Document:

Master Agreement October 3, 2006

    
      

      

    

    

       

      Exhibit
        10.1

       

       

      MASTER
        AGREEMENT

       

      Dated:
        October 3, 2006

      Table
        of Contents

      

      

      Page

      
        	
                ARTICLE
                  I

              	
                Definitions

              	
                2

              
	
                1.1

              	
                Definitions

              	
                2

              
	
                1.2

              	
                References

              	
                5

              
	
                1.3

              	
                Pronouns

              	
                5

              
	
                ARTICLE
                  II

              	
                Conversion

              	
                5

              
	
                2.1

              	
                Project
                  Management Agreements

              	
                5

              
	
                2.2

              	
                Conversion
                  of Affiliate Hotels

              	
                5

              
	
                2.3

              	
                Project
                  Assumptions

              	
                6

              
	
                2.4

              	
                Plans
                  and Specifications

              	
                7

              
	
                2.5

              	
                Opening
                  Date

              	
                7

              
	
                2.6

              	
                FF&E
                  and Capital Expenditures

              	
                8

              
	
                ARTICLE
                  III

              	
                Project
                  Management Services

              	
                8

              
	
                3.1

              	
                Project
                  Management Services

              	
                8

              
	
                3.2

              	
                Performance
                  of Services by Select

              	
                9

              
	
                3.3

              	
                Performance
                  of Services by Third Party Contractor

              	
                10

              
	
                3.4

              	
                Project
                  Management Fee

              	
                11

              
	
                3.5

              	
                Guaranty
                  of Performance by ENN TRS Holdings, Inc.

              	
                11

              
	
                3.6

              	
                Cooperation

              	
                12

              
	
                ARTICLE
                  IV

              	
                Additional
                  Agreements to Be Executed

              	
                13

              
	
                4.1

              	
                Existing
                  Management Agreement

              	
                13

              
	
                4.2

              	
                Affiliate
                  Franchise Agreement

              	
                13

              
	
                4.3

              	
                Affiliate
                  Management Agreement

              	
                13

              
	
                4.4

              	
                Termination
                  Agreement

              	
                13

              
	
                4.5

              	
                Lender
                  Approval

              	
                13

              
	
                4.6

              	
                Select
                  Guarantee Obligations

              	
                14

              
	
                ARTICLE
                  V

              	
                General

              	
                14

              
	
                5.1

              	
                Notices

              	
                14

              
	
                5.2

              	
                Indemnities

              	
                14

              
	
                5.3

              	
                Default

              	
                14

              
	
                5.4

              	
                Assignment
                  by ENN

              	
                16

              
	
                5.5

              	
                Assignment
                  by Select and Franchisor

              	
                18

              
	
                5.6

              	
                Termination

              	
                19

              
	
                5.7

              	
                Approvals

              	
                19

              
	
                5.8

              	
                Applicable
                  Law

              	
                20

              
	
                5.9

              	
                Third
                  Party Beneficiaries

              	
                20

              
	
                5.10

              	
                Counterparts

              	
                20

              
	
                5.11

              	
                Entire
                  Agreement

              	
                20

              
	
                5.12

              	
                Headings

              	
                20

              
	
                5.13

              	
                Duration

              	
                20

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      Schedule
        1 - Affiliate
        Hotels

      Schedule
        2  - Conversion
        Schedule

      Schedule
        3 - Scope
        of
        Work

       

      Annex
        A  - Form
        of
        Affiliate Franchise Agreement

      Annex
        B
 - Form
        of
        Affiliate Management Agreement

      Annex
        C
  - Form
        of
        Termination Agreement

      Annex
        D  - Form
        of
        Amendment to Existing Management Agreement

       

      

       

      
        
          
            i

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      MASTER
        AGREEMENT

       

      THIS
        MASTER AGREEMENT
        (this
“Agreement”)
        is
        made and entered into as of the 3rd day of October, 2006 by and among the
        parties set forth on the signature pages hereto.

      PRELIMINARY
        STATEMENT

       

      The
        parties set forth on the signature pages hereto under the heading “Owners”
(each, an “Owner” and collectively, the “Owners”) own the hotels set forth
        opposite their respective names as set forth on Schedule 1 hereto. Such hotels
        are leased by the Owners to the lessees as set forth on Schedule 1 hereto
        (“Lessees”). Each hotel is currently licensed as an AmeriSuites Hotel pursuant
        to a franchise agreement, as amended (the “Existing Franchise Agreement”),
        between its respective Lessee and AmeriSuites Franchising, Inc. (the “Original
        Franchisor”) and is managed by the existing manager of such hotel as set forth
        on Schedule 1 hereto (each, an “Existing Manager” and collectively, the
“Existing Managers”) pursuant to an Existing Management Agreement (as defined
        below) between the Lessee and the Existing Manager for such hotel. Upon
        completion of Conversion (as defined herein), the parties desire to convert
        the
        hotels to “Hyatt Place Hotels” pursuant to new Affiliate Franchise Agreements
        (as defined below) entered into with Franchisor (as defined below). At the
        Date
        of Conversion (as defined below) of each hotel, the Existing Management
        Agreement and the Existing Franchise Agreement will be terminated and the
        hotels
        will be operated as Hyatt Place Hotels pursuant to an Affiliate Franchise
        Agreement (as defined below) and managed by Select Hotels Group, L.L.C.
        (“Select”) pursuant to an Affiliate Management Agreement (as defined
        below).

      The
        parties desire to enter into this Agreement to set forth their respective
        rights
        and the obligations with respect to the Conversion and the other matters
        set
        forth herein.

      NOW,
        THEREFORE,
        the
        parties hereto do hereby agree as follows:

      ARTICLE
        I  

       

       

      Definitions

       

      1.1  Definitions.

      “Affiliate
        Hotels”
shall
        mean those AmeriSuites hotels described in Schedule 1 hereto, but shall not
        include any such hotels that are sold or transferred by their Owners prior
        to
        the Date of Conversion.

       

      “Affiliate
        Franchise Agreement”
shall
        mean, with respect to an Affiliate Hotel, a franchise agreement as amended,
        effective as of the Date of Conversion, entered into by and between Franchisor
        and the Lessee for each Affiliate Hotel, in the form attached hereto as Annex
        A.

       

      “Affiliate
        Management Agreement”
shall
        mean a hotel management agreement, effective as of the Date of Conversion,
        entered into by and between Select and the Lessee for each Affiliate Hotel,
        in
        the form attached hereto as Annex B.

       

      “Affiliates”
shall
        mean, with respect to any party, any other party that, directly or indirectly,
        controls, is controlled by, or is under common control with, the subject
        party.
        For purposes hereof, the term “control”
shall
        mean the possession, directly or indirectly, of the power to direct or cause
        the
        direction of the management and policies of such entity, either alone or
        in
        combination with any one or more parties. Parties who are Affiliates of each
        other are sometimes herein referred to as being “Affiliated”.

       

      “Commencement
        of Conversion”
shall
        occur upon the commencement of the work identified and set forth in the Scope
        of
        Work to effect the Conversion of an Affiliate Hotel.

       

      “Conversion
        Commencement Date”
shall
        mean, with respect to an Affiliate Hotel, the date on which the Commencement
        of
        Conversion shall occur, pursuant to the Conversion Schedule.

       

      “Conversion”
shall
        mean all construction, renovation, installation and work to be performed
        at an
        Affiliate Hotel, both in the guest rooms and in the public areas (as set
        forth
        with specificity in the Scope of Work and Project Budget) and the equipping
        of
        such Affiliate Hotel and purchase and stocking of all Operating Equipment
        (as
        defined in the Affiliate Management Agreement), operating supplies and inventory
        items meeting the Systems Standards as defined in the Affiliate Franchise
        Agreement.

       

      “Conversion
        Cost”
shall
        mean, with respect to each Affiliate Hotel, all amounts expended by ENN for
        the
        Conversion of the Affiliate Hotel, including without limitation, all rebranding,
        construction and related costs, all FFE, all Operating Equipment (as both
        terms
        are defined in the Affiliate Management Agreements), and related costs required
        to be capitalized under GAAP (as defined in the Affiliate Management
        Agreements), all operating systems and the cost associated with the personnel
        hired for the installation of the same, all fees and reimbursements to be
        expended by ENN under the Project Management Agreement, including fees and
        expenses of contractors and vendors (including without limitation, amounts
        to be
        paid or reimbursed to a Third Party Contractor) and any fees or reimbursements
        charged by Select or its Affiliates in connection with the Conversion. The
        Conversion Cost with respect to an Affiliate Hotel shall be subject to the
        Project Budget for such Affiliate Hotel (subject to any changes and
        modifications approved in accordance with this Agreement).

       

      “Conversion
        Schedule”
shall
        mean, with respect to each Affiliate Hotel, the schedule attached hereto
        as
        Schedule 2 and incorporated herein by this reference, which illustrates the
        schedule of various stages of the Conversion with respect to such Affiliate
        Hotel.

       

      “Date
        of Conversion”
shall
        mean, with respect to an Affiliate Hotel, the date on which the Affiliate
        Hotel
        commences operation as a Hyatt Place Hotel pursuant to the terms of the
        Affiliate Franchise Agreement for such Affiliate Hotel.

       

      “ENN”
shall
        mean collectively the Owners and the Lessees of the Affiliate Hotels,
        collectively, or the Owner or Lessee of a specific Affiliate Hotel, as the
        context requires.

       

      “Existing
        Franchise Agreement”
shall
        have the meaning set forth in the preliminary statement to this
        Agreement.

       

      “Existing
        Guarantee Termination Date”
shall
        mean, with respect to an Affiliate Hotel, the date set forth on Schedule
        1
        hereto, subject to the provisions of the Existing Management Agreement with
        respect to the occurrence of the 150 day extension or Date of Conversion,
        if
        applicable.

       

      “Existing
        Management Agreement”
shall
        mean, with respect to each Affiliate Hotel, the management agreement pursuant
        to
        which such Affiliate Hotel is currently being managed, as such agreement
        may be
        amended from time to time.

       

      “Existing
        Manager”
shall
        have the meaning set forth in the preliminary statement to this
        Agreement.

       

      “Franchisor”
shall
        mean Hyatt Place Franchising, L.L.C.

       

      “Hyatt
        Conversion”
shall
        have the meaning set forth in Section 2.2 hereof.

       

      “Hyatt
        Place Hotels”
shall
        have the meaning ascribed to such term in the Affiliate Management
        Agreements.

       

      “Lessee”
        or “Lessees”
shall
        have the meaning set forth in the preliminary statement to this
        Agreement.

       

      “Original
        Franchisor”
shall
        have the meaning set forth in the preliminary statement to this
        Agreement.

       

      “Owner”
        or “Owners”
shall
        have the meaning set forth in the preliminary statement to this
        Agreement.

       

      “Ownership
        Interest”
shall
        mean an equity interest in Owner.

       

      “Person”
means
        an individual, corporation, partnership, limited liability company, association,
        trust or other entity or organization, including a government or political
        subdivision or an agency or instrumentality thereof.

       

      “Plans”
shall
        mean, with respect to each Affiliate Hotel, the final construction and
        modification plans and specifications prepared for such Affiliate Hotel,
        consistent with the Scope of Work for such Affiliate Hotel.

       

      “Pre-Existing
        Condition”
shall
        have the meaning set forth in Section
        2.2.

       

      “Pre-Opening
        Period”
shall
        mean, with respect to each Affiliate Hotel, the period from the Conversion
        Commencement Date to the day immediately preceding the Date of
        Conversion.

       

      “Project
        Budget”
shall
        mean, with respect to an Affiliate Hotel, the budgeted (itemized and on a
        per
        room basis) amount for the Conversion Cost for such Affiliate Hotel, which
        amount shall not exceed the product of $25,000 multiplied by the number of
        guest
        rooms at an Affiliate Hotel; provided, however, that the Project Budget for
        the
        Affiliate Hotel located in Las Vegas, Nevada shall be agreed upon separately
        by
        the parties and may exceed $25,000.

       

      “Project
        Manager”
shall
        mean, with respect to each Affiliate Hotel, Select, or a project manager
        who has
        been designated by Select (which may be a Third Party Contractor), and
        reasonably approved by ENN, to manage the Conversion with respect to such
        Affiliate Hotel and whose duties and obligations shall be more specifically
        set
        forth in the Project Management Agreement.

       

      “Project
        Management Agreement”
shall
        mean, with respect to each Affiliate Hotel, an agreement to be negotiated
        in
        good faith and entered into between (i) Select and the Lessee of such Affiliate
        Hotel or (ii) a Third Party Contractor and the Lessee of such Affiliate Hotel
        with respect to the Conversion of such Affiliate Hotel, consistent with the
        terms of this Agreement.

       

      “Project
        Management Services”
shall
        mean, with respect to each Affiliate Hotel, the services to be provided pursuant
        to the Project Management Agreement consistent with Section
        3.1.

       

      “Project
        Management Fee”
shall
        mean the fee payable pursuant to the Project Management Agreement.

       

      “Scope
        of Work”
shall
        mean, with respect to an Affiliate Hotel, the scope of work, modifications,
        alterations and installations to be performed at such Affiliate Hotel, strictly
        and exclusively in connection with the Conversion, as set forth in Schedule
        3
        hereto.

       

      “Termination
        Agreement”
shall
        mean the agreement with respect to each Affiliate Hotel terminating the Existing
        Franchise Agreement and the Existing Management Agreement in the form attached
        hereto as Annex C.

       

      “Third
        Party Contractor”
shall
        mean a third party contractor (not an Affiliate of Select) that is recommended
        by Select as a contractor and retained by ENN to perform the functions of
        Project Manager in accordance with the Project Management Agreement for an
        Affiliate Hotel.

       

      1.2  References.
        All
        references in this Agreement to particular sections or articles shall, unless
        expressly otherwise provided or unless the context otherwise requires, be
        deemed
        to refer to the specific sections or articles in this Agreement. In addition,
        the words “hereof”, “herein”, “hereunder” and words of similar import refer to
        this Agreement as a whole and not to any particular section or
        article.

      1.3  Pronouns.
        All
        pronouns and variations thereof used herein shall, regardless of the pronoun
        actually used, be deemed to refer to the masculine, feminine, neuter, singular
        or plural as the identity of the person, persons or entity may, in the context
        in which such pronoun is used, require.

      ARTICLE
        II  

       

       

      Conversion

       

      2.1  Project
        Management Agreements.
        ENN and
        Select agree to negotiate in good faith toward execution of mutually acceptable
        Project Management Agreements setting forth with specificity their respective
        duties and obligations with respect to Project Management Services for the
        Affiliate Hotels (or, pursuant to Section
        3.3
        of this
        Agreement, in the case of a Third Party Contractor, Select shall use its
        best
        efforts to select (subject to approval by ENN) Third Party Contractors to
        provide Project Management Services for the Affiliate Hotels).

      2.2  Conversion
        of Affiliate Hotels.
        Select
        and ENN agree to undertake Conversion of the Affiliate Hotels in accordance
        with
        the applicable Scope of Work, the Conversion Schedule and the terms of this
        Agreement. ENN agrees to fund the full cost of Conversion, subject to the
        Project Budget. Any expenses in excess of the Project Budget or any material
        changes to the Scope of Work shall be subject to approval of ENN in its sole
        discretion and in accordance with the terms and conditions of the Project
        Management Agreement. Notwithstanding the foregoing, the parties agree that
        ENN
        will be under no obligation to commence Conversion of any Affiliate Hotel
        on any
        Conversion Commencement Date or continue any Conversion that is commenced
        unless
        and until Select or its Affiliates have substantially converted and/or opened
        at
        least thirty (30) Hyatt Place Hotels owned by Select or its Affiliates (such
        event being herein referred to as the “Hyatt
        Conversion”).
        In
        the event the Hyatt Conversion has not occurred by June 30, 2007, the parties’
obligations hereunder with respect to Conversion shall terminate.

      2.3  Project
        Assumptions.
        The
        parties hereby acknowledge and agree that the Conversion Schedule, the Scope
        of
        Work and the Project Budget have been prepared by Select and its Affiliates,
        using certain assumptions, and are only an estimate of the time, cost and
        the
        actual work required based on what is known at the time they were prepared.
        Such
        assumptions assume that the Affiliate Hotels are ready for Conversion as
        of the
        Conversion Commencement Date for such Affiliate Hotel without the need or
        requirement for any material corrective measures, repair or replacements
        and
        further assume that each Affiliate Hotel and its Building Systems (as defined
        in
        the Affiliate Management Agreement), including, without limitation, its pipes,
        wires, fixtures and equipment, and structural elements, are in good working
        order and condition, ordinary wear and tear excepted.

      ENN
        acknowledges that the Conversion Schedule, the Scope of Work and the Project
        Budget contemplate the time, funds, materials and work necessary and required
        for the work specifically, directly and exclusively related to the Conversion
        only and do not take into account any other material work, repair, or materials
        needed as a result of the condition (such as removal of mold, leaking pipes,
        water infiltration, or similar occurrences) of an Affiliate Hotel at the
        Conversion Commencement Date (“Pre-Existing
        Condition”),
        which
        may not be uncovered until the Commencement of Conversion. In the event a
        Pre-Existing Condition is uncovered after the date hereof, ENN and Select
        will
        use their reasonable good faith efforts to update the applicable Conversion
        Schedule, the Scope of Work and the Project Budget to take into account any
        increase in cost or expenses and any delay expected to be caused by such
        Pre-Existing Condition or by any Force Majeure event (as defined in the
        Affiliate Management Agreement), any of which shall be subject to reasonable
        approval by ENN. In the event of any delay in Conversion directly caused
        by a
        Pre-Existing Condition or Force Majeure Event, such delay shall not be the
        fault
        or liability of Select. Costs associated with Pre-Existing Conditions shall
        not
        be included in calculations for Project Costs, as that term is defined in
        the
        Affiliate Management Agreements; provided, however, the parties agree to
        work
        together in good faith to resolve any disputes or issues that arise with
        respect
        to increased Project Costs as a direct result of the discovery of Pre-Existing
        Conditions during Conversion.

      2.4  Plans
        and Specifications.
        Pursuant to the specific terms of the Project Management Agreements, Select
        (or
        its Affiliate) shall hire an architect to prepare Plans for each Affiliate
        Hotel, consistent with the Scope of Work for such Affiliate Hotel. Such
        architect shall be reasonably satisfactory to and be approved by ENN and
        the
        Plans shall be subject to the review, comment and approval of ENN in accordance
        with the terms and conditions of the Project Management Agreement.

      2.5  Opening
        Date.
        The
        parties hereby acknowledge that no Affiliate Hotel shall operate as a Hyatt
        Place Hotel until all construction, furnishing and equipping thereof have
        been
        completed and all requirements set forth in the applicable Affiliate Franchise
        Agreement have been met. The parties hereby agree, acknowledge and understand
        that until such time as an Affiliate Hotel has completed Conversion and meets
        the requirements under the applicable Affiliate Franchise Agreement, it shall
        continue to operate as an AmeriSuites Hotel under its Existing Franchise
        Agreement and the Existing Management Agreement, as they may be amended from
        time to time by the parties thereto.

      2.6  FF&E
        and Capital Expenditures.
        Notwithstanding anything to the contrary in the Existing Management Agreements
        or the Existing Franchise Agreements, prior to the Date of Conversion, ENN
        shall
        have no obligation to escrow or fund or otherwise undertake capital improvements
        or expenditures for furniture, fixtures and equipment at an Affiliate Hotel,
        other than in connection with Conversion in accordance with the terms hereof
        or
        necessary to maintain the Affiliate Hotel in proper working order.

      ARTICLE
        III  

       

       

      Project
        Management Services

       

      3.1  Project
        Management Services.
        The
        parties agree that Select’s duties and responsibilities under the Project
        Management Agreement for each Affiliate Hotel during the Pre-Opening Period
        shall include, without limitation, and consistent with the Scope of Work
        and
        Conversion Schedule for such Affiliate Hotel, the following:

      (a)  selection,
        with the approval of ENN, of architects, designers, contractors and other
        specialists, and, upon the request of ENN, providing advice and assistance
        in
        connection with the negotiation of contracts or agreements with any of said
        parties.

      (b)  interior
        design and the functional layout of guest rooms and public areas.

      (c)  interior
        and exterior lighting schemes.

      (d)  electrical,
        mechanical, plumbing, HVAC and other Building Systems.

      (e)  guest
        safety systems, including appropriate fire and other safety systems, room
        key
        systems and door hardware, public address systems and the like.

      (f)  guest
        amenities to be included in the Affiliate Hotels including in-room entertainment
        systems; guest laundry and valet services; guest information systems; check-in
        and check-out systems and procedures; reservation systems, procedures and
        equipment; computerized management systems; credit card checking systems;
        and
        the like, and recommendation of appropriate vendors for the same.

      (g)  design
        standards and criteria, and review and comment on layouts and design for
        kitchen
        and laundry rooms, and other support functions within the Affiliate
        Hotels.

      (h)  preparation
        of bid packages and review and comment on cost projections and budgets; review
        of bid packages and bid submissions to ensure that they are in line with
        the
        line items in the Project Budget.

      (i)  additional
        assistance regarding any additional matters required pursuant to the Project
        Management Agreement.

      3.2  Performance
        of Services by Select.
        In
        performing the foregoing services, Select shall not be liable for any errors
        or
        omissions in the Plans or designs for any Affiliate Hotel, or for any
        misfeasance or malfeasance by any specialists or consultant retained on behalf
        of ENN, whether or not upon the recommendation of Select, or for any defects
        in
        construction, alteration and installation, or for any operational deficiencies
        in the design or construction of any of the Affiliate Hotels (including,
        without
        limitation, life safety systems, building codes or accessibility laws), or
        any
        failure of any such plans (including the Plans) or specifications to conform
        to
        applicable law, it being the intention of the parties that in rendering the
        Project Management Services, Select shall be functioning solely as a consultant
        sharing with ENN the benefit of its prior experience in the management and
        operation of hotels and its knowledge of guest preferences and market demands.
        No approvals by Select or its Affiliates of any plans (including the Plans),
        specifications, drawings, budgets, financing, contractors or specialists
        shall
        constitute an opinion by Select or its Affiliates as to the legal, functional,
        structural, mechanical or professional adequacy or competence thereof (as
        to
        plans, specifications, drawings, contractors or specialists or the adequacy
        of
        budgets or financing), and ENN acknowledges that Select and its Affiliates
        have
        not held themselves out as expert as to any of the foregoing matters.
        Conversely, Select shall have no authority hereunder to approve, alter or
        revise
        any Plans for the Affiliate Hotels or to approve, alter or modify any proposed
        Building System or guest systems without first submitting the same for review
        and approval by ENN. ENN shall (subject to compliance with the provisions
        of
Section
        2.2
        above)
        have the right to accept, reject or modify any suggestions or proposals made
        by
        Select (so long as such any such rejection or modification will not result
        in
        any violation under the requirements under the Affiliate Franchise Agreement).
        For purposes of ease of administering the Conversion process and ensuring
        clear
        communication, each of ENN and Select hereby agrees to designate a
        representative for each Affiliate Hotel, who will coordinate Conversion matters,
        all as may be set forth in the Project Management Agreement.

      3.3  Performance
        of Services by Third Party Contractor.
        Notwithstanding the foregoing, to ensure that the Conversion Schedule for
        the
        Affiliate Hotels is met, Select may in its discretion retain the services
        of a
        Third Party Contractor(s) for certain Affiliate Hotels, subject to ENN’s
        reasonable prior approval. In such event, such Third Party Contractor shall
        enter into a Project Management Agreement with Select, pursuant to which
        such
        Third Party Contractor shall be responsible for providing the Project Management
        Services as Project Manager and shall assume all the obligations of Select
        with
        respect to such services as set forth herein. Select or its Affiliate shall
        manage and coordinate the performance of the Project Manager, and the Project
        Management Fee to be paid to Select or its Affiliate shall reflect the
        coordination activities to be undertaken by Select or its
        Affiliate.

      3.4  Project
        Management Fee.
        For its
        Project Management Services to ENN in accordance with the provisions hereof,
        Select shall be entitled to a reasonable “Project
        Management Fee”
for
        each Affiliate Hotel to be agreed upon by the parties and as set forth in
        the
        applicable Project Management Agreement, payable pursuant to the terms thereof.
        In addition to the Project Management Fee, Select shall be entitled to
        reimbursement for its reasonable out-of-pocket costs incurred in connection
        herewith, which costs shall include travel costs and expenses of its personnel
        to the extent travel shall be required for the performance of its duties
        hereunder. Select agrees that it will make appropriate personnel available
        for
        the rendition of the foregoing services as, where and when necessary, subject
        to
        reasonable scheduling requirements (consistent with the Conversion Schedule
        for
        the Applicable Affiliate Hotel), including the availability of such persons
        at
        the site or at such other locations as shall be reasonably necessary. ENN
        hereby
        acknowledges that the Project Management Fee shall be in addition to any
        other
        fees charged by any Third Party Contractor or any contractor or consultant
        Select or its Affiliates retains on behalf of ENN, which fees shall be paid
        by
        ENN in accordance with the Project Management Agreement.

      3.5  Guaranty
        of Performance by ENN TRS Holdings, Inc.
        ENN TRS
        Holdings, Inc. (“TRS Holdings”) hereby represents and warrants that its
        Affiliates own the Affiliated Hotels. TRS Holdings acknowledges and agrees
        that
        Select and Franchisor agreed to certain concessions and incentives in the
        respective Affiliate Management Agreements and Affiliate Franchise Agreements,
        in return for TRS Holdings’ willingness to cause all Affiliate Hotels to undergo
        Conversion as contemplated in this Agreement. In consideration for the
        concession and incentives of Select and Franchior, subject to the terms of
        this
        Agreement, TRS Holdings hereby agrees as follows:

      (a)  TRS
        Holdings shall cause its Affiliates to cooperate and collaborate with Select
        and
        Franchisor in the formation and any subsequent modification approved by ENN
        of
        the Project Budget for each Conversion, as more specifically set forth in
        the
        Project Management Agreement.

      (b)  TRS
        Holdings shall provide or ensure that adequate funding is made available
        to each
        Affiliate (which leases an Affiliate Hotel) to timely commence and complete
        each
        Conversion pursuant to the applicable Conversion Schedule.

      (c)  TRS
        Holdings hereby guarantees the performance of the Conversion as set forth
        in
        Section 3.5(b) above, and cause such Conversions to occur, if any of its
        Affiliates is unable to effect the performance thereof.

      3.6  Cooperation.

      (a)  The
        parties shall cooperate and collaborate in the formation and any subsequent
        modification approved by ENN of the Project Budget for each Conversion, as
        more
        specifically set forth in the Project Management Agreement and
        herein.

      (b)  Subject
        to the terms of this Agreement, the Project Budget, the Scope of Work and
        the
        Project Management Agreement, ENN shall provide or ensure that adequate funding
        is made available to timely commence and complete each Conversion pursuant
        to
        the Conversion Schedule.

      ARTICLE
        IV  

       

       

      Additional
        Agreements to Be Executed

       

      4.1  Existing
        Management Agreement.
        Effective upon receipt of approval of ENN’s lenders, each Existing Manager and
        each Lessee hereby agree to execute and deliver the Second Amendment to the
        Existing Management Agreement in the form attached hereto as Annex
        D
        (the
“Existing
        Management Agreement Amendment”).

      4.2  Affiliate
        Franchise Agreement.
        Effective upon the Date of Conversion for such Affiliate Hotel, the Franchisor
        and the Lessee for each Affiliate Hotel hereby agree to execute and deliver
        the
        Affiliate Franchise Agreement.

      4.3  Affiliate
        Management Agreement.
        Effective upon the Date of Converstion for such Affiliate Hotel, Select and
        the
        Lessee for each Affiliate Hotel hereby agree to execute and deliver the
        Affiliate Management Agreement for the Affiliate Hotel.

      4.4  Termination
        Agreement.
        Effective upon the Date of Conversion for such Affiliate Hotel, each Lessee,
        the
        Original Franchisor and the Existing Manager hereby agree to execute and
        deliver
        the Termination Agreement simultaneously with the effectiveness of the Affiliate
        Franchise Agreement and the Affiliate Management Agreement.

      4.5  Lender
        Approval.
        The
        parties acknowledge and agree that the form of the Existing Franchise Agreement
        Amendment, the Existing Management Agreement Amendment, the Affiliate Franchise
        Agreement, the Affiliate Management Agreement and the Termination Agreement
        (collectively, the “Agreements”) and the execution and delivery thereof are
        subject to the review and approval of ENN’s lenders and the parties hereto agree
        to negotiate in good faith any revisions or modifications to the Agreements
        proposed or required by such lender. Each of the parties hereto agree to
        use
        commercially reasonable efforts and to assist and cooperate with the other
        parties to obtain lender approval of the Agreements.

      4.6  Select
        Guarantee Obligations.
        Each
        Existing Management Agreement provides for certain payment obligations by
        the
        Existing Manager to the applicable Lessee through the Existing Guarantee
        Termination Date. Select hereby irrevocably and unconditionally guarantees
        all
        obligations of each Existing Manager under each Existing Management Agreement,
        as it may be amended from time to time, arising under any Existing Management
        Agreement prior to its Existing Guarantee Termination Date. Until the date
        of
        the last Existing Guarantee Termination Date, Select agrees and covenants
        that
        its net worth will not fall below $200,000,000.

      ARTICLE
        V  

       

       

      General

       

      5.1  Notices.
        All
        notices required or permitted hereunder shall be in writing and shall be
        deemed
        duly delivered if delivered in accordance with the provisions of Article
        XIV
        of the
        Affiliate Management Agreement.

      5.2  Indemnities.
        The
        provisions of Article
        VII
        of the
        Affiliate Management Agreements are hereby, by this reference, incorporated
        in
        this Agreement and made a part hereof and shall be deemed fully applicable
        throughout the Pre-Opening Period to any acts or omissions of the parties
        with
        respect to any of the matters herein contemplated during the Pre-Opening
        Period,
        with ENN being substituted for “Owner” therein.

      5.3  Default.
        The
        following shall constitute an event of default by a party hereto:

      (a)  If
        any
        party fails to perform, keep or fulfill any of the material covenants,
        undertakings, obligations or conditions set forth in this Agreement, and
        the
        continuance of any such failure for a period of thirty (30) calendar days
        after notice of said failure; or

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

      Upon
        an
        event of default, Select, with respect to an event of default by ENN, and
        any
        Owner or Lessee, with respect to an event of default by Select, the Existing
        Managers, the Original Franchisor or the Franchisor, may give written notice
        of
        intention to terminate this Agreement after the expiration of a period of
        fifteen (15) calendar days from the date of such notice, and upon the
        expiration of such period, this Agreement shall terminate. If, however, upon
        receipt of such notice, the defaulting party shall promptly cure the default,
        then such notice shall be of no force and effect or, when such default is
        not
        susceptible of being cured within fifteen (15) calendar days, if the
        defaulting party shall, in good faith, take action to cure such default with
        all
        due diligence, then the effective date of the termination notice shall be
        extended for such reasonable time as shall be required for the defaulting
        party
        to cure such default. In no event shall additional time to cure apply in
        cases
        where the event of default in question may be cured on a timely basis by
        the
        payment of money in the amount due.

      The
        rights granted hereunder shall not be in substitution for, but shall be in
        addition to any and all rights and remedies for breach of contract granted
        by
        applicable provisions of law. Notwithstanding the foregoing, no party shall
        be
        deemed to be in default under this Agreement if a bona fide dispute with
        respect
        to one of the foregoing events of default has arisen and such dispute has
        been
        submitted to arbitration.

      Except
        as
        otherwise provided in this Agreement, should a party hereto be delayed in
        or
        prevented, in whole or in part, from performing any obligation or condition
        hereunder with the exception of the payment of money, or from exercising
        its
        rights by reason or as a result of any Force Majeure event (as defined in
        the
        Affiliate Management Agreement) such party shall be excused from performing
        such
        obligations or conditions for a period of time equivalent to the period of
        delay
        caused by the Force Majeure event and for thirty (30) days
        thereafter.

      5.4  Assignment
        by ENN.
        In
        addition to any permitted collateral assignments to Lenders, Owner, Lessee
        and
        ENN TRS Holdings, Inc. shall have the right to assign its entire rights and
        interests in this Agreement without the prior written consent of the Original
        Franchisor, the Franchisor, any Existing Manager or Select (collectively,
        the
“Hyatt Parties”) to (i) any Person Affiliated with Owner and (ii) any Person in
        connection with a sale or transfer of such Affiliate Hotel (including, without
        limitation, any lease of such Affiliate Hotel in its entirety), so long as
        and
        unless otherwise agreed to by the Hyatt Parties, all conditions set forth
        in
        this Section
        5.4
        shall
        have been met and satisfied and such assignee shall have applied for and
        qualified for the assumption of the Affiliate Franchise Agreement or entered
        into a then current Hyatt Place franchise agreement for the duration of the
        Term
        (as defined in the Affiliate Management Agreement), prior to the effective
        date
        of any such assignment. Unless otherwise agreed to by the Hyatt Parties,
        Owner
        shall not sell, assign or transfer any Affiliate Hotel, or any interest therein
        or issue or permit the transfer of any Ownership Interest to any Person (i)
        engaged, directly or indirectly, as a substantial part of its business, in
        franchise licensing of hotels and not Affiliated with Owner; (ii) who fails
        or
        refuses to assume Owner’s responsibilities under this Agreement; or (iii) who
        would otherwise not qualify as a franchisee under the terms of the Affiliate
        Franchise Agreement or (iv) who does not wish to apply for and enter into
        a then
        current Hyatt Place franchise agreement for the Affiliate Hotel. Upon any
        assignment hereof in connection with a sale or other transfer of such Affiliate
        Hotel, Owner shall be relieved of its duties, obligations and liabilities
        hereunder arising after such assignment so long as all conditions set forth
        in
        this Section
        5.4
        have
        been met and the assignee thereof expressly assumes in writing all such duties,
        obligations and liabilities (including, without limitation, those arising
        or
        relating to events occurring prior to any such assignment) and shall agree
        to be
        bound by this Agreement as evidenced by a written instrument executed by
        such
        assignee in favor of the Hyatt Parties in form and substance reasonably
        satisfactory to the Hyatt Parties. If Owner desires to effect an assignment
        of a
        majority of its Ownership Interest, Owner shall give the Hyatt Parties not
        less
        than forty-five (45) days advance notice of its intention to do so, which
        notice
        shall identify in reasonable detail the direct and indirect owners of the
        proposed purchaser. In the event that the sale or transfer contemplated in
        this
Section
        5.4
        is to a
        Person not Affiliated with Owner or involves the transfer of a majority
        Ownership Interest in Owner, then the assignment of this Agreement shall
        specifically exclude (i) Select’s obligation to reduce its fees if a Deficiency
        occurs or refund Owner’s Priority as set forth in Section
        5.1,
        (ii)
Section
        2.5
        and
        (iii) Section
        2.7
        of the
        Affiliate Management Agreement. Notwithstanding the foregoing, if (i) Owner
        transfers 50% or more of the Ownership Interest to a Person Affiliated with
        Owner, (ii) ENN transfers fifty percent (50%) or more of the Affiliate Hotels
        (in a single transaction or series of related transactions with the same
        buyer
        or Persons Affiliated With that buyer, and provided such buyer agrees to
        operate
        such Affiliate Hotels as Hyatt Place Hotels) or (iii) there is a transaction
        or
        event which constitutes a “change in control” of Equity Inns, Inc., then the
        applicable Affiliate Management Agreements and Affiliate Franchise Agreements
        shall be assignable without any modifications or exclusions, so long as the
        transferees comply with the provisions of this Section
        5.4.

      5.5  Assignment
        by Select and Franchisor.

      (a)  Except
        as
        herein provided, Select and Franchisor shall not sell, assign, hypothecate,
        transfer or otherwise dispose of, in whole or in part, any of its rights
        or
        interests hereunder. Notwithstanding the foregoing, Select and Franchisor
        may
        transfer or assign their rights under this Agreement in whole, but not in
        part,
        to any Affiliate of Select, whether as a result of merger, reorganization,
        acquisition, “change of control”, public offering or or similar transaction
        subject, in each such case, to each of the following terms and
        conditions:

      (i)  The
        transferee shall, no later than the effective date of the transfer, be an
        Affiliate of Hyatt Corporation;

      (ii)  The
        transferee shall have the full right, power and authority to enter into this
        Agreement and to fulfill the obligations of Select and Franchisor
        hereunder;

      (iii)  Not
        later
        than the effective date of any such transfer, the transferee shall have
        available to it the entire operating system of Select and Franchisor for
        the use
        and benefit of the transferee and the management and operation of the Affiliate
        Hotels as part of Hyatt Place Hotels, including, without limitation, the
        benefit
        of services that are designed to approximate the Shared Services available
        to
        the Hotel prior to any such transfer; and

      (iv)  The
        transferee shall have executed a written instrument in form and substance
        reasonably satisfactory to Owner, a certified copy of which shall be delivered
        to Owner not later than twenty (20) days following the effective date of
        any
        such transfer, expressly assuming and agreeing to pay, perform and discharge
        all
        of the liabilities and obligations of Select or Franchisor hereunder, including,
        without limitation, any such liabilities or obligations arising or accruing
        prior to, on or after the effective date of any such transfer.

      (b)  Upon
        satisfaction and discharge of all conditions set forth herein, Select and
        Franchisor shall be relieved of any liability or obligation hereunder arising
        after the date of such assignment.

      5.6  Termination.
        Except
        as otherwise provided in Section
        5.4 and 5.5, upon
        any
        other assignment or transfer by a party hereto of its rights or interests
        in
        this Agreement, the non-transferring party shall have the option, exercisable
        within 60 days from the receipt by the nontransferring party of notice of
        such
        transfer or assignment, to terminate this Agreement without liability or
        payment
        to the transferring party.

      5.7  Approvals.
        If any
        party hereto shall desire the approval of any other party as to any matter,
        such
        party may give written notice to such other party that it requests such
        approval, specifying in such notice the matter as to which such approval
        is
        requested and reasonable detail respecting such matter. All approvals shall
        be
        in writing. If such other party shall not give its approval in writing in
        response to such notice within thirty (30) days after receipt thereof or
        any
        other period as prescribed in the request for approval, such other party
        shall
        be deemed not to have approved the matter referred to in such
        notice.

      5.8  Applicable
        Law.
        This
        Agreement shall be governed in all respects by the laws of
        Illinois.

      5.9  Third
        Party Beneficiaries.
        None of
        the obligations hereunder of any party shall run to or be enforceable by
        any
        party other than the parties to this Agreement or their respective successors
        and assigns in accordance with the provisions of this Agreement.

      5.10  Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        an original and all of which when taken together shall constitute a single
        instrument.

      5.11  Entire
        Agreement.
        This
        Agreement, and the schedules, exhibits and annexes hereto, constitute the
        entire
        understanding and agreement of the parties hereto with respect to the subject
        matter hereof and supersede all prior understandings and writings between
        the
        parties.

      5.12  Headings.
        The
        Article and Section headings contained herein are for convenience of reference
        only and are not intended to define, limit or describe the scope or intent
        of
        any provision of this Agreement.

      5.13  Duration.
        This
        Agreement shall continue in full force and effect from the date hereof and
        until
        the Full Conversion Date (as defined in the Affiliate Management
        Agreements).

      [Signature
        page follows.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      
        	
                ENN
                  TRS HOLDINGS, INC.

                 

                By:
                  /s/
                  J. Mitchell Collins_______________

                Name:_J.
                  Mitchell Collins______________

                Title:_Executive
                  Vice President__________

              	
                SELECT
                  HOTELS GROUP, L.L.C.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:_Steven
                  Goldman_________________ 

                Title:__Executive
                  Vice President__________

              
	
                 

                 

                OWNERS

                 

                EQI
                  FINANCING PARTNERSHIP II, LP

                 

                By:
                  EQI Financing Corporation II,

                its
                  general partner

                 

                By:
                  /s/
                  J. Mitchell Collins_______________

                 

                Name:_J.
                  Mitchell Collins______________

                 

                Title:_Executive
                  Vice President__________
                  

                 

              	
                 

                 

                LESSEES

                 

                ENN
                  LEASING COMPANY, INC.

                 

                By:
                  /s/
                  J. Mitchell Collins_______________

                Name:_J.
                  Mitchell Collins______________

                Title:_Executive
                  Vice President__________

              
	
                EQI
                  FINANCING PARTNERSHIP V, LP

                 

                By:
                  EQI Financing Corporation V,

                its
                  general partner

                 

                By:
                  /s/
                  J. Mitchell Collins______________

                Name:_J.
                  Mitchell Collins______________

                Title:_Executive
                  Vice President_________
                  

              	
                 

                ENN
                  LEASING COMPANY II, L.L.C.

                 

                By:
                  /s/
                  J. Mitchell Collins_______________

                Name:_J.
                  Mitchell Collins______________

                Title:_Executive
                  Vice President__________

              
	
                EQUITY
                  INNS PARTNERSHIP, LP

                 

                By:
                  Equity Inns Trust,

                its
                  general partner

                 

                By:
                  /s/
                  J. Mitchell Collins______________

                Name:_J.
                  Mitchell Collins______________

                Title:_Executive
                  Vice President_________
                  

              	
                 

                ENN
                  LEASING COMPANY V, L.L.C.

                 

                 

                By:
                  /s/
                  J. Mitchell Collins_______________

                 

                 

                Name:_J.
                  Mitchell Collins______________

                 

                 

                Title:_Executive
                  Vice President__________

                 

              
	 	 

      

      

      [Signature
        page to Master Agreement]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 
	
                EXISTING
                  MANAGERS

                 

                 

                ORADELL
                  HOLDING, L.L.C.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:__Steven
                  Goldman________________

                Title:_Executive
                  Vice President___________

              	
                FRANCHISOR

                 

                 

                HYATT
                  PLACE FRANCHISING, L.L.C.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:__Steven
                  Goldman________________

                Title:_Executive
                  Vice President___________

              
	 	 
	
                CALDWELL
                  HOLDING, L.L.C.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:__Steven
                  Goldman________________

                Title:_Executive
                  Vice President___________

              	
                ORIGINAL
                  FRANCHISOR

                 

                AMERISUITES
                  FRANCHISING, INC.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:__Steven
                  Goldman________________

                Title:_Executive
                  Vice President___________

              
	 	 
	
                WAYNE
                  HOLDING, L.L.C.

                 

                By:_/s/
                  Steven Goldman_________________

                Name:__Steven
                  Goldman________________

                Title:_Executive
                  Vice President___________

              	 

      

      

      [Signature
        page to Master Agreement]

       

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        1

      AFFILIATE
        HOTELS

      

      
        	 	
                Hotel

              	
                Owner

              	
                Lessee

              	
                Existing
                  Manager

              	
                Existing
                  Guarantee Termination Date

              
	
                BC

                 

              	
                AmeriSuites

                (Birmingham/Riverchase)

                2980
                  John Hawkins Parkway

                Hoover,
                  AL 35244

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

                 

              	
                Oradell
                  Holding, L.L.C.

                 

              	
                June
                  30, 2008

              
	
                FF

              	
                AmeriSuites

                (Flagstaff/Interstate
                  Crossroads)

                2455
                  S. Beulah Road

                Flagstaff,
                  AZ 86001

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                M

                M

              	
                AmeriSuites

                (Miami/Kendall)

                11520
                  SW 88th Street

                Miami,
                  FL 33176

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                M

                P

              	
                AmeriSuites

                (Miami/Airport
                  West)

                3655
                  NW 82nd Avenue

                Miami,
                  FL 33166

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                TA

              	
                AmeriSuites

                (Tampa
                  Airport/Westshore)

                4811
                  West Main Street

                Tampa,
                  FL 33607-4501

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                IA

              	
                AmeriSuites

                (Indianapolis/Keystone)

                9104
                  Keystone Crossing

                Indianapolis,
                  IN 46240

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                OP

              	
                AmeriSuites

                (Overland
                  Park/Metcalf)

                6801
                  West 112th Street

                Overland
                  Park, KS 66211

              	
                EQI
                  Financing Partnership II, LP

                 

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                BR

              	
                AmeriSuites

                (Baton
                  Rouge/East)

                6080
                  Bluebonnet Boulevard

                Baton
                  Rouge, LA 70809

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                B

                M

              	
                AmeriSuites

                (Baltimore/BWI
                  Airport)

                940
                  International Drive

                Linthicum
                  Heights, MD 21090

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                July
                  1, 2008

              
	
                M

                L

              	
                AmeriSuites

                (Minneapolis/Mall
                  of America)

                7800
                  International Drive

                Bloomington,
                  MN 55425-1508

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                LG

              	
                AmeriSuites

                (Las
                  Vegas/Paradise Road)

                4520
                  Paradise Road

                Las
                  Vegas, NV 89109-7111

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                A

                Q

              	
                AmeriSuites

                (Albuquerque/Uptown)

                6901
                  Arvada North East

                Albuquerque,
                  NM 87110

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                CO

              	
                AmeriSuites

                (Cincinnati/Blue
                  Ash)

                11435
                  Road Hartman Highway

                Blue
                  Ash, OH 45241

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                CS

              	
                AmeriSuites

                (Columbus/Worthington)

                7490
                  Vantage Drive

                Columbus,
                  OH 43235

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                FO

              	
                AmeriSuites

                (Cincinnati/North)

                12001
                  Chase Plaza Drive

                Forest
                  Park, OH 45240

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                FN

                 

              	
                AmeriSuites

                (Nashville/Cool
                  Springs)

                650
                  Bakers Bridge Avenue

                Franklin,
                  TN 37067

              	
                Equity
                  Inns Partnership, LP

                 

              	
                ENN
                  Leasing Company, Inc.

                 

              	
                Caldwell
                  Holding, L.L.C.

                 

              	
                June
                  30, 2008

              
	
                M

                T

              	
                AmeriSuites

                (Memphis/Cordova)

                7905
                  Giacosa Place

                Memphis,
                  TN 38133

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                RO

              	
                AmeriSuites

                (Richmond/Innsbrook)

                4100
                  Cox Road

                Glen
                  Allen, VA 23060

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              

      

      

      
        
          
            Schedule
              1 - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        2

       

      CONVERSION
        SCHEDULE

      

      
        	
                Name

              	
                Anticipated
                  Guestroom Renovation Dates

              	
                Anticipated
                  Lobby Renovation Dates

              
	
                Albuquerque/Uptown

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Birmingham/Riverchase

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Baltimore/BWI
                  Airport

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Baton
                  Rouge/East

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Cincinnati/Blue
                  Ash

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Columbus/Worthington

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Flagstaff/Interstate
                  Crossroads

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Nashville/Cool
                  Springs

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Cincinnati/North

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Indianapolis/Keystone

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Las
                  Vegas/Paradise Road

              	
                Jun-1-2007

              	
                Nov-1-2007

              	
                Jun-1-2007

              	
                Nov-1-2007

              
	
                Minneapolis/Mall
                  of America

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Miami/Kendall

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Miami/Airport
                  West

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Memphis/Cordova

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Overland
                  Park/Metcalf

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              
	
                Richmond/Innsbrook

              	
                Apr-15-2007

              	
                Jul-10-2007

              	
                Apr-15-2007

              	
                Jul-10-2007

              
	
                Tampa
                  Airport/Westshore

              	
                Jul-15-2007

              	
                Oct-1-2007

              	
                Jul-15-2007

              	
                Oct-1-2007

              

      

      

      

       

      
        
          
            Schedule
              2 - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        3

       

      SCOPE
        OF
        WORK

      
        
          
            Schedule
              3 - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ANNEX
        A

      
 

      Location:
        ______________

      

                          ID
        Number:

       

      Date:
        ____________, 200_

       

      FORM
        OF

       

      FRANCHISE
        AGREEMENT

       

      between

       

      Hyatt
        Place Franchising, L.L.C.

       

      and

       

      [INSERT
        NAME OF FRANCHISEE]

       

      

      
        
          
            Annex
              A
              - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      HYATT
        PLACE HOTEL

       

      FRANCHISE
        AGREEMENT

       

      This
        Franchise Agreement (“Agreement” or “Franchise Agreement”) is made and entered
        into as of October 3, 2006 (the “Effective Date”) (regardless of the dates of
        the parties’ signatures) by and between HYATT
        PLACE FRANCHISING, L.L.C.,
        a
        Delaware limited liability company having its principal business address
        at 200
        West Monroe, 8th
        Floor,
        Chicago, Illinois 60606 (“we,” “our,” or “us”), and ______________, a
        _____________ limited liability company having an address at 7700 Wolf River
        Boulevard, Germantown, Tennessee 38138 (“you” or “your”).

       

      1. The
        Franchise.

       

      We
        have
        the exclusive right to license and franchise a concept and system (the “Hotel
        System”) associated with the establishment and operation of hotels under the
        name “HYATT® PLACE” and other Proprietary Marks (defined below) (collectively,
“Hyatt Place Hotels”). Before signing this Agreement, you read our Uniform
        Franchise Offering Circular and independently investigated and evaluated
        the
        risks of investing in the hotel industry generally and acquiring a Hyatt
        Place
        Hotel franchise specifically. Following your investigation and recognizing
        the
        benefits that you may derive from being identified with the Hotel System,
        you
        wish to enter into this Agreement to obtain a franchise to use the Hotel
        System
        to operate a Hyatt Place Hotel located at ___________, ___________, ________(the
        “Hotel”).

       

      A. The
        Hotel.
        The
        Hotel includes all structures, facilities, appurtenances, furniture, fixtures,
        equipment, entrances, exits, and parking areas located on the real property
        identified on Attachment
        A
        or any
        other real property we approve for Hotel expansion, signage, or other
        facilities. You may not make any material changes to the Hotel’s existing or
        planned construction without our prior written consent, including any change
        in
        the number of guest rooms at the Hotel (collectively “Guest
        Rooms”).

       

      B. The
        Hotel System.
        We and
        our affiliates have designed the Hotel System so that the public associates
        Hyatt Place Hotels with high quality standards. The Hotel System now includes:
        (a) the trade names, trademarks, and service marks “Hyatt Place” and such
        other trade names, trademarks, service marks, logos, slogans, trade dress,
        domain names, and other designations of source and origin (including all
        derivatives of the foregoing) that we periodically develop and designate
        for use
        in connection with the Hotel System (collectively, the “Proprietary Marks”);
        (b) all copyrightable materials that we periodically develop and designate
        for use in connection with the Hotel System, including the Manual (as defined
        below), videotapes, CDs/DVDs, marketing materials (including advertising,
        promotional, and public relations materials), architectural drawings (including
        all architectural plans, designs, and layouts such as, without limitation,
        site,
        floor, plumbing, lobby, electrical, and landscape plans), building designs,
        and
        business and marketing plans, whether or not registered with the U.S. Copyright
        Office (“Copyrighted Materials”); (c) all materials and other information
        that we designate as “confidential” orally or in writing or which, under the
        circumstances surrounding disclosure, ought to be treated as confidential,
        including all operations information, confidential manuals, revenue information,
        specifications, procedures, and business, marketing and other plans, as more
        fully identified in Section 5F of this Agreement (collectively, “Confidential
        Information”); (d) a national toll-free number for, and other aspects of,
        the central reservation system, as we renovate and modify it from time to
        time
        (“CRS”); (e) a global distribution system, as we renovate and modify it
        from time to time (“GDS”); (f) the national directory of Hyatt Place Hotels
        (which, at our option, also may be associated with any other hotel brand
        or
        other business that we or our affiliates own, operate, franchise, license
        or
        manage) (the “National Directory”); (g) management, personnel, and
        operational training programs, materials, and procedures; (h) standards,
        specifications, procedures, and rules for operations, marketing, construction,
        equipment, furnishings, and quality assurance (collectively, “System Standards”)
        described in our confidential manuals, as amended from time to time
        (collectively, the “Manual”), or in other written or electronic communications;
        and (i) marketing, advertising, and promotional programs. Although we
        retain the right to establish and periodically to modify System Standards
        for
        the Hotel that you agree to implement and maintain, and to modify the Hotel
        System as we deem best for Hyatt Place Hotels, you retain the right to control,
        and responsibility for, the Hotel’s day-to-day management and operation and
        implementing and maintaining System Standards at the Hotel. In addition,
        our
        mandatory System Standards do not include any personnel or security-related
        policies or procedures that we (at our option) make available to you in the
        Manual or otherwise for your optional use. You will determine to what extent,
        if
        any, these optional policies and procedures should apply to your Hotel’s
        operations. You acknowledge that we do not dictate or control labor or
        employment matters for franchisees and their employees and will not be
        responsible for the safety and security of Hotel employees or
        patrons.

       

      2. Grant.

       

      A. Term.
        Commencing on the Effective Date and continuing during the term provided
        in
        Section 10A (the “Term”), we hereby grant you, and you hereby accept, the
        non-exclusive right and franchise to use the Hotel System to build or convert
        and operate the Hotel at the site specified in Attachment
        A
        (the
“Site”) in accordance with this Agreement’s terms. Your right to operate the
        Hotel will cease upon termination or expiration of this Agreement.

       

      B. Area
        of Protection.
        We
        grant you a geographic area of protection, which is described in Attachment B
        (the
“Area of Protection”), in which to construct and operate your Hotel. Subject to
        the one exception below, neither we nor any of our affiliates will open and
        operate, or authorize any other party to open and operate, any other Hyatt
        Place
        Hotels the physical premises of which are located within the Area of Protection.
        The one exception to this restriction is that, if we or any of our affiliates
        acquire (whether through purchase, sale, merger, consolidation, or other
        transaction) another chain, franchise system, group or portfolio of at least
        four (4) hotels, or acquire the right to operate or manage another chain,
        franchise system, group or portfolio of at least four (4) hotels, one (1)
        or
        more of which hotels are located in the Area of Protection (as we have the
        right
        to do), we and/or our affiliates then will have the unrestricted right to
        convert, or cause to be converted, the acquired hotel(s) within the Area
        of
        Protection from its (or their) original trade identity to the Hotel System
        and
        then to operate, or authorize any other party to operate, such hotel(s) as
        Hyatt
        Place Hotels using the Hotel System, even if one (1) or more of the other
        acquired hotels, whether operating within or outside the Area of Protection,
        are
        not converted to Hyatt Place Hotels.

       

      Except
        for the limited exclusivity provided above, there are no restrictions on
        us or
        our affiliates, your rights under this Agreement are nonexclusive in all
        respects, the Hotel has no territorial protection whatsoever, and we and
        our
        affiliates have the right without any restrictions at all to engage in any
        and
        all activities we and they desire (including any and all types of lodging
        facilities), at any time and place, whether or not using the Proprietary
        Marks
        or any aspect of the Hotel System, whether or not those activities compete
        with
        your Hotel, and whether or not we or our affiliates start those activities
        ourselves or purchase, merge with, acquire, or affiliate with businesses
        that
        already engage in such activities. We and our affiliates may engage in all
        activities not expressly prohibited in this Agreement. We and our affiliates
        may
        use or benefit from common hardware, software, communications equipment and
        services, administrative systems, reservation systems, franchise application
        procedures, central purchasing, approved vendor lists, and personnel. You
        agree
        that you will have no right to pursue any claims, demands, or damages as
        a
        result of these activities, whether under breach of contract, unfair
        competition, implied covenant of good faith and fair dealing, divided loyalty,
        or other theories, because you have expressly allowed us and our affiliates
        to
        engage in all such activities without restriction.

       

      You
        acknowledge that our affiliates operate other franchise and non-franchised
        systems for lodging facilities (including time-share or interval ownership
        facilities and vacation clubs) that use different brand names, trademarks,
        and
        service marks, including those with the “Hyatt” name as part of their brand
        name, some of which might operate and have facilities in the Area of Protection,
        that will compete directly with you. None of those activities, even other
        uses
        of the “Hyatt” name, will constitute a violation of this Agreement. Only the
        operation of a “Hyatt Place” Hotel the physical premises of which are located
        within the Area of Protection would constitute a violation of this Agreement,
        unless the one exception noted above applies.

       

      C. Opening.
        You
        have no right to open the Hotel for business under the Hotel System unless
        and
        until we authorize you to do so in writing. The date on which you first open
        the
        Hotel for business shall be deemed the “Opening Date.” You must not open the
        Hotel for business and begin operating the Hotel until: (1) you have properly
        developed and equipped the Hotel according to our System Standards and in
        compliance with all applicable laws, rules and regulations; (2) all pre-opening
        training for the Hotel’s personnel has been completed to our satisfaction; (3)
        all amounts then due to us and our affiliates have been paid; (4) you have
        obtained all required certificates of occupancy, licenses and permits to
        operate
        the Hotel; (5) you have given us copies of all insurance policies required
        under this Agreement, or such other evidence of insurance coverage and payment
        of premiums as we request; and (6) we have conducted a pre-opening inspection
        and approved the Hotel for opening. Our determination that you have met all
        of
        our pre-opening requirements will not constitute a representation or warranty,
        express or implied, that the Hotel complies with any laws or a waiver of
        your
        non-compliance, or of our right to demand full compliance, with such pre-opening
        requirements.

       

      3. Your
        Responsibilities.

       

      A. Operational
        and Other Requirements.
        During
        the Term, you agree to do the following (many of which requirements also
        are
        addressed in more detail elsewhere in this Agreement):

       

      
        	 	
                (1)

              	
                have
                  your owners, employees, and approved independent contractors
                  satisfactorily complete all required orientation and training programs
                  and
                  ensure that a trained management and operations staff, including
                  a general
                  manager and sales manager who devote full time to their duties
                  at the
                  Hotel, is in place at the Hotel at all times, as you are responsible
                  for
                  management of the Hotel’s business;

              

      

       

      
        	 	
                (2)

              	
                maintain
                  the Hotel in first class condition and in a clean, safe, and orderly
                  manner;

              

      

       

      
        	 	
                (3)

              	
                provide
                  efficient, courteous, competent, prompt, and high-quality service
                  to the
                  public while maintaining a high moral and ethical standard and
                  atmosphere
                  at the Hotel;

              

      

       

      
        	 	
                (4)

              	
                operate
                  the Hotel twenty-four (24) hours a day, every day, and use the
                  Hotel
                  premises solely for the business franchised under this
                  Agreement;

              

      

       

      
        	 	
                (5)

              	
                strictly
                  comply in all respects with our mandatory System Standards and
                  other
                  requirements, as we may periodically modify them,
                  concerning:

              

      

       

      
        	 	
                (a)

              	
                the
                  Hotel System, the Manual (other than any personnel and security-related
                  policies and procedures contained in the Manual, which are for
                  your
                  optional use), and all other mandatory policies and procedures
                  we
                  periodically communicate to you;

              

      

       

      
        	 	
                (b)

              	
                our
                  quality standards and the types of services, products, and amenities
                  you
                  may use, promote, or offer at the
                  Hotel;

              

      

       

      
        	 	
                (c)

              	
                your
                  use of the Proprietary Marks and display, style, location, and
                  type of
                  signage, as outlined in this Agreement, the Manual, and other written
                  directives we periodically issue;

              

      

       

      (d) directory
        and reservation service listings of the Hotel; and

       

      
        	 	
                (e)

              	
                your
                  participation in and compliance with the terms of all of our marketing,
                  reservation service, rate and room inventory management, advertising,
                  cooperative advertising, guest frequency, discount or promotional,
                  customer award, Internet, computer, training, and operating programs,
                  including a property management system that interfaces with the
                  CRS or any
                  other central reservation system we periodically adopt. We may
                  periodically establish and/or coordinate these programs with third
                  parties
                  we designate. These third parties might (but need not) be our affiliates.
                  You must sign and comply with any license, participation and other
                  agreements we periodically specify relating to these programs.
                  You
                  acknowledge and agree that we have the right, without prior notice
                  to you,
                  to access your computer systems, including the property management
                  system,
                  and all data and information that you have processed or stored
                  with,
                  through, or otherwise in connection with such computer
                  systems;

              

      

       

      
        	 	
                (6)

              	
                participate
                  in, connect with, and use the CRS and GDS in the manner we designate
                  in
                  the Manual or otherwise for offering, booking, modifying, and
                  communicating Guest Room and meeting space reservations for the
                  Hotel and
                  bear all related costs and expenses. You may not use any other
                  central
                  reservation or similar system without our prior written consent.
                  You agree
                  to pay all applicable monthly maintenance
                  fees;

              

      

       

      (7) adopt
        all
        changes we periodically make to the Hotel System;

       

      
        	 	
                (8)

              	
                strictly
                  comply with all governmental requirements concerning the Hotel’s
                  operation, including

              

      

       

      (a)
         paying
        all taxes when due,

       

      (b)
         filing
        and maintaining trade or fictitious name registrations,

       

      
        	 	
                (c)

              	
                filing
                  and maintaining all licenses and permits necessary to operate the
                  Hotel,
                  and

              

      

       

      
        	 	
                (d)
                  

              	
                obtaining
                  and maintaining all licenses required to sell alcoholic beverages
                  at the
                  Hotel (unless we, at our sole option, have determined that no alcoholic
                  beverages may be offered at or from the Hotel’s
                  premises);

              

      

       

      
        	 	
                (9)

              	
                permit
                  our representatives to inspect or audit the Hotel at any time and
                  give
                  them free lodging during the inspection
                  period;

              

      

       

      
        	 	
                (10)

              	
                refer
                  guests and customers, wherever reasonably possible, only to Hyatt
                  Place
                  Hotels or other brands affiliated with us, not use the Hotel or
                  the Hotel
                  System to promote a competing business or other lodging facility,
                  and not
                  divert business from the Hotel to a competing
                  business;

              

      

       

      
        	 	
                (11)

              	
                use
                  your best efforts to create a favorable response to the name “Hyatt Place”
                  and the names of any brand extensions and other Proprietary
                  Marks;

              

      

       

      
        	 	
                (12)

              	
                participate
                  in, and pay all fees of, any Hotel System travel agent commission
                  payment
                  program, as we periodically modify it, and promptly pay as we require
                  all
                  travel agent commissions and third party reservation service charges
                  according to the terms of those
                  programs;

              

      

       

      
        	 	
                (13)

              	
                promptly
                  pay us and/or our affiliates when due all royalties and other amounts
                  owed, whether under this Agreement or any related
                  agreement;

              

      

       

      
        	 	
                (14)

              	
                honor
                  all nationally recognized credit cards and other payment mechanisms
                  we
                  periodically designate and enter into all necessary credit card
                  and other
                  agreements with the issuers of those cards and other applicable
                  parties;

              

      

       

      
        	 	
                (15)

              	
                treat
                  as confidential and proprietary the Manual and any other Confidential
                  Information and

              

      

       

      
        	 	
                (a) 

              	
                use
                  such material only in operating the Hotel during the
                  Term,

              

      

       

      
        	 	
                (b) 

              	
                not
                  duplicate, circulate, distribute, reproduce, copy, or exhibit any
                  portion
                  of the Manual or Confidential Information,
                  and

              

      

       

      
        	 	
                (c)

              	
                not
                  divulge any Confidential Information to any person unless he or
                  she needs
                  to know the Confidential Information in order to perform his or
                  her duties
                  at the Hotel;

              

      

       

      
        	 	
                (16)

              	
                use
                  best efforts to require anyone with access to any Confidential
                  Information
                  to keep the Confidential Information confidential. You must obtain
                  a
                  written agreement from those of your officers, directors, employees,
                  and
                  managers whom we specify agreeing to this Agreement’s restrictions
                  regarding the Confidential Information. We have the right to regulate
                  the
                  form of agreement that you use and to be a third party beneficiary
                  of that
                  agreement with independent enforcement rights. You must keep copies
                  of
                  those agreements and send them to us upon
                  request;

              

      

       

      
        	 	
                (17)

              	
                conduct
                  a pre-opening marketing program for the Hotel according to our
                  requirements. At least one hundred twenty (120) days before the
                  Hotel’s
                  grand opening, you must

              

      

       

      
        	 	
                (a) 

              	
                pay
                  us an amount equal to One Hundred Dollars ($100) multiplied by
                  the number
                  of Guest Rooms at the Hotel (the “Marketing Deposit”),
                  and

              

      

       

      
        	 	
                (b) 

              	
                prepare
                  and submit to us for our approval a written pre-opening marketing
                  program
                  that contemplates spending the Marketing Deposit and satisfies
                  our
                  requirements. You must change the program as we specify and implement
                  the
                  approved program. We will use the Marketing Deposit to pay, on
                  your
                  behalf, providers of products and services according to the approved
                  pre-opening marketing program;

              

      

       

      
        	 	
                (18)

              	
                conduct
                  your advertising in a dignified manner. Before you use them, you
                  must
                  submit to us for our prior approval all advertising, promotional,
                  and
                  public relations plans, programs, and materials that you desire
                  to use,
                  including any materials in digital, electronic, computerized, or
                  other
                  form (including materials to be made available through a computer
                  or
                  telecommunications network such as the Internet, or on a Hotel
                  Website
                  (defined below), subject to Subsection (23) below). If you do not
                  receive
                  written disapproval within fifteen (15) business days after we
                  receive the
                  materials, they are deemed to be approved. You may not use any
                  advertising, promotional, or public relations materials or engage
                  in any
                  programs that we have not approved or have disapproved and must
                  discontinue using any previously-approved materials and engaging
                  in any
                  previously-approved programs within the timeframe we specify after
                  you
                  receive written notice from us;

              

      

       

      
        	 	
                (19)

              	
                continually,
                  but not less than once every six (6) months, send us current information
                  regarding the name, address, and telephone number of the financial
                  institution (the “Lender”), if any, that provided or is providing the
                  financing enabling you to purchase or operate the Hotel and the
                  name and
                  telephone number of your contact at the
                  Lender;

              

      

       

      
        	 	
                (20)

              	
                notify
                  us in writing within ten (10) days after you receive information
                  or
                  documentation about any lawsuit, action, or proceeding, or the
                  issuance of
                  any injunction, award, or decree of any court, quasi-judicial body,
                  or
                  governmental agency, that might adversely affect the Hotel, your
                  ability
                  to perform your obligations under this Agreement, or your financial
                  condition;

              

      

       

      
        	 	
                (21)

              	
                subject
                  to our rights and your obligations under Section 8 below, notify us
                  in writing at least ten (10) days in advance of your intent to
                  list the
                  Hotel for sale and promptly send us all information we reasonably
                  request
                  regarding any proposed sale. You also must ensure that each holder
                  of a
                  direct or indirect Controlling Ownership Interest (defined in Section
                  8B
                  below), whether that person or entity owns that interest as of
                  the
                  Effective Date or acquires that interest during the Term (subject
                  to our
                  rights and your obligations under Section 8 below), signs our required
                  form of Guaranty and Assumption of
                  Obligations;

              

      

       

      
        	 	
                (22)

              	
                at
                  our request, send us the names of Hotel customers and guests and give us
                  access to your sales and customer
                  database;

              

      

       

      
        	 	
                (23)

              	
                not
                  create a separate website promoting your Hotel (a “Hotel Website”) without
                  our prior written approval. If we approve your use of a Hotel Website,
                  we
                  will own all intellectual property and other rights in the domain
                  name or
                  URL for the Hotel Website, the log of “hits” by visitors, and any personal
                  or business data that visitors supply. You must sign the documents
                  we
                  periodically request to secure our ownership of those rights. We
                  may
                  implement and periodically modify, and you must comply with, System
                  Standards relating to the Hotel Website and similar websites. The
                  Hotel
                  Website may not contain any content that references any other hotel,
                  motel, or other lodging facility. In addition, you may allow the
                  Hotel to
                  be listed on third-party websites (other than the Hotel System
                  website)
                  that offer and sell travel-related products and services, but we
                  have the
                  right to approve in advance these websites and your proposed listings
                  on
                  or links to these websites in order to protect the Proprietary
                  Marks and
                  Hotel System and may withdraw our approval of any website or listing
                  that
                  no longer meets our minimum
                  standards;

              

      

       

      
        	 	
                (24)

              	
                comply
                  with all System Standards concerning mystery shopper programs,
                  guest
                  relations, and guest complaints and resolution, including reimbursing
                  dissatisfied guests for their costs of staying at the Hotel and
                  participating in other guest satisfaction programs in the manner
                  we
                  specify;

              

      

       

      
        	 	
                (25)

              	
                purchase
                  or lease, install, and maintain at the Hotel all fixtures; equipment;
                  furnishings; furniture; telephone systems; communications systems;
                  facsimile machines; copiers; signs; property management, revenue
                  management, in-room entertainment, and other computer and technology
                  systems; and other items (collectively, “FF&E”) we specify for the
                  Hotel System. You may not install at the Hotel, without our prior
                  written
                  consent, any FF&E or other items we have not previously approved. You
                  may use at the Hotel only FF&E, supplies, and other goods and services
                  at the Hotel that conform to our System Standards. We may specify
                  for the
                  Hotel System a particular model or brand of FF&E, supplies, and other
                  goods and services that is available from only one manufacturer
                  or
                  supplier. We may specify that certain FF&E, supplies, and other goods
                  and services be purchased only from us or our affiliates or sources
                  we
                  designate or approve. If you wish to obtain any FF&E, supplies, or
                  other goods and services for which we have established standards
                  or
                  specifications from a source that we have not previously approved
                  as
                  meeting our System Standards, you must send us a written request
                  with any
                  information and samples we consider necessary to determine whether
                  the
                  item and source meet our then current criteria. Upon our request,
                  you must
                  reimburse our costs in reviewing your request and evaluating the
                  item
                  and/or source. If you comply with our processes and procedures
                  regarding
                  approval of alternate or additional manufacturers or suppliers,
                  we will
                  respond to your request within a reasonable time period. You may
                  not
                  purchase any FF&E, supplies or other goods or services for the Hotel
                  unless the purchase is from a source we designate or approve or
                  we have
                  approved in writing that the item you proposed meets our standards
                  and
                  specifications. We may modify our System Standards in this area
                  as we deem
                  best. We reserve the right, at our option, to revoke our approval
                  of
                  certain sources or items if they fail to continue to meet our System
                  Standards. We may refuse any of your requests if we already have
                  designated a particular source for, or model or brand of, FF&E,
                  supplies or other goods or services that we (in our sole judgment)
                  determine to be critical to the Hotel System and we do not desire
                  to
                  expand the list of approved sources, models, or brands. We may
                  make this
                  decision as we deem best. We
                  and our affiliates have the right to receive payments from suppliers
                  on
                  account of their actual or prospective dealings with you and other
                  franchisees and to use all amounts we and our affiliates receive
                  without
                  restriction for any purposes we and our affiliates deem appropriate
                  (unless we and our affiliates agree otherwise with the
                  supplier);

              

      

       

      
        	 	
                (26)

              	
                own
                  fee simple title (or a long-term ground leasehold interest, provided
                  that
                  such interest has been granted to you by an unrelated third party
                  ground
                  lessor in an arms-length transaction for a term equal to, or longer
                  than,
                  the Term) to the Hotel’s real property and improvements or, at our
                  request, cause the fee simple owner or other third party acceptable
                  to us
                  to provide its guarantee covering all your obligations under this
                  Agreement in form and substance acceptable to us. You
                  must provide us copies of any lease for the Hotel’s premises (and any
                  amendments thereto) upon our request. You acknowledge that our
                  approval of
                  the Hotel’s site is not a guarantee or warranty, express or implied, of
                  the success or profitability of a Hyatt Place Hotel operated at
                  that
                  location. Our approval indicates only that we believe that the
                  site meets
                  our then acceptable criteria; and

              

      

       

      
        	 	
                (27)

              	
                promptly
                  send us a copy of any notice of default you receive from any mortgagee,
                  trustee under any deed of trust, or ground lessor for the Hotel
                  and, at
                  our request, any additional information we request concerning any
                  alleged
                  default or any subsequent action or proceeding in connection with
                  any
                  alleged default.

              

      

       

      B. Performance
        of the Work.
        As a
        primary inducement for us to enter into this Agreement, you agree to perform
        the
        work listed on Attachment
        C
        (the
“Work”) in strict accordance with our specifications and this Agreement’s other
        applicable terms and conditions.

       

      C. Hotel
        Upgrading.
        We may
        require you at any time and from time to time during the Term to upgrade
        or
        renovate the Hotel to comply with then current building décor, appearance, and
        trade dress standards that we have established and require for Hyatt Place
        Hotels generally, and this upgrading or renovation may obligate you to invest
        additional capital in the Hotel and/or incur higher operating costs. You
        agree
        to implement such upgrading and renovation, and any other changes in System
        Standards, within the time period we request, regardless of their cost or
        the
        point during the Term when we require you to do so, as if they were part
        of this
        Agreement as of the Effective Date. Your failure to do so within the timeframe
        we specify may result in our issuing a quality default notice that could
        lead to
        the termination of this Agreement and your obligation to pay liquidated damages
        under Section 10E of this Agreement.

       

      D. Fees.

       

      
        	 	
                (1)

              	
                Unless
                  otherwise specified, all fees that you paid us before or simultaneously
                  with the execution of this Agreement, or will pay us during the
                  Term, are
                  non-refundable.

              

      

       

      
        	 	
                (2)

              	
                If
                  we and you agree to add additional Guest Rooms to the Hotel during
                  the
                  Term, then you must pay us an additional Application Fee in an
                  amount
                  equal to Four Hundred Dollars ($400) multiplied by the number of
                  additional Guest Rooms. When you request our approval of your plans
                  to
                  develop the additional Guest Rooms, you must pay us a non-refundable
                  Property Improvement Plan (“PIP”) fee of Five Thousand Dollars
                  ($5,000.00). We will apply this PIP fee toward the additional Application
                  Fee if we approve your plans. The remaining portion of the additional
                  Application Fee is due, fully earned by us, and non-refundable
                  on the date
                  we approve your plans to develop the additional Guest
                  Rooms.

              

      

       

      
        	 	
                (3)

              	
                On
                  or before the tenth (10th)
                  day of each month beginning with the month following the Opening
                  Date, you
                  shall pay us:

              

      

       

      
        	 	
                (a)

              	
                a
                  “Royalty Fee” equal to

              

      

       

      
        	 	
                (i)
                  

              	
                three
                  percent (3%) of the Hotel’s Gross Rooms Revenue (as defined in Section
                  3D(6)) accrued during the First Year (defined
                  below);

              

      

       

      
        	 	
                (ii)
                  

              	
                four
                  percent (4%) of the Hotel’s Gross Rooms Revenue accrued during the Second
                  Year (defined below); and

              

      

       

      
        	 	
                (iii)

              	
                five
                  percent (5%) of the Hotel’s Gross Rooms Revenue during the balance of the
                  Term.

              

      

       

      The
        “First Year” means the calendar twelve (12) month period beginning on the first
        (1st)
        day of
        the calendar month during which the Opening Date occurs, and the “Second Year”
means the calendar twelve (12) month period beginning on the first
        (1st)
        anniversary of the first (1st)
        day of
        the calendar month during which the Opening Date occurs;

       

      
        	 	
                (b)

              	
                a
                  contribution to the Marketing, Central Reservations and Technology
                  Fund
                  (described in Section 4D) (“Contribution”) equal to three and one-half
                  percent (31⁄2%) of the Hotel’s Gross Rooms Revenue during the preceding
                  month. At any time during the Term, we may, upon thirty (30) days’ prior
                  notice to you, periodically increase the Contribution, but it will
                  not
                  exceed four percent (4%) of the Hotel’s Gross Rooms Revenue;
                  and

              

      

       

      
        	 	
                (c)

              	
                all
                  fees and other amounts that we (or our affiliates) then have paid
                  or have
                  agreed to pay on your behalf to the then current CRS operator (if
                  applicable), then current GDS operator (if applicable), and other
                  providers of products or services for the Hotel (collectively,
                  the
                  “Providers”). If any Provider assesses a single or group fee or other
                  charge that covers all or a group of Hyatt Place Hotels to which
                  that
                  Provider provides products or services, you agree that our allocation
                  of
                  that fee or other charge among the Hotel and other Hyatt Place
                  Hotels is
                  final. The Providers may periodically increase the fees and other
                  charges
                  they impose. At our option, you must begin paying these fees and
                  other
                  charges directly to the applicable
                  Provider(s).

              

      

       

      (5) You
        agree
        to pay on a timely basis:

       

      
        	 	
                (a)

              	
                applicable
                  commissions to travel agents;

              

      

       

      
        	 	
                (b)

              	
                all
                  commissions and fees for reservations you accept through any sources
                  (including the Internet), whether processed through us, the CRS,
                  or a
                  third-party reservation system or billed directly to
                  you;

              

      

       

      
        	 	
                (c)

              	
                all
                  contributions for cooperative advertising programs in which you
                  agree to
                  participate, as required in Section 3E
                  below;

              

      

       

      
        	 	
                (d)

              	
                charges
                  for telephone and other equipment related to the CRS;
                  and

              

      

       

      
        	 	
                (e)

              	
                all
                  fees and assessments due for guest frequency programs or other
                  marketing
                  programs we initiate that are attributable to the Hotel. Failure
                  to pay
                  any of these fees is a default under this
                  Agreement.

              

      

       

      
        	 	
                (6)

              	
                “Gross
                  Rooms Revenue” shall mean all gross revenues attributable to or payable
                  for the rental of Guest Rooms, including guaranteed no-show revenue
                  and
                  cancellation fees and all cash, check, barter, credit, debit, and
                  other
                  transactions, whether or not collected, at the actual rates charged,
                  reduced by Guest Room rebates and overcharges (but only if originally
                  included in Gross Rooms Revenue) and excluding any sales or room
                  taxes you
                  collect and transmit to the appropriate taxing authority. Gross
                  Rooms
                  Revenue also shall include the proceeds from any business interruption
                  insurance applicable to loss of revenue due to the non-availability
                  of
                  Guest Rooms. Gross Rooms Revenue shall be accounted for in accordance
                  with
                  the Uniform System of Accounts for the Lodging Industry, Ninth
                  Edition, as
                  published by The Hotel Association of New York City, Inc., or a
                  later
                  edition that we approve.

              

      

       

      (7) You
        must
        make all payments for Royalty Fees, Contributions, and other fees due to
        us
        under this Agreement by electronic funds transfer (“EFT”). You must sign the
        documents we periodically specify to allow us to debit your bank account
        or
        otherwise process these payments through EFT. You also must sign any additional
        or new forms and complete any reasonable procedures we establish for EFT.
        We
        will require payment by EFT only for Royalty Fees, Contributions, and other
        fees
        due to us under this Agreement. We periodically may change the procedure
        for
        monthly payments and require you to

       

      
        	 	
                (a)

              	
                make
                  your monthly payments to a designated bank account by wire transfer
                  or
                  other means we specify and

              

      

       

      
        	 	
                (b)
                  

              	
                sign
                  any authorizations or other documents required to implement that
                  procedure.

              

      

       

      On
        the
        date Royalty Fees and Contributions are due, you shall report to us by
        telephone, electronic means, or in written form, as we direct, pursuant to
        our
        standard transmittal procedures, information regarding your Gross Rooms Revenue
        and any additional information we request. Funds must be available in your
        account to cover our withdrawals. You may not change your bank, financial
        institution, or account without first telling us.

       

      
        	 	
                (8)

              	
                You
                  agree to pay us a late fee of Two Hundred Twenty-Five Dollars ($225)
                  for
                  each required payment not made on or before its original due date
                  and for
                  each payment not honored by your financial institution. The late
                  fee is
                  not interest or a penalty but compensates us for increased administrative
                  and management costs due to your late payment. In addition, all
                  amounts that you owe us that are more than seven (7) days late
                  will bear
                  interest accruing as of their original due date at one and one-half
                  percent (1.5%) per month or the highest commercial contract interest
                  rate
                  the law allows, whichever is less. We may debit your bank account
                  automatically for the late fee and interest. You acknowledge that
                  this
                  subparagraph is not our agreement to accept any payments after
                  they are
                  due or our commitment to extend credit to, or otherwise finance
                  your
                  operation of, the Hotel.

              

      

       

      
        	 	
                (9)

              	
                Subject
                  to our requirements and at your own expense, you may conduct local
                  and
                  regional marketing and advertising programs. You shall pay us the
                  reasonable fees we periodically establish for optional advertising
                  materials you order from us for these
                  programs.

              

      

       

      
        	 	
                (10)

              	
                Despite
                  any designation you make, we may apply any of your payments to
                  any of your
                  past due indebtedness to us or our affiliates. We may set off any
                  amounts
                  you or your owners owe us or our affiliates against any amounts
                  we or our
                  affiliates owe you or your owners. You may not withhold payment
                  of any
                  amounts you owe us or our affiliates due to our alleged nonperformance
                  of
                  any of our obligations under this
                  Agreement.

              

      

       

      
        	 	
                (11)

              	
                If
                  any gross receipts, sales, use, excise, or similar tax is imposed
                  upon us
                  due to any payment you make to us under this Agreement (but not
                  our own
                  income taxes), you must reimburse us for all tax payments we make
                  so that
                  the amount of your payments we retain after paying the applicable
                  taxes
                  equals the full amount of the payments you were required to make
                  under
                  this Agreement had the tax not been imposed upon
                  us.

              

      

       

      E. Cooperative
        Advertising Programs.
        We may
        identify a region in which two (2) or more Hyatt Place Hotels are located
        in
        order to establish a local or regional advertising cooperative (a
“Cooperative”). We may form, change, dissolve and merge Cooperatives. The
        Cooperative’s purpose will be to collect funds from its members and to plan,
        discuss, organize, develop, utilize, produce, disseminate, and implement
        advertising and promotional programs and materials on a collective basis
        (and to
        cover related expenses) for the sale of services at participating Hyatt Place
        Hotels. We will not require you to participate in a Cooperative. However,
        if you
        choose to participate in the Cooperative, you must do so according to the
        Cooperative’s rules, including by paying your Hotel’s allocable share of any
        advertising, marketing, promotional and other programs that the Cooperative
        conducts. All restrictions under this Agreement relating to any advertising,
        marketing or promotional programs that you conduct also apply to any such
        programs that the Cooperative conducts.

       

      F. Management
        of the Hotel.
        Unless
        we consent in writing, you must at all times retain and exercise direct
        management control over the Hotel’s business. You may not enter into any lease,
        management agreement, or other similar arrangement with any independent entity
        for all or a part of the Hotel’s operation (a “Management Arrangement”) without
        our prior written consent, which we will not unreasonably withhold if the
        independent entity meets our minimum qualifications, attends and satisfactorily
        completes required training programs, agrees to sign the documents we require
        to
        protect our Proprietary Marks, Copyrighted Materials, and Confidential
        Information, and agrees to perform its management responsibilities in compliance
        with this Agreement. Nevertheless, we may refuse to approve a management
        company
        which is, or that has an affiliate which is, a Brand Owner. Under this
        Agreement, “Brand Owner” means any entity that is a franchisor or owner, or is
        affiliated with or manages hotels exclusively for the franchisor or owner,
        of a
        hotel concept that in our opinion competes with Hyatt Place Hotels, irrespective
        of the number of hotels operating under that concept’s trade name. Even after we
        approve a Management Arrangement, we may at our option revoke that approval,
        and
        upon delivery of written notice to you require you to terminate the Management
        Arrangement, if the independent entity or any of its affiliates at any time
        becomes a Brand Owner or otherwise fails to meet our minimum qualifications
        or
        to comply with this Agreement.

       

      G. Guest
        Room Rates.
        You
        will establish the Hotel’s room rates and submit them to us promptly upon our
        request. Except for special event periods, you may not charge any rate exceeding
        the rate you submit in writing for sale by the CRS.

       

      4. Our
        Responsibilities.

       

      A. Orientation
        and Training.

       

      (1) Owner/Management
        Orientation.
        Within
        ninety (90) days after the Effective Date, your managing owners and core
        management team must attend an owner/management orientation program at our
        principal business address. We do not charge for this orientation
        program.

       

      (2) General
        Manager Certification Program/Central Reservation System Training
        Program.
        Before
        opening the Hotel for business, your general manager and other key personnel
        we
        specify must attend and successfully complete our General Manager Certification
        Program, our Central Reservation System Training Program, and such other
        training programs and curriculum we specify. If you replace your general
        manager
        or any other key personnel whom we require to attend training, you must have
        their replacements attend and successfully complete the applicable training
        programs within thirty (30) days (or such other period we periodically
        designate) after they assume their positions. We will designate the dates,
        locations, and duration of all training. You must pay our then current fees
        for
        the initial and all subsequent General Manager Certification Programs and
        Central Reservation System Training Programs.

       

      (3) Sales
        Director Training Program.
        Before
        opening the Hotel for business, your sales director must attend and successfully
        compete our Sales Director Training Program. If you replace your sales director,
        you must have his or her replacement attend and successfully complete the
        training program within thirty (30) days (or such other period we periodically
        designate) after he or she assumes the position. We will designate the dates,
        locations, and duration of training. You must pay our then current fees for
        the
        initial and all subsequent Sales Director Training Programs.

       

      (4) On-Site
        Training.
        We will
        send one or two trainers (at our option) to assist with training your staff
        and
        the Hotel’s grand opening. You must pay us our then current fee and our
        trainer(s)’ travel and living expenses associated with this training. The
        trainer(s) will arrive at or before the Hotel’s grand opening and stay for the
        period that we specify. The trainer(s) will generally assist and train Hotel
        staff with aspects of day-to-day operations, including laundry, customer
        service, food and beverage, and front desk operations.

       

      (5) Supplemental
        Training.
        We may,
        at such times and places we deem best, require your general manager, your
        sales
        director, and other key personnel to attend and successfully complete
        supplemental training courses in connection with Hotel System modifications.
        These individuals must attend any supplemental training within one hundred
        and
        eighty (180) days after you receive notice from us that such training is
        required. The fee for supplemental training ranges from One Hundred Fifty
        Dollars ($150) to Two Thousand Five Hundred Dollars ($2,500) per person,
        depending on the nature of the training program. Supplemental training may
        be
        conducted by, and tuition may be payable to, third parties we
        designate.

       

      (6) Training
        Expenses.
        Besides
        the training fees we charge for the training discussed above, you are
        responsible for all costs of transportation, meals, lodging, salaries, and
        other
        compensation incurred in connection with training. If we hold any training
        at
        your Hotel, you must provide free lodging for our representatives.

       

      B. Services.
        If you
        are in full compliance with your obligations under this Agreement, you shall
        have access to the CRS, listings in advertising publications, and the National
        Directory. You must participate in, connect with, and use the CRS and GDS
        in the
        manner we periodically designate for offering, booking, modifying, and
        communicating Guest Room and meeting space reservations for the Hotel and
        bear
        all related costs and expenses. We or our representative will provide data
        installation services relating to the initial set-up of the CRS and GDS at
        the
        Hotel You must honor and give first priority on available rooms to all confirmed
        reservations that the CRS or GDS refers to the Hotel. The CRS and GDS are
        the
        only reservation system or service that your Hotel may use for outgoing
        reservations that the Hotel refers to other hotels. You are solely responsible
        for notifying the reservation center of any changes in your Hotel’s room rates.
        You may not charge any guest a rate higher than the rate that the reservations
        center specifies to the guest at the time he or she makes the reservation.
        We
        may suspend your access to and listings in these sources while you are in
        default under this Agreement.

       

      C. Guidance
        and Assistance.
        During
        the Term, we may advise you from time to time regarding the Hotel’s operation
        based on your reports or our evaluations and inspections and may guide you
        with
        respect to

       

      
        	 	
                (1)
                  

              	
                System
                  Standards that Hyatt Place Hotels
                  use,

              

      

       

      
        	 	
                (2)
                  

              	
                purchasing
                  required and authorized FF&E and other items and arranging for their
                  distribution to you,

              

      

       

      
        	 	
                (3)
                  

              	
                advertising
                  and marketing materials and
                  programs,

              

      

       

      
        	 	
                (4)
                  

              	
                employee
                  training, and

              

      

       

      
        	 	
                (5)
                  

              	
                administrative,
                  recordkeeping, and accounting
                  procedures.

              

      

       

      We
        may
        guide you in the Manual; in bulletins or other written materials; by electronic
        media; by telephone consultation; and/or at our headquarters or the Hotel.
        If
        you request, and we agree to provide, additional or special guidance,
        assistance, or training, you agree to pay our then applicable charges, including
        our personnel’s per diem charges and travel and living expenses.

       

      D. Marketing,
        Central Reservations and Technology Fund.
        We or
        our designee will administer a Marketing, Central Reservations and Technology
        Fund for the Hotel System (the “Fund”). You must make the Contributions
        specified in Section 3D(4)(b) above. For administrative convenience, we may
        (but
        are not required to) collect the Contributions before passing them on to
        the
        Fund. Hyatt Place Hotels that we or our affiliates own and operate will
        contribute to the Fund on the same percentage basis as franchisees. We also
        have
        the right to collect for deposit into the Fund any advertising, marketing,
        or
        similar allowances paid to us by suppliers who deal with Hyatt Place Hotels
        and
        with whom we agree to so deposit these allowances.

       

      We
        will
        determine and direct all programs that the Fund finances, with sole control
        over
        the creative concepts, materials, and endorsements used and their geographic,
        market, and media placement and allocation, including by determining on our
        own
        the amounts to be spent for the various purposes identified in this Section.
        The
        Fund may pay for preparing and producing video, audio, and written materials
        and
        electronic media; developing, implementing, maintaining and improving the
        Hotel
        System’s website and/or related strategies; developing, implementing, operating,
        maintaining and improving the CRS, GDS, and National Directory and any other
        related or successor programs or systems; developing, implementing, maintaining
        and improving any video, computer-related or other technology for use or
        sale by
        Hyatt Place Hotels; planning, coordinating and conducting various sales efforts
        for Hyatt Place Hotels; market research and other research and development
        activities relating to improving the Hotel System; administering regional
        and
        multi-regional marketing and advertising programs, including purchasing trade
        journal and other media advertising and using advertising, promotion, and
        marketing agencies and other advisors to provide assistance; and supporting
        public relations and other advertising, promotion, and marketing activities.
        The
        Fund periodically will give you samples of advertising, marketing, and
        promotional formats and materials at no cost. We will sell you multiple copies
        of these materials at our direct cost of producing them, plus any related
        shipping, handling, and storage charges.

       

      We
        will
        account for the Fund separately from our other monies (but we need not segregate
        the Fund from our assets). We will not use the Fund for any of our general
        operating expenses. However, we may use the Fund to pay the reasonable salaries,
        benefits and expenses of personnel who manage, administer and/or perform
        services for or on behalf of the Fund, including those who account for
        Contributions; the Fund’s other administrative costs; travel expenses of
        personnel while they are on Fund business; meeting costs; rent, utilities,
        other
        overhead costs, and other costs for equipment, supplies and other materials
        relating or allocable to Fund business; and other expenses that we incur
        in
        activities reasonably related to administering or directing the Fund and
        its
        programs, including conducting market research and other research and
        development activities, public relations, preparing advertising, promotion,
        and
        marketing materials, collecting and accounting for Contributions, paying
        Providers for services relating to the CRS and GDS, and paying for technical
        and
        support functions.

       

      The
        Fund
        will not be our asset. Although the Fund is not a trust, we will hold all
        Contributions for the benefit of the contributors and use Contributions only
        for
        the purposes described in this Section. We do not owe any fiduciary obligation
        to you for administering the Fund or any other reason. The Fund may spend
        in any
        fiscal year more or less than the total Contributions in that year, borrow
        from
        us or others (paying reasonable interest) to cover deficits, or invest any
        surplus for future use. We will use all interest (if any) earned on
        Contributions to pay costs before using the Fund’s other assets.

       

      We
        will
        prepare an annual, unaudited statement of Fund collections and expenses and
        give
        you a copy of the statement upon written request. We may have the Fund audited
        periodically, at the Fund’s expense, by an independent certified public
        accountant. We may incorporate the Fund or operate it through a separate
        entity
        whenever we deem appropriate. The successor entity will have all of the rights
        and duties specified in this Section.

       

      We
        intend
        the Fund to maximize recognition of the Proprietary Marks, patronage of Hyatt
        Place Hotels, and the productive and efficient operation of the CRS and GDS,
        any
        related or successor programs or systems, and other technologies. Although
        we
        will try to use the Fund in a manner that will benefit all Hyatt Place Hotels,
        we need not ensure that Fund expenditures in or affecting any geographic
        area
        are proportionate or equivalent to Contributions by Hyatt Place Hotels operating
        in that geographic area or that any Hyatt Place Hotel benefits directly or
        in
        proportion to its Contributions from the programs and other products and
        services that the Fund finances.

       

      We
        have
        the right, but no obligation, to use collection agents and institute legal
        proceedings at the Fund’s expense to collect Contributions. We also may forgive,
        waive, settle, and compromise all claims by or against the Fund. Except as
        expressly provided in this Section, we assume no direct or indirect liability
        or
        obligation to you for collecting amounts due to, maintaining, directing,
        or
        administering the Fund.

       

      We
        may at
        any time defer or reduce Contributions of a Hyatt Place Hotel franchisee
        and,
        upon thirty (30) days’ prior written notice to you, reduce or suspend
        Contributions and operations for one or more periods of any length and terminate
        (and, if terminated, reinstate) the Fund. If we terminate the Fund, we will
        distribute all unspent monies to our franchisees, and to us and our affiliates,
        in proportion to their and our respective Contributions during the preceding
        twelve (12) month period.

       

      E. Application
        of Manual.
        You
        must comply with the terms of the Manual (other than any personnel and
        security-related policies and procedures, which are for your optional use).
        Because complete and detailed uniformity under many varying conditions might
        not
        be possible or practical, you acknowledge that we specifically reserve the
        right
        and privilege, as we deem best, to vary System Standards for any franchisee
        based upon the peculiarities of any condition or factors that we consider
        important to that franchisee’s successful operation. You have no right to
        require us to grant you a similar variation or accommodation.

       

      The
        Manual may include audiotapes, videotapes, compact disks, computer software,
        other electronic media, and/or written materials. It contains System Standards
        and information on your other obligations under this Agreement. We may modify
        the Manual periodically to reflect changes in System Standards. You agree
        to
        keep your Manual current and in a secure location at the Hotel. If there
        is a
        dispute over its contents, our master copy of the Manual controls. You agree
        that the Manual’s contents are confidential. If your copy of the Manual is lost,
        destroyed, or significantly damaged, you agree to obtain a replacement copy
        at
        our then applicable charge.

       

      At
        our
        option, we may post some or all of the Manual on a restricted website or
        extranet to which you will have access. If we do so, you agree to monitor
        and
        access the website or extranet for any updates to the Manual, System Standards,
        or other aspects of the Hotel System. Any passwords or other digital
        identifications necessary to access the Manual on a website or extranet will
        be
        deemed to be part of Confidential Information. We may require you to return
        a
        portion or the entire copy of the Manual given to you in paper or other tangible
        form after we post the Manual on a restricted website or extranet.

       

      F. Other
        Arrangements.
        We may
        arrange for development, marketing, operations, administration, technical,
        and
        support functions, facilities, services, and/or personnel with any other
        entity.
        We and our affiliates may use any facilities, programs, services, and/or
        personnel used in connection with the Hotel System in our and our affiliates’
other business activities, even if these other business activities compete
        with
        the Hotel or the Hotel System. You agree that we have the right to delegate
        the
        performance of any portion or all of our obligations under this Agreement
        to
        third-party designees, whether these designees are our affiliates, agents,
        or
        independent contractors with whom we contract to perform these obligations.
        If
        we do so, the third-party designees will be obligated to perform the delegated
        functions for you in compliance with this Agreement.

       

      G. Inspections/Compliance
        Assistance and Quality Assurance Program.
        We may
        inspect your Hotel at any time, with or without notice to you, to determine
        whether you and the Hotel are complying with the Hotel System, System Standards,
        and other terms and conditions of this Agreement. If you or the Hotel fails
        to
        comply with such obligations, we may require you, at your own cost (and in
        addition to our other rights and remedies), to correct the deficiencies within
        the reasonable time we establish. Your Hotel must participate in the quality
        assurance program that we develop and periodically modify (the “Quality
        Assurance Program”). As part of the Quality Assurance Program, we and/or our
        representatives and designees may evaluate whether the Hotel is complying
        with
        the Hotel System and System Standards. The primary means of operating the
        Quality Assurance Program will be evaluations conducted through stays at
        Hyatt
        Place Hotels. If we determine that the Hotel is not complying with the Hotel
        System, System Standards, and other terms and conditions of this Agreement
        and
        then instruct you to correct those deficiencies, we may charge you One Thousand
        Five Hundred Dollars ($1,500) for each follow-up or re-evaluation visit until
        the deficiencies have been fully corrected.

       

      H. Annual
        Conventions.
        We may,
        at our option, hold an annual convention for Hyatt Place Hotels or all Hyatt
        Select Hotels Group hotels (which currently include Hyatt Place Hotels and
        Hyatt
        Summerfield Suites hotels and may include other hotel brands in the future)
        (the
“Annual Convention”) at a location we designate. We may require your general
        manager and other key Hotel personnel to attend the Annual Convention. You
        must
        pay us our then current attendance fee for each person from your Hotel who
        attends the Annual Convention. You also must pay all expenses your attendees
        incur to attend the Annual Convention.

       

      I. Exercise
        of Our Judgment.
        We have
        the right to develop, operate, and change the Hotel System in any manner
        not
        specifically prohibited by this Agreement. Whenever we have reserved in this
        Agreement a right to take or to withhold an action, or to grant or decline
        to
        grant you the right to take or omit an action, we may, except as otherwise
        specifically provided in this Agreement, make our decision or exercise our
        rights based on information readily available to us and our judgment of what
        is
        in the best interests of us, Hyatt Place Hotel franchisees generally, or
        the
        Hotel System at the time our decision is made, without regard to whether
        we
        could have made other reasonable or even arguably preferable alternative
        decisions or whether our decision promotes our financial or other individual
        interest.

       

      5. Proprietary
        Rights.

       

      A. Ownership
        and Goodwill of Proprietary Marks, Copyrighted Materials, and Confidential
        Information.
        Our
        affiliate has licensed the Proprietary Marks, Copyrighted Materials, and
        Confidential Information to us to use and sublicense in franchising, developing,
        and operating Hyatt Place Hotels. 
        Your
        right to use the Proprietary Marks, Copyrighted Materials, and Confidential
        Information is derived only from this Agreement and is limited to your operating
        the Hotel according to this Agreement and all System Standards we prescribe
        during the Term. Your unauthorized use of the Proprietary Marks, Copyrighted
        Materials, and Confidential Information is a breach of this Agreement and
        infringes our and our affiliate’s rights in the Proprietary Marks, Copyrighted
        Materials, and Confidential Information. You acknowledge and agree that your
        use
        of the Proprietary Marks, Copyrighted Materials, and Confidential Information
        and any goodwill established by that use are exclusively for our and our
        affiliate’s benefit and that this Agreement does not confer any goodwill or
        other interests in the Proprietary Marks, Copyrighted Materials, and
        Confidential Information upon you (other than the right to operate the Hotel
        under this Agreement). You may not at any time during or after the Term contest
        or assist any other person in contesting the validity, or our and our
        affiliate’s ownership, of the Proprietary Marks, Copyrighted Materials, and
        Confidential Information.

       

      B. Limitations
        on your Use of Proprietary Marks.
        You
        agree to use the Proprietary Marks as the Hotel’s sole identification, except
        that you must identify yourself as its independent owner in the manner we
        periodically specify. You may not use any Proprietary Mark (1) as part of
        any corporate or legal business name, (2) with any prefix, suffix, or other
        modifying words, terms, designs, or symbols (other than logos we license
        to
        you), (3) in providing or selling any unauthorized services or products,
        (4) as part of any domain name, homepage, meta tags, keyword, electronic
        address, or otherwise in connection with a website or other electronic media
        (unless we have approved such use in advance), or (5) in any other manner
        we have not expressly authorized in writing. If we discover your unauthorized
        use of the Proprietary Marks, in addition to our other rights and remedies
        under
        this Agreement and applicable law, we may require you to destroy (with no
        reimbursement from us) all offending items reflecting such unauthorized
        use.

       

      You
        may
        not use any Proprietary Mark in advertising the transfer, sale, or other
        disposition of the Hotel or an ownership interest in you without our prior
        written consent, which we will not unreasonably withhold. You agree to display
        the Proprietary Marks prominently as we prescribe at the Hotel and on forms,
        advertising, supplies, and other materials we periodically designate. You
        agree
        to give the notices of trade and service mark registrations that we specify
        and
        to obtain any fictitious or assumed name registrations required under applicable
        law.

       

      C. Notification
        of Infringements and Claims.
        You
        agree to notify us immediately of any apparent infringement or challenge
        to your
        use of any Proprietary Mark, Copyrighted Materials, or Confidential Information,
        or of any person’s claim of any rights in any Proprietary Mark, Copyrighted
        Materials, or Confidential Information, and not to communicate with any person
        other than us, our affiliates, and our and their attorneys, and your attorneys,
        regarding any infringement, challenge, or claim. We and our affiliates may
        take
        the action we and they deem appropriate (including no action) and control
        exclusively any litigation, U.S. Patent and Trademark Office proceeding,
        or
        other administrative proceeding arising from any infringement, challenge,
        or
        claim or otherwise concerning any Proprietary Mark, Copyrighted Materials,
        or
        Confidential Information. You agree to sign any documents and take any other
        reasonable action that, in the opinion of our and our affiliates’ attorneys, are
        necessary or advisable to protect and maintain our and our affiliates’ interests
        in any litigation or Patent and Trademark Office or other proceeding or
        otherwise to protect and maintain our and our affiliates’ interests in the
        Proprietary Marks, Copyrighted Materials, and Confidential Information. We
        or
        our affiliate will reimburse your reasonable out-of-pocket costs for taking
        any
        requested action.

       

      D. Discontinuance
        of Use of Proprietary Marks.
        If it
        becomes advisable at any time for us and/or you to modify, discontinue using,
        and/or replace any Proprietary Mark and/or to use one or more additional,
        substitute, or replacement trade or service marks together with or in lieu
        of
        any previously-designated Proprietary Mark, you agree to comply with our
        directions within a reasonable time after receiving notice. Neither we nor
        our
        affiliates will reimburse you for your expenses of changing the Hotel’s signs,
        for any loss of revenue due to any modified or discontinued Proprietary Mark,
        or
        for your expenses of promoting a modified or substitute trademark or service
        mark.

       

      Our
        rights in this Section 5D apply to any and all of the Proprietary Marks (and
        any
        portion of any Proprietary Mark) that this Agreement authorizes you to use.
        We
        may exercise these rights at any time and for any reason, business or otherwise,
        we think best. You acknowledge both our right to take this action and your
        obligation to comply with our directions.

       

      E. Indemnification
        for Use of Proprietary Marks.
        We
        agree to reimburse you for all damages and expenses that you incur in any
        trademark infringement proceeding disputing your authorized use of any
        Proprietary Mark under this Agreement if you have timely notified us of,
        and
        comply with our directions in responding to, the proceeding. At our option,
        we
        and/or our affiliate(s) may defend and control the defense of any proceeding
        arising from your use of any Proprietary Mark under this Agreement.

       

      F. Confidential
        Information.
        We and
        our affiliates possess (and will continue to develop and acquire) Confidential
        Information, some of which constitutes trade secrets under applicable law,
        relating to developing and operating Hyatt Place Hotels, including:

       

      (1)
         site
        selection criteria;

       

      (2)
         the
        substance, design, and construction of Hyatt Place Hotels;

       

      (3)
         training
        and operations materials and manuals, including the Manual;

       

      
        	 	
                (4)
                  

              	
                methods,
                  formats, specifications, standards, systems, procedures, sales
                  and
                  marketing techniques, knowledge, and experience used in developing
                  and
                  operating Hyatt Place Hotels;

              

      

       

      
        	 	
                (5)

              	
                marketing
                  and advertising programs for Hyatt Place
                  Hotels;

              

      

       

      
        	 	
                (6)
                  

              	
                information
                  regarding the Hotel’s guests;

              

      

       

      
        	 	
                (7)
                  

              	
                knowledge
                  of specifications for and suppliers of FF&E and other products and
                  supplies;

              

      

       

      
        	 	
                (8)
                  

              	
                any
                  computer software or other technology that is proprietary to us
                  or the
                  Hotel System, including digital passwords and identifications and
                  any
                  source code of, and data, reports, and other printed materials
                  generated
                  by, the software or other
                  technology;

              

      

       

      
        	 	
                (9)
                  

              	
                knowledge
                  of the operating results and financial performance of Hyatt Place
                  Hotels
                  other than the Hotel; and

              

      

       

      
        	 	
                (10)
                  

              	
                graphic
                  designs and related intellectual property. All information we obtain
                  from
                  you or about the Hotel or its guests pursuant to this Agreement,
                  or any
                  agreement ancillary to this Agreement (including agreements relating
                  to
                  the CRS and other software systems we provide or require), or otherwise
                  related to the Hotel, will become part of Confidential information
                  and our
                  property, which we then may use for any reason we deem necessary
                  or
                  appropriate. However, you may at any time during or after the Term
                  use to
                  the extent lawful and at your own risk any information and data
                  stored in
                  your Hotel’s property management system
                  database.

              

      

       

      (11) You
        acknowledge and agree that you will not acquire any interest in Confidential
        Information, other than the right to use certain Confidential Information
        as we
        specify while operating the Hotel during the Term, and that Confidential
        Information is proprietary, includes our and our affiliate’s trade secrets, and
        is disclosed to you only on the condition that you agree, and you hereby
        do
        agree, that you:

       

      (a)
         will
        not
        use Confidential Information in any other business or capacity;

       

      
        	 	
                (b)
                  

              	
                will
                  keep confidential each item deemed to be a part of Confidential
                  Information, both during and after the Term (afterward for as long
                  as the
                  item is not generally known in the hotel
                  industry);

              

      

       

      
        	 	
                (c)
                  

              	
                will
                  not make unauthorized copies of any Confidential Information disclosed
                  via
                  electronic medium or in written or other tangible form;
                  and

              

      

       

      
        	 	
                (d)
                  

              	
                will
                  adopt and implement reasonable procedures to prevent unauthorized
                  use or
                  disclosure of Confidential
                  Information.

              

      

       

      Confidential
        Information does not include information, knowledge, or know-how that you
        can
        demonstrate lawfully came to your attention before we or our affiliate provided
        it to you directly or indirectly; that, at the time we or our affiliate
        disclosed it to you, already had lawfully become generally known in the hotel
        industry through publication or communication by others (without violating
        an
        obligation to us or our affiliate); or that, after we or our affiliate disclose
        it to you, lawfully becomes generally known in the hotel industry through
        publication or communication by others (without violating an obligation to
        us or
        our affiliate). However, if we include any matter in Confidential Information,
        anyone who claims that it is not Confidential Information must prove that
        one of
        the exclusions provided in this paragraph is satisfied.

       

      All
        ideas, concepts, techniques, or materials relating to a Hyatt Place Hotel,
        whether or not protectable intellectual property and whether created by or
        for
        you or your owners or employees, must be promptly disclosed to us and will
        be
        deemed to be our and our affiliate’s sole and exclusive property, part of the
        Hotel System, and works made-for-hire for us and our affiliate. If any item
        does
        not qualify as a “work made-for-hire” for us and our affiliate, by this
        paragraph you assign ownership of that item, and all related rights to that
        item, to us and agree to take whatever action (including signing assignment
        or
        other documents) we request to evidence our ownership or to help us obtain
        intellectual property rights in the item.

       

      6. Records
        and Audits

       

      A. Reports.
        At our
        request, you must prepare and deliver to us daily, monthly, quarterly, and
        annual operating statements, profit and loss statements, balance sheets,
        and
        other reports we require, prepared in the form, by the methods, and within
        the
        timeframes we specify in the Manual. The reports must contain all information
        we
        require and be certified as accurate in the manner we require. By the tenth
        (10th)
        day of
        each month, you agree to prepare and send us a statement for the previous
        month,
        certified by your chief financial or principal accounting officer, listing
        Gross
        Rooms Revenue, other Hotel revenues, room occupancy rates, reservation data,
        the
        amounts currently due under Section 3D, and other information we deem useful
        in
        connection with the Hotel System (the “Data”). The statement will be in the form
        and contain the detail we reasonably request, will be our property, and may
        be
        used by us for all reasonable purposes.

       

      B. Preparation
        and Maintenance of Records.
        You
        agree to:

       

      
        	 	
                (1)

              	
                prepare
                  on a current basis in a form satisfactory to us, and preserve for
                  at least
                  four (4) years, complete and accurate records concerning Gross
                  Rooms
                  Revenue and all financial, operating, marketing, and other aspects
                  of the
                  Hotel; and

              

      

       

      
        	 	
                (2)
                  

              	
                maintain
                  an accounting system that fully and accurately reflects all financial
                  aspects of the Hotel, including books of account, tax returns,
                  governmental reports, register tapes, daily reports, profit and
                  loss and
                  cash flow statements, balance sheets, and complete quarterly and
                  annual
                  financial statements.

              

      

       

      We
        reserve the right to access your computer system independently to obtain
        sales
        information, occupancy information, and other Data. You must send us upon
        our
        request any information that we do not access independently from your computer
        system.

       

      C. Audit.
        We may
        at any time during your regular business hours, and without prior notice
        to you,
        examine your and the Hotel’s business, bookkeeping, and accounting records,
        sales and income tax records and returns, and other records. You agree to
        cooperate fully with our representatives and independent accountants in any
        examination. If any examination discloses an understatement of the Hotel’s Gross
        Rooms Revenue, you agree to pay us, within fifteen (15) days after receiving
        the
        examination report, the Royalty Fees and Contributions due on the amount
        of the
        understatement, the late fee, and interest on the understated amounts from
        the
        date originally due until the date of payment. Furthermore, if an examination
        is
        necessary due to your failure to furnish reports, supporting records, or
        other
        information as required, or to furnish these items on a timely basis, or
        if our
        examination reveals a Royalty Fee or Contribution underpayment to us of three
        percent (3%) or more of the total amount owed during any six (6) month period,
        or that you willfully understated the Hotel’s Gross Rooms Revenue, you agree to
        reimburse us for the costs of the examination, including the charges of
        attorneys and independent accountants and the travel expenses, room and board,
        and compensation of our employees. These remedies are in addition to our
        other
        remedies and rights under this Agreement and applicable law.

       

      D. Annual
        Financial Information.
        At our
        request, not later than ninety (90) days after the end of your fiscal year,
        you
        must send us one or more of the following as we may request, certified by
        your
        chief financial or principal accounting officer to be true and correct: complete
        financial statements for that fiscal year (including a balance sheet, statement
        of operations and statement of cash flow) prepared in accordance with generally
        accepted accounting principles consistently applied; your income tax returns
        for
        the Hotel for that year; and statements reflecting all Gross Rooms Revenue
        and
        all sources and amounts of other Hotel revenue generated during the year.
        Any
        false certification shall be a material breach of this Agreement. At our
        request
        from time to time, you also agree to provide us with those operating statistics
        for the Hotel that we specify. We may require you to have audited financial
        statements prepared annually during the Term.

       

      7. Indemnity
        and Insurance.

       

      A. Our
        and Your Relationship.
        We and
        you may not make any express or implied agreements, warranties, guarantees,
        or
        representations, or incur any debt, in the name or on behalf of the other
        or
        represent that our respective relationship is other than franchisor and
        franchisee. We will not be obligated for any damages to any person or property
        directly or indirectly arising out of the Hotel’s operation or the business you
        conduct under this Agreement.

       

      B. Your
        Indemnification of Us.
        In
        addition to your obligation under this Agreement to procure and maintain
        insurance, you agree to indemnify, defend, and hold harmless us, our affiliates,
        and our and their respective owners, officers, directors, agents, employees,
        representatives, successors, and assigns (the “Indemnified Parties”) against,
        and to reimburse any one or more of the Indemnified Parties for, any and
        all
        claims, obligations, and damages directly or indirectly arising out of,
        resulting from, or in connection with

       

      (1) the
        application you submitted to us for the rights granted under this
        Agreement,

       

      
        	 	
                (2)

              	
                the
                  construction, development, use, occupancy, or operation of the
                  Hotel,
                  including any claim or allegation relating to the Americans with
                  Disabilities Act or any similar law concerning public accommodations
                  for
                  persons with disabilities,

              

      

       

      
        	 	
                (3)

              	
                any
                  bodily injury, personal injury, death, or property damage suffered
                  by any
                  Hotel guest, customer, visitor, or
                  employee,

              

      

       

      
        	 	
                (4)

              	
                claims
                  alleging either intentional or negligent conduct, acts, or omissions
                  by
                  you or us relating to the operation of the Hotel or the Hotel System,
                  and

              

      

       

      
        	 	
                (5)

              	
                your
                  breach of the terms and conditions of this
                  Agreement.

              

      

       

      For
        purposes of this indemnification, “claims” include all obligations, damages
        (actual, consequential, or otherwise), and costs that any Indemnified Party
        reasonably incurs in defending any claim against it, including reasonable
        accountants’, arbitrators’, attorneys’, and expert witness fees, costs of
        investigation and proof of facts, court costs, travel and living expenses,
        and
        other expenses of litigation, arbitration, or alternative dispute resolution,
        regardless of whether litigation, arbitration, or alternative dispute resolution
        is commenced. Each Indemnified Party may defend any claim against it at your
        expense and agree to settlements or take any other remedial, corrective,
        or
        other actions, provided that the Indemnified Party will seek your advice
        and
        counsel, and keep you informed, with regard to any proposed or contemplated
        settlement.

       

      The
        obligations under this Subsection will continue in full force and effect
        subsequent to and notwithstanding this Agreement’s expiration or termination. An
        Indemnified Party need not seek recovery from any insurer or other third
        party,
        or otherwise mitigate its losses and expenses, in order to maintain and recover
        fully a claim against you under this subparagraph. You agree that a failure
        to
        pursue a recovery or mitigate a loss will not reduce or alter the amounts
        that
        an Indemnified Party may recover from you under this Subsection.

       

      If
        separate counsel is appropriate in our opinion because of actual or potential
        conflicts of interest, we may retain attorneys and/or independently defend
        any
        claim, action, or alleged claim or action at your sole expense. No party
        may
        settle any claim or action that could have an adverse effect on us, the Hotel
        System, or other franchisees without our prior approval.

       

      You
        have
        no obligation to indemnify under this Subsection if a court of competent
        jurisdiction makes a final decision not subject to further appeal that we
        or our
        employees directly engaged in willful misconduct or intentionally caused
        the
        property damage or bodily injury that is the subject of the claim, so long
        as
        the claim is not asserted on the basis of theories of vicarious liability
        (including agency, apparent agency, or employment) or our failure to compel
        you
        to comply with this Agreement (which are claims for which we are entitled
        to
        indemnification under this Section 7B). You shall notify us immediately
        (but not later than five (5) days following your receipt of notice) of any
        claim, action, or potential claim or action naming any Indemnified Party
        as a
        defendant or potential defendant (the “Indemnification Notice”). The
        Indemnification Notice shall include copies of all correspondence or court
        papers relating to the claim or action. Your obligation to indemnify us shall
        not be limited in any way by reason of any insurance that we
        maintain.

       

      C. Insurance.
        At your
        expense, you must procure and at all times during the Term maintain such
        insurance as may be required by the terms of any lease or mortgage on the
        premises where the Hotel is located, and in any event no less than the
        following:

       

      (1) Property
        Insurance

       

      (a) Property
        insurance (or builder’s risk insurance during any period of construction) on the
        Hotel building(s) and contents against loss or damage by fire, lightning,
        windstorm, and all other risks covered by the usual all-risk policy form,
        all in
        an amount not less than ninety percent (90%) of the full replacement cost
        thereof and a waiver of co-insurance and agreed amount endorsement. Such
        policy
        shall also include coverage for landscape improvements and law and ordinance
        coverage in reasonable amounts.

       

      (b) Boiler
        and machinery insurance against loss or damage caused by machinery breakdown
        or
        explosion of boilers or pressure vessels to the extent applicable to the
        Hotel.

       

      (c) Business
        interruption insurance covering at least twelve (12) months’ loss of profits and
        necessary continuing expenses for interruptions caused by any occurrence
        covered
        by the insurance referred to in subsections (a) and (b) above.

       

      (d) If
        the
        Hotel is located in whole or in part within an area identified by the federal
        government as having a special flood hazard, flood insurance in an amount
        not
        less than the maximum coverage available under the National Flood Insurance
        Program and excess flood coverage with reasonable limits, including business
        interruption coverage for at least twelve (12) months’ loss of profits and
        necessary continuing expenses.

       

      (e) If
        the
        Hotel is located in an “earthquake prone zone” as determined by the U.S.
        Geological Survey, earthquake insurance in an amount not less than the probable
        maximum loss less any applicable deductibles, including business interruption
        coverage for at least twelve (12) months’ loss of profits and necessary
        continuing expenses, all as determined by a recognized earthquake engineering
        firm.

       

      
        	 	
                (2)

              	
                Workers’
                  Compensation insurance in statutory amounts on all Hotel employees
                  and
                  Employer’s Liability Insurance in amounts not less than $1,000,000 per
                  accident/disease.

              

      

       

      
        	 	
                (3)

              	
                Comprehensive
                  or Commercial General Liability Insurance for any claims or losses
                  arising
                  or resulting from or pertaining to the Hotel or its operation,
                  with
                  combined single limits of $1,000,000 per each occurrence for bodily
                  injury
                  and property damage. If the general liability coverages contain
                  a general
                  aggregate limit, such limit shall be not less than $2,000,000,
                  and it
                  shall apply in total to the Hotel only by specific endorsement.
                  Such
                  insurance shall be on an occurrence policy form and include premises
                  and
                  operations, independent contractors, blanket contractual, products
                  and
                  completed operations, advertising injury, employees as additional
                  insureds, broad form property damage, personal injury, incidental
                  medical
                  malpractice, severability of interests, innkeeper’s and safe deposit box
                  liability, and explosion, collapse and underground coverage during
                  any
                  construction.

              

      

       

      
        	 	
                (4)

              	
                Liquor
                  Liability (applicable when you distribute, sell, serve, or furnish
                  alcoholic beverages) for combined single limits of bodily injury
                  and
                  property damage of not less than $1,000,000 each
                  occurrence.

              

      

       

      
        	 	
                (5)

              	
                Business
                  Auto Liability, including owned, non-owned and hired vehicles for
                  combined
                  single limits of bodily injury and property damage of not less
                  than
                  $1,000,000 each occurrence.

              

      

       

      
        	 	
                (6)

              	
                Umbrella
                  Excess Liability on a following form in amounts not less than $24,000,000
                  if the Hotel is four to six stories in height above ground or $14,000,000
                  if the Hotel is three stories or less in height in excess of the
                  liability
                  insurance required under subsections (2) through (5) above. We
                  may require
                  you to increase the amount of coverage if the number of floors
                  of the
                  Hotel above ground is greater than six or if, in our judgment,
                  such an
                  increase is warranted.

              

      

       

      
        	 	
                (7)

              	
                Such
                  other insurance as may be customarily carried by other hotel operators
                  on
                  hotels similar to the Hotel.

              

      

       

      We
        may
        periodically increase the amounts of coverage required under these insurance
        policies and/or require different or additional insurance coverage at any
        time
        to reflect inflation, identification of new risks, changes in law or standards
        of liability, higher damage awards or relevant changes in circumstances.
        You
        also must satisfy the following general insurance requirements:

       

      (i) All
        insurance must by endorsement specifically name us and any affiliates that
        we
        periodically designate (and our and their employees and agents) as unrestricted
        additional insureds.

       

      (ii) Any
        deductibles or self-insured retentions that you maintain (excluding deductibles
        for high hazard risks in high hazard geological zones, such as earthquake
        and
        windstorm, which shall be as required by the insurance carrier) shall not
        exceed
        $25,000, or such higher amount as we (at our option) may approve in writing
        in
        advance.

       

      (iii) You
        must
        purchase each policy from an insurance company reasonably acceptable to us
        and
        licensed, authorized or registered to do business in the state where the
        Hotel
        is located. However, this licensing requirement shall not apply to those
        insurers providing Umbrella Excess Liability above $5,000,000 under Subsection
        (6) above.

       

      (iv) All
        required insurance must be specifically endorsed to provide that the coverages
        will be primary and that any insurance carried by any additional insured
        shall
        be excess and non-contributory.

       

      (v) All
        policies must provide that they may not be canceled, non-renewed, or materially
        changed without at least thirty (30) days’ prior written notice to
        us.

       

      (vi) You
        may
        satisfy your insurance obligations under blanket insurance policies that
        cover
        your and your affiliates’ other properties so long as such blanket insurance
        fulfills the requirements in this Agreement.

       

      (vii) You
        must
        deliver to us a certificate of insurance (or certified copy of such insurance
        policy if we request) evidencing the coverages required above and setting
        forth
        the amount of any deductibles. You must deliver to us renewal certificates
        of
        insurance (or certified copies of such insurance policy if we request) not
        less
        than ten (10) days prior to their respective inception dates.

       

      (viii) Your
        obligation to maintain insurance shall not relieve you of your obligations
        under
        Section 7B.

       

      (ix) All
        insurance must be satisfactory to us and comply with the System Standards.
        If
        you fail for any reason to procure or maintain the insurance required by
        this
        Agreement, we shall have the right and authority (although without any
        obligation to do so) to immediately procure such insurance and to charge
        you the
        cost together with a reasonable fee for our expenses.

       

      8. Transfer.

       

      A. Transfer
        by Us.
        You
        acknowledge that we maintain a staff to manage and operate the Hotel System
        and
        that staff members can change as employees come and go. You represent that
        you
        have not signed this Agreement in reliance on any particular owner, director,
        officer, or employee remaining with us in that capacity. We may change our
        ownership or form and/or assign this Agreement and any other agreement to
        a
        third party without restriction. After our assignment of this Agreement to
        a
        third party who expressly assumes the obligations under this Agreement, we
        no
        longer will have any performance or other obligations under this
        Agreement.

       

      B. Transfer
        by You—Defined.
        You
        understand and acknowledge that the rights and duties this Agreement creates
        are
        personal to you and your owners and that we have granted you the franchise
        in
        reliance upon our perceptions of your and your owners’ collective character,
        skill, aptitude, attitude, business ability, and financial capacity.
        Accordingly, neither this Agreement (or any interest in this Agreement),
        the
        Hotel or substantially all of its assets, or an ownership interest in you
        or
        your owners (if such owners are legal entities) may be transferred without
        our
        prior written approval, which will not be unreasonably withheld if the
        conditions for transfer contained in this Section 8 are satisfied. A
        transfer of the Hotel’s ownership, possession, or control, or substantially all
        of its assets, may be made only with a transfer of this Agreement. Any transfer
        without our approval is a breach of this Agreement and has no effect, meaning
        that you will continue to be obligated to us for all of your obligations
        under
        this Agreement.

       

      For
        purposes of this Agreement, a “Controlling Ownership Interest” in you or one of
        your owners (if that owner is a legal entity) means the greater of: (a) the
        percent of the voting shares or other voting rights that results from dividing
        one hundred percent (100%) of the ownership interests by the number of owners.
        In the case of a proposed transfer of an ownership interest in you or one
        of
        your owners, the determination of whether a “Controlling Ownership Interest” is
        involved must be made as of both immediately before and immediately after
        the
        proposed transfer to see if a “Controlling Ownership Interest” will be
        transferred (because of the number of owners before the proposed transfer)
        or
        will be deemed to have been transferred (because of the number of owners
        after
        the proposed transfer); or (b) twenty percent (20%) of the voting shares or
        other voting rights. In addition, regardless of whether the thresholds in
        (a) or
        (b) are satisfied, any transfer of effective control of the power to direct
        or
        cause the direction of your (or your owners’) management and policies to someone
        who did not possess such control as of the Effective Date constitutes the
        transfer of a Controlling Ownership Interest.

       

      In
        this
        Agreement, the term “transfer” includes a voluntary, involuntary, direct, or
        indirect assignment, sale, gift, or other disposition of any interest in
        this
        Agreement; you; the Hotel or substantially all of its assets; any of your
        owners
        (if such owner is a legal entity); or any right to receive all or a portion
        of
        the Hotel’s, your, or your owner’s profits or losses. An assignment, sale, gift,
        or other disposition includes the following events: (1) transfer of ownership
        of
        capital stock, a partnership or membership interest, or another form of
        ownership interest; (2) merger or consolidation or issuance of additional
        securities or other forms of ownership interest; (3) any sale of a security
        convertible to an ownership interest; (4) transfer of an interest in you,
        this Agreement, the Hotel or substantially all of its assets, your owner,
        or any
        right to receive all or a portion of the Hotel’s, your, or your owner’s profits
        or losses in a divorce, insolvency, or entity dissolution proceeding or
        otherwise by operation of law; (5) if one of your owners, or an owner of
        one of
        your owners, dies, a transfer of an interest in you, this Agreement, the
        Hotel
        or substantially all of its assets, your owner, or any right to receive all
        or a
        portion of the Hotel’s, your, or your owner’s profits or losses by will,
        declaration of or transfer in trust, or under the laws of intestate succession;
        or (6) pledge of this Agreement (to someone other than us) or of an ownership
        interest in you or one of your owners as security, foreclosure upon the Hotel,
        or your transfer, surrender, or loss of the Hotel’s possession, control, or
        management. You may mortgage the Hotel (but not this Agreement) to a lender
        that
        finances your acquisition, development, and/or operation of the Hotel without
        having to obtain our prior written approval. However, we may require the
        lender
        to agree to certain procedures or grant us certain rights if you default
        and the
        lender wishes to foreclose on its security interest.

       

      C. Conditions
        for Approval of Transfer.
        If you
        (and your owners) are substantially complying with this Agreement, then,
        subject
        to the other provisions of this Section 8, we will approve a transfer that
        meets all of the requirements in this Section 8C. A non-Controlling Ownership
        Interest in you or your owners (determined as of the date on which the proposed
        transfer will occur) may be transferred if the proposed transferee and its
        direct and indirect owners (if the transferee is a legal entity) are of good
        character and otherwise meet our then applicable standards for owners of
        Hyatt
        Place Hotel franchisees. You also must pay us Seven Thousand Five Hundred
        Dollars ($7,500) for processing and related costs we incur.

       

      If
        the
        proposed transfer is of this Agreement or a Controlling Ownership Interest
        in
        you or one of your owners, or is one of a series of transfers (regardless
        of the
        time period over which these transfers take place) that in the aggregate
        transfer this Agreement or a Controlling Ownership Interest in you or one
        of
        your owners, then all of the following conditions must be met before or
        concurrently with the effective date of the transfer:

       

      
        	 	
                (1)

              	
                the
                  transferee has the necessary business experience, aptitude, and
                  financial
                  resources to operate the Hotel and meets our then applicable standards
                  for
                  Hyatt Place Hotel franchisees. The proposed transferee must submit
                  to us a
                  complete application for a new franchise agreement (the “Change of
                  Ownership Application”), accompanied by payment of our then current
                  application fee (although no such fee is due if the transfer is
                  to the
                  spouse, child, parent, or sibling of the owner(s) or from one owner
                  to
                  another). If we do not approve the Change of Ownership Application,
                  we
                  will refund any application fee paid, less Seven Thousand Five
                  Hundred
                  Dollars ($7,500) for processing
                  costs.

              

      

       

      We
        will
        process the Change of Ownership Application according to our then current
        procedures, including review of criteria and requirements regarding upgrading
        the Hotel, credit, background investigations, operations ability and capacity,
        prior business dealings, market feasibility, guarantees, and other factors
        concerning the proposed transferee(s) (and, if applicable, its owner(s))
        we deem
        relevant. We have sixty (60) days from receipt of the completed and signed
        application to consent or withhold our consent to the proposed transfer.
        If we
        approve the Change of Ownership Application, the proposed owner will be required
        to pay any other applicable fees and charges we then impose for new Hyatt
        Place
        Hotel franchisees;

       

      
        	 	
                (2)

              	
                you
                  have paid all Royalty Fees, Contributions, and other amounts owed
                  to us,
                  our affiliates, and third party vendors; have submitted all required
                  reports and statements; and have not violated any material provision
                  of
                  this Agreement or any other agreement with us during both the sixty
                  (60)
                  day period before you requested our consent to the transfer and
                  the period
                  between your request and the effective date of the
                  transfer;

              

      

       

      
        	 	
                (3)

              	
                the
                  transferee’s general manager and other key personnel we specify, if
                  different from your general manager and key personnel, satisfactorily
                  complete our required training
                  programs;

              

      

       

      
        	 	
                (4)

              	
                the
                  transferee and its owners shall (if the transfer is of this Agreement),
                  or
                  you and your owners shall (if the transfer is of a Controlling
                  Ownership
                  Interest in you or one of your owners), sign our then current form
                  of
                  franchise agreement and related documents (including guarantees
                  and
                  assumptions of obligations), any and all of the provisions of which
                  may
                  differ materially from any and all of those contained in this Agreement,
                  including the Royalty Fee and Contribution, and the term of which
                  franchise agreement will be equal to the remaining unexpired portion
                  of
                  the Term;

              

      

       

      (5) you
        (and
        your transferring owners) sign our then current form of termination agreement
        and a general release, in a form satisfactory to us, of any and all claims
        against us and our owners, affiliates, officers, directors, employees, and
        agents;

       

      (6) we
        have
        determined that the purchase price and payment terms will not adversely affect
        the transferee’s operation of the Hotel;

       

      (7) you
        sign
        all documents we request evidencing your agreement to remain liable for all
        obligations to us and our affiliates existing before the effective date of
        the
        transfer; and

       

      (8) you
        and
        your transferring owners will not directly or indirectly at any time or in
        any
        manner identify yourself or themselves in any business as a current or former
        Hyatt Place Hotel or as one of our franchisees; use any Proprietary Mark,
        any
        colorable imitation of a Proprietary Mark, or other indicia of a Hyatt Place
        Hotel in any manner or for any purpose; or utilize for any purpose any trade
        name, trade or service mark, or other commercial symbol that suggests or
        indicates a connection or association with us.

       

      We
        may
        review all information regarding the Hotel that you give the proposed
        transferee, correct any information that we believe is inaccurate, and give
        the
        transferee copies of any reports that you have given us or we have made
        regarding the Hotel.

       

      D. Transfers
        of Equity Interest in You Upon Death.
        Upon
        the death or mental incompetency of a person with a Controlling Ownership
        Interest in you, that person’s executor, administrator, or personal
        representative (“Representative”) must, within three (3) months after the date
        of death or mental incompetency, transfer the owner’s interest in you to a third
        party, subject to our approval and the conditions set forth in Section 8C.
        In
        the case of a transfer by devise or inheritance, if the heirs or beneficiaries
        cannot meet the conditions of Section 8C within this three (3) month period,
        the
        Representative will have six (6) months from the date of death or mental
        incompetency to dispose of the interest, subject to our approval and the
        conditions set forth in Section 8C. We may terminate this Agreement if this
        required transfer fails to occur within the required timeframe.

       

      E. Registration
        of a Proposed Transfer of Equity Interests.
        Subject
        to this Agreement’s other provisions, ownership interests in you or in owners of
        a Controlling Ownership Interest in you may be offered to the public only
        with
        our prior written consent. All materials required by federal or state law
        for
        the sale of any interest in you or your affiliates, including any materials
        to
        be used in an offering exempt from registration under federal or state
        securities laws, must be submitted to us for review before their distribution
        to
        prospective investors or filing with any government agency. No such offering
        may
        imply or state (by use of the Proprietary Marks or otherwise) that we are
        participating as an underwriter, issuer, or your representative, suggest
        that we
        endorse your offering or agree with any financial projections, or otherwise
        contain any information about us, this Agreement and our relationship with
        you,
        or the Hotel System that we disapprove. Our review and approval of the materials
        will not in any way be our endorsement of the offering or representation
        that
        you have complied or are complying with applicable laws. Our approval will
        mean
        only that we believe the references in the offering materials to us, this
        Agreement and our relationship with you, and the Hotel System, and the use
        in
        the offering materials of the Proprietary Marks, are accurate and acceptable.
        You must pay us a non-refundable fee equal to Five Thousand Dollars ($5,000)
        to
        review each proposed offering. We may require changes to your offering materials
        for the purposes specified above and have the right to request and receive
        a
        full indemnification from all participants in the offering before issuing
        our
        consent.

       

      F. Non-Waiver
        of Claims.
        Our
        consent to a transfer of this Agreement and the Hotel, or an ownership interest
        in you or your owners, is not a representation of the fairness of the terms
        of
        any contract between you (or the owners) and the transferee, a guarantee
        of the
        Hotel’s or transferee’s prospects of success, or a waiver of any claims we have
        against you (or the owners) or of our right to demand the transferee’s full
        compliance with this Agreement.

       

      9. Condemnation
        and Casualty.

       

      A. Condemnation.
        You
        must immediately notify us of any proposed taking of any portion of the Hotel
        by
        eminent domain or condemnation. If we agree that all or a substantial portion
        of
        the Hotel is to be taken, we may (but have no obligation to) allow you to
        transfer this Agreement to a new location you select within four (4) months
        after the taking. If we approve the new location, and if within eighteen
        (18)
        months after closing the Hotel you open a new Hyatt Place Hotel at the new
        location according to our specifications and this Agreement’s other terms and
        conditions, then the new Hyatt Place Hotel shall be deemed to be the Hotel
        franchised under this Agreement. If a condemnation takes place, and you do
        not
        open a new hotel within such eighteen (18) month period, we may terminate
        this
        Agreement immediately upon notice to you but will not require you to pay
        us any
        liquidated damages. However, if a condemnation takes place and you open a
        new
        hotel but that new hotel is not a Hyatt Place Hotel or does not for whatever
        reason become the Hotel franchised under this Agreement (or if it is evident
        to
        us that this will be the case), we may terminate this Agreement immediately
        upon
        notice to you, and you will be required to pay us liquidated damages equal
        to
        Four Thousand Dollars ($4,000) multiplied by the number of guest rooms at
        the
        new hotel.

       

      B. Casualty.
        If the
        Hotel is damaged by fire or casualty, you must repair the damage according
        to
        our System Standards and this Agreement’s other terms and conditions. If the
        damage or repair requires you to close all or any portion of the Hotel, you
        must:

       

      (1)
         notify
        us
        immediately;

       

      (2)
         commence
        reconstruction within four (4) months after closing; and

       

      
        	 	
                (3)
                  

              	
                reopen
                  for continuous business operations as a Hyatt Place Hotel as soon
                  as
                  practicable (but in any event within twenty-four (24) months) after
                  closing the Hotel but not without providing us at least ten (10)
                  days’
                  advance notice of the proposed reopening
                  date.

              

      

       

      If
        the
        Hotel is reopened, but not in accordance with this Section 9B (including
        by your
        failure to reopen the Hotel as a Hyatt Place Hotel), we may terminate this
        Agreement and exercise the rights under either Section 10E(1) or (2). However,
        if the Hotel is not reopened (either as a Hyatt Place Hotel or under any
        other
        brand) in accordance with this Section 9B, we may terminate this Agreement,
        and
        you will be required to pay us liquidated damages as provided under Section
        10E(2), provided, however, that the amount of liquidated damages will not
        exceed
        the amount of any insurance proceeds you receive. When you pay the liquidated
        damages, you must show us documentation evidencing the insurance proceeds
        you
        have received.

       

      C. Extensions
        of Term.
        The
        Term will be extended for the period of time during which the Hotel is not
        operating due to fire or other casualty. You need not make any payments under
        Sections 3D(4)(a) and (b) while the Hotel is closed by reason of condemnation
        or
        casualty unless you receive insurance proceeds.

       

      10. Termination.

       

      A. Expiration
        of Term.
        This
        Agreement will expire without notice effective twenty (20) years from the
        Opening Date, subject to its earlier termination as set forth in this Agreement.
        Subject to your renewal rights in Section 11, when the Term expires, you
        must
        comply with our de-identification procedures set forth in Section 10D of
        this
        Agreement and/or in the Manual (the “De-Identification
        Procedures”).

       

      B. Termination
        by Franchisee.
        You
        have no right to terminate this Agreement at any time, under any circumstances,
        before the Term expires. You must operate the Hotel within the Hotel System
        in
        compliance with this Agreement for the full Term.

       

      C. Termination
        by Us.

       

      
        	 	
                (1)

              	
                Default
                  with Opportunity to Cure.
                  We have the right to terminate this Agreement, effective on the
                  date
                  stated in our written notice (or the earliest date permitted by
                  applicable
                  law), if:

              

      

       

      
        	 	
                (a)

              	
                you
                  fail to pay us or any of our affiliates any fees or other amounts
                  due
                  under this Agreement or any other agreement between you and us
                  and any of
                  our affiliates and do not cure that default within ten (10) days
                  after
                  delivery of our written notice of default to
                  you;

              

      

       

      
        	 	
                (b)

              	
                you
                  fail to pay when due any financial obligation to a Provider and
                  do not
                  cure that default within thirty (30) days after delivery of our
                  written
                  notice of default to you;

              

      

       

      
        	 	
                (c)

              	
                you
                  fail to comply with any other provision of this Agreement, the
                  Manual, or
                  any System Standard and do not cure that default within thirty
                  (30) days
                  after delivery of our written notice of default to
                  you;

              

      

       

      
        	 	
                (d)

              	
                you
                  fail to comply with any other agreement with us or our affiliates
                  relating
                  to the Hotel and do not cure that default within thirty (30) days
                  (or such
                  shorter time period that the other agreement specifies for curing
                  that
                  default) after delivery of our written notice of default to
                  you;

              

      

       

      
        	 	
                (e)

              	
                you
                  fail to send us a copy of the recorded deed, an executed lease
                  for at
                  least the Term, or other evidence satisfactory to us of your right
                  to
                  control the Hotel’s premises before you commence construction or any
                  material renovation of the Hotel or within ten (10) days after
                  our request
                  for such information or materials;
                  or

              

      

       

      
        	 	
                (f)

              	
                you
                  do not buy, maintain, or send us evidence of required insurance
                  coverage
                  and do not cure that default within ten (10) days after delivery
                  of our
                  written notice of default to you.

              

      

       

      
        	 	
                (2)

              	
                Default
                  Without Opportunity to Cure (Immediate Termination by
                  Us).
                  We may terminate this Agreement immediately, without giving you
                  an
                  opportunity to cure the default, effective upon delivery of written
                  notice
                  to you (or such later date as required by law),
                  if:

              

      

       

      
        	 	
                (a)

              	
                you
                  or any guarantor of your obligations (a “Guarantor”) admits its inability
                  to pay its debts as they become due or makes a general assignment
                  for the
                  benefit of creditors;

              

      

       

      
        	 	
                (b)

              	
                you
                  or any Guarantor commences or consents to any case, proceeding,
                  or action
                  seeking: (i) reorganization, arrangement, adjustment, liquidation,
                  dissolution, or composition of debts under any law relating to
                  bankruptcy,
                  insolvency, reorganization, or relief of debtors; or (ii) appointment
                  of a receiver, trustee, custodian, or other official for any portion
                  of
                  its property;

              

      

       

      
        	 	
                (c)

              	
                you
                  or any Guarantor takes any corporate or other action to authorize
                  any of
                  the actions set forth above in Section 10C(2)(a) or
                  10C(2)(b);

              

      

       

      
        	 	
                (d)

              	
                any
                  case, proceeding, or other action against you or any Guarantor
                  is
                  commenced seeking an order for relief against it as debtor, or
                  seeking
                  reorganization, arrangement, adjustment, liquidation, dissolution,
                  or
                  composition of it or its debts under any law relating to bankruptcy,
                  insolvency, reorganization, or relief of debtors, or seeking appointment
                  of a receiver, trustee, custodian, or other official for it or
                  any portion
                  of its property, and such case, proceeding, or other action: (i)
                  results
                  in an order for relief against it that is not fully stayed within
                  seven
                  (7) business days after being entered; or (ii) remains un-dismissed
                  for
                  forty-five (45) days;

              

      

       

      
        	 	
                (e)

              	
                an
                  attachment remains on all or any part of the Hotel or your or any
                  Guarantor’s assets for at least thirty (30)
                  days;

              

      

       

      
        	 	
                (f)

              	
                you
                  or any Guarantor fails, within sixty (60) days after the entry
                  of a final
                  judgment against you or any Guarantor in any amount exceeding Fifty
                  Thousand Dollars ($50,000), to discharge, vacate, or reverse the
                  judgment,
                  to stay its execution, or, if appealed, to discharge the judgment
                  within
                  thirty (30) days after a final adverse decision in the
                  appeal;

              

      

       

      
        	 	
                (g)

              	
                you
                  cease constructing and/or operating the Hotel at the location designated
                  on Attachment A under the Proprietary Marks, or lose possession
                  or the
                  right to possess all or a significant part of the Hotel, for any
                  reason
                  except as otherwise provided in this
                  Agreement;

              

      

       

      
        	 	
                (h)

              	
                you
                  contest in any court or proceeding all or any portion of our ownership
                  of
                  the Hotel System or the validity of any Proprietary Mark, Copyrighted
                  Materials, or Confidential
                  Information;

              

      

       

      
        	 	
                (i)

              	
                you
                  (or any of your owners) make or attempt to make a transfer in violation
                  of
                  Section 8;

              

      

       

      
        	 	
                (j)

              	
                you
                  fail to identify the Hotel to the public as a Hyatt Place Hotel
                  or
                  discontinue operating the Hotel as a Hyatt Place Hotel, and it
                  is not
                  unreasonable for us under the facts and circumstances to conclude
                  that you
                  do not intend to continue to operate the Hotel under the Proprietary
                  Marks;

              

      

       

      
        	 	
                (k)

              	
                any
                  action is taken to dissolve or liquidate you or any Guarantor,
                  except due
                  to death;

              

      

       

      
        	 	
                (l)

              	
                you
                  or any of your owners or Guarantors is, or is discovered to have
                  been,
                  convicted of a felony or any other offense likely in our reasonable
                  opinion to reflect adversely upon us, the Hotel System, or the
                  Proprietary
                  Marks, including any violation of laws or regulations relating
                  to
                  discrimination, equal employment, or equal
                  opportunity;

              

      

       

      
        	 	
                (m)

              	
                you
                  knowingly maintain false books and records of account or knowingly
                  submit
                  false or misleading reports or information to us, including any
                  information you provide or fail to provide on your franchise
                  application;

              

      

       

      
        	 	
                (n)

              	
                you
                  (or any of your owners) knowingly make any unauthorized use or
                  disclosure
                  of any part of the Manual or any other Confidential
                  Information;

              

      

       

      
        	 	
                (o)

              	
                we
                  determine that a serious threat or danger to public health or safety
                  results from the construction, maintenance, or operation of the
                  Hotel,
                  such that an immediate shutdown of the Hotel or construction site
                  is
                  necessary to avoid a substantial liability or loss of goodwill
                  to the
                  Hotel System;

              

      

       

      
        	 	
                (p)

              	
                we
                  exercise our right to terminate this Agreement pursuant to Section
                  9A
                  because of a condemnation;

              

      

       

      
        	 	
                (q)

              	
                you
                  or your affiliates register or attempt to register any Proprietary
                  Mark or
                  a derivative without our prior written
                  consent;

              

      

       

      
        	 	
                (r)

              	
                you
                  violate any law, ordinance, or regulation and do not begin to cure
                  the
                  violation immediately after receiving notice from us or any other
                  party
                  and to complete the cure as soon as is reasonably practicable or
                  within
                  the timeframe allowed by law, whichever is
                  shorter;

              

      

       

      
        	 	
                (s)

              	
                you
                  fail to pay when due any federal or state income, service, sales,
                  or other
                  taxes due on the Hotel’s operation, unless you are in good faith
                  contesting your liability for those taxes or have received an extension
                  from the applicable government agency of the time within which
                  to make
                  such payments;

              

      

       

      
        	 	
                (t)

              	
                you
                  (1) fail on three (3) or more separate occasions within any twelve
                  (12) consecutive month period to comply with this Agreement, whether
                  the
                  failures relate to the same or different obligations under this
                  Agreement
                  and whether or not you correct the failures after our delivery
                  of notice
                  to you; or (2) fail on two (2) or more separate occasions within any
                  six (6) consecutive month period to comply with the same obligation
                  under
                  this Agreement, whether or not you correct the failures after our
                  delivery
                  of notice to you; or

              

      

       

      
        	 	
                (u)

              	
                your
                  or any of your owners’ assets, property, or interests are blocked under
                  any law, ordinance, or regulation relating to terrorist activities,
                  or you
                  or any of your owners otherwise violate any such law, ordinance,
                  or
                  regulation.

              

      

       

      
        	 	
                (3)

              	
                Suspension
                  of Rights.
                  You acknowledge that, upon your failure to remedy any default specified
                  in
                  any written notice issued to you under Section 10C, we have the
                  right, until you comply to our satisfaction with the written notice,
                  to

              

      

       

      
        	 	
                (a)

              	
                suspend
                  your right to use, and your access to, the CRS, the GDS, any Cooperative
                  advertising program and any materials and programs that the Fund
                  makes
                  available,

              

      

       

      
        	 	
                (b)

              	
                remove
                  your Hotel from our advertising publications and/or the National
                  Directory,

              

      

       

      
        	 	
                (c)

              	
                suspend
                  or terminate any temporary or other fee reductions to which we
                  might have
                  agreed in any amendment(s) to this Agreement,
                  and/or

              

      

       

      
        	 	
                (d)

              	
                refuse
                  to provide any operational support, including other information
                  technology
                  and network services.

              

      

       

      If
        we
        suspend you from the CRS, we have the right to divert reservations previously
        made for the Hotel to other Hyatt Place Hotels or affiliated brand hotels.
        We
        will exercise our right to suspend your rights only after your cure period
        under
        the written notice of default has expired. Our exercise of this right will
        not
        constitute an actual or constructive termination of this Agreement nor be
        our
        sole and exclusive remedy for your default. If we exercise our right not
        to
        terminate this Agreement but to implement such suspension and/or removal,
        we may
        at any time after the appropriate cure period under the written notice has
        lapsed terminate this Agreement without giving you any additional corrective
        or
        cure period. During any suspension period, you must continue to pay all fees
        and
        other amounts due under, and otherwise comply with, this Agreement and any
        related agreement. Our election to suspend your rights as provided above
        will
        not be a waiver by us of any breach of this Agreement. If we rescind any
        suspension of your rights, you will not be entitled to any compensation,
        including repayment, reimbursement, refunds, or offsets, for any fees, charges,
        expenses, or losses you might have incurred due to our exercise of any
        suspension right provided above.

       

      (4) General.

       

      
        	 	
                (a)

              	
                In
                  any arbitration or other proceeding in which the validity of our
                  termination of this Agreement is contested, we may cite and rely
                  upon all
                  of your defaults or violations of this Agreement, not only the
                  defaults or
                  violations referenced in any written default notice sent to
                  you.

              

      

       

      
        	 	
                (b)

              	
                No
                  notice of termination that we issue will relieve you of your obligations
                  that survive termination of this Agreement, including your
                  de-identification, indemnification, and liquidated damages payment
                  obligations.

              

      

       

      
        	 	
                (c)

              	
                By
                  signing this Agreement, you agree that we have the right and authority
                  (but not the obligation) to notify your Lender and suppliers if
                  you are in
                  default under, or we have terminated, this
                  Agreement.

              

      

       

      D. Obligations
        Upon Termination or Expiration of this Agreement.

       

      
        	 	
                (1)

              	
                The
                  “De-identification Date” means the date upon which we give you written
                  notice of our decision not to purchase the Hotel’s premises and related
                  property under Section 10E(1) below, or, if we do not give you
                  either such
                  a written notice or a Purchase Notice (as defined in Section 10E(1)
                  below), on the fifteenth (15th)
                  day following the date that this Agreement expires or terminates.
                  Beginning on the De-Identification Date, you must immediately cease
                  using
                  the Hotel System and de-identify the Hotel by taking whatever action
                  we
                  deem necessary to ensure that the Hotel no longer is identified
                  as a hotel
                  within the Hotel System. You agree to take the following steps,
                  among
                  other actions, to de-identify the
                  Hotel:

              

      

       

      
        	 	
                (a)

              	
                return
                  to us the Manual, all other Copyrighted Materials, and all materials
                  containing Confidential Information or bearing any of the Proprietary
                  Marks and cease using all such
                  items;

              

      

       

      
        	 	
                (b)

              	
                remove
                  all items identifying the Hotel System, including by taking the
                  following
                  actions: remove all elements of the trade dress and other distinctive
                  features, devices, and/or items associated with the Hotel System,
                  including FF&E, interior signage, lobby signage, door identifier
                  signage, directional signage, phone face plates, memo pads, pens,
                  cups,
                  glasses, signage on the back of guest room doors, and all other
                  signage
                  bearing one or more of the Proprietary Marks. However, you may
                  immediately
                  cover all exterior signage in a professional manner until such
                  time, not
                  to exceed thirty (30) days after the De-identification Date, that
                  permanent removal occurs if you immediately schedule the permanent
                  removal
                  of all exterior signage bearing any of the Proprietary Marks and
                  give us
                  written evidence of that schedule. In addition, you must make at
                  your
                  expense such specific additional changes that we reasonably request
                  to
                  de-identify the Hotel;

              

      

       

      
        	 	
                (c)

              	
                change
                  the Hotel’s telephone listing and immediately stop answering the telephone
                  in any way that would lead a current or prospective customer, vendor,
                  or
                  other person to believe that the Hotel still is associated with
                  the Hotel
                  System or us;

              

      

       

      
        	 	
                (d)
                  

              	
                stop
                  all use of the Hotel Website and its domain name (which is our
                  property)
                  and require all third-party websites to remove any references that
                  directly or indirectly associate the Hotel with the Proprietary
                  Marks;

              

      

       

      
        	 	
                (e)

              	
                cancel
                  all fictitious, assumed, or other business name registrations relating
                  to
                  your use of the Proprietary Marks;
                  and

              

      

       

      
        	 	
                (f)

              	
                permit
                  our representatives to enter the Hotel on no less than twenty four
                  (24)
                  hours’ prior notice to conduct inspections on a periodic basis until
                  de-identification is completed to our
                  satisfaction.

              

      

       

      Beginning
        on the De-identification Date and continuing until de-identification is
        completed to our satisfaction, you must maintain a conspicuous sign at the
        registration desk in a form we specify stating that the Hotel no longer is
        associated with the Hotel System. You may not without our permission represent
        to the public or hold yourself out as a former franchisee of ours. You
        acknowledge that the de-identification process is intended to alert the public
        immediately that the Hotel is not affiliated with the Hotel System. If you
        fail
        to comply strictly with all of the de-identification provisions in this Section
        10D(1), you will be obligated to: (i) pay us a Royalty Fee of Five Thousand
        Dollars ($5,000) per day until de-identification is completed to our
        satisfaction; and (ii) permit our representatives to enter the Hotel to
        complete the de-identification process at your expense. You agree to pay
        all our
        costs and expenses of enforcing these de-identification provisions, including
        all attorneys’ fees and costs. Nothing in this Section or this Agreement limits
        our rights or remedies at law or in equity if you do not complete the
        de-identification procedures as provided above, including our right to seek
        and
        obtain an injunction to remove or cause to be removed, at your sole cost
        and
        expense, all signage from the Hotel.

       

      
        	 	
                (2)

              	
                Unless
                  otherwise provided in this Agreement, within five (5) days after
                  the
                  termination or expiration of this Agreement, you must pay all amounts
                  owed
                  to us and our affiliates under this Agreement or any other
                  agreement.

              

      

       

      
        	 	
                (3)

              	
                Upon
                  this Agreement’s termination or expiration for any reason, we have the
                  right to contact those individuals or entities who have reserved
                  rooms
                  with you through the CRS, and any other Hotel customers, and inform
                  them
                  that your lodging facility no longer is part of the Hotel System.
                  We also
                  have the right to inform those individuals and entities of other
                  Hyatt
                  Place Hotels within our Hotel System that are proximately located
                  to your
                  lodging facility in case they prefer to change their reservations
                  so that
                  they can stay at a Hyatt Place Hotel. Our exercise of these rights
                  will
                  not constitute an interference with your contractual or business
                  relationship. You acknowledge that the individuals and entities
                  that made
                  reservations with your lodging facility when it was a Hotel under
                  this
                  Agreement constitute our customers.

              

      

       

      
        	 	
                (4)

              	
                The
                  following Sections of this Agreement shall survive termination
                  or
                  expiration of this Agreement regardless of the circumstances: 3A(13),
                  3A(15), 5A, 5F, 6C, 7A, 7B, 7C, 10D, 10E, 12 and 13. Additionally,
                  all of
                  your covenants, obligations, and agreements that by their terms
                  or by
                  implication are to be performed after the termination or expiration
                  of the
                  Term shall survive such termination or
                  expiration.

              

      

       

      E. Purchase
        Rights or Payment of Liquidated Damages.
        You
        acknowledge and confirm that we will suffer substantial damages as a result
        of
        the termination of this Agreement, including lost Royalty Fees, lost
        Contributions, lost market penetration and goodwill, loss of Hotel System
        representation in the Hotel’s market area, confusion of national accounts and
        individual customers, disadvantage in competing for national accounts and
        other
        types of bookings for the Hotel System, lost opportunity costs, and expenses
        we
        will incur in developing another franchise in the Hotel’s market area, all of
        which damages are difficult to estimate accurately and proof of which would
        be
        burdensome and costly, although such damages are real and meaningful to us.
        Therefore, upon termination of this Agreement before the Term expires (except
        for a termination pursuant to Section 9A), you and we agree that we will
        have
        the right to choose one of the following two alternatives, exercisable upon
        giving you written notice:

       

      
        	 	
                (1)

              	
                We
                  have the right, exercisable upon written notice to you (“Purchase Notice”)
                  within fifteen (15) days after the date of such termination, to
                  purchase
                  the Hotel’s premises and related property. During the period beginning on
                  the date that we provide you a Purchase Notice and ending on the
                  date upon
                  which we and you close the asset purchase that this Subsection
                  (1)
                  contemplates, you must continue to comply with this Agreement and
                  the
                  related agreements as if they were still in full force and effect.
                  If we
                  and you agree on a purchase price, the closing will take place
                  within
                  thirty (30) days after that agreement. If we and you cannot agree
                  on a
                  purchase price within fifteen (15) days after the date of the Purchase
                  Notice, we and you will each obtain an appraisal of the Hotel’s fair
                  market value from a nationally recognized appraiser of hotel properties
                  comparable to the Hotel. However, the purchase price shall not
                  include any
                  value for the rights granted by this Agreement, goodwill attributable
                  to
                  the Proprietary Marks, our brand image, and other intellectual
                  property,
                  or the Hotel’s participation in the network of Hyatt Place Hotels. We and
                  you must pay the costs of our respective appraisers. If, after
                  receiving
                  the appraisals, we and you agree on the Hotel’s fair market value, that
                  fair market value will constitute the purchase price, and the closing
                  will
                  take place within thirty (30) days after such agreement. If, after
                  receiving the appraisals, we and you cannot within ten (10) days
                  agree on
                  the Hotel’s fair market value, the purchase price will be determined by
                  “baseball arbitration” in the city of our then current principal business
                  address according to the American Arbitration Association’s then current
                  Arbitration Rules for the Real Estate Industry (“AAA Rules”), as modified
                  below in this Section 10E. We and you will jointly select a third
                  party to
                  act as the sole arbitrator (the “Arbitrator”) to determine the Hotel’s
                  fair market value. That Arbitrator must be a person having at least
                  ten
                  (10) years’ recent professional experience in valuing real estate,
                  including lodging properties, and be qualified to act as an Arbitrator
                  in
                  accordance with the AAA Rules. If we and you do not agree on an
                  Arbitrator
                  with such qualifications within fifteen (15) days after the expiration
                  of
                  the ten (10) day period referenced above, the Arbitrator shall
                  be
                  appointed by the American Arbitration Association according to
                  the AAA
                  Rules.

              

      

       

      
        	 	
                (a)

              	
                The
                  Arbitrator will be instructed and obligated to decide, within thirty
                  (30)
                  days after his or her appointment, only whether the appraisal we
                  submitted
                  or the appraisal you submitted most accurately reflects the Hotel’s fair
                  market value based upon the appraisals submitted and other information
                  normally considered by an appraiser of hotels and real estate.
                  The
                  Arbitrator has no authority to compromise between the two appraisals;
                  he
                  or she is authorized only to choose one or the other. Each party
                  agrees to
                  cooperate fully and provide all information the Arbitrator requests
                  to
                  determine fair market value.

              

      

       

      
        	 	
                (b)

              	
                The
                  Arbitrator’s choice of appraisal shall be in writing, shall constitute the
                  purchase price under this Agreement, shall be final, conclusive,
                  and
                  binding on the parties as an “award” under the AAA Rules, and may be
                  enforced by a court of competent jurisdiction. We and you will
                  share
                  equally all arbitration expenses. We (or our designee) will purchase
                  the
                  Hotel premises and related property at the purchase price fixed
                  by the
                  Arbitrator, and closing shall take place within thirty (30) days
                  after
                  being notified in writing of the Arbitrator’s
                  decision.

              

      

       

      The
        closing under this Section 10E(1) will take place at a location and on a
        date
        (subject to the timeframes set forth above) we choose. We and you will sign
        documents, including deeds, affidavits, transfers and assignments, and any
        other
        documents necessary or appropriate to vest legal, marketable, and insurable
        fee
        simple title to the Hotel in us. You must satisfy all liens, mortgages, and/or
        encumbrances on the Hotel. We and you will share equally any closing costs.
        We
        are entitled to all customary representations, warranties, and indemnities
        in
        our purchase, including representations and warranties as to ownership and
        condition of and title to assets; liens and encumbrances on assets; validity
        of
        contracts and agreements; liabilities affecting the assets, contingent or
        otherwise; and indemnities for all actions, events, and conditions that existed
        or occurred in connection with the Hotel or your business before the closing.
        We
        have the unrestricted right to assign this option to purchase to a third
        party
        (including an affiliate) who then will have all the rights described in this
        Section.

       

      
        	 	
                (2)

              	
                We
                  have the right, exercisable upon written notice to you (“Liquidated
                  Damages Notice”) within fifteen (15) days after the date of such
                  termination, to receive liquidated damages in a lump sum as calculated
                  below as of the effective date of termination. You must pay us
                  the
                  liquidated damages within fifteen (15) days after the date of our
                  Liquidated Damages Notice. If the Hotel had opened for business
                  before the
                  effective date of termination, the liquidated damages payable under
                  this
                  Section 10E(2) shall be equal to the greater of: (i) Four Thousand
                  Dollars
                  ($4,000) multiplied by the number of approved Guest Rooms at the
                  Hotel; or
                  (ii) either (a), (b) or (c) below, whichever is
                  applicable.

              

      

       

      
        	 	
                (a)

              	
                If
                  this Agreement is terminated before the fifth (5th)
                  anniversary of the Opening Date, the product of (x) the number
                  of months
                  remaining between the month of termination and the eighth (8th)
                  anniversary of the Opening Date, multiplied by (y) the average
                  monthly
                  Royalty Fees and Contributions you owed us during the twelve (12)
                  month
                  period immediately preceding the month of termination (or for such
                  lesser
                  period that the Hotel has been open, if the Hotel has not then
                  been open
                  for at least twelve (12) months);

              

      

       

      
        	 	
                (b)

              	
                If
                  this Agreement is terminated on or after the fifth (5th)
                  anniversary of the Opening Date, but before the seventeenth
                  (17th)
                  anniversary of the Opening Date, the product of thirty-six (36)
                  multiplied
                  by the average monthly Royalty Fees and Contributions you owed
                  us during
                  the twelve (12) month period immediately preceding the month of
                  termination; or

              

      

       

      
        	 	
                (c)

              	
                If
                  this Agreement is terminated on or after the seventeenth (17th)
                  anniversary of the Opening Date, the product of (x) the number
                  of months
                  remaining between the month of termination and the twentieth
                  (20th)
                  anniversary of the Opening Date, multiplied by (y) the average
                  monthly
                  Royalty Fees and Contributions you owed us during the twelve (12)
                  month
                  period immediately preceding the month of
                  termination.

              

      

       

      If
        the
        Hotel had not yet opened for business as of the effective date of termination,
        you agree to pay us liquidated damages in the amount of Four Thousand Dollars
        ($4,000) multiplied by the number of approved Guest Rooms at the Hotel.
        Notwithstanding any temporary fee reductions to which we might have agreed
        in an
        amendment(s) to this Agreement, all liquidated damages calculations based
        on
        monthly fees shall be calculated on the full (and not the discounted) monthly
        Royalty Fees and Contributions required under this Agreement as of the Effective
        Date. You agree that the liquidated damages calculated under this Section
        10E(2)
        represent the best estimate of our damages arising from any termination of
        this
        Agreement before the Term expires. Your payment of the liquidated damages
        to us
        will not be considered a penalty but, rather, a reasonable estimate of fair
        compensation to us for the damages we will incur because this Agreement did
        not
        continue for the Term’s full length. You acknowledge that your obligation to pay
        us liquidated damages is in addition to, and not in lieu of, your obligations
        to
        pay other amounts due to us under this Agreement as of the date of termination
        and to comply strictly with the de-identification procedures in
        Section 10D(1) and your other post-termination obligations. If any valid
        law or regulation governing this Agreement limits your obligation to pay,
        and
        our right to receive, the liquidated damages for which you are obligated
        under
        this Section, you shall be liable to us for any and all damages we incur,
        now or
        in the future, as a result of your breach of this Agreement.

       

      11. Renewal.

       

      A. Your
        Right to Enter Into a Successor Franchise Agreement.
        When
        this Agreement expires:

       

      (1) if
        you
        (and your owners) have substantially complied with this Agreement during
        its
        Term;

       

      (2) if
        you
        received passing Quality Assurance Scores (as defined in the Manual) on
        a ll
        evaluations we conducted during the preceding three (3)-year
        period;

       

      (3) if
        you
        (and your owners) are, both on the date you give us written notice of your
        election to acquire a successor franchise (as provided below) and on the
        date on
        which the term of the successor franchise commences, in full compliance with
        this Agreement and all System Standards; and

       

      (4) provided
        that:

       

      (a)
         you
        maintain possession of and agree (regardless of cost) to renovate, remodel,
        and/or expand the Hotel (which may include structural alterations), add or
        replace improvements and FF&E, and otherwise modify the Hotel as we require
        to comply with System Standards then applicable for new Hyatt Place Hotels,
        or

       

      (b)
         at
        your
        option, you secure a substitute site that we approve and you construct and
        develop that site according to System Standards then applicable for Hyatt
        Place
        Hotels, we will offer you the right to enter into a successor franchise
        agreement to operate the Hotel as a Hyatt Place Hotel for a term commencing
        immediately upon the expiration of this Agreement and expiring ten (10) years
        from that date (the “Successor Franchise Right”). You agree to sign the
        franchise agreement we then use to grant franchises for Hyatt Place Hotels
        (modified as necessary to reflect the fact that it is for a successor franchise
        and that there will be no further renewal or successor franchise rights),
        which
        may contain provisions that differ materially from any and all of those
        contained in this Agreement. You must pay us our then current PIP
        fee.

       

      If
        you
        (and your owners) are not, both on the date you give us written notice of
        your
        election to exercise the Successor Franchise Right and on the date on which
        the
        term of the successor franchise agreement is scheduled to commence, in full
        compliance with this Agreement and all System Standards, you acknowledge
        that we
        need not enter into a successor franchise agreement with you, whether or
        not we
        had, or chose to exercise, the right to terminate this Agreement during its
        Term.

       

      B. Grant
        of a Successor Franchise.
        You
        agree to give us written notice of your election to exercise the Successor
        Franchise Right no more than two hundred twenty (220) days and no less than
        one
        hundred eighty (180) days before this Agreement expires. We agree to give
        you
        written notice (“Our Notice”), not more than ninety (90) days after we receive
        your notice, of our decision:

       

      (1) to
        enter
        into a successor franchise agreement with you;

       

      (2) to
        enter
        into a successor franchise agreement with you on the condition that you correct
        existing deficiencies of the Hotel or in your operation of the Hotel;
        or

       

      (3) not
        to
        enter into a successor franchise agreement with you based on our determination
        that you and your owners have not substantially complied with this Agreement
        during its Term, that you did not receive passing Quality Assurance Scores
        on
        all evaluations we conducted during the preceding three (3)-year period,
        or that
        you (and your owners) were not in full compliance with this Agreement and
        all
        System Standards on the date you gave us written notice of your election
        to
        exercise the Successor Franchise Right.

       

      If
        applicable, Our Notice will:

       

      (a) describe
        the renovation, remodeling, expansion, improvements, and/or modifications
        required to bring the Hotel into compliance with then applicable System
        Standards for new Hyatt Place Hotels; and

       

      (b) state
        the
        actions you must take to correct operating deficiencies and the time period
        in
        which you must correct these deficiencies.

       

      If
        we
        elect not to enter into a successor franchise agreement with you, Our Notice
        will describe the reasons for our decision. If we elect to enter into a
        successor franchise agreement with you, your effective exercise of the Successor
        Franchise Right is subject to your full compliance with all of the terms
        and
        conditions of this Agreement through the date of its expiration, in addition
        to
        your compliance with the obligations described in Our Notice.

       

      If
        Our
        Notice states that you must cure certain deficiencies of the Hotel or its
        operation as a condition to our entering into a successor franchise agreement
        with you, we will give you written notice of our decision not to enter into
        a
        successor franchise agreement with you, based upon your failure to cure those
        deficiencies, at least ninety (90) days before this Agreement expires. However,
        we need not give you this ninety (90) days’ notice if we decide not to enter
        into a successor franchise agreement with you due to your breach of this
        Agreement during the ninety (90) day period before it expires. If we fail
        to
        give you:

       

      (1) notice
        of
        deficiencies in the Hotel, or in your operation of the Hotel, within ninety
        (90)
        days after we receive your timely election to exercise the Successor Franchise
        Right (if we elect to enter into a successor franchise agreement with you
        under
        subparagraphs (2) and (b) above); or

       

      (2) notice
        of
        our decision not to enter into a successor franchise agreement with you at least
        ninety (90) days before this Agreement expires, if this notice is required,
        we
        may unilaterally extend the Term for the time period necessary to give you
        either reasonable time to correct deficiencies or the ninety (90) days’ notice
        of our refusal to grant a successor franchise. If you fail to notify us of
        your
        election to enter into a successor franchise agreement within the prescribed
        time period, we will deem this to be your decision not to exercise the Successor
        Franchise Right or enter into a successor franchise agreement with
        us.

       

      C. Agreements/Releases.
        If you
        satisfy all of the other conditions for a successor franchise agreement,
        you and
        your owners agree to sign the form of franchise agreement and any ancillary
        agreements we then customarily use in granting franchises for Hyatt Place
        Hotels
        (modified as necessary to reflect the fact that it is for a successor franchise
        and that there will be no further renewal or successor franchise rights),
        which
        may contain provisions that differ materially from any and all of those
        contained in this Agreement. You and your owners further agree to sign general
        releases, in a form satisfactory to us, of any and all claims against us
        and our
        owners, affiliates, officers, directors, employees, agents, successors, and
        assigns. We will consider your or your owners’ failure to sign these agreements
        and releases and to deliver them to us for acceptance and execution (together
        with our then current PIP fee) within thirty (30) days after their delivery
        to
        you to be an election not to enter into a successor franchise
        agreement.

       

      12. Relationship
        of Parties.

       

      A. No
        Agency Relationship.
        You are
        an independent contractor. Neither party is the legal representative or agent
        of, or has the power to obligate, the other for any purpose. The parties
        have a
        business relationship defined entirely by this Agreement’s express provisions.
        No partnership, joint venture, affiliate, agency, fiduciary, or employment
        relationship is intended or created by this Agreement.

       

      B. Your
        Notices to Public Concerning Independent Status.
        You
        must take the steps we periodically require to minimize the chance of a claim
        being made against us for any occurrence at the Hotel or for acts, omissions,
        or
        obligations of you or anyone affiliated with you or the Hotel. Such steps
        may
        include giving notice in private or public rooms or on advertisements, business
        forms, and stationery and other places, making clear to the public that we
        are
        not the Hotel’s owner or operator and are not accountable for events occurring
        at the Hotel.

       

      13. Miscellaneous.

       

      A. Severability
        and Interpretation.
        Except
        as expressly provided to the contrary in this Agreement, each section,
        paragraph, term, and provision of this Agreement is severable, and if, for
        any
        reason, any part is held to be invalid or contrary to or in conflict with
        any
        applicable present or future law or regulation in a final, unappealable ruling
        issued by any court, agency, or tribunal with competent jurisdiction, that
        ruling will not impair the operation of, or otherwise affect, any other portions
        of this Agreement, which will continue to have full force and effect and
        bind
        the parties. If any applicable and binding law or rule of any jurisdiction
        requires more notice than this Agreement requires of this Agreement’s
        termination or of our refusal to offer you the Successor Franchise Right,
        or
        some other action that this Agreement does not require, or if, under any
        applicable and binding law or rule of any jurisdiction, any provision of
        this
        Agreement or any System Standard is invalid, unenforceable, or unlawful,
        the
        notice and/or other action required by the law or rule will be substituted
        for
        the comparable provisions of this Agreement, and we may modify the invalid
        or
        unenforceable provision or System Standard to the extent required to be valid
        and enforceable or delete the unlawful provision in its entirety. You agree
        to
        be bound by any promise or covenant imposing the maximum duty the law permits
        that is subsumed within any provision of this Agreement, as though it were
        separately articulated in and made a part of this Agreement.

       

      B. Waiver
        of Obligations.
        We and
        you may by written instrument unilaterally waive or reduce any obligation
        of or
        restriction upon the other under this Agreement, effective upon delivery
        of
        written notice to the other or another effective date stated in the notice
        of
        waiver. Any waiver granted will be without prejudice to any other rights
        we or
        you have, will be subject to continuing review, and may be revoked at any
        time
        and for any reason effective upon delivery of ten (10) days’ prior written
        notice.

       

      We
        and
        you will not waive or impair any right, power, or option this Agreement reserves
        (including our right to demand compliance with every term, condition, and
        covenant or to declare any breach to be a default and to terminate this
        Agreement before the Term expires) because of any custom or practice that
        varies
        from this Agreement’s terms; our or your failure, refusal, or neglect to
        exercise any right under this Agreement or to insist upon the other’s compliance
        with this Agreement, including any System Standard; our waiver of or failure
        to
        exercise any right, power, or option, whether of the same, similar, or different
        nature, with other Hyatt Place Hotels; the existence of franchise agreements
        for
        other Hyatt Place Hotels that contain provisions differing from those contained
        in this Agreement; or our acceptance of any payments due from you after any
        breach of this Agreement. No special or restrictive legend or endorsement
        on any
        check or similar item given to us will be a waiver, compromise, settlement,
        or
        accord and satisfaction. We are authorized to remove any legend or endorsement,
        and they will have no effect.

       

      Neither
        we nor you will be liable for loss or damage or be in breach of this Agreement
        if our or your failure to perform our or your obligations results from:
        (1) compliance with the orders, requests, regulations, or recommendations
        of any federal, state, or municipal government; (2) acts of God;
        (3) fires, strikes, embargoes, war, acts of terrorism or similar events, or
        riot; or (4) any other similar event or cause. Any delay resulting from any
        of these causes will extend performance accordingly or excuse performance,
        in
        whole or in part, as may be reasonable, except that these causes will not
        excuse
        payments of amounts owed at the time of the occurrence or payment of Royalty
        Fees or Contributions due afterward.

       

      C. Binding
        Effect.
        This
        Agreement is valid when signed and accepted by us at our office in Chicago,
        Illinois.

       

      D. Entire
        Agreement and Construction.
        This
        Agreement is binding upon us and you and our and your respective executors,
        administrators, heirs, beneficiaries, permitted assigns, and successors in
        interest. Subject to our right to modify the Manual, Hotel System and System
        Standards, this Agreement may not be modified except by a written agreement
        signed by both our and your duly-authorized officers. The Attachments are
        a part
        of this Agreement which, together with System Standards contained in the
        Manual
        (which may be periodically modified, as provided in this Agreement), constitutes
        our and your entire agreement, and there are no other oral or written
        understandings or agreements between us and you, and no oral or written
        representations by us, relating to the subject matter of this Agreement,
        the
        franchise relationship, or the Hotel (any understandings or agreements reached,
        or any representations made, before this Agreement are superseded by this
        Agreement). You may not rely on any alleged oral or written understandings,
        agreements, or representations not contained in this Agreement.

       

      Any
        policies that we adopt and implement from time to time to guide us in our
        decision-making are subject to change, are not a part of this Agreement,
        and are
        not binding on us. Except as expressly provided in this Agreement, nothing
        in
        this Agreement is intended or deemed to confer any rights or remedies upon
        any
        person or legal entity not a party to this Agreement.

       

      References
        in this Agreement to “we,” “us,” and “our,” with respect to all of our rights
        and all of your obligations to us under this Agreement, include any of our
        affiliates, successors and assigns with whom you deal. The term “affiliate”
means any person or entity directly or indirectly owned or controlled by,
        under
        common control with, or owning or controlling you or us. For purposes of
        this
        definition, “control” means the power to direct or cause the direction of
        management and policies. References to “owner” mean any person holding a direct
        or indirect ownership interest (whether of record, beneficially, or otherwise)
        or voting rights in you, including any person who has a direct or indirect
        interest in you, this Agreement, the franchise, or the Hotel and any person
        who
        has any other legal or equitable interest, or the power to vest in himself
        or
        herself any legal or equitable interest, in their revenue, profits, rights,
        or
        assets. The words “include” and “including,” whenever used in this Agreement,
        will mean “including, by way of example, but without limitation.”

       

      E. Our
        Withholding of Consent.
        Except
        where this Agreement expressly obligates us reasonably to approve or not
        unreasonably to withhold our approval of any of your actions or requests,
        we
        have the absolute right to refuse any request you make or to withhold our
        approval of any of your proposed, initiated, or completed actions that require
        our approval. However, we may withhold our consent, whenever and wherever
        otherwise required, if you are in default under this Agreement.

       

      F. Arbitration.
        We and
        you agree that, except for controversies, disputes, or claims related to
        or
        based on improper use of the Proprietary Marks, Copyrighted Materials, or
        Confidential Information, all controversies, disputes, or claims between
        us
        (and/or our affiliates and our and their respective owners, officers, directors,
        agents, and/or employees), and you (and/or your affiliates and Guarantors
        and
        your and their respective owners, officers, directors, agents and/or employees)
        arising out of or related to:

       

      (1) this
        Agreement or any other agreement between you and us;

       

      (2) our
        relationship with you;

       

      
        	 	
                (3)

              	
                the
                  scope or validity of this Agreement or any other agreement between
                  you and
                  us or any provision of any of those agreements (including this
                  Subsection); or

              

      

       

      (4) any
        System Standard;

       

      must
        be
        submitted for binding arbitration to the American Arbitration Association
        (the
“AAA”). The arbitration proceedings will be conducted by one (1) arbitrator and,
        except as this Section otherwise provides, according to the AAA’s then current
        commercial arbitration rules. The arbitrator must be a licensed attorney,
        have
        hotel industry experience, and be listed on the AAA’s National Roster of
        Neutrals (or such other equivalent replacement roster of experienced arbitrators
        that the AAA designates). All proceedings will be conducted at a suitable
        location chosen by the arbitrator that is within ten (10) miles of our then
        current principal business address. All matters relating to arbitration will
        be
        governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.)
        and not
        by any state arbitration law. Judgment upon the arbitrator’s award may be
        entered in any court of competent jurisdiction.

       

      The
        arbitrator has the right to award or include in his or her award any relief
        that
        he or she deems proper, including money damages (with interest on unpaid
        amounts
        from the date due), specific performance, injunctive relief, and attorneys’ fees
        and costs, provided that the arbitrator may not declare any Proprietary Mark
        generic or otherwise invalid or, except as expressly provided in Section
        13M
        below, award any punitive, exemplary, or treble or other forms of multiple
        damages against either party (we and you hereby waiving to the fullest extent
        permitted by law, except as expressly provided in Section 13M below, any
        right
        to or claim for any punitive, exemplary, and treble and other forms of multiple
        damages against the other).

       

      We
        and
        you agree to be bound by the provisions of any limitation on the period of
        time
        in which claims must be brought under applicable law or this Agreement,
        whichever expires earlier. We and you further agree that, in any arbitration
        proceeding, each must submit or file any claim that would constitute a
        compulsory counterclaim (as defined by the Federal Rules of Civil Procedure)
        within the same proceeding as the claim to which it relates. Any claim that
        is
        not submitted or filed as required is forever barred. The arbitrator may
        not
        consider any settlement discussions or offers that might have been made by
        either you or us.

       

      We
        and
        you agree that arbitration will be conducted on an individual, not a class-wide,
        basis. Only we (and our affiliates and our and their respective owners,
        officers, directors, agents, and/or employees, as applicable) and you (and
        your
        Guarantors and affiliates and your and their respective owners, officers,
        directors, agents and/or employees, as applicable) may be the parties to
        any
        arbitration proceedings described in this Section. An arbitration proceeding
        between us (and our affiliates and our and their respective owners, officers,
        directors, agents, and/or employees) and you (and/or your Guarantors and
        affiliates and your and their respective owners, officers, directors, agents
        and/or employees) may not be consolidated with any other arbitration proceeding
        between us and any other person.

       

      Despite
        our and your agreement to arbitrate, we and you each have the right in a
        proper
        case to seek temporary restraining orders and temporary or preliminary
        injunctive relief from a court of competent jurisdiction; provided, however,
        that we and you must contemporaneously submit our dispute for arbitration
        on the
        merits as provided in this Section 13F. The provisions of this Section are
        intended to benefit and bind certain third party non-signatories and will
        continue in full force and effect subsequent to and notwithstanding this
        Agreement’s expiration or termination.

       

      G. Notices.
        All
        written notices, reports, and payments permitted or required to be delivered
        by
        this Agreement or the Manual will be deemed to be delivered:

       

      (1)
         at
        the
        time delivered by hand;

       

      
        	 	
                (2)
                  

              	
                at
                  the time delivered via computer transmission and, in the case of
                  the
                  Royalty Fee, Contributions, and other amounts due, at the time
                  we actually
                  receive payment via EFT;

              

      

       

      
        	 	
                (3)
                  

              	
                one
                  (1) business day after transmission by facsimile or other electronic
                  system if the sender has confirmation of successful
                  transmission;

              

      

       

      
        	 	
                (4)
                  

              	
                one
                  (1) business day after being placed in the hands of a nationally
                  recognized commercial courier service for next business day delivery;
                  or

              

      

       

      
        	 	
                (5)
                  

              	
                three
                  (3) business days after placement in the United States Mail by
                  Registered
                  or Certified Mail, Return Receipt Requested, postage
                  prepaid.

              

      

       

      Any
        notice to us must be sent to the address specified below, although we may
        change
        this address for notice by giving you thirty (30) days’ prior notice by any of
        the means specified in subparagraphs (1) through (5) above. Any notice that
        we
        send you may be sent to the one (1) person identified below, even if you
        have
        multiple owners, at the address specified below. You may change the person
        and/or address for notice only by giving us thirty (30) days’ prior notice by
        any of the means specified in subparagraphs (1) through (5) above.

       

      
        	
                Notices
                  to us:

              	
                Hyatt
                  Place Franchising, L.L.C.

                200
                  West Monroe, 8th
                  Floor,

                Chicago,
                  Illinois 60606

                Attention:
                  Senior Vice President - Franchising

              	
                Notices
                  to you:

              	
                [________________]

                7700
                  Wolf River Boulevard

                Germantown,
                  Tennessee 38138

                Attention:
                  Senior Vice President -  Asset
                  Management

              

      

      

      Any
        required payment or report that we do not actually receive during regular
        business hours on the date due (or postmarked by postal authorities at least
        two
        (2) days before then) will be deemed delinquent. Notices delivered via the
        means
        specified above will be deemed delivered as of the times specified above
        whether
        or not you accept delivery. We reserve the right to notify both your Lender
        and
        any or all of your owners, creditors, and/or suppliers if we issue any default
        notice under this Agreement.

       

      H. Descriptive
        Headings.
        The
        headings in this Agreement are for convenience only and will not control
        or
        affect the meaning or construction of any provision.

       

      I. Attorneys’
        Fees.
        If we
        incur costs and expenses due to your failure to pay when due amounts owed
        to us,
        to submit when due any reports, information, or supporting records, or otherwise
        to comply with this Agreement, you agree, whether or not we initiate a formal
        legal proceeding (and, if we do initiate a formal legal proceeding, in the
        event
        that we prevail in that proceeding), to reimburse us for all of the costs
        and
        expenses that we incur, including reasonable accounting, attorneys’,
        arbitrators’, and related fees.

       

      J. Cumulative
        Remedies.
        Our and
        your rights under this Agreement are cumulative, and our and your exercise
        or
        enforcement of any right or remedy under this Agreement will not preclude
        our or
        your exercise or enforcement of any other right or remedy that we or you
        are
        entitled by law to enforce.

       

      K. Governing
        Law.
        ALL
        MATTERS RELATING TO ARBITRATION WILL BE GOVERNED BY THE FEDERAL ARBITRATION
        ACT
        (9 U.S.C. SECTIONS 1 ET
        SEQ.).
        EXCEPT
        TO THE EXTENT GOVERNED BY THE FEDERAL ARBITRATION ACT, THE UNITED STATES
        TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET
        SEQ.)
        OR
        OTHER FEDERAL LAW, THIS AGREEMENT, THE FRANCHISE, AND ALL CLAIMS ARISING
        FROM
        THE RELATIONSHIP BETWEEN US AND YOU WILL BE GOVERNED BY THE LAWS OF THE STATE
        OF
        ILLINOIS, WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES, EXCEPT THAT ANY ILLINOIS
        LAW REGULATING THE OFFER OR SALE OF FRANCHISES, BUSINESS OPPORTUNITIES, OR
        SIMILAR INTERESTS, OR GOVERNING THE RELATIONSHIP BETWEEN A FRANCHISOR AND
        A
        FRANCHISEE OR ANY SIMILAR RELATIONSHIP, WILL NOT APPLY UNLESS ITS JURISDICTIONAL
        REQUIREMENTS ARE MET INDEPENDENTLY WITHOUT REFERENCE TO THIS
        SECTION.

       

      L. Consent
        To Jurisdiction.
        SUBJECT
        TO THE PARTIES’ ARBITRATION OBLIGATIONS AND THE PROVISIONS BELOW, YOU AND YOUR
        OWNERS AGREE THAT ALL ACTIONS ARISING UNDER THIS AGREEMENT OR OTHERWISE AS
        A
        RESULT OF THE RELATIONSHIP BETWEEN YOU AND US MUST BE COMMENCED IN THE STATE
        OR
        FEDERAL COURT OF GENERAL JURISDICTION CLOSEST TO OUR THEN CURRENT PRINCIPAL
        BUSINESS ADDRESS, AND YOU (AND EACH OWNER) IRREVOCABLY SUBMIT TO THE
        JURISDICTION OF THOSE COURTS AND WAIVE ANY OBJECTION YOU (OR THE OWNER) MIGHT
        HAVE TO EITHER THE JURISDICTION OF OR VENUE IN THOSE COURTS. NONETHELESS,
        YOU
        AND YOUR OWNERS AGREE THAT WE MAY ENFORCE THIS AGREEMENT AND ANY ARBITRATION
        ORDERS AND AWARDS IN THE COURTS OF THE STATE OR STATES IN WHICH YOU ARE
        DOMICILED OR THE HOTEL IS LOCATED.

       

      M. Waiver
        Of Punitive Damages And Jury Trial.
        EXCEPT
        FOR THE INDEMNIFICATION OBLIGATIONS FOR THIRD PARTY CLAIMS UNDER
        SECTION 7B, AND EXCEPT FOR PUNITIVE, EXEMPLARY, AND TREBLE AND OTHER FORMS
        OF MULTIPLE DAMAGES AVAILABLE TO EITHER PARTY UNDER FEDERAL LAW, WE AND YOU
        (AND
        YOUR OWNERS) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR
        CLAIM
        FOR ANY PUNITIVE, EXEMPLARY, AND TREBLE AND OTHER FORMS OF MULTIPLE DAMAGES
        AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN US AND
        YOU
        (AND/OR YOUR OWNERS), THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE
        RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.

       

      SUBJECT
        TO THE PARTIES’ ARBITRATION OBLIGATIONS, WE AND YOU IRREVOCABLY WAIVE TRIAL BY
        JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY,
        BROUGHT BY EITHER OF US.

       

      N. Limitations
        of Claims.
        EXCEPT
        FOR CLAIMS ARISING FROM YOUR NON-PAYMENT OR UNDERPAYMENT OF AMOUNTS YOU OWE
        US,
        ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR OUR
        RELATIONSHIP WITH YOU WILL BE BARRED UNLESS A LEGAL PROCEEDING (IN THE REQUIRED
        OR PERMITTED FORUM) IS COMMENCED WITHIN EIGHTEEN (18) MONTHS FROM THE DATE
        ON
        WHICH THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS
        GIVING RISE TO THE CLAIMS.

       

      O. Time
        is of the Essence.
        Time is
        of the essence in this Agreement, and all provisions of this Agreement shall
        be
        so interpreted.

       

      P. Acknowledgements.
        To
        induce us to sign this Agreement and grant you the rights under this Agreement,
        you acknowledge:

       

      
        	 	
                (1)

              	
                That
                  you have independently investigated the Hyatt Place Hotel franchise
                  opportunity, including the current and potential market conditions
                  and
                  competitive factors and risks, and recognize that, like any other
                  business, the nature of a Hyatt Place Hotel’s business will evolve and
                  change over time.

              

      

       

      
        	 	
                (2)

              	
                That
                  an investment in a Hyatt Place Hotel involves business risks that
                  could
                  result in the loss of a significant portion or all of your
                  investment.

              

      

       

      (3) That
        your
        business abilities and efforts are vital to your success.

       

      
        	 	
                (4)

              	
                That
                  retaining customers for your Hotel will require a high level of
                  customer
                  service and strict adherence to the Hotel System and our System
                  Standards,
                  and that you are committed to maintaining our System
                  Standards.

              

      

       

      
        	 	
                (5)

              	
                That
                  you have not received from us, and are not relying upon, and that
                  we
                  expressly disclaim making, any representation, warranty or guaranty,
                  express or implied, as to the actual or potential volume, sales,
                  income or
                  profits of your Hotel or any other Hyatt Place
                  Hotel.

              

      

       

      
        	 	
                (6)

              	
                That
                  any information you have acquired from other Hyatt Place Hotel
                  franchisees, including information regarding their sales, profits
                  or cash
                  flows, is not information obtained from us, and we make no representation
                  about that information’s accuracy.

              

      

       

      
        	 	
                (7)

              	
                That
                  you have no knowledge of any representations made about the Hyatt
                  Place
                  Hotel franchise opportunity by us, our affiliates or any of their
                  respective officers, directors, owners or agents that are contrary
                  to the
                  statements made in our Franchise Offering Circular or to the terms
                  and
                  conditions of this Agreement.

              

      

       

      
        	 	
                (8)

              	
                That
                  in all of their dealings with you, our officers, directors, employees
                  and
                  agents act only in a representative, and not in an individual,
                  capacity
                  and that business dealings between you and them as a result of
                  this
                  Agreement are only between you and
                  us.

              

      

       

      
        	 	
                (9)

              	
                That
                  you have represented to us, to induce our entering into this Agreement,
                  that all statements you have made and all materials you have given
                  us in
                  acquiring the rights under this Agreement are accurate and complete
                  and
                  that you have made no misrepresentations or material omissions
                  in
                  obtaining those rights.

              

      

       

      
        	 	
                (10)

              	
                That
                  you have read this Agreement and our Franchise Offering Circular
                  and
                  understand and accept that the terms and covenants in this Agreement
                  are
                  reasonable and necessary for us to maintain our high standards
                  of quality
                  and service, as well as the uniformity of those standards at each
                  Hyatt
                  Place Hotel, and to protect and preserve the goodwill of the Proprietary
                  Marks.

              

      

       

      
        	 	
                (11)

              	
                That
                  you have independently evaluated this opportunity, including by
                  using your
                  own business professionals and advisors, and have relied solely
                  upon those
                  evaluations in deciding to enter into this
                  Agreement.

              

      

       

      
        	 	
                (12)

              	
                That
                  you have been afforded an opportunity to ask any questions you
                  have and to
                  review any appropriate materials of interest to you concerning
                  the Hyatt
                  Place Hotel franchise opportunity.

              

      

       

      
        	 	
                (13)

              	
                That
                  you have been afforded an opportunity, and we have encouraged you,
                  to have
                  this Agreement and all other agreements and materials that we have
                  given
                  or made available to you reviewed by an attorney and have either
                  done so
                  or intentionally chosen not to do
                  so.

              

      

       

      
        	 	
                (14)

              	
                That
                  you have a net worth that is sufficient to make the investment
                  in the
                  Hyatt Place Hotel franchise opportunity represented by this Agreement,
                  and
                  you will have sufficient funds to meet all of your obligations
                  under this
                  Agreement.

              

      

       

      
        	 	
                (15)

              	
                That
                  any statements, oral or written, by us or our agents before the
                  execution
                  of this Agreement were for informational purposes only and do not
                  constitute any representation or warranty by us. Our only representations,
                  warranties, and obligations are those specifically set forth in
                  this
                  Agreement. You must not rely on, and the parties do not intend
                  to be bound
                  by, any statement or representation not contained in this
                  Agreement.

              

      

       

      14. Compliance
        with Anti-Terrorism Laws

       

      You
        and
        your owners agree to comply, and to assist us to the fullest extent possible
        in
        our efforts to comply, with Anti-Terrorism Laws (defined below). In connection
        with that compliance, you and your owners certify, represent, and warrant
        that
        none of your property or interests is subject to being blocked under, and
        that
        you and your owners otherwise are not in violation of, any of the Anti-Terrorism
        Laws. “Anti-Terrorism Laws” mean Executive Order 13224 issued by the President
        of the United States, the USA PATRIOT Act, and all other present and future
        federal, state, and local laws, ordinances, regulations, policies, lists,
        and
        other requirements of any governmental authority addressing or in any way
        relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism
        Laws by you or your owners, or any blocking of your or your owners’ assets under
        the Anti-Terrorism Laws, shall constitute good cause for immediate termination
        of this Agreement, as provided in Section 10C(2)(u) above.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have signed this Agreement as of the dates set
        forth by their signatures, to be effective as of the Effective
        Date.

       

      
        	 	
                FRANCHISEE:

                 

                [INSERT
                  NAME]

                a
                  ____________ limited liability company

                 

                By:    

                Name:   

                Title:   

                 

                Date: 

                 

                Attest: 

              
	 	 
	 	
                FRANCHISOR:

                 

                HYATT
                  PLACE FRANCHISING, L.L.C.

                 

                By:    

                Name:   

                Title:   

                 

                Date: 

                 

                Attest: 

              

      

      

      

      
        
          
            Annex
              A
              - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ATTACHMENT
        A

      

      THE
        HOTEL

      

      

      Facilities
        (Section 1):

      

      Site:      A
        Hyatt
        Place hotel located at:

      ______________________

      

      Number
        of
        Approved Guest Rooms:       
        Rooms

      

      

      

      

      

      
        	
                FRANCHISEE:

                 

                [INSERT
                  NAME]

                a
                  _______________ limited liability company

                 

                By:
                   

                Name:
                   

                Title:
                   

                 

                Date:
                   

                 

                Attest:
                  

              
	 
	
                FRANCHISOR:

                 

                HYATT
                  PLACE FRANCHISING, L.L.C.

                 

                By:
                  

                Senior
                  Vice President

                 

                Date:
                   

                 

                Attest:
                   

              

      

      

      

      

      ATTACHMENT
        B

      

      AREA
        OF PROTECTION

      

      __________________

      

      

      The
        Area
        of Protection is defined as follows:

      

      

      

      

      

      

      

      

      

      

      

      

      

      AOP
        Term:

      

      The
        AOP
        shall be granted for three (3) years from the effective date of the Franchise
        Agreement.

      

      AOP
        Area:

      

      The
        AOP
        shall be a three (3) mile radius from the center of the hotel
        lobby.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      
        	
                 

                FRANCHISEE:

                 

                [INSERT
                  NAME]

                a
                  _____________ limited liability company

                 

                By:
                   

                Name:
                   

                Title:
                   

                 

                Date:
                   

                 

                Attest:
                  

              
	 
	
                FRANCHISOR:

                 

                HYATT
                  PLACE FRANCHISING, L.L.C.

                 

                By:
                  

                Senior
                  Vice President

                 

                Date:
                   

                 

                Attest:
                   

              

      

      

      

      

      

      ATTACHMENT
        C

      

      THE
        WORK

      

      You
        acknowledge that every detail of the Hotel System is important to us and
        other
        franchisees operating under the Hotel System to develop and maintain the
        Hotel
        System’s standards and public image. You agree to comply strictly with the Hotel
        System’s details, as set forth in the Manual or otherwise in writing. You must
        bear the entire cost of developing and constructing the Hotel, including
        professional services, financing, insurance, licensing, contractors, permits,
        equipment, and furnishings. The following constitutes the Hotel’s development
        schedule.

      

      A. New
        Development

      

      1) Your
        managing owner or general manager shall attend at your expense a briefing
        at our
        headquarters in Chicago, Illinois to acquaint you with our building process
        and
        support structure within three (3) months after the Effective Date.

      

      2) You
        must
        submit preliminary plans (the “Plans”), including site layout and outline
        specifications, within four (4) months after the Effective Date.

      

      3) You
        must
        submit to us complete working drawings and specifications for the Hotel,
        including its proposed equipment, furnishings, facilities, and signs, with
        such
        detail and containing such information that we require within seven (7) months
        after the Effective Date. The Plans must conform to our then current Hotel
        System standards. Construction may not begin until we have approved the Plans
        in
        writing. After we approve your Plans, you may not make any changes without
        our
        prior written consent, which we will not unreasonably withhold. If changes
        in
        the Plans are required during the course of construction, you must notify
        us
        immediately. Your failure to construct the Hotel in strict accordance with
        the
        approved Plans constitutes a material breach of this Agreement and may lead
        to
        our issuing a default notice and subsequently terminating this Agreement.
        Our
        approval of the Plans is intended only to ensure compliance with our then
        current System Standards. We will have no liability to you for the Hotel’s
        construction. It is your responsibility to make sure that the Plans comply
        with
        our requirements, the Americans with Disabilities Act and similar rules,
        other
        applicable ordinances, building codes, and permit requirements.

       

      4) Construction
        shall commence within twelve (12) months from the Effective Date. You shall
        notify us within (5) days after you commence construction, which means pouring
        concrete for the Hotel’s foundation or a finished slab for the Hotel.
        Construction shall continue uninterrupted (unless interrupted by force majeure)
        until the Hotel is completed. The term “force majeure” means an act of God, war,
        civil disturbance, government action, fire, flood, accident, hurricane,
        earthquake, or other calamity, strike, or other labor dispute.

      

      5) The
        Hotel
        must be ready to open for business within eighteen (18) months from the
        Effective Date (“Completion Date”). Within ten (10) days after the Completion
        Date, you must ask us to conduct a final inspection, which we shall promptly
        conduct. You may not open for business before our written authorization to
        do
        so, and you agree to open within ten (10) days after our authorization. Before
        the Opening Date, you must submit to us written certification that the Hotel
        is
        in compliance with the approved Plans and that the Hotel was constructed
        in
        compliance with our System Standards and is in compliance with all applicable
        laws. If you want to request an extension of the Completion Date, you must
        submit a written request and a Ten Thousand Dollar ($10,000) extension fee
        before the Completion Date. If we approve the extension, we will set a new
        Completion Date, and the extension fee will be non-refundable. If we deny
        the
        extension, we will refund the extension fee.

      

      B. Conversion
        of an Existing Facility

      

      1) You
        agree
        to renovate the Hotel in strict accordance with, and within the time frames
        set
        forth on, the attached property improvement plan (“PIP”) or in accordance with
        your renovation plans. At our request, you agree to submit your Hotel renovation
        plans to us for our approval. If we require you to submit your renovation
        plans,
        renovations may not begin until we approve the renovation plans in writing.
        After we approve the renovation plans, you may not change them without our
        prior
        written consent. Our approval of your renovation plans is exclusively for
        the
        purpose of ensuring compliance with our then current System Standards. Your
        failure to renovate the Hotel in strict accordance with the PIP and within
        the
        specified time frames constitutes a material breach of this Agreement and
        may
        lead to our issuing a default notice and subsequently terminating this
        Agreement. Commencement of renovation shall mean beginning any site work
        at the
        Hotel.

      

      2) The
        Hotel
        must be ready to open for business not later than six (6) months from the
        Effective Date unless otherwise provided in the PIP (“Completion Date”). Within
        ten (10) days after the Completion Date, you must ask us to conduct a final
        inspection, which we shall promptly conduct. You may not open for business
        before our written authorization to do so, and you must open within ten (10)
        days after our authorization. Before the Hotel’s Opening Date, you must submit
        written certification that the Hotel is in compliance with the approved plans
        and specifications prepared by the architect and that the Hotel was constructed
        in compliance with our System Standards and is in compliance with all applicable
        laws. If you want to request an extension of the Completion Date, you must
        submit a written request and a Ten Thousand Dollar ($10,000) extension fee
        before the Completion Date. If we approve the extension, we will set a new
        Completion Date, and the extension fee will be non-refundable. If we deny
        the
        extension, we will refund the extension fee.

      

      3) If
        this
        Agreement anticipates your conversion of an existing franchised facility
        to a
        Hyatt Place Hotel, then before any Proprietary Marks (including signage)
        are
        installed or displayed, and before the Hotel is authorized to open as a Hyatt
        Place Hotel, you must submit satisfactory evidence of the termination of
        your
        previous franchise agreement in accordance with applicable legal
        requirements.

      

      C. Our
        Role as an Advisor.

      

      You
        acknowledge that we act only in an advisory capacity and are not responsible
        for
        the adequacy or coordination of any plans or specifications, the integrity
        of
        any structures, compliance with applicable laws (including the Americans
        with
        Disabilities Act), any building code of any governmental authority, or any
        insurance requirement or for obtaining necessary permits, all of which shall
        be
        your sole responsibility and risk. You shall give us a written certificate
        or
        opinion from your architect, licensed professional engineer, or recognized
        expert consultant on the Americans with Disabilities Act stating that the
        Hotel
        conforms to the design standards and requirements of the Americans with
        Disabilities Act, related federal regulations, and all other applicable state
        and local laws, regulations, and other requirements governing public
        accommodations for persons with disabilities. At our request, you must give
        us
        copies of all other certificates of architects, contractors, engineers, and
        designers and such other similar verifications and information we reasonably
        request.

      

      

       

      ATTACHMENT
        D

      

      OUR
        RIGHT OF FIRST OFFER FOR STRATEGIC MARKETS

      

      By
        signing this Attachment D, we and you acknowledge that our right of first
        offer
        reflected in this Attachment D applies to this Agreement. If we and you do
        not
        sign this Attachment D, then it does not apply to this Agreement.

      

      If
        you
        (or any of your owners) at any time during the Term determine to sell or
        transfer for consideration this Agreement and the Hotel, or a Controlling
        Ownership Interest in you (except to or among your then current owners, which
        is
        not subject to this Attachment D), then you must first give us the opportunity
        to acquire those rights (the “Offered Rights”) by delivering written notice to
        us. Your notice must contain the specific terms and conditions of the proposed
        sale or transfer, including the proposed consideration and the terms of any
        financing you will provide for the proposed purchase price (the “Offer Terms”).
        The Offer Terms must relate exclusively to the Offered Rights and not to
        any
        other assets or rights.

      

      We
        will
        then have thirty (30) days after receiving the Offer Terms to notify you
        whether
        we elect to acquire the Offered Rights on the Offer Terms, provided that
        (1) we
        may substitute cash, a cash equivalent, or marketable securities for any
        form of
        payment proposed in the Offer Terms (such as ownership interests in an entity)
        and may elect to pay the net present value of any payments to be made over
        time;
        and (2) we must receive, and you and your owners agree to make, all customary
        representations, warranties, and indemnities in our purchase, including
        representations and warranties as to ownership and condition of and title
        to
        assets; liens and encumbrances on assets; validity of contracts and agreements;
        liabilities affecting the assets, contingent or otherwise; and indemnities
        for
        all actions, events, and conditions that existed or occurred in connection
        with
        the Hotel or your business before the closing. We have the unrestricted right
        to
        assign our right of first offer to a third party, who then will have the
        rights
        described in this Attachment D.

      

      If
        we
        exercise the right of first offer, the closing will take place at a location
        and
        on a date (within thirty (30) days after we deliver our notice of exercise
        to
        you) we choose. We and you will sign documents, including deeds, affidavits,
        transfers and assignments, and any other documents necessary or appropriate
        for
        the sale or transfer of the Offered Rights. You must satisfy all liens,
        mortgages, and/or encumbrances on the Hotel. We and you will share equally
        any
        closing costs. 

      

      If
        we
        notify you in writing that we do not intend to exercise our right of first
        offer
        with respect to any Offer Terms, or fail to notify you of our decision within
        the thirty (30)-day period described above, then you thereafter may offer
        the
        Offered Rights to any third party on terms no more favorable to that party
        than
        the Offer Terms. However, you or your owners may sell or transfer the Offered
        Rights only if we otherwise approve the transfer in accordance with, and
        you
        (and your owners) and the transferee comply with the conditions in,
        Sections 8B and C above. This means that, even if we do not exercise our
        right of first offer, if the proposed transfer otherwise would not be allowed
        under Sections 8B and C above, you (or your owners) may not move forward
        with
        the transfer at all. 

      

      Later,
        you may determine to offer the Offered Rights on terms which are more favorable
        to the buyer than the Offer Terms, or you may determine to change the Offered
        Rights. If you do, then you must first offer those new terms to us according
        to
        the procedures described above. 

      

      By
        signing below, we and you acknowledge and agree that the terms of this
        Attachment D will apply to this Agreement.

      

      
        	
                 

                FRANCHISEE:

                 

                [INSERT
                  NAME]

                a
                  ___________ limited liability company

                 

                By:
                  

                Name:
                   

                Title:
                   

                 

                Date:
                   

                 

                Attest:
                  

              
	 
	
                FRANCHISOR:

                 

                HYATT
                  PLACE FRANCHISING, L.L.C.

                 

                By:
                  

                Senior
                  Vice President

                 

                 

                Date:
                   

                 

                Attest:
                   

              
	 

      

      

      

      MANAGEMENT
        COMPANY RIDER

      to
        the Franchise Agreement dated as of __________, 200__ (“Franchise
        Agreement”)

      Between
        Hyatt Place Franchising, L.L.C. (“Franchisor”) and

      ___________________
        (“Franchisee”)

      

      SELECT
        HOTELS GROUP, L.L.C. (“Management Company”) has entered into a Management
        Agreement with Franchisee under which Management Company will operate the
        Hyatt
        Place Hotel located at _________, _________, ______ (the “Hotel”) in accordance
        with the terms and conditions of the Franchise Agreement. However, under
        the
        Franchise Agreement, Management Company may not operate the Hotel without
        Franchisor’s consent, and Franchisor is unwilling to provide such consent unless
        Franchisee and Management Company agree to the terms of this Rider.

      

      In
        consideration of the rights granted to Management Company under the Management
        Agreement described above and of Franchisor’s consent (under the Franchise
        Agreement) to Management Company’s operation of the Hotel, Management Company
        hereby acknowledges and ratifies the terms and conditions of the Franchise
        Agreement and agrees to fully observe and be bound by all terms, conditions
        and
        restrictions regarding the management and operation of the Hotel set forth
        in
        the Franchise Agreement for as long as Management Company operates the Hotel,
        as
        if and as though Management Company had executed the Franchise Agreement
        as
“Franchisee” or “you,” including, without limitation, all terms and conditions
        of Section 3A of the Franchise Agreement (other than Subsections (13), (19)
        and
        (26)). Management Company further agrees to be bound by the confidentiality
        covenants set forth in Section 5F of the Franchise Agreement (including all
        remedies available to Franchisor under the Franchise Agreement for breach
        thereof) during and subsequent to its tenure as manager of the Hotel. However,
        notwithstanding the foregoing, nothing in this Rider constitutes an agreement
        of
        Management Company to pay or assume any financial obligation of Franchisee
        to
        Franchisor or to any third party. 

      

      Management
        Company agrees that Franchisor may enforce directly against Management Company
        those terms and conditions of the Franchise Agreement to which Management
        Company has hereby agreed to be bound. Franchisee acknowledges and agrees
        that
        any act or omission of Management Company relating directly or indirectly
        to the
        Hotel will be deemed and considered the act or omission of Franchisee for
        purposes of Franchisor’s rights and remedies under the Franchise Agreement
        (including, without limitation, Franchisee’s indemnification and defense
        obligations under Section 7B of the Franchise Agreement), any other agreement,
        or applicable law. Sections 12, 13 (excluding Subsection 13P, but including,
        without limitation, the provisions concerning arbitration, governing law,
        consent to jurisdiction and waivers of punitive damages and jury trial) and
        14
        of the Franchise Agreement, entitled “Relationship of Parties,” “Miscellaneous”
and “Compliance With Anti-Terrorism Laws,” respectively, are incorporated by
        reference in this Rider and will govern all aspects of Franchisor’s and
        Management Company’s relationship and this Rider as if fully restated within the
        text of this Rider, with all references to “Franchisee” or “you” interpreted as
        references to Management Company. 

      

      

      HYATT
        PLACE FRANCHISING, L.L.C.  MANAGEMENT
        COMPANY:

      a
        Delaware limited liability company

      SELECT
        HOTELS GROUP, L.L.C.

      a
        Delaware limited liability company

      By:
         

      Name:
          By:
         

      Title:
          Name:
         

      Title:
         

      

      

      FRANCHISEE:

      

      [INSERT
        NAME]

      a
        ____________ limited liability company

      

      By:
         

      Name:
         

      Title:
         

      

      FIRST
        AMENDMENT TO 

      FRANCHISE
        AGREEMENT 

      

      The
        Hyatt
        Place Hotel Franchise Agreement dated ___________, 200__ (the “Franchise
        Agreement”) by and between Hyatt Place Franchising, L.L.C. (“Franchisor,” “we,”
“our,” or “us”) and __________________ (“Franchisee,” “you” or “your”) for the
        hotel located at _________, _________, ________ (the “Hotel”), is hereby amended
        as set forth in this First Amendment to Franchise Agreement (“Amendment”) of
        even date therewith. The terms of this Amendment supersede any inconsistent
        or
        conflicting provisions in the Franchise Agreement.
        Capitalized terms used but not defined herein shall have the meanings ascribed
        to such terms in the Franchise Agreement. All references to section numbers
        contained herein refer to corresponding section numbers in the Franchise
        Agreement.

      

      Recitals

      

      The
        Hotel
        is one of several hotels (the “Portfolio Hotels”) owned by Equity Inns, Inc. or
        one of its affiliates (collectively, “ENN”) that, prior to the Opening Date,
        have been operated as AmeriSuites Hotels.

      

      The
        Hotel
        will be managed by an affiliate of Franchisor, Select Hotels Group, L.L.C.
        (“Select”) pursuant to that certain Management Agreement between Select and
        Franchisee of even date herewith (the “Management Agreement”). The time period
        during which the Hotel is managed by Select as a Hyatt Place Hotel is referred
        to herein as the “Select Management Period.”

      

      The
        parties wish to make certain changes to the Franchise Agreement.

      

      Now,
        therefore, in consideration of the mutual agreements contained herein and
        other
        good and valuable consideration, the receipt and sufficiency of which is
        hereby
        acknowledged, the parties agree as follows:

      

      1. The
        Franchise

      

      
        	 	
                a.

              	
                Grant.
                  The first (1st),
                  second (2nd),
                  third (3rd),
                  and fourth (4th)
                  sentences of Section 2.B. of the Franchise Agreement are hereby
                  deleted in
                  their entirety and are replaced by the
                  following:

              

      

      

      A. “During
        the five (5) year period immediately following the Opening Date (defined
        below)
        (the ‘Exclusivity Period’), neither we nor any of our affiliates will open and
        operate, or authorize any other party to open and operate, any other Hyatt
        Place
        Hotels, the physical premises of which are located within the geographic
        area
        described in Attachment
        B
        (‘Area
        of Protection’). Franchisee acknowledges and agrees that following the
        expiration of the Exclusivity Period, Franchisee shall no longer have any
        territorial protection and that the Area of Protection shall be null, void,
        and
        of no further force or effect. 

      

      Except
        for the limited territorial protection in the Area of Protection during the
        Exclusivity Period provided for above, there are no restrictions on us or
        our
        affiliates, your rights under this Agreement are nonexclusive in all respects,
        the Hotel has no territorial protection whatsoever, and we and our affiliates
        have the right without any restrictions at all to engage in any and all
        activities we and they desire (including any and all types of lodging
        facilities), at any time and place, whether or not using the Proprietary
        Marks
        or any aspect of the Hotel System, whether or not those activities compete
        with
        your Hotel, and whether or not we or our affiliates start those activities
        ourselves or purchase, merge with, acquire, or affiliate with businesses
        that
        already engage in such activities. We and our affiliates may use or benefit
        from
        common hardware, software, communications equipment and services, administrative
        systems, reservation systems, franchise application procedures, central
        purchasing, approved vendor lists, and personnel. You agree that you will
        not
        have any right to pursue any claims, demands, or damages based solely on
        the
        fact that we may derive benefit as a result of these common activities, whether
        under breach of contract, unfair competition, implied covenant of good faith
        and
        fair dealing, divided loyalty, or other theories, because you have expressly
        allowed us and our affiliates to engage in all such common
        activities.”

      

      
        	 	
                b.

              	
                Section
                  2.C. is hereby deleted in its entirety and replaced with the
                  following:

              

      

      

      
        	 	
                “C.

              	
                Opening.
                  You have no right to open the Hotel for business under the Hotel
                  System
                  unless and until we authorize you to do so in writing. The date
                  on which
                  you first open the Hotel for business shall be deemed the “Opening Date.”
                  You must not open the Hotel for business and begin operating the
                  Hotel
                  until: (1) you have properly developed and equipped the Hotel according
                  to
                  our System Standards and in compliance with all applicable laws,
                  rules and
                  regulations; (2) all pre-opening training for the Hotel’s personnel has
                  been completed to our satisfaction; (3) all amounts then due to
                  us and our
                  affiliates have been paid; (4) you have obtained all required certificates
                  of occupancy, licenses and permits to operate the Hotel; (5) you
                  have
                  given us copies of all insurance policies required under this Agreement,
                  or such other evidence of insurance coverage and payment of premiums
                  as we
                  request; (6) we have conducted a pre-opening inspection and approved
                  the
                  Hotel for opening; and (7) on or before the Opening Date, you must
                  execute
                  a mutual termination and release agreement, the form of which is
                  attached
                  hereto as Exhibit 1, (the “Mutual Termination Agreement”) with respect to
                  the AmeriSuites Hotel Franchise Agreement under which the Hotel
                  has been
                  operating prior to the Opening Date, to be effective as of the
                  Opening
                  Date. Your failure to executed the Mutual Termination Agreement
                  as
                  provided in (7) above shall be deemed a default of the Franchise
                  Agreement
                  for which we may terminate the Franchise Agreement immediately
                  upon notice
                  to you. Our determination that you have met all of our pre-opening
                  requirements will not constitute a representation or warranty,
                  express or
                  implied, that the Hotel complies with any laws or a waiver of your
                  non-compliance, or of our right to demand full compliance, with
                  such
                  pre-opening requirements.”

              

      

      

      2. Your
        Responsibilities.

      

      a. Section
        3.A.(2) is hereby deleted in its entirety and replaced with the
        following:

      

      “(2) 
        maintain
        the Hotel in good condition and repair and in a clean, safe, and orderly
        manner;”

      

      b. Section
        3.A.(17) is hereby deleted in its entirety and replaced with the following:
        

      

      “(17) Intentionally
        omitted;”

      

      c. Section
        3.A.(19) is hereby deleted in its entirety and replaced with the
        following:

      

      
        	 	
                “(19)
                  

              	
                pursuant
                  to our written request, send
                  us current information regarding the name, address, and telephone
                  number
                  of the financial institution (the “Lender”), if any, that provided or is
                  providing the financing enabling you to purchase or operate the
                  Hotel and
                  the name and telephone number of your contact at the
                  Lender;”

              

      

      d. Section
        3.A.(21) is hereby deleted in its entirety and replaced with the following:
        

      

      “(21)
         Intentionally
        omitted;”

      

      
        	 	
                e.

              	
                The
                  second sentence of Section 3.A.(25) is deleted in its entirety
                  and
                  replaced with the following:

              

      

      

      You
        may
        not install at the Hotel, without our prior written consent, any fixtures,
        furnishings, furniture, signs, property management, in room entertainment
        and
        other similar computer and technology systems necessary to the operations
        of the
        Hotel we have not previously approved.

      

      f. The
        first
        (1st)
        paragraph of Section 3.D.(2) is hereby deleted. 

      

      
        	 	
                g.

              	
                Section
                  3.D.(4)(a) is hereby deleted in its entirety and replaced with
                  the
                  following:

              

      

      

      “(a) a
        Royalty
        Fee (the “Royalty Fee”) equal to four percent (4%) of the Hotel’s Gross Rooms
        Revenue (as defined in Section 3.D.(6)) during the preceding
        month.”

      

      3. Our
        Responsibilities.

      

      
        	 	
                a.

              	
                The
                  first sentence of Section 4.B. is hereby deleted and replaced with
                  the
                  following:

              

      

      

      “You
        shall have access to the CRS, listings in advertising publications and the
        National Directory unless you are in default under this Agreement and such
        default is not capable of cure or has not been cured within the time period
        applicable in this Agreement.”

      

      
        	 	
                b.

              	
                The
                  last sentence of Section 4.B is hereby deleted and replaced with
                  the
                  following:

              

      

      

      “We
        may
        suspend your access to and listings in these sources while you are in default
        under this Agreement if such default is not capable of cure or has not been
        cured within the time period applicable in this Agreement.” 

      

      
        	 	
                c.

              	
                The
                  third (3rd)
                  paragraph of Section 4.D. is hereby deleted and replaced with the
                  following:

              

      

      

      “We
        will
        account for the Fund separately from our other monies (but we need not segregate
        the Fund from our assets). We will not use the Fund for any of our general
        operating expenses. However, we may use the Fund to pay the reasonable salaries,
        benefits and expenses of personnel who manage, administer and/or perform
        if and
        only to the extent that such salaries, benefits or expenses are directly
        attributable to services rendered to the Fund; the Fund’s other administrative
        costs; travel expenses of personnel while they are on Fund business; meeting
        costs; rent, utilities, other overhead costs, and other costs for equipment,
        supplies and other materials relating or allocable to Fund business; and
        other
        expenses that we incur in activities reasonably related to administering
        or
        directing the Fund and its programs, including conducting market research
        and
        other research and development activities, public relations, preparing
        advertising, promotion, and marketing materials, collecting and accounting
        for
        Contributions, paying Providers for services relating to the CRS and GDS,
        and
        paying for technical and support functions.”

      

      4. Proprietary
        Rights.

      

      
        	 	
                a.

              	
                The
                  last sentence of first (1st)
                  paragraph of Section 5.D. is hereby deleted and replaced with the
                  following:

              

      

      

      “We
        or
        our affiliates will reimburse you for your direct expenses incurred in
        connection with any modification or discontinuation of a Proprietary Mark
        during
        the first 24 months of this Agreement, not to include any loss of revenue
        due to
        any modified or discontinued Proprietary Mark. Thereafter, neither we nor
        our
        affiliates will reimburse you for your expenses of changing the Hotel’s signs,
        for any loss of revenue due to any modified or discontinued Proprietary Mark,
        or
        for your expenses of promoting a modified or substitute trademark or service
        mark.”

      

      5. Records
        and Audits.

      

      
        	 	
                a.

              	
                The
                  third sentence of Section 6.A. is hereby deleted and replaced with
                  the
                  following:

              

      

      

      “At
        our
        request, the fifteenth (15th)
        day of
        each month, you agree to prepare and send us a statement for the previous
        month,
        listing Gross Rooms Revenue, other Hotel revenues, room occupancy rates,
        reservation data, the amounts currently due under Section 3D, and other
        information we deem useful in connection with the Hotel System (the “Data”).”

      

      
        	 	
                b.

              	
                The
                  second sentence of Section 6.B. is hereby deleted in its entirety
                  and
                  replaced with the following:

              

      

      

      “We
        reserve the right to access the Hotel’s computer system independently to obtain
        sales information, occupancy information, and other Data. You must send us
        upon
        our request any information that we do not access independently from your
        computer system.”

      

      
        	 	
                c.

              	
                The
                  following language is hereby deleted from the first (1st)
                  sentence of Section 6.D.:

              

      

      

      “,
        certified by your chief financial or principal accounting officer to be true
        and
        correct.”

      6. Indemnity
        and Insurance.

      

      
        	 	
                a.

              	
                The
                  first (1st)
                  paragraph of Section 7.B. is hereby deleted and replaced with the
                  following:

              

      

      

      “B. Your
        Indemnification of Us.
        In
        addition to your obligation under this Agreement to procure and maintain
        insurance, you agree to indemnify, defend, and hold harmless us, our affiliates,
        and our and their respective owners, officers, directors, agents, employees,
        representatives,
        successors, and assigns (the “Indemnified Parties”) against, and to reimburse
        any one or more of the Indemnified Parties for, any and all claims, obligations,
        and damages directly or indirectly arising out of, resulting from, or in
        connection with (a) the application you submitted to us for the rights granted
        under this Agreement, (b) the construction, development, use, occupancy,
        or
        operation of the Hotel, including any claim or allegation relating to the
        Americans with Disabilities Act or any similar law concerning public
        accommodations for persons with disabilities 
        (except
        to the extent the claim, obligation or damage relates to the Copyrighted
        Materials or a prescribed System Standard),(c) any bodily injury, personal
        injury, death, or property damage suffered by any Hotel guest, customer,
        visitor, or employee, (d) claims alleging either intentional or negligent
        conduct, acts, or omissions by you relating to the operation of the Hotel
        or the
        Hotel System, and (e) your breach of the terms and conditions of this
        Agreement.”

      

      
        	 	
                b.

              	
                The
                  following language is hereby deleted from the third (3rd)
                  paragraph of Section 7.B.:

              

      

      

      “An
        Indemnified Party need not seek recovery from any insurer or other third
        party,
        or otherwise mitigate its losses and expenses, in order to maintain and recover
        fully a claim against you under this subparagraph.”

      

      
        	 	
                c.

              	
                The
                  fifth (5th)
                  paragraph of Section 7.B. is hereby amended to replace “five (5)” with
                  “ten (10).”

              

      

      

      7. Transfer.
        

      

      
        	 	
                a.

              	
                Sections
                  8.B and 8.C are hereby deleted in its entirety and replaced with
                  the
                  following:

              

      

      

      
        	 	
                “B.

              	
                Transfer
                  by You.
                  You understand and acknowledge that the rights and duties this
                  Agreement
                  creates are personal to you and your owners and that we have granted
                  you
                  the franchise in reliance upon our perceptions of your and your
                  owners’
                  collective character, skill, aptitude, attitude, business ability,
                  and
                  financial capacity. Accordingly, neither this Agreement (or any
                  interest
                  in this Agreement), a Controlling Ownership Interest in the Hotel
                  or
                  substantially all of the assets of the Hotel, or a Controlling
                  Ownership
                  Interest in you or your owners (if such owners are legal entities)
                  may be
                  transferred without our prior written approval, which will not
                  be
                  unreasonably withheld if the conditions for transfer contained
                  in
                  Section 8.C. are satisfied; provided, however, that this Agreement
                  may be transferred without our prior written approval to an entity
                  in
                  which you or your owners own a Controlling Ownership Interest;
                  provided
                  that we will approve the sale of the Hotel and/or its assets where
                  the
                  purchaser does not, for any reason, assume this Agreement only
                  upon
                  payment by you of Liquidated Damages in accordance with Section
                  10.E. of
                  this Agreement. A transfer of the Hotel’s ownership, possession or control
                  or substantially all of its assets may be made only with a transfer
                  of
                  this Agreement. Any transfer without our approval is a breach of
                  this
                  Agreement and has no effect, meaning that you will continue to
                  be
                  obligated to us for all of your obligations under this Agreement.
                  

              

      

      For
        purposes of this Agreement, a “Controlling Ownership Interest” means greater
        than 50% of the equity interests in the Hotel, you or your owners. In the
        case
        of a proposed transfer of an ownership interest in the Hotel, you or one
        of your
        owners, the determination of whether a “Controlling Ownership Interest” is
        involved must be made as of both immediately before and immediately after
        the
        proposed transfer to see if a “Controlling Ownership Interest” will be
        transferred (because of the number of owners before the proposed transfer)
        or
        will be deemed to have been transferred (because of the number of owners
        after
        the proposed transfer). In addition, regardless of whether the threshold
        is
        satisfied, any transfer of effective control of the power to direct or cause
        the
        direction of your (or your owners’) management and policies to someone who did
        not possess such control as of the Effective Date constitutes the transfer
        of a
        Controlling Ownership Interest.

      

      In
        this
        Agreement, the term “transfer” includes a voluntary, involuntary, direct, or
        indirect assignment, sale, gift, or other disposition of any interest in
        this
        Agreement; you; the Hotel or substantially all of its assets; any of your
        owners
        (if such owner is a legal entity); or any right to receive all or a portion
        of
        the Hotel’s, your, or your owner’s profits or losses. An assignment, sale, gift,
        or other disposition includes the following events: (1) transfer of ownership
        of
        capital stock, a partnership or membership interest, or another form of
        ownership interest; (2) merger or consolidation or issuance of additional
        securities or other forms of ownership interest; (3) any sale of a security
        convertible to an ownership interest; (4) transfer of any right to receive
        all or a portion of the Hotel’s, your, or your owner’s profits or losses in an
        insolvency, or entity dissolution proceeding or otherwise by operation of
        law or
        (5) pledge of this Agreement (to someone other than us) or of an ownership
        interest in you or one of your owners as security, foreclosure upon the Hotel,
        or your transfer, surrender, or loss of the Hotel’s possession, control, or
        management. You may mortgage the Hotel (but not this Agreement) to a lender
        that
        finances your acquisition, development, and/or operation of the Hotel without
        having to obtain our prior written approval.

       

      
        	 	
                C.

              	
                Conditions
                  for Approval of Transfer.
                  If you (and your owners) are substantially complying with this
                  Agreement,
                  then, subject to the other provisions of this Section 8, we will
                  approve a transfer that meets all of the requirements in this Section
                  8.C.
                  You must pay us Two Thousand Five Hundred Dollars ($2,500) for
                  processing
                  and related costs we incur. In the event of a transfer to one of
                  your
                  affiliates of this Agreement (or any interest in this Agreement),
                  a
                  Controlling Ownership Interest in the Hotel or substantially all
                  of the
                  assets of the Hotel, or a Controlling Ownership Interest in you
                  or your
                  owners, we will waive the $2,500 processing fee.
                  

              

      

      If
        the
        proposed transfer requires our prior written approval pursuant to Section
        8.B.
        above, then all of the following conditions must be met before or concurrently
        with the effective date of the transfer:

      

      
        	 	
                (1)

              	
                the
                  transferee has the necessary business experience, aptitude, and
                  financial
                  resources to operate the Hotel and meets our then applicable standards
                  for
                  Hyatt Place Hotel franchisees. The proposed transferee must submit
                  to us a
                  complete application for a new franchise agreement (the “Change of
                  Ownership Application”), accompanied by payment of our then current
                  application fee (although no such fee is due if the transfer is
                  to the
                  spouse, child, parent, or sibling of the owner(s) or from one owner
                  to
                  another, or if to an affiliate in which you or your owners own
                  a
                  Controlling Interest). If we do not approve the Change of Ownership
                  Application, we will refund any application fee paid, if any, less
                  Two
                  Thousand Five Hundred Dollars ($2,500) for processing costs (if
                  to a
                  non-affiliate).

              

      

      

      We
        will
        process the Change of Ownership Application according to our then current
        procedures, including review of criteria and requirements regarding upgrading
        the Hotel, credit, background investigations, operations ability and capacity,
        prior business dealings, market feasibility, guarantees, and other factors
        concerning the proposed transferee(s) (and, if applicable, its owner(s))
        we deem
        relevant. We have sixty (60) days from receipt of the completed and signed
        application to consent or withhold our consent to the proposed transfer.
        

      

      
        	 	
                (2)

              	
                you
                  have paid all Royalty Fees, Contributions, and other amounts owed
                  to us,
                  our affiliates, and third party vendors; have submitted all required
                  reports and statements; and have not violated any material provision
                  of
                  this Agreement or any other agreement with us during both the sixty
                  (60)
                  day period before you requested our consent to the transfer and
                  the period
                  between your request and the effective date of the
                  transfer;

              

      

      

      
        	 	
                (3)

              	
                the
                  transferee’s general manager and other key personnel we specify, if
                  different from your general manager and key personnel, satisfactorily
                  complete our required training
                  programs;

              

      

      

      
        	 	
                (4)

              	
                the
                  transferee and its owners shall (if the transfer is of this Agreement),
                  or
                  you and your owners shall (if the transfer is of a Controlling
                  Ownership
                  Interest in you or one of your owners), sign a new franchise agreement
                  and
                  related documents (including guarantees and assumptions of obligations)
                  in
                  substantially the same form as this Agreement and the related documents
                  executed in connection herewith, the term of which franchise agreement
                  will be equal to the remaining unexpired portion of the
                  Term;

              

      

      

      
        	 	
                (5)

              	
                you
                  (and your transferring owners) sign our then current form of termination
                  agreement and a mutual general release, in a form satisfactory
                  to us, of
                  any and all claims against us and our owners, affiliates, officers,
                  directors, employees, and agents (not to include claims subject
                  to
                  indemnification obligations under this
                  Agreement);

              

      

      

      
        	 	
                (6)

              	
                we
                  have determined that the purchase price and payment terms will
                  not
                  adversely affect the transferee’s operation of the
                  Hotel;

              

      

      

      
        	 	
                (7)

              	
                you
                  sign all documents we request evidencing your agreement to remain
                  liable
                  for all obligations to us and our affiliates existing before the
                  effective
                  date of the transfer; and

              

      

      

      
        	 	
                (8)

              	
                except
                  to the extent you maintain a current Hyatt Place franchise agreement
                  at
                  another hotel, you will not directly or indirectly at any time
                  or in any
                  manner identify yourself or themselves in any business as a current
                  or
                  former Hyatt Place Hotel or as one of our franchisees; use any
                  Proprietary
                  Mark, any colorable imitation of a Proprietary Mark, or other indicia
                  of a
                  Hyatt Place Hotel in any manner or for any purpose; or utilize
                  for any
                  purpose any trade name, trade or service mark, or other commercial
                  symbol
                  that suggests or indicates a connection or association with
                  us.

              

      

      

      We
        may
        review all information regarding the Hotel that you give the proposed
        transferee, correct any information that we believe is inaccurate, and give
        the
        transferee copies of any reports that you have given us or we have made
        regarding the Hotel.

      

      Notwithstanding
        the foregoing, if
        this
        Agreement is being transferred to a single third-party purchaser (the “Portfolio
        Purchaser”) that we have approved as a transferee in accordance with this
        Section 8 as part of a single transaction in which ENN (as defined in the
        First
        Amendment hereto) is selling fifty percent (50%) or more of the Portfolio
        Hotels
        (as defined in the First Amendment hereto) to the Portfolio Purchaser (a
        “Portfolio Transaction”), then this Agreement, including the negotiated changes
        contemplated by the First Amendment hereto, may be assumed by the Portfolio
        Purchaser in lieu of the Portfolio Purchaser executing the then current form
        of
        franchise agreement, provided that the Portfolio Purchaser agrees to enter
        into
        an amendment to this Agreement that, among other things, requires the direct
        and
        indirect owners of the Portfolio Purchaser to execute a guaranty of the
        Portfolio Purchaser’s obligations under this Agreement in the form that we
        require. Nothing herein limits or otherwise affects your obligations to comply
        with the other conditions to transfer provided for in Section 8.C. with respect
        to a Portfolio Transaction.

      

      b. Section
        8.D. is hereby deleted in its entirety and replaced with the following:

      

      “D. Intentionally
        omitted.”

      

      c. Section
        8.E. is hereby deleted in its entirety and replaced with the following:

      

      “E. Intentionally
        omitted.”

      

      8. Condemnation
        and Casualty.
        The
        fourth sentence of Section 9.A. is hereby deleted and replaced with the
        following:

      

      
        	 	
                (1)

              	
                “If
                  a condemnation takes place, and you do not open a new hotel on
                  the site of
                  the Hotel within such eighteen (18) month period, we may terminate
                  this
                  Agreement immediately upon notice to you but will not require you
                  to pay
                  us any liquidated damages.”

              

      

      9. Termination.
        

      

      a. Section
        10.A. is hereby deleted in its entirety and is replaced with the
        following:

       

      
        	 	
                “A.

              	
                Expiration
                  of Term.
                  This Agreement will expire without notice at 12:00 a.m. Central
                  Daylight
                  Time on June 30, 2028, subject to its earlier termination as set
                  forth in
                  this Agreement. Subject to your renewal rights in Section 11.,
                  when the
                  Term expires, you must comply with our de-identification procedures
                  set
                  forth in Section 10.D. of this Agreement and/or in the Manual (the
                  “De-Identification Procedures”).”

              

      

      b. Section
        10.B. is hereby deleted in its entirety and replaced with the following:
        

      

      
        	 	
                “B.

              	
                Termination
                  by Franchisee.
                  You have the right to terminate this Agreement
                  if:

              

      

      

      
        	 	
                (1)

              	
                we
                  admit our inability to pay our debts as they become due or make
                  a general
                  assignment for the benefit of
                  creditors;

              

      

      

      
        	 	
                (2)
                  

              	
                we
                  commence or consent to any case, proceeding, or action seeking:
                  (i)
                  reorganization, arrangement, adjustment, liquidation, dissolution,
                  or
                  composition of debts under any law relating to bankruptcy, insolvency,
                  reorganization, or relief of debtors; or (ii) appointment of a
                  receiver, trustee, custodian, or other official for any portion
                  of its
                  property;

              

      

      

      
        	 	
                (3)
                  

              	
                we
                  take any corporate or other action to authorize any of the actions
                  set
                  forth above in Section 10.B.(1)(a) or
                  10.B.(2);

              

      

      

      
        	 	
                (4)
                  

              	
                any
                  case, proceeding, or other action against us is commenced seeking
                  an order
                  for relief against us as debtor, or seeking reorganization, arrangement,
                  adjustment, liquidation, dissolution, or composition of it or its
                  debts
                  under any law relating to bankruptcy, insolvency, reorganization,
                  or
                  relief of debtors, or seeking appointment of a receiver, trustee,
                  custodian, or other official for it or any portion of its property,
                  and
                  such case, proceeding, or other action: (i) results in an order
                  for relief
                  against us that is not fully stayed within seven (7) business days
                  after
                  being entered; or (ii) remains un-dismissed for forty-five (45)
                  days.”

              

      

      

      c. Section
        10.C.(1)(a) is hereby deleted and replaced with the following:

      

      
        	 	
                “(a)

              	
                you
                  fail to pay us or any of our affiliates any fees or other amounts
                  due
                  under this Agreement and do not cure that default within ten (10)
                  days
                  after delivery of our written notice of default to
                  you”

              

      

      

      d. Section
        10.C.(1)(d) is hereby deleted and replaced with the following:

      

      
        	 	
                “(d)

              	
                you
                  fail to comply with any other agreement with us or our affiliates
                  relating
                  to the Hotel (with the exception of any Management Agreement entered
                  into
                  between your and our affiliates) and do not cure that default within
                  thirty (30) days (or such shorter time period that the other agreement
                  specifies for curing that default) after delivery of our written
                  notice of
                  default to you ”

              

      

      

      
        	 	
                e.

              	
                Section
                  10.C.(2)(h) is hereby deleted in its entirety and replaced with
                  the
                  following:

              

      

      

      
        	 	
                “(h)

              	
                you
                  contest in any court or proceeding
                  all or any portion of our ownership of the Hotel System or the
                  validity of
                  any Proprietary Mark or Copyrighted
                  Materials;”

              

      

      

      f. Section
        10.C.(4) is hereby deleted in its entirety and replaced with the
        following:

      

      
        	 	
                “(4)

              	
                General.
                  No
                  notice of termination that we issue will relieve you of your obligations
                  that survive termination of this Agreement, including your
                  de-identification, indemnification, and liquidated damages payment
                  obligations.”

              

      

      

      
        	 	
                g.

              	
                The
                  third sentence of Section 10.D.(1) is hereby deleted in its entirety
                  and
                  replaced with the following:

              

      

      

      (1) “You
        agree to take the following steps, among other actions, to de-identify the
        Hotel: (a) return to us the Manual, all other Copyrighted Materials, and
        all materials containing Confidential Information or bearing any of the
        Proprietary Marks and cease using all such items; (b) remove all items
        identifying the Hotel System, including by taking the following actions:
        remove
        all elements of the trade dress and other distinctive features, devices,
        and/or
        items associated with the Hotel System, including FF&E that includes a
        Proprietary Mark, interior signage, lobby signage, door identifier signage,
        directional signage, phone face plates, memo pads, pens, cups, glasses, signage
        on the back of guest room doors, and all other signage bearing one or more
        of
        the Proprietary Marks.”

      

      h. Section
        10.E. is hereby deleted in its entirety and replaced with the
        following:

      

      
        	 	
                “E.

              	
                Payment
                  of Liquidated Damages.
                  You acknowledge and confirm that we will suffer substantial damages
                  as a
                  result of the termination of this Agreement, including lost Royalty
                  Fees,
                  lost Contributions, lost market penetration and goodwill, loss
                  of Hotel
                  System representation in the Hotel’s market area, confusion of national
                  accounts and individual customers, disadvantage in competing for
                  national
                  accounts and other types of bookings for the Hotel System, lost
                  opportunity costs, and expenses we will incur in developing another
                  franchise in the Hotel’s market area, all of which damages are difficult
                  to estimate accurately and proof of which would be burdensome and
                  costly,
                  although such damages are real and meaningful to us. Therefore,
                  upon
                  termination of this Agreement before the Term expires (except for
                  a
                  termination pursuant to Section 9A), you and we agree that we will
                  have
                  the right to upon written notice to you (“Liquidated Damages Notice”)
                  within fifteen (15) days after the date of such termination, to
                  receive
                  liquidated damages in a lump sum as calculated below as of the
                  effective
                  date of termination. You must pay us the liquidated damages within
                  fifteen
                  (15) days after the date of our Liquidated Damages Notice. If the
                  Hotel
                  had opened for business before the effective date of termination,
                  the
                  liquidated damages payable under this Section 10E(2) shall be equal
                  to the
                  greater of: (i) Four Thousand Dollars ($4,000) multiplied by the
                  number of
                  approved Guest Rooms at the Hotel; or (ii) either (1), (2) or (3)
                  below,
                  whichever is applicable.

              

      

      

      
        	 	
                (1)

              	
                If
                  this Agreement is terminated before the fifth (5th)
                  anniversary of the Opening Date, the product of (x) the number
                  of months
                  remaining between the month of termination and the eighth (8th)
                  anniversary of the Opening Date, multiplied by (y) the average
                  monthly
                  Royalty Fees and Contributions you owed us during the twelve (12)
                  month
                  period immediately preceding the month of termination (or for such
                  lesser
                  period that the Hotel has been open, if the Hotel has not then
                  been open
                  for at least twelve (12) months);

              

      

      

      
        	 	
                (2)

              	
                If
                  this Agreement is terminated on or after the fifth (5th)
                  anniversary of the Opening Date, but before the seventeenth
                  (17th)
                  anniversary of the Opening Date, the product of thirty-six (36)
                  multiplied
                  by the average monthly Royalty Fees and Contributions you owed
                  us during
                  the twelve (12) month period immediately preceding the month of
                  termination; or

              

      

      

      
        	 	
                (3)

              	
                If
                  this Agreement is terminated on or after the seventeenth (17th)
                  anniversary of the Opening Date, the product of (x) the number
                  of months
                  remaining between the month of termination and the twentieth
                  (20th)
                  anniversary of the Opening Date, multiplied by (y) the average
                  monthly
                  Royalty Fees and Contributions you owed us during the twelve (12)
                  month
                  period immediately preceding the month of termination. If the Hotel
                  had
                  not yet opened for business as of the effective date of termination,
                  you
                  agree to pay us liquidated damages in the amount of Four Thousand
                  Dollars
                  ($4,000) multiplied by the number of approved Guest Rooms at the
                  Hotel.
                  Notwithstanding any temporary fee reductions to which we might
                  have agreed
                  in an amendment(s) to this Agreement, all liquidated damages calculations
                  based on monthly fees shall be calculated on the full (and not
                  the
                  discounted) monthly Royalty Fees and Contributions required under
                  this
                  Agreement as of the Effective Date. You agree that the liquidated
                  damages
                  calculated under this Section 10E(2) represent the best estimate
                  of our
                  damages arising from any termination of this Agreement before the
                  Term
                  expires. Your payment of the liquidated damages to us will not
                  be
                  considered a penalty but, rather, a reasonable estimate of fair
                  compensation to us for the damages we will incur because this Agreement
                  did not continue for the Term’s full length. You acknowledge that your
                  obligation to pay us liquidated damages is in addition to, and
                  not in lieu
                  of, your obligations to pay other amounts due to us under this
                  Agreement
                  as of the date of termination and to comply strictly with the
                  de-identification procedures in Section 10D(1) and your other
                  post-termination obligations. If any valid law or regulation governing
                  this Agreement limits your obligation to pay, and our right to
                  receive,
                  the liquidated damages for which you are obligated under this Section,
                  you
                  shall be liable to us for any and all damages we incur, now or
                  in the
                  future, as a result of your breach of this
                  Agreement.”

              

      

      

      
        	 	
                i.

              	
                Anything
                  in Section 10. to the contrary notwithstanding, during the Select
                  Management Period, Franchisor will not terminate the Franchise
                  Agreement
                  based solely on defaults of the provisions that set forth the requirements
                  with respect to the operation of the Hotel contained in Section
                  3.A. of
                  the Franchise Agreement that are the responsibility of Select and
                  that are
                  solely within the control of Select, as manager of the Hotel. This
                  paragraph 9.j. shall be void and of no further force or effect
                  upon the
                  expiration or termination of the Select Management
                  Period.

              

      

      

      
        	 	
                j.

              	
                Anything
                  in the Franchise Agreement to the contrary notwithstanding, Section
                  10.C.(1)(d) shall not apply during the Select Management Period.
                  This
                  paragraph 9.k. shall be void and of no further force or effect
                  upon the
                  expiration or termination of the Select Management
                  Period.

              

      

      

      10. Miscellaneous.

      

      
        	 	
                a.

              	
                Section
                  13.E. is hereby deleted in its entirety and replaced with the
                  following:

              

      

      

      
        	 	
                “E.

              	
                Our
                  Withholding of Consent.
                  Except where this Agreement expressly obligates us reasonably to
                  approve
                  or not unreasonably to withhold our approval of any of your actions
                  or
                  requests, we have the right to refuse any request you make or to
                  withhold
                  our approval of any of your proposed, initiated, or completed actions
                  that
                  require our approval. However, we may withhold our consent, whenever
                  and
                  wherever otherwise required, if you are in default under this
                  Agreement.”

              

      

      

      
        	 	
                b.

              	
                The
                  phrase “specific performance” in Section 13.F. is hereby
                  deleted.

              

      

      

      
        	 	
                c.

              	
                Section
                  13.I. is hereby deleted in its entirety and replaced with the following:
                  

              

      

      

      “I. Intentionally
        omitted.”

      

      
        	 	
                d.

              	
                Section
                  13.M. is hereby deleted in its entirety and replaced with the
                  following:

              

      

      

      “M. Intentionally
        omitted.”

      

      11. Compliance
        with Anti-Terrorism Laws.
        Section
        14 is hereby deleted in its entirety and replaced with the
        following:

      

      “14. Compliance
        with Anti-Terrorism Laws

      Both
        parties hereto and their respective affiliates agree to comply, and to assist
        the other party to the fullest extent possible in efforts to comply, with
        Anti-Terrorism Laws (defined below). In connection with that compliance,
        both
        parties hereto and their respective affiliates certify, represent, and warrant
        that none of their property or interests is subject to being blocked under,
        and
        that they and their respective affiliates otherwise are not in violation
        of, any
        of the Anti-Terrorism Laws. “Anti-Terrorism Laws” mean Executive Order 13224
        issued by the President of the United States, the USA PATRIOT Act, and all
        other
        present and future federal, state, and local laws, ordinances, regulations,
        policies, lists, and other requirements of any governmental authority addressing
        or in any way relating to terrorist acts and acts of war. Any violation of
        the
        Anti-Terrorism Laws by either party or its affiliates, owners, or any blocking
        of they or their owners’ assets under the Anti-Terrorism Laws, shall constitute
        good cause for immediate termination of this Agreement by either party
        hereto.”

      

      12. Attachments.

      

      a. Attachment
        C is hereby deleted in its entirety.

      

      b. Attachment
        D is hereby deleted in its entirety.

      

      13. Construction.
        Except
        to the extent expressly set forth in this Amendment, the terms of the Franchise
        Agreement control. 

      

      IN
        WITNESS WHEREOF, Franchisor and Franchisee have executed this First Amendment
        to
        Franchise Agreement.

      

      

      FRANCHISOR:

      

      HYATT
        PLACE FRANCHISING, L.L.C.,

      a
        Delaware limited liability company

      

      

      By:
               

      Name:
               

      Title:       

      

      

      FRANCHISEE:

      

      [INSERT
        NAME],

      a
        ____________ limited liability company

      

      

      By:
               

      Name:
               

      Title:       

      

      

      

      
        
          
            

            Attachment
              D - Page 

            

            ~CHGO1:30678357.v1
              

            233586-4

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

      ANNEX
        B

      

       

      FORM
        OF HOTEL MANAGEMENT AGREEMENT

       

      between

       

      [INSERT
        NAME]

       

      a
        Delaware limited liability company

       

      and

       

      SELECT
        HOTELS GROUP, L.L.C.,

       

      a
        Delaware limited liability company

       

      DATED:
        _________, 200_

       

      THIS
        DOCUMENT CONTAINS WAIVERS OF PUNITIVE AND EXEMPLARY DAMAGES; SEE
ARTICLE
        XII
        AND SECTION
        13.4.

       

      FORM
        OF HOTEL MANAGEMENT AGREEMENT

       

      THIS
        HOTEL MANAGEMENT AGREEMENT (“Agreement”),
        is
        made and entered into as of _________, 200_, by and between ___________,
        a
        Delaware limited liability company (“Owner”),
        and
        SELECT HOTELS GROUP, L.L.C., a Delaware limited liability company (“Select”),
        an
        Affiliate of Global Hyatt Corporation.

      PRELIMINARY
        STATEMENT

       

      Owner
        is
        the lessee of that certain AmeriSuites Hotel, located at ________, __________,
        ____, situated on a real property more particularly described on Exhibit
        A
        attached
        hereto (“Site”).
        Owner
        proposes to convert and renovate such AmeriSuites Hotel to conform to and
        to
        meet the System Standards (as defined below) and the requirements under the
        Franchise Agreement (as defined below), and upon completion of such conversion
        and renovation desires to retain Select to manage and operate the Hotel (as
        defined below), as one of the Hyatt Place Hotels (as defined below), in
        accordance with the terms and conditions of this Agreement and the Franchise
        Agreement. Select desires to manage and operate the Hotel on behalf of Owner
        as
        herein provided. In connection with such conversion and renovation, Select
        or
        its Affiliates will be providing certain Pre-Opening Services (as defined
        below)
        during the Pre-Opening Period (as defined below) to assist in the conversion
        and
        renovation of the Hotel. Until such time as the Hotel has been converted
        and
        renovated to meet the System Standards and all requirements under the Franchise
        Agreement as a Hyatt Place Hotel, the Hotel will continue to be managed and
        operated by Existing Manager (as defined below) under the terms of the Existing
        Agreement (as defined below) as an AmeriSuites Hotel. Immediately prior to
        the
        Opening Date (as defined below) and the effectiveness of this Agreement,
        Owner
        and Existing Manager shall terminate the Existing Agreement, subject to the
        terms of this Agreement. Concurrently with the execution of this Agreement,
        certain Affiliates of Owner are entering into other hotel management agreements
        with Select, on terms materially similar to this Agreement, for management
        of
        each of the Affiliate Hotels (as defined below) as a Hyatt Place
        Hotel.

      NOW,
        THEREFORE, Owner and Select hereby agree as follows:

      ARTICLE
        I

       

       

      Definitions

       

      1.1 Definitions.

      In
        addition to any other definitions herein contained, the following terms shall
        have the respective meanings as indicated below:

      “Accountants”
shall
        have the meaning set forth in Section
        6.2.

       

      “Adjusted
        NOI”
shall
        mean, for any relevant period, Income After Undistributed Operating Expenses
        less deductions for the following amounts incurred for and allocable to such
        relevant period (but only to the extent that such amounts are not otherwise
        deducted in computing Income After Undistributed Operating
        Expenses):

       

      
        	 	
                (a)

              	
                An
                  amount equal to Maintenance Cap Ex Reserve as calculated under
                  Section
                  3.12
                  for such period;

              

      

       

      
        	 	
                (b)

              	
                The
                  cost of all insurance maintained by Owner and Select in accordance
                  with
                  the provisions of this Agreement, together with the cost of property
                  insurance and terrorism insurance (if any) maintained by Owner
                  with
                  respect to the Hotel;

              

      

       

      
        	 	
                (c)

              	
                All
                  real and personal property taxes referred to in Section
                  8.3
                  (less refunds, offsets or credits thereof, and interest thereon,
                  if any,
                  received during the period in
                  question);

              

      

       

      
        	 	
                (d)

              	
                The
                  Basic Fee and all fees payable under the Franchise
                  Agreement;

              

      

       

      
        	 	
                (e)

              	
                Lease
                  payments; and

              

      

       

      
        	 	
                (f)

              	
                All
                  other amounts deductible in respect of such period under the express
                  terms
                  of this Agreement.

              

      

       

      To
        the
        extent the Hotel is part of a mixed-use project (which, for this purpose,
        shall
        mean any project that includes, in addition to the Hotel, any facilities
        not
        subject to management or operation by Select hereunder), a portion of common
        costs relating both to the Hotel and to the non-Hotel portions of the project,
        such as, for example, but not by way of limitation, real estate taxes,
        insurance, common area landscaping, site maintenance, trash removal,
        extermination and other such costs intended for the benefit both of the Hotel
        and the non-Hotel portions of the development, shall be allocated in a fair
        and
        reasonable manner so that the Hotel shall bear only its fair and reasonable
        portion of such common expenses.

       

      “Affiliate”
shall
        mean, with respect to any Person, any other Person which, directly or
        indirectly, controls, is controlled by, or is under common control with,
        the
        subject Person. For purposes hereof, the term “control”
shall
        mean the possession, directly or indirectly, of the power to direct or cause
        the
        direction of the management and policies of such entity, either alone or
        in
        combination with any one or more Persons whether by contract, ownership or
        otherwise. Persons who are Affiliates of each other are sometimes herein
        referred to as being “Affiliated”.

       

      “Affiliate
        Hotels”
shall
        mean those other AmeriSuites Hotels, in addition to the Hotel, that are owned
        by
        the Affiliates of Owner, which are to be converted to and be franchised as
        Hyatt
        Place Hotels and to be managed by Select as set forth in the applicable
        Affiliate Hotel Management Agreement for each of such hotels pursuant to
        the
        terms thereof, which hotels are listed on Schedule
        1
        attached
        to this Agreement but which shall not include any of such hotels that are
        sold
        or transferred prior to completion of such Conversion in accordance with
        the
        terms of the Master Agreement.

       

      “Affiliate
        Management Agreements”
shall
        mean those hotel management agreements similar in material terms with this
        Agreement, entered into by the Affiliates of Owner for the management of
        the
        applicable Affiliate Hotels by Select pursuant to the terms
        thereof.

       

      “Annual
        Plan”
shall
        have the meaning set forth in Section
        3.10.

       

      “Basic
        Fee”
shall
        have the meaning set forth in Section
        5.1.

       

      “Building(s)”
shall
        mean all buildings and other permanent improvements constructed on the Site
        which shall include, without limitation, all buildings and other improvements
        comprising of guest rooms, parking, lobby, café, gallery and other public areas,
        and shall also include those hotel amenities and facilities which are permanent
        improvements to the Site such as swimming pools and the like.

       

      “Building
        Systems”
shall
        mean any structural, mechanical, electrical, plumbing, heating, ventilating,
        air
        conditioning and life safety equipment and systems; major architectural features
        or systems such as water features, curtain walls and roofs; major laundry
        appliances; major kitchen appliances; elevators and escalators; pumps, filters
        and other pool equipment; water features and other similar systems and items
        of
        equipment installed in or upon, and affixed to, the Building, whether or
        not the
        same may be movable and whether or not removal thereof would cause damage
        to the
        Building or the Site, excluding, however, any items of FFE.

       

      “Capital
        Budget”
shall
        have the meaning set forth in Section
        3.10.

       

      “Capital
        Expenditures”
shall
        mean any costs or expenses actually incurred after the Opening Date (excluding
        costs of initial construction, furnishing, equipping and opening of the Hotel)
        for the Hotel that are properly categorized as capital in nature under
        GAAP.

       

      “Capital
        Lease”
shall
        mean any lease of equipment or other items of personal property used in
        connection with the operation of the Hotel and which, under GAAP, is classified
        as a “capital lease”. Owner shall provide Select with such information
        (including, without limitation, a copy of the lease in question) as shall
        be
        relevant for purposes of determining whether said lease is properly classified
        as a capital lease under GAAP.

       

      “Chain
        Contracts”
shall
        mean those contracts entered into by Select with third party vendors of goods
        or
        services that are intended by Select to be available for use at all Select
        managed or operated Hyatt Place Hotels and other hotels managed or operated
        by
        Select or its Affiliates.

       

      “Conversion”
shall
        mean all construction, renovation, installation and work to be performed
        at the
        Hotel, both in the guest rooms and in the public areas and the equipping
        of the
        Hotel and purchase and stocking of the Operating Equipment, operating supplies
        and inventory items meeting the Systems Standards and all other requirements
        of
        the Franchise Agreement for purposes of the Hotel being converted to a Hyatt
        Place Hotel as set forth in the Master Agreement.

       

      “Conversion
        Cost”
means
        all amounts expended by Owner for the Conversion of the Hotel, including
        without
        limitation, all rebranding, construction and related costs as set forth in
        the
        scope of work attached to the Master Agreement, all FFE, all Operating Equipment
        and related costs required to be capitalized in accordance with GAAP, all
        operating systems and the cost associated with the personnel hired for the
        installation of the same, all fees and reimbursements for the Pre-Opening
        Services provided by contractors and vendors (recommended by Select) and
        Select
        and its Affiliates.

       

      “Corporate
        Personnel”
shall
        mean any personnel from the corporate offices of Select and its Affiliates
        who
        perform activities in connection with the services provided by Select in
        accordance with this Agreement.

       

      “CPI”
shall
        mean the Consumer Price Index for United States City Averages for All Urban
        Consumers, All Items, published from time to time by the United States Bureau
        of
        Labor Statistics (1982-84 = 100). If the CPI is discontinued or is unavailable
        or is substantially revised, a comparable index agreeable to Owner and Select
        reflecting the changes in the cost of living or the purchasing power of the
        consumer dollar, published by any governmental agency or recognized authority
        shall be used in place thereof. Unless otherwise provided, any CPI adjustment
        shall reflect CPI changes from the end of the CPI reporting period next
        preceding the Opening Date to the end of the CPI reporting period next preceding
        the effective date of any such adjustment.

       

      “Cumulative
        Period”
in
        connection with the calculation of Management Fees for any month shall mean
        the
        period from the beginning of the Fiscal Year in question to the end of the
        month
        for which the calculation is being made, not to exceed 12 months.

       

      “Debt
        Service”
shall
        mean both (i) the amount of principal and interest required to be paid under
        any
        indebtedness of Owner secured by a mortgage or other similar lien on the
        Hotel,
        or any part thereof or interest therein, and (ii) the amount of rent required
        to
        be paid under any Ground Lease.

       

      “Default”,
        “Event
        of Default”
and
        “Defaulting
        Party”
shall
        all have the meanings set forth in Sections
        13.1
        and
13.2.

       

      “Deficiency”
shall
        mean, for any relevant period, the amount by which Adjusted NOI is less than
        Owner’s Priority for such relevant period.

       

      “Employee
        Costs”
shall
        mean the aggregate compensation, including, without limitation, salary, fringe
        benefits, incentive compensation, bonuses, employee performance and service
        awards, and other such amounts paid or payable to Hotel employees, and other
        employee related costs such as payroll taxes and COBRA expenses less the
        net
        benefit of any tax credits (after deduction for any costs incurred in applying
        for or claiming said tax credits) received by Select during the applicable
        period in question by reason of employment at the Hotel. The term “fringe
        benefits” shall include, without limitation, the cost of profit sharing plans,
        workers’ compensation benefits, group life and accident and health insurance or
        equivalent benefits, and similar benefits available to Hotel employees by
        virtue
        of their employment.

       

      “Excess
        Adjusted NOI”
shall
        mean the amount by which Adjusted NOI exceeds Owner’s Priority.

       

      “Existing
        Management Agreement”
shall
        mean that certain Management Agreement dated January 1, 2002 by and between
        Owner and Existing Manager, as amended by that certain First Amendment to
        Management Agreement, dated May 14, 2003 between Owner and Existing Manager
        and
        further amended on October 3, 2006 by Owner and Existing Manager.

       

      “Existing
        Guarantee Termination Date”
shall
        mean ______, 200_, subject to the provisions of the Existing Management
        Agreement with respect to the occurrence of the 150 day extension or Date
        of
        Conversion, if applicable.

       

      “Existing
        Loan Documents”
        shall
        mean the loan agreements, notes, mortgages, deeds of trust, security agreements
        and other documents relating to the existing loans with respect to the
        Hotel.

       

      “Existing
        Manager”
shall
        mean _____________, an Affiliate of Select.

       

      “FFE”
shall
        mean all fixtures, furniture, furnishings and equipment located at the Hotel,
        together with all replacements therefore and additions thereto, but shall
        not
        include Operating Equipment.

       

      “Financial
        Records”
shall
        have the meaning set forth in Section
        6.1.

       

      “Financial
        Statements”
shall
        have the meaning set forth in Section
        6.2.

       

      “Fiscal
        Year”
shall
        mean the calendar year except that the first Fiscal Year hereunder shall
        commence on the Opening Date and end on December 31 of the same calendar
        year as
        the Opening Date, and the last Fiscal Year hereunder shall commence on January
        1
        of the calendar year in which the last day of the Term occurs or the earlier
        termination of this Agreement occurs and end on the date of the last day
        of the
        Term or the date of earlier termination of this Agreement.

       

      “Force
        Majeure”
or
        “Force
        Majeure Cause”
shall
        mean any one or more events or circumstances beyond the reasonable control
        of
        the party whose performance is affected thereby that, alone or in combination,
        adversely affects the operation of the Hotel whether or not such events or
        circumstances occur geographically in a location remote from the Hotel,
        including, without limitation, casualties, war, invasion, insurrection, acts
        of
        terrorism, sabotage, failure of transportation, inability to procure or general
        shortage of labor, equipment, facilities, materials or supplies in the open
        market, actions of labor unions, and governmental actions (but excluding
        causes
        which can be controlled by the reasonable expenditure of money in accordance
        with usual business practices).

       

      “Franchise
        Agreement”
refers
        to that certain Franchise Agreement, dated as of October 3, 2006, by and
        between
        Owner and Franchisor, pursuant to which the Hotel will be franchised as a
        Hyatt
        Place Hotel during the Term.

       

      “Franchisor”
shall
        mean Hyatt Place Franchising, L.L.C., an Affiliate of Select, and its successors
        and assigns.

       

      “Full
        Conversion Date”
shall
        mean a day which is on or after the Opening Date and the first day on which
        the
        last Affiliate Hotel is operating as a Hyatt Place Hotel pursuant to the
        terms
        of the applicable Franchise Agreement.

       

      “GAAP”
shall
        mean United States generally accepted accounting principles.

       

      “Gross
        Receipts”
for
        any
        period shall mean all revenues and income of any kind derived, directly or
        indirectly, from the operation of the Hotel during such period, including
        all
        revenues derived from the sale during such period of rooms, food and beverages,
        telephone revenue, revenue derived from any other revenue source and rents
        or
        fees payable by tenants or concessionaires for such period (but not the gross
        receipts of such sub-tenants or concessionaires). Without limiting the
        generality of the foregoing, it is the intention of the parties that the
        term
“Gross
        Receipts”
shall
        mean all amounts properly accounted for as Revenue or Total Revenue or Total
        Operated Departments in accordance with, and as defined in, the Uniform System.
        Notwithstanding the foregoing, there shall be excluded in determining Gross
        Receipts for any period the sum of (i) any sales, excise or occupancy taxes
        actually collected during such period in accordance with Legal Requirements
        from
        guests or patrons of the Hotel and either remitted, or required to be remitted,
        to appropriate taxing authorities; (ii) amounts collected from guests or
        patrons
        of the Hotel on behalf of Hotel tenants and other third parties; (iii) interest
        earned on funds held in Operating Accounts (if any); and (iv) insurance
        proceeds, condemnation proceeds, financing or refinancing proceeds and the
        proceeds of sale of any real or personal property comprising part of the
        Hotel
        (as distinguished from the sale of merchandise, food and beverage and other
        consumer goods or services). Gross Receipts shall in all events include only
        amounts actually paid or payable to the Hotel (in cash or services), and
        shall
        not include, except as otherwise herein expressly provided, (i) the value
        of any
        Hotel goods or services in excess of actual amounts paid (in cash or services)
        provided by the Hotel on a complimentary or discounted basis, (ii) gratuities
        or
        service charges collected for payment to Hotel employees and (iii) credits
        or
        refunds to Hotel guests.

       

      “Ground
        Lease”
shall
        mean any lease with respect to the Site, or the Site together with the Building,
        Building Systems and/or other real or personal property, or any part or parts
        thereof or interests therein, regardless of its term.

       

      “Ground
        Lessor”
shall
        mean the landlord or lessor under a Ground Lease.

       

      “Guarantee
        Termination Date”
shall
        mean the Existing Guarantee Termination Date.

       

      “Hotel”
shall
        mean the Site, the Building(s), the Building Systems, the FFE and the Operating
        Equipment, together with all other items of real and personal property at
        any
        time used in connection with the operation of the foregoing,
        collectively.

       

      “Hyatt
        Place Hotels”
shall
        mean all hotels that are owned, operated, or franchised by Franchisor under
        the
“Hyatt Place” name. No hotel shall be deemed a “Hyatt Place Hotel” solely by
        virtue of the fact that (i) it contains the word “Hyatt” in its name or refers
        to its affiliation with Select or its Affiliates (including Hyatt Corporation),
        such as, for example, but without limitation, “a Hyatt affiliated hotel”, “a
        Select affiliated hotel”, “a member of the Hyatt group of hotels”, “a member of
        the Select group of hotels”, “one of the family of Hyatt hotels”, “one of the
        family of Select hotels”, “by Hyatt”, “by Select”), or similar such references,
        or (ii) it participates in the Select central reservations system, in certain
        Shared Services as set forth in Exhibit
        C-1
        or
C-2
        or in
        the same programs offered by Select and its Affiliates such as Gold
        Passport®.

       

      “Incentive
        Fee”
shall
        have the meaning set forth in Section
        5.1.

       

      “Income
        After Undistributed Operating Expenses”
shall
        mean such amount as is calculated in the ninth edition of the Uniform System,
        without regard to any revisions or future editions thereof.

       

      “Legal
        Requirements”
shall
        mean any provision of law, including, without limitation, any statute,
        ordinance, regulation, rule, award or order of any governmental agency or
        tribunal having jurisdiction over the Hotel or its operations.

       

      “Lender(s)”
shall
        mean any Person, not Affiliated with Owner or any Ownership Participant,
        providing debt financing secured by the Hotel, for the development,
        construction, furnishing, equipping or operation of the Hotel, or to refinance
        any financing obtained for any of the foregoing purposes, and any of its
        successors or assigns.

       

      “Maintenance
        Cap Ex Reserve”
shall
        have the meaning set forth in Section
        3.12.

       

      “Management
        Fees”
shall
        mean the Basic Fee and the Incentive Fee, collectively and without distinction
        between them, and shall include the proceeds of any business interruption
        insurance required to be paid to Select with respect to lost Basic Fee or
        Incentive Fee or both.

       

      “Mandatory
        Contracts”
shall
        mean those Chain Contracts which, by the terms of such contracts, are, or
        by
        determination by Select should be, regarded as standard for all Select operated
        or managed Hyatt Place Hotels, and therefore in which participation therein
        by
        Hyatt Place Hotels is mandatory, subject to the terms of this Agreement.
        As set
        forth in Exhibit
        C-1,
        the
        costs of certain of the Mandatory Contracts (referred to as “Chargeable
        Mandatory Contracts”)
        shall
        be charged back to the Hotel, and such costs shall not be included in the
        flat
        monthly rate referenced in the Shared Services Costs.

       

      “Master
        Agreement”
shall
        mean that Master Agreement dated October 3, 2006 among Owner, Select and
        certain
        of their Affiliates.

       

      “Non-Disturbance
        Agreement”
shall
        mean either the “Creditor Non-Disturbance Agreement” or the “Lessor
        Non-Disturbance Agreement” referred to in Section
        4.3,
        without
        distinction between them.

       

      “Opening
        Date”
shall
        mean the day on which the Hotel shall first open for business to the public
        as a
        Hyatt Place Hotel, which shall occur only after Franchisor has inspected
        and
        approved the Conversion and acknowledges in writing that all requirements
        under
        the Franchise Agreement have been met for purposes of converting the Hotel
        to a
        Hyatt Place Hotel and that the Hotel is fully supplied and equipped and
        otherwise ready to open and operate as a Hyatt Place Hotel.

       

      “Operating
        Accounts”
shall
        mean the bank accounts into which all funds received from the management
        and
        operation of the Hotel, and all Owner contributions to Hotel working capital,
        shall be deposited, and from which Select shall pay Hotel costs and expenses.
        The Operating Accounts are continuing sole property of Owner and shall be
        subject to use by Select during the Term in accordance with the provisions
        of
        this Agreement.

       

      “Operating
        Budget”
shall
        have the meaning set forth in Section
        3.10.

       

      “Operating
        Equipment”
shall
        mean linens, china, glassware, silverware, uniforms and the like, excluding
        FFE.

       

      “Owner’s
        Priority”
shall
        mean an amount equal to nine and one-half percent (9.5%) of the Project
        Costs.

       

      “Owner’s
        Remittance Amount”
shall
        have the meaning set forth in Section
        3.14.

       

      “Owner’s
        Return”
shall
        have the meaning set forth in Section
        5.1.

       

      “Ownership
        Interest”
shall
        mean the interest in Owner owned by any Ownership Participant.

       

      “Ownership
        Participant”
shall
        mean any Person holding an ownership interest in Owner.

       

      “Person”
shall
        mean an individual, corporation, partnership, limited liability company,
        association, trust or other entity or organization, including a government
        or
        political subdivision or an agency or instrumentality thereof.

       

      “Pre-Opening
        Period”
shall
        mean the period from the date hereof up to, but not including, the Opening
        Date.

       

      “Pre-Opening
        Services”
shall
        mean the (i) services provided by the project manager recommended by Select
        to
        assist in and to oversee the Conversion and to coordinate with the vendors
        providing the FFE and Operating Equipment and operating supplies and inventory
        items and (ii) any other service provided by Select or its Affiliates to
        prepare
        and convert the Hotel as a Hyatt Place Hotel, not otherwise covered under
        the
        Franchise Agreement, including without limitation, recommendations of vendors
        and contractors to owner, assistance and review of the budget for the Conversion
        and approval of contractors and vendors hired by Owner.

       

      “Pritzker
        Family”
shall
        mean (i) all natural and adoptive lineal descendants of Nicholas J. Pritzker,
        deceased, and their spouses; (ii) all trusts for the benefit of any Person
        described in clause (i) and the trustees of such trusts in their capacities
        as
        such; (iii) all legal representatives of any Person or trusts described in
        clauses (i) or (ii); and (iv) all partnerships, corporations, limited liability
        companies or other entities controlled by or under common control with any
        Person, trust or other entity described in clauses (i), (ii) or (iii).
“Control”
for
        purposes of this definition shall mean the ability to direct or otherwise
        significantly affect the major policies, activities or actions of any
        Person.

       

      “Project
        Costs”
means
        the sum of (a) the actual gross (i.e., undepreciated) costs of the Hotel
        incurred and paid or accrued on or before December 31, 2006 by Owner, to
        the
        extent required to be capitalized under GAAP and (b) the Conversion Cost;
        LESS
        the amount equal to four percent (4%) of the Gross Receipts for twelve (12)
        months of the Fiscal Year during which the majority of the Conversion occurs
        (anticipated to be 2007). As soon as practicable after completion of the
        Conversion and after payment and determination of all costs and expensed
        in
        connection thereof, the parties shall execute a supplemental written agreement
        setting forth the amount of the Project Costs, which supplemental written
        agreement shall thereafter constitute a part of this Agreement and the Projected
        Costs reflected therein shall constitute the Projects Costs throughout the
        term
        of this Agreement, notwithstanding any subsequent or additional capital
        expenditures thereafter made or incurred, and without reduction for depreciation
        or amortization.

       

      “Proprietary
        Materials”
shall
        mean (i) all software from time to time owned by, or leased or licensed on
        an
        exclusive basis to, Select or Select’s Affiliates (including, without
        limitation, revisions or enhancements to otherwise commercially available
        software) together with related source and object codes, (ii) copyrighted
        materials, (iii) operating handbooks (including employee manuals, training
        materials, user manuals, and maintenance procedures), (iv) operating policies
        and procedures, (v) reporting and budgeting formats, (vi) Select promotional
        materials, (vii) recipes, (viii) customer information and customer contact
        lists
        for guests, patrons and groups patronizing other Hyatt Place Hotels (whether
        or
        not also patrons of the Hotel) or other hotels managed by Select or its
        Affiliates, (ix) data and information on potential guests or groups, not
        otherwise guests or groups patronizing the Hotel, (x) financial records of
        Select and its Affiliates (except as otherwise herein expressly provided),
        (xi)
        information relating to other Hyatt Place Hotels or other hotels managed,
        operated or franchised by Select or its Affiliates, (xii) room rates and
        other
        charges at hotels other than the Hotel, and (xiii) information that Select
        reasonably determines may not be disclosed by Select or its Affiliates under
        applicable Legal Requirements, including without limitation, privacy or identity
        theft laws, in each case, as used in the operation of the Hotel as a Hyatt
        Place
        Hotel but shall not include any of the foregoing to which Owner is entitled
        pursuant to the Franchise Agreement.

       

      “Purchasing
        Company”
shall
        mean any company or companies designated by Select from time to time, which
        may
        or may not be a Select Affiliate, to provide purchasing services to Select
        operated or managed Hyatt Place Hotels as described in Section
        3.7.

       

      “Refurbishing
        Program”
shall
        mean (i) any program for replacement of or additions to a major portion of
        FFE
        as part of a program to renovate a block of not less than 25% of the guest
        rooms
        and suites in the Hotel at a single time or (ii) any program of replacement
        of
        carpeting, furnishings, fixtures or wall coverings in twenty-five percent
        (25%)
        or more of the Hotel public space square footage, which shall mean the lobby,
        guest room corridors and café.

       

      “Rosemont”
shall
        mean Rosemont Project Management, LLC, an Affiliate of Select.

       

      “Select’s
        Grossly Negligent Acts or Willful Misconduct”
shall
        mean any gross negligence, willful misconduct or fraud committed by Select
        or
        its Affiliates, in the performance of Select’s duties under this
        Agreement.

       

      “Senior
        Executive Personnel”
shall
        mean the individuals employed from time to time as the Regional or Divisional
        Vice President with oversight responsibility for the Hotel, Senior Vice
        President-Operations and Senior Vice President and Managing Director (or
        serving
        such functions, regardless of the specific titles given to such
        individuals).

       

      “Shared
        Services”
shall
        mean those services provided to Hyatt Place Hotels by Select or its Affiliates
        on a centralized services platform for finance, accounting, human resources.
        information technology and other operating systems, excluding, however, any
        services provided under the Franchise Agreement. Attached hereto as Exhibit
        C-1
        is a
        brief description of Select’s current Mandatory Shared Services (as such term is
        defined in Exhibit
        C-1,
        and
        such Services shall be subject to revision, addition or deletion from time
        to
        time) provided to the Hotel and covered under Shared Services Costs. Select
        will
        not add additional categories of Shared Services to those set forth as items
        1-6
        on Exhibit
        C-1,
        without
        the prior approval of Owner, which shall not be unreasonably withheld. Attached
        hereto as Exhibit
        C-2
        is a
        brief description of Select’s current Non-Mandatory Shared Services (as such
        term is defined in Exhibit
        C-2,
        and
        such Services shall be subject to revision, addition or deletion from time
        to
        time) available to the Hotel and other Hyatt Place Hotels, not covered by
        Shared
        Services Costs, and for which Owner may elect to opt in at additional
        cost.

       

      “Shared
        Services Costs”
shall
        mean all costs actually incurred or properly accrued by Select or its Affiliates
        for the applicable period in respect of Shared Services for Select managed
        or
        operated Hyatt Place Hotels and other hotels managed or operated by Select
        or
        its Affiliates (including all hotels owned by Select or its Affiliates),
        as set
        forth on Exhibit
        C-1,
        including without limitation, any costs or expenses payable to third party
        vendors or employees of Select or its Affiliates (including support personnel)
        engaged in the rendition of such Shared Services as permitted by the express
        terms of this Agreement. The Shared Services Costs shall be allocated to
        and be
        paid by the Hotel on the same basis as the other hotels receiving Shared
        Services and may include an allocation of certain shared costs such as employee
        costs, occupancy costs, utilities and the like. The Shared Services Costs
        are
        comprised of (i) a flat monthly rate of Three Thousand Dollars ($3,000) charged
        to the Hotel and other hotels without any mark up, premium or profit for
        the
        items listed as 1-6 of Exhibit
        C-1;
        and
        (ii) costs associated with the Chargeable Mandatory Contracts that are charged
        back to the Hotel listed as item 7 in Exhibit
        C-1.
        The
        flat monthly rate for Shared Services Costs may be reasonably adjusted by
        Select
        from time to time, but not more than once annually and Owner shall be notified
        of any such adjustment when the Operating Budgets for the immediately succeeding
        Fiscal Year are submitted to Owner by Select under the provisions of
Section
        3.10.
        In any
        case in which employees of Select or any of its Affiliates devote less than
        all
        of their time to the rendition of Shared Services, the cost of such employees
        shall be allocated in a reasonable manner determined in good faith by Select
        to
        reflect the portion of time devoted by such employees to Shared Services.
        Other
        shared costs such as occupancy costs, utilities and the like relating only
        partially to Shared Services shall likewise be allocated by Select to Shared
        Services Costs on a fair and reasonable basis as determined in good faith
        by
        Select. Any such allocation of shared personnel or other costs made by Select
        in
        good faith and with the intention of fairly allocating such costs shall be
        binding on the parties hereto. Shared Services Costs shall include only the
        actual amounts thereof incurred by Select and its Affiliates, and shall not
        be
        subject to any mark up, premium or profit. Any rebates, commissions or discounts
        received by Select and its Affiliates from vendors or service providers whose
        costs are included as part of Shared Services Costs, shall be offset against
        Shared Services Costs, which offset shall be reflected in any future adjustments
        of Shared Services Costs.

       

      “Successor
        Manager”
shall
        mean any Person (including Owner or any Affiliate of Owner) designated by
        Owner
        as the manager and operator of the Hotel to succeed Select upon expiration
        or
        earlier termination of this Agreement.

       

      “System
        Standards”
shall
        have the meaning assigned to such term in the Franchise Agreement.

       

      “Term”
shall
        have the meaning set forth in Section
        2.3.

       

      “Uniform
        System”
shall
        mean the “Uniform System of Accounts for the Lodging Industry”, ninth revised
        edition, as adopted by the Hotel Lodging Association of New York City, Inc.,
        and
        the American Hotel & Lodging Association, as the same may be modified,
        amended, supplemented or superseded by any subsequent editions or revisions
        thereto, except where, and to the extent, a specific edition has been specified
        in this Agreement.

       

      “WARN”
or
        “WARN
        Act”
shall
        mean the United States Worker Adjustment Retraining and Notification Act,
        together with any state and local laws, ordinances or regulations of similar
        import applicable to the Hotel, all as the same may have heretofore, or may
        hereafter, be amended.

       

      1.2 References.

      All
        references in this Agreement to particular sections or articles shall, unless
        expressly otherwise provided or unless the context otherwise requires, be
        deemed
        to refer to the specific sections or articles in this Agreement. In addition,
        the words “hereof”, “herein”, “hereunder” and words of similar import refer to
        this Agreement as a whole and not to any particular section or
        article.

      ARTICLE
        II

       

       

      Appointment
        of Manager and Term

       

      2.1 Appointment
        of Manager.

      Owner
        hereby appoints Select as its sole and exclusive agent to supervise, direct,
        control, manage and operate the Hotel, and all of the facilities and amenities
        comprising any part of the Hotel for the Term and Select hereby accepts said
        appointment and shall supervise, direct, control, manage and operate the
        Hotel
        during the Term strictly in accordance with and subject to, the terms and
        conditions of this Agreement. In the performance of its duties and obligations
        hereunder, Select agrees that it shall at all times (i) manage and operate
        the
        Hotel for the account and benefit of the Owner in a business-like and efficient
        manner in accordance with the terms of this Agreement and the Franchise
        Agreement and (ii) use that degree of skill, care and diligence as is customary
        and usual of operators of select service hotels in the United States, subject
        in
        all cases to the System Standards and to the terms and conditions of this
        Agreement.

      2.2 Chain
        Conflicts.

      Owner
        has
        chosen Select for the supervision, direction, control, management and operation
        of the Hotel in substantial part because of Select’s management and operation of
        a chain of select service hotels, and the benefits that Owner expects to
        derive
        by including the Hotel as part of Hyatt Place Hotels pursuant to the terms
        of
        this Agreement and the Franchise Agreement. Owner has determined, on an overall
        basis that the benefits of operation as part of Hyatt Place Hotels are
        substantial notwithstanding that not all Hyatt Place Hotels will benefit
        equally
        by inclusion therein. Owner consents to the operation by Select of its chain
        of
        hotels and to the addition of other hotels to the chain of Hyatt Place Hotels
        wherever located (including the operation or addition of other hotels that
        may
        otherwise be deemed competitive with the Hotel), subject to the terms of
        the
        Franchise Agreement.

      2.3 Term.

      This
        Agreement shall be effective on and as of the date hereof. The Term of this
        Agreement, however, shall commence on the Opening Date and shall continue
        until
        11:59 p.m. (local time at the Hotel) on the earlier of (i) the tenth (10th)
        anniversary from the Full Conversion Date, unless this Agreement is sooner
        terminated as herein provided; or (ii) the expiration or termination of the
        Franchise Agreement. On the Full Conversion Date, Owner and Select shall
        enter
        into an addendum of this Agreement, in the form of Exhibit
        B
        attached
        hereto setting forth the date of the Full Conversion Date and the date on
        which
        the Term expires and a counterpart of such addendum shall be attached to
        and
        become a part of each counterpart of this Agreement.

      2.4 Gaming
        Regulations.
        As
        previously disclosed to Owner, certain Select Affiliates are engaged, in
        the
        United States and certain foreign countries, in the ownership and operation
        of
        gaming facilities. As such, Select and its Affiliates are subject to licensing
        and other gaming regulations which, among other things, prohibit association
        by
        Select with Persons deemed, by gaming regulators, to be unsuitable. To be
        compliant with gaming regulations, Select periodically undertakes a gaming
        compliance review. Owner agrees to use reasonable efforts to provide Select
        such
        information regarding Owner and its Affiliates and Ownership Participants
        (other
        than proprietary confidential or non-public information) as Select reasonably
        requests to complete its compliance review, and will use reasonable efforts
        to
        obtain such information from actual or potential Lenders and Ground Lessors,
        all
        at Select’s sole cost and expense. In addition, if, at any time during the Term,
        or during the Pre-Opening Period, either Select or any of its Affiliates
        receives notice from any gaming regulatory authority in any jurisdiction
        in
        which Select, or its said Affiliates, conducts, or intends to conduct, gaming
        operations, requesting information regarding Owner or any Ownership Participant,
        Owner agrees that it shall, and shall cause said Ownership Participant to,
        provide such information to Select promptly at Select’s sole cost and expense.
        In the event any gaming regulator shall determine that any gaming license
        applied for or held by Select, or any of its Affiliates, are subject to denial,
        revocation or non-renewal by reason of Select’s association with Owner or any
        Ownership Participant, or any Lender or Ground Lessor, Select shall have
        the
        right, exercisable by written notice to Owner, to terminate this Agreement
        (and,
        if applicable, the Franchise Agreement), and all the rights and obligations
        of
        the parties hereunder (and, if applicable, under the Franchise Agreement),
        such
        termination to be effective upon the date (not sooner than ninety (90) days
        nor
        later than one hundred eighty (180) days after delivery of said notice) set
        forth in the notice from Select to Owner.

      2.5 Termination
        for Failure to Meet Owner’s Priority.
        Starting on the day which is the fifth (5th)
        anniversary date from the Full Conversion Date, and each anniversary thereafter,
        if the Adjusted NOI of the Hotel for the Fiscal Year immediately preceding
        such
        anniversary date is less than Owner’s Priority, either Owner or Select shall
        have the right to terminate this Agreement by notifying the other of such
        termination in writing within ninety (90) days following the applicable
        anniversary date, provided that Owner has received the Adjusted NOI calculation
        from Select not less than thirty (30) days following such anniversary date.
        If
        Owner does not receive the Adjusted NOI calculation from Select within thirty
        (30) days following such anniversary date, the period in which Owner may
        terminate this Agreement pursuant to this Section
        2.5
        shall be
        extended for such number of days as are necessary to provide Owner with a
        full
        60 day period in which to terminate this Agreement following receipt of the
        calculation of Adjusted NOI. The effective termination date shall be specified
        in such notice, but shall not be on a day which is less than ninety (90)
        days or
        more than one hundred twenty (120) days from the date of the written notice.
        Upon such termination, unless the Franchise Agreement is then in default
        beyond
        any applicable cure period, the Franchise Agreement shall continue to remain
        in
        full force and effect pursuant to the terms thereof and the provisions of
        Article
        XV
        shall
        govern with respect to the transition required for such termination of this
        Agreement. Notwithstanding such termination, all amounts incurred by Select
        and
        its Affiliates pursuant to the terms and conditions of this Agreement shall
        be
        due and payable in accordance with the provisions of this
        Agreement.

      2.6 Termination
        of Existing Agreement.
        The
        Opening Date shall occur as soon as practicable after the receipt of written
        approval of the Conversion from Franchisor in accordance with the Franchise
        Agreement. In connection with the execution hereof, Owner and Existing Manager
        shall execute a termination agreement, terminating the Existing Agreement
        as of
        the Opening Date, which termination agreement shall be in the form of
Exhibit
        D
        attached
        hereto setting forth the effective date of the termination.

      2.7 Franchise
        Royalty Fee.
        Notwithstanding anything to the contrary in this Agreement or the Franchise
        Agreement, during the first sixty (60) months after the Full Conversion Date,
        Franchisor, by execution hereof, agrees that the Royalty Fee (as defined
        in the
        Franchise Agreement) otherwise payable by Owner for any Fiscal Year shall
        be
        reduced, up to the full amount of any such Royalty Fee as calculated under
        the
        Franchise Agreement, in the event of any Deficiency for such Fiscal Year,
        to the
        extent of the Deficiency remaining after reduction of the Basic Fee in
        accordance with Section
        5.1(b).
        The
        obligation of Franchisor to reduce or eliminate its Royalty Fee in any Fiscal
        Year is limited to the full amount of the Deficiency for such Fiscal Year
        only,
        and the Royalty Fee for any Fiscal Year shall not be reduced as a result
        of any
        Deficiency in any prior or subsequent Fiscal Year. Owner hereby agrees that,
        for
        any Fiscal Year, the combined obligation of Franchisor and Select to reduce
        their respective fees as set forth in this Section
        2.7
        and
Section
        5.1
        shall
        not exceed the amount of Deficiency for such Fiscal Year. In each Fiscal
        Year
        during which both the Royalty Fee and the Basic Fee are reduced due to a
        Deficiency, the Basic Fee shall be reduced in full before the Royalty Fee
        is
        reduced to cover any remaining amount of the Deficiency.
        To the
        extent Franchisor has received any such Royalty Fees it will remit such fees
        to
        Owner as determined herein. See example set forth on Exhibit
        E
        hereto
for
        a
        demonstration of this calculation.

      ARTICLE
        III

       

       

      Operating

       

      3.1 Operating
        Authority in General.

      Select
        shall operate the Hotel only for its intended purpose as a hotel conforming
        to
        the System Standards. In performing its duties and responsibilities hereunder,
        Select shall have the sole and exclusive right and full authority to direct,
        manage and control all aspects of the management and operation of the Hotel,
        in
        the discretion of Select, in accordance with the terms and conditions of
        this
        Agreement and the System Standards. Such authority shall include the right
        and
        power to negotiate and enter into such reasonable contracts as may be reasonably
        necessary or advisable in connection with the operation of the Hotel, the
        right
        to determine the terms of admittance, charges for rooms, charges for
        entertainment, food and beverage, the right to set labor policies (including
        wage rates and fringe benefits and other items comprising Employee Costs),
        the
        right to advertise and market the Hotel alone, as part of the chain of Hyatt
        Place Hotels or as part of the chain of other Hyatt hotels, and all phases
        of
        promotion and publicity relating to the Hotel, and otherwise to do and perform
        all such acts and things as may be reasonably necessary or desirable to fulfill
        its express duties and obligations hereunder consistent with and in accordance
        with the terms of this Agreement. Select shall not have the right to enter
        into
        collective bargaining agreements and labor or other employment agreements
        binding or affecting the Hotel (unless ordered to do so by a court of law)
        without the consent of Owner, which consent may be withheld in Owner’s sole
        discretion. Select and its Affiliates also shall not have the right to enter
        into collective bargaining agreements and labor or other employment agreements
        for other properties, whether master agreements or otherwise, that govern
        the
        Hotel or agree to grant concessions or set wages that affect the Hotel (unless
        ordered to do so by a court of law) without the consent of Owner, which can
        be
        withheld in Owner’s sole discretion. In addition, Select shall have reasonable
        and customary operating discretion and authority consistent with the terms
        of
        this Agreement.

      3.2 Specific
        Covenants, Duties and Obligations of Select.

      In
        addition to each of the other covenants, duties and obligations of Select
        hereunder, Select hereby agrees, throughout the Term, that it shall (and
        shall
        have full right and authority to), subject in all events to the availability
        of
        adequate funds in the Operating Accounts and the overall standard of skill,
        care
        and diligence set forth in Section
        2.1:

      (a) Establish
        rates for hotel usage including room rates for individuals and groups, charges
        for food and beverage and for use of recreational or other guest facilities
        or
        amenities at the Hotel. Select shall not provide rooms, goods or services
        on a
        complimentary or discount basis except as reasonably approved by Owner and
        in
        accordance with the Franchise Agreement and Select’s standard policies in
        effect, from time to time. The Hotel’s general manager shall have the right, in
        his/her discretion, to grant discounted or complimentary rooms, food, beverage
        or other hotel services, consistent with industry standards, when he/she
        reasonably deems the same to be in the best business interests of the Hotel.
        All
        such discounts and complimentary grants shall be disclosed at least monthly
        to
        Owner.

      (b) Establish
        and maintain a sound system of accounting and record keeping, with adequate
        systems of internal accounting controls so as to enable Owner to comply with
        applicable Legal Requirements. In addition to the foregoing, Select shall
        develop and implement an appropriate records management and retention system
        and
        policies, providing for the maintenance, storage and destruction of Hotel
        records.

      (c) Take
        good
        care of the Hotel and use reasonable efforts to maintain the same in good
        condition and repair throughout the Term including all portions of the Building,
        Building Systems, FFE and Operating Equipment, all in accordance with
        maintenance programs established by Select from time to time and as required
        by
        the Franchise Agreement for the Hotel, subject to ordinary wear and tear,
        the
        availability of funds, the limitations on Capital Expenditures herein set
        forth,
        and Force Majeure Causes. In connection with the foregoing, Select shall
        arrange
        for all maintenance and service contracts reasonably necessary for the
        maintenance and protection of the Hotel, and its various parts, including,
        without limitation, elevator maintenance, extermination services, trash removal,
        fuel supply and utility services, any of which may be provided through a
        Purchasing Company contract or other contracts with other third parties and
        all
        of which shall be set forth in the Annual Plan.

      (d) Upon
        request of Owner from time to time, make available, for inspection (but not
        copying) by Owner, copies of all employee handbooks, manuals, policies and
        procedures, including, without limitation, copies of employee manuals and
        handbooks, in effect at the Hotel, all of which are Proprietary Materials
        and
        shall be kept confidential by Owner and returned to Select upon expiration
        or
        earlier termination of this Agreement.

      (e) Pay
        all
        bills and invoices for the Hotel other than Debt Service, real estate and
        personal property taxes and insurance premiums (unless Owner has elected
        to
        participate in Select’s insurance programs and then only to the extent it has so
        elected) and cooperate with Owner in contesting any such taxes, should Owner
        so
        elect.

      (f) As
        agent
        for Owner, (i) enforce the rights of Owner under any leases, licenses or
        concession agreements with respect to the Hotel, and provide for the benefit
        of
        all tenants, licensees or concessionaires those Hotel services required to
        be
        provided by Owner as landlord thereunder and (ii) without limiting the
        generality of the foregoing, use commercially reasonable efforts to collect
        all
        rents from tenants, licensees and concessionaires and shall deposit the same
        in
        the Operating Accounts, all subject to the terms and conditions of this
        Agreement.

      (g) Adopt
        and
        implement appropriate credit policies and procedures, including, without
        limitation, policies regarding the acceptance of credit cards, but Select
        shall
        in no event be deemed a guarantor of the credit of any guest, group, patron,
        travel agent or credit card company.

      (h) On
        behalf
        of Owner, collect, account for and remit promptly to proper governmental
        authorities all applicable excise, sales and use taxes or similar governmental
        charges collected by the Hotel directly from patrons or guests such as gross
        receipts, admission, cabaret, use or occupancy taxes, or similar or equivalent
        taxes (except that portion thereof, if any, which is required to be collected,
        or whose collection has been assumed, by a third party electronic distribution
        intermediary such as, for example, Expedia.com), subject to the collectibility
        thereof from such patrons or guests.

      (i) Keep
        the
        Hotel fully stocked and equipped with all necessary inventories of food,
        operating supplies, beverages and other consumables, and Operating
        Equipment.

      (j) Plan,
        prepare and supervise such marketing, advertising, sales, public relations
        and
        promotional programs or campaigns for the benefit of the Hotel as are necessary
        or appropriate in Select’s reasonable opinion, in addition to participation by
        the Hotel in Shared Services and other programs as required by the Franchise
        Agreement, including, without limitation, participation in airline frequent
        traveler programs, all in accordance with the Annual Plan.

      (k) As
        agent
        of Owner, comply with the terms of and perform the obligations under the
        Franchise Agreement that are within the bounds of authority conferred to
        Select
        hereunder.

      3.3 Hotel
        Employees.

      Select
        shall select, appoint and supervise all personnel for the proper operation
        of
        the Hotel and in order to enable Select to perform its duties and obligations
        under this Agreement. All employees of the Hotel shall be the employees of
        Select, and Select may reimburse itself out of the Operating Accounts for
        all
        Employee Costs. Unless the amount thereof has been deducted in computing
        the
        amount of reimbursement to Select for Employee Costs, Select shall remit
        to
        Owner, by deposit to the Operating Accounts, the full amount of the net benefit
        of any tax credits received by Select by reason of employment at the Hotel
        after
        deduction for any costs incurred in applying for or claiming said tax credits.
        Select shall have the sole and exclusive right and authority to direct Hotel
        employees and to hire, promote, demote, transfer in or transfer out, discipline,
        suspend or terminate any and all Hotel employees; provided that Owner shall
        have
        the right to approve the general manager and the senior personnel at the
        Hotel,
        which approval shall not be unreasonably delayed or withheld.

      3.4 Limitations
        on Select’s Authority.

      Notwithstanding
        anything herein contained to the contrary and in addition to any other
        limitations and restrictions herein contained, the following provisions shall
        constitute limitations and restrictions on the rights or authority of Select
        hereunder:

      (a) Except
        for an “Excluded Transaction”, and subject to the provisions of this Agreement
        regarding contracts with Select Affiliates, Select shall not, without the
        consent of Owner, enter into any contract or other arrangement (or series
        of
        related contracts or arrangements) if the expenditures thereunder would,
        or are
        reasonably anticipated to, exceed Twenty-Five Thousand Dollars ($25,000)
        (subject to annual CPI adjustment) in the aggregate, or if the non-cancelable
        term of such contract is in excess of one (1) year or would extend beyond
        the
        Term. For purposes hereof, the term “Excluded
        Transaction”
shall
        mean: (i) employment or compensation arrangements so long as the same (other
        than fringe benefit programs) do not involve a non-cancelable term in excess
        of
        one (1) year
        and are
        in accordance with the Annual Plan;
        (ii)
        costs incurred under Chain Contracts to the extent applicable to the Hotel
        and
        in accordance with the Annual Plan; (iii) expenditures under the Capital
        Budget
        as provided in Section
        3.10(c)(3);
        (iv)
        expenditures incident to the booking of rooms, food and beverage and other
        Hotel
        business entered into in the ordinary course of business and performing Hotel
        obligations under any such booking arrangements, all in accordance with the
        Annual Plan; (v) contracts or expenditures reasonably required in order to
        protect life, health, safety or property in cases of emergency or casualty;
        (vi)
        contracts settling, or partially settling, litigation matters (including,
        without limitation, arbitrations and administrative proceedings) in accordance
        with the provisions of Section
        3.11
        and
        (vii) contracts or expenditures for customary operating costs, including
        without
        limitation, contracts and expenditures for utility services in accordance
        with
        the Annual Plan.

      (b) Owner
        shall have the sole power and authority to settle any property insurance
        claims
        and any condemnation awards regardless of amount.

      (c) Owner
        shall have the right to approve the institution or defense of any legal or
        equitable proceedings with respect to the Hotel, including the selection
        of
        counsel, excluding, however, (i) routine collection litigation; (ii) selection
        of labor counsel in connection with collective bargaining matters and any
        other
        employment matters relating to the Hotel employees and (iii) other matters
        involving ordinary day to day operations of the Hotel; in each of cases (i),
        (ii) and (iii) of this Section
        3.4(c),
        wherein
        the amount in controversy is less than Twenty Five Thousand Dollars ($25,000)
        (subject to annual CPI adjustment), all such excluded matters (including
        the
        selection of counsel with respect thereto) are within the operating authority
        of
        Select.

      (d) Except
        for Shared Services, Mandatory Contracts, and purchases made by or through
        a
        Purchasing Company, as contemplated under the provisions of this Agreement,
        Select shall not purchase goods, supplies or services from itself or any
        Affiliate, or enter into any other transaction with an Affiliate of Select
        wherein any portion of the cost thereof will be paid or reimbursed by the
        Hotel,
        except with the prior written consent of Owner. Notwithstanding the foregoing,
        recognizing the varied nature and scope of investments by or on behalf of
        the
        Pritzker Family, there may be situations where a company in which the Pritzker
        Family holds an interest does business, directly or indirectly, with Select
        or
        individual Hyatt Place Hotels, in some cases without the knowledge of such
        interest by Select. Subject to the provisions of the succeeding sentence
        of this
Section
        3.4(d),
        any
        such transactions entered into in the ordinary course of business will not
        be
        deemed a violation of the provisions of this Section. However, where the
        Pritzker Family interest is material and is known or becomes known to Select,
        Select will inform Owner, and will discontinue such arrangements if Owner
        so
        requests.

      (e) Select
        shall not enter into any leases for space in the Hotel without the prior
        approval of Owner.

      (f) No
        agreement shall be binding on Owner or the Hotel after the Termination of
        this
        Agreement unless (i) it is terminable without penalty or termination cost
        upon
        one month’s or less notice or (ii) the agreement is approved by
        Owner.

      3.5 Excuse
        for Performance.

      Anything
        in this Agreement to the contrary notwithstanding, Select shall be excused
        from
        its obligations to operate the Hotel in conformity with its obligations under
        this Agreement: (i) to the extent and whenever Select is prevented from
        compliance with such standards by reason of the occurrence of a Force Majeure
        Cause; (ii) to the extent of any breach by Owner of any provision hereof;
        or
        (iii) to the extent and wherever there is herein provided a limitation on
        Select’s abilities to expend funds, or an insufficiency of funds available to
        Select, in respect of the Hotel when such limitation or insufficiency shall
        reasonably prevent Select from complying with such standards.

      3.6 Shared
        Services.

      Throughout
        the Term, Select shall make available to and for the benefit of the Hotel
        the
        full range of Shared Services (as they may be added, deleted or altered by
        Select, from time to time) made available to other Select operated or managed
        Hyatt Place Hotels, from time to time. Notwithstanding the foregoing, Owner
        shall have the right, at its option, from time to time, to elect not to
        participate or receive any of the Shared Services that are listed on
Exhibit
        C-2
        hereto
        as “non-mandatory”. Unless otherwise set forth on Exhibit
        C-2,
        all
        other Shared Services shall be deemed mandatory, subject to Owner’s rights set
        forth in Section
        3.7(c)
        hereof.

      Upon
        request by Owner, Select shall disclose such financial statements regarding
        the
        Shared Services listed in Exhibit
        C-2
        as are
        reasonably necessary to demonstrate the allocation of Shared Services
        Costs.

      3.7 Purchasing.

      During
        the Term, Select shall arrange for the purchase of Operating Equipment,
        consumables and inventories and services, in compliance with the provisions
        of
        this Agreement and specifically, the Annual Plan. All such purchases shall,
        at
        Select’s discretion, be made either directly from vendors and suppliers or
        through the services of one or more Purchasing Companies, subject to Owner’s
        rights set forth in Section
        3.7(c)
        hereof.
        In connection with any purchases of goods or services for the Hotel, the
        following provisions shall apply:

      (a) Neither
        Select, Rosemont nor any Purchasing Company shall make any purchases of initial
        quantities of FFE or Operating Equipment, or of FFE in connection with a
        Refurbishing Program, except with the express written approval of Owner.
        With
        respect to any purchases contemplated by this subsection
        (a),
        Select
        shall enter into separate contracts or agreements on behalf of Owner with
        Rosemont setting forth the scope of purchasing services, the terms and
        conditions applicable thereto, and the fees, commissions, rebates or other
        remuneration to be paid in connection therewith.

      (b) For
        all
        purchases of goods or services for the Hotel made pursuant to Mandatory
        Contracts, Select shall receive no fees, rebates or commissions under or
        with
        respect to such purchases, unless as otherwise specifically provided hereunder,
        although certain of the Chain Contracts may provide for promotional or other
        allowances that are then allocated among participating Hyatt Place Hotels
        on a
        fair and equitable basis as reasonably determined by Select. Select shall
        maintain a current list of Mandatory Contracts, which list shall be provided
        to
        Owner, typically on an annual basis in connection with the delivery of the
        Annual Plan or as otherwise requested by Owner. Owner shall have the right
        to
        request at such times and in such detail as it shall reasonably request that
        Select disclose the costs for the Hotel associated with each Chain Contract,
        including on a cumulative annual basis and on a per room night basis, and
        if any
        costs are shared with other properties, the basis for such sharing. Other
        than
        for goods or services provided by Avendra, LLC, if such costs are in excess
        of
        105% of the costs that would have been charged by competing suppliers of
        similar
        quality, then Owner shall have the right to request that Select use the
        competing supplier only if they meet the System Standards and doing so will
        not
        cause unreasonable contract administration obstacles for Select.

      (c) Select
        currently makes various goods and services available to Hyatt Place Hotels
        through a centralized purchasing program currently administered by Avendra,
        LLC
        (“Avendra”), a procurement services company in which an Affiliate of Select has
        a minority ownership interest, and which, for purposes of this Agreement,
        is a
        Purchasing Company. While Select receives no fees, commissions, rebates or
        other
        remuneration in connection with such purchasing services, the Purchasing
        Company
        may receive fees, rebates or commissions on goods or services so provided
        (which
        include a profit component). Owner shall be entitled from time to time to
        elect
        whether, and the extent to which, the Hotel shall use the services of the
        Purchasing Company (other than in the case of Mandatory Contracts and Avendra,
        LLC), and, if not, may designate other purchasing agents, vendors or suppliers
        for the Hotel, subject to the following conditions: (i) the goods or services
        available from such purchasing agent, vendor or supplier shall be of equal
        or
        better quality and at comparable or better prices, as those purchased through
        Purchasing Company or from Select-designated vendors or suppliers; and (ii)
        reliability of service and delivery schedules are comparable to that available
        from Purchasing Company or Select-designated vendors and suppliers. If Owner
        requests that Select obtain goods or services provided by Avendra, LLC from
        another supplier or vendor at a lower price than that quoted by Avendra,
        Select
        shall make good faith efforts to accommodate such request subject to the
        conditions of (i) and (ii) above, and its obligations under its agreement
        with
        Avendra.

      (d) With
        respect to any purchases of FFE or Operating Equipment, other than as provided
        in subsection
        (a)
        above
        and goods or services not covered by a Mandatory Contract, if Select has
        the
        right and authority hereunder to make such purchases, it may do so through
        Rosemont (or its successor), and may pay a fee or commission to Rosemont
        from
        the Operating Accounts at the standard fee or commission rate then being
        charged
        by Rosemont; provided, however, at any time during the Term, Owner shall
        have
        the right to (i) direct in writing that Select use the services of an alternate
        purchasing agent recommended by Owner for all such purchases and/or (ii)
        designate local or other sources of supply therefor. In either event, Select
        shall comply with any such written direction from Owner, provided, however,
        the
        provisions of Section
        3.7(c)
        regarding Owner designation of vendors, suppliers and purchasing agents also
        shall be applicable to this Section
        3.7(d).
        Select
        shall provide Owner with information, including pricing and all specifications
        reasonably requested by Owner to allow it to consider alternative bid proposals
        in connection with any such purchases or contracts.

      3.8 Legal
        Requirements.

      On
        the
        Opening Date, Owner and the Hotel shall have met all applicable Legal
        Requirements, including, without limitation, the procurement of all liquor
        and
        other licenses required to meet such Legal Requirements. Throughout the Term,
        Select shall operate the Hotel in compliance with all Legal Requirements
        including the rules, regulations or orders of any agency or instrumentality
        establishing life safety or fire safety standards applicable to the Hotel.
        Following the Opening Date, Select shall maintain in Owner’s name or in Select’s
        name, or both, as may be required by Legal Requirements, and shall keep in
        force
        any and all licenses or permits required for the operation of the Hotel and
        its
        related facilities, but not of permits (such as certificates of occupancy)
        relating to the Hotel’s structure, which shall be the responsibility of Owner.
        To the extent required in order to obtain or maintain licenses or permits,
        Owner
        shall cooperate in all reasonable respects.

      3.9 Operating
        Accounts.

      Select
        shall establish one or more Operating Accounts in a bank or banks designated
        by
        Owner, and also shall maintain sufficient sums on hand at the Hotel in house
        banks and petty cash funds to meet cash needs of Hotel operations. Absent
        unusual circumstances, the cash balance maintained in such Operating Accounts
        is
        not expected to exceed Thirty Thousand Dollars ($30,000). All such Operating
        Accounts shall be maintained in the name of Select as agent for Owner, and
        all
        funds deposited therein shall be the sole property of Owner. All monies
        transferred to Select as working capital by Owner shall be deposited in the
        Operating Accounts, together with all monies received by Select from the
        operation of the Hotel. So long as and to the extent there are available
        funds
        in the Operating Accounts, Select shall pay out of such accounts all costs
        and
        expenses incurred in connection with the operation of the Hotel (other than
        property taxes, Debt Service and insurance premiums, unless Owner has opted
        to
        participate in the insurance program provided by Select) and all other amounts
        to be paid by Select under this Agreement. Checks or other documents of
        withdrawal drawn upon the Operating Accounts shall be signed exclusively
        by
        representatives of Select or Hotel employees designated by Select, as agent
        for
        Owner. All persons drawing on such accounts shall be bonded or insured. Owner
        may grant security interests in the Operating Accounts to secure the obligations
        of Owner to Lenders and Select acknowledges that Owner or its Affiliates
        has
        granted security interests in the Operating Accounts pursuant to the Existing
        Loan Documents.

      Unless
        due to Select’s Grossly Negligent Acts or Willful Misconduct, any loss suffered
        in an Operating Account shall be borne by Owner and Select shall have no
        liability or responsibility therefor.

      Select
        will provide Owner with regular accounting of all deposits to and withdrawals
        from the Operating Accounts on a monthly basis.

      3.10 Annual
        Plan.

      (a) Preparation
        and Submission.

      (1) No
        later
        than November 1st of each calendar year during the Term, Select will prepare
        and
        submit to Owner for the following calendar year by month (i) a forecasted
        budget
        of the Hotel’s operations, including forecasts of revenues and departmental
        operating expenses and the assumptions underlying the same; (ii) a proposed
        marketing plan; and (iii) a proposed budget of Capital Expenditures (for
        this
        purpose, inclusive of additions to and replacements of FFE). The materials
        described in clauses
        (i)
        and
(ii)
        above
        are herein collectively referred to as the “Operating
        Budget”,
        the
        budget referred to in clause (iii) above is herein referred to as the
“Capital
        Budget”
and
        they are collectively referred to as the “Annual
        Plan”.

      (2) The
        Annual Plan shall be prepared in accordance with Select’s standard internal
        planning and budgeting procedures and shall be in a format reasonably acceptable
        to Owner. Owner agrees that it shall promptly review all Operating Budgets
        and
        Capital Budgets
        upon
        receipt, and Select agrees that it shall provide Owner with such additional
        and
        supplemental information with respect thereto as shall be reasonably requested
        by Owner.

      (3) Promptly
        after submission of the Annual Plan, representatives of Owner and Select
        shall
        meet at the Hotel or at such other location as may be mutually agreed and
        at a
        mutually convenient time to discuss, and attempt in good faith to agree upon,
        the Annual Plan as provided below.

      (b) Operating
        Budget.

        (1) All
          items
          of expenditure contained in the Operating Budget shall be subject to approval
          of
          Owner except for the following (unless otherwise specifically set forth
          herein):
          (i) costs associated with contracts or arrangements Select has made for
          Select
          operated or managed Hyatt Place Hotels or other hotels operated or managed
          by
          Select or its Affiliates in accordance with Select’s authority under the terms
          of this Agreement including, without limitation, Mandatory Contracts; (ii)menu
          prices; (iii) individual compensation levels for Hotel employees or for
          Select
          chain-wide or regional fringe benefit programs; or (iv) other expenditures
          required to be made under this Agreement and the Franchise Agreement including,
          without limitation, expenditures for Management Fees and Shared
          Services Costs.
          Owner
          shall not withhold its approval for any expenditures that are reasonably
          necessary, in nature or amount, to enable the Hotel to continue operating
          in
          accordance with the System Standards and in compliance with the terms of
          the
          Franchise Agreement.

      (2) Subject
        to the foregoing, Select shall take into consideration the views and suggestions
        of Owner regarding the Operating Budget. Owner and Select shall attempt,
        in good
        faith, to reach a mutually satisfactory agreement, and incorporate any such
        agreements into the Operating Budget. Owner shall have the right to suggest
        changes in operating policies and in the proposed Operating Budget that it
        considers reasonably necessary to achieve the objectives of near-term and
        long-term maximization of Hotel profits, subject to the System Standards.
        To the
        extent Select disagrees with Owner’s suggestions and comments, Select shall
        provide written explanations for its disagreements. Promptly following the
        foregoing discussions and explanations, Select shall submit a revised Operating
        Budget for further comment and discussion in the manner set forth above.
        Thereafter, the parties shall continue to discuss the Operating Budget until
        such time as both Select and Owner shall have reached agreement on all items
        comprising the Operating Budget for which Owner has approval rights
        hereunder.

      (3) Until
        such time as the parties have agreed on all line items of the proposed Operating
        Budget for which Owner has approval rights hereunder, Select shall have the
        right to operate the Hotel in accordance with an Operating Budget comprised
        of
        those line items that do not require Owner approval hereunder and those line
        items that have been agreed upon by Owner and Select. For those line items
        for
        which Owner has approval rights hereunder, but not yet approved by Owner,
        Select
        shall operate in accordance with the standards of operation and operating
        policies in effect during the preceding Fiscal Year for those line items
        (or,
        for the Hotel’s first Fiscal Year, as proposed by Select at the opening of the
        Hotel). Once the Operating Budget has been approved by Owner and Select,
        Select
        agrees that it shall use commercially reasonable efforts to operate the Hotel
        in
        a manner consistent with the approved Operating Budget.

      (4) Notwithstanding
        anything to the contrary in this Section
        3.10,
        the
        forecasts of revenues and estimated expenses contained in the Operating Budget
        represent Select’s best estimate of the same for the following Fiscal Year and
        not in any way a guarantee of actual results. Actual revenues and expenses
        can
        vary from forecasts and estimates for reasons beyond the reasonable control
        of
        Select due to unanticipated market circumstances. Owner acknowledges that
        so
        long as Select uses commercially reasonable efforts to operate the Hotel
        in a
        manner consistent with the approved Operating Budget and the terms of this
        Agreement, Select shall have no liability to Owner, and shall not otherwise
        be
        deemed in Default hereunder, if actual operating results vary from the Operating
        Budget.

        (5) If
          at any
          time during any Fiscal Year, Select anticipates that revenues shall be
          materially less or expenditures shall be materially more than those forecasted
          in the Operating Budget, Select shall
          promptly so notify Owner and may, but has no obligation to, submit revisions
          to
          the Operating Budget for Owner approval as provided above,
          and the
          need for any such reforecasting of the Annual Plan, or any portion of it,
          shall
          not be deemed an Event of Default by Select hereunder.

      (c) Capital
        Budget Approval.

        All
          items
          of expenditure contained in the Capital Budget shall be subject to Owner’s prior
          approval, and Owner and Select will cooperate in good faith to finalize
          within
          90 days of receipt all Capital Budgets or relevant portions thereof that
          are
          reasonably necessary for the operation of the Hotel.

        Owner
          shall administer the Capital Budget and oversee all expenditures under
          the
          Capital Budget. Select may not incur Capital Expenditures except for the
          following: (i)
          expenditures, including Capital Expenditures, which Select reasonably deems
          necessary to minimize personal injury and property damage in cases of casualty
          or emergency, and (ii) expenditures for emergency purchases, including
          Capital
          Expenditures, that Select reasonably deems necessary in order to provide
          essential guest services consistent with System Standards.

      3.11 Legal
        Proceedings.

      Subject
        to Section
        3.4(c),
        legal
        proceedings arising in the ordinary course of business of the Hotel, such
        as
        collections, enforcement of Hotel contracts, proceedings against Hotel guests
        or
        commercial tenants for amounts due, may be instituted by Select in its name
        using counsel designated by Select. In addition, Select shall have the right
        to
        defend, through counsel designated by it, legal proceedings brought against
        Select arising from or relating to the operation of the Hotel, against the
        Hotel
        together with one or more other Hyatt Place Hotels, or against the Hotel
        in the
        ordinary course of business. Select shall forward to insurer all claims against
        Owner or Select arising out of the management or operation of the Hotel that
        are
        covered in whole or in part by insurance. Owner and Select shall cooperate
        with
        each other in such legal proceedings. The costs of all legal proceedings
        arising
        from or relating to the operation of the Hotel (other than any claims relating
        to Title III of the Americans with Disabilities Act and environmental laws
        relating to the Site (unless arising out of requirements set forth in the
        Master
        Agreement or the Franchise Agreement), the defense and costs of which shall
        not
        be deemed Hotel expenses but shall be paid exclusively by Owner), whether
        incurred by Owner or Select, inclusive of damages, awards, fines and penalties,
        if any, shall be deemed Hotel expenses and be deducted in computing Adjusted
        NOI, except in cases of gross negligence, willful misconduct, recklessness
        or
        intentional misconduct of Owner or in cases of Select’s Grossly Negligent Acts
        or Willful Misconduct, in which event all such costs of such proceedings,
        whether incurred by Select or Owner, shall be borne by the party whose conduct
        resulted therein. The costs relating to actions or proceedings against Select
        relating to the Hotel together with one or more other Hyatt Place Hotels,
        shall
        (subject to the limitations set forth in the preceding sentence) be allocated
        on
        a fair and reasonable basis among the Hotel and such other Hyatt Place Hotels
        to
        which such proceedings may relate.

      3.12 Maintenance
        Cap Ex Reserve.

      During
        the Term, for purposes of calculating Adjusted NOI, there shall be deducted
        from
        Income After Undistributed Operating Expenses, on a monthly basis, an amount
        equal to three percent (3%) of the Gross Receipts for each calendar month
        through and including the end of the first (1st)
        Fiscal
        Year hereunder; 3.5%
        of
        the Gross Receipts for each calendar month thereafter until the end of the
        eighth month of the second (2nd) Fiscal Year hereunder; 3.5% of the Gross
        Receipts for the last four calendar months of the second (2nd) Fiscal Year
        hereunder if Full Conversion occurs prior to September 1 of that Fiscal Year;
        3.25% of the Gross Receipts for the last four calendar months of the second
        (2nd) Fiscal Year hereunder if Full Conversion does not occur prior to September
        1 of that Fiscal Year;
        four
        percent (4%) of the Gross Receipts for each calendar month thereafter until
        the
        end of the fourth (4th)
        Fiscal
        Year hereunder; five percent (5%) of the Gross Receipts for each calendar
        month
        thereafter until the end of the fifth (5th)
        Fiscal
        Year; and four percent (4%) of the Gross Receipts for each calendar month
        thereafter.

      3.13 Intentionally
        Omitted.

      3.14 Distributions
        to Owner.

      Each
        week
        and at the end of each month during the Term, Select shall remit to Owner
        out of
        the Operating Accounts by wire transfer the amount (“Owner’s
        Remittance Amount”)
        by
        which the total funds then in the Operating Accounts exceed Thirty Thousand
        Dollars ($30,000). Each remittance shall be paid to Owner by wire transfer
        pursuant to written instructions delivered to Select, or to such other account
        or accounts as Owner may, from time to time, designate in a notice to Select.
        Notwithstanding the foregoing, if Select reasonably anticipates that
        circumstances will require the cash balance in the Operating Accounts to
        exceed
        $30,000 in order to carry on the uninterrupted operation of the Hotel in
        accordance with System Standards and enable Select to perform its obligations
        hereunder, upon Select’s request, Owner shall, at its option (i) permit Select
        to withhold additional funds or (ii) wire sufficient funds into the Operating
        Accounts to meet such circumstances and Owner will reasonably cooperate with
        such request.

      ARTICLE
        IV

       

       

      Financing

       

      4.1 Owner
        Financing.

      Select
        acknowledges that Owner intends to finance the construction, development,
        furnishing and equipping of the Hotel through equity and/or debt financing.
        Owner shall have full discretion in arranging financing, all of which shall
        be
        arranged at the sole cost and expense of Owner. Owner shall likewise have
        the
        right to refinance any of Owner’s previous financing.

      4.2 Non-Disturbance.

      A
        Subordination Non-Disturbance and Attornment agreement (“SNDA”) shall be
        requested by Owner for each financing. The granting of such SNDA shall be
        determined solely by the lender in its sole and absolute discretion. Select
        agrees to execute any and all subordination agreements (with or without
        non-disturbance) and other documents reasonably requested by lender provided
        that such documents do not require Select to perform services without
        compensation or in contravention of Select’s rights and obligations under this
        Agreement.

      Ground
        Lease.
        No
        Ground Lease shall be entered into with respect to the Hotel, including,
        without
        limitation, any Ground Lease between Owner and any Affiliate of Owner, unless
        the Ground Lessor shall theretofore or concurrently therewith have entered
        into
        a “Lessor
        Non-Disturbance Agreement”
with
        Select, whereby, upon a termination of the said Ground Lease during the Term,
        Select shall attorn to the Ground Lessor with respect to this Agreement,
        and the
        Ground Lessor shall agree, for itself and any successor-in-interest under
        the
        Ground Lease, to accept such attornment, to assume the obligations of Owner
        hereunder, and to not disturb or otherwise interfere with Select’s rights,
        authority or privileges hereunder except in accordance with the express
        provisions of this Agreement.

      4.3 Specific
        Covenants for the Benefit of Lenders.

      [To
        be included in exhibit.]

      4.4 Intentionally
        Omitted.

      4.5 Estoppel
        Certificates.

      Upon
        written request and within thirty (30) days of receipt of such request, Select
        shall execute and deliver to Owner or any Lender or Ground Lessor a certificate:
        (i) certifying that this Agreement has not been modified and is in full
        force and effect (or, if there have been modifications, that the same is
        in full
        force and effect as modified and specifying the modifications);
        (ii) stating whether, to the actual knowledge of the Senior Vice President
        and Managing Director, any Default by Owner exists, and if so, specifying
        each
        such Default; and (iii) providing any additional information reasonably
        requested by Owner or a Lender or Ground Lessor; provided, however, that
        in no
        event shall Select be required to agree to any waivers with respect to this
        Agreement or other agreements in effect between the parties. On similar notice
        from Select, Owner will use its reasonable good faith efforts to obtain a
        similar certificate from any Lender (with respect to any mortgage on the
        Hotel),
        or any Ground Lessor (with respect to any Ground Lease).

      ARTICLE
        V

       

       

      Management
        Fees and Reimbursements

       

      5.1 Management
        Fees.

      For
        the
        services to be rendered by Select under this Agreement and subject to the
        terms
        of Section
        5.2,
        Owner
        shall pay Management Fees to Select as follows:

      (a) Until
        the
        Guarantee Termination Date (if the Opening Date occurs prior to such day),
        Select shall receive Management Fees equal to the amount of the Excess Cash
        Flow
        (as defined in Schedule
        3)
        in
        excess of “Owner’s Return”. “Owner’s Return” shall mean the sum of (i) the
        amount of the Threshold (as defined in Schedule
        3)
        and
        (ii) seventy-five percent (75%) of the Excess Cash Flow above or below the
        amount of the Threshold, provided however, if the Management Fees for any
        Fiscal
        Year are in excess of the Initial Cap (as defined in Schedule
        3),
        as
        part of Owner’s Return, Owner shall be entitled to receive as part of Owner’s
        Return, an additional amount equal to ninety percent (90%) of the Excess
        Cash
        Flow remaining after the payment of the amount of the Initial Cap.
        Notwithstanding the foregoing, if during any Fiscal Year, the amount of Owner’s
        Return is less than the Minimum Return (as defined in Schedule
        3),
        Select
        shall fund the difference between the amount of the Minimum Return and the
        amount of Owner’s Return for such Fiscal Year. Owner and Select hereby agree
        that the definitions set forth on Schedule
        3
        are
        derived from the Existing Agreement and shall be in effect only until the
        Guaranty Termination Date and for purposes of and in connection with this
        Section
        5.1(a)
        only and
        it is the intention of the parties that this Section
        5.1(a)
        provide
        for the same rights and obligations with respect to the management fees and
        consistent with the Existing Agreement and with past practice of Owner and
        the
        Existing Managers.

      (b) On
        and
        after the Guarantee Termination Date, a basic fee (“Basic
        Fee”)
        equal
        to three percent (3%) of the Gross Receipts, provided however, if in any
        given
        Fiscal Year, there is a Deficiency, as calculated monthly on a cumulative
        Fiscal
        Year-to-Date basis, with Owner’s Priority being calculated on a monthly and
        Fiscal Year-to-Date basis by multiplying (A) Project Costs by (B) 9.5% and
        further multiplying the product thereof by the number of months elapsed in
        the
        Fiscal Year divided by 12, then the Basic Fee shall be reduced by an amount
        equal to the full amount of the Deficiency, provided however, if the amount
        of
        the Fiscal Year-to-Date Deficiency exceeds the full amount of the Basic Fee
        for
        the Fiscal Year-to-Date, Select shall have no other obligations to Owner
        with
        respect to any remaining Deficiency, subject to the Franchisor complying
        with
        its obligations under Section
        2.7
        hereof.
        The obligation of Select to reduce or eliminate its Basic Fee as to any Fiscal
        Year is limited to the full amount of the Deficiency for such Fiscal Year
        only,
        and Owner and Select hereby agree that the Basic Fee for any Fiscal Year
        shall
        not be reduced as a result of any Deficiency in any prior or subsequent Fiscal
        Year.

      (c) On
        and
        after the Guarantee Termination Date, an incentive fee (“Incentive
        Fee”)
        equal
        to ten percent (10%) of the amount of Excess Adjusted NOI.

      Except
        for the Management Fees and the fees and reimbursements to Select and its
        Affiliates referred to herein and in the Franchise Agreement, Select and
        its
        Affiliates shall not be entitled to any fees or other form of remuneration
        or
        compensation for any services provided to the Hotel. Other than as provided
        in
        this Section
        5.1,
        there
        shall be no reduction in the Basic Fee or other liability to Select for any
        deficit in Adjusted NOI for any Fiscal Year, nor shall any deficit in Adjusted
        NOI be carried back to any previous Fiscal Year or carried forward to any
        subsequent Fiscal Year. Notwithstanding the foregoing, Owner hereby assigns
        and
        agrees to deliver to Select (to be retained by Select), promptly upon receipt
        thereof by Owner, to the extent of any recovery of business interruption
        insurance attributable to the Management Fees payable hereunder, the amount
        of
        the Management Fees required to be covered by business interruption insurance
        under Section
        9.1.

      An
        example of the calculation and payment of Basic Fee and Incentive Fee and
        the
        reduction of fees is set forth on Exhibit
        E
        hereto,
        including for periods that are less than a full calendar year.

      5.2 Time
        and Manner of Payment.

      Subject
        to the terms of Section
        2.7
        and
Section
        5.1,
        with
        respect to any Fiscal Year and each calendar month included therein, Select
        shall calculate and deliver to Owner an accounting of Owner’s Return, any Basic
        Fee, Incentive Fee and Royalty Fee, which amounts due or owed shall be payable
        in monthly installments of the respective amounts provided in Section
        2.7
        and
Section
        5.1
        hereof
        by Select (i) to Select and Franchisor by withdrawing the same from the
        Operating Accounts or to Owner by depositing same into the Operating Accounts,
        or (ii) if prior to the Guarantee Termination Date Owner’s Return is less than
        the Minimum Return for such calendar month, to Owner by depositing the same
        into
        the Operating Accounts, in each of (i) and (ii), within 15 days after Select
        shall have furnished to Owner the unaudited financial statement for such
        calendar month pursuant to Section
        6.2
        hereof
        to which Owner had not then objected pursuant to Section
        6.3
        hereof.

      5.3 Shared
        Services Costs and Franchise Fees.

      In
        addition to the Management Fees and all other amounts required to be paid
        to
        Select and its Affiliates under this Agreement, Owner shall pay to Select
        and
        its Affiliates the Hotel’s Shared Services Costs set forth in the agreed upon
        Annual Plan. Shared Services Costs shall be assessed to the Hotel (and paid
        by
        Owner) on the same basis (although not necessarily in the same overall dollar
        amount) as assessed to other Select managed or operated Hyatt Place Hotels
        and
        other hotels managed or operated by Select or its Affiliates (including hotels
        owned by Select or its Affiliates) receiving Shared Services. Such amounts
        shall
        be paid to Select, on a monthly basis, by Select’s withdrawing the same from the
        Operating Accounts on scheduled dates during such month when such amounts
        are
        generally payable to Select by other Hyatt Place Hotels. In the case of fees
        due
        under the Franchise Agreement, subject to provisions of Section
        2.7,
        Owner
        hereby authorizes Select on behalf of Owner, to pay such fees out of the
        Operating Accounts consistent with the terms of and requirements under the
        Franchise Agreement. If the Hotel is closed as a result of casualty or Force
        Majeure Cause and remains closed for reasons beyond the control of both parties,
        Owner shall not be obligated for payment of Shared Services Costs during
        the
        casualty and Force Majeure Event. However, if a portion of the Hotel remains
        open or in Select’s reasonable opinion is capable of operation, Owner shall pay
        Shared Services Costs on a pro rata basis to the extent of the Hotel’s ability
        to operate for the duration of the casualty or Force Majeure Event until
        expiration or earlier termination of this Agreement, provided that Select
        provides to Owner a complete accounting of any such fees.

      5.4 Reimbursements.

      In
        addition to the Management Fees, Shared Services Costs, and any other amounts
        required to be paid to Select or its Affiliates in accordance with the
        provisions of this Agreement or the Franchise Agreement, Owner shall reimburse
        Select as follows: (i) for all Employee Costs with respect to the Hotel
        employees; (ii) travel and other reasonable out-of-pocket expenses of Select
        personnel when assigned to temporary full-time duty at the Hotel (for the
        period
        of such assignment not to exceed ninety (90) days without approval by Owner);
        (iii) travel and other reasonable out-of-pocket expenses of Select’s divisional
        or corporate headquarters office staff when traveling for the benefit of
        the
        Hotel; (iv) reasonable relocation costs for employees transferred to the
        Hotel
        not to exceed $25,000 (unless Owner reasonably approves additional relocation
        costs); (v) insurance premiums for coverage maintained by Select with respect
        to
        the Hotel pursuant to Section
        9.2
        and for
        any additional coverage under Select chain-wide policies made available to
        the
        Hotel in which Owner elects to participate as provided in Section
        9.4;
        and
        (vi) all third party costs and expenses incurred by Select, including, without
        limitation, reasonable attorneys’ fees, in connection with any assistance
        requested by Owner (such as, for example, but without limitation, execution
        of
        consents, agreements or other documents) relating to any sale, transfer,
        leasing
        or financing of the Hotel by Owner. The reimbursements provided for in this
        Section
        5.4
        shall
        include only direct out-of-pocket expenses without any overhead and shall
        be
        allocated to the Hotel on a direct pass through basis, without mark up or
        profit, and after deduction for any portions thereof properly allocated to
        any
        other Hyatt Place Hotel.

      5.5 Tax
        on Reimbursements.

      If
        Select
        shall be subject to any tax relating to the operation of the Hotel (including
        a
        fee, charge or other imposition for the issuance of a license, permit or
        the
        privilege to conduct business at the Hotel), imposed, levied or assessed
        by any
        governmental agency or instrumentality (other than income taxes, corporate
        franchise taxes and other amounts due and payable by Select but not directly
        related to Hotel operations) due and measured, in whole or in part, by reference
        to reimbursements to Select by Owner for compensation, employment taxes,
        fringe
        benefits or Shared Services Costs paid or payable hereunder, then Owner will
        indemnify and hold Select harmless from and against any and all liability
        for
        such tax or taxes to the extent so measured. Any payments made by Owner in
        this
        connection shall be paid from the Operating Accounts and be deducted in
        computing Adjusted NOI for the period incurred. At Owner’s request, Select will
        contest, by appropriate proceedings, any liability for any tax which is the
        subject of the foregoing indemnification, in which case all expenses, attorneys’
fees and costs incurred by Select in contesting or defending itself against
        such
        liability shall be deemed a Hotel expense payable from the Operating
        Accounts.

       

      ARTICLE
        VI

       

       

      Books
        and Records and Reporting

       

      6.1 Financial
        Records.

      Select
        shall keep full and adequate books of account and other records reflecting
        the
        financial results of the operation of the Hotel (the “Financial
        Records”).
        Such
        Financial Records shall, at all times, be kept in all material respects in
        accordance with the Uniform System and shall be in a form reasonably acceptable
        to Owner. The Financial Records shall remain the property of Owner, and shall
        be
        available at the corporate headquarters of Select for inspection and copying
        by
        Owner and its representatives at all reasonable times upon reasonable advance
        notice to Select. Financial Records shall be maintained by Select pursuant
        to
        Select’s records retention programs and policies in effect from time to time, a
        copy of which shall be made available to Owner.

      6.2 Financials.

      On
        a
        monthly, quarterly and annual basis, no later than twelve (12) days following
        the end of each monthly and quarterly period, and no later than fourteen
        (14)
        days following the end of each Fiscal Year, Select shall deliver the following
        financial statements (the “Financial
        Statements”)
        for
        the month, quarter or Fiscal Year just ended containing (i) a report on the
        results of operations of the Hotel showing, in reasonable detail, Gross Receipts
        for such period by department, Adjusted NOI for such period, and the amount
        of
        Management Fees, Shared Services Costs and Franchise Agreement fees paid
        to
        Select and its Affiliates during such period and (ii) a comparison of the
        results of operations for the Hotel for such period then ended with the
        Operating Budget and with the same period in the immediately preceding Fiscal
        Year. If Owner desires to obtain an audit of the financial books and records
        of
        the Hotel, it shall do so by retaining a firm of independent certified public
        accountants (“Accountants”)
        selected by Owner. In connection with such audit, Select shall make available
        to
        the Accountants all Financial Records that they may request and shall otherwise
        cooperate in all reasonable respects for the performance of the audit. The
        cost
        of the audit shall be an operating expense (and deducted in computing Adjusted
        NOI) to be charged in the Fiscal Year in which the audit is conducted and
        be
        paid from the Operating Accounts.

      6.3 Reports.

      During
        the Term, (a) Select shall deliver to Owner, within 14 days after notice
        from
        Owner, a SAS 70 internal control letter with respect to the Affiliate Hotels,
        in
        form and substance reasonably satisfactory to Owner, and (b) on a daily basis,
        Select shall submit to Owner via electronic transmission, the following room
        statistics for rooms at the Hotel for the preceding day: (i) rooms available,
        (ii) rooms sold, (iii) rooms revenue, (iv) rooms out of order, and (v) number
        of
        rooms complimented. If Owner requests a SAS 70 letter, which letter must
        be
        applicable to all Affiliate Hotels, Owner shall pay the first $25,000 of
        Select’s direct cost and expense of such a letter for the Hotel and all
        Affiliate Hotels collectively, and then shall pay fifty percent (50%) of
        the
        remaining balance of such cost and expense for the Hotel and Affiliate Hotels
        collectively. Notwithstanding the foregoing, if Select is required to provide
        a
        SAS 70 letter for owners of other Hyatt Place hotels, the direct cost and
        expense of such letter shall be equitably shared among such other owners
        and
        Owner.

      The
        Financial Statements delivered and all information contained therein, shall
        be
        binding and conclusive on the parties hereto unless, within sixty (60) days
        following the delivery thereof, either party shall deliver to the other party
        notice of its objection thereto setting forth in reasonable detail the nature
        of
        such objection. If the parties are unable thereafter to resolve any disputes
        between them with respect to any matter set forth in the Financial Statements
        within sixty (60) days after delivery of the aforesaid notice of objection,
        either party shall have the right to cause such dispute to be resolved by
        arbitration conducted in accordance with the provisions of Article
        XII
        below.

      6.4 Meetings.

      Select
        agrees that it shall meet with Owner and its representatives, from time to
        time
        at the request of Owner to discuss any of the matters set forth in any of
        the
        financial or other reports delivered pursuant to Section
        6.3
        or to
        discuss matters pertaining to the operation of the Hotel. Such meetings shall
        be
        conducted between Owner and one of the Senior Executive Personnel.

      ARTICLE
        VII

       

       

      Indemnification

       

      7.1 Indemnification
        of Select.

      To
        the
        extent Select is not fully recompensed by insurance, Owner hereby agrees
        to
        indemnify, defend and hold Select (and its officers, directors, shareholders,
        agents, employees and Affiliates) free and harmless of and from any and all
        damages, liability, cost, claim or expense, including, without limitation,
        reasonable attorneys fees and expenses, arising out of or in any way related
        to
        the Hotel or to the performance by Select of its duties hereunder in accordance
        with the terms hereof, other than any such damages, liabilities, costs, claims
        or expenses (i) arising out of or in any way related to Select’s negligent
        selection, appointment, supervision or treatment of, conduct concerning,
        benefits or compensation provided to, or decision or actions with respect
        to,
        employees of the Hotel (which, as set forth in Section
        3.3
        above,
        are Select employees), applicants for employment with the Hotel, or other
        personnel, consultants or contractors used by Select for operation of the
        Hotel;
        or (ii) that arise out of or are attributable to Select’s Grossly Negligent Acts
        or Willful Misconduct; provided, however, Owner shall have no liability
        hereunder to the extent Select is reimbursed for its loss from the proceeds
        of
        insurance maintained in accordance with the provisions of Article
        IX,
        and
        Select agrees that it will, in good faith, pursue its available insurance
        recoveries prior to making demand on Owner for indemnity. Amounts paid by
        Owner
        in fulfillment of its indemnification obligations under this Section
        7.1
        shall
        constitute Hotel expenses and shall be deducted in computing Adjusted NOI
        for
        the Fiscal Year in which they are incurred.

       

      7.2 Indemnification
        of Owner.

      To
        the
        extent Owner is not fully recompensed by insurance, Select hereby agrees
        to
        indemnify, defend and hold Owner (its partners, shareholders, officers,
        directors, agents, employees and Affiliates) free and harmless of and from
        any
        and all damages, liabilities, costs, claims or expenses, including, without
        limitation, attorneys fees and expenses arising out of or in any way relating
        to
        (i) Select’s operations, business or conduct other than in connection with the
        performance of its duties hereunder; (ii) Select’s Grossly Negligent Acts or
        Willful Misconduct; or (iii) the breach of this Agreement by Select; provided,
        however, Select shall have no liability hereunder to the extent Owner is
        reimbursed for its loss from the proceeds of insurance. Owner agrees that
        it
        will, in good faith, pursue its available insurance recoveries prior to making
        demand on Select for indemnity. Amounts paid by Select in fulfillment of
        its
        indemnification obligations under this Section
        7.2,
        shall
        not be deemed an expense of the operation of the Hotel and shall be borne
        and
        paid for solely by Select.

      7.3 Survival.

      The
        indemnification provisions of this Agreement as set forth in this Article
        VII
        shall
        survive the expiration or earlier termination of this Agreement, but shall
        relate solely to events occurring or matters arising during the
        Term.

      ARTICLE
        VIII

       

       

      Specific
        Covenants
        and Representations

       

      8.1 General
        Covenant of Owner.

      In
        addition to each of the other covenants and obligations of Owner herein
        contained, Owner hereby agrees to the additional covenants and agreements
        as set
        forth in this Article
        VIII.

      8.2 Working
        Capital.

      Except
        as
        otherwise provided in this Agreement, at all times during the Term, Owner
        shall
        cause sufficient working capital funds to be in the Operating Accounts to
        ensure
        (i) the timely payment of all current liabilities of the Hotel (including,
        without limitation, Management Fees and all other amounts payable to Select
        and
        its Affiliates hereunder, and all other items entering into the calculation
        of
        Adjusted NOI (other than property taxes, Debt Service and insurance premiums,
        unless Owner has opted to participate in the insurance program provided by
        Select) and (ii) the uninterrupted and efficient operation of the Hotel in
        accordance with the terms of this Agreement. On the Opening Date, Owner shall
        have adequate funds in the Operating Accounts and all necessary inventories
        of
        food, beverages and operating supplies shall be ready and available at the
        Hotel.

      8.3 Payment
        of Taxes.

      During
        the Term, Owner shall, prior to delinquency, pay all real and personal property
        taxes assessed against the Hotel other than those being contested in good
        faith.
        Such property taxes for any period that includes the Opening Date or the
        date on
        which the Term shall expire or otherwise terminate shall be prorated and
        only
        the portion of such property taxes applicable to the Term shall be deducted
        in
        computing Adjusted NOI hereunder.

      8.4 Title.

      Owner
        represents and warrants that it is an entity duly organized in its jurisdiction
        of organization as set forth herein and has all necessary authority and
        approvals to enter into this Agreement and perform its obligations hereunder.
        Owner further covenants that throughout the Term either Owner, its successor
        or
        successors-in-interest, shall own the Hotel or have a valid and subsisting
        leasehold interest therein sufficient to enable Select to perform its duties
        and
        obligations hereunder in accordance with the provisions of this Agreement.
        Without limiting the generality of the foregoing, Owner covenants and agrees,
        for the benefit of Select, as follows:

      (a) So
        long
        as Select is not in Default hereunder (and so long as any applicable cure
        period
        has not expired), Select shall be entitled to operate the Hotel for the Term,
        and Owner shall, at no expense to Select, undertake and prosecute all
        appropriate actions, judicial or otherwise, to protect the title or leasehold
        interest of Owner in the Hotel to enable Select to operate the Hotel in
        accordance with the provisions of this Agreement, without any
        interruption.

      (b) Keep
        and
        maintain, or cause to be kept and maintained, any leases covering real or
        personal property or other agreements necessary to the ownership or control
        of
        the Hotel, or any part thereof, in full force and effect and free from default.
        Owner shall pay and discharge, or cause to be paid and discharged, any ground
        rents or other rental payments or other charges payable by Owner in respect
        of
        the ownership of the Hotel.

      (c) Maintain,
        or cause to be maintained, in good standing and free from default any and
        all
        mortgages affecting the Hotel.

      (d) Observe,
        or cause to be observed, and comply with, or cause to be complied with, any
        and
        all liens, encumbrances, covenants, charges, burdens or restrictions pertaining
        to the Hotel or any part thereof.

      (e) Grant
        no
        rights or interests in the Hotel, or any part thereof or interest therein
        that
        could materially adversely affect the ability of Select to operate and manage
        the Hotel as herein provided.

      8.5 Involvement
        in Hotel Operations.

      Owner
        acknowledges and agrees that it is appointing Select as its exclusive agent
        to
        conduct all Hotel operations on the terms and conditions set forth herein.
        Subject to the terms hereof, Owner agrees that it will not unduly or
        unreasonably interfere with the managerial rights and authority of Select
        hereunder and any exercise thereof by Select, and further agrees that it
        will
        not seek to perform or cause another to perform the obligations and duties
        of
        Select or interfere or cause another to interfere with the rights of Select
        under this Agreement.

      8.6 Hotel
        Alterations.

      Owner
        shall not, without prior consultation with Select, modify or alter the Hotel
        if
        such modifications or alterations constitutes a Refurbishing
        Program.

      8.7 “As
        Built” Drawings.

      Upon
        request by Select, if in Owner’s possession, Owner shall provide Select a full
        set of “as-built” drawings of the Hotel and one set of microfilm or digitized
        reproductions of those drawings, or such other form as may be reasonably
        acceptable by Select.

      8.8 Representations
        and Covenants of Select.

      (a) Select
        represents and warrants that it is duly organized as a limited liability
        company
        under the laws of the State of Delaware and has all necessary authority and
        licenses and regulatory and other approvals, to enter into this Agreement
        and
        perform its obligations hereunder. The execution, delivery and performance
        by
        Select of its obligations hereunder will not conflict with or cause a violation
        of (i) any of Select’s organizational documents, (ii) any contract, agreement or
        instrument to which Select is a party or by which Select or its properties
        is
        bound, or (iii) any statute, rule, regulation, or administrative order
        applicable to Select or by which Select or its properties is bound.

      (b) During
        the Term, Select shall qualify as an “eligible independent contractor” as
        defined in Section 856(d)(9) of the Internal Revenue Code of 1986, as amended
        (the “Code”). To that end, during the term of this Agreement,
        Select:

      (i) shall
        not
        permit wagering activities to be conducted at or in connection with the
        Hotel;

      (ii) shall
        not
        own, directly or indirectly (within the meaning of Section 856(d)(5) of the
        Code), more than 35% of the shares of Equity Inns, Inc.;

      (iii) shall
        be
        actively engaged in the trade or business of operating “qualified lodging
        facilities” (defined below) for persons who are not “related persons” within the
        meaning of Section 856(d)(9)(F) of the Code with respect to Equity Inns,
        Inc. or
        Owner (“Unrelated Persons”). In order to meet this requirement, Select agrees
        that it (i) shall derive at least 10% of both its revenue and profit from
        operating “qualified lodging facilities” for Unrelated Persons and (ii) shall
        comply with any regulations or other administrative guidance under Section
        856(d)(9) of the Code with respect to the amount of hotel management business
        with Unrelated Persons that is necessary to qualify as an “eligible independent
        contractor” within the meaning of such Code Section (so long as Owner has
        advised Select in writing of such regulations or other administrative
        guidance).

      A
        “qualified lodging facility” is defined in Section 856(d)(9)(D) of the Code and
        means a “lodging facility” (defined below), unless wagering activities are
        conducted at or in connection with such facility by any person who is engaged
        in
        the business of accepting wagers and who is legally authorized to engage
        in such
        business at or in connection with such facility. A “lodging facility” is a
        hotel, motel or other establishment more than one-half of the dwelling units
        in
        which are used on a transient basis, and includes customary amenities and
        facilities operated as part of, or associated with, the lodging facility
        so long
        as such amenities and facilities are customary for other properties of a
        comparable size and class owned by other owners unrelated to Equity Inns,
        Inc.

      ARTICLE
        IX

       

       

      Insurance

       

      9.1 Insurance
        to be Maintained by Owner.

      The
        following insurance shall be secured and maintained with respect to the Hotel
        at
        all times during the term of this Agreement:

      (a) All
        risk
        property insurance, including fire, windstorm, flood, earthquake and other
        risks
        covered by extended coverage endorsements on the Improvements and
        contents;

      (b) All
        risk
        business interruption insurance, including fire, windstorm, flood, earthquake
        and other risks covered by extended coverage endorsements for full recovery
        of
        the net profits of the Hotel for the entire period of any such business
        interruption, or not less than twelve (12) months;

      (c) Insurance
        against loss from accidental damage to, or from the explosion of, boilers,
        air
        conditioning systems, including refrigeration and heating apparatus, pressure
        vessels and pressure pipes in an amount equal to the full replacement value
        of
        such items;

      (d) Business
        interruption insurance against loss from accidental damage to, or from the
        explosion of, boilers, air conditioning systems, including refrigeration
        and
        heating apparatus, pressure vessels and pressure pipes for full recovery
        of the
        net profits for the entire period of any such business
        interruption;

      (e) Comprehensive
        or commercial general liability for any claims or losses arising or resulting
        from the Hotel, with combined single limits of $1,000,000 per each occurrence
        for bodily injury and property damage. If the general liability coverages
        are
        provided by a commercial general liability policy form, the general aggregate
        limit shall not be less than $2,000,000. Such insurance shall be on an
        occurrence policy form and shall include premises and operations, independent
        contractors, blanket contractual, products and completed operations, advertising
        injury, employees as additional insureds, broad form property damage, personal
        injury, incidental medical malpractice, severability of interests, and
        explosion, collapse and underground coverage during any
        construction;

      (f) If
        Select
        will provide valet parking, garagekeepers liability insurance in a minimum
        amount of $100,000;

      (g) Statutory
        workers’ compensation insurance on all employees in accordance with the
        requirements of applicable law;

      (h) Employment
        practices liability insurance in an amount not less that $1,000,000, per
        occurrence and $1,000,000 in the aggregate (the amount of any deductible
        under
        such insurance shall be paid out of Gross Revenues unless the claim arises
        out
        of Select’s gross negligence or willful misconduct, and the amount of such
        deductible shall be satisfactory to Owner);

      (i) Insurance
        against such other insurable risks as any mortgagee may, from time to time,
        reasonably require;

      (j) Liquor
        liability (if applicable) for combined single limits of bodily injury and
        property damage of not less than $1,000,000 per occurrence;

      (k) Business
        auto liability including owned, non-owned and hired vehicles for combined
        single
        limits of bodily injury and property damage of not less than $1,000,000 per
        occurrence;

      (l) Umbrella
        excess liability in amounts consistent with the Franchise Agreement;
        and

      (m) Comprehensive
        crime insurance in a minimum amount of $50,000.

      9.2 Responsibility
        to Maintain.

      During
        the Term, Owner or Select (if requested to do so by Owner and if Select agrees)
        at the expense of Owner, shall procure and maintain the insurance policies
        required under clauses (a) through (f) and (i) through (l) of Section
        9.1,
        and
        Select shall procure and maintain the coverages required under clauses (g),
        (h)
        and (m) of Section
        9.1,
        at the
        expense of Owner.

      9.3 Requirements.

      All
        policies of liability insurance shall be written on an “occurrence” basis, if
        possible. The insurance coverage shall in any event comply with the requirements
        of the mortgage, if any. Any deductibles within the property insurance policies
        required above shall not exceed $25,000, except for wind, flood, and earthquake
        deductibles which shall be approved by Owner or bought down to $25,000 at
        the
        expense of Owner, or as may be written by Select for other participating
        hotels
        as set forth in Section
        9.6.

      9.4 Policies
        and Endorsements.

      (a) Policies.
        All
        insurance provided for under the above Section
        9.1
        shall be
        effected by policies issued by insurance companies of good reputation and
        of
        sound and adequate financial responsibility, and rated no less than A-VIII
        in
        Best’s Insurance Guide. The party procuring such insurance shall deliver to the
        other party certificates of insurance with respect to all of the policies
        of
        insurance so procured, including existing, additional and renewal policies,
        and
        in the case of insurance about to expire, shall deliver certificates of
        insurance with respect to the renewal policies to the other party not more than
        thirty (30) days after the respective dates of expiration. If Owner shall
        elect
        to procure any portion of the property insurance, it shall also deliver to
        Select full copies of the policies under which such insurance is
        maintained.

      (b) Endorsements.
        All
        policies of insurance provided for under this Article
        IX
        shall
        have attached thereto (a) an endorsement that such policy shall not be canceled
        or materially changed without at least thirty (30) days prior written notice
        to
        Owner and Select, and (b) an endorsement to the effect that no act or omission
        of Owner or Select shall affect the obligation of the insurer to pay the
        full
        amount of any loss sustained. All insurance policies procured by Owner shall
        name Select as an additional insured and contain an endorsement to the effect
        that such insurance shall be primary to any similar insurance carried by
        Select.

      (c) Named
        Insured.
        All
        policies of insurance required under clauses (a) through (d) of Section
        9.1
        shall be
        carried in the name of Owner, if purchased by Owner, and, if required, mortgagee
        and the lessor under the Ground Lease, if any, and Select shall be named
        as a
        loss payee as to business interruption insurance. Losses thereunder shall
        be
        payable to the parties as their respective interests may appear. Notwithstanding
        the foregoing, if mortgagee is an institutional lender, and so requires,
        losses
        may be made payable to mortgagee, or to a bank or trust company qualified
        to do
        business in the state where the Hotel is located, in either instance as trustee
        for the custody and disposition of the proceeds therefrom. Owner agrees to
        use
        reasonable efforts to attempt to cause any mortgagee to agree that its mortgage
        shall contain a provision to the effect that proceeds from property insurance
        shall be made available for restoration of the Hotel. All insurance policies
        required in clauses (e), (f), and (i) through (l) of Section
        9.1,
        shall
        name Owner and its Affiliates, directors, officers, agents and employees
        of each
        such entity as additional insureds on a primary basis, irrespective of any
        other
        coverage, whether collectable or not. If said insurance is written by Owner,
        Select will be an additional insured, such insurance being primary to any
        insurance written by Select. Policies required in clauses (g), (h) and (m)
        shall
        be written in the name of the employer.

      9.5 Waiver
        of Liability.

      Neither
        Select nor Owner shall assert against the other, and do hereby waive with
        respect to each other, or against any other entity or person named as additional
        insureds on any policies carried under this Article
        IX,
        any
        claims for any losses, damages, liability or expenses (including attorneys’
fees) incurred or sustained by either of them on account of injury to persons
        or
        damage to property arising out of the ownership, development, construction,
        completion, operation or maintenance of the Hotel, to the extent that the
        same
        are covered by the insurance required under this Article
        IX.
        Each
        policy of insurance shall contain a specific waiver of subrogation reflecting
        the provisions of this Section
        9.5,
        and a
        provision to the effect that the existence of the preceding waiver shall
        not
        affect the validity of any such policy or the obligation of the insurer to
        pay
        the full amount of any loss sustained.

      9.6 Insurance
        by Select.

      Any
        insurance provided by Select under this Article IX may be effected under
        policies of blanket insurance which cover other properties of Select and
        its
        Affiliates, and Select shall have the right to charge the Hotel with the
        Hotel’s
        share of such premiums either pro-rata or as reasonably determined by Select’s
        brokers (subject to approval by Owner), which shall be allocated to the Hotel
        on
        the same basis as allocated to other participating Hyatt Place Hotels. Any
        policies of insurance maintained by Select pursuant to the provisions of
        this
        Article IX may contain deductible provisions in such amounts as are maintained
        with respect to other participating Hyatt Place Hotels, for which Owner shall
        be
        responsible or which Select, at Owner’s expense, may pay.

      9.7 Insurance
        Claims.

      Select
        shall, on behalf of Owner, promptly investigate all accidents on or about
        the
        Hotel made known to Select, and report the same promptly to the appropriate
        insurance carrier. Upon request from time to time by Owner, Select shall
        make a
        full report to Owner as to all material claims for damages relating to the
        ownership, operation and maintenance of the Hotel, and as to any damage or
        destruction to the Hotel and the estimated cost thereof, as such matters
        become
        known to Select, and shall prepare any and all reports and furnish any and
        all
        information required by any insurance company in connection therewith to
        the
        extent such information is within the knowledge or possession of
        Select.

      ARTICLE
        X

       

       

      Damage
        and Condemnation

       

      10.1 Damage
        to or Destruction of the Hotel.

      If
        any
        portion of the Hotel shall be damaged or destroyed at any time during the
        Term
        by fire, casualty or any other cause to an extent that would interfere with
        the
        income producing capacity of the Hotel, Owner shall, with due diligence,
        repair,
        rebuild or replace the same substantially to its condition prior to such
        damage
        or destruction. Such obligations of Owner are subject to (a) the receipt
        of
        adequate insurance proceeds (excluding business interruption insurance proceeds)
        available to Owner sufficient therefor and (b) the receipt of the consent
        of any
        Lender to the application of the insurance proceeds to such repair and
        rebuilding. If both conditions set forth in (a) and (b) have been met, and
        if
        Owner fails to undertake such work within one hundred eighty (180) days after
        the fire or other casualty (or such later date on which the conditions are
        met),
        or shall fail to complete such work diligently, within the time period agreed
        to
        therefor between Owner and Select, Select may, at its option, terminate this
        Agreement immediately by delivering a notice to Owner. Owner shall not be
        liable
        for damages by reason of any such termination. For purposes hereof, insurance
        coverage shall be deemed adequate if the amount thereof, plus any deductible
        amounts under the policy are, in the aggregate, sufficient to repair, rebuild
        and restore the damaged Hotel.

      Notwithstanding
        the foregoing, if:

      (i) the
        Hotel
        is damaged or destroyed to such an extent that the cost of repairs or
        restoration as reasonably estimated by Owner exceeds thirty percent (30%)
        of the
        full replacement cost (excluding land, excavations, footings and foundations)
        of
        the Hotel; or

      (ii) the
        Hotel
        is damaged or destroyed to such an extent that the estimated time for repair
        or
        restoration thereof, in the reasonable opinion of Owner, shall exceed eighteen
        (18) months from the commencement of such repair or restoration; or

      (iii) the
        damage or destruction shall occur at any time within the last three (3) years
        of
        the Term;

      and
        if in
        connection with any of the foregoing, Owner elects not to rebuild or restore
        the
        Hotel, then Owner shall be entitled to elect by notice to Select given at
        any
        time within one hundred eighty (180) days after the occurrence of such damage
        or
        destruction to terminate this Agreement without liability to Select or Owner
        by
        reason of such termination. Notwithstanding the foregoing, if Owner terminates
        this Agreement by reason of any of the foregoing provisions, and Owner
        thereafter nevertheless commences repair or restoration or rebuilding of
        a
        limited service hotel on the Site at any time within two (2) years following
        any
        such termination, and so long as the Franchise Agreement is still in effect,
        Select shall have the right (but not the obligation) exercisable at any time
        within ninety (90) days after Select has actual knowledge of Owner’s intention
        to rebuild or restore the Hotel, to elect to manage and operate the rebuilt
        or
        restored Hotel in accordance with the provisions of this Agreement from the
        opening date of the rebuilt or restored Hotel and for the unexpired Term
        (but
        not exceeding any period beyond the term of the Franchise Agreement, then
        in
        effect) remaining as of the date of the damage or destruction event which
        resulted in Owner’s termination hereof. If there is any dispute between Owner
        and Select as to whether Owner’s estimate of the cost of restoration, the full
        replacement cost of the Hotel, or the estimated time for repair or restoration
        is reasonable under the circumstances, the said dispute shall be submitted
        to
        arbitration conducted in accordance with the provisions of Article
        XII.

      10.2 Condemnation.

      (a) If
        the
        whole of the Hotel, or such portion thereof as shall, in the reasonable opinion
        of Owner, render the remaining portion of the Hotel unsuitable for use as
        a
        hotel conforming to the System Standards, shall be taken or condemned in
        any
        eminent domain, condemnation, compulsory acquisition, expropriation or like
        proceeding (including conveyances or transfers in lieu thereof) by any competent
        authority for any public or quasi-public use or purpose, Owner or Select
        may
        terminate this Agreement upon ninety (90) days notice to the other party.
        Select
        shall not be entitled to participate in any award or compensation received
        for
        such taking or condemnation, but nothing herein shall preclude Select from
        seeking an award or compensation for its loss of business or profits resulting
        from such taking or condemnation, provided no such award to Select shall
        have
        the effect of reducing amounts to which Owner would otherwise be
        entitled.

      (b) If,
        however, the portion of the Hotel remaining after any taking or condemnation
        described above is, in the reasonable opinion of both Owner and Select, suitable
        for use as a hotel meeting the System Standards and the Franchise Agreement
        continues to remain in effect, this Agreement shall not terminate, and subject
        to the consent and interest of any Lender, Owner shall make available out
        of its
        award such amount as shall be reasonably necessary to repair any damage to
        the
        Hotel, so as to render the Hotel a complete and satisfactory architectural
        and
        operational unit meeting the System Standards. If any Lender does not make
        available the proceeds of the award to Owner for repairs and restoration,
        then
        Owner shall, not later than one hundred eighty (180) days after the date
        of such
        taking, be entitled to terminate this Agreement upon ninety (90) days notice
        to
        Select.

      (c) If
        there
        is a taking or condemnation of all or part of the Hotel for temporary use
        not in
        excess of two (2) years, this Agreement shall remain in full force and effect.
        Owner shall commence restoration, repairs and alterations promptly after
        the
        termination or the taking or condemnation for temporary use and shall complete
        the same with diligence. All awards or other proceeds on account of the taking
        shall be the property of Owner. This Agreement shall then continue in effect
        for
        the balance of the Term (but not exceeding any period beyond the term of
        the
        Franchise Agreement, then in effect) remaining after the initial date of
        such
        taking.

      ARTICLE
        XI

       

       

      Assignment

       

      11.1 Assignment
        by Select.

      (a) Except
        as
        herein provided, Select shall not sell, assign, hypothecate, transfer or
        otherwise dispose of, in whole or in part, any of its rights or interests
        hereunder (but may, without Owner’s consent, assign or grant security interests
        in or to its right to receive Management Fees hereunder as security for any
        monetary obligations of Select). Notwithstanding the foregoing, Select may
        transfer or assign its rights under this Agreement in whole, but not in part,
        to
        any Affiliate of Select, whether as a result of merger, reorganization,
        acquisition, or “change in control,” subject, in each such case, to each of the
        following terms and conditions:

      (1) The
        transferee shall, no later than the effective date of the transfer, be an
        Affiliate of Hyatt Corporation;

      (2) The
        transferee shall have the full right, power and authority to enter into this
        Agreement and to fulfill the obligations of Select hereunder;

      (3) Not
        later
        than the effective date of any such transfer, the transferee shall have
        available to it the entire operating system of Select for the use and benefit
        of
        the transferee and the management and operation of the Hotel as part of Hyatt
        Place Hotels, including, without limitation, the benefit of services that
        are
        designed to approximate the Shared Services available to the Hotel prior
        to any
        such transfer; and

      (4) The
        transferee shall have executed a written instrument in form and substance
        reasonably satisfactory to Owner, a certified copy of which shall be delivered
        to Owner not later than twenty (20) days following the effective date of
        any
        such transfer, expressly assuming and agreeing to pay, perform and discharge
        all
        of the liabilities and obligations of Select hereunder, including, without
        limitation, any such liabilities or obligations arising or accruing prior
        to, on
        or after the effective date of any such transfer.

      (b) Upon
        satisfaction and discharge of all conditions set forth in Section
        11.1(a),
        Select
        shall be relieved of any liability or obligation hereunder arising after
        the
        date of such assignment.

      (c) Except
        as
        otherwise provided in this Section
        11.1,
        upon
        any other assignment or transfer by Select of its rights or interests in
        this
        Agreement, Owner shall have the option, exercisable within 60 days from the
        receipt by Owner of notice of such transfer or assignment, to terminate this
        Agreement without liability or payment to Select.

      11.2 Assignment
        by Owner.

      (a) In
        addition to any permitted collateral assignments to Lenders, Owner shall
        have
        the right to assign its entire rights and interests in this Agreement without
        the prior written consent of Select to (i) any Person Affiliated with Owner
        and
        (ii) any Person in connection with a sale or transfer of the Hotel (including,
        without limitation, any lease of the Hotel in its entirety), so long as all
        conditions set forth in this Section
        11.2
        shall
        have been met and satisfied and such assignee shall have applied for and
        qualified for the assumption of the Franchise Agreement or entered into a
        then-current Hyatt Place franchise agreement for the duration of the Term,
        prior
        to the effective date of any such assignment. Unless otherwise agreed to
        by
        Select, Owner shall not sell, assign or transfer the Hotel, or any interest
        therein or issue or permit the transfer of any Ownership Interest to any
        Person
        (i) engaged, directly or indirectly, as a substantial part of its business,
        in
        franchise licensing of hotels and not Affiliated with Owner; (ii) who fails
        or
        refuses to assume Owner’s responsibilities under this Agreement; or (iii) who
        would otherwise not qualify as a franchisee under the terms of the Franchise
        Agreement or who does not wish to apply for and enter into a then-current
        Hyatt
        Place franchise agreement for the Hotel for the duration of the Term. Upon
        any
        assignment hereof in connection with a sale or other transfer of the Hotel,
        Owner shall be relieved of its duties, obligations and liabilities hereunder
        arising after such assignment so long as all conditions set forth in this
        Section
        11.2(a)
        have
        been met and the assignee thereof expressly assumes in writing all such duties,
        obligations and liabilities (including, without limitation, those arising
        or
        relating to events occurring prior to any such assignment) and shall agree
        to be
        bound by this Agreement as evidenced by a written instrument executed by
        such
        assignee in favor of Select in form and substance reasonably satisfactory
        to
        Select. If Owner desires to effect an assignment of a majority of its Ownership
        Interest, Owner shall give Select not less than forty-five (45) days advance
        notice of its intention to do so, which notice shall identify in reasonable
        detail the direct and indirect owners of the proposed purchaser. In the event
        that the sale or transfer contemplated in this subsection
        (a)
        is to a
        Person not Affiliated with Owner or involves the transfer of a majority
        Ownership Interest in Owner, then the assignment of this Agreement shall
        specifically exclude Select’s obligation to reduce its fees in the event a
        Deficiency occurs or refund Owner’s Priority, as set forth in Section
        5.1,
        (ii)
Section
        2.5
        and
        (iii) Section
        2.7.
        Any
        such assignment further shall provide that that the Basic Fee is three percent
        (3%) of the Gross Receipts as of the effective date of the assignment of
        this
        Agreement. Notwithstanding the foregoing, if (i) Owner transfers 50% or more
        of
        the Ownership Interest to a Person Affiliated with Owner, (ii) Owner transfers
        fifty percent (50%) or more of the Affiliate Hotels (including the Hotel
        in a
        single transaction or series of related transactions with the same buyer
        or
        Person Affiliated with that buyer, and provided such Affiliate Hotels are
        being
        operated as Hyatt Place Hotels) or (iii) there is a transaction or event
        which
        constitutes a “change in control” of Equity Inns, Inc., then this Agreement
        (along with the applicable Affiliate Management Agreements) shall be assignable
        without any modifications or exclusions, so long as the transferees comply
        with
        the provisions of this Section
        11.2(a).

      (b) Notwithstanding
        the foregoing, in no event shall Owner subject the Hotel, or any part or
        interest therein, to a strata or condominium ownership regime, or permit
        the
        same to be so subjected, without the written consent of Select, which consent
        shall be in Select’s sole discretion.

      (c) In
        the
        event of an assignment of any Ground Lease relating to the Hotel, whether
        to or
        from an Affiliate of the then Owner or Ownership Participant or otherwise,
        (i)
        if the lessee shall become the “Owner” hereunder, such Person shall assume all
        of the liabilities and obligations of Owner herein set forth; and (ii) if
        the
        lessee is an Affiliate of Owner, the lessor shall not be relieved of any
        of the
        liabilities or obligations of Owner hereunder.

      (d) Notwithstanding
        anything herein to the contrary, the provisions of this Article
        XI
        shall be
        binding upon any transferee or subsequent transferee.

      ARTICLE
        XII

       

       

      Arbitration

       

      12.1 General.
        Any and
        all claims, disputes or controversies (collectively, “Disputes”)
        arising out of or relating in any manner or way to the Hotel, this Agreement
        or
        the breach thereof, or the relationship of the parties hereto, including
        but not
        limited to any Dispute over (a) the interpretation and/or enforceability
        of this
        Agreement, (b) whether or not an agreement between the parties exists, or
        (c)
        whether or not a Dispute is arbitrable, shall be resolved by arbitration
        in the
        manner provided for in Section
        13F
        of the
        Franchise Agreement substituting Owner and Select for Owner and Franchisor
        therein.

      12.2 Miscellaneous.
        Notwithstanding any provision of the Franchise Agreement to the contrary,
        if
        any, Owner and Select hereby agree as follows:

      THE
        ARBITRATORS SHALL HAVE NO AUTHORITY TO AWARD ANY PUNITIVE OR EXEMPLARY DAMAGES
        OR TO VARY OR IGNORE THE TERMS OF THIS AGREEMENT, AND SHALL BE BOUND BY
        CONTROLLING LAW.

      ARTICLE
        XIII

       

       

      Default

       

      13.1 Select
        Defaults.

      The
        occurrence of any one or more of the following events that continues for
        more
        than the period of grace (if any) provided below shall constitute an
“Event
        of Default”
by
        Select hereunder, and Select shall be deemed a “Defaulting
        Party”
with
        respect thereto and in “Default”
        hereunder:

      (a) If
        Select
        shall fail to keep, observe or perform any material covenant, agreement,
        term or
        provision of this Agreement, and such default shall continue for a period
        of
        thirty (30) days after written notice thereof by Owner to Select.

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

      (c) If
        any
        required licenses for the sale of alcoholic beverages are at any time suspended,
        terminated or revoked by reason of the unlicensability of Select (as opposed
        to
        any general legislation or governmental act prohibiting the sale of alcoholic
        beverages in general or by the class of businesses of which the Hotel is
        a part)
        and such suspension, termination or revocation shall continue for a period
        of
        sixty (60) consecutive days.

      (d) If
        the
        Franchisor defaults in its obligations pursuant to Section
        2.7
        hereof.

      13.2 Owner
        Defaults.

      The
        occurrence of any one or more of the following events that continues for
        more
        than the period of grace (if any) provided below shall constitute an
“Event
        of Default”
by
        Owner hereunder, and Owner shall be deemed a “Defaulting
        Party”
with
        respect thereto and in “Default”
        hereunder:

      (a) If
        Owner
        shall fail to provide funds to be deposited in the Operating Accounts in
        accordance with the provisions of Section
        8.2,
        and
        such failure shall continue for a period twenty (20) days following notice
        from
        Select that such funds are required and the reasons therefor and have not
        been
        provided within the time period herein set forth.

      (b) If
        Owner
        shall fail to keep, observe or perform any other material covenant, agreement,
        term or provision of this Agreement and such default shall continue for a
        period
        of thirty (30) days after notice thereof by Select to Owner.

      (c) If
        Owner
        shall apply for or consents to the appointment of a receiver, trustee or
        liquidator for Owner, or for all or a substantial part of its assets, file
        a
        voluntary petition in bankruptcy, or admit in writing its inability to pay
        its
        debts as they come due, make a general assignment for the benefit of creditors,
        file a petition or answer seeking reorganization or arrangement with creditors
        or liquidators or to take advantage of any insolvency proceeding, or if any
        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 or liquidation of
        Owner
        or appointing a receiver, trustee or liquidator for Owner or for all or a
        substantial portion of its assets, and such judgment, order or decree shall
        continue unstayed and in effect for any period of ninety (90) consecutive
        days.

      (d) Any
        required licenses for the sale of alcoholic beverages are at any time suspended,
        terminated or revoked by reason of the unlicensability of Owner (as opposed
        to
        any general legislation or governmental act prohibiting the sale of alcoholic
        beverages in general or by the class of businesses of which the Hotel is
        a part)
        and such suspension, termination or revocation shall continue for a period
        of
        sixty (60) consecutive days.

      (e) If
        Owner
        shall fail to keep, observe or perform any material covenant, agreement,
        term or
        provision of the Franchise Agreement; provided, however, that for such purposes,
        during the Term, Owner shall not be deemed to be in default with respect
        to any
        covenant, agreement, term or provision of the Franchise Agreement relating
        to
        Select’s management of the Hotel.

      13.3 Curing
        Defaults.

      Subject
        to the terms of Article
        XVI
        and the
        Franchise Agreement, no event that, by the nature of such event, is not
        susceptible, with the exercise of diligence, of being cured within the
        applicable grace period, shall constitute an Event of Default so long as
        the
        Defaulting Party has commenced to cure such default within such grace period
        and
        proceeds thereafter with due diligence and in good faith to cure the same.
        In no
        event shall additional time to cure apply in cases where the Event of Default
        in
        question may be cured on a timely basis by the payment of money in the amount
        due.

      13.4 Remedies.

      Subject
        to the provisions of Article
        XV,
        in the
        event of the occurrence of an Event of Default by the Defaulting Party, the
        other party, the “Non-Defaulting
        Party”
shall
        have and may exercise against the Defaulting Party such rights and remedies
        as
        may be available to the Non-Defaulting Party at law or in equity, including
        termination of this Agreement. Termination may be exercised by irrevocable
        and
        unconditional notice to the Defaulting Party and this Agreement shall terminate
        on the date set forth in such notice, which date shall in no event be sooner
        than ten (10) days nor later than thirty (30) days, after the delivery thereof.
        The right of termination, if available, shall be in addition to, and not
        in lieu
        of, any other rights or remedies provided hereunder or at law or in equity
        by
        reason of the occurrence of any such Event of Default. The exercise of the
        remedy of termination shall not constitute an election of remedies and shall
        be
        without prejudice to any such other rights or remedies otherwise available
        to
        the Non-Defaulting Party.

      ANYTHING
        HEREIN CONTAINED, AND ANYTHING AT LAW, TO THE CONTRARY NOTWITHSTANDING, IN
        ANY
        ACTION OR PROCEEDING BETWEEN THE PARTIES (INCLUDING, WITHOUT LIMITATION,
        ANY
        ARBITRATION PROCEEDING) ARISING OUT OF OR RELATED TO THIS AGREEMENT OR IN
        ANY
        MANNER PERTAINING TO THE HOTEL OR TO THE RELATIONSHIP OF THE PARTIES HEREUNDER,
        EACH PARTY HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES AND RELEASES ANY
        RIGHT,
        POWER OR PRIVILEGE EITHER MAY HAVE TO CLAIM OR RECEIVE FROM THE OTHER PARTY
        HERETO ANY PUNITIVE OR EXEMPLARY DAMAGES, EACH PARTY ACKNOWLEDGING AND AGREEING
        THAT THE REMEDIES HEREIN PROVIDED, AND OTHER REMEDIES AT LAW AND IN EQUITY,
        WILL
        IN ALL CIRCUMSTANCES BE ADEQUATE. THE FOREGOING WAIVER AND RELEASE SHALL
        APPLY
        IN ALL ACTIONS OR PROCEEDINGS BETWEEN THE PARTIES AND FOR ALL CAUSES OF ACTION
        OR THEORIES OF LIABILITY, WHETHER FOR BREACH OF THIS AGREEMENT OR FOR VIOLATION
        OF ANY OTHER DUTY OWING BY EITHER PARTY TO THE OTHER WHICH MAY IN ANY WAY
        RELATE
        TO SELECT’S MANAGEMENT OR OPERATION OF THE HOTEL. BOTH PARTIES FURTHER
        ACKNOWLEDGE THAT THEY ARE EXPERIENCED IN NEGOTIATING AGREEMENTS OF THIS SORT,
        HAVE HAD THE ADVICE OF COUNSEL IN CONNECTION HEREWITH, AND HAVE BEEN ADVISED
        AS
        TO, AND FULLY UNDERSTAND, THE NATURE OF THE WAIVERS HEREIN
        CONTAINED.

      ARTICLE
        XIV

       

       

      Notices

       

      All
        notices or other communications hereunder shall be in writing and shall be
        deemed duly delivered (i) upon personal delivery thereof to, and actual receipt
        by, the other party; (ii) upon electronic facsimile transmission to the other
        party, at its fax number as set forth below, provided such delivery is followed
        by an original of the notice delivered to the other party by overnight delivery
        or United States postal service delivery and provided the facsimile copy
        sent by
        the sender provides an automatic notation confirming the delivery thereof;
        (iii)
        on the next business day following delivery by the sender to a recognized
        and
        reliable air freight delivery service; or (iv) three (3) business days following
        deposit in the United States mails. Selection of the method of delivery shall
        be
        at the election and risk of the party sending the notice. All notices delivered
        hereunder shall be pre-paid by the sending party and shall be addressed to
        the
        parties as follows:

      If
        to
        Owner:  ENN
        Leasing Company, L.L.C.

      7700
        Wolf
        River Boulevard

      Germantown,
        Tennessee 38138

       

      Fax
        No.:
        (901) 754-2374

      Attention:
        Senior Vice President - Asset Management

       

      With
        a
        copy to: David
        C.
        Wright

      Hunton
        & Williams LLP

      951
        East
        Byrd Street

      Richmond,
        Virginia 23219

       

      Fax
        No.:
        804.788.8218

       

      If
        to
        Select:  Select
        Hotels Group, L.L.C.

      71
        South
        Wacker Drive

      12th
        Floor

      Chicago,
        Illinois 60606

      Attention:
        General Counsel

      Fax
        No.:
        312.780.5284

       

      Either
        party hereto shall have the right to change its address for notice or its
        fax
        number, or the identity of Persons (not more than two (2) in number) entitled
        to
        receive copies of any such notices, by delivery in the manner hereinabove
        provided of an appropriate notice to the other party setting forth the new
        address or the new fax number, or the identity of the additional or replacement
        Persons entitled to receive copies, or any one or more thereof.

      ARTICLE
        XV

       

       

      Transition
        and Termination of Franchise Agreement

       

      Upon
        expiration or earlier termination of this Agreement, Select and Owner will
        cooperate with each other to effect an orderly transition of management
        functions from Select to Owner, or to any Successor Manager designated by
        Owner.
        If the Franchise Agreement expires or is terminated for any reason whatsoever,
        notwithstanding any other provision of this Agreement to the contrary, this
        Agreement shall terminate contemporaneously with the effective termination
        date
        of the Franchise Agreement, but this Article
        XV
        shall
        survive such termination. In such event, Select and Owner will cooperate
        with
        each other to effect an orderly transition of management functions from Select
        to Owner, or to any Successor Manager designated by Owner. The provisions
        of
        this Article
        XV
        shall
        govern with respect to specific matters relating to the transition of management
        of the Hotel. To the extent there are any inconsistent provisions regarding
        the
        termination of this Agreement hereunder, the terms of this provision shall
        prevail.

      15.1 Employment
        Matters.

      Because
        all Hotel employees will be Select employees, the termination of this Agreement
        may result in a termination of their employment with Select; provided, however,
        that Select, upon obtaining express written approval from Owner, may make
        offers
        of employment to any management personnel then employed at the Hotel for
        employment at other Hyatt Place Hotels or hotels managed or operated by Select
        or its Affiliates. If Owner does not provide approval pursuant to this
Section
        15.1,
        Owner
        shall make or cause a new manager to make offers of employment to all such
        management personnel.

      Select
        agrees that, immediately upon receiving notice of termination of this Agreement
        from Owner, Select will take whatever steps are necessary, if any, to comply
        with the WARN Act. In the event (i) Owner gives Select less than 75
        (seventy-five) days notice of the effective date of termination of this
        Agreement, and (ii) Owner is terminating this Agreement for some reason other
        than Select’s breach of this Agreement or Select’s Grossly Negligent Acts or
        Willful Misconduct, Owner agrees to indemnify, defend and hold Select, and
        each
        of Select’s shareholders, officers, directors, employees and agents, completely
        free and harmless of and from any and all manner of liability, claim, loss,
        damage or expense of any kind or nature concerning Hotel employees that arise
        from Owner’s termination of this Agreement (notwithstanding the continuation of
        their employment at the Hotel as employees of Owner or a Successor Manager),
        including, without limitation, accrued payroll, accrued benefits such as
        vacation pay and sick days, any multi employer withdrawal liability, and
        any
        liabilities or obligations under WARN and other requirements applicable to
        severance or termination of employment (including severance obligations only
        to
        the extent any severance payments are made consistent with Select’s standard
        employment policies and such employees are not rehired by Owner or new manager)
        and other employment liabilities up to and including the date of termination
        of
        such employee as a Select employee. Notwithstanding anything contained herein
        to
        the contrary, Owner shall not be obligated to make any severance payments
        for
        employees rehired by Owner or new manager. Owner shall take reasonable steps
        to
        prevent Select from incurring any foreseeable losses under the WARN Act with
        respect to Hotel employees.

      15.2 Insurance.

      If
        Owner
        shall be included under any of Select’s chain-wide policies of insurance, or
        under the self-insurance program, such participation will be terminated as
        of
        the effective termination date of this Agreement, and Select shall have the
        right to reimburse itself for such premiums which may have accrued to the
        date
        of termination by withdrawing the appropriate amount thereof from the Operating
        Accounts. If Owner’s pro rata share of premiums under the chain-wide policies of
        insurance shall have been paid in advance, Select shall promptly reimburse
        Owner
        for the unused portion of such insurance premiums. Owner consents to the
        termination of the insurance program with respect to the Hotel as of the
        effective date of termination of this Agreement and agrees that Select shall
        have no further obligation, after the effective date of such termination,
        to
        provide or obtain any insurance coverage for the benefit of Owner or the
        Hotel
        thereafter. If the Hotel has participated in Select’s self-insured worker’s
        compensation, or other self-insured programs, Owner shall remain liable for
        the
        payment of deductible amounts under such programs for claims attributable
        to
        events occurring on or prior to the expiration or earlier termination
        hereof.

      15.3 Receivables.

      Select
        will reasonably cooperate with Owner, at Owner’s sole cost and expense, in the
        collection of any receivables outstanding as of the expiration or earlier
        termination of this Agreement, and will remit to Owner any amounts collected
        directly by Select after the effective date of termination that relate to
        such
        receivables.

      15.4 Intentionally
        Omitted.

      15.5 Proprietary
        Materials.

      Except
        as
        may be used with respect to an Affiliate Hotel, Owner agrees, as of the
        termination hereof, to cease using all Proprietary Materials, all such
        Proprietary Materials being the sole property of Select that may be removed
        by
        Select (without any payment or other reimbursement) as of the effective date
        of
        termination of this Agreement, and Owner shall no longer be entitled to use
        any
        thereof. Non-proprietary information on guests, patrons or groups relating
        to
        the Hotel may be used by Select and Owner, and their Affiliates, on a
        non-exclusive basis in the conduct of their respective businesses both during
        and after the Term including, but not limited to, use by Select in connection
        with guest loyalty programs.

      Although
        the removal of any software programs shall be coordinated with the installation
        of replacement systems, Select shall have no obligation to allow the proprietary
        software to remain in the Hotel beyond the termination of this Agreement,
        other
        than as required by the Franchise Agreement. To the extent necessary for
        an
        orderly transition of management functions, both a hard copy and, if feasible,
        an electronic copy of guest information relating to their patronage of the
        Hotel
        for the period through the termination of this Agreement shall be given to
        Owner
        (except for such information previously discarded in accordance with applicable
        records retention policies). To the extent Select has leased any computer
        equipment or communications equipment for use at the Hotel in accordance
        with
        the provisions of this Agreement pursuant to chain-wide programs for the
        acquisition or leasing thereof, Owner shall have the right, at its option,
        either to request that any such lease be transferred to Owner (to the extent
        the
        same are transferable without the consent of third parties) or that Select
        seek
        to buy out the equipment covered by any such lease, the cost of which shall
        be
        borne solely by Owner. Any such lease transfer or buy-out shall be subject
        to
        the approval of the third party owners of such equipment. If not assignable
        or
        if the same cannot be bought out, Select shall remove all such equipment
        from
        the Hotel at any time on or after the effective date of termination of this
        Agreement but in no event later than fourteen (14) days thereafter.

      15.6 Service
        Contracts.

      Owner
        acknowledges that Select may not have the ability to transfer to Owner the
        continuing benefits of Chain Contracts, or any contract with a Purchasing
        Company, upon termination of this Agreement. Owner agrees that such contracts,
        leases and service agreements will not be assigned, transferred or continued
        after such date, and Select may, therefore, remove the Hotel from any such
        contracts applicable to the Hotel, as of the effective date of termination
        of
        this Agreement. Any leases or contracts entered into by Select as agent for
        Owner in accordance with the terms of this Agreement shall remain the liability
        and obligation of Owner.

      15.7 Bookings.

      Following
        the termination of this Agreement, Owner agrees that it shall, and shall
        cause
        any Successor Manager to, honor all bookings for future reservations or use
        of
        Hotel rooms or facilities that may have been accepted or entered into by
        Select
        on or at any time prior to the termination of this Agreement, in accordance
        with
        the terms of such bookings as accepted by Select (including, without limitation,
        bookings made in good faith by Select for employee complimentary or discounted
        rooms, Gold Passportâ
        reservations and bookings pursuant to outstanding gift certificates or Select
        promotional programs). Select shall, on the effective date of termination,
        provide Owner with a complete list of all such bookings, the terms applicable
        thereto, and the amount of advance deposits (if any) received with respect
        to
        each such booking. Owner will assume and fully indemnify Select with respect
        to
        any claims by guests relating to advance deposits theretofore received by
        Select, on behalf of the Hotel and disclosed to and remitted to Owner.
        Notwithstanding the foregoing, once the termination date has been established,
        Select agrees that without Owner’s consent Select will not book reservations for
        rooms or public space at the Hotel for dates after such
        termination.

      15.8 Licenses
        and Permits.

      All
        licenses or permits relating to the Hotel that have been obtained in the
        name of
        Select shall be transferred and assigned to Owner or the Successor Manager.
        Select shall provide Owner with a complete listing of all permits and licenses
        as soon as reasonably practicable prior to the effective date of termination
        so
        as to permit Owner or Successor Manager sufficient time to apply for new
        licenses or permits or to effect transfer to the name of Owner or Successor
        Manager. With respect to any non-transferable licenses or permits, Select
        agrees
        that it shall cooperate with Owner and Successor Manager in obtaining new
        licenses or permits, and, in connection therewith, shall surrender or agree
        to
        surrender corresponding licenses or permits to the extent applicable solely
        to
        the Hotel which are then carried in Select’s name.

      15.9 Operating
        Accounts.

      All
        funds
        in the Operating Accounts that are in excess of minimum amounts necessary
        to
        keep such accounts open, plus the amount of then outstanding checks, drafts,
        or
        orders of withdrawal or other items drawn against the Operating Accounts
        and any
        amounts payable to Select and its Affiliates under this Agreement, shall
        be
        remitted to Owner as of the effective date of expiration or termination.
        Operating Accounts shall remain open for a period of one (1) year after
        expiration or termination in order to enable clearance of outstanding items.
        After such one (1) year period, Select will cooperate with Owner to close
        all
        such Operating Accounts and transfer any remaining funds to Owner.

      15.10 Accounts
        Payable.

      Accounts
        payable of the Hotel incurred in accordance with the terms hereof remaining
        unpaid as of the effective date of expiration or termination shall be assumed
        by
        Owner and paid as and when due. For this purpose, the term “accounts payable”
shall include, without limitation, liabilities accrued as of such date, but
        not
        yet billed, together with any amounts required to be paid to Select hereunder.
        In addition, if any items of FFE have been ordered prior to expiration or
        termination hereof in accordance with the provisions of this Agreement, Owner
        shall pay all required charges therefor, whether or not shipped or received
        at
        the Hotel prior to such date. Owner shall indemnify and hold Select harmless
        from any cost or liability relating to the foregoing.

      ARTICLE
        XVI

       

       

      General

       

      16.1 Third
        Party Beneficiaries.

      Except
        for those provisions herein which are for the express benefit of Lenders
        and
        Franchisor, and the provisions herein relating to the Franchisor’s subordination
        of fees payable under the Franchise Agreement, none of the rights or obligations
        hereunder of either party shall run to, or be enforceable by, or be deemed
        to
        have been made for the benefit of, any party other than the parties to this
        Agreement and their respective successors and assigns in accordance with
        the
        provisions of this Agreement.

      16.2 Counterparts.

      This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        an original and all of which when taken together shall constitute a single
        instrument.

      16.3 Entire
        Agreement.

      Other
        than specific references made to other agreements in this Agreement, this
        Agreement and its exhibits constitute the entire understanding and agreement
        of
        the parties hereto with respect to the subject matter hereof and supersede
        all
        prior understandings and writings between the parties.

      16.4 Amendments.

      This
        Agreement may be changed or modified only by an agreement in writing signed
        by
        the parties hereto, and no oral understandings shall be binding as between
        the
        parties.

      16.5 Brokers.

      Owner
        and
        Select each warrants and represents to the other that no broker or finder
        was
        retained by such party to render services in connection with any of the
        transactions contemplated hereby, and that no fees are due to any third party
        with respect hereto.

      16.6 Successors
        and Assigns.

      Subject
        to the express provisions of Article
        XI
        above,
        this Agreement shall be binding upon, and shall inure to the benefit of,
        the
        parties hereto, and their respective successors and assigns.

      16.7 Headings.

      The
        Article and Section headings contained herein are for convenience of reference
        only and are not intended to define, limit or describe the scope or intent
        of
        any provision of this Agreement.

      16.8 Governing
        Law.

      This
        Agreement is made pursuant to and shall be construed and interpreted in
        accordance with, the laws of Illinois.

      16.9 Interest
        on Overdue Sums.

      If
        either
        party shall fail to pay, when due (after any applicable cure period as defined
        herein), any sum payable to the other party hereunder, then the Defaulting
        Party
        shall, without notice to or demand upon it, be liable to the other party
        for the
        payment of such sum together with interest thereon at the rate of (i) “Prime”
plus 1% per annum or (ii) the maximum rate of interest allowed by law, whichever
        shall be less, from the date when such sum shall become due to the date of
        actual payment. For the purposes hereof, “Prime”
shall
        mean the rate per annum published from time to time in the Wall
        Street Journal
        as the
        prevailing prime rate of interest.

      16.10 Approvals.

      If
        a
        party shall desire the approval or consent of the other party hereto to any
        matter, such party may give notice to such other party that it requests such
        approval, specifying in reasonable detail the matter as to which such approval
        is requested. If such other party shall not approve such matter in writing
        within twenty (20) days after receipt of such notice or such longer period
        as
        may be specifically provided for herein, such other party shall be deemed
        to
        have disapproved the matter referred to in such notice.

      16.11 Relationship
        Waivers.

      The
        relationship between the parties hereto shall be that of principal and agent.
        Nothing herein contained shall be deemed or construed to render the parties
        hereto partners, joint venturers, landlord/tenant or any other relationship.
        To
        the extent there is any inconsistency between the common law fiduciary duties
        and responsibilities of principals and agents and the provisions of this
        Agreement, the provisions of this Agreement shall prevail, and this Agreement
        shall be deemed a waiver by Owner of any fiduciary duties owed by an agent
        to
        its principal, and a waiver by Select of any obligations of a principal to
        its
        agent, to the extent the same are inconsistent with, or would have the effect
        of
        modifying, limiting or restricting, the express provisions of this Agreement.
        This Agreement shall be interpreted in accordance with general principles
        of
        contract interpretation without regard to the common law of agency except
        as
        expressly incorporated in the provisions of this Agreement, and that liability
        between the parties shall be based solely on principles of contract law.
        Furthermore, neither party shall have any duty or obligation to the other
        party,
        otherwise arising as a matter of law, except as specifically set forth herein.
        In no event shall Select be deemed in breach of its duties hereunder, or
        otherwise at law or in equity, solely by reason of (i) the failure of the
        financial performance of the Hotel to meet Owner expectations or income
        projections or other matters included in the Annual Plan, (ii) the institution
        of litigation or the entry of judgments against Owner or the Hotel with respect
        to the Hotel operations, or (iii) any other acts or omissions not otherwise
        constituting a breach of this Agreement. The parties agree that Select’s sole
        obligation hereunder shall be to act in conformity with the standard of skill,
        care and diligence referred to in Section
        2.1,
        in
        conformity with the System Standards, and otherwise in conformity with the
        express terms of this Agreement. Furthermore, as between Owner and Select,
        Select shall have NO LIABILITY FOR PUNITIVE DAMAGES OR FOR INCIDENTAL OR
        CONSEQUENTIAL DAMAGES to Owner in respect of a breach of fiduciary
        duties.

      16.12 Survival
        and Continuation.

      Notwithstanding
        the termination of the Term or Select’s management of the Hotel in accordance
        with this Agreement, all terms, provisions and obligations of either party
        contained herein which, by the terms of this Agreement, survive the expiration
        or termination hereof, or which, in order to give them effect and accomplish
        their intent and purpose, need to survive such termination (including, without
        limitation, the provisions of Article
        XVI
        hereof),
        shall survive and continue until they have been fully satisfied or
        performed.

      16.13 Select
        Approvals of Plans and Budgets.

      Owner
        and
        Select agree that in each instance in this Agreement, or elsewhere where
        Select
        is required or entitled to approve plans, specifications, budgets and/or
        financing, notwithstanding that Owner may have retained services of contractors
        or vendors recommended by Select, no such approval shall imply or be deemed
        to
        constitute an opinion by Select, nor impose upon Select any responsibility
        for
        the design or construction of Building elements including, but not limited
        to,
        structural integrity, life/safety requirements, adequacy of budgets and/or
        financing or the compliance with environmental laws.

      All
        the
        above reviews and approvals by Select under the terms of this Agreement are
        for
        the sole and exclusive benefit of Select and no other Person or party shall
        have
        the right to rely on any such reviews or approvals by Select. Select shall
        have
        the absolute right, in its sole discretion, to waive any such reviews or
        approvals as a condition to its performance under the Management
        Agreement.

      16.14 Confidentiality.

      All
        information regarding the Hotel or Owner not otherwise in the public domain
        by
        publication or otherwise shall, except as otherwise herein expressly permitted
        or provided, be received and maintained by Select in a confidential manner
        and
        shall not be disclosed to any third party without the prior written consent
        of
        Owner or otherwise in accordance with the express provisions of this Agreement.
        Owner agrees that it will hold confidential all information relating to Select
        and its operating procedures and policies including, without limitation,
        all
        Proprietary Materials. The foregoing obligations shall survive the termination
        of the Term of this Agreement by expiration or otherwise. Notwithstanding
        the
        foregoing, (i) nothing contained herein shall be deemed to prohibit Select
        from
        disclosing any such information to reputable statistical computation firms
        who
        agree not to disclose the identity of the Hotel with respect to such
        confidential information; or (ii) to other Persons when such disclosure is
        deemed reasonably necessary by Select in order to perform its obligations
        hereunder; (iii) to other Persons in accordance with lawful standard industry
        information sharing arrangements; (iv) to financing sources and prospective
        purchasers of Select, or its assets, or of the Hotel, that has executed a
        confidentiality agreement; or (v) to gaming regulators as contemplated by
        Section
        2.4.

      16.15 Non-Recourse.

      Select
        shall look solely and only to the Hotel (including, for this purpose, the
        Operating Accounts) and the revenues therefrom and proceeds thereof for the
        payment of any amount and the performance and observance of any representation,
        warranty, covenant, undertaking, obligation or provision to be paid, performed,
        discharged or observed by Owner under this Agreement. No partner, shareholder,
        employee or agent of Owner, nor any disclosed or undisclosed principal for
        whom
        Owner may be acting, nor any of their respective heirs, administrators,
        executors, personal representatives, successors or assigns, shall have any
        personal liability or other personal obligation for or with respect to any
        payment, performance or observance of any obligations, provisions,
        representations, warranties, covenants, indemnification or other undertakings
        to
        be paid, performed, discharged or observed by Owner under this Agreement,
        and,
        except as otherwise provided herein, Select agrees not to seek to enforce
        any
        money judgment against any of the foregoing parties or personally against
        any of
        their assets other than their respective rights and interests in the Hotel
        (including, for this purpose, the Operating Accounts), its revenues and
        proceeds.

      16.16 Force
        Majeure.

      Except
        as
        provided herein, the obligations of either party to perform under this Agreement
        within specified times (other than the payment of money) shall be extended
        for a
        period of time equivalent to the period of delay caused by Force Majeure.
        If, at
        any time during the Term, Select is unable to perform its obligations under
        this
        Agreement due to Force Majeure, or if it becomes necessary, in Select’s
        reasonable opinion, to cease operation of the Hotel in order to protect the
        Hotel and/or the health, safety and welfare of the guests and/or employees
        of
        the Hotel due to the occurrence of a Force Majeure Cause, then Select may
        close
        and cease or partially cease operation of all or any part of the Hotel as
        necessary based on the occurrence of the Force Majeure Cause, reopening and
        recommencing operation of the Hotel when Select deems that the reopening
        and
        recommencement of operations may be done pursuant to applicable Legal
        Requirements and without jeopardy to the Hotel, its guests or
        employees.

      16.17 Select’s
        Use of Affiliates.

      In
        fulfilling its obligations under this Agreement, Select may from time to
        time
        use the services of one or more of its Affiliates. If an Affiliate of Select
        performs services Select is required to provide under this Agreement, Select
        shall be ultimately responsible to Owner for the Affiliate’s performance, and
        Owner shall not pay more for the Affiliate’s services and expenses than Select
        would have been entitled to receive under this Agreement had Select performed
        the said services.

      16.18 No
        Representation Regarding Forecasts.

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

      16.19 Continued
        Effectiveness of Franchise Agreement.

      Select
        and Owner hereby agree and acknowledge that this Agreement is being entered
        into
        in support of and in conjunction with the Franchise Agreement, notwithstanding
        that the Franchise Agreement has been previously executed. The parties further
        agree that if this Agreement is terminated for any reason whatsoever, the
        Franchise Agreement shall continue to remain in full force and effect so
        long as
        there are no defaults under the terms thereof.

      [Signature
        page follows.]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      OWNER:

       

      [INSERT
        NAME],

      a
        Delaware limited liability company

       

      By: 

      Name: 

      Title: 

       

      SELECT:

       

      SELECT
        HOTELS GROUP, L.L.C.,

      a
        Delaware limited liability company

       

      By: 

      Name: 

      Title: 

       

      The
        undersigned, Hyatt Place Franchising, L.L.C., hereby acknowledges and confirms
        that it has reviewed the provisions of Section
        2.7,
        Section
        5.1,
        Section
        5.2
        and
Section
        11.2
        of the
        foregoing Agreement, and by the signature set forth below confirms its consent
        to the provisions of such Section
        2.7,
        Section
        5.1,
        Section
        5.2
        and
Section
        11.2.

      HYATT
        PLACE FRANCHISING, L.L.C.,

      a
        Delaware limited liability company

       

      By:  

      Name:  

      Title:  

       

      [Signature
        page to Management Agreement]

       

      

      
        
          
            Annex
              B
              - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A

       

      Site

       

      

       

      EXHIBIT
        B

       

      ADDENDUM
        TO MANAGEMENT AGREEMENT

       

      This
        Addendum to Management Agreement is made and entered into this ___ day of
        _____,
        20___ by and between _____________,
        a
        _______________ (“Owner”),
        and
SELECT
        HOTELS GROUP, L.L.C.,
        a
        Delaware limited liability company (“Select”).

      

      PRELIMINARY
        STATEMENT

      

      Owner
        and
        Select have heretofore entered into a certain Management Agreement, dated
        as of
        ___________, 2006, pursuant to which Owner has appointed Select, and Select
        has
        accepted the appointment, as agent for and on behalf of Owner to manage and
        operate the Hotel property therein referred to. The “Hotel” has now opened for
        business to the public as a Hyatt Place Hotel, and Owner and Hyatt wish to
        document certain relevant dates under the “Management Agreement”.

      

      NOW,
        THEREFORE,
        it is
        hereby agreed, by and between Owner and Select as follows:

      

      
        	
                1.

              	
                Definitions.
                  All terms used herein, including quoted terms used in the [Preliminary
                  Statement,] shall have the same meaning as set forth, or incorporated,
                  in
                  the Management Agreement.

              

      

      

      
        	
                2.

              	
                Term.
                  For all purposes of the Management Agreement, the Full Conversion
                  Date
                  shall mean ______________________, 2008 and the “Initial Term” shall end
                  on ___________ _________, 20__.

              

      

      

      
        	
                3.

              	
                Reconfirmation.
                  In
                  all other respects, the Management Agreement shall continue in
                  full force
                  and effect.

              

      

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto, have caused this instrument to be duly executed as of the
        date
        and year first above written.

      

       

      OWNER:

       

      [INSERT
        NAME],

       

      a
          limited
        liability company

       

      By: 

      Name: 

      Title: 

       

      SELECT:

       

      SELECT
        HOTELS GROUP, L.L.C.,
        a
        Delaware limited liability company

       

      By: 

      Name: 

      Title: 

      

       

      

       

      

       

      EXHIBIT
        C-1

       

      Mandatory
        Contracts

       

      The
        Hotel
        will be required to participate in certain programs and/or shared services
        made
        available by Select and/or its Affiliates from time to time (collectively
        “Mandatory
        Shared Services”)
        for
        the hotels operated or managed by Select. Select utilizes centralized services
        functions to operate its managed hotels on a cost effective basis. In order
        to
        reduce costs at the hotel level, certain services are performed and supervised
        at the company’s headquarters location. The allocation of costs for Mandatory
        Shared Services is based upon specific formulae developed by Select certain
        of
        which include an allocable share of corporate office overhead and occupancy
        costs, as applicable, but without a profit or mark-up component to
        Select.

      

      The
        Mandatory Shared Services currently are provided out of Select’s Shared Services
        Center located at 200 West Monroe Street, Chicago, IL 60606, which provides
        operational
        departmental supervision and control services
        for,
        among others, hotel finance and accounting, information technology, and human
        resources departments.
        Current
        Mandatory Contracts are described as follows:

      

      The
        following 1-6 are subject to the flat monthly rate for Shared
        Services:

      

      
        	
                1.

              	
                Human
                  Resources Services.
                  Select provides full service human resource and employee relations
                  services to Hyatt Place Hotels including, but not limited to, centralized
                  payroll, specialized and divisional training programs, preparation
                  and
                  revision of manuals, administrative and policy enforcement, employee
                  relations, administration of compensation programs, oversight of
                  workers
                  compensation and safety programs, hotel-level training and development,
                  recruiting, diversity programs, and monitoring compliance with
                  affirmative
                  action policies and other employment policies and
                  practices.

              

      

      

      
        	
                2.

              	
                Technology
                  Services.
                  Select provides information technology services for the benefit
                  of Hyatt
                  Place Hotels and other hotels operated and managed by Select through
                  resources located at it corporate office in Chicago, Computer Sciences
                  Corporation located in Oakbrook, IL and in the Hotel Technology
                  Group
                  located at the company’s Marion Reservations Center in Marion IL. Hotel
                  property management services are provided by MSI located in Phoenix
                  AZ.

              

      

      

      
        	 	
                Select’s
                  Shared Services Center, through its own resources and those of
                  its
                  vendors, provides centralized management and support of technology-based
                  systems and infrastructure, including, but not limited to, installation,
                  maintenance and support for property-based operating systems. Such
                  systems
                  include local and long distance communication, property management
                  systems, business center support, point of sale service, and web-based
                  functions.

              

      

      

      
        	
                3.

              	
                Purchasing
                  Services.
                  Select makes various goods and services available to Hyatt Place
                  Hotels
                  through a centralized purchasing program currently administered
                  by
                  Avendra, LLC (“Avendra”),
                  a procurement services company in which an affiliate of Select
                  has a
                  minority ownership interest. Other than sponsorship funds from
                  Avendra
                  vendors used to defray meeting costs otherwise allocable to participating
                  Hyatt Place Hotels, Select receives no fees, commissions or other
                  remuneration in connection with such purchasing
                  services.

              

      

      

      Under
        the
        terms of Select’s current Procurement Services Agreement with Avendra effective
        April 1, 2004, Avendra is entitled to charge a specified fee on purchases
        made
        by Select accounts through its programs, typically based on a percentage
        of the
        actual cost of the goods or services being provided. All unrestricted
        allowances, fees or commissions made available by vendors or distributors
        on
        purchases made by a hotel, after payment of Avendra’s fee on those purchases,
        are returned to that hotel.

      

      With
        respect to FFE purchasing services, Rosemont Project Management, LLC, provides
        purchasing services to Hyatt Place Hotels for the purchase of furniture,
        fixtures and equipment that, together with renovation related services are
        typically subject to a separate contract and fee structure (which includes
        a
        profit component).

      

      
        	
                4.

              	
                Accounting
                  and Finance Services.
                  Through the operational oversight of its Shared Services Center,
                  Select
                  provides certain accounting and finance support to Hyatt Place
                  Hotels and
                  other hotels operated or managed by Select to ensure integrated
                  accounting
                  processes and establish and maintain a sound system of accounting
                  and
                  record keeping with adequate systems of internal accounting controls.
                  This
                  support includes, but is not limited to, payroll processing and
                  related
                  functions, centralized reporting functions, maintenance of operating
                  licenses and permits, payment of expenses incurred in the operation
                  of the
                  Hotel, purchase of all Hotel operating supplies and Operating Equipment,
                  production and distribution of reports, and preparation of all
                  sales, use,
                  occupancy and business tax returns.

              

      

      

      
        	
                5.

              	
                Taxes.
                  In certain jurisdictions, Select may be required to file local
                  or state
                  sales, use, occupancy and similar taxes on a consolidated basis.
                  In these
                  situations, amounts owed by each hotel are aggregated and remitted
                  to the
                  applicable taxing authority. Any additional charges or refunds
                  are
                  determined based on specific cost/revenue base of each hotel for
                  the
                  applicable tax.

              

      

      

      
        	
                6.

              	
                Other
                  Corporate Services.
                  Select provides a number of other corporate services and programs
                  for the
                  benefit of Hyatt Place Hotels, including, without limitation, revenue
                  management, employment tax credits, certain training programs and
                  other
                  various services. Costs are allocated among hotels that receive
                  these
                  services or participate in these programs as a component of the
                  flat
                  monthly fee charged to each Hotel.

              

      

      

      The
        following are not subject to the flat monthly rate for Shared
        Services:

      

      
        	
                7.

              	
                Chargeable
                  Mandatory Contracts.
                  Select from time to time negotiates contracts with vendors or providers
                  of
                  services that necessitate mandatory participation by all Hyatt
                  Place
                  Hotels (such as credit card acceptance commissions and processing
                  fees,
                  music license agreements, telecommunications agreements, benefits
                  administration services by Hewitt Associates, payroll processing
                  by ADP,
                  workers compensation and employee practices insurance) or by certain
                  Hyatt
                  Place Hotels (e.g. hotels in a certain business segment) provided,
                  however, that the Hotel shall not be subject to any contract to
                  the extent
                  its term extends beyond the Term. In addition to the flat rate
                  for Shared
                  Services Costs set forth herein, the costs of these contracts are
                  billed
                  back to each hotel directly or based upon Select’s reasonable
                  determination of the appropriate allocation for such hotel. While
                  Select
                  does not receive any fees, rebates or commissions under, or with
                  respect
                  to, Chargeable Mandatory Contracts, certain of the Chargeable Mandatory
                  Contracts may provide for promotional or other allowances that
                  are then
                  allocated among participating Hyatt Place Hotels as determined
                  by Select
                  (or as required by the vendor or supplier in question) or utilized
                  for
                  promotional activities benefiting all or substantially all Hyatt
                  Place
                  Hotels.

              

      

      

      Specifically
        with respect to employee benefits plan administration, Select has an outsourcing
        agreement with Hewitt Associates for plan administration at a pass through
        cost
        of $7.10 per employee per month as follows:

      

      
        	 	
                a.

              	
                Health
                  and Dental Plan (Non-Union Personnel and Non-HMO
                  Personnel).
                  Select is self-insured for these programs. Claims and administrative
                  costs
                  are allocated among the hotels on the basis of the number of participating
                  employees in each plan. Amounts are paid to Select, reconciled
                  and
                  aggregated and then charged to each
                  hotel.

              

      

      

      
        	 	
                b.

              	
                Retirement
                  Plans (Non-Union Employees).
                  All hotels managed by Select pay a percentage of eligible compensation
                  pursuant to the applicable retirement plan documents and/or a fixed
                  amount
                  per employee (class), which is reconciled and aggregated at the
                  Select
                  corporate level and deposited in a retirement trust fund. Employees
                  self-direct the investment of their individual account balances
                  for these
                  defined contribution plans. In addition, certain plan related
                  communications and other direct expenses are allocated to each
                  hotel based
                  on plan eligible full-time
                  equivalents.

              

      

      

      
        	 	
                c.

              	
                Other
                  Benefit Plans.
                  Costs associated with other benefit plans such as life insurance,
                  long
                  term disability and business and travel accident plans, are based
                  on
                  preliminary eligible classifications and are paid directly to the
                  carriers
                  by Hewitt Associates and billed back to each
                  hotel.

              

      

      

      

       

      EXHIBIT
        C-2

       

      Non-
        Mandatory Shared Services

       

      Select
        and its Affiliates make certain additional programs and/or services available
        to
        Hyatt Place Hotels allowing each hotel to participate at its discretion.
        These
        programs and/or services include the following (“Non-Mandatory
        Shared Services”):

      

      
        	
                1.

              	
                Insurance
                  Programs.
                  Select offers various insurance programs to Hyatt Place Hotels,
                  participation in which is voluntary and generally subject to the
                  acceptance of the hotel into the program by underwriters. These
                  various
                  programs are as follows:

              

      

      

      
        	 	
                a.

              	
                General
                  Liability and Auto Insurance.
                  Comprehensive general liability insurance, including liquor and
                  dram shop
                  liability insurance, automobile coverage for all hotel vehicles,
                  umbrella
                  liability insurance, and crime and fidelity insurance, the cost
                  of which
                  is allocated among all participating hotels based upon their respective
                  total hotel revenues.

              

      

      

      
        	 	
                b.

              	
                Property
                  Insurance.
                  Property and business interruption insurance, the cost of which
                  depends on
                  the valuation of each participating
                  hotel.

              

      

      

      For
        all
        insurance programs offered by Select, neither Select nor its Affiliates intend
        to make a profit, nor are they expected to incur costs if actual claims are
        in
        excess of premiums paid by participating hotels. Accordingly, Select reserves
        the right either to charge additional amounts (including cancellation penalties
        if a hotel cancels its participation in the middle of a policy year), or
        credit
        future premiums or refund amounts, as applicable, to participating hotels
        as
        necessary and desirable to ensure that Select’s insurance programs are
        adequately funded and that all amounts paid by participating hotels are used
        to
        cover actual costs of Select’s insurance programs, including an allocable share
        of corporate office overhead, without mark up or profit to Select.

      

      
        	
                2.

              	
                Pritzker
                  Family Business Interests.
                  Given the varied nature and scope of investments by or on behalf
                  of
                  Pritzker Family Business Interests, there may be situations where
                  a
                  company in which Pritzker Family Business Interests hold an interest
                  (either directly or indirectly) does business with Select or individual
                  Hyatt Place Hotels. Where that interest is material and is known
                  to
                  Select, Select will inform hotel owners. For example, TransUnion,
                  one of
                  the two vendors approved to perform employee background checks
                  at Hyatt
                  Place Hotels, is one of the Marmon companies owned by Pritzker
                  Family
                  Business Interests. While TransUnion is neither a Select company
                  nor a
                  Select Affiliate, owners of hotels that selected TransUnion are
                  notified
                  of this relationship prior to their selection. As another example,
                  in
                  certain years, Select or Select’s primary insurers may obtain certain
                  insurance product lines through Western General Insurance, Ltd.,
                  a Bermuda
                  re-insurance company in which Pritzker Family Business Interests
                  hold an
                  interest. Any such transactions, either direct or indirect, are
                  arms
                  length to Select and do not contain a profit element to
                  Select.

              

      

      

       

      EXHIBIT
        D

       

      Intentionally
        Omitted

      

      

      

      

       

      

       

      EXHIBIT
        E

       

      EXAMPLE
        COMPUTATION OF MANAGEMENT FEES/FRANCHISE FEES

      (amounts
        are for demonstration purposes only)

      

      

      
        	 	
                YTD

                3/31/08

              	
                YTD

                8/31/08

              	
                YTD

                12/31/08

              
	
                Project
                  Costs

              	
                $10,000,000

              	
                $10,000,000

              	
                $10,000,000

              
	
                Minimum
                  % Return 

                Owner’s
                  Priority

              	
                9.50%

                $950,000

              	
                9.50%

                $950,000

              	
                9.50%

                $950,000

              
	
                Cumulative
                  YTD Owner’s Priority (1)

              	
                A
                  $237,500

              	
                $633,333

              	
                $950,000

              
	
                Total
                  Hotel Revenue (i.e. Gross Receipts)

              	
                $650,000

              	
                $1,700,000

              	
                $2,400,000

              
	
                Adjusted
                  NOI, before Royalty Fee & Basic Fee(2)

              	
                B
                  $266,500

              	
                $799,000

              	
                $1,080,000

              
	
                Adjusted
                  NOI above Owner’s Priority

              	
                B-A
                  $29,000

              	
                $165,667

              	
                $130,000

              
	
                Royalty
                  Fee Earned (Max of 4%)

              	
                C
                  $26,000

                4.0%

              	
                $68,000

                4.0%

              	
                $96,000

                4.0%

              
	
                Basic
                  Fee Earned 

                (Max
                  of 3%)

              	
                D
                  $3,000

                0.5%

              	
                $51,000

                3.0%

              	
                $34,000

                1.4%

              
	
                Adjusted
                  NOI

              	
                B-C-D=E

                $237,500

              	
                $680,000

              	
                $950,000

              
	
                Excess
                  Adjusted NOI

              	
                E-A
                  $0

              	
                $46,667

              	
                $0

              
	
                Incentive
                  Fee Earned (10% of Excess Adjusted NOI)

              	
                None

              	
                $4,667

                0.3%

              	
                None

              

      

      

      (1)
        Calculated based on actual months divided by 12.

      

      (2)
        Before Royalty Fee and Basic Fee.

      SCHEDULE
        1

       

      AFFILIATE
        HOTELS

      

      
        	 	
                Hotel

              	
                Owner

              	
                Lessee

              	
                Existing
                  Manager

              	
                Existing
                  Guarantee Termination Date

              
	
                 

                BC

              	
                 

                AmeriSuites

                (Birmingham/Riverchase)

                2980
                  John Hawkins Parkway

                Hoover,
                  AL 35244

              	
                 

                EQI
                  Financing Partnership V, LP

              	
                 

                ENN
                  Leasing Company V, L.L.C.

              	
                 

                Oradell
                  Holding, L.L.C.

              	
                 

                June
                  30, 2008

              
	
                FF

              	
                AmeriSuites

                (Flagstaff/Interstate
                  Crossroads)

                2455
                  S. Beulah Road

                Flagstaff,
                  AZ 86001

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                MM

              	
                AmeriSuites

                (Miami/Kendall)

                11520
                  SW 88th Street

                Miami,
                  FL 33176

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                MP

              	
                AmeriSuites

                (Miami/Airport
                  West)

                3655
                  NW 82nd Avenue

                Miami,
                  FL 33166

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                TA

              	
                AmeriSuites

                (Tampa
                  Airport/Westshore)

                4811
                  West Main Street

                Tampa,
                  FL 33607-4501

              	
                EQI
                  Financing Partnership V, LP

              	
                EQI
                  Financing Partnership V, L.P.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                IA

              	
                AmeriSuites

                (Indianapolis/Keystone)

                9104
                  Keystone Crossing

                Indianapolis,
                  IN 46240

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                OP

              	
                AmeriSuites

                (Overland
                  Park/Metcalf)

                6801
                  West 112th Street

                Overland
                  Park, KS 66211

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                BR

              	
                AmeriSuites

                (Baton
                  Rouge/East)

                6080
                  Bluebonnet Boulevard

                Baton
                  Rouge, LA 70809

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                BM

              	
                AmeriSuites

                (Baltimore/BWI
                  Airport)

                940
                  International Drive

                Linthicum
                  Heights, MD 21090

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                ML

              	
                AmeriSuites

                (Minneapolis/Mall
                  of America)

                7800
                  International Drive

                Bloomington,
                  MN 55425-1508

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                LG

              	
                AmeriSuites

                (Las
                  Vegas/Paradise Road)

                4520
                  Paradise Road

                Las
                  Vegas, NV 89109-7111

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holdings, L.L.C.

              	
                June
                  30, 2008

              
	
                AQ

              	
                AmeriSuites

                (Albuquerque/Uptown)

                6901
                  Arvada North East

                Albuquerque,
                  NM 87110

              	
                EQI
                  Financing Partnership V, LP

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                CO

              	
                AmeriSuites

                (Cincinnati/Blue
                  Ash)

                11435
                  Road Hartman Highway

                Blue
                  Ash, OH 45241

              	
                Equity
                  Inns Partnership, LP

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                CS

              	
                AmeriSuites

                (Columbus/Worthington)

                7490
                  Vantage Drive

                Columbus,
                  OH 43235

              	
                EQI
                  Financing Partnership II, LP 

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                FO

              	
                AmeriSuites

                (Cincinnati/North)

                12001
                  Chase Plaza Drive

                Forest
                  Park, OH 45240

              	
                EQI
                  Financing Partnership V, LP 

              	
                ENN
                  Leasing Company V, L.L.C.

              	
                Oradell
                  Holding, L.L.C.

              	
                December
                  31, 2007

              
	
                FN

              	
                AmeriSuites

                (Nashville/Cool
                  Springs)

                650
                  Bakers Bridge Avenue

                Franklin,
                  TN 37067

              	
                Equity
                  Inns Partnership, LP 

              	
                ENN
                  Leasing Company, Inc.

              	
                Caldwell
                  Holding, L.L.C.

              	
                June
                  30, 2008

              
	
                 

                 

                 

                MT

              	
                 

                 

                 

                AmeriSuites

                (Memphis/Cordova)

                7905
                  Giacosa Place

                Memphis,
                  TN 38133

              	
                 

                 

                 

                EQI
                  Financing Partnership II, LP

              	
                 

                 

                 

                ENN
                  Leasing Company II, L.L.C.

              	
                 

                 

                 

                Wayne
                  Holding, L.L.C.

              	
                 

                 

                 

                June
                  30, 2008

              
	
                RO

              	
                AmeriSuites

                (Richmond/Innsbrook)

                4100
                  Cox Road

                Glen
                  Allen, VA 23060

              	
                EQI
                  Financing Partnership II, LP

              	
                ENN
                  Leasing Company II, L.L.C.

              	
                Wayne
                  Holding, L.L.C.

              	
                December
                  31, 2007

              

      

      

      

       

      

       

      SCHEDULE
        2

       

      Costs
        for Initial Development of Hotel

      (prior
        to December 31, 2006)

       

      

       

      SCHEDULE
        3

       

      Terms
        from Existing Agreement

       

      The
        following definitions shall apply with regard to the terms used in Section
        5.1(a)
        of this
        Agreement:

      

      1.
        “Excess
        Cash Flow”
shall
        mean, for any relevant period, Gross Operating Profit, less the cost of the
        insurance coverages described in Article 9 and rents under any operating
        leases.

      

      2.
        “Gross
        Operating Profit”
shall
        mean, for any relevant period, Gross Revenues less Operating
        Expenses.

      

      3.
        “Gross
        Revenue”
shall
        mean, for any relevant period, all revenues of the Hotel and all its uses
        of
        every nature and kind regardless of source, excluding Excluded Revenues.
        By way
        of illustration but not limitation, Gross Revenue will include:

      

      (a)
        the
        amount received as payment for the use and occupancy of all guest rental
        units;

      (b)
        the
        amount received as payment for the use and occupancy of all meeting rooms,
        banquet function rooms, and public areas;

      (c)
        all
        revenues derived from the sale of food and other edibles in restaurants,
        lounges, meeting rooms, banquets, guest rooms, and any other location at
        the
        Hotel;

      (d)
        all
        revenues derived from the sale of liquor, beverage, and other potables in
        restaurants, lounges, meeting rooms, banquets, guest rooms, and any other
        location at the Hotel;

      (e)
        all
        revenues derived from the use of telephone in guest rooms or in public
        areas;

      (f)
        all
        revenues derived from leases, subleases, concessions, vending, valet services,
        swimming pool memberships, banquet extras, movies or income of a similar
        or
        related nature; and

      (g)
        proceeds of business interruption insurance.

      

      4.
        “Excluded
        Revenues”
means
        (i) any gratuity or sales charges added to a customer’s bill, which are payable
        to Hotel employees, (ii) sales taxes, excise taxes, gross receipt taxes,
        admission taxes, entertainment taxes, tourist taxes or other similar taxes,
        (iii) proceeds from the sale or refinancing of the Hotel, (iv) abatement
        of
        taxes, (v) proceeds of insurance, except business interruption insurance
        and
        (vi) telecommunication leases and licenses.

      

      5.
        “Initial
        Cap”
shall
        mean, for any relevant period, an amount equal to six and one-half percent
        (6.5%) of Gross Receipts for such relevant period.

      

      6.
        “Minimum
        Return”
shall
        mean, for Fiscal Year 2001, an annual amount of $________, subject to adjustment
        each subsequent Fiscal Year by multiplying (a) the amount of the Minimum
        Return
        for the most recently ended Fiscal Year and (b) the number obtained by dividing
        the average CPI for the twelve (12) months ended on September 30 of the most
        recently completed Fiscal Year by the average CPI for the twelve (12) months
        ended on September 30 of the immediately preceding Fiscal Year. The amount
        of
        the Minimum Return shall be prorated for any partial Fiscal Year.

      

      7.
        “Threshold”
shall
        mean, until the end of Fiscal Year 2008, an annual amount equal to $_________.
        The amount of the Threshold shall be prorated for any partial Fiscal
        Year.

      

      

      

      
        
          
            Annex
              B
              - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ANNEX
        C

      FORM
        OF TERMINATION AGREEMENT

       

      This
        Termination Agreement (“Agreement”)
        is
        being entered as of this  day
        of __,
        200__ by
        and among _________,
        a ___________________ (“Owner”
or
        “Franchisee”)
        and
        ______________, a ___________________ (“Manager”)
        and
        AmeriSuites Franchising, Inc., a _____________ (“Franchisor”).

       

      Recitals

       

      A. Owner
        and
        Manager entered into that certain Management Agreement, dated
        _____________,
        as
        amended from time to time (collectively, the “AmeriSuites
        Management Agreement”),
        for
        the management and operation of that certain hotel known as AmeriSuites Hotel,
        located in ___________,
        ______________ (“Hotel”).

       

      B. Franchisee
        and Franchisor entered into that certain AmeriSuites Franchise Agreement
        dated
        __________________, as amended from time to time (collectively, the
“AmeriSuites
        Franchise Agreement”).

       

      C. Owner
        is
        an affiliate of Equity Inns, Inc. (“ENN”)
        and
        Manager and Franchisor are each affiliates of Select Hotels Group, L.L.C.
        (“Select”).

       

      D. ENN
        and
        Select entered into a Master Agreement (“Master
        Agreement”),
        pursuant to which the Hotel and other Affiliate Hotels (as defined in the
        Master
        Agreement) will undergo Conversion (as defined in the Master Agreement) to
        become “Hyatt Place Hotels.”

       

      E. Immediately
        after the execution of this Agreement, Owner and Manager are entering into
        a new
        management agreement with respect to the Hotel (the “Hyatt
        Place Management Agreement”)
        and
        Franchisor and Franchisee are entering into a new franchise agreement with
        respect to the Hotel (the “Hyatt
        Placement Franchise Agreement”).

       

      F. Owner
        and
        Manager both wish to provide for the termination of the AmeriSuites Management
        Agreement and the AmeriSuites Franchise Agreement as set forth in this
        Agreement.

       

      Agreement

       

      NOW,
        THEREFORE,
        the
        parties hereto do hereby agree as follows:

      1. Immediately
        prior to the effective time of the Hyatt Place Management Agreement and the
        Hyatt Place Franchise Agreement (the “Termination
        Time”),
        each
        of the AmeriSuites Management Agreement and the AmeriSuites Franchise Agreement
        shall terminate and be of no further force or effect, and Manager shall no
        longer have any rights to manage or operate any portion of the Hotel after
        the
        Termination Time.

       

      2. Owner
        shall be liable to Manager and Franchisor for all fees and reimbursements
        incurred under the AmeriSuites Management Agreement and the AmeriSuites
        Franchise Agreement, respectively, up to the Termination Time.

       

      3. Manager
        and Franchisor shall be liable to Owner for all monies due to Owner under
        the
        AmeriSuites Management Agreement and the AmeriSuites Franchise Agreement,
        respectively, up to the Termination Time.

       

      4. This
        Agreement shall terminate all rights and agreements of Owner, Manager and
        Franchisor under the AmeriSuites Management Agreement and the AmeriSuites
        Franchise Agreement.

       

      5. Owner,
        Manager and Franchisor acknowledge and agree that as of the Termination Time,
        all obligations accrued up to the Termination Time under the AmeriSuites
        Management Agreement and the AmeriSuites Franchise Agreement will have been
        satisfactorily fulfilled and performed and there will be no outstanding
        obligations thereunder, which will not have been performed or which will
        require
        additional performance, including without limitation, payment of Owner’s Return
        and Manager’s Return (as both terms are defined in the AmeriSuites Management
        Agreement).

       

      [Signature
        page follows.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto, have caused this instrument to be duly executed as of the
        date
        and year first above written.

       

      Owner:

       

      [Insert
        Name],

       

      a 

       

      By:  

      Name:  

      Title:  

       

      Manager:

       

      [Insert
        Name],

       

      a  

       

      By:  

      Name:  

      Title:  

       

      Franchisor:

       

      [Insert
        Name],

       

      a  

       

      By:  

      Name:  

      Title:  

       

      [Signature
        page to Termination Agreement]

       

      
        
          
            Annex
              C
              - 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ANNEX
        D

      

      FORM
        OF 

      SECOND
        AMENDMENT TO MANAGEMENT AGREEMENT

       

      THIS
        SECOND AMENDMENT TO MANAGEMENT AGREEMENT (“Amendment”)
        is
        being made effective the 3rd
        day of
        October, 2006 (the “Effective
        Date”),
        by
        and among ____________, (the “Owner”
or
        “Franchisee”),
        _____________, (the “Manager”)
        and
        AmeriSuites Franchising, Inc. (the “Franchisor”).

       

      RECITALS
        AND SUMMARY OF CHANGES:

       

      Owner
        and
        Manager are parties to that Management Agreement dated January 1, 2002, as
        amended by the First Amendment to Management Agreement dated May 14, 2003,
        between Owner and Manager (the “First
        Amendment”
and
        collectively, the “Management
        Agreement”),
        with
        respect to the management and operation of Owner’s AmeriSuites hotel located at
        ________, _________, _____ (the “Hotel”).
        Owner, Manager and Franchisor, together with certain other of their respective
        affiliates, are parties to a Master Agreement dated the date hereof (the
        “Master
        Agreement”)
        which
        provides for, among other things, the termination of the Management Agreement,
        as amended hereby, and the Existing Franchise Agreement (as defined in the
        Master Agreement) on the date of completion of conversion of the Hotel to
        a
        Hyatt Place hotel in accordance with the terms of the Master Agreement (the
        “Date
        of Conversion”),
        all
        as set forth in the Master Agreement. Capitalized terms used but not defined
        herein shall have the meanings set forth in the Master Agreement. The parties
        now wish to enter into this Amendment to evidence their agreement to amend
        certain provisions of the Management Agreement or in the Master Agreement,
        as
        the case may be, as set forth herein accordingly, which amendments among
        other
        things will provide the following:

       

      A. Effective
        as of the Effective Date, the calculation of Owner’s Return shall be subject to
        modification, as set forth herein.

       

      B. On
        _________, 200__ (the “Existing
        Guarantee Termination Date”),
        Manager’s obligation to make payment of Owner’s Return shall continue until the
        earlier of 150 days after the Existing Guarantee Termination Date or the
        Date of
        Conversion (the “New
        Guarantee Termination Date”).

       

      C. Effective
        as of the New Guarantee Termination Date, the Management Fees and Continuing
        Royalty Fees shall be subject to subordination as herein provided, unless
        the
        Management Agreement, as amended hereby, has been terminated in accordance
        with
        the terms of the Master Agreement.

       

      NOW,
        THEREFORE, in consideration of the foregoing, and other good and valuable
        consideration, the receipt and legal sufficiency of all of which is hereby
        acknowledged, the parties hereby agree to amend the Management Agreement
        as
        follows:

       

      1. Amendments.

       

      (a) Effective
        as of the Effective Date, Section 6.01 of the Management Agreement is
        hereby amended to add the following at the end of existing
        Section 6.01:

       

      Owner
        and
        Manager hereby agree that the Minimum Return for the 2006 Fiscal Year is
        $_________, subject to annual CPI adjustment as set forth herein. In addition,
        Minimum Return for any period shall be increased quarterly beginning July
        1,
        2006, by an amount determined by multiplying (A) Conversion Cost to date
        by
        (B) 9.5% and further multiplying the product thereof by the number of
        months elapsed in the Fiscal Year divided by 12.

       

      (b) Effective
        as of the Effective Date, paragraph 3. of the First Amendment shall be of
        no
        further force or effect.

       

      (c) Effective
        as of the New Guarantee Termination Date, Section 6.01 of the Management
        Agreement shall be deleted in its entirety and replaced with the
        following:

       

      6.01 Management
        Fees.
        For
        each Fiscal Year, Owner shall pay Management Fees to Manager as
        follows:

       

      (a) a
        basic
        fee (“Basic
        Fee”)
        equal
        to three percent (3%) of the Gross Receipts, provided however, if in any
        given
        Fiscal Year, there is a Deficiency, as calculated monthly on a cumulative
        Fiscal
        Year-to-Date basis, with Owner’s Priority being calculated on a monthly and
        Fiscal Year-to-Date basis by multiplying (A) Project Costs by (B) 9.5% and
        further multiplying the product thereof by the number of months elapsed in
        the
        Fiscal Year divided by 12, then the Management Fees shall be reduced by an
        amount equal to the full amount of the Deficiency, provided however, if the
        amount of the Fiscal Year-to-Date Deficiency exceeds the full amount of the
        Management Fees for the Fiscal Year-to-Date, Manager shall have no other
        obligations to Owner with respect to any remaining Deficiency, subject to
        the
        Franchisor complying with its obligations to subordinate its Continuing Royalty
        Fee in accordance with Section 6.04
        of this
        Amendment. The obligation of Manager to reduce or eliminate its Management
        Fees
        as to any Fiscal Year is limited to the full amount of the Deficiency for
        such
        Fiscal Year only, and Owner and Manager hereby agree that the Management
        Fees
        for any Fiscal Year shall not be reduced as a result of any Deficiency in
        any
        prior or subsequent Fiscal Year.

       

      (b) an
        Incentive Fee (“Incentive
        Fee”)
        equal
        to ten percent (10%) of the amount of Excess Adjusted NOI.

       

      Except
        for the Management Fees and the fees and reimbursements to Manager and its
        Affiliates referred to herein and in the Existing Franchise Agreement, Manager
        and its Affiliates shall not be entitled to any fees or other form of
        remuneration or compensation for any services provided to the Hotel. Other
        than
        as provided in this Section 6.01(b),
        there
        shall be no reduction in the Basic Fee or other liability to Manager for
        any
        deficit in Adjusted NOI for any Fiscal Year, nor shall any deficit in Adjusted
        NOI be carried back to any previous Fiscal Year or carried forward to any
        subsequent Fiscal Year.

       

      An
        example of the calculation and payment of Basic Fee, Incentive Fee and
        Continuing Royalty Fee and the reduction of fees is set forth on Exhibit
        A
        hereto,
        including for periods that are less than a full calendar year.

       

      (d) Effective
        as of the New Guarantee Termination Date, the Franchisor shall be added as
        a
        party to the Management Agreement and Article 6 of the Management Agreement
        shall be amended to include Section 6.04
        as
        follows:

       

      6.04 Franchise
        Fees.

       

      Notwithstanding
        anything to the contrary in this Agreement or the Existing Franchise Agreement,
        Franchisor, by execution hereof, agrees that (i) the Continuing Royalty Fee
        payable pursuant to Section 9.3 of the Existing Franchise Agreement shall
        be 4% of Franchisee’s prior month’s Gross Room Sales (as defined in the Existing
        Franchise Agreement) and (ii) until the 60 month anniversary of the Full
        Conversion Date, the Continuing Royalty Fee otherwise payable by Owner for
        any
        Fiscal Year shall be reduced, up to the full amount of any such Continuing
        Royalty Fee in the event of any Deficiency for such Fiscal Year, to the extent
        of the Deficiency remaining after reduction of the Basic Fee in accordance
        with
Section 6.01(a).
        The
        obligation of Franchisor to reduce or eliminate its Continuing Royalty Fee
        in
        any Fiscal Year is limited to the full amount of the Deficiency for such
        Fiscal
        Year only, and the Continuing Royalty Fee for any Fiscal Year shall not be
        reduced as a result of any Deficiency in any prior or subsequent Fiscal Year.
        Owner hereby agrees that, for any Fiscal Year, the combined obligation of
        Franchisor and Manager to reduce their respective fees as set forth in this
        Section 6.04
        and
Section 6.01
        shall
        not exceed the amount of the Deficiency for such Fiscal Year. In each Fiscal
        Year during which both the Continuing Royalty Fee and the Basic Fee are reduced
        due to a Deficiency, the Basic Fee
        shall
        be reduced in full before the Continuing Royalty Fee is reduced to cover
        any
        remaining amount of the Deficiency. To the extent Franchisor has received
        any
        such Continuing Royalty Fee it will remit such fees to Owner as determined
        herein.

       

      An
        example of the calculation and payment of Basic Fee, Incentive Fee and
        Continuing Royalty Fee and the reduction of fees is set forth on Exhibit
        A
        hereto,
        including for periods that are less than a full calendar year.

       

      (e) Effective
        as of the Effective Date, the following Article 18 is hereby added to the
        Management Agreement:

       

      18. ASSIGNMENT.

       

      18.1 Assignment
        by Manager.

       

      (a) Except
        as
        herein provided, Manager shall not sell, assign, hypothecate, transfer or
        otherwise dispose of, in whole or in part, any of its rights or interests
        hereunder. Notwithstanding the foregoing, Manager may transfer or assign
        its
        rights under this Agreement in whole, but not in part, to any Affiliate of
        Manager, whether as a result of a merger, reorganization, acquisition or
“change
        in control,” subject, in each such case, to each of the following terms and
        conditions:

       

      (1) The
        transferee shall, no later than the effective date of the transfer, be an
        Affiliate of Hyatt Corporation;

       

      (2) The
        transferee shall have the full right, power and authority to enter into this
        Agreement and to fulfill the obligations of Manager hereunder;

       

      (3) Not
        later
        than the effective date of any such transfer, the transferee shall have
        available to it the entire operating system of Manager for the use and benefit
        of the transferee and the management and operation of the Hotel as part of
        AmeriSuites Hotels, including, without limitation, the benefit of services
        that
        are designed to approximate the services available to the Hotel prior to
        any
        such transfer; and

       

      (4) The
        transferee shall have executed a written instrument in form and substance
        reasonably satisfactory to Owner, a certified copy of which shall be delivered
        to Owner not later than twenty (20) days following the effective date of
        any
        such transfer, expressly assuming and agreeing to pay, perform and discharge
        all
        of the liabilities and obligations of Manager hereunder, including, without
        limitation, any such liabilities or obligations arising or accruing prior
        to, on
        or after the effective date of any such transfer.

       

      (b) Upon
        satisfaction and discharge of all conditions set forth in Section 18.1(a),
        Manager
        shall be relieved of any liability or obligation hereunder arising after
        the
        date of such assignment.

       

      (c) Except
        as
        otherwise provided in this Section 18.1,
        upon
        any other assignment or transfer by Manager of its rights or interests in
        this
        Agreement, Owner shall have the option, exercisable from the time of such
        transfer or assignment and for 60 days following notice to Owner of such
        transfer or assignment, to terminate this Agreement without liability or
        payment
        to Manager.

       

      18.2 Assignment
        by Owner.

       

      (a) In
        addition to any permitted collateral assignments to Lenders, Owner shall
        have
        the right to assign its entire rights and interests in this Agreement without
        the prior written consent of Manager to (i) any Person Affiliated with
        Owner, (ii) any Person in connection with a sale or transfer of the Hotel
        (including, without limitation, any lease of the Hotel in its entirety),
        so long
        as in the case of (ii), all conditions set forth in this Section 18.2
        shall
        have been met and satisfied and such assignee shall have applied for and
        qualified for the assumption of the Existing Franchise Agreement or entered
        into
        a then-current AmeriSuites franchise agreement for the duration of the Term
        (as
        defined in the Management Agreement), prior to the effective date of any
        such
        assignment. Unless otherwise agreed to by Manager, Owner shall not sell,
        assign
        or transfer the Hotel, or any interest therein or issue or permit the transfer
        of any Ownership Interest to any Person (i) engaged, directly or
        indirectly, as a substantial part of its business, in franchise licensing
        of
        hotels and not Affiliated with Owner; (ii) who fails or refuses to assume
        Owner’s responsibilities under this Agreement; (iii) who would otherwise
        not qualify as a franchisee under the terms of the Existing Franchise Agreement
        or (iv) who does not wish to apply for and enter into a then-current AmeriSuites
        franchise agreement for the Hotel. Upon any assignment hereof in connection
        with
        a sale or other transfer of the Hotel, Owner shall be relieved of its duties,
        obligations and liabilities hereunder arising after such assignment so long
        as
        all conditions set forth in this Section 18.2(a)
        have
        been met and the assignee thereof expressly assumes in writing all such duties,
        obligations and liabilities (including, without limitation, those arising
        or
        relating to events occurring prior to any such assignment) and shall agree
        to be
        bound by this Agreement as evidenced by a written instrument executed by
        such
        assignee in favor of Manager in form and substance reasonably satisfactory
        to
        Manager. If Owner desires to effect an assignment of a majority of its Ownership
        Interest, Owner shall give Manager not less than forty-five (45) days advance
        notice of its intention to do so, which notice shall identify in reasonable
        detail the direct and indirect owners of the proposed purchaser. In the event
        that the sale or transfer contemplated in this subsection (a)
        is to a
        Person not Affiliated with Owner or involves the transfer of a majority
        Ownership Interest in Owner, then the assignment of this Agreement shall
        specifically exclude Manager’s and Franchisor’s obligations set forth in
Section 6.01
        and
6.04
        hereof.
        Any such assignment further shall provide that that the Basic Fee is three
        percent (3%) of the Gross Receipts as of the effective date of the assignment
        of
        this Agreement. Notwithstanding the foregoing, if (i) Owner transfers 50%
        or more of the Ownership Interest to a Person Affiliated With Owner,
        (ii) Owner transfers fifty percent (50%) or more of the Affiliate Hotels
        (including the Hotel in a single transaction or series of related transactions
        with the same buyer or Persons Affiliated with that buyer, and provided such
        Affiliate Hotels are being operated as AmeriSuites Hotels) or (iii) there
        is a transaction or event which constitutes a “change in control” of Equity
        Inns, Inc., then this Agreement and specifically including Section 6.01
        and
6.04
        hereof
        (along with the applicable Existing Management Agreements) shall be assignable
        without any modifications or exclusions so long as the transferees comply
        with
        the provisions of this Section 18.2.

       

      (b) Notwithstanding
        the foregoing, in no event shall Owner subject the Hotel, or any part or
        interest therein, to a strata or condominium ownership regime, or permit
        the
        same to be so subjected, without the written consent of Manager, which consent
        shall be in Manager’s sole discretion.

       

      (c) In
        the
        event of an assignment of any Ground Lease relating to the Hotel, whether
        to or
        from an Affiliate of the then Owner or Ownership Participant or otherwise,
        (i) if the lessee shall become the “Owner” hereunder, such Person shall
        assume all of the liabilities and obligations of Owner herein set forth;
        and
        (ii) if the lessee is an Affiliate of Owner, the lessor shall not be
        relieved of any of the liabilities or obligations of Owner
        hereunder.

       

      (d) Notwithstanding
        anything herein to the contrary, the provisions of this Section 18
        shall be
        binding upon any transferee or subsequent transferee.

       

      (f) Effective
        as of the Effective Date, Article 14 of the Management Agreement is hereby
        amended by inserting into the appropriate alphabetical locations, the following
        definitions:

       

      “Conversion”
shall
        mean all construction, renovation, installation and work to be performed
        at the
        Hotel, both in the guest rooms and in the public areas and the equipping
        of the
        Hotel and purchase and stocking of the Operating Equipment, operating supplies
        and inventory items meeting the Systems Standards and all other requirements
        of
        the Affiliate Franchise Agreement for purposes of the Hotel being converted
        to a
        Hyatt Place Hotel as set forth in the Master Agreement.

       

      “Conversion
        Cost”
shall
        mean all amounts expended by Owner for the Conversion of the Hotel, including
        without limitation, all rebranding, construction and related costs as set
        forth
        in the scope of work attached to the Master Agreement, all FFE, all Operating
        Equipment and related costs required to be capitalized in accordance with
        GAAP,
        all operating systems and the cost associated with the personnel hired for
        the
        installation of the same, all fees and reimbursements for the Pre-Opening
        Services provided by contractors and vendors (recommended by Manager) and
        Manager and its Affiliates.

       

      “Fiscal
        Year”
shall
        mean the calendar year except that the first Fiscal Year hereunder shall
        commence on the Effective Date and end on December 31 of the same calendar
        year
        as the Effective Date, and the last Fiscal Year hereunder shall commence
        on
        January 1 of the calendar year in which the last day of the Term occurs or
        the
        earlier termination of this Agreement occurs and end on the date of the last
        day
        of the Term or the date of earlier termination of this Agreement.

       

      “Operating
        Equipment”
shall
        mean linens, china, glassware, silverware, uniforms and the like, excluding
        FFE.

       

      “Pre-Opening
        Services”
        shall
        mean the (i) services provided by the project manager recommended by Select
        to assist in and to oversee the Conversion and to coordinate with the vendors
        providing the FFE and Operating Equipment and operating supplies and inventory
        items and (ii) any other service provided by Select or its Affiliates to
        prepare and convert the Hotel as a Hyatt Place Hotel, not otherwise covered
        under the Franchise Agreement, including without limitation, recommendations
        of
        vendors and contractors to owner, assistance and review of the budget for
        the
        Conversion and approval of contractors and vendors hired by Owner.

       

      (g) Effective
        as of the New Guarantee Termination Date, Article 14 of the Management Agreement
        is hereby amended by inserting into the appropriate alphabetical locations,
        the
        following definitions:

       

      “Adjusted
        NOI”
shall
        mean, for any relevant period, Income After Undistributed Operating Expenses
        less deductions for the following amounts incurred for and allocable to such
        relevant period (but only to the extent that such amounts are not otherwise
        deducted in computing Income After Undistributed Operating
        Expenses):

       

      (a) An
        amount
        equal to Maintenance Cap Ex Reserve of 4% of Gross Receipts for such
        period;

       

      (b) The
        cost
        of all insurance maintained by Owner and Manager in accordance with the
        provisions of this Agreement, together with the cost of property insurance
        and
        terrorism insurance (if any) maintained by Owner with respect to the
        Hotel;

       

      (c) All
        real
        and personal property taxes (less refunds, offsets or credits thereof, and
        interest thereon, if any, received during the period in question);

       

      (d) The
        Basic
        Fee and all fees payable under the Existing Franchise Agreement;

       

      (e) Lease
        payments; and

       

      (f) All
        other
        amounts deductible in respect of such period under the express terms of this
        Agreement.

       

      To
        the
        extent the Hotel is part of a mixed-use project (which, for this purpose,
        shall
        mean any project that includes, in addition to the Hotel, any facilities
        not
        subject to management or operation by Manager hereunder), a portion of common
        costs relating both to the Hotel and to the non-Hotel portions of the project,
        such as, for example, but not by way of limitation, real estate taxes,
        insurance, common area landscaping, site maintenance, trash removal,
        extermination and other such costs intended for the benefit both of the Hotel
        and the non-Hotel portions of the development, shall be allocated in a fair
        and
        reasonable manner so that the Hotel shall bear only its fair and reasonable
        portion of such common expenses.

       

      “Basic
        Fee”
shall
        have the meaning set forth in Section 6.01
        hereof.

       

      “Deficiency”
shall
        mean, for any relevant period, the amount by which Adjusted NOI is less than
        Owner’s Priority for such relevant period.

       

      “Excess
        Adjusted NOI”
shall
        mean the amount by which Adjusted NOI exceeds Owner’s Priority.

       

      “Incentive
        Fee”
shall
        have the meaning set forth in Section 6.01
        hereof.

       

      “Gross
        Receipts”
for
        any
        period shall mean all revenues and income of any kind derived, directly or
        indirectly, from the operation of the Hotel during such period, including
        all
        revenues derived from the sale during such period of rooms, food and beverages,
        telephone revenue, revenue derived from any other revenue source and rents
        or
        fees payable by tenants or concessionaires for such period (but not the gross
        receipts of such sub-tenants or concessionaires). Without limiting the
        generality of the foregoing, it is the intention of the parties that the
        term
“Gross
        Receipts”
shall
        mean all amounts properly accounted for as Revenue or Total Revenue or Total
        Operated Departments in accordance with, and as defined in, the Uniform System.
        Notwithstanding the foregoing, there shall be excluded in determining Gross
        Receipts for any period the sum of (i) any sales, excise or occupancy taxes
        actually collected during such period in accordance with Legal Requirements
        from
        guests or patrons of the Hotel and either remitted, or required to be remitted,
        to appropriate taxing authorities; (ii) amounts collected from guests or
        patrons of the Hotel on behalf of Hotel tenants and other third parties;
        (iii) interest earned on funds held in Operating Accounts (if any); and
        (iv) insurance proceeds, condemnation proceeds, financing or refinancing
        proceeds and the proceeds of sale of any real or personal property comprising
        part of the Hotel (as distinguished from the sale of merchandise, food and
        beverage and other consumer goods or services). Gross Receipts shall in all
        events include only amounts actually paid or payable to the Hotel (in cash
        or
        services), and shall not include, except as otherwise herein expressly provided,
        (i) the value of any Hotel goods or services in excess of actual amounts
        paid (in cash or services) provided by the Hotel on a complimentary or
        discounted basis, (ii) gratuities or service charges collected for payment
        to Hotel employees and (iii) credits or refunds to Hotel
        guests.

       

      “Income
        After Undistributed Operating Expenses”
shall
        mean such amount as is calculated in the ninth edition of the Uniform System,
        without regard to any revisions or future editions thereof.

       

      “Owner’s
        Priority”
        shall
        mean an amount equal to nine and one-half percent (9.5%) of the Project
        Costs.

       

      “Project
        Costs”
        shall
        mean the sum of (a) the actual gross (i.e., undepreciated) costs of the Hotel
        incurred and paid or accrued on or before December 31, 2006 by Owner, to
        the
        extent required to be capitalized under GAAP and (b) the Conversion Cost;
        LESS
        the amount equal to four percent (4%) of the Gross Receipts for twelve (12)
        months of the Fiscal Year during which the majority of the Conversion occurs
        (anticipated to be 2007).

       

      2. Conforming
        Amendments.
        The
        terms of this Amendment shall control if there is any conflict between any
        term
        of this Amendment and any term of the Management Agreement. Each term of
        the
        Management Agreement hereby is amended as required to conform to the terms
        of
        this Amendment, whether or not such term of the Management Agreement is
        identified or expressly amended in this Amendment.

       

      3. Execution.
        This
        Amendment may be executed by the parties in counterparts, each of which shall
        be
        deemed an original.

       

      4. No
        Further Amendments.
        Other
        than with respect to those amendments set forth herein, including the conforming
        amendments under paragraph 2, above, the Management Agreement shall remain
        in
        full force and effect and is hereby ratified and confirmed by the
        parties.

       

      [Signature
        page follows.]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties executed this Amendment to be mad effective on the Effective
        Date.

       

      OWNER:

       

      [__________________]

       

      By: 

       

      Name: 

       

      Title: 

       

      MANAGER:

       

      [______________________]

       

      By: 

       

      Name: 

       

      Title: 

       

      FRANCHISOR:

       

      AMERISUITES
        FRANCHISING, INC.

       

      By: 

       

      Name: 

       

      Title: 

       

      

       

      [Signature
        page to Second Amendment to Management Agreement]

       

      Exhibit
        A

       

      EXAMPLE
        COMPUTATION OF MANAGEMENT FEES/FRANCHISE FEES

      (amounts
        are for demonstration purposes only)

       

      

      
        	 	
                YTD

                3/31/08

              	
                YTD

                8/31/08

              	
                YTD

                12/31/08

              
	
                 

                Project
                  Costs

              	
                 

                $10,000,000

              	
                 

                $10,000,000

              	
                 

                $10,000,000

              
	
                 

                Minimum
                  % Return Owner’s Priority

              	
                 

                9.50%

                 

                $950,000

              	
                 

                9.50%

                 

                $950,000

              	
                 

                9.50%

                 

                $950,000

              
	
                 

                Cumulative
                  YTD Owner’s Priority (1)

              	
                 

                A
                  $237,500

              	
                 

                $633,333

              	
                 

                $950,000

              
	
                 

                Total
                  Hotel Revenue (i.e. Gross Receipts)

              	
                 

                $650,000

              	
                 

                $1,700,000

              	
                 

                $2,400,000

              
	
                 

                Adjusted
                  NOI, before Continuing Royalty Fee & Basic Fee

              	
                 

                B
                  $266,500

              	
                 

                $799,000

              	
                 

                $1,080,000

              
	
                 

                Adjusted
                  NOI above Owner’s Priority (2)

              	
                 

                B-A
                  $29,000

              	
                 

                $165,667

              	
                 

                $130,000

              
	
                 

                Continuing
                  Royalty Fee Earned (Max of 4%)

              	
                 

                C
                  $26,000

                4.0%

              	
                 

                $68,000

                4.0%

                 

              	
                 

                $96,000

                4.0%

              
	
                 

                Basic
                  Fee Earned

                (Max
                  of 3%)

              	
                 

                D
                  $3,000

                0.5%

              	
                 

                $51,000

                3.0%

              	
                 

                $34,000

                1.4%

              
	
                 

                Adjusted
                  NOI

              	
                 

                B-C-D=E

                $237,500

              	
                 

                $680,000

              	
                 

                $950,000

              
	
                 

                Excess
                  Adjusted NOI

              	
                 

                E-A
                  $0

              	
                 

                $46,667

              	
                 

                $0

              
	
                 

                Incentive
                  Fee Earned (10% of Excess Adjusted NOI)

              	
                 

                None

              	
                 

                $4,667

                0.3%

              	
                 

                None

              

      

      

      (1)
        Calculated based on actual months divided by 12.

      (2)
        Before Continuing Royalty Fee and Basic Fee.

      
        48066.000199
          RICHMOND 1846975v2Second Amendment to Management Agreement October 3, 2006

    
      

      

    

     

    
 

    Exhibit
      10.2

    

    FORM
      OF 

    SECOND
      AMENDMENT TO MANAGEMENT AGREEMENT

    

    THIS
      SECOND AMENDMENT TO MANAGEMENT AGREEMENT (“Amendment”)
      is
      being made effective the 3rd
      day of
      October, 2006 (the “Effective
      Date”),
      by
      and among ____________, (the “Owner”
or
      “Franchisee”),
      _____________, (the “Manager”)
      and
      AmeriSuites Franchising, Inc. (the “Franchisor”).

     

    RECITALS
      AND SUMMARY OF CHANGES:

     

    Owner
      and
      Manager are parties to that Management Agreement dated January 1, 2002, as
      amended by the First Amendment to Management Agreement dated May 14, 2003,
      between Owner and Manager (the “First
      Amendment”
and
      collectively, the “Management
      Agreement”),
      with
      respect to the management and operation of Owner’s AmeriSuites hotel located at
      ________, _________, _____ (the “Hotel”).
      Owner, Manager and Franchisor, together with certain other of their respective
      affiliates, are parties to a Master Agreement dated the date hereof (the
“Master
      Agreement”)
      which
      provides for, among other things, the termination of the Management Agreement,
      as amended hereby, and the Existing Franchise Agreement (as defined in the
      Master Agreement) on the date of completion of conversion of the Hotel to a
      Hyatt Place hotel in accordance with the terms of the Master Agreement (the
      “Date
      of Conversion”),
      all
      as set forth in the Master Agreement. Capitalized terms used but not defined
      herein shall have the meanings set forth in the Master Agreement. The parties
      now wish to enter into this Amendment to evidence their agreement to amend
      certain provisions of the Management Agreement or in the Master Agreement,
      as
      the case may be, as set forth herein accordingly, which amendments among other
      things will provide the following:

     

    A.  Effective
      as of the Effective Date, the calculation of Owner’s Return shall be subject to
      modification, as set forth herein.

     

    B.  On
      _________, 200__ (the “Existing
      Guarantee Termination Date”),
      Manager’s obligation to make payment of Owner’s Return shall continue until the
      earlier of 150 days after the Existing Guarantee Termination Date or the Date
      of
      Conversion (the “New
      Guarantee Termination Date”).

     

    C.  Effective
      as of the New Guarantee Termination Date, the Management Fees and Continuing
      Royalty Fees shall be subject to subordination as herein provided, unless the
      Management Agreement, as amended hereby, has been terminated in accordance
      with
      the terms of the Master Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing, and other good and valuable
      consideration, the receipt and legal sufficiency of all of which is hereby
      acknowledged, the parties hereby agree to amend the Management Agreement as
      follows:

     

    1.  Amendments.
      

     

    (a)  Effective
      as of the Effective Date, Section 6.01 of the Management Agreement is
      hereby amended to add the following at the end of existing
      Section 6.01:

     

    Owner
      and
      Manager hereby agree that the Minimum Return for the 2006 Fiscal Year is
      $___________, subject to annual CPI adjustment as set forth herein. In addition,
      Minimum Return for any period shall be increased quarterly beginning July 1,
      2006, by an amount determined by multiplying (A) Conversion Cost to date by
      (B) 9.5% and further multiplying the product thereof by the number of
      months elapsed in the Fiscal Year divided by 12.

     

    (b)  Effective
      as of the Effective Date, paragraph 3. of the First Amendment shall be of no
      further force or effect.

     

    (c)  Effective
      as of the New Guarantee Termination Date, Section 6.01 of the Management
      Agreement shall be deleted in its entirety and replaced with the
      following:

     

    6.01 Management
      Fees.
      For each
      Fiscal Year, Owner shall pay Management Fees to Manager as follows:

     

    (a)  a
      basic
      fee (“Basic
      Fee”)
      equal
      to three percent (3%) of the Gross Receipts, provided however, if in any given
      Fiscal Year, there is a Deficiency, as calculated monthly on a cumulative Fiscal
      Year-to-Date basis, with Owner’s Priority being calculated on a monthly and
      Fiscal Year-to-Date basis by multiplying (A) Project Costs by (B) 9.5% and
      further multiplying the product thereof by the number of months elapsed in
      the
      Fiscal Year divided by 12, then the Management Fees shall be reduced by an
      amount equal to the full amount of the Deficiency, provided however, if the
      amount of the Fiscal Year-to-Date Deficiency exceeds the full amount of the
      Management Fees for the Fiscal Year-to-Date, Manager shall have no other
      obligations to Owner with respect to any remaining Deficiency, subject to the
      Franchisor complying with its obligations to subordinate its Continuing Royalty
      Fee in accordance with Section 6.04
      of this
      Amendment. The obligation of Manager to reduce or eliminate its Management
      Fees
      as to any Fiscal Year is limited to the full amount of the Deficiency for such
      Fiscal Year only, and Owner and Manager hereby agree that the Management Fees
      for any Fiscal Year shall not be reduced as a result of any Deficiency in any
      prior or subsequent Fiscal Year.

     

    (b)  an
      Incentive Fee (“Incentive
      Fee”)
      equal
      to ten percent (10%) of the amount of Excess Adjusted NOI.

     

    Except
      for the Management Fees and the fees and reimbursements to Manager and its
      Affiliates referred to herein and in the Existing Franchise Agreement, Manager
      and its Affiliates shall not be entitled to any fees or other form of
      remuneration or compensation for any services provided to the Hotel. Other
      than
      as provided in this Section 6.01(b),
      there
      shall be no reduction in the Basic Fee or other liability to Manager for any
      deficit in Adjusted NOI for any Fiscal Year, nor shall any deficit in Adjusted
      NOI be carried back to any previous Fiscal Year or carried forward to any
      subsequent Fiscal Year. 

     

    An
      example of the calculation and payment of Basic Fee, Incentive Fee and
      Continuing Royalty Fee and the reduction of fees is set forth on Exhibit
      A
      hereto,
      including for periods that are less than a full calendar year.

     

    (d)  Effective
      as of the New Guarantee Termination Date, the Franchisor shall be added as
      a
      party to the Management Agreement and Article 6 of the Management Agreement
      shall be amended to include Section 6.04
      as
      follows:

     

    6.04 Franchise
      Fees.

     

    Notwithstanding
      anything to the contrary in this Agreement or the Existing Franchise Agreement,
      Franchisor, by execution hereof, agrees that (i) the Continuing Royalty Fee
      payable pursuant to Section 9.3 of the Existing Franchise Agreement shall
      be 4% of Franchisee’s prior month’s Gross Room Sales (as defined in the Existing
      Franchise Agreement) and (ii) until the 60 month anniversary of the Full
      Conversion Date, the Continuing Royalty Fee otherwise payable by Owner for
      any
      Fiscal Year shall be reduced, up to the full amount of any such Continuing
      Royalty Fee in the event of any Deficiency for such Fiscal Year, to the extent
      of the Deficiency remaining after reduction of the Basic Fee in accordance
      with
Section 6.01(a).
      The
      obligation of Franchisor to reduce or eliminate its Continuing Royalty Fee
      in
      any Fiscal Year is limited to the full amount of the Deficiency for such Fiscal
      Year only, and the Continuing Royalty Fee for any Fiscal Year shall not be
      reduced as a result of any Deficiency in any prior or subsequent Fiscal Year.
      Owner hereby agrees that, for any Fiscal Year, the combined obligation of
      Franchisor and Manager to reduce their respective fees as set forth in this
      Section 6.04
      and
Section 6.01
      shall
      not exceed the amount of the Deficiency for such Fiscal Year. In each Fiscal
      Year during which both the Continuing Royalty Fee and the Basic Fee are reduced
      due to a Deficiency, the Basic Fee
      shall
      be reduced in full before the Continuing Royalty Fee is reduced to cover any
      remaining amount of the Deficiency. To the extent Franchisor has received any
      such Continuing Royalty Fee it will remit such fees to Owner as determined
      herein. 

     

    An
      example of the calculation and payment of Basic Fee, Incentive Fee and
      Continuing Royalty Fee and the reduction of fees is set forth on Exhibit
      A
      hereto,
      including for periods that are less than a full calendar year.

     

    (e)  Effective
      as of the Effective Date, the following Article 18 is hereby added to the
      Management Agreement:

     

    18. ASSIGNMENT.

    

    18.1 Assignment
      by Manager.
      

     

    (a)  Except
      as
      herein provided, Manager shall not sell, assign, hypothecate, transfer or
      otherwise dispose of, in whole or in part, any of its rights or interests
      hereunder. Notwithstanding the foregoing, Manager may transfer or assign its
      rights under this Agreement in whole, but not in part, to any Affiliate of
      Manager, whether as a result of a merger, reorganization, acquisition or “change
      in control,” subject, in each such case, to each of the following terms and
      conditions:

     

    (1)  The
      transferee shall, no later than the effective date of the transfer, be an
      Affiliate of Hyatt Corporation;

     

    (2)  The
      transferee shall have the full right, power and authority to enter into this
      Agreement and to fulfill the obligations of Manager hereunder;

     

    (3)  Not
      later
      than the effective date of any such transfer, the transferee shall have
      available to it the entire operating system of Manager for the use and benefit
      of the transferee and the management and operation of the Hotel as part of
      AmeriSuites Hotels, including, without limitation, the benefit of services
      that
      are designed to approximate the services available to the Hotel prior to any
      such transfer; and

     

    (4)  The
      transferee shall have executed a written instrument in form and substance
      reasonably satisfactory to Owner, a certified copy of which shall be delivered
      to Owner not later than twenty (20) days following the effective date of any
      such transfer, expressly assuming and agreeing to pay, perform and discharge
      all
      of the liabilities and obligations of Manager hereunder, including, without
      limitation, any such liabilities or obligations arising or accruing prior to,
      on
      or after the effective date of any such transfer.

     

    (b)  Upon
      satisfaction and discharge of all conditions set forth in Section 18.1(a),
      Manager
      shall be relieved of any liability or obligation hereunder arising after the
      date of such assignment.

     

    (c)  Except
      as
      otherwise provided in this Section 18.1,
      upon
      any other assignment or transfer by Manager of its rights or interests in this
      Agreement, Owner shall have the option, exercisable from the time of such
      transfer or assignment and for 60 days following notice to Owner of such
      transfer or assignment, to terminate this Agreement without liability or payment
      to Manager. 

     

    18.2 Assignment
      by Owner. 

     

    (a)  In
      addition to any permitted collateral assignments to Lenders, Owner shall have
      the right to assign its entire rights and interests in this Agreement without
      the prior written consent of Manager to (i) any Person Affiliated with
      Owner, (ii) any Person in connection with a sale or transfer of the Hotel
      (including, without limitation, any lease of the Hotel in its entirety), so
      long
      as in the case of (ii), all conditions set forth in this Section 18.2
      shall
      have been met and satisfied and such assignee shall have applied for and
      qualified for the assumption of the Existing Franchise Agreement or entered
      into
      a then-current AmeriSuites franchise agreement for the duration of the Term
      (as
      defined in the Management Agreement), prior to the effective date of any such
      assignment. Unless otherwise agreed to by Manager, Owner shall not sell, assign
      or transfer the Hotel, or any interest therein or issue or permit the transfer
      of any Ownership Interest to any Person (i) engaged, directly or
      indirectly, as a substantial part of its business, in franchise licensing of
      hotels and not Affiliated with Owner; (ii) who fails or refuses to assume
      Owner’s responsibilities under this Agreement; (iii) who would otherwise
      not qualify as a franchisee under the terms of the Existing Franchise Agreement
      or (iv) who does not wish to apply for and enter into a then-current AmeriSuites
      franchise agreement for the Hotel. Upon any assignment hereof in connection
      with
      a sale or other transfer of the Hotel, Owner shall be relieved of its duties,
      obligations and liabilities hereunder arising after such assignment so long
      as
      all conditions set forth in this Section 18.2(a)
      have
      been met and the assignee thereof expressly assumes in writing all such duties,
      obligations and liabilities (including, without limitation, those arising or
      relating to events occurring prior to any such assignment) and shall agree
      to be
      bound by this Agreement as evidenced by a written instrument executed by such
      assignee in favor of Manager in form and substance reasonably satisfactory
      to
      Manager. If Owner desires to effect an assignment of a majority of its Ownership
      Interest, Owner shall give Manager not less than forty-five (45) days advance
      notice of its intention to do so, which notice shall identify in reasonable
      detail the direct and indirect owners of the proposed purchaser. In the event
      that the sale or transfer contemplated in this subsection (a)
      is to a
      Person not Affiliated with Owner or involves the transfer of a majority
      Ownership Interest in Owner, then the assignment of this Agreement shall
      specifically exclude Manager’s and Franchisor’s obligations set forth in
Section 6.01
      and
6.04
      hereof.
      Any such assignment further shall provide that that the Basic Fee is three
      percent (3%) of the Gross Receipts as of the effective date of the assignment
      of
      this Agreement. Notwithstanding the foregoing, if (i) Owner transfers 50%
      or more of the Ownership Interest to a Person Affiliated With Owner,
      (ii) Owner transfers fifty percent (50%) or more of the Affiliate Hotels
      (including the Hotel in a single transaction or series of related transactions
      with the same buyer or Persons Affiliated with that buyer, and provided such
      Affiliate Hotels are being operated as AmeriSuites Hotels) or (iii) there
      is a transaction or event which constitutes a “change in control” of Equity
      Inns, Inc., then this Agreement and specifically including Section 6.01
      and
6.04
      hereof
      (along with the applicable Existing Management Agreements) shall be assignable
      without any modifications or exclusions so long as the transferees comply with
      the provisions of this Section 18.2.

     

    (b)  Notwithstanding
      the foregoing, in no event shall Owner subject the Hotel, or any part or
      interest therein, to a strata or condominium ownership regime, or permit the
      same to be so subjected, without the written consent of Manager, which consent
      shall be in Manager’s sole discretion.

     

    (c)  In
      the
      event of an assignment of any Ground Lease relating to the Hotel, whether to
      or
      from an Affiliate of the then Owner or Ownership Participant or otherwise,
      (i) if the lessee shall become the “Owner” hereunder, such Person shall
      assume all of the liabilities and obligations of Owner herein set forth; and
      (ii) if the lessee is an Affiliate of Owner, the lessor shall not be
      relieved of any of the liabilities or obligations of Owner
      hereunder.

     

    (d)  Notwithstanding
      anything herein to the contrary, the provisions of this Section 18
      shall be
      binding upon any transferee or subsequent transferee.

     

    (f)  Effective
      as of the Effective Date, Article 14 of the Management Agreement is hereby
      amended by inserting into the appropriate alphabetical locations, the following
      definitions:

     

    “Conversion”
      shall
      mean all construction, renovation, installation and work to be performed at
      the
      Hotel, both in the guest rooms and in the public areas and the equipping of
      the
      Hotel and purchase and stocking of the Operating Equipment, operating supplies
      and inventory items meeting the Systems Standards and all other requirements
      of
      the Affiliate Franchise Agreement for purposes of the Hotel being converted
      to a
      Hyatt Place Hotel as set forth in the Master Agreement.

     

    “Conversion
      Cost”
      shall
      mean all amounts expended by Owner for the Conversion of the Hotel, including
      without limitation, all rebranding, construction and related costs as set forth
      in the scope of work attached to the Master Agreement, all FFE, all Operating
      Equipment and related costs required to be capitalized in accordance with GAAP,
      all operating systems and the cost associated with the personnel hired for
      the
      installation of the same, all fees and reimbursements for the Pre-Opening
      Services provided by contractors and vendors (recommended by Manager) and
      Manager and its Affiliates.

     

    “Fiscal
      Year”
      shall
      mean the calendar year except that the first Fiscal Year hereunder shall
      commence on the Effective Date and end on December 31 of the same calendar
      year
      as the Effective Date, and the last Fiscal Year hereunder shall commence on
      January 1 of the calendar year in which the last day of the Term occurs or
      the
      earlier termination of this Agreement occurs and end on the date of the last
      day
      of the Term or the date of earlier termination of this Agreement.

     

    “Operating
      Equipment”
      shall
      mean linens, china, glassware, silverware, uniforms and the like, excluding
      FFE.

    

    “Pre-Opening
      Services”
      shall
      mean the (i) services provided by the project manager recommended by Select
      to assist in and to oversee the Conversion and to coordinate with the vendors
      providing the FFE and Operating Equipment and operating supplies and inventory
      items and (ii) any other service provided by Select or its Affiliates to
      prepare and convert the Hotel as a Hyatt Place Hotel, not otherwise covered
      under the Franchise Agreement, including without limitation, recommendations
      of
      vendors and contractors to owner, assistance and review of the budget for the
      Conversion and approval of contractors and vendors hired by Owner. 

     

    (g)  Effective
      as of the New Guarantee Termination Date, Article 14 of the Management Agreement
      is hereby amended by inserting into the appropriate alphabetical locations,
      the
      following definitions:

     

    “Adjusted
      NOI”
      shall
      mean, for any relevant period, Income After Undistributed Operating Expenses
      less deductions for the following amounts incurred for and allocable to such
      relevant period (but only to the extent that such amounts are not otherwise
      deducted in computing Income After Undistributed Operating
      Expenses):

     

    (a) An
      amount
      equal to Maintenance Cap Ex Reserve of 4% of Gross Receipts for such
      period;

     

    (b) The
      cost
      of all insurance maintained by Owner and Manager in accordance with the
      provisions of this Agreement, together with the cost of property insurance
      and
      terrorism insurance (if any) maintained by Owner with respect to the
      Hotel;

     

    (c) All
      real
      and personal property taxes (less refunds, offsets or credits thereof, and
      interest thereon, if any, received during the period in question);

     

    (d) The
      Basic
      Fee and all fees payable under the Existing Franchise Agreement;

     

    (e) Lease
      payments; and 

     

    (f) All
      other
      amounts deductible in respect of such period under the express terms of this
      Agreement.

     

    To
      the
      extent the Hotel is part of a mixed-use project (which, for this purpose, shall
      mean any project that includes, in addition to the Hotel, any facilities not
      subject to management or operation by Manager hereunder), a portion of common
      costs relating both to the Hotel and to the non-Hotel portions of the project,
      such as, for example, but not by way of limitation, real estate taxes,
      insurance, common area landscaping, site maintenance, trash removal,
      extermination and other such costs intended for the benefit both of the Hotel
      and the non-Hotel portions of the development, shall be allocated in a fair
      and
      reasonable manner so that the Hotel shall bear only its fair and reasonable
      portion of such common expenses.

     

    “Basic
      Fee”
      shall
      have the meaning set forth in Section 6.01
      hereof.

     

    “Deficiency”
      shall
      mean, for any relevant period, the amount by which Adjusted NOI is less than
      Owner’s Priority for such relevant period.

     

    “Excess
      Adjusted NOI”
      shall
      mean the amount by which Adjusted NOI exceeds Owner’s Priority. 

     

    “Incentive
      Fee”
      shall
      have the meaning set forth in Section 6.01
      hereof.

     

    “Gross
      Receipts”
      for any
      period shall mean all revenues and income of any kind derived, directly or
      indirectly, from the operation of the Hotel during such period, including all
      revenues derived from the sale during such period of rooms, food and beverages,
      telephone revenue, revenue derived from any other revenue source and rents
      or
      fees payable by tenants or concessionaires for such period (but not the gross
      receipts of such sub-tenants or concessionaires). Without limiting the
      generality of the foregoing, it is the intention of the parties that the term
      “Gross
      Receipts”
      shall
      mean all amounts properly accounted for as Revenue or Total Revenue or Total
      Operated Departments in accordance with, and as defined in, the Uniform System.
      Notwithstanding the foregoing, there shall be excluded in determining Gross
      Receipts for any period the sum of (i) any sales, excise or occupancy taxes
      actually collected during such period in accordance with Legal Requirements
      from
      guests or patrons of the Hotel and either remitted, or required to be remitted,
      to appropriate taxing authorities; (ii) amounts collected from guests or
      patrons of the Hotel on behalf of Hotel tenants and other third parties;
      (iii) interest earned on funds held in Operating Accounts (if any); and
      (iv) insurance proceeds, condemnation proceeds, financing or refinancing
      proceeds and the proceeds of sale of any real or personal property comprising
      part of the Hotel (as distinguished from the sale of merchandise, food and
      beverage and other consumer goods or services). Gross Receipts shall in all
      events include only amounts actually paid or payable to the Hotel (in cash
      or
      services), and shall not include, except as otherwise herein expressly provided,
      (i) the value of any Hotel goods or services in excess of actual amounts
      paid (in cash or services) provided by the Hotel on a complimentary or
      discounted basis, (ii) gratuities or service charges collected for payment
      to Hotel employees and (iii) credits or refunds to Hotel
      guests.

     

    “Income
      After Undistributed Operating Expenses”
      shall
      mean such amount as is calculated in the ninth edition of the Uniform System,
      without regard to any revisions or future editions thereof.

     

    “Owner’s
      Priority”
      shall
      mean an amount equal to nine and one-half percent (9.5%) of the Project
      Costs.

    

    “Project
      Costs”
      shall
      mean the sum of (a) the actual gross (i.e., undepreciated) costs of the Hotel
      incurred and paid or accrued on or before December 31, 2006 by Owner, to the
      extent required to be capitalized under GAAP and (b) the Conversion Cost; LESS
      the amount equal to four percent (4%) of the Gross Receipts for twelve (12)
      months of the Fiscal Year during which the majority of the Conversion occurs
      (anticipated to be 2007). 

    

    2.  Conforming
      Amendments.
      The
      terms of this Amendment shall control if there is any conflict between any
      term
      of this Amendment and any term of the Management Agreement. Each term of the
      Management Agreement hereby is amended as required to conform to the terms
      of
      this Amendment, whether or not such term of the Management Agreement is
      identified or expressly amended in this Amendment.

     

    3.  Execution.
      This
      Amendment may be executed by the parties in counterparts, each of which shall
      be
      deemed an original.

     

    4.  No
      Further Amendments.
      Other
      than with respect to those amendments set forth herein, including the conforming
      amendments under paragraph 2, above, the Management Agreement shall remain
      in
      full force and effect and is hereby ratified and confirmed by the
      parties.

     

    [Signature
      page follows.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties executed this Amendment to be mad effective on the Effective
      Date.

     

    OWNER:

    

    [__________________]

    

    

    By:      

    

    Name:      

    

    Title:      

    

    

    

    MANAGER:

    

    [______________________]

    

    By:      

    

    Name:      

    

    Title:      

    

    

    FRANCHISOR:

    

    AMERISUITES
      FRANCHISING, INC.

    

    

    By:      

    

    Name:      

    

    Title:      

    

    

    

    

    

    

    

    [Signature
      page to Second Amendment to Management Agreement]

    

    

    Exhibit
      A

    

    EXAMPLE
      COMPUTATION OF MANAGEMENT FEES/FRANCHISE FEES

    (amounts
      are for demonstration purposes only)

    

    

    
      	 	
              YTD

              3/31/08

            	
              YTD

              8/31/08

            	
              YTD

              12/31/08

            
	
               

              Project
                Costs

            	
               

              $10,000,000

            	
               

              $10,000,000

            	
               

              $10,000,000

            
	
               

              Minimum
                % Return Owner’s Priority

            	
               

              9.50%

               

              $950,000

            	
               

              9.50%

               

              $950,000

            	
               

              9.50%

               

              $950,000

            
	
               

              Cumulative
                YTD Owner’s Priority (1)

            	
               

              A
                $237,500

            	
               

              $633,333

            	
               

              $950,000

            
	
               

              Total
                Hotel Revenue (i.e. Gross Receipts)

            	
               

              $650,000

            	
               

              $1,700,000

            	
               

              $2,400,000

            
	
               

              Adjusted
                NOI, before Continuing Royalty Fee & Basic Fee

            	
               

              B
                $266,500

            	
               

              $799,000

            	
               

              $1,080,000

            
	
               

              Adjusted
                NOI above Owner’s Priority (2)

            	
               

              B-A
                $29,000

            	
               

              $165,667

            	
               

              $130,000

            
	
               

              Continuing
                Royalty Fee Earned (Max of 4%)

            	
               

              C
                $26,000

              4.0%

            	
               

              $68,000

              4.0%

               

            	
               

              $96,000

              4.0%

            
	
               

              Basic
                Fee Earned 

              (Max
                of 3%)

            	
               

              D
                $3,000

              0.5%

            	
               

              $51,000

              3.0%

            	
               

              $34,000

              1.4%

            
	
               

              Adjusted
                NOI

            	
               

              B-C-D=E

              $237,500

            	
               

              $680,000

            	
               

              $950,000

            
	
               

              Excess
                Adjusted NOI

            	
               

              E-A
                $0

            	
               

              $46,667

            	
               

              $0

            
	
               

              Incentive
                Fee Earned (10% of Excess Adjusted NOI)

            	
               

              None

            	
               

              $4,667

              0.3%

            	
               

              None

            

    

    

    (1)
      Calculated based on actual months divided by 12.

    (2)
      Before Continuing Royalty Fee and Basic Fee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]