acknowledge and agree that portions
of the Reserve may, from time to time in accordance with the then-current Annual Plan, be used for more significant expenditures
than could be reserved for in a single year. Accordingly, at the end of each Fiscal Year, any amounts remaining in the Reserve
shall be carried forward to the next Fiscal Year, and shall be in addition to the amount to be reserved in the next Fiscal Year.
In the event at any time there are insufficient funds in the Reserve for any Fiscal Year to pay the cost of FF&E in accordance
with the Annual Operating Budget and the Approved Capital Budget, then Owner will, within thirty (30) days after request therefor
by Manager shall provide the additional cash to the Manager.

 

    	Management Agreement - Page 18	 

     

    

 

7.6.        Final
Remittance. Upon expiration or termination of this Agreement, subject to the other terms and provisions of this Agreement,
all remaining amounts in the Reserve shall be remitted forthwith to Owner.

 

ARTICLE 8

REPAIRS AND MAINTENANCE AND CAPITAL IMPROVEMENTS

 

8.1         Repairs
and Maintenance. Subject to the terms hereof, Manager shall, from time to time, make such expenditures from Total Operating
Revenues for repairs and maintenance including service contracts ("Repairs and Maintenance") as required by the
Lender, the License Agreement, the Legal Requirements, the then current Annual Plan or
as necessary to maintain the Hotel in good operating condition in compliance with the License Agreement and otherwise in the condition
required by this Agreement, including but not limited to repairs and maintenance of HVAC, mechanical and electrical systems, exterior
and interior repainting, resurfacing building walls and parking areas, waterproofing of exterior surfaces of floors, roofs, and
replacement of plate glass, or the like. It is Owner's intent that the sums allocated for Repairs and Maintenance in accordance
with the then current Annual Plan are to be fully expended during that Fiscal Year exclusively for the purposes identified in such
Annual Plan. Except in the event of an emergency due to casualty, act of God or otherwise under circumstances in which it would
be unreasonable to seek to obtain prior approval (and provided that Manager shall notify Owner of any such expenditure within a
reasonable time given the nature and scope of the emergency), all expenditures for the foregoing shall be as provided in the Annual
Operating Budget and the Approved Capital Budget. If any such Repairs or Maintenance shall be made necessary by any condition against
the occurrence of which Owner has received the guaranty or warranty of the builder or the Hotel or of any supplier of labor or
materials for the Hotel or of any supplier of labor or materials for the construction of the Hotel, then Manager may invoke said
guarantees or warranties in Owner's or Manager's name and Owner shall cooperate in all reasonable respects with Manager in the
enforcement thereof.

 

8.2         Capital
Improvements. Owner may, from time to time, at its sole expense, make such structural repairs, replacements, substitutions,
alterations, additions or improvements (exclusive of FF&E) ("Capital Improvements") in or to the Hotel as
Owner shall determine are necessary to comply with the Operating Standards. If Capital Improvements included in the definition
of Building and Appurtenances shall be required at any time during the Term by the terms of any Mortgage, the License Agreement,
to maintain the Hotel in good operating condition or by reason of any Legal Requirements, or because Manager and Owner jointly
agree upon the desirability thereof, then in such event all such Capital Improvements shall be made with as little hindrance to
the operation of the Hotel as reasonably possible. Notwithstanding the foregoing, as long as the Hotel can continue to operate
without interruption, Owner shall have the right to contest the need for any such Capital Improvements required by any Legal Requirements
and may postpone compliance therewith, if so permitted by law and if such postponement will not expose Manager to any civil or
criminal liability. All recommendations by Manager of Capital Improvements shall be submitted in conjunction with the Capital Budget
for the Fiscal Year described in Section 4.4(b). In the event that Owner elects to perform Major Renovations to the Hotel, the
oversight of the performance of the Major Renovations shall be placed to bid, it being agreed that the Manager or its Affiliates
may participate in any such bidding process.

 

    	Management Agreement - Page 19	 

     

    

 

8.3         Service
Contracts. Manager, without requiring the consent of Owner, shall enter into any contract for cleaning, maintaining, repairing
or servicing the Hotel or any of the constituent parts of the Hotel as Manager deems necessary for the operation of the Hotel,
except as specifically provided in Section 4.4 or 4.5. Unless otherwise approved by Owner, all service contracts shall: (a) be
in the name of Owner or Owner's nominee, (b) to the extent customary, include a provision for cancellation thereof by Owner or
Manager upon not more than thirty (30) days written notice, and (c) shall require that all contractors provide evidence of such
insurance as is customarily carried by other contractors involved in similar servicing arrangements.

 

8.4         Liens.
Owner and Manager shall cooperate and use all commercially reasonable efforts to prevent any liens from being filed against the
Hotel that arise from any maintenance, changes, repairs, alterations, improvements, renewals or replacements in or to the Hotel.
If any such liens are filed, Manager shall, subject to the availability of funds therefor in the Operating Accounts or as otherwise
supplied by Owner, obtain the release thereof prior to the institution of legal proceedings in connection therewith. The cost of
obtaining such release shall be included in Gross Operating Expenses, unless the imposition of the lien results from a default
by Owner or Manager, in which event the cost of obtaining such release shall be borne by such defaulting party.

 

8.5         Notice
of Unavoidable Interruptions. In the event of any occurrence constituting an Unavoidable Interruption, Manager shall promptly
notify Owner of such occurrence and shall keep Owner informed as to the extent and impact thereof on the Hotel.

 

ARTICLE 9

WORKING CAPITAL AND BANK ACCOUNTS; DISTRIBUTIONS

 

9.1         Working
Capital. Owner shall provide initial Working Capital in the amount set forth on Schedule I in addition to the value of all
Inventories. Owner shall at all times cause sufficient funds to be on hand in the Operating Accounts to assure the timely payment
of all current liabilities of the Hotel, including but not limited to Gross Operating Expenses, all other costs and expenses incurred
in connection with the Hotel pursuant to this Agreement and the performance by Manager of its obligations under this Agreement,
all fees, charges and reimbursements payable to Manager hereunder and all amounts required hereunder to be transferred into the
Reserve. In no event shall Owner permit the balance in the Operating Accounts to be less than an amount equal to the estimated
monthly operating expenses of the Hotel as reflected in the then current Annual Operating Budget. From time to time, upon five
(5) days prior written notice from Manager that such funds are required, Owner shall furnish to Manager funds that Manager deems
reasonably necessary to assure that the Project shall have adequate working capital as herein provided. In the event Owner fails
to supply required working capital in accordance with the provisions of this Section or if Manager otherwise deems such action
to be necessary, Manager may use all or part of the funds in the Reserve to supplement the Operating Accounts in order to defray
or pay the Hotel's operating costs and expenses, to the extent permitted by the Mortgage. Owner shall promptly reimburse the Reserve
for all sums so used or transferred. All unexpended Working Capital, Inventories and Operating Equipment and Supplies purchased
with Working Capital shall remain the property of Owner.

 

    	Management Agreement - Page 20	 

     

    

 

9.2         Operating
Account. All funds (exclusive of funds deposited in the Reserve and house banks at the Hotel) received by Manager in the operation
of or otherwise relating to the Hotel, and funds for Working Capital provided by Owner or retained by Manager from Total Operating
Revenues, shall be deposited in the Operating Account, provided that in connection with any cash management arrangements with the
Lender, all Total Operating Revenues shall be deposited to the Operating Account upon being swept out of the accounts associated
with such cash management arrangements. No funds shall be deposited into the Operating Account attributable to any other property.
To the extent permitted by the Mortgage, amounts in the Operating Account may be temporarily withdrawn and invested by Manager
in any Permitted Investments, having due regard for the timing of cash needs, but in no event shall such funds be co-mingled by
Manager with any other funds. From the Operating Account, Manager shall pay all Gross Operating Expenses (other than the excess
FF&E if funded by or through Owner) before any penalty or interest accrues thereon, however, taking into account sound cash
management. All interest earned or accrued on amounts invested from the Operating Account shall be added to the Operating Account.
All checks or other documents of withdrawal from the Operating Account shall be signed by representatives of Manager except as
provided in Section 9.3 hereof.

 

9.3         Maintenance
of Operating Account. Subject to Section 9.4, the Operating Account shall be opened and maintained at all times by Manager
and checks and other documents of withdrawal shall be signed only by representatives of Manager who are covered by the insurance
required herein. The Operating Account and any other bank accounts approved by Owner shall be in Owner's name (for example, “[Owner’s
name] d/b/a/ [trade name of Hotel]”).

 

Manager shall not change the bank or open or
close any bank account described in this Article 9 without Owner's prior written approval, which approval Owner shall not unreasonable
withhold.

 

9.4         Final
Remittance. Upon the expiration or termination of this Agreement, after payment of all Gross Operating Expenses for which bills
were received to such date, Manager's Management Fee, Reimbursable Expenses, any Termination Fee and any other amounts then due
and payable to Manager, all remaining amounts in (i) the Reserve, (ii) the Operating Account and (iii) the Permitted Investments,
shall be transferred forthwith to Owner by Manager. Owner shall pay Manager any remaining Management Fee, any Reimbursable Expenses
and any other amounts then due and payable to Manager and Owner shall pay, or cause to be paid, and shall hold Manager harmless
from and against all Gross Operating Expenses or other costs or expenses received after Manager has so transferred all funds. The
provisions hereof shall survive any termination of this Agreement.

 

9.5         Distributions
of Excess Cash. The Owner agrees that no distributions of cash to Owner or any other party designated by Owner from the Operating
Account except in accordance with the following:

 

    	Management Agreement - Page 21	 

     

    

 

Full payment of the following
items in the following order has occurred:

 

		(A)	all due and payable Management Fees, Centralized Services
costs, Reimbursable Expenses and/or any other amounts due hereunder to Manager;

		(B)	due and payable Gross Operating Expenses; and

		(C)	the deposit of any reserves required to be held hereunder,
under the Mortgage or the License Agreement.

 

Upon payment of the same, Manager may distribute
from the Operating Account to Owner all sums in the Operating Accounts in excess of the then working capital requirements of the
Hotel determined in accordance with Section 9.1 of this Agreement.

 

ARTICLE 10

BOOKS, RECORDS AND STATEMENTS

 

10.1       Books
and Records. Manager (at the cost of Owner) shall keep full and adequate books of account and other records reflecting the
results of operation of the Hotel in accordance with the Uniform System of Accounts and GAAP. The books of account and all other
records relating to or reflecting the operation of the Hotel shall be kept either at the Hotel or at Manager's corporate offices
and shall be available to Owner and its representatives and its auditors or accountants, at all reasonable times for examination,
audit, inspection and transcription at Owner's sole cost and expense. All of such books and records pertaining to the Hotel including,
without limitation, books of account, guest records and front office records at all times shall be the property of Owner. Upon
any termination of this Agreement, all of such books and records forthwith shall be turned over to Owner at a location reasonably
designated by Owner so as to insure the orderly continuance of the operation of the Hotel, but such books and records shall thereafter
be available to Manager at all reasonable times for inspection, audit, examination and transcription for a period of two (2) years.
Any books and records relating to Hotel Employees and payroll costs shall be the property of the Manager.

 

10.2       Financial
Reports.

 

(a)         Manager
shall deliver to Owner within twenty (20) days following the close of each Accounting Period a monthly profit and loss statement
reflecting a comparison of periodic and year-to-date actual revenues and expenses with the Annual Operating Budget as well as a
periodic and year-to-date comparison of such actual revenues and expenses with those of the prior Fiscal Year.

 

(b)         Further,
Manager shall provide to Owner within twenty (20) days following the close of each Accounting Period a report prepared in accordance
with the example set forth in Exhibit B attached hereto and made a part hereof.

 

(c)         Further,
within seventy-five (75) days after (i) the end of each Fiscal Year and (ii) the end of the Term of this Agreement, Manager
shall deliver to Owner an annual accounting, showing the results of operation of the Hotel during the Fiscal Year and a computation
of Total Operating Revenues, Gross Operating Expenses, and any other information necessary to make the computations required hereby
or which may be requested by Owner, all for such Fiscal Year. The annual accounting for any Fiscal Year shall be controlling over
the interim accountings for such Fiscal Year. Owner shall have the right to conduct an audit of the books.

 

    	Management Agreement - Page 22	 

     

    

 

(d)         Further,
Manager shall prepare and deliver any additional reports or information as Owner is required to provide under the License Agreement
with respect to the operations of the Hotel.

 

10.3       Audits
by Owner. Owner shall have the right to audit, conducted either by Owner's internal personnel or by a third party auditor retained
by Owner at its expense, all items of expense and revenue under this Agreement including, but not limited to, Total Operating Revenues,
Gross Operating Expenses, depreciation, the Management Fee and Reserve. Manager shall cooperate and assist with such audit. In
the event that an audit reflects an underpayment to Owner or Manager or an overpayment to Manager or Owner, Manager shall correct
same by a corrective payment to Owner or Manager, as appropriate, within ten (10) days following notice of the audit results to
Manager, subject to Owner’s and Manager’s right to challenge the audit results in accordance with the provisions of
Article 30 of this Agreement.

 

10.4       Segregation
of Accounts. In any instance where Manager manages several properties for Owner, Manager shall segregate the income and expenses
of each property so that Total Operating Revenues from each property will be applied only to the bills and charges from that property.

 

ARTICLE 11

MANAGER'S MANAGEMENT FEES; TIMING OF

PAYMENT TO MANAGER

 

11.1       Fees.
For each Fiscal Year or portion thereof, Manager shall receive, by a distribution made by Manager out of Total Operating Revenues
at the end of each Accounting Period in respect of its management services hereunder, a fee (collectively, the "Management
Fee(s)") calculated as follows:

 

(a)  the
Base Fee set forth on Schedule I; plus

 

(b)  the
fees and costs for Centralized Services provided herein.

 

The Management Fee generally shall be computed
separately for each Fiscal Year and shall not be accumulated from Fiscal Year to Fiscal Year. Owner shall reimburse Manager for
all Reimbursable Expenses incurred by it in connection with the performance of this Agreement. Any such amount shall be payable
within thirty (30) days of billing, and upon request of Owner, Manager shall provide a statement showing in reasonable detail the
nature and amount of such expenses, together with supporting documentation reasonably requested by Owner.

 

11.2       Treatment
of Proceeds of Business Interruption Insurance and Condemnation Awards. In the event of a casualty or condemnation for temporary
use resulting in the payment of business interruption insurance (with respect to such casualty) or a condemnation award (with respect
to such condemnation for temporary use), the amount of such proceeds shall be considered a part of Total Operating Revenues for
the purpose of computing Manager's Management Fee.

 

    	Management Agreement - Page 23	 

     

    

 

ARTICLE 12

INSURANCE

 

Manager shall procure and maintain (i) the
Workers’ Compensation and employer’s liability insurance required under Section 12.2.1 and (ii) Commercial Crime insurance
required under Section 12.2.2 and (iii) Employment Practices Liability insurance required under Section 12.2.4 and (iv) at Manager’s
sole cost and expense, the professional liability/errors and omissions insurance required under Section 12.2.7. Except to the extent
caused by Manager’s or its Affiliate’s negligence or willful misconduct, Owner assumes all risks in connection with
the adequacy of any insurance and waives any claim against Manager and its Affiliates for any liability, cost, or expense arising
out of any uninsured or under-insured claim. All insurance for the Hotel that is obtained under Manager’s insurance program
will terminate effective upon Termination. Except as otherwise provided herein, the costs and expense of the insurance required
by the Manager under this Article 12 shall be a Gross Operating Expense or otherwise paid by Owner.

 

12.1       Property
Insurance. Insurance on the Hotel (including the improvements and contents) against loss or damage on an all risk coverage basis
and all other risks covered by the usual standard extended coverage endorsements, insuring against loss or damage from windstorm,
flood, hail and earthquake, all to the extent available on commercially reasonable terms, with deductible limits in an amount not
to exceed $25,000 per occurrence will be procured and maintained by the Owner, provided however with respect to windstorm and earthquake
coverage, providing for a deductible reasonably satisfactory to Owner and Manager, all in an amount which shall be sufficient to
avoid any coinsurance penalty clause application;

 

12.1.1         Insurance
against loss or damage from explosion of boilers, pressure vessels, pressure pipes and sprinklers, to the extent applicable, installed
in the Hotel; and

 

12.1.2         Business
interruption insurance covering net income plus necessary continuing expenses for interruptions caused by any occurrence covered
by the insurance referred to in Section 12.1.1 and 12.1.2, for a period of not less than twelve (12) months commencing at the time
of loss.

 

12.2       Operational
Insurance.

 

12.2.1         Workers’
Compensation and employer’s liability insurance as may be required under Applicable Laws covering all of the Hotel Employees,
with such deductible limits in an amount not to exceed $25,000 and waiver of subrogation in favor of Owner will be procured and
maintained by the Manager.

 

    	Management Agreement - Page 24	 

     

    

 

12.2.2         Fidelity
bonds or insurance, subject to a deductible of not more than $25,000 per loss, covering Manager’s on site Hotel Employees
in job classifications normally bonded in the hotel industry or as otherwise required by law will be procured and maintained by
the Manager. Such coverage shall include a loss payable endorsement in favor of Owner and, to the extent available on commercially
reasonable terms, shall include an extension for third party coverage with an endorsement confirming such extension that protects
Owner’s property, including, without limitation, monies and securities.

 

12.2.3         Commercial
general public liability insurance and excess umbrella liability insurance, including, but not limited to, coverage against claims
for personal injury, death or property damage occurring on, in, or about the Hotel, including, without limitation, innkeeper’s
liability, garage liability, garage keeper’s legal liability, liquor liability and automobile insurance on vehicles operated
in conjunction with the Hotel, as applicable, with single-limit coverage for personal and bodily injury and bodily damage of at
least $1,000,000 per occurrence and $2,000,000 in the aggregate and protection for third party claims will be procured and maintained
by the Owner. Manager and any other party or interest requested by Manager shall be included as an additional named insured under
the coverages required in this subsection.

 

12.2.4         Employment
practices liability insurance with an extension for third party claims will be procured and maintained by the Manager.

 

12.2.5         Umbrella
liability insurance coverage to a limit of not less than $25,000,000 which shall provide excess coverage of all underlying insurances
will be procured and maintained by the Owner.

 

12.2.6         Manager’s
or Manager’s Affiliates’ corporate office professional liability/errors and omissions insurance with a minimum amount
of a $2,000,000 limit of liability, covering financial loss arising from errors and omissions committed in the performance of Hotel
Management services at the Hotel. Such insurance shall provide coverage for claims arising from professional services performed
by Manager for wrongful acts which shall be defined as any actual or alleged negligent act, error or omission, misstatement or
misleading statement or personal injury offense committed by the Manager or by any other person or entity acting on Manager’s
behalf in the performance of or failure to perform professional services. Personal injury offense also means any actual or alleged
false arrest, detention or imprisonment, malicious prosecution, defamation including libel, slander and disparagement, publication
or an utterance in violation of an individual’s right to privacy and invasion of the right to private occupancy, including
wrongful entry or eviction. The cost of this insurance shall be borne by Manager and is not an Operating Expense.

 

12.2.7         Cyber
Liability Insurance, covering privacy liability, data breach, network security, network extortion, and business interruption, against
loss from the failure by the Owner or the Hotel or by an independent contractor for which the Insured is legally responsible (including
Manager) to properly handle, manage, store, destroy or otherwise control any : (i) personal information; (ii) third party corporate
information in any format provided to the Insured, the Hotel or the Manager and specifically identified as confidential and protected
under a nondisclosure agreement or similar contract; (iii) an unintentional violation of the Owner’s, Manager’s or
the Hotel’s privacy policy that results in the violation of any law or regulation with respect to privacy and personal information;
(iv) a failure of computer network security. Such coverage will provide minimum limits of Five Million Dollars ($5,000,000).

 

    	Management Agreement - Page 25	 

     

    

 

12.3       Cost
and Expense. Except as otherwise provided herein, insurance premiums and any costs or expenses respecting the insurance described
in this Article 12 shall be a Gross Operating Expense of the Hotel or otherwise paid by Owner. Premiums on policies for more than
one year shall be charged pro rata over the period of the policies. Any reserves, losses, costs, damages or expenses which are
uninsured, or fall within deductible limits or self-insured retentions, shall be treated as a cost of insurance and shall be a
Gross Operating Expense.

 

12.4       Coverage.
All insurance described in this Article 12 to be obtained by Manager (at Owner’s request) may be obtained by endorsement
or equivalent means under Manager’s blanket insurance policies, provided that such blanket policies substantially fulfill
the requirements specified herein. Deductible limits and self-insured retentions shall be as provided in the blanket policies covering
the hotels leased or managed by Manager. In addition, Manager shall not self-insure or otherwise retain such risks or portions
thereof as it may respecting other hotels it leases or manages. Notwithstanding the foregoing, all insurance policies and coverages
shall be subject to the requirements of all Mortgages and any License Agreement.

 

12.5       Policies
and Endorsements.

 

12.5.1         Where
permitted and as applicable, all insurance provided under this Article 12 shall be carried in the name of Manager. Owner, Fee Owner
and each of their officers, members, partners, shareholders, directors, agents, Affiliates, employees, successors and assigns,
Licensor and the holder of the Mortgage on the Hotel, if any, shall be named as additional insureds on any insurance hereunder
and any losses thereunder shall be payable to the parties as their respective interests may appear. To the extent any insurance
is carried in the name of Owner, Manager and its officers, members, partners, shareholders, directors and employees shall be named
as additional insureds on any such policies and any losses thereunder shall be payable to the parties as their respective interests
may appear. The party procuring such insurance shall deliver to the other party certificates of insurance respecting all policies
so procured, including existing, additional and renewal policies and, in the case of insurance about to expire, shall deliver certificates
of insurance respecting the renewal policies within ten (10) days of the respective expiration dates.

 

12.5.2    All
policies of insurance provided under this Article 12 shall, to the extent obtainable, have attached an endorsement that such policy
shall not be canceled or materially changed without at least thirty (30) days prior notice to Owner, Manager, any Franchisor and
the holder of the Mortgage.12.6         

 

12.6.      Waiver
of Subrogation. Owner and Manager each waive their respective rights of subrogation against each other.

 

    	Management Agreement - Page 26	 

     

    

 

12.7.      Mortgage
Requirements. Insurance shall be maintained in a manner consistent with the terms and conditions of any Mortgage and any conflict
between those terms and conditions and the provisions of this Agreement shall be resolved in favor of the Mortgage.

 

ARTICLE 13

REAL AND PERSONAL PROPERTY TAXES; UTILITIES

 

13.1       Taxes.
Manager shall, on behalf of Owner, pay from the Total Operating Revenues, on or before the dates the same become delinquent, with
the right to pay the same in installments to the extent permitted by law, all real estate taxes, all personal property taxes and
all betterment assessments levied against the Hotel or any of its component parts. Manager shall promptly deliver to Owner all
notices of assessments, valuations and similar documents to be filed by Manager or Owner, which are received from taxing authorities
by Manager. Owner shall have the right to hire property tax consultants or like professionals that reasonably provide economic
benefits to Owner and the costs thereof shall be a part of Gross Operating Expenses. Notwithstanding the foregoing obligations
of Manager, Owner may elect to contest the validity or the amount of any such tax or assessment, provided that such contest does
not materially jeopardize Manager's rights under this Agreement. Manager agrees to cooperate with Owner and execute any documents
or pleadings required for such purpose, provided Owner agrees to reimburse Manager for any out-of-pocket costs occasioned to Manager
by any such contest. At Owner's election, all costs relating to any such contest may be paid from the Operating Account but will
not be included as Gross Operating Expenses.

 

13.2       Utilities,
Etc. Manager shall promptly pay all fuel, gas, light, power, water, sewage, garbage disposal, telephone and other utility bills
currently as required to operate the Hotel from the Total Operating Revenues.

 

ARTICLE 14

USE OF NAME

 

14.1       Name.
During the Term of this Agreement, the Hotel shall at all times be known by the hotel name designated on Schedule I or
by such other name as from time to time may be agreed upon by Owner and Manager. Manager shall not use or employ such name unless
such use fully complies with the terms of the License Agreement, if any.

 

ARTICLE 15

DAMAGE OR DESTRUCTION; CONDEMNATION

 

15.1       Damage
or Destruction. (a) If the Hotel or any portion thereof shall be damaged or destroyed at any time or times during the Term
by fire, casualty or any other cause commonly covered by fire and extended coverage insurance and the cost of repairing such damage
and restoring the Hotel to substantially its condition immediately prior to such damage or destruction, as reasonably estimated
by Owner based upon estimates Owner receives from contractors and other reasonable and customary evidence, will not exceed the
sum of $1,000,000 plus adjustments to reflect increases in the CPI for each Fiscal Year after 2018 exclusive of the cost of the
foundation and footings ("Minimum Cost"), Owner will, at its own cost and expense (subject to Owner's receipt
of insurance proceeds sufficient to pay such costs and expenses) and with due diligence repair and/or restore the Hotel so that
after such repair and/or restoration, the Hotel shall be in substantially the same condition as it was immediately prior to such
damage or destruction.

 

    	Management Agreement - Page 27	 

     

    

 

(b)         If
the cost of such repair and/or restoration will, as so reasonably estimated by Owner, exceed the Minimum Cost, then Owner shall,
within one hundred twenty (120) days after such damage or destruction, elect by notice to Manager either (x) to carry out such
repair and/or restoration, in which case Owner shall complete such repair and/or restoration pursuant to the last sentence of Section
15.1(a) or (y) to terminate this Agreement; should Owner so elect to terminate this Agreement. Upon the termination of this Agreement
pursuant to this paragraph, Operator shall be entitled to a Reinstatement Right for a period of 24 months from the date of termination.

 

(c)         In
the case of damage or destruction which Owner is required by the preceding provisions of this Section 15.1 to repair or restore
or where Owner has not elected under said preceding provisions to terminate this Agreement, Owner shall undertake to so repair
and/or restore such damage or destruction and neither Owner nor Manager shall have a right to terminate this Agreement on account
of such damage or destruction.

 

15.2       Condemnation.
If the whole of the Hotel shall be taken or condemned in any eminent domain, condemnation, compulsory acquisition or like proceeding
by any competent authority or if such a portion thereof shall be taken or condemned as to make it imprudent or unreasonable, in
the sole opinion of Owner, to use the remaining portion as a hotel of the type and class immediately preceding such taking or condemnation,
then the Term shall terminate as of the date title vests in the condemning authority. Manager has no interest in any award paid
to Owner and Manager shall make no claim against the condemnor for any loss to its business as a result of such condemnation or
otherwise. If only a part of the Hotel shall be taken or condemned and the taking or condemnation of such part does not, in the
opinion of Owner, make it unreasonable or imprudent to operate the remainder as a hotel of the type and class immediately preceding
such taking or condemnation, this Agreement shall not terminate, and so much of any award to Owner shall be made available as shall
be reasonably necessary for making alterations or modifications of the Hotel, or any part thereof, so as to make it a satisfactory
architectural unit as a hotel of similar type and class as prior to the taking or condemnation.

 

15.3.      Mortgage
Requirements. Actions as to damage or destruction and condemnation shall be taken only in a manner that is consistent with
the terms and conditions of the Mortgage and any conflict between those terms and conditions and the provisions of this Agreement
shall be resolved in favor of the Mortgage.

 

    	Management Agreement - Page 28	 

     

    

 

ARTICLE 16

EVENTS OF DEFAULT

 

16.1       Manager
Defaults. Subject to the conditions contained in Section 17.3 below, each of the following shall constitute an Event of Default
by Manager:

 

(a)         The
failure of Manager to pay any sum of money to Owner provided for herein when the same is payable, if such failure is not cured
within ten (10) days after written notice specifying such failure is given by Owner to Manager

 

(b)         An
assignment by Manager in violation of the provisions of Article 23 hereof.

 

(c)         If
Manager shall fail to keep, observe or perform any other material covenant, agreement, term or provision of this Agreement to be
kept, observed or performed by Manager and such failure shall continue for a period of thirty (30) days after written notice specifying
such failure given by Owner to Manager, or if Manager due to any act or omission on the part of Manager and without the fault of
Owner, shall fail to maintain the Permits and such failure shall continue for a period of thirty (30) days after written notice
specifying such failure given by Owner to Manager; provided that if such failure is incapable of cure within such thirty (30) day
period, then the cure period shall be extended provided that Manager commenced the cure during such initial thirty (30) day period
and thereafter diligently and continuously pursues the cure thereof to completion.

 

(d)         If
because of any act or omission on the part of Manager, and without the fault of Owner, either (i) the License Agreement or (ii)
any required license for the sale of alcoholic beverages at the Hotel, is at any time suspended, terminated or revoked for a period
of more than thirty (30) consecutive days, provided, however, if, at the end of such thirty (30) day period the cure has not been
effectuated notwithstanding Manager's diligent and continuous attempts to cure, then the cure period shall be extended for an additional
period of ninety (90) days.         

 

(e)         If
Manager shall fail to maintain and operate the Hotel in accordance with the standards required under Section 4.1 and such failure
shall not be due to a refusal on the part of Owner to approve the Annual Plan submitted by Manager under Section 4.4 or Owner's
failure to properly provide funds requested pursuant to the provisions of Article 9 and such failure shall continue for a period
of sixty (60) days after written notice by Owner to Manager specifying the matters or conditions which constitute the basis for
such Event of Default, provided that if such failure is not reasonably capable of cure within such sixty (60) day period, then
the cure period shall be extended provided that Manager commences the cure during such initial sixty (60) day period and thereafter
diligently and continuously pursues the cure thereof to completion.         

 

(f)          If
Manager shall apply for or consent to the appointment of a receiver, trustee or liquidator of Manager or of all or a substantial
part of its assets, admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit
of creditors, take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against
Manager in any bankruptcy, reorganization or judgment or if an order, judgment or decree shall be entered by any court of competition
jurisdiction, on the application of a creditor, adjudicating Manager bankrupt or insolvent or approving a petition seeking reorganization
of Manager or appointing a receiver, trustee or liquidator of Manager or of all or a substantial part of its assets, and such order,
judgment or decree shall continue unstayed and in effect for any period of ninety (90) consecutive days.

 

    	Management Agreement - Page 29	 

     

    

 

(g)         The
filing of a voluntary petition in bankruptcy or insolvency or a petition for liquidation or reorganization under any bankruptcy
law by Manager, or Manager shall consent to, acquiesce in, or fail timely to controvert, an involuntary petition in bankruptcy,
insolvency or an involuntary petition for liquidation or reorganization filed against it.

 

(h)         The
filing against Manager of a petition seeking adjudication of Manager as insolvent or seeking liquidation or reorganization or appointment
of a receiver, trustee or liquidator of all or a substantial part of Manager's assets, if such petition is not dismissed within
ninety (90) days.

 

(i)          Failure
of Manager (but excluding such a failure which results from the failure by Owner to provide the necessary funds therefor) to maintain
at all times throughout the term hereof all of the insurance required to be maintained by Manager under Article 12, if such failure
is not cured within fifteen (15) days after written notice specifying such failure is given by Owner to Manager.

 

(j)          The
fraud, gross negligence, willful misconduct or criminal conduct of or by Manager in connection with the Hotel.

 

16.2       Owner
Defaults. Each of the following shall constitute an Event of Default by Owner:

 

(a)         The
failure of Owner to pay or furnish to Manager any money Owner is required to pay or furnish to Manager in accordance with the terms
hereof on the date the same is payable, if such failure is not cured within five (5) days after written notice specifying such
failure is given by Manager to Owner. If any sum of money is not paid within five (5) days following the date same becomes due
and payable under this Agreement, and Manager has advanced such sum on behalf of Owner, such sum shall bear interest at the Default
Rate from the date Manager advanced such sum on behalf of Owner until the date Owner actually pays such sum. If the failure to
pay relates to the Management Fee, such sum shall bear interest at the Default Rate from the date due until the date actually paid.

 

(b)         If
because of a default under the Mortgage, if any, not caused by the act or omission of Manager, the Mortgage shall be foreclosed,
or the Hotel sold in lieu of foreclosure.

 

(c)         If
Owner shall apply for or consent to the appointment of a receiver, trustee or liquidator of Owner of all or a substantial part
of its assets, or admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of
creditors, take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against
Owner in any bankruptcy, reorganization or insolvency proceeding, or if an order, judgment or decree shall be entered by any court
of competent jurisdiction, on the application of a creditor, adjudicating Owner a bankrupt or insolvent or approving a petition
seeking reorganization of Owner or appointing a receiver, trustee or liquidator of Owner or of all or a substantial part of its
assets, and such order, judgment or decree shall continue unstayed and in effect for any period of ninety (90) consecutive days.

 

    	Management Agreement - Page 30	 

     

    

 

(d)         The
filing of a voluntary petition in bankruptcy or insolvency or a petition for liquidation or reorganization under any bankruptcy
law by Owner, or Owner shall consent to, acquiesce in, or fail timely to controvert, an involuntary petition in bankruptcy, insolvency
or an involuntary petition for liquidation or reorganization filed against it.

 

(e)         The
filing against Owner of a petition seeking adjudication of Owner as insolvent or seeking liquidation or reorganization or appointment
of a receiver, trustee or liquidator of all or a substantial part of Owner's assets, if such petition is not dismissed within ninety
(90) days.

 

(f)          Failure
of Owner to maintain at all times throughout the term hereof all of the insurance required to be maintained by Owner under Article
12, if such failure is not cured within fifteen (15) days after written notice specifying such failure is given by Manager to Owner.

 

(g)         The
failure of Owner to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions set forth in this
Agreement, or the failure of Owner to approve expenditures or to authorize procedures necessary to maintain the standards of the
Hotel in accordance with the Operating Standards, if such failure shall continue for a period of sixty (60) days after written
notice by Manager or Licensor to Owner specifying the matters or conditions which constitute the basis for such Event of Default,
provided that if such failure is incapable of cure within such sixty (60) day period, then the cure period shall be extended provided
that Owner commences the cure during such initial sixty (60) day period and thereafter diligently and continuously pursues the
cure thereof to completion.

 

ARTICLE 17

TERMINATION UPON EVENT OF DEFAULT; OTHER
REMEDIES; OTHER

MANAGER TERMINATION 

 

17.1       Termination.
Upon the occurrence of an Event of Default, in addition to and cumulative of any and all rights and remedies available to the non-defaulting
party under this Agreement, at law or in equity, the non-defaulting party may: (a) terminate this Agreement without penalty, effective
upon receipt of written notice of termination to the defaulting party, provided that termination may be effective immediately in
the case of fraud, gross negligence, willful misconduct, criminal conduct or misappropriation of funds; and (b) pursue any and
all other remedies and damages available to the non-defaulting party at law or in equity. In addition to and cumulative of the
foregoing, upon the occurrence of any Event of Default on the part of Owner, all Management Fees, Reimbursable Expenses and all
other sums payable to Manager under this Agreement shall be immediately due and payable without notice. In no event shall the provisions
of this Agreement with respect to the any allowed termination of this Agreement under certain circumstances be construed as defining
or limiting the amount recoverable by Manager from Owner by reason of any Event of Default on the part of Owner.

 

    	Management Agreement - Page 31	 

     

    

 

17.2       Manager’s
Rights to Perform.

 

(a)         If
Owner shall fail to make any payment or to perform any act required of Owner pursuant to this Agreement, Manager may (but shall
not be obligated to), without further notice to, or demand upon, Owner and without waiving or releasing Owner from any obligations
under this Agreement, make such payment (either with its own funds or with funds withdrawn for such purpose from the Operating
Accounts or the Reserve) or perform such act. All sums so paid by Manager and all necessary incidental costs and expenses incurred
by Manager in connection with the performance of any such act, together with interest thereon at the Default Rate from the date
of making such expenditure by Manager, shall be payable to Manager on demand.

 

(b)         Manager
shall have the right to set-off against any payments to be made to Owner by Manager under any provision of this Agreement and against
all funds from time to time in the Operating Accounts and the Reserve, any and all liabilities of Owner to Manager. Manager may
withdraw from the Operating Accounts and the Reserve from time to time such amounts as Manager deems desirable in partial or full
payment of all or any portion of said liabilities, the amount of such withdrawals to be paid by Owner to Manager on demand and
to be replaced in the respective account and fund.

 

17.3       Excused
Non-Performance. Notwithstanding any contrary provision of this Agreement, Manager shall be excused from the performance of
any obligation hereunder (including the obligation to operate the Hotel in conformity with the Operating Standards), and shall
not be deemed in default, for such period of time as such performance is prevented by a breach of this Agreement by Owner or a
limitation imposed on Manager’s ability to expend funds in respect of the Hotel, due to Owner’s act or Owner’s
failure to act upon Manager’s request for funds or payment of Gross Operating Expenses, including, Working Capital and/or
payroll costs (provided Manager has provided Owner with reasonably timely notice of the need for additional funds and that the
failure to expend or make payment of the same shall reasonably prevent Manager from meeting such obligation).

 

ARTICLE 18

OWNER'S ADDITIONAL TERMINATION RIGHTS

 

18.1       Sale
of the Hotel. If the Hotel is sold or is otherwise disposed of the Hotel any interests therein, to a bona fide third-party
(the "Third-Party Purchaser"), this Agreement will terminate effective upon the consummation of the closing of
such sale. Owner shall provide Manager with written notice of termination of this Agreement not less than sixty (60) days prior
to the scheduled date of closing of the sale of the Hotel, provided, however, if such a sale does not actually occur, the notice
of termination shall be deemed ineffective and no such termination shall occur. Upon such sale, the Manager shall be entitled to
a termination fee equal to the average monthly Base Fees payable hereunder prior to such sale multiplied by 12.

 

18.2       No
Other Termination Right. Except as expressly provided herein, the Owner shall not have any other “without cause”
or similar discretionary right to terminate the Manager hereunder.

 

    	Management Agreement - Page 32	 

     

    

 

ARTICLE 19

INTENTIONALLY OMITTED

 

ARTICLE 20

TRANSFER TO OWNER UPON TERMINATION

 

Upon the termination or
expiration of the Term of this Agreement, whether due to the occurrence of an Event of Default or otherwise, Manager shall cooperate
with Owner and shall execute those documents or instruments reasonably requested by Owner in connection with the transfer or reissue
the Permits, without payment of a fee to Manager, to Owner or its nominee, provided that Manager shall not be required to incur
liability or out of pocket cost in connection with such transfer. Without limiting the generality of the foregoing, Manager shall
cause its officials to execute documents and visit licensing authorities, along with Owner's representatives, in order to expedite
the orderly transfer or reissuance to Owner or its designee of the Permits. Following the termination or expiration of the Term,
Manager will prepare provide a final accounting report in accordance with the provisions set forth in Section 10.2(c) of this Agreement
and in the same manner and scope as previously provided by Manager following prior Fiscal Years under this Agreement. In the event
that Owner requests additional reports or assistance from Manager following the termination or expiration of this Agreement, Owner
shall pay to Manager the such reasonable fees as determined by the Manager through the date on which such additional services or
assistance are to be provided. In the event that this Agreement terminates due to any reason other than a default by Manager under
this Agreement, a sufficient number of Hotel Employees will be hired by Owner or its successor, assign or designee, and retained
for at least 90 days thereafter, so as not to cause a “mass layoff” or “plant closing”, as defined in the
Workers Adjustment and Retraining Act, 29 USC, sec 2101 et seq.

 

ARTICLE 21

NOTICES

 

All notices, elections,
acceptances, demands, consents and reports (collectively "notice") provided for in this Agreement shall be in
writing and shall be given to the other party at the address set forth below or at such other address as any of the parties hereto
may hereafter specify in writing.

 

	To Owner:	PHR TCI OPCO SUB, LLC
	 	1140 Reservoir Avenue
	 	Cranston, RI  02920
	 	Attn: Gregory D. Vickowski

 

    	Management Agreement - Page 33	 

     

    

 

	With
a copy to:	Ron M. Hadar 
	 	General Counsel
	 	Procaccianti Companies
	 	1140 Reservoir Avenue
	 	Cranston, Rhode Island 02920
	 	Telephone:  (401) 946-4600
	 	Email:  rhadar@procaccianti.com
	 	Facsimile:  (401) 943-6320
	 	 
	To Manager:	1140 Reservoir Avenue
	 	Cranston, Rhode Island 02920
	 	Attn:  Elizabeth A. Procaccianti
	 	Telephone:  (401) 946-4600
	 	Facsimile:  (401) 943-6320
	 	 
	 	With copy to:
	 	Natasha Ruane
	 	Corporate Counsel
	 	Procaccianti Companies
	 	1140 Reservoir Avenue
	 	Cranston, Rhode Island 02920
	 	Telephone:  (401) 946-4600
	 	Facsimile:  (401) 943-6320

 

Such notice or other communication may be given
by Federal Express or other nationally recognized overnight carrier or by electronic facsimile in which case notice shall be deemed
given upon confirmed delivery. Notice may be mailed by United States registered or certified mail, return receipt requested, postage
prepaid, deposited in a United States post office or a depository for the receipt of mail regularly maintained by the post office.
If mailed, then such notice or other communication shall be deemed to have been received by the addressee on the fifth (5th)
day following the date of such mailing. Such notices, demands, consents and reports may also be delivered by hand, in which case
it shall be deemed received upon delivery.

 

ARTICLE 22

CONSENT AND APPROVAL

 

Except as herein otherwise
provided, whenever in this Agreement the consent or approval of Manager or Owner is required, such consent or approval shall not
be unreasonably withheld or delayed. Such consent or approval shall also be in writing only and shall be executed only by an authorized
officer or agent of the party granting such consent or approval.

 

    	Management Agreement - Page 34	 

     

    

 

ARTICLE 23

NON-ASSIGNABILITY

 

This Agreement shall not
be assignable by Manager or Owner; provided however, that either party shall be entitled to assign this Agreement to an Affiliate
of such party as part of a modification to such party’s company structure in which all or substantially all of such party’s
assets are transferred to an Affiliate of such party; and Manager shall have the right to assign its rights to receive payments
under this Agreement as security for indebtedness or other obligations. Notwithstanding the foregoing, any “assignment”
by Manager to a successor entity resulting from a merger, acquisition, disposition or consolidation of all or substantially all
of the equity or assets of Manager shall be permitted and not require the consent of Owner hereunder so long as (i) either (A)
the “Manager” under this Agreement remains controlled by at least any two of James A. Procaccianti, Elizabeth A. Procaccianti,
Gregory D. Vickowski, Robert Leven, or Mark Bacon (the “Executive Team”) or, (B) if Manager is itself, or is
controlled by, a corporation whose stock is listed and publicly traded over-the-counter on a nationally recognized stock exchange
in the United States, so long as at least two (2) members of the Executive Team are on the Board of that corporation, (ii) the
assignee continues to comply with all of the obligations of Manager hereunder, (iii) the assignee, in Owner’s good faith
reasonable judgment, has the skill, experience, professional resources and financial ability to perform under this Agreement and
can provide the comparable operating, management and financial reporting functions of Manager under this Agreement consistent with
the Operating Standards, including without limitation providing the Centralized Services and holding the right to use all trademarks
and proprietary information related to the Hotel, and (iv) no such assignment shall cause Owner to be in default under the Franchise
Agreement or under the Mortgage.

 

ARTICLE 24

INDEMNITY

 

24.1       Indemnity
by Manager. To the extent that Owner shall not be fully covered by insurance required to be maintained pursuant to
this Agreement, Manager shall indemnify, defend and hold harmless Owner, any director, officer, agent or officer or any corporate
partner thereof, from and against any damages, loss, liability, cost, action, cause,
claim or expense, including attorneys' fees, arising out of or in connection with the management and operation of the Hotel including,
without limitation, all employment related claims and litigation (collectively, the "Liabilities"). The costs
of such indemnity shall be borne as follows:

 

(a)         If
the Liabilities are attributable to the gross negligence or willful misconduct of the Executive Personnel, the cost thereof shall
be borne solely by Manager and not paid out of Total Operating Revenues.

 

(b)         If
the Liabilities are attributable to any other reason or cause, the cost of such indemnification shall be paid as a Gross Operating
Expense of the Hotel or failing payment of the same, by Owner.

 

Manager's obligations under
this Section 24.1 shall not include any losses, expenses or damages arising from any matters relating to the structural integrity
of the Hotel or other matters relating to defects in design, materials or workmanship in the construction of the Hotel.

 

    	Management Agreement - Page 35	 

     

    

 

24.2       Indemnity
by Owner. To the extent that Manager shall not be fully covered by insurance required to be maintained pursuant to
this Agreement or if, after giving effect to the provisions of Section 24.1(b) of this Agreement, Total Operating Revenues are
not sufficient to pay all Liabilities, Owner shall indemnify, defend and hold harmless Manager and its directors, officers, employees
and agents from and against any damages, loss, liability, cost, action, cause, claim or expense, including attorneys' fees, arising
out of, or incurred in connection with the management and operation of the Hotel.

 

24.3       Survival.
The provisions of this Article 24 shall survive the expiration or earlier termination of this Agreement.

 

ARTICLE 25

PARTIAL INVALIDITY

 

In the event that any one
or more of the phrases, sentences, clauses or paragraphs contained in this Agreement shall be declared invalid by the final and
unappealable order, decree or judgment of any court, this Agreement shall be construed as if such phrases, sentences, clauses or
paragraphs had not been inserted, unless such construction would substantially destroy the benefit of the bargain of this Agreement
to either of the parties hereto.

 

ARTICLE 26

MISCELLANEOUS

 

26.1       Disputes.
Whenever any issue or dispute arises under this Agreement relating to the Annual Operating Budget, the Approved Capital Budget
and or the calculation and payment of the Reserves, and the Management Fee, such issue or dispute shall be resolved utilizing the
Uniform System of Accounts and the by application of GAAP consistently applied.

 

26.2       Further
Assurances. Owner and Manager shall execute and deliver all other appropriate supplemental agreements and other instruments,
and take any other action necessary to make this Agreement fully and legally effective, binding and enforceable as between them
and as against third parties.

 

26.3       Waiver.
The waiver of any of the terms and conditions of this Agreement on any occasion or occasions shall not be deemed a waiver of such
terms and conditions on any future occasion.

 

26.4       Successors
and Assigns. Subject to and limited by Article 23, this Agreement shall be binding upon and inure to the benefit of Owner,
its successors and permitted assigns, and shall be binding upon and inure to the benefit of Manager, its successors and permitted
assigns.

 

26.5       Governing
Law. This Agreement shall be construed, both as to its validity and as to the performance of the parties, in accordance with
the laws of the State of Michigan.

 

    	Management Agreement - Page 36	 

     

    

 

26.6       Compliance
with Mortgage and License Agreement. In carrying out their respective duties and obligations under the terms of this Agreement,
Owner and Manager shall take no action that could reasonably be expected to constitute a material default under any Mortgage or
the License Agreement and will take such actions as are reasonably necessary to comply therewith.

 

26.7       Amendments.
This Agreement may not be modified, amended, surrendered or changed, except by a written document signed by the Owner and Manager
agreeing to be bound thereby.

 

26.8       Estoppel
Certificates. Owner and Manager agree, at any time and from time to time, as requested by the other party, upon not less than
ten (10) days' prior written notice, to execute and deliver to the other a statement certifying that this Agreement is unmodified
and in full force and effect (or if there have been modifications, that the same are in full force and effect as modified and stating
the modifications), certifying the dates to which required payments have been paid, and stating whether or not, to the best knowledge
of the signer, the other party is in default in performance of any of its obligations under this Agreement, and if so, specifying
each such default of which the signer may have knowledge, it being intended that such statement delivered pursuant hereto may be
relied upon by others with whom the party requesting such certificate may be dealing

 

26.9       Unavoidable
Interruptions. Subject to the express limitations set forth in this Agreement and excluding those obligations that accrue prior
to the occurrence of an event of Unavoidable Interruption or obligations that, if not performed, would cause a material adverse
effect on the Hotel or its operations (for instance, the requirement to maintain the Permits or insurance obligations hereunder),
if either party's failure to comply with, perform or satisfy any representation, warranty, covenant, undertaking, obligation or
condition set forth in this Agreement is caused by or due to, in whole or in part, any Unavoidable Interruption, such representation,
warranty, covenant, undertaking, obligation or condition (except regarding insurance coverages and monetary payments) shall be
adjusted to the extent and for so long as such party's failure is caused by or due to, in whole or in part, such Unavoidable Interruption.

 

26.10     Inspection
Rights. Owner shall have the right to inspect the Hotel and examine the books and records of Manager pertaining to the Hotel
at all reasonable times during the Term upon reasonable notice to Manager, and Owner and the holder of any Mortgage shall have
access to the Hotel and the books and records pertaining thereto at all times during the Term to the extent necessary to comply
with the terms of any Mortgage, all to the extent consistent with applicable law and regulations and the rights of guests, tenants
and concessionaires of the Hotel.

 

26.11     Subordination.
This Agreement, any extension hereof and any modification hereof shall be subject and
subordinate to a Mortgage as provided therein. The provisions of this Section shall be self-operative and no further instrument
of subordination shall be required; however, Manager will execute and return to Owner (or to Lender, as designated by Owner) such
documentation as Owner or Lender may reasonably request to evidence the subordination of this Agreement to the Mortgage.

 

    	Management Agreement - Page 37	 

     

    

 

26.12     Effect
of Approval of Plans and Specifications. Owner and Manager agree that in each instance in this Agreement or elsewhere wherein
Manager is required to give its approval of plans, specifications, budgets and/or financing, no such approval shall imply or be
deemed to constitute an opinion by Manager, nor impose upon Manager any responsibility for the design or construction of additions
to or improvements of the Hotel, including but not limited to structural integrity or life/safety requirements or adequacy of budgets
and/or financing. The scope of Manager's review and approval of plans and specifications is limited solely to the adequacy and
relationship of spaces and aesthetics of the Hotel in order to comply with the Operating Standards.

 

26.13     Entire
Agreement. This Agreement constitutes the entire agreement between the parties relating to the subject matter hereof, superseding
all prior agreements or undertakings, oral or written.

 

26.14     Time
is of the Essence. Time is of the essence in this Agreement.

 

26.15     Interpretation.
No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party hereto by any court or
other governmental or judicial authority by reason of such party having or being deemed to have structured or dictated such provision.

 

26.16     Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and need not be signed
by more than one of the parties hereto and all of which shall constitute one and the same agreement.

 

26.17     No
Electronic Transactions. The parties hereby acknowledge and agree that this Agreement shall not be executed, entered into,
altered, amended or modified by electronic means. Without limiting the generality of the foregoing, the parties hereby agree that
the transactions contemplated by this Agreement shall not be conducted by electronic means, except as specifically set forth in
Article 21 of this Agreement.

 

26.18     Prohibited
Persons and Transactions.

 

(a)         Manager
is not, and shall not become, a person or entity with whom U. S. persons or entities are restricted from doing business under regulations
of the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury (including those named in OFAC's
Specially Designated and Blocked Person's List) or under any statute, executive order
(including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, or Support
Terrorism), or other governmental action (such persons and entities being "Prohibited Persons").

 

(b)         Owner
is not and shall not become a Prohibited Person.

 

    	Management Agreement - Page 38	 

     

    

 

26.19     Confidentiality.
Owner and Manager agree to keep the terms and conditions of all leases and other occupancy agreements
in effect at the Hotel (if any) and all other accruements relating to the Hotel, together with all information and data obtained,
possessed, or generated by Manager in connection with the Hotel (collectively, "Privileged Information"),
strictly confidential and not to make any public announcements or any disclosures to any third parties, either orally or in writing,
with respect to any Privileged Information without the express written consent of the other party hereunder; provided, however,
the restrictions imposed hereby shall not apply to any Privileged Information (1) which is required to be disclosed in order
to comply with any law, ordinance, governmental decree or any rule, regulation or decree of any interested governmental body or
(2) which must otherwise be disclosed to relevant third parties, including accountants, attorneys and lenders, in the course
of reasonable and diligent management and operation of the Hotel or the business of Owner, or any subsidiary or Affiliate of Owner
or Manager. If Manager makes such disclosure, it shall notify such third party of this provision and of the requirement of Owner
for confidentiality. The provisions of this Section 26.19 shall survive the expiration or termination of this Agreement for two
(2) years after any termination or expiration of this Agreement.

 

26.20     No
Third Party Rights. This Agreement shall inure solely to the parties hereto. Notwithstanding any other provision of this Agreement,
no third party shall have any rights pursuant to the terms of this Agreement.

 

ARTICLE 27

NO REPRESENTATIONS AS TO INCOME OR FINANCIAL
SUCCESS OF HOTEL

 

In entering into this Agreement,
Manager and Owner acknowledge that neither Owner nor Manager has made any representation to the other regarding projected earnings,
the possibility of future success or any other similar matter respecting the Hotel, and that Manager and Owner understand that
no guarantee is made to the other as to any specific amount of income to be received by Manager or Owner or as to the future financial
success of the Hotel.

 

ARTICLE 28

REPRESENTATIONS OF MANAGER

 

In order to induce Owner
to enter into this Agreement, Manager does hereby make the following representations and warranties:

 

(a)         the
execution of this Agreement is permitted by the certificate of formation and partnership agreement of Manager and this Agreement
has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Manager enforceable
in accordance with the terms hereof;

 

(b)         to
the best knowledge of Manager, there is no claim, litigation, proceeding or governmental investigation pending, or, as far as is
known to Manager, threatened, against or relating to Manager, the properties or business of Manager or the transactions contemplated
by this Agreement which does, or may reasonably be expected to, materially and adversely affect the ability of Manager to enter
into this Agreement or to carry out its obligations hereunder, and to the best knowledge of Manager, there is no basis for any
such claim, litigation, proceedings or governmental investigation, except as has been fully disclosed in writing to Owner; and

 

    	Management Agreement - Page 39	 

     

    

 

(c)         neither
the consummation of the transactions contemplated by this Agreement on the part of Manager or to be performed, nor the fulfillment
of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions
or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which Manager is a party
or by which it is bound.

 

ARTICLE 29

REPRESENTATIONS OF OWNER

 

In order to induce Manager
to enter into this Agreement, Owner does hereby make the following representations and warranties:

 

(a)         the
execution of this Agreement is permitted by the Limited Liability Company Agreement of Owner and this Agreement has been duly authorized,
executed and delivered and constitutes the legal, valid and binding obligation of Owner enforceable in accordance with the terms
hereof;

 

(b)         there
is no claim, litigation, proceeding or governmental investigation pending, or as far as is known to Owner, threatened, against
or relating to Owner, the properties or business of Owner or the transactions contemplated by this Agreement which does, or may
reasonably be expected to, materially and adversely affect the ability of Owner to enter into this Agreement or to carry out its
obligations hereunder, and there is no basis for any such claim, litigation, proceedings or governmental investigation, except
as has been fully disclosed in writing to Manager; and

 

(c)         neither
the consummation of the transactions contemplated by this Agreement by this Agreement on the part of Owner to be performed nor
the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of
the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which
Owner is a party or by which it is bound.

 

ARTICLE 30

DISPUTE RESOLUTION

 

Except as specifically provided in Section
4.4 of this Agreement, Owner and Manager agree that any dispute between the parties related to or arising out of this Agreement
that cannot be amicably settled by the parties hereunder, shall first be submitted for non-binding mediation before resorting to
any litigation, equitable proceeding or other enforcement action. Such mediation shall be held within a twenty-five mile radius
of the Hotel (or such other location mutually agreed by the parties) and the parties shall cooperate in good faith to agree on
a mediator who shall be a retired or semi-retired judge having at least ten (10) years of experience on the bench hearing complex
commercial transactions. If the parties hereto have failed to designate, by a joint written statement, a mediator within thirty
(30) days following the date of a written request therefor by either Manager or Owner to the other, then either Owner or Manager
may notify the local office of the American Arbitration Association ("AAA") or JAMS and request such entity to
select a person to act as the mediator to assist in the resolution of the dispute. The mediation will be a non-binding conference
between the parties conducted in accordance with the applicable rules and procedures of AAA or JAMS (as determined by the mediator).
The compensation of the mediator and all related expenses shall be borne equally by the parties, each of whom shall bear their
own costs, irrespective of the outcome of the mediation. If any dispute remains unresolved between the parties after the mediation
is complete, then either party shall be entitled to pursue its rights and remedies at law or in equity. The provisions of this
Article 30 shall survive the expiration or earlier termination of this Agreement.

 

    	Management Agreement - Page 40	 

     

    

 

ARTICLE 31

ADDITIONAL OBLIGATIONS OF MANAGER

 

Manager acknowledges that
Owner is vitally interested in the qualifications of the individuals designated as the general manager and the director of sales
of the Hotel. Manager shall, from time to time, consult with Owner and obtain Owner's approval as to the appointment of individuals
to such positions; provided, however, Owner and Manager acknowledge that nothing in this Article is intended to limit or negate
the authority of Manager elsewhere provided in this Agreement to remove and replace, in its sole discretion, the Executive Personnel
of the Hotel.

 

ARTICLE 32

TERMINATION OF THE LICENSE AGREEMENT

 

Owner reserves and shall
have the absolute right in its sole and unfettered discretion, at any time and without the consent or approval of (but with notice
to) Manager, to terminate the License Agreement, provided, however, that (i) Owner shall have no such right in order to establish
its own independent operations, such as an operation without a franchise or license or in its own hotel name; (ii) in the event
of such a termination by Owner, Manager shall have the right of approval (which right shall be reasonably exercised) of any new
franchise or license for the Hotel; and (iii) if Owner's decision to terminate the License Agreement is made without the consent
of Manager, then the provisions of Section 18.2 of this Agreement shall no longer apply.

 

ARTICLE 33

RECOURSE

 

Any provision of this Agreement
to the contrary notwithstanding, Manager hereby agrees that no personal, partnership or corporate liability of any kind or character
(including, without limitation, the payment of any judgment) whatsoever now attaches or at any time hereafter under any condition
shall attach to Owner or any of Owner's constituent entities and affiliates or any mortgagee for payment of any amount payable
under this Agreement or for the performance of any obligation under this Agreement. The exclusive remedies of Manager for the failure
of Owner to perform any of its obligations under this Agreement shall be to proceed against the interest of Owner in and to the
Hotel for Manager's actual, out-of-pocket damages (and not any consequential, punitive or exemplary damages), and Owner shall not
be personally liable for any deficiency.

 

    	Management Agreement - Page 41	 

     

    

 

Notwithstanding any other
provision of this Agreement to the contrary, the liability of Manager arising out of or in connection with this Agreement and the
transactions and obligations contemplated hereby shall at all times be limited to the aggregate amount of management fees payable
to Manager under this Agreement during the initial Term (the “Manager’s Liability Cap”), and in any litigation,
arbitration or any other dispute, neither Owner nor any other party shall seek or have recourse to any other asset of Manager’s
members, partners, directors, officers, employees, associates, agents, executives or affiliates. Without limiting the foregoing,
neither Manager nor any party associated with Manager shall have any liability in excess of the Manager’s Liability Cap for
any act by Manager (either prior to or during the Operating Term of or after the expiration or earlier termination of this Agreement);
provided, however, that the Manager Liability Cap shall not apply to any liability of Manager or its Affiliates resulting from
the fraud, gross negligence or willful misconduct of Manager or its Affiliates. Notwithstanding anything contained in this Agreement
to the contrary in no event shall Manager be liable under this Agreement for any consequential, speculative, punitive, treble,
or other special damages.

 

The rest of this page is intentionally left
blank.

 

    	Management Agreement - Page 42	 

     

    

 

IN WITNESS WHEREOF, Owner
has caused this Agreement to be executed and its seal affixed by its partners duly authorized thereunto and Manager has caused
this Agreement to be executed and its seal affixed by its officer duly authorized thereunto, the day and year first above written,
in duplicate.

 

	 	OWNER:
	 	 	 
	 	PHR TCI OPCO SUB, LLC
	 	 	 
	 	By:	/s/ James A. Procaccianti
	 	Name:	James A. Procaccianti
	 	Title:	Authorized Representative
	 	 	 
	 	MANAGER:
	 	 
	 	PHR TRAVERSE CITY HOTEL MANAGER, LLC
	 	 	 
	 	By: 	/s/ James A. Procaccianti
	 	Name:	James A. Procaccianti
	 	Title:	Manager

 

    Signature Page to Management Agreement - Solo Page

     

    

 

SCHEDULE I

 

	Trade Name/Brand of Hotel:	 	Hotel Indigo
	 	 	 
	Physical Address of Hotel:	 	263 W Grandview Pkwy, Traverse City, MI 49684
	 	 	 
	Number of Guest Rooms:	 	107
	 	 	 
	Licensor: 	 	Holiday Hospitality Franchising, LLC
	 	 	 
	Initial Working Capital:	 	$TBD
	 	 	 
	Base Fee:	 	The base fee payable (the "Base Fee") shall be an amount equal to three percent (3.0%) of Total Operating Revenues (which exclude the gross receipts of any licensees, lessees and concessionaires) in respect of any applicable period.
	 	 	 
	Incentive Fee: 	 	None

 

    	Schedules – Page 1	 

     

    

 

SCHEDULE II

Gross Operating Expenses

 

1.1         Gross
Operating Expenses. “Gross Operating Expenses” means, except to the extent excluded below or in the Agreement,
all costs and expenses of operating the Hotel during the Term pursuant to this Agreement attributable to the Accounting Period,
Fiscal Year or portion of a Fiscal Year under consideration including, without limitation, the following:

 

(a)         salaries
and wages of Hotel Employees, including employee benefits, costs of payroll, and payroll and similar taxes but only to the extent
such expenses are attributable to such Hotel Employee’s employment at the Hotel;

 

(b)         costs
incurred with respect to sales and other revenues generated at the Hotel;

 

(c)         the
costs of all utilities and services including, without limitation, heat, air conditioning, water, light and power, local and long
distance telephone service, and data communication and computer services, except as such costs may be appropriately capitalized
in accordance with GAAP;

 

(d)         the
costs of all food and beverages sold or consumed and of all Operating Equipment and Inventories and Consumable Supplies placed
in use, including the sale, consumption and placement in use of Operating Equipment and Supplies initially supplied pursuant to
this Agreement;

 

(e)         the
costs of all other goods and services provided, arranged or obtained by Manager in connection with its operation of the Hotel,
including, without limitation, public utilities charges and the cost of accounting systems, data processing, payroll processing
and telecommunications equipment, office supplies, services performed by third parties and all other supplies, services and hotel
equipment of the nature and type normally used by operators of hotels similar to the Hotel and as is common in the industry, except
as such costs may be appropriately capitalized in accordance with GAAP;

 

(f)          all
costs and fees of any arbitrators, auditors, lawyers and similar persons who perform services required or permitted pursuant to
this Agreement;

 

(g)         all
costs and expenses of technical consultants and specialized operational experts or personnel for services rendered to the Hotel,
except if such costs are incurred in connection with a capital transaction outside of the normal operations of the Hotel;

 

(h)         all
expenses related to marketing of the Hotel;

 

    	Schedules – Page 2	 

     

    

 

(i)          the
costs of maintaining books of account and other records and producing statements pursuant to Article 7 of this Agreement;

 

(j)          the
actual amount of any goods and services or other similar value added taxes imposed by any governmental authority having jurisdiction
and paid as a result of the operations of the Hotel, less any credits with respect to such taxes otherwise granted with respect
to the operations of the Hotel;

 

(k)         reasonable
reserves for bad debts in accordance with GAAP;

 

(l)          any
insurance premiums for insurance obtained by or on behalf of Manager or Owner with respect to the Hotel, except for insurance premiums
for Manager’s or Manager’s Affiliates’ corporate office professional liability/errors and omissions;

 

(m)        any
deposits into any Reserve;

 

(n)         all
Property taxes and any similar taxes, charges and assessments against the Hotel;

 

(o)         any
fees payable under the License Agreement to Licensor;

 

(p)         the
Base Fee and the Centralized Services;

 

(q)         Allocated
Services;

 

(r)         the
cost of non-capital repairs to and maintenance of the Hotel;

 

(s)         all
expenses otherwise contemplated by this Agreement that are to be treated or contemplated to be treated as Gross Operating Expenses;
and

 

(t)          all
expenses reimbursable to Manager pursuant to the terms and conditions of this Agreement.

 

1.2         Exclusions
from Gross Operating Expenses. For purposes of calculating the fees payable pursuant to this Agreement, Operating Expenses
shall not include any of the following:

 

(a)         any
repayments of advances by Manager on account of Capital Expenditures pursuant to this Agreement;

 

(b)         any
payments from the FF&E Reserve, whether principal or interest, relating to capital improvements to or encumbrances with respect
to the Hotel, including, without limitation, any payments relating to expenditures for initial FF&E and replacements or substitutions
therefor or additions thereto;

 

(c)         land
or building rental or mortgage payments;

 

    	Schedules – Page 3	 

     

    

 

(d)         depreciation
and amortization expenses, including costs of capital improvements which are made in accordance with this Agreement;

 

(e)         income,
capital or franchise taxes of a party hereto;

 

(f)          any
Capital Expenditures;

 

(g)         excise,
sales, use and other taxes (including room taxes) or similar charges (i) collected directly from patrons or guests or as part
of the sale price of any goods or services or displays, (ii) remitted to a governmental authority and (iii) excluded
from Gross Revenues;

 

(h)         salaries,
wages, asset management fees or amounts paid to individuals or entities by or upon the instruction of Owner to the extent such
individuals or entities are not under the supervision or direction of Manager;

 

(i)          interest
payable on any credit facility provided to fund working capital; and

 

(j)          expenses
of Owner related to asset management.

 

    	Schedules – Page 4	 

     

    

 

SCHEDULE III

 

Total Operating Revenues

 

1.1         Total
Operating Revenues. “Total Operating Revenues” means, subject to the exclusions provided for herein, all
of the following revenue, income and proceeds resulting from the operation of the Hotel and properly attributable to the Accounting
Period, Fiscal Year or portion of a Fiscal Year under consideration:

 

(a)         Subject
to the provisions below and in the Agreement, all revenues from the rental of guest rooms and suites in the Hotel and all revenues
earned from guests, patrons and other persons occupying space in or using the Hotel, including, without limitation, all revenues
derived from goods sold, food and beverage sales, meetings and other events, parking services, spa, health club or other Hotel
facilities’ use or membership, telephone, cable or access television or internet use and all other services provided in connection
with Hotel activities;

 

(b)         The
net proceeds actually received by Owner of use and occupancy or business interruption insurance with respect to the operation of
the Hotel after deduction from such proceeds of all necessary expenses incurred in the adjustment or collection thereof.

 

1.2         Exclusions
from Total Operating Revenues. For purposes of calculating the fees payable pursuant to this Agreement, Total Operating Revenues
shall not include any of the following:

 

(a)         excise,
sales, use and other similar taxes (including room taxes) or similar charges which are required by Applicable Laws to be collected
directly from patrons or guests or as part of the sale price of any goods or services or displays and which must be remitted to
a governmental authority;

 

(b)         bad
debts arising from Total Operating Revenues, provided that any recovered bad debts shall again become part of Total Operating Revenues
in the Fiscal Year in which they are recovered;

 

(c)         gratuities,
service charges or other similar receipts collected for payment to and paid to Hotel Employees and complimentary food and beverage
bills for Hotel Employees (to the extent that the complimentary food and beverage expenditures do not exceed the amount set forth
in Operating Budget unless Owner’s consent is received with respect to such excess amounts) the and guests;

 

(d)         revenue,
income and proceeds of sales of tenants, licensees and concessionaires;

 

(e)         revenues,
including gains or losses arising from the sale or other disposition of capital assets, including, without limitation, FF&E
no longer required for the operation of the Hotel;

 

    	Schedules – Page 5	 

     

    

 

(f)          proceeds
or awards arising from a taking or condemnation of capital property;

 

(g)         receipts
or credits for settlement of claims for loss or theft of or damage to personal property or furnishings, or any recoveries relating
to a breach of warranty or guaranty, excluding, however, those amounts that are compensation for items that would otherwise be
included in Total Operating Revenues hereunder;

 

(h)         proceeds
from any insurance policy other than the net proceeds actually received by Owner of use and occupancy or business interruption
insurance;

 

(i)          receipts
of a capital nature, including any financing of the Hotel;

 

(j)          Existing
Lease and License Arrangements;

 

(k)         interest,
if any, earned on any FF&E Reserve or on funds invested on behalf of Owner; or

 

(l)          working
capital provided by Owner.

 

    	Schedules – Page 6	 

     

    

 

SCHEDULE IV

Centralized Services

TBD

 

    	Schedules – Page 7	 

     

    

 

EXHIBIT A

 

DESCRIPTION OF PREMISES 

 

     

     

    

 

EXHIBIT B

 

EXAMPLE OF MONTHLY TRANSACTIONS REPORT

 

For
Properties 

As of 6/30/2016

 

	Actual	 	 	%	 	 	Budget	 	 		%	 	 		last Year	 	 	%	 	 	 	 	YTD	 	 	%	 	 	YTD Budget	 	 	%	 	 	YTD Last Year	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SUMMARY OPERATING STATEMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3,060	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	3,060	 	 	 	 	 	 	ROOMS AVAILABLE	 	 	18,564	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	18,462	 	 	 	 	 
	 	0	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	 	 	 	ROOMS SOLD	 	 	0	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	 	 
	 	0.00	%	 	 	 	 	 	 	0.00	%	 	 	 	 	 	 	0.00	%	 	 	 	 	 	OCCUPANCY	 	 	0.00	%	 	 	 	 	 	 	0.00	%	 	 	 	 	 	 	0.00	%	 	 	 	 
	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	ADR	 	 	0.00	 	 	 	 	 	 	 	0
                                         00	 	 	 	 	 	 	 	0.00	 	 	 	 	 
	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	ROOMS RevPAR	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 
	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	TOTAL RevPAR	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OPERATING REVENUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Rooms	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Food and Beverage	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Other Operated Departments	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Miscellaneous Income	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Total Operating Revenue	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	DEPARTMENTAL EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Rooms	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Food and Beverage	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Other Operated Departments	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Total Departmental Expenses	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	TOTAL DEPARTMENTAL PROFIT	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	UNDISTRIBUTED OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Administrative and General	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Information and Telecommunications Systems	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Sales and Marketing	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Property Operation and Maintenance	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Utilities	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Total Undistributed Expenses	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	GROSS OPERATING PROFIT	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	MANAGEMENT FEES	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	INCOME BEFORE NON-OPERATING INCOME AND EXPENSES	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%

 

     

     

    

 

For
Properties 

As of 6/30/2016

 

	Actual	 	 	%	 	 	Budget	 	 	%	 	 	Last Year	 	 	%	 	 		 	YTD	 	 	%	 	 	YTD Budget	 	 	%	 	 	YTD Last Year	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	NON-OPERATING INCOME
    AND EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Income	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Rent	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Property and Other Taxes	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Insurance	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Other	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Total Non-Operating Income & Exp	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
    AND AMORTIZATION 
	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	INTEREST,
    DEPRECIATION & AMORTIZATION	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Interest	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0,00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Depreciation	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Amortization	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Total Interest,
    Depreciation & Amortization	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	TOTAL INCOME BEFORE TAXES	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Income Taxes	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	NET INCOME	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	Capital Expenditure Reserve (memo)	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	NET INCOME LESS CAP EXPENDITURE RESERVE	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%	 	 	0	 	 	 	0.00	%

 

     

     

    

 

EXHIBIT C

COMPETITIVE SET

[TBD]]

 

	STR#	 	Name	 	City, State	 	RoomsExhibit 10.5

 

$17,836,000 TERM LOAN

 

LOAN AGREEMENT

 

among

 

PHR TCI, LLC

(as “Borrower”)

 

and

 

CITIZENS BANK, NATIONAL ASSOCIATION

(as “Agent” and a “Lender”)

 

and

 

the Other Lenders Now

or Hereafter Parties Hereto

 

and

 

CITIZENS BANK, NATIONAL ASSOCIATION

as

 

Sole Lead Arranger and Sole Bookrunner

 

Dated: As of August 15, 2018

 

     

     

    

 

TABLE OF CONTENTS

 

	1. BACKGROUND	1
	 	 
	1.1 General Definitions	1
	 	 
	1.1.1 Defined Terms	1
	1.1.2 Accounting and Other Terms	25
	1.1.3 Certain Matters of Construction	26
	 	 
	1.2 Borrower and Other Loan Parties	26
	 	 
	1.3 Land and Improvements; Property	26
	 	 
	1.4 Use of Loan Proceeds	26
	 	 
	1.5 Loan	26
	 	 
	2. LOAN PROVISIONS	27
	 	 
	2.1 Amount of Loan	27
	 	 
	2.2 Term of Loan; Extension Right	27
	 	 
	2.3 Conditions to Extending Maturity Date	27
	 	 
	2.3.1 Notice From Borrower	27
	2.3.2 No Default	27
	2.3.3 Debt Service Coverage Ratio	27
	2.3.4 LTV Ratio	28
	2.3.5 Conditions Satisfied	28
	2.3.6 Extension Fee	28
	2.3.7 Additional Documents	28
	2.3.8 Required Interest Rate Protection Agreement	28
	2.3.9 Before End of Initial Term	28
	 	 
	2.4 Interest	29
	 	 
	2.4.1 Interest Rate.	29
	2.4.2 Intentionally Omitted	30
	2.4.3 Default Rate	30
	2.4.4 Late Charges	30
	2.4.5 Interest Installments	30
	2.4.6 Recapture of Interest	31
	2.4.7 Maximum Legal Rate	31
	2.4.8 Amendments to Current Law	31
	2.4.9 Liquidated Damages	32
	 	 
	2.5 Principal Repayment	32
	 	 
	2.5.1 Principal Amortization	32
	2.5.2 Intentionally Omitted	32
	2.5.3 Prepayment and Certain Payments	33
	 	 
	2.6 Intentionally Omitted	34

 

    	 	i	 

     

    

 

	2.7 Net Payments	34
	 	 
	2.8 Application of Payments and Collections	34
	 	 
	2.9 Intentionally Omitted	34
	 	 
	2.10 Term of Agreement	34
	 	 
	2.11 Special LIBOR Rate Loan Provisions	34
	 	 
	2.11.1 LIBOR Rate Lending Unlawful	34
	2.11.2 Unavailability of LIBOR Rate	35
	2.11.3 Increased Costs	35
	2.11.4 Increased Capital Costs	36
	2.11.5 Taxes	36
	2.11.6 Interest	37
	2.11.7 Successor LIBOR	37
	 	 
	2.12 Loan Fees	38
	 	 
	2.12.1 Commitment Fee	38
	2.12.2 Extension Fee	38
	 	 
	2.13 Acceleration	38
	 	 
	2.14 The Loan to Constitute One Obligation	38
	 	 
	2.15 Notations	38
	 	 
	2.16 Time of Payments and Prepayments in Immediately Available Funds	39
	 	 
	2.17 Agent Advances	40
	 	 
	3. SECURITY FOR THE LOAN; LOAN AND SECURITY DOCUMENTS	40
	 	 
	3.1 Security	40
	 	 
	3.1.1 Mortgage and Security Agreement	40
	3.1.2 Assignment of Leases and Rents	40
	3.1.3 Pledge and Security Agreement	40
	3.1.4 Intentionally Omitted	41
	3.1.5 Collateral Assignment of Contracts, Licenses and Permits	41
	3.1.6 Guaranty	41
	3.1.7 Assignment of Interest Rate Protection Agreement	41
	3.1.8 Environmental Indemnity Agreement	41
	3.1.9 The other Security Documents	41
	 	 
	3.2 Loan Documents and Security Documents	41
	 	 
	3.3 Termination of Security Interests	42
	 	 
	3.4 Security for Hedging Obligations	42
	 	 
	4. CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES	42
	 	 
	5. LENDERS' CONSULTANTS	42
	 	 
	5.1 Right to Employ	42

 

    	 	ii	 

     

    

 

	5.2 Functions	42
	 	 
	5.3 Payment	43
	 	 
	5.4 Access	43
	 	 
	5.5 No Liability	43
	 	 
	6. LOAN DISBURSEMENT	43
	 	 
	6.1 Request for Loan	43
	 	 
	6.2 Advance of Loan Proceeds	43
	 	 
	7. CONDITIONS PRECEDENT AND CONDITIONS SUBSEQUENT	43
	 	 
	7.1 Conditions Precedent	43
	 	 
	7.1.1 Satisfactory Loan Documents	43
	7.1.2 No Material Change	43
	7.1.3 Warranties and Representations Accurate	44
	7.1.4 Financials and Appraisals	44
	7.1.5 Validity and Sufficiency of Security Documents	44
	7.1.6 No Other Liens; Taxes and Municipal Charges Current	44
	7.1.7 Property Matters	44
	7.1.8 Compliance With Law	45
	7.1.9 Title Insurance; Other Evidence of Perfection	45
	7.1.10 Survey	45
	7.1.11 Condition of Property	45
	7.1.12 No Takings	45
	7.1.13 Insurance	45
	7.1.14 Acquisition Documents	46
	7.1.15 Hazardous Substances	46
	7.1.16 Organizational Documents and Entity Agreements	46
	7.1.17 Votes, Consents and Authorizations	46
	7.1.18 Legal and Other Opinions	46
	7.1.19 Leasing Matters	46
	7.1.20 No Default	47
	7.1.21 Closing Affidavit	47
	7.1.22 Inter-Company Loan Documents	47
	7.1.23 Other Documents	47
	7.1.24 Other Information Concerning the Property	47
	7.1.25 No Proceedings, Etc	47
	7.1.26 Payment of Agent's and Lenders' Fees and Costs	47
	7.1.27 Required Equity Contribution	48
	7.1.28 Required Interest Rate Protection Agreement	48
	7.1.29 Operating Lease Matters	48
	7.1.30 No Operating Lease Default	48
	7.1.31 Proforma Compliance Certificate	48
	7.1.32 Patriot Act; KYC	48
	 	 
	7.3 Conditions Subsequent	49

 

    	 	iii	 

     

    

 

	8. WARRANTIES AND REPRESENTATIONS	49
	 	 
	8.1 Financial Information	49
	 	 
	8.2 No Violations	49
	 	 
	8.3 No Litigation	49
	 	 
	8.4 Operating Lease; Other Leases	49
	 	 
	8.5 Compliance With Legal Requirements	50
	 	 
	8.6 Required Licenses and Permits	50
	 	 
	8.7 Curb Cuts and Utility Connections	50
	 	 
	8.8 Good Title and No Liens	50
	 	 
	8.9 Use of Loan Proceeds	50
	 	 
	8.10 Entity Matters	51
	 	 
	8.10.1 Organization	51
	8.10.2 Ownership and Organizational and Taxpayer Identification Numbers	51
	8.10.3 Authorization	51
	8.10.4 Commercial Organization	51
	8.10.5 Limited Liability Company Agreement	51
	 	 
	8.11 Valid and Binding	51
	 	 
	8.12 Deferred Compensation and ERISA	51
	 	 
	8.13 No Required Consents	52
	 	 
	8.14 No Default	52
	 	 
	8.15 No Broker or Finder	52
	 	 
	8.16 Background Information and Certificates	52
	 	 
	8.17 Taxes and Assessments	52
	 	 
	8.18 Solvency	52
	 	 
	8.19 Other Agreements	52
	 	 
	8.20 No Subsidiaries	53
	 	 
	8.21 Investment Company Act of 1940	53
	 	 
	8.22 Guarantor's Warranties and Representations	53
	 	 
	8.23 Patriot Act	53
	 	 
	8.24 Hotel Management and Franchise Agreement	54
	 	 
	8.25 Reaffirmation and Survival of Representations	54
	 	 
	9. COVENANTS	54
	 	 
	9.1 Compliance Certificate	54

 

    	 	iv	 

     

    

 

	9.2 Financial Statements and Reports	55
	 	 
	9.2.1 Annual Statements	55
	9.2.2 Quarterly Statements	55
	9.2.3 Monthly Reports	56
	9.2.4 Data Requested	56
	9.2.5 Tax Returns	56
	9.2.6 Budgets and Pro Forma	56
	9.2.7 License or Permit Notices	56
	9.2.8 Guarantor's Statements	56
	9.2.9 Additional Information	57
	9.2.11 Reporting Medium	57
	 	 
	9.3 Payment of Taxes and Other Obligations; Tax Escrow Account	57
	 	 
	9.3.1 Payment	57
	9.3.2 Tax Escrow Account	57
	 	 
	9.4 Conduct of Business; Compliance with Law	58
	 	 
	9.5 Insurance	58
	 	 
	9.6 Restrictions on Liens, Transfers and Additional Debt	58
	 	 
	9.6.1 Prohibited Transactions	58
	9.6.2 Permitted Transactions	59
	9.6.3 Permitted Transfers	59
	9.6.4 Permitted Additional Debt	60
	9.6.5 Additional Funds	61
	9.6.6 Right to Accelerate Loan	61
	9.6.7 Required Lenders' Options	61
	 	 
	9.7 Limits on Guaranties; No Improper Distributions	61
	 	 
	9.7.1 No Guaranties	61
	9.7.2 No Improper Distributions	61
	 	 
	9.8 Restrictions on Investments	61
	 	 
	9.9 Indemnification Against Payment of Brokers' Fees	62
	 	 
	9.10 Environmental Indemnity Obligations	62
	 	 
	9.11 No Dissolution, Merger or Acquisition	62
	 	 
	9.12 Contracts of a Material or Significant Nature	62
	 	 
	9.13 Management of the Property	62
	 	 
	9.14 Pay Indebtedness and Perform Obligations	63
	 	 
	9.15 Deposit of Proceeds; Bank Accounts	63
	 	 
	9.16 Place for Records; Inspection	63
	 	 
	9.17 Costs and Expenses	64
	 	 
	9.18 Compliance with Legal Requirements	65

 

    	 	v	 

     

    

 

	9.19 General Indemnity	65
	 	 
	9.20 Leasing Matters	65
	 	 
	Intentionally Omitted	65
	9.20.2 Agent’s Approval Required	65
	9.20.3 Borrower's Requests	66
	9.20.4 Lenders' Response	66
	9.20.5 SNDAs and Estoppels	66
	 	 
	9.21 Intentionally Omitted	67
	 	 
	9.22 Tenant Security Deposits	67
	 	 
	9.23 Audits	67
	 	 
	9.24 Filings	67
	 	 
	9.25 Certain Expenses	67
	 	 
	9.26 Compliance with ERISA	67
	 	 
	9.27 Records and Books	67
	 	 
	9.28 Further Assurances	67
	 	 
	9.29 Borrower Cooperation with Sell Down	68
	 	 
	9.30 Substitute Notes	68
	 	 
	9.31 New Places of Business	68
	 	 
	9.32 New Name or State of Organization; Fictitious Names	68
	 	 
	9.33 Margin Stock	68
	 	 
	9.34 Fiscal Year	68
	 	 
	9.35 No Modification of Inter-Company Loans	68
	 	 
	9.36 Lost Notes, etc	68
	 	 
	9.37 Prohibited Transactions	69
	 	 
	9.38 Accounting Method	69
	 	 
	9.39 Subordinated Indebtedness	69
	 	 
	9.40 Transactions with Affiliates	69
	 	 
	9.41 Construction and Completion	69
	 	 
	9.42 Interest Rate Protection Agreements	69
	 	 
	9.43 Controlled Substances	70
	 	 
	9.44 Updated Appraisals	70
	 	 
	9.45 No Amendment of Limited Liability Company Agreement	70
	 	 
	9.46 License and Permit Transfers	70
	 	 
	9.47 Required Interest Rate Protection Agreement	70

 

    	 	vi	 

     

    

 

	9.48 Certain Operating Lease Covenants	71
	 	 
	9.49 Certain Hotel/Franchise Agreement Covenants	72
	 	 
	10. SPECIAL PROVISIONS	72
	 	 
	10.1 Right to Contest	72
	 	 
	10.1.1 Taxes and Claims by Third Parties	72
	10.1.2 Legal Requirements	73
	 	 
	10.2 Debt Service Coverage Ratio, Cash Reserve Account and Required Principal Payments	73
	 	 
	10.3 Reduction and Release of Repayment Guaranty	76
	 	 
	10.3.1 Repayment Guaranty Reduction	76
	10.3.2 Repayment Guaranty Release	76
	 	 
	10.4 Intentionally Omitted.	77
	 	 
	10.5 Tenant Letters of Credit	77
	 	 
	11. EVENTS OF DEFAULT	78
	 	 
	11.1 Default and Events of Default	78
	 	 
	11.1.1 Generally	78
	11.1.2 Notes, Mortgage and Other Loan Documents	78
	11.1.3 Financial Status and Insolvency	79
	11.1.4 Liens	79
	11.1.5 Breach of Representation or Warranty	79
	11.1.6 Default Under Significant Lease or Material Assigned Contract	79
	11.1.7 Hedging Contracts	80
	11.1.8 Guarantor Default	80
	11.1.10 Judgments	80
	11.1.12 Required Interest Rate Protection Agreement	80
	11.1.13 Operating Lease, Hotel Management Agreement, or Franchise Agreement Default	80
	 	 
	11.2 Grace Periods and Notice	81
	 	 
	11.2.1 No Notice or Grace Period	81
	11.2.2 Nonpayment of Interest and Principal	81
	11.2.3 Other Monetary Defaults	81
	11.2.4 Nonmonetary Defaults and Breaches of Warranties and Representations Capable of Cure	81
	 	 
	11.3 Certain Remedies	82
	 	 
	11.3.1 Accelerate Obligations	82
	11.3.2 Pursue Remedies	82
	 	 
	11.4 Written Waivers	82
	 	 
	12. ADDITIONAL REMEDIES	82

 

    	 	vii	 

     

    

 

	12.1 Remedies	82
	 	 
	12.1.1 Enter and Perform	82
	12.1.2 Discontinue Work	83
	12.1.3 Exercise Rights	83
	12.1.4 Other Actions	83
	 	 
	12.2 Reimbursement	83
	 	 
	12.3 Power of Attorney	83
	 	 
	13. SECURITY INTEREST AND SET OFF	84
	 	 
	13.1 Security Interest and Set-Off	84
	 	 
	13.2 Right to Freeze	84
	 	 
	13.3 Additional Rights	84
	 	 
	14. CASUALTY AND TAKING	84
	 	 
	14.1 Casualty and Obligation To Repair	84
	 	 
	14.2 Adjustment of Claims	85
	 	 
	14.3 Payment and Application of Insurance Proceeds	85
	 	 
	14.4 Conditions To Release of Insurance Proceeds and Condemnation Awards	86
	 	 
	14.5 Taking	86
	 	 
	14.6 Application of Unreleased Proceeds	86
	 	 
	15. THE AGENT AND THE LENDERS	87
	 	 
	15.1 Appointment and Authorization of Agent	87
	 	 
	15.2 Delegation of Duties	88
	 	 
	15.3 Liability of Agent	88
	 	 
	15.4 Reliance by Agent	89
	 	 
	15.5 Notice of Default	89
	 	 
	15.6 Credit Decision; Disclosure of Information by Agent	89
	 	 
	15.7 Indemnification of Agent	90
	 	 
	15.8 Agent in Individual Capacity	91
	 	 
	15.9 Successor Agent	91
	 	 
	15.10 Releases; Acquisition and Transfers of Collateral	91
	 	 
	15.11 Application of Payments	93
	 	 
	15.12 Benefit	93
	 	 
	15.13 Co-Agents; Lead Managers	93
	 	 
	15.14 Respecting Loans and Payments	94

 

    	 	viii	 

     

    

 

	15.14.1 Procedures for Loan Advances	94
	15.14.2 Nature of Obligations of Lenders and Failure of a Lender to Fund	94
	15.14.3 Payments to Agent	95
	15.14.4 Adjustments	95
	15.14.5 Setoff	95
	15.14.6 Distribution by Agent	96
	15.14.7 Defaulting Lender	96
	15.14.8 Holders	98
	 	 
	16. ASSIGNMENT AND PARTICIPATION PROVISIONS AND CERTAIN ADMINISTRATIVE MATTERS	98
	 	 
	16.1 Assignment and Participation Provisions	98
	 	 
	16.1.1 Conditions to Assignment by Lenders	98
	16.1.2 Certain Representations and Warranties; Limitations, Covenants	99
	16.1.3 Register	100
	16.1.4 New Notes	100
	16.1.5 Participations	101
	16.1.6 Disclosure	101
	16.1.7 Miscellaneous Assignment Provisions	101
	16.1.8 Certain Mergers	102
	16.1.9 Tax Forms	102
	 	 
	16.2 Certain Administrative Matters	104
	 	 
	16.2.1 Amendment, Waiver, Consent, Reliance on Agent, Etc	104
	16.2.2 Deemed Consent or Approval	105
	 	 
	16.3 Certain Lender Representations	105
	 	 
	17. GENERAL PROVISIONS	105
	 	 
	17.1 Notices	105
	 	 
	17.1.1 Mode of Delivery	105
	17.1.2 Effectiveness of Facsimile Documents and Signatures	107
	17.1.3 Limited Use of Electronic Mail	107
	17.1.4 Reliance by Agent and Lenders	107
	 	 
	17.2 No Assignment by Borrower	107
	 	 
	17.4 Parties Bound; No Third Party Beneficiaries	108
	 	 
	17.5 Waivers, Extensions and Releases	108
	 	 
	17.6 Governing Law	108
	 	 
	17.6.1 Substantial Relationship	108
	17.6.2 Place of Delivery	108
	17.6.3 Governing Law	108
	17.6.4 Exceptions	109
	 	 
	17.7 Consent to Jurisdiction and Service of Process	110
	 	 
	17.8 JURY TRIAL WAIVER	110

 

    	 	ix	 

     

    

 

	17.9 Survival	111
	 	 
	17.10 Cumulative Rights; No Waiver	111
	 	 
	17.11 Limitations on Claims Against Agent or Lenders	111
	 	 
	17.11.1 Borrower Must Notify	111
	17.11.2 Remedies	111
	17.11.3 Limitations	112
	 	 
	17.12 Obligations Absolute	112
	 	 
	17.13 Table of Contents, Title and Headings	112
	 	 
	17.14 Counterparts; Electronic Communications	112
	 	 
	17.15 Intentionally Omitted	112
	 	 
	17.16 Time of the Essence	112
	 	 
	17.17 Amendments; No Oral Changes, etc	113
	 	 
	17.18 Severability	114
	 	 
	17.19 Cumulative Effect; Conflict of Terms	114
	 	 
	17.20 Agent's or Lenders' Consent	114
	 	 
	17.21 Interpretation; Integration	115
	 	 
	17.22 No Preservation or Marshaling	115
	 	 
	17.23 Waivers by Borrower	115
	 	 
	17.24 Monthly Statements	115
	 	 
	17.25 Recourse Provisions	116
	 	 
	17.25.1 Borrower Fully Liable	116
	17.25.2 Guarantor Liability	116
	17.25.3 Member Liability	116
	17.25.4 Additional Matters	116
	 	 
	17.26 Office of Foreign Asset Control ("OFAC") and Patriot Act Notice	116
	 	 
	17.27 Electronic Transmission of Data	117
	 	 
	17.28 No Advisory or Fiduciary Responsibility	118
	 	 
	17.29 Disclaimer by Agent and Lenders	118
	 	 
	Signatures	 

 

    	 	x	 

     

    

 

Exhibits

 

	Exhibit A	-	Organizational Chart Setting Forth Ownership Interests, Authorized Representatives and Organizational and Taxpayer Identification Numbers
	 	 	 
	Exhibit B	-	Intentionally Omitted
	 	 	 
	Exhibit C	-	Required Property, Hazard and Other Insurance
	 	 	 
	Exhibit D	-	Lenders' Pro Rata Shares and Agent’s and Lenders’ Notice Addresses and Wire Transfer Instructions
	 	 	 
	Exhibit E	-	Form of Assignment and Assumption Agreement
	 	 	 
	Exhibit F	-	Form of Compliance Certificate
	 	 	 
	Exhibit G	-	Conditions Subsequent
	 	 	 
	Exhibit H	 	Approved Capital Expenditures Budget

 

    	 	xi	 

     

    

 

LOAN AGREEMENT

 

This is an agreement
(“Loan Agreement” or “Agreement”) made and entered into as of the 15th day of August, 2018,
by and among (a) PHR TCI, LLC, a Delaware limited liability company, having an address at c/o Procaccianti Companies, 1140 Reservoir
Avenue, Cranston, Rhode Island 02920 (“Borrower”), (b) CITIZENS BANK, NATIONAL ASSOCIATION, a national banking association
organized under the laws of the United States, having an office at One Citizens Plaza, Providence, Rhode Island 02903 (hereinafter
sometimes referred to as “Agent” and sometimes as “Citizens”) as a Lender and in its capacity as Agent
for itself and for each of the other Lenders who are now or who hereafter become parties to this Agreement pursuant to the terms
of Section 16 hereof and (c) all such Lenders.

 

WITNESSETH:

 

1.              BACKGROUND.

 

1.1            General
Definitions.

 

1.1.1           Defined
Terms. When used herein, the following terms shall have the following meanings (terms defined in the singular shall have the
same meaning when used in the plural and vice versa):

 

Acceptable Letter of Credit – shall mean an irrevocable,
transferable standby letter of credit issued for the benefit of Agent, on behalf of the Lenders, by a commercial bank located in
the United States which is acceptable to Agent, in Agent's reasonable discretion, and which letter of credit (a) shall have an
expiration date that is at least ninety-five (95) days after the then current Maturity Date (or applicable Extended Maturity Date)
of the Loan (or, if such letter of credit has an earlier expiration date, such letter of credit shall be extended or replaced by
Borrower at least thirty (30) days prior to the expiration date of the then current letter of credit), (b) may be drawn upon by
Agent by sight draft alone and (c) is otherwise acceptable to Agent in form and content in Agent's reasonable discretion.

 

Acceptable Standards - as defined in the definition of
Environmental Site Assessment.

 

Acquisition Costs - the sum of the net price actually
paid by Borrower to purchase the Property, plus due diligence, closing, legal, financing and other expenses reasonably incurred
and actually paid by Borrower in connection with its purchase of the Property.

 

Adjusted LIBOR Rate - means, relative to a LIBOR Rate
Loan, a rate per annum determined by dividing (x) the LIBOR Rate for such LIBOR Interest Period by (y) a percentage equal to one
hundred percent (100%) minus the LIBOR Reserve Percentage.

 

     

     

    

 

Affiliate - of any Person shall mean any other Person
which, directly or indirectly, Controls or is Controlled by or is under common Control with such first-mentioned Person, or any
individual, in the case of a Person who is an individual, who has a relationship by blood, marriage or adoption to such first-mentioned
Person not more remote than first cousin, and, without limiting the generality of the foregoing, shall include (a) any Person beneficially
owning or holding 51% or more of any class of voting stock or voting partnership interests or voting limited liability company
membership interests or beneficial interests of such first-mentioned Person or (b) any Person of which such first-mentioned Person
owns or holds 51% or more of any class of voting stock or partnership interests or limited liability company membership interests
or beneficial interests.

 

Agent – Citizens or any other Person which is at
the time in question serving as the agent under the terms of Section 15 hereof and the other Loan Documents.

 

Agent Advances – as defined in Section 2.17.

 

Agent’s Office - Agent’s address and, as
appropriate, account as set forth on the Schedule of Lenders, or such other address or account as Agent hereafter may from time
to time notify Borrower and Lenders.

 

Agent-Related Persons - Agent, together with its Affiliates
(including Arranger), and the officers, directors, employees, agents and attorneys-in-fact of Agent and such Affiliates.

 

Aggregate Commitments – the Commitments of all
Lenders.

 

Agreement - as defined in the Preamble.

 

A.M. - a time from and including 12 o'clock midnight
to and excluding 12 o'clock noon on any day using eastern time.

 

Amortization Commencement Date - the 15th
day of August, 2019; provided, however, that upon and following any prepayment of the Loan prior to such date in
accordance with the terms and conditions of Section 2.5.3 hereof, in an amount sufficient to reduce the LTV Ratio (based
on the Approved Appraised Value of the Property as of the date hereof) to equal or less than fifty-five percent (55%) (i.e., such
that the aggregate amount of all prepayments made up to and including such prepayment shall equal the Paydown Amount), the Amortization
Commencement Date shall thereafter be deemed to be the Maturity Date (or, if the Maturity Date has been extended pursuant to the
provisions of this Agreement, the then applicable Extended Maturity Date).

 

Applicable Interest Rate - as defined in Section 2.4.1.

 

Approved Appraised Value - the appraised value of the
Property, less the value of any FF&E located thereon, set forth in the most recent MAI appraisal thereof which has been (a)
prepared at Agent's direction by an appraiser selected by Agent and (b) approved and accepted by Required Lenders prior to the
date hereof or subsequently pursuant to Section 2.3 below; provided, however, until the first (1st) anniversary
of the date hereof, any calculations or ratios (including, without limitation, any LTV Ratio) shall use the Approved Appraised
Value as of the date hereof.

 

    	 	2	 

     

    

 

Approved Lease - as defined in Section 9.20.2.

 

Arranger – means Citizens Bank, National Association,
in its capacity as sole lead arranger and sole bookrunner.

 

Asset Manager - as defined in Section 15.10(b).

 

Assignment and Assumption - as defined in Section
16.1.1.

 

Assignment of Interest Rate Protection Agreement –
as defined in Section 3.1.7.

 

Assignment of Leases and Rents - as defined in Section
3.1.2.

 

Authorized Representatives - as defined in Section
4 and listed on Exhibit A.

 

Bankruptcy Remote Entity - as to the Borrower, such term
shall mean that Borrower (i) is a Single Purpose Entity which owns no assets other than the Property and related assets and (ii)
has no Indebtedness and in the future will not incur any Indebtedness other than obligations in connection with the Loan and Permitted
Additional Debt.

 

Basel III – the global regulatory standards on
bank capital adequacy and liquidity referred to by the Basel Committee on Banking Supervision as “Basel III”
or the “Basel III Framework” published in December 2010 together with any further guidance or standards in relation
to “Basel III” or the “Basel III Framework” published or to be published by said Basel Committee.

 

Beneficial Ownership Certification – means, with
respect to the Borrower, a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation, which
certification shall be in the form required by Agent.

 

Beneficial Ownership Regulation – means 31 C.F.R.
 § 1010.230.

 

Borrower - as defined in the Preamble.

 

Business Day - means:

 

(a)            any
day which is neither a Saturday or Sunday nor a legal holiday on which commercial banks are authorized or required to be closed,
or in fact are closed in the state where Agent’s Office is located (which for purposes of this Agreement is Rhode Island);

 

(b)            when
such term is used to describe a day on which a borrowing, payment, prepayment or repayment is to be made in respect of a LIBOR
Rate Loan, any day which is (i) neither a Saturday or Sunday nor a legal holiday on which commercial banks are authorized or required
to be closed in New York City; and (ii) a London Banking Day; and

 

    	 	3	 

     

    

 

(c)            when
such term is used to describe a day on which an interest rate determination is to be made in respect of a LIBOR Rate Loan, any
day which is a London Banking Day.

 

Calculation Date - each date, from time to time, as of
which any Loan Party’s compliance with its respective financial covenants is being calculated pursuant to the terms of the
Loan Documents, which date shall be (i) the last day of each calendar quarter for purposes of the testing of the Debt Service Coverage
Ratio in accordance with Section 10.2 hereof, and (ii) the last Business Day of such other calendar months as Agent and
Borrower may agree to and with respect to which Agent has received all financial information required by Agent for purposes of
determining the Debt Service Coverage Ratio or Debt Yield.

 

Calculation Period – the twelve (12) month calendar
month period immediately preceding the Calculation Date in question (also referred to as the “trailing twelve-month period”).

 

Capital Reserve Amount – the greater of (i) four
percent (4%) of gross revenues from the Property per annum or (ii) actual capital reserve amounts.

 

Capitalized Lease Obligations - all lease obligations
which have been or should be, in accordance with GAAP, capitalized on the books of the lessee.

 

Cash Collateral – all deposits, credits, collateral
and property of Borrower, now or hereafter in the possession, custody, safekeeping or control of Agent or any Lender or any Affiliate
of Agent or any Lender (including without limitation any Affiliate of Citizens Financial Group, Inc. and its successors and assigns)
or in transit to any of them; which term includes, without limitation, the Cash Reserve Account and the Tax Escrow Account, all
sums deposited in such accounts and any cash collateral pledged to Agent pursuant to any provision of this Agreement or any of
the other Loan Documents.

 

Cash Reserve Account - an interest bearing account which
Borrower is required to establish with Citizens, as depository bank, prior to the first date that any funds are required to be
deposited in such account pursuant to the terms of this Agreement; which account shall be (i) funded and disbursed in accordance
with Section 10.2 and (ii) pledged and assigned to Agent, for the benefit of the Lenders, as additional security for payment,
performance and observance of the Obligations.

 

Casualty - as defined in Section 14.1.

 

CERCLA - the Comprehensive Environmental Response, Compensation,
and Liability Act (42 U.S.C. §9601, et seq.), as amended from time to time, which for purposes of this definition shall
include, without limitation, the Superfund Amendments and Reauthorization Act.

 

    	 	4	 

     

    

 

Change in Law - the occurrence, after the date of this
Agreement, of any of the following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the administration,
interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request,
rule, guideline, or directive (whether or not having the force of Law) by any Governmental Authority; provided that notwithstanding
anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and (y) all requests, rules,
guidelines, or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority), or the United States or foreign regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, or issued.

 

Citizens - as defined in the Preamble.

 

Civil Asset Forfeiture Reform Act - the Civil Asset Forfeiture
Reform Act of 2000 (18 U.S.C. Sections 983 et seq.), as amended from time to time, and any successor statute.

 

Closing Note - the promissory note of even date herewith
issued by Borrower to Agent, as agent for the Lenders, in the stated maximum principal amount of Seventeen Million Eight Hundred
Thirty-Six Thousand and no/100 Dollars ($17,836,000.00); together with any renewals, extensions of modifications thereof and substitutions
therefor.

 

Code - the United States Internal Revenue Code of 1986,
as amended, and all rules and regulations promulgated pursuant thereto, as the same may be amended or supplemented from time to
time.

 

Collateral - as defined in Section 7.1.5.

 

Collateral Assignment of Contracts, Licenses and Permits
 – as defined in Section 3.1.5.

 

Commitment - as defined in Section 1.5.

 

Commitment Fee – as defined in Section 2.12.1.

 

Compliance Certificate - as defined in Section 9.1.

 

Conditions Subsequent - as defined in Section 7.2.

 

Consultant - as defined in Section 5.1.

 

Control - means
the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise. “Controlled by”, “under
common Control with”, “Controlling” and “Controlled” have meanings correlative
thereto.

 

Controlled Substances Act - the Controlled Substances
Act (21 U.S.C. Sections 801 et seq.), as amended from time to time, and any successor statute.

 

Cost to Repair - as defined in Section 14.3.

 

Counterparty – shall mean each counterparty to,
or issuer of, any Interest Rate Protection Agreement other than Borrower or an Affiliate of Borrower.

 

    	 	5	 

     

    

 

Debt Service Coverage Interest Rate - an interest rate
equal to the greatest of (a) the Adjusted LIBOR Rate that is in effect on the Calculation Date in question plus the LIBOR
Rate Margin, or (b) six and three-quarters percent (6.75%) per annum or (c) a rate two and one-half percent (2.5%) in excess of
the Debt Service Coverage Treasury Rate in effect on the Calculation Date in question.

 

Debt Service Coverage Principal Balance - the outstanding
principal balance of the Loan on the Calculation Date.

 

Debt Service Coverage Ratio - (x) the Net Operating Income
divided by (y) the sum of the Debt Service Coverage Principal Balance multiplied by the Debt Service Coverage Interest Rate, plus
an amount equal to the annual principal amortization payments that would be required during the one year period following the Calculation
Date in question with respect to a loan in an amount equal to the Debt Service Coverage Principal Balance, based on a twenty-five
(25) year amortization schedule at an interest rate equal to the Debt Service Coverage Interest Rate then in effect; all as calculated
on and as of the Calculation Date in question.

 

Debt Service Coverage Treasury Rate - as of the Calculation
Date in question, the latest published rate for United States Treasury Notes (but the rate on Treasury Notes issued on a discounted
basis shall be converted to a bond equivalent) as published weekly in the Federal Reserve Statistical Release H.15 (519) of Selected
Interest Rates having a ten (10) year maturity (or the closest thereto) from such Calculation Date.

 

Debt Yield - the Net Operating Income divided by the
Debt Yield Principal Balance.

 

Debt Yield Principal Balance - the outstanding principal
balance of the Loan on any Calculation Date.

 

Default - as defined in Section 11.1.

 

Default Rate - a rate per annum equal to the lesser of:
(i) four (4) percentage points over the Applicable Interest Rate or (ii) the Maximum Legal Rate.

 

    	 	6	 

     

    

 

Defaulting Lender - subject to any provisions hereof
permitting a Defaulting Lender to cure, any Lender that (a) has failed to (i) fund all or any portion of its advances within two
(2) Business Days of the date such advances were required to be funded hereunder unless such Lender notifies Agent and Borrower
in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to advances
(each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has
not been satisfied, or (ii) pay to Agent or any other Lender any other amount required to be paid by it hereunder within two (2)
Business Days of the date when due, (b) has notified Borrower or Agent in writing that it does not intend to comply with its funding
obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s
obligation to fund an advance hereunder and states that such position is based on such Lender’s determination that a condition
precedent to advances (which condition precedent together with any applicable default, shall be specifically identified in such
writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by Agent
or Borrower to confirm in writing to Agent and Borrower that it will comply with its prospective funding obligations hereunder
(provided that such Lender shall cease to be a Defaulting Lender pursuant to this Subsection (c) upon receipt of
such written confirmation by Agent and Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the
subject of a proceeding under any federal, state or local Law, domestic or foreign, as now or hereafter in effect relating to bankruptcy,
insolvency, liquidation, receivership, reorganization, arrangement, composition, extension or adjustment of debts, or any similar
Law affecting the rights of creditors, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its regulatory authority
acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or
acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority
so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within
the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental
Authority) to reject, repudiate, disavow, or disaffirm any contracts or agreements made with such Lender.  Any determination
by Agent that a Lender is a Defaulting Lender under any one or more of Subsections (a) through (d) above shall be conclusive
and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to any provisions hereof
permitting a Defaulting Lender to cure) upon delivery of written notice by Agent of such determination to Borrower and each Lender.

 

Defaulting Lender Amount - the Defaulting Lender’s
Pro Rata Share of a Payment Amount.

 

Defaulting Lender Obligation - as defined in Section
15.14.7.

 

Defaulting Lender Payment Amounts - a Defaulting Lender
Amount plus interest from the date such Defaulting Lender Amount was funded by Agent and/or an Electing Lender, as applicable,
to the date such amount is repaid to Agent and/or such Electing Lender, as applicable, at the rate per annum applicable to such
Defaulting Lender Amount under the Loan or otherwise at the LIBOR Rate.

 

Distributions - with respect to any Person, any dividends,
distributions or payments of any kind whatsoever (whether of cash or other property in any form) made by such Person to or for
the benefit of any direct or indirect holder of any ownership or other beneficial interest in such Person, in any capacity, or
to any Affiliate thereof, including, without limitation, the purchase, redemption, exchange or other retirement by such Person,
directly or indirectly, of any such ownership or other beneficial interest.

 

Dollars and $ - lawful money of the United States.

 

Electing Lender – as defined in Section 15.14.7.

 

Election Notice – as defined in Section 15.14.7.

 

    	 	7	 

     

    

 

Election Period – as defined in Section 15.14.7.

 

Eligible Assignee - shall mean (a) any Lender or any
Affiliate or subsidiary of a Lender, and (b) any other Person consented to as such by the Agent; provided, however, so long as
no Event of Default exists, any such other Person must be a commercial bank, investment fund, financial institution or other institutional
lender which has an office in the United States and which is not subject to United States withholding tax requirements on account
of interest payments made to it by Borrower. Notwithstanding anything contained in this definition of “Eligible Assignee”
to the contrary, under no circumstances shall any Person be an Eligible Assignee if (1) such Person or an Affiliate of such Person
is then actively engaged in any suit, action or other proceeding as a party adverse to Agent or an Affiliate of Agent or (2) such
Person is the Borrower, Guarantor or an Affiliate of Borrower or Guarantor.

 

Environmental Indemnity Agreement – as defined
in Section 9.10.

 

Environmental Indemnity Obligations - as defined in Section
9.10.

 

Environmental Legal Requirements - all federal, state
or local Laws, pertaining to industrial hygiene, environmental conditions or the existence, release, generation, storage or disposal
of any Hazardous Substances, including but not limited to, CERCLA and RCRA.

 

Environmental Site Assessment - an environmental site
assessment report conforming to the standards for Phase I (and, where applicable, Phase II) Environmental Site Assessments in ASTM
Standard Procedures for Environmental Site Assessments, E 1527-00 or other standards reasonably satisfactory to Agent (either of
which is herein called the “Acceptable Standards”), which is in all respects satisfactory to Agent and which
has been prepared by a qualified environmental firm satisfactory to Agent (a) indicating that, on the basis of an investigation
conducted in accordance with the Acceptable Standards, (i) it found no Hazardous Substances present on or in the Property at levels
that require reporting or remediation, or both, pursuant to any Environmental Legal Requirements that are applicable to the Property
(“Prohibited Hazardous Substances”), (ii) it did not learn of any conditions on or in the land adjacent to the
Property that would cause it to believe that there might be Prohibited Hazardous Substances present on or in the Property, and
(iii) no notice of violation of any of the Environmental Legal Requirements, or other claim or order issued pursuant to any Environmental
Legal Requirements, has been duly filed against the Property by any Governmental Authority; or (b) if any Prohibited Hazardous
Substance is present on the Property or if any such notice of violation, claim or order has been filed, providing evidence satisfactory
to Agent as to the extent and nature of the environmental problem caused thereby and the estimated costs, requirements and duration
of any recommended remediation or reporting, or both.

 

ERISA - the Employee Retirement Income Security Act of
1974, as amended, and all rules and regulations from time to time promulgated thereunder.

 

ERISA Plan - as defined in Section 8.12.

 

    	 	8	 

     

    

 

Event of Default - as defined in Section 11.1.

 

Exhibit - means, when followed by a letter, the exhibit
attached to this Agreement bearing that letter and by such reference is fully incorporated in this Agreement.

 

Extended Maturity Date - as defined in Section 2.2.

 

Extended Term - as defined in Section 2.2.

 

Extension Fee - as defined in Section 2.3.6.

 

Extension Notice - as defined in Section 2.3.1.

 

FATCA - Sections 1471 through 1474
of the Code, as in effect on the date of this Agreement (or any amended or successor version that is substantively comparable),
any current or future regulation or published official interpretation thereof, any applicable agreement entered into pursuant to
Section 1471(b)(1) of the Code, and any applicable intergovernmental agreement with respect to the foregoing.

 

Fee Letter – that certain
Fee Letter agreement between Agent and Borrower of even date herewith.

 

FF&E - furniture, furnishings,
fixtures or equipment necessary for the operating of the Property, including, without limitation, any refrigerators, dishwashers,
garbage disposers, washers, dryers and other appliances; light fixtures, awnings, pictures, screens, blinds, shades, curtains,
and curtain rods; televisions and television systems; telephones and telephone systems; computers and computer systems; mirrors,
cabinets, paneling, rugs, and floor and wall coverings; and exercise equipment.

 

First Extended Maturity Date – as defined in Section
2.2.

 

First Extended Term – as defined in Section
2.2.

 

First/Second Extended Term Required DSC Amount - as defined
in Section 10.2.1.

 

Following Business Day Convention - shall mean the convention
for adjusting any relevant date if it would otherwise fall on a day that is not a Business Day. When used in connection with a
date the term, “Following Business Day Convention” shall mean that an adjustment will be made if that date would otherwise
fall on a day that is not a Business Day so that the date will be the first following day that is a Business Day.

 

Foreign Lender – as defined in Section 16.1.9.

 

Franchise Agreement - that certain License Agreement
dated August 15, 2018 between Holiday Hospitality Franchising, LLC, a Delaware limited liability company, as franchisor, and Tenant,
as franchisee, which Franchise Agreement has been collaterally assigned by Tenant to Borrower, pursuant to the Tenant Collateral
Assignment of Contracts, Licenses and Permits.

 

    	 	9	 

     

    

 

Funding Date – the 15th day of August,
2018.

 

GAAP - generally accepted accounting principles in the
United States of America in effect from time to time.

 

Governmental Authority
- the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

 

Gross Income – all actual revenues derived from
the ownership and operation of the Property, including, without limitation, revenues, receipts, income, fees, receivables and accounts
relating to or arising from rentals, rent equivalent income, income and profits from guest rooms, meeting rooms, food and beverage
facilities, recreational facilities (if any), vending machines, telephone and television systems, computer equipment and systems,
communications systems, data processing systems; guest laundry, the provision or sale of other goods and services, and any other
items of revenues, which are earned by Borrower during the Calculation Period in question and, in accordance with the Uniform System
of Accounts, would be classified as income allocable to such Calculation Period; provided however Gross Income shall not include
(i) equity contributions, (ii) Loan Proceeds, (iii) insurance proceeds (except for business interruption insurance proceeds), (iv)
rents and/or other income derived from the Operating Lease, (v) tenant security deposits (unless and until they are applied to
rents), (vi) condemnation awards, (vii) any lease termination payments or liquidated damages, (viii) rentals payable by tenants
who are subject to protection from their creditors (whether as a result of a voluntary or involuntary proceeding) under the United
States Bankruptcy Code or under any similar Law providing for the protection of debtors, (ix) rents payable by tenants who are
more than sixty (60) days overdue in the payment of any rents or other payments due under their respective lease, and (x) any non-recurring
extraordinary amounts received by Borrower during the Calculation Period in question, as reasonably determined by Agent.

 

Guarantor – TH Investment Holdings II, LLC, a Delaware
limited liability company.

 

Guaranty – as defined in Section 3.1.6

 

Hazardous Substances – as such term is defined
in the Environmental Indemnity Agreement:

 

Hedging Contracts - interest rate swap agreements, interest
rate cap agreements and interest rate collar agreements, or any other agreements or arrangements now or hereafter entered into
between the Borrower and Citizens (or another Affiliate of Citizens Financial Group, Inc.) and designed to protect the Borrower
against fluctuations in interest rates or currency exchange rates.

 

Hedging Obligations - with respect to the Borrower, all
liabilities of the Borrower to Citizens (or another Affiliate of Citizens Financial Group, Inc.) under Hedging Contracts.

 

    	 	10	 

     

    

 

Hotel Management Agreement – means that certain
Hotel Management Agreement dated as of August 15, 2018, between Hotel Manager and Tenant, which Hotel Management Agreement has
been collaterally assigned by Tenant to Borrower, pursuant to the Tenant Collateral Assignment of Contracts, Licenses and Permits.

 

Hotel Manager – PHR Traverse City Hotel Manager,
LLC, a Michigan limited liability company, or any management firm which has been retained by Borrower or Tenant to manage the Property
in accordance with the provisions of Section 9.13 hereof.

 

Hotel Taxes – federal, state and municipal excise,
occupancy, sales and use taxes collected by or on behalf of Borrower, Tenant or Hotel Manager directly from customers, patrons
or guests of the Property as part of or based on the sales price of any goods, services or other items, such as gross receipts,
room, admission, cabaret or equivalent taxes and required to be paid to a Governmental Authority.

 

Improper Distributions - other than payments at market
rates for goods and services related to the leasing, management, repair, maintenance and operation of the Property, any payments
or Distributions of any kind whatsoever (whether of cash or property) made by or on behalf of Borrower from any of its assets,
income or profits to or for the benefit of any holder of any direct or indirect ownership interest in Borrower or in any other
Loan Party, or to or for the benefit of any Affiliate of Borrower or any Affiliate of any other Loan Party or any Affiliate of
any other holder of any direct or indirect ownership interest in Borrower or in any other Loan Party, at any time (a) when there
shall exist any Event of Default (i.e., continuing after the expiration of any applicable grace or notice period, if any), or (b)
when there shall be any outstanding amounts of principal or interest that are then owing and actually past due and payable to Lenders
in connection with the Loan, or (c) when Net Cash Flow is required to be deposited in the Cash Reserve Account pursuant to Section
10.2 below.

 

Improvements - as defined in Section 1.3.

 

Indebtedness - as applied to any Person means, without
duplication (a) all items which in accordance with GAAP would be included in determining total liabilities as shown on the liability
side of a balance sheet of such Person on the date as of which Indebtedness is to be determined, including, without limitation,
Capitalized Lease Obligations, (b) all obligations of other Persons which such Person has guaranteed and (c) in the case of Borrower
(without duplication), the Obligations (including any Hedging Obligations).

 

Indemnified Liabilities - as defined in Section 9.19.

 

Indemnified Parties - as defined in Section 9.19.

 

    	 	11	 

     

    

 

Independent Director or Independent Manager –an
individual who has prior experience as an independent director, independent manager or independent member with at least three (3)
years of employment experience and who is provided by CT Corporation, Corporation Service Company, National Registered Agents,
Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or, if none of those companies is then
providing professional Independent Directors, another nationally-recognized company reasonably approved by Agent, in each case
that is not an Affiliate of Borrower and that provides professional Independent Directors and other corporate services in the ordinary
course of its business, and which individual is duly appointed as an Independent Director and is not, and has never been, and will
not while serving as Independent Director be, any of the following:

 

		(i)	a member, partner, equityholder, manager, director, officer or employee of Borrower, or any of its equityholders or Affiliates
(other than as an Independent Director of the Borrower or an Affiliate of Borrower that is not in the direct chain of ownership
of Borrower and that is required by a creditor to be a single purpose bankruptcy remote entity, provided that such Independent
Director is employed by a company that routinely provides professional Independent Directors or managers in the ordinary course
of its business);

		(ii)	a creditor, supplier or service provider (including provider of professional services) to Borrower, or any of its equityholders
or Affiliates (other than a nationally-recognized company that routinely provides professional Independent Directors and other
corporate services to Borrower or any of its Affiliates in the ordinary course of its business);

		(iii)	a family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service
provider; or

		(iv)	a Person that Controls (whether directly, indirectly or otherwise) any of (i), (ii) or (iii) above.

 

A natural person who otherwise satisfies
the foregoing definition and satisfies subparagraph (i) by reason of being the Independent Director of a “special
purpose entity” affiliated with Borrower shall be qualified to serve as an Independent Director of Borrower, provided
that the fees that such individual earns from serving as an Independent Director of affiliates of the Borrower in any given year
constitute in the aggregate less than five percent (5%) of such individual’s annual income for that year.

 

Initial Term - as defined in Section 2.2.

 

Initial Extended Term Required DSC Amount - as defined
in Section 10.2.1.

 

Inter-Company Loans - unsecured loans made to Borrower
by Member, or by any Loan Party, or by any other Affiliate of Borrower or by any Affiliate of any of the foregoing.

 

Interest Payment Date – initially, the 1st day
of September, 2018, and the 1st day of each month thereafter, or if such day falls on a day which Agent is not open, then on the
next Business Day following such date.

 

Interest Rate Protection Agreement – any so-called
interest rate “swap” agreement, interest rate “cap” agreement, interest rate “collar”, or any
other interest rate protection agreement (however denominated) now or hereafter entered into by and between Borrower and any Person,
together with each amendment, extension, modification, replacement or recasting of any one or more of such agreements.

 

    	 	12	 

     

    

 

Investment - the acquisition of any real or tangible
personal property or of any stock or other security, any loan, advance, bank deposit, money market fund, contribution to capital,
extension of credit (except for accounts receivable arising in the ordinary course of business and payable in accordance with customary
terms), or purchase or commitment or option to purchase or otherwise acquire real estate or tangible personal property or stock
or other securities of any party or any part of the business or assets comprising such business, or any part thereof.

 

Land - as defined in Section 1.3.

 

Late Charge - as is defined in Section 2.4.4.

 

Laws – means, collectively, all rules, guidelines,
or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor
or similar authority), or the United States or foreign regulatory authorities, in each case pursuant to Basel III and/or the Dodd-Frank
Wall Street Reform and Consumer Protection Act and all other international, foreign, Federal, state and local statutes, treaties,
rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation
or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof,
and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of law.

 

Legal Requirements - all applicable federal, state, county
and local Laws, rules, and the requirements of any Governmental Authority having or claiming jurisdiction with respect thereto,
including, but not limited to, those applicable to zoning, subdivision, building, health, fire, safety, sanitation, the protection
of the handicapped, and environmental matters and shall also include all orders and directives of any Governmental Authority having
or claiming jurisdiction with respect thereto.

 

Lender – Citizens Bank, National Association, in
its capacity as a Lender, and any other Person that is a signatory hereto under the caption “Lenders” on the signature
pages hereto and any other Person which hereafter becomes a party hereto as a “Lender” pursuant to the terms of Section
16.1, each in their individual capacity, and Lenders means Citizens Bank, National Association, in its capacity as a
Lender, and each such other Person, together with their respective successors and assigns as holders of an interest or interests
in the Loan.

 

Lending Office - as to any Lender, the office or offices
of such Lender described on the Schedule of Lenders, or such other office or offices as such Lender may from time to time notify
Borrower and Agent.

 

LIBOR Breakage Fee - as defined in Section 2.5.3(c).

 

LIBOR Interest Period - means, in the case of a LIBOR
Rate Loan:

 

		(i)	initially, the period beginning on (and including) the Funding Date and ending on (but excluding) the 1st day of September,
2018 (the “Stub Period”); and

 

    	 	13	 

     

    

 

		(ii)	then, the period commencing on (and including) the last day of the Stub Period and ending on (but excluding) the day which
numerically corresponds to such date one month thereafter (or, if such month has no numerically corresponding day, on the last
Business Day of such month); and

 

		(iii)	thereafter, each period commencing on the last day of the next preceding LIBOR Interest Period and ending one month thereafter;

 

provided, however, that

 

		(a)	if the Borrower has or may incur Hedging Obligations with Citizens (or with an Affiliate of Citizens Financial Group, Inc.)
in connection with the Loan, the LIBOR Interest Period shall be of the same duration as the relevant period set under the applicable
Hedging Contract;

 

		(b)	if such LIBOR Interest Period would otherwise end on a day which is not a Business Day, such LIBOR Interest Period shall end
on the next following Business Day unless such day falls in the next calendar month, in which case such LIBOR Interest Period shall
end on the first preceding Business Day; and

 

		(c)	no LIBOR Interest Period may end later than the Maturity Date (or, if applicable, the then applicable Extended Maturity Date).

 

LIBOR Rate - means, relative to any LIBOR Interest Period,
the offered rate for deposits of U.S. Dollars for a term coextensive with the designated LIBOR Interest Period which the ICE Benchmark
Administration (or any successor administrator of LIBOR rates) fixes as its LIBOR rate as of 11:00 a.m. London time on the day
which is two London Banking Days prior to the beginning of such LIBOR Interest Period. If such day is not a London Banking Day,
the LIBOR Rate shall be determined on the next preceding day which is a London Banking Day. If for any reason the Agent cannot
determine such offered rate fixed by the then current administrator of LIBOR rates, the Agent may, in its sole but reasonable discretion,
use an alternative method to select a rate calculated by the Agent to reflect Lenders' cost of funds. Notwithstanding the foregoing,
if the LIBOR Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

LIBOR Rate Loan - means the Loan for the period(s) when
the rate of interest applicable to the Loan is calculated by reference to the LIBOR Rate in the manner set forth herein.

 

LIBOR Rate Margin – as of the closing of the Loan,
the LIBOR Rate Margin shall be three percent (3.0%). Upon and following any prepayment of the Loan, in accordance with the terms
and conditions of Section 2.5.3 hereof, in an amount sufficient to reduce the LTV Ratio (based on the Approved Appraised
Value of the Property) to equal or less than fifty-five percent (55%), the LIBOR Rate Margin shall thereafter be reduced to two
and one-half percent (2.5%).

 

    	 	14	 

     

    

 

LIBOR Reserve Percentage - means, relative to any day
of any LIBOR Interest Period, the maximum aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve
requirements (including all basic, emergency, supplemental, marginal and other reserves and taking into account any transitional
adjustments or other scheduled changes in reserve requirements) under any regulations of the Board of Governors of the Federal
Reserve System (the “Board”) or other Governmental Authority having jurisdiction with respect thereto as issued from
time to time and then applicable to assets or liabilities consisting of “Eurocurrency Liabilities”, as currently defined
in Regulation D of the Board, having a term approximately equal or comparable to such LIBOR Interest Period.

 

LIBOR Scheduled Unavailability Date – as defined
in Section 2.11.7.

 

LIBOR Successor Rate – as defined in Section
2.11.7.

 

LIBOR Successor Rate Conforming Changes – with
respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of LIBOR Interest Period, timing and frequency
of determining rates and making payments of interest and other administrative and yield protection matters as may be appropriate,
in the discretion of Agent, to reflect the implementation of such LIBOR Successor Rate and to permit the administration thereof
by the Agent in a manner substantially consistent with then-prevailing market practice (or, if the Agent determines that implementation
of any portion of such market practice is not administratively feasible or that no market practice for the administration of such
LIBOR Successor Rate exists, in such other manner of administration as the Agent determines in consultation with the Borrower).

 

Licenses and Permits - all licenses, permits, authorizations
and agreements issued by or agreed to by any Governmental Authority, or by a private party pursuant to a Permitted Title Exception
including the Operating Lease, and including, but not limited to, building permits, occupancy permits and such special permits,
variances and other relief as may be required pursuant to Legal Requirements which may be applicable to the Property.

 

Loan - as defined in Section 1.4.

 

Loan Advance - as defined in Section 6.2.

 

Loan Agreement - as defined in the Preamble.

 

Loan Amount - the amount of Loan Proceeds actually advanced
or to be advanced by Lenders.

 

Loan Documents - this Agreement, the Notes, the Environmental
Indemnity Agreement, the Security Documents and the Other Agreements, all as amended, renewed, modified, replaced, extended or
restated from time to time.

 

Loan Party - singly and collectively, Borrower, Member,
Tenant and Guarantor.

 

Loan Proceeds - all outstanding proceeds of the Loan
advanced by Lenders.

 

    	 	15	 

     

    

 

London Banking Day – a day on which dealings in
U.S. Dollar deposits are transacted by and between banks in the London interbank market.

 

LTV Ratio - as determined on any date in connection with
a requested extension of the Maturity Date or, if applicable, the First Extended Maturity Date, Second Extended Maturity Date,
or Third Extended Maturity Date, will be the percentage arrived at by dividing (i) the outstanding principal balance of the Loan
on such date by (ii) the Approved Appraised Value of the Property. After the first (1st) anniversary of the date hereof,
in connection with the determination of the Approved Appraised Value, the Required Lenders shall have the right to require the
preparation of a new appraisal satisfactory to the Required Lenders.

 

MAI - Member of the Appraisers Institute.

 

Material Action – shall mean, with respect to any
Single Purpose Entity, any action to file any insolvency, or reorganization case or proceeding, to institute proceedings to have
such Single Purpose Entity be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law,
to seek any relief under any law relating to relief from debts or the protection of debtors, to consent to the filing or institution
of bankruptcy or insolvency proceedings against such Single Purpose Entity, to file a petition seeking, or consent to, reorganization
or relief with respect to such Single Purpose Entity under any applicable federal or state law relating to bankruptcy or insolvency,
to seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian, or any similar official
of or for such Single Purpose Entity or a substantial part of its property, to make any assignment for the benefit of creditors
of such Single Purpose Entity, to admit in writing such Single Purpose Entity’s inability to pay its debts generally as they
become due as part of a general scheme to induce an involuntary bankruptcy, or to take action in furtherance of any of the foregoing.

 

Material Adverse Effect - shall mean a material adverse
change in, or a material adverse effect upon:

 

(a)          the
condition (financial or otherwise), business, affairs, properties, assets, liabilities (actual or contingent), operations or performance
of Borrower or Guarantor, in each case after giving effect to any related transactions;

 

(b)          the
ability of Borrower or Guarantor to pay, perform or observe any of its respective obligations under any of the Loan Documents or
Other Agreements to which it is a party;

 

(c)          the
validity, perfection or priority of any lien that is granted (or that is intended to be granted) pursuant to any of the Security
Documents;

 

(d)          the
legality, validity, binding effect or enforceability of any of the Loan Documents or on the ability of the Agent and the Lenders
to enforce any of their rights or remedies under any of the Loan Documents;

 

    	 	16	 

     

    

 

(e)          the
ability of Borrower (i) to perform any of its material obligations under the Operating Lease or to enforce the Operating Lease,
or (ii) to cause Tenant to perform any of its material obligations under the Franchise Agreement or to enforce the Franchise Agreement;
or

 

(f)          the
ability of Borrower (i) to perform its obligations under the Operating Lease or (ii) to enforce the Operating Lease; or

 

(g)          the
use, operation, occupancy or value of the Property.

 

Maturity - the Maturity Date, or, if the Maturity Date
has been extended pursuant to the provisions of this Agreement, the then applicable Extended Maturity Date, or in any instance,
upon acceleration of the Loan, if the Loan has been accelerated as a result of the occurrence of an Event of Default.

 

Maturity Date - subject to the Borrower's right to extend
the same on the terms and conditions set forth in Sections 2.2 and 2.3 below, the 15th day of August, 2021, being
the date on which the Notes are due and payable in full.

 

Maximum Commitment – Seventeen Million Eight Hundred
Thirty-Six Thousand and no/100 Dollars ($17,836,000.00).

 

Maximum Legal Rate - on any day, the highest non-usurious
rate of interest permitted by applicable Law on such day, computed on the basis of the actual number of days elapsed over a year
of 360 days.

 

Maximum Loan Amount – as defined in Section
2.1.

 

Member - Procaccianti Hotel REIT, L.P., a Delaware limited
partnership, which is the Sole Member and the Manager of Borrower.

 

Minimum Counterparty Rating – shall mean a credit
rating from Standard & Poor's Rating Services and Fitch, Inc. of a least [“AA”] and from Moody's
Investor Services, Inc. of at least [“A-a2”].

 

Monthly Principal Payment Amount - as defined in Section
2.5.1.

 

Mortgage - as defined in Section 3.1.1.

 

NCF Payment Date – the fifteenth (15th)
day of each calendar month, commencing on the 15th day of the calendar month immediately following the first calendar
month with respect to which Borrower is required to deposit Net Cash Flow in the Cash Reserve Account pursuant to the terms of
Section 10.2 hereof.

 

NCF Period – the calendar month immediately preceding
each NCF Payment Date (e.g., in the case of the January 15, 2020 NCF Payment Date, the applicable NCF Period will be the month
of December, 2019).

 

    	 	17	 

     

    

 

Net Cash Flow - for any NCF Period, (i) all cash (including
all Rents and other revenues of every type and nature, but excluding security deposits) received by Tenant, Borrower or the Hotel
Manager with respect to the ownership and operation of the Property during such NCF Period, minus (ii) all expenses incurred
in the normal course of business with respect to the Property and paid by Tenant, Borrower or the Hotel Manager (or in the case
of expenses that are not paid monthly such as property taxes and insurance, which are accrued) during such NCF Period, minus
(iii) all principal and interest actually paid by Borrower to Agent on account of the Loan during such NCF Period. Notwithstanding
the foregoing, if Borrower is then required to make monthly tax and insurance escrow payments to Agent pursuant to the terms of
Section 9.3.2 below, Borrower shall not pay property taxes or insurance premiums (as applicable) to the applicable taxing
authorities and insurance companies (as applicable) and, for purposes of calculating Net Cash Flow, such amounts shall not be subtracted
under clause (ii) of the preceding sentence. All computations of the items included and deducted in items (i) and (ii) above shall
be completed on a consolidated basis between Borrower and Tenant.

 

Net Cash Flow Statement – a statement (which shall
be in form, substance and detail reasonably satisfactory to Agent and shall be certified by the chief financial officer of the
Borrower or similar officer to be true, accurate and complete in all material respects) setting forth the Net Cash Flow of the
Property for the applicable NCF Period.

 

Net Operating Income - for any Calculation Period, the
Property's Gross Income for such Calculation Period minus the sum of (a) the Property's Operating Expenses for such Calculation
Period plus (b) the Capital Reserve Amount for such Calculation Period.

 

Note - any individual promissory note of Borrower payable
to the order of Agent, as agent for Lenders, or to a Lender and evidencing all or a portion of the Loan, including, without limitation,
the Closing Note, and Notes means all of the Notes, collectively; together with any renewals, extensions or modifications
thereof and substitutions therefor. To the extent that at any time there is only one Note in effect, all references in this Agreement
to the “Notes” shall be deemed to refer to such single Note.

 

Notice of Borrowing - as defined in Section 6.1.

 

NRSF - net rentable square feet.

 

Obligations - all liabilities and obligations of Borrower
to Agent and/or Lenders under and with respect to the Loan, the Notes, this Agreement, any Hedging Contracts and the other Loan
Documents (including, without limitation, the indemnity provisions thereof), and all renewals, increases, extensions, modifications,
rearrangements or restatements thereof, and all other advances, debts, liabilities, obligations, covenants and duties owing, arising,
due or payable from Borrower to Agent and/or Lenders of any kind or nature, present or future, whether or not evidenced by any
note, guaranty or other instrument, arising under or with respect to this Agreement or any of the other Loan Documents, whether
direct or indirect, absolute or contingent, primary or secondary, due or to become due, now existing or hereafter arising. The
term includes, without limitation, all principal, interest, charges, expenses, fees, attorneys' fees and any other sums chargeable
to Borrower under any of the Loan Documents.

 

    	 	18	 

     

    

 

OFAC – the Office of Foreign Assets Control of
the United States Department of the Treasury.

 

Operating Expenses - all expenses of every kind incurred
by Borrower or Tenant in the normal course of business with respect to the ownership, operation, leasing, maintenance and management
of the Property during the Calculation Period in question which, in accordance with accrual basis accounting and GAAP, would be
classified as expenses allocable to such Calculation Period for a similar type of property, including, but not limited to, expenses
for taxes, utilities, insurance, repairs, replacements, maintenance, management fees in an amount equal to the greater of (x) three
percent (3%) of gross revenues from the Property per annum or (y) actual management fees paid (subject to adjustment by Agent in
its reasonable discretion), salaries, advertising expenses, professional fees, wages and utilities, and franchise, technology and
marketing fees in the amount of eight and one-half percent (8.5%) of gross revenues from the Property per annum, but excluding:
(i) any such expenses that are paid directly by tenants pursuant to the terms of Approved Leases, (ii) depreciation, (iii) debt
service (including, if applicable, principal amortization payments) on the Loan, and (iv) any reasonable non-recurring extraordinary
expenses incurred during the Calculation Period in question.

 

Operating Lease – means that certain Amended and
Restated Hotel Lease Agreement by and between Borrower and Tenant with respect to the Property dated as of the date hereof.

 

Other Agreements - any and all agreements, instruments
and documents (other than this Agreement, the Notes and the Security Documents), heretofore, now or hereafter executed by Borrower,
Tenant or Guarantor and delivered to Agent and/or Lenders with respect to the transactions contemplated by this Agreement (including
without limitation any Subordination Agreements and any Hedging Contracts with Citizens or its successors or with any other Affiliate
of Citizens Financial Group, Inc.), together with related documentation, all as amended, renewed, modified, extended or restated
from time to time.

 

Participant Register – as defined in Section
16.1.5.

 

Patriot Act – as defined in Section 17.26.

 

Paydown Amount –the amount of Two Million Seven
Hundred Forty-Four Thousand and no/100 Dollars ($2,744,000.00), being the aggregate prepayment amount required to reduce the LTV
Ratio (based on the Approved Appraised Value of the Property as of the date hereof) to equal or less than fifty-five percent (55%).

 

Payment Amount – a Loan Advance, an unreimbursed
Agent Advance, any unreimbursed Indemnified Liabilities, or any other amount that a Lender is required to fund under this Agreement.

 

Payments - as defined in Section 15.11.

 

    	 	19	 

     

    

 

Permitted Additional Debt - as defined in Section
9.6.4.

 

Permitted Title Exceptions - real estate taxes and other
governmental assessments to the extent that the same are not yet due and payable and such other matters as are (a) referenced in
Exhibit B to the Mortgage or (b) otherwise permitted under the terms of the Loan Documents.

 

Permitted Transactions - as defined in Section 9.6.2.

 

Permitted Transfers - as defined in Section 9.6.3.

 

Person - an individual, sole proprietorship, partnership,
limited liability company, corporation, joint stock company, joint venture, association, estate, trust, business trust or unincorporated
organization, or a Governmental Authority.

 

Pledge and Security Agreement - as defined in Section
3.1.3.

 

P.M. - a time from and including twelve o'clock noon
to and excluding twelve o'clock midnight on any day using eastern time.

 

Prime Rate - a rate per annum equal to the rate of interest
announced by Agent from time to time as its “Prime Rate”. Any change in the Prime Rate shall be effective immediately
from and after such change in the Prime Rate. The Borrower acknowledges that Agent may make loans to its customers above, at or
below the Prime Rate.

 

Prime Rate Loan - any Loan for the period(s) when the
rate of interest applicable to such Loan is calculated by reference to the Prime Rate.

 

Prime Rate Margin - as of the closing of the Loan, the
Prime Rate Margin shall be three percent (3.0%). Upon and following any prepayment of the Loan, in accordance with the terms and
conditions of Section 2.5.3 hereof, in an amount sufficient to reduce the LTV Ratio (based on the Approved Appraised Value
of the Property) to not more than fifty-five percent (55%), the Prime Rate Margin shall thereafter be reduced to two and one-half
percent (2.5%).

 

Principal Repayment Amount - any regularly scheduled
reductions in the outstanding principal of the Loan to be made on any Interest Payment Date.

 

Prohibited Hazardous Substances – as defined in
the definition of Environmental Site Assessment.

 

Prohibited Transaction – any transaction set forth
in Section 406 of ERISA or Section 4975 of the Code for which there is no applicable statutory or regulatory exemption (including
a class exemption or any individual exemption).

 

Property - as defined in Section 1.3.

 

    	 	20	 

     

    

 

Pro Rata Share - means, with respect to each Lender at
any time, a fraction expressed as a percentage, the numerator of which is the amount of the Commitment of such Lender at such time
and the denominator of which is the amount of the Aggregate Commitments at such time or, if the Aggregate Commitments have been
terminated, a fraction (expressed as a percentage, carried out to the thirteenth decimal place), the numerator of which is the
total outstanding amount of all of the Obligations held by such Lender at such time and the denominator of which is the total outstanding
amount of all Obligations at such time. The initial Pro Rata Share of each Lender named on the signature pages hereto is set forth
opposite the name of that Lender on Exhibit D.

 

RCRA - the Resource Conservation and Recovery Act of
1976 (42 U.S.C. §6901, et seq.), as amended from time to time.

 

Register - as defined in Section 16.1.3.

 

Registered Land Surveyor - a land surveyor or engineer
licensed as such in the jurisdiction where the Property is situated.

 

Repair Work - as defined in Section 14.1.

 

Repayment Guaranty Reduction - as defined in Section
10.3.1.

 

Repayment Guaranty Release - as defined in Section
10.3.2.

 

Reportable Event - any of the events set forth in Section
4043(b) of ERISA.

 

Required Equity Contribution - as defined in Section
7.1.27.

 

Required
Interest Rate Protection Agreement – singly and collectively, one or more Interest Rate Protection Agreements issued
by Agent or an Affiliate of Agent or by another Counterparty which is reasonably acceptable to Agent, which Counterparty
has a Minimum Counterparty Rating (except if such Counterparty is Agent or an Affiliate of Agent it shall not be required to have
a Minimum Counterparty Rating), which agreement(s) shall:

 

(a)          be
for a notional amount equal to the Maximum Loan Amount, less the Paydown Amount;

 

(b)          if
such agreement is a cap agreement, provide for strike price of no greater than three percent (3%) per annum;

 

(c)          have
a term which does not expire prior to the Maturity Date or the then applicable Extended Maturity Date;

 

(d)          be
otherwise in form and on terms that are reasonably satisfactory to Agent; and

 

    	 	21	 

     

    

 

(e)          be
pledged and assigned to Agent, for the benefit of the Lenders, as additional security for the payment and performance of the Borrower's
Obligations pursuant to the Assignment of Interest Rate Protection Agreement, which pledge and assignment shall have been acknowledged
and consented to by the Counterparty to such Interest Rate Protection Agreement in form reasonably satisfactory to Agent.

 

In connection with any Required Interest Rate
Protection Agreement, unless Agent, any Lender or any Affiliate of Agent or any Lender is the Counterparty thereunder, Borrower
shall obtain and deliver to Agent an opinion of counsel from counsel for the Counterparty (upon which Agent and Lenders and their
respective successors and assigns may rely) which opinion must be in form and substance reasonably acceptable to Agent.

 

Any Person that at any time obtains a Required
Interest Rate Protection Agreement or any guarantor of such obligor’s obligations in respect of any such Required Interest
Rate Protection Agreement (including but not limited to any general partner of any thereof) is required to be an “eligible
contract participant” as such term is defined in the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from
time to time, and any successor statute.

 

Required Lenders - any Lender or Lenders holding an aggregate
Pro Rata Share of the outstanding principal balance of the Loan in an amount in excess of 66.67% of the total outstanding principal
balance of the Loan (unless there are only two Lenders, in which case Required Lenders shall mean both such Lenders); provided
that the outstanding principal balance of the Loan that is held by any Defaulting Lender shall be excluded for purposes of making
a determination of Required Lenders.

 

Schedule of Lenders - the schedule of Lenders party to
this Agreement as set forth on Exhibit D, as it may be modified from time to time in accordance with this Agreement.

 

Second Extended Maturity Date – as defined in Section
2.2.

 

Second Extended Term – as defined in Section
2.2.

 

Section - when followed by a number, the section or subsection
of this Agreement bearing that number.

 

Security - as defined in Section 3.1.

 

Security Documents - the Mortgage, the Assignment of
Leases and Rents, the Environmental Indemnity Agreement, the Pledge and Security Agreement, the Collateral Assignment of Contracts,
Licenses and Permits, the Tenant Collateral Assignment of Contracts, Licenses and Permits, the Tri-Party Agreement, the Pledge
Agreement Regarding Liquor License, the Subordination of Operating Lease, the Guaranty, the Assignment of Interest Rate Protection
Agreement and associated UCC Financing Statements; and any so-called Blocked Account Control Agreement(s) or Deposit Account Control
Agreement(s); together with any modifications thereof, additions thereto and substitutions therefor.

 

    	 	22	 

     

    

 

Single Purpose Entity - means a limited partnership or
limited liability company which, at all times since its formation and thereafter until the Loan has been repaid in full, (a) was
organized solely for the purpose of owning the Property, (b) has not and will not engage in any business unrelated to the ownership
of the Property, (c) has not and will not have any assets other than those related to the Property, (d) except as otherwise expressly
permitted by the Loan Documents has not and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation,
or merger, (e) will not amend its certificate of limited partnership, certificate of formation, operating agreement or partnership
agreement without the prior written consent of Agent in any manner that (I) violates the single purpose covenants set forth in
this Agreement, or (II) amends, modifies or otherwise changes any provision thereof that by its terms cannot be modified at any
time when the Loan is outstanding or by its terms cannot be modified without Agent’s consent, (f) has not and will not fail
to correct any known misunderstanding regarding the separate identity of such entity, (g) has maintained and will maintain its
accounts, books and records separate from any other Person provided that this clause shall not prohibit or restrict Borrower’s
financial statements from being consolidated with financial statements for Guarantor or any other constituent owner, (h) has not
and will not commingle its funds or assets with those of any other entity, (i) has held and will hold its assets in its own name,
(j) except to the extent that Borrower is, and/or is identified as, a subsidiary or affiliate of Guarantor or any other constituent
owner, has conducted and will conduct its business in its name or under the tradename of the hotel pursuant to the Franchise Agreement,
(k) has paid and will pay its liabilities, including salaries of any employees (if any), out of its own funds and assets, to the
extent there exists sufficient net cash flow from the Property or the Borrower, as applicable, to do so, (l) has observed and will
observe all limited partnership (or, if applicable, limited liability company) formalities, (m) has no Indebtedness other than
Indebtedness which is permitted under the Loan Documents (including without limitation Section 9.6 of this Agreement), (n)
has not and will not assume or guarantee or become obligated for the debts of any other Person other than as expressly permitted
under the Loan Documents, or hold out its credit as being available to satisfy the obligations of any other entity Person, (o)
will not acquire obligations or securities of its members or partners, as applicable, (p) except as provided in the Loan Documents,
has not and will not pledge its assets for the benefit of any other Person, (q) except to the extent that Borrower is, and/or is
identified as, a subsidiary or Affiliate of Guarantor or any other constituent owner, has held and identified itself and will hold
itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of any other
Person, except as may be customary and appropriate with respect to hotel operations pursuant to the Franchise Agreement (r) has
not made and will not make loans to any Person, provided that, for the avoidance of doubt, the provision of any allowance to any
tenant in connection with any Approved Lease of the Property shall not violate this clause (r), (s) except to the extent that Borrower
is, and/or is identified as, a subsidiary or Affiliate of Guarantor or any other constituent owner, has not and will not identify
its members or partners, as applicable, or any Affiliates of any of them, as a division or part of it, (t) has not entered and
will not enter into or be a party to, any transaction with its members or partners or its Affiliates except in the ordinary course
of its business and on terms which are intrinsically fair and are not less favorable to it than would be obtained in a comparable
arms-length transaction with an unrelated third party, (u) with respect to Borrower, if a single member limited liability company,
shall have at least two springing members, one of which, upon the dissolution of such sole member or the withdrawal or the disassociation
of such sole member from Borrower, shall immediately become the sole member of Borrower, and the other of which shall become the
sole member of Borrower if the first such springing member is no longer available to serve as such sole member, and (v) shall at
all times have at least one (1) duly appointed Independent Director or Independent Manager, and shall not, at any time, take any
Material Action without the prior unanimous written consent of all Independent Directors or Independent Managers.

 

    	 	23	 

     

    

 

SNDA Agreement - as defined in Section 9.20.5.

 

Statement - as defined in Section 17.24.

 

Subordination Agreement - a written agreement entered
into by and among Borrower, Agent and the obligee of any Inter-Company Loan which agreement is in form and substance reasonably
satisfactory to the Agent and which provides, inter alia, (a) that such Inter-Company Loan is fully subordinated to the
Loan, (b) that, so long as any of the Obligations are outstanding, such Inter-Company Loan shall not be secured by any lien or
encumbrance on any of Borrower's assets and no claims with respect to such Inter-Company Loan will be asserted in any bankruptcy
proceeding or other creditors' rights proceeding with respect to the Borrower or the Property and (c) that upon the declaration
of any Event of Default, such Inter-Company Loan shall automatically become not payable and not collectible until all of the Obligations
have been satisfied in full and (d) no payments shall be made or accepted on such Inter-Company Loan at any time when Net Cash
Flow is required to be deposited in the Cash Reserve Account pursuant to Section 10.2 below.

 

Subordination of Operating Lease - that certain Subordination,
Assignment and Security Agreement among Borrower, Tenant and Agent, on behalf of itself and the other Lenders, dated of even date
herewith.

 

Substitute Note(s) - as defined in Section 9.30.

 

Survey - current as-built survey of the Property, certified
to Agent by a Registered Land Surveyor, showing all existing Improvements, all easements affecting the Land and the points of access
to the public road upon which the Land fronts and which is otherwise in compliance with Agent's survey requirements previously
delivered to Borrower.

 

Tax Escrow Account - an interest bearing account which
Borrower is required to establish with Agent prior to the first date that any funds are required to be deposited in such account
pursuant to the terms of this Agreement; which account shall be (i) funded and disbursed in accordance with the terms of Article
8 of the Mortgage and Section 9.3 hereof and (ii) pledged and assigned to Agent as additional security for the payment,
performance and observance of the Obligations.

 

Taxes – as defined in Section 2.11.5.

 

Tenant – shall mean PHR TCI OPCO SUB, LLC, a Michigan
limited liability company.

 

    	 	24	 

     

    

 

Tenant Collateral Assignment of Contracts, Licenses and Permits
 – that certain Collateral Assignment and Security Agreement In Respect of Contracts, Licenses and Permits of even date herewith,
executed by Tenant in favor of Borrower.

 

Tenant LC Proceeds – as defined in Section 10.5.2.

 

Tenant Letter of Credit - a letter of credit issued on
behalf of a tenant or other occupant under a lease or other agreement for occupancy of space in the Improvements or on behalf of
a lease guarantor for the benefit of Borrower or Agent as security for the payment and performance by such tenant (or such Lease
guarantor or such other occupant) of its obligations under its respective lease (or lease guaranty) or other agreement.

 

Term - the period commencing on the date of the closing
of the Loan and ending on the Maturity Date, or, if the Maturity Date has been extended pursuant to the provisions of this Agreement,
the then applicable Extended Maturity Date.

 

Third Extended Maturity Date – as defined in Section
2.2.

 

Third Extended Term – as defined in Section
2.2.

 

Third Extended Term Required DSC Amount - as defined
in Section 10.2.1.

 

Tri-Party Agreement - that certain Tri-Party Agreement
among Tenant, Hotel Manager and Agent, on behalf of itself and the other Lenders, dated of even date herewith.

 

UCC - as applicable, the Uniform Commercial Code as in
effect from time to time in the Commonwealth of Massachusetts or any other jurisdiction whose Laws govern the creation, attachment,
perfection or priority of any security interest (including, for this purpose, any collateral assignment or lien) granted or purported
to be granted to or for the benefit of Agent or any Lender pursuant to the Loan Documents, including (but not limited to) any jurisdiction
where Borrower or any of the Collateral is deemed located.

 

UCC Financing Statements – collectively, all financing
statements under the UCC filed or recorded from time to time by or for the benefit of Agent or any Lender in connection with the
Loan.

 

1.1.2           Accounting
and Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP applied on
a consistent basis by the accounting entity to which they refer, and all financial data pursuant to this Agreement shall be prepared
in accordance with such principles. All other terms contained in this Agreement shall have, when the context so indicates, the
meanings provided for by the UCC to the extent the same are used or defined therein. However, if a term is defined in Article 9
of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9 of the UCC.

 

    	 	25	 

     

    

 

1.1.3           Certain
Matters of Construction. The terms “herein”, “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used
shall be deemed to cover all genders. The section titles, table of contents and list of exhibits appear as a matter of convenience
only and shall not affect the interpretation of this Agreement. All references to statutes and related regulations shall include
any amendments of same and any successor statutes and regulations. All references to any instruments or agreements, including,
without limitation, references to any of the Loan Documents, shall include any and all modifications or amendments thereto and
any and all extensions or renewals thereof. A reference to any agreement, budget, document or schedule shall include such agreement,
budget, document or schedule as revised, amended, modified, restated or supplemented from time to time in accordance with its terms
and the terms of this Agreement. The singular includes the plural and the plural includes the singular. A reference to any Person
includes its permitted successors and permitted assigns. The words “include”, “includes” and “including”
are by way of example and are not limiting. The words “approval” and “approved”, as the context so determines,
means an approval in writing given to the party seeking approval after full and fair disclosure to the party giving approval of
all material facts necessary in order to determine whether approval should be granted. Reference to a particular “Section”
refers to that Section of this Agreement unless otherwise indicated.

 

1.2            Borrower
and Other Loan Parties. Borrower is a limited liability company organized under the laws of the State of Delaware of which
the Member is the only manager and only member. The Manager is a limited partnership organized under the laws of the State of
Delaware. Guarantor is a limited liability company organized under the laws of the State of Delaware.

 

1.3            Land
and Improvements; Property. Borrower proposes to acquire that certain parcel of land located in Traverse City, State of Michigan
which is more particularly described in Exhibit A to the Mortgage (“Land”). The Land is presently improved
with an approximately 75,715 NRSF building located at 263 West Grandview Parkway, Traverse City, Grand Traverse County, Michigan
49684 and operated as a 107-room Hotel Indigo (the “Improvements”).
The Land and Improvements are herein collectively called the “Property”.

 

1.4            Use
of Loan Proceeds. Borrower has applied to Agent for a loan of up to Seventeen Million Eight Hundred Thirty-Six Thousand and
no/100 Dollars ($17,836,000.00) (“Loan”), the proceeds of which are to be used, to the extent sufficient therefor:
(a) to pay a portion of the Acquisition Costs of the Property, and (b) to pay certain costs and expenses incurred by Borrower in
connection with the closing the Loan.

 

1.5            Loan.
Subject to all of the terms, conditions and provisions of this Agreement, and of the agreements and instruments referred to herein,
each of the Lenders severally agrees to make such Lender's Pro Rata Share of the Loan to the Borrower (each Lender's “Commitment”).
Borrower agrees to accept and repay the Loan in accordance with the terms hereof. The maximum cumulative amount of all advances
of Loan Proceeds (i.e., regardless of principal payments) shall not exceed the Maximum Loan Amount. Unless sooner terminated in
accordance with the terms of this Agreement, the obligation of each Lender to make Loan Advances hereunder shall commence on the
date of this Agreement and shall terminate on the Commitment Termination Date.

 

    	 	26	 

     

    

 

2.              LOAN
PROVISIONS.

 

2.1            Amount
of Loan. Subject to the terms and conditions of this Agreement and the other Loan Documents, each Lender severally agrees to
advance to Borrower its respective Pro Rata Share of Loan Proceeds in an amount equal to the lesser of (a) sixty-five percent (65%)
of the Approved Appraised Value on an “as stabilized” basis as shown in the MAI appraisal of the Property received
and approved by the Lenders prior to the date of this Agreement, (b) sixty-nine percent (69%) of the Acquisition Costs approved
by Agent, (c) such amount which results in a minimum Debt Yield of ten and one-half percent (10.5%), or (c) the Maximum Commitment
(such lesser amount being herein referred to as the “Maximum Loan Amount”). Based on the foregoing (including the Approved
Appraised Value of the Property as of the date hereof), as of the date hereof, the Maximum Loan Amount is Seventeen Million Eight
Hundred Thirty-Six Thousand and no/100 Dollars ($17,836,000.00).

 

2.2            Term
of Loan; Extension Right. The Loan shall be for a term (the “Initial Term”) commencing on the date hereof and ending
on the Maturity Date. The Initial Term may be extended for a “First Extended Term” ending on the 15th day
of August, 2022 (“First Extended Maturity Date”), the First Extended Term may be further extended for a “Second
Extended Term” ending on the 15th day of August, 2023 (“Second Extended Maturity Date”), and the Second
Extended Term may be further extended for a “Third Extended Term” ending on the 15th day of August, 2024
(“Third Extended Maturity Date”), in each case, upon satisfaction of the conditions set forth in Section 2.3 below.
The First Extended Term, Second Extended Term, and the Third Extended Term are herein singly and collectively referred to as the
 “Extended Term”. The First Extended Maturity Date, the Second Extended Maturity Date, and the Third Extended Maturity
Date are herein singly and collectively referred to as the “Extended Maturity Date”.

 

2.3            Conditions
to Extending Maturity Date. Subject to the satisfaction of each of the following conditions, Borrower, at its option, may elect
to extend the Maturity Date of the Loan until the First Extended Maturity Date and Borrower may thereafter elect to further extend
the First Extended Maturity Date to the Second Extended Maturity Date, and the Second Extended Maturity Date to the Third Extended
Maturity Date:

 

2.3.1           Notice
From Borrower. Borrower shall have given Agent written notice (an “Extension Notice”) of Borrower's request to
exercise its extension right at least forty-five (45) days, but not more than one hundred twenty (120) days, before the Maturity
Date or, in the case of a request for an extension for the Second Extended Term, before the First Extended Maturity Date, or in
the case of a request for an extension for the Third Extended Term, before the Second Extended Maturity Date;

 

2.3.2           No
Default. No Default shall exist;

 

2.3.3           Debt
Service Coverage Ratio. The Debt Service Coverage Ratio shall: (a) in the case of a requested extension for the First Extended
Term, be equal to or greater than 1.35 to 1, and (b) in the case of a requested extension for each of the Second Extended Term
or Third Extended Term, be equal to or greater than 1.40 to 1;

 

    	 	27	 

     

    

 

2.3.4           LTV
Ratio. The LTV Ratio (based on the then “as is” Approved Appraised Value of the Property) shall be less than sixty-five
percent (65%);

 

2.3.5           Conditions
Satisfied. All of the conditions set forth in Section 7 of this Agreement, to the extent applicable, shall continue to be satisfied;

 

2.3.6           Extension
Fee. (a) In the case of a requested extension for the First Extended Term, an extension fee in an amount equal to 0.1% of the
then outstanding Loan Proceeds shall have been paid to the Agent, for the pro rata account of each Lender, on or prior to the Maturity
Date, and (b) in the case of a requested extension for the Second Extended Term or Third Extended Term, an additional extension
fee in an amount equal to 0.2% of the then outstanding Loan Proceeds shall have been paid to Agent, for the pro rata account of
each Lender, on or prior to the First Extended Maturity Date or Second Extended Maturity Date, as applicable (any extension fee
that is payable pursuant to this Section 2.3.6 is referred to in this Agreement as an “Extension Fee”);

 

2.3.7           Additional
Documents. Borrower shall have executed and/or delivered to Agent and Lenders such agreements and documents and furnished to
Agent and Lenders such additional information as Agent or the Required Lenders may require in their commercially reasonable discretion
incident to the extension, including, without limitation, evidence satisfactory to Agent that the Hotel Management Agreement, Franchise
Agreement, and any licenses, management or other agreements with respect to food and beverage service and parking are in full force
and effect; and

 

2.3.8           Required
Interest Rate Protection Agreement. Borrower shall have delivered to Agent a Required Interest Rate Protection Agreement having
a term which does not expire prior to the then applicable Extended Maturity Date; and

 

2.3.9           Before
End of Initial Term. Each of the foregoing conditions shall be satisfied on the date of receipt of Borrower’s notice
under Section 2.3.1 (other than the condition described in Section 2.3.6, which shall be required to be satisfied
on or prior to the Maturity Date or on or prior to the First Extended Maturity Date or Second Extended Maturity Date, as applicable),
and on the Maturity Date, and, in the case of a request for an extension for the Second Extended Term or Third Extended Term, on
the First Extended Maturity Date and Second Extended Maturity Date, as applicable.

 

Within thirty (30) days following receipt
by Agent of any Extension Notice, Agent shall notify Borrower in writing as to what other documents, information or certificates
are required to be provided by Borrower to Agent pursuant to Section 2.3.7, above. In connection with the calculation of
the LTV Ratio, unless waived by all Lenders, a new MAI appraisal of the Property shall be required, which appraisal must be in
all respects satisfactory to the Required Lenders. Borrower shall pay all costs incurred in connection with obtaining any such
new appraisal of the Property.

 

    	 	28	 

     

    

 

If all of the conditions to extension have
been satisfied, other than the conditions imposed under Section 2.3.3 and/or Section 2.3.4 above, then Borrower shall
be entitled to satisfy such conditions by making a principal payment not later than fifteen (15) days prior to the Maturity Date
(or, if applicable, not later than fifteen (15) days prior to the First Extended Maturity Date or the Second Extended Maturity
Date) in such amount as would be required (as reasonably determined by Agent) to satisfy both of such conditions, subject to Borrower
having given Agent written notice of its intention to make such principal payment not later than thirty (30) days prior to the
Maturity Date (or, if applicable, the First Extended Maturity Date or Second Extended Maturity Date).

 

If all of the conditions to extension have
been satisfied, other than payment of the then applicable Extension Fee, Agent shall so notify Borrower and, upon Agent's receipt
of the then applicable Extension Fee for the pro rata account of Lenders not later than thirty (30) days prior to the Maturity
Date, or, in the case of any request for an extension to the Second Extended Maturity Date or Third Extended Maturity Date, not
later than thirty (30) days prior to the First Extended Maturity Date or Second Extended Maturity Date, as applicable, so long
as no Default exists, the Loan Term shall be extended until the applicable Extended Maturity Date.

 

2.4           Interest.

 

2.4.1           Interest
Rate.

 

(a)           Interest
Provisions.  Interest on the outstanding principal balance of the Loan shall accrue as (i) a LIBOR Rate Loan or (ii)
if applicable pursuant to Section 2.4.1(b) or Section 2.11, a Prime Rate Loan. Interest on the outstanding principal
amount of the Loan, when classified as a: (i) LIBOR Rate Loan, shall accrue during each LIBOR Interest Period at a rate per annum
equal to the sum of the Adjusted LIBOR Rate for such LIBOR Interest Period plus the applicable LIBOR Rate Margin, and shall be
due and payable on each Interest Payment Date and on the Maturity Date, and (ii) Prime Rate Loan, shall accrue at a rate per annum
equal to the sum of the Prime Rate plus the applicable Prime Rate Margin, and shall be due and payable on each Interest Payment
Date and on the Maturity Date. Interest shall be calculated for the actual number of days elapsed on the basis of a 360-day year,
including the first date of the applicable period to, but not including, the date of repayment.

 

The “Applicable Interest Rate”
shall be the rate for a LIBOR Rate Loan except to the extent otherwise provided in this Agreement, in which case the Applicable
Interest Rate shall be the rate for a Prime Rate Loan.

 

For so long as LIBOR Rate Loans are available
pursuant to the terms of this Agreement, only LIBOR Rate Loans shall be permitted. During any period that LIBOR Rate Loans are
not available pursuant to the terms of this Agreement, the entire outstanding principal amount of the Loan shall be a Prime Rate
Loan. Borrower shall have no right to elect to have any of the outstanding principal amount of the Loan be a Prime Rate Loan.

 

    	 	29	 

     

    

 

(b)           Automatic
Rollover of LIBOR Rate Loan. Upon the expiration of a LIBOR Interest Period, the LIBOR Rate Loan shall automatically be continued
as a LIBOR Rate Loan at the then applicable Adjusted LIBOR Rate plus the applicable LIBOR Rate Margin and in an amount equal to
the principal amount of the expiring LIBOR Rate Loan less any Principal Repayment Amount made by Borrower; provided, however, that
no portion of the outstanding principal amount of a LIBOR Rate Loan may be continued as a LIBOR Rate Loan when any Event of Default
has occurred and is continuing. If any Event of Default has occurred and is continuing (if the Required Lenders do not otherwise
elect to exercise any right to accelerate the Loan hereunder), the LIBOR Rate Loan shall automatically be continued as a Prime
Rate Loan on the first day of the next Interest Period.

 

2.4.2           Intentionally
Omitted.

 

2.4.3           Default
Rate. Notwithstanding anything to the contrary set forth in this Agreement, from and after the occurrence of an Event of Default
and during the continuation thereof (whether or not Agent has accelerated payment of the Loan) and from and after the Maturity
Date (or, if Borrower has elected and qualified for an extension of the initial Maturity Date in accordance with Section 2.3
above, from and after the then applicable Extended Maturity Date), the outstanding principal balance of all Obligations (including
all unpaid installments of interest under the Note) shall bear interest, calculated daily (computed on the actual days elapsed
over a year of 360 days), at the Default Rate.

 

2.4.4           Late
Charges. In the event that any regularly scheduled monthly payment of interest or principal and interest (excluding, for the
avoidance of doubt, any principal payment due at Maturity), shall not be received by Agent within ten (10) days after the date
such payment is due, Agent shall have the right, at its sole option and without notice to the Borrower, such notice being expressly
waived hereby, to assess the Borrower a late payment charge (“Late Charge”) in the amount of five percent (5%) for
each Dollar ($1.00) of such overdue monthly installment, which shall become immediately due and payable to Agent, for the pro rata
benefit of Lenders, as agreed compensation to Lenders for the additional costs and expenses reasonably expected to be incurred
by Lenders by reason of such nonpayment, such as in contacting the Borrower and arranging for and processing remedial payment.
The Borrower acknowledges that the exact amount of such costs and expenses may be difficult, if not impossible, to determine with
certainty, and further acknowledges and confesses the amount of such charge to be a consciously considered, good faith estimate
of the actual damage to Lenders by reason of such default. The payment of such Late Charge shall be secured by the Security Documents,
shall be payable on demand, but in any event not later than the due date of the next regularly scheduled monthly payment hereunder,
and shall apply only to monthly installments due and payable hereunder prior to any acceleration by Agent of the Obligations evidenced
hereby. Whether or not expressed, this election shall not impair the Lenders’ further right to interest on the unpaid amount
at the Default Rate from the date such payment was due through the date of actual payment.

 

2.4.5           Interest
Installments. All accrued, but unpaid, interest on the Notes shall be due and payable, in arrears, on each Interest Payment
Date, as applicable, and on the Maturity Date (or, if applicable, the applicable Extended Maturity Date). Notwithstanding anything
to the contrary set forth in the Notes, Borrower shall pay all such interest to Agent for the pro rata account of each Lender.

 

    	 	30	 

     

    

 

2.4.6           Recapture
of Interest. Notwithstanding the foregoing, if at any time the amount of interest to be paid by Borrower would exceed the Maximum
Legal Rate, then the interest payable under this Agreement shall be computed upon the basis of the Maximum Legal Rate, but any
subsequent reduction in the Applicable Interest Rate shall not reduce such interest thereafter payable hereunder below the amount
computed on the basis of the Maximum Legal Rate until the aggregate amount of such interest accrued and payable under this Agreement
equals the total amount of interest which would have accrued if such interest had been at all times computed solely on the basis
of the Applicable Interest Rate.

 

2.4.7           Maximum
Legal Rate. All agreements between Borrower, Guarantor, Agent and Lenders are hereby expressly limited so that in no contingency
or event whatsoever, whether by reason of acceleration of maturity of the Obligations or otherwise, shall the amount paid or agreed
to be paid to Agent or Lenders for the use or the forbearance of the Indebtedness evidenced by the Notes exceed the Maximum Legal
Rate. As used herein, the Maximum Legal Rate shall mean the Maximum Legal Rate in effect as of the date hereof; provided, however,
in the event that there is a change in the Maximum Legal Rate which results in a higher permissible rate of interest, then the
Maximum Legal Rate shall be governed by such new Law as of its effective date. In this regard, it is expressly agreed that it is
the intent of Borrower, Agent and Lenders in the execution, delivery and acceptance of this Agreement and the Notes to contract
in strict compliance with the Laws of the Commonwealth of Massachusetts from time to time in effect. If, under or from any circumstances
whatsoever, fulfillment of any provision hereof or of any of the other Loan Documents at the time of performance of such provision
shall be due, shall involve transcending the limit of such validity prescribed by applicable Law, then the obligation to be fulfilled
shall automatically be reduced to the limits of such validity, and if under or from any circumstances whatsoever Agent or any Lender
should ever receive as interest any amount which would exceed the Maximum Legal Rate, such amount which would be excessive interest
shall be applied to the reduction of the principal balance of the Obligations and not to the payment of interest. This provision
shall control every other provision of all agreements between Borrower, Guarantor, Agent and Lenders.

 

2.4.8           Amendments
to Current Law. If the interest that is payable hereunder has been limited by applicable state or federal Law and the applicable
state or federal Law is amended in the future to allow a greater rate of interest to be charged under this Agreement or the other
Loan Documents than is presently allowed by applicable state or federal Law, then the limitation of interest hereunder shall be
increased to the lesser of (a) the true contract rate, or (b) maximum rate of interest allowed by applicable state or federal Law
as amended, which increase shall be effective hereunder on the effective date of such amendment.

 

    	 	31	 

     

    

 

2.4.9           Liquidated
Damages. Borrower acknowledges that the occurrence of any Event of Default will (a) require Agent and Lenders to incur additional
expenses in servicing and administering the Loan and (b) result in loss to Agent and Lenders of the use of the money due and impede
Agent and Lenders in meeting their other financial and loan commitments. Borrower further acknowledges that the damages caused
thereby will be extremely difficult and impractical to ascertain. Accordingly, Borrower agrees that any Late Charge and/or interest
at the Default Rate imposed on Borrower under this Agreement represent the reasonable estimate by Agent, Lenders and Borrower of
a fair compensation for the loss that may be sustained by Agent and Lenders due to the failure of Borrower to make timely payments
and further agrees that both the imposition of the Late Charge and the accrual of interest at the Default Rate constitute a reasonable
estimate of the damages to Agent and Lenders resulting from the Event of Default, regardless of whether there has been acceleration
of the Loan.

 

2.5           Principal
Repayment.

 

2.5.1           Principal
Amortization. Except as may be required pursuant to Sections 10.2 and 14, no principal amortization will be required
prior to the Amortization Commencement Date. Thereafter, in addition to any principal payments that may be required pursuant to
Section 10.2, commencing on the first Interest Payment Date immediately following the Amortization Commencement Date (provided
that the Amortization Commencement Date has not been extended to Maturity, in accordance with the terms and conditions set forth
in the definition of “Amortization Commencement Date”) and continuing on each Interest Payment Date thereafter including,
if the Maturity Date is extended pursuant to Section 2.2 and Section 2.3, during any Extended Term, Borrower shall
make a principal payment to Agent, for the pro rata benefit of each Lender, in an amount equal to the hereinafter defined “Monthly
Principal Payment Amount”. The Monthly Principal Payment Amount is defined as an amount equal to Thirty Five Thousand and
no/100 Dollars ($35,000.00) per month. Monthly installments of interest on the Loan shall be payable in full concurrently with
such monthly principal payments. In any event, if not sooner paid, the entire outstanding principal balance of the Loan, together
with all accrued and unpaid interest and all fees, expenses and other amounts that are payable pursuant to the terms of the Loan
Documents, shall be due and payable in full at Maturity. Notwithstanding the foregoing, upon and following any prepayment of the
Loan in accordance with the terms and conditions of Section 2.5.3 hereof, in an amount sufficient to reduce the LTV Ratio
(based on the Approved Appraised Value of the Property as of the date hereof) to equal or less than fifty-five percent (55%), as
set forth in the definition of “Amortization Commencement Date”, commencing on the first Interest Payment Date immediately
following the date of such prepayment, Borrower’s monthly payments hereunder and/or under any Note shall revert to payments
of interest only, and no further principal amortization will be required hereunder and/or under any Note until the Maturity Date
(or, if the Maturity Date has been extended pursuant to the provisions of this Agreement, the then applicable Extended Maturity
Date).

 

2.5.2            Intentionally
Omitted.

 

    	 	32	 

     

    

 

2.5.3           Prepayment
and Certain Payments.

 

(a)           Prepayment
Notice and Terms. The Loan may be prepaid in whole or in part at any time (in a minimum principal amount of $100,000, except
in the case of any prepayments made pursuant to Section 10.2 which shall be in the amount required thereunder), upon at
least three (3) Business Days prior written notice to Agent (which notice may be subsequently withdrawn by Borrower in writing
as long as (i) such withdrawal is delivered to Agent at least three (3) Business Days prior to the scheduled prepayment date or,
if a scheduled sale or refinancing of the Property fails to close due to failure to satisfy any closing conditions or buyer default
that occurs after the commencement of such three (3) day period, such withdrawal notice is delivered to Agent prior to or on the
scheduled prepayment date and (ii) Borrower reimburses Agent for any costs and expenses actually incurred by Agent, including actual
and reasonable attorneys' fees and expenses, in connection with preparing for the scheduled prepayment), provided that Borrower
shall be obligated to pay any LIBOR Breakage Fees associated with prepayment of any outstanding principal of the Loan accruing
interest based on a LIBOR Rate, and, in the event that Borrower has entered into any Hedging Contracts, Borrower shall be obligated
to pay any fees or penalties pursuant to such agreements evidencing the same.

 

(b)           Voluntary
Prepayment of LIBOR Rate Loans. LIBOR Rate Loans may be prepaid upon the terms and conditions set forth herein. For LIBOR Rate
Loans in connection with which the Borrower has or may incur Hedging Obligations, additional obligations may be associated with
prepayment, in accordance with the terms and conditions of the applicable Hedging Contracts. The Borrower shall give the Agent,
no later than 10:00 A.M., eastern time, at least three (3) Business Days' notice of any proposed prepayment of any LIBOR Rate Loans
(which notice may be subsequently withdrawn by Borrower in writing as long as (i) such withdrawal is delivered to Agent at least
three (3) Business Days prior to the scheduled prepayment date or, if a scheduled sale of the Property fails to close due to failure
to satisfy any closing conditions or buyer default that occurs after the commencement of such three (3) day period, such withdrawal
notice is delivered to Agent prior to or on the scheduled prepayment date and (ii) Borrower reimburses Agent for any costs and
expenses actually incurred by Agent, including actual and reasonable attorneys' fees and expenses, in connection with preparing
for the scheduled prepayment), specifying the proposed date of payment of such LIBOR Rate Loans, and the principal amount to be
paid. Each partial prepayment of the principal amount of LIBOR Rate Loans shall be in an integral multiple of $100,000 and accompanied
by the payment of all charges outstanding on such LIBOR Rate Loans (including the LIBOR Breakage Fee) and of all accrued interest
on the principal repaid to the date of payment.

 

(c)           LIBOR
Breakage Fee. Upon any prepayment of a LIBOR Rate Loan on any day that is not the last day of the relevant LIBOR Interest Period
(regardless of the source of such prepayment and whether voluntary, by acceleration or otherwise), Borrower shall pay an amount
(“LIBOR Breakage Fee”), as calculated by the Agent, equal to the amount of any losses, expenses and liabilities (including
without limitation any loss of margin and anticipated profits) that Lenders may sustain as a result of such payment. The Borrower
understands, agrees and acknowledges that: (i) the Lenders do not have any obligation to purchase, sell and/or match funds in connection
with the use of the LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate Loan, (ii) the LIBOR Rate may be
used merely as a reference in determining such rate, and (iii) the Borrower has accepted the LIBOR Rate as a reasonable and fair
basis for calculating the LIBOR Breakage Fee and other funding losses incurred by the Lenders. Borrower further agrees to pay the
LIBOR Breakage Fee and other funding losses, if any, whether or not any Lender elects to purchase, sell and/or match funds. Borrower
shall pay all LIBOR Breakage Fees within ten (10) days following Agent’s written request for payment of such fees.

 

    	 	33	 

     

    

 

(d)           Application
of Prepayments. Any partial prepayment of principal shall first be applied to any installment of principal then due and owing
and shall then be applied to installments of principal due in the reverse order of maturity, and no such partial prepayment shall
relieve Borrower of the obligation to pay each subsequent installment of principal when due.

 

(e)           No
Readvance. Any principal that is repaid shall not be readvanced.

 

2.6           Intentionally
Omitted.

 

2.7           Net
Payments. All payments by Borrower of principal, interest, fees, indemnities and other amounts payable to Agent and/or Lenders
hereunder shall be made without set-off or counterclaim.

 

2.8           Application
of Payments and Collections. As long as no Event of Default has occurred and is continuing, all payments shall be applied first
to the payment of all fees, expenses and other amounts then due to the Agent and the Lenders (excluding principal and interest),
and then to accrued interest, and the balance on account of outstanding principal. After the occurrence of an Event of Default
and during the continuance thereof, Borrower shall have no right, and it hereby irrevocably waives the right, to direct the application
of any and all payments and collections at any time or times received by Agent and/or Lenders from or on behalf of Borrower, and
Borrower does hereby irrevocably agree that Lenders shall, after the occurrence of an Event of Default and during the continuance
thereof, have the continuing exclusive right, subject to applicable Law, to apply and reapply any and all such payments and collections
received at any time or times by Lenders against the Obligations, in such manner as Lenders may deem advisable (or as may otherwise
be set forth in the Mortgage), notwithstanding any entry by Lenders upon any of their books and records.

 

2.9           Intentionally
Omitted.

 

2.10         Term
of Agreement. The provisions of this Agreement shall be and remain in effect until full and final payment in immediately available
funds of all of the Obligations.

 

2.11         Special
LIBOR Rate Loan Provisions. All LIBOR Rate Loans shall be subject to and governed by the following terms and conditions:

 

2.11.1          LIBOR
Rate Lending Unlawful. If any Lender shall determine (which determination shall, upon written notice thereof to the Borrower
be conclusive and binding on the Borrower) that the introduction of or any change in or in the interpretation of any law, rule,
regulation or guideline, (whether or not having the force of law) makes it unlawful, or any central bank or other governmental
authority asserts that it is unlawful, for such Lender to make, continue or maintain any LIBOR Rate Loan as, or to convert any
loan into, a LIBOR Rate Loan of a certain duration, the obligations of the Lenders to make, continue, maintain or convert into
any such LIBOR Rate Loans shall, upon such determination, forthwith be suspended until the Agent shall notify the Borrower that
the circumstances causing such suspension no longer exist, and all LIBOR Rate Loans of such type shall automatically convert into
Prime Rate Loans at the end of the then current LIBOR Interest Periods with respect thereto or sooner, if required by such law
or interpretation.

 

    	 	34	 

     

    

 

2.11.2          Unavailability
of LIBOR Rate. In the event that any Lender, in its sole discretion, shall have determined that U.S. Dollar deposits in the
relevant amount and for the relevant LIBOR Interest Period are not available to such Lender in the London interbank market; or
by reason of circumstances affecting such Lender in the London interbank market, adequate and reasonable means do not exist for
ascertaining the LIBOR Rate applicable to the relevant LIBOR Interest Period; or the LIBOR Rate no longer adequately and fairly
reflects such Lender’s cost of funding loans; upon notice from the Agent to the Borrower, the obligations of such Lender
to make or continue any loans as, or to convert any loans into, LIBOR Rate Loans of such duration shall forthwith be suspended
until the Agent shall notify the Borrower that the circumstances causing such suspension no longer exist, and any amount of the
Loan subject to such unavailability shall be converted to a Prime Rate Loan. Notwithstanding anything to the contrary contained
in this Section 2.11.2, neither Agent nor any Lender shall convert the Loan to a Prime Rate Loan under this Section 2.11.2,
unless such determination is generally being made by Agent or such Lender with respect to other LIBOR based loans which are similar
to the Loan in type, size, and duration and are made to similarly situated borrowers or are otherwise similar to the Loan in a
manner which is material to Agent or such Lender’s determination hereunder.

 

2.11.3          Increased
Costs. If, on or after the date hereof, the adoption of any applicable Law, or any change therein, or any change in the interpretation
or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or compliance
by any Lender with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable
agency: (a) shall impose, modify or deem applicable any reserve, special deposit or similar requirement (including, without limitation,
any such requirement imposed by the Board of Governors of the Federal Reserve System of the United States) against assets of, deposits
with or for the account of, or credit extended by, such Lender; or (b) shall impose on any Lender any other condition affecting
its LIBOR Rate Loans or its obligation to make LIBOR Rate Loans, and the result of any of the foregoing is to increase the cost
to such Lender of making or maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received or receivable by such
Lender under this Agreement with respect thereto, by an amount deemed by such Lender to be material, then, within fifteen (15)
days after demand by the Agent, the Borrower shall pay such additional amount or amounts as will compensate such Lender for such
increased cost or reduction.

 

    	 	35	 

     

    

 

2.11.4          Increased
Capital Costs. If any change in, or the introduction, adoption, effectiveness, interpretation, reinterpretation or phase-in
of, any Law or regulation, directive, guideline, decision or request (whether or not having the force of law) of any central bank,
regulator or other Governmental Authority affects or would affect the amount of capital required or expected to be maintained by
any Lender, or Person Controlling any Lender, and such Lender determines (in its sole and absolute discretion) that the rate of
return on its or such Controlling Person’s capital as a consequence of its commitments or the Loan made by such Lender is
reduced to a level below that which such Lender or such Controlling Person could have achieved but for the occurrence of any such
circumstance, then, in any such case upon notice from time to time by the Agent to the Borrower, the Borrower shall pay, within
ten (10) days after such notice, additional amounts sufficient to compensate such Lender or such Controlling Person for such reduction
in rate of return. A statement of such Lender as to any such additional amount or amounts (including calculations thereof in reasonable
detail) shall, in the absence of manifest error, be conclusive and binding on the Borrower. In determining such amount, a Lender
may use any method of averaging and attribution that it (in its sole and absolute discretion) shall deem applicable.

 

2.11.5          Taxes.
All payments by the Borrower of principal of, and interest on, LIBOR Rate Loans and all other amounts payable hereunder shall be
made free and clear of and without deduction for any present or future income, excise, stamp or franchise taxes and other taxes,
fees, duties, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding franchise taxes,
taxes imposed on or measured by the Lenders’ net income or receipts, backup withholding taxes and taxes resulting from the
failure to provide any documentation required to be provided under Section 16.1.9 (such non-excluded items being called
 “Taxes”). In the event that 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, rule or regulation, then the Borrower will

 

(a)           pay
directly to the relevant taxing authority the full amount required to be so withheld or deducted;

 

(b)          promptly
forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such authority;
and

 

(c)           pay
to the Agent such additional amount or amounts as is necessary to ensure that the net amount actually received by the Lenders will
equal the full amount the Lenders would have received had no such withholding or deduction been required.

 

Moreover, if any Taxes are directly asserted against any Lender
with respect to any payment received by any Lender hereunder, Lenders may pay such Taxes and the Borrower will promptly pay such
additional amount (including any penalties, interest or expenses) as is necessary in order that the net amount received by the
Lenders after the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount the Lenders would
have received had not such Taxes been asserted.

 

If the Borrower fails to pay any Taxes when due to the appropriate
taxing authority or fails to remit to the Agent the required receipts or other required documentary evidence, the Borrower shall
indemnify the Lenders for any incremental Taxes, interest or penalties that may become payable by the Lenders as a result of any
such failure.

 

    	 	36	 

     

    

 

2.11.6          Interest.
Agent does not warrant, nor accept responsibility, nor shall Agent have any liability with respect to the administration, submission
or any other matter related to the rates in the definition of “LIBOR Rate” or with respect to any comparable or successor
rate thereto.

 

2.11.7          Successor
LIBOR.

 

(a)           Notwithstanding
anything to the contrary contained in this Agreement or any other Loan Documents, if at any time Agent determines (which determination
shall be conclusive absent manifest error) that:

 

(i)            adequate
and reasonable means do not exist for ascertaining the LIBOR Rate for any requested LIBOR Interest Period, and such circumstances
are unlikely to be temporary,

 

(ii)           the
applicable supervisor or administrator of the LIBOR Rate or a Governmental Authority having jurisdiction over Agent has made a
public statement identifying a specific date after which the LIBOR Rate shall no longer be available or used for determining interest
rates for loans (such specific date, the “LIBOR Scheduled Unavailability Date”), or

 

(iii)          a
rate other than the LIBOR Rate has become a widely recognized benchmark interest rate for newly originated loans of this type made
in Dollars to borrowers domiciled in the United States,

 

then Agent may, in consultation with the Borrower, select an
alternate benchmark interest rate (including any credit spread or other adjustments to such alternate benchmark (if any) incorporated
therein) to replace the LIBOR Rate for purposes of this Agreement (such rate, the “LIBOR Successor Rate”).

 

(b)          Agent
and the Borrower shall negotiate in good faith any amendments to this Agreement as may be necessary and appropriate to effectively
replace the LIBOR Rate with the LIBOR Successor Rate and incorporate any LIBOR Successor Rate Conforming Changes related thereto.
Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, any such amendment entered into
by the Agent and the Borrower shall become effective without any further action or consent of any other party to this Agreement
on the fifth Business Day following the date that a draft of such amendment is provided to the Lenders for review, unless the Agent
receives, on or before noon eastern time on such date, a written notice from the Required Lenders stating that such Required Lenders
object to such amendment.

 

(c)           If
Agent determines (which determination shall be conclusive absent manifest error) that the circumstances under clause (a)(i) above
have arisen or the LIBOR Scheduled Unavailability Date has occurred, then (i) Agent shall promptly notify the Borrower and the
Lenders of such determination, which notice may be given by telephone, and (ii) until such time as a LIBOR Successor Rate has been
selected and this Agreement has been amended to implement such LIBOR Successor Rate any LIBOR Successor Rate Conforming Changes,
(A) the obligation of the Lenders to make or maintain LIBOR Rate Loans shall be suspended, and (B) all LIBOR Rate Loans of shall
be converted to Prime Rate Loans and shall accrue at a rate per annum equal to the sum of the Prime Rate plus the applicable Prime
Rate Margin.

 

    	 	37	 

     

    

 

(d)           The
LIBOR Successor Rate and any LIBOR Successor Rate Conforming Changes shall be determined, applied and implemented in a manner that
gives due consideration to the then-prevailing market practice in the United States for determining, applying and implementing
benchmark interest rates for newly originated loans of this type made in Dollars to borrowers domiciled in the United States. Notwithstanding
anything to the contrary contained herein, for purposes of this Agreement, no LIBOR Successor Rate selected in accordance with
the foregoing shall at any time be less than 0.00% per annum.

 

2.12         Loan
Fees.

 

2.12.1          Commitment
Fee. At the closing of the Loan, to the extent not previously paid, Borrower shall pay to Agent, for Agent’s own account,
a commitment fee in the amount specified in the Fee Letter (the “Commitment Fee”). The entire Commitment Fee has been
fully earned by Agent and is non-refundable.

 

2.12.2          Extension
Fee. The Extension Fee shall be payable to Agent, for the pro rata account of each Lender, as provided in Section 2.3
above.

 

2.13          Acceleration.
The Loan may be accelerated, at the option of the Required Lenders, at any time following the occurrence and during the continuance
of any Event of Default. Upon such an acceleration, the entire principal balance of the Loan, together with all unpaid and accrued
interest and all costs, expenses and fees, shall be due and payable together with interest on such amounts at the Default Rate.
If the Loan shall be accelerated for any reason whatsoever, any applicable LIBOR Breakage Fee and/or breakage fee associated with
the termination of any Hedging Contract in effect as of the date of such acceleration shall be paid. Notwithstanding anything to
the contrary contained herein or in any of the other Loan Documents, except to the extent prohibited by applicable Law, from and
after the acceleration of the Loan, an Event of Default shall be deemed to be continuing notwithstanding Borrower's cure of any
Event of Default.

 

2.14         The
Loan to Constitute One Obligation. The Loan shall constitute one general obligation of Borrower to Lenders, and shall be secured
by Agent's security interests in and liens upon all of the Collateral, and by all other security interests and liens heretofore,
now or at any time or times hereafter granted by Borrower to Agent or to Lenders.

 

2.15         Notations.
At the time of (i) the making of each Loan evidenced by any Note, and (ii) each payment or prepayment of any Note, each Lender
may enter upon its records an appropriate notation evidencing (a) such Lender's Pro Rata Share of the Loan and (b) such payment
or prepayment of principal and (c) in the case of payments or prepayments of principal, the portion of the Loan which was paid
or prepaid. No failure to make any such notation shall affect the Borrower's unconditional obligations to repay the Loan and all
interest, fees and other sums due in connection with this Agreement and/or any Note in full, nor shall any such failure, standing
alone, constitute grounds for disproving a payment of principal by the Borrower. However, in the absence of manifest error, such
notations and each Lender's records containing such notations shall constitute presumptive evidence of the facts stated therein,
including, without limitation, the outstanding amount of such Lender's Pro Rata Share of the Loan and all amounts due and owing
to such Lender at any time. Any such notations and such Lender's records containing such notations may be introduced in evidence
in any judicial or administrative proceeding relating to this Agreement, the Loan or any Note.

 

    	 	38	 

     

    

 

2.16         Time
of Payments and Prepayments in Immediately Available Funds.

 

2.16.1          Notwithstanding
any provision to the contrary contained in any of the Loan Documents, (a) the due dates of all payments under the Loan Documents
shall be adjusted in accordance with the Following Business Day Convention, and (b) all payments and prepayments of principal,
fees, interest and any other amounts owed from time to time under this Agreement and/or under any Note shall be made to the Agent
for the pro rata account of each Lender at the Agent's address in the United States designated for such purpose by Agent in Dollars
and in immediately available funds prior to 2:00 o'clock P.M. on the Business Day that such payment is due, subject to, if applicable,
the Following Business Day Convention. Any such payment or prepayment which is received by the Agent in Dollars and in immediately
available funds after 2:00 o'clock P.M. on a Business Day shall be deemed received for all purposes of this Agreement on the next
succeeding Business Day except that solely for the purpose of determining whether a Default has occurred, any such payment or prepayment
if received by the Agent prior to the close of the Agent's business on a Business Day shall be deemed received on such Business
Day.

 

2.16.2          All
payments of principal, interest, fees and any other amounts which are owing to any or all of the Lenders or the Agent hereunder
and/or under any Note shall be paid directly to Agent (i.e., Borrower shall not pay and shall have no obligation to pay any such
amount directly to any Lender other than Agent). All such payments that are received by the Agent in immediately available Dollars
prior to 2:00 o'clock P.M. on any Business Day shall, to the extent owing to Lenders other than the Agent, be sent by wire transfer
by the Agent on the same Business Day. Each such wire transfer by Agent shall be addressed to each Lender in accordance with the
wire instructions set forth in Exhibit D hereto, as the same may be amended from time to time pursuant to the terms hereof.
The amount of each payment wired by the Agent to each such Lender shall be such amount as shall be necessary to provide such Lender
with its Pro Rata Share of such payment (without consideration or use of any contra accounts of any Lender), or with such other
amount as may be owing to such Lender in accordance with this Agreement. Each such wire transfer shall be sent by the Agent only
after the Agent has received immediately available Dollars from or on behalf of the Borrower and each such wire transfer shall
provide each Lender receiving same with immediately available Dollars on receipt by such Lender. Any such payments of immediately
available Dollars received by the Agent after 2:00 o'clock P.M. on any Business Day shall be forwarded in the same manner by the
Agent to such Lender(s) as soon as practicable and, in any event, no later than the immediately succeeding Business Day.

 

    	 	39	 

     

    

 

2.17           Agent
Advances.

 

(a)           Agent
is authorized, from time to time, in Agent’s sole discretion to make, authorize or determine Loan Advances, or otherwise
expend funds, on behalf of Lenders (“Agent Advances”), (i) to pay any costs, fees and expenses as described in Section
9.17 herein, (ii) when the applicable conditions precedent set forth in Section 7.1 have been satisfied to the extent
required by Agent, and (iii) when Agent deems in good faith necessary or desirable to preserve or protect the Collateral or any
portion thereof (including those with respect to property taxes, insurance premiums, completion of construction, operation, management,
improvements, maintenance, repair, sale and disposition) (A) subject to Section 15.5, after the occurrence of a Default,
and (B) subject to Section 15.10, after acquisition of all or a portion of the Collateral by foreclosure or otherwise.

 

(b)           Agent
Advances shall constitute obligatory advances of Lenders under this Agreement, shall be repayable on demand and secured by the
Collateral, and if unpaid by Lenders as set forth below shall bear interest at the rate applicable to such amount under the Loan.
Agent shall notify each Lender in writing of each Agent Advance. Upon receipt of notice from Agent of its making of an Agent Advance,
each Lender shall make the amount of such Lender’s Pro Rata Share of the outstanding principal amount of the Agent Advance
available to Agent, in same day funds, to such account of Agent as Agent may designate, (i) on or before 3:00 P.M. on the day Agent
provides Lenders with notice of the making of such Agent Advance if Agent provides such notice on or before 12:00 P.M., or (ii)
on or before 12:00 P.M. on the Business Day immediately following the day Agent provides Lenders with notice of the making of such
advance if Agent provides notice after 12:00 P.M.

 

3.           SECURITY FOR
THE LOAN; LOAN AND SECURITY DOCUMENTS.

 

3.1           Security.
The Loan, together with all other Obligations of Borrower, to Agent and/or Lenders (including all Hedging Obligations) shall be
secured, inter alia, by the following “Security” which Borrower agrees to provide and maintain:

 

3.1.1           Mortgage
and Security Agreement. A first priority (subject only to Permitted Title Exceptions) mortgage, security agreement and fixture
filing (the “Mortgage”) with respect to (i) the Property, (ii) all land, improvements, furniture, fixtures, goods,
equipment, and other assets (including, without limitation, accounts, contracts, contract rights, Licenses and Permits, general
intangibles, documents and instruments), including all after-acquired property, owned, or in which Borrower has or obtains any
interest, in connection with the Property; (iii) all insurance proceeds and other proceeds therefrom, and (iv) all other assets
of Borrower whether now owned or hereafter acquired.

 

3.1.2           Assignment
of Leases and Rents. A first priority absolute assignment of leases and rents (the “Assignment of Leases and Rents”)
with respect to all leases, subleases and occupancy rights of the Property and all income and profits to be derived from the operation
and leasing of the Property.

 

3.1.3           Pledge
and Security Agreement. A pledge/assignment and security agreement assigning to Agent and granting Agent, for the benefit of
Lenders, a first priority and perfected security interest in all Cash Collateral and all sums deposited in the Tax Escrow Account
and the Cash Reserve Account and any other reserve accounts maintained by Borrower pursuant to the Loan Documents and all Tenant
Letters of Credit (the “Pledge and Security Agreement”).

 

    	 	40	 

     

    

 

3.1.4           Intentionally
Omitted.

 

3.1.5           Collateral
Assignment of Contracts, Licenses and Permits. A first priority Collateral Assignment and Security Agreement In Respect of
Contracts, Licenses and Permits (the “Collateral Assignment of Contracts, Licenses and Permits”) with respect to all
contracts, agreements, warranties, Licenses and Permits now owned or hereafter acquired by Borrower (and collaterally assigned
by Tenant to Borrower) which relate in any manner to the Property.

 

3.1.6           Guaranty.
The (i) unconditional, continuing Limited Guaranty (re: Certain Specified Matters) from Guarantor, and (ii) Guaranty (re: Completion)
from Guarantor, each guaranteeing the matters that are set forth therein (singly and collectively, the “Guaranty”).

 

3.1.7           Assignment
of Interest Rate Protection Agreement. A first priority assignment of interest rate protection agreement assigning to Agent
and granting Agent a first priority and perfected security interest in all of Borrower’s right, title and interest in and
to any Interest Rate Protection Agreement now or hereafter entered into by and between Borrower and any issuer of any such agreement
(the “Assignment of Interest Rate Protection Agreement”).

 

3.1.8           Environmental
Indemnity Agreement. The Environmental Indemnity Agreement from the Borrower and Guarantor with respect to various matters
that are set forth therein.

 

3.1.9           The
other Security Documents.

 

3.2           Loan
Documents and Security Documents.

 

The Loan shall be made, evidenced, administered,
secured or otherwise supported and governed by all of the terms, conditions and provisions of the Loan Documents, each as the same
may be hereafter modified or amended, consisting of: (i) this Agreement; (ii) the Note or Notes executed by the Borrower in favor
of Agent or the Lenders; (iii) the Mortgage; (iv) the Assignment of Leases and Rents; (v) the Pledge and Security Agreement; (vi)
the Collateral Assignment of Contracts, Licenses and Permits; (vii) the Environmental Indemnity Agreement; (viii) the Guaranty;
(ix) the Assignment of Interest Rate Protection Agreement; (x) related UCC Financing Statements; and (xi) any other Security Documents
and Other Agreements executed to further evidence or secure the Loan. Each of the Loan Documents listed in items (i) through (xi)
inclusive is dated of even date herewith.

 

    	 	41	 

     

    

 

3.3           Termination
of Security Interests. Upon the satisfaction in full of all of the Obligations (including, without limitation, all Hedging
Obligations), Lenders shall cause Agent to release, terminate and satisfy all of its security interests in and liens upon all remaining
Collateral, and Agent shall deliver to Borrower any and all funds remaining in its possession and any and all written instruments
reasonably requested by Borrower which are necessary to evidence such release, termination and satisfaction. Neither Agent nor
any Lender shall have any obligation to pay any costs or fees associated with the filing or recordation of any such release, termination
or satisfaction and Borrower agrees to pay all actual and reasonable costs and expenses (including actual and reasonable attorneys'
fees) incurred by Agent or any Lender in connection with the preparation, recording and filing of any of such instruments.

 

3.4           Security
for Hedging Obligations. All presently existing and hereafter arising Hedging Obligations of Borrower to Citizens (or to its
successors or to any other Affiliate of Citizens Financial Group, Inc.) pursuant to any Hedging Contracts now or hereafter entered
into by and between Borrower and any such Person in connection with the Loan shall be secured by the Security Documents pari-passu
with the Loan. Any such Hedging Contracts shall be fully recourse to Borrower and shall be cross-defaulted with the other Loan
Documents. Any Interest Rate Protection Agreement that is provided by any other Counterparty (a) shall not be secured by any of
the Collateral and (b) shall be fully non-recourse to Borrower.

 

4.           CONTINUING AUTHORITY
OF AUTHORIZED REPRESENTATIVES.

 

Agent and Lenders are authorized to rely
upon the continuing authority of the persons, officers, signatories or agents hereafter designated (“Authorized Representatives”)
to bind Borrower with respect to all matters pertaining to the Loan and the Loan Documents including, but not limited to, the execution
of Notices of Borrowing. Such authorization may be changed only upon written notice to Agent accompanied by evidence, reasonably
satisfactory to Agent, of the authority of the person giving such notice and such notice shall be effective not sooner than five
(5) Business Days following receipt thereof by Agent. The present Authorized Representatives are listed on Exhibit A.

 

5.           LENDERS' CONSULTANTS.

 

5.1           Right
to Employ. Agent shall have the right to employ, for the below functions, its own personnel or one or more engineers, architects,
builders or other construction specialists, environmental advisors, accountants and attorneys to act as advisors to Agent in connection
with the Loan (each of which shall be a “Consultant”).

 

5.2           Functions.

 

5.2.1           The
functions of a Consultant may include without limitation: (a) inspection and physical review of the Property; (b) review and analysis
of any work to be done in connection with the Property (if any); (c) review and analysis of environmental matters; and (d) review
and analysis of legal matters pertaining to the Property or issues arising under the Loan Documents, or otherwise in connection
with the Property.

 

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5.2.2           Intentionally
Omitted.

 

5.3           Payment.
The actual and reasonable costs and fees of Consultants for the functions described in Section 5.2 above shall be paid by
Borrower upon billing therefor.

 

5.4           Access.
Borrower shall provide Agent's personnel and all Consultants with continuing access, subject to the rights of any tenants under
any leases of any portion(s) of the Property for which Agent seeks access, to all aspects of the Property and all books and records
related thereto at reasonable times during any Business Day, upon at least two (2) Business Days' prior written notice to Borrower.

 

5.5           No
Liability. Neither Agent nor any Lender nor any Consultant shall have any liability to Borrower or to any third party on account
of: (a) services performed by any Consultant; or (b) any failure or neglect by any Consultant to properly perform services, provided
however, each Consultant shall be liable for its respective gross negligence and willful misconduct; or (c) any approval or disapproval
of work, plans or other matters. Neither Agent nor any Lender nor any Consultant shall have any obligation regarding proper performance
of work related to the Property. Borrower shall have no rights under or relating to any agreement, report or similar document prepared
by any Consultant.

 

6.           LOAN DISBURSEMENT.

 

6.1           Request
for Loan. In connection with the closing of the Loan, Borrower shall give Agent written notice (a “Notice of Borrowing”)
specifying (a) the amount of Loan Proceeds which Borrower is requesting be advanced, (b) the requested borrowing date, and (c)
if Borrower requests Lenders to wire all or a portion of such Loan Proceeds (whether to Borrower or to a title insurance company
as escrow agent), the relevant wiring instructions. Such Notice of Borrowing shall be irrevocable and binding on Borrower.

 

6.2           Advance
of Loan Proceeds. Each Lender shall severally, subject to compliance with all of the other terms, conditions and provisions
of this Agreement, make a disbursement of its respective Pro Rata Share of the Loan Proceeds (the “Loan Advance”) entirely
at the closing of the Loan.

 

7.           CONDITIONS PRECEDENT
AND CONDITIONS SUBSEQUENT.

 

7.1           Conditions
Precedent. It shall be a condition precedent of each Lender's obligation to close the Loan and to fund its respective Pro Rata
Share of the Loan that each of the following conditions precedent be satisfied in full (as determined by Agent in its discretion
which discretion shall be exercised in good faith having due regard for the advice of Agent's Consultants), unless waived by Agent
at or prior to closing and funding the Loan:

 

7.1.1           Satisfactory
Loan Documents. Each of the Loan Documents shall be satisfactory in form, content and manner of execution and delivery to Agent,
Lenders and their respective counsel.

 

7.1.2           No
Material Change. No material adverse change shall have occurred in the financial condition, business, affairs, operations or
Control of Borrower or the Guarantor since the date of their respective financial statements most recently delivered to Agent.

 

    	 	43	 

     

    

 

7.1.3           Warranties
and Representations Accurate. All warranties and representations made by or on behalf of Borrower or the Guarantor or any other
Loan Party to Agent and/or Lenders shall be true, accurate and complete in all material respects and shall not omit any material
fact necessary to make the same not misleading.

 

7.1.4           Financials
and Appraisals. Lenders shall have received and approved: (a) current financial statements from Borrower in all respects satisfactory
to Lenders, a pro-forma balance sheet for the Borrower in all respects satisfactory to Lenders, setting forth the cost basis of
the Property, prepared by Borrower, together with a certification by Borrower stating that such balance sheet is accurate in all
material respects; (b) financial statements of the Guarantor in all respects satisfactory to Lenders; (c) an appraisal of the Property
from an appraiser acceptable to Agent setting forth the Approved Appraised Value of the Property (on a “stabilized”
basis) that is sufficient to cause the LTV Ratio on a “stabilized” basis to not exceed sixty-five percent (65%); (d)
an operating statement for the Property; and (e) such other information as Agent may reasonably request.

 

7.1.5           Validity
and Sufficiency of Security Documents. The Mortgage and the other Security Documents shall create valid and perfected liens
on all property described therein (collectively, the “Collateral”) and each of the Security Documents and related UCC
Financing Statements shall have been duly recorded and filed or the title insurance company shall have issued the lender’s
title insurance policy required pursuant to Section 7.1.9 insuring Agent’s liens with respect thereto, in each case
to the satisfaction of Agent and its counsel.

 

7.1.6           No
Other Liens; Taxes and Municipal Charges Current. Subject to Section 11.1.4 below, the Collateral shall not be subject
to any liens or encumbrances, whether inferior or superior to the Loan Documents or the Security Documents, except in respect of:
(a) real estate taxes and personal property taxes not yet due and payable; and (b) Permitted Title Exceptions. All real estate
taxes, personal property taxes and other municipal charges relating to any of the Collateral shall be current.

 

7.1.7           Property
Matters. Agent shall have received and approved each of the following: (a) the Survey, the Hotel Management Agreement, the
Franchise Agreement, and evidence satisfactory to Agent of Licenses and Permits (which may be held by or in the name of the Hotel
Manager) for the Property sufficient to allow the Property to be operated in the ordinary course of business for the purposes
described in Section 1.3 and as contemplated under any applicable leases and as needed under applicable Legal Requirements;
and (b) a report or other evidence satisfactory to Agent, (which, if required by Agent has been approved by Agent's Consultants),
to the effect that the Property is in good repair and safe condition with no structural deficiencies and no material need for
repairs or replacements except in the ordinary course of business.

 

    	 	44	 

     

    

 

7.1.8         Compliance
With Law. Agent shall have received and approved evidence that:

 

(a)          Present
Compliance. To the best of Borrower’s knowledge, all real estate and tangible personal property constituting or intended
to constitute Collateral for the Loan complies with all applicable Legal Requirements and the provisions of all applicable Licenses
and Permits.

 

(b)          No
Prohibitions or Violations. There are no applicable Legal Requirements which prohibit or adversely limit the use of the Property
for the purposes the same is intended for, to the best of Borrower’s knowledge, nor is there any outstanding and uncured
violation of any applicable Legal Requirements.

 

(c)          Licenses
and Permits. All Licenses and Permits and all private approvals of every nature whatsoever, if any, which are reasonably necessary
in order to allow the operation of the Property for the purposes described in Section 1.3 above and as required under any
applicable leases and as needed under applicable Legal Requirements have been duly and finally received with all appeal periods
therefrom having elapsed, with no appeal having been taken therefrom, and with no violations existing under the terms thereof.

 

(d)          Qualification
to Do Business. Borrower is qualified to do business in the State where the Property is located.

 

7.1.9         Title
Insurance; Other Evidence of Perfection. Agent shall have received: (a) a mortgagee's title insurance policy which meets Agent's
title insurance requirements previously furnished to Borrower to the satisfaction of Agent and its counsel, effective as of the
date and time of the funding of the Loan; and (b) such other evidence of the perfection of Agent’s liens and security interests
as Agent or its counsel may reasonably require.

 

7.1.10       Survey.
Agent shall have received and approved a current, on-site instrument survey of the Property containing a certification thereon,
or on a separate surveyor's certificate, of a Registered Land Surveyor acceptable to Agent, which meets Agent's survey requirements
previously furnished to Borrower.

 

7.1.11       Condition
of Property. There shall have been no material unrepaired or unrestored damage or destruction by fire or otherwise to any
of the real or tangible personal property comprising or intended to comprise the Collateral.

 

7.1.12       No
Takings. Neither the Property nor any material portion of the Property shall have been taken by eminent domain; nor shall there
be any threat of such a taking.

 

7.1.13       Insurance.
Borrower shall have provided to Agent with respect to the Property and the Collateral evidence of: (i) insurance coverages which
meet the property, hazard and other insurance requirements set forth on Exhibit C of this Agreement to the satisfaction
of Agent and its Consultants; and (ii) payment of the premiums for such insurance.

 

    	 	45	 

     

    

 

7.1.14       Acquisition
Documents. Borrower shall have provided to Agent true and complete copies (including all amendments) of (a) the purchase and
sale agreement pursuant to which Borrower intends to acquire the Property, (b) a signed settlement statement accurately
reflecting the Acquisition Costs of the Property and (c) the deed and all other conveyance documents conveying the Property to
Borrower.

 

7.1.15       Hazardous
Substances. Agent shall have received, and in Agent's sole discretion approved, a satisfactory Environmental Site Assessment
indicating the acceptability of the environmental risk associated with the Property, addressing the existence of any Hazardous
Substances at, or which may affect, the Property and the Property’s compliance with all applicable Environmental Legal Requirements.

 

7.1.16       Organizational
Documents and Entity Agreements. Agent shall have received and approved an organization chart of Borrower and Guarantor, the
limited liability company operating agreement of Borrower and the organizational documents of the Member, Guarantor, and all of
the other Loan Parties.

 

7.1.17       Votes,
Consents and Authorizations. Agent shall have received and approved certified copies of all partnership, limited liability
company and corporate votes, consents and authorizations that may be reasonably required to evidence authority for: (a)
closing the Loan and the transactions contemplated hereby; (b) providing continuing authorization to designated persons to deal
in all respects on behalf of Borrower, Member, Guarantor, and all of the other Loan Parties; and (c) the execution of all Loan
Documents.

 

7.1.18       Legal
and Other Opinions.

 

(a)          Agent
shall have received and approved legal opinion letters from counsel representing Borrower and Guarantor which meet Agent's legal
opinion requirements.

 

(b)          Agent
shall also have received from qualified attorneys and surveyors, such other certificates, opinions, surveys, and other evidence
of compliance with each of the conditions herein set forth as Agent may reasonably require.

 

7.1.19             Leasing
Matters.

 

(a)          Leases.
Agent shall have received and approved complete copies of all existing leases, subleases and any and all lease guaranties (to
the extent requested by Agent).

 

(b)          Estoppels
and SNDA Agreements. Agent shall have also received satisfactory estoppel certificates and SNDA Agreements to the extent previously
specified by Agent.

 

    	 	46	 

     

    

 

(c)          Hotel
Management Agreement and Franchise Agreement. Agent shall have also received and approved each of the Hotel Management Agreement
and the Franchise Agreement.

 

7.1.20        No
Default. There shall not be any Default under any of the Loan Documents which has occurred and is continuing.

 

7.1.21        Closing
Affidavit. At the closing of the Loan, Borrower and Guarantor shall execute and deliver to Agent an affidavit certifying to
Lenders: (a) that all financial information furnished by or on behalf of Borrower or Guarantor to Agent is accurate and correct
in all material respects as of the reporting date(s) thereof and that there have been no material adverse changes therein since
the reporting date(s) thereof; (b) that except as disclosed in writing to Agent and approved by Agent in writing, neither Borrower
nor Guarantor is in default under any material obligation or agreement to which it is a party or by which it or the Property is
bound; and (c) that, except as disclosed in writing to Agent and approved by Agent in writing, there is no material litigation
pending or, to the best of Borrower's and of Guarantor's knowledge, threatened, against Borrower or Guarantor which is not fully
covered by insurance.

 

7.1.22       Inter-Company
Loan Documents. If there exist any Inter-Company Loans, Agent shall have received and approved certified copies of all Inter-Company
Loan documents, together with a certification from Borrower that such documents so delivered constitute all of the Inter-Company
Loan documents.

 

7.1.23       Other
Documents. Agent shall have received and approved such other documents, instruments, agreements and certificates as Agent
or Lenders shall reasonably request, each in form and substance reasonably satisfactory to Agent, in connection with the Property
and the transactions contemplated hereby, including such other documents, instruments and agreements as Agent reasonably determines
are necessary at any time to perfect any of Agent's security interests in the Collateral.

 

7.1.24       Other
Information Concerning the Property. Agent shall have received and approved any and all other information and documentation
Agent deems necessary to conduct Agent's analysis of the Property.

 

7.1.25       No
Proceedings, Etc. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or
proposed before any Governmental Authority to enjoin, restrain or prohibit, or to obtain damages in respect of, or which is related
to or arises out of this Agreement or the consummation of the transactions contemplated hereby or which, in Agent's judgment,
would make it inadvisable to consummate the transactions contemplated by this Agreement or any of the other Loan Documents.

 

7.1.26       Payment
of Agent's and Lenders' Fees and Costs. Borrower shall have paid (a) the fees payable to Agent and Lenders described in Section
2.12.1, and (b) all of Agent's and Lenders' costs and expenses as described in Section 9.17.

 

    	 	47	 

     

    

 

7.1.27       Required
Equity Contribution. Borrower shall have furnished to Agent evidence reasonably satisfactory to Agent that, in connection
with Borrower's acquisition of the Property, cash equity funds in an amount not less than Eight Million Five Hundred Nine Thousand
Eight Hundred Sixty-One and 88/100 Dollars ($8,509,861.88) have been contributed to Borrower by its Member and that such funds
remain invested in Borrower (the “Required Equity Contribution”). All of Borrower's Required Equity Contribution shall
be made as capital contributions or by way of Inter-Company Loans which constitute Permitted Additional Debt.

 

7.1.28       Required
Interest Rate Protection Agreement. Agent shall have received and approved a Required Interest Rate Protection Agreement which
satisfies the conditions that are set forth in the definition of such term and the counterparty thereunder shall have acknowledged
and consented to the pledge and assignment thereof to Agent in form reasonably satisfactory to Agent. If Borrower elects to purchase
a Required Interest Rate Protection Agreement which has a term that expires later than the Maturity Date or the then applicable
Extended Maturity Date, upon repayment of the Loan on the Maturity Date or on the applicable Extended Maturity Date, Borrower
may incur additional obligations associated with the breaking of such Required Interest Rate Protection Agreement before the conclusion
of its term in accordance with the terms and conditions thereof.

 

7.1.29       Operating
Lease Matters. Agent shall have approved all the terms and conditions of the Operating Lease and the Tenant shall have executed
and delivered to Agent an Operating Lease Estoppel Certificate in all respects reasonably satisfactory to Agent.

 

7.1.30       No
Operating Lease Default. There shall not exist any default in the payment, performance or observance of any of Borrower’s
or Tenant’s obligations under the Operating Lease and there shall not exist any event or condition which, with the giving
of notice or the passage of time or both, could become such a default.

 

7.1.31       Proforma
Compliance Certificate. Borrower shall have delivered to Agent a proforma Compliance Certificate demonstrating that upon the
funding of the Loan the Debt Service Coverage Ratio will be greater than or equal to 1.25 to 1.

 

7.1.32       Patriot
Act; KYC. At least five (5) days prior to the Loan closing date, Agent shall have received:

 

(a)          any
and all documentation and other information requested by Agent in connection with applicable “know your customer” and
anti-money-laundering rules and regulations, including the Patriot Act; and

 

(b)          to
the extent the Borrower constitutes a “legal entity customer” under the Beneficial Ownership Regulation, a completed
Beneficial Ownership Certification in relation to the Borrower.

 

    	 	48	 

     

    

 

7.2           Conditions
Subsequent. Borrower shall satisfy each of the conditions and provide Agent with each of the items set forth in Exhibit
G hereto (collectively, the “Conditions Subsequent”) within thirty (30) days of the date hereof, or such other
time as is set forth in such Exhibit G. Borrower's failure to fully satisfy each of the Conditions Subsequent set forth
in Exhibit G within such thirty (30) day period or within any other therein specified time period shall, at Required Lenders'
sole discretion, constitute an Event of Default under this Agreement, no additional grace or notice periods being applicable thereto.

 

8.             WARRANTIES
AND REPRESENTATIONS.

 

Borrower warrants and represents to Agent
and Lenders, for the express purpose of inducing Agent and Lenders to enter into this Agreement, to make the Loan, and to otherwise
complete all of the transactions contemplated hereby, that as of the date of this Agreement, as follows:

 

8.1           Financial
Information. True, accurate and complete in all material respects financial statements of Borrower and true, accurate and complete
in all material respects financial statements of Guarantor have been delivered to Lenders and the same fairly present the financial
condition of Borrower and of Guarantor as of the respective dates thereof and no material and adverse change has occurred in such
financial condition since the respective dates thereof. The fiscal years of Borrower and the Guarantor end on December 31 of each
year.

 

8.2           No
Violations. The consummation of the Loan and the subsequent payment and performance of the Obligations evidenced and secured
by the Loan Documents shall not constitute a violation of, or conflict with, any Law, contract, agreement or organizational document
to which Borrower or any other Loan Party is a party or by which Borrower or, to the Borrower’s knowledge, any other Loan
Party, or the Property, may be bound.

 

8.3           No
Litigation. (a) There is no condemnation proceeding pending or, to the best of Borrower's knowledge, threatened against the
Property and (b) there is no material litigation now pending, or, to the best of Borrower's knowledge, threatened, against Borrower
or the Guarantor (with respect to the Property or otherwise) which if adversely decided could materially impair the ability of
Borrower or Guarantor to pay and perform its respective obligations hereunder or under the other Loan Documents. Except as disclosed
in writing to Agent and approved by Agent in writing, there is no litigation, whether or not material, pending, or, to the best
of Borrower's knowledge, threatened, against Borrower or the Guarantor in which the amount in controversy exceeds $250,000 and
which is not fully covered by insurance.

 

8.4           Operating
Lease; Other Leases . A true and complete copy of the Operating Lease, together with all amendments thereto (if any), has been
delivered by Borrower to Agent. The Operating Lease has not been further amended or changed in any respect and it is in full force
and effect and enforceable in accordance with the terms thereof. True and complete copies of all other leases and subleases, together
with all amendments thereto, of the Property which are now in effect (and all guaranties thereof) have been delivered to Agent.
Such leases and subleases (and lease guaranties) have not been further amended or changed in any respect and, except as disclosed
in writing to Agent and approved by Agent in writing, all such leases and subleases (and lease guaranties) are in full force and
effect and are enforceable in accordance with their respective terms.

 

    	 	49	 

     

    

 

8.5           Compliance
With Legal Requirements. To the best of Borrower’s knowledge, the Property complies with all Legal Requirements and any
and all covenants, conditions, restrictions or other matters which affect the Property.

 

8.6           Required
Licenses and Permits. Borrower or Tenant possesses all licenses, permits and franchises, and all rights thereto, necessary
to conduct its business as now conducted and as presently proposed to be conducted. All Licenses and Permits which are reasonably
required in order for Borrower or Tenant to operate the Property in the usual course of business have been duly and properly obtained
and have been complied with, in all material respects. All Licenses and Permits which are reasonably required in order to construct
any approved capital improvements and tenant improvements, but only to the extent now available given the status of their design
and construction as of the date of this warranty and representation, have been duly and properly obtained. All such Licenses and
Permits which are not presently available given the status of the design and construction of any approved capital improvements
and tenant improvements, shall be duly and properly obtained in a timely manner so as not to delay completion of any approved capital
improvements or tenant improvements. All such Licenses and Permits once obtained shall remain in full force and effect and shall
be complied with in all material respects.

 

8.7           Curb
Cuts and Utility Connections. All curb cuts and utility connections required for the current use of the Property and all Licenses
and Permits therefor have been duly obtained and are in full force and effect and all utility services as reasonably required for
water, gas, electric, telephone, sewer and storm drainage and sanitary waste disposal are available as a matter of right (subject
to any required payments and compliance therewith), in each case, to an extent adequate to serve the Property for its current uses.

 

8.8           Good
Title and No Liens. Borrower is the lawful current owner of the Property. Borrower has permanent non-cancelable appurtenant
rights with respect to all areas over, under or on which support, utility, drainage, passage or other access easements are required
to make use of the Property and all required parking as contemplated hereby, by all applicable leases and by all applicable Legal
Requirements. The Property is free and clear of all liens and encumbrances of any nature whatsoever, except for Permitted Title
Exceptions.

 

8.9           Use
of Loan Proceeds. The proceeds of the Loan shall be used solely and exclusively for the purposes set forth in Section 1.4
above. No portion of the proceeds of the Loan shall be used in whole or in part, directly or indirectly, and whether immediately,
incidentally or ultimately (a) to purchase or carry any “margin stock” (as such term is defined in Regulation U of
the Board of Governors of the Federal Reserve System), or to extend credit to others for the purpose thereof, or to repay or refund
indebtedness previously incurred for such purpose, or (b) for any purpose which would violate or is inconsistent with the provisions
of regulations of the Board of Governors of the Federal Reserve System including, without limitation, Regulations T, U and X thereof.

 

    	 	50	 

     

    

 

8.10          Entity
Matters.

 

8.10.1       Organization.
Borrower is a duly organized and validly existing limited liability company in good standing under the laws of the State of Delaware.
The Member is a duly organized and validly existing limited partnership in good standing under the laws of the State of Delaware.
The Tenant is a duly organized and validly existing limited liability company in good standing under the laws of the State of
Michigan. Borrower and Tenant are each (and at all times will be) duly qualified in the jurisdiction where the Property is situated
and in each other jurisdiction where the nature of their business is such that qualification is required. Borrower, Member, Guarantor,
and Tenant have all requisite power and authority to conduct their business and to own their respective properties, as now conducted
or owned, and as contemplated by this Agreement.

 

8.10.2       Ownership
and Organizational and Taxpayer Identification Numbers. The holders of all limited liability company interest or limited partnership
interests in Borrower, Tenant, and in Member are listed on Exhibit A; and no additional ownership interests therein, or
rights or instruments convertible into such ownership interests, shall be issued, nor shall any such ownership change, except
for Permitted Transfers. The organizational and taxpayer identification number(s) of Borrower, Member, Tenant and the Guarantor
are accurately stated in Exhibit A. All other information set forth in Exhibit A is accurate and complete.

 

8.10.3       Authorization.
All required limited liability company and other entity actions and proceedings have been duly taken so as to authorize the execution
and delivery by Borrower, Tenant and Guarantor of the Loan Documents and the payment and performance of Borrower's, Tenant’s
and Guarantor's respective Obligations thereunder.

 

8.10.4       Commercial
Organization. Borrower is a business or commercial organization and the Loan is being made solely for the purpose of carrying
on a business or commercial enterprise.

 

8.10.5       Limited
Liability Company Agreement. The Borrower’s limited liability company agreement is in full force and effect and a true
and complete copy thereof has been delivered to Agent.

 

8.11          Valid
and Binding. Each of the Loan Documents constitutes legal, valid and binding obligations of Borrower and, where applicable,
Tenant and Guarantor, and each is enforceable in accordance with the respective terms thereof, subject to bankruptcy, insolvency
and similar Laws of general application affecting the rights and remedies of creditors and, with respect to the availability of
the remedies of specific enforcement, subject to the discretion of the court before which any proceeding therefor may be brought.

 

8.12          Deferred
Compensation and ERISA. Borrower does not have any pension, profit sharing, stock option, insurance or other arrangement or
plan for employees covered by ERISA except as may be designated to Agent in writing by Borrower from time to time (“ERISA
Plan”) and no “Reportable Event” as defined in ERISA has occurred and is now continuing with respect to any such
ERISA Plan. The granting of the Loan, the performance by Borrower of its obligations under the Loan Documents and Borrower's conducting
of its operations do not and will not violate any provisions of ERISA.

 

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8.13         No
Required Consents. The execution, delivery and performance of the Loan Documents and the transactions contemplated thereby
do not require any approval or consent of, or filing (other than the recording of the Mortgage and the Assignment of Leases and
Rents and the filing and recording of the UCC Financing Statements) or registration with, any Governmental Authority, or any other
party, except with respect to any disclosure required in connection with state and federal securities laws and rules.

 

8.14         No
Default. To the best of Borrower’s knowledge, no Default exists under any of the Loan Documents.

 

8.15         No
Broker or Finder. No Loan Party, nor anyone acting on behalf thereof, has dealt with, made any agreement with or retained the
services of any broker, finder or other person or entity who or which may be entitled to a broker’s or finder’s fee,
or other compensation, payable by Borrower, by any other Loan Party, by Agent or by any Lender in connection with the Loan, except
HFF, LP, which shall be paid in full by the Borrower.

 

8.16         Background
Information and Certificates. All of the factual information contained or referred to in Section 1 of this Agreement
and in the Exhibits to this Agreement or the other Loan Documents, and in the certificates and opinions furnished to Agent and/or
Lenders by or on behalf of Borrower in connection with the Property or the Loan, is true, accurate and complete in all material
respects, and omits no material fact necessary to make the same not misleading. As of the date hereof, the information included
in the Beneficial Ownership Certificate is true and correct in all respects.

 

8.17         Taxes
and Assessments. Borrower and each of the other Loan Parties have filed all federal, state and local tax returns and other
similar reports that are required by law to be filed and have paid, or made provision for the payment of, all taxes, assessments,
fees and other governmental charges that are due and payable by Borrower and/or each of the other Loan Parties.

 

8.18         Solvency.
Borrower and the each of the other Loan Parties are, and after giving effect to the transactions contemplated under the Loan Documents
will be, solvent. After giving effect to the transactions contemplated under the Loan Documents, Borrower and the each of the other
Loan Parties: (a) will be able to pay their respective debts as they become due, and (b) will have funds and capital sufficient
to carry on their respective businesses and all businesses in which they are about to engage.

 

8.19         Other
Agreements. To the best of the Borrower's knowledge, neither Borrower nor any other Loan Party is a party to any indenture,
loan, or credit agreement, or to any lease or other agreement or instrument, or subject to any charter or corporate restriction,
which could reasonably be expected to have a Material Adverse Effect. To the best of the Borrower's knowledge, neither Borrower
nor any other Loan Party is in default in any material respect in the performance, observance or fulfillment of any of the obligations,
covenants, or conditions contained in any agreement or instrument material to its business to which it is a party.

 

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8.20         No
Subsidiaries. Borrower has no subsidiaries.

 

8.21         Investment
Company Act of 1940. Borrower is not subject to regulation under the Investment Company Act of 1940 or any statute or regulation
which has the effect of limiting its ability to incur Indebtedness for money borrowed as contemplated by the Loan Documents.

 

8.22         Guarantor's
Warranties and Representations. Borrower has no reason to believe that any warranties or representations made in writing by
Guarantor to Agent are untrue, incomplete or misleading in any respect.

 

8.23         Patriot
Act.

 

(a)          As
of the date of this Agreement, the Borrower is and, during the term of this Agreement shall remain, in full compliance with all
the applicable laws and regulations of the United States of America that prohibit, regulate or restrict financial transactions,
including but not limited to, conducting any activity or failing to conduct any activity, if such action or inaction constitutes
a money laundering crime, including any money laundering crime prohibited under the Money Laundering Control Act, 18 U.S.C. 1956,
1957, or the Bank Secrecy Act, 31 U.S.C. 5311 et seq. and any amendments or successors thereto and any applicable regulations
promulgated thereunder.

 

(b)          Borrower
represents and warrants that to the best of its knowledge as of the date of this Agreement: (a) neither it, nor any of its owners
holding twenty percent (20%) or more of the direct or indirect interests in Borrower is named as a “Specially Designated
National and Blocked Person” as designated by the United States Department of the Treasury’s Office of Foreign Assets
Control or as a person, group, entity or nation designated in Presidential Executive Order 13224 as a person who commits, threatens
to commit, or supports terrorism; (b) it is not owned or Controlled, directly or indirectly, by the government of any country that
is subject to a United States Embargo; and (c) it is not acting, directly or indirectly, for or on behalf of any person, group,
entity or nation named by the United States Treasury Department as a “Specially Designated National and Blocked Person,”
or for or on behalf of any person, group, entity or nation designated in Presidential Executive Order 13224 as a person who commits,
threatens to commit, or supports terrorism; and that it is not engaged in this transaction directly or indirectly on behalf of,
or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity or nation.

 

(c)            Borrower
acknowledges that it understands and has been advised by its own legal counsel on the requirements of the applicable laws referred
to above, including the Money Laundering Control Act, 18 U.S.C. 1956, 1957, the Bank Secrecy Act, 31 U.S.C. 5311 et seq.,
the applicable regulations promulgated thereunder, and the Foreign Assets Control Regulations, 31 C.F.R. Section 500 et seq.

 

    	 	53	 

     

    

 

8.24         Hotel
Management and Franchise Agreement.

 

(a)          The
Hotel Management Agreement is in full force and effect and there is no default thereunder by any party thereto and no event has
occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. The Hotel Management
Agreement was entered into on commercially reasonable terms. 

 

(b)          The
Franchise Agreement is in full force and effect and there is no default thereunder by any party thereto and, to the best of Borrower’s
knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder.
The Franchise Agreement was entered into on commercially reasonable terms. 

 

8.25         Reaffirmation
and Survival of Representations. The submission of a Notice of Borrowing by Borrower pursuant to this Agreement shall constitute
(a) an automatic representation and warranty by Borrower to Agent and Lenders that there does not then exist any Default, (b) in
the event the date of such Notice of Borrowing is different than the date of this Agreement, a reaffirmation as of the date of
said Notice of Borrowing that all of the representations and warranties of Borrower contained in this Agreement and the other Loan
Documents are true, accurate and complete in all material respects as if made on such date rather than the date of this Agreement,
and (c) a representation and warranty of Borrower that the information set forth in such Notice of Borrowing is true and correct
and omits no material fact necessary to make the same not misleading. Borrower covenants, warrants and represents to Agent and
Lenders that all representations and warranties of Borrower contained in this Agreement or any of the other Loan Documents shall
survive the execution, delivery and acceptance thereof by the parties thereto and the closing of the transactions described therein
or related thereto.

 

9.             COVENANTS.

 

Borrower covenants and agrees that from
the date hereof and so long as any Indebtedness remains unpaid hereunder, or any of the Loan or other Obligations remains outstanding,
as follows:

 

9.1           Compliance
Certificate. Concurrently with the delivery of the financial statements described in Section 9.2.1(a), Borrower shall
forward to Agent a copy of the independent auditor's report to
Borrower's management that is prepared in connection with and expresses such auditor's opinion to Borrower with respect to such
financial statements. Concurrently with the delivery of all financial statements described in Sections 9.2.2 (a) and (b),
Borrower shall cause to be prepared and furnished to Agent a certificate in the form of Exhibit F hereto (a “Compliance
Certificate”) from an Authorized Representative certifying to Lenders, to the best of Borrower’s knowledge: (a) that
no Default has occurred and is continuing, or, if any such Default has occurred and is continuing specifying the nature thereof,
(b) as to compliance with the covenants referenced therein and (c) as to the accuracy of the financial information provided pursuant
to Section 9.2 below. 

 

    	 	54	 

     

    

 

9.2           Financial
Statements and Reports. Borrower shall furnish or cause to
be furnished to Agent from time to time, the following financial statements and
reports and other information, all in form, manner of presentation and substance reasonably acceptable to the Agent:

 

9.2.1        Annual
Statements. Within one hundred twenty (120) days after the end of each calendar year (commencing with the year ending December
31, 2018):

 

(a)          consolidated
financial statements of Borrower and Tenant (including balance sheet, statement of financial condition, reconciliation of net worth,
income statement and cash flow statement) (i) prepared in accordance with GAAP, or other recognized method of accounting acceptable
to Agent, consistently applied, consistent with the financial statements previously delivered to Agent, and (ii) audited by a so-called
 “big four” accounting firm or another independent, certified public accounting firm reasonably acceptable to Agent;
all such financial statements to include and to be supplemented by such detail and supporting data and schedules as Agent may from
time to time reasonably require;

 

(b)          intentionally
omitted; and

 

(c)          if
requested by Agent, a detailed, updated list of all material service contracts that are then in effect with respect to the Property
setting forth the name of each vendor, the date of each such contract and such other details as Agent may reasonably request.

 

9.2.2        Quarterly
Statements. Within sixty (60) days following the end of each calendar quarter except, in the case of the fourth calendar quarter,
balance sheets and income statements which shall be furnished within one hundred twenty (120) days following the end of each fourth
calendar quarter:

 

(a)          the
following certified by the Borrower to be true, accurate and complete in all material respects: (i) unaudited financial statements
of Borrower in form reasonably acceptable to Agent, such financial statements to include a balance sheet, income statement and
cash flow statement and to be supplemented by such detail and supporting data and schedules as Agent may from time to time reasonably
require; (ii) as to the Property, an operating statement showing the results of operation for the prior quarter and on a year-to-date
basis for the period just ended and, within forty-five (45) days following the end of each calendar year, an operating statement
for the year just ended; (iii) the current STR Report for the Property, (iv) a Property tax status report setting forth the annual
real estate taxes payable with respect to the Property, the due dates of such real estate taxes and the portions of such taxes
which have been paid; and (v) such other information as the Agent may reasonably require;

 

(b)          the
following, prepared by Borrower based upon the books and records of Borrower and certified by Borrower to be true, accurate and
complete in all material respects: Borrower's calculation of the Debt Service Coverage Ratio as of the end of such calendar quarter
and Borrower's calculation of the amount, if any, to be deposited by Borrower in the Cash Reserve Account or the amount of principal,
if any, to be repaid or Acceptable Letter of Credit to be furnished pursuant to Section 10.2 hereof; and

 

    	 	55	 

     

    

 

(c)          to
the extent not previously provided to Agent, full and complete copies of all new leases (and of all renewals, amendments or modifications
of existing leases) that were executed by Borrower during the calendar quarter in question.

 

9.2.3        Monthly
Reports.

 

(a)          If
Borrower is then required to deposit Net Cash Flow in the Cash Reserve Account pursuant to the terms of Section 10.2 below,
within twenty (20) days following the end of each calendar month, operating statement with respect to the Property showing the
results of operation for the preceding twelve-month trailing period.

 

(b)          If
Borrower is then required to deposit Net Cash Flow in the Cash Reserve Account pursuant to the terms of Section 10.2 below,
prior to each NCF Payment Date, a Net Cash Flow Statement for the immediately preceding NCF Period certifying Borrower’s
calculation of monthly Net Cash Flow for the immediately preceding NCF Period and the amount required to be deposited by Borrower
in the Cash Reserve Account pursuant to Section 10.2 of this Agreement (e.g., if January 15, 2020 is an NCF Payment Date,
on or before January 15, 2020 Borrower shall have submitted to Agent a Net Cash Flow Statement for the December, 2019 NCF Period).

 

9.2.4        Data
Requested. Within a reasonable period of time and from time to time such other financial data and information (in each case
unaudited) as Agent may reasonably request in writing with respect to the Property or Borrower or Guarantor, including, but not
limited to, rent rolls, aged receivables, aged payables, leases, budgets, forecasts, reserves, cash flow projections, physical
condition of the Property and pending lease proposals.

 

9.2.5        Tax
Returns. Within thirty (30) days after filing, complete copies of all federal and state tax returns and supporting schedules
of Borrower and Guarantor.

 

9.2.6        Budgets
and Pro Forma. Not later than January 20 of each calendar year, commencing January 20, 2019, a proposed operating expense budget
for the Property for such year and a pro-forma cash flow statement for the Property for such year, each in form reasonably acceptable
to Agent, together with copies of all budgets, forecasts and projections which support such proposed budget(s) and pro-forma for
such calendar year.

 

9.2.7        License
or Permit Notices. Concurrently with the giving thereof, and within five (5) Business Days after Borrower’s receipt thereof,
copies of all notices asserting a material default under, or requesting a material waiver, modification or amendment of, any License
or Permit.

 

9.2.8        Guarantor's
Statements. When due pursuant to the terms of the Guaranty, the financial statements and reports required to be furnished by
Guarantor as set forth in the Guaranty.

 

    	 	56	 

     

    

 

9.2.9         Additional
Information. In addition, Borrower shall furnish to Agent:

 

(a)          Promptly
after the commencement thereof, notice of all actions, suits and proceedings before any court or other Governmental Authority,
domestic or foreign, affecting the Borrower or Guarantor, which, if determined adversely to the Borrower or Guarantor, could reasonably
be expected to have a Material Adverse Effect; and

 

(b)          Promptly
after the filing or receiving thereof, copies of all reports, including annual reports, and notices which the Borrower files with
or receives from the Pension Benefit Guaranty Corporation or the United States Department of Labor under ERISA, to the extent Borrower
is required to file or receives such reports; and

 

(c)          Promptly
after Borrower receives actual knowledge thereof, notice of the existence of any Default or Event of Default; and

 

(d)          Promptly
after Borrower receives actual knowledge thereof, notice of any change reasonably expected to have a Material Adverse Effect; and

 

(e)          Prompt
written notice of any change in the information provided in the most recently delivered Beneficial Ownership Certification that
would result in a change to the list of beneficial owners identified therein.

 

9.2.10       Intentionally
Omitted.

 

9.2.11       Reporting
Medium. All financial reports and statements provided to Agent pursuant to this Section 9 may be submitted to Agent
in “hard copy” or in electronic medium (i.e., as an email attachment) in a format reasonably acceptable to Agent.

 

9.3           Payment
of Taxes and Other Obligations; Tax Escrow Account.

 

9.3.1        Payment.
Subject to the right to contest set forth in Section 10.1, Borrower shall duly pay and discharge, or cause to be paid and
discharged, before the same shall become overdue, all taxes, assessments and other governmental charges payable by it, or with
respect to the Property, as well as all claims or obligations for labor, materials, supplies or services (involving an amount in
excess of $50,000 in any instance or $150,000 in the aggregate) or for borrowed funds in any amount. Borrower shall (or shall cause
Tenant or Hotel Manager to) pay all Hotel Taxes now or hereafter payable to the applicable Governmental Authority prior to delinquency
as the same become due and payable.

 

9.3.2        Tax
Escrow Account. Within ten (10) days after Agent's demand made at any time during which there exists and shall be continuing
any Event of Default, Borrower shall make monthly tax and insurance payments to Agent for deposit in the Tax Escrow Account, in
accordance with the provisions of Article 8 in the Mortgage. Borrower's obligation to make such tax and insurance payments
shall continue until such Event of Default shall have been cured. Borrower's failure to make any such tax or insurance payment
within ten (10) days after the due date thereof (no additional grace or notice period being applicable thereto) shall constitute
an Event of Default under this Agreement. If Borrower is required to open a Tax Escrow Account pursuant to the terms of this Agreement,
in connection therewith Borrower shall execute and deliver a so-called “Deposit Account Control Agreement” with respect
to the Tax Escrow Account in substantially the form required by Citizens at that time.

 

    	 	57	 

     

    

  

9.4            Conduct
of Business; Compliance with Law. Borrower shall engage solely in the ownership and operation of the Property and related activities,
and will not enter into any new ventures, or undertake any new Investments, or any new business dealings which do not directly
relate to the ownership and operation of the Property, without the Required Lenders' express prior written consent in each instance.
As an express inducement to Lenders to make and maintain the Loan, the Borrower agrees that at all times prior to payment and satisfaction
of all Obligations, the Borrower shall be and remain a Bankruptcy Remote Entity. Borrower shall operate the Property and conduct
its affairs in a lawful manner and in substantial compliance with all Legal Requirements applicable thereto including without limitation
all applicable provisions of ERISA.

 

9.5            Insurance.
Borrower shall at all times maintain in full force and effect the insurance coverages set forth in Exhibit C of this Agreement
and shall cause Agent to be designated as mortgagee/loss payee and as additional insured in accordance with the requirements of
Exhibit C. All insurance premiums shall be paid in advance not less than ten (10) days prior to the due dates thereof, and
Agent shall be provided with evidence of such prepayment of insurance premiums prior to closing and thereafter at least thirty
(30) days prior to each date on which the coverage may lapse for non-payment or otherwise or replacement of such coverages. If
Borrower fails to provide and pay for such insurance and deliver to Agent evidence of such payment within five (5) days of the
demand for same by Agent, Agent may, at Borrower's expense, procure the same, but Agent shall not be required to do so.

 

9.6            Restrictions
on Liens, Transfers and Additional Debt

 

9.6.1         Prohibited
Transactions. Except for Permitted Transactions, the Borrower shall not:

 

(a)          create
or incur, or suffer to be created or incurred, or to exist, any encumbrance, mortgage, deed of trust, pledge, lien, charge or other
security interest of any kind, or any negative pledge of any kind, upon any of its assets of any character, whether or not related
to the Property, or any portion thereof, whether now owned or hereafter acquired or upon the proceeds or products thereof;

 

(b)          create
or incur any Indebtedness, whether secured or unsecured, either directly or as a guarantor, except for the Loan and Permitted Additional
Debt;

 

(c)          issue
any ownership interests in addition to those specified in Exhibit A, or issue any rights or instruments that are convertible
into any such additional ownership interests;

 

    	 	58	 

     

    

 

(d)          permit
any sale, transfer, exchange, assignment or pledge of or grant of any security interest in (i) any ownership interests in Borrower
or (ii) any Distributions on account of any such ownership interests or any proceeds thereof;

 

(e)          sell,
lease, convey, transfer or exchange any of its material assets of any character, whether or not related to the Property, or any
portion thereof, whether now owned or hereafter acquired; or

 

(f)          permit
any Person to create or incur any Indebtedness, whether secured or unsecured, either directly or as a guarantor, which is in any
way recourse (whether directly, indirectly, absolutely or contingently) to Borrower or to any assets that are owned by Borrower.

 

9.6.2        Permitted
Transactions. The term “Permitted Transactions” shall mean Permitted Transfers, Permitted Additional Debt, Permitted
Title Exceptions and Approved Leases.

 

9.6.3        Permitted
Transfers. The term “Permitted Transfers” shall mean:

 

(a)          the
Security Documents and other agreements in favor of Agent on behalf of the Lenders;

 

(b)          transactions,
whether outright or as security, for which the Required Lenders' prior written consent has been obtained, which consent may be
withheld, granted or granted conditionally, subject to such protective and other conditions as the Required Lenders may require
in their sole and absolute discretion;

 

(c)          sales
or dispositions in the ordinary course of business of worn, obsolete or damaged items of personal property or fixtures which are
suitably replaced if needed; and

 

(d)          the
transfer, issuance, sale, trade, or barter of any direct or indirect ownership interests in shares or stock of Procaccianti Hotel
REIT, Inc. (the "REIT") or interests in the Member (including, without limitation, any direct or indirect interest in
the same, including options, warrants, membership interests, profit interests or the issuance of any rights or instruments that
are convertible into any such shares or interests). Notwithstanding the foregoing, at all times: (i) James A. Procaccianti and
his Affiliates shall continue to own, in the aggregate, directly or indirectly, not less than fifty-one percent (51%) of the Class
A Shares of the REIT; (ii) each of James A. Procaccianti and Gregory D. Vickowski shall be an officer and director of the REIT;
(iii) the REIT shall maintain an advisory agreement pursuant to which Procaccianti Hotel Advisors, LLC, a Delaware limited liability
company (“PH Advisor”), operates, directs and supervises the operations and administration of the REIT and its investments,
subject to and in accordance with such advisory agreement, which advisory agreement shall be in substantially similar form to the
Amended and Restated Advisory Agreement dated as of August 2, 2018 by and between the REIT, the Member, and PH Advisor; and (iv)
PH Advisor shall continue to be under common Control with the Guarantor. Any failure to satisfy the conditions set forth in clauses
(i) through (iv) of the immediately preceding sentence shall be deemed a material breach of this Section 9.6.3(d).

 

    	 	59	 

     

    

 

Borrower agrees and acknowledges that any
Permitted Transfer made pursuant to Section 9.6.3(b) above is subject to the disclosure requirements that are described
in Section 17.26 below.

 

9.6.4         Permitted
Additional Debt. The term “Permitted Additional Debt” shall mean:

 

(a)          Indebtedness,
whether secured or unsecured, for which the Required Lenders' prior written consent has been obtained, which consent may be withheld,
granted or granted conditionally subject to such protective and other conditions as the Required Lenders may require in their sole
and absolute discretion;

 

(b)          unsecured
Indebtedness (excluding borrowed funds) which is incurred in the ordinary course of business of operating the Property for Operating
Expenses and which is payable without interest if paid by the applicable due date;

 

(c)          Inter-Company
Loans (i) which are fully subordinated to the payment and performance of all Obligations, (ii) which are unsecured, and (iii) with
respect to which (x) Agent and the obligee have entered into a written Subordination Agreement; and (y) Required Lenders' prior
written consent has been obtained, which consent may be withheld, granted or granted conditionally subject to such protective and
other conditions as Required Lenders may require in their sole and absolute discretion;

 

(d)          any
tax, assessment, charge, levy or claim which is not yet delinquent or which is being contested as described in Section 10.1.1
provided that Borrower is in compliance with the terms of Section 10.1.1;

 

(e)          Indebtedness
which ordinarily will be passed through to and paid by the tenants of the Property incurred in the ordinary course of operating
the Property;

 

(f)          purchase
money Indebtedness or equipment lease obligations incurred in the ordinary course of business of operating the Property which do
not exceed $250,000 in the aggregate at any one time;

 

(g)          Indebtedness
arising pursuant to any Hedging Contracts now or hereafter entered into by Borrower with Citizens (or with any Affiliate of Citizens
Financial Group, Inc.) in connection with the Loan;

 

    	 	60	 

     

    

 

(h)          Indebtedness
arising pursuant to or in connection with Borrower's obligations as landlord under Approved Leases; and

 

(i)          Indebtedness
arising pursuant to Permitted Title Exceptions.

 

9.6.5         Additional Funds. All funds required for the Property (including any funds required for Acquisition Costs, capital expenditures
and leasing costs) in excess of those available from the Loan, shall be provided by Borrower.

 

9.6.6         Right
to Accelerate Loan. The Loan shall become due and payable in full, and the Required Lenders shall have the right to direct
Agent to accelerate the Loan and declare an Event of Default, at the option of the Required Lenders, upon any breach or violation
of the provisions of this Section 9.6, provided, however, except for a voluntary conveyance, mortgage, deed
of trust or lien (as to which no notice or grace periods shall be applicable), a Default under this Section 9.6 shall be
subject to the grace or notice periods provided in Section 11.1.4 or 11.2.4, whichever is shorter.

 

9.6.7         Required
Lenders' Options. Subject to Section 17.17(a), Required Lenders may, at their option, in lieu of causing Agent to accelerate
the Loan, and in their sole and absolute discretion, agree to waive compliance with the provisions of this Section 9.6 in
any instance upon compliance with such terms and conditions as Required Lenders may impose, including, without limitation, the
payment of a material fee and an increase in the interest rate and other terms of the Loan. Except for Permitted Transfers, Required
Lenders may grant or withhold, or conditionally grant, their consent to any proposed transfer in their sole and absolute discretion.

 

9.7           Limits
on Guaranties; No Improper Distributions.

 

9.7.1       No
Guaranties. The Borrower shall not guaranty the obligations of any Person.

 

9.7.2       No
Improper Distributions. Borrower shall not make any payment or Distribution of money or property (in any form) if such payment
or Distribution would constitute an Improper Distribution.

 

9.8           Restrictions
on Investments. Borrower shall not make or permit to exist any direct or indirect Investment in:

 

(a)           any
real property other than the Property; or

 

(b)           any
tangible personal property other than that acquired in the ordinary course of Borrower's present business in connection with owning,
managing and operating the Property.

 

    	 	61	 

     

    

 

9.9           Indemnification
Against Payment of Brokers' Fees. Borrower agrees to defend, indemnify and save harmless Agent and Lenders from and against
any and all liabilities, damages, penalties, costs, and expenses, relating in any manner to any brokerage or finder's fees in respect
of the Loan.

 

9.10         Environmental
Indemnity Obligations. Borrower and Guarantor have executed and delivered to Agent an Environmental Indemnity Agreement (the
 “Environmental Indemnity Agreement”) pursuant to the terms of which Borrower and Guarantor have jointly and severally
agreed to pay and perform their therein specified obligations with respect to environmental matters and to indemnify and hold Agent
and Lenders harmless with respect to such environmental matters. All obligations of Borrower and Guarantor under the Environmental
Indemnity Agreement are herein collectively defined as the “Environmental Indemnity Obligations”. The Environmental
Indemnity Obligations shall survive the foreclosure (or the acceptance of a deed-in-lieu of foreclosure) and/or discharge of the
Mortgage and shall for all purposes be deemed to be an Obligation and shall be fully secured by all of the other Security Documents.

 

9.11         No
Dissolution, Merger or Acquisition. Borrower shall not dissolve or liquidate, or merge or consolidate with, or otherwise acquire
all or substantially all of the assets of, any other Person, or enter into any merger or consolidation agreements.

 

9.12         Contracts
of a Material or Significant Nature. Except for contracts otherwise complying with this Agreement and contracts incident to
the routine operation of the Property such as utilities, insurance and maintenance, Borrower shall not enter into any other contracts,
agreements or purchase orders which would involve the expenditure, in the aggregate in any one year, of any amounts in excess of
the amounts contemplated by the then effective Property budget without, in each case, the Agent's prior written consent, which
consent shall not be unreasonably withheld or delayed, but which consent may be conditioned upon a demonstration by Borrower to
the Agent's reasonable satisfaction that the contract, agreement or purchase order is reasonable and that Borrower has adequate
resources to pay and perform the same.

 

9.13         Management
of the Property.

 

(a)          Borrower
shall cause Tenant to cause Hotel Manager to manage the Property in accordance with the Hotel Management Agreement and the Franchise
Agreement. Borrower shall cause Tenant to (a) diligently perform and observe all of the terms, covenants and conditions of
the Hotel Management Agreement on the part of Tenant to be performed and observed, (b) promptly notify Agent of any notice
to Tenant of any default by Tenant in the performance or observance of any of the terms, covenants or conditions of the Hotel Management
Agreement on the part of Tenant to be performed and observed, and (c) promptly notify Agent of any default by Hotel Manager
in the performance or observance of any of the terms, covenants or conditions of the Hotel Management Agreement on the part of
Hotel Manager to be performed and observed. 

 

(b)          Borrower
shall not permit Tenant to surrender, terminate, cancel, modify, renew or extend the Hotel Management Agreement or enter into any
other agreement relating to the management or operation of the Property with Hotel Manager or any other Person, or consent to the
assignment by the Manager of its interest under the Hotel Management Agreement, in each case without the express consent of Agent.

 

    	 	62	 

     

    

 

9.14         Pay
Indebtedness and Perform Obligations. Borrower shall:

 

(a)          make
full and timely payment when due of all amounts owed by the Borrower to the Agent and/or the Lenders, whether now existing or hereafter
arising;

 

(b)          duly
comply with all of the terms and covenants contained in each of the Loan Documents; and

 

(c)          subject
to the terms of Section 10.1 below, duly comply with all applicable provisions of all other agreements, indentures, leases,
contracts and other documents binding upon the Borrower;

 

all at the times (and in any case prior to the expiration of
any applicable grace periods) and places and in the manner set forth therein.

 

9.15         Deposit
of Proceeds; Bank Accounts.

 

(a)          Borrower
shall maintain all of its checking, depository and other “bank” accounts with Agent. All cash proceeds resulting from
the operations of Borrower and of the Property shall be deposited in one or more segregated deposit accounts at Agent.

 

(b)          Agent
and Lenders are hereby authorized, on or after the due date, to charge such accounts, or any other deposit account of Borrower
at Agent or at any Lender, with the amount of all payments due under this Agreement, the Notes or the other Loan Documents. The
failure of Agent or any Lender to so charge any such account shall not affect or limit Borrower's obligation to make any required
payment.

 

9.16         Place
for Records; Inspection. Borrower shall maintain all of its business records at the address specified at the beginning of this
Agreement. Upon two (2) Business Days' prior notice and at reasonable times during normal business hours Agent shall have the right
(through such agents or Consultants as Agent may designate) to examine Borrower's property and make copies of and abstracts from
Borrower's books of account, correspondence and other records, it being agreed that Lenders shall use reasonable efforts to not
divulge information obtained from such examination to others except in connection with Legal Requirements and in connection with
administering the Loan, enforcing their rights and remedies under the Loan Documents and in the conduct, operation and regulation
of their banking and lending businesses (which may include, without limitation, the transfer of the Loan or of participation interests
therein). Any transferee of the Loan or any holder of a participation interest in the Loan shall be entitled to deal with such
information in the same manner and in connection with any subsequent transfer of its interest in the Loan or of further participation
interests therein.

 

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9.17         Costs
and Expenses. Borrower shall pay all actual and reasonable costs and expenses incurred by Agent (whether prior or subsequent
to the date hereof and regardless of whether an Event of Default exists) in connection with (a) the negotiation, preparation, execution,
delivery, administration (to the extent imposed by Agent on similarly situated borrowers or under mortgage loans similar in type
and amount to the Loan), modification, amendment or waiver of, or consent under, any provision of this Agreement, any of the other
Loan Documents or any of the other documents to be delivered hereunder or thereunder, (b) the closing or administration of the
Loan, (c) any Default or alleged Default hereunder, (d) the exercise or defense of any right or remedy of Agent or any Lender,
or the enforcement of any obligations of Borrower, under this Agreement or any other Loan Document and (e) to the extent imposed
by Agent on similarly situated borrowers or under mortgage loans similar in type and amount to the Loan, the syndication of the
Loan; including in each case, without limitation, all reasonable fees and expenses associated with travel and all reasonable fees
and expenses of legal counsel (including outside legal counsel but excluding costs of in-house legal counsel), accountants, appraisers,
engineers, surveyors and consultants retained by Agent with respect thereto and with respect to advising Agent as to its rights
and obligations under this Agreement and the other Loan Documents. Additionally, if an Event of Default occurs, Borrower shall
pay all costs and expenses incurred by Agent and any of the Lenders (including, without limitation, the reasonable fees and expenses
of legal counsel, including outside legal counsel but excluding costs of in-house legal counsel) in connection with the restructuring
or enforcement (whether through negotiation, collection, bankruptcy, insolvency or other enforcement proceedings or otherwise)
of this Agreement and the other Loan Documents and the collection of the Loan, including, without limitation, any costs incurred
in connection with any attempt to inspect, verify, protect, preserve, restore, collect, sell, liquidate or otherwise dispose of
or realize upon any of the Collateral. Additionally, Borrower shall pay all costs and expenses incurred by Agent and any of the
Lenders (including, without limitation, the reasonable fees and expenses of legal counsel, including outside legal counsel but
excluding costs of in-house legal counsel) in connection with any litigation, contest, dispute, suit, proceeding or action brought
against Agent or any Lender by any third party relating in any way to the Property or any of the other Collateral, this Agreement
or any of the other Loan Documents or Borrower's affairs. Additionally, if any taxes (excluding taxes imposed upon or measured
by the net income of Agent or Lenders but including, without limitation, any stamp or documentary taxes or any other excise or
property taxes, note or mortgage taxes and all revenue stamps) shall be payable on account of the execution or delivery of this
Agreement, or the execution, delivery, issuance or recording of any of the other Loan Documents, or the creation of any of the
Obligations hereunder, by reason of any existing or hereafter enacted federal or state statute, Borrower will pay all such taxes,
including, but not limited to, any interest and penalties thereon, and will indemnify and hold Agent and Lenders harmless from
and against liability in connection therewith. Additionally, Borrower shall pay all recording, filing, title insurance and related
costs reasonably incurred by Agent in connection with the Loan. All amounts payable by Borrower pursuant to this Section 9.17
shall be due and payable ten (10) days after written demand to Borrower (which demand shall include invoices for such amounts).
All such amounts shall be additional Obligations under this Agreement and shall be secured by the Security Documents and the Collateral.
All such amounts shall bear interest at the Applicable Interest Rate (or, if applicable, the Default Rate).

 

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9.18         Compliance
with Legal Requirements. Borrower shall comply in all material respects with all Legal Requirements applicable to the Property,
Borrower, or both. Borrower shall obtain and keep in force any and all Licenses and Permits, franchises, or other governmental
authorizations necessary to the ownership of its material assets or to the conduct of a material portion of its business. Borrower
shall at all times keep and maintain all of its assets in compliance with, and shall not cause or permit any of the same to be
in material violation of, any applicable Environmental Legal Requirements.

 

9.19         General
Indemnity. Borrower shall indemnify, protect, and hold Agent, any Agent-Related Person, Lenders and their respective parents,
subsidiaries, directors, officers, employees, representatives, agents, successors, assigns, and attorneys (collectively, the “Indemnified
Parties”) harmless from and against any and all liabilities, obligations, losses, damages, penalties, fees, actions, causes
of action, judgments, suits, claims, costs, expenses (including, without limitation, actual and reasonable attorneys' fees and
legal expenses whether or not suit is brought and settlement costs), and disbursements of any kind or nature whatsoever which may
be imposed on, incurred by, or asserted against the Indemnified Parties, in any way relating to or arising out of the Property,
the Loan, the Collateral, the Loan Documents or any of the transactions contemplated therein (collectively, the “Indemnified
Liabilities”), to the extent that any of the Indemnified Liabilities results, directly or indirectly, from any claim made
or action, suit, or proceedings commenced by or on behalf of any Person other than the Indemnified Parties or Borrower. Notwithstanding
the foregoing, an Indemnified Party shall not be entitled to indemnification in respect of claims arising from acts of its own
gross negligence or willful misconduct to the extent that such gross negligence or willful misconduct is determined by the final
judgment of a court of competent jurisdiction, not subject to further appeal, in proceedings to which such Indemnified Party is
a proper party. The provisions of and undertakings and indemnification set forth in this paragraph shall survive the satisfaction
and payment of the Obligations and termination of this Agreement. To the extent that the foregoing undertaking by the Borrower
may be unenforceable for any reason, Borrower shall make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable Law.

 

9.20         Leasing
Matters.

 

9.20.1      Intentionally
Omitted.

 

9.20.2      Agent’s
Approval Required.

 

(a)          
Borrower shall be at liberty to renew, modify, amend, terminate or take other actions with respect to existing leases, or enter
into new leases, of premises within the Property on commercially reasonable terms and conditions, except that the Agent’s
prior written consent shall be required with respect to any such new lease. Agent shall not unreasonably withhold, delay or condition
its consent to any such requested termination, deviation or other action so long as the request is consistent with then existing
market conditions. To the extent requested by Agent, Agent shall be provided, within ten (10) Business Days following execution
thereof, with a full and complete copy of each permitted lease and any permitted renewal, amendment or modification thereof.

 

    	 	65	 

     

    

 

(b)          Any
lease, renewal, or modification or amendment of lease which has been so approved by the Agent and, if so requested by the Agent
as to which the tenant has executed an SNDA Agreement, an estoppel certificate, or both, in each case in form reasonably acceptable
to Agent, shall be an “Approved Lease”.

 

9.20.3     Borrower's
Requests. Any request by Borrower for an approval from Agent with respect to leasing matters shall be sent to Agent and shall
be accompanied, by the following: (a) for a new lease, an executive summary of the terms and conditions of any proposed
lease, and, if applicable, any proposed guaranty; (b) an economic analysis of any proposed lease, (c) if requested by Agent, a
complete copy of the proposed lease or amendment or modification thereof complete with all applicable schedules and exhibits; (d)
if requested by Agent, for a new lease, a complete copy of any proposed guaranty; (e) if requested by Agent (as to new leases or
amendments or modifications to existing leases involving material economic changes, and as to proposed sub-lets or assignments),
comprehensive financial information with respect to the proposed tenant and, if applicable, the proposed guarantor; and (f) an
executive summary of the facts and conditions relating to any proposed termination of lease.

 

9.20.4       Lenders'
Response.

 

(a)          Intentionally
omitted.

 

(b)          Agent
shall act on requests from Borrower for any approval under Section 9.20.2 in a commercially reasonable manner and, in any
event, Agent shall respond to any such request within ten (10) Business Days following Agent’s receipt thereof. Agent’s
response may consist of an approval or disapproval of the request, or a conditional approval thereof subject to specified conditions,
or a request for further data or information, or any combination thereof. In order to expedite the processing of requests for such
approvals, Borrower agrees to provide Lenders with as much advance information as is possible in a commercially reasonable manner
in advance of Borrower's formal request for an approval. Agent’s failure to respond to any request for any approval under
Section 9.20.2 within ten (10) Business Days following Agent’s receipt thereof, shall be deemed to be its disapproval
of such request.

 

9.20.5      SNDAs
and Estoppels. Agent shall have the right to require Borrower to cause each tenant and subtenant to execute and deliver to
Agent (a) a subordination, non-disturbance of possession and attornment agreement (“SNDA Agreement”) in form, content
and manner of execution reasonably acceptable to Agent, and (b) from time to time, an estoppel certificate in form and manner of
execution reasonably acceptable to Agent. In addition, upon the execution of any new Approved Lease and upon Borrower's request,
Agent shall execute and deliver an SNDA Agreement with such new tenant or subtenant.

 

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9.21         Intentionally
Omitted.

 

9.22         Tenant
Security Deposits. Upon Agent's written demand at any time during the continuance of any Event of Default, Borrower will transfer
to Agent all tenant and subtenant security deposits and other refundable deposits held by Borrower or by the Hotel Manager, which
tenant and subtenant security deposits and other refundable deposits will be held and applied by Agent in accordance with applicable
Law and the applicable leases or other agreements.

 

9.23         Audits.
Agent, upon request of the Required Lenders, may from time to time, upon notification to Borrower, conduct an audit of any and
all collateral and all books and records of Borrower, and all costs of one (1) audit per calendar year shall be reimbursed by Borrower
within thirty (30) days after the notification by Agent to Borrower of the completion of such audit.

 

9.24         Filings.
Borrower shall file all federal, state and local tax returns and other reports Borrower is required by Law to file.

 

9.25         Certain
Expenses. Borrower shall pay to Agent and/or Lenders, upon demand therefor, any and all reasonable fees, costs or expenses
which Agent and/or Lenders pays to a bank or other similar institution arising out of or in connection with (i) the forwarding
to Borrower, or to any other Person on behalf of Borrower, any proceeds of the Loan and (ii) the depositing for collection of any
check or item of payment received by or delivered to Agent and/or Lenders on account of the Obligations.

 

9.26         Compliance
with ERISA. Borrower shall (i) at all times make prompt payment of contributions required to meet the minimum funding standards
set forth in ERISA with respect to each ERISA Plan; (ii) promptly after the filing thereof, furnish to Agent copies of any annual
report required to be filed pursuant to ERISA in connection with each ERISA Plan and any other employee benefit plan of Borrower
subject to ERISA; (iii) notify Agent as soon as practicable of any Reportable Event and of any additional act or condition arising
in connection with any ERISA Plan which Borrower believes might constitute grounds for the termination thereof by the Pension Benefit
Guaranty Corporation or for the appointment by the appropriate United States district court of a trustee to administer such ERISA
Plan; and (iv) furnish to Agent, promptly upon Agent's request therefor, such additional information concerning any ERISA Plan
or any other such employee benefit plan as may be reasonably requested.

 

9.27         Records
and Books. Borrower shall keep adequate records and books of account with respect to its business activities in which proper
entries are made in accordance with GAAP reflecting all of its financial transactions.

 

9.28         Further
Assurances. Borrower shall, at Agent's request, promptly execute and deliver or cause to be executed and delivered to Agent
any and all documents, instruments and agreements reasonably deemed necessary by Agent to perfect or to continue the perfection
of Agent's liens or otherwise to give effect to or carry out the terms or intent of this Agreement or any of the other Loan Documents.

 

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9.29         Borrower
Cooperation with Sell Down. Borrower agrees that it will assist Agent in achieving timely sales of portions of the Loan (whether
via syndication or the sale of participation interests), which assistance will be accomplished by a variety of means including
direct contact between senior officers and advisers of the Borrower and any proposed participants or new Lenders. Borrower shall
provide, and shall cause its advisers to provide, all reasonable information reasonably requested by Agent in order to accomplish
such a sale or sales of interests in the Loan. In connection with the above, Borrower will not be required to make any certifications
not otherwise provided for in this Agreement and Borrower will not be required to incur any material expense.

 

9.30         Substitute
Notes. In connection with the closing of the Loan, Borrower is executing and delivering to Agent one Note in the principal
amount of $17,836,000.00. Thereafter, Borrower shall execute such replacement and substitute Notes (the “Substitute Note(s)”)
as may be requested by Agent or Agent and any Lender from time to time to facilitate the issuance of individual Notes to each of
the Lenders or the assignment by a Lender of all or part of its rights and obligations under this Agreement, provided, however,
such Substitute Note(s) shall in the aggregate total the amount of the Note being replaced, and upon delivery of a Substitute Note,
the Agent or Lender in question shall conspicuously mark the face of the Note being substituted with the following legend: “THIS
NOTE HAS BEEN RENEWED AND SUBSTITUTED” and promptly return same to Borrower.

 

9.31         New
Places of Business. Borrower shall not transfer its principal place of business or chief executive office without at least
thirty (30) days prior written notice to Agent.

 

9.32         New
Name or State of Organization; Fictitious Names. Borrower shall not change its name or jurisdiction of organization or use
any fictitious name or “d/b/a” except upon thirty (30) days prior written notice to Agent and after the filing by Agent
of UCC Financing Statements, in form and substance satisfactory to Agent to perfect or continue the perfection of Agent's liens
and security interests.

 

9.33         Margin
Stock. Borrower shall not own, purchase or acquire (or enter into any contract to purchase or acquire) any “margin security”,
as defined by any regulation of the Federal Reserve Board as now in effect or as the same may hereafter be in effect.

 

9.34         Fiscal
Year. Borrower shall not change its fiscal year.

 

9.35         No
Modification of Inter-Company Loans. Borrower shall not (a) amend, modify or terminate any document governing, evidencing or
otherwise related to any Inter-Company Loan in any way that creates any change that conflicts with the relevant Subordination Agreement
or this Agreement, or (b) make any payment under any Inter-Company Loan in a manner that is inconsistent with the terms of the
applicable Subordination Agreement or of Section 9.7.2 of this Agreement.

 

9.36         Lost
Notes, etc. Upon receipt of an affidavit of an officer of any Lender as to the loss, theft, destruction or mutilation of any
Note (or of any other Loan Document which is not of public record), Borrower will issue, in lieu thereof, a replacement Note or
replacement other Loan Document in the same principal amount and otherwise of like tenor and identical in all respects.

 

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9.37          Prohibited
Transactions. Borrower shall not take any action, or fail to take any action, if such action or failure to act would cause
the execution, delivery and performance of the Loan Documents or the borrowing of any Loan Proceeds to involve any Prohibited Transaction.

 

9.38          Accounting
Method. Borrower shall not make or consent to a material change in its method of accounting (including, without limitation,
the basis of application of GAAP) or in its tax elections under the Code, as applicable, without, in each case, the prior written
consent of Agent which consent shall not be unreasonably withheld.

 

9.39          Subordinated
Indebtedness. Borrower shall not make any payment on any Indebtedness subordinated to the Loan in violation of any Subordination
Agreement or other agreement relating thereto.

 

9.40          Transactions
with Affiliates. Borrower shall not enter into, or be a party to, any transaction with any Affiliate (including, without limitation,
transactions involving the purchase, sale or exchange of property, the rendering of services or the sale of stock) except in the
ordinary course of business pursuant to the reasonable requirements of the Borrower and upon fair and reasonable terms no less
favorable to the Borrower than Borrower would obtain in a comparable arm's-length transaction with a person other than an Affiliate.

 

9.41          Construction
and Completion. Borrower shall promptly commence and diligently pursue to completion all work set forth in the capital expenditures
budget attached hereto as Exhibit H (the “Approved Capital Expenditures Budget”). Without limiting the foregoing,
all work required to be completed by Borrower pursuant to any so-called “Property Improvement Plan” now or hereafter
entered into by Borrower and the franchisor under the Franchise Agreement shall be completed when required in accordance with the
terms thereof. Borrower shall promptly correct and remedy any defects or deficiencies in construction of capital improvements or
tenant improvements or any future repairs, restorations, reconstructions or modifications thereto.

 

9.42          Interest
Rate Protection Agreements. If at any time Borrower
shall enter into any Interest Rate Protection Agreement with any Person, Borrower shall (a) deliver a copy of such Interest
Rate Protection Agreement (including all confirmations and schedules related thereto) to Agent within five (5) days after Borrower's
execution thereof, and (b) execute and deliver to Agent such additional documents as Agent may reasonably require in order to assign
all of Borrower's rights under any such Interest Rate Protection Agreement to Agent as additional security for the payment and
performance of Borrower's Obligations.

 

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9.43          Controlled
Substances. Without limiting the provisions of Section 9.4, Borrower shall not suffer or permit any tenant under any
lease to violate any Laws affecting the Property, including the Controlled Substances Act or the Civil Asset Forfeiture Reform
Act. Upon learning of any conduct contrary to this Section, Borrower shall promptly take all actions reasonably expected under
the circumstances to terminate any such use of the Property, including: (a) to give timely notice to an appropriate law enforcement
agency of information that led Borrower to know such conduct had occurred, and (b) in a timely fashion to revoke or make a good
faith attempt to revoke permission for those engaging in such conduct to use the Property or to take reasonable actions in consultation
with a law enforcement agency to prevent the illegal use of the Property.

 

9.44          Updated
Appraisals. Agent shall have the right to obtain a new or updated appraisals of the Property from time to time, and Borrower
shall cooperate with Agent in this regard. Any such new or updated appraisals shall be at Lenders' expense unless otherwise provided
in this Agreement or unless an Event of Default exists, in which case Borrower shall pay for any such new or updated appraisals.

 

9.45          No
Amendment of Limited Liability Company Agreement. The Borrower’s limited liability company agreement shall not be amended
in any material respect without the prior written consent of Agent, which consent shall not be unreasonably withheld.

 

9.46          License
and Permit Transfers. In the event that Agent exercises its right to foreclose any of the Security Documents, Borrower shall
fully cooperate with Agent (and/or any purchaser at any foreclosure sale) to cause the transfer of any and all Licenses and Permits
required for the operation of the Property to the purchaser at any such foreclosure sale or their nominee.

 

9.47          Required
Interest Rate Protection Agreement.

 

(a)            Borrower
shall at all times during the Term maintain a Required Interest Rate Protection Agreement in full force and effect. Prior to the
expiration of any Required Interest Rate Protection Agreement, Borrower shall purchase a replacement Required Interest Rate Protection
Agreement so that Borrower shall maintain a Required Interest Rate Protection Agreement in full force and effect at all times.
If Borrower fails to purchase any such Required Interest Rate Protection Agreement, Agent may, at its option, purchase a Required
Interest Rate Protection Agreement that is acceptable to Agent and, in any such case, Borrower shall pay to Agent, on demand, all
costs incurred by Agent in connection therewith, together with interest on such amount at the Default Rate. Borrower shall not
terminate, consent to a termination or agree to any amendment to any Required Interest Rate Protection Agreement without the prior
written consent of Agent in each instance.

 

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(b)            Borrower
shall comply with all of its obligations under the terms and provisions of any Required Interest Rate Protection Agreement. Borrower
shall take all actions reasonably requested by Agent to enforce Agent’s rights under any Required Interest Rate Protection
Agreement in the event of a default by the Counterparty and Borrower shall not waive, amend or otherwise modify any of its rights
thereunder. Borrower shall not (i) without the prior written consent of Agent, modify, amend or supplement the terms of any
Required Interest Rate Protection Agreement, (ii) without the prior written consent of Agent, cause the termination of any
Required Interest Rate Protection Agreement prior to its stated maturity date, (iii)  without the prior written consent of
Agent, waive or release any obligation of the Counterparty (or any successor or substitute party to any Required Interest Rate
Protection Agreement) under any Required Interest Rate Protection Agreement, (iv) without the prior written consent of Agent,
consent or agree to any act or omission to act on the part of the Counterparty (or any successor or substitute party to any Required
Interest Rate Protection Agreement) which, without such consent or agreement, would constitute a default under such Required Interest
Rate Protection Agreement, (v) fail to exercise promptly and diligently each and every material right which it may have under
any Required Interest Rate Protection Agreement, (vi) take or omit to take any action or suffer or permit any action to be
omitted or taken, the taking or omission of which would result in any right of offset against sums payable under any Required Interest
Rate Protection Agreement or any defense by the Counterparty (or any successor or substitute party to any Required Interest Rate
Protection Agreement) to payment or (vii) fail to give prompt written notice to Agent of any notice of default given or received
by Borrower under or with respect to any Required Interest Rate Protection Agreement, together with a complete copy of any such
notice.

 

(c)            If
for any reason the Counterparty’s rating shall fall below the Minimum Counterparty Rating, Borrower shall within ten (10)
Business Days following receipt of notice thereof from Agent, procure a new interest rate protection product from a counterparty
having a rating equal to the Minimum Counterparty Rating in the form of the Required Interest Rate Protection Agreement and Borrower
shall pledge same to Agent pursuant to an assignment of interest rate protection agreement in the form of the Assignment of Interest
Rate Protection Agreement or such other assignment form as is then generally utilized by Agent and accompanied by an opinion letter
from counsel to such new Counterparty in form and substance reasonably satisfactory to Agent. The provisions of this subsection (b)
shall not be applicable if the Counterparty is Agent or an Affiliate of Agent.

 

9.48          Certain
Operating Lease Covenants. Borrower further covenants and agrees with Agent as follows:

 

(a)            Borrower
shall not, without Agent’s prior consent: (i) surrender, terminate or cancel the Operating Lease; (ii) reduce or consent
to the reduction of the term of the Operating Lease; (ii) increase or consent to the increase of the amount of any rent or other
charges under the Operating Lease; or (iii) otherwise modify, change, supplement, alter or amend, or waive or release any of its
rights and remedies under the Operating Lease in any material respect; and

 

(b)            Borrower
shall: (i) promptly perform and/or observe all of the covenants and agreements required to be performed and observed by it under
the Operating Lease and do all things necessary to preserve and to keep unimpaired its rights thereunder; (ii) promptly notify
Agent of any default under the Operating Lease of which it is aware; and (iii) promptly deliver to Agent a copy of each financial
statement, business plan, capital expenditures plan, notice, report and estimate received by Borrower under the Operating Lease.

 

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9.49          Certain
Hotel/Franchise Agreement Covenants. Borrower further covenants and agrees with Agent as follows:

 

(a)            Borrower
shall not, without Agent’s prior consent permit the Tenant to: (i) surrender, terminate or cancel the Franchise Agreement;
(ii) change the brand or “flag” set forth in the Franchise Agreement; (iii) reduce or consent to the reduction of the
term of the Franchise Agreement; (vi) increase or consent to the increase of the amount of any charges under the Franchise Agreement;
or (v) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under the Franchise
Agreement in any material respect; 

 

(b)            Borrower
shall not permit Tenant to, without Agent’s written consent, enter into transactions with any affiliate, including, without
limitation, any arrangement providing for the managing of the Property, the rendering or receipt of services or the purchase or
sale of inventory, except any such transaction in the ordinary course of business of Tenant if the monetary or business consideration
arising therefrom would be substantially as advantageous to Tenant as the monetary or business consideration that would obtain
in a comparable transaction with a Person not an Affiliate of Tenant;

 

(c)            Borrower
and Tenant shall cause the Property to be operated pursuant to the Franchise Agreement; 

 

(d)            Borrower
shall cause Tenant to:

 

(i)          promptly
perform and/or observe all of the covenants and agreements required to be performed and observed by it under the Franchise Agreement
and do all things necessary to preserve and to keep unimpaired its rights thereunder;

 

(ii)         promptly
notify Agent of any default under the Franchise Agreement of which it is aware;

 

(iii)        promptly
deliver to Agent a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received
by Master Tenant under the Franchise Agreement; and

 

(e)            promptly
enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed by the franchisor
under the Franchise Agreement.

 

		10.	SPECIAL PROVISIONS.

 

10.1          Right
to Contest.

 

10.1.1       Taxes
and Claims by Third Parties. Notwithstanding the provisions of Section 9.3 which obligate Borrower to pay taxes and
other obligations to third parties when due, it is agreed that any tax, assessment, charge, levy, claim or obligation to a third
party (expressly excluding an obligation created under the Loan Documents) need not be paid while the validity or amount thereof
is being contested currently, diligently and in good faith by appropriate proceedings and if Borrower has adequate unencumbered
(except in favor of Agent) cash reserves with respect thereto or if Borrower has fully bonded such claim, and provided that
such contest does not create a default by landlord under any lease assigned to Agent; and provided, further, that
Borrower shall pay all taxes, assessments, charges, levies or obligations: (a) immediately upon the commencement of proceedings
to enforce any lien which may have attached as security therefor, unless such proceeding is stayed by proper court order pending
the outcome of such contest; and (b) as to claims for labor, materials or supplies, prior to the imposition of any lien on the
Property unless the lien is discharged or bonded as set forth in Section 11.1.4.

 

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10.1.2       Legal
Requirements. Borrower may contest any claim, demand, levy or assessment under any Legal Requirements by any Person if: (a)
the contest is based upon a material question of law or fact raised by Borrower in good faith; (b) Borrower properly commences
and thereafter diligently pursues the contest; (c) the contest will not materially impair the ability to ultimately comply with
the contested Legal Requirement should the contest not be successful and the conduct of the contest will not materially interfere
with the landlord's ability to obligate all tenants and other occupants to pay all Rents and other charges without offset; (d)
Borrower demonstrates to the Agent's reasonable satisfaction that Borrower has the financial capability to undertake and pay for
such contest and any corrective or remedial action then or thereafter reasonably likely to be necessary; (e) no Event of Default
exists; (f) in any case in which the likely cost of complying with the Legal Requirement in the event the contest is not successfully
resolved, as reasonably determined by Agent, is more than $50,000, there is no reason to believe that the contest will not be resolved
prior to the original Maturity Date or, if an Extended Term has become effective, prior to the applicable Extended Maturity Date;
and (g) if the contest relates to an Environmental Legal Requirement, the conditions set forth in the Environmental Indemnity Agreement
relating to such contest shall all be satisfied.

 

10.2          Debt
Service Coverage Ratio, Cash Reserve Account and Required Principal Payments.

 

10.2.1       (a)
         Commencing with the Calculation Period ending September 30, 2018 and on each other Calculation Date thereafter during the Term,
Agent shall calculate the then Debt Service Coverage Ratio.

 

(b)          If,
on any such Calculation Date occurring during the Initial Term, the Debt Service Coverage Ratio is calculated to be less than 1.25
to 1 but greater than 1.1 to 1, then within ten (10) days after written notice from Agent, Borrower shall either: (i) pay down
the outstanding principal balance of the Loan to such amount as would have caused such Debt Service Coverage Ratio requirement
to have been satisfied if such reduced principal balance had been in effect on such Calculation Date (the “Initial Term Required
DSC Amount”), (ii) furnish to Agent an Acceptable Letter of Credit in an amount equal to the Initial Term Required DSC Amount
as additional security for the Obligations, or (iii) deposit in the Cash Reserve Account all Net Cash Flow received by Borrower
during the immediately preceding NCF Period and deposit in the Cash Reserve Account on or before each NCF Payment Date thereafter
all Net Cash Flow received by Borrower during the immediately preceding NCF Period until such time as the Debt Service Coverage
Ratio is greater than or equal to 1.25 to 1 for two (2) consecutive calendar quarters on the Calculation Date in question. If,
on any Calculation Date, the Debt Service Coverage Ratio is calculated to be greater than 1.25 to 1 for two (2) consecutive calendar
quarters, provided that there does not then exist any Default, upon written request from Borrower (i) Agent shall remit any funds
then on deposit in the Cash Reserve Account (if any) to Borrower and (ii) Borrower shall no longer be required to deposit all Net
Cash Flow in the Cash Reserve Account pursuant to this Section 10.2.1(b) as long as the Debt Service Coverage Ratio continues
to be greater than or equal to the ratio that is then required pursuant to this Section 10.2.1.

 

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(c)          If,
on any Calculation Date occurring during the First Extended Term or Second Extended Term, the Debt Service Coverage Ratio is calculated
to be less than 1.3 to 1 but greater than 1.1 to 1, then within ten (10) days after written notice from Agent, Borrower shall either:
(i) pay down the outstanding principal balance of the Loan to such amount as would have caused such Debt Service Coverage Ratio
requirement to have been satisfied if such reduced principal balance had been in effect on such Calculation Date (the “First/Second
Extended Term Required DSC Amount”), (ii) furnish to Agent an Acceptable Letter of Credit in an amount equal to the First/Second
Extended Term Required DSC Amount as additional security for the Obligations, or (iii) deposit in the Cash Reserve Account all
Net Cash Flow received by Borrower during the immediately preceding NCF Period and deposit in the Cash Reserve Account on or before
each NCF Payment Date thereafter all Net Cash Flow received by Borrower during the immediately preceding NCF Period until such
time as the Debt Service Coverage Ratio is greater than or equal to 1.3 to 1 for two (2) consecutive calendar quarters on the Calculation
Date in question. If, on any Calculation Date, the Debt Service Coverage Ratio is calculated to be greater than 1.3 to 1 for two
(2) consecutive calendar quarters, provided that there does not then exist any Default, upon written request from Borrower (i)
Agent shall remit any funds then on deposit in the Cash Reserve Account (if any) to Borrower and (ii) Borrower shall no longer
be required to deposit all Net Cash Flow in the Cash Reserve Account pursuant to this Section 10.2.1(c) as long as the Debt
Service Coverage Ratio continues to be greater than or equal to the ratio that is then required pursuant to this Section 10.2.1.

 

(d)          If,
on any Calculation Date occurring during the Third Extended Term, the Debt Service Coverage Ratio is calculated to be less than
1.35 to 1 but greater than 1.1 to 1, then within ten (10) days after written notice from Agent, Borrower shall either: (i) pay
down the outstanding principal balance of the Loan to such amount as would have caused such Debt Service Coverage Ratio requirement
to have been satisfied if such reduced principal balance had been in effect on such Calculation Date (the “Third Extended
Term Required DSC Amount”), (ii) furnish to Agent an Acceptable Letter of Credit in an amount equal to the Third Extended
Term Required DSC Amount as additional security for the Obligations, or (iii) deposit in the Cash Reserve Account all Net Cash
Flow received by Borrower during the immediately preceding NCF Period and deposit in the Cash Reserve Account on or before each
NCF Payment Date thereafter all Net Cash Flow received by Borrower during the immediately preceding NCF Period until such time
as the Debt Service Coverage Ratio is greater than or equal to 1.35 to 1 for two (2) consecutive calendar quarters on the Calculation
Date in question. If, on any Calculation Date, the Debt Service Coverage Ratio is calculated to be greater than 1.35 to 1 for two
(2) consecutive calendar quarters, provided that there does not then exist any Default, upon written request from Borrower (i)
Agent shall remit any funds then on deposit in the Cash Reserve Account (if any) to Borrower and (ii) Borrower shall no longer
be required to deposit all Net Cash Flow in the Cash Reserve Account pursuant to this Section 10.2.1(d) as long as the Debt
Service Coverage Ratio continues to be greater than or equal to the ratio that is then required pursuant to this Section 10.2.1.

 

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(e)          As provided in Section 9.2.3 above,
if Borrower is required to deposit Net Cash Flow in the Cash Reserve Account pursuant to the terms of this Agreement, then on or
prior to the 15th day of each calendar month, Borrower shall furnish to Agent, a Net Cash Flow Statement certifying
Borrower’s monthly calculation of Net Cash Flow for the immediately preceding NCF Period (i.e., the preceding calendar month).

 

10.2.2       If
on any such Calculation Date occurring during the Initial Term or during any Extended Term (if applicable), the Debt Service Coverage
Ratio is calculated to be less than 1.1 to 1, then within ten (10) days after written notice from Agent, Borrower shall either
(i) pay down the outstanding principal balance of the Loan to such amount as would have caused the then applicable Debt Service
Coverage Ratio requirement under Section 10.2.1(b), (c), or (d) to have been satisfied if such reduced principal balance
had been in effect on the Calculation Date in question or (ii) furnish to Agent an Acceptable Letter of Credit in the amount required
under preceding clause (i) as additional security for the Obligations. If Borrower elects to furnish any such Acceptable Letter
of Credit and thereafter the then applicable Debt Service Coverage Ratio requirement under Section 10.2.1(b), (c), or (d)
shall have been satisfied for at least two (2) consecutive Calculation Periods, as long as there does not then exist any Event
of Default, Agent shall, upon Borrower's written request, return such Acceptable Letter of Credit to Borrower.

 

10.2.3       To
the extent required under Section 10.2.1 above, (a) Borrower shall establish with Citizens as depository bank, a Cash Reserve
Account, (b) the Borrower shall deposit funds in the amount(s) required pursuant to Section 10.2.1 above with Citizens as
depository bank, in the Cash Reserve Account, and (c) Borrower shall to the extent required herein at all times thereafter maintain
and fund such Cash Reserve Account in the amount(s) required pursuant to Section 10.2.1 above. If Borrower is required to
establish a Cash Reserve Account pursuant to the terms of this Agreement, in connection therewith Borrower shall execute and deliver
a so-called “Deposit Account Control Agreement” with respect to the Cash Reserve Account in substantially the form
reasonably required by Citizens as depository bank at that time.

 

10.2.4       The
Cash Reserve Account shall be pledged and assigned to the Agent, for its benefit and for the benefit of the Lenders, as additional
collateral for the payment and performance of the Obligations. Any Acceptable Letter of Credit furnished by Borrower pursuant to
this Section 10.2 shall be held by Agent, for its benefit and for the benefit of the Lenders, as additional collateral for
the payment and performance of the Obligations. Agent shall have no obligation to apply any funds in the Cash Reserve Account or
any such Acceptable Letter of Credit against interest or principal payments due in connection with the Loan and any such application
shall be made by Agent in the Required Lenders’ sole discretion. Any amounts remaining in the Cash Reserve Account (if any)
upon repayment in full of the Loan and all other Obligations shall be released to Borrower.

 

10.2.5       It
shall be an Event of Default if Borrower fails to make any Cash Reserve Account deposit or any principal payment or to furnish
any Acceptable Letter of Credit that is required under this Section 10.2 within ten (10) days after written notice from
Agent properly requesting the same.

 

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10.3          Reduction
and Release of Repayment Guaranty.

 

10.3.1       Repayment
Guaranty Reduction. If on any Calculation Date, the Debt Service Coverage Ratio is calculated to be greater than 1.45 to 1
and the LTV Ratio (based on the Approved Appraised Value of the Property) is determined to be less than sixty percent (60%), Borrower
and Guarantor may request in writing that the “Guaranteed Principal Amount” as defined in the Guaranty be reduced to
ten percent (10%) of the Maximum Commitment (the “Repayment Guaranty Reduction”). In connection with such request,
Agent and Lenders agree that the “Guaranteed Principal Amount” shall be reduced in accordance with the terms of this
Section 10.3.1 and the terms and conditions of the Guaranty, upon satisfaction of the following conditions:

 

(a)          No
Default shall exist;

 

(b)          In
connection with the calculation of the LTV Ratio for purposes of this Section 10.3.1, to the extent a new MAI appraisal
of the Property shall be required pursuant to the definition of “Approved Appraised Value”, such appraisal must be
in all respects satisfactory to the Required Lenders. Borrower shall pay all costs incurred in connection with obtaining any such
new appraisal of the Property; and

 

(c)          Borrower
shall have executed and/or delivered to Agent and Lenders such agreements and documents and furnished to Agent and Lenders such
additional information as Agent or the Required Lenders may reasonably require incident to the Repayment Guaranty Reduction.

 

10.3.2.      Repayment
Guaranty Release. Following any prepayment of the Loan in accordance with the terms and conditions of Section 2.5.3
hereof, in an amount sufficient to reduce the LTV Ratio (based on the Approved Appraised Value of the Property) to less than fifty-five
percent (55%), Borrower and Guarantor may request in writing the release of the Guarantor’s guaranty obligations with respect
to the “Guaranteed Principal Amount” as defined in the Guaranty (the “Repayment Guaranty Release”). Agent
and Lenders agree that Agent is authorized to release the Guarantor’s guarantee of the “Guaranteed Principal Amount”,
in accordance with the terms and conditions of the Guaranty, upon satisfaction of the following conditions:

 

(a)          No Default shall exist;

 

(b)          The
Debt Service Coverage Ratio shall be equal to or greater than 1.45 to 1;

 

(c)          In
connection with the calculation of the LTV Ratio for purposes of this Section 10.3.2, to the extent a new MAI appraisal
of the Property shall be required pursuant to the definition of “Approved Appraised Value”, such appraisal must be
in all respects satisfactory to the Required Lenders. Borrower shall pay all costs incurred in connection with obtaining any such
new appraisal of the Property; and

 

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(d)          Borrower
shall have executed and/or delivered to Agent and Lenders such agreements and documents and furnished to Agent and Lenders such
additional information as Agent or the Required Lenders may reasonably require incident to the Repayment Guaranty Release.

 

10.4          Intentionally
Omitted.

 

10.5          Tenant
Letters of Credit.

 

10.5.1       All now or hereafter existing
Tenant Letters of Credit and all proceeds thereof shall be deemed to be security for the Loan (subject to the provisions of the
lease in question) and shall be deemed to be covered by and subject to the liens and security interests of the Security Documents.
In this regard, Borrower does hereby pledge, assign, transfer and deliver to Agent, and Borrower does hereby grant to Agent a continuing
security interest in, all now or hereafter existing Tenant Letters of Credit and all proceeds thereof. At Agent’s option,
any now existing or hereafter arising Tenant Letter of Credit which is in a principal amount of $200,000 or more shall either (a)
be transferred to Agent (i.e. name Agent the beneficiary thereof) and the original thereof shall be physically delivered to Agent
or (b) have all proceeds of any drawing thereof be assigned and made directly payable to Agent pursuant to an agreement with the
issuing bank in form reasonably satisfactory to Agent, in each case, within ten (10) Business Days after Borrower receives such
Tenant Letter of Credit.

 

10.5.2       At
all times prior to the payment in full of the Obligations, if a default shall occur under any lease that would entitle Borrower
(or Agent) to draw upon any Tenant Letter of Credit securing such lease, then:

 

(a)          as to Tenant Letters of Credit
that are in the name and possession of Borrower, Borrower shall take all actions necessary to draw upon such Tenant Letter of Credit
and collect all proceeds thereof (“Tenant LC Proceeds”): (i) in accordance with Borrower’s reasonable judgment
applying commercially reasonable business practices prior to the acceleration of the Loan by Agent; or (ii) at the direction of
Agent after the acceleration of the Loan by Agent; and

 

(b)          as to Tenant Letters of Credit
that are in the name and possession of Agent, (i) prior to the acceleration of the Loan by Agent, at Borrower’s written direction
given in accordance with Borrower’s reasonable judgment applying commercially reasonable business practices and at Borrower’s
cost and expense, Agent shall take all actions reasonably necessary to draw upon such Tenant Letter of Credit and collect all Tenant
LC Proceeds, and (ii) after the acceleration of the Loan by Agent, Agent shall take such actions with respect to any such Tenant
Letter of Credit as Agent in its sole discretion may deem appropriate.

 

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10.5.3       All
Tenant LC Proceeds received by Borrower (whether prior to or after Agent's acceleration of the Loan) shall be promptly paid to
Agent to be held by Agent as security for the Obligations (subject to the provisions of the lease in question) and all Tenant LC
Proceeds collected by Agent shall be held by Agent as security for the Obligations (subject to the provisions of the lease in question);
provided, however, as long as there does not exist any Event of Default, Borrower shall be entitled to draw upon any such
Tenant LC Proceeds (and Agent and Lenders shall be obligated to release such Tenant LC Proceeds to Borrower) (a) to pay Rents or
other amounts then due under the respective defaulted lease, (b) to pay tenant improvement costs and leasing commissions incurred
by Borrower in connection with the re-leasing of the space covered by the defaulted lease in question to a new tenant pursuant
to a new Approved Lease, and (c) to pay costs of collection in connection with the defaulted lease in question.

 

10.5.4       All
Tenant LC Proceeds received by Agent or otherwise in Agent’s possession after Agent's acceleration of the Loan shall be held
by Agent as security for the Obligations or shall be paid or applied by Agent to the Obligations or as may otherwise be deemed
appropriate by Agent in its sole discretion (subject in all cases to the provisions of the lease in question).

 

10.5.5          Any
Tenant Letter of Credit in the possession of Agent shall be returned to the respective tenant (or returned for reduction) when
required by the terms of the applicable lease. Upon the repayment in full of the Loan and upon written request from Borrower, Agent
will promptly deliver to Borrower any and all Tenant Letters of Credit in the possession and/or control of Agent, if any.

 

		11.	EVENTS OF DEFAULT.

 

The following provisions deal with Default,
Events of Default, notice, grace and cure periods, and certain rights of Agent and/or Lenders following an Event of Default.

 

11.1          Default
and Events of Default. The term “Default” as used herein or in any of the other Loan Documents shall mean an Event
of Default, or any fact or circumstance which constitutes, or upon the lapse of time, or giving of notice, or both, could constitute,
an Event of Default. Each of the following events, unless cured within any applicable grace period (if any) set forth or referred
to below in this Section 11.1, or in Section 11.2, shall constitute an “Event of Default”:

 

11.1.1       Generally.
A default by Borrower in the performance of any term, provision or condition of this Agreement to be performed by Borrower, or
a breach, or other failure to satisfy, any other term, provision, condition, covenant or warranty under this Agreement and such
default remains uncured beyond any applicable specific grace period (if any) provided for in this Agreement, or as set forth in
Section 11.2 below; or

 

11.1.2       Notes,
Mortgage and Other Loan Documents. A default by Borrower in the performance of any term or provision of any of the Notes, or
the Mortgage, or of any of the other Loan Documents, or a breach, or other failure to satisfy, any other term, provision, condition
or warranty under any of the Notes, the Mortgage or any other Loan Document, and the specific grace period, if any, allowed for
the default in question shall have expired without such default having been cured; or

 

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11.1.3       Financial
Status and Insolvency.

 

(a)          Borrower
shall: (i) admit in writing its inability to pay its debts generally as they become due as part of a general scheme to induce an
involuntary bankruptcy (for the avoidance of doubt, correspondence from Borrower to Agent or any Lender outside of legal proceedings
admitting insolvency or inability to pay debts as they become due will not give rise to liability pursuant to this clause (a));
(ii) file a petition in bankruptcy or a petition to take advantage of any insolvency act; (iii) make an assignment for the benefit
of creditors; (iv) consent to, or acquiesce in, the appointment of a receiver, liquidator or trustee of itself or of the whole
or any substantial part of its properties or assets; (v) file a petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under the Federal Bankruptcy Laws or any other applicable Law; (vi) have
a court of competent jurisdiction enter an order, judgment or decree appointing a receiver, liquidator or trustee of Borrower,
or of the whole or any substantial part of the property or assets of Borrower, and such order, judgment or decree shall remain
unvacated or not set aside or unstayed for sixty (60) days; (vii) have a petition filed against it seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under the Federal Bankruptcy Laws or any other applicable
Law and such petition shall remain undismissed for sixty (60) days; (viii) have, under the provisions of any other Law for the
relief or aid of debtors, any court of competent jurisdiction assume custody or control of Borrower or of the whole or any substantial
part of its property or assets and such custody or control shall remain unterminated or unstayed for sixty (60) days; or (ix) have
an attachment or execution levied against the Property or other material asset(s) of the Borrower which is not discharged or dissolved
by payment or a bond within thirty (30) days; or

 

(b)          any
event described in Section 11.1.3(a) shall occur with respect to the Borrower or Tenant; or

 

11.1.4       Liens.
A lien for the performance of work, or the supply of materials, or a notice of contract, or an attachment, judgment, execution
or levy is filed against any of the Land or any of the Improvements and remains unsatisfied or is not discharged or dissolved by
a bond (or otherwise collateralized by Cash Collateral acceptable to the Agent) for a period of thirty (30) days after the filing
thereof; or

 

11.1.5       Breach
of Representation or Warranty. Any material representation or warranty made by Borrower or Guarantor herein or in any other
instrument or document relating to the Loan or to the Property shall be materially false or misleading, or any warranty shall be
materially breached; or

 

11.1.6       Default
Under Significant Lease or Material Assigned Contract. Borrower defaults under any Significant Lease of the Improvements or
any material contract assigned to Agent and such default is not cured within the grace period applicable thereto such that the
tenant or contracting party obtains the right to terminate such lease or contract or to claim material damages; or

 

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11.1.7       Hedging
Contracts. There occurs under any Hedging Contract an Early Termination Date (as defined in such Hedging Contract) resulting
from (a) any event of default (after any required notice and expiration of any applicable cure period, if any) under such Hedging
Contract as to which Borrower is the Defaulting Party (as defined in such Hedging Contract) or (b) any Termination Event (as defined
in such Hedging Contract) under such Hedging Contract as to which Borrower is an Affected Party (as defined in such Hedging Contract);
or

 

11.1.8       Guarantor Default.
A default by Guarantor in the payment, performance or observance of any term or provision of the Guaranty or any other Loan Document
to which Guarantor is a party, or the breach, or any other failure to satisfy any other term, provision, condition or warranty
imposed upon the Guarantor in the Guaranty or in any other Loan Document to which it is a party; or

 

11.1.9       Intentionally
Omitted;

 

11.1.10     Judgments.
Any judgment for the payment of money which is not fully covered by insurance in an amount exceeding $40,000.00 is entered against
Borrower or exceeding $250,000.00 is entered against Guarantor, and Borrower or Guarantor fails to satisfy or discharge the same,
or cause it to be discharged or bonded to Agent's satisfaction, within thirty (30) days after the entry of such judgment; or

 

11.1.11     Other
Defaults. If Borrower or Guarantor shall default (after giving effect to any applicable grace period) in the due and punctual
payment of the principal or interest on any Indebtedness (other than the Loan) exceeding in the aggregate (i) $200,000.00 with
respect to Borrower, or (ii) $400,000.00 with respect to Guarantor, or if any default shall have occurred and be continuing after
any applicable grace period under any mortgage, note or other agreement evidencing, securing or providing for the creation of any
such Indebtedness, which results in the acceleration of such Indebtedness or which permits, or with the giving of notice or passage
of time would permit, any holder or holders of any such Indebtedness to accelerate the stated maturity thereof; or

 

11.1.12     Required
Interest Rate Protection Agreement. Borrower fails to purchase or maintain in full force and effect any Required Interest Rate
Protection Agreement or there occurs an Early Termination Date under any Required Interest Rate Protection Agreement (as defined
in such Required Interest Rate Protection Agreement) resulting from any of the events identified in Section 11.1.7(a) or
(b) with respect to a Required Interest Rate Protection Agreement; or

 

11.1.13     Operating
Lease, Hotel Management Agreement, or Franchise Agreement Default. Any Loan Party defaults in the payment, performance or observance
of any of its obligations under the Operating Lease, Hotel Management Agreement, or the Franchise Agreement and such default is
not cured within the grace period applicable thereto (if any).

 

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11.2          Grace
Periods and Notice. As to each of the foregoing events the following provisions relating to grace periods and notice shall
apply:

 

11.2.1       No
Notice or Grace Period. There shall be no grace period and no notice provision with respect to the payment of principal at
Maturity and no grace period and no notice provision with respect to defaults related to the voluntary filing of bankruptcy or
reorganization proceedings or an assignment for the benefit of creditors, or with respect to nonmonetary defaults which are not
reasonably capable of being cured, or with respect to a breach of material warranty or representation under Section 8.1
(regarding Financial Information), or with respect to material breaches under Section 9.6 (Restrictions on Liens, Transfers
and Additional Debt), and Section 9.7 (Limits on Guaranties; Improper Distributions). In addition, the below provisions
of this Section 11.2 shall not be applicable where (a) a grace or notice period is otherwise specifically provided for or
(b) it is specifically provided that no grace or notice period shall be applicable.

 

11.2.2       Nonpayment
of Interest and Principal. As to the nonpayment of interest, and installments of principal prior to Maturity, there shall be
a ten (10) day grace period without any requirement of notice from Agent or Lenders.

 

11.2.3       Other
Monetary Defaults. All other monetary defaults shall have a ten (10) day grace period following notice from Agent, or, if shorter,
a grace period without notice until ten (10) Business Days before the last day on which payment is required to be made in order
to avoid: (i) the cancellation or lapse of required insurance, or (ii) a tax sale or the imposition of late charges or penalties
in respect of taxes or other municipal charges.

 

11.2.4       Nonmonetary
Defaults and Breaches of Warranties and Representations Capable of Cure.

 

(a)          As
to nonmonetary defaults which are reasonably capable of being cured or remedied, unless there is a specific shorter or longer grace
period provided for in this Agreement or in another Loan Document, there shall be a thirty (30) day grace period following written
notice from Agent or, if such default would reasonably require more than thirty (30) days to cure or remedy, such longer period
of time (not to exceed a total of ninety (90) days from Agent's written notice) as may be reasonably required so long as Borrower
shall commence reasonable actions to remedy or cure the default within thirty (30) days following such written notice and shall
diligently prosecute such curative action to completion within such ninety (90) day period. However, where there is an emergency
situation in which there is danger to person or property such curative action shall be commenced as promptly as possible.

 

(b)          As
to breaches of warranties and representations (other than those related to financial information set forth in Section 8.1)
there shall be a thirty (30) day grace period following written notice from Agent.

 

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11.3          Certain
Remedies. If an Event of Default shall occur, Agent, at the request of the Required Lenders:

 

11.3.1       Accelerate
Obligations. Shall, by written notice to Borrower, declare the Obligations immediately due and payable provided that in the
case of a voluntary petition in bankruptcy filed by Borrower, by Guarantor or by any other Loan Party or (after the expiration
of the grace period if any set forth in Section 11.1.3 above) an involuntary petition in bankruptcy filed against Borrower,
Guarantor or any other Loan Party such acceleration shall be automatic whereupon each Note, and all accrued fees and interest and
all other Obligations, shall become and be forthwith due and payable, without presentment, demand, protest or further notice of
any kind, all of which are hereby expressly waived by Borrower;

 

11.3.2       Pursue
Remedies. Shall pursue any and all remedies provided for hereunder, and/or under any one or more of the other Loan Documents
and/or under applicable Law, as the Required Lenders shall direct. In connection therewith, the Agent shall, in accordance with
the votes of the Required Lenders, exercise all remedies on behalf of and for the account of each Lender and on behalf of its respective
Pro Rata Share of the Loan, its Note and the Obligations of the Borrower owing to it or any of the foregoing, including, without
limitation, all remedies available under or as a result of this Agreement, the Notes or any of the other Loan Documents or any
other document, instrument or agreement now or hereafter securing any Obligations without any such exercise being deemed to modify
in any way the fact that each Lender shall be deemed a separate creditor of the Borrower to the extent of its Note and Pro Rata
Share of the Loan and any other amounts payable to such Lender under this Agreement and/or any of the other Loan Documents and
the Agent shall be deemed a separate creditor of the Borrower to the extent of any amounts owed by the Borrower to the Agent; and

 

11.4          Written
Waivers. If a Default or an Event of Default is waived by the Required Lenders, in their sole discretion, pursuant to a specific
written instrument executed by authorized officers of Required Lenders (or Agent with the written consent of Required Lenders),
the Default or Event of Default so waived shall be deemed to have never occurred.

 

		12.	ADDITIONAL REMEDIES.

 

12.1          Remedies.
Upon the occurrence of an Event of Default, whether or not the Indebtedness evidenced by the Notes and secured by the Mortgage
shall be due and payable and whether or not Agent shall have instituted any foreclosure or other action for the enforcement of
the Mortgage or the Notes, Agent (or its nominee), at the request of the Required Lenders may, in addition to any other remedies
which Agent and/or Lenders' may have hereunder or under the other Loan Documents or under applicable Law, and not in limitation
thereof, and in the Required Lenders' sole and absolute discretion:

 

12.1.1       Enter
and Perform. Enter upon the Property to perform obligations under leases, or to operate, maintain, repair and improve the Property
and employ watchmen to protect the Property, all at the risk, cost and expense of Borrower, consent to such entry being hereby
given by Borrower. All sums expended by Agent on behalf of Lenders for such purposes shall be deemed to constitute obligatory advances
under this Agreement and shall be secured by the Mortgage and the other Loan Documents;

 

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12.1.2       Discontinue
Work. At any time discontinue any work commenced in respect of the Property or change any course of action undertaken by it
and not be bound by any limitations or requirements of time whether set forth herein or otherwise;

 

12.1.3       Exercise
Rights. Exercise the rights of Borrower under any contract or other agreement in any way relating to the Property and take
over and use all or any part of the labor, materials, supplies and equipment contracted for by Borrower, whether or not previously
incorporated into the realty; and

 

12.1.4       Other
Actions. In connection with any work or action undertaken by Agent and/or Lenders (or their nominee) pursuant to the provisions
of the Loan Documents:

 

(a)          engage builders, contractors, architects, engineers and others for the purpose of furnishing labor, materials and equipment;

 

(b)          pay, settle or compromise all bills or claims which may become liens against the property constituting the Collateral, or which
have been or may be incurred in any manner in connection with the Property or for the discharge of liens, encumbrances or defects
in the title of the Property or any of the Collateral;

 

(c)          take or refrain from taking such action hereunder as the Required Lenders may from time to time determine; and

 

(d)          engage marketing and leasing agents and real estate brokers to advertise, lease or sell portions or all of the Property or other
Collateral upon such terms and conditions as the Required Lenders may in good faith determine.

 

12.2          Reimbursement.
Borrower shall be liable to Agent and Lenders for all sums paid or incurred by Agent or Lenders pursuant to any of the Loan Documents
whether the same shall be paid or incurred pursuant to this Section 12 or otherwise, and all payments made or liabilities
incurred by Agent and/or Lenders hereunder of any kind whatsoever shall be paid by Borrower upon demand with interest at the Default
Rate as provided in this Agreement or the Notes from the date of payment by Agent and/or Lenders to the date of payment to Agent
and/or Lenders and repayment of such sums with such interest shall be secured or otherwise supported by the Security Documents.

 

12.3          Power
of Attorney. For the purpose of exercising the rights granted by this Section 12, as well as any and all other rights
and remedies of Agent and Lenders, Borrower hereby irrevocably constitutes and appoints Agent (or any agent designated by Agent
and/or Required Lenders) its true and lawful attorney-in-fact (which power of attorney is with full power of substitution and delegation
and is coupled with an interest), upon the occurrence of and during the continuation of any Event of Default, to execute, acknowledge
and deliver any instruments and to do and perform any acts permitted hereunder or by Law in the name and on behalf of Borrower.

 

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		13.	SECURITY INTEREST AND SET OFF.

 

13.1          Security
Interest and Set-Off. Borrower hereby grants to Agent and each Lender, a continuing lien, security interest and right of setoff
as security for all of Borrower's Obligations, whether now existing or hereafter arising, upon and against all Cash Collateral
and all other deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of
Agent or any Lender or any Affiliate of Agent or of any Lender (including without limitation any Affiliate of Citizens Financial
Group, Inc. and its successors and assigns) or in transit to any of them. At any time, without demand or notice (any such notice
being expressly waived by Borrower), Agent and, subject to Section 13.3 below, each Lender and each such Affiliate may setoff
the same or any part thereof and apply the same to any Obligation of Borrower even though unmatured and regardless of the adequacy
of any other collateral securing the Obligations. Borrower further agrees that any “Early Termination Amount” that
is payable to Borrower if any “Early Termination Date” (as such terms are defined in any Hedging Contract) occurs under
any Hedging Contract shall also secure Borrower’s Obligations under this Agreement and the other Loan Documents and any such
amount(s) may be set off and applied against Borrower's outstanding Obligations in accordance with this Agreement. ANY AND ALL
RIGHTS TO REQUIRE AGENT OR ANY LENDER OR ANY AFFILIATE THEREOF TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL
WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY
OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 

13.2          Right
to Freeze. Agent and each Lender (and each Affiliate thereof) shall also have the right, at their option, upon the occurrence
of any event which would entitle Agent or Lenders to set-off or debit any accounts, deposits, balances or other property of Borrower
as set forth in Section 13.1, to freeze, block or segregate any of such accounts, deposits, balances or other property so
that Borrower may not access, control or draw upon the same.

 

13.3          Additional
Rights. The rights of Agent and Lenders and each Affiliate of Agent and Lenders under this Section 13 are in addition
to, and not in limitation of, other rights and remedies, including other rights of set-off, which Agent or Lenders may have; provided,
however, no Lender and no such Affiliate shall independently exercise any rights under this Section 13, or any such other
rights, without first obtaining Agent's prior written consent.

 

		14.	CASUALTY AND TAKING.

 

14.1          Casualty
and Obligation To Repair. In the event of any damage or destruction to the Property by reason of fire or other hazard or casualty
(collectively, a “Casualty”), Borrower shall give immediate written notice thereof to Agent and Borrower shall proceed
with reasonable diligence, in full compliance with all Legal Requirements and the other requirements of the Loan Documents and
the requirements of each applicable Approved Lease, to repair, restore, rebuild or replace the Property (collectively, the “Repair
Work”). Provided, however, Borrower's obligation to perform such Repair Work is subject to an agreement of Required Lenders
to release the respective insurance proceeds pursuant to Section 14.3 below.

 

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14.2          Adjustment
of Claims. All insurance claims shall be adjusted or settled by Borrower, at Borrower's sole cost and expense, but subject
to Agent's prior written approval which approval shall not be unreasonably withheld; provided that (a) if no Default exists,
Borrower shall have the right to adjust or settle any claim in an amount less than $100,000 without Agent's prior written approval
and (b) if any Default exists under any of the Loan Documents, the Required Lenders shall have the right to direct Agent to adjust
and compromise such claims without the approval of Borrower.

 

14.3          Payment
and Application of Insurance Proceeds. All proceeds of insurance shall be paid to Agent for the pro rata benefit of Lenders
or, at Required Lenders' option, shall be applied to Borrower's Obligations or released, in whole or in part, to pay for the actual
cost of repair, restoration, rebuilding or replacement (collectively, “Cost to Repair”). Notwithstanding the foregoing,
if the Cost to Repair does not exceed 50% of the Approved Appraised Value of the Property, Agent shall release so much of the insurance
proceeds as may be required to pay for the actual Cost to Repair in accordance with the provisions of Section 14.4 if:

 

(i)             in Agent's good faith judgment such proceeds, together
with any additional funds that may be deposited with and pledged to Agent for the benefit of Lenders, are sufficient to pay for
the Cost to Repair;

 

(ii)            in Agent's good faith judgment the Repair Work is
likely to be completed prior to the Maturity Date (or, if the Loan Term has been extended in accordance with Sections 2.2
and 2.3 above, prior to the then applicable Extended Maturity Date);

 

(iii)           no Default exists under the Loan Documents;

 

(iv)           to the extent required by Agent, tenants leasing
(in the aggregate) at least ninety percent (90%) of the NRSF of space in the Property shall have waived in writing any right to
terminate their respective leases on account of such Casualty, conditioned only upon the Repair Work being completed within a reasonable
period of time acceptable to Agent or such period as is expressly provided in the applicable leases, whichever is longer, so long
as the period does not exceed the period for which rent loss insurance is available or for which, to the extent required by Agent,
Borrower has deposited with Agent, an amount equal to all such lost rent which is not covered by rent loss insurance; and

 

(v)            as soon as is reasonably practical, Borrower commences
such Repair Work and diligently prosecutes such Repair Work to completion.

 

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14.4          Conditions
To Release of Insurance Proceeds and Condemnation Awards. As to any insurance proceeds or condemnation awards to be released
by Agent pursuant to Section 14.3 or Section 14.5 hereof in excess of $100,000, Agent may impose reasonable conditions
on such release which may include, but are not limited to, the following:

 

(i)             Prior written approval by the Required Lenders, which
approval shall not be unreasonably withheld or delayed, of plans, specifications, cost estimates, contracts and bonds for the restoration
or repair of the loss or damage;

 

(ii)            Waivers of lien, architect's certificates, contractor's
sworn statements and other evidence of costs, payments and completion as Agent may reasonably require;

 

(iii)           If the Cost to Repair does not exceed $100,000,
the funds to pay therefor shall be released to Borrower. Funds shall be released upon final completion of the Repair Work, unless
Borrower requests earlier funding, in which event partial monthly disbursements equal to 90% of the value of the work completed
or, if the applicable contract is on a cost plus basis, then 90% of the costs of the work completed if such cost is less than the
value thereof shall be made prior to final completion of the repair, restoration or replacement and the balance of the disbursements
shall be made upon full completion and the receipt by Agent of satisfactory evidence of payment and release of all liens;

 

(iv)           Determination by Agent that the undisbursed balance
of such proceeds on deposit with Agent, together with additional funds deposited for the purpose, shall be at least sufficient
to pay for the remaining Cost to Repair, free and clear of all liens and claims for lien;

 

(v)            All work to comply with the standards, quality of
construction and Legal Requirements applicable to the original construction of the Improvements; and

 

(vi)           the
absence of any Default under any of the Loan Documents.

 

14.5          Taking.
If there is any condemnation for public use of all or any part of the Property or of any Collateral, the awards on account thereof
shall be paid to Agent, for the pro rata benefit of Lenders, and shall be applied to Borrower's Obligations, or at the Required
Lenders' discretion released to Borrower. If, in the case of a partial taking or a temporary taking, in the judgment of Required
Lenders, the effect of such taking is such that there has not been a material and adverse impairment of the viability of the Property
or the value of the Collateral in question, so long as no Default exists, Agent shall, subject to the terms and conditions set
forth in Sections 14.3 and 14.4 above, release awards on account of such taking to Borrower if such awards are sufficient
(or amounts sufficient are otherwise made available) to repair or restore the Property to a condition satisfactory to Required
Lenders and such partial or temporary taking shall not be deemed to violate the provisions of Section 9.6.

 

14.6          Application
of Unreleased Proceeds. To the extent that any insurance proceeds or condemnation awards are not released to Borrower by Agent
pursuant to this Section 14, such proceeds and/or awards will be applied to the outstanding Obligations.

 

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		15.	THE AGENT AND THE LENDERS

 

15.1          Appointment
and Authorization of Agent.

 

(a)            Each
Lender hereby irrevocably (subject to Section 15.9) appoints, designates and authorizes Agent to take such action on
its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such
duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers
as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any
other Loan Document, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall
Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against Agent. Without limiting the generality of the foregoing sentence, the use of the term
 “agent” herein and in the other Loan Documents with reference to Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties.

 

(b)            No
individual Lender or group of Lenders shall have any right to amend or waive, or consent to the departure of any party from any
provision of any Loan Document, or secure or enforce the obligations of Borrower or Guarantor or any other party pursuant to the
Loan Documents, or otherwise. All such rights, on behalf of Agent or any Lender or Lenders, shall be held and exercised solely
by and at the option of Agent for the pro rata benefit of the Lenders. Such rights, however, are subject to the rights of a Lender
or Lenders, as expressly set forth in this Agreement, to approve matters or direct Agent to take or refrain from taking action
as set forth in this Agreement. Except as expressly otherwise provided in this Agreement or the other Loan Documents, Agent shall
have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights, or taking
or refraining from taking any actions which Agent is expressly entitled to exercise or take under this Agreement and the other
Loan Documents, including, without limitation, (i) the determination if and to what extent matters or items subject to Agent’s
satisfaction are acceptable or otherwise within its discretion, and (ii) the exercise of remedies pursuant to, but subject to,
Article 10 or 11 or pursuant to any other Loan Document, if applicable, and any action so taken or not taken shall be deemed
consented to by Lenders.

 

(c)            In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to Borrower or Guarantor, no individual Lender or group of Lenders shall have the right,
and Agent (irrespective of whether the principal of the Loan shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether Agent shall have made any demand on Borrower) shall be exclusively entitled and empowered
on behalf of itself, and Lenders, by intervention in such proceeding or otherwise:

 

(i)           to
file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loan and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims
of Lenders and Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of Lenders and
Agent and their respective agents and counsel and all other amounts due Lenders and Agent under Section 9.17 allowed in
such judicial proceeding; and

 

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(ii)          to
collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments
to Agent and, in the event that Agent shall consent to the making of such payments directly to Lenders, to pay to Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of Agent and its agents and counsel, and any other amounts
due Agent under Section 9.17.

 

Nothing contained herein shall be deemed
to authorize Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of Lenders except as approved by Required Lenders or to authorize
Agent to vote in respect of the claims of Lenders except as approved by Required Lenders in any such proceeding.

 

15.2          Delegation
of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees
or attorneys-in-fact and shall be entitled to advice of counsel and other consultant experts concerning all matters pertaining
to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects
with reasonable care.

 

15.3          Liability
of Agent. No Agent-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under or
in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct), or (ii) be responsible in any manner to any of Lenders for any recital, statement, representation
or warranty made by Borrower or any Subsidiary or Affiliate of Borrower, or any officer thereof, contained herein or in any other
Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent
under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or Guarantor or any other party to
any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower, Guarantor, if applicable,
or any of their Affiliates.

 

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15.4          Reliance
by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel to any party to the Loan Documents), independent accountants and other experts selected by
Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document
unless it shall first receive such advice or concurrence of the Required Lenders or all Lenders (if required hereunder) as it deems
appropriate and, if it so requests, it shall first be indemnified to its satisfaction by Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to take any such action. Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request
or consent of the Required Lenders or such greater number of Lenders as may be expressly required hereby in any instance, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all Lenders. In the absence of written instructions
from the Required Lenders or such greater number of Lenders, as expressly required hereunder, Agent may take or not take any action,
at its discretion, unless this Agreement specifically requires the consent of the Required Lenders or such greater number of Lenders.

 

15.5          Notice
of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default, unless Agent shall have
received written notice from a Lender, or Borrower referring to this Agreement, describing such Default. If Agent determines that
such Default will have a Material Adverse Effect, Agent will notify Lenders of its receipt of any such notice. Agent shall take
such action with respect to such Default as may be requested by the Required Lenders in accordance with Article 11 and Article
12; provided, however, that unless and until Agent has received any such request, Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable or
in the best interest of Lenders.

 

15.6          Credit
Decision; Disclosure of Information by Agent.

 

(a)          Each
Lender acknowledges that none of Agent-Related Persons has made any representation or warranty to it, and that no act by Agent
hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of Borrower, and Guarantor,
shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lenders as to any matter, including
whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents to Agent that it
has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other
condition and creditworthiness of Borrower, and Guarantor, and all applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower and Guarantor hereunder.
Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary
to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower
and Guarantor.

 

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(b)          Agent
upon its receipt shall provide each Lender such notices, reports and other documents expressly required to be furnished to Lenders
by Agent herein. To the extent not already available to a Lender, Agent shall also provide Lender and/or make available for Lender’s
inspection during reasonable business hours and at Lender’s expense, upon Lender’s written request therefor: (i) copies
of the Loan Documents; (ii) such information as is then in Agent’s possession in respect of the current status of principal
and interest payments and accruals in respect of the Loan; (iii) copies of all current financial statements in respect of Borrower,
any Guarantor or other Person liable for payment or performance by Borrower of any obligations under the Loan Documents, then in
Agent’s possession with respect to the Loan; and (iv) other current factual information then in Agent’s possession
with respect to the Loan and bearing on the continuing creditworthiness of Borrower or any Guarantor, or any of their respective
Affiliates; provided that nothing contained in this Section shall impose any liability upon Agent for its failure to provide
a Lender any of such Loan Documents, information, or financial statements, unless such failure constitutes willful misconduct or
gross negligence on Agent’s part; and provided further that Agent shall not be obligated to provide any Lender with
any information in violation of Law or any contractual restrictions on the disclosure thereof (provided such contractual restrictions
shall not apply to distributing to a Lender factual and financial information expressly required to be provided herein). Except
as set forth above, Agent shall not have any duty or responsibility to provide any Lenders with any credit or other information
concerning the business, prospects, operations, property, financial and other condition or creditworthiness of Borrower or Guarantor
or any of their respective Affiliates which may come into the possession of any of Agent-Related Persons.

 

15.7          Indemnification
of Agent. Whether or not the transactions contemplated hereby are consummated, Lenders shall indemnify upon demand each Agent-Related
Person (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), pro
rata, and hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it; provided,
however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities
to the extent determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Agent-Related
Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the
directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.
Without limitation of the foregoing, to the extent that Agent is not reimbursed by or on behalf of Borrower, each Lender shall
reimburse Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including attorney fees) incurred by
Agent as described in Section 9.17. The undertaking in this Section shall survive the payment of all Indebtedness hereunder
and the resignation or replacement of Agent.

 

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15.8          Agent
in Individual Capacity. Agent, in its individual capacity, and its Affiliates may make loans to, issue letters of credit for
the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with any party to the Loan Documents and their respective Affiliates as though Agent were
not Agent hereunder and without notice to or consent of Lenders. Lenders acknowledge that Borrower and Citizens Bank, National
Association or its Affiliate may enter into Interest Rate Protection Agreements. Lenders acknowledge that, pursuant to such activities,
Citizens Bank, National Association or its Affiliates may receive information regarding any party to the Loan Documents, or their
respective Affiliates (including information that may be subject to confidentiality obligations in favor of such parties or such
parties’ Affiliates) and acknowledge that Agent shall be under no obligation to provide such information to them. With respect
to its Pro Rata Share of the Loan, Citizens Bank, National Association shall have the same rights and powers under this Agreement
as any other Lenders and may exercise such rights and powers as though it were not Agent or party to Interest Rate Protection Agreements,
and the terms “Lender” and “Lenders” include Citizens Bank, National Association in its individual capacity.

 

15.9          Successor
Agent. Agent may, and at the request of the Required Lenders as a result of Agent’s gross negligence or willful misconduct
in performing its duties under this Agreement shall, resign as Agent upon thirty (30) days’ notice to Lenders. If Agent resigns
under this Agreement, the Required Lenders shall appoint from among Lenders a successor administrative agent for Lenders, which
successor administrative agent shall be consented to by Borrower at all times other than during the existence of an Event of Default
(which consent of Borrower shall not be unreasonably withheld, conditioned or delayed). If no successor administrative agent is
appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with Lenders and Borrower,
a successor administrative agent from among Lenders. Upon the acceptance of its appointment as successor administrative agent hereunder,
such successor administrative agent shall succeed to all the rights, powers and duties of the retiring Agent and the term “Agent”
shall mean such successor administrative agent, and the retiring Agent’s appointment, powers and duties as Agent shall be
terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Article and other applicable
Sections of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under
this Agreement. If no successor administrative agent has accepted appointment as Agent by the date which is thirty (30) days following
a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective
and the Required Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Required Lenders appoint
a successor agent as provided for above.

 

15.10          Releases;
Acquisition and Transfers of Collateral.

 

(a)            Lenders
hereby irrevocably authorize Agent to transfer or release any lien on, or after foreclosure or other acquisition of title by Agent
on behalf of Lenders to transfer or sell, any Collateral (i) upon the termination of the Commitment and payment and satisfaction
in full of all Obligations (except for any Obligations that survive payment in full of the Loan and as to which no claim has arisen),
(ii) constituting a release, transfer or sale of a lien or Collateral if Borrower will certify to Agent that the release, transfer
or sale is permitted under this Agreement or the other Loan Documents (and Agent may rely conclusively on any such certificate,
without further inquiry); or (iii) after foreclosure or other acquisition of title (1) for a purchase price of at least 90% of
the value indicated in the most recent appraisal of the Collateral obtained by Agent made in accordance with regulations governing
Agent, less any reduction indicated in the appraisal estimated by experts in such areas; or (2) if approved by the Required Lenders.

 

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(b)            If
all or any portion of the Collateral is acquired by foreclosure or by deed in lieu of foreclosure, Agent shall take title to such
Collateral in its name or by an Affiliate of Agent, but for the benefit of all Lenders in their Pro Rata Shares on the date of
the foreclosure sale or recordation of the deed in lieu of foreclosure (the “Acquisition Date”). Agent and all Lenders
hereby expressly waive and relinquish any right of partition with respect to any Collateral so acquired. After any Collateral is
acquired, Agent shall appoint and retain one or more Persons (individually and collectively, the “Asset Manager”) experienced
in the management, leasing, sale and/or dispositions of similar properties.

 

After consulting with the Asset Manager, Agent shall prepare
a written plan for completion of construction (if required), operation, management, improvement, maintenance, repair, sale and
disposition of the Collateral and a budget for the aforesaid, which may include a reasonable management fee payable to Agent (the
 “Business Plan”). Agent will deliver the Business Plan not later than the sixtieth (60th) day after the Acquisition
Date to each Lender with a written request for approval of the Business Plan. If the Business Plan is approved by the Required
Lenders, Agent and the Asset Manager shall adhere to the Business Plan until a different Business Plan is approved by the Required
Lenders. Agent may propose an amendment to the Business Plan as it deems appropriate, which shall also be subject to Required Lender
approval. If the Business Plan (as may be amended) proposed by Agent is not approved by the Required Lenders, (or if sixty (60)
days have elapsed following the Acquisition Date without a Business Plan being proposed by Agent), any Lender may propose an alternative
Business Plan, which Agent shall submit to all Lenders for their approval. If an alternative Business Plan is approved by the Required
Lenders, Agent may appoint one of the approving Lenders to implement the alternative Business Plan. Notwithstanding any other provision
of this Agreement, unless in violation of an approved Business Plan or otherwise in an emergency situation, Agent shall, subject
to subsection (a) of this Section, have the right but not the obligation to take any action in connection with the Collateral (including
those with respect to property taxes, insurance premiums, completion of construction, operation, management, improvement, maintenance,
repair, sale and disposition), or any portion thereof.

 

(c)            Upon
request by Agent or Borrower at any time, Lenders will confirm in writing Agent’s authority to sell, transfer or release
any such liens of particular types or items of Collateral pursuant to this Section; provided, however, that (i) Agent
shall not be required to execute any document necessary to evidence such release, transfer or sale on terms that, in Agent’s
opinion, would expose Agent to liability or create any obligation or entail any consequence other than the transfer, release or
sale without recourse, representation or warranty, and (ii) such transfer, release or sale shall not in any manner discharge, affect
or impair the Obligations of Borrower other than those expressly being released.

 

(d)            If
all or any portion of the Collateral is acquired by foreclosure or by deed in lieu of foreclosure, if only two (2) Lenders exist
at the time Agent receives a purchase offer for Collateral for which one of the Lenders does not consent within ten (10) Business
Days after notification from Agent, the consenting Lender may offer (“Purchase Offer”) to purchase all of non-consenting
Lender’s right, title and interest in such Collateral for a purchase price equal to non-consenting Lender’s Pro Rata
Share of the net proceeds anticipated from such sale of such Collateral (as reasonably determined by Agent, including the undiscounted
face principal amount of any purchase money obligation not payable at closing) (“Net Proceeds”). Within ten (10) Business
Days thereafter the non-consenting Lender shall be deemed to have accepted such Purchase Offer unless the non-consenting Lender
notifies Agent that it elects to purchase all of the consenting Lender’s right, title and interest in such Collateral for
a purchase price payable by the non-consenting Lender in an amount equal to the consenting Lender’s Pro Rata Share of the
Net Proceeds. Any amount payable hereunder by a Lender shall be due on the earlier to occur of the closing of the sale of such
Collateral or ninety (90) days after the Purchase Offer, regardless of whether such Collateral has been sold.

 

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15.11        Application
of Payments. Except as otherwise provided below with respect to Defaulting Lenders, aggregate principal and interest payments,
payments for Indemnified Liabilities, proceeds from foreclosure or sale of the Collateral, and net operating income from the Collateral
during any period it is owned by Agent on behalf of Lenders (“Payments”) shall be apportioned pro rata among Lenders
and payments of any fees (other than fees designated for Agent’s separate account) shall, as applicable, be apportioned pro
rata among Lenders. Notwithstanding anything to the contrary in this Agreement, all Payments due and payable to Defaulting Lenders
shall be due and payable to and be apportioned pro rata among Agent and Electing Lenders. Such apportionment shall be in the proportion
that the Defaulting Lender Payment Amounts paid by them bears to the total Defaulting Lender Payment Amounts of such Defaulting
Lender. Such apportionment shall be made until Agent and Lenders have been paid in full for the Defaulting Lender Payment Amounts.
All pro rata Payments shall be remitted to Agent and all such payments not constituting payment of specific fees, and all proceeds
of the Collateral received by Agent, shall be applied first, to pay any fees, indemnities, costs, expenses (including those
in Section 15.7) and reimbursements then due to Agent from Borrower; second, to pay any fees, costs, expenses and
reimbursements then due to Lenders from Borrower; third, to pay pro rata interest and late charges due in respect of the
Obligations and Agent Advances; fourth, to pay or prepay pro rata principal of the Obligations and Agent Advances; fifth,
to pay any indebtedness of Borrower under Interest Rate Protection Agreements; and last, to Borrower, if required by Law,
or Lenders in Pro Rata Share percentages equal to their percentages at the termination of the Aggregate Commitments.

 

15.12        Benefit.
The terms and conditions of this Article are inserted for the sole benefit of Agent and Lenders; the same may be waived in whole
or in part, with or without terms or conditions, without prejudicing Agent’s or Lenders’ rights to later assert them
in whole or in part.

 

15.13        Co-Agents;
Lead Managers. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a
 “syndication agent,” “documentation agent,” “co-agent,” “book manager,” “bookrunner”,
 “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if any, shall have
any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those
applicable to all Lenders as such. Without limiting the foregoing, none of Lenders or other Persons so identified as a “syndication
agent,” “documentation agent,” “co-agent”, “bookrunner” or “lead manager”
shall have or be deemed to have any fiduciary relationship with any Lenders. Each Lender acknowledges that it has not relied, and
will not rely, on any of Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

 

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15.14        Respecting
Loans and Payments.

 

15.14.1     Procedures
for Loan Advances. Agent shall give written notice to each Lender of each request for a Loan Advance (including each request
for a new LIBOR Rate Loan), or conversion of an existing Loan from a Prime Rate Loan to a LIBOR Rate Loan, by facsimile transmission,
hand delivery or overnight courier, not later than 11:00 A.M. (i) three (3) Business Days prior to any LIBOR Rate Loan or conversion
to a LIBOR Rate Loan, or (ii) two (2) Business Days prior to any Prime Rate Loan. Each such notice shall be accompanied by a written
summary of the request for a Loan Advance and shall specify (a) the date of the requested Loan Advance, (b) the aggregate amount
of the requested Loan Advance, and (c) each Lender's Pro Rata Share of the requested Loan Advance. Each Lender shall, before 11:00
A.M. on the date set forth in any such request for a Loan Advance, make available to Agent, at an account to be designated by Agent,
in same day funds, each Lender's Pro Rata Share of the requested Loan Advance. After Agent's receipt of such funds and upon Agent's
determination that the applicable conditions to making the requested Loan Advance have been fulfilled, Agent shall make such funds
available to Borrower as provided for in this Agreement. Within a reasonable period of time following the making of each Loan Advance,
but in no event later than ten (10) Business Days following such Loan Advance, Agent shall deliver to each Lender a copy of Borrower's
Notice of Borrowing with respect to such Loan Advance. Promptly after receipt by Agent of written request from any Lender, Agent
shall deliver to the requesting Lender the accompanying certifications and such other instruments, documents, certifications and
approvals delivered by or on behalf of Borrower to Agent in support of the requested Loan Advance.

 

15.14.2     Nature
of Obligations of Lenders and Failure of a Lender to Fund.

 

15.14.2.1          Several
Obligations. The obligations of the Lenders hereunder are several and not joint. Failure of any Lender to fulfill its obligations
hereunder shall not result in any other Lender becoming obligated to advance more than its Pro Rata Share of the Commitment, nor
shall such failure release or diminish the obligations of any other Lender to fund its Pro Rata Share of the Commitment provided
herein.

 

15.14.2.2          Failure
of a Lender to Fund. Should any Lender fail to make its Pro Rata Share of the requested Loan Advance available at the office
of the Agent prior to 11:00 A.M. on the date of borrowing specified in the notice to such Lender, Agent shall notify Borrower of
such default and, if Borrower so requests, Agent may, but shall not be obligated to, advance to the Borrower, on such Lender's
behalf, out of funds otherwise available to Agent, such Lender's Pro Rata Share of such Loan Advance, or a portion thereof; provided,
however, Agent shall not be authorized to make any such advance on behalf of any such Lender if prior to 11:00 A.M. on such
date of borrowing, Agent shall have received a written instrument signed by a duly authorized officer of such Lender revoking the
Agent's authority hereunder or stating that such Lender's Pro Rata Share is not required to be advanced pursuant to Section
15.14.1. If Agent advances such Lender's Pro Rata Share of such Loan Advance or a portion thereof as permitted hereby, Agent
shall notify Borrower of such funding by Agent on the date of funding and such Lender shall reimburse (or if such Lender fails
to pay such amount as hereinafter provided, Borrower shall repay) the Agent in full therefor within four (4) Business Days after
the date of such Loan Advance (or, in the case of the Borrower's repayment, within one Business Day after demand by Agent for payment),
together with interest on the principal amount so advanced by Agent at a rate per annum equal to the interest rate payable by Borrower
from time to time on such Loan Advance or portion thereof while it is outstanding.

 

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15.14.3     Payments
to Agent. All payments of principal of and interest on the Loan shall be made to the Agent by the Borrower or any other obligor
or guarantor for the account of the Lenders in Dollars in immediately available funds as provided in the Notes and this Agreement.
The Agent agrees promptly to distribute to each Lender, on the same Business Day upon which each such payment is made, such Lender's
Pro Rata Share of each such payment in immediately available funds, except as otherwise expressly provided herein. The Agent shall
upon each distribution promptly notify Borrower of such distribution and each Lender of the amounts distributed to it applicable
to principal of, and interest on, the Pro Rata Share held by the applicable Lender. Each payment to the Agent under the first sentence
of this Section 15.14.3 shall constitute a payment by the Borrower to each Lender in the amount of such Lender's Pro Rata
Share of such payment, and any such payment to the Agent shall not be considered outstanding for any purpose after the date of
such payment by the Borrower to the Agent without regard to whether or when the Agent makes distribution thereof as provided above.
If any payment received by the Agent from the Borrower is insufficient to pay both all accrued interest and all principal then
due and owing, the Agent shall first apply such payment to all outstanding interest until paid in full and shall then apply the
remainder of such payment to all principal then due and owing, and shall distribute the payment to each Lender accordingly.

 

15.14.4     Adjustments.
If, after Agent has paid each Lender's Pro Rata Share of any payment received or applied by Agent in respect of the Loan, that
payment is rescinded or must otherwise be returned or paid over by Agent, whether pursuant to any bankruptcy or insolvency Law,
sharing of payments clause of any loan agreement or otherwise, such Lender shall, at Agent's request, promptly return its Pro Rata
Share of such payment or application to Agent, together with such Lender's Pro Rata Share of any interest or other amount required
to be paid by Agent with respect to such payment or application.

 

15.14.5     Setoff.
If any Lender (including the Agent), acting in its individual capacity, shall exercise any right of setoff against a deposit balance
or other account of the Borrower held by such Lender on account of the obligations of the Borrower under this Agreement, such Lender
shall remit to the Agent all such sums received pursuant to the exercise of such right of setoff, and the Agent shall apply all
such sums for the benefit of all of the Lenders hereunder in accordance with the terms of this Agreement. Notwithstanding the foregoing,
no Lender shall exercise any such right of setoff without the prior written consent of Agent.

 

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15.14.6     Distribution
by Agent. If in the opinion of the Agent distribution of any amount received by it in such capacity hereunder or under the
Notes or under any of the other Loan Documents might involve any liability, it may refrain from making distribution until its right
to make distribution shall have been adjudicated by a court of competent jurisdiction or has been resolved by the mutual consent
of all Lenders. In addition, the Agent may request full and complete indemnity, in form and substance satisfactory to it, prior
to making any such distribution. If a court of competent jurisdiction shall adjudge that any amount received and distributed by
the Agent is to be repaid, each person to whom any such distribution shall have been made shall either repay to the Agent its Pro
Rata Share of the amount so adjudged to be repaid or shall pay over to the same in such manner and to such persons as shall be
determined by such court.

 

15.14.7     Defaulting Lender.

 

15.14.7.1          Notice
and Cure of Lender Default; Election Period; Electing Lenders. If any Lender is or becomes a Defaulting Lender, Agent shall
notify (such notice being referred to as the “Default Notice”) Borrower and each non-Defaulting Lender. Each
non-Defaulting Lender shall have the right, but in no event or under any circumstance the obligation, to fund any such Defaulting
Lender Amount, provided that within twenty (20) days after the date of the Default Notice (the “Election
Period”), such non-Defaulting Lender or Lenders (each such Lender, an “Electing Lender”) irrevocably
commit(s) by notice in writing (an “Election Notice”) to Agent, the other Lenders and Borrower to fund the Defaulting
Lender Amount and to assume the Defaulting Lender’s obligations with respect to the advancing of the entire undisbursed portion
of the Defaulting Lender’s principal obligations under this Agreement (such entire undisbursed portion of the Defaulting
Lender’s principal obligations under this Agreement, including its portion of the Payment Amount that is the subject of the
default, is hereinafter referred to as the “Defaulting Lender Obligation”). If Agent receives more than one
Election Notice within the Election Period, then the commitment to fund the Defaulting Lender Amount and the Defaulting Lender
Obligation shall be apportioned pro rata among the Electing Lenders in the proportion that the amount of each such Electing Lender’s
Commitment bears to the total Commitments of all Electing Lenders. If the Defaulting Lender fails to pay the Defaulting Lender
Payment Amount within the Election Period, the Electing Lender or Lenders, as applicable, shall be automatically obligated to fund
the Defaulting Lender Amount and Defaulting Lender Obligation (and Defaulting Lender shall no longer be entitled to fund such Defaulting
Lender Amount and Defaulting Lender Obligation) within three (3) Business Days following the expiration of the Election Period
to reimburse Agent or make payment to Borrower, as applicable. Notwithstanding anything to the contrary contained herein, if Agent
has funded the Defaulting Lender Amount, Agent shall be entitled to reimbursement for its portion of the Defaulting Lender Payment
Amount pursuant to Section 15.11.

 

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15.14.7.2          Removal
of Rights; Indemnity. Agent shall not be obligated to transfer to a Defaulting Lender any payments made by or on behalf of
Borrower to Agent for the Defaulting Lender’s benefit; nor shall a Defaulting Lender be entitled to the sharing of any payments
hereunder or under any Note until all Defaulting Lender Payment Amounts are paid in full. Amounts payable to a Defaulting Lender
shall be paid by Agent to reimburse Agent and any Electing Lender pro rata for all Defaulting Lender Payment Amounts. Solely for
the purposes of voting or consenting to matters with respect to the Loan Documents, a Defaulting Lender shall be deemed not to
be a “Lender” and such Defaulting Lender’s Commitment shall be deemed to be zero. A Defaulting Lender shall have
no right to participate in any discussions among and/or decisions by Lenders hereunder and/or under the other Loan Documents. Further,
any Defaulting Lender shall be bound by any amendment to, or waiver of, any provision of, or any action taken or omitted to be
taken by Agent and/or the non-Defaulting Lenders under, any Loan Document which is made subsequent to the Defaulting Lender’s
becoming a Defaulting Lender. This Section shall remain effective with respect to a Defaulting Lender until such time as the Defaulting
Lender shall no longer be in default of any of its obligations under this Agreement by curing such default by payment of all Defaulting
Lender Payment Amounts (i) within the Election Period, or (ii) after the Election Period with the consent of the non-Defaulting
Lenders. Such Defaulting Lender nonetheless shall be bound by any amendment to or waiver of any provision of, or any action taken
or omitted to be taken by Agent and/or the non-Defaulting Lenders under any Loan Document which is made subsequent to that Lender’s
becoming a Defaulting Lender and prior to such cure or waiver. The operation of this Subsection or the Subsection above alone shall
not be construed to increase or otherwise affect the Commitment of any non-Defaulting Lender, or relieve or excuse the performance
by Borrower of their duties and obligations hereunder or under any of the other Loan Documents. Furthermore, nothing contained
in this Section shall release or in any way limit a Defaulting Lender’s obligations as a Lender hereunder and/or under any
other of the Loan Documents. Further, a Defaulting Lender shall indemnify and hold harmless Agent and each of the non-Defaulting
Lenders from any claim, loss, or costs incurred by Agent and/or the non-Defaulting Lenders as a result of a Defaulting Lender’s
failure to comply with the requirements of this Agreement, including, without limitation, any and all additional losses, damages,
costs and expenses (including, without limitation, attorneys’ fees) incurred by Agent and any non-Defaulting Lender as a
result of and/or in connection with (i) a non-Defaulting Lender’s acting as an Electing Lender, (ii) any enforcement action
brought by Agent against a Defaulting Lender, and (iii) any action brought against Agent and/or Lenders. The indemnification provided
above shall survive any termination of this Agreement. The provisions of this Section 15.14.7.2 regarding remedies against a Defaulting
Lender shall be in addition to, and not in limitation of, the rights and remedies that may be available to Agent, any non-Defaulting
Lender, Borrower or any other party, at law or in equity.

 

15.14.7.3          Commitment
Adjustments. In connection with the adjustment of the amounts of the Commitments of the Defaulting Lender and Electing Lender(s)
upon the expiration of the Election Period as aforesaid, Borrower, Agent and Lenders shall execute such modifications to the Loan
Documents as shall, in the reasonable judgment of Agent, be necessary or desirable in connection with the adjustment of the amounts
of Commitments in accordance with the foregoing provisions of this Section. For the purpose of voting or consenting to matters
with respect to the Loan Documents such modifications shall also reflect the removal of voting rights of the Defaulting Lender
and increase in voting rights of Electing Lenders to the extent an Electing Lender has funded the Defaulting Lender Amount and
assumed the Defaulting Lender Obligation. In connection with such adjustments, Defaulting Lenders shall execute and deliver an
Assignment and Assumption covering that Lender’s Commitment and otherwise comply with Section 16.1. If a Lender refuses
to execute and deliver such Assignment and Assumption or otherwise comply with Section 16.1, such Lender hereby appoints
Agent to do so on such Lender’s behalf. Agent shall distribute an amended Schedule of Lenders, which shall thereafter be
incorporated into this Agreement, to reflect such adjustments. However, all such Defaulting Lender Amounts and Defaulting Lender
Obligation funded by Agent or Electing Lenders shall continue to be Defaulting Lender Amounts of the Defaulting Lender pursuant
to its obligations under this Agreement.

 

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15.14.7.4          No
Election. In the event that no Lender elects to commit to fund the Defaulting Lender Amount and Defaulting Lender Obligations
within the Election Period, Agent shall, upon the expiration of the Election Period, so notify Borrower and each Lender.

 

15.14.8     Holders.
The Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice
of the assignment, transfer or endorsement thereof, as the case may be, shall have filed with the Agent. Any request, authority
or consent of any person or entity who, at the time of making such request or giving such authority or consent, is the holder of
any Note shall be conclusive and binding on any subsequent holder, transferee or endorsee, as the case may be, of such Note or
of any Note or Notes issued in exchange therefor.

 

		16.	ASSIGNMENT AND PARTICIPATION PROVISIONS AND CERTAIN ADMINISTRATIVE
MATTERS.

 

16.1          Assignment
and Participation Provisions.

 

16.1.1       Conditions to Assignment
by Lenders. Except as provided herein, each Lender may assign to one or more Eligible Assignees all or a portion of its interests,
rights and obligations under this Agreement (including all or a portion of its Commitment and the same portion of the Loan at the
time owing to it and the Notes held by it), upon satisfaction of the following conditions: (a) each of the Agent and the Borrower
shall have given its prior written consent to such assignment (provided that, in the case of the Borrower, such consent
shall not be unreasonably withheld, conditioned or delayed and such consent shall not be required (i) if a Default or an Event
of Default shall have occurred and be continuing or (ii) if Borrower has declined to approve two (2) or more Eligible Assignees
that have been proposed by an assigning Lender or (iii) if after taking into account such assignment, Citizens (or its successors)
retains more than a fifty percent (50%) Pro-Rata Share of the Loan; and provided further that this subsection (a) shall not be
applicable to an assignment by a Lender to an Affiliate of such Lender, (b) each such assignment shall be of a constant, and not
a varying, percentage of all the assigning Lender’s rights and obligations under this Agreement, (c) except in case of a
Lender’s assignment of its entire remaining interest in the Loan, each assignment shall be in an amount that is at least
$3,000,000 and is a whole multiple of $1,000,000, (d) as long as no Default or Event of Default exists and is continuing, the Agent
(or any successor agent hereunder), in its individual capacity as a Lender, shall retain, free of any such assignment, an amount
of its Commitment of not less than the amount of the Commitment of the Lender who holds the next largest Commitment (provided,
however, the foregoing restriction shall not be deemed to have been violated if, as a result of a merger or acquisition, the Commitments
of two or more Lenders are combined and such combined Commitment exceeds the Commitment of the Agent (or any such successor agent)
in its capacity as a Lender), (e) as long as no Default or Event of Default exists and is continuing, the total number of Lenders
shall not exceed three (3), and (f) the parties to such assignment shall execute and deliver to the Agent, for recording in the
Register, an Assignment and Assumption, substantially in the form of Exhibit E hereto (an “Assignment and Assumption”),
together with any Notes subject to such assignment. Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Assumption, which effective date shall be at least five (5) Business Days after
the execution thereof, (x) the assignee thereunder shall be a party hereto and, to the extent provided in such Assignment and Assumption,
have the rights and obligations of a Lender hereunder and under the other Loan Documents, and (y) the assigning Lender shall, to
the extent provided in such assignment and upon payment to the Agent of the registration fee referred to in Section 16.1.3,
be released from its obligations under this Agreement.

 

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16.1.2       Certain
Representations and Warranties; Limitations, Covenants. By executing and delivering an Assignment and Assumption, the parties
to the assignment thereunder confirm to and agree with each other and the other parties hereto as follows:

 

(a)          other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned thereby free
and clear of any adverse claim, the assigning Lender makes no representation or warranty, express or implied, and assumes no responsibility
with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement, the other Loan Documents or any other instrument
or document furnished pursuant hereto or the attachment, perfection or priority of any security interest or mortgage (if any);

 

(b)          the assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition
of the Borrower or any other Person primarily or secondarily liable in respect of any of the Obligations, or the performance or
observance by the Borrower or any other Person primarily or secondarily liable in respect of any of the Obligations of any of
their obligations under this Agreement or any of the other Loan Documents or any other instrument or document furnished pursuant
hereto or thereto;

 

(c)          such assignee confirms that it has received a copy of this Agreement, together with copies of the most recent financial statements
provided by the Borrower as required by the terms of this Agreement, together with such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Assumption;

 

(d)          such assignee will, independently and without reliance upon the assigning Lender, the Agent or any other Lender and based upon
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement;

 

(e)          such assignee represents and warrants that it is an Eligible Assignee;

 

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(f)          such assignee appoints and authorizes the Agent to take such actions as agent on its behalf and to exercise such powers under
this Agreement and the other Loan Documents as are delegated to the Agent by the terms hereof or thereof, together with such powers
as are reasonably incidental thereto;

 

(g)          such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement
are required to be performed by it as a Lender;

 

(h)          such assignee represents and warrants that it is legally authorized to enter into such Assignment and Assumption; and

 

(i)           such assignee represents and warrants that such assignment will not cause a non-exempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code.

 

16.1.3       Register.
The Agent shall maintain a copy of each Assignment and Assumption delivered to it and a register or similar list (the “Register”)
for the recordation of the names and addresses of the Lenders and the Pro Rata Shares of the Commitment of, and principal amount
(and stated interest) of the Loan owing to, the Lenders from time to time. The entries in the Register shall be conclusive, in
the absence of manifest error, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower
and the Lenders at any reasonable time and from time to time upon reasonable prior notice. Upon each such recordation, the assigning
Lender agrees to pay to the Agent a registration fee in the sum of $3,000.

 

16.1.4       New
Notes. Upon its receipt of an Assignment and Assumption executed by the parties to such assignment, together with each Note
subject to such assignment, the Agent shall (a) record the information contained therein in the Register, and (b) give prompt notice
thereof to the Borrower and the Lenders (other than the assigning Lender). Within five (5) Business Days after receipt of a request
from Agent to do so, the Borrower, at its own expense, shall execute and deliver to the Agent, in exchange for each surrendered
Note, a new Note to the order of such assignee in an amount equal to the amount assumed by such assignee pursuant to such Assignment
and Assumption and, if the assigning Lender has retained some portion of its obligations hereunder, a new Note to the order of
the assigning Lender in amount equal to the amount retained by it hereunder. Such new Notes shall provide that they are replacements
for the surrendered Notes, shall be in an aggregate principal amount equal to the aggregate principal amount of the surrendered
Notes, shall be dated the effective date of such Assignment and Assumption and shall otherwise be substantially the form of the
assigned Notes in all material respects. The surrendered Notes shall be canceled and returned to the Borrower.

 

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16.1.5       Participations.
Each Lender may sell participations to one or more banks or other financial institutions in all or a portion of such Lender’s
rights and obligations under this Agreement and the other Loan Documents; provided that (a) each such participation shall be in
a minimum amount of $3,000,000, (b) each participant shall meet the requirements of an Eligible Assignee, (c) any such sale or
participation shall not affect the rights and duties of the selling Lender hereunder to the Borrower, and (d) the only rights granted
to the participant pursuant to such participation arrangements with respect to waivers, amendments or modifications of the Loan
Documents shall be the rights to approve waivers, amendments or modifications that would reduce the principal of or the interest
rate on the Loan, extend the term or increase the amount of the Pro Rata Share of the Commitment of such Lender as it relates to
such participant, reduce the amount of any commitment fees to which such participant is entitled or extend any regularly scheduled
payment date for principal or interest. Each Lender that sells a participation shall, acting solely for this purpose as an agent
of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and
stated interest) of each participant’s interest in such Lender’s rights and obligations under this Agreement and the
other Loan Documents (the “Participant Register”); provided that no Lender shall have any Obligation to disclose all
or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s
interest in any Commitments, Loans or its other Obligations under any Loan Document) to any Person except to the extent that such
disclosure is necessary to establish that such Commitment, Loan or other Obligation is in registered form under Section 5f.103-1(c)
of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and
such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all
purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity as
Agent) shall have no responsibility for maintaining a Participant Register.

 

16.1.6       Disclosure.
Borrower agrees that in addition to disclosures made in accordance with standard and customary banking practices, any Lender may
disclose information obtained by such Lender pursuant to this Agreement to assignees or participants and potential assignees or
participants hereunder; provided that such assignees or participants or potential assignees or participants shall agree (a) to
treat in confidence such information unless such information otherwise was known or becomes known to such assignee or participant
from a third party which is not, to the knowledge of such assignee or participant, bound by any confidentiality provisions with
respect thereto, or otherwise becomes public knowledge, (b) not to disclose such information to a third party, except auditors,
accountants, attorneys and other agents of such participant or assignee, bank regulators or other Governmental Authorities or as
required by Law or legal process and (c) not to make use of such information for purposes of transactions unrelated to such contemplated
assignment or participation.

 

16.1.7       Miscellaneous
Assignment Provisions.

 

(a)          Any
assigning Lender shall retain its rights to be indemnified pursuant to this Agreement with respect to any claims or actions arising
prior to the date of such assignment.

 

(b)          If
any assignee Lender is a Foreign Lender, it shall comply with Section 16.1.9 hereof.

 

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(c)          Anything contained in this Section 16.1 to
the contrary notwithstanding, any Lender may at any time pledge or assign all or any portion of its interest and rights under the
Loan Documents (including all or any portion of its Notes) to any of the Federal Reserve Banks organized under §4 of the Federal
Reserve Act, 12 U.S.C. §341. No such pledge or assignment or the enforcement thereof shall release any such Lender from its
obligations hereunder or under any of the other Loan Documents.

 

16.1.8       Certain
Mergers. Notwithstanding the provisions of Section 16.1.1(e), above, in the event that any Lender is the subject of
a merger with another financial institution, the survivor of such merger shall assume the rights and obligations of such Lender
under the terms of this Agreement and the other Loan Documents and any such merger shall not be considered a substitution hereunder
and will therefore not be deemed to increase the number of Lenders hereunder.

 

16.1.9       Tax
Forms.

 

(a)              (i)       Each Lender, and each holder of a participation
interest herein (or, if such Lender or holder is a disregarded entity for U.S. federal income tax purposes, the Person that is
treated as the owner of the assets of such Lender or holder for U.S. federal income tax purposes), that is not a “United
States Person” (a “Foreign Lender”) within the meaning of Section 7701(a)(30) of the Code shall, to the extent
it is legally able to do so, deliver to Agent and Borrower, prior to receipt of any payment subject to withholding (or upon accepting
an assignment or receiving a participation interest herein), two duly signed completed copies of either Form W-8BEN-E or any successor
thereto (relating to such Foreign Lender and entitling it to a complete exemption from, or reduction of, withholding on all payments
to be made to such Foreign Lender by Borrower pursuant to this Agreement) or Form W-8ECI or any successor thereto (relating to
all payments to be made to such Foreign Lender by Borrower pursuant to this Agreement) of the United States Internal Revenue Service
or such other evidence satisfactory to Borrower and Agent that such Foreign Lender is entitled to an exemption from or reduction
of, United States withholding tax, including any exemption pursuant to Section 881(c) of the Code. Thereafter and from time to
time, each such Foreign Lender shall (A) promptly submit to Agent and Borrower such additional duly completed and signed copies
of one of such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities)
as may then be available under then current United States Laws and regulations to avoid, or such evidence as is satisfactory to
Borrower and Agent of any available exemption from or reduction of, United States withholding taxes in respect of all payments
to be made to such Foreign Lender by Borrower pursuant to the Loan Documents, (B) promptly notify Agent and Borrower of any change
in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as shall not
be materially disadvantageous to it, in the reasonable judgment of such Lenders, and as may be reasonably necessary (including
the re-designation of its lending office, if any) to avoid any requirement of applicable Laws that Borrower make any deduction
or withholding for taxes from amounts payable to such Foreign Lender. If a payment made to a Lender under any Loan Document would
be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting
requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver
to Borrower and Agent at the time or times prescribed by Law and at such time or times reasonably requested by Borrower or Agent
such document prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional
documentation reasonably requested by Borrower or Agent as may be necessary for Borrower and Agent to comply with their obligations
under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the
amount to deduct and withhold from such payment. Solely for purposes of the preceding sentence, “FATCA” shall include
any amendments made to FATCA after the date of this Agreement.

 

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(ii)            Each
Foreign Lender, to the extent it does not act or ceases to act for its own account with respect to any portion of any sums paid
or payable to such Lender under any of the Loan Documents (for example, in the case of a typical participation by such Lender),
shall deliver to Agent and Borrower on the date when such Foreign Lender ceases to act for its own account with respect to any
portion of any such sums paid or payable, and at such other times as may be necessary in the determination of Agent (in the reasonable
exercise of its discretion), (A) two duly signed completed copies of the forms or statements required to be provided by such Lender
as set forth above, to establish the portion of any such sums paid or payable with respect to which such Lender acts for its own
account that is not subject to U.S. withholding tax, and (B) two duly signed completed copies of United States Internal Revenue
Service Form W-8IMY (or any successor thereto), together with any information such Lender chooses to transmit with such form, and
any other certificate or statement of exemption required under the Code, to establish that such Lender is not acting for its own
account with respect to a portion of any such sums payable to such Lender.

 

(iii)            Borrower
shall not be required to pay any additional amount to any Foreign Lender under Section 2.11.5, (A) with respect to any Taxes
required to be deducted or withheld on the basis of the information, certificates or statements of exemption such Lender transmits
with an United States Internal Revenue Service Form W-8BEN-E, W-8ECI, or W-8IMY pursuant to this Subsection (a) of this Section,
or (B) if such Lender shall have failed to satisfy the foregoing provisions of this Subsection (a); provided that if such Lender
shall have satisfied the requirements of this Subsection (a) on the date such Lender became a Lender or ceased to act for its own
account with respect to any payment under any of the Loan Documents, nothing in this Subsection (a) shall relieve Borrower of its
obligation to pay any amounts pursuant to Section 2.11.5 in the event that, as a result of any change in any applicable
law, treaty or governmental rule, regulation or order, or any change in the interpretation, administration or application thereof,
such Lender is no longer properly entitled to deliver forms, certificates or other evidence at a subsequent date establishing the
fact that such Lender or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents
is not subject to withholding or is subject to withholding at a reduced rate.

 

(iv)            Agent
may, without reduction, withhold any Taxes required to be deducted and withheld from any payment under any of the Loan Documents
with respect to which Borrower is not required to pay additional amounts under this Subsection (a).

 

(b)            Each
Lender that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code shall deliver to Agent
two duly signed completed copies of United States Internal Revenue Service Form W-9. If such Lender fails to deliver such forms,
then Agent may withhold from any interest payment to such Lender an amount equivalent to the applicable back-up withholding tax
imposed by the Code, without reduction.

 

    	 	103	 

     

    

 

(c)            If
any Governmental Authority asserts that 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 Agent therefor, including all penalties
and interest and costs and expenses (including actual and reasonable attorneys’ fees) of Agent. Borrower shall, and does
hereby, indemnify Agent, and shall make payment in respect thereof within ten (10) days after demand therefor, for any amount which
a Lender for any reason fails to pay indefeasibly to Agent as required pursuant to this Section 16.1.9(c). The obligation of Lenders
and Borrower under this Subsection shall survive the removal or replacement of a Lender, the payment of all Obligations, the resignation
or replacement of Agent and termination of this Agreement and/or any other Loan Document.

 

16.2          Certain
Administrative Matters.

 

16.2.1       Amendment,
Waiver, Consent, Reliance on Agent, Etc.

 

(a)            Except
as otherwise expressly provided herein or as to any term or provision hereof which provides for the consent or approval of the
Agent only, no term or provision of this Agreement or any other Loan Document may be changed, waived, discharged or terminated,
nor may any consent required or permitted by this Agreement or any other Loan Document be given, unless such change, waiver, discharge,
termination or consent receives the written approval of the Required Lenders or unless such approval of the Required Lenders is
deemed given pursuant to Section 16.2.2 below.

 

Notwithstanding the foregoing, the unanimous
written approval of all the Lenders (other than a Defaulting Lender) shall be required with respect to any proposed amendment,
waiver, discharge, termination, or consent which:

 

		(i)	is described in Section 17.17 below; or

 

		(ii)	amends, modifies or waives any provisions of this Section 16.2.1;

 

and provided, further, that without the consent of the Agent,
no such action shall amend, modify or waive any provision of Article 15 or Article 16 or any other provision of any
Loan Documents which relates to the rights or obligations of the Agent.

 

(b)            With
respect to any requested amendment, waiver, consent or other action which under the terms of this Agreement requires the approval
of the Required Lenders or of all of the Lenders, as the case may be, Borrower shall be entitled to rely upon the written representation
of the Agent that such approval has been obtained and Borrower shall have no obligation to independently verify that such is the
case.

 

    	 	104	 

     

    

 

16.2.2       Deemed
Consent or Approval. With respect to any requested amendment, waiver, consent or other action which requires the approval of
the Required Lenders in accordance with the terms of this Agreement, or if the Agent is required hereunder to seek, or desires
to seek, the approval of the Required Lenders prior to undertaking a particular action or course of conduct, the Agent in each
case shall provide each Lender with written notice of any such request for amendment, waiver or consent or any other requested
or proposed action or course of conduct, accompanied by such background information and explanations as may be reasonably necessary
to determine whether to approve or disapprove such amendment, waiver, consent or other action or course of conduct. The Agent may
(but shall not be required to) include in any such notice, printed in capital letters or boldface type, a legend substantially
to the following effect:

 

“THIS COMMUNICATION REQUIRES
IMMEDIATE RESPONSE. FAILURE TO RESPOND WITHIN TEN (10) BUSINESS DAYS FROM THE RECEIPT OF THIS COMMUNICATION SHALL CONSTITUTE A
DEEMED APPROVAL BY THE ADDRESSEE OF THE ACTION REQUESTED BY THE BORROWER OR THE COURSE OF CONDUCT PROPOSED BY THE AGENT AND RECITED
ABOVE.”

 

And if the foregoing legend is included by the Agent in its
communication and if such communication is delivered to a Lender by registered or certified mail or by any recognized courier service
or overnight delivery service such as Federal Express, such Lender shall be deemed to have approved or consented to such proposed
action or course of conduct for all purposes hereunder if such Lender fails to object to such action or course of conduct by written
notice to the Agent within ten (10) Business Days of such Lender’s receipt of such notice. The procedure for deemed consent
or approval that is set forth in this Section 16.2.2 shall not apply to any requested amendment, waiver, consent
or other action which requires the approval of all of the Lenders pursuant to Section 17.17(a) below.

 

16.3          Certain
Lender Representations. Each Lender severally represents and warrants, with respect to such Lender only, that such Lender is
an Eligible Assignee.

 

		17.	GENERAL PROVISIONS.

 

17.1          Notices.

 

17.1.1       Mode
of Delivery. Any notice or other communication in connection with this Agreement, the Notes, the Mortgage, or any of the other
Loan Documents, shall be in writing and (i) deposited in the United States Mail, postage prepaid, by registered or certified mail,
or (ii) hand delivered by any commercially recognized courier service or overnight delivery service such as Federal Express, or
(iii) subject to Section 17.1.2 below, sent by facsimile transmission, if a FAX Number is designated below (provided a copy
is also sent by a means of transmission listed in (i) or (ii) above), or (iv) subject to Section 17.1.3 below, sent by electronic
mail if an email address is designated below, addressed as follows:

 

    	 	105	 

     

    

 

If to Borrower:

 

PHR TCI, LLC

c/o Procaccianti Companies

1140 Reservoir Avenue

Cranston, Rhode Island 02920

Fax Number: (401) 943-6320

		Attention:	Gregory D. Vickowski, CFO

		E-mail:	gvickowski@procgroup.com

 

with copies by regular mail or such hand delivery or facsimile
or email transmission to:

 

Procaccianti Companies

1140 Reservoir Avenue

Cranston, Rhode Island 02920

Fax Number: (401) 943-6320

		Attention:	Ron M. Hadar, General Counsel

		E-mail:	rhadar@procaccianti.com

 

If to Citizens as Agent and/or Lender:

 

Citizens Bank, National Association

Commercial Real Estate RC0450

One Citizens Plaza

Providence, Rhode Island 02903

Fax Number: (401) ___-____

		Attention:	Commercial Real Estate Loan Administration

		E-mail:	alexander.hofstetter@citizensbank.com

nicholas.daprato@citizensbank.com          

 

with copies by regular mail or such hand delivery or facsimile
or email transmission to:

 

Hinckley Allen

100 Westminster Street, Suite 1500

Providence, Rhode Island 02903

Fax Number: (401) 277-9600

		Attention:	Kirsten E. Kenney, Esq.

		E-mail:	kkenney@hinckleyallen.com

 

If to any other Lender to the address set forth on Exhibit
D.

 

Any such addressee may change its address and/or fax number
and/or e-mail address for such notices to such other address or fax number or e-mail address in the United States as such addressee
shall have specified by written notice given as set forth above.

 

    	 	106	 

     

    

 

All periods of notice shall be measured from the deemed date
of delivery. A notice shall be deemed to have been given, delivered and received for the purposes of all Loan Documents upon the
earliest of: (i) if sent by such certified or registered mail, on the earlier of the third Business Day following the date of postmark
or on the date of actual receipt as evidenced by the return receipt, (ii) if hand delivered at the specified address by such courier
or overnight delivery service, when so delivered or tendered for delivery during customary business hours on a Business Day, (iii)
if facsimile transmission is a permitted means of giving notice, upon receipt during customary business hours on a Business Day
as evidenced by confirmation, or (iv) if electronic mail is a permitted means of giving notice, upon receipt during customary business
hours on a Business Day as evidenced by electronic confirmation. Any notice delivered outside of the customary business hours on
a Business Day shall be deemed received on the next Business Day. Notwithstanding the foregoing, (a) service of a notice required
by any applicable statute shall be considered complete when the requirements of that statute are met and (b) no notice of change
of address shall be effective except upon actual receipt or upon refusal of receipt.

 

This Section shall not be construed in any way to affect or
impair any waiver of notice or demand provided in any Loan Document or to require giving of notice or demand to or upon any Person
in any situation or for any reason.

 

17.1.2       Effectiveness
of Facsimile Documents and Signatures. Loan Documents may be transmitted and/or signed by facsimile. The effectiveness of any
such documents and signatures shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all parties to the Loan Documents. Agent may also require that any such documents and signatures be confirmed
by a manually-signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness
of any facsimile document or signature.

 

17.1.3       Limited
Use of Electronic Mail. Electronic mail and internet and intranet websites may be used only to distribute routine communications,
such as financial statements and other information, to distribute Loan Documents for execution by the parties thereto, and for
other purposes described herein, and may not be used for any other purpose.

 

17.1.4       Reliance
by Agent and Lenders. Agent and Lenders shall be entitled to rely and act upon any notices (including telephonic Loan advance
notices, if any) purportedly given by or on behalf of Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof. Borrower shall indemnify each Agent-Related Person and each Lender from
all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on
behalf of Borrower. All telephonic notices to and other communications with Agent may be recorded by Agent, and each of the parties
hereto hereby consents to such recording.

 

17.2          No
Assignment by Borrower. Borrower shall not assign or transfer, in whole or in part, any of its rights or obligations under
any of the Loan Documents or any monies due hereunder or any interest therein without the prior written consent of each of the
Lenders.

 

17.3          Intentionally
Omitted.

 

    	 	107	 

     

    

 

17.4          Parties
Bound; No Third Party Beneficiaries.

 

(a)            The
provisions of this Agreement and of each of the other Loan Documents shall be binding upon and inure to the benefit of Borrower,
Agent and Lenders and their respective successors and assigns, except as otherwise prohibited by this Agreement or any of the other
Loan Documents.

 

(b)            This
Agreement is a contract by and among Borrower, Agent and Lenders for their mutual benefit, and no third person shall have any right,
claim or interest against Agent or Lenders by virtue of any provision hereof.

 

17.5          Waivers,
Extensions and Releases.

 

(a)            Subject
to Section 17.17(a) the Required Lenders may at any time and from time to time waive any one or more of the conditions contained
herein or in any of the other Loan Documents, or extend the time of payment of the Loan, or release portions of the Collateral
from the provisions of this Agreement and from the Mortgage or any other Security Document, but any such waiver, extension or release
shall be deemed to be made in pursuance and not in modification hereof, and any such waiver in any instance, or under any particular
circumstance, shall not be considered a waiver of such condition in any other instance or any other circumstance.

 

(b)            Lenders'
failure, at any time or times hereafter, to require strict performance by Borrower or Guarantor of any provision of the Loan Documents
shall not waive, affect or diminish any right of Lenders thereafter to demand strict compliance and performance therewith. Any
suspension or waiver by Lenders of an Event of Default under any Loan Document shall not suspend, waive or affect any other Event
of Default under any Loan Document, whether the same is prior or subsequent thereto and whether of the same or of a different type.
None of the undertakings, agreements, warranties, covenants and representations of Borrower or Guarantor contained in any Loan
Document and no Event of Default under any Loan Documents shall be deemed to have been suspended or waived by Lenders, unless such
suspension or waiver is by an instrument in writing specifying such suspension or waiver and is signed by a duly authorized representative
of Agent and directed to Borrower or Guarantor, as applicable.

 

17.6          Governing
Law.

 

17.6.1       Substantial
Relationship. It is understood and agreed that all of the Loan Documents shall be deemed to have been delivered in the Commonwealth
of Massachusetts, which state the parties agree has a substantial relationship to the parties and to the underlying transactions
embodied by the Loan Documents.

 

17.6.2       Intentionally
Omitted.

 

17.6.3       Governing
Law. This Agreement and, except as otherwise provided in Section 17.6.4, each of the other Loan Documents shall in all
respects be governed, construed, interpreted, applied and enforced in accordance with the internal laws of the Commonwealth of
Massachusetts without regard to principles of conflicts of law.

 

    	 	108	 

     

    

 

17.6.4       Exceptions.
Notwithstanding the foregoing choice of law:

 

(a)             matters relating to (i) the creation, transfer, perfection, priority and enforcement of the liens on and security interests in
the Property or other assets situated in states other than the Commonwealth of Massachusetts, including by way of illustration,
but not in limitation, actions for foreclosure, for injunctive relief, or for the appointment of a receiver, and (ii) the nature
of the interest in the Property created, transferred or perfected; the method for foreclosure of the liens on the Property; the
nature of the interest in real property that results from foreclosure and the manner and effect of recording or failing to record
evidence of a transaction that transfers or creates an interest in real property, shall be governed by the laws of the state where
the Property is situated;

 

(b)             Agent and Lenders shall comply with applicable law in the state where the Property is situated to the extent required by the law
of such jurisdiction in connection with the foreclosure of the security interests and liens created under the Mortgage and the
other Loan Documents with respect to the Property or any other assets situated in states other than the Commonwealth of Massachusetts;
and

 

(c)             provisions of Federal law and the law of the state where the Property is situated shall apply in defining the terms Hazardous
Substances, Environmental Legal Requirements and Legal Requirements applicable to the Property as such terms are used in this
Agreement and the other Loan Documents.

 

Nothing contained herein or any
other provisions of the Loan Documents shall be construed to provide that the substantive laws of the state where the Property
is situated shall apply to any parties' rights and obligations under any of the Loan Documents, which, except as expressly provided
in clauses (a), (b) and (c) of this Section 17.6.4, are and shall continue to be governed by the substantive law of the
Commonwealth of Massachusetts. In addition, the fact that portions of the Loan Documents may include provisions drafted to conform
to the law of the state where the Property is situated is not intended, nor shall it be deemed, in any way, to derogate the parties'
choice of law as set forth or referred to in this Agreement or in the other Loan Documents. The parties further agree that the
Agent and Lenders may enforce their rights under the Loan Documents including, but not limited to, their rights to sue the Borrower
or to collect any outstanding indebtedness in accordance with applicable law.

 

    	 	109	 

     

    

 

17.7          Consent
to Jurisdiction and Service of Process. AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED, AND REGARDLESS OF ANY PRESENT
OR FUTURE DOMICILE OR PRINCIPAL PLACE OF BUSINESS OF BORROWER, AGENT OR ANY LENDER, BORROWER HEREBY CONSENTS AND AGREES THAT (EXCEPT
AS OTHERWISE MANDATORILY REQUIRED BY APPLICABLE LAW IN ORDER TO ENFORCE AGENT'S AND/OR LENDERS' RIGHTS UNDER THIS AGREEMENT OR
UNDER ANY OF THE OTHER LOAN DOCUMENTS AND EXCEPT AS OTHERWISE PROVIDED IN ANY OF THE OTHER LOAN DOCUMENTS) THE SUPERIOR COURT OF
SUFFOLK COUNTY, MASSACHUSETTS OR, AT AGENT'S OR BORROWER'S OPTION, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS,
SHALL HAVE NON-EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN BORROWER AND AGENT OR ANY LENDER PERTAINING
TO THE LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED THERETO. BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND BORROWER HEREBY WAIVES ANY OBJECTION WHICH BORROWER MAY
HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. BORROWER FURTHER CONSENTS AND AGREES THAT SERVICE OF PROCESS
IN ANY SUIT BROUGHT FOR ENFORCEMENT OF THIS AGREEMENT MAY BE MADE BY MAIL IN THE MANNER SET FORTH IN SECTION 17.1 ABOVE. NOTHING
IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF AGENT OR LENDERS TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED
BY LAW, OR TO PRECLUDE THE ENFORCEMENT BY AGENT OR LENDERS OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY
ACTION TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

 

17.8          JURY
TRIAL WAIVER. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, BORROWER, AGENT AND LENDERS MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS AGREEMENT, ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED
IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY,
INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF AGENT OR ANY LENDER RELATING
TO THE ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NO PARTY WILL SEEK TO CONSOLIDATE ANY SUCH
ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. BORROWER CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT AGENT OR ANY LENDER WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR BORROWER, AGENT AND LENDERS
TO ENTER INTO THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 	110	 

     

    

 

17.9          Survival.
All representations, warranties, covenants and agreements of Borrower herein or in any other Loan Document, or in any notice, certificate,
or other paper delivered by or on behalf of Borrower pursuant hereto are significant and shall be deemed to have been relied upon
by Agent and Lenders notwithstanding any investigation made by Agent or Lenders or on their behalf and shall survive the delivery
of the Loan Documents and the making of the Loan and each advance pursuant thereto. No review or approval by Agent, Lenders, or
by Lenders' Consultants or representatives, of any plans and specifications, opinion letters, certificates by professionals or
other item of any nature shall relieve Borrower or anyone else of any of the obligations, warranties or representations made by
or on behalf of Borrower under any one or more of the Loan Documents.

 

17.10        Cumulative
Rights; No Waiver. All of the rights of Agent and Lenders hereunder and under each of the other Loan Documents and any other
agreement now or hereafter executed in connection herewith or therewith, shall be cumulative and may be exercised singly, together,
or in such combination as Agent or Lenders may determine in their sole good faith judgment. All covenants, conditions, provisions,
warranties, guaranties, indemnities, and other undertakings of Borrower contained in this Agreement and the other Loan Documents,
or in any document referred to herein or contained in any agreement supplementary hereto or in any schedule given to Agent or Lenders
or contained in any other agreement between Borrower and Agent or Lenders heretofore, concurrently, or hereafter entered into,
shall be deemed cumulative to and not in derogation or substitution of any of the terms, covenants, conditions, or agreements of
Borrower herein contained. The failure or delay of Agent or Lenders to exercise or enforce any rights, liens, powers or remedies
hereunder or under any of the aforesaid agreements or other documents or security or Collateral shall not operate as a waiver of
such liens, rights, powers and remedies, but all such liens, rights, powers, and remedies shall continue in full force and effect
until the Loan and all other Obligations shall have been fully satisfied. In addition, no act of the Agent or Lenders pursuant
to the Loan Documents shall be construed as an election to proceed under any one remedy to the exclusion of other remedies. All
liens, rights, powers, and remedies herein provided for are cumulative and none are exclusive.

 

17.11        Limitations
on Claims Against Agent or Lenders.

 

17.11.1     Borrower
Must Notify. Neither Agent nor any Lender shall be in default under this Agreement, or under any other Loan Document, unless
a written notice specifically setting forth the claim of Borrower shall have been given to Agent or such Lender within sixty (60)
days after Borrower first had actual knowledge or actual notice of the occurrence of the event which Borrower alleges gave rise
to such claim and Agent or such Lender does not remedy or cure the default, if any there be, with reasonable promptness thereafter.
Such actual knowledge or actual notice shall refer to what was actually known by, or expressed in a written notification furnished
to, any of the Authorized Representatives.

 

17.11.2     Remedies.
If it is determined by the final order of a court of competent jurisdiction, which is not subject to further appeal, that Agent
or any Lender breached any of their obligations under the Loan Documents and have not remedied or cured the same with reasonable
promptness following notice thereof, Agent or such Lenders' responsibilities shall be limited to the payment of any actual, direct,
compensatory damages sustained by Borrower as a result thereof plus Borrower's reasonable costs and expenses, including, without
limitation, actual and reasonable attorneys' fees and disbursements in connection with such court proceedings.

 

    	 	111	 

     

    

 

17.11.3     LIMITATIONS.
EXCEPT AS PROHIBITED BY LAW, BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER AGAINST AGENT OR ANY LENDER IN ANY
LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.
BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. IN NO EVENT SHALL AGENT OR ANY
SUCH LENDER BE LIABLE TO BORROWER OR ANYONE ELSE UNLESS A WRITTEN NOTICE SPECIFICALLY SETTING FORTH THE CLAIM OF BORROWER SHALL
HAVE BEEN GIVEN TO AGENT OR ANY SUCH LENDER WITHIN THE TIME PERIOD SPECIFIED ABOVE.

 

17.12        Obligations
Absolute. Except to the extent prohibited by applicable law which cannot be waived, the Obligations of Borrower under the Loan
Documents shall be absolute, unconditional and irrevocable and shall be paid strictly in accordance with the terms of the Loan
Documents under all circumstances whatsoever, including, without limitation, the existence of any claim, set off, defense or other
right which Borrower may have at any time against the Agent or any Lender whether in connection with the Loan or any unrelated
transaction.

 

17.13        Table
of Contents, Title and Headings. Any Table of Contents, the titles and the headings of sections are not parts of this Agreement
or any other Loan Document and shall not be deemed to affect the meaning or construction of any of their provisions.

 

17.14        Counterparts;
Electronic Communications.

 

(a)            This
Agreement may be executed in several counterparts, each of which when executed and delivered is an original, but all of which together
shall constitute one instrument. In making proof of this Agreement, it shall not be necessary to produce or account for more than
one such counterpart which is executed by the party against whom enforcement of this Agreement is sought.

 

(b)            To the extent expressly permitted
by the provisions of Section 17.1.3, the parties hereby agree to the conduct of certain communications by electronic means.

 

17.15        Intentionally
Omitted.

 

17.16        Time
of the Essence. Time is of the essence of each provision of this Agreement and each other Loan Document.

 

    	 	112	 

     

    

 

17.17        Amendments;
No Oral Changes, etc.

 

(a)            Notwithstanding
anything to the contrary contained in this Agreement or any of the other Loan Documents, no amendment, modification, termination,
or waiver of any provision of any of the Loan Documents nor consent to any departure by Borrower or Guarantor therefrom shall in
any event be effective unless the same shall be in a written notice given to Borrower or Guarantor, respectively, by Agent and
consented to in writing by the Required Lenders (or by the Agent acting alone if any specific provision of this Agreement provides
that the Agent, acting alone, may grant such amendment, modification, termination, waiver or departure) and Agent shall give any
such notice if the Required Lenders so consent or direct Agent to do so; provided, however, that any such amendment, modification,
termination, waiver or consent shall require a written notice given to Borrower by the Agent and consented to in writing by all
of the Lenders if the effect thereof is to:

 

(i)              change
any of the provisions affecting the interest rates on the Loan;

 

(ii)            discharge
or release the Borrower from its obligation to repay all principal due under the Loan;

 

(iii)            release
any Guarantor or any material portion of the Collateral other than in accordance with the terms of the Loan Documents;

 

(iv)           except
as otherwise expressly provided in this Agreement, change any Lender's Pro Rata Share of the Loan;

 

(v)            modify
this Section 17.17;

 

(vi)           change
the definition of Required Lenders;

 

(vii)          extend
any scheduled due date for payment of principal, interest or fees;

 

(viii)         permit
Borrower to assign any of its rights under or interest in this Agreement; or

 

(ix)            increase
the Maximum Loan Amount;

 

and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given. Any amendment or modification of this Agreement
must be (i) signed by Borrower, Agent and at least all of the Lenders consenting thereto who shall then hold the Pro Rata Shares
of the Loans required for such amendment or modification under this Section 17.17 and Agent shall sign any such amendment,
on behalf of the applicable Lenders, if such Lenders so consent or direct Agent to do so provided that any Lender dissenting therefrom
shall be given an opportunity to sign any such amendment or modification, and (ii) if requested by Agent, acknowledged and consented
to by Guarantor, which consent and acknowledgment shall include an affirmation and ratification of Guarantor's obligations under
the Loan Documents executed by Guarantor. Any amendment of any of the Security Documents (other than UCC Financing Statements)
must be signed by each of the parties thereto.

 

    	 	113	 

     

    

 

(b)            In
no event shall any oral agreements, promises, actions, inactions, knowledge, course of conduct, course of dealings or the like
be effective to amend, terminate, extend or otherwise modify this Agreement or any of the other Loan Documents. THE LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

(c)            Amendments
to Hedging Contracts. Notwithstanding any contrary provision of this Agreement, (i) the Counterparty to any Hedging Contract
may enter into participations and risk sharing agreements with respect to any Hedging Contracts and may exercise all rights and
remedies under any Hedging Contracts, and (ii) the documents evidencing Hedging Contracts may be amended, or rights or privileges
thereunder waived, in a writing executed solely by the respective parties thereto.

 

17.18        Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision of this Agreement shall be prohibited by or invalid under applicable Law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

 

17.19        Cumulative
Effect; Conflict of Terms. The provisions of the Other Agreements and the Security Documents are hereby made cumulative with
the provisions of this Agreement. Except as otherwise provided in any of the Other Agreements or the Security Documents by specific
reference to the applicable provision of this Agreement, if any provision contained in this Agreement is in direct conflict with,
or inconsistent with, any provision in any of the Other Agreements or the Security Documents, the provision contained in this Agreement
shall govern and control unless the provision is governed by the laws of the jurisdiction in which the Property is located in which
case such other provision shall be controlling.

 

17.20        Agent's
or Lenders' Consent. Whenever Agent's or Lenders' consent is required to be obtained under any Loan Documents as a condition
to any action, inaction, condition or event, Agent and Lenders shall be authorized to give or withhold such consent in their sole
and absolute discretion without regard to reasonableness (unless otherwise expressly provided herein or therein) and to condition
their consent upon the giving of additional collateral security for the Obligations, the payment of money or any other matter.

 

    	 	114	 

     

    

 

17.21        Interpretation;
Integration.

 

(a)            No provision in any of the Loan Documents
shall be construed against or interpreted to the disadvantage of any party hereto by any court or other Governmental Authority
by reason of such party having or being deemed to have structured, drafted or dictated such provision.

 

(b)            This Agreement and the other Loan Documents
are intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement and
the other Loan Documents. All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed
to be superseded by this Agreement and the other Loan Documents, and no party is relying on any promise, agreement or understanding
not set forth in this Agreement or the other Loan Documents.

 

17.22        No
Preservation or Marshaling. Borrower agrees that neither Agent nor any Lender shall have any obligation to preserve rights
to the Collateral against prior parties or to marshal any Collateral for the benefit of any Person.

 

17.23        Waivers
by Borrower. EXCEPT AS IS OTHERWISE EXPRESSLY PROVIDED FOR HEREIN, OR AS REQUIRED BY APPLICABLE LAW, BORROWER WAIVES (A) PRESENTMENT,
DEMAND AND PROTEST AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT, NON-PAYMENT, INTENT TO ACCELERATE, ACCELERATION, MATURITY, RELEASE,
COMPROMISE, SETTLEMENT, EXTENSION OR RENEWAL OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS,
CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY AGENT OR LENDERS ON WHICH BORROWER MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES
AND CONFIRMS WHATEVER AGENT OR LENDERS MAY DO IN THIS REGARD; (B) NOTICE PRIOR TO TAKING POSSESSION OR CONTROL OF THE COLLATERAL
OR OBTAINING ANY BOND OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING AGENT OR LENDERS TO EXERCISE ANY OF THEIR
REMEDIES; (C) THE BENEFIT OF ALL VALUATION, APPRAISEMENT AND EXEMPTION LAWS; AND (D) NOTICE OF ACCEPTANCE HEREOF. BORROWER ACKNOWLEDGES
THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO AGENT'S AND LENDERS' ENTERING INTO THIS AGREEMENT AND THAT AGENT AND LENDERS
ARE RELYING UPON THE FOREGOING WAIVERS IN FUTURE DEALINGS WITH BORROWER. BORROWER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED SUCH RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.

 

17.24        Monthly
Statements. While Agent or Lenders may issue invoices or other statements on a monthly or periodic basis (a “Statement”),
it is expressly acknowledged and agreed that: (i) the failure of Agent or Lenders to issue any Statement on one or more occasions
shall not affect Borrower's obligations to make payments under the Loan Documents as and when due; (ii) the inaccuracy of any Statement
shall not be binding upon Agent or any Lender and so Borrower shall always remain obligated to pay the full amount(s) required
under the Loan Documents as and when due notwithstanding any provision to the contrary contained in any Statement; (iii) all Statements
are issued for information purposes only and shall never constitute any type of offer, acceptance, modification, or waiver of the
Loan Documents or any of Agent's or any Lenders' rights or remedies thereunder; and (iv) in no event shall any Statement serve
as the basis for, or a component of, any course of dealing, course of conduct, or trade practice which would modify, alter, or
otherwise affect the express written terms of the Loan Documents.

 

    	 	115	 

     

    

 

17.25        Recourse
Provisions.

 

17.25.1     Borrower
Fully Liable. Borrower shall be fully liable for the Loan and the payment and performance of all Obligations of Borrower to
Agent and Lenders.

 

17.25.2     Guarantor
Liability. Guarantor shall be personally liable with respect to the Loan and the payment and performance of the Obligations
only to the extent set forth in the Guaranty, the Environmental Indemnity Agreement and in any other Loan Documents now or hereafter
executed and delivered by Guarantor (if any).

 

17.25.3     Member
Liability. Except as set forth in the Guaranty, the Environmental Indemnity Agreement and any other Loan Documents now or hereafter
executed and delivered by Member (if any), no Member of Borrower shall have any personal liability for the payment and performance
of the Obligations.

 

17.25.4     Additional
Matters. Nothing contained in these limited recourse provisions or elsewhere shall: (i) limit the right of Agent or Lenders
to obtain injunctive relief or to pursue equitable remedies under any of the Loan Documents, excluding only any injunctive relief
ordering payment of obligations by any Person for which personal liability does not otherwise exist; or (ii) limit the liability
of any attorney, law firm, architect, accountant or other professional who or which renders or provides any written opinion or
certificate to Lenders in connection with the Loan even though such person or entity may be an agent or employee of a Person which
is not personally liable for the Obligations.

 

17.26        Office
of Foreign Asset Control (“OFAC”) and Patriot Act Notice

 

(a)            Each
Lender and Agent (for itself and not on behalf of any Lender) hereby notifies Borrower and Guarantor that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as amended, the “Patriot Act”),
it is required to obtain, verify and record information that identifies Borrower and Guarantor, which information includes the
name and address of Borrower and Guarantor and other information that will allow such Lender or Agent, as applicable, to identify
Borrower and Guarantor in accordance with the Patriot Act. Borrower shall, promptly following a request by Agent, provide all documentation
and other information that any Lender reasonably requests in order to comply with its ongoing obligations under “know your
customer” and OFAC requirements and all anti-money laundering or other applicable Laws, including the Patriot Act and the
Beneficial Ownership Regulation, with respect to any Person owning such percentage of the direct or indirect ownership interests
in Borrower or Guarantor that may be then required by applicable Law).

 

    	 	116	 

     

    

 

(b)            Each Lender and Agent hereby
notifies Borrower that:

 

(i)              To help the government fight
the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and
record information that identifies each customer who opens an account (including the extension of credit to a customer). Therefore,
all new and existing customers are subject to the identity verification requirements. When you open an account with any entity
within the Lenders’ family of companies, Lenders require the following information for the Business: Business Name, Business
Address, Business TIN and Business Phone Number.

 

(ii)             In addition, all financial institutions
must check all Borrowers; Collateral Owners; Guarantors; Co-signors; Receiving and Sending Parties; General Partners, Managing
Members and Trustees; and Limited Partners, Managing Members and Beneficiaries holding ownership interests of twenty percent (20%)
or more in Borrower or Guarantor; against the US Department of Treasury’s list for Specially Designated Nationals and Blocked
Persons.

 

(iii)            Both the Patriot Act and OFAC
verifications must be completed prior to the Loan closing date.

 

17.27        Electronic
Transmission of Data. The parties agree that certain data related to the Loan (including confidential information, documents,
applications and reports) may be transmitted electronically, including transmission over the internet. This data may be transmitted
to, received from or circulated among employees, agents and representatives of Borrower, Agent and Lenders and their respective
Affiliates and other Persons involved with the subject matter of this Agreement. Borrower acknowledges and agrees that (a) there
are risks associated with the use of electronic transmission and that neither Agent nor any Lender controls the method of transmittal
or service providers, (b) Agent and Lenders have no obligation or responsibility whatsoever and assume no duty or obligation for
the security, receipt or third party interception of any such transmission, and (c) Borrower will release, hold harmless and indemnify
Agent and Lenders from any claim, damage or loss, including that arising in whole or part from Agent's or any Lender’s strict
liability or sole, comparative or contributory negligence (other than any claim, damage or loss arising from Agent's or a Lender's
gross negligence or willful misconduct), which is related to the electronic transmission of data.

 

    	 	117	 

     

    

 

17.28        No
Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) the credit facility provided for hereunder
and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower and its
Affiliates, on the one hand, and the Agent and the Arranger, on the other hand, and the Borrower is capable of evaluating and understanding
and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents
(including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such
transaction, the Agent and the Arranger each is and has been acting solely as a principal and is not the financial advisor, agent
or fiduciary, for the Borrower, any other Loan Party or any of their respective Affiliates, stockholders, creditors or employees
or any other Person; (iii) neither the Agent nor the Arranger has assumed or will assume an advisory, agency or fiduciary responsibility
in favor of the Borrower or any other Loan Party with respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective
of whether the Agent or the Arranger has advised or is currently advising the Borrower, any other Loan Party or any of their respective
Affiliates on other matters) and neither the Agent nor the Arranger has any obligation to the Borrower, to any other Loan Party
or to any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly
set forth herein, or in the other Loan Documents; (iv) the Agent and the Arranger and their respective Affiliates may be engaged
in a broad range of transactions that involve interests that differ from those of the Borrower, the other Loan Parties and their
respective Affiliates, and neither the Agent nor the Arranger has any obligation to disclose any of such interests by virtue of
any advisory, agency or fiduciary relationship; and (v) the Agent and the Arranger have not provided and will not provide any legal,
accounting, regulatory or tax advice to Borrower or any other Loan Party with respect to any of the transactions contemplated hereby
(including any amendment, waiver or other modification hereof or of any other Loan Document) and the Borrower has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. The Borrower hereby waives and releases,
to the fullest extent permitted by applicable Law, any claims that it may have against the Agent or the Arranger with respect to
any breach or alleged breach of agency or fiduciary duty.

 

17.29        Disclaimer
by Agent and Lenders. Agent and Lenders shall not be liable to any subcontractor, supplier, laborer, architect, engineer or
any other party for services performed or materials supplied in connection with the Property. Agent and Lenders shall not be liable
for any debts or claims accruing in favor of any such parties against Borrower or against the Property. Borrower shall not be considered
an agent of Agent or of Lenders for any purposes, and Agent and Lenders are not venture partners with Borrower. Agent and Lenders
shall not be deemed to be in privity of contract with any contractor, subcontractor or provider of services on or to the Property.
Nor shall any payment of funds directly to any contractor, or subcontractor or provider of services on or to the Property, be deemed
to create any third party beneficiary status or recognition of same by Agent or Lenders. Approvals granted by Agent or Lenders
for any matters covered under this Agreement shall be narrowly construed to cover only the parties and facts identified in any
written approval.

 

[Remainder of page intentionally
left blank. Signatures on following page(s).]

 

    	 	118	 

     

    

 

IN WITNESS WHEREOF this Agreement has been
duly executed and delivered as a sealed instrument as of the date first above written.

  

	 	BORROWER:
	 	 
	 	PHR TCI, LLC,
	 	a Delaware limited liability company

 

	 	By:	/s/ James A. Procaccianti
	 	Name:	James A. Procaccianti
	 	Title:	Authorized Representative

 

	 	AGENT:
	 	 
	 	CITIZENS BANK, NATIONAL ASSOCIATION,

as Agent

 

	 	By:	/s/ Alexander M. Hofstetter
	 	Name:	Alexander M. Hofstetter
	 	Title:	Senior Vice President

 

	 	LENDER:
	 	 
	 	CITIZENS BANK, NATIONAL ASSOCIATION,

as a Lender

 

	 	By:	/s/ Alexander M. Hofstetter
	 	Name:	Alexander M. Hofstetter
	 	Title:	Senior Vice President

  

     

     

    

  

LIST OF EXHIBITS

 

	 	 	 	 	 	 	Section
	 	 	 	 	 	 	Reference
	 	 	 	 	 	 	Number
	 	 	 	 	 	 	 
	Exhibit A	 	-	 	Organizational Chart Setting Forth  Ownership Interests, Authorized  Representatives and Organizational and Taxpayer Identification Numbers	 	4, 8.10.2
	 	 	 	 	 	 	 
	Exhibit B	 	-	 	Intentionally Omitted	 	 
	 	 	 	 	 	 	 
	Exhibit C	 	-	 	Required Hazard, Property and Other Insurance	 	7.1.13 and 9.5
	 	 	 	 	 	 	 
	Exhibit D	 	-	 	Lenders' Pro Rata Shares, Notice Addresses and Wire Transfer Instructions	 	2.16, 15.2, 16.2.1 and 17.1
	 	 	 	 	 	 	 
	Exhibit E	 	-	 	Form of Assignment and Assumption	 	16.1.1
	 	 	 	 	 	 	 
	Exhibit F	 	-	 	Form of Compliance Certificate	 	9.1
	 	 	 	 	 	 	 
	Exhibit G	 	-	 	Conditions Subsequent	 	7.2
	 	 	 	 	 	 	 
	Exhibit H	 	-	 	Approved Capital Expenditures Budget	 	9.41

 

     

     

    

  

EXHIBIT A

 

ORGANIZATIONAL CHART SETTING FORTH
OWNERSHIP INTERESTS, AUTHORIZED REPRESENTATIVES

AND ORGANIZATIONAL AND TAXPAYER IDENTIFICATION
NUMBERS

 

 

 

     

     

    

  

EXHIBIT B

 

INTENTIONALLY OMITTED

 

     

     

    

  

EXHIBIT C

 

REQUIRED PROPERTY, HAZARD AND OTHER
INSURANCE

 

Borrower shall at all times provide and
maintain the following insurance coverages with respect to the Property issued by companies qualified to do business in the jurisdiction
where the Property is located, having a Best's Rating of not less than A-IX and otherwise reasonably acceptable to Agent:

 

		(i)	property insurance on an all-risk basis without exception
(including, without limitation, flood [required if property is in a “Special Flood Hazard Area” A or V],
vandalism and malicious mischief, terrorism, earthquake, collapse, boiler explosion, sprinkler coverage, cost of demolition, increased
costs of construction and the value of the undamaged portion of the building and soft costs coverage) covering all the real estate,
fixtures and personal property to the extent of the full insurable value thereof, on an all-risk non-reporting form, having replacement
cost, laws and ordinances and agreed amount endorsements (with deductibles reasonably acceptable to Agent);

 

		(ii)	rent loss or business interruption insurance in an amount
equal to one year's projected Rents or gross revenues;

 

		(iii)	commercial general liability insurance, with underlying
and umbrella coverages totaling not less than $25,000,000 per occurrence and $25,000,000 in the aggregate or such other amounts
as may be reasonably determined by Agent from time to time;

 

		(iv)	worker's compensation, employer's liability and other insurance
required by law (if applicable); and

 

		(v)	such other insurance coverages in such amounts as Agent
may reasonably request consistent with the customary practices of prudent developers and owners of similar properties.

 

An actual insurance policy or certified
copy thereof, or a binder, certificate of insurance, or other evidence of property coverage in the form of Acord 28 (Evidence of
Commercial Property Coverage), Acord 25 (Certificate of Insurance), or a 30-day binder in form acceptable to Agent, shall be delivered
at closing of the Loan. Thereafter, if requested by Agent, a copy of any insurance policy requested by Agent shall be delivered
to Agent within ten (10) days after Agent’s request therefor.

 

Flood insurance shall be provided if the
Property is located in a flood prone, flood risk or flood hazard area as designated pursuant to the Federal Flood Disaster Protection
Act of 1973, as amended, and the Regulations thereunder, or if otherwise reasonably required by Agent.

 

     

     

    

  

Agent shall be named as first mortgagee
on policies of all-risk-type insurance on the Property, as loss payee on the Collateral and its contents, and as first mortgagee
on rent-loss or business interruption coverages related thereto.

 

Except with respect to commercial general
liability insurance, as to which Agent shall be named as an additional insured with respect to the Property, all other required
insurance coverages shall have a so-called “mortgagee's endorsement” or “lender's loss-payable endorsement”
which shall provide in substance as follows:

 

A.           Loss
or damage, if any, under the policy shall be paid to Agent and its successors and assigns in whatever form or capacity its interest
may appear and whether said interest be vested in Agent in its individual or in its disclosed or undisclosed fiduciary or representative
capacity, or otherwise, or vested in a nominee or trustee of Agent.

 

B.           The
insurance under the policy, or under any rider or endorsement attached thereto, as to the interest only of Agent shall not be invalidated
nor suspended:

 

		(a)	by any error, omission or change respecting the ownership,
description, possession or location of the subject of the insurance or the interests therein or the title thereto; or

 

		(b)	by the commencement of foreclosure or similar proceedings
or the giving of notice of sale of any of the property covered by the policy by virtue of any mortgage, deed of trust, or security
interest; or

 

		(c)	by any breach of warranty, act, omission, neglect, or noncompliance
with any provisions of the policy by the named insured, or anyone else, whether before or after a loss, which under the provisions
of the policy of insurance, would invalidate or suspend the insurance as to the named insured, excluding, however, any acts or
omissions of Agent while exercising active control and management of the insured property.

 

C.           Insurer
shall provide Agent with not less than (x) ten (10) days’ prior written notice of cancellation of the policy (for non-payment)
and (y) thirty (30) days’ prior written notice of cancellation of the policy (for any reason other than non-payment) or of
the non-renewal thereof.

 

D.           The
insurer reserves the right to cancel the policy at any time, but only as provided by its terms. However, in such case this policy
shall continue in force for the benefit of Agent and Lenders for thirty (30) days after written notice of such cancellation is
received by Agent and shall then cease.

 

E.           Should
legal title to and beneficial ownership of any of the property covered under the policy become vested in Agent or Lenders or their
agents, successors or assigns, insurance under the policy shall continue for the term thereof for the benefit of Agent and Lenders.

 

    	 	2	 

     

    

  

F.           All
notices herein provided to be given by the insurer to Agent or Lenders in connection with the policy and lender's loss payable
endorsement shall be mailed to or delivered to Agent at the address specified by Agent:

 

	 	Citizens Bank, N.A.	 
	 	 	 
	 	 	 
	 	 	 

 

    	 	3	 

     

    

  

EXHIBIT D 

 

LENDERS' PRO RATA SHARES AND AGENT'S
AND LENDERS'

NOTICE ADDRESSES AND WIRE TRANSFER
INSTRUCTIONS

 

Name of AGENT, address for notices

and wire transfer instructions:

 

	 	Citizens Bank, N.A., Agent
	 	One Citizens Plaza
	 	Providence, RI 02903
	 	Attn:   Commercial Real Estate Loan Administration
	 	Fax Number: 401-_____________
	 	 
	 	Wire Transfer Instructions:
	 	 
	 	Citizens Bank, N.A.
	 	ABA #:__________________
	 	Beneficiary:______________
	 	Account #:_______________
	 	Re:_____________________
	 	Attention:________________
	 	Telephone:_______________

 

	Name of LENDER, address for notices	 	 
	and wire transfer instructions:	 	Pro Rata Share
	 	 	 	 
	 	Citizens Bank, N.A.	 	  100%
	 	One Citizens Plaza	 	 
	 	Providence, RI 02903	 	 
	 	Attn: Commercial Real Estate Loan Administration	 	 
	 	Fax Number: 401-__________	 	 
	 	 	 	 
	 	Wire Transfer Instructions:	 	 
	 	 	 	 
	 	Citizens Bank, N.A.	 	 
	 	ABA #:____________________  	 	 
	 	Beneficiary:________________	 	 
	 	Account #:  	 	 
	 	Re:_______________________	 	 
	 	Attention:_________________	 	 
	 	Telephone:________________	 	 

 

     

     

    

  

EXHIBIT E

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment”)
is dated as of the Effective Date set forth below and is entered into by and between _________________ (the “Assignor”)
and ____________________ (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings
given to them in the Loan Agreement identified below (the “Loan Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to
and incorporated herein by reference and made a part of this Assignment as if set forth herein in full.

 

For an agreed consideration, the Assignor
hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor,
subject to and in accordance with the Standard Terms and Conditions and the Loan Agreement, as of the Effective Date inserted by
Administrative Agent as contemplated below, (i) all of the Assignor’s rights and obligations as a Lender under the Loan Agreement
and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below, and (ii)
to the extent permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of the Assignor
(in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Loan Agreement,
any other documents or instruments delivered pursuant thereto or in any way based on or related to any of the foregoing, including,
but not limited to contract claims, tort claims, malpractice claims, statutory claims and all other claims at Law or in equity,
related to the rights and obligations sold and assigned pursuant to Subsection (i) above (the rights and obligations sold
and assigned pursuant to Subsections (i) and (ii) above being referred to herein collectively as the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment,
without representation or warranty by the Assignor.

 

	1.	Assignor:      _____________________________________
	 	 
	2.	Assignee:      _______________________________ [, an Affiliate/Approved Fund of __________________]
	 	 
	3.	Borrower(s):  PHR TCI, LLC, a Delaware limited liability company
	 	 
	4.	Agent: Citizens Bank, National Association, as the administrative agent under the Loan Agreement

 

     

     

    

 

	5.	Loan Agreement:	The Loan Agreement, dated as of August 15, 2018 among Borrower, the Lenders parties thereto, and Citizens Bank, National Association, as Agent. 

 

		6.	Assigned Interest:

 

	Aggregate
 Amount of
 Commitment/Loans
 for all Lenders
	 	 	Amount of
 Commitment/Loans
 Assigned
	 	 	Percentage
 Assigned of
 Commitment/Loans
	 
	 	 	 	 	 	 	 	 	 	 	 
	$		 	 	$		 	 	 		%

 

Effective Date: __________________, 20__
[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set forth in this Assignment are hereby agreed to:

 

	 	ASSIGNOR:
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ASSIGNEE:
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Consented to and] Accepted:

 

	CITIZENS BANK, NATIONAL ASSOCIATION	 
	as Agent	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 	2	 

     

    

  

	[Consented to by Borrower (if required):]	 
	 	 
	PHR TCI, LLC,	 
	a Delaware limited liability company 	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 	3	 

     

    

  

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.             Representations
and Warranties.

 

1.1.          Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby; and (b) assumes
no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Loan Agreement
or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan
Documents, or any collateral thereunder, (iii) the financial condition of Borrower, any of its Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by Borrower, any of its Affiliates or any other Person of
any of their respective obligations under any Loan Document.

 

1.2.          Assignee.
The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and to consummate the transactions contemplated hereby and to become a Lender under the Loan Agreement,
(ii) it meets all requirements of an Eligible Assignee under the Loan Agreement (subject to receipt of such consents as may be
required under the Loan Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreement
as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
has received a copy of the Loan Agreement, together with copies of the most recent financial statements delivered pursuant thereto,
as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision
independently and without reliance on Agent or any other Lender to enter into this Assignment and to purchase the Assigned Interest
on the basis of which it has made such analysis and decision, and (v) if it is a Foreign Lender, it has delivered to Agent any
documentation required to be delivered by it pursuant to the terms of the Loan Agreement, duly completed and executed by the Assignee;
and (b) agrees that (i) it will, independently and without reliance on Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by
the terms of the Loan Documents are required to be performed by it as a Lender.

 

1.3           Assignee’s
Address for Notices, etc. Attached hereto as Schedule 1 is all contact information, address, account and other administrative
information relating to the Assignee.

 

     

     

    

  

2.          Payments.
From and after the Effective Date, Agent shall make all payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to or on or after the Effective Date.
The Assignor and the Assignee shall make all appropriate adjustments in payments by Administrative Agent for periods prior to the
Effective Date or with respect to the making of this Assignment directly between themselves.

 

3.          General
Provisions. This Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors
and assigns. This Assignment may be executed in any number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment by facsimile shall be effective as delivery of a manually executed
counterpart of this Assignment. This Assignment shall be governed by, and construed in accordance with, the Law of the Commonwealth
of Massachusetts.

 

    	 	2	 

     

    

  

SCHEDULE 1 TO ASSIGNMENT
AND ASSUMPTION

 

ADMINISTRATIVE DETAILS

 

(Assignee to list names of credit
contacts, addresses, phone and facsimile numbers, electronic mail addresses and account and payment information)

 

		(a)	LIBOR Lending Office:

 

	Assignee name:	 	 
	Address:	 	 
	 	 
	Attention:	 	 
	Telephone:  (__)	 	 
	Facsimile: (__)	 	 
	Electronic Mail:	 	 

 

(b)          Domestic
Lending Office:

 

	Assignee name:	 	 
	Address:	 	 
	 	 	 
	Attention:	 	 
	Telephone:  (__)	 	 
	Facsimile: (__)	 	 
	Electronic Mail:	 	 

 

(c)          Notice
Address:

 

	Assignee name:	 	 
	Address:	 	 
	 	 	 
	Attention:	 	 
	Telephone:  (__)	 	 
	Facsimile: (__)	 	 
	Electronic Mail:	 	 

 

		(d)	Payment Instructions:

Account No.__

Attention: ___

Reference: __

 

     

     

    

 

EXHIBIT F

 

COMPLIANCE CERTIFICATE

 

	Citizens Bank, N.A., Agent	Date: ___________, 20__
	One Citizens Plaza	 
	Providence, RI 02903	 
	Attention:  Alex Hofstetter, Senior Vice President	 

 

		Re:	Compliance Certificate required by Section 9.1 of the Loan Agreement dated as of August 15, 2018 (as the same may be
amended from time to time, the “Loan Agreement”) by and among Citizens Bank, National Association as Agent and as a
Lender, the other Lenders party thereto and PHR TCI, LLC, a Delaware limited liability company, as Borrower (“Borrower”)

 

Ladies and Gentlemen:

 

This certificate is submitted by the Borrower
pursuant to Section 9.1 of the Loan Agreement. Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Loan Agreement.

 

The Borrower hereby certifies to the Agent
and the Lenders that, to the best of the undersigned's knowledge:

 

A.           As
of the date hereof, no Default has occurred and is continuing;

 

B.           The
Annual Financial Statements dated as of December __, 20__ and provided to Agent pursuant to Section 9.2.1 of the Loan Agreement
were true, accurate and complete in all material respects as of such date; - TO BE INCLUDED IN COMPLIANCE CERTIFICATE REQUIRED
TO BE ISSUED BY APRIL 30 OF EACH YEAR ONLY

 

C.           The
Quarterly Financial Statements dated __________, 20__ and provided to Agent pursuant to Section 9.2.2(a) of the Loan Agreement
were true, accurate and complete in all material respects as of such date [REQUIRED IF COMPLIANCE CERTIFICATE IS BEING ISSUED
IN CONNECTION WITH QUARTERLY FINANCIAL STATEMENTS];

 

D.           As
of the date hereof, there exists no Indebtedness which is not Permitted Additional Debt.

 

E.           The
following information is true, accurate and complete as of ________, 20__:

 

		1.	Debt Service Coverage Ratio (Quarterly Test)

(Loan Agreement - Section 9.2.2[b])

 

     

     

    

  

	a)	Net Operating Income:	_________
	 	 	 
	 	 	 
	b)	Debt Service Coverage Interest Rate (“DSCIR”) Determination	 
	 	(As provided by Citizens) 	 
	 	 	 
	 	The Greater of:	 
	 	 	 
	 	“Adjusted LIBOR Rate” plus LIBOR Rate Margin	_________
	 	or DSC Treasury Rate plus 2.5%	_________
	 	or 6.75%	6.75%
	 	 	 
	 	DSCIR:	_________%
	 	 	 
	c)	Debt Service Coverage Principal Balance	 
	 	 	_________
	 	 	(As of
	 	 	Date above - provided by Citizens)
	 	 	 
	d)	Principal Amortization (25 year	 
	 	schedule):	 
	 	 	 
	 	Loan Balance (#1c)	_________
	 	Interest Rate (#1b)	_________
	 	Term (Schedule)	25 yrs. 
	 	 	 
	 	Principal Requirement 1 Year:	_________
	 	 	 
	e)	Calculation of Total Debt Service:	 
	 	 	 
	 	Total Debt Service:	_________
	 	 	 
	f)	Debt Service Coverage Ratio:	 
	 	 	 
	 	NOI (#1a)	_________
	 	divided by	 
	 	Total Debt Service (#1e)	_________
	 	Equals	 
	 	 	 
	 	DSC Ratio:	_________

 

    	 	2	 

     

    

  

		2.	Cash Reserve Account and Loan Repayments
(Quarterly Test)

 (Loan Agreement - Sections 9.2.2(b) & 10.2)

 

	DSC Ratio (#1f):	_________

 

		a)	If less than the applicable minimum DSC Ratio that is now required pursuant to Section 10.2.1
of the Loan Agreement but greater than 1.1 to 1, then either: (i) deposit Net Cash Flow for immediately preceding NCF Period in
Cash Reserve Account and on each NCF Payment Date thereafter deposit all Net Cash Flow in Cash Reserve Account, (ii) pay down Loan
to the applicable minimum DSC Ratio that is now required pursuant to Section 10.2.1, or (iii) furnish Acceptable Letter
of Credit in such amount.

 

		b)	If less than 1.1 to 1, then either: (i) pay down Loan to the applicable minimum DSC Ratio that
is now required pursuant to Section 10.2.1, or (ii) furnish Acceptable Letter of Credit in such amount.

 

	 	Funds Deposited in Cash Reserve Account 	_________	 
	 	 	 	 
	 	Acceptable Letter of Credit or Loan Paydown	_________	 
	 	 	 	 
	 	Recalculated DSC Ratio	_________	 

 

[Borrower signature on following
page.]

 

    	 	3	 

     

    

  

The undersigned is a duly designated Authorized
Representative of Borrower.

 

	 	BORROWER:
	 	 
	 	PHR TCI, LLC,
	 	a Delaware limited liability company 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	4	 

     

    

 

EXHIBIT G

 

CONDITIONS SUBSEQUENT

 

The following Conditions Subsequent (all
in form and substance reasonably satisfactory to Agent) shall be delivered to Agent or otherwise satisfied by Borrower within thirty
(30) days after the closing of the Loan or such other period (if any) as is set forth below:

 

		1.	Title Insurance Policy for the Property in compliance with
the Recording/Escrow Letter from Hinckley, Allen & Snyder LLP to First American Title Insurance Company, c/o Vanguard Title
Insurance Agency, LLC, dated August 14, 2018.

 

		2.	Originals of all recorded/filed Security Documents (including
UCC Financing Statements). (To be delivered to Agent within ten (10) days after they are returned by the respective recording
office(s)).

 

		3.	Consent of the Issuer of the Required Interest Rate Protection
Agreement to its assignment to Agent (substantially in Agent's customary form). (To be delivered to Agent within ten (10) Business
Days after the date hereof.)

 

		4.	Baseline Environmental Assessment for the Property, as
filed with the State of Michigan Department of Environmental Quality. (To be delivered to Agent within thirty (30) days after
the date hereof.)

 

		5.	Amendment to the Operating Lease setting forth the “Fixed
Rent” and “Percentage Rent” thereunder, in form and substance satisfactory to Agent. (To be delivered to Agent
within fifteen (15) days after the date hereof.)

 

		6.	Original, fully executed Franchisor “Comfort Letter”
in form and substance satisfactory to Agent.

 

		7.	Signed and sealed Survey in the form approved by Agent
as of the date hereof (PDF and original to be delivered within two (2) days after the date hereof).

 

     

     

    

 

EXHIBIT H

 

APPROVED CAPITAL EXPENDITURES BUDGET

 

[See Attached]

 

     

     

    

 

Hotel
Indigo Traverse City, 263 W Grandview Parkway, Traverse City, Michigan 49684

 

PIP Inspection
- 02/19/18

PIP
Date - 03/01/18

Budget Date -
03/19/18

Last Revision
- 05/10/18 - BY EVAN

 

	PIP
    #	 	Item
    Description	 	Qty	 	UOM	 	Unit
    Price Sub	 	 	Total
    Project Cost	 	 	Comments
	1.) Exterior Areas	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Site	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	Provide appropriate
    screening of hotel site equipment from guest view that coordinates with the Hotel architecture.	 	1	 	Allow	 	 	2,500	 	 	$	2,500	 	 	Hotel is in violation
    of the screening of the dumpster. Allowance to correct, per CBRE/IVI - $2,500.
	 	 	NON-PIP ITEM: Replace PTAC
    Units on the north, east, and west side (highway side) of the hotel	 	54	 	Each	 	 	1,750	 	 	$	94,500	 	 	Evergreen PTAC unit (with an STC
    of 35). Verbal pricing from Evergreen.
	 	 	NON-PIP ITEM: Replace guestrooms
    windows on the north side, east, and west (highway side) of the hotel	 	0	 	Each	 	 	1,000	 	 	$	-	 	 	DO NOT DO WINDOW REPLACEMENTS
    AT THIS TIME
	 	 	Site Total	 	 	 	 	 	 	 	 	 	$	97,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Landscaping	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	Provide additional landscaping
    at entry beds, around the building monument sign, and around porte cochere columns.	 	0	 	Allow	 	 	0	 	 	$	-	 	 	Flowers in entry beds around the
    parking lot maintained seasonally. Done May 2018.
	3	 	Provide additional planters at
    street side of Restaurant doors.	 	4	 	Each	 	 	1,250	 	 	$	5,000	 	 	Resin-based, commercial product.
    Low maintentance. Can handle harsh temps. Look at TerraCast Products, for example.
	 	 	Landscaping Total	 	 	 	 	 	 	 	 	 	$	5,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Outdoor/ Patio Terrace	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	Provide decorative planters with
    colorful seasonal plantings.	 	1	 	Allow	 	$	5,000	 	 	$	5,000	 	 	Allowance of $5K for planters
    and plants. Seller indicated they are doing this by Jun-18, but am guessing it will be minimal.
	 	 	Outdoor/ Patio Terrace Total	 	 	 	 	 	 	 	 	 	$	5,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II.) Public Areas	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Overall Area	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7	 	This hotel is brand new and opened
    in 2016. Overall the design of this hotel provides the base layer that the brand is expecting but is lacking the upscale implementation
    of ‘Wit and Whimsy’. Provide additional design elements throughout that intrigue the guest and reflect the neighborhood
    story in an interesting and creative way.	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	Overall Area Total	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lobby	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NON-PIP ITEM: IT-Related
    Costs, including HSIA, PBX, and Back Office.	 	1	 	Allow	 	$	190,000	 	 	$	150,000	 	 	HSIA - $50K

    PBX - $50K

    Back Office - $50K

 

    	 	 	Page 1 of 5

     

    

 

Hotel
Indigo Traverse City, 263 W Grandview Parkway, Traverse City, Michigan 49684

 

PIP Inspection
- 02/19/18

PIP
Date - 03/01/18

Budget Date -
03/19/18

Last Revision
- 05/10/18 - BY EVAN

 

	PIP#	 	Item
    Description	 	Qty	 	UOM	 	Unit
    Price Sub	 	 	Total
    Project Cost	 	 	Comments
	10	 	Replace
    reception area lobby seating. Provide two new chairs with arms, and retain two of the green accent chairs, but provide new
    accent lumbar pillows in an alternate printed fabric.	 	4	 	Each	 	$	750	 	 	$	3,000	 	 	 
	11	 	At
    reception area lobby seating, replace existing coffee table and provide a new creative table concept that aligns with the
    neighborhood story.	 	1	 	Allow	 	$	1,500	 	 	$	1,500	 	 	 
	12	 	Remove
    the Neighborhood Guide or repurpose per Brand approved guidelines.	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	13	 	Replace
    existing reception area rug and provide new circular rug to anchor updated seating group. New rug should be colorful and coordinate
    with the new and existing lobby decor.	 	1	 	Allow	 	$	3,500	 	 	$	3,500	 	 	 
	14	 	Replace
    reception area decorative ceiling fixture. New lobby light fixture should be an impactful conversation piece that sets the
    tone for the refreshed lobby design.	 	1	 	Allow	 	$	4,500	 	 	$	4,500	 	 	 
	15	 	Replace
    decorative accessories.	 	1	 	Allow	 	$	5,000	 	 	$	5,000	 	 	$5K
    allowance for decorative nicknacks.
	16	 	Remove
    existing paintings which are located throughout the public areas. If paintings are not removed, locate all of them in a comprehensive
    "gallery style'1 installation in a central area of the lobby.	 	 	 	 	 	 	 	 	 	$	-	 	 	I
    would not remove the existing paintings. I would keep the paintings as-is.
	 	 	Lobby
    Total	 	 	 	 	 	 	 	 	 	$	167,500	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grab
    and Go	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	18	 	Provide
    Grab n’ Go/ Market signage.	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	18A	 	Enhance
    Grab n’ Go experience	 	1	 	Allow	 	$	50,000	 	 	$	50,000	 	 	Could
    be located across from the front desk, by the columns and restaurant. They currently serve coffee there in the mornings.
	 	 	Grab
    and Go Total	 	 	 	 	 	 	 	 	 	$	50,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Business
    Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	20	 	Replace
    existing art piece and provide a new mural that aligns with the neighborhood story.	 	1	 	Allow	 	$	1,500	 	 	$	1.500	 	 	 
	 	 	Business
    Center Total	 	 	 	 	 	 	 	 	 	$	1,500	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Restaurant	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	23	 	Provide
    a communal table within the F&B zone (adjacent to the bar) of the lobby space. Table should accommodate 6-8 and have integrated
    power outlets.	 	1	 	Allow	 	 	1,000	 	 	$	1,000	 	 	Communal
    table is there (moved from boardroom), but does not have integrated outlets. Need to add electric outlets to wall.
	24	 	Murals
    and/or custom boutique design features are required throughout the property that relate back to the neighborhood story.	 	1	 	Allow	 	 	5,000	 	 	$	5,000	 	 	$5K
    allowance for art pieces/murals in restaurant area.
	25	 	Replace
    existing art and provide a new comprehensive art package that aligns with the neighborhood story.	 	 	 	 	 	 	 	 	 	$	-	 	 	Induded
    Above
	 	 	Restaurant
    Total	 	 	 	 	 	 	 	 	 	$	6,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Public
    Restrooms - Multi	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	26	 	Provide
    art that aligns with the neighborhood story.	 	1	 	Allow	 	 	1,000	 	 	$	1,000	 	 	1
    would not go overboard here. A couple of art pieces in men’s bathroom only. No spot for artwork in woman's bathroom.
    Bathrooms are unique with a lot of stone. $1K allowance should be enough.

 

    	 	 	Page 2 of 5

     

    

 

Hotel
Indigo Traverse City, 263 W Grandview Parkway, Traverse City, Michigan 49684

 

PIP Inspection
- 02/19/18

PIP
Date - 03/01/18

Budget Date -
03/19/18

Last Revision
- 05/10/18 - BY EVAN

 

	PIP#	 	Item
    Description	 	Qty	 	UOM	 	Unit
    Price Sub	 	 	Total
    Project Cost	 	 	Comments
		 	Public
    Restrooms- Multi Total	 	 	 	 	 	 	 	 	 	$	1,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Public
    Restrooms- Single	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27	 	Replace
    existing wall finish and provide new decorative wall vinyl and tile at wet wall.	 	 	 	 	 	 	 	 	 	$	-	 	 	Completed
	28	 	Replace
    vanity, and vanity mirror. Provide new vanity with millwork base. Remove exiting mirror and provide electric mirror	 	 	 	 	 	 	 	 	 	$	-	 	 	Completed
	29	 	Provide
    artwork.	 	 	 	 	 	 	 	 	 	$	-	 	 	Completed
	 	 	Public
    Restrooms- Single Total	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Pre-function	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30	 	Provide
    seating at pre-function area, to include upholstered benches and small conversational accent chairs.	 	1	 	Allow	 	$	-	 	 	$	-	 	 	Already
    done
	31	 	The
    hotel is missing the whit and whimsy design layer required by the Brand. Replace and provide a new comprehensive art package
    that aligns with the neighborhood story.	 	1	 	Allow	 	$	-	 	 	$	-	 	 	This
    is the same line item as "Corridors" below.
	 	 	Pre-function
    Total	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Coat
    Room	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	32	 	Provide
    sliding doors or drapery panel to conceal coat check closet when not in use by hotel guests.	 	1	 	Allow	 	$	-	 	 	$	-	 	 	I
    would just remove this item. This is tucked away and nobody sees it anyway.
	 	 	Coat
    Room Total	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Meeting
    Room	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	33	 	Replace
    window treatments. Provide new window treatments with blackout capabilities for meetings/events.	 	1	 	Allow	 	$	4,000	 	 	$	4,000	 	 	 
	34	 	Provide
    the appropriate audio visual equipment at meeting spaces. Retractable AV screen and/or large wall mounted TV with computer
    connections required at a minimum.	 	2	 	Each	 	$	19,000	 	 	$	38,000	 	 	Room
    splits in two with airwall. Pricing per Bridget proposal.
	35	 	Provide
    a reverse door viewer.	 	1	 	Allow	 	$	-	 	 	$	-	 	 	Done
	36	 	Provide
    artwork or decorative mirror at built-in credenza cabinet.	 	1	 	Allow	 	$	1,000	 	 	$	1,000	 	 	 
	 	 	Meeting
    Room Total	 	 	 	 	 	 	 	 	 	$	43,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Board
    Room	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	37	 	Provide
    a reverse door viewer.	 	1	 	Allow	 	$	-	 	 	$	-	 	 	Done
	 	 	Board
    Room Total	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Corridors	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	38	 	The
    hotel is missing the whit and whimsy design layer required by the Brand. Replace and provide a new comprehensive art package
    that aligns with the neighborhood story.	 	1	 	Allow	 	$	5,000	 	 	$	5,000	 	 	This
    is the corridor by the meeting room. Would lower this to $5,000.
	 	 	Corridors
    Total	 	 	 	 	 	 	 	 	 	$	5,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III.)
    Recreational areas	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	Fitness Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	 	Page 3 of 5

     

    

 

Hotel
Indigo Traverse City, 263 W Grandview Parkway, Traverse City, Michigan 49684

 

PIP Inspection
- 02/19/18

PIP
Date - 03/01/18

Budget Date -
03/19/18

Last Revision
- 05/10/18 - BY EVAN

 

	PIP#	 	Item
    Description	 	Qty	 	UOM	 	 	Unit
    Price Sub	 	 	Total
    Project Cost	 	 	Comments
	 	 	Provide a mural and/or
    decorative wall vinyl within the Fitness Center.	 	1	 	 	Allow	 		$	-	 	 	$	-	 	 	There is already a
    mural on the wall. Hand painted log brandings, by a local painter. Would not do this.
	 	 	Fitness Center Total	 	 	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV.) Guest Room Areas	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Elevator Lobbies	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	39	 	Provide window treatments to dress
    elevator lobby windows. Provide a millwork cornice with decorative stationary panels and sheer roller blinds.	 	3	 	 	Each	 	 	$	900	 	 	$	2,700	 	 	 
	40	 	Replace existing wall finish with
    new accent wall vinyl and/or paint to coordinate with the required carpet runner and mural/art installation.	 	3	 	 	Each	 	 	$	1,500	 	 	$	4,500	 	 	Paint accent wall on each floor's
    elevator lobby.
	41	 	Murals and/or custom boutique
    design features are required that relate to the neighborhood story. Provide a mural at accent wall adjacent to elevators or
    at a minimum provide a creative art installation.	 	3	 	 	Each	 	 	$	1,000	 	 	$	3,000	 	 	Art per elevator lobby.
	42	 	Provide a large upholstered bench
    or small conversational seating grouping.	 	3	 	 	Each	 	 	$	2,000	 	 	$	6,000	 	 	Seating per elevator lobby.
	43	 	Provide decorative carpet runners
    at elevator lobbies.	 	3	 	 	Each	 	 	$	1,500	 	 	$	4,500	 	 	 
	 	 	Elevator Lobbies Total	 	 	 	 	 	 	 	 	 	 	 	$	20,700	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Corridors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Provide window treatments at corridor
    window with a millwork cornice with sheer roller blinds.	 	6	 	 	Each	 	 	$	900	 	 	$	5,400	 	 	 
	 	 	Corridors Total	 	 	 	 	 	 	 	 	 	 	 	$	5,400	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Guest Bathrooms	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	46	 	Provide glass shower doors at
    bathroom showers.	 	102	 	 	Each	 	 	$	-	 	 	$	-	 	 	Waiver from IHG
	47	 	Provide robe hooks where appropriate
    in bathroom layout.	 	0	 	 	Each	 	 	$	-	 	 	$	-	 	 	Already done.
	48	 	Provide art at bathrooms.	 	102	 	 	Each	 	 	$	150	 	 	$	15,300	 	 	Guest baths could use an art piece
    above toilet. No art in bathrooms currently.
	 	 	Guest Bathrooms Total	 	 	 	 	 	 	 	 	 	 	 	$	15,300	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUBTOTAL	 	 	 	 	 	 	 	 	 	 	$	422,400	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Design / Architect	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Purchasing	 	1	 	 	Allow	 	 	$	15,000	 	 	$	15,000	 	 	 
	 	 	Design	 	1	 	 	Allow	 	 	$	-	 	 	$	-	 	 	Do not need a designer.
	SUBTOTAL	 	 	 	 	 	 	 	 	 	 	$	437,400	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Soft Costs	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sales Tax	 	6.00%	 	$	437,400	 	 	 	 	 	 	$	15,746	 	 	 
	 	 	Delivery Fees	 	10.00%	 	$	437,400	 	 	 	 	 	 	$	26,244	 	 	 
	 	 	General Requirements Allowance	 	5.00%	 	$	437,400	 	 	 	 	 	 	$	21,870	 	 	 
	 	 	Overhead, General Conditions,
    Fees	 	 	 	 	 	 	 	 	 	 	 	$	-	 	 	 
	 	 	Subtotal	 	 	 	 	 	 	 	 	 	 	 	$	501,260	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Contingency	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	 	Page 4 of 5

     

    

 

Hotel
Indigo Traverse City, 263 W Grandview Parkway, Traverse City, Michigan 49684

 

PIP Inspection
- 02/19/18

PIP
Date - 03/01/18

Budget Date -
03/19/18

Last Revision
- 05/10/18 - BY EVAN

 

	PIP#	 	Item
    Description	 	Qty	 	UOM	 	 	Unit
    Price Sub	 	 	Total
    Project Cost	 	 	Comments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	Contingency Allowance	 	5.00%	 	$	501,260	 	 	 	 	 	 	$	25,063	 	 	
	 	 	 	 	 	 	 	 	 	 	 	     	 	 	 	 	 	 	 
	 	 	Total	 	 	 	 	 	 	 	 	 	 	 	$	526,323	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Project Management Fee	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Project Management Fee	 	6.00%	 	$	526,323	 	 	 	 	 	 	$	31,579	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total PIP Project Costs	 	 	 	 	 	 	 	 	 	 	 	$	557,903

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