Document:

Exhibit 10.4

 

SPRINGHILL SUITES

SVC89
Combined Portfolio

 

SECOND AMENDED AND RESTATED

MANAGEMENT AGREEMENT

 

by and between

 

SPRINGHILL SMC, LLC

as “MANAGER”

 

and

 

HPT TRS MRP, INC.

as “TENANT”

 

Dated as of December 31, 2019

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE
    I APPOINTMENT OF MANAGER	1
	 	 
	1.01   Appointment	1
	1.02   Management of the Hotels	2
	1.03   Services Provided by Manager	5
	1.04   Marketing Fund; Program Services	7
	1.05   Employees	8
	1.06   Right to Inspect	10
	1.07   Right of Offset	10
	 	 
	ARTICLE II TERM	10
	 	 
	2.01   Term	10
	 	 
	ARTICLE III COMPENSATION OF MANAGER	11
	 	 
	3.01   Management Fees	11
	3.02   Operating Profit	12
	 	 
	ARTICLE IV ACCOUNTING, BOOKKEEPING AND BANK ACCOUNTS	14
	 	 
	4.01   Accounting, Interim Payment and Annual Reconciliation	14
	4.02   Books and Records	18
	4.03   Accounts, Expenditures	19
	4.04   Annual Operating Projection	20
	4.05   Working Capital	20
	4.06   Fixed Asset Supplies	21
	 	 
	ARTICLE V REPAIRS, MAINTENANCE AND REPLACEMENTS	21
	 	 
	5.01   Manager’s Maintenance Obligation	21
	5.02   Repairs and Maintenance to be Paid from Gross Revenues	22
	5.03   Items to be Paid from Reserves	22
	5.04   Reserve Estimates	23
	5.05   Additional Requirements for Reserves	23
	5.06   Ownership of Replacements	24
	5.07   Obligation to Provide Additional Reserve Funds	24
	5.08   Additional Requirements Relating to Certain Capital Improvements	25
	 	 
	ARTICLE VI INSURANCE, DAMAGE AND CONDEMNATION	26
	 	 
	6.01   Insurance	26
	6.02   Damage and Repair	26
	6.03   Damage Near End of Term	29
	6.04   Condemnation	29
	6.05   Partial Condemnation	29
	6.06   Disbursement of Award	30
	6.07   Temporary Condemnation	30
	6.08   Allocation of Award	30
	6.09   Effect of Condemnation	30

 

    i

     

    

 

	ARTICLE VII TAXES; OTHER CHARGES	31
	 	 
	7.01   Real Estate and Personal Property Taxes	31
	 	 
	ARTICLE VIII OWNERSHIP OF THE HOTELS	32
	 	 
	8.01   Ownership of the Hotels	32
	8.02   Requirements for Mortgages	33
	8.03   Subordination and Non-Disturbance Agreement	34
	8.04   No Covenants, Conditions or Restrictions	34
	8.05   Liens; Credit	35
	 	 
	ARTICLE IX DEFAULTS	36
	 	 
	9.01   Manager Events of Default	36
	9.02   Remedies for Manager Defaults	37
	9.03   Additional Remedies for Manager Defaults	38
	9.04   Non-Recourse Provision	38
	9.05   Good Faith Dispute by Manager	39
	9.06   Tenant Events of Default	39
	9.07   Remedies for Tenant Defaults	41
	9.08   Good Faith Dispute by Tenant	42
	9.09   Landlord Defaults	42
	9.10   Extraordinary Events	43
	 	 
	ARTICLE X ASSIGNMENT AND SALE	43
	 	 
	10.01   Assignment	43
	10.02   Sale of the Hotel	45
	 	 
	ARTICLE XI MISCELLANEOUS	45
	 	 
	11.01   Right to Make Agreement	45
	11.02   Actions by Manager	46
	11.03   Relationship	46
	11.04   Applicable Law	46
	11.05   Recordation	46
	11.06   Headings; Section References	47
	11.07   Notices	47
	11.08   Environmental Matters	48
	11.09   Confidentiality	49
	11.10   Projections	50
	11.11   Actions to be Taken Upon Termination	50
	11.12   Trademarks, Trade Names and Service Marks	53
	11.13   Data Protection	53
	11.14   Waiver	54
	11.15   Partial Invalidity	54
	11.16   Survival	54
	11.17   Negotiation of Agreement	54
	11.18   Intentionally Deleted	54
	11.19   Entire Agreement; Recitals	55
	11.20   Affiliates	55
	11.21   Competing Facilities	55

 

    ii

     

    

 

	11.22   Intentionally Deleted	55
	11.23   Dispute Resolution; Arbitration and Expert Resolution	56
	11.24   Permitted Contests	58
	11.25   Indemnification	59
	11.26   Estoppel Certificates	59
	11.27   Intentionally Deleted	60
	11.28   Intentionally Deleted	60
	11.29   Remedies Cumulative	60
	11.30   Amendments and Modifications	60
	11.31   Construction; Nonrecourse	60
	11.32   Counterparts; Headings	60
	11.33   No Political Contributions	60
	11.34   Single Agreement	61
	11.35   REIT Qualification	61
	11.36   Further Compliance With Section 856(d) of the Code	61
	11.37   Adverse Regulatory Event	62
	11.38   Commercial Leases	62
	11.39   Waiver of Jury Trial	62
	11.40   Waiver of Consequential, Incidental, Special & Punitive Damages	63
	11.41   Equity Interests in Tenant	63
	11.42   No Rights of Third Parties	63
	11.43   Intentionally Deleted	63
	11.44   Non-Hotel Marketing Activities by Tenant	63
	11.45   Single Agreement; Integration	63
	11.46   Prior Management Agreement	63
	 	 
	ARTICLE XII DEFINITION OF TERMS	64
	 	 
	12.01   Definition of Terms	64

 

	Exhibit A	The Sites
	Exhibit B	Central Office Services
	Exhibit C	Franchise Requirements
	Exhibit D	Insurance
	Exhibit E	Equity Interests in Tenant
	Exhibit F	Brands
	Addenda	Property Information

 

    iii

     

    

 

THIS SECOND AMENDED
AND RESTATED MANAGEMENT AGREEMENT (this “Agreement”) is executed as of the 31st day of December, 2019 (the
 “Execution Date”), but is to become effective as of January 1, 2020 (the “Effective Date”),
by and between HPT TRS MRP, INC., a Maryland corporation (“Tenant”); and SpringHill
SMC, LLC, a Delaware limited liability company (“Manager”).

 

RECITALS:

 

A.             
Landlord (as defined herein) is the owner of fee title to the parcels of real property described on Exhibit A
attached to this Agreement and incorporated herein (the “Sites”) on which certain improvements have been constructed
consisting of a building or buildings containing in each instance the number of Guest Rooms as specified on the Addenda hereto
(as the same shall be amended and revised from time to time), and certain other amenities and related facilities (the “Buildings”).
Each Site and the Buildings on each such Site, in addition to certain other rights, improvements, and personal property, are individually
referred to as a “Hotel” and are collectively referred to as the “Hotels” and more particularly
described in the definition in Section 12.01. Pursuant to the Lease, Landlord has leased the Hotels (except for certain assets
of Tenant or Manager included within the definition of Hotels) which are subject to this Agreement, to Tenant.

 

B.              
With respect to each Hotel, Tenant (either directly or by an assignment and assumption agreement between Tenant and Tenant’s
predecessor-in-interest) and Manager have heretofore entered into a Management Agreement specified on the Addenda hereto (collectively,
and as amended and restated, the “Prior Management Agreement”), pursuant to which Tenant has engaged Manager
to manage and operate the Hotels for the account of Tenant, and Manager has accepted such engagement. Effective as of the Effective
Date, Tenant and Manager desire to amend and restate the terms and conditions of the Prior Management Agreement in their entirety
and replace them with the terms and conditions set forth in this Agreement.

 

C.              
Pursuant to the Lease and certain other leases, Tenant or an Affiliate of Tenant has leased other hotels from Landlord or
an Affiliate of Landlord managed by Affiliates of Manager (all properties subject to the Lease and/or such other leases at any
given time, and as further described in the definition of “Portfolio Properties” set forth in Article XII, are collectively,
the “Portfolio Properties”). Manager, Tenant and their applicable Affiliates have agreed that revenues, working
capital, reserves and other items from the Portfolio Properties will be pooled, disbursed and distributed in accordance with the
terms and conditions of the Pooling Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt of which
is hereby acknowledged, Tenant and Manager agree as follows:

 

ARTICLE I

 

APPOINTMENT OF MANAGER

 

1.01          Appointment.
Subject to the provisions of this Agreement, Tenant hereby engages Manager to supervise, direct and control the management,
promotion and operation of the Hotels throughout the Term. Manager accepts said engagement and agrees to manage the Hotels
during the Term in accordance with the terms and conditions of this Agreement. The Hotels shall each be known as a SpringHill
Suites by Marriott, or Marriott SpringHill Suites with such additional identification as may be necessary to provide local
identification. If the name of the SpringHill Suites by Marriott System is changed, Manager will change the name of
the Hotels to conform thereto. All capitalized terms shall have the meaning ascribed to them in Article XII hereof.

 

     

     

    

 

1.02          
Management of the Hotels.

 

A.               
Manager shall manage and operate the Hotels in an efficient and economical manner consistent with the prevailing standards
in other hotels in the System, including all activities in connection therewith which are customary and usual to such an operation.
Manager shall, in connection with the Hotels and in accordance with the System Standards and the terms of this Agreement, perform
each of the following functions (provided that in all cases, except as otherwise set forth in this Agreement, the costs and expenses
of performing such functions shall be Deductions):

 

1.                 
Recruit, employ, supervise, direct and (when appropriate) discharge all of the employees at the Hotels.

 

2.                 
Establish prices, rates and charges for services provided in the Hotels, including rates for Guest Rooms.

 

3.                
Establish and revise, as necessary, administrative policies and procedures, including policies and procedures for the control
of revenue and expenditures, for the purchasing of supplies and services, for the control of credit, and for the scheduling of
maintenance, and verify that the foregoing procedures are operating in a sound manner.

 

4.                
Manage expenditures to replenish Inventories and Fixed Asset Supplies, make payments on accounts payable and collect accounts
receivable.

 

5.                 
Arrange for and supervise public relations and advertising and prepare marketing plans.

 

6.                 
Procure all Inventories and replacement Fixed Asset Supplies.

 

7.                 
Prepare and deliver interim accountings, annual accountings, Annual Operating Projections, Reserve Estimates and such other
information as is required by this Agreement.

 

8.                 
Plan, execute and supervise repairs, maintenance alterations and improvements at the Hotels.

 

9.                 
Provide, or cause to be provided, risk management services relating to the types of insurance required to be obtained or
provided by Manager under this Agreement and provide such information related to risk management to Tenant as Tenant may from time
to time reasonably request.

 

    2

     

    

 

10.               
Obtain and keep in full force and effect, either in its own name or in Tenant’s name, as may be required by applicable
law, any and all licenses and permits to the extent same is within the control of Manager (or, if same is not within the control
of Manager, Manager shall use all due diligence and reasonable efforts to obtain and keep same in full force and effect).

 

11.              
Reasonably cooperate (provided that Manager shall not be obligated to enter into any amendments of this Agreement) in any
attempt(s):

 

(a)               
to effectuate a Sale of a Hotel under the terms of this Agreement (provided that nothing herein shall affect the provisions
of Section 10.02); or

 

(b)              
to effectuate a direct or indirect sale or other disposition of the Landlord’s interest in a Hotel as permitted under
the Owner Agreement; or

 

(c)               
to obtain any Qualified Mortgage.

 

12.              
Subject to the requirements of Section 10.01 hereof, negotiate and administer, on behalf of Tenant, leases, subleases, licenses
and concession agreements for all public space at the Hotels, including all stores, office space and lobby space.

 

13.              
On behalf of Tenant, negotiate, enter into and administer service contracts and licenses for the operation of the Hotels,
including contracts and licenses for health and safety systems maintenance, electricity, gas, telephone, cleaning, elevator and
boiler maintenance, air conditioning maintenance, laundry and dry cleaning, master television service, use of copyrighted materials
(such as music and videos), entertainment and other services as Manager deems advisable.

 

14.              
Negotiate, enter into and administer contracts for the use of banquet and meeting facilities and Guest Rooms by groups and
individuals.

 

15.              
Take reasonable action to collect and institute in its own name or in the name of Tenant or a Hotel, in each instance as
Manager in its reasonable discretion deems appropriate, legal actions or proceedings to collect charges, rent or other income derived
from the operation of the Hotels or to oust or dispossess guests, tenants, members or other persons in possession therefrom, or
to cancel or terminate any lease, license or concession agreement for the breach thereof or default thereunder by the tenant, licensee
or concessionaire.

 

16.              
Make representatives available to consult with and advise Tenant or Tenant’s designee at Tenant’s reasonable
request concerning policies and procedures affecting the conduct of the business of the Hotels.

 

17.              
Collect on behalf of Tenant and account for and remit to governmental authorities all applicable excise, sales, occupancy
and use taxes or similar governmental charges collected by or at the Hotels directly from guests, members or other patrons, or
as part of the sales price of any goods, services or displays, such as gross receipts, admission or similar or equivalent taxes,
duties, levies or charges.

 

    3

     

    

 

18.              
Keep Tenant advised of significant events which occur with respect to the Hotels which might reasonably be expected to have
a material adverse effect on the financial performance or value of the Hotels.

 

19.              
Perform such other tasks with respect to the Hotels as are customary and consistent with the System Standards.

 

B.                
The operation of the Hotels shall be under the exclusive supervision and control of Manager which, except as otherwise specifically
provided in this Agreement, shall be responsible for the proper and efficient operation of the Hotels. Subject to the terms of
this Agreement, Manager shall have discretion and control, free from interference, interruption or disturbance, in all matters
relating to management and operation of the Hotels, including, without limitation, the following: charges for Guest Rooms and commercial
space; credit policies; food and beverage services; employment policies; granting of leases, subleases, licenses and concessions
for shops and agencies within the Hotels consistent with the provisions of Section 10.01 hereof; receipt, holding and disbursement
of funds; maintenance of bank accounts; procurement of Inventories (including initial inventories), supplies and services; promotion
and publicity; payment of costs and expenses as are specifically provided for in this Agreement or are otherwise reasonably necessary
for the proper and efficient operation of the Hotels; and, generally, all activities necessary for operation of the Hotels.

 

C.                
Manager shall use reasonable efforts to comply with and abide by all Legal Requirements and Insurance Requirements pertaining
to its operation of the Hotels, provided that Manager shall have the right, but not the obligation, in its reasonable discretion,
to contest or oppose, by appropriate proceedings, any such laws and regulations in accordance with Section 11.24 hereof. Except
as expressly provided to the contrary in this Agreement, all costs and expenses of such compliance with respect to each Hotel shall
be paid from Gross Revenues as Deductions in the computation of Operating Profit of such Hotel or from the Reserve of such Hotel,
whichever is applicable, and the reasonable expenses of any such contest shall be paid from Gross Revenues as Deductions with respect
to such Hotel.

 

D.               
Manager shall use due diligence and exercise commercially reasonable efforts to obtain and maintain all approvals necessary
to use and operate the Hotels in accordance with the System Standards and Legal Requirements. Tenant shall cooperate with Manager
in this regard and, in connection therewith, shall execute all applications and consents required to be executed by Tenant in order
for Manager to obtain and maintain such approvals. All costs incurred by Tenant in this regard shall be included in Deductions
for the applicable Hotel.

 

E.                 Manager
shall not use, and shall exercise commercially reasonable efforts to prevent the use of, the Hotels’
and Manager’s personal property used in connection with the Hotels, if any, for any unlawful purpose. Manager shall not
commit, and shall use commercially reasonable efforts to prevent the commission, of any waste at the Hotels. Manager shall
not use, and shall use commercially reasonable efforts to prevent the use of, the Hotels in such a manner as will constitute
an unlawful nuisance thereon or therein. Manager shall use commercially reasonable efforts to prevent the use of the Hotels
in such a manner as might reasonably be expected to impair Tenant’s or Landlord’s title thereto or any portion
thereof or might reasonably be expected to give rise for a claim or claims for adverse use or adverse possession by the
public, as such, or of implied dedication of the Hotels or any portion thereof.

 

    4

     

    

 

F.                 
Manager shall, to the extent within Manager’s control, use commercially reasonable efforts to cause Tenant to be in
compliance with the Lease, and the costs of the same shall be paid as Deductions for the applicable Hotel hereunder except as otherwise
specifically provided for in this Agreement.

 

1.03          
Services Provided by Manager.

 

A.               
Manager will provide the Central Office Services and will bear all costs of the Central Office Services described in Exhibit B,
and in no event will the costs of the Central Office Services be charged to the Hotels as Deductions, either directly or through
the Above-Property Programs & Services.

 

B.                
In operating the Hotels, Manager may provide or cause to be provided, and the Hotels will participate in, certain functions
for the operation of the Hotels through the use of facilities, systems, equipment and individuals not physically located at the
Hotels, including Chain Services, MBS Systems, Reservation Systems, Loyalty Programs, Marketing Fund Activities and Program Services
(collectively referred to as the “Above-Property Programs & Services”).

 

C.                
Manager will provide or cause to be provided, and each Hotel will participate in, certain services (“Chain Services”)
that are provided on a comparable basis to System hotels as follows:

 

1.                 
Chain Services include: (a) operational support for engineering; human resources services, including training services,
manpower development, career development, management personnel relocation, and payroll services; safety and loss prevention services;
accounting services; computer system development, support, and operating costs; monitoring and management support, such as area
managers; and (b) such additional central or regional services that from time to time may be provided to hotels in the System or
in substitution for services now performed at individual System hotels that may be more efficiently performed on a group basis.
Chain Services will not include services covered by the Program Services Contribution; and

 

2.                 
Only Central Office Services and those services listed in clause (a) of the definition of Chain Services in Section 1.03.C(1)
as of the Effective Date are covered by the System Fee. If there are expenditures that were originally treated as Deductions but
that are later determined to be more properly treated as Chain Services, or if additional central or regional services are provided
for the benefit of hotels in the System after the Effective Date, the Hotels’ allocable share of such expenditures will be
Deductions and will not be covered by the System Fee. Likewise, if there are expenditures that are listed in clause (a) of the
definition of Chain Services that are included in Chain Services on the Effective Date, but that are later determined to be more
properly provided at the Hotels instead of on a central or regional basis, then such expenditures will not later be treated as
Deductions but will continue to be covered by the System Fee.

 

    5

     

    

 

D.               
Manager and/or its Affiliates may provide or cause to be provided, and the Hotels will participate in, certain marketing
programs (the “Additional Marketing Programs”) that are not part of Chain Services, the Loyalty Programs or
the Marketing Fund Activities, or locally-generated public relations, advertising, promotions and marketing programs. As of the
Effective Date, the Additional Marketing Programs include email marketing, internet search engine marketing, transaction-based
paid internet searches, sales lead referrals and bookings, cooperative advertising programs, travel agency programs, incentive
awards and gift cards.

 

E.                
Manager may, in its discretion, provide or cause to be provided certain programs and processes that manage certain aspects
of a Hotel’s finances and accounting through processes that consolidate certain accounts payable, billing and accounts receivable,
and related functions and procedures, into one or more shared services centers, or third party centers, for the System (including
any similar or successor systems or services, the “MBS Systems”). Manager may change the scope, services, service
provider, features and functions of the MBS Systems from time to time as it determines in its reasonable discretion to be most
efficient and economical for the System.

 

F.                 
Manager may modify, add or delete categories of Above-Property Programs & Services in its reasonable discretion. If
Manager provides or causes to be provided a new Above-Property Program & Service to a Hotel, then Manager will determine whether
such new Above-Property Program & Service is treated as a Chain Service based on whether (i) the new Above-Property Program
 & Service supports only a subgroup of System hotels, or selected or individual hotels, or (ii) the costs of the new Above-Property
Program & Service is more appropriately recovered based on hotel usage. If either clause (i) or clause (ii) applies, the new
Above-Property Program & Service will not be treated as a Chain Service.

 

G.               
The Above-Property Programs & Services may be delivered to (i) all System hotels; (ii) certain subsets of
System hotels based on certain criteria such as hotel type; (iii) hotels on a local, regional or cluster basis; or (iv) the
Hotels and one or more other hotels or businesses on a shared basis. Any of these programs and services may also be provided or
delivered to any other businesses. The Above-Property Programs & Services provided or delivered to the Hotels may change from
time to time as reasonably determined by Manager subject to Sections 1.03.C(2) and 1.03.F. Manager may change, discontinue or reconstitute
the Above-Property Programs & Services on a country regional, or international basis.

 

H.                The
Above-Property Programs & Services costs (including for the avoidance of doubt the Program Services costs) will be
allocated by Manager on a fair and reasonable basis (for example, by the number of Guest Rooms, percentage of Gross Room
Revenues or other revenues, or volume of use) among all of the properties participating in such programs and services, which
basis may be different for different groups of Above-Property Programs & Services and may change from time to time as
reasonably determined by Manager. Each Hotel’s costs (i) will be Deductions; (ii) will include the actual
costs of providing, developing and supporting the Above-Property Programs & Services, including corporate overhead and
development costs related to the Above-Property Programs & Services; (iii) will not include any profit component to
Manager; and (iv) will not include any amounts that are paid by or on behalf of Tenant pursuant to any other provision
of this Agreement for such Above-Property Programs & Services. Manager may provide the Above-Property Programs &
Services to other Persons and properties that are not part of the System (or allow these Persons and properties to use the
Above-Property Programs & Services’ systems and infrastructure) at a price that will include the recovery of these
costs and may also include a profit to Manager or its Affiliates. Tenant acknowledges that the direct benefit to a Hotel from
the Marketing Fund Activities (as defined below) might not be proportionate to any individual Hotel’s cost
allocation.

 

    6

     

    

 

I.                   
Any amounts that Manager collects in a Fiscal Year from the Hotels and other hotels receiving the Above-Property Programs
 & Services which are not used by Manager or its Affiliates to cover the costs incurred in providing Above-Property Programs
 & Services during such Fiscal Year, will be carried forward without interest and used to cover the costs incurred in future
Fiscal Years. If the amounts that Manager and its Affiliates collect from the Hotels and other hotels for Above-Property Programs
 & Services are at any time insufficient to cover the costs Manager or its Affiliates incur, then Manager and its Affiliates
may advance amounts from their own funds to cover the shortfall. These advances may be interest bearing loans and will be repaid
from future amounts collected from the Hotels and other System hotels receiving the Above-Property Programs & Services.

 

1.04         
Marketing Fund; Program Services.

 

A.               
Manager or its Affiliates will provide or cause to be provided, and the Hotels will participate in, the following (collectively,
the “Marketing Fund Activities”):

 

1.                 
brand research and strategy for sales and marketing;

 

2.                 
creating, producing, placing and distributing marketing materials in any form of media;

 

3.                 
advertising, marketing, promotions, public relations and sales campaigns, programs, sponsorships, seminars and other sales
activities;

 

4.                 
market research and oversight and management of the guest voice program and the Loyalty Programs; and

 

5.                 
retaining or employing personnel, advertising agencies, marketing consultants, and other professionals or specialists to
assist in developing, implementing and administering any of the above.

 

For the avoidance of
doubt, as described in Section 1.03.D hereof, the Marketing Fund Activities exclude any locally-generated public relations, advertising,
promotions and/or marketing programs.

 

B.                
Tenant will pay Manager an amount equal to two and one-half percent (2.5%) of Gross Room Revenues to reimburse Manager and
its Affiliates for all costs associated with the Marketing Fund Activities (the “Marketing Fund Contribution”).
Tenant will pay the Marketing Fund Contribution as part of the Program Services Contribution described in this Section 1.04.

 

    7

     

    

 

C.                
Manager may change or reconstitute the Marketing Fund Activities on a country, regional or international basis.

 

D.               
As of the Effective Date, Program Services will include the Marketing Fund Activities and Reservation Systems, as well as
certain other Above-Property Programs & Services specified by Manager (“Program Services”). Program Services
will also include the actual costs of providing, developing and supporting the Program Services, including corporate overhead and
development costs related to the Program Services, costs for collecting and accounting for any monies collected by Manager or its
Affiliates for Program Services (the “PSF”), reimbursing capital invested in developing such Program Services
and financing such capital.

 

E.                
Beginning on the Effective Date, Tenant shall pay Manager the Program Services Contribution (which shall include, but not
be limited to, the Marketing Fund Contribution) to reimburse Manager and its Affiliates for Program Services.

 

F.                 
Manager may (i) use the PSF to cover the costs of Program Services that benefit System hotels as a whole, groups of
System hotels, or other lodging properties operated or franchised by Manager or its Affiliates, or (ii) change the programs
and services covered by the PSF. Tenant acknowledges that the direct benefit to a Hotel from the Program Services might not be
proportionate to the Program Services Contribution. Program Services will not necessarily include all of the hotels in the System,
and some Program Services may also benefit or include Other Marriott Products.

 

1.05          
Employees.

 

A.                All
personnel employed at the Hotels shall at all times be the employees of Manager. Subject to the terms of this
Agreement, Manager shall have absolute discretion with respect to all personnel employed at the Hotels, including, without
limitation, decisions regarding hiring (subject to Section 1.05.B), promoting, transferring, compensating, supervising,
terminating, directing and training all employees at the Hotels, and, generally, establishing and maintaining all policies
relating to employment; provided, however, that Manager shall use commercially reasonable efforts to comply
with all Legal Requirements pertaining thereto and not enter into any written employment agreements with any person which
purport to bind Tenant and/or purport to be effective regardless of a Termination, without obtaining Tenant’s consent,
which consent may be withheld in Tenant’s sole and absolute discretion. Manager shall use reasonable efforts to comply
with and abide by all Legal Requirements regarding labor relations; if either Manager or Tenant shall be required, pursuant
to any such Legal Requirement, to recognize a labor union or to enter into a collective bargaining with a labor union, the
party so required shall promptly notify the other party pursuant to this Section 1.05. Manager shall indemnify Landlord and
Tenant for all costs and expenses (including reasonable attorneys’ fees) incurred by either of them if they are joined
in or made party to any third-party suit or cause of action in connection with an Employee Claim where the basis of such
Employee Claim is conduct by Manager that is a substantial violation of the standards of responsible labor relations as
generally practiced by prudent owners or operators of similar hotel properties in the general geographic area of the relevant
Hotel, the costs of which shall not be a Deduction. Any Dispute between Tenant and Manager as to whether or not certain
conduct by Manager is not in accordance with the aforesaid standards shall be resolved by Arbitration pursuant to Section
11.23.A hereof. The Arbitration proceedings described in the preceding sentence shall be conducted independently of any
arbitration proceedings with respect to such Employee Claim pursuant to the applicable employee-related contract. All
information regarding individual Hotel employees, such as employee records and compensation information, is proprietary to
Manager and confidential and will not be disclosed to Tenant except as otherwise expressly provided in this Agreement.

 

    8

     

    

 

B.                
Manager shall have the authority to hire, dismiss or transfer each Hotel’s general manager; provided, however,
that Manager shall keep Tenant reasonably informed with respect to such actions, including prior notification to Tenant of Manager’s
desire to transfer the general manager, and shall give Tenant the opportunity to participate in the hiring process with respect
to the general managers as follows:

 

1.                 
Manager shall provide Tenant at least thirty (30) days’ prior notice of any proposed hiring of a general manager.
Manager shall consult with Tenant to obtain any suggestions by Tenant as to the preferred background and specific expertise of
candidates for such Hotel position, which suggestions, if any, Manager shall utilize in arriving at a preferred profile for candidates
for such position.

 

2.                 
Manager shall submit to Tenant for its approval a reasonably qualified candidate for such position. Tenant shall have a
period of ten (10) Business Days from its receipt of the applicable candidate’s resume within which to interview and evaluate
such candidate (provided that such candidate and the necessary representatives of Tenant are reasonably available during such period
of time for such interview or evaluation, and such candidate shall not be required to provide additional information or undertake
testing of any sort as part of such process). Tenant shall be deemed to have approved such candidate unless Manager receives Tenant’s
written disapproval of such candidate within such ten (10)-Business Day period. If Tenant disapproves the first (1st) candidate
(based on the process described above), then Manager shall submit a second (2nd) candidate, using the same process described above.
If such second (2nd) candidate is disapproved by Tenant (based on the same process described above), then Manager shall submit
a third (3rd) candidate, using the same process as described above. If Tenant disapproves of all three (3) candidates for the position
submitted by Manager pursuant to the provisions of this Section 1.05.B, Manager shall have the right to select the person to be
offered the position of general manager, in Manager’s sole discretion, from the three (3) candidates proposed to Tenant.

 

C.                
Manager shall decide which, if any, of the employees of the Hotels shall reside at the Hotels (provided that Tenant’s
prior approval shall be obtained if more than two (2) such employees and their immediate families reside at any Hotel), and shall
be permitted to provide free accommodations and amenities to its employees and representatives living at or visiting the Hotels
in connection with its management or operation consistent with the Marriott Companies usual practices for Marriott-managed hotels
in the System. No person shall otherwise be given gratuitous accommodations or services without prior joint approval of Tenant
and Manager except in accordance with usual practices of the hotel and travel industry.

 

D.               
Manager shall identify, appoint, assign, instruct and supervise employees in connection with the operation of the Hotels
which Manager deems necessary or advisable for the operation of the Hotels.

 

    9

     

    

 

E.                
Tenant acknowledges that Manager has informed Tenant that Manager and its Affiliates may collect and use Hotel Employee
Personal Data to manage Hotel employees as provided in this Agreement. Tenant shall notify Manager promptly of any inquiry or complaint
of which Tenant becomes aware that is received from a Hotel employee, data protection authority or other third party regarding
the collection, use or transfer of Hotel Employee Personal Data. Tenant will reasonably cooperate with Manager in any defense of
such a complaint, and will not, without Manager’s prior written consent, make any intentional admission or take any action
that would reasonably be expected to adversely prejudice the defense or settlement of any third-party complaint regarding Hotel
Employee Personal Data or any investigation by a data protection authority.

 

1.06         
Right to Inspect. Manager shall permit Landlord and Tenant and their respective authorized representatives to inspect
or show the Hotels during usual business hours upon not less than twenty-four (24) hours’ notice and to make such repairs
as Landlord is permitted or required to make pursuant to the terms of the Lease, provided that any inspection or repair by Landlord
or its representatives shall not unreasonably interfere with the use and operation of the Hotels and further provided that in the
event of an emergency as determined by Landlord in its reasonable discretion, prior notice shall not be required.

 

1.07         
Right of Offset. Manager acknowledges that it shall not have, in any instance, a right of offset against Tenant’s
Priority with respect to any Hotel under any circumstances (or against Aggregate Tenant’s Priority with respect to Hotels
for which the Pooling Agreement is in effect). Manager shall have the right to offset against amounts due to Tenant with respect
to any Hotel pursuant to Section 3.02.B hereof (and against amounts due to Tenant pursuant to Section 2.02.A of the Pooling Agreement
with respect to Hotels for which the Pooling Agreement is in effect) (but in all events excluding amounts due to Tenant as Tenant’s
Priority or Aggregate Tenant’s Priority), including amounts (i) which Landlord or Tenant fail to advance to the Reserve
for such Hotel which either of them is required to make as provided for herein or in the Lease or Owner Agreement (in each instance
as determined by the Expert pursuant to Section 11.23.B, if applicable), or (ii) due under a final judgment against Tenant
obtained by Manager with respect to such Hotel, or (iii) which Tenant fails to pay to Manager in violation of Section 4.01.D(2)
of this Agreement with respect to such Hotel. Except as expressly provided herein, Manager shall not offset against the amounts
owed to Tenant hereunder or under the Pooling Agreement.

 

ARTICLE II

 

TERM

2.01         
Term.

 

A.                 The
Term of this Agreement shall be, for each Hotel, from the Effective Date to the expiration or earlier termination of the
Initial Term and, if exercised in accordance with the terms hereof, the Renewal Term(s). The Initial Term and, if
exercised, each Renewal Term are collectively referred to as the “Term.” The “Initial
Term” for each Hotel shall begin on the Effective Date for such Hotel as set forth in the preceding sentence, and,
unless sooner terminated as provided in this Agreement, shall continue until December 31, 2035. Provided that
(1) Manager and its Affiliates have renewed all of the Other Management Agreements for the first Renewal Term or second
Renewal Term, as applicable in accordance with their terms, and (2) there exists at the time of renewal no Manager Event
of Default under this Agreement or any of the Other Management Agreements beyond the expiration of any applicable notice and
cure period and for which Tenant has, at such time, the right to terminate this Agreement, the Term shall thereafter
automatically be extended for each of two (2) successive periods of ten (10) Fiscal Years each (each, a “Renewal
Term”), unless Manager gives Tenant and Landlord written notice of Manager’s decision not to extend on or
before the date which is twelve (12) months prior to the date of the expiration of the Initial Term or first Renewal Term (as
the case may be), time being of the essence. If Manager does not extend the Initial Term or first Renewal Term (as the case
may be), then during such twelve (12)-month period prior to the date of the expiration of the Initial Term or first Renewal
Term (as the case may be), Tenant shall have the right to effect an earlier Termination of this Agreement with respect to
such Hotel by written notice to Manager, which Termination shall be effective as of the effective date which is set forth in
said notice, provided that said effective date shall be at least one hundred twenty (120) days after the date of said notice,
and in no event earlier than July 1 of the year of such Termination, and such Termination shall be in accordance with the
provisions of Section 11.11 of this Agreement. Notwithstanding the foregoing, the parties acknowledge and agree that
Tenant’s termination right pursuant to this Section 2.01.A shall only be exercised with respect to all or none of the
Hotels which are subject to this Agreement.

 

    10

     

    

 

B.                
Each Renewal Term shall commence on the day succeeding the expiration of the Initial Term or the preceding Renewal Term,
as the case may be. All of the terms, covenants and provisions of this Agreement shall apply to each such Renewal Term. If Manager
shall give notice that it elects not to extend the term in accordance with this Section 2.01, this Agreement shall automatically
terminate at the end of the Term then in effect, or such earlier date as provided above, and Manager shall have no further option
to extend the Term of this Agreement. Otherwise, the extension of this Agreement shall be automatically effected without the execution
of any additional documents; it being understood and agreed, however, that Manager and Tenant shall execute such documents and
agreements as either party shall reasonably require to evidence the same.

 

ARTICLE III

 

COMPENSATION OF MANAGER

 

3.01         
Management Fees. In consideration of the services provided to Tenant so that the Hotels become members of the System
and in consideration of the management services to be performed during the Term, Manager shall be paid, with respect to each Hotel,
the sum of the following as its management fees:

 

A.               
The System Fee; plus

 

B.                
The Base Management Fee; plus

 

C.                
The First Incentive Management Fee; plus

 

D.               
The Second Incentive Management Fee.

 

So long as the
Pooling Agreement has not been terminated in accordance with its terms with respect to the Hotels, payments of the Management
Fees with respect to periods for which the Pooling Agreement was in effect shall be made at the time, and in the amounts,
provided for under the Pooling Agreement. Notwithstanding anything herein to the contrary, if, in any Fiscal Year or portion
thereof prior to the termination of the Pooling Agreement in accordance with its terms with respect to one or more of the
Hotels, the First Incentive Management Fee or the Second Incentive Management Fee with respect to such Hotels are not payable
in full under the Pooling Agreement, Manager shall not be entitled to the payment of the portion of the First Incentive
Management Fee or the Second Incentive Management Fee not payable under the terms of the Pooling Agreement for such Fiscal
Year or partial Fiscal Year with respect to such Hotels, and in no event shall Tenant be liable for the payment of any such
unpaid portion to Manager. Notwithstanding anything herein to the contrary, if, in any Fiscal Year after the termination of
the Pooling Agreement in accordance with its terms or with respect to a Hotel, the First Incentive Management Fee or the
Second Incentive Management Fee with respect to such Hotel is not payable under Section 3.02.B hereof with respect to such
Hotel, Manager shall not be entitled to the payment of the portion of the First Incentive Management Fee or the Second
Incentive Management Fee not payable under Section 3.02.B hereof with respect to such Hotel, and in no event shall Tenant be
liable for the payment of such portion of the First Incentive Management Fee or the Second Incentive Management Fee to
Manager with respect to such Hotel.

 

    11

     

    

 

3.02         
Operating Profit.

 

A.               
So long as the Pooling Agreement has not been terminated in accordance with its terms with respect to one or more of the
Hotels, Operating Profit for such Hotels with respect to periods for which the Pooling Agreement was in effect shall be distributed,
to the extent available, as provided in the Pooling Agreement and the provisions of Section 3.02.B shall not apply.

 

B.                
For any period during the Term after the termination of the Pooling Agreement in accordance with its terms with respect
to one or more of the Hotels, Operating Profit for each such Hotel shall be distributed in the following order of priority:

 

1.                 
First, to Tenant, in an amount equal to Tenant’s Priority for such Hotel.

 

2.                 
Second, to Tenant, in an amount
equal to the amount of rent due pursuant to the ground lease (if any) to which such Hotel is subject, as set forth on the applicable
Addendum for such Hotel (the “Ground Lease Rent”).

 

3.                 
Third, to Manager, in an amount equal to the Base Management Fee for
such Hotel.

 

4.                  Fourth, pari
passu, to (i) Tenant, in an amount necessary to reimburse Tenant for all Tenant Working Capital Advances and Tenant
Operating Loss Advances made by Tenant, from time to time (collectively, “Tenant Advances”) with respect
to such Hotel which have not yet been repaid by distributions pursuant to this Section 3.02.B(4), and (ii) to Marriott,
in an amount necessary to reimburse Marriott or any Affiliate for all Additional Marriott Advances made by Marriott or any
Affiliate (including Manager) allocable to such Hotel and all Additional Manager Advances from time to time which have not
yet been repaid by distributions pursuant to this Section 3.02.B(4). If at any time the amounts available for distribution to
Tenant and Marriott with respect to a Hotel pursuant to this Section 3.02.B(4) (“Available Funds”) are
insufficient (a) to repay to Tenant all outstanding Tenant Advances with respect to a Hotel (the “Sum Due
Tenant”), and (b) to repay to Marriott all outstanding Additional Marriott Advances and Additional Manager
Advances with respect to a Hotel (the “Sum Due Marriott”), then (x) Tenant shall be paid from the
Available Funds for such Hotel the amount obtained by multiplying a number equal to the amount of the Available Funds by a
fraction, the numerator of which is the Sum Due Tenant and the denominator of which is the sum of the Sum Due Tenant plus the
Sum Due Marriott, and (y) Marriott shall be paid from the Available Funds the amount obtained by multiplying a number
equal to the amount of the Available Funds for such Hotel by a fraction, the numerator of which is the Sum Due Marriott and
the denominator of which is the sum of the Sum Due Tenant plus the Sum Due Marriott.

 

    12

     

    

 

5.                 
Fifth, to Manager, in an amount equal to
any accrued, but unpaid Base Management Fees for such Hotel.

 

6.                 
Sixth, to Manager, in an amount equal to the First Incentive Management Fee for such Hotel.

 

7.                 
Seventh, to Tenant, in an amount up to sixty percent (60%) of Operating Profit
remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (6) hereof necessary for the
Security Deposit Replenishment with respect to such Hotel.

 

8.                 
Eighth, to Manager, in an amount equal to the Second Incentive Management Fee for such Hotel.

 

9.                 
Finally, to Tenant, the balance, if any.

 

C.                
For any period during which a Hotel is no longer subject to the terms of the Pooling Agreement pursuant to the terms thereof,
Tenant shall receive Tenant’s Priority in accordance with the terms hereof, subject, however, to the provisions of this
Section 3.02.C. If the Operating Profit for the applicable Accounting Period, as determined by Manager, is less than Tenant’s
Priority with respect to such Accounting Period (a “Tenant’s Priority Shortfall”), then such Tenant’s
Priority Shortfall shall first be funded by Security Deposit Advances, and if the Security Deposit is depleted or otherwise insufficient
to fund such Tenant’s Priority Shortfall, then the amount of the Tenant’s
Priority Shortfall required to satisfy the Tenant’s Termination Threshold shall be funded by Marriott Guaranty Advances,
subject to the terms of the Marriott Guaranty Agreement, for so long as the Marriott Guaranty Agreement is in effect, and any
such amounts funded in excess of the Tenant’s Termination Threshold shall be deemed to have been funded by Marriott as an
Additional Marriott Advance and/or Manager as an Additional Manager Advance (as applicable) and not as a Marriott Guaranty Advance.
Any amount of the Tenant’s Priority Shortfall not funded from the Security Deposit or by Marriott or Manager shall accrue
and be paid as provided in Section 4.01 hereof. If a Guaranty Termination Event has occurred, then Manager may, without any obligation
and in its sole and absolute discretion, fund up to the Post-Guaranty Termination Threshold, and any such amounts funded by Manager
following such Guaranty Termination Event shall be deemed Additional Manager Advances. If (a) no Guaranty Termination Event
has occurred, and Marriott has not funded up to the Tenant’s Termination Threshold under the Marriott Guaranty Agreement
as provided herein for the applicable Fiscal Year on a cumulative basis within ten (10) days of receiving written request from
Tenant or (b) a Guaranty Termination Event has occurred, and Manager has not funded up to the Post-Guaranty Termination Threshold
for the applicable Fiscal Year on a cumulative basis within ten (10) days of receiving written request from Tenant (such event,
a “Manager Funding Termination Event”), then Tenant shall have the right to effect a Termination of this Agreement
with respect to such Hotel by written notice to Manager, which Termination shall be effective as of the effective date which is
set forth in said notice; provided that said effective date shall be at least sixty (60) days (or such longer period required
by applicable Legal Requirements concerning the termination of Hotel employees) after the date of such notice. If the Termination
is pursuant to clause (a) of this Section 3.02.C, then such Termination (i) shall be in accordance with the provisions of
Section 11.11 of this Agreement, (ii) shall constitute a Manager Default, and (iii) shall entitle Tenant to all rights
and remedies available to it with respect to a Manager Default as provided for in Article IX hereof. If the Termination is
due to a Manager Funding Termination Event, then such Termination shall not constitute a Manager Default or Manager Event of Default
and shall be in accordance with the provisions of Section 11.11 of this Agreement. Notwithstanding the foregoing, the parties
acknowledge and agree that Tenant’s termination right pursuant to this Section 3.02.C shall only be exercised with respect
to all or none of the Hotels which are subject to this Agreement.

 

    13

     

    

 

D.               
Notwithstanding the provisions of Section 3.02.B(2) hereof, the parties hereby acknowledge and agree that none of Manager,
Marriott or any of their respective Affiliates are obligated to pay and in no event shall be liable in any way whatsoever (i) for
any payment of, or failure to pay, the Ground Lease Rent to the lessor under any such ground lease; and/or (ii) if there is
insufficient Operating Profit to cover the full amount of such Ground Lease Rent.

 

ARTICLE IV

 

ACCOUNTING, BOOKKEEPING AND BANK ACCOUNTS

 

4.01         
Accounting, Interim Payment and Annual Reconciliation.

 

A.               
Within twenty (20) days after the close of each Accounting Period, Manager shall deliver an interim accounting (the “Accounting
Period Statement”) to Tenant and Landlord showing for each Hotel, Gross Revenues, Gross Room Revenues, occupancy percentage
and average daily rate, Deductions, Operating Profit, and applications and distributions thereof for the preceding Accounting Period.

 

Only if the
Pooling Agreement has been terminated in accordance with its terms with respect to one or more Hotels, the following
provisions for interim distributions shall apply with respect to such Hotels for periods subsequent to the termination date.
Notwithstanding the order of distribution of Operating Profit set forth in Section 3.02.B, for each Accounting Period,
Manager shall, with each interim accounting, transfer to Tenant any interim amounts due Tenant, transfer to Marriott any
interim amounts due to Marriott, and retain any interim amounts due to Manager under Section 3.02.B, including, without
limitation, the Base Management Fee, the First Incentive Management Fee, and
the Second Incentive Management Fee calculated on a year-to-date basis for such Fiscal Year. If the portion of
Operating Profit to be distributed to Tenant pursuant to Sections 3.02.B(1), (2), (4) or (7) is insufficient to pay each of
such interim amounts then due in full following the end of any Accounting Period, any such interim amounts left unpaid shall
be paid from and to the extent of Operating Profit available therefor at the time distributions are made following successive
Accounting Periods until such interim amounts are paid in full, and such payments shall be made from such available Operating
Profit in the same order of priority as other payments made on account of such items following such Accounting Periods. If
the portion of Operating Profit to be distributed to Marriott or Manager pursuant to Sections 3.02.B(3), (4), (5), (6) or (8)
is insufficient to pay each of such interim amounts then due in full following the end of any Accounting Period, any such
interim amounts left unpaid shall be paid from and to the extent of Operating Profit available therefor at the time
distributions are made following successive Accounting Periods until such interim amounts are paid in full, and such payments
shall be made from such available Operating Profit in the same order of priority as other payments made on account of such
items following such Accounting Periods. The portion of Operating Profit to be distributed as interim distributions to Tenant
as Tenant’s Priority, Ground Lease Rent and as Security Deposit Replenishment pursuant to Section 3.02.B for the
then-current Fiscal Year for each Hotel, as well as the portion of Operating Profit to be retained by Manager as the Base
Management Fee, the First Incentive Management Fee and the Second Incentive Management Fee pursuant to Section 3.02.B for
each Hotel, shall be determined by applying in each instance a cumulative prorated amount to such Tenant’s Priority,
Ground Lease Rent, Security Deposit Replenishment, Base Management Fee, First Incentive Management Fee and Second
Incentive Management Fee (calculated on a year-to-date basis, with the prorated amount being one-twelfth (1/12) of the total
amount for each of such items for each Accounting Period of each Fiscal Year) to the year-to-date cumulative Operating Profit
of such Hotel (all such portions being hereinafter collectively referred to as the “Prorated Portions”).
In each Accounting Period after the first Accounting Period of a Fiscal Year, inclusive, the Prorated Portions shall be
adjusted to reflect distributions to Tenant, and retention by Manager, of Operating Profit with respect to such Prorated
Portions for prior Accounting Periods during the then current Fiscal Year. All the distributions shall be made in the order
of priority as set forth in Section 3.02 hereof.

 

    14

     

    

 

B.                
Intentionally Deleted.

 

C.                
1.        Calculations and payments of the First Incentive Management Fee, the Second Incentive Management Fee, Tenant’s
Priority, and Ground Lease Rent for each Hotel and distributions of Operating Profit made with respect to each Accounting Period
within a Fiscal Year for each Hotel shall be accounted for cumulatively within a Fiscal Year, but shall not be cumulative from
one Fiscal Year to the next. Calculations and payments of any Base Management Fees or Reimburseable Advances payable pursuant to
Sections 3.02.B(3), (4) and (5) hereof and the Security Deposit Replenishment shall be accounted for cumulatively within a Fiscal
Year, and shall be cumulative from one Fiscal Year to the next. Calculations of Security Deposit Advances and Marriott Guaranty
Advances shall be accounted for cumulatively within a Fiscal Year.

 

2.       Within
sixty (60) days after the end of each Fiscal Year, Manager shall deliver to Tenant and Landlord a statement (the
 “Annual Operating Statement”) in reasonable detail summarizing the operations of the Hotels with respect
to which this Agreement was in effect for the immediately preceding Fiscal Year and an Officer’s Certificate certifying
that such Annual Operating Statement is true and correct. The parties shall, within ten (10) Business Days after
Tenant’s receipt of such statement, make any adjustments, by cash payment, in the amounts paid or retained for such
Fiscal Year as are needed because of the final figures set forth in such Annual Operating Statement; provided, however,
that for any period prior to the termination of the Pooling Agreement in accordance with its terms with respect to any of the
Hotels, the year-end adjustments for such Hotel shall be made pursuant to the Pooling Agreement. Such final accounting shall
be controlling over the interim accountings and shall be final subject to adjustments required as a result of an audit
requested by Landlord or Tenant below. No adjustment shall be made for any Operating Loss or Operating Profit for any Hotel
in a preceding or subsequent Fiscal Year.

 

    15

     

    

 

D.               
1.         In addition, on or before April 30 of each Fiscal Year, commencing on April 30, 2021, Manager shall deliver to
Tenant and Landlord an Officer’s Certificate setting forth the totals of Gross Revenues, Deductions, and the calculation
of the First Incentive Management Fee, the Security Deposit Replenishment and the Second Incentive Management Fee for each Hotel
with respect to which this Agreement was in effect for the preceding Fiscal Year. If Tenant desires, at its own expense, that an
audit be delivered with the delivery of an Officer’s Certificate, Tenant shall notify Manager in writing no later than February
1 of the Fiscal Year in which such Officer’s Certificate will be delivered. Such audit shall be completed by a firm of independent
certified public accountants proposed by Manager and approved by Tenant and Landlord (which approval shall not be unreasonably
withheld or delayed). Any dispute concerning the correctness of an audit shall be settled by an Expert in accordance with Section
11.23.B. Manager shall pay the cost of any such audit revealing an understatement of Operating Profit by more than five percent
(5%), and such amount shall not be a Deduction. Notwithstanding anything contained in this Agreement to the contrary, Manager shall
remain obligated to deliver an Officer’s Certificate as required by Section 4.01.D(1) of the Prior Management Agreement on
or before April 30, 2020. Tenant shall have the right to audit such Officer’s Certificate in accordance with the Prior Management
Agreement, and the parties shall make such adjustments with respect thereto as would be required under the Prior Management Agreement.

 

2.       If
the Security Deposit Replenishment or any other amounts due to Tenant as shown in the Officer’s Certificate provided
in Section 4.01.D(1) above for any Hotel exceed the amounts previously paid with respect thereto to Tenant, Manager shall
promptly pay such excess to Tenant at such time as the Officer’s Certificate is delivered, together with interest at
the Disbursement Rate, which interest shall accrue from the close of such preceding Fiscal Year until the date that such
certificate is required to be delivered and, thereafter, such interest shall accrue at the Overdue Rate, until the amount of
such difference shall be paid or otherwise discharged. Manager shall notify Tenant of such payment and the amount thereof and
Manager shall promptly render a statement to Tenant setting forth the adjustments required to be made to the distributions
under Section 3.02.B for such Fiscal Year and the parties shall promptly make, and cause their respective Affiliates to make,
any adjustments or additional payments or reimbursements required to comply with such revised statement. If the Security
Deposit Replenishment due as shown in the Officer’s Certificate for any Hotel is less than the amount previously paid
with respect thereto to Tenant, Tenant shall within ten (10) Business Days of receipt of written request from Manager, pay
such excess to Manager, together with interest at the Disbursement Rate, which interest shall accrue from the date of such
overpayment until it is repaid. Manager shall notify Tenant of the requirement of such payment and the amount thereof and
Manager shall promptly render a statement to Tenant setting forth the adjustments required to be made to the distributions
under Section 3.02.B for such Fiscal Year and the parties shall promptly make, and cause their respective Affiliates to make
promptly, any adjustments or additional payments or reimbursements required to comply with such revised statement.
Notwithstanding anything contained in this Agreement to the contrary, Manager and Tenant shall comply with their obligations
under Section 4.01.D(2) of the Prior Management Agreement with respect to the Officer’s Certificate to be delivered by
Manager on or before April 30, 2020.

 

    16

     

    

 

E.                
To the extent there is an Operating Loss for any Fiscal Year with respect
to a Hotel, Tenant shall have the right, without any obligation and in its sole and absolute discretion, to advance funds required
to fund such deficiency within twenty (20) days after Manager has delivered written notice thereof to Tenant; provided,
however, during any period in which any Hotel is subject to the Pooling Agreement, the determination of any Operating Loss
for such Hotel shall be made based on the aggregate of the Operating Profit and Operating Losses of all Portfolio Properties and
Tenant’s rights shall be governed by the terms and provisions of the Pooling Agreement. Any Operating Loss so funded by
Tenant shall constitute a “Tenant Operating Loss Advance.” If Tenant does not fund such Operating Loss in accordance
with the terms of this Section 4.01.E, then Manager shall also have the right, within twenty (20) days after such initial twenty
(20)-day period, without any obligation and in its sole and absolute discretion, to advance funds required to fund such Operating
Loss, and any such advance shall constitute an Additional Manager Advance with respect to such Hotel. Any Tenant Operating Loss
Advances and/or Additional Manager Advances shall be repaid in accordance with Section 3.02.B(4) hereof.

 

F.                 
1.       In addition, Manager shall provide Landlord and Tenant with information relating to the Hotels and public information
relating to Manager and its Affiliates that (a) may be required in order for Landlord or Tenant as the case may be to prepare
financial statements in accordance with GAAP or to comply with applicable securities laws and regulations and the SEC’s interpretation
thereof, (b) may be required for Tenant or Landlord to prepare federal, state or local tax returns, or (c) is of the
type that Manager customarily prepares for other hotel owners; provided, however, that (i) Manager reserves
the right, in good faith, at Manager’s expense, to challenge
and require Landlord and Tenant to use commercially reasonable efforts to challenge any assertion by the SEC, any other applicable
regulatory authority, or Landlord’s or Tenant’s independent public accountants that applicable law, regulations or
GAAP require the provision or publication of Proprietary Information, (ii) Landlord and Tenant shall not, without Manager’s
consent (which consent shall not be unreasonably withheld, delayed or conditioned), acquiesce to any such challenged assertion
until Landlord and Tenant have exhausted all reasonable available avenues of administrative review, and (iii) Landlord and
Tenant shall consult with Manager in pursuing any such challenge and will allow Manager to participate therein, at Manager’s
expense, if and to the extent that Manager so elects. Landlord and Tenant acknowledge that the foregoing does not constitute an
agreement by Manager either to join in Landlord and Tenant filing with or appearance before the SEC or any other regulatory authority
or to take or consent to any other action which would cause Manager to be liable to any third party for any statement or information
other than those statements incorporated by reference pursuant to clause (a) above.

 

2.       Subject
to such Person entering into a confidentiality agreement with Manager as Manager may reasonably require, Tenant may at any
time, and from time to time, provide copies of any of the statements furnished under this Section 4.01 to any Person which
has made or is contemplating making a Qualified Mortgage, or another lender, or a prospective lender with respect to one or
more of the Hotels.

 

    17

     

    

 

3.       In
addition, Landlord and Tenant shall have the right, from time to time at Landlord’s or Tenant’s (as the case may be)
sole cost and expense, upon reasonable written notice, during Manager’s customary business hours, to cause Manager’s
books and records with respect to the Hotels to be audited by auditors selected by Landlord or Tenant (as the case may be) at the
place or places where such books and records are customarily kept, provided that, prior to conducting such audit, Landlord or Tenant,
as the case may be, shall enter into a confidentiality agreement with Manager, such agreement to be in form and substance reasonably
satisfactory to Landlord or Tenant (as the case may be) and Manager.

 

4.02         
Books and Records.

 

A.               
Books of control and account pertaining to operations at the Hotels shall be kept on the accrual basis and in all material
respects in accordance with the Uniform System of Accounts and with GAAP (provided that, to the extent of a conflict between the
two, GAAP shall control over the Uniform System of Accounts), or in accordance with such industry standards or such other standards
with which Manager and its Affiliates are required to comply from time to time, with the exceptions, if any, provided in this Agreement
and the Pooling Agreement, to the extent applicable which will accurately record the Gross Revenues of the Hotels and applications
thereof. Manager shall retain, for at least three (3) years after the expiration of each Fiscal Year, reasonably adequate records
showing Gross Revenues and applications thereof for the Hotels for such Fiscal Year (which obligation shall survive termination
hereof).

 

B.                 Tenant
may at reasonable intervals during Manager’s normal business hours examine such books and records including, without
limitation, supporting data and sales and excise tax returns. If Tenant desires, at its own expense, to audit, examine, or
review the annual operating statement which is described in Section 4.01.C(2), Tenant shall notify Manager in writing
within one (1) year after receipt of such statement of its intention to audit and begin such audit within such one (1) year
after Manager’s receipt of such notice. Tenant shall use commercially reasonable efforts to complete such audit as soon
as practicable after the commencement thereof, subject to reasonable extension if Tenant’s or its accountant’s
inability to complete the audit within such time is caused by Manager. If Tenant does not make such an audit, then such
statement shall be deemed to be conclusively accepted by Tenant as being correct, and Tenant shall have no right thereafter,
except for adjustments made pursuant to an audit requested by Landlord under the Owner Agreement or in the event of fraud by
Manager, to question or examine the same. If any audit by Tenant or Landlord as aforesaid (1) discloses an understatement of
any net amounts due Tenant and its Affiliates, in the aggregate, hereunder (and, prior to the termination of the Pooling
Agreement in accordance with its terms with respect to the Hotels and the Other Management Agreements for the Fiscal Year in
question) Manager shall, and shall cause its Affiliates, to promptly pay Tenant such net amounts found to be due, plus
interest thereon at the Overdue Rate from the date such amounts should originally have been paid, or (2) discloses that
Manager and its Affiliates have not received, in the aggregate, any net amounts due them hereunder (and, prior to the
termination of the Pooling Agreement in accordance with its terms with respect to the Hotels and the Other Management
Agreements for the Fiscal Year in question), Tenant shall, and shall cause its Affiliates, to promptly pay Manager such net
amounts, plus interest thereon (at the Prime Rate plus one percent (1%) per annum) from the date such amounts should
originally have been paid. Manager shall promptly after completion of the adjustments required as a result of any such audit,
render a statement to Tenant setting for that adjustments required to be made to the distributions under Section 3.02.B for
such Fiscal Year which reflect all adjustments made to the amounts due Tenant, Marriott and/or Manager as a result of
such audit and the parties shall make and cause their respective Affiliates to make any adjustments or additional payments or
reimbursements required to comply with such revised statement. Any dispute concerning the correctness of an audit shall be
settled by the Expert in accordance with Section 11.23.B. Manager shall pay the cost of any audit revealing understatement of
Operating Profit by more than five percent (5%), and such amount shall not be a Deduction from Gross Revenues.

 

    18

     

    

 

C.                
Manager shall have the right, at its option, to provide Tenant with automated delivery, in electronic format, of the data
required under Sections 4.01.A, 4.01.C(2), 4.01.D(1), 4.02.A and 4.04 (consistent with the then-current standard operating procedures
generally employed by Manager with respect to other hotels in the System), which delivery may be by means of a link to an intranet
website of Manager or an Affiliate provided contemporaneous notice of the posting of data is provided to Tenant via electronic
mail to a person designated in writing by Tenant to Manager. The parties shall cooperate reasonably with each other in order to
adapt to new technologies that may be available with respect to the transmission of such data.

 

4.03         
Accounts, Expenditures.

 

A.               
Tenant irrevocably authorizes and directs Manager to pay, and Manager agrees to pay (or repay, as applicable), without notice,
demand or request therefor, but in each instance subject to the provisions of the Pooling Agreement, if applicable, and the Marriott
Guaranty Agreement, if applicable, with respect to each of the Hotels: (1) Tenant’s Priority to Tenant when due and
payable hereunder, (2) the Ground Lease Rent (if any) to Tenant, (3) the Base Management Fee to itself, (4) distributions
to Tenant, Marriott and/or Manager with respect to the Tenant Advances, Additional Marriott Advances and Additional Manager Advances,
(5) any accrued, but unpaid Base Management Fees to itself, (6) the First Incentive Management Fee to itself, (7) the
Security Deposit Replenishment to Tenant, (8) the Second Incentive Management Fee to itself, and (9) the remaining balance,
if any, to Tenant, in each of the foregoing instances set forth in this Section 4.03.A(1) through (9), at the time interim distributions
are made pursuant to Section 4.01 hereof (except as otherwise set forth herein), and to the extent of the sufficiency of, and in
the order of, distribution of Operating Profit under Section 3.02.B. Subject to Section 4.03.D, Manager is authorized to, and shall,
make all expenditures required to be made hereunder with respect to the operation of the Hotels, but only from funds available
for such payments under the terms of this Agreement or under the terms of the Pooling Agreement, if applicable, or under the Marriott
Guaranty Agreement, if applicable.

 

B.                 Notwithstanding
anything herein to the contrary, within sixty (60) days after the end of each Fiscal Year, Marriott or Manager shall
determine whether any Additional Manager Advance, any Additional Marriott Advance or any Marriott Guaranty Advance (pursuant
to the terms of the Marriott Guaranty Agreement) was made with respect to such Fiscal Year, and if Marriott or Manager has
made such an advance with respect to such Fiscal Year, then Marriott or Manager shall advise Tenant in writing of the
type and amount of such advance, and the balance of the Aggregate Amount Funded shall be deemed increased by the amount of
any Marriott Guaranty Advance.

 

    19

     

    

 

C.                
Subject to the terms of the Pooling Agreement, as appropriate, all escrow reserve accounts and funds derived from the operation
of the Hotels shall be deposited by Manager in a bank account(s) in a bank designated by Manager. Withdrawals from said accounts
shall be made solely by representatives of Manager whose signatures have been authorized. Reasonable petty cash funds shall be
maintained at the Hotels.

 

D.               
Manager shall not be required to make any advance or payment hereunder or to or for the account of Tenant except out of
funds available therefor pursuant to the terms of this Agreement except as otherwise set forth herein or in any of the Incidental
Documents, and Manager shall not be obligated to incur any liability or obligation for Tenant’s account without assurances
satisfactory to Manager that necessary funds for the discharge thereof will be provided by Tenant. In any event, if any such liability
or obligation is incurred by Manager for Tenant’s account and Marriott does not have funds available under the Pooling Agreement
or Manager does not have funds hereunder if the Pooling Agreement is not in effect with respect to the applicable Hotel, to pay
such amount on or before twenty (20) days after the end of the Accounting Period in which such liability or obligation was paid,
the amount advanced to pay such obligation shall be an Additional Manager Advance which shall be repaid as provided in Section
3.02.B hereof.

 

4.04         
Annual Operating Projection. Manager shall furnish to Tenant for its review, at least thirty (30) days prior to the
beginning of each Fiscal Year (or such earlier date if that becomes the prevailing practice within the System), a statement of
the estimated financial results of the operation of each such Hotel for the forthcoming Fiscal Year (“Annual Operating
Projection”). Such projection shall project the estimated Gross Revenues, departmental profits, Deductions, and Operating
Profit for the ensuing Fiscal Year for each such Hotel. Manager agrees to take reasonable steps to ensure that, at Tenant’s
request, qualified personnel from Manager’s staff are available to explain such Annual Operating Projections to Tenant. A
meeting (or meetings) for such purpose shall be held, at Tenant’s request, within a reasonable period of time after the submission
to Tenant of the Annual Operating Projection. Manager will at all times give good faith consideration to Tenant’s suggestions
regarding any Annual Operating Projection. Manager shall thereafter submit to Tenant, by no later than seventy-five (75) days after
the beginning of such Fiscal Year, a modified Annual Operating Projection if any changes are made following receipt of comments
from Tenant. Manager shall endeavor to adhere to the Annual Operating Projection. It is understood, however, that the Annual Operating
Projection is an estimate only and that unforeseen circumstances such as, but not limited to, the costs of labor, material, services
and supplies, casualty, operation of law, or economic and market conditions may make adherence to the Annual Operating Projection
impracticable, and Manager shall be entitled to depart therefrom due to causes of the foregoing nature; provided, however,
that nothing herein shall be deemed to authorize Manager to take any action prohibited by this Agreement or to reduce Manager’s
other rights or obligations hereunder.

 

4.05         
Working Capital.

 

A.               
Subject to the terms of the Pooling Agreement, upon written notice from Manager, Tenant shall, within ten (10) Business
Days of Manager’s request, advance funds necessary to maintain Working Capital at levels determined by Manager to be reasonably
necessary to satisfy the needs of the Hotels as their operation may from time to time require (such additional funds, the “Additional
Working Capital”). Any such request by Manager shall be accompanied by a reasonably detailed explanation of the reasons
for the request. All Additional Working Capital shall be utilized by Manager on behalf of Tenant for the purposes of this Agreement
pursuant to cash-management policies established for the System; provided, however, that so long as any of the Hotels
are subject to the Pooling Agreement, the Working Capital for such Hotels will be pooled with working capital provided under the
Other Management Agreements and may be used to fund working capital needs for all Portfolio Properties. If Tenant fails to timely
fund such Additional Working Capital within ten (10) Business Days after Manager’s request for the same, then, without affecting
Manager’s other rights and remedies under this Agreement, Manager shall have the right, without any obligation and in its
sole and absolute discretion, to advance such Additional Working Capital within ten (10) Business Days after such initial ten
(10)-Business Day period, and all such advances shall constitute Tenant Working
Capital Advances or Additional Manager Advances, as applicable, and shall be repaid as provided in Section 3.02.B(4) hereof.

 

    20

     

    

 

B.                
Subject to the Pooling Agreement, upon a Termination, Manager shall disburse to Tenant all Working Capital remaining after
payment of all Deductions and all amounts owed to Manager hereunder and amounts payable by Tenant hereunder (including funds to
be held in escrow under Sections 6.01.B(2)(e) and 11.11.I).

 

4.06         
Fixed Asset Supplies. Any Fixed Asset Supplies that are necessary to maintain Fixed Asset Supplies at levels determined
by Manager to be necessary to satisfy the needs of each Hotel, as their operation may from time to time require, shall be paid
from Gross Revenues of such Hotel as Deductions. Such additional Fixed Asset Supplies shall remain the property of Tenant throughout
the Term of this Agreement and upon Termination, except for Fixed Asset Supplies purchased by Manager pursuant to Section 11.11.E.

 

ARTICLE V

 

REPAIRS, MAINTENANCE AND REPLACEMENTS

 

5.01          Manager’s
Maintenance Obligation. Except as provided in Section 5.02 hereof, and subject to the availability of sufficient funds in
the applicable Reserves, Manager shall maintain the Hotels including all private roadways, sidewalks and curbs located
thereon in good order and repair, reasonable wear and tear excepted (whether or not the need for such repairs occurs as a
result of Tenant’s or Manager’s use, any prior use, the elements or the age of the Hotels, or any portion
thereof), and in conformity with Legal Requirements, System Standards and any Existing CC&Rs or Future CC&Rs (which
Future CC&Rs must be approved in writing by Manager if the same may be reasonably expected to interfere in any material
way with the operation of or financial performance of a Hotel). Except as provided in Section 5.02 hereof, and subject to the
availability of sufficient funds in the applicable Reserve for each Hotel with respect to capital items, and the sufficiency
of Gross Revenue and Working Capital for each Hotel otherwise, in each instance, as applicable, Manager shall promptly make
or cause to be made all necessary and appropriate repairs, replacements, renewals, and additions thereto of every kind and
nature, whether interior or exterior, structural or nonstructural, ordinary or extraordinary, foreseen or unforeseen or
arising by reason of a condition existing prior to the commencement of the Term (concealed or otherwise). All repairs,
renovations, alterations, improvements, renewals, replacements or additions shall be made in a good, workmanlike manner,
consistent with Manager’s and industry standards for like hotels in like locales, in accordance with all applicable
federal, state and local statutes, ordinances, by-laws, codes, rules and regulations relating to any such work. Subject to
the availability of sufficient funds in the applicable Reserve for each Hotel or otherwise available pursuant to this
Agreement, Manager shall not take or omit to take any action, with respect to the Hotel (and not the System as a whole) the
taking or omission of which would materially and adversely impair the value of any Hotel or any part thereof for its use as a
hotel. The cost and expense incurred in connection with Manager’s obligations hereunder shall be paid either from funds
provided by Tenant or Landlord as provided for herein, Gross Revenues, Working Capital or from the Reserves, pursuant to
Sections 5.02 and 5.03 below.

 

    21

     

    

 

5.02         
Repairs and Maintenance to be Paid from Gross Revenues. Manager shall promptly make or cause to be made, such routine
maintenance, repairs and minor alterations as it determines are necessary to comply with Manager’s obligations under Section
5.01. The phrase “routine maintenance, repairs, and minor alterations” as used in this Section 5.02 shall include only
those which are normally expensed under GAAP. The cost of such maintenance, repairs and alterations shall be paid from Gross Revenues
for such Hotel (and not from such Hotel’s Reserves) and shall be treated as a Deduction in determining Operating Profit for
such Hotel.

 

5.03         
Items to be Paid from Reserves.

 

A.               
To the extent funds are in the applicable Reserves for each Hotel or such funds are provided by Tenant or Landlord under
Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary
to comply with Manager’s obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable
Reserve and not from Gross Revenues of a Hotel.

 

B.                
Manager has established for each Hotel, and currently holds funds in, an interest bearing escrow reserve account (each,
a “Reserve” and collectively, the “Reserves”), which Reserves shall not be comingled with
any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager and
reasonably acceptable to Tenant and Landlord, to cover the cost of:

 

1.                 
Replacements, renewals and additions related to the FF&E at each Hotel; and

 

2.                 
Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements
or replacements and maintenance to each Hotel which are normally capitalized (as opposed to expensed) under GAAP, such as exterior
and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like
(but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each Hotel’s structure,
roof, or exterior façade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical
transportation systems); and

 

3.                  Major
repairs, renovations, additions, alterations, improvements, renewals or replacements to each Hotel including,
without limitation, with respect to its structure, roof, or exterior façade, and to its mechanical, electrical,
heating, ventilating, air conditioning, plumbing or vertical transportation systems; and

 

    22

     

    

 

4.                 
All lease payments for equipment and other personal property reasonably necessary for the operation of each Hotel; and

 

C.                
Manager shall transfer into the Reserve for each Hotel the amounts as provided on the applicable Addendum. Transfers into
each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred to
each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited
in the Reserve account described in Section 5.03.B.

 

D.               
Manager shall from time to time, with respect to each Hotel, make expenditures for the items described in Sections 5.03.B(1),
(2), (3), and (4), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts
remaining in the Reserve for a Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer
necessary to the operation of a Hotel shall be added to the Reserve for such Hotel, and shall not be included in Gross Revenue
for such Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained
in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held
in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C
above, nor (b) be included in Gross Revenues.

 

5.04         
Reserve Estimates. Manager shall prepare and deliver to Tenant and Landlord for their review, at the same time the
Annual Operating Projection is submitted, an estimate for each Hotel (each, a “Reserve Estimate”) of the Reserve
expenditures necessary during the forthcoming Fiscal Year for (1) replacements, renewals, and additions to the FF&E of
such Hotel and (2) repairs, renovations, additions, alterations, improvements, renewals or replacements to such Hotel of the
nature described in Section 5.03.B, for the forthcoming Fiscal Year. Manager agrees to take reasonable steps to ensure that, at
Tenant’s or Landlord’s request, qualified personnel from Manager’s staff are available to explain each proposed
Reserve Estimate with respect to expenditures described in Section 5.03.B(3). A meeting (or meetings) for such purpose shall be
held, at Tenant’s or Landlord’s request, within a reasonable period of time after the submission to Tenant or Landlord
of the applicable Reserve Estimate. Any disputes as to items in each Reserve Estimate for expenditures described in Section 5.03.B(3)
shall be resolved as set forth in Sections 5.07.C and 5.07.D hereof. Such expenditures shall be funded from the applicable Reserve
to the extent funds are available therefor or from funds provided under Section 5.07 hereof.

 

5.05         
Additional Requirements for Reserves.

 

A.               
All expenditures from the Reserves shall be (as to both the amount of each such expenditure and the timing thereof) both
reasonable and necessary given the objective that the Hotels will be maintained and operated to a standard comparable to competitive
properties and in accordance with the System Standards.

 

B.                 Manager
shall provide to Tenant and Landlord within forty (40) Business Days after the end of each Accounting Period, a statement
setting forth, on a line item basis, Reserve expenditures made to date and any variances or anticipated variances
and/or amendments from the applicable Reserve Estimate.

 

    23

     

    

 

C.                
Notwithstanding anything contained herein to the contrary, it is understood and agreed that so long as the Pooling Agreement
is applicable to the Hotels, the Reserves pursuant to this Agreement and the Other Management Agreements to which the Pooling Agreement
is then applicable shall be maintained and used on a pooled basis such that all Reserve funds shall be deposited in a single account
and Manager and the managers under the Other Management Agreements may apply any funds therein to any of the Portfolio Properties
in accordance with the terms of this Agreement, the Other Management Agreements, and the Pooling Agreement.

 

D.               
Other than Tenant’s or Manager’s personal property, all materials which are scrapped or removed in connection
with the making of any major or non-major repairs, renovation, additions, alterations, improvements, removals or replacements as
described in Section 5.03.B above, or Section 5.08 below should be disposed of by Manager and the net proceeds thereof shall be
deposited in the applicable Reserve and not included in Gross Revenue.

 

5.06         
Ownership of Replacements. All repairs, renovations, additions, alterations, improvements, renewals or replacements
made pursuant to this Article V, and all amounts kept in the Reserves, shall, except as otherwise provided in this Agreement, be
the property of Tenant or Landlord, as applicable, as provided under the Lease.

 

5.07         
Obligation to Provide Additional Reserve Funds.

 

A.               
Notwithstanding anything contained herein to the contrary, no expenditures in excess of the applicable Reserves shall be
made without the approval of Tenant during the last two (2) years of a Lease Term (unless Tenant has exercised its rights for a
renewal term under the Lease) except those required by reason of or under any Insurance Requirement or Legal Requirement, or otherwise
required for the continued safe and orderly operation of each Hotel.

 

B.                
If, at any time, the funds in any Reserve shall be insufficient or are reasonably projected to be insufficient for necessary
and permitted expenditures thereof, Manager shall give Landlord and Tenant written notice thereof, which notice shall set forth,
in reasonable detail, the nature of the required or permitted action, the estimated cost thereof (including the amount which is
in excess of the amount of funds in such Reserve) and such other information with respect thereto as Landlord or Tenant may reasonably
require, and the following shall apply: Provided that (1) there then exists no Manager Default that has a material adverse effect
on Tenant and which arises from acts or failures to act by Manager with respect to such Hotel, and (2) Manager shall comply with
the provisions of Section 5.08 hereof, if applicable, Tenant shall, within thirty (30) Business Days after such notice, or such
later date as Manager may direct by reasonable prior notice, disburse (or cause Landlord to disburse) such required funds to Manager
for deposit into the Reserves as one or more lump sum contributions, in which event Tenant’s Priority with respect to such
Hotel shall be adjusted as provided for herein in the definition of Tenant’s Priority and the Addendum for such Hotel shall
be revised in accordance therewith.

 

C.                 If
Landlord or Tenant disputes Manager’s request for a lump sum contribution to a Reserve, Manager shall attempt to
resolve such dispute through negotiation. If after one meeting (or conference call) of direct negotiations between Manager
and Landlord or Tenant, as applicable, any party determines that open issues cannot be resolved within sixty (60) days, such
matters shall be settled by the Expert in accordance with Section 11.23.B. Tenant and Landlord shall, to the extent possible,
identify items in dispute on a line by line basis.

 

    24

     

    

 

D.               
A failure or refusal by Landlord or Tenant to provide the additional funds required in accordance with Section 5.07.B above
within the time period set forth in Section 5.07.B (including after any Expert resolution pursuant to Section 11.23.B, if applicable)
shall entitle Manager, at its option, to notify Landlord and Tenant in writing that Manager may terminate this Agreement with
respect to the applicable Hotel. If Tenant does not deposit in such Reserve the additional funds required in accordance with Section
5.07.B within thirty (30) days after receipt of such notice of intent to terminate, Manager may, in its sole and absolute discretion,
(i) elect to terminate this Agreement with respect to the applicable Hotel by written notice to Tenant and this Agreement shall
terminate with respect to such Hotel as of the date that is one hundred eighty (180) days after the date of Tenant’s receipt
of Manager’s termination notice, and which Termination shall otherwise be in accordance with the provisions of Section 11.11
hereof (an “FF&E Termination”), or (ii) exercise any remedy available at law or in equity (except
as specifically limited herein). If Manager elects to effect an FF&E Termination,
then, at Manager’s election and direction, Tenant shall enter into a franchise agreement with Marriott for such applicable
Hotel (such an event, a “Franchise Conversion”), and Tenant shall satisfy the requirements set forth
on Exhibit C. Notwithstanding the foregoing, Manager may advance the needed Reserve funds if (1) such funds are
required in order for the Hotel to comply with System Standards related to the health or safety of persons or property on or about
such Hotel; (2) such funds are required by reason of or under any Insurance Requirement or Legal Requirement, or otherwise
required for the continued safe and orderly operation of such Hotel; (3) there is an emergency threatening such Hotel or
the life or property of such Hotel’s guests; or (4) the failure to take remedial action may subject Manager, Landlord,
Tenant, their Affiliates or any of their respective directors, managers, officers or employees to civil or criminal liability
(other than de minimis civil fines or fees) (in each case, the “Emergency Funding”). Tenant agrees and authorizes
Manager to reimburse Manager for such Emergency Funding from future Reserves of such Hotel, unless Manager elects to treat such
Emergency Funding as an Additional Manager Advance with respect to the Hotel.

 

5.08         
Additional Requirements Relating to Certain Capital Improvements.

 

A.                Prior
to commencing construction of any additions or modifications to any structural element of any Hotel, the cost of which is
reasonably estimated to exceed $300,000, as adjusted as provided below (other than Renovations made pursuant to the
Renovation-Related Agreements) (a “Capital Addition”) (other than any Capital Addition which is reasonably
required to be made immediately in order to prevent imminent damage or danger to person or property or to subject Manager,
Tenant or Landlord to criminal liability), Manager shall submit, to Tenant and Landlord in writing, a proposal setting forth,
in reasonable detail, any such proposed improvement and cost estimate therefor and shall provide to Tenant and to Landlord
such plans and specifications, and such permits, licenses, contracts and such other information concerning the same as
Landlord or Tenant may reasonably request. Landlord and Tenant shall have twenty (20) Business Days to approve or disapprove
all materials submitted to Landlord or Tenant, as the case may be, in connection with any such proposal. Failure of Landlord
or Tenant to respond to Manager’s proposal within twenty (20) Business Days after receipt of all information and
materials requested by Landlord or Tenant (if applicable) in connection with the proposed improvement shall be deemed to
constitute approval of the same by the failing party.

 

    25

     

    

 

B.                
In the event any dispute shall arise with respect to the withholding of any approval by either Landlord or Tenant, Manager
shall meet with Landlord and Tenant to discuss the objections of Landlord or Tenant, and Manager, Landlord and Tenant shall attempt
in good faith to resolve any disagreement relating to the proposal submitted by Manager. If after sixty (60) days such disagreement
has not been resolved, any party may submit the issue to the Expert in accordance with Section 11.23.B. No Capital Addition shall
be made which would tie-in or connect a Hotel with any other improvements on property adjacent to such Hotel (and not part of the
Site) including, without limitation, tie-ins of buildings or other structures or utilities (other than connections to public utilities).
Manager shall not finance the cost of any construction of such improvements by the granting of a lien on, or security interest
in, such Hotel or Manager’s interest therein without the prior written consent of Landlord, which consent may be in Landlord’s
sole discretion.

 

C.                
The $300,000 limit referred to above shall be increased from time to time to an amount equal to $300,000 multiplied by a
fraction, the denominator of which shall be the Index for the nearest month prior to the Effective Date and the numerator of which
shall be the Index for the nearest month for which the Index is available prior to the first day of the Accounting Period in which
such determination is being made.

 

D.               
Landlord and Tenant may not withhold their approval of any Capital Addition described in this Section 5.08 if (1) such
Capital Addition is required in order for the Hotels to comply with System Standards; (2) such Capital Addition is required
by reason of or under any Insurance Requirement or Legal Requirement, or otherwise required for the continued safe and orderly
operation of each Hotel; (3) such Capital Addition is required by reason of an emergency threatening the Hotel or the life
or property of Hotel guests; or (4) the failure to take remedial action may subject Manager, Landlord, Tenant, their Affiliates
or any of their respective directors, managers, officers or employees to civil or criminal liability (other than de minimis civil
fines or fees). If Manager takes such action, then it will promptly notify Tenant.

 

ARTICLE VI

 

INSURANCE, DAMAGE AND CONDEMNATION

 

6.01         
Insurance. Tenant and Manager will comply with their respective obligations under the insurance provisions in Exhibit D.
Tenant and Manager hereby agree that, as of the Effective Date, Manager will procure and maintain property insurance for the Hotels
pursuant to Section 6.01.A of Exhibit D; provided; however, that Tenant may elect to procure and maintain such property
insurance subject to and in accordance with the provisions of Section 6.01.A of Exhibit D.

 

6.02         
Damage and Repair.

 

A.                If,
during the Term with respect to any Hotel, such Hotel shall be totally or partially destroyed and the Hotel is
thereby rendered Unsuitable for Its Permitted Use, (1) Manager may terminate this Agreement with respect to such Hotel
by sixty (60) days’ written notice to Tenant and Landlord (which Termination shall not be deemed due to a Manager
Default), or (2) if the Lease has been terminated as a result of such casualty, Tenant may terminate this Agreement with
respect to such Hotel by written notice to Manager and Landlord, whereupon, this Agreement and the Lease, with respect to
such Hotel, shall terminate and Landlord shall be entitled to retain the insurance proceeds payable on account of such
damage.

 

    26

     

    

 

B.                
If, during the Term with respect to any Hotel, such Hotel is damaged or destroyed by fire, casualty or other cause but is
not rendered Unsuitable for Its Permitted Use and the Lease is not terminated in accordance with its terms with respect to such
Hotel, subject to Sections 6.02.C and 6.02.D below, and provided there then exists no Manager Default which arises from acts or
failures to act by Manager with respect to such Hotel, then Tenant shall forward to Manager the funds necessary to repair or replace
the damaged or destroyed portion of the Hotel to the same condition as existed previously and Manager shall have the right to discontinue
operating the Hotel to the extent it deems necessary to comply with applicable law, ordinance, regulation or order or as necessary
for the safe and orderly operation of the Hotel.

 

C.           
1.        If the cost of the repair or restoration of a Hotel is less than the sum of the deductible plus the amount of insurance
proceeds received by Landlord or Tenant, Tenant shall be required to make available the funds necessary (minus the amount of such
deductible) to cause such Hotel to be repaired and restored to the extent of such insurance proceeds. The amount of such deductible
shall be funded first from the Reserve for the applicable Hotel, and to the extent such Reserve is insufficient therefor, the balance
shall be funded by Tenant, and any such funding by Tenant shall result in an adjustment to Tenant’s Priority with respect
to such Hotel as if Tenant had made a lump sum deposit into the Reserve for such Hotel, in the manner set forth in the definition
of Tenant’s Priority, and the Addendum applicable to such Hotel shall be revised in accordance therewith.

 

2.       If
the cost of the repair or restoration of such Hotel exceeds the amount of insurance proceeds received by Landlord, plus the deductible
amount, Manager shall give notice to Tenant and Landlord setting forth in reasonable detail the nature of such deficiency, and
Tenant shall promptly thereafter advise Manager in writing whether Tenant shall pay and assume the amount of such deficiency (Tenant
having no obligation to do so, except that, if Tenant shall elect to make such funds available, the same shall become an irrevocable
obligation of Tenant). In the event Tenant shall elect not to pay and assume the amount of such deficiency, Landlord shall have
the right (but not the obligation), exercisable at Landlord’s sole election by written notice to Tenant and Manager, given
within sixty (60) days after Manager’s notice of the deficiency, to elect to make available for application to the cost of
repair or restoration the amount of such deficiency. In the event that neither Landlord nor Tenant shall elect to make such deficiency
available for restoration, (a) Manager may effect Termination of this Agreement with respect to such Hotel by written notice
to Tenant and Landlord (which Termination shall not be deemed due to a Manager Default), or (b) if the Lease has been terminated
with respect to such Hotel as a result of such casualty, Tenant may effect a Termination of this Agreement with respect to such
Hotel by written notice to Manager and Landlord, whereupon, this Agreement shall terminate with respect to such Hotel as provided
in Section 6.02.A.

 

    27

     

    

 

D.                
In the event Tenant is required to make available the funds necessary to restore a Hotel, Tenant shall promptly do so and
such funds shall be used to perform the repair and restoration of such Hotel, so as to restore such Hotel in compliance with all
Legal Requirements and so that such Hotel shall be, to the extent practicable, substantially equivalent in value and general utility
to its general utility and value immediately prior to such damage or destruction and in compliance with System Standards. Manager
shall, at Tenant’s request, provide general supervisory services with respect to completion of such work as part of the services
provided hereunder in consideration of the management fees paid to Manager; however, Manager shall not be obligated to provide
additional secure services unless Tenant and Manager enter into separate arrangements to provide such services and for stated additional
consideration. Subject to the terms of the Lease, Landlord shall advance the insurance proceeds and any additional amounts payable
by Landlord pursuant to this Section 6.02.D to Tenant regularly during the repair and restoration period so as to permit payment
for the cost of any such restoration and repair. Any such advances shall be made not more than monthly within ten (10) Business
Days after Tenant submits to Landlord a written requisition and substantiation therefor on AIA Forms G702 and G703 (or on such
other form or forms as may be reasonably acceptable to Landlord). Landlord may, at its option, condition advancement of said insurance
proceeds and other amounts on (i) the absence of an Event of Default (as defined in the Lease), (ii) its approval of
plans and specifications of an architect satisfactory to Landlord (which approval shall not be unreasonably withheld or delayed),
(iii) general contractors’ estimates, (iv) architect’s certificates, (v) unconditional lien waivers
of general contractors, if available, (vi) evidence of approval by all governmental authorities and other regulatory bodies
whose approval is required and (vii) such other certificates as Landlord may, from time to time, reasonably require.

 

E.                
If this Agreement is not otherwise terminated with respect to a totally or partially destroyed Hotel as permitted herein,
and Landlord and/or Tenant makes funds available to repair and restore any such Hotel, then, except for deductibles which are addressed
in Section 6.02.C above, any reserves, losses, costs or expenses which are uninsured or are not otherwise self-insured because
the same are not required to be insured or self-insured hereunder (as applicable, the “Uninsured Costs”), shall
be accounted for in accordance with the following sentence. Effective as of the first day of the Accounting Period immediately
following the completion of the repair or restoration of the Hotel (or, if the Hotel, or any portion thereof, was closed as a result
of the damage or destruction, then as of the first day of the Accounting Period immediately following the date the Hotel, or such
portion thereof, is reopened), the Tenant’s Priority with respect to such Hotel shall be the greater of (i) the Tenant’s
Priority for such Hotel as of the day immediately preceding any such damage or destruction, or (ii) eight percent (8%) multiplied
by the total cost (including any Uninsured Costs) to repair and restore the Hotel in accordance with the terms of this Agreement.

 

F.                 
All business interruption insurance proceeds shall be paid to Manager and included in Gross Revenues. Any casualty which
does not result in a Termination of this Agreement with respect to the applicable Hotel shall not excuse the payment of sums due
to Tenant hereunder with respect to such Hotel.

 

G.               
Manager hereby waives any statutory rights of termination which may arise by reason of any damage to or destruction of any
Hotel.

 

    28

     

    

 

6.03         
Damage Near End of Term. Notwithstanding any provisions of Section 6.01, Section 6.02 or Exhibit D hereof
to the contrary, if damage to or destruction of any Hotel occurs during the last twelve (12) months of the Term (including any
exercised Renewal Term) and if such damage or destruction cannot reasonably be expected to be fully repaired and restored prior
to the date that is nine (9) months prior to the end of such Term (including any exercised Renewal Term), then the provisions of
Section 6.02.A shall apply as if such Hotel had been totally or partially destroyed and such Hotel operated thereon rendered Unsuitable
for Its Permitted Use.

 

6.04         
Condemnation. If either (i) the whole of a Hotel shall be taken by Condemnation, or (ii) a Condemnation
of less than the whole of a Hotel renders such Hotel Unsuitable for Its Permitted Use, then this Agreement shall terminate and
Tenant and Landlord shall seek the Award for their interests in such Hotel as provided in the Lease. In addition, Manager shall
have the right to initiate such proceedings as it deems advisable to recover any damages to which Manager may be entitled; provided,
however, that Manager shall be entitled to retain the award or compensation it may obtain through such proceedings which
are conducted separately from those of Tenant and Landlord only if such award or compensation does not reduce the award or compensation
otherwise available to Tenant and Landlord. For this purpose, any award or compensation received by any holder of a Mortgage on
a Hotel shall be deemed to be an award of compensation received by Landlord.

 

6.05         
Partial Condemnation. In the event of a Condemnation of less than the whole of a Hotel such that such Hotel is not
rendered Unsuitable for Its Permitted Use, Manager shall, to the extent of the Award and any additional amounts disbursed by Tenant
or Landlord as hereinafter provided, commence promptly and continue diligently to restore the untaken portion of such Hotel so
that such Hotel shall constitute a complete architectural unit of the same general character and condition (as nearly as may be
possible under the circumstances) as the Hotel located thereon existing immediately prior to such Condemnation, in full compliance
with all Legal Requirements, subject to the provisions of this Section 6.05. Manager shall, at Tenant’s request, provide
general supervisory services with respect to completion of such work as part of the services provided hereunder in consideration
of the management fees paid to Manager, however, Manager shall not be obligated to provide additional services unless Tenant and
Manager enter into separate arrangements to provide such services and for stated additional consideration. If the cost of the repair
or restoration of the Hotel exceeds the amount of the Award, then Manager shall give Landlord and Tenant written notice thereof,
which notice shall set forth in reasonable detail the nature of such deficiency, and Tenant shall promptly thereafter advise Manager
in writing whether Tenant will pay and assume the amount of such deficiency (Tenant having no obligation to do so, except that
if Tenant shall elect to make such funds available, the same shall become an irrevocable obligation of Tenant pursuant to this
Agreement). In the event Tenant shall elect not to pay and assume the amount of such deficiency, Landlord shall have the right
(but not the obligation), exercisable at Landlord’s sole election by notice to Tenant and Manager given within sixty (60)
days after Tenant’s notice of the deficiency, to elect to make available for application to the cost of repair or restoration
the amount of such deficiency. In the event neither Landlord nor Tenant shall elect to make such deficiency available for restoration,
either Manager or Tenant may terminate this Agreement with respect to such Hotel.

 

    29

     

    

 

6.06          Disbursement
of Award. Subject to the terms hereof, Tenant or Landlord, as applicable, shall contribute to the cost of restoration
that part of the Award necessary to complete such repair or restoration, together with severance and other damages awarded
for such Hotel and any deficiency Tenant or Landlord, as applicable, has agreed to disburse, to Manager regularly during the
restoration period so as to permit payment for the cost of such repair or restoration. Landlord may, at its option,
condition advancement of such Award and other amounts on (i) the absence of any Manager Event of Default, (ii) its
approval of plans and specifications of an architect satisfactory to Landlord (which approval shall not be unreasonably
withheld or delayed), (iii) general contractors’ estimates, (iv) architect’s certificates,
(v) unconditional lien waivers of general contractors, if available, (vi) evidence of approval by all governmental
authorities and other regulatory bodies whose approval is required, and (vii) such other certificates as Landlord may,
from time to time, reasonably require. Landlord’s and Tenant’s obligation under this Section 6.06 to disburse the
Award and such other amounts shall be subject to (x) the collection thereof by Landlord and (y) the satisfaction of
any applicable requirements of any Qualified Mortgage, and the release of such Award by the applicable Mortgagee.
Tenant’s obligation to restore the applicable Hotel shall be subject to the release of the Award to Landlord by the
applicable Mortgagee under a Qualified Mortgage.

 

6.07         
Temporary Condemnation. In the event of any temporary Condemnation of a Hotel or Tenant’s interest therein,
this Agreement shall continue in full force and effect. The entire amount of any Award made for such temporary Condemnation allocable
to the Term, whether paid by way of damages, rent or otherwise, shall be paid to Manager and shall constitute Gross Revenues. Tenant
shall, promptly upon the termination of any such period of temporary Condemnation, at its sole cost and expense, restore such Hotel
to the condition that existed immediately prior to such Condemnation, in full compliance with all Legal Requirements, unless such
period of temporary Condemnation shall extend beyond the expiration of the Term, in which event Tenant shall not be required to
make such restoration. For purposes of this Section 6.07, a Condemnation shall be deemed to be temporary if the period of such
Condemnation is not expected to, and does not, exceed twelve (12) months.

 

6.08         
Allocation of Award. Except as provided in Sections 6.06 and 6.07 and the second and third sentences of this Section
6.08, the total Award shall be solely the property of and payable to Landlord. Any portion of the Award made for the taking of
Tenant’s leasehold interest in a Hotel, loss of business, the taking of Tenant’s Personal Property, or Tenant’s
removal and relocation expenses shall be the sole property of, and payable to, Tenant. Any portion of the Award made for the taking
of Manager’s interest in a Hotel or Manager’s loss of business during the remainder of the Term hereof shall be the
sole property of, and payable to, Manager, subject to the provisions of Section 6.04 hereof. In any Condemnation proceedings, Landlord,
Tenant, and Manager shall each seek its own Award in conformity herewith, at its own expense.

 

6.09         
Effect of Condemnation. Any condemnation which does not result in a Termination of this Agreement in accordance with
its terms with respect to the applicable Hotel shall not excuse the payment of sums due to Tenant hereunder with respect to such
Hotel and this Agreement shall remain in full force and effect.

 

    30

     

    

 

ARTICLE VII

 

TAXES; OTHER CHARGES

 

7.01         
Real Estate and Personal Property Taxes.

 

A.               
Subject to Section 11.24 relating to permitted contests, Manager shall pay, from Gross Revenues for each Hotel, all Impositions
with respect to such Hotel, before any fine, penalty, interest or cost (other than any opportunity cost as a result of a failure
to take advantage of any discount for early payment) may be added for non-payment, such payments to be made directly to the taxing
authorities where feasible, and shall promptly, upon request, furnish to Landlord and Tenant copies of official receipts or other
reasonably satisfactory proof evidencing such payments. Any such payments shall be a Deduction in determining Operating Profit
for such Hotel. If any such Imposition may, at the option of the taxpayer, lawfully be paid in installments (whether or not interest
shall accrue on the unpaid balance of such Imposition), Manager may exercise the option to pay the same (and any accrued interest
on the unpaid balance of such Imposition) in installments and, in such event, shall pay such installments during the Term as the
same become due and before any fine, penalty, premium, further interest or cost may be added thereto. Manager shall, upon request,
provide such data as is maintained by Manager with respect to any Hotel as may be necessary to prepare any required returns and
reports by Landlord or Tenant.

 

Tenant shall give,
and will use reasonable efforts to cause Landlord to give, copies of official tax bills and assessments which it may receive with
respect to any Hotel and prompt notice to Tenant and Manager of all Impositions payable by Tenant under the Lease of which Tenant
or Landlord, as the case may be, at any time has knowledge; provided, however, that Landlord’s or Tenant’s
failure to give any such notice shall in no way diminish Manager’s obligation hereunder to pay such Impositions (except that
Landlord or Tenant, as applicable, shall be responsible for any interest or penalties incurred as a result of Landlord’s
or Tenant’s, as applicable, failure promptly to forward the same).

 

B.                
The word “Impositions” as used in this Agreement shall include, but not be limited to, franchise taxes
under the laws of the State(s) and gross receipt or general excise taxes or sales taxes payable on (i) Rent payable to Landlord,
(ii) all sums payable to Tenant pursuant to this Agreement (or the Pooling Agreement with respect to Hotels to which the Pooling
Agreement is applicable), and (iii) all sums payable to Manager pursuant to this Agreement as System Fees or Management Fees
(or pursuant to the Pooling Agreement with respect to Hotels to which the Pooling Agreement is applicable), if any, but shall not
include the following, all of which shall be paid from the applicable Reserve, and not from Gross Revenues:

 

1.                 
Special assessments (regardless of when due or whether they are paid as a lump sum or in installments over time) imposed
because of facilities which are constructed by or on behalf of the assessing jurisdiction (for example, roads, sidewalks, sewers,
culverts, etc.) which directly benefit a Hotel (regardless of whether or not they also benefit other buildings), which assessments
shall be treated as capital costs of construction and not as Deductions; and

 

    31

     

    

 

2.                 
“Impact Fees” (regardless of when due or whether they are paid as a lump sum or in installments over time) which
are required as a condition to the issuance of site plan approval, zoning variances or building permits, which impact fees shall
be treated as capital costs of construction and not as Deductions.

 

C.                
Notwithstanding anything herein to the contrary, each of Tenant and Manager shall pay from its own funds (and not from Gross
Revenues of any Hotel or any Reserve) any franchise, corporate, estate, inheritance, succession, capital levy or transfer tax imposed
on Tenant or Manager, as applicable, or any income tax imposed (but not gross receipt or general excise taxes) on any income of
Tenant or Manager (including distributions to Tenant pursuant to Article III hereof).

 

D.               
Manager shall cause to be paid, with respect to each Hotel, when due, from Gross Revenues, as Deductions, for such Hotel,
to the extent of the sufficiency of funds available therefore:

 

1.                 
Utility Charges — all charges for electricity, power, gas, oil, water and other utilities used in connection with
each Hotel.

 

2.                 
Insurance Premiums — all premiums for the insurance coverage required to be maintained pursuant to Section 6.01 and
Exhibit D hereof.

 

3.                 
Other Charges — all other amounts, liabilities and obligations arising in connection with the operation of each Hotel
except those obligations expressly assumed by Landlord or Tenant pursuant to the provisions of this Agreement or any of the Incidental
Documents or expressly stated not to be paid from Gross Revenues of a Hotel pursuant to this Agreement.

 

 

ARTICLE VIII

 

OWNERSHIP OF THE HOTELS

 

8.01         
Ownership of the Hotels.

 

A.               
Tenant hereby covenants that it will not hereafter impose or consent to the imposition of any liens, encumbrances or other
charges, except as follows:

 

1.                 
easements or other encumbrances that do not adversely affect the operation of a Hotel by Manager and that are not prohibited
pursuant to Section 8.04 of this Agreement;

 

2.                 
mortgages which constitute Qualified Mortgages and related security instruments;

 

3.                 
liens for taxes, assessments, levies or other public charges not yet due or due but not yet payable; or

 

    32

     

    

 

4.                 
equipment leases for office equipment, telephone, motor vehicles and other property approved by Manager.

 

B.                
Subject to liens permitted by Section 8.01.A hereof and further subject to liens permitted to be placed by Landlord pursuant
to the Owner Agreement, Tenant covenants that, so long as there then exists no Manager Default which arises from acts or failures
to act by Manager with respect to each Hotel, Manager shall quietly hold, occupy and enjoy such Hotel throughout the Term hereof
free from hindrance, ejection or molestation by Tenant or Landlord or other party claiming under, through or by right of Tenant
or Landlord. Tenant agrees to pay and discharge any payments and charges and, at its expense, to prosecute all appropriate actions,
judicial or otherwise, necessary to assure such free and quiet occupation as set forth in the preceding sentence. Tenant will reasonably
cooperate with Manager and its Affiliates in connection with Manager’s operation of the Hotels.

 

C.                
Tenant will make all payments under any Mortgage by the due date from its own funds and not as Deductions. Manager has no
responsibility for payment of debt service.

 

8.02         
Requirements for Mortgages.

 

 

A.               
Tenant and/or Landlord may encumber a Hotel individually, or with one or more other Portfolio Properties, with any Mortgage
that meets all of the following requirements (each, a “Qualified Mortgage”):

 

1.                 
the proposed Mortgage is from an Institutional Lender and is on commercially reasonable terms;

 

2.                 
for Mortgages other than for the initial construction of a Hotel, the outstanding aggregate principal amount secured by
all Mortgages, including the proposed Mortgage, is seventy percent (70%) or less of the fair market value of the Portfolio Properties
subject to the proposed Mortgage measured as of the Finance Date;

 

3.                 
the ratio, as of the Finance Date, of (a) aggregate Operating Profit for the twelve (12) full Accounting Periods immediately
before the Finance Date to (b) debt service for the same period for all Mortgages encumbering the Portfolio Properties that
are subject to the proposed Mortgage, including the proposed Mortgage, equals or exceeds 1.4 to 1; and

 

4.                 
Mortgagee and Manager enter into an SNDA.

 

B.                
Manager may provide information about a Hotel to any Mortgagee, or to any Affiliate of Manager that provides any financing
in connection with such Hotel, that such Mortgagee or such Affiliate reasonably requests. Upon Manager’s request, Tenant
will promptly provide drafts, and the executed term sheets and loan documents for all Mortgages encumbering the Hotels.

 

C.                 If
any action taken by a Mortgagee materially and adversely restricts Manager from operating a Hotel in accordance with the
System Standards, then (i) such action will constitute a Tenant Default; and (ii) Manager may terminate this
Agreement with respect to such Hotel upon at least sixty (60) days’ prior written notice to Tenant without affecting
Manager’s other rights and remedies under this Agreement.

 

    33

     

    

 

D.               
If title to or possession of a Hotel is transferred by judicial or administrative process (for example, by Foreclosure or
bankruptcy proceedings) to a Person that does not meet the requirements in Section 10.02.A, then Manager may terminate this Agreement
with respect to such Hotel upon at least sixty (60) days’ prior written notice to Tenant without affecting Manager’s
other rights and remedies under this Agreement.

 

8.03         
Subordination and Non-Disturbance Agreement.

 

A.               
Tenant will obtain from any Mortgagee that holds a Mortgage as of or after the Effective Date an agreement, reasonably satisfactory
to Manager and recordable in the jurisdiction where each Hotel is located (the “SNDA”), which provides that:

 

1.                 
the right, title and interest of Manager in and to such Hotel under this Agreement will be subject and subordinate to the
lien of the Mortgage;

 

2.                 
if there is a Foreclosure under the Mortgage, then Manager will not be named as a party in any Foreclosure, and so long
as no Manager Event of Default (beyond the applicable notice and cure period, if any) has occurred thereunder which entitles Tenant
to terminate this Agreement with respect to such Hotel, (a) this Agreement will not terminate by reason of such Foreclosure,
(b) Mortgagee and any Subsequent Tenant will recognize the rights of Manager under this Agreement, and (c) Manager’s
rights to operate such Hotel under this Agreement will not be disturbed; and

 

3.                 
if there is a Foreclosure under the Mortgage, then Manager will be obligated to each Subsequent Tenant to perform under
the terms of this Agreement with the same force and effect as if the Subsequent Tenant were the Tenant, for as long as the Subsequent
Tenant meets the requirements of Section 10.02.A.

 

B.                
If the SNDA requires Manager to pay amounts otherwise due to Tenant under this Agreement directly to Mortgagee or its designee,
rather than to Tenant, then Tenant hereby irrevocably consents to such payment.

 

C.                
If Tenant does not obtain an SNDA for any Mortgage, then Manager may terminate this Agreement upon at least sixty (60) days’
prior written notice to Tenant without affecting Manager’s other rights and remedies under this Agreement.

 

8.04         
No Covenants, Conditions or Restrictions.

 

A.                Tenant
represents and warrants that, with respect to each Hotel and as of the Effective Date, there are not, and covenants that
during the Term of this Agreement Tenant shall not enter into (unless Manager has given its prior written consent
thereto, which consent shall not be unreasonably withheld, conditioned or delayed), any covenants, conditions or
restrictions, including reciprocal easement agreements, common area assessments or cost-sharing arrangements (collectively
referred to as “Future CC&Rs”) affecting any Site or Hotel that would (i) prohibit or limit Manager
from operating such Hotel in accordance with System Standards, including related amenities of such Hotel; (ii) allow such
Hotel facilities (for example, parking spaces) to be used by persons other than guests, invitees or employees of such Hotel;
(iii) allow the Hotel facilities to be used for specified charges or rates that have not been approved by Manager; or (iv)
subject the Hotel to exclusive arrangements regarding food and beverage operation, retail merchandise or any other operations
or part of the Hotel. With respect to each Hotel, Manager hereby consents to (a) any easements, covenants, conditions or
restrictions, including without limitation any reciprocal easement agreements or cost-sharing agreements, existing as of the
date Landlord acquired title to such Hotel, and (b) any of the foregoing items with respect to such Hotel existing as of the
Effective Date and of which Manager has knowledge (all of the foregoing, collectively, the “Existing
CC&Rs”).

 

    34

     

    

 

B.                
All financial obligations imposed on Tenant or on a Hotel pursuant to any Future CC&Rs for which Manager’s consent
is required under Section 8.04.A above shall be paid by Tenant from its own funds, and not from Gross Revenues of a Hotel or from
the Reserve of a Hotel, unless Manager has given its prior written consent to such Future CC&Rs as required under Section 8.04.A.

 

C.                
Manager shall manage, operate, maintain and repair each Hotel in compliance with all obligations imposed on Tenant, Landlord
or such Hotel pursuant to any Existing CC&Rs or Future CC&Rs (unless Manager’s consent is required for such Future
CC&Rs and Manager does not consent to such Future CC&Rs) to the extent such Existing CC&Rs and Future CC&Rs relate
to the management, operation, maintenance and repair of such Hotel.

 

8.05         
Liens; Credit. Manager and Tenant shall use commercially reasonable efforts to prevent any liens from being filed
against any Hotel which arise from any maintenance, repairs, alterations, improvements, renewals or replacements in or to such
Hotels. Manager and Tenant shall cooperate, and Tenant shall cause the Landlord to cooperate, fully in obtaining the release of
any such liens, and the cost thereof, if the lien was not occasioned by the fault of a party, shall be treated the same as the
cost of the matter to which it relates. If the lien arises as a result of the fault of a party, then the party at fault shall bear
the cost of obtaining the lien release. In no event shall any party borrow money in the name of, or pledge the credit of, any other
party. Manager shall not allow any lien to exist with respect to its interest in this Agreement.

 

Subject to the right
to contest matters set forth in Section 11.24 hereof and for encumbrances permitted under Section 8.01 hereof, Manager shall not,
to the extent funds to pay the same are provided on a timely basis as required hereunder, directly or indirectly, create or allow
to remain and shall promptly discharge any lien, encumbrance, attachment, title retention agreement or claim upon any Hotel, except
(a) existing liens for those taxes of Landlord which Manager is not required to pay hereunder, (b) liens for Impositions
or for sums resulting from noncompliance with Legal Requirements so long as (i) the same are not yet due and payable, or (ii) are
being contested in accordance with Section 11.24, (c) liens of mechanics, laborers, materialmen, suppliers or vendors incurred
in the ordinary course of business that are not yet due and payable or are for sums that are being contested in accordance with
Section 11.24 and (d) any Mortgages or other liens which are the responsibility of Landlord.

 

    35

     

    

 

ARTICLE IX

 

DEFAULTS

 

9.01         
Manager Events of Default. Each of the following shall constitute a “Manager Event of Default”
to the extent permitted by applicable law:

 

A.               
The filing by Manager or Marriott of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under
any bankruptcy law, or the admission by Manager that it is unable to pay its debts as they become due, or the institution of any
proceeding by Manager for its dissolution or termination. Upon the occurrence of any Manager Event of Default as described under
this Section 9.01.A, said Manager Event of Default shall be deemed a “Manager Default” under this Agreement.

 

B.                
The consent by Manager or Marriott to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90)
days from the date of entry thereof, any order approving an involuntary petition by Manager. Upon the occurrence of any Manager
Event of Default as described under this Section 9.01.B, said Manager Event of Default shall be deemed a “Manager Default”
under this Agreement.

 

C.                
The entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor, adjudicating
Manager or Marriott as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee,
or liquidator of all or a substantial part of Manager’s or Marriott’s assets, and such order, judgment or decree’s
continuing unstayed and in effect for an aggregate of sixty (60)
days (whether or not consecutive). Upon the occurrence of any Manager Event of Default as described under this Section 9.01.C,
said Manager Event of Default shall be deemed a “Manager Default” under this Agreement.

 

D.               
The failure of Marriott or Manager or any Affiliate of either of them to make any payment required to be made by any of
them in accordance with the terms of this Agreement, or any Incidental Document on or before the date due. Upon the occurrence
of any Manager Event of Default as described under this Section 9.01.D, said Manager Event of Default shall be deemed a “Manager
Default” under this Agreement if Marriott or Manager or such Affiliate fails to cure such Manager Event of Default (1) within
any applicable notice and cure period, if any, provided in the document pursuant to which such payment is to be made, or (2) otherwise,
eight (8) days after receipt of written notice from the other party to such document demanding such cure.

 

E.                 The
failure of Marriott or Manager or any Affiliate of either of them to perform, keep or fulfill any of the other
covenants, undertakings, obligations or conditions set forth in this Agreement, or the occurrence of an “Event of
Default” under any Incidental Document as a result of a material breach by Marriott or Manager or any such Affiliate
thereunder, on or before the date required for the same. Upon the occurrence of any Manager Event of Default as described
under this Section 9.01.E, said Manager Event of Default shall be deemed a “Manager Default” under this Agreement
if Marriott or Manager or such Affiliate fails to cure such Manager Event of Default within thirty (30) days after receipt of
written notice from Tenant demanding such cure, or, if the Manager Event of Default is susceptible of cure, but such cure
cannot be accomplished within said thirty (30)-day period of time, if Marriott or Manager or such Affiliate fails to commence
the cure of such Manager Event of Default within fifteen (15) days of such notice or thereafter fails to diligently pursue
such efforts to completion.

 

    36

     

    

 

F.                 
The failure of Manager to maintain insurance coverages required to be maintained by Manager under Article VI hereof
(excluding insurance elected to be maintained by Tenant pursuant to Article VI hereof), and such failure shall constitute a Manager
Default hereunder if it continues for eight (8) days after written notice thereof from Tenant (except that no notice shall be required
if any such insurance coverage shall have lapsed).

 

G.               
Any material representation or warranty made by Manager or any Affiliate in this Agreement or in any Incidental Document
proves to have been false in any material respect on the date when made or deemed made, and the same shall constitute a Manager
Default if Manager fails to cure or change the fact or event which caused such representation or warranty to have been false when
made within fifteen (15) Business Days of receiving notice of such falseness from Tenant; provided, however, that
if such default is susceptible of cure but such cure cannot reasonably be accomplished with the use of due diligence within such
period of time and if, in addition, Manager commences to cure or cause to be cured such default within fifteen (15) Business Days
after receiving notice thereof from Tenant and thereafter prosecutes the cure of such default with due diligence, such period of
time shall be extended to such period of time as may be reasonably necessary to cure such default with due diligence.

 

H.               
The occurrence of any other event described in this Agreement as a Manager Default, including without limitation, the events
described in Section 3.02.C, or the occurrence of a Manager Default as described in the Pooling Agreement.

 

9.02         
Remedies for Manager Defaults.

 

A.               
In the event of a Manager Default that has a material adverse effect on Tenant, but subject in all events to Section 9.02.B
below, Tenant shall have the right to: (1) terminate this Agreement with respect to the applicable Hotel under which such
Manager Default arose by written notice to Manager, which Termination shall be effective as of the effective date which is set
forth in said notice, provided that said effective date shall be at least sixty (60) days (or such longer period required by applicable
Legal Requirements concerning the termination of Hotel employees) after the date of such notice; (2) institute forthwith any
and all proceedings permitted by law or equity (provided they are not specifically barred under the terms of this Agreement), including,
without limitation, actions for specific performance and/or damages; or (3) avail itself of the remedies described in Section
9.03. The parties agree that a Manager Default under Section 9.01.A, 9.01.B, 9.01.C, or 9.01.F will be deemed to have a material
adverse effect on Tenant.

 

B.                
Notwithstanding anything herein to the contrary, in the event of a Manager Default for which Tenant intends or desires to
terminate this Agreement, Tenant shall have the right to do so provided that Tenant must simultaneously terminate this Agreement
as to all Hotels which are at such time subject to this Agreement.

 

    37

     

    

 

C.                
Any payments received by Tenant under any of the provisions of this Agreement during the existence or continuance of a Manager
Default (and any payment made to Tenant from others rather than Manager due to the existence of any Manager Default) shall be applied
to Manager’s current and past due obligations under this Agreement in such order as Tenant may determine or as may be prescribed
by applicable law.

 

9.03         
Additional Remedies for Manager Defaults.

 

A.               
Upon the occurrence of a Manager Default under the provisions of Section 9.01.D, the amount owed to Tenant or any Affiliate
of Tenant pursuant thereto shall accrue interest, at an annual rate equal to the Overdue Rate, from and after the date on which
such payment was originally due.

 

B.                
The rights granted under this Article IX shall not be in substitution for, but shall be in addition, to, any and all
rights and remedies available to Tenant (including, without limitation, injunctive relief and damages) by reason of applicable
provisions of law or equity.

 

C.                
At any time after the occurrence of a Manager Event of Default, Tenant shall have the right, but shall not be obligated,
to cure a Life Safety Event occurring at a Hotel by performing necessary repairs and/or maintenance after first providing Manager
with written notice of such Life Safety Event, and requesting that such Life Safety Event be cured by Manager within five (5) Business
Days. If (1) a Life Safety Event remains uncured following the applicable notice period in the foregoing sentence or (2) such Life
Safety Event is not curable within such notice period and Manager has failed to begin to cure such Life Safety Event within such
notice period (or fails to diligently proceed to cure such Life Safety Event to completion after commencing to do so within such
notice period), then Manager shall permit Landlord and/or Tenant, upon five (5) Business Days’ written notice to Manager,
to enter upon the applicable Hotel solely for the purposes of effecting a cure for such Life Safety Event, provided (i) Landlord
and/or Tenant, as applicable, act strictly in accordance with the terms of the Lease, this Agreement and applicable Legal Requirements,
and (ii) Landlord and/or Tenant, as applicable, do not unreasonably interfere with the operation of such Hotel and use commercially
reasonable efforts to ensure that any work performed at such Hotel is performed in such a manner that minimizes any disruption
in the operations of such Hotel. All costs and expenses incurred by Tenant and/or Landlord in connection with any such cure of
a Life Safety Event shall be paid from the Reserve. Tenant and/or Landlord may exercise the foregoing rights without waiving any
other of its rights or releasing Manager from any of its obligations under this Agreement.

 

9.04          Non-Recourse
Provision. Notwithstanding anything herein to the contrary, but subject to the balance of this Section 9.04,
Manager’s obligations pursuant to this Agreement and the Pooling Agreement are in all instances non-recourse to
Manager, and in the event of any claim, suit or cause of action by Tenant against Manager pursuant to or in connection with
this Agreement or the Pooling Agreement or the transactions contemplated by either of them, Tenant’s sole recourse
against Manager shall be with respect to amounts held by Marriott or Manager for the account of Tenant pursuant to this
Agreement or the Pooling Agreement, and to amounts available pursuant to the Marriott Guaranty Agreement and to amounts
available pursuant to the Security Deposit Agreement, and Manager shall have no other liability beyond the extent thereof
with respect to any such claim, suit or cause of action. Notwithstanding the foregoing, this Section 9.04 shall not be
applicable with respect to (a) fraud committed by Manager, (b) misapplication or misappropriation of funds
committed by Manager, (c) the willful misconduct of Manager, (d) the gross negligence of Manager, or
(e) losses against which Manager has elected to self-insure pursuant to Section 6.01 and Exhibit D hereof. This
Section 9.04 shall not be construed to limit any right of set-off to which Tenant may be entitled with respect to any amount
to which Manager or any Affiliate may be entitled pursuant to this Agreement, any Other Management Agreement or the Pooling
Agreement, and Tenant shall be entitled to set-off against amounts owed by Tenant to Manager hereunder amounts owed to Tenant
under this Agreement or any Incidental Document, but excluding in any event System Fees due to Manager hereunder or under any
Other Management Agreement and any fees due to Marriott pursuant to any Franchise Agreement.

 

    38

     

    

 

9.05         
Good Faith Dispute by Manager. If Manager shall in good faith dispute the occurrence of any Manager Default and Manager,
before the expiration of the applicable cure period, shall give notice thereof to Tenant, setting forth, in reasonable detail,
the basis therefor, no Manager Default shall be deemed to have occurred and Manager shall have no obligation with respect thereto
until final adverse determination thereof; provided, however, that in the event that such dispute is ultimately determined
against Manager, then Manager shall pay to Tenant interest on any disputed funds at the Overdue Rate, from the date demand for
such funds was made by Tenant until paid. If Tenant and Manager shall fail, in good faith, to resolve any such dispute within ten
(10) days after Manager’s notice of dispute, either may submit the matter for resolution by Arbitration. In the event that
the determination in such Arbitration is that a Manager Default, in fact, exists, Manager shall have the applicable cure period
from the date of such final determination to cure such Manager Default.

 

9.06         
Tenant Events of Default. Each of the following shall constitute a “Tenant Event of Default” to
the extent permitted by applicable law:

 

A.               
The filing by Tenant or SVC of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any
bankruptcy law, or the admission by Tenant that it is unable to pay its debts as they become due, or the institution of any proceeding
by Tenant for its dissolution or termination. Upon the occurrence of any Tenant Event of Default as described under this Section
9.06.A, said Tenant Event of Default shall be deemed a “Tenant Default” under this Agreement.

 

B.                
The consent by Tenant or SVC to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days
from the date of entry thereof, any order approving an involuntary petition by Tenant. Upon the occurrence of any Tenant Event
of Default as described under this Section 9.06.B, said Tenant Event of Default shall be deemed a “Tenant Default”
under this Agreement.

 

C.                 The
entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a
creditor, adjudicating Tenant or SVC as bankrupt or insolvent or approving a petition seeking reorganization or appointing a
receiver, trustee, or liquidator of all or a substantial part of Tenant’s or SVC’s assets, and such order,
judgment or decree’s continuing unstayed and in effect for an aggregate of sixty (60) days (whether or not
consecutive). Upon the occurrence of any Tenant Event of Default as described under this Section 9.06.C, said Tenant Event of
Default shall be deemed a “Tenant Default” under this Agreement.

 

    39

     

    

 

D.               
The failure of Tenant to make any payment (or cause to be made any payment by any Affiliate of Tenant which is a party thereto)
required to be made in accordance with the terms of this Agreement or any Incidental Document on or before the date due. Upon the
occurrence of any Tenant Event of Default as described under this Section 9.06.D, said Tenant Event of Default shall be deemed
a “Tenant Default” under this Agreement if Tenant fails to cure such Tenant Event of Default (1) within any applicable
notice and cure period, if any, provided in the document pursuant to which such payment is to be made, or (2) otherwise, eight
(8) days after receipt of written notice from the other party to such document demanding such cure.

 

E.                
The failure of Tenant, SVC or Landlord to perform, keep or fulfill any of the other covenants, undertakings, obligations
or conditions set forth in this Agreement or any Incidental Document. Upon the occurrence of any Tenant Event of Default as described
under this Section 9.06.E, said Tenant Event of Default shall be deemed a “Tenant Default” under this Agreement if
Tenant fails to cure the Tenant Event of Default within thirty (30) days after receipt of written notice from Manager demanding
such cure, or, if the Tenant Event of Default is susceptible of cure, but such cure cannot be accomplished within said thirty (30)-day
period of time, if Tenant fails to commence the cure of such Tenant Event of Default within fifteen (15) days of such notice or
thereafter fails to diligently pursue such efforts to completion.

 

F.                 
The failure of Tenant to maintain insurance coverages elected to be maintained by Tenant under Article VI hereof (excluding
insurance maintained by Manager pursuant thereto), and such failure shall constitute a Tenant Default hereunder if it continues
for eight (8) days after written notice thereof from Manager (except that no notice shall be required if any such insurance coverage
shall have lapsed).

 

G.               
Any material representation or warranty made by Tenant or any Affiliate in this Agreement or in any Incidental Document
proves to have been false in any material respect on the date when made or deemed made, and the same shall constitute a Tenant
Default if Tenant fails to cure or change the fact or event which caused such representation or warranty to have been false when
made within fifteen (15) Business Days of receiving notice of such falseness from Manager; provided, however, that
if such default is susceptible of cure but such cure cannot reasonably be accomplished with the use of due diligence within such
period of time and if, in addition, Tenant commences to cure or cause to be cured such default within fifteen (15) Business Days
after receiving notice thereof from Manager and thereafter prosecutes the cure of such default with due diligence, such period
of time shall be extended to such period of time as may be reasonably necessary to cure such default with due diligence.

 

H.               
The occurrence of an event of default beyond any applicable notice and cure period under any obligation, agreement, instrument
or document which is secured in whole or in part by Tenant’s or Landlord’s interest in any Hotel or should the holder
of such security accelerate the indebtedness secured thereby or commence a foreclosure thereof. Upon the occurrence of any Tenant
Event of Default as described under this Section 9.06.H, said Tenant Event of Default shall be deemed a “Tenant Default”
under this Agreement.

 

    40

     

    

 

9.07         
Remedies for Tenant Defaults.

 

A.               
In the event of a Tenant Default that has a material adverse effect on Manager or its Affiliates, Manager shall have the
right to: (1) terminate this Agreement with respect to the applicable Hotel under which such Tenant Default arose as expressly
provided in this Agreement; (2) terminate this Agreement as to all Hotels that are at such time subject to this Agreement by written
notice to Tenant, which Termination shall be effective as of the effective date which is set forth in said notice, provided that
said effective date shall be at least sixty (60) days (or such longer period required by applicable Legal Requirements concerning
the termination of Hotel employees) after the date of such notice; and (3) institute forthwith any and all proceedings permitted
by law or equity (provided they are not specifically barred under the terms of this Agreement), including, without limitation,
actions for specific performance and/or damages. In the event of a Termination as described in this Section 9.07, Manager shall
retain all of its rights under the Owner Agreement. The parties agree that a Tenant Default under Sections 9.06.A, 9.06.B, 9.06.C,
9.06.D and/or 9.06.F will (x) be deemed to have a material adverse effect on Manager or its Affiliates and (y) except as otherwise
expressly set forth herein, shall be the only provisions for which a Tenant Default thereof shall give rise to Manager’s
right to terminate this Agreement; provided, however, that a Tenant Default under Section 9.06.D will only be deemed to have a
material adverse effect on Manager or its Affiliates to the extent that such Tenant Default arises from Tenant’s failure
to make any payment (or cause to be made any payment by any Affiliate of Tenant which is party thereto) required to be made under
any Renovation-Related Agreement, Tenant’s failure to provide sufficient Additional Working Capital in accordance with the
provisions of Section 4.05.A hereof or Tenant’s failure to provide sufficient Reserve funds in accordance with the provisions
of Sections 5.07.B and 5.07.D hereof. Notwithstanding the provisions of this Section 9.07.A, so long as a Hotel is subject to a
Qualified Mortgage or owned by a Person who acquired such interest pursuant to a Qualified Mortgage (or a deed-in-lieu in connection
therewith), Manager shall not exercise the termination right provided for in this Section 9.07.A if the Tenant Default described
herein arises under Section 9.06.A, 9.06.B or 9.06.C and is also a default pursuant to the terms of such Qualified Mortgage so
long as the mortgagee thereunder is diligently pursuing its remedies to cure the event or circumstance which created such Tenant
Default as described in this Section 9.07.A and provides Manager with written notice of the same.

 

B.                 Upon
the occurrence of a Tenant Default which arises with respect to a violation by Tenant of Section 10.02 hereof with respect to
a Sale of a Hotel in violation of such provision or by Landlord with respect to a violation of Sections 8 and 9 of the Owner
Agreement or Section 8.01.A(2) with respect to the encumbering of a Hotel by Landlord or Tenant by a Mortgage which is not a
Qualified Mortgage, or by Landlord with respect to a violation of Section 9 of the Owner Agreement, Manager shall have, in
addition to all other rights and remedies provided for herein, the right to effect a Termination of this Agreement with
respect to the applicable Hotel under which such Tenant Default arose. Notwithstanding the foregoing sentence, so long as a
Hotel is subject to a Qualified Mortgage or owned by a Person who acquired such interest pursuant to a Qualified Mortgage (or
a deed-in-lieu in connection therewith), Manager shall not exercise the termination right provided for in this Section 9.07.B
if the Tenant Default described herein is also a default pursuant to the terms of such Qualified Mortgage so long as the
mortgagee thereunder is diligently pursuing its remedies to cure the event or circumstance which created such Tenant Default
as described in this Section 9.07.B and provides Manager with written notice of the same.

 

    41

     

    

 

C.                
Manager and/or any Affiliate shall be entitled, in case of any breach of the covenants of Section 11.11.M by Tenant or others
claiming through it, to injunctive relief and to any other right or remedy available at law or in equity. The provisions of this
Section 9.07.C shall survive any Termination.

 

D.               
The rights granted under this Article IX shall not be in substitution for, but shall be in addition, to, any and all
rights and remedies available to Manager or its Affiliates (including, without limitation, injunctive relief and damages) by reason
of applicable provisions of law or equity.

 

E.                
For the avoidance of doubt, nothing contained in this Agreement shall restrict or modify any of the rights or remedies to
which Manager and/or its Affiliates are entitled under the applicable Renovation-Related Agreement(s) (including, without limitation,
the right to terminate this Agreement with respect to the applicable Hotel pursuant to Section 2.06 of the applicable Renovation-Related
Agreement(s)).

 

9.08         
Good Faith Dispute by Tenant. If Tenant shall in good faith dispute the occurrence of any Tenant Default and Tenant,
before the expiration of the applicable cure period, shall give notice thereof to Manager, setting forth, in reasonable detail,
the basis therefor, no Tenant Default shall be deemed to have occurred and Tenant shall have no obligation with respect thereto
until final adverse determination thereof; provided, however, that in the event that such dispute is ultimately determined
against Tenant, then Tenant shall pay to Manager interest of any disputed funds at the Overdue Rate from the date demand for such
funds was made by Manager until paid. If Manager and Tenant shall fail, in good faith, to resolve any such dispute within ten (10)
days after Tenant’s notice of dispute, either may submit the matter for resolution by Arbitration. In the event that the
determination in such Arbitration is that a Tenant Default, in fact, exists, Tenant shall have the applicable cure period from
the date of such final determination to cure such Tenant Default.

 

9.09         
Landlord Defaults. Each of the following shall constitute a “Landlord Default”: (1) the failure
of Landlord to provide funds to any Reserve on or before the date such funds are required to be paid under Section 5.07.B hereof
or under the Owner Agreement (after any Expert resolution pursuant to Section 11.23.B, if applicable), (2) the failure of
Landlord to make insurance or condemnation proceeds available for repair, restoration or replacement required under the Owner Agreement,
(3) the imposition by Landlord of a Mortgage against any Hotel which is not a Qualified Mortgage, (4) the permitting
by Landlord of a lien on Landlord’s interest in any Hotel in violation of the terms hereof or of the Owner Agreement, or
(5) a Landlord Sale of a Hotel occurs in violation of the Owner Agreement.

 

If a Landlord Default
occurs, Tenant shall have no remedies under this Agreement with respect to such Landlord Default, but reserves its rights and remedies
under the Lease. Notwithstanding anything herein to the contrary, Manager shall be entitled to exercise any and all of the remedies
of Manager with respect to a Landlord Default under the Owner Agreement.

 

    42

     

    

 

9.10         
Extraordinary Events. In all cases, if Tenant or Manager fails to comply with any term of this Agreement (other than
an obligation of a monetary nature or as otherwise specifically provided herein), and the failure is caused in whole or in part
by one or more Extraordinary Events, the failure will not be a default or Event of Default, and will be excused for as long as
the failure is caused in whole or in part by such Extraordinary Event.

 

ARTICLE X

 

ASSIGNMENT AND SALE

 

10.01     
Assignment.

 

A.               
Except as provided in Sections 10.01.B and 10.01.C, Manager shall not assign mortgage, pledge, hypothecate or otherwise
transfer its interest in all or any portion of this Agreement or any rights arising under this Agreement or suffer or permit such
interests or rights to be assigned, transferred, mortgaged, pledged, hypothecated or encumbered, in whole or in part, whether voluntarily,
involuntarily or by operation of law, or permit the use or operation of the Hotels by anyone other than Manager or Tenant. For
purposes of this Section 10.01.A, an assignment of this Agreement shall be deemed to include the following (for purposes of this
Section 10.01.A, a “Corporate Transfer”): any direct or indirect transfer of any interest in Manager such that
Manager shall cease to be an Affiliate of Marriott or any transaction pursuant to which Manager is merged or consolidated with
another entity which is not Marriott or an Affiliate of Marriott or pursuant to which all or substantially all of Manager’s
assets are transferred to any other entity, but shall not include any involuntary liens or attachments contested by Manager in
good faith in accordance with Section 11.24 of this Agreement.

 

B.                
Notwithstanding the foregoing, if, after giving effect to a Corporate Transfer, Manager, or all or substantially all of
Manager’s assets, would be owned or controlled by a Person who would, in connection therewith, acquire all or substantially
all of the SpringHill Suites business of Marriott, provided that (1) such Person ratifies in writing the obligations of Manager
pursuant to this Agreement, and (2) in Tenant’s reasonable determination, such Person and its controlling parties (a) shall
have sufficient expertise and financial resources to carry on the such business consistent with historical practices, (b) shall
not be known in the community as being of bad moral character, or have been convicted of a felony in any state or federal court,
or be in control of or controlled by Persons who have been convicted of felonies in any state or federal court, (c) shall
qualify as an “eligible independent contractor” under Section 856(d)(9) of the Code and (d) shall otherwise satisfy
the requirements of Section 10.01.C hereunder, Tenant shall at Manager’s request, waive the restrictions set forth in this
Section 10.01 with respect to such Corporate Transfer and no consent by Tenant shall be required with respect thereto. If Tenant
fails to give notice of such waiver (or the withholding thereof) within twenty (20) Business Days after Manager’s written
request therefor, such waiver shall be deemed given.

 

    43

     

    

 

C.                 Notwithstanding
the terms of Section 10.01.A, Manager shall have the right, without Tenant’s consent, to (1) assign its interest
in all or part of this Agreement or its obligations to perform services hereunder to Marriott or any Affiliate of Marriott,
(2) sublease or grant concessions or licenses to shops or any other space at a Hotel so long as the terms of any such
subleases or concessions do not exceed the Term of this Agreement, provided that (a) such subleases or concessions are
for newsstand, gift shop, parking garage, health club, restaurant, bar or commissary purposes or similar concessions,
(b) such subleases do not have a term in excess of the lesser of five (5) years and the remaining Term under this
Agreement, (c) such subleases do not demise, (i) in the aggregate, in excess of three thousand (3,000) square feet
of any Hotel, or (ii) for any single sublease, in excess of one thousand (1,000) square feet of any Hotel, (d) any
such sublease, license or concession to an Affiliate of a Manager shall be on terms consistent with those that would be
reached through arms-length negotiation, (e) for so long as Landlord or any Affiliate of Landlord shall seek to qualify
as a real estate investment trust, anything contained in this Agreement to the contrary notwithstanding, Manager shall not
sublet or otherwise enter into any agreement with respect to a Hotel on any basis such that the rental or other fees to be
paid by any sublessee thereunder would be based, in whole or in part, on either (i) the income or profits derived by the
business activities of such sublessee, or (ii) any other formula such that any portion of such sublease rental would
fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue Code
of 1986, as amended, or any similar or successor provision thereto, and (f) such subleases or concessions will not
violate or affect any Legal Requirement or Insurance Requirement, and Manager shall obtain or cause the subtenant to obtain
such additional insurance coverage applicable to the activities to be conducted in such subleased space as Landlord and any
Mortgagee under a Qualified Mortgage may reasonably require, (3) assign its interest in this Agreement in connection
with a merger or consolidation or a sale of all or substantially all of the assets of Manager or Marriott, and
(4) assign its interest in this Agreement in connection with a merger or consolidation or a sale of all or substantially
all of the System assets (including associated management agreements) owned by Manager, Marriott or any Affiliate of Manager
or Marriott.

 

D.               
Tenant shall not assign or transfer its interest in this Agreement without the prior written consent of Manager; provided,
however, that Tenant shall have the right, without such consent to (1) assign its interest in this Agreement in connection
with a Sale of a Hotel which complies with the provisions of Section 10.02 of this Agreement, (2) assign its interest hereunder
to Landlord or an Affiliate of Landlord under the terms of the Lease or the Owner Agreement, (3) assign its interest hereunder
to Manager or an Affiliate of Manager, and (4) assign its interest hereunder to an Affiliate of Tenant in a corporate restructuring
of Tenant or any of its Affiliates, provided such assignment complies with the provisions of Section 10.02 of this Agreement.

 

E.                
In the event either party consents to an assignment of this Agreement by the other, no further assignment shall be made
without the express consent in writing of such party, unless such assignment may otherwise be made without such consent pursuant
to the terms of this Agreement. An assignment by Tenant of its interest in this Agreement approved or permitted pursuant to the
terms hereof shall relieve Tenant from its obligations under this Agreement with respect to the Hotel to which such assignment
pertains arising from and after the effective date of such assignment. An assignment by Manager of its interest in this Agreement
shall not relieve Manager from its obligations under this Agreement with respect to the Hotel to which such assignment pertains
unless such assignment occurs in the context of a sale of all or substantially all of the SpringHill Suites business of Marriott
and its Affiliates and which is otherwise permitted or approved, if required, pursuant to this Agreement, in which event Manager
shall be so relieved from such obligations arising from and after the effective date of such assignment.

 

    44

     

    

 

 

10.02      
Sale of the Hotel.

 

A.               
Tenant may enter into a Sale of a Hotel to any Person which (1) is an Affiliate of Tenant, and (2) who assumes
Tenant’s obligations with respect to such Hotel under this Agreement, the Owner Agreement (to the extent applicable to the
Hotel being sold) and, to the extent applicable with respect to the “deconsolidation” provisions thereof, the Pooling
Agreement (or ratifies each of such obligations if such Sale of a Hotel is pursuant to a transfer of a Controlling Interest in
Tenant). Tenant shall not enter into any Sale of a Hotel to any Person (or any Affiliate of any Person) who (a) does not have
sufficient financial resources and liquidity to fulfill Tenant’s obligations with respect to such Hotel under this Agreement,
the Owner Agreement (to the extent applicable to the Hotel) and, to the extent applicable as set forth in the preceding sentence,
the Pooling Agreement; (b) is known in the community as being of bad moral character, or has been convicted of a felony in
any state or federal court, or is in control of or controlled by Persons who have been convicted of felonies in any state or federal
court; (c) is engaged in the business of operating (as distinguished from owning) at least five (5) hotels or other lodging
facilities in competition with Manager, Marriott or any Affiliate of either; (d) fails to expressly assume in writing the
obligations of Tenant hereunder and under the Owner Agreement (to the extent applicable to the Hotel); or (e) is, or has an
Affiliate that is, a Specially Designated National or Blocked Person.

 

B.                
Tenant shall provide written notice of any proposed Sale of a Hotel and shall provide to Manager such information concerning
the proposed transferee’s financial condition, ownership and business interests and as may be reasonably necessary or appropriate
in order for Manager to determine if such transfer is consistent with the above provisions.

 

C.                
In connection with any Sale of a Hotel, Manager and the purchaser or its tenant shall enter into a new management agreement
with Manager, which new management agreement will be on all of the terms and conditions of this Agreement (with revisions as reasonably
required to account for the fact that such management agreement may be applicable to less than all of the Hotels subject to this
Agreement) except that the Initial Term and Renewal Term(s) of any such new management agreement shall consist only of the balance
of the Initial Term and Renewal Term(s) remaining under this Agreement at the time of execution of such new management agreement.
Such new management agreement shall be executed by Manager and such new tenant at the time of closing of a Sale of the Hotel, and
a memorandum of such new management agreement shall be executed by the parties and recorded immediately following recording of
the deed or memorandum of lease or assignment and prior to recordation of any other documents.

 

D.               
Notwithstanding anything herein to the contrary, and in addition to the foregoing, a sale (or deemed sale) of an Exit Hotel
may be consummated, in accordance with the terms and conditions of the Exit Hotel Agreement.

 

E.                 Notwithstanding
anything herein to the contrary, including the foregoing provisions of this Article X, other than in connection with the
sale (or deemed sale) of an Exit Hotel pursuant to Section 10.02.D above, (a) no Sale of a Hotel by Tenant shall or can
occur prior to the completion of the Renovations pursuant to the Renovation-Related Agreements, and (b) following the
completion of the Renovations pursuant to the Renovation-Related Agreements, Tenant may consummate a Sale of a Hotel, at
no cost to Manager or Marriott, provided that (i) the applicable Landlord or an Affiliate thereof or SVC shall continue
to own such Hotel, (ii) the permitted purchaser must meet and comply with the requirements of this Section 10.02 and
those set forth in the Lease, and (iii) the applicable Landlord, Tenant and the permitted purchaser shall execute and
deliver such documents as Manager may reasonably require to reflect such assignment.

 

    45

     

    

 

ARTICLE XI

 

MISCELLANEOUS

 

11.01      
Right to Make Agreement. Each party warrants, with respect to itself, that neither the execution of this Agreement
nor the finalization of the transactions contemplated hereby shall violate any provision of law or judgment, writ, injunction,
order or decree of any court or governmental authority having jurisdiction over it; result in or constitute a breach or default
under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; or require any consent,
vote or approval which has not been taken, or at the time of the transaction involved shall not have been given or taken. Each
party covenants that it has and will continue to have throughout the Term (including any extensions thereof), the full right to
enter into this Agreement and perform its obligations hereunder.

 

11.02       Actions
by Manager. Manager covenants and agrees that it shall not take any action which would be binding upon Tenant or Landlord
except to the extent it is permitted to do so pursuant to the terms of this Agreement.

 

11.03      
Relationship. In the performance of this Agreement, Manager shall act solely as an independent contractor. Neither
this Agreement nor any agreements, instruments, documents or transactions contemplated hereby shall in any respect be interpreted,
deemed or construed as making Manager a partner, joint venturer with, or agent of, Tenant. Tenant and Manager agree that neither
party will make any contrary assertion, claim or counterclaim in any action, suit, Expert resolution pursuant to Section 11.23.B,
arbitration or other legal proceedings involving Tenant and Manager. Nothing contained herein is intended to, nor shall be construed
as, creating any landlord-tenant relationship between Manager and Tenant or between Manager and Landlord. Each of Manager and Tenant
shall prepare and shall cause their Affiliates to prepare their financial statements and tax returns consistent with the foregoing
characterization.

 

11.04     
Applicable Law. This Agreement shall be construed under and shall be governed by the laws of the State of Maryland,
without regard to its “choice of law” rules. The provisions of this Section 11.04 survive any Termination.

 

11.05       Recordation.
The terms and provisions of this Agreement shall run with the parcels of land designated as the Sites, and with
Tenant’s interest therein, and shall be binding upon all successors to such interest. The parties shall
execute simultaneously with this Agreement sufficient copies of a “Memorandum of Management Agreement” in
recordable form satisfactory to both parties, which Memorandum of Management Agreement shall, if legally permitted, be
recorded or registered (or such other steps shall be taken by the parties as are necessary, to the extent legally permitted,
to give official notice to all third parties that this Agreement binds the Hotels) promptly following the Effective Date of
this Agreement in each jurisdiction in which a Hotel is located. Any cost of such recordation shall be paid by Manager.
Following any Termination, Manager and Tenant shall execute a “Memorandum of Termination of Management Agreement”
or other similar document, which document shall be in a recordable form reasonably agreed upon by both parties.

 

    46

     

    

 

11.06     
Headings; Section References. The headings of Sections herein are inserted for convenience only and are in no way
intended to describe, interpret, define or limit the scope or content of this Agreement or any provision hereto. All references
to Articles, Sections, paragraphs, clauses, exhibits, or addenda shall refer to the corresponding Article, Section, paragraph,
clause of, or exhibit or addendum attached to, this Agreement unless otherwise specified.

 

11.07     
Notices. Subject to the provisions of this Section 11.07, notices and other communications under this Agreement must
be (i) in writing; (ii) delivered by hand against receipt, by certified or registered mail, postage prepaid, return receipt requested
or by a nationally recognized overnight delivery service; and (iii) addressed as provided below or at any other address in the
United States designated in writing by the party receiving the notice. Any notice will be deemed received when delivery is received
or refused at the address provided below or at the other address designated in writing.

 

To Tenant:                         HPT TRS MRP, Inc.

c/o Service Properties Trust

Two Newton Place

255 Washington St

Newton, MA 02458

Attn: President

Phone: (617) 964-8389

 

To Manager:                      SpringHill SMC,
LLC

c/o Marriott International, Inc.

10400 Fernwood Road

Bethesda, Maryland 20817

Attn: Law Department 52/923 - Hotel Operations

Phone:(301) 380-9555

 

with a copy to:                   SpringHill
SMC, LLC

c/o Marriott International, Inc.

10400 Fernwood Road

Bethesda, Maryland 20817

Attn: Senior Vice President, Finance & Accounting

Dept. 51/918.04

Phone: (301) 380-6577

 

Notwithstanding the foregoing,
Manager and/or any of its Affiliates may provide Tenant and/or Landlord (as applicable) with electronic delivery of the
reports and other documents required to be provided by Manager and/or its Affiliates under this Agreement, which reports and
other documents shall be in a format reasonably agreed upon by Manager and Tenant. Manager, Tenant and Landlord will
reasonably cooperate with one another to adapt to new technologies that may be available for the transmission of such reports
or such other documents.

 

    47

     

    

 

11.08      
Environmental Matters.

 

A.               
Subject to Section 11.08.D hereof and the sufficiency of funds in each applicable Reserve, during the Term or at any other
time while Manager is in possession of the Hotels, (1) Manager shall not store, spill upon, dispose of or transfer to or from
any Hotel any Hazardous Substance, except in compliance with all Legal Requirements, (2) Manager shall maintain the Hotels
at all times free of any Hazardous Substance (except in compliance with all Legal Requirements), and (3) Manager (a) upon
receipt of notice or knowledge shall promptly notify Landlord and Tenant in writing of any material change in the nature or extent
of Hazardous Substances at any Hotel, (b) shall file and transmit to Landlord and Tenant a copy of any Community Right to
Know report which is required to be filed by Manager with respect to any Hotel pursuant to SARA Title III or any other Legal
Requirements, (c) shall transmit to Landlord and Tenant copies of any citations, orders, notices or other governmental communications
received by Manager with respect thereto (collectively, “Environmental Notice”), which Environmental Notice
requires a written response or any action to be taken and/or if such Environmental Notice gives notice of and/or presents a material
risk of any material violation of any Legal Requirement and/or presents a material risk of any material cost, expense, loss or
damage (an “Environmental Obligation”), (d) shall observe and comply with all Legal Requirements relating
to the use, maintenance and disposal of Hazardous Substances and all orders or directives from any official, court or agency of
competent jurisdiction relating to the use or maintenance or requiring the removal, treatment, containment or other disposition
thereof, and (e) shall pay or otherwise dispose of any fine, charge or Imposition related thereto, unless Tenant or Manager
shall contest the same in good faith and by appropriate proceedings and the right to use and the value of any Hotel is not materially
and adversely affected thereby.

 

B.                
Subject to Sections 11.08.C and 11.08.D below and the sufficiency of funds in each applicable Reserve, in the event of the
discovery of Hazardous Substances other than those maintained in accordance with Legal Requirements on any portion of any Site
or in any Hotel during the Term of this Agreement, Manager shall promptly (i) clean up and remove from and about such Hotel
all Hazardous Substances thereon, (ii) contain and prevent any further release or threat of release of Hazardous Substances
on or about such Hotel, (iii) use good faith efforts to eliminate any further release or threat of release of Hazardous Substances
on or about such Hotel, and (iv) otherwise effect a remediation of the problem in accordance with (1) the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as amended; (2) the regulations
promulgated thereunder, from time to time; (3) all federal, state and local laws, rules and regulations (now or hereafter
in effect) dealing with the use, generation, treatment, storage, disposal or abatement of Hazardous Substances; and (4) the
regulations promulgated thereunder, from time to time (collectively referred to as “Environmental Laws”).

 

C.                 The
actual costs incurred or the estimated costs to be incurred with respect to any costs that have been or are to be
incurred under Section 11.08.B above are herein collectively referred to as, the “Environmental Costs.”
Any costs incurred by Tenant with respect to any judgment or settlement approved by Manager (such approval shall not be
unreasonably withheld, conditioned or delayed with respect to any third party claims including, without limitation, claims by
Landlord arising under the Lease), including reasonable attorney fees incurred with respect to such claims, as a result of
release or threat of release of Hazardous Substances on or about any of the Hotels are herein referred to as the
 “Other Environmental Costs.” The Environmental Costs and the Other Environmental Costs are collectively
referred to herein as the “Section 11.08 Costs.”

 

    48

     

    

 

D.               
All Section 11.08 Costs with respect to each Hotel shall be paid from the applicable Reserve for such Hotel; provided,
however, that, if the presence of any Hazardous Substances on or at such Hotel or the violation of any Environmental Law
in the course of operating such Hotel is caused by (i) Manager’s willful misconduct, or (ii) the gross negligence
of a member of the Hotel’s executive committee or a Marriott executive more senior than a member of the Hotel’s executive
committee, then such Section 11.08 Costs shall be paid by Manager at its sole cost and expense and not as a Deduction, and Manager
shall indemnify Tenant for any loss, cost, claim or expense (including reasonable attorneys’ fees) incurred by Tenant in
connection therewith, except in all cases, to the extent that such loss, cost, claim or expense is caused, in whole or in part,
by Landlord or Tenant.

 

11.09      
Confidentiality.

 

A.               
The terms of this Agreement are confidential and Tenant and Manager will each use reasonable efforts to prevent disclosure
of the terms to any Person not related to either party without the prior approval of the other party, except (i) as required
by Legal Requirements (including, without limitation, the rules and regulations promulgated by the SEC or any stock exchange applicable
to Tenant or its Affiliates with respect to any report, prospectus or other filing made by Tenant or its Affiliates with the SEC
or any such stock exchange); (ii) as may be necessary in any Dispute; (iii) to the extent necessary to obtain licenses,
permits and other public approvals; (iv) for disclosure by Manager or its Affiliates in connection with any claim or assertion
related to the MI Trademarks; (v) in connection with a Transfer or a financing of Tenant, its Affiliates or their corporate
assets; (vi) in connection with a financing or sale of Manager, its Affiliates or their corporate assets; (vii) for disclosure
by Manager or its Affiliates of information customarily provided in the hotel industry to data gathering and reporting services;
(viii) as provided in Section 11.12; or (ix) to any professional providing Tenant or Manager (or its Affiliates) with
legal, accounting or tax advice, provided that such professional is aware of the confidentiality provision in this Section 11.09
and agrees in writing to be bound thereby. The provisions of this Section 11.09 survive any Termination.

 

B.                 No
reference to Manager or to any Affiliate will be made in any prospectus, private placement memorandum, offering circular or
offering documentation related thereto (collectively referred to as the “Prospectus”), issued by Tenant or
an Affiliate, which is designated to interest potential investors in a Hotel, unless Manager has previously received a
copy of all such references. However, regardless of whether Manager does or does not so receive a copy of all such
references, neither Manager nor any Affiliate will be deemed a sponsor of the offering described in the Prospectus, nor will
it have any responsibility for the Prospectus, and the Prospectus will so state. Unless Manager agrees in advance, the
Prospectus will not include any MI Trademark or other trademarks, symbols, logos or designs of Manager or any Affiliates.
Tenant shall indemnify, defend and hold Manager harmless from and against all loss, costs, liability and damage (including
attorneys’ fees and expenses, and the cost of litigation) arising out of any Prospectus or the offering described
therein, and this obligation of Tenant shall survive any Termination of this Agreement.

 

    49

     

    

 

11.10       Projections. Tenant acknowledges that any written or oral projections, pro formas, or other similar information that
has been, prior to execution of this Agreement, or will, during the Term of this Agreement, be provided by Manager, Marriott, or
any Affiliate to Tenant is for information purposes only and that Manager, Marriott, and any such Affiliate do not guarantee that
the Hotels will achieve the results set forth in any such projections, pro formas, or other similar information. Any such projections,
pro formas, or other similar information are based on assumptions and estimates, and unanticipated events may occur subsequent
to the date of preparation of such projections, pro formas, and other similar information. Therefore, the actual results achieved
by the Hotels are likely to vary from the estimates contained in any such projections, pro formas, or other similar information
and such variations might be material.

 

11.11      
Actions to be Taken Upon Termination. Upon a Termination of this Agreement with respect to any Hotel, the following
shall be applicable:

 

A.                
Manager shall, within ninety (90) days after Termination of this Agreement with respect to one or more Hotels, prepare and
deliver to Tenant a final accounting statement with respect to the applicable Hotels, as more particularly described in Section
4.01 hereof, along with a statement of any sums due from Tenant to Manager pursuant hereto, dated as of the date of Termination.
Within thirty (30) days of the receipt by Tenant of such final accounting statement, the parties will make whatever cash adjustments
are necessary pursuant to such final statement. If any dispute shall arise with respect to the final accounting statement which
cannot be resolved by the parties within the thirty (30)-day period provided for making any cash adjustments, it shall be settled
by the Expert in accordance with Section 11.23.B; provided, however, that any cash adjustments relating to items
which are not in dispute shall be made within the original thirty (30)-day period. The cost of preparing such final accounting
statement shall be a Deduction, unless the Termination occurs as a result of a default by either party, in which case the defaulting
party shall pay such cost. Manager and Tenant acknowledge that there may be certain adjustments for which the information will
not be available at the time of the final accounting and the parties agree to readjust such amounts and make the necessary cash
adjustments when such information becomes available; provided, however, that all accounts shall be deemed final as
of the second (2nd) anniversary of the effective date of Termination.

 

B.                 
Manager shall release and transfer to Tenant, or cause Marriott under the Pooling Agreement to release and transfer to Tenant,
any of Tenant’s funds which are held or controlled by Manager or Marriott with respect to the applicable Hotels, with the
exception of funds of Tenant to be held in escrow pursuant to Section 6.01.B(2)(e) of Exhibit D and Section 11.11.I
and otherwise in accordance herewith. All amounts in the applicable Reserves shall be applied to any amounts payable from such
Reserves hereunder or under the Owner Agreement and the balance shall be paid to Landlord.

 

C.                 Manager
shall make available to Tenant such books and records respecting the applicable Hotels (including those from prior years,
subject to Manager’s reasonable records retention policies) as will be needed by Tenant to prepare the
accounting statements, in accordance with the Uniform System of Accounts, for the applicable Hotels for the year in which the
Termination occurs and for any subsequent year.

 

    50

     

    

 

D.                
Manager shall (to the extent permitted by law) assign to Tenant or to the new manager all operating licenses and permits
for the applicable Hotels which have been issued in Manager’s name (including liquor and restaurant licenses, if any).

 

E.                 
Manager shall have the option, to be exercised within thirty (30) days after Termination, to purchase, at their then-book
value, any items of the applicable Hotels’ Inventories and Fixed Asset Supplies as may be marked with any MI Trademark. In
the event Manager does not exercise such option, Tenant agrees that it will use any such items not so purchased exclusively in
connection with the applicable Hotels until they are consumed.

 

F.                 
Manager shall, at Tenant’s sole cost and expense, use good faith commercially reasonable efforts to transfer to and
cooperate with Tenant or Tenant’s designee in connection with the processing of all applications for licenses, operating
permits and other governmental authorizations and all contracts entered into by Manager, including contracts with governmental
or quasi-governmental entities, which Manager has entered into with respect to the use and operation of the applicable Hotels as
then operated (and Tenant shall assume responsibility for all of the same), but excluding (i) all insurance contracts and
multi-property contracts not limited in scope to the applicable Hotels or other Portfolio Properties (if applicable), (ii) all
contracts and leases with Affiliates of Manager, (iii) utility deposits, and (iv) telephone numbers for the applicable
Hotels (which telephone numbers Manager shall be required to convey to Tenant only if this Agreement is terminated as the result
of a Manager Event of Default). Tenant shall indemnify and hold Manager harmless for all claims, costs and expenses (including
reasonable attorneys’ fees) arising from acts or omissions by Tenant or Tenant’s designee under such contracts subsequent
to the earlier of the date of Termination or the date of transfer thereof to Tenant or Tenant’s designee.

 

G.                 
Tenant shall have the right to operate the improvements on the applicable Sites without modifying the architectural design
of the same, notwithstanding the fact that such design or certain features thereof may be proprietary to Manager and/or protected
by trademarks or service marks held by Manager or an Affiliate, provided that such use shall be confined to the applicable Sites.

 

H.                 Any
computer software (including upgrades and replacements) at the applicable Hotels owned by Manager, Marriott, an Affiliate, or
the licensor of any of them is proprietary to Manager, Marriott, such Affiliate, or the licensor of any of them and shall
in all events remain the exclusive property of Manager, Marriott, the Affiliate or the licensor of any of them, as the case
may be, and nothing contained in this Agreement shall confer on Tenant the right to use any of such software. Subject to the
terms and conditions of any applicable Franchise Agreement, Manager shall have the right to remove from the applicable Hotels
without compensation to Tenant any computer software (including upgrades and replacements), including, without limitation,
the System software, owned by Manager, Marriott, any Affiliate or the licensor of any of them. Furthermore, upon Termination,
Manager shall be entitled to remove from the applicable Hotels without compensation to Tenant any computer equipment utilized
as part of a Reservation System or owned by a party other than Tenant, unless a Franchise Agreement is in place and such
equipment is to be provided pursuant to the Franchise Agreement.

 

    51

     

    

 

I.                   
Before any Termination, Manager will set up a reserve to pay all costs that may accrue after Termination, but that relate
to the operation of the Hotel before Termination, including costs relating to litigation and tax liabilities (including sales,
use and occupancy taxes). Notwithstanding the foregoing, Tenant shall pay, at its own cost and expense, any and all costs and expenses
incurred by Manager or its Affiliate in connection with the transfer or termination of Hotel employees (including, without limitation,
severance pay, unemployment compensation, employment relocation, legal costs and other employee liability costs), and any such
costs and expenses shall not be Deductions and shall be paid or reimbursed to Manager or its Affiliate within ten (10) Business
Days after Manager’s or such Affiliate’s written request therefor. The reserve will be funded first, from Gross Revenues;
second, if Gross Revenues are insufficient, then by Tenant within ten (10) days after receipt of Manager’s notice of the
necessary amounts; and, third, if Tenant does not pay any of the above amounts within the ten (10)-day period, then by withdrawals
by Manager from the applicable Hotel’s operating account(s), the Reserves, Working Capital funds or any other Tenant funds
under Manager’s control. The reserve described in this Section 11.11.I is in addition to the reserve described in Section
6.01.B(2)(e) of Exhibit D. For the avoidance of doubt, for so long as the Pooling Agreement is in effect, any reserve funding
under this Section 11.11.I that is made from Gross Revenues shall be accounted for on a pooled basis and treated as a Deduction.

 

J.                  
Various other actions shall be taken, as described in this Agreement, including, but not limited to, the actions described
in Section 4.05 and Section 6.01.B(2)(e) of Exhibit D.

 

K.                 
Manager shall peacefully vacate and surrender the applicable Hotels to Tenant.

 

L.                 
Tenant shall cause the successor operator of the Hotel to hire a sufficient number of existing Hotel employees to avoid
the possibility of a “plant closing” or “mass layoff” under the Worker Adjustment and Retraining Notification
Act, 29 U.S.C. 2101 et seq. or a similar occurrence under any other Legal Requirement, in connection with the Termination.

 

M.               
All use of the MI Trademarks at or in connection with the Hotel will stop as of Termination. Tenant shall make arrangements
to remove any signs and similar identification with a MI Trademark at least ten (10) days before Termination. If Tenant does not
timely make such arrangements, then Manager and its Affiliates may cover or remove the signs and similar identification not more
than two days before Termination at Tenant’s cost. Tenant shall remove all Inventories, Fixed Asset Supplies and other items
with an MI Trademark, or remove the MI Trademarks from such Inventories, Fixed Asset Supplies or other items as of the Termination
date. If Tenant does not timely remove these items, then Manager and its Affiliates may do so at Tenant’s cost. Tenant shall
reimburse all costs incurred by Manager and its Affiliates for covering or removing any items bearing MI Trademarks within ten
(10) days after notice from Manager. If Tenant fails to do so, then Manager may reimburse itself for these costs from the applicable
Hotel’s operating account(s), the Reserves, Working Capital funds or any other Tenant funds under Manager’s control
without affecting Manager’s other rights and remedies under this Agreement.

 

    52

     

    

 

N.                
Upon Termination, Tenant shall immediately stop processing and upon request of Manager, promptly return to Manager or securely
destroy, any Personal Data processed in connection with this Agreement or as required by Legal Requirements. However, Manager will
provide to Tenant (i) all Guest Personal Data in Manager’s control necessary for Tenant to process exiting booking for
the time after Termination, and (ii) all Hotel Employee Personal Data in Manager’s control necessary for Tenant or a
third-party manager to meet Legal Requirements as the employer of Hotel employees after Termination.

 

O.                
Upon expiration of the entire Term of this Agreement in accordance with its terms (and not as a result of an Event of Default)
and following the completion of the final accounting provided for in Section 11.11.A hereof and the distributions provided for
thereunder, Tenant shall have no further liability for repayment of any accrued Management Fees or any Additional Manager Advances,
Additional Marriott Advances and any other advances made by Marriott or Manager pursuant to this Agreement or the Pooling Agreement.

 

The provisions of this
Section 11.11 shall survive any Termination.

 

11.12      
Trademarks, Trade Names and Service Marks. The MI Trademarks, when used alone or in connection with another word
or words, and the Marriott trademark, service marks, other trade names, symbols, logos and designs shall in all events remain the
exclusive property of Marriott and its Affiliates (as applicable) and nothing contained in this Agreement shall confer on Tenant
the right to use any of the MI Trademarks otherwise than in strict accordance with the terms of this Agreement. Nothing in this
Agreement will be construed to grant Tenant any right of ownership in or right to use or license others to use the MI Trademarks.
Except as otherwise expressly provided for in this Agreement, Tenant shall not use the MI Trademarks without Manager’s prior
approval, which can be withheld in Manager’s sole discretion. Except as provided in Section 11.11.E, upon termination of
this Agreement with respect to any Hotel, any use of or right to use any of the MI Trademarks by Tenant shall cease forthwith and
Tenant shall promptly remove from such Hotel any signs or similar items which contain any of said MI Trademarks in accordance with
this Agreement. The right to use the MI Trademarks belongs exclusively to Marriott and/or its Affiliates (as applicable), and the
use thereof inures to the benefit of Marriott whether or not the same are registered and regardless of the source of the same.
The provisions of this Section 11.12 shall survive any Termination.

 

11.13      
Data Protection.

 

A.               
Manager and its Affiliates will collect, use and disclose Guest Personal Data in the course of operating the Hotels. Tenant
may use Guest Personal Data to comply with Legal Requirements applicable to Tenant. Tenant shall not have access to or use Guest
Preferences.

 

B.                
Tenant shall take such actions and execute such documents as requested by Manager or its Affiliates that are necessary for
compliance with Legal Requirements applicable to Personal Data related to the Hotels, such as data transfer agreements.

 

C.                 Tenant
shall promptly inform Manager if Tenant: (i) discovers or reasonably suspects a Security Incident; (ii) has been
contacted by any Person seeking to exercise any right under Legal Requirements pertaining to Personal Data; or
(iii) has been contacted by a data protection authority about the processing of Personal Data (in which case Manager and
any of its Affiliates may conduct the proceedings and Tenant shall reasonably cooperate with Manager and its Affiliates).

 

    53

     

    

 

D.               
The following provisions apply to Personal Data received by Tenant (to the extent Tenant acts as data controller) from Manager
or its Affiliates that is subject to Privacy Shield:

 

1.                 
Tenant and any other Person acting under its authority will protect Privacy Shield Data at the same level of privacy protection
as required by the Privacy Shield Principles and will collect, use and share Privacy Shield Data solely for the purposes consistent
with this Agreement and any applicable notice to the relevant individual provided by Manager or its Affiliates.

 

2.                 
If Tenant no longer meets its obligation to provide the same level of protection as required by Privacy Shield, it will
immediately (i) notify Manager; and (ii) in consultation with Manager, either cease all processing of Privacy Shield Data or take
other reasonable and appropriate steps to remediate the issue.

 

3.                 
Tenant shall institute measures for reporting, investigating and remediating any Privacy Shield related complaints.

 

E.                
The provisions of this Section 11.13 survive any Termination.

 

11.14     
Waiver. The failure of either party to insist upon a strict performance of any of the terms or provisions of this
Agreement, or to exercise any option, right or remedy contained in this Agreement, shall not be construed as a waiver or as a relinquishment
for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect.
No waiver by either party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed
by such party.

 

11.15     
Partial Invalidity. If any portion of this Agreement shall be declared invalid by order, decree or judgment of a
court, or otherwise, this Agreement shall be construed as if such portion had not been so inserted except when such construction
would operate as an undue hardship on Manager or Tenant or constitute a substantial deviation from the general intent and purpose
of said parties as reflected in this Agreement.

 

11.16     
Survival. Except as otherwise specifically provided herein, the rights and obligations of the parties herein shall
not survive any Termination.

 

11.17     
Negotiation of Agreement. Tenant and Manager are business entities having substantial experience with the matters
addressed in this Agreement. Tenant and Manager have each fully participated in the negotiation and drafting of this Agreement,
and this Agreement is to be interpreted without regard to any rule or principle that may require ambiguities in a provision to
be construed against the drafter of the provision. No inferences will be drawn from the fact that the final executed version of
this Agreement differs from previous drafts.

 

11.18     
Intentionally Deleted.

 

    54

     

    

 

11.19     
Entire Agreement; Recitals. Subject to Section 11.45, this Agreement and the Incidental Documents, together with
any other writings signed by the parties expressly stated to be supplemental hereto and together with any instruments to be executed
and delivered pursuant to this Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings
and writings, and may be changed only by a writing signed by the parties hereto. The Recitals hereto are incorporated herein by
reference and made a part hereof.

 

11.20     
Affiliates. Manager shall be entitled to contract with companies that are Affiliates (or companies in which Manager
has an ownership interest if such interest is not sufficient to make such a company an Affiliate) to provide goods and/or services
to the Hotels; provided that the prices and/or terms for such goods and/or services are competitive. Additionally, Manager may
contract for the purchase of goods and services for the Hotels with third parties that have other contractual relationships with
Manager, Marriott and their Affiliates, so long as the prices and terms are competitive. In determining, pursuant to the foregoing,
whether such prices and/or terms are competitive, they will be compared to the prices and/or terms which would be available from
reputable and qualified parties for goods and/or services of similar quality, and the goods and/or services which are being purchased
shall be grouped in reasonable categories, rather than being compared item by item. Any dispute as to whether prices and/or terms
are competitive in the market will be resolved by the Expert. The prices paid may include overhead and the allowance of a reasonable
return to Manager’s Affiliates (or companies in which Manager has an ownership interest if such interest is not sufficient
to make such a company an Affiliate), provided that such prices are competitive as provided for herein. Tenant acknowledges and
agrees that, with respect to any purchases of goods or services pursuant to this Section 11.20, and subject to the foregoing qualification
that prices and/or terms are competitive, Manager’s Affiliates may retain for their own benefit any allowances, credits,
rebates, commissions and discounts received with respect to any such purchases.

 

11.21     
Competing Facilities. Neither this Agreement nor anything implied by the relationship between Manager and Tenant
shall prohibit any of the Marriott Companies from constructing, operating, promoting, and/or authorizing others to construct, operate,
or promote one or more Other Marriott Products, or any other lodging concepts, Vacation Club Products, residential units, restaurants,
or other business operations of any type, at any location, including a location proximate to the Sites. Tenant acknowledges, accepts
and agrees further that the Marriott Companies retain the right, from time to time, to construct or operate, or both, or promote
or acquire, or authorize or otherwise license others to construct or operate, or both, or promote or acquire any hotels, lodging
concepts or products, Vacation Club Products, restaurants or other business operations of any type whatsoever, including, but not
by way of limitation, those listed above, at any location including one or more sites that may be adjacent, adjoining or proximate
to the Sites, which business operations may be in direct competition with the Hotels and that any such exercise may adversely affect
the operation of the Hotels.

 

11.22     
Intentionally Deleted.

 

    55

     

    

 

11.23     
Dispute Resolution; Arbitration and Expert Resolution.

 

A.                Arbitration.
Except with respect to those disputes, claims or controversies which pursuant to the terms of this Agreement are to be
settled by an Expert pursuant to Section 11.23.B, all other disputes, claims or controversies between or among the parties
hereto arising out of or relating to this Agreement or the transactions contemplated hereby, including disputes, claims or
controversies relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement
(each, a “Dispute” and collectively, the “Disputes”), or relating in any way to such a
Dispute or Disputes, shall on demand of any party to such Dispute be resolved through binding and final Arbitration
administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules then
in effect (the “Rules”), except as modified herein. For the avoidance of doubt, a Dispute shall include a
Dispute made derivatively on behalf of one party against another.

 

1.                 
Notwithstanding any provision of the Rules to the contrary, there shall be three (3) arbitrators, who shall be appointed
as provided in this Section 11.23.A. Each party shall appoint one arbitrator within fifteen (15) days after receipt by respondent
of a copy of the demand for arbitration. Affiliate claimants on the one hand, or Affiliate respondents on the other hand, shall
be treated as one party, respectively, for purposes of determining the number of arbitrators and the means by which they are selected.
Pursuant to the Rules, the party-appointed arbitrators need not be impartial or independent and shall not be subject to disqualification
for partiality or lack of independence. If the claimants or respondents, as the case may be, fail to appoint their respective party-appointed
arbitrator within fifteen (15) days, the party which has selected an arbitrator shall request the AAA to provide a list of three
(3) arbitrators from the National Roster (as defined in the Rules) (or from the Large, Complex Commercial Case Panel thereof, if
the Procedures for Large, Complex Commercial Disputes apply to the dispute), each of whom shall be neutral, impartial and unaffiliated
with any party and the party that failed to timely appoint an arbitrator shall have ten (10) days to select one (1) of the three
(3) as the second arbitrator; if such party shall again fail to timely select an arbitrator, the AAA shall make the appointment.
The two (2) arbitrators so appointed shall attempt to agree upon a third arbitrator, who shall chair the arbitration. Such chairperson
as may be agreed to by the party-appointed arbitrators need not be selected from the National Roster, but must meet the standards
of the Rules and shall be neutral, impartial and unaffiliated with any party. If the party-appointed arbitrators fail to agree
upon a chairperson within fifteen (15) days of the appointment of the second arbitrator, the chairperson shall be selected from
the National Roster (or, if the Procedures for Large, Complex Commercial Disputes apply to the dispute, from the Large, Complex
Commercial Case Panel thereof) in the manner provided in the Rules and who shall be neutral, impartial and unaffiliated with any
party.

 

2.                 
The place of Arbitration shall be Washington, D.C., unless otherwise agreed by the parties.

 

3.                 
Any document discovery otherwise permissible within the Rules shall be limited to the documents bearing directly on the
parties’ claims and defenses or otherwise necessary to the determination of the matter. Unless the parties otherwise agree,
no more than three (3) depositions of individuals affiliated with the claimant(s) or respondent(s), respectively, may be undertaken
at the discretion of the chairperson in accordance with the Rules. The discretion and/or authority committed by the Rules to the
 “arbitrator” or “arbitrator(s)” shall be vested in the chairperson, who may act individually or in consultation
with the party-appointed arbitrators at the chairperson’s discretion.

 

    56

     

    

 

4.                 
Any question regarding the enforceability of this Section 11.23.A or the demand for arbitration shall be determined in accordance
with the Federal Arbitration Act, 9 U.S.C. §1 et seq. and the body of law interpreting such Act. The Arbitration
Award shall be in writing and may, but shall not be required to, briefly state the findings of fact and conclusions of law on which
it is based.

 

5.                 
Unless, and then only to the extent the arbitrators in the award assess costs and expenses or any part thereof against any
specified party or parties (a) each party involved in a Dispute shall bear its own costs and expenses (including attorneys’
fees); and (b) each party (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and
all respondents, on the other hand, respectively) shall bear the costs and expenses of its (or their) selected arbitrator and the
parties (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the
other hand) shall equally bear the costs and expenses of the third appointed arbitrator.

 

6.                 
The Arbitration Award shall be final and binding upon the parties thereto and shall be the sole and exclusive remedy between
such parties relating to the Dispute, including any claims, counterclaims, issues or accounting presented to the arbitrators. Judgment
upon the Arbitration Award may be entered in any court having jurisdiction. To the fullest extent permitted by law, no application
or appeal to any court of competent jurisdiction may be made in connection with any question of law arising in the course of Arbitration
or with respect to any award made except for actions relating to enforcement of this Section 11.23.A to arbitrate or any arbitral
award issued hereunder and except for actions seeking interim or other provisional relief in aid of arbitration proceedings in
any court of competent jurisdiction.

 

7.                 
Any monetary award shall be made and payable in U.S. dollars free of any tax, deduction or offset. The party against which
the Arbitration Award assesses a monetary obligation shall pay that obligation on or before the 30th day following the date of
the Arbitration Award or such other date as the Arbitration Award may provide.

 

B.                 
Expert Resolution. Notwithstanding the terms and provisions of Section 11.23.A above, when this Agreement expressly
calls for a matter or dispute to be decided or resolved by the Expert, the following terms apply:

 

1.                 
Tenant or Manager may by notice to the other request that a matter or dispute be submitted to the Expert in accordance with
this Agreement. Tenant and Manager will each select an Expert within ten (10) days after the non-requesting party’s receipt
of the notice. If Tenant or Manager fails to select an Expert within the ten (10)-day period above, the Expert selected by the
other party will be the sole Expert. Within ten (10) days after the parties have each selected an Expert, the two (2) Experts will
select a third Expert. If the two (2) Experts fail to select a third Expert, then the third Expert will be selected by JAMS (“JAMS”).
If there is more than one (1) Expert, then the decision of the Expert will be made by a majority vote.

 

    57

     

    

 

2.                  An
Expert must be an independent, nationally recognized consulting firm or individual with at least ten (10) years of
experience in the lodging industry and must be qualified to resolve the issue in question. An individual or consulting firm
cannot be an Expert if Tenant, Manager or their Affiliates have, directly or indirectly, employed or retained such individual
or consulting firm within two (2) years before the date of selection. The engagement terms for the Expert will obligate the
Expert to (i) notify Tenant and Manager in writing of the Expert’s decision within forty-five (45) days after the date
on which the last Expert was selected, or such other period as Tenant and Manager may agree; and (ii) establish a timetable
for making submissions and replies.

 

3.                 
Tenant and Manager may each make written submissions to the Expert and will provide a copy to the other party. The other
party may comment on such submission within the time periods established under Section 11.23.B(2). Until an Expert decision is
rendered, neither party may communicate with any Expert about the subject matter submitted for decision without disclosing the
content of any such communication to the other party. The costs of the Expert and the proceedings will be paid as directed by the
Expert, unless otherwise provided in this Agreement, and the Expert may direct that these costs be treated as Deductions.

 

4.                 
The Expert will decide the matter by applying the standards specified in the relevant provisions of this Agreement. If this
Agreement does not contain a standard for the matter, then the Expert will apply the standards for upper-moderate-price-sector,
select-service hotels comparable to the Hotel in overall quality, and size and quality of guest rooms, facilities and amenities,
considering the long term profitability of the Hotel and the operation of the Hotel in accordance with System Standards.

 

5.                 
The use of the Expert is the exclusive remedy and neither Tenant nor Manager may attempt to adjudicate the matter in any
other manner or forum. The Expert’s decision will be final and binding on the parties and cannot be challenged, whether by
arbitration, in court or otherwise.

 

6.                 
The provisions of this Section 11.23.B survive any Termination.

 

11.24      Permitted
Contests. Manager shall have the right to contest the amount or validity of any Imposition,
Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance, charge or claim
(collectively, “Claims”) as to any Hotel, by appropriate legal proceedings, conducted in good faith and
with due diligence, provided that (a) such contest shall not cause Landlord or Tenant to be in default under any
Qualified Mortgage or reasonably be expected to result in a lien attaching to such Hotel, unless such lien is fully bonded or
otherwise secured to the reasonable satisfaction of Landlord, (b) no part of a Hotel nor any Gross Revenues therefrom
shall be in any immediate danger of sale, forfeiture, attachment or loss, and (c) Manager shall indemnify and hold
harmless Tenant and Landlord from and against any cost, claim, damage, penalty or reasonable expense, including reasonable
attorneys’ fees, incurred by Tenant or Landlord in connection therewith or as a result thereof. Tenant agrees to sign
all required applications and otherwise cooperate with Manager in expediting the matter, provided that Tenant shall not
thereby be subjected to any liability therefor (including, without limitation, for the payment of any costs or expenses in
connection therewith), and any such costs or expenses incurred in connection therewith shall be paid as a Deduction with
respect to the applicable Hotel. Landlord shall, in the Owner Agreement, agree to join in any such proceedings if required
legally to prosecute such contest, provided that Landlord shall not thereby be subjected to any liability therefor
(including, without limitation, for the payment of any costs or expenses in connection therewith) and Manager agrees by
agreement in form and substance reasonably satisfactory to Landlord, to assume and indemnify Landlord with respect to the
same. Any amounts paid under any such indemnity of Manager to Tenant or Landlord shall be a Deduction with respect to such
Hotel. Any refund of any Claims and such charges and penalties or interest thereon which amount shall be paid to Manager and
included in Gross Revenues of such Hotel.

 

    58

     

    

 

11.25      
Indemnification. Subject to the provisions of Section 9.04 hereof, Manager shall protect,
indemnify and hold harmless Tenant and Landlord for, from and against all liabilities, obligations, claims, damages, penalties,
causes of action, costs and reasonable expenses (including, without limitation, reasonable attorneys’ fees), to the maximum
extent permitted by law, imposed upon or incurred by or asserted against Tenant or Landlord by reason of: (a) Manager’s
failure to pay any Impositions that are the obligations of Manager to pay pursuant to the applicable provisions of this Agreement,
and (b) infringement and other claims by third parties relating to the proprietary marks of Marriott or Manager with respect
to any Hotel; provided, however, that Manager’s obligations hereunder shall not apply to any liability, obligation, claim,
damage, penalty, cause of action, cost or expense to the extent the same arises from any negligence or willful misconduct of Tenant
and/or Landlord, or their respective Affiliates, employees, agents or invitees. Manager, at its expense, shall contest, resist
and defend any such claim, action or proceeding asserted or instituted against Tenant or Landlord (and shall not be responsible
for any duplicative attorneys’ fees incurred by Tenant or Landlord) or may compromise or otherwise dispose of the same, with
Tenant’s or Landlord’s (as applicable) prior written consent (which consent may not be unreasonably withheld or delayed).
In the event Tenant or Landlord shall unreasonably withhold or delay its consent, Manager shall not be liable pursuant to this
Section 11.25 for any incremental increase in costs or expenses resulting therefrom. The obligations of Manager under this Section
11.25 are in addition to the obligations set forth in Section 11.08.D and shall survive a Termination of this Agreement. The indemnification
provided for in this Section 11.25 shall not be applicable to Section 11.08 Costs, with respect to which a specific indemnity is
provided in Section 11.08 hereof, to the extent addressed therein.

 

11.26      
Estoppel Certificates. Each party to this Agreement shall at any time and from time to time, upon not less than thirty
(30) days’ prior notice from the other party, execute, acknowledge and deliver to such other party, or to any third party
specified by such other party, a statement in writing: (a) certifying that this Agreement is unmodified and in full force
and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications);
(b) stating whether or not to the best knowledge of the certifying party (i) there is a continuing default by the non-certifying
party in the performance or observance of any covenant, agreement or condition contained in this Agreement, or (ii) there
shall have occurred any event which, with the giving of notice or passage of time or both, would become such a default, and, if
so, specifying each such default or occurrence of which the certifying party may have knowledge; (c) stating the date to which
distributions of Operating Profit have been made; and (d) stating such other information as the non-certifying party may reasonably
request. Such statement shall be binding upon the certifying party and may be relied upon by the non-certifying party and/or such
third party specified by the non-certifying party as aforesaid, including, without limitation its lenders and any prospective purchaser
or mortgagee of any Hotel or the leasehold estate created by the Lease. The obligations set forth in this Section 11.26 shall survive
any Termination (that is, each party shall, on request, within the time period described above, execute and deliver to the non-certifying
party and to any such third party a statement certifying that this Agreement has been terminated).

 

    59

     

    

 

11.27     
Intentionally Deleted.

 

11.28     
Intentionally Deleted.

 

11.29     
Remedies Cumulative. To the maximum extent permitted by law, each legal, equitable or contractual right, power and
remedy of Tenant or Manager, now or hereafter provided either in this Agreement or by statute or otherwise, shall be cumulative
and concurrent and shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by
Tenant or Manager (as applicable) of any one or more of such rights, powers and remedies shall not preclude the simultaneous or
subsequent exercise by Tenant of any or all of such rights, powers and remedies.

 

11.30      
Amendments and Modifications. This Agreement shall not be modified or amended except in writing signed by both parties.

 

11.31      
Construction; Nonrecourse. Anything contained in this Agreement to the contrary notwithstanding, all claims against,
and liabilities of, Manager or Tenant arising prior to any date of termination or expiration of this Agreement with respect to
any Hotel shall survive such termination or expiration. Neither this Agreement nor any provision hereof may be changed, waived,
discharged or terminated except by an instrument in writing signed by all the parties thereto. All the terms and provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and
assigns. Each term or provision of this Agreement to be performed by Manager shall be construed as an independent covenant and
condition. Time is of the essence with respect to the exercise of any rights of Manager or Tenant under this Agreement. Except
as otherwise set forth in this Agreement, any obligations arising prior to the expiration or sooner termination of this Agreement
of Manager (including without limitation, any monetary, repair and indemnification obligations) and Tenant shall survive the expiration
or sooner termination of this Agreement. Nothing contained in this Agreement shall be construed to create or impose any liabilities
or obligations and no such liabilities or obligations shall be imposed on any of the shareholders, beneficial owners, direct or
indirect, officers, directors, trustees, employees or agents of Tenant or its Affiliates or Manager or its Affiliates for the payment
or performance of the obligations or liabilities of Tenant or Manager, as applicable, hereunder.

 

11.32     
Counterparts; Headings. This Agreement may be executed in one or more counterparts (including by means of facsimile
or via email in electronic or portable document format (.pdf) signature pages), each of which shall be deemed an original but all
of which together will constitute one and the same instrument. Headings in this Agreement are for purposes of reference only and
shall not limit or affect the meaning of the provisions hereof.

 

11.33       No
Political Contributions. Notwithstanding any provision in this Agreement to the contrary, no money or property of the
Hotels shall be paid or used or offered, nor shall Tenant or Manager directly or indirectly use or offer, consent or agree to
use or offer, any money or property of the Hotels (i) in aid of any political party, committee or organization,
(ii) in aid of any corporation, joint stock or other association organized or maintained for political purposes,
(iii) in aid of any candidate for political office or nomination for such office, (iv) in connection with any
election, (v) for any political purpose whatever, or (vi) for the reimbursement or indemnification of any person
for any money or property so used.

 

    60

     

    

 

11.34      
Single Agreement. The parties hereto acknowledge and agree that this Agreement and the Other Management Agreements
are intended to constitute, and shall constitute, a single transaction.

 

11.35       REIT
Qualification. Manager shall not take any action which would cause Landlord’s rental income from Tenant under the Lease
for the Hotels to fail to qualify as “rents from real property” pursuant to Sections 856(d)(8)(B) and 856(d)(9) of
the Code.

 

11.36     
Further Compliance With Section 856(d) of the Code. Manager represents that, as of the Effective Date, it is an “eligible
independent contractor” as defined under Section 856(d)(9)(A) of the Code, and further agrees that it shall maintain such
status except to the extent events outside of Manager’s control may affect Manager’s independent contractor status.
Landlord, Manager and Tenant agree to cooperate in good faith to the purpose and effect that Manager retain such status. This covenant
shall apply for so long as one or more of the Hotels are owned by Landlord (or a successor or permitted assignee) and leased to
Tenant (or a successor or a permitted assignee) as part of an ownership structure that is subject to REIT tax requirements. Without
limiting the foregoing, Manager shall do each of the foregoing:

 

A.                
Manager shall exercise its powers, privileges, responsibilities and obligations under this Agreement (and related documents)
so as to cause each Hotel to qualify as a “qualified lodging facility” pursuant to Section 856(d)(9)(D) of the Code.
In furtherance of the foregoing, Manager shall comply with any regulations or other administrative guidance now or hereafter existing
with respect to qualification as an “eligible independent contractor” under said Section 856(d)(9)(A). Without limiting
any of the foregoing, Manager shall not authorize any wagering activities to be conducted at or in connection with any Hotel and
Manager shall ensure that at least one-half of the guest rooms in each such Hotel are used on a transient basis and that no Hotel
will include amenities and facilities which are not customary for similarly situated properties.

 

B.                 
None of Manager or any of its Affiliates (either individually or collectively) shall own, within the meaning of Section
856(d)(5) of the Code, either directly or indirectly, more than thirty-five percent (35%) of the shares of SVC (whether by vote,
value or number of shares).

 

C.                 
To the extent within the reasonable control of Manager and each Affiliate, neither Manager nor any Affiliate shall permit
more than thirty-five percent (35%) of the total combined voting power of Manager’s or such Affiliates outstanding stock
(or thirty-five percent (35%) of the total shares of all classes of its outstanding stock) to be owned, within the meaning of Section
856(d)(5) of the Code, directly or indirectly, by one or more persons owning thirty-five percent (35%) or more of the outstanding
stock of SVC and Manager and its Affiliates shall otherwise comply with any regulations or other administrative guidance now or
hereafter existing under said Section 856(d)(5) of the Code with respect to such ownership limits.

 

    61

     

    

 

D.                 Manager,
or a person who is a “related person” within the meaning of Section 856(d)(9)(F) of the Code (a
 “Related Person”), shall be actively engaged in the trade or business of operating or managing
 “qualified lodging facilities” for one or more persons who are not Related Persons with respect to SVC or Tenant
(“Unrelated Persons”). Manager or such Related Person shall derive at least ten percent (10%) of each of
its revenue and profit from operating or managing “qualified operating facilities” within the meaning of Section
856(d)(9)(D) of the Code for Unrelated Persons and shall comply with any regulations or other administrative guidance now or
hereafter existing under Section 856(d)(9) of the Code with respect to the amount of hotel management business that needs to
be conducted with Unrelated Persons in order for Manager to qualify as an “eligible independent contractor” under
said Section 856(d)(9).

 

11.37      
Adverse Regulatory Event. In the event of an Adverse Regulatory Event arising from or in connection with this Agreement,
Tenant and Manager shall work together in good faith to amend this Agreement to eliminate the impact of such Adverse Regulatory
Effect. For purposes of this Agreement, the term “Adverse Regulatory Effect” means any time that a law, statute,
ordinance, code, rule or regulation imposes upon Tenant (or could imposes upon Tenant in Tenant’s reasonable opinion), any
material threat to either Landlord’s or Landlord’s Affiliate’s status as a “real estate investment trust”
under the Code or to the treatment of amounts paid to Landlord as “rents from real property” under Section 856(d) of
the Code. Each of Manager and Tenant shall inform the other of any Adverse Regulatory Event of which it is aware and which it believes
likely to impair compliance of any of the Hotels with respect to the aforementioned sections of the Code.

 

11.38      
Commercial Leases. For so long as one or more of the Hotels are owned by Landlord and leased to Tenant as part of
an ownership structure that is subject to REIT tax requirements, Manager agrees that Manager shall not enter into any sublease
with respect to any Hotel (or any part thereof) without first providing Landlord with a copy thereof. Landlord shall have twenty
(20) days from the date of its receipt of such proposed sublease to give written notice to Manager indicating whether such sublease
would, in Landlord’s reasonable judgment, provide for a rental to be paid by the sublessee thereunder based (or considered
to be based), in whole or in part, on the income or profits derived by the business activities of the sublessee, or any other formula,
such that any portion of the rent payable under the sublease would fail to qualify as “rents from real property” within
the meaning of Section 856(d) of the Code, or any similar or successor provisions thereto. If Landlord provides timely notice of
its determination that such proposed sublease would provide for such a rental then Manager will not enter into such proposed sublease.
If Landlord shall fail to give Manager such written notice within such twenty (20) day period, Landlord shall be estopped from
claiming that such sublease violates the terms of this Section 11.38.

 

11.39      
Waiver of Jury Trial. In the event there occurs a Dispute, or an aspect of a Dispute, which under the Rules must
be referred to a court for determination, each of Tenant and Manager hereby absolutely, irrevocably and unconditionally waive trial
by jury in connection with any litigation, action, suit or proceeding relating to the resolution of such Dispute. With respect
to any Hotel located in the State of California, the foregoing provisions of this Section 11.39 constitute the written consent
of Tenant and Manager to waive their right to a jury trial, as contemplated by CCP 631(d)(2) and either party may submit the provisions
of this Section 11.39 to the applicable court or judicial body to evidence such consent of the parties.

 

    62

     

    

 

11.40     
Waiver of Consequential, Incidental, Special & Punitive Damages. Tenant and Manager each absolutely, irrevocably
and unconditionally waives the right to claim or receive consequential, incidental, special or punitive damages in any litigation
arising out of or in connection with this Agreement or any other agreement or document, the relationships of the parties or any
actions or omissions in connection with any of the foregoing. The provisions of this Section 11.40 survive any Termination.

 

11.41     
Equity Interests in Tenant. Tenant represents and warrants that Exhibit E contains a list of all of the
direct and indirect owners of Tenant, excluding any public shareholders of SVC. Tenant represents, warrants, and will ensure throughout
the Term, that neither Tenant nor any of its Affiliates nor any other Person that directly or indirectly owns, has an ownership
interest in, or controls Tenant or any of its Affiliates, is a Restricted Person; provided, however, that nothing
in this sentence shall apply to any public shareholder of SVC.

 

11.42     
No Rights of Third Parties. This Agreement does not give any rights or benefits to any Person that is not a party
to this Agreement, except as provided in this Agreement. To the extent that any Affiliate of Manager or other Person is expressly
identified as having particular rights or benefits under this Agreement, such Person is entitled to enforce those rights and enjoy
those benefits in accordance with this Agreement. The provisions of this Section 11.42 survive any Termination.

 

11.43     
Intentionally Deleted.

 

11.44     
Non-Hotel Marketing Activities by Tenant. The performance of each Hotel depends on an exclusive brand affiliation
with Manager and its Affiliates, and Manager has no obligation to allow Tenant or any third party to use any portion of such Hotel
for any activities relating to the marketing, sale or operation of any Vacation Club Products developed, marketed, sold or operated
by Tenant or any third party except, if approved by Manager, Vacation Club Products operated under the “Marriott Vacation
Club,” “Grand Residences by Marriott,” “Pulse,” or Ritz Carlton brands or such other brands as Manager
or its Affiliates may license in the future to Marriott Vacations Worldwide or its Affiliates (or their permitted successors or
assigns).

 

11.45     
Single Agreement; Integration. It is expressly acknowledged and agreed by Manager and
Tenant that the underlying terms and conditions of this Agreement, the Pooling Agreement, the Marriott Guaranty Agreement and each
and every other document and agreement entered into in connection herewith or therewith and/or contemplated hereby or thereby have
been negotiated by the parties as a single integrated transaction.

 

11.46     
Prior Management Agreement. For the avoidance of doubt, the Prior Management Agreement
shall continue to govern the rights and obligations of the parties with respect to any period prior to the Effective Date, and
this Agreement shall govern the rights and obligations of the parties with respect to any period from and after the Effective Date.

 

    63

     

    

 

ARTICLE XII

 

DEFINITION OF TERMS

 

12.01     
Definition of Terms. The following terms when used in this Agreement and the Addenda attached hereto shall have the
meanings indicated:

 

“AAA”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Above-Property
Programs & Services” shall have the meaning ascribed to such term in Section 1.03.B hereof.

 

“Accounting
Period” shall mean a calendar month. Manager, in its discretion, may change the Accounting Period to such other period
that Manager implements for the System.

 

“Accounting
Period Statement” shall have the meaning ascribed to such term in Section 4.01.A hereof.

 

“Addenda”
or “Addendum” shall mean any addendum attached hereto from time to time.

 

“Additional
Manager Advances” shall mean advances by Manager under Sections 3.02.C, 4.01.E, 4.03.D, 4.05.A and 5.07.D hereof.

 

“Additional
Marketing Programs” shall have the meaning ascribed to such term in Section 1.03.D hereof.

 

“Additional
Marriott Advances” shall mean Additional Marriott Advances under the Pooling Agreement, and if the Pooling Agreement
does not apply to any Hotel, then the portion of such Additional Marriott Advances determined to be allocable to such Hotel in
accordance with the Pooling Agreement.

 

“Additional
Working Capital” shall have the meaning ascribed to such term in Section 4.05.A hereof.

 

“Adverse Regulatory
Effect” shall have the meaning ascribed to such term in Section 11.37 hereof.

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control
with such Person. For purposes of this definition, the term “control” (including the terms “controlling,”
 “controlled by” and “under common control with”) of a Person means the possession, directly or indirectly,
of the power: (i) to vote fifty percent (50%) or more of the voting stock or equity interests of such Person; or (ii) to
direct or cause the direction of the management and policies of such Person, whether through the ownership of voting stock or equity
interests, by contract or otherwise.

 

“Aggregate
Amount Funded” shall have the meaning set forth in the Marriott Guaranty Agreement.

 

    64

     

    

 

“Aggregate
Tenant’s Priority” shall have the meaning set forth in the Pooling Agreement.

 

“Agreement”
shall have the meaning ascribed to such term in the Preamble, as the same may be amended, modified or supplemented from time to
time.

 

“Annual Operating
Projection” shall have the meaning ascribed to such term in Section 4.04 hereof.

 

“Annual Operating
Statement” shall have the meaning ascribed to such term in Section 4.01.C.

 

“Arbitration”
shall mean the process described in Section 11.23.A hereof.

 

“Arbitration
Award” shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Available
Funds” shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Award”
shall have the meaning ascribed to such term in the Lease.

 

“Base
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to two percent (2%)
of Gross Revenues for such Fiscal Year or portion thereof.

 

“Buildings”
shall have the meaning ascribed to such term in Section A of the Recitals.

 

“Business
Day” shall mean any day other than Saturday, Sunday, or any other day on which banking institutions in the Commonwealth
of Massachusetts or the State of Maryland are authorized by law or executive action to close.

 

“Capital Addition”
shall have the meaning ascribed to such term in Section 5.08.A hereof.

 

“Central Office
Services” shall have the meaning ascribed to such term in Exhibit B.

 

“Chain Services”
shall have the meaning ascribed to such term in Section 1.03.C.

 

“Claims”
shall have the meaning ascribed to such term in Section 11.24 hereof.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Condemnation”
shall mean, with respect to any Hotel, (a) the exercise of any governmental power with respect to such Hotel or any interest
therein, whether by legal proceedings or otherwise, by a Condemnor of its power of condemnation, (b) a voluntary sale or transfer
of any Hotel or any interest therein, to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation
are pending, or (c) a taking or voluntary conveyance of any Hotel or any interest therein, or right accruing thereto or use
thereof, as the result or in settlement of any Condemnation or other eminent domain proceeding affecting any Hotel or any interest
therein, whether or not the same shall have actually been commenced.

 

    65

     

    

 

“Condemnor”
shall mean any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

“Controlling
Interest” shall mean (i) if the Person is a corporation, the right to exercise, directly or indirectly, more than
fifty percent (50%) of the voting rights attributable to the shares of such Person (through ownership of such shares or by contract),
or (ii) if the Person is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction
of the business, management or policies of such Person.

 

“Corporate
Transfer” shall have the meaning ascribed to such term in Section 10.01.A hereof.

 

“CY Tenant”
shall mean HPT CY TRS, Inc., a Maryland corporation.

 

“Deduction”
shall have the meaning ascribed to such term in the definition of Operating Profit. Deductions shall not include (i) payments
with respect to items for which Manager has given an indemnity, to the extent of such indemnity, (ii) payments with respect
to items for which Manager has agreed to be liable at its own cost and expense herein, (iii) any item specifically stated
not to be a Deduction herein, and (iv) any item for which Manager or any Affiliate has agreed to be liable (other than at
the cost and expense of Tenant or any Affiliate) under the terms of any Incidental Document or any other agreement between Manager
or any Affiliate and Tenant or any Affiliate.

 

“Disbursement
Rate” shall have the meaning ascribed to such term in the Lease.

 

“Disputes”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Effective
Date” shall have the meaning ascribed to such term in the Preamble.

 

“Emergency
Funding” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Employee
Claims” shall mean any claims by any Hotel employee or governmental or quasi governmental entity against Tenant or Manager
with respect to the employment of Hotel employees, including claims that (i) are resolved by litigation or by settlement;
(ii) involve allegations that any employment related contracts affecting the Hotel employees have been breached; or (iii) involve
allegations that one or more Employment Laws has been violated. “Employee Claims” exclude claims for workers’
compensation benefits or for unemployment benefits.

 

“Employment
Laws” shall mean any Legal Requirements relating to employment, conditions of employment, benefits, compensation or termination
of employment, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Workers Adjustment
and Retraining Act, the Occupational Safety and Health Act, the Immigration Reform and Control Act of 1986, the Polygraph Protection
Act of 1988 and the Americans With Disabilities Act of 1990.

 

    66

     

    

 

“Environmental
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Environmental
Laws” shall have the meaning ascribed to such term in Section 11.08.B hereof.

 

“Environmental
Notice” shall have the meaning ascribed to such term in Section 11.08.A hereof.

 

“Environmental
Obligation” shall have the meaning ascribed to such term in Section 11.08.A hereof.

 

“Essex House”
shall mean Essex House Condominium Corporation, a Delaware corporation.

 

“Event of
Default” shall mean any Tenant Event of Default or Manager Event of Default, as the context may require.

 

“Execution
Date” shall have the meaning ascribed to such term in the Preamble.

 

“Existing
CC&Rs” shall have the meaning ascribed to such term in Section 8.04.A hereof.

 

“Exit Hotel”
shall mean a Hotel designated as a property to be sold in accordance with the terms of the Exit Hotel Agreement.

 

“Exit Hotel
Agreement” shall mean that certain Amended and Restated Exit Hotel Agreement, dated as of the Execution Date but to be
effective as of the Effective Date, by and among, inter alia, Landlord, HPTCY Landlord, SVC, Tenant, CY Tenant, Manager
and Marriott, as the same may be amended, modified or supplemented from time to time.

 

“Expert”
means the expert or experts selected in accordance with Section 11.23.B hereof.

 

“Extraordinary
Event” shall mean any of the following events, regardless of the location or duration of the events: acts of nature;
fires and explosions; acts of war, armed conflict or other hostile action; civil war, rebellion, revolution, insurrection or usurpation
of sovereign power; riots or other civil unrest; terrorism; sabotage; chemical or biological events; nuclear events; epidemics
and disease related events; bombing; strikes, lockouts or other labor disturbances; embargoes or blockades; shortage of critical
materials or supplies; action or inaction of governmental authorities that has a material adverse effect on Marriott, Landlord,
Tenant or Manager; or any other events beyond the reasonable control of Marriott, Landlord, Tenant or Manager, excluding general
economic or market conditions that are not caused by any of the events described in this definition.

 

“FF&E”
shall mean furniture, fixtures and equipment, including without limitation: furnishings, fixtures, decorative items, signage, audio-visual
equipment, kitchen equipment and appliances, cabinetry, laundry equipment, housekeeping equipment, telecommunications systems,
security systems and front desk and back-of-the house computer equipment; provided, however, that the term “FF&E”
shall not include Fixed Asset Supplies or Software.

 

    67

     

    

 

“FF&E
Termination” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Finance
Date” shall mean the date of the closing of any proposed Mortgage.

 

“First Incentive
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to forty percent (40%)
of Operating Profit remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (5) for such Fiscal
Year or portion thereof.

 

“Fiscal Year”
shall mean (i) a calendar year (which is sometimes called a “full” Fiscal Year in this Agreement); (ii) any
partial Fiscal Year between the Effective Date and the first full Fiscal Year; and (iii) the partial Fiscal Year, if any,
in which a Termination occurs. Manager may modify the meaning of “Fiscal Year” if it changes its fiscal year, and if
so will adjust the reporting and accounting procedures under this Agreement, but the adjustment will not alter the Term or reduce
the distributions of Operating Profit or other payments due under this Agreement; provided, however, that for so
long as the Pooling Agreement is in effect, Manager’s Fiscal Year shall not change unless conforming changes are made to
the Fiscal Year applicable to all Portfolio Properties then subject to the Pooling Agreement.

 

“Fixed Asset
Supplies” shall mean items included within “Operating Equipment” under the Uniform System of Accounts that
may be consumed in the operation of the Hotels or are not capitalized, including, but not limited to, linen, china, glassware,
tableware, uniforms, and similar items used in the operation of the Hotels.

 

“Foreclosure”
shall mean any exercise of remedies available to a Mortgagee upon a default under a Mortgage that results or may result in a transfer
of title to, control of, or possession of the applicable Hotel, including (i) transfer by judicial foreclosure; (ii) transfer
by deed in lieu of foreclosure; (iii) appointment of an administrator, receiver, trustee or liquidator; (iv) transfer
of ownership or control of Tenant (for example, by exercise of a stock pledge); (v) transfer resulting from an order given
in a bankruptcy, reorganization, insolvency or similar proceeding; (vi) if Tenant leases such Hotel, an assignment, novation
or termination of Tenant’s interest in the lease; or (vii) transfer through any other judicial or non-judicial exercise
of Mortgagee’s remedies.

 

“Franchise
Agreement” means, with respect to each Hotel, any franchise agreement entered into with respect to such Hotel by and
between Marriott and Tenant, from and after the date hereof, and in accordance with the terms hereof, as the same may be amended,
modified or supplemented from time to time.

 

“Franchise
Conversion” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Franchisor”
shall have the meaning ascribed to such term in the applicable Franchise Agreement.

 

“Future CC&Rs”
shall have the meaning ascribed to such term in Section 8.04.A hereof.

 

“GAAP”
shall mean generally accepted accounting principles, consistently applied.

 

    68

     

    

 

“Government
Agencies” shall mean any court, agency, authority, board (including, without limitation, environmental protection, planning
and zoning), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental or quasi-governmental
unit of the United States or the State or any county or any political subdivision of any of the foregoing, whether now or hereafter
in existence, having jurisdiction over Tenant or the Hotels operated thereon.

 

“Gross Revenues”
shall mean for any period with respect to each Hotel, all revenues and receipts of every kind derived from operating such Hotel
and all departments and parts thereof during such period, including, but not limited to: income (from both cash and credit transactions)
after deductions for bad debts and discounts for prompt cash payments and refunds from rental of Guest Rooms and other spaces at
the Hotels, telephone charges, stores, offices, exhibit or sales space of every kind; license, lease and concession fees and rentals
(not including gross receipts of licensees, lessees and concessionaires); income from vending machines; income from parking; health
club membership fees; food and beverage sales; wholesale and retail sales of merchandise; service charges; and proceeds, if any,
from business interruption or other loss of income insurance; provided, however, that Gross Revenues shall not include
the following: gratuities to employees of the Hotels; federal, state or municipal excise, sales or use taxes or any other taxes
collected directly from patrons or guests or included as part of the sales price of any goods or services; proceeds from the sale
of FF&E; interest received or accrued with respect to the funds in the Reserves or the other operating accounts of the Hotels;
any refunds, rebates, discounts and credits of a similar nature, given, paid or returned in the course of obtaining Gross Revenues
or components thereof; insurance proceeds (other than proceeds from business interruption or other loss of income insurance); Condemnation
proceeds (other than for a temporary taking); or any proceeds from any Sale of a Hotel or from the refinancing of any debt encumbering
any Hotel.

 

“Gross Room
Revenues” shall include with respect to each Hotel, all gross revenues attributable to or payable for rental of guest
rooms at such Hotel, after deductions for bad debts and discounts for prompt cash payments and refunds from Rental of Guest Rooms,
including, without limitation, all credit transactions, whether or not collected, but excluding (i) any sales or room taxes
collected by Manager for transmittal to the appropriate taxing authority, and (ii) any revenues from sales or rentals of ancillary
goods, such as entertainment rentals, telephone income and fireplace log sales and sales from in-room service bars. Gross Room
Revenues shall also include the proceeds from any business interruption insurance applicable to loss of revenues due to the non-availability
of guest rooms and for guaranteed no-show revenue which is collected. Gross Room Revenues shall be accounted for in accordance
with the Uniform System of Accounts.

 

“Ground Lease
Rent” shall have the meaning ascribed to such term in Section 3.02.B(2) hereof.

 

“Guaranty
Term” shall have the meaning given such term in the Marriott Guaranty Agreement.

 

“Guaranty
Termination Event” means the expiration of the Guaranty Term or the termination of Marriott’s obligation to advance
funds under the Marriott Guaranty Agreement pursuant to the terms of the Marriott Guaranty Agreement.

 

    69

     

    

 

“Guest Personal
Data” means any information relating to identified or identifiable actual or potential guests or customers of the Hotels
or Other Marriott Products, including contact information (such as addresses, phone numbers, email and SMS addresses), Guest Preferences,
and any other information collected from or about actual or potential guests or customers of the Hotels or Other Marriott Products
operated or licensed by Manager or its Affiliates.

 

“Guest Preferences”
means guest histories, preferences, loyalty program activity and any other related information collected from actual or potential
guests or customers of the Hotels or Other Marriott Products operated or licensed by Manager or its Affiliates through the Loyalty
Programs or other means.

 

“Guest Room”
shall mean with respect to each Hotel, a lodging unit in such Hotel.

 

“Hazardous
Substance” shall mean any substance:

 

		·	the presence of which requires or may hereafter require notification, investigation or remediation
under any federal, state or local statute, regulation, rule, ordinance, order, action or policy; or

 

		·	which is or becomes defined as a “hazardous waste,” “hazardous material”
or “hazardous substance” or “pollutant” or “contaminant” under any present or future federal,
state or local statute, regulation, rule or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. et seq.) and the Resource Conservation and Recovery Act (42 U.S.C.
section 6901 et seq.) and the regulations promulgated thereunder; or

 

		·	which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic
or otherwise hazardous and is or becomes regulated by any governmental authority, agency, department, commission, board, agency
or instrumentality of the United States, any state of the United States, or any political subdivision thereof; or

 

		·	the presence of which at a Hotel causes or materially threatens to cause an unlawful nuisance upon
such Hotel or to adjacent properties or poses or materially threatens to pose a hazard to such Hotel or to the health or safety
of persons on or about such Hotel; or

 

		·	without limitation, which contains gasoline, diesel fuel or other petroleum hydrocarbons or volatile
organic compounds; or

 

		·	without limitation, which contains polychlorinated biphenyls (PCBs) or asbestos or urea formaldehyde
foam insulation; or

 

		·	without limitation, which contains or emits radioactive particles, waves or material; or

 

		·	without limitation, constitutes materials which are now or may hereafter be subject to regulation
pursuant to the Material Waste Tracking Act of 1988, or any applicable laws promulgated by any Government Agencies.

 

    70

     

    

 

“Hotel”
shall mean each Site together with the Buildings and all other improvements constructed or to be constructed on such Site pursuant
to this Agreement, and all FF&E installed or located on such Site or in the Buildings, and all easements or other appurtenant
rights thereto owned by Landlord together with, for purposes of this Agreement, all office equipment, telephone equipment, motor
vehicles, and other equipment leased by Tenant as permitted hereunder and Fixed Asset Supplies at such Hotel, in each of the foregoing
instances as and when the same hereunder is subject to the terms of this Agreement.

 

“Hotel Employee
Personal Data” shall mean Personal Data relating to any Hotel employee, job applicant or temporary worker about whom
the Hotels or any Other Marriott Products operated or licensed by Manager or any of its Affiliates collect Personal Data, including
name, address, date of birth, compensation, national ID number, passport number, driver’s license number, social security
number, tax ID number or other ID number.

 

“Hotel Improvements”
means the building or buildings containing guest rooms, a lobby, restaurants, meeting rooms, administrative facilities, parking
(if located on the Site), other amenities and related facilities, and all other improvements constructed or to be constructed on
the Site under this Agreement.

 

“Hotel Systems”
means all audio visual systems, computer hardware and computer equipment, Software and connectivity and information resources systems
installed at the Hotels or used by Manager or its Affiliates in connection with providing Above-Property Programs & Services
to the Hotels, all of which may be upgraded or changed by Manager or its Affiliates from time to time in their sole discretion.
Examples of Hotel Systems as of the Effective Date are any property management system, point of sale system, front office, back
office and accounting management system, sales and reservations systems, timekeeping and Manager’s automated payroll systems,
telecommunications systems and food and beverage inventory systems, engineering software, and word processing and other personal
computer applications.

 

“HPTCY Landlord”
shall mean HPTCY Properties Trust, a Maryland real estate investment trust.

 

“HPTMI Hawaii”
shall mean HPTMI Hawaii, Inc., a Delaware corporation.

 

“Impositions”
shall have the meaning ascribed to such term in the Lease with the exclusions set forth in Section 7.01.B hereof.

 

“Incidental
Documents” shall mean the Portfolio Agreements and all other documents entered into by Marriott, Manager, Tenant, CY
Tenant, Landlord, HPTCY Landlord, SVC, and/or the managers under the Other Management Agreements in connection with the transactions
contemplated, inter alia, by this Agreement, the Pooling Agreement, the Renovation-Related Agreements and the Marriott Guaranty
Agreement.

 

    71

     

    

 

“Index”
shall mean the Consumer Price Index for Urban Wage Earners and Clerical Workers, All-Cities, All Items 1982–1984 = 100, as
published by the Bureau of Labor Statistics or, in the event publication thereof ceases, by reference to whatever index then published
by the United States Department of Labor at that time is most nearly comparable as a measure of general changes in price levels
for urban areas, as reasonably determined by Manager and Tenant.

 

“Inflation
Index” shall mean the “Gross Domestic Product Implicit Price Deflator” issued by the United States Bureau
of Economic Analysis of the Department of Commerce, or if the Inflation Index is no longer published, any comparable substitute
index mutually agreed by Tenant and Manager published by an agency of the United States government. Any dispute about the selection
of the substitute index will be resolved by the Expert. Whenever an amount is to be “adjusted by the Inflation Index,”
or similar terminology, the adjustment will be equal to the percentage change in the Inflation Index for the month in which the
adjustment is to be made (or if the Inflation Index for that month is not available, the Inflation Index for the most recent month
that is available) as compared to the Inflation Index which was issued for the month in which the Effective Date occurred, unless
otherwise provided in this Agreement.

 

“Initial Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Institutional
Lender” shall mean a commercial bank, investment bank, trust company, savings bank, savings and loan association, commercial
credit corporation, life insurance company, real estate investment trust, pension trust, pension plan or pension fund, a public
or privately held fund engaged in real estate or corporate lending or both, or any other financial institution commonly known as
an institutional lender (or any Affiliate of such institution) in each case having a minimum paid up capital (or net assets in
the case of a pension fund) of $200,000,000, as adjusted by the Inflation Index for the month in which the Finance Date occurs.
A Person is not an “Institutional Lender” if the Person, any of its Affiliates or any other Person that directly or
indirectly owns, has an ownership interest in, or controls the Person or any of its Affiliates is a Restricted Person.

 

“Insurance
Requirements” shall mean all terms of any insurance policy required by this Agreement and all requirements of the issuer
of any such policy and all orders, rules and regulations and any other requirements of the National Board of Fire Underwriters
(or any other body exercising similar functions) binding upon the Hotels.

 

“Insurance
Retentions” shall have the meaning ascribed to such term in Exhibit D hereof.

 

“Inventories”
shall mean “Inventories” as defined in the Uniform System of Accounts, such as, but not limited to, provisions in storerooms,
refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical
supplies; stationery; and other expensed supplies and similar items.

 

“JAMS”
shall have the meaning ascribed to such term in Section 11.23.B(1) hereof.

 

“Landlord”
shall mean as of any date the landlord under the Lease as of such date.

 

“Landlord
Default” shall have the meaning ascribed to such term in Section 9.09 hereof.

 

    72

     

    

 

“Landlord
Sale of a Hotel” shall be as described in the Owner Agreement.

 

“Lease”
shall mean the Amended, Restated and Consolidated Master Lease Agreement between Landlord and Tenant in effect from time to time
relating to the Hotels and other Portfolio Properties and any replacement leases of the Hotels and other Portfolio Properties by
the fee owner thereof to Tenant which provides for Landlord to fund additional capital investment as provided for under such Lease,
which Lease may be amended from time to time, without Manager’s consent, provided the same does not (a) impose any material
cost, expense or obligation upon Manager, or (b) reduce any amounts that would otherwise be payable to Manager hereunder,
or (c) otherwise be expected to interfere with the operation and maintenance of the Hotels or Manager’s obligations
hereunder. Tenant shall provide Manager a copy of any amendment following execution.

 

“Lease Term”
shall have the meaning ascribed to “Term” under the Lease.

 

“Lease Year”
shall mean each Fiscal Year with the initial Lease Year commencing on the commencement of the Lease term and ending on the Friday
closest to December 31.

 

“Legal Requirements”
shall mean, with respect to each Hotel, all federal, state, county, municipal and other governmental statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions affecting such Hotel or the maintenance, construction, alteration or
operation thereof, whether now or hereafter enacted or in existence, including, without limitation, (a) all permits, licenses,
authorizations, certificates and regulations necessary to operate such Hotels, and (b) all covenants, agreements, restrictions
and encumbrances contained in any instruments at any time in force affecting such Hotels which either (i) do not require the
approval of Manager, or (ii) have been approved by Manager as required hereby, including those which may (A) require
material repairs, modifications or alterations in or to such Hotels or (B) in any way materially and adversely affect the
use and enjoyment thereof, but excluding any requirements arising as a result of Landlord’s status as a real estate investment
trust, and (c) all valid and lawful requirements of courts and other government agencies or authorities pertaining to reporting,
licensing, permitting, investigation, remediation and removal of underground improvements (including, without limitation, treatment
or storage tanks, or water, gas or oil wells), or emissions, discharges, releases or threatened releases of Hazardous Substances,
chemical substances, pesticides, petroleum or petroleum products, pollutants, contaminants or hazardous or toxic substances, materials
or wastes whether solid, liquid or gaseous in nature, into the environment, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Substances, underground improvements (including, without
limitation, treatment or storage tanks, or water, gas or oil wells), or pollutants, contaminants or hazardous or toxic substances,
materials or wastes, whether solid, liquid of gaseous in nature.

 

“License”
shall mean any license, permit, decree, act, order, authorization or other approval or instrument which is necessary in order to
operate each Hotel in accordance with Legal Requirements and pursuant to System Standards and otherwise in accordance with this
Agreement.

 

“Life
Safety Event” shall mean the occurrence of one or more of the following at a Hotel: (a) an event that presents an
imminent threat to the health and/or safety of persons or property on or about such Hotel; or (b) any other event that
materially or adversely impacts such Hotel and for which the failure to take timely and appropriate remedial action may
subject Manager, Landlord, Tenant, their Affiliates or any of their respective directors, managers, officers or employees to
civil or criminal liability (other than de minimis civil fines or fees).

 

    73

     

    

 

“Loyalty Programs”
shall mean loyalty, recognition, affinity and other programs designed to promote stays at, or usage of, the Hotels and other hotels
operated or franchised by Manager or its Affiliates, and any similar, complementary or successor programs, as they may exist from
time to time. As of the Effective Date, the Loyalty Programs include the “Marriott Bonvoy” program, and various programs
sponsored by airlines, credit card and other companies.

 

“Management
Fees” shall mean, collectively, the Base Management Fee, the First Incentive Management Fee and the Second Incentive
Management Fee.

 

“Manager”
shall have the meaning ascribed to such term in the Preamble hereto or shall mean any successor or permitted assign, as applicable.

 

“Manager Default”
shall have the meaning ascribed to such term in Section 9.01 hereof.

 

“Manager Event
of Default” shall have the meaning ascribed to such term in Section 9.01 hereof.

 

“Manager Funding
Termination Event” shall have the meaning ascribed to such term in Section 3.02.C hereof.

 

“Marketing
Fund Activities” shall have the meaning ascribed to such term in Section 1.04.A hereof.

 

“Marketing
Fund Contribution” shall have the meaning ascribed to such term in Section 1.04.B hereof.

 

“Marriott”
shall mean Marriott International, Inc., a Delaware corporation, and its permitted successors and assigns.

 

“Marriott
Companies” shall mean Manager, Marriott, and any Affiliate of Manager or Marriott.

 

“Marriott
Guaranty Advances” shall mean advances under the Marriott Guaranty Agreement allocated to pay a portion of Tenant’s
Priority (as more particularly set forth in the Marriott Guaranty Agreement and subject to any applicable cap stated therein) with
respect to the Hotels.

 

“Marriott
Guaranty Agreement” shall mean that certain Marriott Guaranty Agreement, dated as of the Execution Date but to be effective
as of the Effective Date, by and among Marriott, Tenant and CY Tenant, as the same may be supplemented, amended or modified from
time to time, which such guaranty is personal to Tenant and to any Affiliate of SVC or Tenant that may succeed Tenant under this
Agreement.

 

“MBS Systems”
shall have the meaning ascribed to such term in Section 1.03.E hereof.

 

    74

     

    

 

“MI Trademark”
means (i) the names and marks “SpringHill Suites” and “SpringHill Suites by Marriott”; (ii) the “SpringHill
Suites” logo; (iii) any word, name, device, symbol, logo, slogan, design, brand, service mark, Trade Name, other distinctive
feature, or indicia of origin (including marks, program names, property-specific hotel name, property-specific logo, and restaurant,
spa and other outlet names), in each case, used at or in connection with any Hotel; (iv) all local language versions of the foregoing;
and (v) any combination of the foregoing; in each case, whether registered or unregistered, and whether or not such term contains
the “SpringHill Suites” or “SpringHill Suites by Marriott” mark, that is used or registered by Manager
or its Affiliates, or by reason of extent of usage is associated with hotels in the System. The MI Trademarks may be changed or
supplemented from time to time.

 

“Minimum Rent”
shall, for each Hotel, for any period, mean the amount of Minimum Rent allocable to such Hotel which accrues under the Lease for
such period.

 

“Mortgage”
shall mean any mortgage, deed of trust or security document encumbering a Hotel, the Hotel Improvements or the Site.

 

“Mortgagee”
shall mean the holder of any Mortgage.

 

“Officer’s
Certificate” shall mean a certificate executed by a vice president of Manager which certifies that with respect to the
Annual Operating Statement delivered under Section 4.01.C(2) and the annual accounting delivered under Section 4.01.D(1) hereof,
that the accompanying statement or accounting has been properly prepared in accordance with GAAP and fairly presents the financial
operations of the Hotels.

 

“Operating
Loss” shall mean, with respect to each Hotel, a negative Operating Profit for such Hotel.

 

“Operating
Profit” shall mean, with respect to each Hotel, the excess of Gross Revenues over the following deductions, but excluding
(i) payments with respect to items for which Manager has given an indemnity, to the extent of such indemnity, (ii) payments
with respect to items for which Manager has agreed to be liable at its own cost and expense herein, (iii) any item specifically
stated not to be a Deduction herein, and (iv) any item for which Manager or any Affiliate has agreed to be liable (other than
at the cost and expense of Tenant or any Affiliate) under the terms of any Incidental Document or any other agreement between Manager
or any Affiliate and Tenant or any Affiliate (“Deductions”) incurred by Manager in accordance with the terms
of this Agreement, on behalf of Tenant, in operating the Hotel:

 

1.                 
the cost of sales, including, without limitation, compensation, fringe benefits, payroll taxes and other costs related to
Hotel employees (the foregoing costs shall not include salaries and other employee costs of executive personnel of Manager who
do not work at the Hotel on a regular basis; except that the foregoing costs shall include the allocable portion of the salary
and other employee costs of any general manager or other supervisory personnel assigned to a “cluster” of hotels which
includes the Hotel);

 

2.                  departmental
expenses incurred at departments within the Hotel; administrative and general expenses; the cost of marketing incurred by the
Hotel; advertising and business promotion incurred by the Hotel; heat, light, and power; computer line charges; and routine
repairs, maintenance and minor alterations treated as Deductions under Section 5.02;

 

    75

     

    

 

3       the
cost of Inventories and Fixed Asset Supplies consumed in the operation of the Hotel;

 

4.                 
a reasonable reserve for uncollectible accounts receivable as determined by Manager;

 

5.                 
all costs and fees of independent professionals or other third parties who are retained by Manager to perform services required
or permitted hereunder;

 

6.                 
all costs and fees of technical consultants and operational experts who are retained or employed by Manager and/or Affiliates
of Manager for specialized services (including, without limitation, quality assurance inspectors) and the cost of attendance by
employees of the Hotel at training and manpower development programs sponsored by Manager;

 

7.                 
the System Fee;

 

8.                 
insurance costs and expenses as provided in Section 6.01 and Exhibit D hereof;

 

9.                 
taxes, if any, payable by or assessed against Manager related to this Agreement or to Manager’s operation of the Hotel
(exclusive of Manager’s income taxes) and all Impositions;

 

10.             
transfers to the Hotel’s Reserves required pursuant to Section 5.03.C hereof;

 

11.             
the Hotel’s share of the charges for Above-Property Programs & Services as more fully set forth in Section 1.03
hereof;

 

12.             
the costs of commercially reasonable efforts of causing the Hotel to be in compliance with each and every provision of the
Lease (regardless of whether or not such compliance is a requirement of this Agreement);

 

13.             
such other costs and expenses incurred by Manager as are specifically provided for elsewhere in this Agreement or are otherwise
reasonably necessary for the proper and efficient operation of the Hotel; and

 

14.             
such other costs and expenses paid to Landlord or Tenant pursuant to the Lease or this Agreement, if such costs and expenses
would have been a Deduction if paid directly by Manager to a third person in respect of the Hotel.

 

The term
 “Deductions” shall not include (a) debt service payments pursuant to any Mortgage, and (b) payments
pursuant to equipment leases or other forms of financing obtained by Tenant for the FF&E located in or connected with a
Hotel, both of which shall be paid or caused to be paid by Tenant from its own funds, the Reserve to the extent permitted
hereunder, or from funds provided by Landlord under the Lease.

 

    76

     

    

 

The term “Deductions”
shall not include (a) Rent payable under the Lease, (b) any reimbursement to Manager for advances Manager makes with
respect to a Hotel as permitted hereunder, and (c) the Management Fees for any Hotel.

 

“Other Environmental
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Other Management
Agreements” shall mean those certain Second Amended and Restated Management Agreements and/or Management Agreement(s)
(as applicable), dated as of the Execution Date but to be effective as of the Effective Date, by and between Manager or an Affiliate
and Tenant or an Affiliate with respect to the Portfolio Properties other than the Hotels, as the same may be supplemented, amended
or modified from time to time.

 

“Other Marriott
Products” means any lodging products, Vacation Club Products, residential products (such as single family homes or multi-unit
apartment buildings or individual units within such buildings), restaurants, and other products and business operations of any
type, using any brand name available to Manager or its Affiliates (including any brand listed in Exhibit F and any future
brands owned or developed by Manager or its Affiliates) or not using any brand name.

 

“Overdue Rate”
shall have the meaning ascribed to such term in the Lease.

 

“Owner Agreement”
shall mean that certain (i) Second Amended and Restated Owner Agreement, dated as of the Execution Date but to be effective as
of the Effective Date, by and among, inter  alia, Landlord, Tenant and Manager, (ii) Owner Agreement, dated
as of the Execution Date but to be effective as of the Effective Date, by and among SVC, HPTCY Landlord, CY Tenant and Courtyard
Management Corporation, a Delaware corporation, and/or (iii) Owner Agreement, dated as of the Execution Date but to be effective
as of the Effective Date, by and among HPTMI Hawaii, Tenant and Essex House, and as the same may be supplemented, amended or modified
from time to time.

 

“Person”
shall mean any individual or entity, and the heirs, executors, administrators, legal representatives, successors and assigns of
such individual or entity where the context so admits.

 

“Personal
Data” shall mean any information relating to an identified or identifiable natural person, and includes Guest Personal
Data and Hotel Employee Personal Data, but excludes any Personal Data that is unrelated to the Hotels, the Portfolio Agreements,
any Other Marriott Products operated or licensed by Manager or its Affiliates, or Manager or its Affiliates.

 

“PIP”
shall mean Property Improvement Plan.

 

“Pooling
Agreement” shall mean that certain Amended and Restated Pooling Agreement, dated as of the Execution Date but to
be effective as of the Effective Date, by and among, inter alia, Manager, Marriott, Tenant and CY Tenant, under which
the Gross Revenues, Working Capital, and Reserves of the Hotels are pooled with Gross Revenues, Working Capital and Reserves
of the other Portfolio Properties, as the same may be supplemented, amended, or modified from time to time.

 

    77

     

    

 

“Portfolio
Agreements” shall mean, collectively, all of the agreements effective as of the Effective Date by and among, inter alia,
Marriott, Landlord, HPTCY Landlord, SVC, Manager, Tenant and CY Tenant, as applicable, pertaining to the operation of the Portfolio
Properties, including without limitation, this Agreement, the Other Management Agreements, the Owner Agreement, the Exit Hotel
Agreement, the Pooling Agreement, the Marriott Guaranty Agreement and the Security Deposit Agreement.

 

“Portfolio
Properties” shall mean, as of any date, the Hotels subject to the Pooling Agreement together with the other properties
whose Gross Revenues, Working Capital and Reserves are as of such date pooled with the Gross Revenues, Working Capital and Reserves
of the Hotels under the Pooling Agreement.

 

“Post-Guaranty
Termination Threshold” shall mean, with respect to a Hotel and only after the occurrence of a Guaranty Termination Event,
an amount equal to eighty percent (80%) of Tenant’s Priority with respect to such Hotel for any Accounting Period.

 

“Prime Rate”
shall mean the “prime rate” of interest announced from time to time in the “Money Rates” section of the
Wall Street Journal (Eastern Edition).

 

“Prior Management
Agreement” shall have the meaning ascribed to such term in Section B of the Recitals.

 

“Privacy Shield”
shall mean the “EU U.S. and Swiss U.S. Privacy Shield Frameworks” developed by the U.S. Department of Commerce, the
European Commission and the Swiss Confederation, including the “Privacy Shield Principles and Supplemental Principles”
(the “Privacy Shield Principles”) available at https://www.privacyshield.gov/EU-US-Framework.

 

“Privacy Shield
Data” shall mean data in any form about an identified or identifiable individual received by the Marriott US Entities
in the United States of America from a Person in the European Economic Area or Switzerland pursuant to the Marriott US Entities’
Privacy Shield certification.

 

“Privacy Shield
Principles” shall have the meaning ascribed to such term in the definition of Privacy Shield.

 

“Program Services”
shall have the meaning ascribed to such term in Section 1.04.D hereof.

 

“Program Services
Contribution” shall mean the amount charged by Manager to the Hotels for Program Services.

 

“Property
Insurance Premiums” shall have the meaning ascribed to such term in Exhibit D hereof.

 

    78

     

    

 

“Proprietary
Information” shall mean (a) all computer software and accompanying documentation (including all future upgrades,
enhancements, additions, substitutions and modifications thereof), other than computer software which is commercially available,
which are used by Tenant or Manager in connection with the property management system, any Reservation System and all future electronic
systems developed by Tenant or Manager for use in any Hotel, (b) all manuals, brochures and directives used by Tenant or Manager
at any Hotel regarding the procedures and techniques to be used in operating any such Hotel, (c) customer lists, and (d) employee
records which must remain confidential either under Legal Requirements or under reasonable corporate policies of Tenant or Manager;
provided, however, that “Proprietary Information” shall not include any software, manuals, brochures
or directives issued by Marriott, as Franchisor to Tenant, as franchisee, under any Franchise Agreement.

 

“Prorated
Portions” shall have the meaning ascribed to such term in Section 4.01.A hereof.

 

“Prospectus”
shall have the meaning ascribed to such term in Section 11.09.B hereof.

 

“PSF”
shall have the meaning ascribed to such term in Section 1.04.D hereof.

 

“Qualified
Mortgage” shall have the meaning ascribed to such term in Section 8.02.A hereof.

 

“Reimburseable
Advances” shall mean the amounts paid or payable with respect to Section 3.02.B(4) hereof.

 

“Related Person”
shall have the meaning ascribed to such term in Section 11.36.D hereof.

 

“Renewal Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Renovations”
shall mean the renovation and improvement work to certain Portfolio Properties pursuant to the Renovation-Related Agreements.

 

“Renovation-Related
Agreements” shall mean that certain (i) Portfolio Renovation Agreement, dated as of the Execution Date but to be effective
as of the Effective Date, among, inter  alia, Manager, Landlord, HPTCY Landlord, SVC, Tenant and CY Tenant,
and/or (ii) Kauai Marriott Resort Hotel & Marriott’s Kauai Resort and Beach Club Renovation Agreement, dated as of the
Execution Date but to be effective as of the Effective Date, among Essex House, HPTMI Hawaii and Tenant, as the same may be supplemented,
amended or modified from time to time.

 

“Rent”
shall mean, for any period, for each Hotel, Minimum Rent and any additional rent allocated to such Hotel and accrued under the
Lease for such Hotel for such period, provided the same does not exceed, in each instance, the corresponding amount of Tenant’s
Priority with respect to each such Hotel.

 

“Reservation
System” means the worldwide central reservations for the System. As of the Effective Date, the Reservation System
includes systems and services that capture and process hotel reservations from central sources such as toll-free telephone
networks, the Marriott.com internet site, global distribution systems, and participation in international reservations
associations in which Manager or its Affiliates is a member.

 

    79

     

    

 

“Reserve”
shall have the meaning ascribed to such term in Section 5.03.B hereof.

 

“Reserve Estimate”
shall have the meaning ascribed to such term in Section 5.04 hereof.

 

“Restricted
Person” shall mean a Person identified by any government or legal authority as a Person with whom or which Manager or
its Affiliates are prohibited or restricted from transacting business, including any Person (i) on the US Treasury Department’s
Office of Foreign Assets Control List of Specially Designated Nationals and Blocked Persons, under resolutions or sanctions related
lists maintained by the United Nations Security Council, or under the EU Consolidated Financial Sanctions; (ii) directly or
indirectly 10% or more owned by any Person identified in clause (i); or (iii) ordinarily resident, incorporated, or located
in any country or territory subject to comprehensive US or EU sanctions, or owned or controlled by, or acting on behalf of, the
government of any such country or territory.

 

“Rules”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Sale of a
Hotel” shall mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary,
of Tenant’s leasehold title to a Hotel and related property. For purposes of this Agreement, a Sale of a Hotel shall also
include a lease (or sublease) of all or substantially all of Tenant’s leasehold interest in a Hotel and any sale, assignment,
transfer or other disposition, for value or otherwise, voluntary or involuntary, in a single transaction or a series of transactions,
of the Controlling Interest in Tenant, but shall not include any conveyance which results in SVC or an SVC Affiliate holding a
Controlling Interest in such Tenant, Landlord or immediate parent of such Tenant.

 

“SEC”
shall mean the United States Securities Exchange Commission.

 

“Second Incentive
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to forty percent (40%)
of Operating Profit remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (7) hereof.

 

“Section 11.08
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Security
Deposit” shall mean the security deposit in the aggregate original amount of Sixty-Four Million Seven Hundred Thousand
Dollars ($64,700,000), held by Tenant pursuant to the terms of the Security Deposit Agreement.

 

“Security
Deposit Advances” shall mean advances made pursuant to the terms of the Security Deposit Agreement.

 

“Security
Deposit Agreement” shall mean that certain Amended and Restated Security Deposit Agreement, dated as of the Execution
Date but to be effective as of the Effective Date, by and among, inter  alia, Marriott, Manager, Tenant and
CY Tenant, as the same may be supplemented, amended or modified from time to time.

 

    80

     

    

 

“Security
Deposit Replenishment” shall mean the amounts paid or payable in respect
of Section 3.02.B(7) to the replenishment of the Security Deposit to
the original amount of Sixty-Four Million Seven Hundred Thousand Dollars ($64,700,000), as such amount may be adjusted from time
to time pursuant to the Security Deposit Agreement.

 

“Security
Incident” means any incident leading to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure
of, or access to, Personal Data transmitted, stored or otherwise processed.

 

“Site”
shall have the meaning ascribed to such term in Section A of the Recitals.

 

“SNDA”
shall have the meaning ascribed to such term in Section 8.03.A hereof.

 

“Software”
means all computer software and accompanying documentation (including all future upgrades, enhancements, additions, substitutions
and modifications), other than computer software that is generally commercially available, used by Manager or its Affiliates in
connection with the services, systems and programs provided to the Hotels or the System.

 

“Specially
Designated National or Blocked Person” shall mean (a) a person designated by the U.S. Department of Treasury’s
Office of Foreign Assets Control, or other governmental entity, from time to time as a “specially designated national or
blocked person” or similar status, (b) a person described in Section 1 of U.S. Executive Order 13224 issued on
September 23, 2001, or (c) a person otherwise identified by government or legal authority as a person with whom Manager or
its Affiliates are prohibited from transacting business. Currently, a listing of such designations and the text of the Executive
Order are published under the internet website address www.ustreas.gov/offices/enforcement/ofac.

 

“State”
shall mean, with respect to each Hotel, the state in which such Hotel is located.

 

“Subsequent
Tenant” shall mean any Person that acquires title to, control of, or possession of a Hotel at or through a Foreclosure
(together with any successors or assigns), including any (i) Mortgagee; (ii) purchaser or lessee of a Hotel from Mortgagee;
or (iii) purchaser of a Hotel at Foreclosure.

 

“Sum Due Marriott”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Sum Due Tenant”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“SVC”
shall mean Service Properties Trust, a Maryland real estate investment trust, and its successors and permitted assigns.

 

“System”
shall mean all hotels located in the United States and Canada which are operated by Manager or its Affiliate(s) under the Trade
Name(s) listed on the Addenda.

 

“System Fee”
shall mean, with respect to each Hotel, during any Fiscal Year, an amount equal to five percent (5%) of Gross Room Revenues of
such Hotel.

 

    81

     

    

 

“System Standards”
shall mean one or more (as the context requires) of the following: (i) operational standards (for example, services to guests,
quality of food and beverages, cleanliness, staffing and employee compensation and benefits, compliance policies and procedures,
Chain Services, Loyalty Programs and other similar programs); (ii) physical standards (for example, quality of the Hotel Improvements,
FF&E and Fixed Asset Supplies, and frequency of FF&E replacements); and (iii) technology standards (for example, those
relating to the Hotel Systems and other information technology). These standards include (x) those generally prevailing or
in the process of being implemented at other hotels in the System on a fair and consistent basis with other hotels in the System,
including all services and facilities in connection therewith that are customary and usual at comparable hotels in the System;
provided, however, that if the market area or the physical peculiarities of the Hotels warrant(s) it, in the reasonable judgment
of Manager, then a deviation from such standards shall be permitted; and (y) those standards Manager may specify for certain
System hotel types (for example, resort, convention or casino) on a consistent basis for all System hotels of such hotel type.

 

“Tenant”
shall have the meaning ascribed to such term in the Preamble or shall mean any successor or permitted assignee, as applicable.

 

“Tenant Advances”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Tenant Default”
shall have the meaning ascribed to such term in Sections 9.06 and 9.09 hereof.

 

“Tenant Event
of Default” shall have the meaning ascribed to such term in Section 9.06 hereof.

 

“Tenant Operating
Loss Advance” shall have the meaning ascribed to such term in Section 4.01.E hereof.

 

“Tenant Working
Capital Advances” shall mean the aggregate of all funds remitted by Tenant to Manager in order to fund Additional Working
Capital under Section 4.05 hereof, or pursuant to the Pooling Agreement to the extent allocable to the Hotels.

 

“Tenant’s
Priority” shall mean, for each Hotel, for each full Fiscal Year, an amount equal to the amount set forth on the applicable
Addenda, or a pro rata portion thereof in any partial Fiscal Year; provided, however, effective on the date of (i)
each disbursement by Landlord or its Affiliate pursuant to Sections 5.1.3(b), 10.2 or 11.2 of the Lease, in each instance at the
request of or with the approval of Landlord, or (ii) Landlord’s or Tenant’s deposit into the Reserve pursuant to Section
5.07 hereof with respect to such Hotel (including, without limitation, any such deposit made in accordance with Section 2.05.B
of the applicable Renovation-Related Agreement(s)), Tenant’s Priority payable with respect to each Accounting Period for
the applicable Hotel shall be increased by an amount equal to the quotient obtained by dividing (a) eight percent (8%) times
the amounts so disbursed or deposited, by (b) twelve (12). If any disbursement or deposit is made during any Accounting Period
on a day other than the first day of an Accounting Period, the Tenant’s Priority payable for such Hotel for the immediately
following Accounting Period (after having been so increased) shall be further increased (but only for such instant Accounting
Period) by the amount by which Tenant’s Priority for the preceding Accounting Period, as adjusted for disbursement or deposit
on a per diem basis, exceeded the amount of Tenant’s Priority actually paid to Tenant for such preceding Accounting Period.
Effective on the date this Agreement is terminated with respect to a Hotel for any reason, Tenant’s Priority payable with
respect to each Accounting Period for the remaining Hotels shall be decreased by the amount of the Tenant’s Priority of
such terminated Hotel calculated as of the date such terminated Hotel is no longer subject to this Agreement. If such termination
occurs on a day other than the first day of an Accounting Period, then the Tenant’s Priority payable for the remaining Hotels
for the immediately following Accounting Period (after having been so decreased) shall be further decreased (but only for such
instant Accounting Period) by the amount by which Tenant’s Priority for the preceding Accounting Period, as adjusted for
reduction on a per diem basis, is less than the amount of Tenant’s Priority actually paid to Tenant for such preceding Accounting
Period.

 

    82

     

    

 

“Tenant’s
Priority Shortfall” shall have the meaning ascribed to such term in Section 3.02.C hereof.

 

“Tenant’s
Personal Property” shall mean all motor vehicles, consumable inventories and supplies, furniture, furnishings, movable
walls and partitions, equipment and machinery and all other tangible personal property of Tenant, if any, acquired by Tenant on
and after the Effective Date and located at a Hotel or used in Tenant’s business at a Hotel, and all modifications, replacements,
alterations and additions to such personal property.

 

“Tenant’s
Termination Threshold” shall mean, with respect to a Hotel, an amount equal to eighty-five percent (85%) of Tenant’s
Priority with respect to such Hotel for any Accounting Period.

 

“Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Termination”
shall mean, with respect to each Hotel, the expiration or sooner cessation of the Term with respect to such Hotel.

 

“Trade Names”
shall mean any name, whether informal (such as a fictitious or “doing business as” name) or formal (such as the full
legal name of a corporation or partnership), used to identify an entity or business.

 

“Transfer”
shall mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary, of (i) Tenant’s
interest in the Site, Hotel Improvements or a Hotel; (ii) a lease or sublease of all or substantially all of the Site, Hotel Improvements
or a Hotel; or (iii) in a single transaction or a series of transactions, (x) the right to exercise, directly or indirectly, more
than 50% of the voting rights attributable to the ownership interests of Tenant (through ownership of such interests or by contract);
or (y) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of Tenant.

 

“Uniform System
of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition, 2006, as published
by the American Hotel & Lodging Educational Institute, as revised from time to time to the extent such revision has been or
is in the process of being generally implemented within the System.

 

    83

     

    

 

“Uninsured
Costs” shall have the meaning ascribed to such term in Section 6.02.E hereof.

 

“Unrelated
Persons” shall have the meaning ascribed to such term in Section 11.36.D hereof.

 

“Unsuitable
for Its Permitted Use” shall mean, with respect to a Hotel, a state or condition of such Hotel such that (a) following
any damage or destruction involving such Hotel, such Hotel cannot be operated in the good faith judgment of Manager on a commercially
practicable basis and it cannot reasonably be expected to be restored to substantially the same condition as existed immediately
before such damage or destruction and otherwise as required under Section 6.02.D hereof, within nine (9) months following such
damage or destruction or such shorter period of time as to which business interruption insurance is available to cover Rent and
other costs related to the Hotel following such damage or destruction, or (b) as the result of a partial taking by Condemnation,
such Hotel cannot be operated, in the good faith judgment of Manager on a commercially practicable basis in light of then existing
circumstances.

 

“Vacation
Club Products” shall mean timeshare, fractional, interval, vacation club, destination club, vacation membership, private
membership club, private residence club, and points club products, programs and services and shall be broadly construed to include
other forms of products, programs and services wherein purchasers acquire an ownership interest, use right or other entitlement
to use certain determinable holiday villa or apartment units and associated facilities on a periodic basis and pay for such ownership
interest, use right or other entitlement in advance.

 

“Working Capital”
shall mean, with respect to each Hotel, funds that are used in the day-to-day operation of the business of such Hotel, including,
without limitation, amounts sufficient for the maintenance of change and petty cash funds, amounts deposited, in operating bank
accounts, receivables, amounts deposited in payroll accounts, prepaid expenses and funds required to maintain Inventories, less
accounts payable and accrued current liabilities.

 

[SIGNATURES BEGIN
ON THE FOLLOWING PAGE]

 

    84

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed under seal as of the Execution Date.

 

		TENANT:
	 	 
	 WITNESS:	HPT TRS MRP, Inc., a Maryland corporation
		 
	/s/ John M. Steiner	By:	/s/ John G. Murray
	Print Name: John M. Steiner	Name:    	John G. Murray
	 	Title:	President

 

 

     

     

    

 

	 	MANAGER:
		 
	 WITNESS:	SPRINGHILL SMC, LLC, a Delaware limited liability company
	 	 
	/s/ Tara Jackson	By:  	/s/ Julie Bowen
	Print Name: Tara Jackson	Name:    	Julie Bowen
	 	Title:	Authorized Signatory

 

     

     

    

 

EXHIBIT A

 

THE SITES

 

 

	Unit Number	Brand	Hotel	State
	19-2KC	SHS	SpringHill Suites Seattle Renton	WA
	19-2KD	SHS	SpringHill Suites Nashville Airport	TN

 

     

     

    

 

EXHIBIT B

 

Central
Office Services

 

“Central Office
Services” means the following activities (other than Chain Services) that are provided on a central or regional basis
to hotels in the System:

 

1.       Executive
Supervision. Executive supervision is currently done by individuals holding the title of “Executive Vice President”
or above, and at the continental division level by individuals holding a title of “Chief Operating Officer” or above.
In the future executive supervision may be done by individuals holding comparable positions of authority but with different titles.

 

2.       Corporate
Planning & Policy. Policy making and planning for Marriott International, Inc. and its Affiliates as a whole or at the
continental division level, including development of operating procedures, but excluding any policy making or planning function
related to an area that is a Chain Service or direct Deduction.

 

3.       Corporate
Finance. Corporate finance, including corporate treasury, financial planning and analysis and corporate accounting, excluding
accounting services provided to the hotels as part of Chain Services or the MBS Systems.

 

4.       Corporate
Human Resources. Corporate personnel providing strategic and executive supervision for human resources activities applicable
to Marriott International, Inc. and its Affiliates as a whole.

 

5.       Certain
Legal Services. Legal services performed either in-house or by outside counsel to (i) draft manuals, policies or guidelines
to be used for the System; and (ii) represent Manager and its Affiliates on issues relating to the relationship between Tenant
and Manager and its Affiliates, unless the Expert directs Tenant to pay the costs of any legal services.

 

6.       Trademarks.
Trademark protection relating to the MI Trademarks, which are used generally by the System.

 

7.       Product
Research & Development. Product research and development and the development of brand standards, excluding product research
and development related to an area that is reimbursable as a Chain Service or a direct Deduction such as product research and development
for sales and marketing.

 

 

     

     

    

 

EXHIBIT C

 

FRANCHISE REQUIREMENTS

 

To obtain a franchise for the applicable
Hotel, Tenant must:

 

		1.	deliver to the applicable Franchisor a franchise application, together with the then-current application
fee being charged to System franchisees at least ninety (90) days prior to the proposed date of the Franchise Conversion (if such
Franchisor does not agree to grant the franchise to Tenant, then Franchisor will refund the application fee, less $10,000);

 

		2.	execute the then-current form of franchise and related agreements, which franchise agreement will
(a) contain the standard forms for new franchised System hotels as of the date of the Franchise Conversion, including the then-current
fees and charges, except that the term of such franchise agreement may be adjusted in Franchisor’s sole discretion to the
remaining Initial Term or remaining Renewal Term (as the case may be), and (b) include a PIP to address any renovation necessary
to comply with Franchisor’s then-current Standards;

 

		3.	meet the then-current criteria for a franchisee of the hotel brand to which the Franchise Conversion
pertains, as determined by Franchisor in its sole discretion;

 

		4.	deliver to Franchisor all requested information and representations regarding Tenant’s corporate
organization, authority, and ownership as well as the financial information of the proposed guarantor of the franchise agreement
obligations;

 

		5.	retain a management company consented to by Franchisor if Franchisor determines that Tenant is
not qualified to operate the Hotel;

 

		6.	pay Franchisor’s reasonable outside counsel costs related to the Franchise Conversion and
the franchise agreement;

 

		7.	make, or cause the applicable management company to make, offers of employment to sufficient numbers
of employees at the Hotel to avoid the occurrence of a “closing” under the WARN Act or similar state law and provide
Manager with all other information requested by Manager regarding offers and conditions of employment to such employees; and

 

		8.	agree to be bound by, or pay any breakage fees for, all ancillary agreements between Manager and
any other parties with respect to the Hotel or executed in connection with this Agreement, including any licensing agreements,
cost sharing agreements, and cluster revenue agreements.

 

     

     

    

 

EXHIBIT D

 

INSURANCE

 

6.01       Insurance.

 

A.           
Property Insurance.

 

1.            
Required Coverages. Tenant will procure and maintain the following insurance from the Effective Date:

 

(a)              
Property insurance (and, if applicable, builders risk insurance), including boiler and machinery coverage, on the Hotel
buildings and contents against loss or damage by risks covered by an “all risk of physical loss” form. This coverage,
to the extent available at commercially reasonable rates and terms, will be for not less than 100% of the replacement cost of the
Hotel, less a reasonable deductible and subject to commercially reasonable sub-limits, including a waiver of coinsurance provision,
and landscape improvements coverage for not less than 100% of the replacement cost or $5,000,000, whichever is greater;

 

(b)               Earthquake
insurance and windstorm insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a)
and if the Hotel is located in whole or in part in an earthquake or windstorm prone zone, as applicable, as determined by the
appropriate government authority or insurer. Coverage for these hazards, to the extent available at commercially reasonable rates
and terms, will be for not less than the probable maximum loss of the Hotel (or the aggregate probable maximum loss if insured
under a blanket program) less a reasonable deductible;

 

(c)              
Flood insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a) and if the
Hotel is located in whole or in part within an area identified by the insurer as having a special flood hazard. Coverage for this
hazard, to the extent available at commercially reasonable rates and terms, will be for not less than twenty-five percent (25%)
of the replacement cost of the Hotel, less a reasonable deductible. In no event will flood insurance coverage be less than the
maximum amount available under the National Flood Insurance Program (or successor program) for this coverage;

 

(d)               Terrorism insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a). Coverage
for this hazard, to the extent available at commercially reasonable rates and terms, will be for not less than one hundred percent
(100%) of the replacement cost of the Hotel, less a reasonable deductible;

 

(e)               Business
interruption insurance caused by any occurrence covered by the insurance described in Sections 6.01.A(1)(a) through (d). This
coverage will include, to the extent available at commercially reasonable rates and terms:

 

(i)              at
least two years’ loss of profits, rental income, necessary continuing expenses and any amounts that would be payable to
Manager as the Management Fee or any other amounts payable to Manager under this Agreement if the loss had not occurred;

 

(ii)             at
least ninety (90) days ordinary payroll expenses;

 

(iii)           
at least three hundred sixty-five (365) days of an extended period of indemnity; and

 

(iv)            at
least one hundred eighty (180) days contingent business interruption.

 

Manager may make claims directly to the
insurer for any management fees or other amounts payable to Manager under this Agreement. Tenant and Manager agree that the amount
to be paid to Manager for any claim covered by the insurance described in this Section 6.01.A(1)(e) with respect to this Agreement
will be calculated using the figures for Gross Revenues, and Operating Profit accepted by the insurance company or an independent
third-party business interruption accounting expert selected by Tenant and Manager. If Tenant procures the business interruption
insurance, Tenant will consult with Manager regarding the submission of this claim and Tenant will not settle this claim without
Manager’s approval; and

 

(f)                Such
other property insurance as is customarily required by Manager at similar hotels.

 

Manager will
procure and maintain the insurance in Sections 6.01.A(1)(a) through (f) only if (i) Tenant makes
a written request to Manager at least 60 days before either the Effective Date or the next renewal date of Manager’s property
insurance program; (ii) the Hotel meets the then-current insurability criteria under Manager’s insurance program;
and (iii) Manager approves the request in its sole discretion.

 

     

     

    

 

2.             Insurer
 & Other Requirements; Waiver; & Participation in Manager’s Program.

 

(a)             All insurance procured under Section 6.01.A(1) will be obtained from insurance companies of recognized financial standing
reasonably acceptable to Manager. All premiums and deductibles under these policies are subject to Manager’s approval. All
premiums (net of any credits, rebates and discounts) and deductibles for insurance under these policies will be Deductions.

 

(b)           
If Tenant procures the insurance described in Section 6.01.A(1), all policies will be in the name of Tenant, with Manager
and its Affiliates named as additional insureds. If Manager procures this insurance, all policies of such insurance will be in
the name of Manager, with Tenant named as an additional insured. Any property losses will be payable to the respective parties
as their interests may appear. The documentation for each Mortgage will include a provision that proceeds of the insurance described
in Section 6.01.A(1) will be available for repair and restoration of the Hotel.

 

(c)            
If Tenant procures the insurance described in Section 6.01.A(1), Tenant will deliver to Manager certificates of insurance,
or at Manager’s request a copy of the policies, and certificates of renewal for insurance policies about to expire. All certificates
will state that the insurance will not be canceled, non-renewed or reduced without at least 30 days’ prior written notice
to the certificate holder.

 

(d)           
Tenant and Manager each waives their rights of recovery, and will cause their insurer to waive its rights of subrogation
from the other party or any of such party’s Affiliates, directors, officers, shareholders, agents and employees for loss
or damage to the Hotel, and any related interruption of business, regardless of the cause of the property or business interruption
loss. If any policy of insurance requires an endorsement to effect a waiver of subrogation, Tenant or Manager, as applicable, will
cause them to be endorsed.

 

(e)            
If Tenant is eligible to participate in Manager’s property insurance program but Tenant elects to procure the insurance
under Section 6.01.A(1), and the costs of the premiums and deductibles for coverage under Tenant’s property insurance
program are more than 10% higher than the costs of the premiums and deductibles that would have been payable under Manager’s
property insurance program, then Tenant will pay from its own funds and not as Deductions the entire amount by which such costs
under Tenant’s program exceed such costs under Manager’s program.

 

(f)            
If Manager approves Tenant’s request to have the Hotel participate in Manager’s property insurance program,
the Hotel will do so until Tenant or Manager notifies the other party of its intent to discontinue this participation in accordance
with the following:

 

(i)            If Tenant chooses to exit Manager’s property insurance program and procure its own property insurance, Tenant will
notify Manager at least 90 days before the next renewal date under Manager’s property insurance program (which is currently
April 1st of each year). If Tenant does not notify Manager in time and subsequently procures its own property insurance,
Tenant will pay Manager 10% of the annual premium under Manager’s property insurance program to cover the fixed costs incurred
by Manager for the placement of these coverages. If Tenant chooses to exit Manager’s property insurance program before the
end of a coverage year Tenant will pay Manager (i) the 10% charge; and (ii) the prorated portion of the premiums of Manager’s
property insurance program relating to the period before the date on which Manager approves Tenant’s replacement property
insurance coverage. For the policies under Sections 6.01.A(1)(b) through (f), if the premium is fully earned then no portion of
the premium will be refunded to Tenant. If the premium is not fully earned, any paid but unearned portion of the premium will be
prorated as of the date on which Manager receives from Tenant certificates of insurance evidencing insurance coverage that complies
with this Section 6.01. Tenant will pay all amounts under this Section 6.01.A(2)(f)(i) from its own funds and not as
Deductions within 10 days after Manager’s request. If Tenant fails to do so, Manager may deduct such amounts from amounts
otherwise to be distributed to Tenant without affecting Manager’s other rights and remedies under this Agreement. If Tenant
exits Manager’s property insurance program and later wishes to participate again, the Hotel will again be included if Tenant
makes a written request at least 60 days before the next renewal date of Manager’s property insurance program and Manager
approves the request in its sole discretion.

 

     

     

    

 

(ii)          
If Tenant procures the property insurance for the Hotel, Manager will pay Tenant the amount of all reasonable insurance
premiums as Deductions at the same time that Manager makes interim payments to Tenant under Section 4.01 (collectively, the
 “Property Insurance Premiums”). These payments will be calculated by prorating the full Fiscal Year budgeted
amount (or the actual amount, if available) of Property Insurance Premiums equally over twelve (12) Accounting Periods. Tenant
will provide Manager with evidence of Tenant’s payment of the Property Insurance Premiums, and the receipt of any credits,
rebates and discounts, within five days after Manager’s request. For each Fiscal Year, Manager will reconcile interim Property
Insurance Premium payments with the actual amount for the entire Fiscal Year, and Tenant and Manager will make any necessary adjustments
following Tenant’s receipt of each Accounting Period Statement or Annual Operating Statement, as applicable. Manager will
only be required to pay Property Insurance Premiums to the extent of available Gross Revenues. Tenant will pay all premiums under
insurance policies that it procures before any fine, penalty or interest is incurred.

 

(iii)           If
Manager chooses to remove the Hotel from Manager’s property insurance program, Manager will notify Tenant at least 90 days
before the next renewal date and Tenant will procure insurance for the Hotel as required under Section 6.01 effective as
of the expiration date of the then-current coverage. Tenant may later participate in Manager’s property insurance program
again if Tenant makes a request at least 60 days before Tenant desires the new policy to become effective and Manager approves
the request in its sole discretion.

 

3.            
Claims. If the Hotel is damaged by any casualty and the Hotel participates in Manager’s property insurance
program under this Section 6.01, Manager will process, adjust and settle the property damage claim with the insurance carriers.
Tenant will sign, promptly and without condition, all documents necessary for Manager to process, adjust and settle the claim.
If the Hotel does not participate in Manager’s property insurance program, Tenant will process, adjust and settle the property
damage claim with the insurance carriers, subject to Section 6.01.A(1)(e), and Tenant will sign promptly and without condition
all documents necessary for Manager to process, adjust and settle Manager’s and its Affiliates’ portion of the claim
attributable to their business interruption interests.

 

B.           
Operational Insurance.

 

1.            
Coverages. Manager will procure and maintain the following insurance from the Effective Date:

 

 

(a)              
Commercial general liability insurance against claims for bodily injury, death and property damage occurring in conjunction
with Hotel operations, and automobile liability insurance on vehicles operated in conjunction with the Hotel, with a combined single
limit for each occurrence of at least $50,000,000;

 

(b)              
Workers’ compensation coverage at least as may be required under Legal Requirements and employer’s liability
insurance of at least $1,000,000 per accident/disease, in each case covering Manager’s employees at the Hotel;

 

(c)              
Fidelity coverage of at least $2,000,000 covering Manager’s employees at the Hotel;

 

(d)             
Employment practices liability insurance for claims against Manager and, if Tenant is named as a co-defendant with Manager,
for claims against Tenant, in each case arising out of Manager’s employment practices, to the extent available at commercially
reasonable rates and terms, of at least $1,000,000; and

 

(e)              
Such other insurance as, and in amounts that, Manager reasonably determines for protection against claims, liabilities and
losses relating to the operation of the Hotel.

 

     

     

    

 

2.            
Insurance Retentions, Requirements, Costs & Reserve.

 

(a)              
Insurance procured under Section 6.01.B(1) may include Insurance Retentions. “Insurance Retentions”
means deductibles or risk retention levels that are not in excess of the per occurrence limit for any loss or reserve established
by Manager for the Hotel. This limit will be substantially similar to the limits for similar hotels participating in the blanket
insurance programs.

 

(b)               All
insurance procured under Section 6.01.B(1) will be in the name of Manager. The insurance procured in accordance with Section 6.01.B(1)
will name Tenant, and any Mortgagees specified by Tenant in writing, as additional insureds.

 

(c)               At
Tenant’s request, Manager will deliver to Tenant certificates of insurance evidencing the insurance coverages under Section 6.01.B(1)(a)
and any renewals. All certificates will, to the extent obtainable, state that the insurance will not be canceled or reduced without
at least 30 days’ prior written notice to the certificate holder.

 

(d)              
All premiums and costs for insurance procured and administered by Manager or its Affiliates under this Section 6.01.B
will be Deductions, including any Insurance Retentions. All charges under the blanket programs will be allocated to the Hotel and
other similar participating hotels on a reasonable basis. Any losses and associated costs that are uninsured will be Deductions.

 

(e)              
Upon Termination or a Transfer, Manager will set up a reserve from Gross Revenues, in an amount determined by Manager based
on loss projections, to cover the amount of any Insurance Retentions and all other costs that may eventually have to be paid by
Tenant or Manager for pending or contingent claims, including those that arise after Termination for causes arising during the
Term. If Gross Revenues are insufficient to fund the reserve, Tenant will pay the shortfall to Manager within 10 days after receipt
of Manager’s notice. If Tenant fails to do so, Manager may withdraw the amounts from the applicable Hotel’s operating
account(s), the Reserve, Working Capital funds or any other Tenant funds under Manager’s control without affecting Manager’s
other rights and remedies under this Agreement.

 

C.            General
Conditions of Manager’s Insurance Program. Manager may obtain all insurance procured under Section 6.01.A (if
Manager procures such insurance) and Section 6.01.B through blanket insurance programs, with shared aggregate
coverage levels, sub-limits, deductibles, conditions and exclusions based on industry conditions and availability at
commercially reasonable rates and terms. The blanket program may apply to multiple insured locations, these locations may
incur losses for the same insured event and these losses may exhaust the coverage before all claims are resolved. Industry
conditions may also lead to policy terms, conditions, sub-limits or exclusions resulting in coverage levels below the
amounts required in Section 6.01.A and Section 6.01.B. These conditions and limitations are not a breach of
Manager’s obligations.

 

     

     

    

 

EXHIBIT E

 

Equity
INterests in Tenant

 

 

As of the Effective Date and the Execution
Date, (a) the equity interests in Tenant are and will be owned 100% by HPT TRS Inc., a Maryland corporation; (b) the equity interests
in HPT TRS Inc. are and will be owned 100% by Service Properties Trust, a Maryland real estate investment trust; and (c) the equity
interests in Service Properties Trust are and will be publicly traded.

 

     

     

    

 

EXHIBIT F

 

Brands

 

AC Hotels by Marriott

African Pride Hotels

Aloft Hotels

Autograph Collection Hotels

Autograph Collection Residences

Bulgari Hotels & Resorts

Conference Center by Marriott

Courtyard by Marriott Hotels

Delta Hotels & Resorts

EDITION Hotels

EDITION Residences

Element Hotels

Fairfield by Marriott

Fairfield Inn by Marriott

Fairfield Inn & Suites by Marriott

Four Points by Sheraton Hotels

Gaylord Hotels

Grand Residences by Marriott

Horizons by Marriott Club

JW Marriott Hotels

JW Marriott Hotels & Resorts

JW Marriott Marquis Hotels

JW Marriott Residences

Le Méridien Hotels & Resorts

Le Méridien Residences

The Luxury Collection Hotels, Resorts & Suites

The Luxury Collection Residence Club

The Luxury Collection Residences

Marriott Executive Apartments

Marriott Hotels

Marriott Hotels & Conference Centers

Marriott Hotels & Resorts

Marriott Marquis Hotels

Marriott Residences

Marriott Resorts

Marriott Suites Hotels

Marriott Vacation Club

Moxy Hotels

Protea Hotel Fire & Ice!

Protea Hotels

Renaissance ClubSport Hotels

Renaissance Hotels

Renaissance Residences

Residence Inn by Marriott Hotels

The Residences at The Ritz-Carlton

The Ritz-Carlton Destination Club

The Ritz-Carlton Hotels & Resorts

The Ritz-Carlton Reserve

The Ritz-Carlton Residences

Sheraton Grand Hotels & Resorts

Sheraton Hotels & Resorts

Sheraton Residences

SpringHill Suites by Marriott Hotels

St. Regis Hotels, Resorts & Suites

St. Regis Residence Club

St. Regis Residences

TownePlace Suites by Marriott Hotels

Tribute Portfolio Hotels & Resorts

W Escape

W Hotels

W Residences

Westin Hotels

Westin Hotels & Resorts

Westin Residences

 

 

     

     

    

 

ADDENDA

 

	Hotel/Location
	
        200 SW 19th Street (Unit 19-2KC)

        Renton, WA 98057

	
        1100 Airport Center Drive (Unit 19-2KD)

        Nashville, TN 37214Exhibit
10.5

 

TOWNEPLACE SUITES

SVC89 COMBINED PORTFOLIO

SECOND
AMENDED AND RESTATED

MANAGEMENT AGREEMENT

 

by and
between

 

TOWNEPLACE
MANAGEMENT, LLC

as “MANAGER”

 

and

 

HPT TRS
MRP, INC.

as “TENANT”

 

Dated
as of December 31, 2019

 

     

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE
    I APPOINTMENT OF MANAGER	1
	 	 
	1.01   Appointment	1
	1.02   Management
    of the Hotels	2
	1.03   Services
    Provided by Manager	5
	1.04   Marketing
    Fund; Program Services	7
	1.05   Employees	8
	1.06   Right
    to Inspect	10
	1.07   Right
    of Offset	10
	 	 
	ARTICLE II TERM	10
	 	 
	2.01   Term	10
	 	 
	ARTICLE III COMPENSATION OF MANAGER	11
	 	 
	3.01   Management
    Fees	11
	3.02   Operating
    Profit	12
	 	 
	ARTICLE IV ACCOUNTING, BOOKKEEPING AND BANK ACCOUNTS	14
	 	 
	4.01   Accounting,
    Interim Payment and Annual Reconciliation	14
	4.02   Books
    and Records	18
	4.03   Accounts,
    Expenditures	19
	4.04   Annual
    Operating Projection	20
	4.05   Working
    Capital	20
	4.06   Fixed
    Asset Supplies	21
	 	 
	ARTICLE V REPAIRS, MAINTENANCE AND REPLACEMENTS	21
	 	 
	5.01   Manager’s
    Maintenance Obligation	21
	5.02   Repairs
    and Maintenance to be Paid from Gross Revenues	22
	5.03   Items
    to be Paid from Reserves	22
	5.04   Reserve
    Estimates	23
	5.05   Additional
    Requirements for Reserves	23
	5.06   Ownership
    of Replacements	24
	5.07   Obligation
    to Provide Additional Reserve Funds	24
	5.08   Additional
    Requirements Relating to Certain Capital Improvements	25
	 	 
	ARTICLE VI INSURANCE, DAMAGE AND CONDEMNATION	26
	 	 
	6.01   Insurance	26
	6.02   Damage
    and Repair	26
	6.03   Damage
    Near End of Term	28
	6.04   Condemnation	29
	6.05   Partial
    Condemnation	29
	6.06   Disbursement
    of Award	29
	6.07   Temporary
    Condemnation	30
	6.08   Allocation
    of Award	30
	6.09   Effect
    of Condemnation	30

 

	

    i

     

    

 

 

	ARTICLE VII TAXES; OTHER CHARGES	30
	 	 
	7.01   Real
    Estate and Personal Property Taxes	30
	 	 
	ARTICLE VIII OWNERSHIP OF THE HOTELS	32
	 	 
	8.01   Ownership
    of the Hotels	32
	8.02   Requirements
    for Mortgages	33
	8.03   Subordination
    and Non-Disturbance Agreement	33
	8.04   No
    Covenants, Conditions or Restrictions	34
	8.05   Liens;
    Credit	35
	 	 
	ARTICLE IX DEFAULTS	35
	 	 
	9.01   Manager
    Events of Default	35
	9.02   Remedies
    for Manager Defaults	37
	9.03   Additional
    Remedies for Manager Defaults	37
	9.04   Non-Recourse
    Provision	38
	9.05   Good
    Faith Dispute by Manager	39
	9.06   Tenant
    Events of Default	39
	9.07   Remedies
    for Tenant Defaults	40
	9.08   Good
    Faith Dispute by Tenant	42
	9.09   Landlord
    Defaults	42
	9.10   Extraordinary
    Events	42
	 	 
	ARTICLE X ASSIGNMENT AND SALE	42
	 	 
	10.01   Assignment	42
	10.02   Sale
    of the Hotel	44
	 	 
	ARTICLE XI MISCELLANEOUS	45
	 	 
	11.01   Right
    to Make Agreement	45
	11.02   Actions
    by Manager	46
	11.03   Relationship	46
	11.04   Applicable
    Law	46
	11.05   Recordation	46
	11.06   Headings;
    Section References	46
	11.07   Notices	46
	11.08   Environmental
    Matters	47
	11.09   Confidentiality	49
	11.10   Projections	49
	11.11   Actions
    to be Taken Upon Termination	49
	11.12   Trademarks,
    Trade Names and Service Marks	53
	11.13   Data
    Protection	53
	11.14   Waiver	54
	11.15   Partial
    Invalidity	54
	11.16   Survival	54
	11.17   Negotiation
    of Agreement	54
	11.18   Intentionally
    Deleted	54
	11.19   Entire
    Agreement; Recitals	54
	11.20   Affiliates	54
	11.21   Competing
    Facilities	55

 

    ii

     

    

	 	 
	11.22   Intentionally
    Deleted	55
	11.23   Dispute
    Resolution; Arbitration and Expert Resolution	55
	11.24   Permitted
    Contests	58
	11.25   Indemnification	58
	11.26   Estoppel
    Certificates	59
	11.27   Intentionally
    Deleted	59
	11.28   Intentionally
    Deleted	59
	11.29   Remedies
    Cumulative	59
	11.30   Amendments
    and Modifications	59
	11.31   Construction;
    Nonrecourse	60
	11.32   Counterparts;
    Headings	60
	11.33   No
    Political Contributions	60
	11.34   Single
    Agreement	60
	11.35   REIT
    Qualification	60
	11.36   Further
    Compliance With Section 856(d) of the Code	60
	11.37   Adverse
    Regulatory Event	61
	11.38   Commercial
    Leases	62
	11.39   Waiver
    of Jury Trial	62
	11.40   Waiver
    of Consequential, Incidental, Special & Punitive Damages	62
	11.41   Equity
    Interests in Tenant	62
	11.42   No
    Rights of Third Parties	62
	11.43   Intentionally
    Deleted	63
	11.44   Non-Hotel
    Marketing Activities by Tenant	63
	11.45   Single
    Agreement; Integration	63
	11.46   Prior
    Management Agreement	63
	 	 
	ARTICLE XII DEFINITION OF TERMS	63
	 	 
	12.01   Definition
    of Terms	63

 

	Exhibit A	The Sites
	Exhibit B	Central Office Services
	Exhibit C	Franchise Requirements
	Exhibit D	Insurance
	Exhibit E	Equity Interests in Tenant
	Exhibit F	Brands
	Addenda	Property Information

 

    iii

     

    

  

THIS
SECOND AMENDED AND RESTATED MANAGEMENT AGREEMENT (this “Agreement”) is executed as of the 31st day of December,
2019 (the “Execution Date”), but is to become effective as of January 1, 2020 (the “Effective Date”),
by and between HPT TRS MRP, INC., a Maryland corporation (“Tenant”); and TOWNEPLACE MANAGEMENT, LLC,
a Delaware limited liability company (“Manager”).

 

RECITALS:

 

A.             
Landlord (as defined herein) is the owner of fee title to the parcels of real property described on Exhibit A
attached to this Agreement and incorporated herein (the “Sites”) on which certain improvements have been constructed
consisting of a building or buildings containing in each instance the number of Guest Rooms as specified on the Addenda hereto
(as the same shall be amended and revised from time to time), and certain other amenities and related facilities (the “Buildings”).
Each Site and the Buildings on each such Site, in addition to certain other rights, improvements, and personal property, are individually
referred to as a “Hotel” and are collectively referred to as the “Hotels” and more particularly
described in the definition in Section 12.01. Pursuant to the Lease, Landlord has leased the Hotels (except for certain assets
of Tenant or Manager included within the definition of Hotels) which are subject to this Agreement, to Tenant.

 

B.              With
respect to each Hotel, Tenant (either directly or by an assignment and assumption agreement between Tenant and Tenant’s
predecessor-in-interest) and Manager have heretofore entered into a Management Agreement specified on the Addenda hereto (collectively,
and as amended and restated, the “Prior Management Agreement”), pursuant to which Tenant has engaged Manager
to manage and operate the Hotels for the account of Tenant, and Manager has accepted such engagement. Effective as of the Effective
Date, Tenant and Manager desire to amend and restate the terms and conditions of the Prior Management Agreement in their entirety
and replace them with the terms and conditions set forth in this Agreement.

 

C.              
Pursuant to the Lease and certain other leases, Tenant or an Affiliate of Tenant has leased other hotels from Landlord
or an Affiliate of Landlord managed by Affiliates of Manager (all properties subject to the Lease and/or such other leases at
any given time, and as further described in the definition of “Portfolio Properties” set forth in Article XII, are
collectively, the “Portfolio Properties”). Manager, Tenant and their applicable Affiliates have agreed that
revenues, working capital, reserves and other items from the Portfolio Properties will be pooled, disbursed and distributed in
accordance with the terms and conditions of the Pooling Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the
receipt of which is hereby acknowledged, Tenant and Manager agree as follows:

 

ARTICLE
I

 

APPOINTMENT
OF MANAGER

 

1.01         
Appointment. Subject to the provisions of this Agreement, Tenant hereby engages Manager to supervise, direct and
control the management, promotion and operation of the Hotels throughout the Term. Manager accepts said engagement and agrees
to manage the Hotels during the Term in accordance with the terms and conditions of this Agreement. The Hotels shall each be known
as a TownePlace Suites by Marriott, or Marriott TownePlace Suites with such additional identification as may be necessary to provide
local identification. If the name of the TownePlace Suites by Marriott System is changed, Manager will change the name of the
Hotels to conform thereto. All capitalized terms shall have the meaning ascribed to them in Article XII hereof.

 

     

     

    

 

1.02         
Management of the Hotels.

 

A.               
Manager shall manage and operate the Hotels in an efficient and economical manner consistent with the prevailing standards
in other hotels in the System, including all activities in connection therewith which are customary and usual to such an operation.
Manager shall, in connection with the Hotels and in accordance with the System Standards and the terms of this Agreement, perform
each of the following functions (provided that in all cases, except as otherwise set forth in this Agreement, the costs and expenses
of performing such functions shall be Deductions):

 

1.                 
Recruit, employ, supervise, direct and (when appropriate) discharge all of the employees at the Hotels.

 

2.                 
Establish prices, rates and charges for services provided in the Hotels, including rates for Guest Rooms.

 

3.                 
Establish and revise, as necessary, administrative policies and procedures, including policies and procedures for the control
of revenue and expenditures, for the purchasing of supplies and services, for the control of credit, and for the scheduling of
maintenance, and verify that the foregoing procedures are operating in a sound manner.

 

4.                 
Manage expenditures to replenish Inventories and Fixed Asset Supplies, make payments on accounts payable and collect accounts
receivable.

 

5.                 
Arrange for and supervise public relations and advertising and prepare marketing plans.

 

6.                 
Procure all Inventories and replacement Fixed Asset Supplies.

 

7.                 
Prepare and deliver interim accountings, annual accountings, Annual Operating Projections, Reserve Estimates and such other
information as is required by this Agreement.

 

8.                 
Plan, execute and supervise repairs, maintenance alterations and improvements at the Hotels.

 

9.                 
Provide, or cause to be provided, risk management services relating to the types of insurance required to be obtained or
provided by Manager under this Agreement and provide such information related to risk management to Tenant as Tenant may from
time to time reasonably request.

 

    2

     

    

 

10.               
Obtain and keep in full force and effect, either in its own name or in Tenant’s name, as may be required by applicable
law, any and all licenses and permits to the extent same is within the control of Manager (or, if same is not within the control
of Manager, Manager shall use all due diligence and reasonable efforts to obtain and keep same in full force and effect).

 

11.               
Reasonably cooperate (provided that Manager shall not be obligated to enter into any amendments of this Agreement) in any
attempt(s):

 

(a)               
to effectuate a Sale of a Hotel under the terms of this Agreement (provided that nothing herein shall affect the provisions
of Section 10.02); or

 

(b)               
to effectuate a direct or indirect sale or other disposition of the Landlord’s interest in a Hotel as permitted under
the Owner Agreement; or

 

(c)               
to obtain any Qualified Mortgage.

 

12.               
Subject to the requirements of Section 10.01 hereof, negotiate and administer, on behalf of Tenant, leases, subleases,
licenses and concession agreements for all public space at the Hotels, including all stores, office space and lobby space.

 

13.               
On behalf of Tenant, negotiate, enter into and administer service contracts and licenses for the operation of the Hotels,
including contracts and licenses for health and safety systems maintenance, electricity, gas, telephone, cleaning, elevator and
boiler maintenance, air conditioning maintenance, laundry and dry cleaning, master television service, use of copyrighted materials
(such as music and videos), entertainment and other services as Manager deems advisable.

 

14.               
Negotiate, enter into and administer contracts for the use of banquet and meeting facilities and Guest Rooms by groups
and individuals.

 

15.               
Take reasonable action to collect and institute in its own name or in the name of Tenant or a Hotel, in each instance as
Manager in its reasonable discretion deems appropriate, legal actions or proceedings to collect charges, rent or other income
derived from the operation of the Hotels or to oust or dispossess guests, tenants, members or other persons in possession therefrom,
or to cancel or terminate any lease, license or concession agreement for the breach thereof or default thereunder by the tenant,
licensee or concessionaire.

 

16.               
Make representatives available to consult with and advise Tenant or Tenant’s designee at Tenant’s reasonable
request concerning policies and procedures affecting the conduct of the business of the Hotels.

 

17.               
Collect on behalf of Tenant and account for and remit to governmental authorities all applicable excise, sales, occupancy
and use taxes or similar governmental charges collected by or at the Hotels directly from guests, members or other patrons, or
as part of the sales price of any goods, services or displays, such as gross receipts, admission or similar or equivalent taxes,
duties, levies or charges.

 

    3

     

    

 

18.               
Keep Tenant advised of significant events which occur with respect to the Hotels which might reasonably be expected to
have a material adverse effect on the financial performance or value of the Hotels.

 

19.               
Perform such other tasks with respect to the Hotels as are customary and consistent with the System Standards.

 

B.                
The operation of the Hotels shall be under the exclusive supervision and control of Manager which, except as otherwise
specifically provided in this Agreement, shall be responsible for the proper and efficient operation of the Hotels. Subject to
the terms of this Agreement, Manager shall have discretion and control, free from interference, interruption or disturbance, in
all matters relating to management and operation of the Hotels, including, without limitation, the following: charges for Guest
Rooms and commercial space; credit policies; food and beverage services; employment policies; granting of leases, subleases, licenses
and concessions for shops and agencies within the Hotels consistent with the provisions of Section 10.01 hereof; receipt, holding
and disbursement of funds; maintenance of bank accounts; procurement of Inventories (including initial inventories), supplies
and services; promotion and publicity; payment of costs and expenses as are specifically provided for in this Agreement or are
otherwise reasonably necessary for the proper and efficient operation of the Hotels; and, generally, all activities necessary
for operation of the Hotels.

 

C.                
Manager shall use reasonable efforts to comply with and abide by all Legal Requirements and Insurance Requirements pertaining
to its operation of the Hotels, provided that Manager shall have the right, but not the obligation, in its reasonable discretion,
to contest or oppose, by appropriate proceedings, any such laws and regulations in accordance with Section 11.24 hereof. Except
as expressly provided to the contrary in this Agreement, all costs and expenses of such compliance with respect to each Hotel
shall be paid from Gross Revenues as Deductions in the computation of Operating Profit of such Hotel or from the Reserve of such
Hotel, whichever is applicable, and the reasonable expenses of any such contest shall be paid from Gross Revenues as Deductions
with respect to such Hotel.

 

D.               
Manager shall use due diligence and exercise commercially reasonable efforts to obtain and maintain all approvals necessary
to use and operate the Hotels in accordance with the System Standards and Legal Requirements. Tenant shall cooperate with Manager
in this regard and, in connection therewith, shall execute all applications and consents required to be executed by Tenant in
order for Manager to obtain and maintain such approvals. All costs incurred by Tenant in this regard shall be included in Deductions
for the applicable Hotel.

 

E.                
Manager shall not use, and shall exercise commercially reasonable efforts to prevent the use of, the Hotels’ and
Manager’s personal property used in connection with the Hotels, if any, for any unlawful purpose. Manager shall not commit,
and shall use commercially reasonable efforts to prevent the commission, of any waste at the Hotels. Manager shall not use, and
shall use commercially reasonable efforts to prevent the use of, the Hotels in such a manner as will constitute an unlawful nuisance
thereon or therein. Manager shall use commercially reasonable efforts to prevent the use of the Hotels in such a manner as might
reasonably be expected to impair Tenant’s or Landlord’s title thereto or any portion thereof or might reasonably be
expected to give rise for a claim or claims for adverse use or adverse possession by the public, as such, or of implied dedication
of the Hotels or any portion thereof.

 

    4

     

    

 

F.                 
Manager shall, to the extent within Manager’s control, use commercially reasonable efforts to cause Tenant to be
in compliance with the Lease, and the costs of the same shall be paid as Deductions for the applicable Hotel hereunder except
as otherwise specifically provided for in this Agreement.

 

1.03         
Services Provided by Manager.

 

A.               
Manager will provide the Central Office Services and will bear all costs of the Central Office Services described in Exhibit B,
and in no event will the costs of the Central Office Services be charged to the Hotels as Deductions, either directly or through
the Above-Property Programs & Services.

 

B.                
In operating the Hotels, Manager may provide or cause to be provided, and the Hotels will participate in, certain functions
for the operation of the Hotels through the use of facilities, systems, equipment and individuals not physically located at the
Hotels, including Chain Services, MBS Systems, Reservation Systems, Loyalty Programs, Marketing Fund Activities and Program Services
(collectively referred to as the “Above-Property Programs & Services”).

 

C.                
Manager will provide or cause to be provided, and each Hotel will participate in, certain services (“Chain Services”)
that are provided on a comparable basis to System hotels as follows:

 

1.                 
Chain Services include: (a) certain executive management; (b) programs for training and manpower development, and payroll,
accounts payable, property and other accounting services; and (c) such additional central or regional services that from time
to time may be provided to hotels in the System or in substitution for services now performed at individual System hotels that
may be more efficiently performed on a group basis. Chain Services will not include services covered by the Program Services Contribution;
and

 

2.                 
Only Central Office Services and those services listed in clauses (a) and (b) of Section 1.03.C(1) as of the Effective
Date are covered by the System Fee. If there are expenditures that were originally treated as Deductions but that are later determined
to be more properly treated as Chain Services, or if additional central or regional services are provided for the benefit of hotels
in the System after the Effective Date, the Hotels’ allocable share of such expenditures will be Deductions and will not
be covered by the System Fee. Likewise, if there are expenditures that are listed in clauses (a) and (b) of the definition of
Chain Services that are included in Chain Services on the Effective Date, but that are later determined to be more properly provided
at the Hotel instead of on a central or regional basis, then such expenditures will not later be treated as Deductions but will
continue to be covered by the System Fee.

 

D.               
Manager and/or its Affiliates may provide or cause to be provided, and the Hotels will participate in, certain marketing
programs (the “Additional Marketing Programs”) that are not part of Chain Services, the Loyalty Programs or
the Marketing Fund Activities, or locally-generated public relations, advertising, promotions and marketing programs. As of the
Effective Date, the Additional Marketing Programs include email marketing, internet search engine marketing, transaction-based
paid internet searches, sales lead referrals and bookings, cooperative advertising programs, travel agency programs, incentive
awards and gift cards.

 

    5

     

    

 

E.                
Manager may, in its discretion, provide or cause to be provided certain programs and processes that manage certain aspects
of a Hotel’s finances and accounting through processes that consolidate certain accounts payable, billing and accounts receivable,
and related functions and procedures, into one or more shared services centers, or third party centers, for the System (including
any similar or successor systems or services, the “MBS Systems”). Manager may change the scope, services, service
provider, features and functions of the MBS Systems from time to time as it determines in its reasonable discretion to be most
efficient and economical for the System.

 

F.                
Manager may modify, add or delete categories of Above-Property Programs & Services in its reasonable discretion. If
Manager provides or causes to be provided a new Above-Property Program & Service to a Hotel, then Manager will determine whether
such new Above-Property Program & Service is treated as a Chain Service based on whether (i) the new Above-Property Program
 & Service supports only a subgroup of System hotels, or selected or individual hotels, or (ii) the costs of the new Above-Property
Program & Service is more appropriately recovered based on hotel usage. If either clause (i) or clause (ii) applies, the new
Above-Property Program & Service will not be treated as a Chain Service.

 

G.               
The Above-Property Programs & Services may be delivered to (i) all System hotels; (ii) certain subsets of
System hotels based on certain criteria such as hotel type; (iii) hotels on a local, regional or cluster basis; or (iv) the
Hotels and one or more other hotels or businesses on a shared basis. Any of these programs and services may also be provided or
delivered to any other businesses. The Above-Property Programs & Services provided or delivered to the Hotels may change from
time to time as reasonably determined by Manager subject to Sections 1.03.C(2) and 1.03.F. Manager may change, discontinue or
reconstitute the Above-Property Programs & Services on a country regional, or international basis.

 

H.             
The Above-Property Programs & Services costs (including for the avoidance of doubt the Program Services costs) will
be allocated by Manager on a fair and reasonable basis (for example, by the number of Guest Rooms, percentage of Gross Room Revenues
or other revenues, or volume of use) among all of the properties participating in such programs and services, which basis may
be different for different groups of Above-Property Programs & Services and may change from time to time as reasonably determined
by Manager. Each Hotel’s costs (i) will be Deductions; (ii) will include the actual costs of providing, developing
and supporting the Above-Property Programs & Services, including corporate overhead and development costs related to the Above-Property
Programs & Services; (iii) will not include any profit component to Manager; and (iv) will not include any amounts
that are paid by or on behalf of Tenant pursuant to any other provision of this Agreement for such Above-Property Programs &
Services. Manager may provide the Above-Property Programs & Services to other Persons and properties that are not part of
the System (or allow these Persons and properties to use the Above-Property Programs & Services’ systems and infrastructure)
at a price that will include the recovery of these costs and may also include a profit to Manager or its Affiliates. Tenant acknowledges
that the direct benefit to a Hotel from the Marketing Fund Activities (as defined below) might not be proportionate to any individual
Hotel’s cost allocation.

 

    6

     

    

 

I.                   
Any amounts that Manager collects in a Fiscal Year from the Hotels and other hotels receiving the Above-Property Programs
 & Services which are not used by Manager or its Affiliates to cover the costs incurred in providing Above-Property Programs
 & Services during such Fiscal Year, will be carried forward without interest and used to cover the costs incurred in future
Fiscal Years. If the amounts that Manager and its Affiliates collect from the Hotels and other hotels for Above-Property Programs
 & Services are at any time insufficient to cover the costs Manager or its Affiliates incur, then Manager and its Affiliates
may advance amounts from their own funds to cover the shortfall. These advances may be interest bearing loans and will be repaid
from future amounts collected from the Hotels and other System hotels receiving the Above-Property Programs & Services.

 

1.04         
Marketing Fund; Program Services.

 

A.               
Manager or its Affiliates will provide or cause to be provided, and the Hotels will participate in, the following (collectively,
the “Marketing Fund Activities”):

 

1.                 
brand research and strategy for sales and marketing;

 

2.                 
creating, producing, placing and distributing marketing materials in any form of media;

 

3.                 
advertising, marketing, promotions, public relations and sales campaigns, programs, sponsorships, seminars and other sales
activities;

 

4.                 
market research and oversight and management of the guest voice program and the Loyalty Programs; and

 

5.                 
retaining or employing personnel, advertising agencies, marketing consultants, and other professionals or specialists to
assist in developing, implementing and administering any of the above.

 

For
the avoidance of doubt, as described in Section 1.03.D hereof, the Marketing Fund Activities exclude any locally-generated public
relations, advertising, promotions and/or marketing programs.

 

B.                
Tenant will pay Manager an amount equal to two percent (2%) of Gross Room Revenues to reimburse Manager and its Affiliates
for all costs associated with the Marketing Fund Activities (the “Marketing Fund Contribution”). Tenant will
pay the Marketing Fund Contribution as part of the Program Services Contribution described in this Section 1.04.

 

C.                
Manager may change or reconstitute the Marketing Fund Activities on a country, regional or international basis.

 

D.               
As of the Effective Date, Program Services will include the Marketing Fund Activities and Reservation Systems, as well
as certain other Above-Property Programs & Services specified by Manager (“Program Services”). Program
Services will also include the actual costs of providing, developing and supporting the Program Services, including corporate
overhead and development costs related to the Program Services, costs for collecting and accounting for any monies collected by
Manager or its Affiliates for Program Services (the “PSF”), reimbursing capital invested in developing such
Program Services and financing such capital.

 

    7

     

    

 

E.                
Beginning on the Effective Date, Tenant shall pay Manager the Program Services Contribution (which shall include, but not
be limited to, the Marketing Fund Contribution) to reimburse Manager and its Affiliates for Program Services.

 

F.                 
Manager may (i) use the PSF to cover the costs of Program Services that benefit System hotels as a whole, groups of
System hotels, or other lodging properties operated or franchised by Manager or its Affiliates, or (ii) change the programs
and services covered by the PSF. Tenant acknowledges that the direct benefit to a Hotel from the Program Services might not be
proportionate to the Program Services Contribution. Program Services will not necessarily include all of the hotels in the System,
and some Program Services may also benefit or include Other Marriott Products.

 

1.05         
Employees.

 

A.               
All personnel employed at the Hotels shall at all times be the employees of Manager. Subject to the terms of this Agreement,
Manager shall have absolute discretion with respect to all personnel employed at the Hotels, including, without limitation, decisions
regarding hiring (subject to Section 1.05.B), promoting, transferring, compensating, supervising, terminating, directing and training
all employees at the Hotels, and, generally, establishing and maintaining all policies relating to employment; provided,
however, that Manager shall use commercially reasonable efforts to comply with all Legal Requirements pertaining thereto
and not enter into any written employment agreements with any person which purport to bind Tenant and/or purport to be effective
regardless of a Termination, without obtaining Tenant’s consent, which consent may be withheld in Tenant’s sole and
absolute discretion. Manager shall use reasonable efforts to comply with and abide by all Legal Requirements regarding labor relations;
if either Manager or Tenant shall be required, pursuant to any such Legal Requirement, to recognize a labor union or to enter
into a collective bargaining with a labor union, the party so required shall promptly notify the other party pursuant to this
Section 1.05. Manager shall indemnify Landlord and Tenant for all costs and expenses (including reasonable attorneys’ fees)
incurred by either of them if they are joined in or made party to any third-party suit or cause of action in connection with an
Employee Claim where the basis of such Employee Claim is conduct by Manager that is a substantial violation of the standards of
responsible labor relations as generally practiced by prudent owners or operators of similar hotel properties in the general geographic
area of the relevant Hotel, the costs of which shall not be a Deduction. Any Dispute between Tenant and Manager as to whether
or not certain conduct by Manager is not in accordance with the aforesaid standards shall be resolved by Arbitration pursuant
to Section 11.23.A hereof. The Arbitration proceedings described in the preceding sentence shall be conducted independently of
any arbitration proceedings with respect to such Employee Claim pursuant to the applicable employee-related contract. All information
regarding individual Hotel employees, such as employee records and compensation information, is proprietary to Manager and confidential
and will not be disclosed to Tenant except as otherwise expressly provided in this Agreement.

 

    8

     

    

 

B.                
Manager shall have the authority to hire, dismiss or transfer each Hotel’s general manager; provided, however,
that Manager shall keep Tenant reasonably informed with respect to such actions, including prior notification to Tenant of Manager’s
desire to transfer the general manager, and shall give Tenant the opportunity to participate in the hiring process with respect
to the general managers as follows:

 

1.                 
Manager shall provide Tenant at least thirty (30) days’ prior notice of any proposed hiring of a general manager.
Manager shall consult with Tenant to obtain any suggestions by Tenant as to the preferred background and specific expertise of
candidates for such Hotel position, which suggestions, if any, Manager shall utilize in arriving at a preferred profile for candidates
for such position.

 

2.                 
Manager shall submit to Tenant for its approval a reasonably qualified candidate for such position. Tenant shall have a
period of ten (10) Business Days from its receipt of the applicable candidate’s resume within which to interview and evaluate
such candidate (provided that such candidate and the necessary representatives of Tenant are reasonably available during such
period of time for such interview or evaluation, and such candidate shall not be required to provide additional information or
undertake testing of any sort as part of such process). Tenant shall be deemed to have approved such candidate unless Manager
receives Tenant’s written disapproval of such candidate within such ten (10)-Business Day period. If Tenant disapproves
the first (1st) candidate (based on the process described above), then Manager shall submit a second (2nd) candidate, using the
same process described above. If such second (2nd) candidate is disapproved by Tenant (based on the same process described above),
then Manager shall submit a third (3rd) candidate, using the same process as described above. If Tenant disapproves of all three
(3) candidates for the position submitted by Manager pursuant to the provisions of this Section 1.05.B, Manager shall have the
right to select the person to be offered the position of general manager, in Manager’s sole discretion, from the three (3)
candidates proposed to Tenant.

 

C.                
Manager shall decide which, if any, of the employees of the Hotels shall reside at the Hotels (provided that Tenant’s
prior approval shall be obtained if more than two (2) such employees and their immediate families reside at any Hotel), and shall
be permitted to provide free accommodations and amenities to its employees and representatives living at or visiting the Hotels
in connection with its management or operation consistent with the Marriott Companies usual practices for Marriott-managed hotels
in the System. No person shall otherwise be given gratuitous accommodations or services without prior joint approval of Tenant
and Manager except in accordance with usual practices of the hotel and travel industry.

 

D.               
Manager shall identify, appoint, assign, instruct and supervise employees in connection with the operation of the Hotels
which Manager deems necessary or advisable for the operation of the Hotels.

 

E.                
Tenant acknowledges that Manager has informed Tenant that Manager and its Affiliates may collect and use Hotel Employee
Personal Data to manage Hotel employees as provided in this Agreement. Tenant shall notify Manager promptly of any inquiry or
complaint of which Tenant becomes aware that is received from a Hotel employee, data protection authority or other third party
regarding the collection, use or transfer of Hotel Employee Personal Data. Tenant will reasonably cooperate with Manager in any
defense of such a complaint, and will not, without Manager’s prior written consent, make any intentional admission or take
any action that would reasonably be expected to adversely prejudice the defense or settlement of any third-party complaint regarding
Hotel Employee Personal Data or any investigation by a data protection authority.

 

    9

     

    

 

1.06         
Right to Inspect. Manager shall permit Landlord and Tenant and their respective authorized representatives to inspect
or show the Hotels during usual business hours upon not less than twenty-four (24) hours’ notice and to make such repairs
as Landlord is permitted or required to make pursuant to the terms of the Lease, provided that any inspection or repair by Landlord
or its representatives shall not unreasonably interfere with the use and operation of the Hotels and further provided that in
the event of an emergency as determined by Landlord in its reasonable discretion, prior notice shall not be required.

 

1.07         
Right of Offset. Manager acknowledges that it shall not have, in any instance, a right of offset against Tenant’s
Priority with respect to any Hotel under any circumstances (or against Aggregate Tenant’s Priority with respect to Hotels
for which the Pooling Agreement is in effect). Manager shall have the right to offset against amounts due to Tenant with respect
to any Hotel pursuant to Section 3.02.B hereof (and against amounts due to Tenant pursuant to Section 2.02.A of the Pooling Agreement
with respect to Hotels for which the Pooling Agreement is in effect) (but in all events excluding amounts due to Tenant as Tenant’s
Priority or Aggregate Tenant’s Priority), including amounts (i) which Landlord or Tenant fail to advance to the Reserve
for such Hotel which either of them is required to make as provided for herein or in the Lease or Owner Agreement (in each instance
as determined by the Expert pursuant to Section 11.23.B, if applicable), or (ii) due under a final judgment against Tenant
obtained by Manager with respect to such Hotel, or (iii) which Tenant fails to pay to Manager in violation of Section 4.01.D(2)
of this Agreement with respect to such Hotel. Except as expressly provided herein, Manager shall not offset against the amounts
owed to Tenant hereunder or under the Pooling Agreement.

 

ARTICLE
II

 

TERM

 

2.01         
Term.

 

A.                 The
Term of this Agreement shall be, for each Hotel, from the Effective Date to the expiration or earlier termination of the
Initial Term and, if exercised in accordance with the terms hereof, the Renewal Term(s). The Initial Term and, if
exercised, each Renewal Term are collectively referred to as the “Term.” The “Initial
Term” for each Hotel shall begin on the Effective Date for such Hotel as set forth in the preceding sentence, and,
unless sooner terminated as provided in this Agreement, shall continue until December 31, 2035. Provided that
(1) Manager and its Affiliates have renewed all of the Other Management Agreements for the first Renewal Term or second
Renewal Term, as applicable in accordance with their terms, and (2) there exists at the time of renewal no Manager Event
of Default under this Agreement or any of the Other Management Agreements beyond the expiration of any applicable notice and
cure period and for which Tenant has, at such time, the right to terminate this Agreement, the Term shall thereafter
automatically be extended for each of two (2) successive periods of ten (10) Fiscal Years each (each, a “Renewal
Term”), unless Manager gives Tenant and Landlord written notice of Manager’s decision not to extend on or
before the date which is twelve (12) months prior to the date of the expiration of the Initial Term or first Renewal Term (as
the case may be), time being of the essence. If Manager does not extend the Initial Term or first Renewal Term (as the case
may be), then during such twelve (12)-month period prior to the date of the expiration of the Initial Term or first Renewal
Term (as the case may be), Tenant shall have the right to effect an earlier Termination of this Agreement with respect to
such Hotel by written notice to Manager, which Termination shall be effective as of the effective date which is set forth in
said notice, provided that said effective date shall be at least one hundred twenty (120) days after the date of said notice,
and in no event earlier than July 1 of the year of such Termination, and such Termination shall be in accordance with the
provisions of Section 11.11 of this Agreement. Notwithstanding the foregoing, the parties acknowledge and agree that
Tenant’s termination right pursuant to this Section 2.01.A shall only be exercised with respect to all or none of the
Hotels which are subject to this Agreement.

 

    10

     

    

 

B.                
Each Renewal Term shall commence on the day succeeding the expiration of the Initial Term or the preceding Renewal Term,
as the case may be. All of the terms, covenants and provisions of this Agreement shall apply to each such Renewal Term. If Manager
shall give notice that it elects not to extend the term in accordance with this Section 2.01, this Agreement shall automatically
terminate at the end of the Term then in effect, or such earlier date as provided above, and Manager shall have no further option
to extend the Term of this Agreement. Otherwise, the extension of this Agreement shall be automatically effected without the execution
of any additional documents; it being understood and agreed, however, that Manager and Tenant shall execute such documents and
agreements as either party shall reasonably require to evidence the same.

 

ARTICLE
III

 

COMPENSATION
OF MANAGER

 

3.01         
Management Fees. In consideration of the services provided to Tenant so that the Hotels become members of the System
and in consideration of the management services to be performed during the Term, Manager shall be paid, with respect to each Hotel,
the sum of the following as its management fees:

 

A.               
The System Fee; plus

 

B.                
The Base Management Fee; plus

 

C.                
The First Incentive Management Fee; plus

 

D.               
The Second Incentive Management Fee.

 

So
long as the Pooling Agreement has not been terminated in accordance with its terms with respect to the Hotels, payments of the
Management Fees with respect to periods for which the Pooling Agreement was in effect shall be made at the time, and in the amounts,
provided for under the Pooling Agreement. Notwithstanding anything herein to the contrary, if, in any Fiscal Year or portion thereof
prior to the termination of the Pooling Agreement in accordance with its terms with respect to one or more of the Hotels, the
First Incentive Management Fee or the Second Incentive Management Fee with respect to such Hotels are not payable in full under
the Pooling Agreement, Manager shall not be entitled to the payment of the portion of the First Incentive Management Fee or the
Second Incentive Management Fee not payable under the terms of the Pooling Agreement for such Fiscal Year or partial Fiscal Year
with respect to such Hotels, and in no event shall Tenant be liable for the payment of any such unpaid portion to Manager. Notwithstanding
anything herein to the contrary, if, in any Fiscal Year after the termination of the Pooling Agreement in accordance with its
terms or with respect to a Hotel, the First Incentive Management Fee or the Second Incentive Management Fee with respect to such
Hotel is not payable under Section 3.02.B hereof with respect to such Hotel, Manager shall not be entitled to the payment of the
portion of the First Incentive Management Fee or the Second Incentive Management Fee not payable under Section 3.02.B hereof with
respect to such Hotel, and in no event shall Tenant be liable for the payment of such portion of the First Incentive Management
Fee or the Second Incentive Management Fee to Manager with respect to such Hotel.

 

    11

     

    

 

3.02         
Operating Profit.

 

A.               
So long as the Pooling Agreement has not been terminated in accordance with its terms with respect to one or more of the
Hotels, Operating Profit for such Hotels with respect to periods for which the Pooling Agreement was in effect shall be distributed,
to the extent available, as provided in the Pooling Agreement and the provisions of Section 3.02.B shall not apply.

 

B.                
For any period during the Term after the termination of the Pooling Agreement in accordance with its terms with respect
to one or more of the Hotels, Operating Profit for each such Hotel shall be distributed in the following order of priority:

 

1.                 
First, to Tenant, in an amount equal to Tenant’s Priority for such Hotel.

 

2.                 
Second, to Tenant, in an
amount equal to the amount of rent due pursuant to the ground lease (if any) to which
such Hotel is subject, as set forth on the applicable Addendum for such Hotel (the “Ground Lease Rent”).

 

3.                 
Third, to Manager, in an amount equal to
the Base Management Fee for such Hotel.

 

4.                 
Fourth, pari passu, to (i) Tenant, in an amount necessary to reimburse Tenant for all Tenant Working Capital
Advances and Tenant Operating Loss Advances made by Tenant, from time to time (collectively, “Tenant Advances”)
with respect to such Hotel which have not yet been repaid by distributions pursuant to this Section 3.02.B(4), and (ii) to
Marriott, in an amount necessary to reimburse Marriott or any Affiliate for all Additional Marriott Advances made by Marriott
or any Affiliate (including Manager) allocable to such Hotel and all Additional Manager Advances from time to time which have
not yet been repaid by distributions pursuant to this Section 3.02.B(4). If at any time the amounts available for distribution
to Tenant and Marriott with respect to a Hotel pursuant to this Section 3.02.B(4) (“Available Funds”) are insufficient
(a) to repay to Tenant all outstanding Tenant Advances with respect to a Hotel (the “Sum Due Tenant”),
and (b) to repay to Marriott all outstanding Additional Marriott Advances and Additional Manager Advances with respect to
a Hotel (the “Sum Due Marriott”), then (x) Tenant shall be paid from the Available Funds for such Hotel
the amount obtained by multiplying a number equal to the amount of the Available Funds by a fraction, the numerator of which is
the Sum Due Tenant and the denominator of which is the sum of the Sum Due Tenant plus the Sum Due Marriott, and (y) Marriott
shall be paid from the Available Funds the amount obtained by multiplying a number equal to the amount of the Available Funds
for such Hotel by a fraction, the numerator of which is the Sum Due Marriott and the denominator of which is the sum of the Sum
Due Tenant plus the Sum Due Marriott.

 

    12

     

    

 

5.                 
Fifth, to Manager, in an amount equal to
any accrued, but unpaid Base Management Fees for such Hotel.

 

6.                 
Sixth, to Manager, in an amount equal to the First Incentive Management Fee for such Hotel.

 

7.                 
Seventh, to Tenant, in an amount up to sixty percent (60%) of Operating Profit
remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (6) hereof necessary for the
Security Deposit Replenishment with respect to such Hotel.

 

8.                 
Eighth, to Manager, in an amount equal to the Second Incentive Management Fee for such Hotel.

 

9.                 
Finally, to Tenant, the balance, if any.

 

C.                
For any period during which a Hotel is no longer subject to the terms of the Pooling Agreement pursuant to the terms thereof,
Tenant shall receive Tenant’s Priority in accordance with the terms hereof, subject, however, to the provisions of this
Section 3.02.C. If the Operating Profit for the applicable Accounting Period, as determined by Manager, is less than Tenant’s
Priority with respect to such Accounting Period (a “Tenant’s Priority Shortfall”), then such Tenant’s
Priority Shortfall shall first be funded by Security Deposit Advances, and if the Security Deposit is depleted or otherwise insufficient
to fund such Tenant’s Priority Shortfall, then the amount of the Tenant’s
Priority Shortfall required to satisfy the Tenant’s Termination Threshold shall be funded by Marriott Guaranty Advances,
subject to the terms of the Marriott Guaranty Agreement, for so long as the Marriott Guaranty Agreement is in effect, and any
such amounts funded in excess of the Tenant’s Termination Threshold shall be deemed to have been funded by Marriott as an
Additional Marriott Advance and/or Manager as an Additional Manager Advance (as applicable) and not as a Marriott Guaranty Advance.
Any amount of the Tenant’s Priority Shortfall not funded from the Security Deposit or by Marriott or Manager shall accrue
and be paid as provided in Section 4.01 hereof. If a Guaranty Termination Event has occurred, then Manager may, without any obligation
and in its sole and absolute discretion, fund up to the Post-Guaranty Termination Threshold, and any such amounts funded by Manager
following such Guaranty Termination Event shall be deemed Additional Manager Advances. If (a) no Guaranty Termination Event
has occurred, and Marriott has not funded up to the Tenant’s Termination Threshold under the Marriott Guaranty Agreement
as provided herein for the applicable Fiscal Year on a cumulative basis within ten (10) days of receiving written request
from Tenant or (b) a Guaranty Termination Event has occurred, and Manager has not funded up to the Post-Guaranty Termination
Threshold for the applicable Fiscal Year on a cumulative basis within ten (10)
days of receiving written request from Tenant (such event, a “Manager Funding Termination Event”), then Tenant
shall have the right to effect a Termination of this Agreement with respect to such Hotel by written notice to Manager, which
Termination shall be effective as of the effective date which is set forth in said notice; provided that said effective date shall
be at least sixty (60) days (or such longer period required by applicable Legal Requirements concerning the termination of Hotel
employees) after the date of such notice. If the Termination is pursuant to clause (a) of this Section 3.02.C, then such Termination
(i) shall be in accordance with the provisions of Section 11.11 of this Agreement, (ii) shall constitute a Manager Default,
and (iii) shall entitle Tenant to all rights and remedies available to it with respect to a Manager Default as provided for
in Article IX hereof. If the Termination is due to a Manager Funding Termination
Event, then such Termination shall not constitute a Manager Default or Manager Event of Default and shall be in accordance with
the provisions of Section 11.11 of this Agreement. Notwithstanding the foregoing, the parties acknowledge and agree that
Tenant’s termination right pursuant to this Section 3.02.C shall only be exercised with respect to all or none of the Hotels
which are subject to this Agreement.

 

    13

     

    

 

D.               
Notwithstanding the provisions of Section 3.02.B(2) hereof, the parties hereby acknowledge and agree that none of Manager,
Marriott or any of their respective Affiliates are obligated to pay and in no event shall be liable in any way whatsoever (i) for
any payment of, or failure to pay, the Ground Lease Rent to the lessor under any such ground lease; and/or (ii) if there
is insufficient Operating Profit to cover the full amount of such Ground Lease Rent.

 

ARTICLE
IV

 

ACCOUNTING,
BOOKKEEPING AND BANK ACCOUNTS

 

4.01         
Accounting, Interim Payment and Annual Reconciliation.

 

A.               
Within twenty (20) days after the close of each Accounting Period, Manager shall deliver an interim accounting (the “Accounting
Period Statement”) to Tenant and Landlord showing for each Hotel, Gross Revenues, Gross Room Revenues, occupancy percentage
and average daily rate, Deductions, Operating Profit, and applications and distributions thereof for the preceding Accounting
Period.

 

Only
if the Pooling Agreement has been terminated in accordance with its terms with respect to one or more Hotels, the following provisions
for interim distributions shall apply with respect to such Hotels for periods subsequent to the termination date. Notwithstanding
the order of distribution of Operating Profit set forth in Section 3.02.B, for each Accounting Period, Manager shall, with each
interim accounting, transfer to Tenant any interim amounts due Tenant, transfer to Marriott any interim amounts due to Marriott,
and retain any interim amounts due to Manager under Section 3.02.B, including, without limitation, the Base
Management Fee, the First Incentive Management Fee, and the Second Incentive
Management Fee calculated on a year-to-date basis for such Fiscal Year. If the portion of Operating Profit to be distributed
to Tenant pursuant to Sections 3.02.B(1), (2), (4) or (7) is insufficient to pay each of such interim amounts then due in full
following the end of any Accounting Period, any such interim amounts left unpaid shall be paid from and to the extent of Operating
Profit available therefor at the time distributions are made following successive Accounting Periods until such interim amounts
are paid in full, and such payments shall be made from such available Operating Profit in the same order of priority as other
payments made on account of such items following such Accounting Periods. If the portion of Operating Profit to be distributed
to Marriott or Manager pursuant to Sections 3.02.B(3), (4), (5), (6) or (8) is insufficient to pay each of such interim amounts
then due in full following the end of any Accounting Period, any such interim amounts left unpaid shall be paid from and to the
extent of Operating Profit available therefor at the time distributions are made following successive Accounting Periods until
such interim amounts are paid in full, and such payments shall be made from such available Operating Profit in the same order
of priority as other payments made on account of such items following such Accounting Periods. The portion of Operating Profit
to be distributed as interim distributions to Tenant as Tenant’s Priority, Ground Lease Rent and as Security Deposit Replenishment
pursuant to Section 3.02.B for the then-current Fiscal Year for each Hotel, as well as the portion of Operating Profit to be retained
by Manager as the Base Management Fee, the First Incentive Management Fee and the Second Incentive Management Fee pursuant to
Section 3.02.B for each Hotel, shall be determined by applying in each instance a cumulative prorated amount to such Tenant’s
Priority, Ground Lease Rent, Security Deposit Replenishment, Base Management Fee, First Incentive Management Fee and Second Incentive
Management Fee (calculated on a year-to-date basis, with the prorated amount being one-twelfth (1/12) of the total amount for
each of such items for each Accounting Period of each Fiscal Year) to the year-to-date cumulative Operating Profit of such Hotel
(all such portions being hereinafter collectively referred to as the “Prorated Portions”). In each Accounting
Period after the first Accounting Period of a Fiscal Year, inclusive, the Prorated Portions shall be adjusted to reflect distributions
to Tenant, and retention by Manager, of Operating Profit with respect to such Prorated Portions for prior Accounting Periods during
the then current Fiscal Year. All the distributions shall be made in the order of priority as set forth in Section 3.02 hereof.

 

    14

     

    

 

B.                
Intentionally Deleted.

 

C.            
1.       Calculations and payments of the First Incentive Management Fee, the Second
Incentive Management Fee, Tenant’s Priority, and Ground Lease Rent for each Hotel and distributions of Operating Profit
made with respect to each Accounting Period within a Fiscal Year for each Hotel shall be accounted for cumulatively within a Fiscal
Year, but shall not be cumulative from one Fiscal Year to the next. Calculations and payments of any Base Management Fees or Reimburseable
Advances payable pursuant to Sections 3.02.B(3), (4) and (5) hereof and the Security Deposit Replenishment shall be accounted
for cumulatively within a Fiscal Year, and shall be cumulative from one Fiscal Year to the next. Calculations of Security Deposit
Advances and Marriott Guaranty Advances shall be accounted for cumulatively within a Fiscal Year.

 

2.         Within
sixty (60) days after the end of each Fiscal Year, Manager shall deliver to Tenant and Landlord a statement (the “Annual
Operating Statement”) in reasonable detail summarizing the operations of the Hotels with respect to which this Agreement
was in effect for the immediately preceding Fiscal Year and an Officer’s Certificate certifying that such Annual Operating
Statement is true and correct. The parties shall, within ten (10) Business Days after Tenant’s receipt of such statement,
make any adjustments, by cash payment, in the amounts paid or retained for such Fiscal Year as are needed because of the final
figures set forth in such Annual Operating Statement; provided, however, that for any period prior to the termination
of the Pooling Agreement in accordance with its terms with respect to any of the Hotels, the year-end adjustments for such Hotel
shall be made pursuant to the Pooling Agreement. Such final accounting shall be controlling over the interim accountings and shall
be final subject to adjustments required as a result of an audit requested by Landlord or Tenant below. No adjustment shall be
made for any Operating Loss or Operating Profit for any Hotel in a preceding or subsequent Fiscal Year.

 

    15

     

    

 

D.               
1.    In addition, on or before April 30 of each Fiscal Year, commencing on April 30, 2021, Manager
shall deliver to Tenant and Landlord an Officer’s Certificate setting forth the totals of Gross Revenues, Deductions, and
the calculation of the First Incentive Management Fee, the Security Deposit Replenishment and the Second Incentive Management
Fee for each Hotel with respect to which this Agreement was in effect for the preceding Fiscal Year. If Tenant desires, at its
own expense, that an audit be delivered with the delivery of an Officer’s Certificate, Tenant shall notify Manager in writing
no later than February 1 of the Fiscal Year in which such Officer’s Certificate will be delivered. Such audit shall be completed
by a firm of independent certified public accountants proposed by Manager and approved by Tenant and Landlord (which approval
shall not be unreasonably withheld or delayed). Any dispute concerning the correctness of an audit shall be settled by an Expert
in accordance with Section 11.23.B. Manager shall pay the cost of any such audit revealing an understatement of Operating Profit
by more than five percent (5%), and such amount shall not be a Deduction. Notwithstanding anything contained in this Agreement
to the contrary, Manager shall remain obligated to deliver an Officer’s Certificate as required by Section 4.01.D(1) of
the Prior Management Agreement on or before April 30, 2020. Tenant shall have the right to audit such Officer’s Certificate
in accordance with the Prior Management Agreement, and the parties shall make such adjustments with respect thereto as would be
required under the Prior Management Agreement.

 

2.       If
the Security Deposit Replenishment or any other amounts due to Tenant as shown in the Officer’s Certificate provided in
Section 4.01.D(1) above for any Hotel exceed the amounts previously paid with respect thereto to Tenant, Manager shall promptly
pay such excess to Tenant at such time as the Officer’s Certificate is delivered, together with interest at the Disbursement
Rate, which interest shall accrue from the close of such preceding Fiscal Year until the date that such certificate is required
to be delivered and, thereafter, such interest shall accrue at the Overdue Rate, until the amount of such difference shall be
paid or otherwise discharged. Manager shall notify Tenant of such payment and the amount thereof and Manager shall promptly render
a statement to Tenant setting forth the adjustments required to be made to the distributions under Section 3.02.B for such Fiscal
Year and the parties shall promptly make, and cause their respective Affiliates to make, any adjustments or additional payments
or reimbursements required to comply with such revised statement. If the Security Deposit Replenishment due as shown in the Officer’s
Certificate for any Hotel is less than the amount previously paid with respect thereto to Tenant, Tenant shall within ten (10)
Business Days of receipt of written request from Manager, pay such excess to Manager, together with interest at the Disbursement
Rate, which interest shall accrue from the date of such overpayment until it is repaid. Manager shall notify Tenant of the requirement
of such payment and the amount thereof and Manager shall promptly render a statement to Tenant setting forth the adjustments required
to be made to the distributions under Section 3.02.B for such Fiscal Year and the parties shall promptly make, and cause their
respective Affiliates to make promptly, any adjustments or additional payments or reimbursements required to comply with such
revised statement. Notwithstanding anything contained in this Agreement to the contrary, Manager and Tenant shall comply with
their obligations under Section 4.01.D(2) of the Prior Management Agreement with respect to the Officer’s Certificate to
be delivered by Manager on or before April 30, 2020.

 

    16

     

    

 

E.                
To the extent there is an Operating Loss for any Fiscal Year with respect
to a Hotel, Tenant shall have the right, without any obligation and in its sole and absolute discretion, to advance funds required
to fund such deficiency within twenty (20) days after Manager has delivered written notice thereof to Tenant; provided,
however, during any period in which any Hotel is subject to the Pooling Agreement, the determination of any Operating Loss
for such Hotel shall be made based on the aggregate of the Operating Profit and Operating Losses of all Portfolio Properties and
Tenant’s rights shall be governed by the terms and provisions of the Pooling Agreement. Any Operating Loss so funded by
Tenant shall constitute a “Tenant Operating Loss Advance.” If Tenant does not fund such Operating Loss in accordance
with the terms of this Section 4.01.E, then Manager shall also have the right, within twenty (20) days after such initial twenty
(20)-day period, without any obligation and in its sole and absolute discretion, to advance funds required to fund such Operating
Loss, and any such advance shall constitute an Additional Manager Advance with respect to such Hotel. Any Tenant Operating Loss
Advances and/or Additional Manager Advances shall be repaid in accordance with Section 3.02.B(4) hereof.

 

F.               1.    In
addition, Manager shall provide Landlord and Tenant with information relating to the Hotels and public information relating to
Manager and its Affiliates that (a) may be required in order for Landlord or Tenant as the case may be to prepare financial
statements in accordance with GAAP or to comply with applicable securities laws and regulations and the SEC’s interpretation
thereof, (b) may be required for Tenant or Landlord to prepare federal, state or local tax returns, or (c) is of the
type that Manager customarily prepares for other hotel owners; provided, however, that (i) Manager reserves
the right, in good faith, at Manager’s expense, to challenge
and require Landlord and Tenant to use commercially reasonable efforts to challenge any assertion by the SEC, any other applicable
regulatory authority, or Landlord’s or Tenant’s independent public accountants that applicable law, regulations or
GAAP require the provision or publication of Proprietary Information, (ii) Landlord and Tenant shall not, without Manager’s
consent (which consent shall not be unreasonably withheld, delayed or conditioned), acquiesce to any such challenged assertion
until Landlord and Tenant have exhausted all reasonable available avenues of administrative review, and (iii) Landlord and
Tenant shall consult with Manager in pursuing any such challenge and will allow Manager to participate therein, at Manager’s
expense, if and to the extent that Manager so elects. Landlord and Tenant acknowledge that the foregoing does not constitute an
agreement by Manager either to join in Landlord and Tenant filing with or appearance before the SEC or any other regulatory authority
or to take or consent to any other action which would cause Manager to be liable to any third party for any statement or information
other than those statements incorporated by reference pursuant to clause (a) above.

 

2.       Subject
to such Person entering into a confidentiality agreement with Manager as Manager may reasonably require, Tenant may at any time,
and from time to time, provide copies of any of the statements furnished under this Section 4.01 to any Person which has made
or is contemplating making a Qualified Mortgage, or another lender, or a prospective lender with respect to one or more of the
Hotels.

 

3.       In
addition, Landlord and Tenant shall have the right, from time to time at Landlord’s or Tenant’s (as the case may be)
sole cost and expense, upon reasonable written notice, during Manager’s customary business hours, to cause Manager’s
books and records with respect to the Hotels to be audited by auditors selected by Landlord or Tenant (as the case may be) at
the place or places where such books and records are customarily kept, provided that, prior to conducting such audit, Landlord
or Tenant, as the case may be, shall enter into a confidentiality agreement with Manager, such agreement to be in form and substance
reasonably satisfactory to Landlord or Tenant (as the case may be) and Manager.

 

    17

     

    

 

4.02         
Books and Records.

 

A.               
Books of control and account pertaining to operations at the Hotels shall be kept on the accrual basis and in all material
respects in accordance with the Uniform System of Accounts and with GAAP (provided that, to the extent of a conflict between the
two, GAAP shall control over the Uniform System of Accounts), or in accordance with such industry standards or such other standards
with which Manager and its Affiliates are required to comply from time to time, with the exceptions, if any, provided in this
Agreement and the Pooling Agreement, to the extent applicable which will accurately record the Gross Revenues of the Hotels and
applications thereof. Manager shall retain, for at least three (3) years after the expiration of each Fiscal Year, reasonably
adequate records showing Gross Revenues and applications thereof for the Hotels for such Fiscal Year (which obligation shall survive
termination hereof).

 

B.                
Tenant may at reasonable intervals during Manager’s normal business hours examine such books and records including,
without limitation, supporting data and sales and excise tax returns. If Tenant desires, at its own expense, to audit, examine,
or review the annual operating statement which is described in Section 4.01.C(2), Tenant shall notify Manager in writing within
one (1) year after receipt of such statement of its intention to audit and begin such audit within such one (1) year after Manager’s
receipt of such notice. Tenant shall use commercially reasonable efforts to complete such audit as soon as practicable after the
commencement thereof, subject to reasonable extension if Tenant’s or its accountant’s inability to complete the audit
within such time is caused by Manager. If Tenant does not make such an audit, then such statement shall be deemed to be conclusively
accepted by Tenant as being correct, and Tenant shall have no right thereafter, except for adjustments made pursuant to an audit
requested by Landlord under the Owner Agreement or in the event of fraud by Manager, to question or examine the same. If any audit
by Tenant or Landlord as aforesaid (1) discloses an understatement of any net amounts due Tenant and its Affiliates, in the aggregate,
hereunder (and, prior to the termination of the Pooling Agreement in accordance with its terms with respect to the Hotels and
the Other Management Agreements for the Fiscal Year in question) Manager shall, and shall cause its Affiliates, to promptly pay
Tenant such net amounts found to be due, plus interest thereon at the Overdue Rate from the date such amounts should originally
have been paid, or (2) discloses that Manager and its Affiliates have not received, in the aggregate, any net amounts due them
hereunder (and, prior to the termination of the Pooling Agreement in accordance with its terms with respect to the Hotels and
the Other Management Agreements for the Fiscal Year in question), Tenant shall, and shall cause its Affiliates, to promptly pay
Manager such net amounts, plus interest thereon (at the Prime Rate plus one percent (1%) per annum) from the date such amounts
should originally have been paid. Manager shall promptly after completion of the adjustments required as a result of any such
audit, render a statement to Tenant setting for that adjustments required to be made to the distributions under Section 3.02.B
for such Fiscal Year which reflect all adjustments made to the amounts due Tenant, Marriott and/or Manager as a result of such
audit and the parties shall make and cause their respective Affiliates to make any adjustments or additional payments or reimbursements
required to comply with such revised statement. Any dispute concerning the correctness of an audit shall be settled by the Expert
in accordance with Section 11.23.B. Manager shall pay the cost of any audit revealing understatement of Operating Profit by more
than five percent (5%), and such amount shall not be a Deduction from Gross Revenues.

 

    18

     

    

 

C.                
Manager shall have the right, at its option, to provide Tenant with automated delivery, in electronic format, of the data
required under Sections 4.01.A, 4.01.C(2), 4.01.D(1), 4.02.A and 4.04 (consistent with the then-current standard operating procedures
generally employed by Manager with respect to other hotels in the System), which delivery may be by means of a link to an intranet
website of Manager or an Affiliate provided contemporaneous notice of the posting of data is provided to Tenant via electronic
mail to a person designated in writing by Tenant to Manager. The parties shall cooperate reasonably with each other in order to
adapt to new technologies that may be available with respect to the transmission of such data.

 

4.03         
Accounts, Expenditures.

 

A.               
Tenant irrevocably authorizes and directs Manager to pay, and Manager agrees to pay (or repay, as applicable), without
notice, demand or request therefor, but in each instance subject to the provisions of the Pooling Agreement, if applicable, and
the Marriott Guaranty Agreement, if applicable, with respect to each of the Hotels: (1) Tenant’s Priority to Tenant
when due and payable hereunder, (2) the Ground Lease Rent (if any) to Tenant, (3) the Base Management Fee to itself,
(4) distributions to Tenant, Marriott and/or Manager with respect to the Tenant Advances, Additional Marriott Advances and
Additional Manager Advances, (5) any accrued, but unpaid Base Management Fees to itself, (6) the First Incentive Management
Fee to itself, (7) the Security Deposit Replenishment to Tenant, (8) the Second Incentive Management Fee to itself,
and (9) the remaining balance, if any, to Tenant, in each of the foregoing instances set forth in this Section 4.03.A(1)
through (9), at the time interim distributions are made pursuant to Section 4.01 hereof (except as otherwise set forth herein),
and to the extent of the sufficiency of, and in the order of, distribution of Operating Profit under Section 3.02.B. Subject to
Section 4.03.D, Manager is authorized to, and shall, make all expenditures required to be made hereunder with respect to the operation
of the Hotels, but only from funds available for such payments under the terms of this Agreement or under the terms of the Pooling
Agreement, if applicable, or under the Marriott Guaranty Agreement, if applicable.

 

B.                
Notwithstanding anything herein to the contrary, within sixty (60) days after the end of each Fiscal Year, Marriott or
Manager shall determine whether any Additional Manager Advance, any Additional Marriott Advance or any Marriott Guaranty Advance
(pursuant to the terms of the Marriott Guaranty Agreement) was made with respect to such Fiscal Year, and if Marriott or Manager
has made such an advance with respect to such Fiscal Year, then Marriott or Manager shall advise Tenant in writing of the type
and amount of such advance, and the balance of the Aggregate Amount Funded shall be deemed increased by the amount of any Marriott
Guaranty Advance.

 

C.                
Subject to the terms of the Pooling Agreement, as appropriate, all escrow reserve accounts and funds derived from the operation
of the Hotels shall be deposited by Manager in a bank account(s) in a bank designated by Manager. Withdrawals from said accounts
shall be made solely by representatives of Manager whose signatures have been authorized. Reasonable petty cash funds shall be
maintained at the Hotels.

 

    19

     

    

 

D.               
Manager shall not be required to make any advance or payment hereunder or to or for the account of Tenant except out of
funds available therefor pursuant to the terms of this Agreement except as otherwise set forth herein or in any of the Incidental
Documents, and Manager shall not be obligated to incur any liability or obligation for Tenant’s account without assurances
satisfactory to Manager that necessary funds for the discharge thereof will be provided by Tenant. In any event, if any such liability
or obligation is incurred by Manager for Tenant’s account and Marriott does not have funds available under the Pooling Agreement
or Manager does not have funds hereunder if the Pooling Agreement is not in effect with respect to the applicable Hotel, to pay
such amount on or before twenty (20) days after the end of the Accounting Period in which such liability or obligation was paid,
the amount advanced to pay such obligation shall be an Additional Manager Advance which shall be repaid as provided in Section
3.02.B hereof.

 

4.04         
Annual Operating Projection. Manager shall furnish to Tenant for its review, at least thirty (30) days prior to
the beginning of each Fiscal Year (or such earlier date if that becomes the prevailing practice within the System), a statement
of the estimated financial results of the operation of each such Hotel for the forthcoming Fiscal Year (“Annual Operating
Projection”). Such projection shall project the estimated Gross Revenues, departmental profits, Deductions, and Operating
Profit for the ensuing Fiscal Year for each such Hotel. Manager agrees to take reasonable steps to ensure that, at Tenant’s
request, qualified personnel from Manager’s staff are available to explain such Annual Operating Projections to Tenant.
A meeting (or meetings) for such purpose shall be held, at Tenant’s request, within a reasonable period of time after the
submission to Tenant of the Annual Operating Projection. Manager will at all times give good faith consideration to Tenant’s
suggestions regarding any Annual Operating Projection. Manager shall thereafter submit to Tenant, by no later than seventy-five
(75) days after the beginning of such Fiscal Year, a modified Annual Operating Projection if any changes are made following receipt
of comments from Tenant. Manager shall endeavor to adhere to the Annual Operating Projection. It is understood, however, that
the Annual Operating Projection is an estimate only and that unforeseen circumstances such as, but not limited to, the costs of
labor, material, services and supplies, casualty, operation of law, or economic and market conditions may make adherence to the
Annual Operating Projection impracticable, and Manager shall be entitled to depart therefrom due to causes of the foregoing nature;
provided, however, that nothing herein shall be deemed to authorize Manager to take any action prohibited by this
Agreement or to reduce Manager’s other rights or obligations hereunder.

 

4.05         
Working Capital.

 

A.               
Subject to the terms of the Pooling Agreement, upon written notice from Manager, Tenant shall, within ten (10) Business
Days of Manager’s request, advance funds necessary to maintain Working Capital at levels determined by Manager to be reasonably
necessary to satisfy the needs of the Hotels as their operation may from time to time require (such additional funds, the “Additional
Working Capital”). Any such request by Manager shall be accompanied by a reasonably detailed explanation of the reasons
for the request. All Additional Working Capital shall be utilized by Manager on behalf of Tenant for the purposes of this Agreement
pursuant to cash-management policies established for the System; provided, however, that so long as any of the Hotels
are subject to the Pooling Agreement, the Working Capital for such Hotels will be pooled with working capital provided under the
Other Management Agreements and may be used to fund working capital needs for all Portfolio Properties. If Tenant fails to timely
fund such Additional Working Capital within ten (10) Business Days after Manager’s request for the same, then, without affecting
Manager’s other rights and remedies under this Agreement, Manager shall have the right, without any obligation and in its
sole and absolute discretion, to advance such Additional Working Capital within ten (10) Business Days after such initial ten
(10)-Business Day period, and all such advances shall constitute Tenant Working
Capital Advances or Additional Manager Advances, as applicable, and shall be repaid as provided in Section 3.02.B(4) hereof.

 

    20

     

    

 

B.                
Subject to the Pooling Agreement, upon a Termination, Manager shall disburse to Tenant all Working Capital remaining after
payment of all Deductions and all amounts owed to Manager hereunder and amounts payable by Tenant hereunder (including funds to
be held in escrow under Sections 6.01.B(2)(e) and 11.11.I).

 

4.06         
Fixed Asset Supplies. Any Fixed Asset Supplies that are necessary to maintain Fixed Asset Supplies at levels determined
by Manager to be necessary to satisfy the needs of each Hotel, as their operation may from time to time require, shall be paid
from Gross Revenues of such Hotel as Deductions. Such additional Fixed Asset Supplies shall remain the property of Tenant throughout
the Term of this Agreement and upon Termination, except for Fixed Asset Supplies purchased by Manager pursuant to Section 11.11.E.

 

ARTICLE
V

 

REPAIRS,
MAINTENANCE AND REPLACEMENTS

 

5.01         
Manager’s Maintenance Obligation. Except as provided in Section 5.02 hereof, and subject to the availability
of sufficient funds in the applicable Reserves, Manager shall maintain the Hotels including all private roadways, sidewalks and
curbs located thereon in good order and repair, reasonable wear and tear excepted (whether or not the need for such repairs occurs
as a result of Tenant’s or Manager’s use, any prior use, the elements or the age of the Hotels, or any portion thereof),
and in conformity with Legal Requirements, System Standards and any Existing CC&Rs or Future CC&Rs (which Future CC&Rs
must be approved in writing by Manager if the same may be reasonably expected to interfere in any material way with the operation
of or financial performance of a Hotel). Except as provided in Section 5.02 hereof, and subject to the availability of sufficient
funds in the applicable Reserve for each Hotel with respect to capital items, and the sufficiency of Gross Revenue and Working
Capital for each Hotel otherwise, in each instance, as applicable, Manager shall promptly make or cause to be made all necessary
and appropriate repairs, replacements, renewals, and additions thereto of every kind and nature, whether interior or exterior,
structural or nonstructural, ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior
to the commencement of the Term (concealed or otherwise). All repairs, renovations, alterations, improvements, renewals, replacements
or additions shall be made in a good, workmanlike manner, consistent with Manager’s and industry standards for like hotels
in like locales, in accordance with all applicable federal, state and local statutes, ordinances, by-laws, codes, rules and regulations
relating to any such work. Subject to the availability of sufficient funds in the applicable Reserve for each Hotel or otherwise
available pursuant to this Agreement, Manager shall not take or omit to take any action, with respect to the Hotel (and not the
System as a whole) the taking or omission of which would materially and adversely impair the value of any Hotel or any part thereof
for its use as a hotel. The cost and expense incurred in connection with Manager’s obligations hereunder shall be paid either
from funds provided by Tenant or Landlord as provided for herein, Gross Revenues, Working Capital or from the Reserves, pursuant
to Sections 5.02 and 5.03 below.

 

    21

     

    

 

5.02         
Repairs and Maintenance to be Paid from Gross Revenues. Manager shall promptly make or cause to be made, such routine
maintenance, repairs and minor alterations as it determines are necessary to comply with Manager’s obligations under Section
5.01. The phrase “routine maintenance, repairs, and minor alterations” as used in this Section 5.02 shall include
only those which are normally expensed under GAAP. The cost of such maintenance, repairs and alterations shall be paid from Gross
Revenues for such Hotel (and not from such Hotel’s Reserves) and shall be treated as a Deduction in determining Operating
Profit for such Hotel.

 

5.03         
Items to be Paid from Reserves.

 

A.               
To the extent funds are in the applicable Reserves for each Hotel or such funds are provided by Tenant or Landlord under
Section 5.07 hereof, Manager shall promptly make or cause to be made, all of the items listed in Section 5.03.B below as are necessary
to comply with Manager’s obligations under Section 5.01 hereof. The cost of such items shall be paid from the applicable
Reserve and not from Gross Revenues of a Hotel.

 

B.               
Manager has established for each Hotel, and currently holds funds in, an interest bearing escrow reserve account (each,
a “Reserve” and collectively, the “Reserves”), which Reserves shall not be comingled with
any other funds except for the Reserves of other Portfolio Properties, in a bank or similar institution designated by Manager
and reasonably acceptable to Tenant and Landlord, to cover the cost of:

 

1.                 
Replacements, renewals and additions related to the FF&E at each Hotel; and

 

2.                 
Subject to Section 5.02 hereof, routine or non-major repairs, renovations, renewals, additions, alterations, improvements
or replacements and maintenance to each Hotel which are normally capitalized (as opposed to expensed) under GAAP, such as exterior
and interior repainting; resurfacing building walls, floors, roofs and parking areas; and replacing folding walls and the like
(but which are not major repairs, alterations, improvements, renewals, replacements, or additions to each Hotel’s structure,
roof, or exterior façade, or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical
transportation systems); and

 

3.                 
Major repairs, renovations, additions, alterations, improvements, renewals or replacements to each Hotel including, without
limitation, with respect to its structure, roof, or exterior façade, and to its mechanical, electrical, heating, ventilating,
air conditioning, plumbing or vertical transportation systems; and

 

4.                 
All lease payments for equipment and other personal property reasonably necessary for the operation of each Hotel; and

 

C.                
Manager shall transfer into the Reserve for each Hotel the amounts as provided on the applicable Addendum. Transfers into
each Reserve shall be made at the time of each interim accounting described in Section 4.01.A hereof. All amounts transferred
to each Reserve shall be deducted from Gross Revenues in determining Operating Profit for the applicable Hotel and shall be deposited
in the Reserve account described in Section 5.03.B.

 

    22

     

    

 

D.               
Manager shall from time to time, with respect to each Hotel, make expenditures for the items described in Sections 5.03.B(1),
(2), (3), and (4), as it deems necessary without the approval of Landlord or Tenant. At the end of each Fiscal Year, any amounts
remaining in the Reserve for a Hotel shall be carried forward to the next Fiscal Year. Proceeds from the sale of FF&E no longer
necessary to the operation of a Hotel shall be added to the Reserve for such Hotel, and shall not be included in Gross Revenue
for such Hotel. The Reserves will be kept in interest-bearing accounts, and any interest which accrues thereon shall be retained
in such Reserve. Neither (1) proceeds from the disposition of FF&E, nor (2) interest which accrues on amounts held
in the Reserves, shall (a) result in any reduction in the required contributions to the Reserves set forth in Section 5.03.C
above, nor (b) be included in Gross Revenues.

 

5.04         
Reserve Estimates. Manager shall prepare and deliver to Tenant and Landlord for their review, at the same time the
Annual Operating Projection is submitted, an estimate for each Hotel (each, a “Reserve Estimate”) of the Reserve
expenditures necessary during the forthcoming Fiscal Year for (1) replacements, renewals, and additions to the FF&E of
such Hotel and (2) repairs, renovations, additions, alterations, improvements, renewals or replacements to such Hotel of
the nature described in Section 5.03.B, for the forthcoming Fiscal Year. Manager agrees to take reasonable steps to ensure that,
at Tenant’s or Landlord’s request, qualified personnel from Manager’s staff are available to explain each proposed
Reserve Estimate with respect to expenditures described in Section 5.03.B(3). A meeting (or meetings) for such purpose shall be
held, at Tenant’s or Landlord’s request, within a reasonable period of time after the submission to Tenant or Landlord
of the applicable Reserve Estimate. Any disputes as to items in each Reserve Estimate for expenditures described in Section 5.03.B(3)
shall be resolved as set forth in Sections 5.07.C and 5.07.D hereof. Such expenditures shall be funded from the applicable Reserve
to the extent funds are available therefor or from funds provided under Section 5.07 hereof.

 

5.05         
Additional Requirements for Reserves.

 

A.               
All expenditures from the Reserves shall be (as to both the amount of each such expenditure and the timing thereof) both
reasonable and necessary given the objective that the Hotels will be maintained and operated to a standard comparable to competitive
properties and in accordance with the System Standards.

 

B.                
Manager shall provide to Tenant and Landlord within forty (40) Business Days after the end of each Accounting Period, a
statement setting forth, on a line item basis, Reserve expenditures made to date and any variances or anticipated variances and/or
amendments from the applicable Reserve Estimate.

 

C.                
Notwithstanding anything contained herein to the contrary, it is understood and agreed that so long as the Pooling Agreement
is applicable to the Hotels, the Reserves pursuant to this Agreement and the Other Management Agreements to which the Pooling
Agreement is then applicable shall be maintained and used on a pooled basis such that all Reserve funds shall be deposited in
a single account and Manager and the managers under the Other Management Agreements may apply any funds therein to any of the
Portfolio Properties in accordance with the terms of this Agreement, the Other Management Agreements, and the Pooling Agreement.

 

    23

     

    

 

D.               
Other than Tenant’s or Manager’s personal property, all materials which are scrapped or removed in connection
with the making of any major or non-major repairs, renovation, additions, alterations, improvements, removals or replacements
as described in Section 5.03.B above, or Section 5.08 below should be disposed of by Manager and the net proceeds thereof shall
be deposited in the applicable Reserve and not included in Gross Revenue.

 

5.06         
Ownership of Replacements. All repairs, renovations, additions, alterations, improvements, renewals or replacements
made pursuant to this Article V, and all amounts kept in the Reserves, shall, except as otherwise provided in this Agreement,
be the property of Tenant or Landlord, as applicable, as provided under the Lease.

 

5.07         
Obligation to Provide Additional Reserve Funds.

 

A.               
Notwithstanding anything contained herein to the contrary, no expenditures in excess of the applicable Reserves shall be
made without the approval of Tenant during the last two (2) years of a Lease Term (unless Tenant has exercised its rights for
a renewal term under the Lease) except those required by reason of or under any Insurance Requirement or Legal Requirement, or
otherwise required for the continued safe and orderly operation of each Hotel.

 

B.                
If, at any time, the funds in any Reserve shall be insufficient or are reasonably projected to be insufficient for necessary
and permitted expenditures thereof, Manager shall give Landlord and Tenant written notice thereof, which notice shall set forth,
in reasonable detail, the nature of the required or permitted action, the estimated cost thereof (including the amount which is
in excess of the amount of funds in such Reserve) and such other information with respect thereto as Landlord or Tenant may reasonably
require, and the following shall apply: Provided that (1) there then exists no Manager Default that has a material adverse effect
on Tenant and which arises from acts or failures to act by Manager with respect to such Hotel, and (2) Manager shall comply with
the provisions of Section 5.08 hereof, if applicable, Tenant shall, within thirty (30) Business Days after such notice, or such
later date as Manager may direct by reasonable prior notice, disburse (or cause Landlord to disburse) such required funds to Manager
for deposit into the Reserves as one or more lump sum contributions, in which event Tenant’s Priority with respect to such
Hotel shall be adjusted as provided for herein in the definition of Tenant’s Priority and the Addendum for such Hotel shall
be revised in accordance therewith.

 

C.                
If Landlord or Tenant disputes Manager’s request for a lump sum contribution to a Reserve, Manager shall attempt
to resolve such dispute through negotiation. If after one meeting (or conference call) of direct negotiations between Manager
and Landlord or Tenant, as applicable, any party determines that open issues cannot be resolved within sixty (60) days, such matters
shall be settled by the Expert in accordance with Section 11.23.B. Tenant and Landlord shall, to the extent possible, identify
items in dispute on a line by line basis.

 

    24

     

    

 

D.               
A failure or refusal by Landlord or Tenant to provide the additional funds required in accordance with Section 5.07.B above
within the time period set forth in Section 5.07.B (including after any Expert resolution pursuant to Section 11.23.B, if applicable)
shall entitle Manager, at its option, to notify Landlord and Tenant in writing that Manager may terminate this Agreement with
respect to the applicable Hotel. If Tenant does not deposit in such Reserve the additional funds required in accordance with Section
5.07.B within thirty (30) days after receipt of such notice of intent to terminate, Manager may, in its sole and absolute discretion,
(i) elect to terminate this Agreement with respect to the applicable Hotel by written notice to Tenant and this Agreement shall
terminate with respect to such Hotel as of the date that is one hundred eighty (180) days after the date of Tenant’s receipt
of Manager’s termination notice, and which Termination shall otherwise be in accordance with the provisions of Section 11.11
hereof (an “FF&E Termination”), or (ii) exercise any remedy available at law or in equity (except
as specifically limited herein). If Manager elects to effect an FF&E Termination,
then, at Manager’s election and direction, Tenant shall enter into a franchise agreement with Marriott for such applicable
Hotel (such an event, a “Franchise Conversion”), and Tenant shall satisfy the requirements set forth
on Exhibit C. Notwithstanding the foregoing, Manager may advance the needed Reserve funds if (1) such funds are
required in order for the Hotel to comply with System Standards related to the health or safety of persons or property on or about
such Hotel; (2) such funds are required by reason of or under any Insurance Requirement or Legal Requirement, or otherwise
required for the continued safe and orderly operation of such Hotel; (3) there is an emergency threatening such Hotel or
the life or property of such Hotel’s guests; or (4) the failure to take remedial action may subject Manager, Landlord,
Tenant, their Affiliates or any of their respective directors, managers, officers or employees to civil or criminal liability
(other than de minimis civil fines or fees) (in each case, the “Emergency Funding”). Tenant agrees and authorizes
Manager to reimburse Manager for such Emergency Funding from future Reserves of such Hotel, unless Manager elects to treat such
Emergency Funding as an Additional Manager Advance with respect to the Hotel.

 

5.08         
Additional Requirements Relating to Certain Capital Improvements.

 

A.               
Prior to commencing construction of any additions or modifications to any structural element of any Hotel, the cost of
which is reasonably estimated to exceed $300,000, as adjusted as provided below (other than Renovations made pursuant to the Renovation-Related
Agreements) (a “Capital Addition”) (other than any Capital Addition which is reasonably required to be made
immediately in order to prevent imminent damage or danger to person or property or to subject Manager, Tenant or Landlord to criminal
liability), Manager shall submit, to Tenant and Landlord in writing, a proposal setting forth, in reasonable detail, any such
proposed improvement and cost estimate therefor and shall provide to Tenant and to Landlord such plans and specifications, and
such permits, licenses, contracts and such other information concerning the same as Landlord or Tenant may reasonably request.
Landlord and Tenant shall have twenty (20) Business Days to approve or disapprove all materials submitted to Landlord or Tenant,
as the case may be, in connection with any such proposal. Failure of Landlord or Tenant to respond to Manager’s proposal
within twenty (20) Business Days after receipt of all information and materials requested by Landlord or Tenant (if applicable)
in connection with the proposed improvement shall be deemed to constitute approval of the same by the failing party.

 

B.                
In the event any dispute shall arise with respect to the withholding of any approval by either Landlord or Tenant, Manager
shall meet with Landlord and Tenant to discuss the objections of Landlord or Tenant, and Manager, Landlord and Tenant shall attempt
in good faith to resolve any disagreement relating to the proposal submitted by Manager. If after sixty (60) days such disagreement
has not been resolved, any party may submit the issue to the Expert in accordance with Section 11.23.B. No Capital Addition shall
be made which would tie-in or connect a Hotel with any other improvements on property adjacent to such Hotel (and not part of
the Site) including, without limitation, tie-ins of buildings or other structures or utilities (other than connections to public
utilities). Manager shall not finance the cost of any construction of such improvements by the granting of a lien on, or security
interest in, such Hotel or Manager’s interest therein without the prior written consent of Landlord, which consent may be
in Landlord’s sole discretion.

 

    25

     

    

 

C.                
The $300,000 limit referred to above shall be increased from time to time to an amount equal to $300,000 multiplied by
a fraction, the denominator of which shall be the Index for the nearest month prior to the Effective Date and the numerator of
which shall be the Index for the nearest month for which the Index is available prior to the first day of the Accounting Period
in which such determination is being made.

 

D.               
Landlord and Tenant may not withhold their approval of any Capital Addition described in this Section 5.08 if (1) such
Capital Addition is required in order for the Hotels to comply with System Standards; (2) such Capital Addition is required
by reason of or under any Insurance Requirement or Legal Requirement, or otherwise required for the continued safe and orderly
operation of each Hotel; (3) such Capital Addition is required by reason of an emergency threatening the Hotel or the life
or property of Hotel guests; or (4) the failure to take remedial action may subject Manager, Landlord, Tenant, their Affiliates
or any of their respective directors, managers, officers or employees to civil or criminal liability (other than de minimis civil
fines or fees). If Manager takes such action, then it will promptly notify Tenant.

 

ARTICLE
VI

 

INSURANCE,
DAMAGE AND CONDEMNATION

 

6.01         
Insurance. Tenant and Manager will comply with their respective obligations under the insurance provisions in Exhibit D.
Tenant and Manager hereby agree that, as of the Effective Date, Manager will procure and maintain property insurance for the Hotels
pursuant to Section 6.01.A of Exhibit D; provided; however, that Tenant may elect to procure and maintain such property
insurance subject to and in accordance with the provisions of Section 6.01.A of Exhibit D.

 

6.02         
Damage and Repair.

 

A.               
If, during the Term with respect to any Hotel, such Hotel shall be totally or partially destroyed and the Hotel is thereby
rendered Unsuitable for Its Permitted Use, (1) Manager may terminate this Agreement with respect to such Hotel by sixty (60)
days’ written notice to Tenant and Landlord (which Termination shall not be deemed due to a Manager Default), or (2) if
the Lease has been terminated as a result of such casualty, Tenant may terminate this Agreement with respect to such Hotel by
written notice to Manager and Landlord, whereupon, this Agreement and the Lease, with respect to such Hotel, shall terminate and
Landlord shall be entitled to retain the insurance proceeds payable on account of such damage.

  

    26

     

    

 

B.            If,
during the Term with respect to any Hotel, such Hotel is damaged or destroyed by fire, casualty or other cause but is not rendered
Unsuitable for Its Permitted Use and the Lease is not terminated in accordance with its terms with respect to such Hotel, subject
to Sections 6.02.C and 6.02.D below, and provided there then exists no Manager Default which arises from acts or failures to act
by Manager with respect to such Hotel, then Tenant shall forward to Manager the funds necessary to repair or replace the damaged
or destroyed portion of the Hotel to the same condition as existed previously and Manager shall have the right to discontinue
operating the Hotel to the extent it deems necessary to comply with applicable law, ordinance, regulation or order or as necessary
for the safe and orderly operation of the Hotel.

 

C.           1.
            If the cost of the repair or restoration of a Hotel is less
than the sum of the deductible plus the amount of insurance proceeds received by Landlord or Tenant, Tenant shall be required
to make available the funds necessary (minus the amount of such deductible) to cause such Hotel to be repaired and restored to
the extent of such insurance proceeds. The amount of such deductible shall be funded first from the Reserve for the applicable
Hotel, and to the extent such Reserve is insufficient therefor, the balance shall be funded by Tenant, and any such funding by
Tenant shall result in an adjustment to Tenant’s Priority with respect to such Hotel as if Tenant had made a lump sum deposit
into the Reserve for such Hotel, in the manner set forth in the definition of Tenant’s Priority, and the Addendum applicable
to such Hotel shall be revised in accordance therewith.

 

               2.           If
the cost of the repair or restoration of such Hotel exceeds the amount of insurance proceeds received by Landlord, plus the deductible
amount, Manager shall give notice to Tenant and Landlord setting forth in reasonable detail the nature of such deficiency, and
Tenant shall promptly thereafter advise Manager in writing whether Tenant shall pay and assume the amount of such deficiency (Tenant
having no obligation to do so, except that, if Tenant shall elect to make such funds available, the same shall become an irrevocable
obligation of Tenant). In the event Tenant shall elect not to pay and assume the amount of such deficiency, Landlord shall have
the right (but not the obligation), exercisable at Landlord’s sole election by written notice to Tenant and Manager, given
within sixty (60) days after Manager’s notice of the deficiency, to elect to make available for application to the cost
of repair or restoration the amount of such deficiency. In the event that neither Landlord nor Tenant shall elect to make such
deficiency available for restoration, (a) Manager may effect Termination of this Agreement with respect to such Hotel by
written notice to Tenant and Landlord (which Termination shall not be deemed due to a Manager Default), or (b) if the Lease
has been terminated with respect to such Hotel as a result of such casualty, Tenant may effect a Termination of this Agreement
with respect to such Hotel by written notice to Manager and Landlord, whereupon, this Agreement shall terminate with respect to
such Hotel as provided in Section 6.02.A.

 

    27

     

    

 

D.            In
the event Tenant is required to make available the funds necessary to restore a Hotel, Tenant shall promptly do so and such
funds shall be used to perform the repair and restoration of such Hotel, so as to restore such Hotel in compliance with all
Legal Requirements and so that such Hotel shall be, to the extent practicable, substantially equivalent in value and general
utility to its general utility and value immediately prior to such damage or destruction and in compliance with System
Standards. Manager shall, at Tenant’s request, provide general supervisory services with respect to completion of such
work as part of the services provided hereunder in consideration of the management fees paid to Manager; however, Manager
shall not be obligated to provide additional secure services unless Tenant and Manager enter into separate arrangements to
provide such services and for stated additional consideration. Subject to the terms of the Lease, Landlord shall advance the
insurance proceeds and any additional amounts payable by Landlord pursuant to this Section 6.02.D to Tenant regularly during
the repair and restoration period so as to permit payment for the cost of any such restoration and repair. Any such advances
shall be made not more than monthly within ten (10) Business Days after Tenant submits to Landlord a written requisition and
substantiation therefor on AIA Forms G702 and G703 (or on such other form or forms as may be reasonably acceptable to
Landlord). Landlord may, at its option, condition advancement of said insurance proceeds and other amounts on (i) the
absence of an Event of Default (as defined in the Lease), (ii) its approval of plans and specifications of an architect
satisfactory to Landlord (which approval shall not be unreasonably withheld or delayed), (iii) general
contractors’ estimates, (iv) architect’s certificates, (v) unconditional lien waivers of general
contractors, if available, (vi) evidence of approval by all governmental authorities and other regulatory bodies whose
approval is required and (vii) such other certificates as Landlord may, from time to time, reasonably require.

 

E.            If
this Agreement is not otherwise terminated with respect to a totally or partially destroyed Hotel as permitted herein, and Landlord
and/or Tenant makes funds available to repair and restore any such Hotel, then, except for deductibles which are addressed in
Section 6.02.C above, any reserves, losses, costs or expenses which are uninsured or are not otherwise self-insured because the
same are not required to be insured or self-insured hereunder (as applicable, the “Uninsured Costs”), shall
be accounted for in accordance with the following sentence. Effective as of the first day of the Accounting Period immediately
following the completion of the repair or restoration of the Hotel (or, if the Hotel, or any portion thereof, was closed as a
result of the damage or destruction, then as of the first day of the Accounting Period immediately following the date the Hotel,
or such portion thereof, is reopened), the Tenant’s Priority with respect to such Hotel shall be the greater of (i) the
Tenant’s Priority for such Hotel as of the day immediately preceding any such damage or destruction, or (ii) eight
percent (8%) multiplied by the total cost (including any Uninsured Costs) to repair and restore the Hotel in accordance with the
terms of this Agreement.

 

F.            All
business interruption insurance proceeds shall be paid to Manager and included in Gross Revenues. Any casualty which does not
result in a Termination of this Agreement with respect to the applicable Hotel shall not excuse the payment of sums due to Tenant
hereunder with respect to such Hotel.

 

G.           Manager
hereby waives any statutory rights of termination which may arise by reason of any damage to or destruction of any Hotel.

 

6.03         Damage
Near End of Term. Notwithstanding any provisions of Section 6.01, Section 6.02 or Exhibit D hereof to the contrary,
if damage to or destruction of any Hotel occurs during the last twelve (12) months of the Term (including any exercised Renewal
Term) and if such damage or destruction cannot reasonably be expected to be fully repaired and restored prior to the date that
is nine (9) months prior to the end of such Term (including any exercised Renewal Term), then the provisions of Section 6.02.A
shall apply as if such Hotel had been totally or partially destroyed and such Hotel operated thereon rendered Unsuitable for Its
Permitted Use.

 

    28

     

    

 

6.04         Condemnation.
If either (i) the whole of a Hotel shall be taken by Condemnation, or (ii) a Condemnation of less than the whole of
a Hotel renders such Hotel Unsuitable for Its Permitted Use, then this Agreement shall terminate and Tenant and Landlord shall
seek the Award for their interests in such Hotel as provided in the Lease. In addition, Manager shall have the right to initiate
such proceedings as it deems advisable to recover any damages to which Manager may be entitled; provided, however,
that Manager shall be entitled to retain the award or compensation it may obtain through such proceedings which are conducted
separately from those of Tenant and Landlord only if such award or compensation does not reduce the award or compensation otherwise
available to Tenant and Landlord. For this purpose, any award or compensation received by any holder of a Mortgage on a Hotel
shall be deemed to be an award of compensation received by Landlord.

 

6.05         Partial
Condemnation. In the event of a Condemnation of less than the whole of a Hotel such that such Hotel is not rendered Unsuitable
for Its Permitted Use, Manager shall, to the extent of the Award and any additional amounts disbursed by Tenant or Landlord as
hereinafter provided, commence promptly and continue diligently to restore the untaken portion of such Hotel so that such Hotel
shall constitute a complete architectural unit of the same general character and condition (as nearly as may be possible under
the circumstances) as the Hotel located thereon existing immediately prior to such Condemnation, in full compliance with all Legal
Requirements, subject to the provisions of this Section 6.05. Manager shall, at Tenant’s request, provide general supervisory
services with respect to completion of such work as part of the services provided hereunder in consideration of the management
fees paid to Manager, however, Manager shall not be obligated to provide additional services unless Tenant and Manager enter into
separate arrangements to provide such services and for stated additional consideration. If the cost of the repair or restoration
of the Hotel exceeds the amount of the Award, then Manager shall give Landlord and Tenant written notice thereof, which notice
shall set forth in reasonable detail the nature of such deficiency, and Tenant shall promptly thereafter advise Manager in writing
whether Tenant will pay and assume the amount of such deficiency (Tenant having no obligation to do so, except that if Tenant
shall elect to make such funds available, the same shall become an irrevocable obligation of Tenant pursuant to this Agreement).
In the event Tenant shall elect not to pay and assume the amount of such deficiency, Landlord shall have the right (but not the
obligation), exercisable at Landlord’s sole election by notice to Tenant and Manager given within sixty (60) days after
Tenant’s notice of the deficiency, to elect to make available for application to the cost of repair or restoration the amount
of such deficiency. In the event neither Landlord nor Tenant shall elect to make such deficiency available for restoration, either
Manager or Tenant may terminate this Agreement with respect to such Hotel.

 

6.06         Disbursement
of Award. Subject to the terms hereof, Tenant or Landlord, as applicable, shall contribute to the cost of restoration
that part of the Award necessary to complete such repair or restoration, together with severance and other damages awarded
for such Hotel and any deficiency Tenant or Landlord, as applicable, has agreed to disburse, to Manager regularly during the
restoration period so as to permit payment for the cost of such repair or restoration. Landlord may, at its option, condition
advancement of such Award and other amounts on (i) the absence of any Manager Event of Default, (ii) its approval
of plans and specifications of an architect satisfactory to Landlord (which approval shall not be unreasonably withheld or
delayed), (iii) general contractors’ estimates, (iv) architect’s certificates, (v) unconditional
lien waivers of general contractors, if available, (vi) evidence of approval by all governmental authorities and other
regulatory bodies whose approval is required, and (vii) such other certificates as Landlord may, from time to time,
reasonably require. Landlord’s and Tenant’s obligation under this Section 6.06 to disburse the Award and such
other amounts shall be subject to (x) the collection thereof by Landlord and (y) the satisfaction of any applicable
requirements of any Qualified Mortgage, and the release of such Award by the applicable Mortgagee. Tenant’s obligation
to restore the applicable Hotel shall be subject to the release of the Award to Landlord by the applicable Mortgagee under a
Qualified Mortgage.

 

    29

     

    

 

6.07        Temporary
Condemnation. In the event of any temporary Condemnation of a Hotel or Tenant’s interest therein, this Agreement shall
continue in full force and effect. The entire amount of any Award made for such temporary Condemnation allocable to the Term,
whether paid by way of damages, rent or otherwise, shall be paid to Manager and shall constitute Gross Revenues. Tenant shall,
promptly upon the termination of any such period of temporary Condemnation, at its sole cost and expense, restore such Hotel to
the condition that existed immediately prior to such Condemnation, in full compliance with all Legal Requirements, unless such
period of temporary Condemnation shall extend beyond the expiration of the Term, in which event Tenant shall not be required to
make such restoration. For purposes of this Section 6.07, a Condemnation shall be deemed to be temporary if the period of such
Condemnation is not expected to, and does not, exceed twelve (12) months.

 

6.08        Allocation
of Award. Except as provided in Sections 6.06 and 6.07 and the second and third sentences of this Section 6.08, the total
Award shall be solely the property of and payable to Landlord. Any portion of the Award made for the taking of Tenant’s
leasehold interest in a Hotel, loss of business, the taking of Tenant’s Personal Property, or Tenant’s removal and
relocation expenses shall be the sole property of, and payable to, Tenant. Any portion of the Award made for the taking of Manager’s
interest in a Hotel or Manager’s loss of business during the remainder of the Term hereof shall be the sole property of,
and payable to, Manager, subject to the provisions of Section 6.04 hereof. In any Condemnation proceedings, Landlord, Tenant,
and Manager shall each seek its own Award in conformity herewith, at its own expense.

 

6.09         Effect
of Condemnation. Any condemnation which does not result in a Termination of this Agreement in accordance with its terms with
respect to the applicable Hotel shall not excuse the payment of sums due to Tenant hereunder with respect to such Hotel and this
Agreement shall remain in full force and effect.

 

ARTICLE VII

 

TAXES; OTHER CHARGES

 

7.01        Real
Estate and Personal Property Taxes.

 

A.           Subject
to Section 11.24 relating to permitted contests, Manager shall pay, from Gross Revenues for each Hotel, all Impositions with
respect to such Hotel, before any fine, penalty, interest or cost (other than any opportunity cost as a result of a failure
to take advantage of any discount for early payment) may be added for non-payment, such payments to be made directly to the
taxing authorities where feasible, and shall promptly, upon request, furnish to Landlord and Tenant copies of official
receipts or other reasonably satisfactory proof evidencing such payments. Any such payments shall be a Deduction in
determining Operating Profit for such Hotel. If any such Imposition may, at the option of the taxpayer, lawfully be paid in
installments (whether or not interest shall accrue on the unpaid balance of such Imposition), Manager may exercise the option
to pay the same (and any accrued interest on the unpaid balance of such Imposition) in installments and, in such event, shall
pay such installments during the Term as the same become due and before any fine, penalty, premium, further interest or cost
may be added thereto. Manager shall, upon request, provide such data as is maintained by Manager with respect to any Hotel as
may be necessary to prepare any required returns and reports by Landlord or Tenant.

 

    30

     

    

 

Tenant shall give,
and will use reasonable efforts to cause Landlord to give, copies of official tax bills and assessments which it may receive with
respect to any Hotel and prompt notice to Tenant and Manager of all Impositions payable by Tenant under the Lease of which Tenant
or Landlord, as the case may be, at any time has knowledge; provided, however, that Landlord’s or Tenant’s
failure to give any such notice shall in no way diminish Manager’s obligation hereunder to pay such Impositions (except that
Landlord or Tenant, as applicable, shall be responsible for any interest or penalties incurred as a result of Landlord’s
or Tenant’s, as applicable, failure promptly to forward the same).

 

B.            The
word “Impositions” as used in this Agreement shall include, but not be limited to, franchise taxes under the
laws of the State(s) and gross receipt or general excise taxes or sales taxes payable on (i) Rent payable to Landlord, (ii) all
sums payable to Tenant pursuant to this Agreement (or the Pooling Agreement with respect to Hotels to which the Pooling Agreement
is applicable), and (iii) all sums payable to Manager pursuant to this Agreement as System Fees or Management Fees (or pursuant
to the Pooling Agreement with respect to Hotels to which the Pooling Agreement is applicable), if any, but shall not include the
following, all of which shall be paid from the applicable Reserve, and not from Gross Revenues:

 

1.           Special
assessments (regardless of when due or whether they are paid as a lump sum or in installments over time) imposed because of facilities
which are constructed by or on behalf of the assessing jurisdiction (for example, roads, sidewalks, sewers, culverts, etc.) which
directly benefit a Hotel (regardless of whether or not they also benefit other buildings), which assessments shall be treated
as capital costs of construction and not as Deductions; and

 

2.           “Impact
Fees” (regardless of when due or whether they are paid as a lump sum or in installments over time) which are required as
a condition to the issuance of site plan approval, zoning variances or building permits, which impact fees shall be treated as
capital costs of construction and not as Deductions.

 

C.            Notwithstanding
anything herein to the contrary, each of Tenant and Manager shall pay from its own funds (and not from Gross Revenues of any Hotel
or any Reserve) any franchise, corporate, estate, inheritance, succession, capital levy or transfer tax imposed on Tenant or Manager,
as applicable, or any income tax imposed (but not gross receipt or general excise taxes) on any income of Tenant or Manager (including
distributions to Tenant pursuant to Article III hereof).

 

    31

     

    

 

D.            Manager shall cause to be paid, with respect to each Hotel, when due, from Gross Revenues, as Deductions, for such Hotel,
to the extent of the sufficiency of funds available therefore:

 

1.           Utility
Charges — all charges for electricity, power, gas, oil, water and other utilities used in connection with each Hotel.

 

2.           Insurance Premiums — all premiums for the insurance coverage required to be maintained pursuant to Section 6.01 and
Exhibit D hereof.

 

3.           Other Charges — all other amounts, liabilities and obligations arising in connection with the operation of each Hotel
except those obligations expressly assumed by Landlord or Tenant pursuant to the provisions of this Agreement or any of the Incidental
Documents or expressly stated not to be paid from Gross Revenues of a Hotel pursuant to this Agreement.

 

ARTICLE VIII

 

OWNERSHIP OF THE HOTELS

 

8.01        Ownership
of the Hotels.

 

A.           Tenant
hereby covenants that it will not hereafter impose or consent to the imposition of any liens, encumbrances or other charges, except
as follows:

 

1.           easements
or other encumbrances that do not adversely affect the operation of a Hotel by Manager and that are not prohibited pursuant to
Section 8.04 of this Agreement;

 

2.           mortgages which constitute Qualified Mortgages and related security instruments;

 

3.           liens for taxes, assessments, levies or other public charges not yet due or due but not yet payable; or

 

4.           equipment leases for office equipment, telephone, motor vehicles and other property approved by Manager.

 

B.            Subject to liens permitted by Section 8.01.A hereof and further subject to liens permitted to be placed by Landlord pursuant
to the Owner Agreement, Tenant covenants that, so long as there then exists no Manager Default which arises from acts or failures
to act by Manager with respect to each Hotel, Manager shall quietly hold, occupy and enjoy such Hotel throughout the Term hereof
free from hindrance, ejection or molestation by Tenant or Landlord or other party claiming under, through or by right of Tenant
or Landlord. Tenant agrees to pay and discharge any payments and charges and, at its expense, to prosecute all appropriate actions,
judicial or otherwise, necessary to assure such free and quiet occupation as set forth in the preceding sentence. Tenant will reasonably
cooperate with Manager and its Affiliates in connection with Manager’s operation of the Hotels.

 

    32

     

    

 

C.            Tenant
will make all payments under any Mortgage by the due date from its own funds and not as Deductions. Manager has no responsibility
for payment of debt service.

 

8.02         Requirements for Mortgages.

 

 

A.           Tenant
and/or Landlord may encumber a Hotel individually, or with one or more other Portfolio Properties, with any Mortgage that meets
all of the following requirements (each, a “Qualified Mortgage”):

 

1.           the
proposed Mortgage is from an Institutional Lender and is on commercially reasonable terms;

 

2.           for
Mortgages other than for the initial construction of a Hotel, the outstanding aggregate principal amount secured by all Mortgages,
including the proposed Mortgage, is seventy percent (70%) or less of the fair market value of the Portfolio Properties subject
to the proposed Mortgage measured as of the Finance Date;

 

3.           the ratio, as of the Finance Date, of (a) aggregate Operating Profit for the twelve (12) full Accounting Periods immediately
before the Finance Date to (b) debt service for the same period for all Mortgages encumbering the Portfolio Properties that
are subject to the proposed Mortgage, including the proposed Mortgage, equals or exceeds 1.4 to 1; and

 

4.           Mortgagee and Manager enter into an SNDA.

 

B.            Manager may provide information about a Hotel to any Mortgagee, or to any Affiliate of Manager that provides any financing
in connection with such Hotel, that such Mortgagee or such Affiliate reasonably requests. Upon Manager’s request, Tenant
will promptly provide drafts, and the executed term sheets and loan documents for all Mortgages encumbering the Hotels.

 

C.           
If any action taken by a Mortgagee materially and adversely restricts Manager from operating a Hotel in accordance with
the System Standards, then (i) such action will constitute a Tenant Default; and (ii) Manager may terminate this Agreement
with respect to such Hotel upon at least sixty (60) days’ prior written notice to Tenant without affecting Manager’s
other rights and remedies under this Agreement.

 

D.            If title to or possession of a Hotel is transferred by judicial or administrative process (for example, by Foreclosure or
bankruptcy proceedings) to a Person that does not meet the requirements in Section 10.02.A, then Manager may terminate this Agreement
with respect to such Hotel upon at least sixty (60) days’ prior written notice to Tenant without affecting Manager’s
other rights and remedies under this Agreement.

 

 

8.03         Subordination
and Non-Disturbance Agreement.

 

A.           Tenant
will obtain from any Mortgagee that holds a Mortgage as of or after the Effective Date an agreement, reasonably satisfactory to
Manager and recordable in the jurisdiction where each Hotel is located (the “SNDA”), which provides that:

 

    33

     

    

 

1.           the
right, title and interest of Manager in and to such Hotel under this Agreement will be subject and subordinate to the lien of
the Mortgage;

 

2.           if
there is a Foreclosure under the Mortgage, then Manager will not be named as a party in any Foreclosure, and so long as no Manager
Event of Default (beyond the applicable notice and cure period, if any) has occurred thereunder which entitles Tenant to terminate
this Agreement with respect to such Hotel, (a) this Agreement will not terminate by reason of such Foreclosure, (b) Mortgagee
and any Subsequent Tenant will recognize the rights of Manager under this Agreement, and (c) Manager’s rights to operate
such Hotel under this Agreement will not be disturbed; and

 

3.           if
there is a Foreclosure under the Mortgage, then Manager will be obligated to each Subsequent Tenant to perform under the terms
of this Agreement with the same force and effect as if the Subsequent Tenant were the Tenant, for as long as the Subsequent Tenant
meets the requirements of Section 10.02.A.

 

B.            If
the SNDA requires Manager to pay amounts otherwise due to Tenant under this Agreement directly to Mortgagee or its designee, rather
than to Tenant, then Tenant hereby irrevocably consents to such payment.

 

C.            If
Tenant does not obtain an SNDA for any Mortgage, then Manager may terminate this Agreement upon at least sixty (60) days’
prior written notice to Tenant without affecting Manager’s other rights and remedies under this Agreement.

 

8.04         No Covenants, Conditions or Restrictions.

 

A.           Tenant
represents and warrants that, with respect to each Hotel and as of the Effective Date, there are not, and covenants that during
the Term of this Agreement Tenant shall not enter into (unless Manager has given its prior written consent thereto, which consent
shall not be unreasonably withheld, conditioned or delayed), any covenants, conditions or restrictions, including reciprocal easement
agreements, common area assessments or cost-sharing arrangements (collectively referred to as “Future CC&Rs”)
affecting any Site or Hotel that would (i) prohibit or limit Manager from operating such Hotel in accordance with System Standards,
including related amenities of such Hotel; (ii) allow such Hotel facilities (for example, parking spaces) to be used by persons
other than guests, invitees or employees of such Hotel; (iii) allow the Hotel facilities to be used for specified charges or rates
that have not been approved by Manager; or (iv) subject the Hotel to exclusive arrangements regarding food and beverage operation,
retail merchandise or any other operations or part of the Hotel. With respect to each Hotel, Manager hereby consents to (a) any
easements, covenants, conditions or restrictions, including without limitation any reciprocal easement agreements or cost-sharing
agreements, existing as of the date Landlord acquired title to such Hotel, and (b) any of the foregoing items with respect to
such Hotel existing as of the Effective Date and of which Manager has knowledge (all of the foregoing, collectively, the “Existing
CC&Rs”).

 

B.            All
financial obligations imposed on Tenant or on a Hotel pursuant to any Future CC&Rs for which Manager’s consent is
required under Section 8.04.A above shall be paid by Tenant from its own funds, and not from Gross Revenues of a Hotel or
from the Reserve of a Hotel, unless Manager has given its prior written consent to such Future CC&Rs as required under
Section 8.04.A.

 

    34

     

    

 

C.           Manager
shall manage, operate, maintain and repair each Hotel in compliance with all obligations imposed on Tenant, Landlord or such Hotel
pursuant to any Existing CC&Rs or Future CC&Rs (unless Manager’s consent is required for such Future CC&Rs and
Manager does not consent to such Future CC&Rs) to the extent such Existing CC&Rs and Future CC&Rs relate to the management,
operation, maintenance and repair of such Hotel.

 

8.05         Liens;
Credit. Manager and Tenant shall use commercially reasonable efforts to prevent any liens from being filed against any Hotel
which arise from any maintenance, repairs, alterations, improvements, renewals or replacements in or to such Hotels. Manager and
Tenant shall cooperate, and Tenant shall cause the Landlord to cooperate, fully in obtaining the release of any such liens, and
the cost thereof, if the lien was not occasioned by the fault of a party, shall be treated the same as the cost of the matter
to which it relates. If the lien arises as a result of the fault of a party, then the party at fault shall bear the cost of obtaining
the lien release. In no event shall any party borrow money in the name of, or pledge the credit of, any other party. Manager shall
not allow any lien to exist with respect to its interest in this Agreement.

 

Subject to the right
to contest matters set forth in Section 11.24 hereof and for encumbrances permitted under Section 8.01 hereof, Manager shall not,
to the extent funds to pay the same are provided on a timely basis as required hereunder, directly or indirectly, create or allow
to remain and shall promptly discharge any lien, encumbrance, attachment, title retention agreement or claim upon any Hotel, except
(a) existing liens for those taxes of Landlord which Manager is not required to pay hereunder, (b) liens for Impositions
or for sums resulting from noncompliance with Legal Requirements so long as (i) the same are not yet due and payable, or (ii) are
being contested in accordance with Section 11.24, (c) liens of mechanics, laborers, materialmen, suppliers or vendors incurred
in the ordinary course of business that are not yet due and payable or are for sums that are being contested in accordance with
Section 11.24 and (d) any Mortgages or other liens which are the responsibility of Landlord.

 

ARTICLE IX

 

DEFAULTS

 

9.01         Manager
Events of Default. Each of the following shall constitute a “Manager Event of Default” to the extent permitted
by applicable law:

 

A.           The
filing by Manager or Marriott of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy
law, or the admission by Manager that it is unable to pay its debts as they become due, or the institution of any proceeding by
Manager for its dissolution or termination. Upon the occurrence of any Manager Event of Default as described under this Section
9.01.A, said Manager Event of Default shall be deemed a “Manager Default” under this Agreement.

 

B.            The
consent by Manager or Marriott to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days
from the date of entry thereof, any order approving an involuntary petition by Manager. Upon the occurrence of any Manager
Event of Default as described under this Section 9.01.B, said Manager Event of Default shall be deemed a “Manager
Default” under this Agreement.

 

    35

     

    

 

C.            The
entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor, adjudicating
Manager or Marriott as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee,
or liquidator of all or a substantial part of Manager’s or Marriott’s assets, and such order, judgment or decree’s
continuing unstayed and in effect for an aggregate of sixty (60)
days (whether or not consecutive). Upon the occurrence of any Manager Event of Default as described under this Section 9.01.C,
said Manager Event of Default shall be deemed a “Manager Default” under this Agreement.

 

D.           The
failure of Marriott or Manager or any Affiliate of either of them to make any payment required to be made by any of them in accordance
with the terms of this Agreement, or any Incidental Document on or before the date due. Upon the occurrence of any Manager Event
of Default as described under this Section 9.01.D, said Manager Event of Default shall be deemed a “Manager Default”
under this Agreement if Marriott or Manager or such Affiliate fails to cure such Manager Event of Default (1) within any
applicable notice and cure period, if any, provided in the document pursuant to which such payment is to be made, or (2) otherwise,
eight (8) days after receipt of written notice from the other party to such document demanding such cure.

 

E.            The
failure of Marriott or Manager or any Affiliate of either of them to perform, keep or fulfill any of the other covenants, undertakings,
obligations or conditions set forth in this Agreement, or the occurrence of an “Event of Default” under any Incidental
Document as a result of a material breach by Marriott or Manager or any such Affiliate thereunder, on or before the date required
for the same. Upon the occurrence of any Manager Event of Default as described under this Section 9.01.E, said Manager Event of
Default shall be deemed a “Manager Default” under this Agreement if Marriott or Manager or such Affiliate fails to
cure such Manager Event of Default within thirty (30) days after receipt of written notice from Tenant demanding such cure, or,
if the Manager Event of Default is susceptible of cure, but such cure cannot be accomplished within said thirty (30)-day period
of time, if Marriott or Manager or such Affiliate fails to commence the cure of such Manager Event of Default within fifteen (15)
days of such notice or thereafter fails to diligently pursue such efforts to completion.

 

F.            The failure of Manager to maintain insurance coverages required to be maintained by Manager under Article VI hereof
(excluding insurance elected to be maintained by Tenant pursuant to Article VI hereof), and such failure shall constitute a Manager
Default hereunder if it continues for eight (8) days after written notice thereof from Tenant (except that no notice shall be required
if any such insurance coverage shall have lapsed).

 

G.            Any
material representation or warranty made by Manager or any Affiliate in this Agreement or in any Incidental Document proves
to have been false in any material respect on the date when made or deemed made, and the same shall constitute a Manager
Default if Manager fails to cure or change the fact or event which caused such representation or warranty to have been false
when made within fifteen (15) Business Days of receiving notice of such falseness from Tenant; provided, however,
that if such default is susceptible of cure but such cure cannot reasonably be accomplished with the use of due diligence
within such period of time and if, in addition, Manager commences to cure or cause to be cured such default within fifteen
(15) Business Days after receiving notice thereof from Tenant and thereafter prosecutes the cure of such default with due
diligence, such period of time shall be extended to such period of time as may be reasonably necessary to cure such default
with due diligence.

 

    36

     

    

 

H.           The
occurrence of any other event described in this Agreement as a Manager Default, including without limitation, the events described
in Section 3.02.C, or the occurrence of a Manager Default as described in the Pooling Agreement.

 

9.02         Remedies
for Manager Defaults.

 

A.           In
the event of a Manager Default that has a material adverse effect on Tenant, but subject in all events to Section 9.02.B below,
Tenant shall have the right to: (1) terminate this Agreement with respect to the applicable Hotel under which such Manager
Default arose by written notice to Manager, which Termination shall be effective as of the effective date which is set forth in
said notice, provided that said effective date shall be at least sixty (60) days (or such longer period required by applicable
Legal Requirements concerning the termination of Hotel employees) after the date of such notice; (2) institute forthwith
any and all proceedings permitted by law or equity (provided they are not specifically barred under the terms of this Agreement),
including, without limitation, actions for specific performance and/or damages; or (3) avail itself of the remedies described
in Section 9.03. The parties agree that a Manager Default under Section 9.01.A, 9.01.B, 9.01.C, or 9.01.F will be deemed to have
a material adverse effect on Tenant.

 

B.            Notwithstanding
anything herein to the contrary, in the event of a Manager Default for which Tenant intends or desires to terminate this Agreement,
Tenant shall have the right to do so provided that Tenant must simultaneously terminate this Agreement as to all Hotels which
are at such time subject to this Agreement.

 

C.            Any
payments received by Tenant under any of the provisions of this Agreement during the existence or continuance of a Manager Default
(and any payment made to Tenant from others rather than Manager due to the existence of any Manager Default) shall be applied
to Manager’s current and past due obligations under this Agreement in such order as Tenant may determine or as may be prescribed
by applicable law.

 

9.03         Additional Remedies for Manager Defaults.

 

A.           Upon the occurrence of a Manager Default under the provisions of Section 9.01.D, the amount owed to Tenant or any Affiliate
of Tenant pursuant thereto shall accrue interest, at an annual rate equal to the Overdue Rate, from and after the date on which
such payment was originally due.

 

B.            The
rights granted under this Article IX shall not be in substitution for, but shall be in addition, to, any and all rights and
remedies available to Tenant (including, without limitation, injunctive relief and damages) by reason of applicable provisions
of law or equity.

 

    37

     

    

 

C.            At
any time after the occurrence of a Manager Event of Default, Tenant shall have the right, but shall not be obligated, to cure
a Life Safety Event occurring at a Hotel by performing necessary repairs and/or maintenance after first providing Manager with
written notice of such Life Safety Event, and requesting that such Life Safety Event be cured by Manager within five (5) Business
Days. If (1) a Life Safety Event remains uncured following the applicable notice period in the foregoing sentence or (2) such
Life Safety Event is not curable within such notice period and Manager has failed to begin to cure such Life Safety Event within
such notice period (or fails to diligently proceed to cure such Life Safety Event to completion after commencing to do so within
such notice period), then Manager shall permit Landlord and/or Tenant, upon five (5) Business Days’ written notice to Manager,
to enter upon the applicable Hotel solely for the purposes of effecting a cure for such Life Safety Event, provided (i) Landlord
and/or Tenant, as applicable, act strictly in accordance with the terms of the Lease, this Agreement and applicable Legal Requirements,
and (ii) Landlord and/or Tenant, as applicable, do not unreasonably interfere with the operation of such Hotel and use commercially
reasonable efforts to ensure that any work performed at such Hotel is performed in such a manner that minimizes any disruption
in the operations of such Hotel. All costs and expenses incurred by Tenant and/or Landlord in connection with any such cure of
a Life Safety Event shall be paid from the Reserve. Tenant and/or Landlord may exercise the foregoing rights without waiving any
other of its rights or releasing Manager from any of its obligations under this Agreement.

 

9.04        Non-Recourse
Provision. Notwithstanding anything herein to the contrary, but subject to the balance of this Section 9.04, Manager’s
obligations pursuant to this Agreement and the Pooling Agreement are in all instances non-recourse to Manager, and in the event
of any claim, suit or cause of action by Tenant against Manager pursuant to or in connection with this Agreement or the Pooling
Agreement or the transactions contemplated by either of them, Tenant’s sole recourse against Manager shall be with respect
to amounts held by Marriott or Manager for the account of Tenant pursuant to this Agreement or the Pooling Agreement, and to amounts
available pursuant to the Marriott Guaranty Agreement and to amounts available pursuant to the Security Deposit Agreement, and
Manager shall have no other liability beyond the extent thereof with respect to any such claim, suit or cause of action. Notwithstanding
the foregoing, this Section 9.04 shall not be applicable with respect to (a) fraud committed by Manager, (b) misapplication
or misappropriation of funds committed by Manager, (c) the willful misconduct of Manager, (d) the gross negligence of
Manager, or (e) losses against which Manager has elected to self-insure pursuant to Section 6.01 and Exhibit D hereof.
This Section 9.04 shall not be construed to limit any right of set-off to which Tenant may be entitled with respect to any amount
to which Manager or any Affiliate may be entitled pursuant to this Agreement, any Other Management Agreement or the Pooling Agreement,
and Tenant shall be entitled to set-off against amounts owed by Tenant to Manager hereunder amounts owed to Tenant under this
Agreement or any Incidental Document, but excluding in any event System Fees due to Manager hereunder or under any Other Management
Agreement and any fees due to Marriott pursuant to any Franchise Agreement.

 

    38

     

    

 

9.05         Good
Faith Dispute by Manager. If Manager shall in good faith dispute the occurrence of any Manager Default and Manager,
before the expiration of the applicable cure period, shall give notice thereof to Tenant, setting forth, in reasonable
detail, the basis therefor, no Manager Default shall be deemed to have occurred and Manager shall have no obligation with
respect thereto until final adverse determination thereof; provided, however, that in the event that such
dispute is ultimately determined against Manager, then Manager shall pay to Tenant interest on any disputed funds at the
Overdue Rate, from the date demand for such funds was made by Tenant until paid. If Tenant and Manager shall fail, in good
faith, to resolve any such dispute within ten (10) days after Manager’s notice of dispute, either may submit the matter
for resolution by Arbitration. In the event that the determination in such Arbitration is that a Manager Default, in fact,
exists, Manager shall have the applicable cure period from the date of such final determination to cure such Manager
Default.

 

9.06         
Tenant Events of Default. Each of the following shall constitute a “Tenant Event of Default” to
the extent permitted by applicable law:

 

A.           The
filing by Tenant or SVC of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy
law, or the admission by Tenant that it is unable to pay its debts as they become due, or the institution of any proceeding by
Tenant for its dissolution or termination. Upon the occurrence of any Tenant Event of Default as described under this Section
9.06.A, said Tenant Event of Default shall be deemed a “Tenant Default” under this Agreement.

 

B.            The
consent by Tenant or SVC to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days from the date
of entry thereof, any order approving an involuntary petition by Tenant. Upon the occurrence of any Tenant Event of Default as
described under this Section 9.06.B, said Tenant Event of Default shall be deemed a “Tenant Default” under this Agreement.

 

C.            The
entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor, adjudicating
Tenant or SVC as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee, or liquidator
of all or a substantial part of Tenant’s or SVC’s assets, and such order, judgment or decree’s continuing unstayed
and in effect for an aggregate of sixty (60) days (whether or not consecutive). Upon the occurrence of any Tenant Event of Default
as described under this Section 9.06.C, said Tenant Event of Default shall be deemed a “Tenant Default” under this
Agreement.

 

D.            The
failure of Tenant to make any payment (or cause to be made any payment by any Affiliate of Tenant which is a party thereto) required
to be made in accordance with the terms of this Agreement or any Incidental Document on or before the date due. Upon the occurrence
of any Tenant Event of Default as described under this Section 9.06.D, said Tenant Event of Default shall be deemed a “Tenant
Default” under this Agreement if Tenant fails to cure such Tenant Event of Default (1) within any applicable notice
and cure period, if any, provided in the document pursuant to which such payment is to be made, or (2) otherwise, eight (8)
days after receipt of written notice from the other party to such document demanding such cure.

 

E.            The
failure of Tenant, SVC or Landlord to perform, keep or fulfill any of the other covenants, undertakings, obligations or
conditions set forth in this Agreement or any Incidental Document. Upon the occurrence of any Tenant Event of Default as
described under this Section 9.06.E, said Tenant Event of Default shall be deemed a “Tenant Default” under this
Agreement if Tenant fails to cure the Tenant Event of Default within thirty (30) days after receipt of written notice from
Manager demanding such cure, or, if the Tenant Event of Default is susceptible of cure, but such cure cannot be accomplished
within said thirty (30)-day period of time, if Tenant fails to commence the cure of such Tenant Event of Default within
fifteen (15) days of such notice or thereafter fails to diligently pursue such efforts to completion.

 

    39

     

    

 

F.            The
failure of Tenant to maintain insurance coverages elected to be maintained by Tenant under Article VI hereof (excluding insurance
maintained by Manager pursuant thereto), and such failure shall constitute a Tenant Default hereunder if it continues for eight
(8) days after written notice thereof from Manager (except that no notice shall be required if any such insurance coverage shall
have lapsed).

 

G.            Any material representation or warranty made by Tenant or any Affiliate in this Agreement or in any Incidental Document
proves to have been false in any material respect on the date when made or deemed made, and the same shall constitute a Tenant
Default if Tenant fails to cure or change the fact or event which caused such representation or warranty to have been false when
made within fifteen (15) Business Days of receiving notice of such falseness from Manager; provided, however, that
if such default is susceptible of cure but such cure cannot reasonably be accomplished with the use of due diligence within such
period of time and if, in addition, Tenant commences to cure or cause to be cured such default within fifteen (15) Business Days
after receiving notice thereof from Manager and thereafter prosecutes the cure of such default with due diligence, such period
of time shall be extended to such period of time as may be reasonably necessary to cure such default with due diligence.

 

H.            The occurrence of an event of default beyond any applicable notice and cure period under any obligation, agreement, instrument
or document which is secured in whole or in part by Tenant’s or Landlord’s interest in any Hotel or should the holder
of such security accelerate the indebtedness secured thereby or commence a foreclosure thereof. Upon the occurrence of any Tenant
Event of Default as described under this Section 9.06.H, said Tenant Event of Default shall be deemed a “Tenant Default”
under this Agreement.

 

9.07        
Remedies for Tenant Defaults.

 

A.           In
the event of a Tenant Default that has a material adverse effect on Manager or its Affiliates, Manager shall have the right
to: (1) terminate this Agreement with respect to the applicable Hotel under which such Tenant Default arose as expressly
provided in this Agreement; (2) terminate this Agreement as to all Hotels that are at such time subject to this Agreement by
written notice to Tenant, which Termination shall be effective as of the effective date which is set forth in said notice,
provided that said effective date shall be at least sixty (60) days (or such longer period required by applicable Legal
Requirements concerning the termination of Hotel employees) after the date of such notice; and (3) institute forthwith
any and all proceedings permitted by law or equity (provided they are not specifically barred under the terms of this
Agreement), including, without limitation, actions for specific performance and/or damages. In the event of a Termination as
described in this Section 9.07, Manager shall retain all of its rights under the Owner Agreement. The parties agree that a
Tenant Default under Sections 9.06.A, 9.06.B, 9.06.C, 9.06.D and/or 9.06.F will (x) be deemed to have a material adverse
effect on Manager or its Affiliates and (y) except as otherwise expressly set forth herein, shall be the only provisions for
which a Tenant Default thereof shall give rise to Manager’s right to terminate this Agreement; provided, however, that
a Tenant Default under Section 9.06.D will only be deemed to have a material adverse effect on Manager or its Affiliates to
the extent that such Tenant Default arises from Tenant’s failure to make any payment (or cause to be made any payment
by any Affiliate of Tenant which is party thereto) required to be made under any Renovation-Related Agreement, Tenant’s
failure to provide sufficient Additional Working Capital in accordance with the provisions of Section 4.05.A hereof or
Tenant’s failure to provide sufficient Reserve funds in accordance with the provisions of Sections 5.07.B and 5.07.D
hereof. Notwithstanding the provisions of this Section 9.07.A, so long as a Hotel is subject to a Qualified Mortgage or owned
by a Person who acquired such interest pursuant to a Qualified Mortgage (or a deed-in-lieu in connection therewith), Manager
shall not exercise the termination right provided for in this Section 9.07.A if the Tenant Default described herein
arises under Section 9.06.A, 9.06.B or 9.06.C and is also a default pursuant to the terms of such Qualified Mortgage so long
as the mortgagee thereunder is diligently pursuing its remedies to cure the event or circumstance which created such Tenant
Default as described in this Section 9.07.A and provides Manager with written notice of the same.

 

    40

     

    

 

B.            Upon
the occurrence of a Tenant Default which arises with respect to a violation by Tenant of Section 10.02 hereof with respect to
a Sale of a Hotel in violation of such provision or by Landlord with respect to a violation of Sections 8 and 9 of the Owner Agreement
or Section 8.01.A(2) with respect to the encumbering of a Hotel by Landlord or Tenant by a Mortgage which is not a Qualified Mortgage,
or by Landlord with respect to a violation of Section 9 of the Owner Agreement, Manager shall have, in addition to all other rights
and remedies provided for herein, the right to effect a Termination of this Agreement with respect to the applicable Hotel under
which such Tenant Default arose. Notwithstanding the foregoing sentence, so long as a Hotel is subject to a Qualified Mortgage
or owned by a Person who acquired such interest pursuant to a Qualified Mortgage (or a deed-in-lieu in connection therewith),
Manager shall not exercise the termination right provided for in this Section 9.07.B if the Tenant Default described herein is
also a default pursuant to the terms of such Qualified Mortgage so long as the mortgagee thereunder is diligently pursuing its
remedies to cure the event or circumstance which created such Tenant Default as described in this Section 9.07.B and provides
Manager with written notice of the same.

 

C.            Manager and/or any Affiliate shall be entitled, in case of any breach of the covenants of Section 11.11.M by Tenant or others
claiming through it, to injunctive relief and to any other right or remedy available at law or in equity. The provisions of this
Section 9.07.C shall survive any Termination.

 

D.            The rights granted under this Article IX shall not be in substitution for, but shall be in addition, to, any and all
rights and remedies available to Manager or its Affiliates (including, without limitation, injunctive relief and damages) by reason
of applicable provisions of law or equity.

 

E.             For the avoidance of doubt, nothing contained in this Agreement shall restrict or modify any of the rights or remedies to
which Manager and/or its Affiliates are entitled under the applicable Renovation-Related Agreement(s) (including, without limitation,
the right to terminate this Agreement with respect to the applicable Hotel pursuant to Section 2.06 of the applicable Renovation-Related
Agreement(s)).

 

    41

     

    

 

9.08         Good Faith Dispute by Tenant. If Tenant shall in good faith dispute the occurrence of any Tenant Default and Tenant,
before the expiration of the applicable cure period, shall give notice thereof to Manager, setting forth, in reasonable detail,
the basis therefor, no Tenant Default shall be deemed to have occurred and Tenant shall have no obligation with respect thereto
until final adverse determination thereof; provided, however, that in the event that such dispute is ultimately determined
against Tenant, then Tenant shall pay to Manager interest of any disputed funds at the Overdue Rate from the date demand for such
funds was made by Manager until paid. If Manager and Tenant shall fail, in good faith, to resolve any such dispute within ten (10)
days after Tenant’s notice of dispute, either may submit the matter for resolution by Arbitration. In the event that the
determination in such Arbitration is that a Tenant Default, in fact, exists, Tenant shall have the applicable cure period from
the date of such final determination to cure such Tenant Default.

 

9.09         Landlord Defaults. Each of the following shall constitute a “Landlord Default”: (1) the failure
of Landlord to provide funds to any Reserve on or before the date such funds are required to be paid under Section 5.07.B hereof
or under the Owner Agreement (after any Expert resolution pursuant to Section 11.23.B, if applicable), (2) the failure of
Landlord to make insurance or condemnation proceeds available for repair, restoration or replacement required under the Owner Agreement,
(3) the imposition by Landlord of a Mortgage against any Hotel which is not a Qualified Mortgage, (4) the permitting
by Landlord of a lien on Landlord’s interest in any Hotel in violation of the terms hereof or of the Owner Agreement, or
(5) a Landlord Sale of a Hotel occurs in violation of the Owner Agreement.

 

If a Landlord Default
occurs, Tenant shall have no remedies under this Agreement with respect to such Landlord Default, but reserves its rights and remedies
under the Lease. Notwithstanding anything herein to the contrary, Manager shall be entitled to exercise any and all of the remedies
of Manager with respect to a Landlord Default under the Owner Agreement.

 

9.10         Extraordinary
Events. In all cases, if Tenant or Manager fails to comply with any term of this Agreement (other than an obligation of a
monetary nature or as otherwise specifically provided herein), and the failure is caused in whole or in part by one or more Extraordinary
Events, the failure will not be a default or Event of Default, and will be excused for as long as the failure is caused in whole
or in part by such Extraordinary Event.

 

ARTICLE X

 

ASSIGNMENT AND SALE

 

10.01     
Assignment.

 

A.           Except
as provided in Sections 10.01.B and 10.01.C, Manager shall not assign mortgage, pledge, hypothecate or otherwise transfer
its interest in all or any portion of this Agreement or any rights arising under this Agreement or suffer or permit such
interests or rights to be assigned, transferred, mortgaged, pledged, hypothecated or encumbered, in whole or in part, whether
voluntarily, involuntarily or by operation of law, or permit the use or operation of the Hotels by anyone other than Manager
or Tenant. For purposes of this Section 10.01.A, an assignment of this Agreement shall be deemed to include the following
(for purposes of this Section 10.01.A, a “Corporate Transfer”): any direct or indirect transfer of any
interest in Manager such that Manager shall cease to be an Affiliate of Marriott or any transaction pursuant to which Manager
is merged or consolidated with another entity which is not Marriott or an Affiliate of Marriott or pursuant to which all or
substantially all of Manager’s assets are transferred to any other entity, but shall not include any involuntary liens
or attachments contested by Manager in good faith in accordance with Section 11.24 of this Agreement.

 

    42

     

    

 

B.            Notwithstanding
the foregoing, if, after giving effect to a Corporate Transfer, Manager, or all or substantially all of Manager’s assets,
would be owned or controlled by a Person who would, in connection therewith, acquire all or substantially all of the TownePlace
Suites business of Marriott, provided that (1) such Person ratifies in writing the obligations of Manager pursuant to this
Agreement, and (2) in Tenant’s reasonable determination, such Person and its controlling parties (a) shall have
sufficient expertise and financial resources to carry on the such business consistent with historical practices, (b) shall
not be known in the community as being of bad moral character, or have been convicted of a felony in any state or federal court,
or be in control of or controlled by Persons who have been convicted of felonies in any state or federal court, (c) shall
qualify as an “eligible independent contractor” under Section 856(d)(9) of the Code and (d) shall otherwise satisfy
the requirements of Section 10.01.C hereunder, Tenant shall at Manager’s request, waive the restrictions set forth in this
Section 10.01 with respect to such Corporate Transfer and no consent by Tenant shall be required with respect thereto. If Tenant
fails to give notice of such waiver (or the withholding thereof) within twenty (20) Business Days after Manager’s written
request therefor, such waiver shall be deemed given.

 

C.            Notwithstanding
the terms of Section 10.01.A, Manager shall have the right, without Tenant’s consent, to (1) assign its interest
in all or part of this Agreement or its obligations to perform services hereunder to Marriott or any Affiliate of Marriott,
(2) sublease or grant concessions or licenses to shops or any other space at a Hotel so long as the terms of any such
subleases or concessions do not exceed the Term of this Agreement, provided that (a) such subleases or concessions are for
newsstand, gift shop, parking garage, health club, restaurant, bar or commissary purposes or similar concessions,
(b) such subleases do not have a term in excess of the lesser of five (5) years and the remaining Term under this
Agreement, (c) such subleases do not demise, (i) in the aggregate, in excess of three thousand (3,000) square feet
of any Hotel, or (ii) for any single sublease, in excess of one thousand (1,000) square feet of any Hotel, (d) any
such sublease, license or concession to an Affiliate of a Manager shall be on terms consistent with those that would be
reached through arms-length negotiation, (e) for so long as Landlord or any Affiliate of Landlord shall seek to qualify
as a real estate investment trust, anything contained in this Agreement to the contrary notwithstanding, Manager shall not
sublet or otherwise enter into any agreement with respect to a Hotel on any basis such that the rental or other fees to be
paid by any sublessee thereunder would be based, in whole or in part, on either (i) the income or profits derived by the
business activities of such sublessee, or (ii) any other formula such that any portion of such sublease rental would
fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue Code
of 1986, as amended, or any similar or successor provision thereto, and (f) such subleases or concessions will not
violate or affect any Legal Requirement or Insurance Requirement, and Manager shall obtain or cause the subtenant to obtain
such additional insurance coverage applicable to the activities to be conducted in such subleased space as Landlord and any
Mortgagee under a Qualified Mortgage may reasonably require, (3) assign its interest in this Agreement in connection
with a merger or consolidation or a sale of all or substantially all of the assets of Manager or Marriott, and
(4) assign its interest in this Agreement in connection with a merger or consolidation or a sale of all or substantially
all of the System assets (including associated management agreements) owned by Manager, Marriott or any Affiliate of Manager
or Marriott.

 

    43

     

    

 

D.            Tenant
shall not assign or transfer its interest in this Agreement without the prior written consent of Manager; provided, however,
that Tenant shall have the right, without such consent to (1) assign its interest in this Agreement in connection with a
Sale of a Hotel which complies with the provisions of Section 10.02 of this Agreement, (2) assign its interest hereunder
to Landlord or an Affiliate of Landlord under the terms of the Lease or the Owner Agreement, (3) assign its interest hereunder
to Manager or an Affiliate of Manager, and (4) assign its interest hereunder to an Affiliate of Tenant in a corporate restructuring
of Tenant or any of its Affiliates, provided such assignment complies with the provisions of Section 10.02 of this Agreement.

 

E.            In
the event either party consents to an assignment of this Agreement by the other, no further assignment shall be made without the
express consent in writing of such party, unless such assignment may otherwise be made without such consent pursuant to the terms
of this Agreement. An assignment by Tenant of its interest in this Agreement approved or permitted pursuant to the terms hereof
shall relieve Tenant from its obligations under this Agreement with respect to the Hotel to which such assignment pertains arising
from and after the effective date of such assignment. An assignment by Manager of its interest in this Agreement shall not relieve
Manager from its obligations under this Agreement with respect to the Hotel to which such assignment pertains unless such assignment
occurs in the context of a sale of all or substantially all of the TownePlace Suites business of Marriott and its Affiliates and
which is otherwise permitted or approved, if required, pursuant to this Agreement, in which event Manager shall be so relieved
from such obligations arising from and after the effective date of such assignment.

 

10.02     
Sale of the Hotel.

 

A.           Tenant
may enter into a Sale of a Hotel to any Person which (1) is an Affiliate of Tenant, and (2) who assumes Tenant’s
obligations with respect to such Hotel under this Agreement, the Owner Agreement (to the extent applicable to the Hotel being
sold) and, to the extent applicable with respect to the “deconsolidation” provisions thereof, the Pooling Agreement
(or ratifies each of such obligations if such Sale of a Hotel is pursuant to a transfer of a Controlling Interest in Tenant).
Tenant shall not enter into any Sale of a Hotel to any Person (or any Affiliate of any Person) who (a) does not have sufficient
financial resources and liquidity to fulfill Tenant’s obligations with respect to such Hotel under this Agreement, the Owner
Agreement (to the extent applicable to the Hotel) and, to the extent applicable as set forth in the preceding sentence, the Pooling
Agreement; (b) is known in the community as being of bad moral character, or has been convicted of a felony in any state
or federal court, or is in control of or controlled by Persons who have been convicted of felonies in any state or federal court;
(c) is engaged in the business of operating (as distinguished from owning) at least five (5) hotels or other lodging facilities
in competition with Manager, Marriott or any Affiliate of either; (d) fails to expressly assume in writing the obligations
of Tenant hereunder and under the Owner Agreement (to the extent applicable to the Hotel); or (e) is, or has an Affiliate
that is, a Specially Designated National or Blocked Person.

 

    44

     

    

 

B.            Tenant
shall provide written notice of any proposed Sale of a Hotel and shall provide to Manager such information concerning the proposed
transferee’s financial condition, ownership and business interests and as may be reasonably necessary or appropriate in
order for Manager to determine if such transfer is consistent with the above provisions.

 

C.            In
connection with any Sale of a Hotel, Manager and the purchaser or its tenant shall enter into a new management agreement with
Manager, which new management agreement will be on all of the terms and conditions of this Agreement (with revisions as reasonably
required to account for the fact that such management agreement may be applicable to less than all of the Hotels subject to this
Agreement) except that the Initial Term and Renewal Term(s) of any such new management agreement shall consist only of the balance
of the Initial Term and Renewal Term(s) remaining under this Agreement at the time of execution of such new management agreement.
Such new management agreement shall be executed by Manager and such new tenant at the time of closing of a Sale of the Hotel,
and a memorandum of such new management agreement shall be executed by the parties and recorded immediately following recording
of the deed or memorandum of lease or assignment and prior to recordation of any other documents.

 

D.           Notwithstanding
anything herein to the contrary, and in addition to the foregoing, a sale (or deemed sale) of an Exit Hotel may be consummated,
in accordance with the terms and conditions of the Exit Hotel Agreement.

 

E.            Notwithstanding
anything herein to the contrary, including the foregoing provisions of this Article X, other than in connection with the
sale (or deemed sale) of an Exit Hotel pursuant to Section 10.02.D above, (a) no Sale of a Hotel by Tenant shall or can occur
prior to the completion of the Renovations pursuant to the Renovation-Related Agreements, and (b) following the completion
of the Renovations pursuant to the Renovation-Related Agreements, Tenant may consummate a Sale of a Hotel, at no cost to Manager
or Marriott, provided that (i) the applicable Landlord or an Affiliate thereof or SVC shall continue to own such Hotel, (ii) the
permitted purchaser must meet and comply with the requirements of this Section 10.02 and those set forth in the Lease, and (iii) the
applicable Landlord, Tenant and the permitted purchaser shall execute and deliver such documents as Manager may reasonably require
to reflect such assignment.

 

ARTICLE XI

 

MISCELLANEOUS

 

11.01     
Right to Make Agreement. Each party warrants, with respect to itself, that neither the execution of this Agreement
nor the finalization of the transactions contemplated hereby shall violate any provision of law or judgment, writ, injunction,
order or decree of any court or governmental authority having jurisdiction over it; result in or constitute a breach or default
under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; or require any consent,
vote or approval which has not been taken, or at the time of the transaction involved shall not have been given or taken. Each
party covenants that it has and will continue to have throughout the Term (including any extensions thereof), the full right to
enter into this Agreement and perform its obligations hereunder.

 

    45

     

    

 

11.02     
Actions by Manager. Manager covenants and agrees that it shall not take any action which would be binding upon Tenant
or Landlord except to the extent it is permitted to do so pursuant to the terms of this Agreement.

 

11.03     
Relationship. In the performance of this Agreement, Manager shall act solely as an independent contractor. Neither
this Agreement nor any agreements, instruments, documents or transactions contemplated hereby shall in any respect be interpreted,
deemed or construed as making Manager a partner, joint venturer with, or agent of, Tenant. Tenant and Manager agree that neither
party will make any contrary assertion, claim or counterclaim in any action, suit, Expert resolution pursuant to Section 11.23.B,
arbitration or other legal proceedings involving Tenant and Manager. Nothing contained herein is intended to, nor shall be construed
as, creating any landlord-tenant relationship between Manager and Tenant or between Manager and Landlord. Each of Manager and Tenant
shall prepare and shall cause their Affiliates to prepare their financial statements and tax returns consistent with the foregoing
characterization.

 

11.04     
Applicable Law. This Agreement shall be construed under and shall be governed by the laws of the State of Maryland,
without regard to its “choice of law” rules. The provisions of this Section 11.04 survive any Termination.

 

11.05     
Recordation. The terms and provisions of this Agreement shall run with the parcels of land designated as the Sites,
and with Tenant’s interest therein, and shall be binding upon all successors to such interest. The parties shall execute
simultaneously with this Agreement sufficient copies of a “Memorandum of Management Agreement” in recordable form satisfactory
to both parties, which Memorandum of Management Agreement shall, if legally permitted, be recorded or registered (or such other
steps shall be taken by the parties as are necessary, to the extent legally permitted, to give official notice to all third parties
that this Agreement binds the Hotels) promptly following the Effective Date of this Agreement in each jurisdiction in which a Hotel
is located. Any cost of such recordation shall be paid by Manager. Following any Termination, Manager and Tenant shall execute
a “Memorandum of Termination of Management Agreement” or other similar document, which document shall be in a recordable
form reasonably agreed upon by both parties.

 

11.06     
Headings; Section References. The headings of Sections herein are inserted for convenience only and are in no way
intended to describe, interpret, define or limit the scope or content of this Agreement or any provision hereto. All references
to Articles, Sections, paragraphs, clauses, exhibits, or addenda shall refer to the corresponding Article, Section, paragraph,
clause of, or exhibit or addendum attached to, this Agreement unless otherwise specified.

 

11.07     
Notices. Subject to the provisions of this Section 11.07, notices and other communications under this Agreement must
be (i) in writing; (ii) delivered by hand against receipt, by certified or registered mail, postage prepaid, return receipt requested
or by a nationally recognized overnight delivery service; and (iii) addressed as provided below or at any other address in the
United States designated in writing by the party receiving the notice. Any notice will be deemed received when delivery is received
or refused at the address provided below or at the other address designated in writing.

 

    46

     

    

 

To Tenant:                         HPT TRS MRP,
Inc.
 c/o Service Properties Trust
 Two Newton Place
 255 Washington St
 Newton, MA 02458
 Attn:
President
 Phone: (617) 964-8389

 

To Manager:                      TownePlace
Management, LLC
 c/o Marriott International, Inc.
 10400 Fernwood Road
 Bethesda, Maryland 20817
 Attn: Law
Department 52/923 - Hotel Operations
 Phone: (301) 380-9555

 

with a copy to:                   TownePlace
Management, LLC

c/o Marriott International, Inc.

10400 Fernwood Road

Bethesda, Maryland 20817

Attn: Senior Vice President, Finance & Accounting

              Dept. 51/918.04

Phone: (301) 380-6577

 

Notwithstanding the foregoing, Manager
and/or any of its Affiliates may provide Tenant and/or Landlord (as applicable) with electronic delivery of the reports and other
documents required to be provided by Manager and/or its Affiliates under this Agreement, which reports and other documents shall
be in a format reasonably agreed upon by Manager and Tenant. Manager, Tenant and Landlord will reasonably cooperate with one another
to adapt to new technologies that may be available for the transmission of such reports or such other documents.

 

11.08     
Environmental Matters.

 

A.           Subject
to Section 11.08.D hereof and the sufficiency of funds in each applicable Reserve, during the Term or at any other time while
Manager is in possession of the Hotels, (1) Manager shall not store, spill upon, dispose of or transfer to or from any Hotel
any Hazardous Substance, except in compliance with all Legal Requirements, (2) Manager shall maintain the Hotels at all times
free of any Hazardous Substance (except in compliance with all Legal Requirements), and (3) Manager (a) upon receipt
of notice or knowledge shall promptly notify Landlord and Tenant in writing of any material change in the nature or extent of
Hazardous Substances at any Hotel, (b) shall file and transmit to Landlord and Tenant a copy of any Community Right to Know
report which is required to be filed by Manager with respect to any Hotel pursuant to SARA Title III or any other Legal Requirements,
(c) shall transmit to Landlord and Tenant copies of any citations, orders, notices or other governmental communications received
by Manager with respect thereto (collectively, “Environmental Notice”), which Environmental Notice requires
a written response or any action to be taken and/or if such Environmental Notice gives notice of and/or presents a material risk
of any material violation of any Legal Requirement and/or presents a material risk of any material cost, expense, loss or damage
(an “Environmental Obligation”), (d) shall observe and comply with all Legal Requirements relating to
the use, maintenance and disposal of Hazardous Substances and all orders or directives from any official, court or agency of competent
jurisdiction relating to the use or maintenance or requiring the removal, treatment, containment or other disposition thereof,
and (e) shall pay or otherwise dispose of any fine, charge or Imposition related thereto, unless Tenant or Manager shall
contest the same in good faith and by appropriate proceedings and the right to use and the value of any Hotel is not materially
and adversely affected thereby.

 

    47

     

    

 

B.            Subject
to Sections 11.08.C and 11.08.D below and the sufficiency of funds in each applicable Reserve, in the event of the discovery of
Hazardous Substances other than those maintained in accordance with Legal Requirements on any portion of any Site or in any Hotel
during the Term of this Agreement, Manager shall promptly (i) clean up and remove from and about such Hotel all Hazardous
Substances thereon, (ii) contain and prevent any further release or threat of release of Hazardous Substances on or about
such Hotel, (iii) use good faith efforts to eliminate any further release or threat of release of Hazardous Substances on
or about such Hotel, and (iv) otherwise effect a remediation of the problem in accordance with (1) the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as amended; (2) the regulations
promulgated thereunder, from time to time; (3) all federal, state and local laws, rules and regulations (now or hereafter
in effect) dealing with the use, generation, treatment, storage, disposal or abatement of Hazardous Substances; and (4) the
regulations promulgated thereunder, from time to time (collectively referred to as “Environmental Laws”).

 

C.            The
actual costs incurred or the estimated costs to be incurred with respect to any costs that have been or are to be incurred under
Section 11.08.B above are herein collectively referred to as, the “Environmental Costs.” Any costs incurred
by Tenant with respect to any judgment or settlement approved by Manager (such approval shall not be unreasonably withheld, conditioned
or delayed with respect to any third party claims including, without limitation, claims by Landlord arising under the Lease),
including reasonable attorney fees incurred with respect to such claims, as a result of release or threat of release of Hazardous
Substances on or about any of the Hotels are herein referred to as the “Other Environmental Costs.” The Environmental
Costs and the Other Environmental Costs are collectively referred to herein as the “Section 11.08 Costs.”

 

D.           All
Section 11.08 Costs with respect to each Hotel shall be paid from the applicable Reserve for such Hotel; provided, however,
that, if the presence of any Hazardous Substances on or at such Hotel or the violation of any Environmental Law in the course
of operating such Hotel is caused by (i) Manager’s willful misconduct, or (ii) the gross negligence of a member
of the Hotel’s executive committee or a Marriott executive more senior than a member of the Hotel’s executive committee,
then such Section 11.08 Costs shall be paid by Manager at its sole cost and expense and not as a Deduction, and Manager shall
indemnify Tenant for any loss, cost, claim or expense (including reasonable attorneys’ fees) incurred by Tenant in connection
therewith, except in all cases, to the extent that such loss, cost, claim or expense is caused, in whole or in part, by Landlord
or Tenant.

 

    48

     

    

 

11.09     
Confidentiality.

 

A.           The
terms of this Agreement are confidential and Tenant and Manager will each use reasonable efforts to prevent disclosure of the
terms to any Person not related to either party without the prior approval of the other party, except (i) as required by
Legal Requirements (including, without limitation, the rules and regulations promulgated by the SEC or any stock exchange applicable
to Tenant or its Affiliates with respect to any report, prospectus or other filing made by Tenant or its Affiliates with the SEC
or any such stock exchange); (ii) as may be necessary in any Dispute; (iii) to the extent necessary to obtain licenses,
permits and other public approvals; (iv) for disclosure by Manager or its Affiliates in connection with any claim or assertion
related to the MI Trademarks; (v) in connection with a Transfer or a financing of Tenant, its Affiliates or their corporate
assets; (vi) in connection with a financing or sale of Manager, its Affiliates or their corporate assets; (vii) for
disclosure by Manager or its Affiliates of information customarily provided in the hotel industry to data gathering and reporting
services; (viii) as provided in Section 11.12; or (ix) to any professional providing Tenant or Manager (or its Affiliates)
with legal, accounting or tax advice, provided that such professional is aware of the confidentiality provision in this Section
11.09 and agrees in writing to be bound thereby. The provisions of this Section 11.09 survive any Termination.

 

B.            No
reference to Manager or to any Affiliate will be made in any prospectus, private placement memorandum, offering circular or offering
documentation related thereto (collectively referred to as the “Prospectus”), issued by Tenant or an Affiliate,
which is designated to interest potential investors in a Hotel, unless Manager has previously received a copy of all such references.
However, regardless of whether Manager does or does not so receive a copy of all such references, neither Manager nor any Affiliate
will be deemed a sponsor of the offering described in the Prospectus, nor will it have any responsibility for the Prospectus,
and the Prospectus will so state. Unless Manager agrees in advance, the Prospectus will not include any MI Trademark or other
trademarks, symbols, logos or designs of Manager or any Affiliates. Tenant shall indemnify, defend and hold Manager harmless from
and against all loss, costs, liability and damage (including attorneys’ fees and expenses, and the cost of litigation) arising
out of any Prospectus or the offering described therein, and this obligation of Tenant shall survive any Termination of this Agreement.

 

11.10     
Projections. Tenant acknowledges that any written or oral projections, pro formas, or other similar information that
has been, prior to execution of this Agreement, or will, during the Term of this Agreement, be provided by Manager, Marriott, or
any Affiliate to Tenant is for information purposes only and that Manager, Marriott, and any such Affiliate do not guarantee that
the Hotels will achieve the results set forth in any such projections, pro formas, or other similar information. Any such projections,
pro formas, or other similar information are based on assumptions and estimates, and unanticipated events may occur subsequent
to the date of preparation of such projections, pro formas, and other similar information. Therefore, the actual results achieved
by the Hotels are likely to vary from the estimates contained in any such projections, pro formas, or other similar information
and such variations might be material.

 

11.11     
Actions to be Taken Upon Termination. Upon a Termination of this Agreement with respect to any Hotel, the following
shall be applicable:

 

    49

     

    

 

A.           Manager
shall, within ninety (90) days after Termination of this Agreement with respect to one or more Hotels, prepare and deliver to
Tenant a final accounting statement with respect to the applicable Hotels, as more particularly described in Section 4.01 hereof,
along with a statement of any sums due from Tenant to Manager pursuant hereto, dated as of the date of Termination. Within thirty
(30) days of the receipt by Tenant of such final accounting statement, the parties will make whatever cash adjustments are necessary
pursuant to such final statement. If any dispute shall arise with respect to the final accounting statement which cannot be resolved
by the parties within the thirty (30)-day period provided for making any cash adjustments, it shall be settled by the Expert in
accordance with Section 11.23.B; provided, however, that any cash adjustments relating to items which are not in
dispute shall be made within the original thirty (30)-day period. The cost of preparing such final accounting statement shall
be a Deduction, unless the Termination occurs as a result of a default by either party, in which case the defaulting party shall
pay such cost. Manager and Tenant acknowledge that there may be certain adjustments for which the information will not be available
at the time of the final accounting and the parties agree to readjust such amounts and make the necessary cash adjustments when
such information becomes available; provided, however, that all accounts shall be deemed final as of the second
(2nd) anniversary of the effective date of Termination.

 

B.            Manager
shall release and transfer to Tenant, or cause Marriott under the Pooling Agreement to release and transfer to Tenant, any of
Tenant’s funds which are held or controlled by Manager or Marriott with respect to the applicable Hotels, with the exception
of funds of Tenant to be held in escrow pursuant to Section 6.01.B(2)(e) of Exhibit D and Section 11.11.I and otherwise
in accordance herewith. All amounts in the applicable Reserves shall be applied to any amounts payable from such Reserves hereunder
or under the Owner Agreement and the balance shall be paid to Landlord.

 

C.            Manager
shall make available to Tenant such books and records respecting the applicable Hotels (including those from prior years, subject
to Manager’s reasonable records retention policies) as will be needed by Tenant to prepare the accounting statements, in
accordance with the Uniform System of Accounts, for the applicable Hotels for the year in which the Termination occurs and for
any subsequent year.

 

D.           Manager
shall (to the extent permitted by law) assign to Tenant or to the new manager all operating licenses and permits for the applicable
Hotels which have been issued in Manager’s name (including liquor and restaurant licenses, if any).

 

E.            Manager shall have the option, to be exercised within thirty (30) days after Termination, to purchase, at their then-book
value, any items of the applicable Hotels’ Inventories and Fixed Asset Supplies as may be marked with any MI Trademark. In
the event Manager does not exercise such option, Tenant agrees that it will use any such items not so purchased exclusively in
connection with the applicable Hotels until they are consumed.

 

    50

     

    

 

F.            Manager
shall, at Tenant’s sole cost and expense, use good faith commercially reasonable efforts to transfer to and cooperate
with Tenant or Tenant’s designee in connection with the processing of all applications for licenses, operating permits
and other governmental authorizations and all contracts entered into by Manager, including contracts with governmental or
quasi-governmental entities, which Manager has entered into with respect to the use and operation of the applicable Hotels as
then operated (and Tenant shall assume responsibility for all of the same), but excluding (i) all insurance contracts
and multi-property contracts not limited in scope to the applicable Hotels or other Portfolio Properties (if applicable),
(ii) all contracts and leases with Affiliates of Manager, (iii) utility deposits, and (iv) telephone numbers
for the applicable Hotels (which telephone numbers Manager shall be required to convey to Tenant only if this Agreement is
terminated as the result of a Manager Event of Default). Tenant shall indemnify and hold Manager harmless for all claims,
costs and expenses (including reasonable attorneys’ fees) arising from acts or omissions by Tenant or Tenant’s
designee under such contracts subsequent to the earlier of the date of Termination or the date of transfer thereof to Tenant
or Tenant’s designee.

 

G.           Tenant
shall have the right to operate the improvements on the applicable Sites without modifying the architectural design of the same,
notwithstanding the fact that such design or certain features thereof may be proprietary to Manager and/or protected by trademarks
or service marks held by Manager or an Affiliate, provided that such use shall be confined to the applicable Sites.

 

H.            Any
computer software (including upgrades and replacements) at the applicable Hotels owned by Manager, Marriott, an Affiliate, or
the licensor of any of them is proprietary to Manager, Marriott, such Affiliate, or the licensor of any of them and shall in all
events remain the exclusive property of Manager, Marriott, the Affiliate or the licensor of any of them, as the case may be, and
nothing contained in this Agreement shall confer on Tenant the right to use any of such software. Subject to the terms and conditions
of any applicable Franchise Agreement, Manager shall have the right to remove from the applicable Hotels without compensation
to Tenant any computer software (including upgrades and replacements), including, without limitation, the System software, owned
by Manager, Marriott, any Affiliate or the licensor of any of them. Furthermore, upon Termination, Manager shall be entitled to
remove from the applicable Hotels without compensation to Tenant any computer equipment utilized as part of a Reservation System
or owned by a party other than Tenant, unless a Franchise Agreement is in place and such equipment is to be provided pursuant
to the Franchise Agreement.

 

I.             Before
any Termination, Manager will set up a reserve to pay all costs that may accrue after Termination, but that relate to the
operation of the Hotel before Termination, including costs relating to litigation and tax liabilities (including sales, use
and occupancy taxes). Notwithstanding the foregoing, Tenant shall pay, at its own cost and expense, any and all costs and
expenses incurred by Manager or its Affiliate in connection with the transfer or termination of Hotel employees (including,
without limitation, severance pay, unemployment compensation, employment relocation, legal costs and other employee liability
costs), and any such costs and expenses shall not be Deductions and shall be paid or reimbursed to Manager or its Affiliate
within ten (10) Business Days after Manager’s or such Affiliate’s written request therefor. The reserve will be
funded first, from Gross Revenues; second, if Gross Revenues are insufficient, then by Tenant within ten (10) days after
receipt of Manager’s notice of the necessary amounts; and, third, if Tenant does not pay any of the above amounts
within the ten (10)-day period, then by withdrawals by Manager from the applicable Hotel’s operating account(s), the
Reserves, Working Capital funds or any other Tenant funds under Manager’s control. The reserve described in this
Section 11.11.I is in addition to the reserve described in Section 6.01.B(2)(e) of Exhibit D. For the avoidance
of doubt, for so long as the Pooling Agreement is in effect, any reserve funding under this Section 11.11.I that is made from
Gross Revenues shall be accounted for on a pooled basis and treated as a Deduction.

 

    51

     

    

 

J.             Various
other actions shall be taken, as described in this Agreement, including, but not limited to, the actions described in Section
4.05 and Section 6.01.B(2)(e) of Exhibit D.

 

K.            Manager
shall peacefully vacate and surrender the applicable Hotels to Tenant.

 

L.            Tenant
shall cause the successor operator of the Hotel to hire a sufficient number of existing Hotel employees to avoid the possibility
of a “plant closing” or “mass layoff” under the Worker Adjustment and Retraining Notification Act, 29 U.S.C.
2101 et seq. or a similar occurrence under any other Legal Requirement, in connection with the Termination.

 

M.           All
use of the MI Trademarks at or in connection with the Hotel will stop as of Termination. Tenant shall make arrangements to remove
any signs and similar identification with a MI Trademark at least ten (10) days before Termination. If Tenant does not timely
make such arrangements, then Manager and its Affiliates may cover or remove the signs and similar identification not more than
two days before Termination at Tenant’s cost. Tenant shall remove all Inventories, Fixed Asset Supplies and other items
with an MI Trademark, or remove the MI Trademarks from such Inventories, Fixed Asset Supplies or other items as of the Termination
date. If Tenant does not timely remove these items, then Manager and its Affiliates may do so at Tenant’s cost. Tenant shall
reimburse all costs incurred by Manager and its Affiliates for covering or removing any items bearing MI Trademarks within ten
(10) days after notice from Manager. If Tenant fails to do so, then Manager may reimburse itself for these costs from the applicable
Hotel’s operating account(s), the Reserves, Working Capital funds or any other Tenant funds under Manager’s control
without affecting Manager’s other rights and remedies under this Agreement.

 

N.            Upon
Termination, Tenant shall immediately stop processing and upon request of Manager, promptly return to Manager or securely destroy,
any Personal Data processed in connection with this Agreement or as required by Legal Requirements. However, Manager will provide
to Tenant (i) all Guest Personal Data in Manager’s control necessary for Tenant to process exiting booking for the
time after Termination, and (ii) all Hotel Employee Personal Data in Manager’s control necessary for Tenant or a third-party
manager to meet Legal Requirements as the employer of Hotel employees after Termination.

 

O.            Upon
expiration of the entire Term of this Agreement in accordance with its terms (and not as a result of an Event of Default) and
following the completion of the final accounting provided for in Section 11.11.A hereof and the distributions provided for thereunder,
Tenant shall have no further liability for repayment of any accrued Management Fees or any Additional Manager Advances, Additional
Marriott Advances and any other advances made by Marriott or Manager pursuant to this Agreement or the Pooling Agreement.

 

The provisions of this
Section 11.11 shall survive any Termination.

 

    52

     

    

 

11.12      Trademarks,
Trade Names and Service Marks. The MI Trademarks, when used alone or in connection with another word or words, and the
Marriott trademark, service marks, other trade names, symbols, logos and designs shall in all events remain the exclusive
property of Marriott and its Affiliates (as applicable) and nothing contained in this Agreement shall confer on Tenant the
right to use any of the MI Trademarks otherwise than in strict accordance with the terms of this Agreement. Nothing in
this Agreement will be construed to grant Tenant any right of ownership in or right to use or license others to use the MI
Trademarks. Except as otherwise expressly provided for in this Agreement, Tenant shall not use the MI Trademarks without
Manager’s prior approval, which can be withheld in Manager’s sole discretion. Except as provided in Section
11.11.E, upon termination of this Agreement with respect to any Hotel, any use of or right to use any of the MI Trademarks by
Tenant shall cease forthwith and Tenant shall promptly remove from such Hotel any signs or similar items which contain any of
said MI Trademarks in accordance with this Agreement. The right to use the MI Trademarks belongs exclusively to Marriott
and/or its Affiliates (as applicable), and the use thereof inures to the benefit of Marriott whether or not the same are
registered and regardless of the source of the same. The provisions of this Section 11.12 shall survive any Termination.

 

11.13     
Data Protection.

 

A.            Manager
and its Affiliates will collect, use and disclose Guest Personal Data in the course of operating the Hotels. Tenant may use Guest
Personal Data to comply with Legal Requirements applicable to Tenant. Tenant shall not have access to or use Guest Preferences.

 

B.            Tenant
shall take such actions and execute such documents as requested by Manager or its Affiliates that are necessary for compliance
with Legal Requirements applicable to Personal Data related to the Hotels, such as data transfer agreements.

 

C.            Tenant
shall promptly inform Manager if Tenant: (i) discovers or reasonably suspects a Security Incident; (ii) has been contacted
by any Person seeking to exercise any right under Legal Requirements pertaining to Personal Data; or (iii) has been contacted
by a data protection authority about the processing of Personal Data (in which case Manager and any of its Affiliates may conduct
the proceedings and Tenant shall reasonably cooperate with Manager and its Affiliates).

 

D.           The
following provisions apply to Personal Data received by Tenant (to the extent Tenant acts as data controller) from Manager or
its Affiliates that is subject to Privacy Shield:

 

1.           Tenant
and any other Person acting under its authority will protect Privacy Shield Data at the same level of privacy protection as required
by the Privacy Shield Principles and will collect, use and share Privacy Shield Data solely for the purposes consistent with this
Agreement and any applicable notice to the relevant individual provided by Manager or its Affiliates.

 

2.           If Tenant no longer meets its obligation to provide the same level of protection as required by Privacy Shield, it will
immediately (i) notify Manager; and (ii) in consultation with Manager, either cease all processing of Privacy Shield Data or take
other reasonable and appropriate steps to remediate the issue.

 

    53

     

    

 

3.           Tenant
shall institute measures for reporting, investigating and remediating any Privacy Shield related complaints.

 

E.            The
provisions of this Section 11.13 survive any Termination.

 

11.14     
Waiver. The failure of either party to insist upon a strict performance of any of the terms or provisions of this
Agreement, or to exercise any option, right or remedy contained in this Agreement, shall not be construed as a waiver or as a relinquishment
for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect.
No waiver by either party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed
by such party.

 

11.15     
Partial Invalidity. If any portion of this Agreement shall be declared invalid by order, decree or judgment of a
court, or otherwise, this Agreement shall be construed as if such portion had not been so inserted except when such construction
would operate as an undue hardship on Manager or Tenant or constitute a substantial deviation from the general intent and purpose
of said parties as reflected in this Agreement.

 

11.16     
Survival. Except as otherwise specifically provided herein, the rights and obligations of the parties herein shall
not survive any Termination.

 

11.17   
Negotiation of Agreement. Tenant and Manager are business entities having substantial experience with the matters
addressed in this Agreement. Tenant and Manager have each fully participated in the negotiation and drafting of this Agreement,
and this Agreement is to be interpreted without regard to any rule or principle that may require ambiguities in a provision to
be construed against the drafter of the provision. No inferences will be drawn from the fact that the final executed version of
this Agreement differs from previous drafts.

 

11.18     
Intentionally Deleted.

 

11.19     
Entire Agreement; Recitals. Subject to Section 11.45, this Agreement and the Incidental Documents, together with
any other writings signed by the parties expressly stated to be supplemental hereto and together with any instruments to be executed
and delivered pursuant to this Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings
and writings, and may be changed only by a writing signed by the parties hereto. The Recitals hereto are incorporated herein by
reference and made a part hereof.

 

11.20      Affiliates.
Manager shall be entitled to contract with companies that are Affiliates (or companies in which Manager has an ownership
interest if such interest is not sufficient to make such a company an Affiliate) to provide goods and/or services to the
Hotels; provided that the prices and/or terms for such goods and/or services are competitive. Additionally, Manager
may contract for the purchase of goods and services for the Hotels with third parties that have other contractual
relationships with Manager, Marriott and their Affiliates, so long as the prices and terms are competitive. In determining,
pursuant to the foregoing, whether such prices and/or terms are competitive, they will be compared to the prices and/or terms
which would be available from reputable and qualified parties for goods and/or services of similar quality, and the goods
and/or services which are being purchased shall be grouped in reasonable categories, rather than being compared item by item.
Any dispute as to whether prices and/or terms are competitive in the market will be resolved by the Expert. The prices paid
may include overhead and the allowance of a reasonable return to Manager’s Affiliates (or companies in which Manager
has an ownership interest if such interest is not sufficient to make such a company an Affiliate), provided that such prices
are competitive as provided for herein. Tenant acknowledges and agrees that, with respect to any purchases of goods or
services pursuant to this Section 11.20, and subject to the foregoing qualification that prices and/or terms are competitive,
Manager’s Affiliates may retain for their own benefit any allowances, credits, rebates, commissions and discounts
received with respect to any such purchases.

 

    54

     

    

 

11.21     
Competing Facilities. Neither this Agreement nor anything implied by the relationship between Manager and Tenant
shall prohibit any of the Marriott Companies from constructing, operating, promoting, and/or authorizing others to construct, operate,
or promote one or more Other Marriott Products, or any other lodging concepts, Vacation Club Products, residential units, restaurants,
or other business operations of any type, at any location, including a location proximate to the Sites. Tenant acknowledges, accepts
and agrees further that the Marriott Companies retain the right, from time to time, to construct or operate, or both, or promote
or acquire, or authorize or otherwise license others to construct or operate, or both, or promote or acquire any hotels, lodging
concepts or products, Vacation Club Products, restaurants or other business operations of any type whatsoever, including, but not
by way of limitation, those listed above, at any location including one or more sites that may be adjacent, adjoining or proximate
to the Sites, which business operations may be in direct competition with the Hotels and that any such exercise may adversely affect
the operation of the Hotels.

 

11.22     
Intentionally Deleted.

 

11.23     
Dispute Resolution; Arbitration and Expert Resolution.

 

A.            Arbitration.
Except with respect to those disputes, claims or controversies which pursuant to the terms of this Agreement are to be settled
by an Expert pursuant to Section 11.23.B, all other disputes, claims or controversies between or among the parties hereto arising
out of or relating to this Agreement or the transactions contemplated hereby, including disputes, claims or controversies relating
to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement (each, a “Dispute”
and collectively, the “Disputes”), or relating in any way to such a Dispute or Disputes, shall on demand of
any party to such Dispute be resolved through binding and final Arbitration administered by the American Arbitration Association
(“AAA”) under its Commercial Arbitration Rules then in effect (the “Rules”), except as modified
herein. For the avoidance of doubt, a Dispute shall include a Dispute made derivatively on behalf of one party against another.

 

    55

     

    

 

1.           Notwithstanding
any provision of the Rules to the contrary, there shall be three (3) arbitrators, who shall be appointed as provided in this
Section 11.23.A. Each party shall appoint one arbitrator within fifteen (15) days after receipt by respondent of a copy of
the demand for arbitration. Affiliate claimants on the one hand, or Affiliate respondents on the other hand, shall be treated
as one party, respectively, for purposes of determining the number of arbitrators and the means by which they are selected.
Pursuant to the Rules, the party-appointed arbitrators need not be impartial or independent and shall not be subject to
disqualification for partiality or lack of independence. If the claimants or respondents, as the case may be, fail to appoint
their respective party-appointed arbitrator within fifteen (15) days, the party which has selected an arbitrator shall
request the AAA to provide a list of three (3) arbitrators from the National Roster (as defined in the Rules) (or from the
Large, Complex Commercial Case Panel thereof, if the Procedures for Large, Complex Commercial Disputes apply to the dispute),
each of whom shall be neutral, impartial and unaffiliated with any party and the party that failed to timely appoint an
arbitrator shall have ten (10) days to select one (1) of the three (3) as the second arbitrator; if such party shall again
fail to timely select an arbitrator, the AAA shall make the appointment. The two (2) arbitrators so appointed shall attempt
to agree upon a third arbitrator, who shall chair the arbitration. Such chairperson as may be agreed to by the
party-appointed arbitrators need not be selected from the National Roster, but must meet the standards of the Rules and shall
be neutral, impartial and unaffiliated with any party. If the party-appointed arbitrators fail to agree upon a chairperson
within fifteen (15) days of the appointment of the second arbitrator, the chairperson shall be selected from the National
Roster (or, if the Procedures for Large, Complex Commercial Disputes apply to the dispute, from the Large, Complex Commercial
Case Panel thereof) in the manner provided in the Rules and who shall be neutral, impartial and unaffiliated with
any party.

 

2.           The
place of Arbitration shall be Washington, D.C., unless otherwise agreed by the parties.

 

3.           Any
document discovery otherwise permissible within the Rules shall be limited to the documents bearing directly on the parties’
claims and defenses or otherwise necessary to the determination of the matter. Unless the parties otherwise agree, no more than
three (3) depositions of individuals affiliated with the claimant(s) or respondent(s), respectively, may be undertaken at the
discretion of the chairperson in accordance with the Rules. The discretion and/or authority committed by the Rules to the “arbitrator”
or “arbitrator(s)” shall be vested in the chairperson, who may act individually or in consultation with the party-appointed
arbitrators at the chairperson’s discretion.

 

4.           Any
question regarding the enforceability of this Section 11.23.A or the demand for arbitration shall be determined in accordance
with the Federal Arbitration Act, 9 U.S.C. §1 et seq. and the body of law interpreting such Act. The Arbitration
Award shall be in writing and may, but shall not be required to, briefly state the findings of fact and conclusions of law on
which it is based.

 

5.           Unless,
and then only to the extent the arbitrators in the award assess costs and expenses or any part thereof against any specified party
or parties (a) each party involved in a Dispute shall bear its own costs and expenses (including attorneys’ fees);
and (b) each party (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents,
on the other hand, respectively) shall bear the costs and expenses of its (or their) selected arbitrator and the parties (or,
if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand)
shall equally bear the costs and expenses of the third appointed arbitrator.

 

    56

     

    

 

6.           The
Arbitration Award shall be final and binding upon the parties thereto and shall be the sole and exclusive remedy between
such parties relating to the Dispute, including any claims, counterclaims, issues or accounting presented to the arbitrators.
Judgment upon the Arbitration Award may be entered in any court having jurisdiction. To the fullest extent permitted by law,
no application or appeal to any court of competent jurisdiction may be made in connection with any question of law arising in
the course of Arbitration or with respect to any award made except for actions relating to enforcement of this Section
11.23.A to arbitrate or any arbitral award issued hereunder and except for actions seeking interim or other provisional
relief in aid of arbitration proceedings in any court of competent jurisdiction.

 

7.           Any
monetary award shall be made and payable in U.S. dollars free of any tax, deduction or offset. The party against which the Arbitration
Award assesses a monetary obligation shall pay that obligation on or before the 30th day following the date of the Arbitration
Award or such other date as the Arbitration Award may provide.

 

B.            Expert Resolution. Notwithstanding the terms and provisions of Section 11.23.A above, when this Agreement expressly
calls for a matter or dispute to be decided or resolved by the Expert, the following terms apply:

 

1.           Tenant
or Manager may by notice to the other request that a matter or dispute be submitted to the Expert in accordance with this Agreement.
Tenant and Manager will each select an Expert within ten (10) days after the non-requesting party’s receipt of the notice.
If Tenant or Manager fails to select an Expert within the ten (10)-day period above, the Expert selected by the other party will
be the sole Expert. Within ten (10) days after the parties have each selected an Expert, the two (2) Experts will select a third
Expert. If the two (2) Experts fail to select a third Expert, then the third Expert will be selected by JAMS (“JAMS”).
If there is more than one (1) Expert, then the decision of the Expert will be made by a majority vote.

 

2.           An
Expert must be an independent, nationally recognized consulting firm or individual with at least ten (10) years of experience
in the lodging industry and must be qualified to resolve the issue in question. An individual or consulting firm cannot be an
Expert if Tenant, Manager or their Affiliates have, directly or indirectly, employed or retained such individual or consulting
firm within two (2) years before the date of selection. The engagement terms for the Expert will obligate the Expert to (i) notify
Tenant and Manager in writing of the Expert’s decision within forty-five (45) days after the date on which the last Expert
was selected, or such other period as Tenant and Manager may agree; and (ii) establish a timetable for making submissions and
replies.

 

3.           Tenant
and Manager may each make written submissions to the Expert and will provide a copy to the other party. The other party may comment
on such submission within the time periods established under Section 11.23.B(2). Until an Expert decision is rendered, neither
party may communicate with any Expert about the subject matter submitted for decision without disclosing the content of any such
communication to the other party. The costs of the Expert and the proceedings will be paid as directed by the Expert, unless otherwise
provided in this Agreement, and the Expert may direct that these costs be treated as Deductions.

 

4.           The
Expert will decide the matter by applying the standards specified in the relevant provisions of this Agreement. If this
Agreement does not contain a standard for the matter, then the Expert will apply the standards for
upper-moderate-price-sector, select-service, extended stay hotels comparable to the Hotel in overall quality, and size and
quality of guest rooms, facilities and amenities, considering the long term profitability of the Hotel and the operation of
the Hotel in accordance with System Standards.

 

    57

     

    

 

5.           The
use of the Expert is the exclusive remedy and neither Tenant nor Manager may attempt to adjudicate the matter in any other manner
or forum. The Expert’s decision will be final and binding on the parties and cannot be challenged, whether by arbitration,
in court or otherwise.

 

6.           The
provisions of this Section 11.23.B survive any Termination.

 

11.24     
Permitted Contests. Manager shall have the right to contest the amount or validity
of any Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance, charge or claim (collectively,
 “Claims”) as to any Hotel, by appropriate legal proceedings, conducted in good faith and with due diligence,
provided that (a) such contest shall not cause Landlord or Tenant to be in default under any Qualified Mortgage or reasonably
be expected to result in a lien attaching to such Hotel, unless such lien is fully bonded or otherwise secured to the reasonable
satisfaction of Landlord, (b) no part of a Hotel nor any Gross Revenues therefrom shall be in any immediate danger of sale,
forfeiture, attachment or loss, and (c) Manager shall indemnify and hold harmless Tenant and Landlord from and against any
cost, claim, damage, penalty or reasonable expense, including reasonable attorneys’ fees, incurred by Tenant or Landlord
in connection therewith or as a result thereof. Tenant agrees to sign all required applications and otherwise cooperate with Manager
in expediting the matter, provided that Tenant shall not thereby be subjected to any liability therefor (including, without limitation,
for the payment of any costs or expenses in connection therewith), and any such costs or expenses incurred in connection therewith
shall be paid as a Deduction with respect to the applicable Hotel. Landlord shall, in the Owner Agreement, agree to join in any
such proceedings if required legally to prosecute such contest, provided that Landlord shall not thereby be subjected to any liability
therefor (including, without limitation, for the payment of any costs or expenses in connection therewith) and Manager agrees by
agreement in form and substance reasonably satisfactory to Landlord, to assume and indemnify Landlord with respect to the same.
Any amounts paid under any such indemnity of Manager to Tenant or Landlord shall be a Deduction with respect to such Hotel. Any
refund of any Claims and such charges and penalties or interest thereon which amount shall be paid to Manager and included in Gross
Revenues of such Hotel.

 

11.25      Indemnification. Subject
to the provisions of Section 9.04 hereof, Manager shall protect, indemnify and hold harmless Tenant and Landlord for, from
and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and reasonable expenses
(including, without limitation, reasonable attorneys’ fees), to the maximum extent permitted by law, imposed upon or
incurred by or asserted against Tenant or Landlord by reason of: (a) Manager’s failure to pay any Impositions that
are the obligations of Manager to pay pursuant to the applicable provisions of this Agreement, and (b) infringement and
other claims by third parties relating to the proprietary marks of Marriott or Manager with respect to any Hotel; provided,
however, that Manager’s obligations hereunder shall not apply to any liability, obligation, claim, damage, penalty,
cause of action, cost or expense to the extent the same arises from any negligence or willful misconduct of Tenant and/or
Landlord, or their respective Affiliates, employees, agents or invitees. Manager, at its expense, shall contest, resist and
defend any such claim, action or proceeding asserted or instituted against Tenant or Landlord (and shall not be
responsible for any duplicative attorneys’ fees incurred by Tenant or Landlord) or may compromise or otherwise dispose
of the same, with Tenant’s or Landlord’s (as applicable) prior written consent (which consent may not be
unreasonably withheld or delayed). In the event Tenant or Landlord shall unreasonably withhold or delay its consent, Manager
shall not be liable pursuant to this Section 11.25 for any incremental increase in costs or
expenses resulting therefrom. The obligations of Manager under this Section 11.25 are in addition to the obligations set
forth in Section 11.08.D and shall survive a Termination of this Agreement. The indemnification provided for in this Section
11.25 shall not be applicable to Section 11.08 Costs, with respect to which a specific indemnity is provided in Section 11.08
hereof, to the extent addressed therein.

 

    58

     

    

 

11.26     
Estoppel Certificates. Each party to this Agreement shall at any time and from time to time, upon not less than thirty
(30) days’ prior notice from the other party, execute, acknowledge and deliver to such other party, or to any third party
specified by such other party, a statement in writing: (a) certifying that this Agreement is unmodified and in full force
and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications);
(b) stating whether or not to the best knowledge of the certifying party (i) there is a continuing default by the non-certifying
party in the performance or observance of any covenant, agreement or condition contained in this Agreement, or (ii) there
shall have occurred any event which, with the giving of notice or passage of time or both, would become such a default, and, if
so, specifying each such default or occurrence of which the certifying party may have knowledge; (c) stating the date to which
distributions of Operating Profit have been made; and (d) stating such other information as the non-certifying party may reasonably
request. Such statement shall be binding upon the certifying party and may be relied upon by the non-certifying party and/or such
third party specified by the non-certifying party as aforesaid, including, without limitation its lenders and any prospective purchaser
or mortgagee of any Hotel or the leasehold estate created by the Lease. The obligations set forth in this Section 11.26 shall survive
any Termination (that is, each party shall, on request, within the time period described above, execute and deliver to the non-certifying
party and to any such third party a statement certifying that this Agreement has been terminated).

 

11.27     
Intentionally Deleted.

 

11.28     
Intentionally Deleted.

 

11.29     
Remedies Cumulative. To the maximum extent permitted by law, each legal, equitable or contractual right, power and
remedy of Tenant or Manager, now or hereafter provided either in this Agreement or by statute or otherwise, shall be cumulative
and concurrent and shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by
Tenant or Manager (as applicable) of any one or more of such rights, powers and remedies shall not preclude the simultaneous or
subsequent exercise by Tenant of any or all of such rights, powers and remedies.

 

11.30     
Amendments and Modifications. This Agreement shall not be modified or amended except in writing signed by both parties.

 

    59

     

    

 

11.31     
Construction; Nonrecourse. Anything contained in this Agreement to the contrary notwithstanding, all claims against,
and liabilities of, Manager or Tenant arising prior to any date of termination or expiration of this Agreement with respect to
any Hotel shall survive such termination or expiration. Neither this Agreement nor any provision hereof may be changed, waived,
discharged or terminated except by an instrument in writing signed by all the parties thereto. All the terms and provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and
assigns. Each term or provision of this Agreement to be performed by Manager shall be construed as an independent covenant and
condition. Time is of the essence with respect to the exercise of any rights of Manager or Tenant under this Agreement. Except
as otherwise set forth in this Agreement, any obligations arising prior to the expiration or sooner termination of this Agreement
of Manager (including without limitation, any monetary, repair and indemnification obligations) and Tenant shall survive the expiration
or sooner termination of this Agreement. Nothing contained in this Agreement shall be construed to create or impose any liabilities
or obligations and no such liabilities or obligations shall be imposed on any of the shareholders, beneficial owners, direct or
indirect, officers, directors, trustees, employees or agents of Tenant or its Affiliates or Manager or its Affiliates for the payment
or performance of the obligations or liabilities of Tenant or Manager, as applicable, hereunder.

 

11.32     
Counterparts; Headings. This Agreement may be executed in one or more counterparts (including by means of facsimile
or via email in electronic or portable document format (.pdf) signature pages), each of which shall be deemed an original but all
of which together will constitute one and the same instrument. Headings in this Agreement are for purposes of reference only and
shall not limit or affect the meaning of the provisions hereof.

 

11.33     
No Political Contributions. Notwithstanding any provision in this Agreement to the contrary, no money or property
of the Hotels shall be paid or used or offered, nor shall Tenant or Manager directly or indirectly use or offer, consent or agree
to use or offer, any money or property of the Hotels (i) in aid of any political party, committee or organization, (ii) in
aid of any corporation, joint stock or other association organized or maintained for political purposes, (iii) in aid of any
candidate for political office or nomination for such office, (iv) in connection with any election, (v) for any political
purpose whatever, or (vi) for the reimbursement or indemnification of any person for any money or property so used.

 

11.34     
Single Agreement. The parties hereto acknowledge and agree that this Agreement and the Other Management Agreements
are intended to constitute, and shall constitute, a single transaction.

 

11.35     
REIT Qualification. Manager shall not take any action which would cause Landlord’s rental income from Tenant
under the Lease for the Hotels to fail to qualify as “rents from real property” pursuant to Sections 856(d)(8)(B) and
856(d)(9) of the Code.

 

11.36      Further
Compliance With Section 856(d) of the Code. Manager represents that, as of the Effective Date, it is an “eligible
independent contractor” as defined under Section 856(d)(9)(A) of the Code, and further agrees that it shall maintain
such status except to the extent events outside of Manager’s control may affect Manager’s independent
contractor status. Landlord, Manager and Tenant agree to cooperate in good faith to the purpose and effect that Manager
retain such status. This covenant shall apply for so long as one or more of the Hotels are owned by Landlord (or a successor
or permitted assignee) and leased to Tenant (or a successor or a permitted assignee) as part of an ownership structure that
is subject to REIT tax requirements. Without limiting the foregoing, Manager shall do each of the foregoing:

 

    60

     

    

 

A.           Manager
shall exercise its powers, privileges, responsibilities and obligations under this Agreement (and related documents) so as to
cause each Hotel to qualify as a “qualified lodging facility” pursuant to Section 856(d)(9)(D) of the Code. In furtherance
of the foregoing, Manager shall comply with any regulations or other administrative guidance now or hereafter existing with respect
to qualification as an “eligible independent contractor” under said Section 856(d)(9)(A). Without limiting any of
the foregoing, Manager shall not authorize any wagering activities to be conducted at or in connection with any Hotel and Manager
shall ensure that at least one-half of the guest rooms in each such Hotel are used on a transient basis and that no Hotel will
include amenities and facilities which are not customary for similarly situated properties.

 

B.            None
of Manager or any of its Affiliates (either individually or collectively) shall own, within the meaning of Section 856(d)(5) of
the Code, either directly or indirectly, more than thirty-five percent (35%) of the shares of SVC (whether by vote, value or number
of shares).

 

C.           To
the extent within the reasonable control of Manager and each Affiliate, neither Manager nor any Affiliate shall permit more than
thirty-five percent (35%) of the total combined voting power of Manager’s or such Affiliates outstanding stock (or thirty-five
percent (35%) of the total shares of all classes of its outstanding stock) to be owned, within the meaning of Section 856(d)(5)
of the Code, directly or indirectly, by one or more persons owning thirty-five percent (35%) or more of the outstanding stock
of SVC and Manager and its Affiliates shall otherwise comply with any regulations or other administrative guidance now or hereafter
existing under said Section 856(d)(5) of the Code with respect to such ownership limits.

 

D.            Manager,
or a person who is a “related person” within the meaning of Section 856(d)(9)(F) of the Code (a “Related
Person”), shall be actively engaged in the trade or business of operating or managing “qualified lodging facilities”
for one or more persons who are not Related Persons with respect to SVC or Tenant (“Unrelated Persons”). Manager
or such Related Person shall derive at least ten percent (10%) of each of its revenue and profit from operating or managing “qualified
operating facilities” within the meaning of Section 856(d)(9)(D) of the Code for Unrelated Persons and shall comply with
any regulations or other administrative guidance now or hereafter existing under Section 856(d)(9) of the Code with respect to
the amount of hotel management business that needs to be conducted with Unrelated Persons in order for Manager to qualify as an
 “eligible independent contractor” under said Section 856(d)(9).

 

11.37      Adverse
Regulatory Event. In the event of an Adverse Regulatory Event arising from or in connection with this Agreement, Tenant
and Manager shall work together in good faith to amend this Agreement to eliminate the impact of such Adverse
Regulatory Effect. For purposes of this Agreement, the term “Adverse Regulatory Effect” means any time
that a law, statute, ordinance, code, rule or regulation imposes upon Tenant (or could imposes upon Tenant in Tenant’s
reasonable opinion), any material threat to either Landlord’s or Landlord’s Affiliate’s status as a
 “real estate investment trust” under the Code or to the treatment of amounts paid to Landlord as “rents
from real property” under Section 856(d) of the Code. Each of Manager and Tenant shall inform the other of any Adverse
Regulatory Event of which it is aware and which it believes likely to impair compliance of any of the Hotels with respect to
the aforementioned sections of the Code.

 

    61

     

    

 

11.38     
Commercial Leases. For so long as one or more of the Hotels are owned by Landlord and leased to Tenant as part of
an ownership structure that is subject to REIT tax requirements, Manager agrees that Manager shall not enter into any sublease
with respect to any Hotel (or any part thereof) without first providing Landlord with a copy thereof. Landlord shall have twenty
(20) days from the date of its receipt of such proposed sublease to give written notice to Manager indicating whether such sublease
would, in Landlord’s reasonable judgment, provide for a rental to be paid by the sublessee thereunder based (or considered
to be based), in whole or in part, on the income or profits derived by the business activities of the sublessee, or any other formula,
such that any portion of the rent payable under the sublease would fail to qualify as “rents from real property” within
the meaning of Section 856(d) of the Code, or any similar or successor provisions thereto. If Landlord provides timely notice of
its determination that such proposed sublease would provide for such a rental then Manager will not enter into such proposed sublease.
If Landlord shall fail to give Manager such written notice within such twenty (20) day period, Landlord shall be estopped from
claiming that such sublease violates the terms of this Section 11.38.

 

11.39     
Waiver of Jury Trial. In the event there occurs a Dispute, or an aspect of a Dispute, which under the Rules must
be referred to a court for determination, each of Tenant and Manager hereby absolutely, irrevocably and unconditionally waive trial
by jury in connection with any litigation, action, suit or proceeding relating to the resolution of such Dispute. With respect
to any Hotel located in the State of California, the foregoing provisions of this Section 11.39 constitute the written consent
of Tenant and Manager to waive their right to a jury trial, as contemplated by CCP 631(d)(2) and either party may submit the provisions
of this Section 11.39 to the applicable court or judicial body to evidence such consent of the parties.

 

11.40     
Waiver of Consequential, Incidental, Special & Punitive Damages. Tenant and Manager each absolutely, irrevocably
and unconditionally waives the right to claim or receive consequential, incidental, special or punitive damages in any litigation
arising out of or in connection with this Agreement or any other agreement or document, the relationships of the parties or any
actions or omissions in connection with any of the foregoing. The provisions of this Section 11.40 survive any Termination.

 

11.41     
Equity Interests in Tenant. Tenant represents and warrants that Exhibit E contains a list of all of the
direct and indirect owners of Tenant, excluding any public shareholders of SVC. Tenant represents, warrants, and will ensure throughout
the Term, that neither Tenant nor any of its Affiliates nor any other Person that directly or indirectly owns, has an ownership
interest in, or controls Tenant or any of its Affiliates, is a Restricted Person; provided, however, that nothing
in this sentence shall apply to any public shareholder of SVC.

 

11.42      No
Rights of Third Parties. This Agreement does not give any rights or benefits to any Person that is not a party to this
Agreement, except as provided in this Agreement. To the extent that any Affiliate of Manager or other Person is
expressly identified as having particular rights or benefits under this Agreement, such Person is entitled to enforce those
rights and enjoy those benefits in accordance with this Agreement. The provisions of this Section 11.42 survive any
Termination.

 

    62

     

    

 

11.43     
Intentionally Deleted.

 

11.44     
Non-Hotel Marketing Activities by Tenant. The performance of each Hotel depends on an exclusive brand affiliation
with Manager and its Affiliates, and Manager has no obligation to allow Tenant or any third party to use any portion of such Hotel
for any activities relating to the marketing, sale or operation of any Vacation Club Products developed, marketed, sold or operated
by Tenant or any third party except, if approved by Manager, Vacation Club Products operated under the “Marriott Vacation
Club,” “Grand Residences by Marriott,” “Pulse,” or Ritz Carlton brands or such other brands as Manager
or its Affiliates may license in the future to Marriott Vacations Worldwide or its Affiliates (or their permitted successors or
assigns).

 

11.45     
Single Agreement; Integration. It is expressly acknowledged and agreed by Manager and
Tenant that the underlying terms and conditions of this Agreement, the Pooling Agreement, the Marriott Guaranty Agreement and each
and every other document and agreement entered into in connection herewith or therewith and/or contemplated hereby or thereby have
been negotiated by the parties as a single integrated transaction.

 

11.46     
Prior Management Agreement. For the avoidance of doubt, the Prior Management Agreement
shall continue to govern the rights and obligations of the parties with respect to any period prior to the Effective Date, and
this Agreement shall govern the rights and obligations of the parties with respect to any period from and after the Effective Date.

 

ARTICLE XII

 

DEFINITION OF TERMS

 

12.01     
Definition of Terms. The following terms when used in this Agreement and the Addenda attached hereto shall have the
meanings indicated:

 

“AAA”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Above-Property
Programs & Services” shall have the meaning ascribed to such term in Section 1.03.B hereof.

 

“Accounting
Period” shall mean a calendar month. Manager, in its discretion, may change the Accounting Period to such other period
that Manager implements for the System.

 

“Accounting
Period Statement” shall have the meaning ascribed to such term in Section 4.01.A hereof.

 

“Addenda”
or “Addendum” shall mean any addendum attached hereto from time to time.

 

“Additional
Manager Advances” shall mean advances by Manager under Sections 3.02.C, 4.01.E, 4.03.D, 4.05.A and 5.07.D hereof.

 

    63

     

    

 

“Additional
Marketing Programs” shall have the meaning ascribed to such term in Section 1.03.D hereof.

 

“Additional
Marriott Advances” shall mean Additional Marriott Advances under the Pooling Agreement, and if the Pooling Agreement
does not apply to any Hotel, then the portion of such Additional Marriott Advances determined to be allocable to such Hotel in
accordance with the Pooling Agreement.

 

“Additional
Working Capital” shall have the meaning ascribed to such term in Section 4.05.A hereof.

 

“Adverse Regulatory
Effect” shall have the meaning ascribed to such term in Section 11.37 hereof.

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control
with such Person. For purposes of this definition, the term “control” (including the terms “controlling,”
 “controlled by” and “under common control with”) of a Person means the possession, directly or indirectly,
of the power: (i) to vote fifty percent (50%) or more of the voting stock or equity interests of such Person; or (ii) to
direct or cause the direction of the management and policies of such Person, whether through the ownership of voting stock or equity
interests, by contract or otherwise.

 

“Aggregate
Amount Funded” shall have the meaning set forth in the Marriott Guaranty Agreement.

 

“Aggregate
Tenant’s Priority” shall have the meaning set forth in the Pooling Agreement.

 

“Agreement”
shall have the meaning ascribed to such term in the Preamble, as the same may be amended, modified or supplemented from time to
time.

 

“Annual Operating
Projection” shall have the meaning ascribed to such term in Section 4.04 hereof.

 

“Annual Operating
Statement” shall have the meaning ascribed to such term in Section 4.01.C.

 

“Arbitration”
shall mean the process described in Section 11.23.A hereof.

 

“Arbitration
Award” shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Available
Funds” shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Award”
shall have the meaning ascribed to such term in the Lease.

 

“Base
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to two percent (2%)
of Gross Revenues for such Fiscal Year or portion thereof.

 

    64

     

    

 

“Buildings”
shall have the meaning ascribed to such term in Section A of the Recitals.

 

“Business
Day” shall mean any day other than Saturday, Sunday, or any other day on which banking institutions in the Commonwealth
of Massachusetts or the State of Maryland are authorized by law or executive action to close.

 

“Capital Addition”
shall have the meaning ascribed to such term in Section 5.08.A hereof.

 

“Central Office
Services” shall have the meaning ascribed to such term in Exhibit B.

 

“Chain Services”
shall have the meaning ascribed to such term in Section 1.03.C.

 

“Claims”
shall have the meaning ascribed to such term in Section 11.24 hereof.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Condemnation”
shall mean, with respect to any Hotel, (a) the exercise of any governmental power with respect to such Hotel or any interest
therein, whether by legal proceedings or otherwise, by a Condemnor of its power of condemnation, (b) a voluntary sale or transfer
of any Hotel or any interest therein, to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation
are pending, or (c) a taking or voluntary conveyance of any Hotel or any interest therein, or right accruing thereto or use
thereof, as the result or in settlement of any Condemnation or other eminent domain proceeding affecting any Hotel or any interest
therein, whether or not the same shall have actually been commenced.

 

“Condemnor”
shall mean any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

“Controlling
Interest” shall mean (i) if the Person is a corporation, the right to exercise, directly or indirectly, more than
fifty percent (50%) of the voting rights attributable to the shares of such Person (through ownership of such shares or by contract),
or (ii) if the Person is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction
of the business, management or policies of such Person.

 

“Corporate
Transfer” shall have the meaning ascribed to such term in Section 10.01.A hereof.

 

“CY Tenant”
shall mean HPT CY TRS, Inc., a Maryland corporation.

 

“Deduction”
shall have the meaning ascribed to such term in the definition of Operating Profit. Deductions shall not include (i) payments
with respect to items for which Manager has given an indemnity, to the extent of such indemnity, (ii) payments with respect
to items for which Manager has agreed to be liable at its own cost and expense herein, (iii) any item specifically stated
not to be a Deduction herein, and (iv) any item for which Manager or any Affiliate has agreed to be liable (other than at
the cost and expense of Tenant or any Affiliate) under the terms of any Incidental Document or any other agreement between Manager
or any Affiliate and Tenant or any Affiliate.

 

    65

     

    

 

“Disbursement
Rate” shall have the meaning ascribed to such term in the Lease.

 

“Disputes”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Effective
Date” shall have the meaning ascribed to such term in the Preamble.

 

“Emergency
Funding” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Employee
Claims” shall mean any claims by any Hotel employee or governmental or quasi governmental entity against Tenant or Manager
with respect to the employment of Hotel employees, including claims that (i) are resolved by litigation or by settlement;
(ii) involve allegations that any employment related contracts affecting the Hotel employees have been breached; or (iii) involve
allegations that one or more Employment Laws has been violated. “Employee Claims” exclude claims for workers’
compensation benefits or for unemployment benefits.

 

“Employment
Laws” shall mean any Legal Requirements relating to employment, conditions of employment, benefits, compensation or termination
of employment, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Workers Adjustment
and Retraining Act, the Occupational Safety and Health Act, the Immigration Reform and Control Act of 1986, the Polygraph Protection
Act of 1988 and the Americans With Disabilities Act of 1990.

 

“Environmental
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Environmental
Laws” shall have the meaning ascribed to such term in Section 11.08.B hereof.

 

“Environmental
Notice” shall have the meaning ascribed to such term in Section 11.08.A hereof.

 

“Environmental
Obligation” shall have the meaning ascribed to such term in Section 11.08.A hereof.

 

“Essex House”
shall mean Essex House Condominium Corporation, a Delaware corporation.

 

“Event of
Default” shall mean any Tenant Event of Default or Manager Event of Default, as the context may require.

 

“Execution
Date” shall have the meaning ascribed to such term in the Preamble.

 

“Existing
CC&Rs” shall have the meaning ascribed to such term in Section 8.04.A hereof.

 

“Exit Hotel”
shall mean a Hotel designated as a property to be sold in accordance with the terms of the Exit Hotel Agreement.

 

    66

     

    

 

“Exit Hotel
Agreement” shall mean that certain Amended and Restated Exit Hotel Agreement, dated as of the Execution Date but to
be effective as of the Effective Date, by and among, inter alia, Landlord, HPTCY Landlord, SVC, Tenant, CY Tenant,
Manager and Marriott, as the same may be amended, modified or supplemented from time to time.

 

“Expert”
means the expert or experts selected in accordance with Section 11.23.B hereof.

 

“Extraordinary
Event” shall mean any of the following events, regardless of the location or duration of the events: acts of nature;
fires and explosions; acts of war, armed conflict or other hostile action; civil war, rebellion, revolution, insurrection or usurpation
of sovereign power; riots or other civil unrest; terrorism; sabotage; chemical or biological events; nuclear events; epidemics
and disease related events; bombing; strikes, lockouts or other labor disturbances; embargoes or blockades; shortage of critical
materials or supplies; action or inaction of governmental authorities that has a material adverse effect on Marriott, Landlord,
Tenant or Manager; or any other events beyond the reasonable control of Marriott, Landlord, Tenant or Manager, excluding general
economic or market conditions that are not caused by any of the events described in this definition.

 

“FF&E”
shall mean furniture, fixtures and equipment, including without limitation: furnishings, fixtures, decorative items, signage, audio-visual
equipment, kitchen equipment and appliances, cabinetry, laundry equipment, housekeeping equipment, telecommunications systems,
security systems and front desk and back-of-the house computer equipment; provided, however, that the term “FF&E”
shall not include Fixed Asset Supplies or Software.

 

“FF&E
Termination” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Finance
Date” shall mean the date of the closing of any proposed Mortgage.

 

“First Incentive
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to forty percent (40%)
of Operating Profit remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (5) for such Fiscal
Year or portion thereof.

 

“Fiscal Year”
shall mean (i) a calendar year (which is sometimes called a “full” Fiscal Year in this Agreement); (ii) any
partial Fiscal Year between the Effective Date and the first full Fiscal Year; and (iii) the partial Fiscal Year, if any,
in which a Termination occurs. Manager may modify the meaning of “Fiscal Year” if it changes its fiscal year, and if
so will adjust the reporting and accounting procedures under this Agreement, but the adjustment will not alter the Term or reduce
the distributions of Operating Profit or other payments due under this Agreement; provided, however, that for so
long as the Pooling Agreement is in effect, Manager’s Fiscal Year shall not change unless conforming changes are made to
the Fiscal Year applicable to all Portfolio Properties then subject to the Pooling Agreement.

 

“Fixed Asset
Supplies” shall mean items included within “Operating Equipment” under the Uniform System of Accounts that
may be consumed in the operation of the Hotels or are not capitalized, including, but not limited to, linen, china, glassware,
tableware, uniforms, and similar items used in the operation of the Hotels.

 

    67 

     

    

 

“Foreclosure”
shall mean any exercise of remedies available to a Mortgagee upon a default under a Mortgage that results or may result in a transfer
of title to, control of, or possession of the applicable Hotel, including (i) transfer by judicial foreclosure; (ii) transfer
by deed in lieu of foreclosure; (iii) appointment of an administrator, receiver, trustee or liquidator; (iv) transfer
of ownership or control of Tenant (for example, by exercise of a stock pledge); (v) transfer resulting from an order given
in a bankruptcy, reorganization, insolvency or similar proceeding; (vi) if Tenant leases such Hotel, an assignment, novation
or termination of Tenant’s interest in the lease; or (vii) transfer through any other judicial or non-judicial exercise
of Mortgagee’s remedies.

 

“Franchise
Agreement” means, with respect to each Hotel, any franchise agreement entered into with respect to such Hotel by and
between Marriott and Tenant, from and after the date hereof, and in accordance with the terms hereof, as the same may be amended,
modified or supplemented from time to time.

 

“Franchise
Conversion” shall have the meaning ascribed to such term in Section 5.07.D hereof.

 

“Franchisor”
shall have the meaning ascribed to such term in the applicable Franchise Agreement.

 

“Future CC&Rs”
shall have the meaning ascribed to such term in Section 8.04.A hereof.

 

“GAAP”
shall mean generally accepted accounting principles, consistently applied.

 

“Government
Agencies” shall mean any court, agency, authority, board (including, without limitation, environmental protection, planning
and zoning), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental or quasi-governmental
unit of the United States or the State or any county or any political subdivision of any of the foregoing, whether now or hereafter
in existence, having jurisdiction over Tenant or the Hotels operated thereon.

 

“Gross
Revenues” shall mean for any period with respect to each Hotel, all revenues and receipts of every kind derived
from operating such Hotel and all departments and parts thereof during such period, including, but not limited to: income
(from both cash and credit transactions) after deductions for bad debts and discounts for prompt cash payments and refunds
from rental of Guest Rooms and other spaces at the Hotels, telephone charges, stores, offices, exhibit or sales space of
every kind; license, lease and concession fees and rentals (not including gross receipts of licensees, lessees and
concessionaires); income from vending machines; income from parking; health club membership fees; food and beverage sales;
wholesale and retail sales of merchandise; service charges; and proceeds, if any, from business interruption or other loss of
income insurance; provided, however, that Gross Revenues shall not include the following: gratuities to
employees of the Hotels; federal, state or municipal excise, sales or use taxes or any other taxes collected directly from
patrons or guests or included as part of the sales price of any goods or services; proceeds from the sale of FF&E;
interest received or accrued with respect to the funds in the Reserves or the other operating accounts of the Hotels; any
refunds, rebates, discounts and credits of a similar nature, given, paid or returned in the course of obtaining Gross
Revenues or components thereof; insurance proceeds (other than proceeds from business interruption or other loss of
income insurance); Condemnation proceeds (other than for a temporary taking); or any proceeds from any Sale of a Hotel or
from the refinancing of any debt encumbering any Hotel.

 

    68 

     

    

 

“Gross Room
Revenues” shall include with respect to each Hotel, all gross revenues attributable to or payable for rental of guest
rooms at such Hotel, after deductions for bad debts and discounts for prompt cash payments and refunds from Rental of Guest Rooms,
including, without limitation, all credit transactions, whether or not collected, but excluding (i) any sales or room taxes
collected by Manager for transmittal to the appropriate taxing authority, and (ii) any revenues from sales or rentals of ancillary
goods, such as entertainment rentals, telephone income and fireplace log sales and sales from in-room service bars. Gross Room
Revenues shall also include the proceeds from any business interruption insurance applicable to loss of revenues due to the non-availability
of guest rooms and for guaranteed no-show revenue which is collected. Gross Room Revenues shall be accounted for in accordance
with the Uniform System of Accounts.

 

“Ground Lease
Rent” shall have the meaning ascribed to such term in Section 3.02.B(2) hereof.

 

“Guaranty
Term” shall have the meaning given such term in the Marriott Guaranty Agreement.

 

“Guaranty
Termination Event” means the expiration of the Guaranty Term or the termination of Marriott’s obligation to advance
funds under the Marriott Guaranty Agreement pursuant to the terms of the Marriott Guaranty Agreement.

 

“Guest Personal
Data” means any information relating to identified or identifiable actual or potential guests or customers of the Hotels
or Other Marriott Products, including contact information (such as addresses, phone numbers, email and SMS addresses), Guest Preferences,
and any other information collected from or about actual or potential guests or customers of the Hotels or Other Marriott Products
operated or licensed by Manager or its Affiliates.

 

“Guest Preferences”
means guest histories, preferences, loyalty program activity and any other related information collected from actual or potential
guests or customers of the Hotels or Other Marriott Products operated or licensed by Manager or its Affiliates through the Loyalty
Programs or other means.

 

“Guest Room”
shall mean with respect to each Hotel, a lodging unit in such Hotel.

 

“Hazardous
Substance” shall mean any substance:

 

		·	the presence of which requires or may hereafter require notification, investigation or remediation
under any federal, state or local statute, regulation, rule, ordinance, order, action or policy; or

 

		·	which is or becomes defined as a “hazardous waste,” “hazardous material”
or “hazardous substance” or “pollutant” or “contaminant” under any present or future federal,
state or local statute, regulation, rule or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. section
6901 et seq.) and the regulations promulgated thereunder; or

 

    69 

     

    

 

		·	which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic
or otherwise hazardous and is or becomes regulated by any governmental authority, agency, department, commission, board, agency
or instrumentality of the United States, any state of the United States, or any political subdivision thereof; or

 

		·	the presence of which at a Hotel causes or materially threatens to cause an unlawful nuisance upon
such Hotel or to adjacent properties or poses or materially threatens to pose a hazard to such Hotel or to the health or safety
of persons on or about such Hotel; or

 

		·	without limitation, which contains gasoline, diesel fuel or other petroleum hydrocarbons or volatile
organic compounds; or

 

		·	without limitation, which contains polychlorinated biphenyls (PCBs) or asbestos or urea formaldehyde
foam insulation; or

 

		·	without limitation, which contains or emits radioactive particles, waves or material; or

 

		·	without limitation, constitutes materials which are now or may hereafter be subject to regulation
pursuant to the Material Waste Tracking Act of 1988, or any applicable laws promulgated by any Government Agencies.

 

“Hotel”
shall mean each Site together with the Buildings and all other improvements constructed or to be constructed on such Site pursuant
to this Agreement, and all FF&E installed or located on such Site or in the Buildings, and all easements or other appurtenant
rights thereto owned by Landlord together with, for purposes of this Agreement, all office equipment, telephone equipment, motor
vehicles, and other equipment leased by Tenant as permitted hereunder and Fixed Asset Supplies at such Hotel, in each of the foregoing
instances as and when the same hereunder is subject to the terms of this Agreement.

 

“Hotel Employee
Personal Data” shall mean Personal Data relating to any Hotel employee, job applicant or temporary worker about whom
the Hotels or any Other Marriott Products operated or licensed by Manager or any of its Affiliates collect Personal Data, including
name, address, date of birth, compensation, national ID number, passport number, driver’s license number, social security
number, tax ID number or other ID number.

 

“Hotel Improvements”
means the building or buildings containing guest rooms, a lobby, restaurants, meeting rooms, administrative facilities, parking
(if located on the Site), other amenities and related facilities, and all other improvements constructed or to be constructed on
the Site under this Agreement.

 

    70 

     

    

 

“Hotel Systems”
means all audio visual systems, computer hardware and computer equipment, Software and connectivity and information resources systems
installed at the Hotels or used by Manager or its Affiliates in connection with providing Above-Property Programs & Services
to the Hotels, all of which may be upgraded or changed by Manager or its Affiliates from time to time in their sole discretion.
Examples of Hotel Systems as of the Effective Date are any property management system, point of sale system, front office, back
office and accounting management system, sales and reservations systems, timekeeping and Manager’s automated payroll systems,
telecommunications systems and food and beverage inventory systems, engineering software, and word processing and other personal
computer applications.

 

“HPTCY Landlord”
shall mean HPTCY Properties Trust, a Maryland real estate investment trust.

 

“HPTMI Hawaii”
shall mean HPTMI Hawaii, Inc., a Delaware corporation.

 

“Impositions”
shall have the meaning ascribed to such term in the Lease with the exclusions set forth in Section 7.01.B hereof.

 

“Incidental
Documents” shall mean the Portfolio Agreements and all other documents entered into by Marriott, Manager, Tenant, CY
Tenant, Landlord, HPTCY Landlord, SVC, and/or the managers under the Other Management Agreements in connection with the transactions
contemplated, inter alia, by this Agreement, the Pooling Agreement, the Renovation-Related Agreements and the Marriott
Guaranty Agreement.

 

“Index”
shall mean the Consumer Price Index for Urban Wage Earners and Clerical Workers, All-Cities, All Items 1982–1984 = 100, as
published by the Bureau of Labor Statistics or, in the event publication thereof ceases, by reference to whatever index then published
by the United States Department of Labor at that time is most nearly comparable as a measure of general changes in price levels
for urban areas, as reasonably determined by Manager and Tenant.

 

“Inflation
Index” shall mean the “Gross Domestic Product Implicit Price Deflator” issued by the United States Bureau
of Economic Analysis of the Department of Commerce, or if the Inflation Index is no longer published, any comparable substitute
index mutually agreed by Tenant and Manager published by an agency of the United States government. Any dispute about the selection
of the substitute index will be resolved by the Expert. Whenever an amount is to be “adjusted by the Inflation Index,”
or similar terminology, the adjustment will be equal to the percentage change in the Inflation Index for the month in which the
adjustment is to be made (or if the Inflation Index for that month is not available, the Inflation Index for the most recent month
that is available) as compared to the Inflation Index which was issued for the month in which the Effective Date occurred, unless
otherwise provided in this Agreement.

 

“Initial Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Institutional
Lender” shall mean a commercial bank, investment bank, trust company, savings bank, savings and loan association,
commercial credit corporation, life insurance company, real estate investment trust, pension trust, pension plan or pension
fund, a public or privately held fund engaged in real estate or corporate lending or both, or any other financial institution
commonly known as an institutional lender (or any Affiliate of such institution) in each case having a minimum paid up
capital (or net assets in the case of a pension fund) of $200,000,000, as adjusted by the Inflation Index for the month in
which the Finance Date occurs. A Person is not an “Institutional Lender” if the Person, any of its Affiliates or
any other Person that directly or indirectly owns, has an ownership interest in, or controls the Person or any of its
Affiliates is a Restricted Person.

 

    71 

     

    

 

“Insurance
Requirements” shall mean all terms of any insurance policy required by this Agreement and all requirements of the issuer
of any such policy and all orders, rules and regulations and any other requirements of the National Board of Fire Underwriters
(or any other body exercising similar functions) binding upon the Hotels.

 

“Insurance
Retentions” shall have the meaning ascribed to such term in Exhibit D hereof.

 

“Inventories”
shall mean “Inventories” as defined in the Uniform System of Accounts, such as, but not limited to, provisions in storerooms,
refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical
supplies; stationery; and other expensed supplies and similar items.

 

“JAMS”
shall have the meaning ascribed to such term in Section 11.23.B(1) hereof.

 

“Landlord”
shall mean as of any date the landlord under the Lease as of such date.

 

“Landlord
Default” shall have the meaning ascribed to such term in Section 9.09 hereof.

 

“Landlord
Sale of a Hotel” shall be as described in the Owner Agreement.

 

“Lease”
shall mean the Amended, Restated and Consolidated Master Lease Agreement between Landlord and Tenant in effect from time to time
relating to the Hotels and other Portfolio Properties and any replacement leases of the Hotels and other Portfolio Properties by
the fee owner thereof to Tenant which provides for Landlord to fund additional capital investment as provided for under such Lease,
which Lease may be amended from time to time, without Manager’s consent, provided the same does not (a) impose any material
cost, expense or obligation upon Manager, or (b) reduce any amounts that would otherwise be payable to Manager hereunder,
or (c) otherwise be expected to interfere with the operation and maintenance of the Hotels or Manager’s obligations
hereunder. Tenant shall provide Manager a copy of any amendment following execution.

 

“Lease Term”
shall have the meaning ascribed to “Term” under the Lease.

 

“Lease Year”
shall mean each Fiscal Year with the initial Lease Year commencing on the commencement of the Lease term and ending on the Friday
closest to December 31.

 

    72 

     

    

 

“Legal
Requirements” shall mean, with respect to each Hotel, all federal, state, county, municipal and other governmental
statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions affecting such Hotel or the
maintenance, construction, alteration or operation thereof, whether now or hereafter enacted or in existence, including,
without limitation, (a) all permits, licenses, authorizations, certificates and regulations necessary to operate such
Hotels, and (b) all covenants, agreements, restrictions and encumbrances contained in any instruments at any time in
force affecting such Hotels which either (i) do not require the approval of Manager, or (ii) have been approved by
Manager as required hereby, including those which may (A) require material repairs, modifications or alterations in or
to such Hotels or (B) in any way materially and adversely affect the use and enjoyment thereof, but excluding any
requirements arising as a result of Landlord’s status as a real estate investment trust, and (c) all valid and
lawful requirements of courts and other government agencies or authorities pertaining to reporting, licensing, permitting,
investigation, remediation and removal of underground improvements (including, without limitation, treatment or storage
tanks, or water, gas or oil wells), or emissions, discharges, releases or threatened releases of Hazardous
Substances, chemical substances, pesticides, petroleum or petroleum products, pollutants, contaminants or hazardous or toxic
substances, materials or wastes whether solid, liquid or gaseous in nature, into the environment, or relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances,
underground improvements (including, without limitation, treatment or storage tanks, or water, gas or oil wells), or
pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, liquid of gaseous in
nature.

 

“License”
shall mean any license, permit, decree, act, order, authorization or other approval or instrument which is necessary in order to
operate each Hotel in accordance with Legal Requirements and pursuant to System Standards and otherwise in accordance with this
Agreement.

 

“Life Safety
Event” shall mean the occurrence of one or more of the following at a Hotel: (a) an event that presents an imminent threat
to the health and/or safety of persons or property on or about such Hotel; or (b) any other event that materially or adversely
impacts such Hotel and for which the failure to take timely and appropriate remedial action may subject Manager, Landlord, Tenant,
their Affiliates or any of their respective directors, managers, officers or employees to civil or criminal liability (other than
de minimis civil fines or fees).

 

“Loyalty Programs”
shall mean loyalty, recognition, affinity and other programs designed to promote stays at, or usage of, the Hotels and other hotels
operated or franchised by Manager or its Affiliates, and any similar, complementary or successor programs, as they may exist from
time to time. As of the Effective Date, the Loyalty Programs include the “Marriott Bonvoy” program, and various programs
sponsored by airlines, credit card and other companies.

 

“Management
Fees” shall mean, collectively, the Base Management Fee, the First Incentive Management Fee and the Second Incentive
Management Fee.

 

“Manager”
shall have the meaning ascribed to such term in the Preamble hereto or shall mean any successor or permitted assign, as applicable.

 

“Manager Default”
shall have the meaning ascribed to such term in Section 9.01 hereof.

 

“Manager Event
of Default” shall have the meaning ascribed to such term in Section 9.01 hereof.

 

“Manager Funding
Termination Event” shall have the meaning ascribed to such term in Section 3.02.C hereof.

 

“Marketing
Fund Activities” shall have the meaning ascribed to such term in Section 1.04.A hereof.

 

    73 

     

    

 

“Marketing
Fund Contribution” shall have the meaning ascribed to such term in Section 1.04.B hereof.

 

“Marriott”
shall mean Marriott International, Inc., a Delaware corporation, and its permitted successors and assigns.

 

“Marriott
Companies” shall mean Manager, Marriott, and any Affiliate of Manager or Marriott.

 

“Marriott
Guaranty Advances” shall mean advances under the Marriott Guaranty Agreement allocated to pay a portion of Tenant’s
Priority (as more particularly set forth in the Marriott Guaranty Agreement and subject to any applicable cap stated therein) with
respect to the Hotels.

 

“Marriott
Guaranty Agreement” shall mean that certain Marriott Guaranty Agreement, dated as of the Execution Date but to be effective
as of the Effective Date, by and among Marriott, Tenant and CY Tenant, as the same may be supplemented, amended or modified from
time to time, which such guaranty is personal to Tenant and to any Affiliate of SVC or Tenant that may succeed Tenant under this
Agreement.

 

“MBS Systems”
shall have the meaning ascribed to such term in Section 1.03.E hereof.

 

“MI Trademark”
means (i) the names and marks “TownePlace Suites” and “TownePlace Suites by Marriott”; (ii) the “TownePlace
Suites” logo; (iii) any word, name, device, symbol, logo, slogan, design, brand, service mark, Trade Name, other distinctive
feature, or indicia of origin (including marks, program names, property-specific hotel name, property-specific logo, and restaurant,
spa and other outlet names), in each case used at or in connection with any Hotel; (iv) all local language versions of the foregoing;
and (v) any combination of the foregoing; in each case, whether registered or unregistered, and whether or not such term contains
the “TownePlace Suites” or “TownePlace Suites by Marriott” mark, that is used or registered by Manager
or its Affiliates, or by reason of extent of usage is associated with hotels in the System. The MI Trademarks may be changed or
supplemented from time to time.

 

“Minimum Rent”
shall, for each Hotel, for any period, mean the amount of Minimum Rent allocable to such Hotel which accrues under the Lease for
such period.

 

“Mortgage”
shall mean any mortgage, deed of trust or security document encumbering a Hotel, the Hotel Improvements or the Site.

 

“Mortgagee”
shall mean the holder of any Mortgage.

 

“Officer’s
Certificate” shall mean a certificate executed by a vice president of Manager which certifies that with respect to the
Annual Operating Statement delivered under Section 4.01.C(2) and the annual accounting delivered under Section 4.01.D(1) hereof,
that the accompanying statement or accounting has been properly prepared in accordance with GAAP and fairly presents the financial
operations of the Hotels.

 

    74 

     

    

 

“Operating
Loss” shall mean, with respect to each Hotel, a negative Operating Profit for such Hotel.

 

“Operating
Profit” shall mean, with respect to each Hotel, the excess of Gross Revenues over the following deductions, but excluding
(i) payments with respect to items for which Manager has given an indemnity, to the extent of such indemnity, (ii) payments
with respect to items for which Manager has agreed to be liable at its own cost and expense herein, (iii) any item specifically
stated not to be a Deduction herein, and (iv) any item for which Manager or any Affiliate has agreed to be liable (other than
at the cost and expense of Tenant or any Affiliate) under the terms of any Incidental Document or any other agreement between Manager
or any Affiliate and Tenant or any Affiliate (“Deductions”) incurred by Manager in accordance with the terms
of this Agreement, on behalf of Tenant, in operating the Hotel:

 

1.                 
the cost of sales, including, without limitation, compensation, fringe benefits, payroll taxes and other costs related to
Hotel employees (the foregoing costs shall not include salaries and other employee costs of executive personnel of Manager who
do not work at the Hotel on a regular basis; except that the foregoing costs shall include the allocable portion of the salary
and other employee costs of any general manager or other supervisory personnel assigned to a “cluster” of hotels which
includes the Hotel);

 

2.                 
departmental expenses incurred at departments within the Hotel; administrative and general expenses; the cost of marketing
incurred by the Hotel; advertising and business promotion incurred by the Hotel; heat, light, and power; computer line charges;
and routine repairs, maintenance and minor alterations treated as Deductions under Section 5.02;

 

3                    the
cost of Inventories and Fixed Asset Supplies consumed in the operation of the Hotel;

 

4.                  
a reasonable reserve for uncollectible accounts receivable as determined by Manager;

 

5.                  
all costs and fees of independent professionals or other third parties who are retained by Manager to perform services required
or permitted hereunder;

 

6.                  
all costs and fees of technical consultants and operational experts who are retained or employed by Manager and/or Affiliates
of Manager for specialized services (including, without limitation, quality assurance inspectors) and the cost of attendance by
employees of the Hotel at training and manpower development programs sponsored by Manager;

 

7.                  
the System Fee;

 

8.                  
insurance costs and expenses as provided in Section 6.01 and Exhibit D hereof;

 

    75 

     

    

 

9.                  
taxes, if any, payable by or assessed against Manager related to this Agreement or to Manager’s operation of the Hotel
(exclusive of Manager’s income taxes) and all Impositions;

 

10.                
transfers to the Hotel’s Reserves required pursuant to Section 5.03.C hereof;

 

11.                
the Hotel’s share of the charges for Above-Property Programs & Services as more fully set forth in Section 1.03
hereof;

 

12.                
the costs of commercially reasonable efforts of causing the Hotel to be in compliance with each and every provision of the
Lease (regardless of whether or not such compliance is a requirement of this Agreement);

 

13.                
such other costs and expenses incurred by Manager as are specifically provided for elsewhere in this Agreement or are otherwise
reasonably necessary for the proper and efficient operation of the Hotel; and

 

14.                
such other costs and expenses paid to Landlord or Tenant pursuant to the Lease or this Agreement, if such costs and expenses
would have been a Deduction if paid directly by Manager to a third person in respect of the Hotel.

 

The term “Deductions”
shall not include (a) debt service payments pursuant to any Mortgage, and (b) payments pursuant to equipment leases or
other forms of financing obtained by Tenant for the FF&E located in or connected with a Hotel, both of which shall be paid
or caused to be paid by Tenant from its own funds, the Reserve to the extent permitted hereunder, or from funds provided by Landlord
under the Lease.

 

The term “Deductions”
shall not include (a) Rent payable under the Lease, (b) any reimbursement to Manager for advances Manager makes with
respect to a Hotel as permitted hereunder, and (c) the Management Fees for any Hotel.

 

“Other Environmental
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Other Management
Agreements” shall mean those certain Second Amended and Restated Management Agreements and/or Management Agreement(s)
(as applicable), dated as of the Execution Date but to be effective as of the Effective Date, by and between Manager or an Affiliate
and Tenant or an Affiliate with respect to the Portfolio Properties other than the Hotels, as the same may be supplemented, amended
or modified from time to time.

 

“Other Marriott
Products” means any lodging products, Vacation Club Products, residential products (such as single family homes or multi-unit
apartment buildings or individual units within such buildings), restaurants, and other products and business operations of any
type, using any brand name available to Manager or its Affiliates (including any brand listed in Exhibit F and any future
brands owned or developed by Manager or its Affiliates) or not using any brand name.

 

“Overdue Rate”
shall have the meaning ascribed to such term in the Lease.

 

    76 

     

    

 

“Owner Agreement”
shall mean that certain (i) Second Amended and Restated Owner Agreement, dated as of the Execution Date but to be effective as
of the Effective Date, by and among, inter alia, Landlord, Tenant and Manager, (ii) Owner Agreement, dated as of
the Execution Date but to be effective as of the Effective Date, by and among SVC, HPTCY Landlord, CY Tenant and Courtyard Management
Corporation, a Delaware corporation, and/or (iii) Owner Agreement, dated as of the Execution Date but to be effective as of the
Effective Date, by and among HPTMI Hawaii, Tenant and Essex House, and as the same may be supplemented, amended or modified from
time to time.

 

“Person”
shall mean any individual or entity, and the heirs, executors, administrators, legal representatives, successors and assigns of
such individual or entity where the context so admits.

 

“Personal
Data” shall mean any information relating to an identified or identifiable natural person, and includes Guest Personal
Data and Hotel Employee Personal Data, but excludes any Personal Data that is unrelated to the Hotels, the Portfolio Agreements,
any Other Marriott Products operated or licensed by Manager or its Affiliates, or Manager or its Affiliates.

 

“PIP”
shall mean Property Improvement Plan.

 

“Pooling
Agreement” shall mean that certain Amended and Restated Pooling Agreement, dated as of the Execution Date but to be
effective as of the Effective Date, by and among, inter alia, Manager, Marriott, Tenant and CY Tenant, under which
the Gross Revenues, Working Capital, and Reserves of the Hotels are pooled with Gross Revenues, Working Capital and Reserves of
the other Portfolio Properties, as the same may be supplemented, amended, or modified from time to time.

 

“Portfolio
Agreements” shall mean, collectively, all of the agreements effective as of the Effective Date by and among, inter 
alia, Marriott, Landlord, HPTCY Landlord, SVC, Manager, Tenant and CY Tenant, as applicable, pertaining to the operation
of the Portfolio Properties, including without limitation, this Agreement, the Other Management Agreements, the Owner Agreement,
the Exit Hotel Agreement, the Pooling Agreement, the Marriott Guaranty Agreement and the Security Deposit Agreement.

 

“Portfolio
Properties” shall mean, as of any date, the Hotels subject to the Pooling Agreement together with the other properties
whose Gross Revenues, Working Capital and Reserves are as of such date pooled with the Gross Revenues, Working Capital and Reserves
of the Hotels under the Pooling Agreement.

 

“Post-Guaranty
Termination Threshold” shall mean, with respect to a Hotel and only after the occurrence of a Guaranty Termination Event,
an amount equal to eighty percent (80%) of Tenant’s Priority with respect to such Hotel for any Accounting Period.

 

“Prime Rate”
shall mean the “prime rate” of interest announced from time to time in the “Money Rates” section of the
Wall Street Journal (Eastern Edition).

 

“Prior Management
Agreement” shall have the meaning ascribed to such term in Section B of the Recitals.

 

    77 

     

    

 

“Privacy Shield”
shall mean the “EU U.S. and Swiss U.S. Privacy Shield Frameworks” developed by the U.S. Department of Commerce, the
European Commission and the Swiss Confederation, including the “Privacy Shield Principles and Supplemental Principles”
(the “Privacy Shield Principles”) available at https://www.privacyshield.gov/EU-US-Framework.

 

“Privacy Shield
Data” shall mean data in any form about an identified or identifiable individual received by the Marriott US Entities
in the United States of America from a Person in the European Economic Area or Switzerland pursuant to the Marriott US Entities’
Privacy Shield certification.

 

“Privacy Shield
Principles” shall have the meaning ascribed to such term in the definition of Privacy Shield.

 

“Program Services”
shall have the meaning ascribed to such term in Section 1.04.D hereof.

 

“Program Services
Contribution” shall mean the amount charged by Manager to the Hotels for Program Services.

 

“Property
Insurance Premiums” shall have the meaning ascribed to such term in Exhibit D hereof.

 

“Proprietary
Information” shall mean (a) all computer software and accompanying documentation (including all future upgrades,
enhancements, additions, substitutions and modifications thereof), other than computer software which is commercially available,
which are used by Tenant or Manager in connection with the property management system, any Reservation System and all future electronic
systems developed by Tenant or Manager for use in any Hotel, (b) all manuals, brochures and directives used by Tenant or Manager
at any Hotel regarding the procedures and techniques to be used in operating any such Hotel, (c) customer lists, and (d) employee
records which must remain confidential either under Legal Requirements or under reasonable corporate policies of Tenant or Manager;
provided, however, that “Proprietary Information” shall not include any software, manuals, brochures
or directives issued by Marriott, as Franchisor to Tenant, as franchisee, under any Franchise Agreement.

 

“Prorated
Portions” shall have the meaning ascribed to such term in Section 4.01.A hereof.

 

“Prospectus”
shall have the meaning ascribed to such term in Section 11.09.B hereof.

 

“PSF”
shall have the meaning ascribed to such term in Section 1.04.D hereof.

 

“Qualified
Mortgage” shall have the meaning ascribed to such term in Section 8.02.A hereof.

 

“Reimburseable
Advances” shall mean the amounts paid or payable with respect to Section 3.02.B(4) hereof.

 

“Related Person”
shall have the meaning ascribed to such term in Section 11.36.D hereof.

 

    78 

     

    

 

“Renewal Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Renovations”
shall mean the renovation and improvement work to certain Portfolio Properties pursuant to the Renovation-Related Agreements.

 

“Renovation-Related
Agreements” shall mean that certain (i) Portfolio Renovation Agreement, dated as of the Execution Date but to be effective
as of the Effective Date, among, inter alia, Manager, Landlord, HPTCY Landlord, SVC, Tenant and CY Tenant, and/or
(ii) Kauai Marriott Resort Hotel & Marriott’s Kauai Resort and Beach Club Renovation Agreement, dated as of the Execution
Date but to be effective as of the Effective Date, among Essex House, HPTMI Hawaii and Tenant, as the same may be supplemented,
amended or modified from time to time.

 

“Rent”
shall mean, for any period, for each Hotel, Minimum Rent and any additional rent allocated to such Hotel and accrued under the
Lease for such Hotel for such period, provided the same does not exceed, in each instance, the corresponding amount of Tenant’s
Priority with respect to each such Hotel.

 

“Reservation
System” means the worldwide central reservations for the System. As of the Effective Date, the Reservation System includes
systems and services that capture and process hotel reservations from central sources such as toll-free telephone networks, the
Marriott.com internet site, global distribution systems, and participation in international reservations associations in which
Manager or its Affiliates is a member.

 

“Reserve”
shall have the meaning ascribed to such term in Section 5.03.B hereof.

 

“Reserve Estimate”
shall have the meaning ascribed to such term in Section 5.04 hereof.

 

“Restricted
Person” shall mean a Person identified by any government or legal authority as a Person with whom or which Manager or
its Affiliates are prohibited or restricted from transacting business, including any Person (i) on the US Treasury Department’s
Office of Foreign Assets Control List of Specially Designated Nationals and Blocked Persons, under resolutions or sanctions related
lists maintained by the United Nations Security Council, or under the EU Consolidated Financial Sanctions; (ii) directly or
indirectly 10% or more owned by any Person identified in clause (i); or (iii) ordinarily resident, incorporated, or located
in any country or territory subject to comprehensive US or EU sanctions, or owned or controlled by, or acting on behalf of, the
government of any such country or territory.

 

“Rules”
shall have the meaning ascribed to such term in Section 11.23.A hereof.

 

“Sale of a
Hotel” shall mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary,
of Tenant’s leasehold title to a Hotel and related property. For purposes of this Agreement, a Sale of a Hotel shall also
include a lease (or sublease) of all or substantially all of Tenant’s leasehold interest in a Hotel and any sale, assignment,
transfer or other disposition, for value or otherwise, voluntary or involuntary, in a single transaction or a series of transactions,
of the Controlling Interest in Tenant, but shall not include any conveyance which results in SVC or an SVC Affiliate holding a
Controlling Interest in such Tenant, Landlord or immediate parent of such Tenant.

 

    79 

     

    

 

“SEC”
shall mean the United States Securities Exchange Commission.

 

“Second Incentive
Management Fee” shall mean, with respect to each Fiscal Year or portion thereof, an amount equal to forty percent (40%)
of Operating Profit remaining after deducting amounts paid or payable in respect of Sections 3.02.B(1) through (7) hereof.

 

“Section 11.08
Costs” shall have the meaning ascribed to such term in Section 11.08.C hereof.

 

“Security
Deposit” shall mean the security deposit in the aggregate original amount of Sixty-Four Million Seven Hundred Thousand
Dollars ($64,700,000), held by Tenant pursuant to the terms of the Security Deposit Agreement.

 

“Security
Deposit Advances” shall mean advances made pursuant to the terms of the Security Deposit Agreement.

 

“Security
Deposit Agreement” shall mean that certain Amended and Restated Security Deposit Agreement, dated as of the Execution
Date but to be effective as of the Effective Date, by and among, inter alia, Marriott, Manager, Tenant and CY Tenant,
as the same may be supplemented, amended or modified from time to time.

 

“Security
Deposit Replenishment” shall mean the amounts paid or payable in respect
of Section 3.02.B(7) to the replenishment of the Security Deposit to the original
amount of Sixty-Four Million Seven Hundred Thousand Dollars ($64,700,000), as such amount may be adjusted from time to time pursuant
to the Security Deposit Agreement.

 

“Security
Incident” means any incident leading to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure
of, or access to, Personal Data transmitted, stored or otherwise processed.

 

“Site”
shall have the meaning ascribed to such term in Section A of the Recitals.

 

“SNDA”
shall have the meaning ascribed to such term in Section 8.03.A hereof.

 

“Software”
means all computer software and accompanying documentation (including all future upgrades, enhancements, additions, substitutions
and modifications), other than computer software that is generally commercially available, used by Manager or its Affiliates in
connection with the services, systems and programs provided to the Hotels or the System.

 

“Specially
Designated National or Blocked Person” shall mean (a) a person designated by the U.S. Department of Treasury’s
Office of Foreign Assets Control, or other governmental entity, from time to time as a “specially designated national or
blocked person” or similar status, (b) a person described in Section 1 of U.S. Executive Order 13224 issued on
September 23, 2001, or (c) a person otherwise identified by government or legal authority as a person with whom Manager or
its Affiliates are prohibited from transacting business. Currently, a listing of such designations and the text of the Executive
Order are published under the internet website address www.ustreas.gov/offices/enforcement/ofac.

 

    80 

     

    

 

“State”
shall mean, with respect to each Hotel, the state in which such Hotel is located.

 

“Subsequent
Tenant” shall mean any Person that acquires title to, control of, or possession of a Hotel at or through a Foreclosure
(together with any successors or assigns), including any (i) Mortgagee; (ii) purchaser or lessee of a Hotel from Mortgagee;
or (iii) purchaser of a Hotel at Foreclosure.

 

“Sum Due Marriott”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Sum Due Tenant”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“SVC”
shall mean Service Properties Trust, a Maryland real estate investment trust, and its successors and permitted assigns.

 

“System”
shall mean all hotels located in the United States and Canada which are operated by Manager or its Affiliate(s) under the Trade
Name(s) listed on the Addenda.

 

“System Fee”
shall mean, with respect to each Hotel, during any Fiscal Year, an amount equal to five percent (5%) of Gross Room Revenues of
such Hotel.

 

“System Standards”
shall mean one or more (as the context requires) of the following: (i) operational standards (for example, services to guests,
quality of food and beverages, cleanliness, staffing and employee compensation and benefits, compliance policies and procedures,
Chain Services, Loyalty Programs and other similar programs); (ii) physical standards (for example, quality of the Hotel Improvements,
FF&E and Fixed Asset Supplies, and frequency of FF&E replacements); and (iii) technology standards (for example, those
relating to the Hotel Systems and other information technology). These standards include (x) those generally prevailing or
in the process of being implemented at other hotels in the System on a fair and consistent basis with other hotels in the System,
including all services and facilities in connection therewith that are customary and usual at comparable hotels in the System;
provided, however, that if the market area or the physical peculiarities of the Hotels warrant(s) it, in the reasonable judgment
of Manager, then a deviation from such standards shall be permitted; and (y) those standards Manager may specify for certain
System hotel types (for example, resort, convention or casino) on a consistent basis for all System hotels of such hotel type.

 

“Tenant”
shall have the meaning ascribed to such term in the Preamble or shall mean any successor or permitted assignee, as applicable.

 

“Tenant Advances”
shall have the meaning ascribed to such term in Section 3.02.B(4) hereof.

 

“Tenant Default”
shall have the meaning ascribed to such term in Sections 9.06 and 9.09 hereof.

 

“Tenant Event
of Default” shall have the meaning ascribed to such term in Section 9.06 hereof.

 

    81 

     

    

 

“Tenant Operating
Loss Advance” shall have the meaning ascribed to such term in Section 4.01.E hereof.

 

“Tenant Working
Capital Advances” shall mean the aggregate of all funds remitted by Tenant to Manager in order to fund Additional Working
Capital under Section 4.05 hereof, or pursuant to the Pooling Agreement to the extent allocable to the Hotels.

 

“Tenant’s
Priority” shall mean, for each Hotel, for each full Fiscal Year, an amount equal to the amount set forth on the applicable
Addenda, or a pro rata portion thereof in any partial Fiscal Year; provided, however, effective on the date of (i)
each disbursement by Landlord or its Affiliate pursuant to Sections 5.1.3(b), 10.2 or 11.2 of the Lease, in each instance at the
request of or with the approval of Landlord, or (ii) Landlord’s or Tenant’s deposit into the Reserve pursuant to Section
5.07 hereof with respect to such Hotel (including, without limitation, any such deposit made in accordance with Section 2.05.B
of the applicable Renovation-Related Agreement(s)), Tenant’s Priority payable with respect to each Accounting Period for
the applicable Hotel shall be increased by an amount equal to the quotient obtained by dividing (a) eight percent (8%) times
the amounts so disbursed or deposited, by (b) twelve (12). If any disbursement or deposit is made during any Accounting Period
on a day other than the first day of an Accounting Period, the Tenant’s Priority payable for such Hotel for the immediately
following Accounting Period (after having been so increased) shall be further increased (but only for such instant Accounting
Period) by the amount by which Tenant’s Priority for the preceding Accounting Period, as adjusted for disbursement or deposit
on a per diem basis, exceeded the amount of Tenant’s Priority actually paid to Tenant for such preceding Accounting Period.
Effective on the date this Agreement is terminated with respect to a Hotel for any reason, Tenant’s Priority payable with
respect to each Accounting Period for the remaining Hotels shall be decreased by the amount of the Tenant’s Priority of
such terminated Hotel calculated as of the date such terminated Hotel is no longer subject to this Agreement. If such termination
occurs on a day other than the first day of an Accounting Period, then the Tenant’s Priority payable for the remaining Hotels
for the immediately following Accounting Period (after having been so decreased) shall be further decreased (but only for such
instant Accounting Period) by the amount by which Tenant’s Priority for the preceding Accounting Period, as adjusted for
reduction on a per diem basis, is less than the amount of Tenant’s Priority actually paid to Tenant for such preceding Accounting
Period.

 

“Tenant’s
Priority Shortfall” shall have the meaning ascribed to such term in Section 3.02.C hereof.

 

“Tenant’s
Personal Property” shall mean all motor vehicles, consumable inventories and supplies, furniture, furnishings, movable
walls and partitions, equipment and machinery and all other tangible personal property of Tenant, if any, acquired by Tenant on
and after the Effective Date and located at a Hotel or used in Tenant’s business at a Hotel, and all modifications, replacements,
alterations and additions to such personal property.

 

“Tenant’s
Termination Threshold” shall mean, with respect to a Hotel, an amount equal to eighty-five percent (85%) of Tenant’s
Priority with respect to such Hotel for any Accounting Period.

 

    82 

     

    

 

“Term”
shall have the meaning ascribed to such term in Section 2.01.A hereof.

 

“Termination”
shall mean, with respect to each Hotel, the expiration or sooner cessation of the Term with respect to such Hotel.

 

“Trade Names”
shall mean any name, whether informal (such as a fictitious or “doing business as” name) or formal (such as the full
legal name of a corporation or partnership), used to identify an entity or business.

 

“Transfer”
shall mean any sale, assignment, transfer or other disposition, for value or otherwise, voluntary or involuntary, of (i) Tenant’s
interest in the Site, Hotel Improvements or a Hotel; (ii) a lease or sublease of all or substantially all of the Site, Hotel Improvements
or a Hotel; or (iii) in a single transaction or a series of transactions, (x) the right to exercise, directly or indirectly, more
than 50% of the voting rights attributable to the ownership interests of Tenant (through ownership of such interests or by contract);
or (y) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of Tenant.

 

“Uniform System
of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition, 2006, as published
by the American Hotel & Lodging Educational Institute, as revised from time to time to the extent such revision has been or
is in the process of being generally implemented within the System.

 

“Uninsured
Costs” shall have the meaning ascribed to such term in Section 6.02.E hereof.

 

“Unrelated
Persons” shall have the meaning ascribed to such term in Section 11.36.D hereof.

 

“Unsuitable
for Its Permitted Use” shall mean, with respect to a Hotel, a state or condition of such Hotel such that (a) following
any damage or destruction involving such Hotel, such Hotel cannot be operated in the good faith judgment of Manager on a commercially
practicable basis and it cannot reasonably be expected to be restored to substantially the same condition as existed immediately
before such damage or destruction and otherwise as required under Section 6.02.D hereof, within nine (9) months following such
damage or destruction or such shorter period of time as to which business interruption insurance is available to cover Rent and
other costs related to the Hotel following such damage or destruction, or (b) as the result of a partial taking by Condemnation,
such Hotel cannot be operated, in the good faith judgment of Manager on a commercially practicable basis in light of then existing
circumstances.

 

“Vacation
Club Products” shall mean timeshare, fractional, interval, vacation club, destination club, vacation membership, private
membership club, private residence club, and points club products, programs and services and shall be broadly construed to include
other forms of products, programs and services wherein purchasers acquire an ownership interest, use right or other entitlement
to use certain determinable holiday villa or apartment units and associated facilities on a periodic basis and pay for such ownership
interest, use right or other entitlement in advance.

 

“Working
Capital” shall mean, with respect to each Hotel, funds that are used in the day-to-day operation of the business
of such Hotel, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, amounts
deposited, in operating bank accounts, receivables, amounts deposited in payroll accounts, prepaid expenses and funds
required to maintain Inventories, less accounts payable and accrued current liabilities.

 

[SIGNATURES BEGIN ON THE FOLLOWING PAGE]

 

    83 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed under seal as of the Execution Date.

 

	 	 	 	TENANT:
		 	 	 
	WITNESS:	 	 	HPT TRS MRP, Inc., a Maryland corporation
	 	 	 	 
	/s/ John M. Steiner	 	By:	/s/ John G. Murray
	Print Name: John M. Steiner 	 	Name:  	John G. Murray
	 	 	Title:	President

 

[Signature Page to Second Amended and Restated
Management Agreement – TownePlace Suites]

 

     

     

    

 

	 	 	 	MANAGER:
	 	 	 	 
	WITNESS:	 	 	TOWNEPLACE MANAGEMENT, LLC, a 
	 	 	 	Delaware limited liability company
	 	 	 	 
	/s/ Tara Jackson	 	By:	/s/ Julie Bowen
	 Print Name: Tara Jackson	 	 Name:  	Julie Bowen 
	 	 	 Title:	Authorized Signatory

 

[Signature Page to Second Amended and Restated
Management Agreement – TownePlace Suites]

 

     

     

    

 

 

EXHIBIT A

 

THE SITES

 

 

	Unit Number	Brand	Hotel	State
	64-5A1	TPS	TownePlace Suites Newport News	VA
	64-5A2	TPS	TownePlace Suites Chantilly	VA
	64-5A4	TPS	TownePlace Suites Richmond Northwest	VA
	64-5A8	TPS	TownePlace Suites Atlanta Norcross	GA
	64-5A9	TPS	TownePlace Suites Atlanta Northlake	GA
	64-5AE	TPS	TownePlace Suites Chicago West Dundee	IL
	64-5AG	TPS	TownePlace Suites Virginia Beach	VA
	64-5AK	TPS	TownePlace Suites Detroit Novi	MI
	64-5AL	TPS	TownePlace Suites Falls Church	VA
	64-5AW	TPS	TownePlace Suites Phoenix Scottsdale	AZ
	64-5AX	TPS	TownePlace Suites Boston Danvers	MA
	64-5BF	TPS	TownePlace Suites Seattle Renton	WA

 

     

     

    

 

EXHIBIT B

 

Central
Office Services

 

“Central Office
Services” means the following activities (other than Chain Services) that are provided on a central or regional basis
to hotels in the System:

 

1.       Executive
Supervision. Executive supervision is currently done by individuals holding the title of “Executive Vice President”
or above, and at the continental division level by individuals holding a title of “Chief Operating Officer” or above.
In the future executive supervision may be done by individuals holding comparable positions of authority but with different titles.

 

2.       Corporate
Planning & Policy. Policy making and planning for Marriott International, Inc. and its Affiliates as a whole or at the
continental division level, including development of operating procedures, but excluding any policy making or planning function
related to an area that is a Chain Service or direct Deduction.

 

3.       Corporate
Finance. Corporate finance, including corporate treasury, financial planning and analysis and corporate accounting, excluding
accounting services provided to the hotels as part of Chain Services or the MBS Systems.

 

4.       Corporate
Human Resources. Corporate personnel providing strategic and executive supervision for human resources activities applicable
to Marriott International, Inc. and its Affiliates as a whole.

 

5.       Certain
Legal Services. Legal services performed either in-house or by outside counsel to (i) draft manuals, policies or guidelines
to be used for the System; and (ii) represent Manager and its Affiliates on issues relating to the relationship between Tenant
and Manager and its Affiliates, unless the Expert directs Tenant to pay the costs of any legal services.

 

6.       Trademarks.
Trademark protection relating to the MI Trademarks, which are used generally by the System.

 

7.       Product
Research & Development. Product research and development and the development of brand standards, excluding product research
and development related to an area that is reimbursable as a Chain Service or a direct Deduction such as product research and development
for sales and marketing.

 

     

     

    

 

EXHIBIT C

 

FRANCHISE REQUIREMENTS

 

To obtain a franchise for the applicable
Hotel, Tenant must:

 

		1.	deliver to the applicable Franchisor a franchise application, together with the then-current application
fee being charged to System franchisees at least ninety (90) days prior to the proposed date of the Franchise Conversion (if such
Franchisor does not agree to grant the franchise to Tenant, then Franchisor will refund the application fee, less $10,000);

 

		2.	execute the then-current form of franchise and related agreements, which franchise agreement will
(a) contain the standard forms for new franchised System hotels as of the date of the Franchise Conversion, including the then-current
fees and charges, except that the term of such franchise agreement may be adjusted in Franchisor’s sole discretion to the
remaining Initial Term or remaining Renewal Term (as the case may be), and (b) include a PIP to address any renovation necessary
to comply with Franchisor’s then-current Standards;

 

		3.	meet the then-current criteria for a franchisee of the hotel brand to which the Franchise Conversion
pertains, as determined by Franchisor in its sole discretion;

 

		4.	deliver to Franchisor all requested information and representations regarding Tenant’s corporate
organization, authority, and ownership as well as the financial information of the proposed guarantor of the franchise agreement
obligations;

 

		5.	retain a management company consented to by Franchisor if Franchisor determines that Tenant is
not qualified to operate the Hotel;

 

		6.	pay Franchisor’s reasonable outside counsel costs related to the Franchise Conversion and
the franchise agreement;

 

		7.	make, or cause the applicable management company to make, offers of employment to sufficient numbers
of employees at the Hotel to avoid the occurrence of a “closing” under the WARN Act or similar state law and provide
Manager with all other information requested by Manager regarding offers and conditions of employment to such employees; and

 

		8.	agree to be bound by, or pay any breakage fees for, all ancillary agreements between Manager and
any other parties with respect to the Hotel or executed in connection with this Agreement, including any licensing agreements,
cost sharing agreements, and cluster revenue agreements.

 

     

     

    

 

EXHIBIT D

 

INSURANCE

 

6.01       Insurance.

 

A.           Property
Insurance.

 

1.             
Required Coverages. Tenant will procure and maintain the following insurance from the Effective Date:

 

(a)              
Property insurance (and, if applicable, builders risk insurance), including boiler and machinery coverage, on the Hotel
buildings and contents against loss or damage by risks covered by an “all risk of physical loss” form. This coverage,
to the extent available at commercially reasonable rates and terms, will be for not less than 100% of the replacement cost of the
Hotel, less a reasonable deductible and subject to commercially reasonable sub-limits, including a waiver of coinsurance provision,
and landscape improvements coverage for not less than 100% of the replacement cost or $5,000,000, whichever is greater;

 

(b)              
Earthquake insurance and windstorm insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a)
and if the Hotel is located in whole or in part in an earthquake or windstorm prone zone, as applicable, as determined by the appropriate
government authority or insurer. Coverage for these hazards, to the extent available at commercially reasonable rates and terms,
will be for not less than the probable maximum loss of the Hotel (or the aggregate probable maximum loss if insured under a blanket
program) less a reasonable deductible;

 

(c)              
Flood insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a) and if the
Hotel is located in whole or in part within an area identified by the insurer as having a special flood hazard. Coverage for this
hazard, to the extent available at commercially reasonable rates and terms, will be for not less than twenty-five percent (25%)
of the replacement cost of the Hotel, less a reasonable deductible. In no event will flood insurance coverage be less than the
maximum amount available under the National Flood Insurance Program (or successor program) for this coverage;

 

(d)              
Terrorism insurance, to the extent excluded or sub-limited from the insurance under Section 6.01.A(1)(a). Coverage
for this hazard, to the extent available at commercially reasonable rates and terms, will be for not less than one hundred percent
(100%) of the replacement cost of the Hotel, less a reasonable deductible;

 

(e)              
Business interruption insurance caused by any occurrence covered by the insurance described in Sections 6.01.A(1)(a) through
(d). This coverage will include, to the extent available at commercially reasonable rates and terms:

 

(i)                 at
least two years’ loss of profits, rental income, necessary continuing expenses and any amounts that would be payable to
Manager as the Management Fee or any other amounts payable to Manager under this Agreement if the loss had not occurred;

 

     

     

    

 

(ii)             
at least ninety (90) days ordinary payroll expenses;

 

(iii)           
at least three hundred sixty-five (365) days of an extended period of indemnity; and

 

(iv)            
at least one hundred eighty (180) days contingent business interruption.

 

Manager may make claims directly to the
insurer for any management fees or other amounts payable to Manager under this Agreement. Tenant and Manager agree that the amount
to be paid to Manager for any claim covered by the insurance described in this Section 6.01.A(1)(e) with respect to this Agreement
will be calculated using the figures for Gross Revenues, and Operating Profit accepted by the insurance company or an independent
third-party business interruption accounting expert selected by Tenant and Manager. If Tenant procures the business interruption
insurance, Tenant will consult with Manager regarding the submission of this claim and Tenant will not settle this claim without
Manager’s approval; and

 

(f)               
Such other property insurance as is customarily required by Manager at similar hotels.

 

Manager will
procure and maintain the insurance in Sections 6.01.A(1)(a) through (f) only if (i) Tenant makes
a written request to Manager at least 60 days before either the Effective Date or the next renewal date of Manager’s property
insurance program; (ii) the Hotel meets the then-current insurability criteria under Manager’s insurance program;
and (iii) Manager approves the request in its sole discretion.

 

2.                 
Insurer & Other Requirements; Waiver; & Participation in Manager’s Program.

 

(a)              
All insurance procured under Section 6.01.A(1) will be obtained from insurance companies of recognized financial standing
reasonably acceptable to Manager. All premiums and deductibles under these policies are subject to Manager’s approval. All
premiums (net of any credits, rebates and discounts) and deductibles for insurance under these policies will be Deductions.

 

(b)              
If Tenant procures the insurance described in Section 6.01.A(1), all policies will be in the name of Tenant, with Manager
and its Affiliates named as additional insureds. If Manager procures this insurance, all policies of such insurance will be in
the name of Manager, with Tenant named as an additional insured. Any property losses will be payable to the respective parties
as their interests may appear. The documentation for each Mortgage will include a provision that proceeds of the insurance described
in Section 6.01.A(1) will be available for repair and restoration of the Hotel.

 

     

     

    

 

(c)              
If Tenant procures the insurance described in Section 6.01.A(1), Tenant will deliver to Manager certificates of insurance,
or at Manager’s request a copy of the policies, and certificates of renewal for insurance policies about to expire. All certificates
will state that the insurance will not be canceled, non-renewed or reduced without at least 30 days’ prior written notice
to the certificate holder.

 

(d)              
Tenant and Manager each waives their rights of recovery, and will cause their insurer to waive its rights of subrogation
from the other party or any of such party’s Affiliates, directors, officers, shareholders, agents and employees for loss
or damage to the Hotel, and any related interruption of business, regardless of the cause of the property or business interruption
loss. If any policy of insurance requires an endorsement to effect a waiver of subrogation, Tenant or Manager, as applicable, will
cause them to be endorsed.

 

(e)              
If Tenant is eligible to participate in Manager’s property insurance program but Tenant elects to procure the insurance
under Section 6.01.A(1), and the costs of the premiums and deductibles for coverage under Tenant’s property insurance
program are more than 10% higher than the costs of the premiums and deductibles that would have been payable under Manager’s
property insurance program, then Tenant will pay from its own funds and not as Deductions the entire amount by which such costs
under Tenant’s program exceed such costs under Manager’s program.

 

(f)               
If Manager approves Tenant’s request to have the Hotel participate in Manager’s property insurance program,
the Hotel will do so until Tenant or Manager notifies the other party of its intent to discontinue this participation in accordance
with the following:

 

(i)                
If Tenant chooses to exit Manager’s property insurance program and procure its own property insurance, Tenant will
notify Manager at least 90 days before the next renewal date under Manager’s property insurance program (which is currently
April 1st of each year). If Tenant does not notify Manager in time and subsequently procures its own property insurance,
Tenant will pay Manager 10% of the annual premium under Manager’s property insurance program to cover the fixed costs incurred
by Manager for the placement of these coverages. If Tenant chooses to exit Manager’s property insurance program before the
end of a coverage year Tenant will pay Manager (i) the 10% charge; and (ii) the prorated portion of the premiums of Manager’s
property insurance program relating to the period before the date on which Manager approves Tenant’s replacement property
insurance coverage. For the policies under Sections 6.01.A(1)(b) through (f), if the premium is fully earned then no portion of
the premium will be refunded to Tenant. If the premium is not fully earned, any paid but unearned portion of the premium will be
prorated as of the date on which Manager receives from Tenant certificates of insurance evidencing insurance coverage that complies
with this Section 6.01. Tenant will pay all amounts under this Section 6.01.A(2)(f)(i) from its own funds and not as
Deductions within 10 days after Manager’s request. If Tenant fails to do so, Manager may deduct such amounts from amounts
otherwise to be distributed to Tenant without affecting Manager’s other rights and remedies under this Agreement. If Tenant
exits Manager’s property insurance program and later wishes to participate again, the Hotel will again be included if Tenant
makes a written request at least 60 days before the next renewal date of Manager’s property insurance program and Manager
approves the request in its sole discretion.

 

     

     

    

 

(ii)             
If Tenant procures the property insurance for the Hotel, Manager will pay Tenant the amount of all reasonable insurance
premiums as Deductions at the same time that Manager makes interim payments to Tenant under Section 4.01 (collectively, the
 “Property Insurance Premiums”). These payments will be calculated by prorating the full Fiscal Year budgeted
amount (or the actual amount, if available) of Property Insurance Premiums equally over twelve (12) Accounting Periods. Tenant
will provide Manager with evidence of Tenant’s payment of the Property Insurance Premiums, and the receipt of any credits,
rebates and discounts, within five days after Manager’s request. For each Fiscal Year, Manager will reconcile interim Property
Insurance Premium payments with the actual amount for the entire Fiscal Year, and Tenant and Manager will make any necessary adjustments
following Tenant’s receipt of each Accounting Period Statement or Annual Operating Statement, as applicable. Manager will
only be required to pay Property Insurance Premiums to the extent of available Gross Revenues. Tenant will pay all premiums under
insurance policies that it procures before any fine, penalty or interest is incurred.

 

(iii)           
If Manager chooses to remove the Hotel from Manager’s property insurance program, Manager will notify Tenant at least
90 days before the next renewal date and Tenant will procure insurance for the Hotel as required under Section 6.01 effective
as of the expiration date of the then-current coverage. Tenant may later participate in Manager’s property insurance
program again if Tenant makes a request at least 60 days before Tenant desires the new policy to become effective and Manager approves
the request in its sole discretion.

 

3.                 
Claims. If the Hotel is damaged by any casualty and the Hotel participates in Manager’s property insurance
program under this Section 6.01, Manager will process, adjust and settle the property damage claim with the insurance carriers.
Tenant will sign, promptly and without condition, all documents necessary for Manager to process, adjust and settle the claim.
If the Hotel does not participate in Manager’s property insurance program, Tenant will process, adjust and settle the property
damage claim with the insurance carriers, subject to Section 6.01.A(1)(e), and Tenant will sign promptly and without condition
all documents necessary for Manager to process, adjust and settle Manager’s and its Affiliates’ portion of the claim
attributable to their business interruption interests.

 

B.           Operational Insurance.

 

1.                 
Coverages. Manager will procure and maintain the following insurance from the Effective Date:

 

(a)              
Commercial general liability insurance against claims for bodily injury, death and property damage occurring in conjunction
with Hotel operations, and automobile liability insurance on vehicles operated in conjunction with the Hotel, with a combined single
limit for each occurrence of at least $50,000,000;

 

(b)              
Workers’ compensation coverage at least as may be required under Legal Requirements and employer’s liability
insurance of at least $1,000,000 per accident/disease, in each case covering Manager’s employees at the Hotel;

 

     

     

    

 

(c)              
Fidelity coverage of at least $2,000,000 covering Manager’s employees at the Hotel;

 

(d)              Employment practices liability insurance for claims against Manager and, if Tenant is named as a co-defendant with Manager,
for claims against Tenant, in each case arising out of Manager’s employment practices, to the extent available at commercially
reasonable rates and terms, of at least $1,000,000; and

 

(e)              
Such other insurance as, and in amounts that, Manager reasonably determines for protection against claims, liabilities and
losses relating to the operation of the Hotel.

 

2.                 
Insurance Retentions, Requirements, Costs & Reserve.

 

(a)              
Insurance procured under Section 6.01.B(1) may include Insurance Retentions. “Insurance Retentions”
means deductibles or risk retention levels that are not in excess of the per occurrence limit for any loss or reserve established
by Manager for the Hotel. This limit will be substantially similar to the limits for similar hotels participating in the blanket
insurance programs.

 

(b)              
All insurance procured under Section 6.01.B(1) will be in the name of Manager. The insurance procured in accordance
with Section 6.01.B(1) will name Tenant, and any Mortgagees specified by Tenant in writing, as additional insureds.

 

(c)              
At Tenant’s request, Manager will deliver to Tenant certificates of insurance evidencing the insurance coverages under
Section 6.01.B(1)(a) and any renewals. All certificates will, to the extent obtainable, state that the insurance will not
be canceled or reduced without at least 30 days’ prior written notice to the certificate holder.

 

(d)              
All premiums and costs for insurance procured and administered by Manager or its Affiliates under this Section 6.01.B
will be Deductions, including any Insurance Retentions. All charges under the blanket programs will be allocated to the Hotel and
other similar participating hotels on a reasonable basis. Any losses and associated costs that are uninsured will be Deductions.

 

(e)              
Upon Termination or a Transfer, Manager will set up a reserve from Gross Revenues, in an amount determined by Manager based
on loss projections, to cover the amount of any Insurance Retentions and all other costs that may eventually have to be paid by
Tenant or Manager for pending or contingent claims, including those that arise after Termination for causes arising during the
Term. If Gross Revenues are insufficient to fund the reserve, Tenant will pay the shortfall to Manager within 10 days after receipt
of Manager’s notice. If Tenant fails to do so, Manager may withdraw the amounts from the applicable Hotel’s operating
account(s), the Reserve, Working Capital funds or any other Tenant funds under Manager’s control without affecting Manager’s
other rights and remedies under this Agreement.

 

C.           General
Conditions of Manager’s Insurance Program. Manager may obtain all insurance procured under Section 6.01.A (if
Manager procures such insurance) and Section 6.01.B through blanket insurance programs, with shared aggregate coverage
levels, sub-limits, deductibles, conditions and exclusions based on industry conditions and availability at commercially
reasonable rates and terms. The blanket program may apply to multiple insured locations, these locations may incur losses for
the same insured event and these losses may exhaust the coverage before all claims are resolved. Industry conditions may also
lead to policy terms, conditions, sub-limits or exclusions resulting in coverage levels below the amounts required in
Section 6.01.A and Section 6.01.B. These conditions and limitations are not a breach of Manager’s
obligations.

 

     

     

    

 

EXHIBIT E

 

Equity
INterests in Tenant

 

As of the Effective Date and the Execution
Date, (a) the equity interests in Tenant are and will be owned 100% by HPT TRS Inc., a Maryland corporation; (b) the equity interests
in HPT TRS Inc. are and will be owned 100% by Service Properties Trust, a Maryland real estate investment trust; and (c) the equity
interests in Service Properties Trust are and will be publicly traded.

 

     

     

    

 

EXHIBIT F

 

Brands

 

AC Hotels by Marriott

African Pride Hotels

Aloft Hotels

Autograph Collection Hotels

Autograph Collection Residences

Bulgari Hotels & Resorts

Conference Center by Marriott

Courtyard by Marriott Hotels

Delta Hotels & Resorts

EDITION Hotels

EDITION Residences

Element Hotels

Fairfield by Marriott

Fairfield Inn by Marriott

Fairfield Inn & Suites by Marriott

Four Points by Sheraton Hotels

Gaylord Hotels

Grand Residences by Marriott

Horizons by Marriott Club

JW Marriott Hotels

JW Marriott Hotels & Resorts

JW Marriott Marquis Hotels

JW Marriott Residences

Le Méridien Hotels & Resorts

Le Méridien Residences

The Luxury Collection Hotels, Resorts & Suites

The Luxury Collection Residence Club

The Luxury Collection Residences

Marriott Executive Apartments

Marriott Hotels

Marriott Hotels & Conference Centers

Marriott Hotels & Resorts

Marriott Marquis Hotels

Marriott Residences

Marriott Resorts

Marriott Suites Hotels

Marriott Vacation Club

Moxy Hotels

Protea Hotel Fire & Ice!

Protea Hotels

Renaissance ClubSport Hotels

Renaissance Hotels

 

     

     

    

 

Renaissance Residences

Residence Inn by Marriott Hotels

The Residences at The Ritz-Carlton

The Ritz-Carlton Destination Club

The Ritz-Carlton Hotels & Resorts

The Ritz-Carlton Reserve

The Ritz-Carlton Residences

Sheraton Grand Hotels & Resorts

Sheraton Hotels & Resorts

Sheraton Residences

SpringHill Suites by Marriott Hotels

St. Regis Hotels, Resorts & Suites

St. Regis Residence Club

St. Regis Residences

TownePlace Suites by Marriott Hotels

Tribute Portfolio Hotels & Resorts

W Escape

W Hotels

W Residences

Westin Hotels

Westin Hotels & Resorts

Westin Residences

 

     

     

    

 

ADDENDA

 

	Hotel/Location
	
        200 Cybernetics Way (Unit 64-5A1)

        Yorktown, VA 23693

	
        14036 Thunderbolt Place (Unit 64-5A2)

        Chantilly, VA 20151

	
        4231 Park Place Court (Unit 64-5A4)

        Glen Allen, VA 23060

	
        6640 Bay Circle (Unit 64-5A8)

        Norcross, GA 30071

	
        3300 Northlake Parkway (Unit 64-5A9)

        Atlanta, GA 30345

	
        2185 Marriott Drive (Unit 64-5AE)

        Dundee, IL 60118

	
        5757 Cleveland Street (Unit 64-5AG)

        Virginia Beach, VA 23462

	
        42600 Eleven Mile Road (Unit 64-5AK)

        Novi, MI 48375

	
        205 Hillwood Avenue (Unit 64-5AL)

        Falls Church, VA 22046

	
        10740 North 90th Street (Unit 64-5AW)

        Scottsdale, AZ 85260

	
        238 Andover Street (Unit 64-5AX)

        Danvers, Massachusetts 01923

	
        300 SW 19th Street (Unit 64-5BF)

        Renton, WA 98057

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]