Document:

Lease Termination Agree - Feb 2004

 Exhibit 10.35 
  
 LEASE TERMINATION AGREEMENT 
  

Dated: As of February 27, 2004 
  
 Summerfield Suites, Addison, Texas 
 Summerfield Suites, El Segundo, California 
 Summerfield Suites, Mt. Laurel, New Jersey 
 Summerfield Suites, Belmont, California 
 Summerfield Suites, Los Colinas (Irving), Texas 
 Sunrise Suites, Tinton Falls, New Jersey 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	 ARTICLE I TERMINATION OF LEASEHOLD
	  	1
			
	 1.1
	  	 Termination of Leasehold.
	  	1
			
	 1.2
	  	 Liquor Licenses.
	  	2
		
	 ARTICLE II CONSIDERATION
	  	2
			
	 2.1
	  	 Consideration.
	  	2
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	2
			
	 3.1
	  	 Terminating Lessor’s Representations and Warranties.
	  	2
			
	 3.2
	  	 Terminating Lessee’s Representations and Warranties.
	  	3
			
	 3.3
	  	 Definition of Terminating Lessee’s Knowledge.
	  	6
		
	 ARTICLE IV COVENANTS
	  	6
			
	 4.1
	  	 Terminating Lessee’s Covenants.
	  	6
			
	 4.2
	  	 Terminating Lessors’ Covenants.
	  	8
			
	 4.3
	  	 Covenants Regarding Employees.
	  	8
			
	 4.4
	  	 Liquor Licenses.
	  	10
			
	 4.5
	  	 Reservations, Marketing and Sales.
	  	10
			
	 4.6
	  	 Baggage.
	  	11
			
	 5.2
	  	 Conditions Precedent to the Obligations of Terminating Lessees.
	  	12
		
	 ARTICLE VI CLOSING
	  	13
			
	 6.1
	  	 Closing.
	  	13
			
	 6.2
	  	 Performance by Terminating Lessees.
	  	14
			
	 6.3
	  	 Performance by Terminating Lessors.
	  	16
			
	 6.4
	  	 Hotel Prorations and Adjustments.
	  	17
			
	 6.5
	  	 Preparation of Closing Statements.
	  	19
			
	 6.6
	  	 Closing Costs.
	  	20
			
	 6.7
	  	 Cooperation.
	  	20
			
	 6.8
	  	 Survival.
	  	21
		
	 ARTICLE VII SURVIVAL; INDEMNIFICATION
	  	21
			
	 7.1
	  	 Survival of Representations.
	  	21
			
	 7.2
	  	 Indemnity by Terminating Lessee and Wyndham.
	  	21
			
	 7.3
	  	 Indemnity by Terminating Lessors.
	  	22
			
	 7.4
	  	 Defense of Claims.
	  	22
			
	 7.5
	  	 Survival.
	  	22
			
	 7.6
	  	 Breach or condition failure known at Closing.
	  	22

  

 -i- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 ARTICLE VIII INSPECTION
	  	23
			
	 8.1
	  	 Inspection.
	  	23
			
	 8.2
	  	 Terminating Lessors’ Agreement to Indemnify Regarding Inspections.
	  	23
			
	 8.3
	  	 Property Conveyed “AS IS”.
	  	23
			
	 8.4
	  	 Title Update
	  	25
		
	 ARTICLE IX TERMINATION
	  	25
			
	 9.1
	  	 Termination.
	  	25
			
	 9.2
	  	 No Further Force or Effect
	  	26
		
	 ARTICLE X MISCELLANEOUS
	  	26
			
	 10.1
	  	 Entire Agreement.
	  	26
			
	 10.2
	  	 Binding.
	  	26
			
	 10.3
	  	 Notice
	  	26
			
	 10.4
	  	 Time.
	  	27
			
	 10.5
	  	 Governing Law; Venue.
	  	27
			
	 10.6
	  	 Currency.
	  	27
			
	 10.7
	  	 Section Headings.
	  	27
			
	 10.8
	  	 Obligations.
	  	27
			
	 10.9
	  	 Business Days.
	  	27
			
	 10.10
	  	 No Recordation.
	  	28
			
	 10.11
	  	 Multiple Counterparts.
	  	28
			
	 10.12
	  	 Severability.
	  	28
			
	 10.13
	  	 Waivers.
	  	28
			
	 10.14
	  	 Negotiations.
	  	28
			
	 10.15
	  	 No Partnership.
	  	28
			
	 10.16
	  	 Publicity.
	  	28
			
	 10.17
	  	 Specific Performance.
	  	29
			
	 10.18
	  	 Attorneys’ Fees.
	  	29
			
	 10.19
	  	 Further Assurances.
	  	29
			
	 10.20
	  	 Schedules and Exhibits.
	  	29
			
	 10.21
	  	 Bulk Sales Law.
	  	30
		
	 ARTICLE XI DEFINITIONS
	  	30
			
	 11.1
	  	 “Accommodation Agreement”
	  	30

  

 -ii- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

			
	 11.2
	  	 “Accounting”.
	  	30
			
	 11.3
	  	 “Accounts Receivable”
	  	30
			
	 11.4
	  	 “Accounts Receivable Aging Report”
	  	30
			
	 11.5
	  	 “Affiliate”
	  	30
			
	 11.6
	  	 “Agreement”
	  	30
			
	 11.7
	  	 “Assignment of Occupancy Agreements”
	  	30
			
	 11.8
	  	 “Auditor”
	  	31
			
	 11.9
	  	 “Bill of Sale and General Assignment”
	  	31
			
	 11.10
	  	 “BOA Hotels”
	  	31
			
	 11.11
	  	 “Cap Ex Work”
	  	31
			
	 11.12
	  	 “Capital Committee Approval”
	  	31
			
	 11.13
	  	 “Closing”
	  	31
			
	 11.14
	  	 “Closing Date”.
	  	31
			
	 11.15
	  	 “Closing Tranche”
	  	31
			
	 11.16
	  	 “Closing Documents”
	  	31
			
	 11.17
	  	 “Closing Statement” and “Closing Statements”
	  	31
			
	 11.18
	  	 “Cut-Off Date”.
	  	31
			
	 11.19
	  	 “Cut-Off Time”
	  	31
			
	 11.20
	  	 “Depository Accounts”
	  	31
			
	 11.21
	  	 “Effective Date”
	  	31
			
	 11.22
	  	 “Employees”
	  	31
			
	 11.23
	  	 “Employee Schedule”
	  	31
			
	 11.24
	  	 “Escrow Agent”
	  	31
			
	 11.25
	  	 “FF&E”
	  	31
			
	 11.26
	  	 “First Closing Tranche”.
	  	32
			
	 11.27
	  	 “Franchise Agreement”
	  	32
			
	 11.28
	  	 “General I”
	  	32
			
	 11.29
	  	 “General II”
	  	32
			
	 11.30
	  	 “Governmental Authority”
	  	32
			
	 11.31
	  	 “Guaranty”
	  	32
			
	 11.32
	  	 “Guaranty Termination”
	  	32
			
	 11.33
	  	 “Guest Ledger Receivables”
	  	32
			
	 11.34
	  	 “Hired Employees”
	  	32
			
	 11.35
	  	 “Hotel” and “Hotels”
	  	32

  

 -iii- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 11.36
	  	 “Hotel Parcels”
	  	32
			
	 11.37
	  	 “Lease Agreement” and “Lease Agreements”
	  	32
			
	 11.38
	  	 “Lease Master Agreement”
	  	32
			
	 11.39
	  	 “Lease Master Agreement Termination”
	  	32
			
	 11.40
	  	 “Leasehold Estate”
	  	32
			
	 11.41
	  	 “Leasehold Interests”
	  	33
			
	 11.42
	  	 “Leases”.
	  	33
			
	 11.43
	  	 “Lender Consents”.
	  	33
			
	 11.44
	  	 “Lenders”
	  	33
			
	 11.45
	  	 “Letters of Credit”
	  	33
			
	 11.46
	  	 “Liabilities”
	  	33
			
	 11.47
	  	 “Licenses”
	  	33
			
	 11.48
	  	 “Liquor License Holder”
	  	33
			
	 11.49
	  	 “Liquor Licenses”.
	  	33
			
	 11.50
	  	 “Material Adverse Effect”
	  	33
			
	 11.51
	  	 “Major Service and FF&E Contracts”.
	  	33
			
	 11.52
	  	 “Minor Service and FF&E Contracts”.
	  	33
			
	 11.53
	  	 “Nomura Hotels”
	  	34
			
	 11.54
	  	 “Occupancy Agreements”
	  	34
			
	 11.57
	  	 “Person”.
	  	34
			
	 11.58
	  	 “Potential Lease Default”
	  	34
			
	 11.59
	  	 “Prepaid Expenses and Refundable Deposits”.
	  	34
			
	 11.60
	  	 “Proceeding”
	  	34
			
	 11.61
	  	 “Proceeds”
	  	34
			
	 11.62
	  	 “Property”
	  	34
			
	 11.63
	  	 “Records”
	  	34
			
	 11.64
	  	 “Reservation Schedule”
	  	35
			
	 11.65
	  	 “Second Closing Tranche”
	  	35
			
	 11.66
	  	 “Service and FF&E Contracts”
	  	35
			
	 11.67
	  	 “Study Period”
	  	35
			
	 11.68
	  	 “Sunrise”
	  	35
			
	 11.69
	  	 “Supplies”
	  	35
			
	 11.70
	  	 “Terminating Lessee” and “Terminating Lessees”
	  	35
			
	 11.71
	  	 “Terminating Lessee Parties”
	  	35

  

 -iv- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 11.72
	  	 “Terminating Lessees Closing Documents”
	  	35
			
	 11.73
	  	 “Terminating Lessor” and “Terminating Lessors”.
	  	35
			
	 11.74
	  	 “Terminating Lessors Closing Documents”
	  	36
			
	 11.75
	  	 “Terminating Lessors Indemnified Parties”
	  	36
			
	 11.76
	  	 “Termination of Leasehold Interests”
	  	36
			
	 11.77
	  	 “Title Updates”
	  	36
			
	 11.78
	  	 “Tray Ledger”
	  	36
			
	 11.79
	  	 “Uniform System”
	  	36
			
	 11.80
	  	 “Updated Accounting”
	  	36
			
	 11.81
	  	 “WARN Act”.
	  	36
			
	 11.82
	  	 “Warranties”
	  	36
			
	 11.83
	  	 “Wyndham”
	  	36
			
	 11.84
	  	 “Wyndham Indemnified Parties”
	  	36

  

 -v- 

 TABLE OF CONTENTS 
  
 EXHIBITS: 
  
 Exhibit A-1: Description of Lease Agreements 
 Exhibit A-2: Description of Hotels 
 Exhibit A-3: Legal Description of Hotel Parcels 
 Exhibit B: Form of Termination of Leasehold
Interests 
 Exhibit C: Form of Bill of Sale and General Assignment 
 Exhibit D: Form of Assignment of Occupancy Agreements 
 Exhibit E: Form of Non-Foreign Affidavit 
 Exhibit F: Form of Accommodation Agreement 
 Exhibit G: Form of Franchise Agreement

 Exhibit G-1: Form of comfort letter pertaining to Franchise Agreement 
 Exhibit H: Intentionally Deleted 
 Exhibit I: Form of Mutual Termination and Release—Hotel License Agreement 
 Exhibit J:
Form of Mutual Termination and Release – Management Agreement 
  
 SCHEDULES: 
  
 Schedule
1.2: Liquor Licenses 
 Schedule 3.1(c): Litigation (Terminating Lessors) 
 Schedule 3.1(d): Violation of Law (Terminating Lessors) 
 Schedule 3.1(e): Approval and Consents (Terminating Lessors) 
 Schedule 3.2(d): Litigation (Terminating Lessees) 
 Schedule 3.2(f): Consents and Approvals (Terminating Lessees) 
 Schedule 3.2(g): Intentionally Deleted 
 Schedule 3.2(h): Licenses 
 Schedule 3.2(i): Intentionally Deleted 
 Schedule 3.2(j): Service and FF&E Contracts 
 Schedule 3.2(k): Occupancy Agreements 
 Schedule 3.3: List of Hotel General Managers 
 Schedule 4.1(e): Intentionally Deleted

 Schedule 4.5: Minimum Per Room Night Rates 
  

 -i- 

 LEASE TERMINATION AGREEMENT 
  
 THIS LEASE TERMINATION AGREEMENT (this “Agreement”) dated as of February27, 2004 (the “Effective
Date”) is made by and among SUMMERFIELD KPA LESSEE, L.P., a Kansas limited partnership (“Summerfield KPA”), SUMMERFIELD HOTEL LEASING COMPANY, L.P., a Kansas limited partnership (“SHLC”) and PATRIOT
AMERICAN HOSPITALITY PARTNERSHIP, a Virginia limited partnership (“PAHP”) (Summerfield KPA, SHLC and PAHP are sometimes herein collectively called “Terminating Lessees” and individually, a “Terminating
Lessee”) and INNKEEPERS SUMMERFIELD GENERAL, L.P., a Virginia limited partnership, (“General I”), INNKEEPERS SUMMERFIELD GENERAL II, L.P., a Virginia limited partnership (“General II”) and INNKEEPERS
SUNRISE TINTON FALLS, L.P., a Virginia limited partnership (“Sunrise”) (General I, General II and Sunrise sometimes herein collectively called “Terminating Lessors” and individually, a “Terminating
Lessor”), and is as follows: 
  
 W I T N E S S E T H:

  
 RECITALS: 
  
 A. Terminating Lessees and Terminating Lessors executed those certain Lease
Agreements described on Exhibit A-1 attached hereto (each, an “Original Lease Agreement” and collectively, the “Original Lease Agreements”), as amended by the Amended and Restated Lease Master
Agreement dated effective as of October 22, 1998, by and among Terminating Lessors, Terminating Lessees and the other parties named therein (the “Lease Master Agreement”) covering the hotels described on Exhibit A-2
(each, a “Hotel” and collectively, the “Hotels”) on the land more particularly described on Exhibit A-3 attached hereto and made a part hereof (the “Hotel Parcels”). The Original Lease
Agreements as amended by the Lease Master Agreement are herein collectively called the “Lease Agreements” and individually called a “Lease Agreement.” 
  
 B. Terminating Lessors have agreed to accept the termination of the Terminating Lessees’ interests (individually, a
“Leasehold Interest” and collectively, the “Leasehold Interests”) in the leasehold estates created under the Lease Agreements (individually, a “Leasehold Estate” and collectively, the
“Leasehold Estates”) pursuant to the terms of this Agreement and to take certain other actions as expressly provided in this Agreement. 
  
 ARTICLE I 
 Termination of Leasehold

  
 1.1 Termination of Leasehold. Subject to the
terms, covenants, conditions and provisions herein set forth, each Terminating Lessee agrees to terminate each Lease Agreement executed by such Terminating Lessee and all of its right, title and interest thereunder as hereinafter provided, and each
Terminating Lessor agrees, subject to the terms, covenants, 
  

 Lease Termination Agreement - Page 1 

 conditions and provisions herein set forth, to (i) accept from each Terminating Lessee the termination of such
Terminating Lessee’s leasehold interest under the Lease Agreement to which such Terminating Lessor is a party, (ii) execute and deliver a termination and release of the Lease Master Agreement and the Guaranty, respectively, and (iii) release
the Letters of Credit. 
  
 1.2 Liquor Licenses. To
the extent permitted by applicable law and requested by Terminating Lessors pursuant to Section 4.4 hereof, SFMB, Inc., a Delaware corporation (“Liquor License Holder”) agrees to assign, at no cost to Terminating
Lessors, to the applicable Terminating Lessor (or the Operator, at the Terminating Lessor’s direction) and Terminating Lessors (or the Operator, if applicable) agree to accept all right, title and interest of Liquor License Holder in and to the
existing liquor licenses held by Termination Lessees and Liquor License Holder and described on Schedule 1.2 attached hereto (the “Liquor Licenses”). 
  
 ARTICLE II 
 Consideration 
  
 2.1 Consideration.
There will be no cash consideration to be paid by Terminating Lessors to Terminating Lessees for the termination of the Lease Agreements and transfer of certain personal property as herein provided. The consideration for the transactions
contemplated by this Agreement shall be (a) the release by Terminating Lessors of any claims against and the obligations and liabilities of Terminating Lessees under the Lease Agreements, and (b) the release and return to Terminating Lessees of the
Letters of Credit. 
  
 ARTICLE III 
 Representations and Warranties 
  
 3.1 Terminating Lessor’s Representations and Warranties. Each Terminating Lessor hereby represents and warrants, as to itself only, to
Terminating Lessees that: 
  
 (a) Due
Organization, Authority. Terminating Lessor is an entity duly organized and validly existing under the laws of the state of its organization and has full right, power and authority to enter into this Agreement and to consummate all of the
transactions contemplated hereby. The execution, delivery and performance of this Agreement by Terminating Lessor has been duly authorized by all necessary partnership action on the part of Terminating Lessor and the persons executing this Agreement
and all other documents required to consummate the transactions contemplated hereby on behalf of Terminating Lessor are duly authorized to execute this Agreement and such other documents on behalf of Terminating Lessor, and are authorized to bind
Terminating Lessor. This Agreement constitutes the legal, valid and binding obligation of Terminating Lessor enforceable in accordance with its terms. 
  
 (b) No Violation. The execution and performance of this Agreement by Terminating Lessor does not, and the consummation of the
transactions contemplated by this Agreement will not violate or constitute a breach of (i) the organization or governance documents of Terminating Lessor, or (ii) to Terminating Lessor’s knowledge, any contract, permit, license, order or decree
to which Terminating Lessor is a party or by which Terminating Lessor or its assets are bound. 
  

 Lease Termination Agreement - Page 2 

 (c) No Litigation. Except as disclosed on Schedule 3.1(c) attached
hereto, as of the Effective Date, there is no pending action, suit, claim, litigation or proceeding as to which Terminating Lessor has been served with process which could reasonably be expected to adversely affect Terminating Lessor’s ability
to consummate the transactions contemplated by this Agreement, and to the knowledge of Terminating Lessor, no such proceedings are threatened. 
  
 (d) No Violation of Law. Except as disclosed on Schedule 3.1(d) attached hereto, Terminating Lessor has not received
any written notice of violation of any law from any Governmental Authority which could reasonably be expected to adversely affect Terminating Lessor’s ability to consummate the transactions contemplated by this Agreement. 
  
 (e) Approvals and Consents. Except as set forth on
Schedule 3.1(e) attached hereto, no consent or approval of any Governmental Authority or any Person not a party to this Agreement is required to be obtained by Terminating Lessor as a condition to the execution, delivery or performance
of this Agreement by Terminating Lessor or the consummation by it of the transactions contemplated hereby. 
  
 (f) Brokers. Neither Terminating Lessor nor any of its Affiliates has made any agreement with any person, or taken any action which
would cause any person, to become entitled to an agent’s, broker’s or finder’s fee or commission in connection with the transactions contemplated by this Agreement. 
  
 3.2 Terminating Lessee’s Representations and Warranties. Each Terminating Lessee hereby represents and
warrants, as to only itself, each Hotel which is leased by such Terminating Lessee, and the Leasehold Estate(s) to which it holds title, to Terminating Lessors that: 
  
 (a) Due Organization; Authority. Terminating Lessee is duly organized and validly existing under the
laws of the State of its organization and has full partnership power and authority to enter into this Agreement and to consummate all of the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Terminating
Lessee have been duly authorized by all necessary corporate and partnership action on the part of Terminating Lessee and the persons executing this Agreement and all other documents required to consummate the transactions contemplated hereby on
behalf of the Terminating Lessee are duly authorized to execute this Agreement and such other documents on behalf of the Terminating Lessee, and are authorized to bind the Terminating Lessee. This Agreement constitutes the legal, valid and binding
obligation of Terminating Lessee enforceable in accordance with its terms. 
  
 (b) United States Person. Terminating Lessee is a “United States person,” as defined by Internal Revenue Code Section 1445 and Section 7701. 
  

 Lease Termination Agreement - Page 3 

 (c) No Violation. The execution of this Agreement by Terminating Lessee does not,
and the performance by Terminating Lessee of the transactions contemplated by this Agreement will not (i) violate or constitute a breach of (A) Terminating Lessee’s organizational documents or its governing board’s authorizing resolution
or (B) to the knowledge of Terminating Lessee, any contract, permit, license, order or decree to which Terminating Lessee is a party or by which Terminating Lessee or its assets are bound or (ii) result in the imposition of a lien or encumbrance on
any assets of Terminating Lessee. 
  
 (d) No
Litigation. Except as disclosed on Schedule 3.2(d) attached hereto, there is no pending or, to the knowledge of Terminating Lessee, any threatened, action, suit, proceeding, investigation or grievance which could reasonably be
expected to adversely affect (i) any Hotel or its operations, or (ii) Terminating Lessee’s ability to consummate the transactions contemplated hereby. 
  
 (e) No Right or Option. No person, firm, corporation, or other entity has any right or option to acquire the Leasehold Estate(s),
or any part thereof, from Terminating Lessee. 
  
 (f) Consents and Approvals. Except for the Capital Committee Approval and any consents described on Schedule 3.2(f) attached hereto, no consent, approval or authorization is required from any lenders or shareholders of
Terminating Lessee and, to Terminating Lessee’s knowledge, no consent, approval, authorization or order of any court, agency or any other person not a party to this Agreement is required in order to permit Terminating Lessee to consummate the
transactions contemplated by this Agreement. 
  
 (g) Brokers. Neither Terminating Lessee nor any of its Affiliates has made any agreement with any person, or taken any action which would cause any person, to become entitled to an agent’s, broker’s or finder’s fee or
commission in connection with the transactions contemplated by this Agreement. 
  
 (h) Licenses, Permits, etc. (i)All Licenses and Liquor Licenses necessary for the lawful use, maintenance, or operation of each
Hotel as it has been used, maintained or operated have been obtained and there exists no violation under the Licenses or Liquor Licenses; (ii) a true and correct list of Licenses in effect on the date hereof is attached as Schedule
3.2(h); (iii) a true and correct list of the Liquor Licenses in effect on the date hereof is attached as Schedule 1.2; and (iv) to terminating Lessee’s knowledge, the applications submitted by Terminating Lessee to obtain
the licenses and Liquor Licenses did not contain any misrepresentations by Terminating Lessee. 
  
 (i) Leases. There are no Leases in effect at any Hotel. 
  
 (j) Service and FF&E Contracts. A complete and current list of all Major Service and FF&E
Contracts and, to Terminating Lessee’s knowledge, all Minor Service and FF&E Contracts is attached as Schedule 3.2(j). All Major Service and FF&E Contracts are in full force and effect, all payments thereunder are current
and no default 
  

 Lease Termination Agreement - Page 4 

	    	or event of default exists or has occurred (that has not been cured or waived) under any of the Major Service and FF&E Contracts, except as otherwise set forth on said Schedule.
To Terminating Lessee’s knowledge, all Minor Service and FF&E Contracts are in full force and effect, all payments thereunder are current and no default or event of default exists or has occurred (that has not been cured or waived) under
any of the Minor Service and FF&E Contracts. 

  
 (k) Occupancy Agreements. To Terminating Lessee’s knowledge, a complete and current list of all Occupancy Agreements is attached as Schedule 3.2(k) and the schedule(s) referenced in
Section 6.4(c), when delivered, will be true and correct in all material respects. 
  
 (l) No Violation. To Terminating Lessee’s knowledge, that there has been no violation of any Legal Requirements (as defined in
the Lease Agreement) affecting any Hotel. 
  
 (m)
Zoning Compliance. (A) To Terminating Lessee’s knowledge, the use, maintenance and operation of the Hotel have complied in all material respects with all zoning and use restrictions, and (B) Terminating Lessee has not received any
notices of violation of any building code or similar regulations affecting any Hotel. 
  
 (n) Financial Statements. All financial statements delivered to Terminating Lessors pursuant to the Lease Agreements accurately and
fairly reflect in all material respects the financial condition and operation of each Hotel for the period of time reflected by such statements. 
  
 (o) Notice of Condemnation. Terminating Lessee has not received, with respect to any Hotel, written notice from any governmental
authority regarding any condemnation proceedings or proceedings to widen or realign any street or highway adjacent to the Hotel (but excluding any such notice that was delivered to Terminating Lessor) and, to Terminating Lessee’s knowledge, no
such proceedings are contemplated. 
  
 (p)
Environmental Violation. To Terminating Lessee’s knowledge, there does not exist any violation of applicable environmental laws or any other environmental issue at any Hotel. 
  
 (q) No Lease Defaults. Except for the Potential Lease Defaults, to Terminating Lessee’s
knowledge (i) there exist no “Event of Default” under the Lease Agreement(s) to which it is a party (as such term is defined in the Lease Agreements), and (ii) Terminating Lessee is in material compliance with the terms of the Lease
Agreement to which it is a party. 
  
 (r)
Bankruptcy. Neither Terminating Lessee nor Wyndham has filed a petition for relief (or any other petition in bankruptcy) under the Federal Bankruptcy Code or any other present or future federal or state insolvency, bankruptcy or similar law
(all of the foregoing hereinafter collectively called “applicable Bankruptcy Law”), nor has an involuntary petition for relief been filed against Terminating Lessee or Wyndham 
  

 Lease Termination Agreement - Page 5 

	    	under any applicable Bankruptcy Law, nor has any order for relief naming Terminating Lessee or Wyndham been entered under any applicable Bankruptcy Law, nor has any composition,
rearrangement, extension, reorganization or other relief of debtors now or hereafter existing been requested or consented to by Terminating Lessee or Wyndham, and neither Terminating Lessee nor Wyndham (i) is insolvent or has made a general
assignment for the benefit of creditors or (ii) is generally not paying their debts as they become due. No corporate action has been taken for purposes of any of the foregoing. 

  
 3.3 Definition of Terminating Lessee’s Knowledge. When any
representation or warranty of any Terminating Lessee is made “to Terminating Lessee’s knowledge” or the like, such representation or warranty is made to the actual knowledge of the Hotel general managers for each Hotel as listed in
Schedule 3.3 attached hereto, the Wyndham Regional Vice President of Operations (as to the Hotel(s) in such party’s region) and the attorneys handling this transaction in the Wyndham legal department without inquiry or
investigation and without including any constructive or imputed knowledge, with the understanding and agreement that such persons shall have no personal liability under or in connection with this Agreement. 
  
 ARTICLE IV 
 Covenants 
  
 4.1 Terminating Lessee’s Covenants. Each Terminating Lessee hereby covenants and agrees with Terminating Lessors as follows, on behalf of only itself and with respect to only each Hotel leased by such Terminating Lessee:

  
 (a) Operations Pending Closing.
Between the Effective Date and the Closing Date, Terminating Lessee shall: 
  
 (i) Operate, maintain and manage the Hotel in the same manner in which the Terminating Lessee has operated, maintained and managed the Hotel prior to the Effective Date, so as to keep the Hotel in good condition,
reasonable wear and tear and damage by casualty or condemnation excepted, and so as to maintain the existing caliber of the Hotel operations conducted at the Hotel and the reasonable goodwill of all employees, guests and other customers of the
Hotel. 
  
 (ii) Maintain its books of accounts
and records in the usual, regular and ordinary manner, in accordance with the Uniform System and sound accounting principles applied on a basis consistent with the basis used in keeping its books in prior years. 
  
 (iii) Maintain in full force and effect all insurance
coverage required by the Lease Agreement. 
  
 (iv) Use and operate the Hotel in compliance with applicable laws and the requirements of any mortgage, lease, Occupancy Agreement and insurance policy affecting the Hotel. 
  

 Lease Termination Agreement - Page 6 

 (v) Order, purchase and maintain Supplies in sufficient quantities so as to maintain the
condition and appearance of the Hotel and levels of Supplies, consistent with Terminating Lessee’s prior practices (as exemplified by the Hotel’s current operations), requirements under any franchise agreements affecting the Hotels, the
overall standard of the Hotel and reasonable operating requirements. 
  
 (vi) Not diminish the quality or quantity of maintenance and upkeep services heretofore provided to the Hotel. 
  
 (vii) Promptly deliver to Terminating Lessors upon Terminating Lessors’ request such reports showing the revenue and expenses of the
Hotel and all departments thereof, together with such periodic information with respect to room reservations, Occupancy Agreements and other bookings, as Terminating Lessee customarily keeps or receives internally for its own use. 
  
 (viii) Without the prior written consent of Terminating
Lessors, which consent shall not be unreasonably withheld or delayed, not make any agreements which shall be binding upon Terminating Lessors with respect to the Hotel and cannot be terminated without penalty upon thirty (30) days notice.

  
 (b) Approvals of Third Parties. As
soon as practicable after the date hereof, Terminating Lessee will use all commercially reasonable efforts to secure, at its expense, all necessary consents, approvals and agreements of third parties that shall be required for the Terminating Lessee
to perform its obligations and to consummate the transactions contemplated hereby as set forth on Schedule 3.2(f). The third parties from whom such consents, approvals and agreements shall be sought are as set forth on Schedule
3.2(f), and include the parties that issued the Licenses, all of which the applicable Terminating Lessor will assume if permitted by applicable law, and the vendor or lessor under each Service and FF&E Contract requiring consent or
approval that any Terminating Lessor has not indicated during the Study Period that it will not assume. If a License cannot be assigned under applicable law, Terminating Lessee shall reasonably cooperate with the applicable Terminating Lessor in
connection with processing an application for a new License. Terminating Lessee will bear the costs of assigning the Licenses and Service and FF&E Contracts, to the extent assigned to Terminating Lessors pursuant to the terms hereof. 

 
 (c) Payables. Terminating Lessee shall, in the
ordinary course of business, pay or cause to be paid all liquidated liabilities and obligations with respect to the Hotel incurred through the Closing Date, including, but not limited to, all accounts payable, trade payables, rents, taxes, license
and permit fees, payments under the Service and FF&E Contracts and compensation to Employees as provided under Section 4.3(d) hereof, except to the extent that Terminating Lessors have received a credit for any such items pursuant
to Section 6.4(a) hereof. Notwithstanding the foregoing, it is understood that Terminating Lessee may postpone payment of an account payable which is the subject of a bona fide dispute or in case final bills are not rendered until
after the Closing Date; provided that such dispute does not unreasonably interfere with the operation of the Hotel. 
  

 Lease Termination Agreement - Page 7 

 (d) Responsibility for Litigation. Terminating Lessee shall be responsible for
defending and for all final awards, judgments rendered or settlements reached with respect to any litigation described on Schedule 3.2(d). 
  
 (e) Intentionally Deleted. 
  
 (f) Survival. The covenants and agreements contained in Section 4.1(c) shall survive Closing until all of such
liabilities and obligations are satisfied in full by the Terminating Lessee, notwithstanding Section 7.1 or any other provision of this Agreement. The covenants and agreements contained in Section 4.1(d) shall survive
Closing until all of such judgments have been rendered or settlements reached and any related awards or settlement amounts (with any penalties and/or interest) paid and required actions taken or ceased, notwithstanding Section 7.1 or
any other provision of this Agreement. 
  
 4.2 Terminating
Lessors’ Covenants. Terminating Lessors hereby covenant and agree with Terminating Lessee as follows: 
  
 (a) Approvals of Third Parties. As soon as practicable after the date hereof, Terminating Lessors will use all commercially
reasonable efforts to secure all necessary consents and approvals that shall be required for Terminating Lessors to perform their obligations hereunder and to consummate the transactions contemplated hereby and will otherwise use all commercially
reasonable efforts to cause the consummation of such transactions in accordance with the terms and conditions of this Agreement. In any case, the costs of obtaining such consents and approvals shall be paid by Terminating Lessors. 
  
 (b) Access to Books and Records. Terminating Lessors
shall preserve and keep, free of charge, all books, papers and records concerning the Hotel (for periods prior to the Closing Date) and the transactions contemplated hereby for a period of no less than five (5) years following the Closing Date to
the extent received by Terminating Lessors. Terminating Lessors agree to permit Terminating Lessees (and any successor to or assignee of Terminating Lessees) and their attorneys, accountants, agents and designees, access to, and the right to make
copies of, such books, papers and records from and after the Closing Date for all reasonable purposes. Any such examination shall be at the expense of Terminating Lessees, shall be performed at the place where the records of Terminating Lessors are
regularly maintained, shall be preceded by reasonable notice, and shall not unreasonably interfere with Terminating Lessors’ normal business activities. The provisions of this Section 4.2(b) shall survive for a period of five (5)
years following the Closing. 
  
 4.3 Covenants Regarding
Employees.  
  
 (a) WARN Act. To
the extent that the WARN Act (as defined below) is applicable, Terminating Lessors (or the Operator) agree to hire and continue the 
  

 Lease Termination Agreement - Page 8 

 employment of an adequate number of Employees employed at each of the Hotels such that there will not
result an employment loss at any Hotel of 50 Employees or more where such employment loss involves at least 33% of the Employees at the Hotel (excluding part-time employees in each case) (which if such events did occur would trigger the application
of the notice requirements under the Worker Adjustment and Retraining Notification Act (or similar local or state laws or regulations) (collectively, the “WARN Act”). Without limiting the generality of the foregoing, and to the
extent the WARN Act is applicable to this transaction, all Employees hired by Terminating Lessors (or the Operator) (the “Hired Employees”) will be hired with salaries or wages and benefits (including, but not limited to, health
insurance coverage) valued at eighty-five percent (85%) or more of their salary or wages and benefits existing as of the Closing Date. This covenant shall survive for a period of ninety (90) days following Closing. Each Terminating Lessee shall
deliver to Terminating Lessors a Schedule (the “Employee Schedule”), which is to be updated at Closing through the Closing Date, showing for each then-current employee of the Hotel leased by such Terminating Lessee, the
employee’s name, date of hire, position, Social Security number, wage or salary. Terminating Lessors agree to defend, indemnify and hold harmless Terminating Lessees, Wyndham and any of their respective affiliates from and against any and all
matters, claims, actions, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) relating to or arising from Terminating Lessors’ breach of its covenant set forth in this Section
4.3(a). 
  
 (b) Post-Closing
Employment. Wyndham and Terminating Lessee agree that during the six (6) months following the Closing, neither will directly or indirectly solicit (other than general published advertising) or induce any present or future employee of Terminating
Lessors or Operator to accept employment with Wyndham or with any business, operation, corporation, partnership, association, agency, or other person or entity with which Wyndham may be associated. 
  
 (c) Claims. Terminating Lessors shall be responsible
for the payment of any final award or judgment rendered, or settlement reached, with respect to any claims, demands, actions or administrative proceedings brought by any of the Hired Employees which arise out of events which occur after the Closing
Date. Terminating Lessees will be responsible for the payment of any final award or judgment rendered, or settlement reached with respect to any claims, demands, actions or administrative proceedings brought by any of the Hired Employees which arise
out of events which occurred prior to the Closing Date. 
  
 (d) Employee Compensation. Each Terminating Lessee shall pay from the Hotel operating accounts all wages and fringe benefits (including accrued vacation pay or other paid leave, sick pay, severance for
management personnel not hired by Terminating Lessors, payroll taxes and retirement and insurance benefits) of all employees of the Terminating Lessee (or its manager) rendering services at the Hotel (the “Employees”) for the period
up to and including the Closing Date. 
  

 Lease Termination Agreement - Page 9 

 (e) Survival. The terms of this Section 4.3 shall survive Closing
until fully performed notwithstanding Section 7.1. The provisions of Section 4.3(b) will not survive the termination of this Agreement. 
  
 4.4 Liquor Licenses. If allowed by applicable law, Liquor License Holder shall, as soon as possible after
Closing, initiate a transfer of its Liquor Licenses to Terminating Lessors or their designee (the “Operator”). Terminating Lessors shall cause, or shall cause Operator to, promptly execute all forms, applications and other documents
required and shall otherwise use their best efforts to effect the acquisition of such Liquor Licenses at the earliest date reasonably practicable, consistent with the laws of the state in which the Hotel is located, in order that all Liquor Licenses
may be obtained by Operator at the earliest reasonably practicable time after Closing (but the failure or inability of Terminating Lessors to obtain liquor licenses on or before Closing shall not relieve Terminating Lessors of their obligation to
proceed with Closing hereunder). Terminating Lessors shall not permit Operator to attempt to obtain the liquor licenses in any manner that would diminish, prior to the Closing, the full force and effect of the Liquor Licenses maintained by Liquor
License Holder in its operation of any restaurants, lounges and bars presently located within the Hotels. If Terminating Lessors or Operator do not obtain any such liquor licenses until after Closing, then Terminating Lessees covenant and agree that
they shall cooperate reasonably with Operator in keeping open any such liquor facilities of the Hotels between the Closing and the time when such Liquor Licenses are obtained by Operator or for a period not to exceed one hundred twenty (120) days
following the Closing Date, whichever is less, by entering into an Alcoholic Beverage Management Agreement for the continued operation of and under the Liquor Licenses with respect to the affected Hotel, in the form of Exhibit F
attached hereto and made a part hereof (the “Accommodation Agreement”). In no event shall any Terminating Lessee be required to obtain any additional liquor or alcoholic beverage licenses which it does not possess at the time of
Closing. For the purpose of this Section only, the term “Terminating Lessee” shall include the officers, directors and employees of any entity that is a Liquor License Holder and the term “Operator” shall include Terminating
Lessors. After the termination of the Accommodation Agreement, Liquor License Holder shall have the right, if the transfer of the Liquor Licenses has not yet then been consummated, to cause the Liquor Licenses to become inactive so that no alcoholic
beverages shall be served at the affected Hotel under the Liquor Licenses, but Liquor License Holder shall continue to cooperate with Operator to accomplish the transfer of the Liquor Licenses to Operator. Terminating Lessors and Operator shall
indemnify Liquor License Holder and Terminating Lessees with respect to any liability, obligation, costs, expenses (including, without limitation, attorneys’ fees and expenses), fees, fines, claims, causes of action or damages arising out of or
related to the sale or serving of alcoholic beverages at the Hotels prior to the consummation of the transfer of the Liquor Licenses to Operator. The terms of this Section shall survive the Closing until fully performed and shall not be terminated
by Section 7.1. 
  
 4.5 Reservations,
Marketing and Sales. Each Terminating Lessee shall, and shall cause its Affiliates to, continue to take guest room reservations and enter into Occupancy Agreements in the ordinary course of business in accordance with its past practices.
More specifically, without the prior consent of Terminating Lessors, not to be unreasonably withheld, delayed or conditioned, (A) no Occupancy Agreement shall be entered into, or guest or room booking accepted, relating to one or more dates after
the Effective Date, (1) at a per room night 
  

 Lease Termination Agreement - Page 10 

 rate of less than the rate specified for each Hotel in Schedule 4.5, or (2) if the Occupancy Agreement or
guest or room booking relates to one or more blocks exceeding 50 total room nights, at a per room night rate of less than 80% of then-currently published room night rates, and (B) no “trade out” agreements shall be entered into relating to
one or more dates after the Effective Date. Terminating Lessees shall continue to support all marketing and sales functions at the Hotels and promote the business of the Hotels in generally the same manner as Terminating Lessees did prior to the
execution of this Agreement. 
  
 4.6 Baggage. All
baggage or other property of patrons of the Hotels checked or left in care of any Terminating Lessee and all items in such Terminating Lessee’s “Lost and Found” will be listed in an inventory to be prepared in duplicate and signed by
Terminating Lessee’s and Terminating Lessors’ representatives on the Closing Date. Terminating Lessors will be responsible for all baggage and property listed in such inventory from, after and including the Closing Date. Each Terminating
Lessee shall be responsible for baggage and property not listed in such inventory but alleged to have been left in custody at the Hotel leased by it with respect to the period up to but not including the Closing Date, provided any such claim related
thereto is raised within ninety (90) days following the Closing Date. 
  
 ARTICLE V 
 Conditions Precedent to Closing 
  
 5.1 Conditions Precedent to the Obligations of Terminating Lessors. The obligations of Terminating Lessors to
be performed on the Closing Date shall be subject to the satisfaction on or prior to the Closing Date of all of the following conditions, except such conditions as Terminating Lessors may waive in writing: 
  
 (a) Representations and Warranties of Terminating
Lessee. Except for such breaches of the representations and warranties of Terminating Lessee made in this Agreement which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect (disregarding for
such purposes all materiality and knowledge qualifiers contained in the individual representations and warranties of the Terminating Lessees contained in this Agreement), each of the representations and warranties of the Terminating Lessees
contained in this Agreement was true and correct when made on the Effective Date and shall be true, correct and complete as of the Closing Date (or to the extent that a representation or warranty is by its terms made as of another date, then as of
such date) as though made on and as of the Closing Date. Anything herein to the contrary notwithstanding, if a Material Adverse Effect exists with respect to any Hotel, the failure of the condition precedent described herein shall apply only to such
Hotel, and Terminating Lessors shall have the right to terminate this Agreement as a result thereof as to the affected Hotel only and shall remain obligated to proceed to Closing with respect to the remaining Hotels. 
  
 (b) Performance of Terminating Lessee’s
Obligations. Each Terminating Lessee shall have performed and complied with all of its obligations under this Agreement that are to be performed or complied with by it prior to or on the Closing Date. 
  

 Lease Termination Agreement - Page 11 

 (c) No Injunctions or Restraints. No temporary, preliminary or permanent order,
decree or injunction shall have been enacted, entered, promulgated or enforced by any court of competent jurisdiction or any Governmental Authority that prevents Terminating Lessors’ consummation of the transactions contemplated by this
Agreement; provided, however, that Terminating Lessors shall use all commercially reasonable efforts to have any such order, decree or injunction vacated or reversed. 
  
 (d) Lender Consents. To the extent required by the operative loan documents, Terminating Lessors
shall have obtained the consent of Bank of America, N.A. (with respect to the BOA Hotels) and Nomura (with respect to the Nomura Hotels) (collectively with their successors and assigns, the “Lenders”) to the termination of the
Leasehold Estates contemplated by this Agreement (the “Lender Consents”). 
  
 (e) No Default. There shall exist no Event of Default under the Lease Agreements (as such term is defined therein), except for the
Potential Lease Defaults. 
  
 5.2 Conditions Precedent to
the Obligations of Terminating Lessees. The obligations of Terminating Lessees to be performed on the Closing Date shall be subject to the satisfaction on or prior to the Closing Date of all of the following conditions, except such
conditions as Terminating Lessees may waive in writing: 
  
 (a) Representations and Warranties of Terminating Lessors. Except for such breaches of the representations and warranties of Terminating Lessors made in this Agreement which, individually or in the aggregate,
could not reasonably be expected to have a material adverse effect on Terminating Lessors’ financial condition or ability to perform its obligations hereunder (disregarding for such purposes all materiality and knowledge qualifiers contained in
the individual representations and warranties of Terminating Lessors contained in this Agreement), each of the representations and warranties of Terminating Lessors contained in this Agreement was true and correct when made on the Effective Date and
shall be true, correct and complete as of the Closing Date (or to the extent that a representation or warranty is by its terms made as of another date, then as of such date) as though made on and as of the Closing Date. 
  
 (b) Performance of Terminating Lessors’
Obligations. Terminating Lessors shall have performed and complied with all of their obligations under this Agreement that are to be performed or complied with by them prior to or on the Closing Date. 
  
 (c) Lease Guaranty. At Closing, the Consolidated,
Amended and Restated Guaranty dated effective as of October 22, 1998 by and between Wyndham for the benefit of General I, General II and Sunrise (the “Guaranty”) shall be terminated and Wyndham released from all obligations
thereunder (the “Guaranty Termination”), which Guaranty Termination will be in a form reasonably satisfactory to Terminating Lessees and Termination Lessors and agreed upon by the parties hereto during the Study Period. 

 
 (d) Lease Master Agreement. At Closing, the Lease
Master Agreement shall be terminated by execution of a termination satisfactory in form and substance to 
  

 Lease Termination Agreement - Page 12 

 Terminating Lessees (the “Lease Master Agreement Termination”), which Lease Master
Agreement Termination will be in a form reasonably satisfactory to Terminating Lessees and Termination Lessors and agreed upon by the parties hereto during the Study Period. 
  
 (e) No Injunctions or Restraints. No temporary, preliminary or permanent order, decree or injunction
shall have been enacted, entered, promulgated or enforced by any court of competent jurisdiction or any Governmental Authority that prevents any Terminating Lessee’s consummation of the transactions contemplated by this Agreement;
provided, however, that each Terminating Lessee shall use all commercially reasonable efforts to have any such order, decree or injunction vacated or reversed. 
  
 (f) Lender Consent. Terminating Lessors shall have delivered to Terminating Lessee written evidence
of (i) the consent of each Lender to the transaction and actions contemplated by this Agreement, or (ii) the right of Terminating Lessors to enter into and perform this Agreement under the agreement(s) evidencing each Lender’s rights with
respect to the Hotels (which evidence shall include copies of all such agreement(s)), accompanied by an indemnification agreement in form and substance satisfactory to Terminating Lessees and executed by creditworthy entities acceptable to
Terminating Lessees, indemnifying Terminating Lessees+ with respect to Terminating Lessors’ failure to obtain the written consent of the Lenders. 
  
 ARTICLE VI 
 Closing 

 
 6.1 Closing. The closing of the transactions contemplated
hereby (the “Closing”) shall be accomplished through an escrow arrangement described as follows: 
  
 (a) The Closing shall occur in two (2) stages, with the first Closing to occur on March 1, 2004 (the “First Tranche Closing
Date”) with respect to the Sunrise Suites – Tinton Falls Hotel (the “First Closing Tranche”) and the second Closing to occur on April 1, 2004 (the “Second Tranche Closing Date”) with respect to the
balance of the Hotels (the “Second Closing Tranche”) (the First Tranche Closing Date and the Second Tranche Closing Date are sometimes individually and collectively called the “Closing Date” and the First Closing
Tranche and the Second Closing Tranche are sometimes individually and collectively called the “Closing Tranche”). On each Closing Date, Terminating Lessees shall deliver to the Escrow Agent, the Terminating Lessees Closing Documents
and Terminating Lessors shall deliver to the Escrow Agent the Terminating Lessors Closing Documents with respect to the Hotels included in the applicable Closing Tranche and such parties shall deliver any amounts to be paid to the other party
pursuant to the provisions of Section 6.4 hereof. 
  
 (b) The Closing shall be held in the offices of Locke Liddell & Sapp LLP in Dallas, Texas (or such other location as may be mutually agreed upon by Terminating Lessees and Terminating Lessors) at 2:00 p.m., CDT,
on the Closing Date. 
  

 Lease Termination Agreement - Page 13 

 6.2 Performance by Terminating Lessees. At Closing, or at such other date as specified
below, concurrently with the performance by Terminating Lessors of their obligations to be performed at the Closing: 
  
 (a) Possession of Hotel. Terminating Lessees shall surrender, quitclaim and deliver possession of the Property, subject to the
rights of transient guests of the Hotels, the rights of parties in possession under the Occupancy Agreements, and those exceptions to title listed in the Title Update, other than any title exceptions relating to the documents described in the
Termination of Leasehold Interests and in the documents listed in Section 6.2(b)(xiv) below, all of which will be released at Closing. 
  
 (b) Documents. Each Terminating Lessee (and any other party named below) shall deliver to the Escrow Agent on the Closing
Date and, where appropriate, execute and acknowledge the following documents (the “Terminating Lessees Closing Documents”) with respect to each Hotel that it leases and each Leasehold Estate owned by it: 
  
 (i) a termination agreement for each Leasehold Estate (the
“Termination of Leasehold Interests”) in substantially the form attached hereto as Exhibit B, conformed as necessary to comply with the laws of the state in which each Hotel is located (the “State”),
terminating the Leasehold Interests and any rights of the applicable Terminating Lessee or Wyndham Affiliates created thereby, and, except as expressly provided herein, releasing Terminating Lessees from all payment or other obligations and
liabilities under the Lease Agreements with respect to the Hotels and releasing, without qualification, condition or proviso, Terminating Lessees with respect to any prior defaults under the Lease Agreements with respect to the Hotels (provided that
such release shall not effect a release of any Terminating Lessee with respect to any claim of Terminating Lessors arising under this Agreement). The Terminations of Leasehold Interests shall be in sufficient form and substance to, upon recording in
the proper office(s) and/or land records, terminate any memoranda or other instruments which have been recorded against title to the Hotel Parcels or the Hotels to evidence the existence of, or Terminating Lessees’, Wyndham’s or any
Wyndham Affiliate’s interest in, the Lease Agreements; 
  
 (ii) a bill of sale and general assignment in substantially the form attached hereto as Exhibit C (the “Bill of Sale and General Assignment”), conformed as necessary to comply with the
laws of the State, conveying to Terminating Lessors or their designee(s) and providing for the assumption by such party with respect to (a) the FF&E, Supplies, Warranties, Records and, if applicable, Proceeds, (b) the Service and FF&E
Contracts described in Schedule 3.2(j); 
  
 (iii) an assignment and assumption agreement (the “Assignment of Occupancy Agreements”) in substantially the form of Exhibit D attached hereto, conveying to Terminating Lessors or their designee(s) Terminating
Lessees’ interest in the Occupancy Agreements described in Schedule 3.2(k) and providing for Terminating Lessors’ assumption of same; 
  

 Lease Termination Agreement - Page 14 

 (iv) an affidavit in the form attached hereto as Exhibit E executed by each
Terminating Lessee, stating such Terminating Lessee’s U.S. Taxpayer identification number and that Terminating Lessee is not a “foreign person” or a “foreign corporation” (as defined under the Internal Revenue Code Sections
1445 and 7701) and that Terminating Lessee is not required to withhold any portion of the Consideration under the provisions of such Act; 
  
 (v) the Accommodation Agreement executed by the Liquor License Holder and Terminating Lessors or their designee(s) in substantially the
form of Exhibit F, conformed as necessary to comply with the laws of the applicable jurisdiction, pursuant to which liquor operations of the Hotel will be continued after the Closing Date pursuant to Section 4.4 hereof;

  
 (vi) such further instruments and documents
as may be reasonably required by Terminating Lessors as are customary for similar transactions, including, but not limited to, a certified copy of a resolution of the governing board for each Terminating Lessee authorizing such Terminating Lessee to
consummate the transaction contemplated by and in accordance with this Agreement and designating those persons authorized to execute and deliver all necessary documents at Closing; 
  
 (vii) a certificate executed by each Terminating Lessee, certifying as to the truth of the matters set forth
in Section 5.1(a) as of the Closing Date and to the satisfaction of the matters set forth in Section 5.1(b) hereof; 
  
 (viii) a franchise agreement with Summerfield Hotel Company, L.P. that provides that each Hotel (other than the Hotel located in Tinton
Falls, New Jersey) will be owned by a Terminating Lessor and leased and managed by an Affiliate of either Terminating Lessors or Jeffrey H. Fisher as a “Summerfield Suites® by Wyndham” hotel, in substantially the form attached hereto as Exhibit G (the “Franchise
Agreement”) and a Reservations Agreement for the Hotel located in Tinton Falls, New Jersey; 
  
 (ix) a comfort letter with respect to the Franchise Agreement, in substantially the form of the comfort letter attached hereto and made a
part hereof as Exhibit G-1, with such changes thereto as are reasonably requested by the Lenders and reasonably acceptable to the franchisor; 
  
 (x) the Guaranty Termination; 
  
 (xi) the Lease Master Agreement Termination; 
  

 Lease Termination Agreement - Page 15 

 (xii) a document executed by Wyndham, on behalf of all Wyndham Affiliates, releasing all
current Hotel Employees retained by Terminating Lessors as employees of the Hotel on the Closing Date from any non-competition, confidentiality or similar agreements or restrictions; 
  
 (xiii) executed counterparts of the Closing Statements, together with the Employee Schedule, the Accounts
Receivable Aging Report and the Reservation Schedule, all updated to the Closing Date; and 
  
 (xiv) executed counterparts of (i) the Mutual Termination and Release - Hotel License Agreement attached hereto and made a part hereof as
Exhibit I, and (ii) Mutual Termination and Release - Management Agreement attached hereto and made a part hereof as Exhibit J. 
  
 6.3 Performance by Terminating Lessors. At Closing, or at such other date as specified below, concurrently with the performance by
Terminating Lessees of their obligations to be performed at the Closing: 
  
 (a) Documents. Each Terminating Lessor (and any other related party to the documents named below) shall deliver to the Escrow Agent on the Closing Date and where appropriate, execute and acknowledge, the
following documents for each Hotel that it currently leases to a Terminating Lessee (the “Terminating Lessors Closing Documents”): 
  
 (i) the Termination of Leasehold Interests, Bill of Sale and General Assignment, Assignment of Occupancy Agreements, Accommodation
Agreement (if applicable) and the Franchise Agreement; 
  
 (ii) such other documents as may be reasonably required by Terminating Lessees including, but not limited to, such authorization documents for Terminating Lessors and their respective general partners as Terminating Lessees shall reasonably
request, authorizing Terminating Lessors to consummate the transactions contemplated by and in accordance with this Agreement and designating those persons authorized to execute and deliver all necessary documents at Closing; 
  
 (iii) a certificate executed by Terminating Lessors
certifying to the truth of the matters set forth in Section 5.2(a) as of the Closing Date and to the satisfaction of the matters set forth in Section 5.2(b) hereof; 
  
 (iv) the Guaranty Termination; 
  
 (v) the Lease Master Agreement Termination; 
  
 (vi) executed counterparts of the Closing Statements; and

  

 Lease Termination Agreement - Page 16 

 (vii) the Letters of Credit (or evidence satisfactory to Terminating Lessees that such
Letters of Credit have been cancelled). 
  
 6.4 Hotel
Prorations and Adjustments. 
  
 (a)
General Provisions Regarding Prorations and Adjustments. The following adjustments and prorations will be computed as of the Closing Date for each of the Hotels, and the “net” amounts owing by the Terminating Lessors or the
Terminating Lessees with respect to the Hotels to the other parties shall be paid by such owing parties to the other parties on the Closing Date; provided, however, the “net” amounts will be calculated for the Hotels in the First Closing
Tranche and then for the Hotels in the Second Closing Tranche on each Closing Date. Unless otherwise stated herein, all prorations will be on an accrual basis in accordance with generally accepted accounting principles, and based on the actual
number of days in each month. All items of revenue, cost and expense of each Hotel which are receivable or payable by the applicable Terminating Lessee under the terms of the Lease Agreements with respect to the period up to and including the
Closing Date will be for the account of such Terminating Lessee; provided, however, that the Terminating Lessees shall pay at Closing the “Rent,” as defined in the Lease Agreements, payable to Terminating Lessors for the period from the
date of the last period for which Terminating Lessee paid the applicable Terminating Lessors Rent through the Closing Date (other than any “Rent” or other payment required to be paid to cure the Potential Lease Defaults); provided, however
that (a) all calculations under a Lease Agreement shall be “closed out” and calculated as of the Closing Date, so that any obligations of any Terminating Lessee under any performance standards provided for in a Lease Agreement shall be
deemed to be “zero,” (b) all curative provisions under all performance standards in a Lease Agreement shall be forgiven at Closing and no amounts relating thereto shall be included in any adjustments in or due to Terminating Lessors
pursuant to the Closing Statement or any subsequent adjustment to or replacement of the Closing Statement, and (c) all percentage rent required by the Lease Agreements (after payment of the Rent required as set forth above) shall be deemed to be
“zero” as of the Closing Date and cease as of the Closing Date. The provisions of this Section 6.4(a) shall control over any inconsistent or contrary provision of this Agreement and shall survive the Closing. All other items
of revenue, cost and expense of the Hotels will be for the account of Terminating Lessors. By way of illustration and not in any way limiting the foregoing, upon the Closing, (i) all Performance Failures (as defined in the Lease Agreements) with
respect to each Hotel, if any, and all Events of Default (as defined in the Lease Agreements) related to such Performance Failures, if any, will be extinguished or forgiven, and (ii) Terminating Lessees shall be liable for no damages, cure payments
or other remedies with respect to the Lease Agreements, including, without limitation, any Performance Failures with respect to any Hotel or Event of Default related to any such Performance Failure. 
  
 (b) Cash. Terminating Lessees shall receive a credit
as of the Closing Date in the amount of the sum of all cash which exist at the Cut-Off Time in in-house banks or in the Hotel operating accounts. 
  

 Lease Termination Agreement - Page 17 

 (c) Reservation Prepayments. Prior to and again on the Closing Date, Terminating
Lessees will provide to Terminating Lessors a complete and then current Schedule of postclosing confirmed Occupancy Agreements (“Reservation Schedule”), if any, containing the following: (i) the party for whose benefit the
reservation was made, (ii) the amount of Prepaid Expenses and Refundable Deposits for services to be rendered under Occupancy Agreements after the Closing Date, and (iii) such additional information as is customarily included on such reports.
Terminating Lessees will transfer or credit to Terminating Lessors the amount of the Prepaid Expenses and Refundable Deposits which have been received by Terminating Lessees in connection therewith. Any post-Closing Date prepayments made to
Terminating Lessees on reservations for dates after the Closing Date will be forwarded to Terminating Lessors upon receipt. 
  
 (d) Tray Ledger. The Tray Ledger for the day of Closing will be apportioned equally between Terminating Lessors and Terminating
Lessees and Terminating Lessors will pay all the costs of housekeeping services performed on the Closing Date. 
  
 (e) Taxes and Assessments. 
  
 (i) There will be no proration of the real and personal property taxes, assessments and all other public or governmental charges
(including charges, assessments, liens or encumbrances for sewer, water, drainage or other public improvements completed on or prior to the Closing Date) that have been paid or are due and payable for any time period in which both a Terminating
Lessee and a Terminating Lessor will have title to a Hotel. 
  
 (ii) Each Terminating Lessee will be responsible for all of its respective federal or local income and franchise taxes, and similar taxes applicable to the transaction contemplated by this Agreement. Each Terminating
Lessee will be responsible for sales, hotel, motel, occupancy and similar taxes for the Hotels leased by it relating to periods up to, but not including, the Closing Date. 
  
 (f) Utility Contracts. Utility contracts including telephone and telex contracts and contracts for
the supply of heat, steam, electric power, gas, lighting, cable television, telephone and any other utility service will be prorated as of the Closing Date; provided that to the extent permitted, all deposits, if any, made by Terminating Lessees as
security under any such utility contracts shall be returned to Terminating Lessees, or a credit given to Terminating Lessees at Closing. Where possible, cutoff readings will be secured for all utilities as of the Closing Date. To the extent they are
not available, the cost of such utilities shall be apportioned between the parties on the basis of the latest actual (not estimated) bill for such service and adjusted as necessary after the Closing Date. 
  
 (g) Prepaid Expenses. All prepaid items, including,
without limitation, advertising expenses, trade association dues, trade subscriptions and maintenance fees, to the extent they benefit Terminating Lessors, will be transferred to Terminating Lessors, and a credit in the amount of same given to
Terminating Lessees. 
  

 Lease Termination Agreement - Page 18 

 (h) Service and FF&E Contracts. All pre-payments made under the Service and
FF&E Contracts will be adjusted and apportioned as of the Closing Date. 
  
 (i) Accounts Receivable. Terminating Lessees shall receive a credit for the Accounts Receivable (including, without limitation, the Guest Ledger Receivables) existing as of the Closing Date, equal to the sum of
the (a) one hundred percent (100%) of the par value of all such receivables which have been due and payable for sixty (60) days or less, (b) seventy-five percent (75%) of the par value of all such receivables which have been due and payable for more
than sixty (60) days but less than ninety (90) days, and (c) fifty percent (50%) of the par value of all such receivables which have been due and payable for more than ninety (90) days but less than one hundred twenty (120) days. Terminating Lessees
shall provide to Terminating Lessors a true and correct accounts receivable aging report in customary form (the “Accounts Receivable Aging Report”) which shall be updated as of the Closing Date. 
  
 (j) Intentionally Deleted. 
  
 (k) Miscellaneous. All other charges and fees
incurred in the ordinary course of business customarily prorated and adjusted in similar transactions will be prorated at the Closing as of the Closing Date and will be reflected on a preliminary closing statement and the Closing Statement.

  
 6.5 Preparation of Closing Statements. 

  
 (a) Terminating Lessees and Terminating
Lessors shall make such inventories, examinations and internal audits of each Hotel covered by a Lease Agreement to which it is a party and of the books and records relating thereto, as such parties may deem reasonably necessary to make the
adjustment calculations and prorations required under this Agreement. 
  
 (b) In connection with the Closing, Terminating Lessors and Terminating Lessees shall agree upon a closing statement for each Hotel not later than five (5) days prior to the Closing Date (each, a “Closing
Statement” and collectively, the “Closing Statements”). Terminating Lessees shall deliver to Terminating Lessors a draft Closing Statement ten (10) days prior to the Closing, with appropriate backup information, including a
draft of the Reservation Schedule referred to in Section 6.4(c) for each Hotel. The Closing Statement shall contain the Terminating Lessees’ and Terminating Lessors’ best estimate of the amounts of the items requiring the
prorations and calculations in this Agreement. The amounts set forth on the Closing Statement shall be the basis upon which the prorations provided for herein shall be made at the Closing Date. 
  
 (c) By no later than ninety (90) days following the Closing
Date, Terminating Lessors shall deliver an accounting (the “Accounting”) to Terminating Lessees setting forth their determination of all adjustments to the Closing Statement which they believe are necessary to allocate the revenues
and expenses of the Hotels in accordance with this Agreement. 
  

 Lease Termination Agreement - Page 19 

 (d) From time to time after the delivery of the Accounting, within thirty (30) days after
information becomes available regarding any revenues or expenses of the Hotel for the period prior to Closing that it is not finally accounted for in the Accounting or in a previous Updated Accounting (defined below), Terminating Lessors shall
prepare and deliver an updated accounting statement (an “Updated Accounting”) setting forth their determination of all additional adjustments to the Closing Statement which they believe are necessary to allocate the revenues and
expenses of the Hotels in accordance with this Agreement. 
  
 (e) The Accounting and each Updated Accounting shall be accompanied by a statement of any sum due from one party to the other party hereto, and settlement thereof shall be made by the owing party by wire transfer or
good check within ten (10) business days thereafter. 
  
 (f) Terminating Lessees may object to any item included in the Accounting or any Updated Accounting within seven (7) business days after delivery thereof. The parties shall cooperate in good faith to reconcile all items included on the
Accounting or any Updated Accounting. If the parties cannot resolve any item within twenty (20) business days after delivery of an Accounting or Updated Accounting, either party may submit such dispute to a reputable national accounting firm chosen
by the parties hereto that is not engaged by either party (the “Auditor”) for resolution. The determination of the Auditor, which shall be made within thirty (30) days after submission, shall be conclusive. The fee and expenses of
the Auditor shall be divided evenly between the parties, unless (i) the results of such audit indicate a variance in any such objectionable items of more than three percent (3%) in favor of Terminating Lessees, in which case, the cost of said audit
shall be borne solely by Terminating Lessors, or (ii) the results of such audit indicate a variance of more than three percent (3%) in favor of Terminating Lessors, in which case the cost of said audit shall be borne solely by Terminating Lessees.

  
 (g) Anything herein to the contrary
notwithstanding, the Updated Accounting(s) will be completed within twelve (12) months following the Closing Date; provided, however, that the parties hereto will exercise commercially reasonable efforts to complete the Updated Accounting(s) within
one hundred eighty (180) days following the Closing Date. 
  
 6.6 Closing Costs. Any escrow fee charged by the Escrow Agent, and all document stamp fees, sales tax, transfer taxes and recording fees and taxes and the cost of the Title Update shall be paid one-half (1/2) by Terminating
Lessees and one-half (1/2) by Terminating Lessors. All such closing costs shall be so allocated on the Closing Statement. Each party shall pay all other costs and fees incurred by it in connection with this transaction, including, but not limited
to, its own attorneys’ fees incurred in connection with the transaction which is the subject of this Agreement. 
  
 6.7 Cooperation. Terminating Lessors agree to cooperate with Terminating Lessees in connection with the preparation, execution and filing of
affidavits and questionnaires required 
  

 Lease Termination Agreement - Page 20 

 by any governmental entity in connection with the payment and calculation of transfer and sales taxes, including any
transferee affidavits. If Terminating Lessors shall not have duly executed and delivered such affidavits and questionnaires within ten (10) business days after written request therefor by or on behalf of any Terminating Lessee, such Terminating
Lessee is hereby appointed by Terminating Lessors as its attorney-in-fact for the sole purpose of executing and delivering such documents on behalf of Terminating Lessors, provided such Terminating Lessee is not authorized to take any action or make
any statement inconsistent with the terms of this Agreement. 
  
 6.8 Survival. The agreements set forth in Sections 6.4 through 6.7 shall survive the Closing and be enforceable until fully performed, and shall not be terminated by Section 7.1.

  
 ARTICLE VII 
 Survival; Indemnification 
  
 7.1 Survival of Representations. Except as otherwise expressly provided hereby, all representations, warranties, covenants and agreements
contained in this Agreement or any Schedule hereto or certificate required to be provided at the Closing shall survive and shall not be extinguished by the Closing (subject to the provisions of Section 7.6) for a period of nine (9)
months following the Closing (the “Cut-Off-Date”), after which nine (9) month period, such representations, warranties, covenants and agreements shall be of no further force or effect whatsoever, except to the extent that legal
proceedings have been filed in connection with an alleged breach of same within such nine (9) month period; provided, however, that (a) the representations and warranties contained in Sections 3.1(a), 3.1(b),
3.2(a) and 3.2(c) shall survive indefinitely, and (b) the parties’ respective covenants and agreements set forth in the applicable Sections shall survive as may be otherwise expressly provided therein. The Closing
shall not be deemed in any way to constitute a waiver by any party of any powers, rights or remedies it may have with respect to any obligations of the other party hereunder except as provided in Section 7.6 below. 
  
 7.2 Indemnity by Terminating Lessee and Wyndham. Terminating
Lessees and Wyndham agree, jointly and severally, to indemnify, defend and hold harmless Terminating Lessors and Operator and their respective Affiliates, officers, directors, shareholders, partners, employees and agents (collectively,
“Terminating Lessors Indemnified Parties”) from and against any and all claims, demands, obligations, losses, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorney’s fees,
costs and expenses, and any and all actions, suits and proceedings in respect thereof (collectively “Liabilities”) suffered or incurred by Terminating Lessors Indemnified Parties (i) as a result of the termination of, or failure to
terminate, the management agreements (and any subleases or sub-management agreements) between Wyndham Affiliates, (ii) as a result of the breach by Terminating Lessee of any covenant or agreement made herein or in any document or instrument
delivered pursuant hereto, (iii) as a result of the failure of any Terminating Lessee’s representation or warranty made herein to be true in all material respects when made, (iv) the items listed on Schedule 3.2(d), and (v) to the
extent that such indemnifying party would have been liable under the Lease Agreements (assuming for these purposes that it was still in effect when the determination is made), as a result of the operation of the subject Hotel, prior to the Closing

  

 Lease Termination Agreement - Page 21 

 Date, including, without limitation, for sales tax (and related interest or penalties), vendor claims and employee- or
employment-related claims based on events occurring or alleged to have occurred prior to the Closing Date. 
  
 7.3 Indemnity by Terminating Lessors. Terminating Lessors agree, jointly and severally, to indemnify, defend and hold harmless Wyndham and
Terminating Lessees and their Affiliates, officers, directors, shareholders, partners, employees and agents (collectively, “Wyndham Indemnified Parties”) from and against any and all Liabilities suffered or incurred by Wyndham
Indemnified Parties as a result of (i) the breach by Terminating Lessors of any covenant made herein or in any document or instrument delivered pursuant hereto, (ii) the failure of any Terminating Lessors’ representations to be true in all
material respects when made, and (iii) the operation of the Hotel by terminating Lessors (or Operator) on and after the Closing Date, including without limitation, vendor claims and employee or employment-related claims based on events occurring or
alleged to have occurred on or after the Closing Date. 
  
 7.4
Defense of Claims. A party claiming indemnification shall give written notice to the indemnifying party as soon as practicable after the claiming party becomes aware of any fact, condition or event which it believes will give rise to such
indemnification right. If any action, suit or proceeding (a “Proceeding”) alleging a claim for Liabilities is filed or threatened against any party entitled to indemnification hereunder, written notice thereof shall be given to the
indemnifying party as promptly as practicable. After such notice, the indemnifying party shall be entitled, if it so elects (i) to take control of the investigation and defense of the Proceeding, and the pre-proceeding activities with respect to the
subject Liabilities, (ii) to engage attorneys and experts of its choice to handle the investigation and defense of the Proceedings, or such pre-Proceeding activities, and (iii) with the indemnified party’s consent, not to be unreasonably
withheld (failure to include a complete release of the indemnified party constituting reason to withhold consent), to settle such Proceeding (or such matter, if prior to a Proceeding), all at the indemnifying party’s sole risk and expense. The
indemnified party shall reasonably cooperate with the indemnifying party’s defense of the Proceeding. 
  
 7.5 Survival. The provisions of Sections 7.2 through 7.4 shall survive the Closing and actions may be initiated
thereunder, (1) for those matters subject to termination as of the Cut-Off Date under Section 7.1, until the Cut-Off Date, (2) with respect to the matters described in Sections 3.1(a) and (b) and Sections 3.2(a) and
(c), indefinitely, and (3) with respect to those covenants and agreements set forth in this Agreement which by their express terms survive Closing until (i) some future event, occurrence or date other than the Cut-Off Date or (ii)
indefinitely, until such event, occurrence or date, or indefinitely, as applicable. 
  
 7.6 Breach or condition failure known at Closing. Notwithstanding anything in this Agreement to the contrary, neither party shall have any liability or obligation for indemnification or otherwise as a
result of any breach of any representation or any failure of a condition included in this Agreement of which the other party or any of its affiliates had actual knowledge (not including constructive or imputed knowledge) prior to Closing and
proceeded with the Closing. In such event, any such breach or condition failure shall be deemed fully waived and released. 
  

 Lease Termination Agreement - Page 22 

 ARTICLE VIII 
 Inspection 
  
 8.1
Inspection. Terminating Lessors confirm that they have been provided an opportunity to perform due diligence reviews and inspections regarding the Hotels (the “Study Period”), that the Study Period has expired and that
Terminating Lessors have waived any rights to terminate this Agreement as a result of such inspections and review. All inspection fees, appraisal fees, engineering fees and other expenses of any kind incurred by Terminating Lessors relating to the
inspection of any Hotel will be solely Terminating Lessors’ expense. 
  
 8.2 Terminating Lessors’ Agreement to Indemnify Regarding Inspections. Terminating Lessors hereby, jointly and severally, indemnify and hold Terminating Lessees and all their respective partners,
directors, officers, shareholders, employees, agents and attorneys (the “Terminating Lessee Parties”) harmless from and against any and all liens, claims, causes of action, damages, liabilities and expenses (including reasonable
attorneys’ fees) arising out of Terminating Lessors’ inspections or tests permitted hereunder; provided, however, that with respect to any matters for which indemnification will be pursued hereunder of which Terminating Lessees had actual
knowledge prior to the Effective Date, such indemnification is conditioned upon Terminating Lessees having provided to Terminating Lessors prior to the Effective Date copies of any information then in their possession regarding such matters. With
respect to any matters for which Terminating Lessees pursue indemnification from Terminating Lessors under this Section 8.2, Terminating Lessees covenant to provide to Terminating Lessors promptly after coming into possession of same,
copies of any information in Terminating Lessees’ possession pertaining to such matter. No failure of Terminating Lessees to comply with the provisions hereof shall reduce, limit or release Terminating Lessors’ indemnification obligations
to the extent that any information which any Terminating Lessees fail to provide Terminating Lessors was already in the possession of any Terminating Lessor at the time that such duty to deliver same to Terminating Lessors arose. 
  
 8.3 Property Conveyed “AS IS”. EXCEPT AS SPECIFICALLY
PROVIDED FOR HEREIN, IT IS UNDERSTOOD AND AGREED THAT TERMINATING LESSEES HAVE NOT MADE AND ARE NOT NOW MAKING, AND SPECIFICALLY DISCLAIM, ANY WARRANTIES, REPRESENTATIONS OR GUARANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, ORAL OR WRITTEN,
PAST, PRESENT OR FUTURE, WITH RESPECT TO THE PROPERTY INCLUDING, BUT NOT LIMITED TO, WARRANTIES, REPRESENTATIONS OR GUARANTIES AS TO (I) MATTERS OF TITLE, (II) ENVIRONMENTAL MATTERS RELATING TO THE HOTELS OR ANY PORTION THEREOF, (III) GEOLOGICAL
CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE, UNDERGROUND WATER RESERVOIRS, LIMITATIONS REGARDING THE WITHDRAWAL OF WATER, AND EARTHQUAKE FAULTS AND THE RESULTING DAMAGE OF PAST AND/OR FUTURE EARTHQUAKES,
(IV) WHETHER, AND THE EXTENT TO WHICH THE HOTELS OR ANY PORTION THEREOF IS AFFECTED BY ANY STREAM (SURFACE OR UNDERGROUND), BODY OF WATER, FLOOD PRONE AREA, FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARD, (V) DRAINAGE, (VI) SOIL CONDITIONS, INCLUDING
THE EXISTENCE OF INSTABILITY, PAST SOIL REPAIRS, SOIL 
  

 Lease Termination Agreement - Page 23 

 ADDITIONS OR CONDITIONS OF SOIL FILL, OR SUSCEPTIBILITY TO LANDSLIDES, OR THE SUFFICIENCY OF ANY UNDERSHORING, (VII)
ZONING TO WHICH THE HOTELS OR ANY PORTION THEREOF MAY BE SUBJECT, (VIII) THE AVAILABILITY OF ANY UTILITIES TO THE HOTELS OR ANY PORTION THEREOF, INCLUDING, WITHOUT LIMITATION, WATER, SEWAGE, GAS AND ELECTRIC, (IX) USAGES OF ADJOINING PROPERTY, (X)
ACCESS TO THE HOTELS OR ANY PORTION THEREOF, (XI) THE VALUE, COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN, QUALITY, DESCRIPTION, SUITABILITY, STRUCTURAL INTEGRITY, OPERATION, TITLE TO, OR PHYSICAL OR FINANCIAL
CONDITION OF THE HOTELS OR ANY PORTION THEREOF, OR ANY INCOME, EXPENSES, CHARGES, LIENS, ENCUMBRANCES, RIGHTS OR CLAIMS ON OR AFFECTING OR PERTAINING TO THE HOTELS OR ANY PART THEREOF, (XII) THE PRESENCE OF HAZARDOUS SUBSTANCES IN OR ON, UNDER OR IN
THE VICINITY OF THE HOTELS OR ANY PORTION THEREOF, (XIII) THE PHYSICAL CONDITION OR USE OF THE HOTELS OR ANY PORTION THEREOF OR COMPLIANCE OF THE HOTELS OR ANY PORTION THEREOF WITH ANY OR ALL PAST, PRESENT OR FUTURE FEDERAL, STATE OR LOCAL
ORDINANCES, RULES, REGULATIONS OR LAWS, BUILDING, FIRE OR ZONING ORDINANCES, CODES OR OTHER SIMILAR LAWS, (XIV) THE EXISTENCE OR NONEXISTENCE OF UNDERGROUND STORAGE TANKS, (XV) ANY OTHER MATTER AFFECTING THE STABILITY OR INTEGRITY OF THE HOTELS OR
ANY PORTION THEREOF, (XVI) THE POTENTIAL FOR FURTHER DEVELOPMENT OF ANY HOTELS OR ANY PORTION THEREOF, (XVII) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE HOTELS OR ANY PORTION THEREOF, (XVIII) THE MERCHANTABILITY
OF THE HOTELS OR ANY PORTION THEREOF OR THE FITNESS OF THE PROPERTY OR ANY PORTION THEREOF FOR ANY PARTICULAR PURPOSE, (XIX) TAX CONSEQUENCES OR (XX) THE FINANCIAL PERFORMANCE OF THE HOTELS. TERMINATING LESSORS FURTHER ACKNOWLEDGE AND AGREE THAT
HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY AND REVIEW INFORMATION AND DOCUMENTATION AFFECTING OR RELATING TO THE PROPERTY, EXCEPT AS MAY BE SPECIFICALLY OTHERWISE PROVIDED IN THIS AGREEMENT, TERMINATING LESSORS ARE RELYING SOLELY ON
THEIR OWN INVESTIGATION OF THE PROPERTY AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION, AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY TERMINATING LESSEES OR TERMINATING LESSEES’ AGENTS OR CONTRACTORS. TERMINATING LESSORS FURTHER
ACKNOWLEDGE AND AGREE THAT ANY INFORMATION MADE AVAILABLE TO TERMINATING LESSORS OR PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF TERMINATING LESSEES WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT TERMINATING LESSEES
HAVE NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND, EXCEPT AS MAY BE SPECIFICALLY OTHERWISE PROVIDED IN THIS AGREEMENT, MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. EXCEPT AS MAY
BE SPECIFICALLY OTHERWISE PROVIDED IN THIS AGREEMENT, TERMINATING LESSORS AGREE TO FULLY AND 
  

 Lease Termination Agreement - Page 24 

 IRREVOCABLY RELEASE ALL SUCH SOURCES OF INFORMATION AND PREPARERS OF INFORMATION AND DOCUMENTATION AFFECTING THE PROPERTY
WHICH WERE RETAINED BY TERMINATING LESSEES FROM ANY AND ALL CLAIMS THAT THEY MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST SUCH SOURCES OR PREPARERS OF INFORMATION FOR ANY COSTS, LOSS, LIABILITY, DAMAGE, EXPENSE, DEMAND, ACTION OR CAUSE OF ACTION
ARISING FROM SUCH INFORMATION OR DOCUMENTATION. TERMINATING LESSEES HAVE MADE NO AGREEMENT TO ALTER, REPAIR OR IMPROVE ANY PORTION OF THE PROPERTY. 
  
 8.4 Title Update Terminating Lessors acknowledge that prior to the Effective Date, Terminating Lessees caused Escrow Agent to provide
Terminating Lessors with title updates (the “Title Updates”) showing any changes from the Owner’s Policy for each Hotel, copies of which have been provided to Terminating Lessors, and that the Escrow Agent has provided copies
of all additional documents of record shown as exceptions therein. Terminating Lessors acknowledges that no additional owner’s title insurance policy will be issued to Terminating Lessors at Closing (unless Terminating Lessors elect to do so,
at their sole cost and expense and not as a condition to any of its obligations under this Agreement). Other than as contemplated by Section 6.2(b)(i) and Section 6.2(b)(xiv), Terminating Lessees shall not be required to
cure any title or survey matters or objections by Terminating Lessors, Terminating Lessors sole remedy and relief with respect to any title or survey matters which are objectionable being to terminate this Agreement prior to the expiration of the
Study Period. 
  
 ARTICLE IX 
 Termination 
  
 9.1 Termination. This Agreement may be terminated at any time on or prior to the Closing Date: 
  
 (a) By the mutual consent in writing of Terminating Lessees
and Terminating Lessors; 
  
 (b) By Terminating
Lessees or Terminating Lessors in writing if any United States federal or state court of competent jurisdiction or other governmental entity shall have issued a final order, decree or ruling or taken any other action permanently enjoining,
restraining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable, provided that the party seeking to terminate shall
have used its best efforts to appeal such order, decree, ruling or other action; 
  
 (c) By Terminating Lessors in writing if any Terminating Lessee breaches any representation of warranty or violates any covenant of such
Terminating Lessee in this Agreement, or if any of the conditions to the obligations of Terminating Lessee contained herein shall not have been satisfied or, if unsatisfied, waived by Terminating Lessors (without any obligation to do so) as of the
Closing Date; 
  

 Lease Termination Agreement - Page 25 

 (d) By Terminating Lessees in writing if any Terminating Lessor breaches any
representation of warranty or violates any covenant of such Terminating Lessor in this Agreement, or if any of the conditions to the obligations of Terminating Lessees contained herein shall not have been satisfied or, if unsatisfied, waived by
Terminating Lessees (without any obligation to do so) as of the Closing Date; and 
  
 (e) By Terminating Lessors or Terminating Lessees in writing if the Closing Date shall not have occurred by April 1, 2004. 
  
 9.2 No Further Force or Effect. In the event of
termination of this Agreement pursuant to the provisions of Section 9.1, this Agreement shall be of no further force or effect, except those provisions that expressly survive the termination hereof. In such event, each party shall bear
its own costs and expenses incurred with respect to the transactions contemplated hereby. 
  
 ARTICLE X 
 Miscellaneous 
  
 10.1 Entire Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the
termination of the Leasehold Estates. There are no other agreements, oral or written, with respect to the termination of the Leasehold Estates, and this Agreement can be amended only by written agreement signed by the parties hereto. 
  
 10.2 Binding. This Agreement, and the terms, covenants, and
conditions herein contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and permitted assigns of each of the parties hereto. Terminating Lessors may assign their rights under this Agreement
only upon the following conditions, and any such attempted assignment shall not be effective unless all of the following conditions are met: (a) the assignment may only occur upon, and be effective as of the Closing Date; (b) the assignee of
Terminating Lessors must be an entity which is directly owned or controlled by Terminating Lessors or Jeffrey H. Fisher; (c) Terminating Lessors shall remain primarily liable for the performance of Terminating Lessors’ obligations hereunder;
and (d) at least ten (10) days prior to the Closing Date, Terminating Lessees must have received (i) written notice of the proposed assignment, (ii) an unexecuted copy of the proposed assignment and assumption agreement, (iii) the identity of the
proposed assignee and its principals, and (iv) the relationship of the proposed assignee to Terminating Lessors. Terminating Lessors further acknowledge that Terminating Lessees shall have no obligation to approve any such proposed assignment that
does not satisfy the conditions specified above. 
  
 10.3
Notice. Any notice, communication, request, reply or advice provided for or permitted by this Agreement to be made or accepted by either party must be in writing. Notice may, unless otherwise provided herein, be given or served by
delivering the same to such party, or an agent of such party, or by sending a facsimile transmission, addressed to the party to be notified. Notice given in the manner hereinabove described shall be (i) effective when received by the party to be
notified between the hours of 8:00 A.M. and 5:00 P.M. Central time of any business day with delivery made after such hours to be deemed received the following business 
  

 Lease Termination Agreement - Page 26 

 day, and (ii) deemed delivered three (3) days after postmarked through the U.S. Mail or next day if sent by FedEx. For
the purposes of notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: 
  

			
	Terminating Lessees:	 	c/o Wyndham International, Inc.
	 	 	1950 Stemmons Freeway, Suite 6001
	 	 	Dallas, Texas 75207
	 	 	Attention: General Counsel
	 	 	Fax: (214) 863-1986
		
	with copies to:	 	Locke Liddell & Sapp LLP
	 	 	2200 Ross Avenue, Suite 2200
	 	 	Dallas, Texas 75201-6776
	 	 	Attention: Janis H. Loegering Esq.
	 	 	Fax: (214) 740-8800
		
	Terminating Lessors:	 	c/o Innkeepers USA Trust
	 	 	306 Royal Poinciana Way
	 	 	Palm Beach, Florida 33480
	 	 	Attention: Mark A. Murphy, Esq.
	 	 	Fax: (561) 833-2352

  
 The parties hereto
shall have the right from time to time to change their respective addresses, and each shall have the right to specify as its address any other address within the United States of America by at least five (5) days written notice to the other party.

  
 10.4 Time. Time is of the essence in all things
pertaining to the performance of this Agreement. 
  
 10.5
Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of Virginia without regard to the conflicts of law provisions of such State. 
  
 10.6 Currency. All dollar amounts are expressed in United States currency. 
  
 10.7 Section Headings. The Section headings contained in this
Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several sections hereof. 
  
 10.8 Obligations. To the extent provided herein, and to the extent necessary to carry out the terms and provisions hereof, the terms,
conditions, obligations and rights set forth herein shall not be deemed terminated at the time of Closing, nor will they merge into the various documents executed and delivered at the time of Closing. 
  
 10.9 Business Days. In the event that any date or any period
provided for in this Agreement shall end on a Saturday, Sunday or legal holiday, the applicable date or period shall be extended to the first business day following such Saturday, Sunday or legal holiday. 
  

 Lease Termination Agreement - Page 27 

 10.10 No Recordation. Without the prior written consent of Terminating Lessees, prior to
Closing, there shall be no recordation of either this Agreement or any memorandum hereof, or any affidavit pertaining hereto and any such recordation of this Agreement or memorandum hereto by Terminating Lessors without the prior written consent of
Terminating Lessees shall constitute a default hereunder by Terminating Lessors, whereupon this Agreement shall, at the option of Terminating Lessees, terminate and be of no further force and effect. 
  
 10.11 Multiple Counterparts. This Agreement may be executed in
multiple counterparts (each of which is to be deemed an original for all purposes). 
  
 10.12 Severability. If any provision hereof, or any portion of any provision hereof, shall be deemed to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not
alter the remaining portion of any provision, or any other provisions hereof, as each provision of this Agreement shall be deemed to be severable from all other provisions hereof. 
  
 10.13 Waivers. The waiver of either party hereto of any right granted to it hereunder shall not be deemed to
be a waiver of any other right granted herein, nor shall the same be deemed to be a waiver of a subsequent right obtained by reason of the continuation of any matter previously waived. 
  
 10.14 Negotiations. This Agreement is the result of negotiations between the parties and, accordingly, shall
not be construed for or against either party regardless of which party drafted this Agreement, or any portion thereof. 
  
 10.15 No Partnership. Nothing contained in this Agreement shall be construed to create a partnership or joint venture between the parties or
their successors in interest. 
  
 10.16 Publicity.
Except as required by law (as determined by either party in the exercise of their reasonable discretion) or in connection with the enforcement of rights under this Agreement, neither party shall, prior to Closing, directly or indirectly,
disclose or confirm to any person (other than their respective attorneys, accountants, agents, employees, contractors, lenders, vendors, investors and/or parties directly affected thereby or involved in the satisfaction of conditions or covenants of
this Agreement) that discussions have taken place between the parties, the existence of or the terms or conditions of this Agreement or any of the terms, conditions or other facts regarding the transaction proposed hereby, including the status
thereof. Each party agrees to obtain the other party’s approval (not to be unreasonably withheld, conditioned or delayed) of the timing, content and dissemination of any public announcement on, prior to, or within thirty (30) days after the
Closing Date relating to the transaction contemplated hereby, except to the extent that such disclosures are required by applicable law (as determined by either party in the exercise of their reasonable discretion). Each party shall respond to the
other party’s requests for such approval within two (2) business days after receiving the proposed announcement, shall not act unreasonably in giving or withholding it’s consent and shall provide reasonably detailed justification for any
withholding of consent. 
  

 Lease Termination Agreement - Page 28 

 10.17 Specific Performance. The parties hereto agree that irreparable damage would occur in
the event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or equity.

  
 10.18 Attorneys’ Fees. If either party
hereto is required to employ an attorney because any litigation or arbitration arises out of this Agreement between the parties hereto, the nonprevailing party shall pay the prevailing party, as determined by the court or arbitrator, all reasonable
attorneys’ fees and expenses incurred in connection with such litigation or arbitration. 
  
 10.19 Further Assurances. Terminating Lessees and Terminating Lessors, at any time and from time to time, upon the request of the other, shall do, execute, acknowledge and deliver (or cause their
respective Affiliates to do, execute, acknowledge and deliver) all such further acts, deeds, assignments, transfers, conveyances and assurances as shall be reasonably required to consummate the transactions contemplated hereby. 
  
 10.20 Schedules and Exhibits. The following
Schedules and Exhibits are attached hereto and incorporated herein for all purposes: 
  
  

			
	 Exhibit A-1
	 	Description of the Lease Agreements
		
	 Exhibit A-2
	 	Description of the Hotels
		
	 Exhibit A-3
	 	Description of the Hotel Parcels
		
	 Exhibit B
	 	Form of Termination of Leasehold Interests
		
	 Exhibit C
	 	Form of Bill of Sale and General Assignment
		
	 Exhibit D
	 	Form of Assignment of Occupancy Agreements
		
	 Exhibit E
	 	Form of Non-Foreign Affidavit
		
	 Exhibit F
	 	Form of Accommodation Agreement
		
	 Exhibit G
	 	Form of Franchise Agreement
		
	 Exhibit G-1
	 	Form of Comfort Letter regarding Franchise Agreement
		
	 Exhibit H
	 	Intentionally Deleted
		
	 Exhibit I
	 	Form of Mutual Termination and Release - Hotel License Agreement
		
	 Exhibit J
	 	Form of Mutual Termination and Release – Management Agreement
		
	 Schedule 1.2
	 	Liquor Licenses
		
	 Schedule 3.1(c)
	 	Litigation (Terminating Lessors)
		
	 Schedule 3.1(d)
	 	Violation of Law (Terminating Lessors)
		
	 Schedule 3.1(e)
	 	Approval and Consents (Terminating Lessors)
		
	 Schedule 3.2(d)
	 	Litigation (Terminating Lessees)
		
	 Schedule 3.2(f)
	 	Consents and Approvals (Terminating Lessees)
		
	 Schedule 3.2(h)
	 	Licenses
		
	 Schedule 3.2(j)
	 	Service and FF&E Contracts
		
	 Schedule 3.2(k)
	 	Occupancy Agreements
		
	 Schedule 3.3
	 	List of Hotel General Managers
		
	 Schedule 4.5
	 	Minimum Per Room Night Rates

  

 Lease Termination Agreement - Page 29 

 Terminating Lessors and Terminating Lessees acknowledge and agree that the Schedules and Exhibits attached hereto are not
complete and will be completed and attached prior to the end of the Study Period. 
  
 10.21 Bulk Sales Law. Terminating Lessors waive compliance with the provisions of the Uniform Commercial Code relating to bulk transfers in connection with this transaction; provided, however, that
nothing in this Section shall estop or prevent either Terminating Lessors or Terminating Lessees from asserting as a bar or defense to any action or proceeding brought under such law that it does not apply to the transaction contemplated by this
Agreement. 
  
 ARTICLE XI 
 Definitions 
  
 11.1 “Accommodation Agreement” shall have the meaning set forth in Section 4.4. 
  
 11.2 “Accounting” shall have the meaning set forth in
Section 6.5(c). 
  
 11.3 “Accounts
Receivable” shall mean accounts receivable of the Hotel as of the Closing. 
  
 11.4 “Accounts Receivable Aging Report” shall have the meaning set forth in Section 6.4(i). 
  
 11.5 “Affiliate” of a subject person (the “Subject Person”) shall mean (i) any
Person more than twenty percent (20%) of the issued and outstanding stock of which, or more than a twenty percent (20%) interest in which, is owned, directly or indirectly, by the Subject Person, or (ii) any Person which owns, directly or
indirectly, more than twenty percent (20%) of the issued and outstanding stock of, or more than a twenty percent (20%) interest in, the Subject Person, or (iii) any Person who is an officer, director, general partner or twenty percent (20%) or more
shareholder (or any member of the immediate family of any officer, director, general partner or twenty percent (20%) or more shareholder) of the Subject Person, but only for so long as such Person serves in such capacity, or (iv) any Person that
directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Subject Person. As used in this paragraph only, the term “control” (including the terms “controlled
by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise. As used in this paragraph only, the term “family” shall be deemed to include spouses, children, parents, brothers and sisters, and the spouse, children, parents, brothers and sisters of such spouses, children, parents,
brothers and sisters. 
  
 11.6 “Agreement”
shall have the meaning set forth in the Caption. 
  
 11.7
“Assignment of Occupancy Agreements” shall have the meaning set forth in Section 6.2(b)(iii). 
  

 Lease Termination Agreement - Page 30 

 11.8 “Auditor” shall have the meaning set forth in Section 6.5(f).

  
 11.9 “Bill of Sale and General
Assignment” shall have the meaning set forth in Section 6.2(b)(ii). 
  
 11.10 “BOA Hotels” shall mean the Wyndham Summerfield Suites – Belmont and the Wyndham Summerfield Suites – Los Colinas. 
  
 11.11 Intentionally Deleted. 
  
 11.12 “Capital Committee Approval” shall mean the approval of the transactions contemplated by this
Agreement by the Capital Committee of Wyndham. 
  
 11.13
“Closing” shall have the meaning set forth in Section 6.1. 
  
 11.14 “Closing Date” shall have the meaning set forth in Section 6.1(a). 
  
 11.15 “Closing Tranche” shall have the meaning set forth in Section 6.1(a). 
  
 11.16 “Closing Documents” shall mean the Terminating
Lessors Closing Documents and the Terminating Lessees Closing Documents. 
  
 11.17 “Closing Statement” and “Closing Statements” shall have the meanings set forth in Section 6.5(b). 
  
 11.18 “Cut-Off Date” shall have the meaning set forth
in Section 7.1. 
  
 11.19 “Cut-Off
Time” shall mean 12:01 a.m. on the Closing Date. 
  
 11.20 “Depository Accounts” shall mean the cash in the depository accounts into which receipts from the Hotels are deposited as of the Closing Date. 
  
 11.21 “Effective Date” shall have the meaning set forth in the Caption. 
  
 11.22 “Employees” shall have the meaning set forth in
Section 4.3(d). 
  
 11.23 “Employee
Schedule” shall have the meaning set forth in Section 4.3(a). 
  
 11.24 “Escrow Agent” shall mean American Title Company, 6029 Beltline Road, Suite 250, Dallas, Texas 75240. 
  
 11.25 “FF&E” shall mean all tangible personal property and fixtures attached to, or located upon
and used in connection with the ownership, maintenance, use or operation of, the Hotel as of the date hereof, including, but not limited to, all furniture, furnishings, fixtures, equipment, and signs; all heating, lighting, plumbing, drainage,
electrical, air conditioning, and other mechanical fixtures and equipment and systems; all elevators, escalators, and related motors and electrical equipment and systems; all computer hardware, all hot water heaters, furnaces, heating controls,
motors and boiler pressure systems and equipment; all shelving and 
  

 Lease Termination Agreement - Page 31 

 partitions; all ventilating, incinerating and disposal equipment; all tennis, pool, health club and fitness equipment and
furnishings; all vans, automobiles and other motor vehicles; all carpet, drapes, beds, furniture, televisions, telephones and other furnishings; and all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and utensils,
tables, chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils. 
  
 11.26 “First Closing Tranche” shall have the meaning set forth in Section 6.1(a). 
  
 11.27 “Franchise Agreement” shall have the meaning
set forth in Section 6.2(b)(viii). 
  
 11.28
“General I” shall mean Innkeepers Summerfield General, L.P. a Virginia limited partnership. 
  
 11.29 “General II” shall mean Innkeepers Summerfield General II, L.P., a Virginia limited partnership. 
  
 11.30 “Governmental Authority” shall mean the United
States of America, the state, county, city and other political subdivision in which the Hotel is located, and any agency, authority, court, department, commission, board, bureau or instrumentality of any of them. 
  
 11.31 “Guaranty” shall have the meaning set forth in
Section 5.2(c). 
  
 11.32 “Guaranty
Termination” shall have the meaning set forth in Section 5.2(c). 
  
 11.33 “Guest Ledger Receivables” shall mean the receivables which exist as of the Cut-Off Time, specifically including all items of revenue from guest room rentals, minibars (if any), banquet
rooms and other income-producing facilities and equipment arising from hotel guests or customers in occupancy on the day preceding the Closing Date, but excluding any such receivables included in the Tray Ledger. 
  
 11.34 “Hired Employees” shall have the meaning set
forth in Section 4.3(a). 
  
 11.35
“Hotel” and “Hotels” shall have the meanings set forth in the Recitals. 
  
 11.36 “Hotel Parcels” shall mean the land upon which each Hotel is located, as described on Exhibit A-3 attached
hereto. 
  
 11.37 “Lease Agreement” and
“Lease Agreements” shall have the meanings set forth in the Recitals. 
  
 11.38 “Lease Master Agreement” shall have the meaning set forth in the Recitals. 
  
 11.39 “Lease Master Agreement Termination” shall have the meaning set forth in the Section 5.2(d). 
  
 11.40 “Leasehold Estate” shall have the meaning set
forth in the Recitals. 
  

 Lease Termination Agreement - Page 32 

 11.41 “Leasehold Interests” shall have the meaning set forth in the Recitals.

  
 11.42 “Leases” shall mean all leases,
licenses, and other agreements with respect to tenancies of the nature of space leases in the Hotels, together with all amendments, modifications, renewals and extensions thereof and all guaranties by third parties of the obligations of tenants,
licensees and similarly situated parties thereunder. 
  
 11.43
“Lender Consents” shall have the meaning set forth in Section 5.1(d). 
  
 11.44 “Lenders” shall have the meaning set forth in Section 5.1(d). 
  
 11.45 “Letters of Credit” shall mean those two (2)
certain Letters of Credit in the amounts of $2,611,486 and $2,147,734, respectively, which currently serve as security for the performance by Terminating Lessees of their obligations under the Lease Agreements. 
  
 11.46 “Liabilities” shall have the meaning set forth
in Section 7.2. 
  
 11.47
“Licenses” shall mean licenses, permits, utility reservations, certificates of occupancy, and similar documents issued by any federal, state, or municipal authority or by any private party so long as assignment can be made under
applicable law and without material cost to the Terminating Lessees; excluding however, liquor, wine, beer, bar and similar licenses. 
  
 11.48 “Liquor License Holder” shall have the meaning set forth in Section 1.2. 
  
 11.49 “Liquor Licenses” shall have the meaning set
forth in Section 1.2. 
  
 11.50
“Material Adverse Effect” shall mean any effect that is materially adverse to the condition (financial or otherwise) or results of operations of each Hotel and that portion of the Property related thereto; provided however, that
(i) any adverse effect arising from or relating to general business or economic conditions shall not be deemed to constitute, and shall not be taken into account in determining whether there has been a “Material Adverse Effect,” (ii) any
adverse effect arising from or relating to conditions affecting the lodging or hospitality industry generally shall not be deemed to constitute, and shall not be taken into account in determining whether there has been, a “Material Adverse
Effect,” and (iii) any adverse effect arising from or relating to the announcement or pendency of any of the transactions contemplated by this Agreement shall not be taken into account in determining whether there has been a “Material
Adverse Effect.” 
  
 11.51 “Major Service and
FF&E Contracts” shall mean the Service and FF&E Contracts (a) that have a remaining term of (12) months or more, and (b) the monetary obligation of Terminating Lessee thereunder exceeds $10,000 for any 12-month period. 

 
 11.52 “Minor Service and FF&E Contracts” shall
mean the Service and FF&E Contracts (a) that have a remaining term of less than twelve (12) months, and (b) the monetary obligation of Terminating Lessee thereunder equals or is less than $10,000 for any 12-month period. 
  

 Lease Termination Agreement - Page 33 

 11.53 “Nomura Hotels” shall mean the Wyndham Summerfield Suites – Addison,
the Wyndham Summerfield Suites – El Segundo and the Wyndham Summerfield Suites – Mt. Laurel. 
  
 11.54 “Occupancy Agreements” shall mean all assignable occupancy agreements, advance booking agreements, convention reservation
agreements, airline reservation agreements, or other similar agreements, other than Leases and other than guest or room bookings, demising space in, providing for the use or occupancy of, or otherwise similarly affecting or relating to the use or
occupancy of the Hotels together with all amendments, modifications, renewals and extensions thereof, and all guaranties by third parties of the obligations of the holder of the occupancy right and similarly situated parties thereunder. 

 
 11.55 “Operator” shall have the meaning set forth
in Section 4.4. 
  
 11.56 “Original
Lease Agreement” and “Original Lease Agreements” shall have the meanings set forth in the Recitals. 
  
 11.57 “Person” shall mean any corporation, partnership, limited liability company, joint venture, individual, trust, real estate
investment trust, banking association, federal or state savings and loan institution and any other legal entity, whether or not a party hereto. 
  
 11.58 “Potential Lease Default” shall mean the alleged Performance Failures (as defined in the Lease Agreements) affecting certain
of the Hotels and described in correspondence between Terminating Lessors and Terminating Lessees and dated January 14, 2002, May 9, 2002, January 15, 2003 and February 13, 2003. 
  
 11.59 “Prepaid Expenses and Refundable Deposits” shall mean all prepaid rents and deposits,
including, but not limited to, refundable security deposits and rental deposits, and all other deposits for advance reservations, banquets or future services, actually held by Terminating Lessees in connection with the use or occupancy of the Hotels
and not heretofore applied in accordance with the terms of the applicable Occupancy Agreement or other agreement. 
  
 11.60 “Proceeding” shall have the meaning set forth in Section 7.4. 
  
 11.61 “Proceeds” shall mean all proceeds received or
receivable by Terminating Lessees from governmental authorities, insurance companies or third parties with respect to a casualty or condemnation of any part of a Hotel following the Effective Date and, in the case of an insured casualty, cash in the
amount of the deductible under the applicable insurance policies. 
  
 11.62 “Property” shall mean the Hotel Parcels, the Hotels, the FF&E, the Records and the Supplies. 
  
 11.63 “Records” shall mean all books and records, promotional material, property level telephone numbers, tenant data,
guest data, complete property level sales files (including all definite and tentative bookings), marketing and leasing material and forms, keys, property level software and other materials of any kind which are or may be used in the ownership or
use of the Hotels or the FF&E relating thereto; provided, however, that (i) a copy of any such material 
  

 Lease Termination Agreement - Page 34 

 which constitutes a part of any Terminating Lessee’s continuing business or financial records may be retained by
such Terminating Lessee, (ii) the centralized reservation operation interface software and property management system software shall not be conveyed but shall be left in place for Terminating Lessors’ use, and (iii) intercompany tax returns,
accounting records and similar internal documents shall not be included within “Records.” 
  
 11.64 “Reservation Schedule” shall have the meaning set forth in Section 6.4(c). 
  
 11.65 “Second Closing Tranche” shall have the meaning
set forth in Section 6.1(a). 
  
 11.66
“Service and FF&E Contracts” shall mean collectively (a) contracts and agreements, such as labor, service or maintenance contracts, utility contracts, contracts for the purchase of supplies, purchase orders, insurance
contracts, airline agreements, corporate account agreements, travel agency agreements, telephone service agreements, yellow pages or other advertising agreements and (b) any leases of any FF&E and other contracts permitting the use of any
FF&E in the Hotels, and described on Schedule 3.2(j) attached hereto. 
  
 11.67 “Study Period” shall have the meaning set forth in Section 8.1. 
  
 11.68 “Sunrise” shall mean Innkeepers Sunrise Tinton Falls, L.P., a Virginia limited partnership. 
  
 11.69 “Supplies” shall mean all, supplies, inventory
and other items used for the operation and maintenance of guest rooms, guest services, restaurants, lounges, swimming pools, health clubs and other common areas and recreational areas located within or relating to the Hotel, including but not
limited to, office supplies and stationery, advertising and promotional materials, towels, washcloths, mattresses, pillows, linens and bedding, cleaning, paper and other supplies, napkins and tablecloths, upholstery material, carpets, rugs,
engineers’ supplies, paint and painters’ supplies, employee uniforms and pool, tennis court and other recreational area cleaning and maintenance supplies and all goods and merchandise held in inventory for retail sale to guests of the
Hotel (or other parties) in any gift shop, spa, health club, lounge or any other common or recreational area located within or relating to the Hotels, including, without limitation, all food and beverage (alcoholic and nonalcoholic) inventory
(except to the extent any applicable law prohibits the transfer of unopened alcoholic beverages). 
  
 11.70 “Terminating Lessee” and “Terminating Lessees” shall have the meanings set forth in the Caption.

  
 11.71 “Terminating Lessee Parties”
shall have the meaning set forth in Section 8.2. 
  
 11.72 “Terminating Lessees Closing Documents” shall have the meaning set forth in Section 6.2(b)(i). 
  
 11.73 “Terminating Lessor” and “Terminating Lessors” shall have the meanings set forth in the Caption.

  

 Lease Termination Agreement - Page 35 

 11.74 “Terminating Lessors Closing Documents” shall have the meaning set forth in
Section 6.3(a). 
  
 11.75
“Terminating Lessors Indemnified Parties” shall have the meaning set forth in Section 7.2. 
  
 11.76 “Termination of Leasehold Interests” shall have the meaning set forth in Section 6.2(b). 
  
 11.77 “Title Updates” shall have the meaning set
forth in Section 8.4. 
  
 11.78 “Tray
Ledger” shall mean the revenue from rooms occupied as of 12:01 a.m. on the Closing Date, exclusive of food, beverage, telephone and similar charges which shall be retained by the Terminating Lessees, including any sales taxes, room taxes or
other taxes thereon. 
  
 11.79 “Uniform
System” shall mean the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, 1996, as adopted by the American Hotel and Lodging Association. 
  
 11.80 “Updated Accounting” shall have the meaning set forth in Section 6.5(d).

  
 11.81 “WARN Act” shall have the
meaning set forth in Section 4.3(a). 
  
 11.82
“Warranties” shall mean warranties, guaranties, indemnities, and claims for the benefit of Terminating Lessee with respect to the Hotels and FF&E. 
  
 11.83 “Wyndham” shall mean Wyndham International, Inc. 
  
 11.84 “Wyndham Indemnified Parties” shall have the
meaning set forth in Section 7.3. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 Lease Termination Agreement - Page 36 

							
	TERMINATING LESSEES:
	
	 SUMMERFIELD KPA LESSEE, L.P., a Delaware
 limited partnership

		
	 By:
	 	 Summerfield KPA Lessee LLC, a Delaware
 limited liability company, General Partner

			
	 	 	 By:
	 	 Summerfield KPA Lessee Manager Corp., a
 Delaware corporation, Manager

				
	 	 	 	 	 By:
	 	 /s/ Mark M. Chloupek

	 	 	 	 	 	 	 Mark M. Chloupek

	 	 	 	 	 	 	 Vice President

	
	 SUMMERFIELD HOTEL LEASING COMPANY, L.P.,
 a Kansas limited partnership

		
	 By:
	 	 Summerfield Hotel Leasing Corporation,
 a Kansas corporation, General Partner

			
	 	 	 By:
	 	 /s/ Mark M. Chloupek

	 	 	 	 	 Mark M. Chloupek

	 	 	 	 	 Vice President

	
	 PATRIOT AMERICAN HOSPITALITY, L.P.,
 a Virginia limited partnership

		
	 By:
	 	 PAH GP, Inc., a Delaware corporation,
 General Partner

			
	 	 	 By:
	 	 /s/ Mark M. Chloupek

	 	 	 	 	 Mark M. Chloupek

	 	 	 	 	 Vice President

  

 Lease Termination Agreement - Page 37 

 The undersigned joins in the execution of this Agreement solely for the purpose of evidencing its consent
and agreement to the terms of this Agreement providing for (a) the termination of the Lease Agreements and the Leasehold Estates, (b) the termination of sublease(s) (other than the Leases) occasioned by the termination of the Leasehold Estates, (c)
the termination of the management agreement currently in place with respect to each Hotel, (d) the termination of the existing franchise agreement pertaining to each Hotel and the execution and delivery of the Franchise Agreement and delivery of the
comfort letter as provided, (e) restrictions on solicitation of employees as set forth in Section 4.3(b), and (f) its indemnification obligations as set forth in Section 7.2. 
  

			
	 WYNDHAM INTERNATIONAL, INC.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Mark M. Chloupek

	 	 	 Mark M. Chloupek

	 	 	 Vice President

  

 Lease Termination Agreement - Page 38 

					
	TERMINATING LESSORS:
	
	 INNKEEPERS SUMMERFIELD GENERAL, L.P.,
 a Virginia limited partnership

		
	 By:
	 	 Innkeepers RI Northwest, Inc., a Virginia corporation,
 General
Partner

			
	 	 	 By:
	 	 /s/ Mark A. Murphy

	 	 	 	 	 Mark A. Murphy, Vice President

	
	 INNKEEPERS SUMMERFIELD GENERAL II, L.P.,
 a Virginia limited partnership

		
	 By:
	 	 Innkeepers Financial Corporation V, a Virginia
 corporation, General Partner

			
	 	 	 By:
	 	 /s/ Mark A. Murphy

	 	 	 	 	 Mark A. Murphy, Vice President

	
	 INNKEEPERS SUNRISE TINTON FALLS, L.P.,
 a Virginia limited partnership

		
	 By:
	 	 Innkeepers Financial Corporation IV, a Virginia
 corporation, General Partner

			
	 	 	 By:
	 	 /s/ Mark A. Murphy

	 	 	 	 	 Mark A. Murphy, Vice President

  

 Lease Termination Agreement - Page 39Form of Summerfield Suites

 Exhibit 10.36 
  
 FRANCHISE AGREEMENT 
  
 BETWEEN 
  
 SUMMERFIELD HOTEL COMPANY, L.P. 
 (Franchisor) 
  
 and 
  
 KPA LEASECO IV, INC. 
 (Franchisee) 
  
 dated

  
 FEBRUARY 24, 2004 
  
 for a 
  
 SUMMERFIELD SUITES® BY WYNDHAM HOTEL 
  
 EL SEGUNDO, CALIFORNIA 
  
 Form Dated: May 1, 2002 
 (UFOC Dated: May 1, 2002) 

 SUMMERFIELD HOTEL COMPANY, L.P. 
 FRANCHISE AGREEMENT 
  
 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page No.

	 I.
	 	GRANT OF FRANCHISE	  	1
			
	 II.
	 	TERM	  	2
			
	 III.
	 	FEES	  	3
			
	 IV.
	 	FRANCHISEE COUNCIL	  	4
			
	 V.
	 	MANAGEMENT, STAFFING AND TRAINING	  	4
			
	 VI.
	 	HOTEL OPERATIONS	  	6
			
	 VII.
	 	FURNISHING AND MAINTAINING THE HOTEL	  	8
			
	 VIII.
	 	RESERVATION AND PROPERTY MANAGEMENT SYSTEMS	  	9
			
	 IX.
	 	ADVERTISING AND MARKETING	  	10
			
	 X.
	 	PROPRIETARY MARKS	  	12
			
	 XI.
	 	MANUAL	  	13
			
	 XII.
	 	CONFIDENTIAL INFORMATION	  	14
			
	 XIII.
	 	ACCOUNTING AND RECORDS	  	15
			
	 XIV.
	 	INSURANCE	  	15
			
	 XV.
	 	TRANSFERABILITY OF INTEREST	  	17
			
	 XVI.
	 	SECURITIES OFFERINGS	  	20
			
	 XVII.
	 	DEFAULT AND TERMINATION	  	21
			
	 XVIII.
	 	OBLIGATIONS UPON TERMINATION	  	22
			
	 XIX.
	 	CONDEMNATION AND CASUALTY	  	23
			
	 XX.
	 	TAXES, PERMITS AND INDEBTEDNESS	  	24
			
	 XXI.
	 	INDEPENDENT CONTRACTOR AND INDEMNIFICATION	  	25
			
	 XXII.
	 	APPROVALS AND WAIVERS	  	25
			
	 XXIII.
	 	REPRESENTATION OF FRANCHISEE	  	26
			
	 XXV.
	 	ENTIRE AGREEMENT	  	26

  

 - i - 

					
	 XXVI.
	  	CONSTRUCTION AND SEVERABILITY	  	27
			
	 XXVII.
	  	DISPUTE RESOLUTION AND GOVERNING LAW	  	27
			
	 XXVIII.
	  	REMEDIES; CURRENCY	  	29
			
	 XXIX.
	  	WAIVER OF JURY TRIAL	  	29
			
	 XXX.
	  	FRANCHISEE ACKNOWLEDGMENTS	  	29

  
 ATTACHMENTS 
  

			
	 Attachment A-
	 	 Selected Terms

		
	 Attachment B-
	 	 Guaranty

		
	 Attachment C-
	 	 Management Company Rider

		
	 Attachment D-
	 	 Definitions

  
 ADDENDA 
  

			
	 Conversion Addendum
	 	 [Intentionally omitted]

	 New Construction Addendum
	 	 [Intentionally omitted]

	 First Amendment to Franchise Agreement

  

 - ii - 

 SUMMERFIELD HOTEL COMPANY, L.P. 
 FRANCHISE AGREEMENT 
  
 THIS AGREEMENT is made and entered into as of the 24th day of February 2004, to be
effective as of the Effective Date, between Summerfield Hotel Company, L.P., a Kansas limited partnership (“Franchisor”), and KPA Leaseco IV, Inc. (“Franchisee”). Certain terms used in this Agreement are defined in Attachment D.

  
 WITNESSETH: 
  
 WHEREAS, Franchisor or its Affiliates have developed and Franchisor has the
right to use and license the use of a System for the establishment and operation of extended stay all-suite hotels under the Proprietary Marks; and 
  
 WHEREAS, Franchisee is the owner of the fee or long-term leasehold interest in the property at the Approved Location identified in Attachment A to this
Agreement and desires to obtain a license to use the Proprietary Marks and the System to operate the Hotel located or to be located at the Approved Location under the System and the Proprietary Marks; and 
  
 WHEREAS, Franchisee understands and acknowledges the importance of operating
in conformity with Franchisor’s standards and specifications in order to enhance public acceptance of, and demand for, all System Hotels; and 
  
 WHEREAS, in entering into this Agreement Franchisor is relying upon the business skill, financial capacity and character of Franchisee and its Principals
and the guaranty of Franchisee’s obligations under this Agreement by its Controlling Principals, each of whom has executed a Guaranty in the form of Attachment B to this Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 I. GRANT OF FRANCHISE 
  
 A. Grant. As of the Effective Date, Franchisor grants to Franchisee, upon the terms and conditions contained in this Agreement, the nonexclusive
right and license, and Franchisee undertakes the obligation, to operate the Hotel under the System and the Proprietary Marks at, and only at, the Approved Location, in accordance with this Agreement and Franchisor’s standards, specifications,
policies and procedures, and to use, solely in connection with the operation of the Hotel at the Approved Location, the Proprietary Marks and the System as such may be changed, improved and further developed from time to time. This franchise and
Franchisee’s rights under this Agreement are granted only for the number of guest rooms specified in Attachment A. Franchisee shall not expand or change the number of guest rooms or make other structural changes to the Hotel without the prior
written consent of Franchisor. 
  
 B. Reserved Rights.
Franchisee acknowledges and agrees that (i) this franchise relates solely to the operation of the Hotel at the Approved Location; and (ii) this Agreement does not entitle Franchisee to any protected territory, territorial rights or exclusivity.
Franchisee further acknowledges and agrees that Franchisor and its Affiliates retain the right to develop and operate, and to license others to develop and operate, hotels and lodging facilities (including, without limitation, extended stay
facilities) or other business operations of any type whatsoever, under the Proprietary Marks or under other trade names, trademarks and service marks, at any location except the Approved Location, including locations adjacent, adjoining or proximate
to the Approved Location, and that these business operations may compete directly with and adversely affect the operation of the Hotel. Franchisee agrees that Franchisor and its Affiliates may exercise these rights from time to time without notice
to Franchisee, and Franchisee covenants that it shall not take any action, including any action in a court of law or equity, which may interfere with the exercise of such rights. 

 C. Promotion of System. Franchisee acknowledges that Franchisor has and may have business
interests other than the operation of the network of System Hotels and that Franchisor, in its sole discretion, may identify, define, and act upon such interests in the manner it deems appropriate. Franchisee further acknowledges that business
decisions made by Franchisor and its Affiliates may impact Franchisee and agrees that Franchisor and its Affiliates have no express obligation or implied duty to protect Franchisee from the consequences of such business decisions and expressly
waives any right to assert any claim against Franchisor or its Affiliates based on the existence, actual or arguable, of any such obligation or duty. 
  
 D. Obligations Commencing on Effective Date. The obligations of the parties derived from the grant of the franchise and the right to become part of
the System (including, but not limited to, those set forth at Sections III.B.-D., IV., V., VI., VII., VIII., IX., X., XI., and XIII. of this Agreement, but expressly excluding, without limitation, those in Sections V.A. (relating to management
company and management agreement approval procedures), V.B. (with respect to initial training) VII.A.1., XI., XII., XIV., XV., XVI., XVII., XVIII., XIX., XX., XXI., and XXVII.) shall begin as of the Effective Date. Franchisee understands and agrees
that it shall not open the Hotel for business under the System and the Proprietary Marks until the Effective Date, and Franchisee has no rights to the franchise or to the use of the System or the Proprietary Marks until the Effective Date. Upon any
such termination, this Agreement shall thereafter be deemed null and void, except for the obligations of Franchisee set forth in Section XVIII. hereof. 
  
 II. TERM 
  
 A. Term. Except as otherwise provided in this Agreement, the term of this Agreement shall begin on the date set forth in the preamble and shall
expire on the Expiration Date set forth in Attachment A. 
  
 B.
Renewal. Franchisee may, at Franchisee’s option, renew this franchise for one additional period of ten (10) years upon compliance with the following terms and conditions: 
  
 1. Franchisee shall not then be in default of any material provision of this Agreement, any amendment hereof or successor
hereto, or any other agreement between Franchisee and Franchisor or its Affiliates and Franchisee shall have substantially complied with all the material terms and conditions of such agreements during their respective terms; 
  
 2. Franchisee shall have satisfied all monetary obligations owed by
Franchisee to Franchisor and its Affiliates and to all suppliers to the Hotel and shall have met these obligations on a timely basis throughout the term of this Agreement; 
  
 3. Franchisee shall submit a renewal application to Franchisor not less than twenty-four (24) months nor more than
thirty-six (36) months prior to the end of the initial term; 
  
 4. The Hotel manager and other employees of Franchisee shall comply with Franchisor’s then-current training requirements. 
  
 5. Franchisee shall upgrade the Hotel, at Franchisee’s expense, to conform to the then-current standards and specifications of Franchisor, including,
without limitation, such structural changes, remodeling, redecoration, and modifications to existing improvements as may be necessary to do so. 
  
 6. Franchisee shall execute a general release of any and all claims against Franchisor and its Affiliates and the officers, directors, shareholders,
partners, agents, representatives, independent contractors, servants and employees of each of them, in their corporate and individual capacities, including, without limitation, claims arising under this Agreement or under federal, state or local
laws, rules, regulations or orders. 
  
 7. Franchisee shall
execute Franchisor’s then-current form of franchise agreement, which shall supersede this Agreement in all respects and the terms of which may differ from the terms of this Agreement including, without limitation, higher royalty and marketing
fees. Franchisee shall not be required to pay any additional initial fee but shall pay a renewal fee in an amount equal to fifty percent (50%) of Franchisor’s then-current initial franchise fee. 
  

 - 2 - 

 C. Effect of Expiration. If Franchisee does not qualify to renew, or elects not to renew, this
franchise in accordance with Section II.B., the franchise shall expire on the Expiration Date. Upon the expiration of this Agreement, Franchisee shall comply with the requirements of Section XVIII. hereof. 
  
 III. FEES 
  
 A. Initial Franchise Fee; Expansion Fee. 
  
 1. Upon the execution of this Agreement, Franchisee shall pay to Franchisor the initial franchise fee set forth in
Attachment A, less the amount of the application fee paid by Franchisee (as set forth in Attachment A), which shall be credited against the initial franchise fee. The initial franchise fee is paid by Franchisee to Franchisor in consideration for the
administrative and other expenses incurred by Franchisor in approving Franchisee’s site for the Hotel and in entering into this Agreement. 
  
 2. The initial franchise fee is based on the number of guest rooms at the Hotel initially approved by Franchisor. Franchisee shall have no right to expand
the number of guest rooms at the Hotel without Franchisor’s prior written consent and payment of an expansion fee in an amount equal to the then-current initial franchise fee per guest room for each additional guest room proposed to be added.
Franchisee shall pay the expansion fee to Franchisor with its application for approval of the proposed expansion, which approval will be at the sole discretion of Franchisor. If Franchisee’s application for expansion is approved by Franchisor,
the expansion fee shall be non-refundable. If Franchisee’s application for expansion is not approved by Franchisor, Franchisor will refund the expansion fee, less Franchisor’s application processing charge. 
  
 B. Royalty. In consideration for Franchisee’s continuing use of
the Proprietary Marks and the System, Franchisee shall pay to Franchisor a continuing monthly royalty fee beginning on the Effective Date and continuing during the term of this Agreement in an amount equal to five percent (5%) of the Gross Room
Revenues of the Hotel. 
  
 C. Marketing Fee. Beginning on
the Effective Date, Franchisee shall remit to Franchisor on a monthly basis an amount equal to one and one-half percent (1.5%) of the Gross Room Revenues of the Hotel (the “Marketing Fee”) as a contribution to the Central Marketing Fund
(defined in Section IX.B.), which shall be maintained and administered for the System by Franchisor or its designee as provided in Paragraph IX.B. hereof. Each System Hotel owned or managed by Franchisor or its Affiliates shall make contributions to
the Central Marketing Fund at generally the same rate required of franchisees. Franchisor may increase the Marketing Fee periodically to an amount consistent with the Marketing Fee allocation for all System Hotels, including System Hotels which are
owned or managed by Franchisor or its Affiliates. 
  
 D.
Reservation System Fees. Beginning on the Effective Date, Franchisee shall pay to Franchisor or its designee reservation system fees in an amount equal to the allocated reservation center cost per reservation charged to all System Hotels,
including System Hotels which are owned or managed by Franchisor or its Affiliates. Reservation center costs shall be paid or reimbursed on the basis of an initial link-up charge and on the cost for handling reservations made for the Hotel.
Reservation system fees shall be subject to increase or decrease by Franchisor, provided that any increase or decrease shall apply equally to all System Hotels, including System Hotels which are owned or managed by Franchisor or its Affiliates.
Franchisor reserves the right to modify or change the reservation system and the basis for computing reservation system fees, provided the fees are computed on the same basis for all System Hotels. 
  
 E. National Sales Fee. Beginning on the Effective Date, Franchisee
shall pay to Franchisor or its designee a continuing monthly national sales fee in an amount equal to one-half percent (0.5%) of the Gross Room Revenues of the Hotel. The national sales fee is for national group sales services, regional convention
sales services and transient business sales services provided by Franchisor’s National Sales Office. 
  
 F. Regional Cooperative Marketing Fee. Franchisee shall pay to Franchisor or its designee a continuing monthly regional cooperative marketing fee,
beginning on the Effective Date and continuing during the term of this Agreement, in an amount equal to one-half percent (0.5%) of the Gross Room Revenues of the Hotel. 
  

 - 3 - 

 G. Due Dates. All payments required in Sections III.B, III.C, III.E, and III.F shall be paid to
Franchisor by the fifteenth (15th) day of each month with respect to the Gross Room Revenues for the preceding month, and shall be submitted to Franchisor together with any reports required under Section XIII. of this Agreement. All payments
required in Section III.D. and all other invoices forwarded by Franchisor or its Affiliates to Franchisee, shall be paid as provided in the invoice or, if the invoice does not specify a date for payment, within thirty (30) days after
Franchisee’s receipt of the invoice. Any payment or report not actually received by Franchisor on or before the date due shall be deemed overdue. If any payment is overdue, Franchisee shall pay to Franchisor, in addition to the overdue amount
and as a late charge, interest on such amount from the date it was due until paid, at one and one-half percent (1.5%) per month or the maximum rate permitted by law, whichever is less. Entitlement to the late charge shall be in addition to any other
remedies Franchisor may have. If Franchisor is ever deemed to have contracted for, charged, or received interest in an amount that exceeds the amount permitted under applicable law, then the excess amount shall be deemed to be, and shall be treated
as, a payment of outstanding fees or other amounts due under this Agreement and, if no such amounts remain outstanding, any remaining excess shall be paid to Franchisee, as applicable. 
  
 H. No Right to Withhold or Offset. Franchisee shall have no right to withhold payment of any fee required by this
Section III. on account of Franchisor’s breach or alleged breach of this Agreement. Further, Franchisee shall have no right to offset any fee required by this Section III. against any obligation that Franchisor may owe to Franchisee.

  
 IV. FRANCHISEE COUNCIL 
  
 A. Establishment of Council. During the term of this Agreement,
Franchisor may, but is not obligated to, establish, or authorize the establishment of, a council (“Council”) to serve as an advisory body to Franchisor with respect to such matters relating to System Hotels as Franchisor, in its sole
judgment, deems appropriate. If a Council is established, then all franchisees of the System (including Franchisee) and Franchisor shall be members of the Council. 
  
 B. Governing Rules. The Council will be subject to such terms (including membership, representative qualification and
election, purpose and authority) as Franchisor may, in its sole judgment, authorize or approve in writing. 
  
 C. Voting. For all matters on which members of the Council in good standing are authorized to vote under the Bylaws of the Council, each franchisee
member shall be entitled to one (1) vote for each System Hotel and the Proprietary Marks it has in operation, and Franchisor shall be entitled to one (1) vote for each System Hotel and the Proprietary Marks which is owned or managed by Franchisor or
its Affiliates “Good standing” means that Council dues and assessments are current, Franchisor has authorized a franchisee member to open and operate its Hotel under the System and the Proprietary Marks, and such franchisee member is not
in default under its franchise agreement. 
  
 D. Dues and
Assessments. Franchisee shall pay to the Council all dues and assessments authorized by the Council and shall otherwise maintain its membership in the Council in good standing. 
  
 V. MANAGEMENT, STAFFING AND TRAINING 
  

A. Hotel Management. Franchisee will at all times retain and exercise management control over the Hotel. Any lease, management agreement or
other arrangement for operating the Hotel or any part thereof (including, without limitation, food and beverage service facilities) shall be subject to Franchisor’s prior written consent. 
  
 1. If Franchisee wishes to engage a management company to manage the Hotel,
Franchisee shall apply to Franchisor for its consent. In order to be approved by Franchisor, a proposed management company must be deemed by Franchisor, in its reasonable judgment, qualified to manage the Hotel. Franchisor may refuse to approve any
proposed management company which, in Franchisor’s reasonable judgment, is not financially capable or responsible, is inexperienced or unqualified in managerial skills or operational capacity or capability, or is 
  

 - 4 - 

 otherwise unable to adhere fully to the obligations and requirements of this Agreement. Franchisor may also withhold its
approval if the proposed management company does not provide Franchisor with all information that Franchisor may reasonably request in order to reach such decision. It is understood that confidential information and materials are, in the normal
course of business, imparted to System franchisees and managers, and Franchisor will be under no obligation to approve any proposed management company that is a franchisor or owner, or is affiliated with the franchisor or owner, of a hotel trade
name which is competitive with Franchisor or its Affiliates, regardless of the number of hotels operating under such trade name. Franchisor reserves the right, at its option and upon reasonable notice, to revoke its approval of any management
company that fails to continue to meet Franchisor’s standards. 
  
 2. The management agreement between Franchisee and the management company for the management and operation of the Hotel shall be subject to the terms, conditions, and obligations of this Agreement. Prior to the execution of the management
agreement, the management agreement shall be submitted to Franchisor for Franchisor’s written approval, which shall not be unreasonably withheld, but which may be conditioned upon the inclusion of the following terms: 
  
 a. The management company shall have the exclusive authority and
responsibility for the day-to-day management of the Hotel; and 
  
 b. The Hotel will be operated during the term of the management agreement in compliance with this Agreement. 
  
 c. At Franchisor’s request, Franchisor shall be named as a third party beneficiary of the management agreement with the independent right to enforce
the provision described in Section V.A.2.b above, or the management company shall execute a separate rider to this Agreement (in substantially the form of Attachment C hereto), agreeing to be bound by those terms hereof that relate to the management
and operation of the Hotel and further agreeing to be bound by the covenants of confidentiality set forth herein. Further, at Franchisor’s request, the management company shall cause those of its key employees that Franchisor may require to
execute similar covenants of confidentiality, in a form reasonably acceptable to Franchisor. 
  
 d. If Franchisee terminates the management agreement pursuant to its terms, then Franchisee shall give Franchisor at least thirty (30) days’ prior written notice unless termination is due to extraordinary
circumstances requiring that Franchisee promptly remove the management company as the manager of the Hotel. 
  
 3. If Franchisee or any transferee permitted under Section XV. below (in either case, “Owner”) terminates an approved management agreement for
the operation of the Hotel pursuant to its terms, then Owner shall, within 6 months following the date of such termination, enter into a replacement management agreement with a replacement manager approved by Franchisor, as further described below.
During such 6 month period, Owner shall, with Franchisor’s consent, employ an interim manager to manage the Hotel under the System and the Proprietary Marks pending the execution of a new management agreement with a replacement manager.

  
 a. Any interim manager (as contemplated by this Section
V.A.3.) must be approved in writing by Franchisor. Franchisor shall not unreasonably withhold its consent to a proposed interim manager but shall have the right to require that such interim manager (a) be experienced in the operation of quality
hotels, as determined by Franchisor in its sole discretion; and (b) manage the Hotel in accordance with the terms and conditions of this Agreement under a short term agreement not to exceed six (6) months. 
  
 b. Owner shall diligently seek to obtain a replacement manager for the Hotel
throughout the period of time the Hotel is operated by any such interim manager. Any replacement manager and replacement management agreement shall be submitted to Franchisor for its written approval, which approval shall not be unreasonably
withheld, but which may be conditioned on the requirements set forth in Section V.A.2.a.-d. 
  
 B. Staffing; Training. Franchisee or its approved manager shall employ qualified personnel sufficient to staff all positions at the Hotel, as prescribed in the Manual. 
  

 - 5 - 

 1. All personnel employed at the Hotel in those positions designated by Franchisor to receive training
shall attend and successfully complete such initial and other training programs as Franchisor may from time to time require. Franchisor may also periodically make available other optional training courses to Franchisee’s personnel, as well as
other programs, conferences, seminars and materials. All training shall be provided at such times and locations and for such duration as Franchisor may designate. Before any employee attends any required or optional training program, Franchisee
shall pay to Franchisor the applicable tuition fees specified in the Manual or otherwise in writing. Franchisee shall also be responsible for its employees’ travel expenses and room, board and wages during any training program. As a condition
of providing training, Franchisor reserves the right to require that personnel receiving training execute confidentiality agreements prepared by Franchisor. All persons subsequently employed in positions designated by Franchisor to receive training
also must successfully complete Franchisor’s training programs. Franchisor shall determine, in its sole discretion, whether any person has successfully completed training. 
  
 2. Franchisor may provide Franchisee with on-site training at the Hotel for personnel involved in front desk, reservations,
housekeeping, engineering, and other operations, as determined by Franchisor. The number of Franchisor’s personnel and the time period for which such on-site training may be provided (if any) shall be determined by Franchisor based upon its
assessment of Franchisee’s requirements. Franchisee shall pay or reimburse Franchisor for the wages and all direct costs (including transportation, meals and lodging) of those persons providing such on-site training. 
  
 3. Franchisor may from time to time require certain personnel employed at the
Hotel to attend periodic meetings held to address matters of general interest to the System (including, without limitation, annual sales and rooms meetings) and may require Franchisee to pay the attendance fee specified in the Manual or otherwise in
writing. Such meetings shall be held at locations designated by Franchisor. Franchisee shall be responsible for the travel expenses and room, board and wages for its personnel attending any such meeting. 
  
 4. Without limiting the foregoing, any person employed as a general manager
for the Hotel shall attend and successfully complete (as determined by Franchisor in its sole discretion) Franchisor’s initial training program and the general manager and director of sales for the Hotel shall attend all required sales meetings
and shall devote full time to the management and operation of the Hotel. 
  
 5. Franchisee shall cause all employees, while working at the Hotel, to wear uniforms or otherwise dress as specified in the Manual, to present a neat and clean appearance, and to render competent and courteous
service to guests of the Hotel. 
  
 C. Nonsolicitation of
Employees. Unless the employee in question first solicits Franchisee for employment, Franchisee will not employ or seek to employ any person who is employed by Franchisor, its Affiliates, another System franchisee, or any other entity operating
under the System and shall not directly or indirectly induce any such person to leave his or her employment without first obtaining the written consent of Franchisor and such other employer. 
  
 VI. HOTEL OPERATIONS 
  
 A. Adherence to System Standards. Franchisee understands and
acknowledges that each and every standard, specification, policy and procedure of the System is essential in order to maintain the quality and guest service of System Hotels and to enhance public acceptance of, and demand for, System Hotels.
Franchisee shall conduct its operations in strict conformity with the standards, specifications, policies and procedures set forth in the Manual or otherwise in writing, which standards, specifications, policies and procedures shall be applied
consistently to all System Hotels. Notwithstanding the foregoing, however, if in the reasonable judgment of Franchisor local conditions or special circumstances (including the market area or the physical peculiarities of a hotel) warrant a deviation
from such standards, specifications, policies, or procedures, then Franchisor may allow such deviation. 
  
 B. Restricted Use of Hotel Premises. Franchisee shall use the Hotel premises solely for the operation of a Hotel under the System and the
Proprietary Marks and shall refrain from using, or allowing others to use, the 
  

 - 6 - 

 premises for any other purpose or activity at any time, without obtaining the prior written consent of Franchisor, which
may be withheld at Franchisor’s sole discretion. Franchisee shall not provide, or allow others to provide, any guest service or offer any product at the Hotel except as prescribed in the Manual or otherwise in writing. Franchisee shall not
permit any part of the Hotel premises to be used for gaming purposes without the prior written consent of Franchisor. 
  
 C. Promotion of Other Businesses. Without the prior written consent of Franchisor, which may be withheld in Franchisor’s sole discretion,
Franchisee and Franchisee’s manager shall ensure that no part of the Hotel or the System is used, without limitation, to further or promote a different or competing business, including advertising or promotion for hotels other than those
franchised by Franchisor or its Affiliates. In addition, except as expressly permitted in the Manual or otherwise consented to by Franchisor in writing, no part of the Hotel or the System shall be used to further or promote any other business or
concession at the Hotel. Franchisee shall use every reasonable means to encourage the use of System Hotels everywhere by the traveling public; provided, however, that nothing herein shall prohibit, and Franchisee agrees to participate in, any
program specified by Franchisor for referring prospective customers to other hotels when the customers cannot be accommodated by Franchisee’s Hotel or any other System Hotel and the Proprietary Marks. Nothing herein shall prohibit Franchisee or
an Affiliate of Franchisee from developing, operating or promoting other hotels or lodging facilities so long as Franchisee satisfies the provisions of Sections VI.A., B. and C. and Section XII. of this Agreement. 
  
 D. Food and Beverage Standards. Franchisee shall provide food and
beverage service in the Hotel in conformity with the standards and specifications prescribed in the Manual to insure the highest level of quality and service. Franchisee agrees to the following: 
  
 1. To use and operate all portions of the Hotel premises where food or
beverages are served solely for the benefit of the franchised business and to keep them open and in normal operation for such minimum hours and days as Franchisor may from time to time prescribe, and to refrain from using or allowing others to use
the premises for any other purpose or activity at any time without first obtaining the written consent of Franchisor; 
  
 2. To maintain in sufficient supply, and use at all times, only such food and beverage products and ingredients, supplies, paper goods, dinnerware and
furnishings as conform to Franchisor’s standards and specifications, and to refrain from deviating therefrom without Franchisor’s prior written consent; 
  
 3. To sell or offer for sale only those menu items and beverages prescribed in the Manual or otherwise approved in writing
by Franchisor, provided, that so long as such menu items and beverages comply with Franchisor’s standards and specifications and all applicable legal requirements (including, without limitation, all licensing and other requirements for the sale
of alcoholic beverages); to sell or offer for sale all required menu and beverage items as prescribed in the Manual or otherwise in writing by Franchisor; to prepare all menu items and beverages offered in accordance with Franchisor’s standards
and specifications and all applicable legal requirements; and to discontinue selling and offering for sale any items which Franchisor may, in its discretion, disapprove in writing at any time; and 
  
 4. To use only menus, signs, promotional displays and other materials that
comply with the style, pattern and design prescribed in the Manual or otherwise approved in writing by Franchisor. 
  
 E. Guest Services. Franchisee shall honor at the Hotel all credit cards specified in the Manual. Franchisee also agrees to participate in and shall
provide all information requested by Franchisor for the purpose of all customer surveys and guest satisfaction audits conducted by Franchisor. Franchisee shall offer all guest services, including complimentary services, that Franchisor may prescribe
for System Hotels including, without limitation, programs and services for senior citizens, children and frequent guests. Additionally, Franchisee shall offer all products and services and shall participate in all programs that Franchisor may
determine to be in the best interest of or may reasonably establish for the System, including, without limitation, guest-accessible high speed Internet access, guest recognition programs such as Wyndham By Request, in room, pay per view movies
(subject to Franchisor’s right to direct the type of adult movies which are offered and the time and manner in which such movies are offered) travel agent programs, complaint resolution programs and programs for the provision of complimentary
rooms or refunds to guests. 
  

 - 7 - 

 F. Quality Assurance Program; Inspections. Franchisor shall administer a quality assurance program
for the System which may include conducting periodic inspections of the Hotel and guest satisfaction audits and surveys to ensure compliance with System standards. Franchisee hereby grants to Franchisor and its representatives the right to enter
upon the premises of the Hotel at all reasonable times, with or without prior notice, for the purpose of conducting inspections. Franchisee shall pay a fee for each inspection, if any, assessed; shall provide lodging, if available, without charge to
Franchisor’s representatives during such time as may reasonably be necessary to complete the inspections; cooperate fully with Franchisor’s representatives during the inspections; and take all steps reasonably necessary to correct any
deficiencies detected within the time specified by Franchisor. 
  

	VII.	FURNISHING AND MAINTAINING THE HOTEL 

  
 A. Hotel Facilities, Equipment and Furnishings. 
  
 1. Prior to the Effective Date, Franchisee shall develop, construct, convert, equip and furnish the Hotel in accordance with the provisions of this
Agreement and the Manuals. Franchisee shall comply in all respects with all policies, procedures and requirements of Franchisor for the development or conversion of the Hotel as a System Hotel. 
  
 2. Franchisee shall, at Franchisee’s expense, purchase or lease and
install at the Hotel all facilities, appurtenances, furnishings, fixtures, equipment, furniture, computer terminals, hardware, software, and related equipment (including, without limitation, that required for the property management and reservation
systems specified by Franchisor), telephone and other communications systems, entertainment systems, facsimile machines and copiers, signs and other items (collectively, “FF&E”) specified by Franchisor for the System in the Manual or
otherwise in writing. Franchisee also shall install and maintain, or arrange to have installed and maintained, at the Hotel, all coin-operated vending machines specified by Franchisor for the System. 
  
 3. Franchisee shall refrain from installing or permitting to be installed at
the Hotel, without Franchisor’s prior written consent, any FF&E, electronic or video games, vending machines or any other items not previously approved by Franchisor. 
  
 4. The size, form, color scheme, content and location of all signs, advertisements and graphic materials displayed in any
public area or guest rooms at the Hotel shall be as prescribed in the Manual or otherwise approved in writing by Franchisor. 
  
 5. At Franchisor’s request, Franchisee shall install and maintain all modems, devices and equipment as Franchisor may specify in the Manual or
otherwise in writing to permit Franchisor to access electronically information pertaining to the operation of the Hotel, including, without limitation, Gross Room Revenues, the source and amounts of all other revenues generated at the Hotel, room
occupancy and rates, and reservations data. Franchisor shall have electronic access to such information at such times and in such manner as Franchisor shall from time to time specify. 
  
 B. Sourcing. All food products, beverages, supplies, and FF&E (excluding computer terminals, hardware, software,
and related equipment for the property management and reservation systems) used at or in the Hotel may be purchased from any source, provided such products meet the specifications provided for in the Manual. Computer terminals, hardware, software
and related equipment for the property management and reservations systems shall be purchased only from sources designated or approved by Franchisor. Notwithstanding the above, Franchisee acknowledges that Franchisor may specify a particular model
or brand of FF&E or other items for System Hotels that may be available from only one manufacturer or supplier. Additionally, Franchisor may at any time, in its discretion, specify that certain food products, beverages, FF&E, and supplies be
purchased only from designated or approved sources which have demonstrated, to the reasonable satisfaction of Franchisor, the ability to meet Franchisor’s standards and specifications for those items. If Franchisor has designated or approved
suppliers for any items, then prior to purchasing or leasing any such item from a source which has not been previously approved by Franchisor, Franchisee shall submit to Franchisor a written request for such approval, or shall request the source
itself to do so. Franchisor may require, as a condition of its approval, (i) that the source present satisfactory evidence of insurance protecting Franchisor and its franchisees against any and all claims arising from the use of such item by System
franchisees, and (ii) that samples of the item be delivered by the source, at 
  

 - 8 - 

 Franchisor’s option and at no cost to Franchisor, to Franchisor or its designee for inspection. A charge not to
exceed the cost of such inspection shall be paid to Franchisor by Franchisee or by the source seeking approval, and Franchisor shall not be liable for damage to any sample. Franchisor reserves the right, at its option, to revoke its approval as to
future purchases if a source fails to continue to meet Franchisor’s standards. 
  
 C. Hotel Maintenance. Franchisee shall maintain the Hotel, including, without limitation, all interior and exterior signs, parking areas, entrance ways, landscaping, and all other facilities and appurtenances
in first-class condition. In connection therewith, Franchisee shall make, at Franchisee’s sole cost and expense, all additions, alterations, repairs and replacements of signs and other FF&E as Franchisor may reasonably direct. Franchisee
shall not make any material alterations to the Hotel without obtaining the prior written consent of Franchisor. 
  
 D. Upgrades. Franchisor shall have the right, from time to time, to require by written notice that Franchisee upgrade the Hotel at
Franchisee’s sole cost and expense to conform to the building decor and trade dress and FF&E required under Franchisor’s then-current System standards (which standards shall be applied consistently throughout the System for hotels of
similar age within the same division as the Hotel), including, without limitation, such FF&E replacements, remodeling, redecoration and modifications to existing improvements as may be necessary to do so. Upgrades to the Hotel required by
Franchisor pursuant to this Section VII.D. shall be reasonable, considering the then-current System standards and requirements and the current structural design of the Hotel. Franchisee shall complete upgrading and remodeling of the Hotel as
required by Franchisor pursuant to this Section VII.D. within the time reasonably specified by Franchisor, and Franchisee acknowledges that its failure to do so shall, except for delays which may be caused by the occurrence of events constituting
force majeure, constitute a material default for which this Agreement may be terminated as provided in Section XVII.C. 
  
 E. Purchasing Services. Franchisor or one or more of Franchisor’s Affiliates may, at Franchisor’s option, provide purchasing services to
Franchisee in connection with Franchisee’s acquisition from third parties of some or all of the FF&E, food products, beverages, supplies and other items required in the operation of the Hotel and may offer such purchasing services to
Franchisee for a reasonable fee. 
  
 VIII. RESERVATION AND PROPERTY
MANAGEMENT SYSTEMS 
  
 A. Participation in Reservation
System. As long as Franchisee is in compliance with all material terms of this Agreement, Franchisor shall make available to Franchisee’s Hotel the reservation system provided by Franchisor for all System Hotels, which system may be
modified or changed from time to time by Franchisor. Franchisee acknowledges that offering the public a single, efficient reservation service is essential to the goodwill, reputation and success of the System. During the term of this Agreement,
Franchisee shall participate in the reservation system, shall enter into all agreements required by Franchisor in connection therewith, and shall observe all terms and conditions of participation as determined from time to time by Franchisor.
Franchisee shall honor and give first priority on available rooms to all confirmed reservations referred to the Hotel through the reservation system. Franchisee agrees that the only reservation system or service to be used in regard to outgoing
reservations referred by and from the Hotel to other hotels shall be the reservation system prescribed by Franchisor. Franchisee shall be solely responsible for notifying the reservation center of any changes in Franchisee’s room rates.
Franchisee shall not charge any guest a rate higher than the rate specified to the guest by the reservation center at the time the guest’s reservation was made. Such rate shall be the rate most recently provided to the reservation center by
Franchisee prior to the time the reservation was made, according to the records of such center. 
  
 B. Network Installation and Maintenance. Franchisee, at its expense, shall install and maintain at the Hotel all computer hardware, software and
related equipment necessary for participation in the reservation and property management systems required by Franchisor, including any future enhancements, additions, substitutions or other modifications specified by Franchisor. Franchisee shall
cause such systems to be configured to Franchisor’s specifications and shall pay all applicable installation, configuration, support and maintenance fees as and when due. Franchisee shall also be responsible for telephone line charges for
connecting Franchisee’s network to the wide area network designated by Franchisor, for the cost of supplies used in the operation of the equipment and for all other related expenses. 
  
 C. Software Licenses. Franchisee understands and acknowledges that all software and documentation for the property
management and the reservation system (if any), and all related documentation 
  

 - 9 - 

 provided to Franchisee under this Agreement (the “Software”), is provided under license from Franchisor or its
designee and Franchisee agrees to enter into all software license agreements required by Franchisor in connection therewith. The Software shall at all times remain the sole property of Franchisor or such designee. Franchisee shall at all times treat
the Software and all upgrades, enhancements and modifications thereto as confidential. Franchisee shall not at any time, without Franchisor’s prior written consent, copy, duplicate, modify, reverse engineer, or otherwise duplicate the foregoing
materials, in whole or in part, or otherwise make the same available to any unauthorized person. 
  
 D. Suspension from Reservation System. In the event Franchisee fails to pay royalties, Central Marketing Fund contributions, national sales fees,
or reservation system fees when due, or is otherwise in material default under this Agreement, Franchisor may, if such default is not cured within the applicable cure period (if any) pursuant to Section XVII. of this Agreement and after written
notice to Franchisee, suspend the Hotel from the reservation system for so long as Franchisee remains in default. Franchisee waives all claims against Franchisor arising from the Hotel’s suspension from the reservation system pursuant to this
Section VIII.D. Franchisor’s right to suspend the Hotel from the reservation system under this Section VIII.D. shall be in addition to any other rights Franchisor may have. 
  
 IX. ADVERTISING AND MARKETING 
  
 A. Advertising Approvals. All advertising by Franchisee in any medium shall be conducted in a dignified manner and shall conform to such standards
and requirements as Franchisor may specify in the System’s Graphics Manual, as such Graphics Manual may be modified by Franchisor from time to time. Franchisee shall submit to Franchisor (by mail, return receipt requested), for its prior
approval, samples of all advertising, promotional plans and materials and public relations programs that Franchisee wishes to use which deviate from the standards and requirements set forth in the Graphics Manual and which have not been either
provided or previously approved by Franchisor. Any advertising, marketing, or sales concepts programs or materials proposed or developed by Franchisee for the Hotel and approved by Franchisor may be used by other System Hotels without compensation
to Franchisee. Franchisor reserves the right to disapprove upon written notice to Franchisee any advertising materials previously provided to Franchisee by Franchisor or previously approved by Franchisor. 
  
 B. Central Marketing Fund. Recognizing the value of marketing and
advertising to all System Hotels, Franchisee agrees that Franchisor or its designee shall administer a Central Marketing Fund for System Hotels (“Fund”) as follows: 
  
 1. To the extent provided generally by the Franchisor for the benefit of the Hotel and other System Hotels. Franchisor will
provide for the Hotel during the term of this Agreement marketing services consisting of chain-wide and/or division level marketing programs, marketing collateral, research services, advertising, and public relations efforts. 
  
 2. On or before the fifteenth (15th) day of each calendar month during the
term of this Agreement, Franchisee shall pay or reimburse Franchisor for the provision of the marketing services by contributing to the Fund an amount equal to the Marketing Fee, as defined in Section III.C. The Marketing Fee will be collected and
applied to pay only the actual costs incurred and allocated by Franchisor in the provision of the marketing services as further described below. The Marketing Fee shall not be used to pay, and Franchisee shall pay separately, the costs of any
reservation and National Sales Office services (as provided in Sections III.D. and III.E. of this Agreement), as well as the costs (which may include, without limitation, mileage or other direct operating costs to marketing partners) of any third
party marketing partner programs (such as frequent flyer and similar programs) in which the Hotel participates that are direct-billed to participating hotels. Franchisee agrees that the Fund may be used to satisfy any and all costs of maintaining,
administering, directing, preparing, and producing advertising and other marketing services (including, without limitation, the cost of preparing and producing television, radio, magazine and newspaper advertising campaigns; website development and
maintenance; direct mail and outdoor billboard advertising; public relations activities; employing advertising agencies; and departmental and other costs of Franchisor’s personnel for advertising that is internally administered or prepared by
Franchisor). 
  
 3. Franchisor will expend the Marketing Fee at
such time and in such manner as it reasonably deems appropriate for the provision of the marketing services. Franchisee acknowledges that the Fund is 
  

 - 10 - 

 intended to maximize general public recognition, acceptance and use of the System and that Franchisor and its designees
undertake no obligation in administering the Fund to make expenditures which are equivalent or proportionate to Franchisee’s contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures
by the Fund. Prior to the expenditure thereof, the collected Marketing Fees may be held or maintained in one or more accounts, any of which also may include funds other than Marketing Fees, but Franchisor in any event shall provide reasonable
reports to Franchisee regarding the Marketing Fee. Franchisor also will permit Franchisee access to Franchisor’s records concerning the holding and expenditure of such Marketing Fee at any reasonable time or times during Franchisor’s
regular business hours. 
  
 C. National Sales Office
Services. To the extent provided generally by Franchisor for the benefit of the Hotel and other Wyndham Hotels in the same division as the Hotel, Franchisor will provide for the Hotel during the term of this Agreement, National Sales Office
services, such as national and regional convention, business and sales promotion services, trade show promotional services, and group booking services. The fee for such National Sales Office services shall be paid by Franchisee as provided in
Section III.E. of this Agreement. 
  
 D. Initial Opening
Campaign. In connection with the initial opening of the Hotel for business as a System Hotel, Franchisee shall conduct an advertising and marketing campaign as prescribed by Franchisor in the Manual or as otherwise agreed upon by Franchisee and
Franchisor. 
  
 E. System Directory. Franchisee agrees to
list the Hotel in the Directory and to furnish to Franchisor such information as Franchisor may request for that purpose. Franchisee agrees to honor the information that Franchisee causes to be published in the Directory and to comply with such
other requirements with respect to the Directory as may be specified from time to time in the Manual. Franchisee understands and acknowledges that Franchisor assumes no liability for, nor shall it be deemed liable by reason of, any failure by
Franchisee or other franchisees operating under the System to honor any Directory listings for the period during which each Directory is in effect. 
  
 F. Additional Marketing Programs. Franchisor may establish and coordinate cooperative advertising, marketing and sales programs, customer
satisfaction programs and other activities among System hotels and other lodging products of Franchisor and its Affiliates on a System-wide or local or regional basis and provide for participation therein by Franchisee. Franchisee shall participate
in such programs and activities on the same basis as other participating System hotels (including System hotels owned or managed by Franchisor or its Affiliates) in the same division or region as the Hotel, and such programs and activities will be
paid for outside the Fund in accordance with Sections III.F. and III.G. 
  
 G. Internet Website. 
  
 1. Franchisor has
established, or may establish, and maintain an Internet Website that provides information about the System and the accommodations and services provided by System Hotels. Franchisor will have sole discretion and control over the Website (including
timing, design, contents and continuation). Franchisor may use part of the Marketing Fees it collects under Section III.C. to pay or reimburse the costs associated with the development, maintenance and update of the Website. 
  
 2. At Franchisee’s request, Franchisor may (but is not required to)
include at the Website an interior page containing information about Franchisee’s Hotel. If Franchisor includes such information on the Website, Franchisor may require Franchisee to prepare all or a portion of the page, at Franchisee’s
expense, using a template that Franchisor provides. All such information will be subject to Franchisor’s approval prior to posting. 
  
 3. Franchisor also may (but is not required to) develop an Intranet network through which Franchisor and its franchisees can communicate by e-mail or
similar electronic means. If Franchisor develops such an Intranet network, Franchisee agrees to use the facilities of the Intranet in strict compliance with the standards, protocols and restrictions that Franchisor includes in the Manual (including,
without limitation, standards, protocols and restrictions relating to the encryption of confidential information and prohibitions against the transmission of libelous, derogatory or defamatory statements). 
  

 - 11 - 

 X. PROPRIETARY MARKS 
  
 A. Right to Use. Franchisor grants Franchisee the right to use the Proprietary Marks during the term of this
Agreement in accordance with the System and related standards and specifications. 
  
 B. Franchisee’s Acknowledgments. Franchisee understands and acknowledges the following: 
  
 1. As between Franchisor and Franchisee, Franchisor is the owner of all right, title and interest in and to the Proprietary Marks and the goodwill
associated with and symbolized by them. 
  
 2. Franchisee’s
use of the Proprietary Marks pursuant to this Agreement shall not give the Franchisee any right, title, or interest in or to any of the Proprietary Marks or any of Franchisor’s or its Affiliates’ service marks, trademarks, trade names,
trade dress, logos, patents, copyrights or proprietary materials, except the non-exclusive license to use the Proprietary Marks in accordance with the terms and conditions of this Agreement for the operation of the Hotel at the Approved Location.
Franchisee shall not have any right to, and Franchisee shall not, under any circumstances, use or display the Proprietary Marks except as approved by the Franchisor. 
  
 3. Franchisee understands and agrees that any and all goodwill arising from Franchisee’s use of the Proprietary Marks
shall inure solely and exclusively to the benefit of Franchisor or its Affiliates and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned as attributable to any goodwill associated
with Franchisee’s use of the Proprietary Marks. 
  
 4.
Franchisee shall not contest the validity of Franchisor’s or its Affiliates’ interest in the Proprietary Marks or assist others to contest the validity of such interest. Franchisee shall take no action that would prejudice or interfere
with the validity of Franchisor’s or its Affiliates’ rights with respect to the Proprietary Marks. 
  
 5. Franchisee acknowledges that any unauthorized use of the Proprietary Marks by Franchisee, and any other person or persons under its control, shall
constitute an infringement of Franchisor’s or its Affiliates’ rights in the Proprietary Marks and a material event of default hereunder. Franchisee agrees that it shall provide to Franchisor (at no cost to Franchisee unless such action is
necessitated by the wrongful acts of Franchisee or any person or persons under its control) all assignments, affidavits, documents, information and assistance Franchisor reasonably requests to fully vest in Franchisor or its Affiliates all right,
title and interest in and to the Proprietary Marks, including all such items as are reasonably requested by Franchisor to register, maintain and enforce such rights in the Proprietary Marks. 
  
 6. Franchisor reserves the right to modify the Proprietary Marks or
substitute different proprietary marks for use in identifying the System if the current Proprietary Marks no longer can be used, or if Franchisor, in its sole discretion, determines that substitution of different Proprietary Marks will be beneficial
to the System. Further, in the event of a sale or any other transfer or assignment of Franchisor’s rights under this Agreement, Franchisor also reserves the right to require any purchaser, assignee or transferee to cease using the Proprietary
Marks and substitute different names, marks, logos, insignia, slogans, emblems, designs or other identifying commercial symbols in connection with the continued operation of the business. In any such event, Franchisor may require Franchisee, at
Franchisee’s expense, to discontinue or modify Franchisee’s use of any of the Proprietary Marks or to use one or more additional or substitute names, marks, logos, insignia, slogans, emblems, designs or other identifying commercial
symbols. In that event, Franchisee shall, at its expense, discontinue or modify Franchisee’s use of any of the Proprietary Marks and use such additional or substitute names, marks, logos, insignia, slogans, emblems, designs or other identifying
commercial symbols as Franchisor or the purchaser, transferee or assignee may require. Notwithstanding the foregoing provisions of this Section X.B.6., however, in the event that the proposed schedule for the discontinuation, substitution or
modification of the Proprietary Marks referred to herein creates undue economic hardship for Franchisee, Franchisor and Franchisee (and, if applicable, any purchaser, transferee or assignee referred to herein) may by mutual agreement extend for a
reasonable period the time for compliance with the requirements hereof. 
  
 7. Franchisee acknowledges that Franchisor is the lawful, rightful and sole owner of the Internet domain name “www.summerfieldsuites.com” and any other Internet domain names registered by Franchisor, 
  

 - 12 - 

 and unconditionally disclaims any ownership interest in those or any colorably similar Internet domain name. Franchisee
agrees not to register any Internet domain name in any class or category that contains words used in or similar to any brand name owned by Franchisor or its Affiliates or any abbreviation, acronym, phonetic variation or visual variation of those
words. 
  
 C. Use of the Proprietary Marks. With respect to
Franchisee’s licensed use of the Proprietary Marks pursuant to this Agreement, Franchisee agrees that: 
  
 1. Unless otherwise authorized or required by Franchisor, Franchisee shall operate and advertise the Hotel only under the Proprietary Marks, without
prefix or suffix. Franchisee shall not use the Proprietary Marks as part of its corporate or other legal name or in connection with any other business activity or venture. 
  
 2. During the term of this Agreement, Franchisee shall identify itself as the owner of the franchised business in
conjunction with any use of the Proprietary Marks including, but not limited to, uses on invoices, order forms, receipts and contracts, as well as the display of a notice in such content and form and at such conspicuous locations on the premises of
the Hotel or any motor vehicle as Franchisor may designate in the Manual or otherwise in writing. 
  
 3. Franchisee shall not use the Proprietary Marks to incur any obligation or indebtedness on behalf of Franchisor or its Affiliates. 
  
 4. Franchisee shall comply with Franchisor’s instructions in filing and
maintaining the requisite trade name or fictitious name registrations, and shall execute any documents deemed necessary by Franchisor or its counsel to obtain protection of the Proprietary Marks or to maintain their continued validity and
enforceability. 
  
 D. Infringement. Franchisee shall
notify Franchisor immediately of any apparent infringement of or challenge to Franchisee’s use of any Proprietary Mark and of any claim by any person of any rights in any Proprietary Mark. Franchisee shall not communicate with any person other
than Franchisor or any designated affiliate of Franchisor, their counsel and Franchisee’s counsel in connection with any such apparent infringement, challenge or claim. Franchisor shall have complete and sole discretion to take such action as
it deems appropriate in connection with the foregoing, and the right to control exclusively, or to delegate control to any of its Affiliates, of any settlement, litigation, or Patent and Trademark Office or other proceedings arising out of any such
alleged infringement, challenge or claim or otherwise relating to any Proprietary Mark. Franchisee agrees to execute any and all instruments and documents, render such assistance, and do such acts or things as may, in the opinion of Franchisor,
reasonably be necessary or advisable to protect and maintain the interests of Franchisor or its Affiliates in any litigation or other proceeding or to otherwise protect and maintain the interests of Franchisor or any other interested party in the
Proprietary Marks, all at no cost to Franchisee unless such action is necessitated by the wrongful acts of Franchisee or any person or persons under its control. 
  
 E. Retained Rights. The right to use the Proprietary Marks granted hereunder to Franchisee is nonexclusive, and
Franchisor may use, and grant licenses to others to use the Proprietary Marks, and may establish, develop, and license other systems which use the Proprietary Marks and the System, without offering or providing Franchisee any rights in, to, or under
such other systems. Franchisor or its Affiliates may also engage, directly or indirectly, through their employees, representatives, licensees, assigns, agents and others, in the production, distribution, license and sale of products and services,
and may use in connection therewith the Proprietary Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics as may be developed or used from time to time
by Franchisor. 
  
 XI. MANUAL 
  
 A. The Manual. Franchisor has provided to Franchisee on loan a
current copy of Franchisor’s Manual (which may be in multiple volumes). The Manual contains, among other matters, minimum standards and requirements for constructing, equipping, furnishing, staffing and supplying the Hotel and management,
training and operational standards, procedures and techniques. The provisions of the Manual shall be consistently applied by 
  

 - 13 - 

 Franchisor to all System Hotels; provided that, if in the reasonable judgment of Franchisor local conditions or special
circumstances (including the market area or the physical peculiarities of a hotel in the System) warrant a deviation from such provisions, then Franchisor may allow such deviation. 
  
 B. Compliance with Manual. To protect the reputation and goodwill of Franchisor and to maintain high standards of
operation under the Proprietary Marks, Franchisee shall conduct its business in accordance with the Manual, other written directives which Franchisor may issue from time to time (whether or not such directives are included in the Manual), and any
other manuals and materials created or approved for use in the operation of the Hotel. The Manual, any such written directives and any other manuals and materials issued by Franchisor, and any modifications to such materials (collectively hereafter,
the “Manual”) shall supplement this Agreement. 
  
 C.
Confidentiality of Manual. Franchisee shall at all times treat the Manual and the information contained therein, as confidential, and shall maintain such information as confidential. Franchisee shall not at any time, without Franchisor’s
prior written consent, copy, duplicate, record or otherwise reproduce the Manual, in whole or in part, or otherwise make the same available to any unauthorized person. 
  
 D. Ownership of Manual. The Manual shall at all times remain the sole property of Franchisor and shall be returned to
Franchisor immediately upon the termination or expiration of this Agreement. 
  
 E. Revisions to Manual. Franchisor may from time to time revise the contents of the Manual. Franchisor shall provide to Franchisee a copy of all revisions and additions to the Manual, and Franchisee expressly
agrees to comply with each new or changed standard. 
  
 F.
Master Copy of Manual. Franchisee shall at all times ensure that Franchisee’s copy of the Manual is kept current and up-to-date, and in the event of any dispute as to the contents of said Manual, the terms of the master copy of the
Manual maintained by Franchisor at Franchisor’s home office shall be controlling. 
  
 G. Manual Replacement Fee. Franchisor will charge a replacement fee of Five Hundred Dollars ($500) for any replacement Manual requested by Franchisee. 
  
 XII. CONFIDENTIAL INFORMATION 
  
 A. Use of Confidential Information. Franchisee shall not, during the
term of this Agreement or thereafter, without Franchisor’s prior written consent, copy, duplicate, record, or otherwise reproduce, in whole or in part, the Manual, any Software and accompanying documentation developed for or used in the System,
or any other confidential information, knowledge, or know-how concerning the System or the operation of the Hotel which may be communicated or provided to Franchisee, or of which Franchisee may be apprised, by virtue of Franchisee’s operation
under this Agreement, or otherwise make the same available to any unauthorized person. Franchisee shall divulge such confidential information only to such of Franchisee’s employees or agents as must have access to it in order to operate the
Hotel. The contents of the Manual, all Software and accompanying documentation developed for or used in the System, and all other information, knowledge, know-how or other data which Franchisor designates as confidential shall be deemed confidential
for purposes of this Agreement. 
  
 B. Customer
Information. In partial consideration for the license to use the Proprietary Marks and the System and for the training Franchisee receives under this Agreement, Franchisee assigns and transfers to Franchisor all rights or interests that
Franchisee has or may have in customer lists and information relating to Hotel guests (including information obtained or used in connection with any guest recognition program), as constituted from time to time, with the result that such customer
lists and guest information shall be and remain Franchisor’s sole property. Franchisor grants Franchisee the right and license to use the customer lists and guest information during the term of this Agreement for the purposes contemplated
herein but for no other purpose. 
  
 The covenants in this Section
XII. shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Franchisee. 
  

 - 14 - 

 XIII. ACCOUNTING AND RECORDS 
  
 A. Maintenance of Books and Records. Throughout the term of this Agreement, Franchisee shall maintain and preserve,
for at least five (5) years from the dates of their preparation, full, complete and accurate books, records and accounts in accordance with generally-accepted accounting principles and in the form and manner prescribed in the Manual.
Franchisee’s obligation to preserve such books, records and accounts shall survive the termination hereof. 
  
 B. Monthly Reports. Franchisee shall, at Franchisee’s expense, submit to Franchisor by the fifteenth (15th) day of each month following the
Effective Date (including the first partial month if the Effective Date is other than the first day of a month), a statement in the form prescribed by Franchisor, accurately reflecting for the immediately preceding month all Gross Room Revenues, the
source and amounts of all other revenues generated at the Hotel, room occupancy and rates, reservations data, and such other data or information as Franchisor may require. 
  
 C. Financial Statements. Within thirty (30) days following the end of each fiscal quarter during the term of this
Agreement, Franchisee shall, at Franchisee’s expense, submit to Franchisor a balance sheet and an unaudited quarterly profit and loss statement for the Hotel on the form prescribed by Franchisor. Each statement shall be signed by an authorized
officer of Franchisee attesting that it is true and correct. In addition, Franchisee shall, at Franchisee’s expense, submit to Franchisor, within ninety (90) days following Franchisee’s fiscal year end, a complete annual audited financial
statement, prepared in accordance with generally accepted accounting principles by an independent certified public accountant satisfactory to Franchisor, showing the result of the operations of the Hotel during such fiscal year. 
  
 D. Additional Reports. Franchisee shall also submit to Franchisor, for
review and audit, such other forms, periodic and other reports, records, information and data as Franchisor may reasonably designate, in the form and at the times and places reasonably required by Franchisor, upon request and as specified from time
to time in the Manual or otherwise in writing. 
  
 E.
Audits. Franchisor or its designated agent shall have the right at all reasonable times, and upon reasonable notice to Franchisee, to examine and copy, at Franchisor’s expense, all books, records, accounts and tax returns of Franchisee
related to the operation of the Hotel during the preceding five (5) years. Franchisor also shall have the right, at any time, and upon reasonable notice to Franchisee, to have an independent audit made of the books, accounts and records of
Franchisee related to the operation of the Hotel. Franchisee shall provide lodging, if available, without charge to Franchisor’s agents during the time that may reasonably be necessary to complete such audits and shall render such other
assistance as may reasonably be requested. If an inspection or audit should reveal that payments have been understated in any report to Franchisor, Franchisee shall immediately pay to Franchisor upon demand, the amount understated plus interest from
the date such amount was due until paid. The rate of interest shall be one and one-half percent (1 1/2%) per
month or the maximum rate permitted by law, whichever is less. If an inspection or audit discloses an understatement in any one year of three percent (3%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and
expenses connected with the inspection or audit (including, without limitation, reasonable accounting and attorneys’ fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have. If an inspection should reveal
that Franchisee has made overpayments to Franchisor, the amount of any such overpayment, without interest, shall be credited against future payments due and payable to Franchisor by Franchisee hereunder. 
  
 XIV. INSURANCE 
  
 A. Coverage Requirements. Franchisee, at its expense, shall at all times during the term of this Agreement procure
and maintain such insurance as may be required by the terms of any lease or mortgage on the premises where the Hotel is located, and in any event no less than the following: 
  
 1. Property Insurance 
  

 - 15 - 

 a. Property insurance (or builder’s risk insurance during any period of construction) on the Hotel
buildings (including improvements and betterments) and contents against loss or damage by fire, lightning and all other risks covered by the usual all risks and replacement cost policy form, all in an amount not less than ninety percent (90%) of the
replacement cost thereof. 
  
 b. Boiler and machinery insurance
against loss or damage from boilers, heating apparatus, pressure vessels and pipes, air conditioning apparatus and electrical equipment written on a standard, broad form boiler and machinery policy (on a blanket or comprehensive basis) and including
repair and replacement coverage. 
  
 c. Business interruption
insurance covering at least twenty-four (24) months’ loss of profits and necessary continuing expenses for interruptions caused by any occurrence covered by the insurance referred to in a. and b. immediately above and Franchisee’s royalty
and Marketing Fee calculated on the basis of the Gross Room Revenues used as the basis for calculation of the business interruption insurance award. Such business interruption insurance shall be written on an all risks form, either as an endorsement
to the policies described in 1.a. and b. above or on a separate policy. 
  
 2. Workers’ compensation insurance in statutory amounts on all employees of the Hotel and employer’s liability insurance in amounts not less than one million dollars ($1,000,000) per accident/disease, covering against liability in
respect of employees, agents and servants not covered by workers’ compensation insurance and against occupational disease benefits. 
  
 3. Commercial general liability insurance for any claims or losses arising or resulting from the Hotel, with combined single limits of one million dollars
($1,000,000) per each occurrence for bodily injury and property damage. The per location limit shall be not less than two million dollars ($2,000,000), and it shall apply in total to this Hotel only by specific endorsement. Such insurance shall be
on an occurrence policy form and shall include premises and operations liability, independent contractors liability, blanket contractual liability, liability with respect to all contracts, written and oral, products and completed operations
liability, broad form property damage liability, personal injury liability, liquor liability, incidental medical malpractice liability, garage keepers legal liability, water sports liability (where applicable) and worldwide jurisdiction. 

 
 4. Comprehensive automobile liability insurance including owned, non-owned
and hired vehicles for combined single limits of bodily injury and property damage of not less than one million dollars ($1,000,000) each occurrence. 
  
 5. Innkeeper’s legal liability insurance covering the property of guests in an amount not less than ten thousand dollars ($10,000) per guest and two
hundred fifty thousand dollars ($250,000) per occurrence. 
  
 6.
Safe depository insurance in an amount not less than two hundred fifty thousand dollars ($250,000) per occurrence. 
  
 7. Broad form umbrella excess liability which shall cover defense costs on a “first dollar” basis and shall provide coverage on a following form
in respect of all underlying coverages, in an amount not less than twenty five million ($25,000,000) (excess of employment liability, general liability and automobile liability required underlying limits) per location, covering against excess
liability over coverage provided by all primary general liability, automobile liability and employers’ liability insurance policies. Franchisor shall have the right to require Franchisee to increase the amount of coverage if, in
Franchisor’s reasonable judgment, such an increase is appropriate, and any such increase is applied consistently to all like System Hotels. 
  
 8. Fidelity bond coverage on all Hotel employees in an amount not less than five million dollars ($5,000,000). 
  
 B. General Requirements. The following general insurance requirements
shall be satisfied by Franchisee. 
  

 - 16 - 

 1. All insurance under Sections XIV.A.3. through 8. shall by endorsement specifically name Franchisor,
Franchisee, their respective Affiliates and their, and their Affiliates’, respective shareholders, partners, directors, officers, employees and agents as unrestricted additional insureds. All workers’ compensation and employers’
liability insurance under Section XIV.A.2. shall include a waiver of subrogation in favor of Franchisor. 
  
 2. Any deductibles or self insured retentions within the insurance policy or policies required hereunder shall not exceed twenty five thousand ($25,000),
or such higher amount as may be approved in writing in advance by Franchisor. All deductibles and retentions are the sole responsibility of Franchisee. 
  
 3. All insurance purchased in compliance herewith shall be placed with insurance companies reasonably acceptable to Franchisor, have a Best rating of
AVIII and licensed or registered to do business in the state where the Hotel is located. Non-admitted insurers providing umbrella excess liability coverage are not required to comply with the licensing requirements under Section insurers providing
umbrella excess liability under Section XIV.A.7. 
  
 4. All
insurance required hereunder shall be specifically endorsed to provide that the coverages will be primary and that any insurance carried by any additional insured shall be excess and non-contributory. 
  
 5. All insurance required hereunder shall contain an endorsement whereby the
policies shall not be canceled or materially changed without at least thirty (30) days’ prior written notice to Franchisee and Franchisor. 
  
 6. All insurance required hereunder may be effected under policies of blanket insurance which cover other properties of Franchisee and its Affiliates so
long as such blanket insurance fulfills the requirements herein. 
  
 7. Prior to the date of this Agreement, Franchisee shall deliver to Franchisor a certificate of insurance or certified copy of each insurance policy evidencing the coverages required herein and setting forth deductibles and the amounts
thereof, if any. Renewal certificates of insurance or certified copies of such insurance policy if requested by Franchisor shall be delivered to Franchisor not less than thirty (30) days prior to their respective inception dates. 
  
 8. Franchisee’s obligation to maintain the insurance hereunder shall not
relieve Franchisee of liability under the indemnity provisions set forth in Section XXI. of this Agreement, and each of the policies described in Section XIV.A.3. shall contain a contractual coverage endorsement specifically insuring the performance
by Franchisee of the indemnity obligations set forth in Section XXI. 
  
 9. All insurance shall be satisfactory to Franchisor in accordance with standards and specifications set forth in the Manual or otherwise in writing. 
  

XV. TRANSFERABILITY OF INTEREST 
  
 A. Transfer by Franchisor. Franchisor shall have the right to transfer this Agreement to any person or legal entity without prior notice to, or
consent of, Franchisee. Specifically, and without limitation of the foregoing, Franchisee agrees that Franchisor may sell its assets, its interest in the Proprietary Marks or the System to a third party; may offer its securities privately or
publicly; may merge, acquire other entities or be acquired by another entity directly or indirectly; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and with regard to any or all of the
above sales, assignments and dispositions, Franchisee expressly and specifically waives any claims, demands, or damages against Franchisor arising from or related to the transfer. Nothing contained in this Agreement shall require Franchisor to
continue any business operating under the System or to offer any services or products, whether or not bearing the Proprietary Marks, to Franchisee if Franchisor assigns its rights in this Agreement in accordance with the provisions of this Section
XV.A. 
  
 B. Transfer by Franchisee - Franchisor’s Consent
Required. Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee, and that Franchisor 
  

 - 17 - 

 has granted this franchise in reliance on the business skill, financial capacity, and character of Franchisee and its
Principals. Accordingly, except as provided in Section XV.C. (regarding certain permitted transfers) and Section XVI. (regarding transfers of interests in publicly-held franchisees) of this Agreement, neither Franchisee nor any Principal shall sell,
transfer, convey, give away, pledge, exchange, lease, mortgage, or otherwise encumber any direct or indirect interest in the Hotel (including a substantial portion of the assets of the Hotel inclusive of buildings and real estate), in this Agreement
(including Franchisee’s obligations under this Agreement), in Franchisee, or in any person or entity that owns a controlling interest in Franchisee, without the prior written consent of Franchisor. Except as provided in this Section XV. and
Section XVI. of this Agreement, any purported assignment or transfer, by operation of law or otherwise, not having the prior written consent of Franchisor shall be null and void and shall constitute a material breach of this Agreement, for which
Franchisor may terminate this Agreement pursuant to Section XVII.B.5. of this Agreement and seek injunctive relief as well as monetary damages. 
  
 C. Permitted Transfers. Notwithstanding any other provision of this Section XV. or Section XVI.: 
  
 1. Franchisee may transfer its interest in this Agreement to another legal
entity, if (a) there is no uncured event of default under this Agreement, (b) following such transfer, Franchisee has and continues to have during the term of this Agreement a controlling interest in the transferee, (c) the transferee entity
unconditionally assumes in writing all of Franchisee’s past, present and future obligations under this Agreement and delivers a copy of such written assumption agreement to Franchisor, (d) Franchisee executes a guaranty of the transferee’s
obligations that is substantially the same as the form of Guaranty attached as Exhibit B, and (e) Franchisee provides prior written notice to Franchisor. No such transfer shall relieve or excuse the liability of Franchisee or any person or entity
who guaranteed or is otherwise liable for Franchisee’s performance hereunder for the past and continuing performance of this Agreement, and such liability shall extend to any subsequent amendments, renewals and modifications of this Agreement
(and any extensions, adjustments or compromises of claims) which are effective between Franchisor and the then-current franchisee notwithstanding the absence of any notice to or approval by those parties who remain liable, all of whom waive all
notices and agree that Franchisor may proceed directly against them without proceeding against any other person or entity who may also be liable therefor. At Franchisor’s request, such persons further agree to execute or reexecute a form of
guaranty substantially similar to the form of Guaranty attached to this Agreement. 
  
 2. Any individual holding an interest in Franchisee may transfer all or a portion of his or her interest in Franchisee to any immediate family member, to a trust established for the benefit of any such immediate
family member, or to an entity in which such individual has and maintains a controlling interest if (a) there is no uncured event of default under this Agreement, (b) the transferor provides prior written notice to Franchisor, and (c) any transferor
who transfers a controlling interest executes a guaranty substantially similar to the form of Guaranty attached as Attachment B and continues to maintain the unrestricted power to direct, directly or indirectly, the management and policies of the
Franchisee, including those relating to the payment of financial obligations, as reasonably determined by Franchisor. 
  
 3. Franchisee may assign, transfer, pledge, or hypothecate all or any part of the assets of the Hotel, excluding this Franchise and this Agreement (and,
if Franchisee is a corporation, partnership, limited liability company or other form of entity, all and any part of the ownership interests in Franchisee) to banks or other lending institutions for purposes of any refinancing or as collateral
securing a loan made directly to or for the benefit of the Hotel. 
  
 D. Conditions to Franchisor’s Consent. Franchisor shall not unreasonably withhold its consent to a transfer of any interest in the Hotel (including a substantial portion of the assets of the Hotel inclusive of buildings and real
estate), in this Agreement (including Franchisee’s obligations under this Agreement), in Franchisee, or in any person or entity that owns a controlling interest in Franchisee; provided, however, Franchisor may, in its sole discretion, require
any or all of the following as a condition of its consent: 
  
 1.
Transferor shall deliver to Franchisor a complete and accurate copy of any purchase and sale agreement or similar document covering the transaction, together with all such other documentation relating to the transaction as Franchisor may reasonably
request. Without limitation of the foregoing, if this Agreement is proposed to be the subject of a security interest, the mortgagee shall provide Franchisor with a non-disturbance agreement as to the Hotel and the franchised business at the Hotel in
form and substance reasonably acceptable to Franchisor; 
  

 - 18 - 

 2. Transferor shall satisfy all of Franchisee’s accrued monetary obligations to Franchisor and its
Affiliates, and shall execute a general release under seal in a form prescribed by Franchisor of any and all claims against Franchisor and its Affiliates, and their respective officers, directors, agents and employees, and shall pay to Franchisor a
transfer fee in an amount equal to fifty percent (50%) of Franchisor’s then-current initial franchise fee; 
  
 3. The proposed transferee shall submit to Franchisor an application, in the form prescribed by Franchisor, for a new franchise agreement to replace this
Agreement for its unexpired term. Franchisor reserves the right to reject an application for a transfer for reasons that may include, without limitation, the following: (i) if Franchisor deems the transferee’s proposed debt service to be too
great to permit the transferee to successfully operate the Hotel under the System, or (ii) if the proposed transferee or any of its affiliated entities (other than those holding interests as limited partners only) is the franchisor or owner, or is
affiliated with the franchisor or owner, of a hotel trade name which is competitive with Franchisor or its Affiliates, regardless of the number of hotels operating under such trade name; 
  
 4. Transferee shall demonstrate to Franchisor’s satisfaction that the transferee and its shareholders, members or
partners, as appropriate, meet Franchisor’s then-current managerial and business standards and have the aptitude and ability to conduct the franchised business (as may be evidenced by prior related business experience or otherwise); possess
good moral character, business reputation and credit rating; and have adequate financial resources and capital to operate the franchised business, and any management company to be engaged by transferee shall meet Franchisor’s then-current
standards; 
  
 5. Franchisor and the transferee will, upon
approval of transferee’s application, enter into a new franchise agreement which shall require transferee to upgrade the Hotel to conform to Franchisor’s then-current standards, and which new franchise agreement shall contain the standard
terms (except for duration) then being issued for new franchised hotels under the System. The date of the transferee’s new franchise agreement shall be the Effective Date of this Agreement, and the transferee will be required to certify in
writing that: (i) Franchisor did not endorse, recommend, or otherwise concur with the terms of the transfer, (ii) Franchisor did not comment upon any financial projections submitted by Franchisee to transferee, and (iii) Franchisor did not
participate in the decision of the price to be paid, which decision was made without any intervention, support or participation by Franchisor; and 
  
 6. Transferee’s general manager shall, prior to assuming management of the Hotel, successfully (as defined by Franchisor) complete the management
training program then being offered by Franchisor. 
  
 7.
Franchisee acknowledges that Franchisor has legitimate reasons to evaluate the qualifications of potential transferees and the proposed terms of their purchase. Franchisee also acknowledges that Franchisor’s contact with potential transferees
for the purpose of protecting its business interests will not constitute improper or unlawful conduct. Franchisee expressly authorizes Franchisor to investigate any potential transferee’s qualifications, to evaluate the proposed purchase terms,
and to withhold consent to those transactions which Franchisor, in its sole judgment, determines are not consistent with its business interests, including, without limitation, economically questionable transactions. Franchisee waives any claim that
any action Franchisor takes to protect its business interests in relation to a proposed transfer constitutes tortious interference with contractual or business relationships. 
  
 E. Death or Permanent Disability. In the event of the death or permanent disability of Franchisee or any Controlling
Principal, the interest of such person may be transferred in accordance with and subject to the terms of Section XV.D., provided that (i) any such transfer shall be made within six (6) months of the date of death or permanent disability and (ii) the
obligations of Franchisee under this Agreement are satisfied pending the transfer, including adequate provision for management of the Hotel. 
  

 - 19 - 

 F. Right of First Refusal 
  
 1. If Franchisee wishes to transfer all or part of its interest in the assets of the Hotel or this Agreement or if
Franchisee or a Controlling Principal of Franchisee wishes to transfer any ownership interest in Franchisee, pursuant to any bona fide offer received from a third party to purchase such interest, then such proposed seller shall
promptly notify Franchisor in writing of each such offer, and shall provide such information and documentation relating to the offer as Franchisor may require. Franchisor shall have the right and option, exercisable within thirty (30) days after
receipt of such written notification and copies of all documentation requested by Franchisor describing the terms of such offer, to send written notice to seller that Franchisor intends to purchase the seller’s interest on the same terms and
conditions offered by the third party. In the event that Franchisor elects to purchase the seller’s interest, closing on such purchase must occur within the later of sixty (60) days from the date of notice to the seller of Franchisor’s
election to purchase, sixty (60) days after the date Franchisor receives and obtains all necessary permits and approvals, or such other date as the parties agree upon in writing. Any material change in the terms of any offer prior to closing shall
constitute a new offer subject to the same right of first refusal by Franchisor as in the case of an initial offer. Failure of Franchisor to exercise the option afforded by this Section XV.F. shall not constitute a waiver of any other provision of
this Agreement, including all of the requirements of Section XV., with respect to a proposed transfer. 
  
 2. In the event an offer from a third party provides for payment of consideration other than cash or involves certain intangible benefits, Franchisor may
elect to purchase the interest proposed to be sold for the reasonable cash equivalent. If the parties cannot agree within a reasonable time on the reasonable cash equivalent of the non-cash part of the offer, then such amount shall be determined by
two (2) appraisers, with each party selecting one (1) appraiser, and the average of their determinations shall be binding. In the event of such appraisal, each party shall bear its own legal and other costs and shall bear the appraisal fees equally.
In the event that Franchisor exercises its right of first refusal herein provided, it shall have the right to set off against any payment due the seller (i) all fees for any such independent appraiser due from the seller hereunder, and (ii) all
amounts due from Franchisee or any of its Affiliates. 
  
 3.
Failure to comply with the provisions of this Section prior to the transfer of any interest in Franchisee, the Hotel or this Agreement shall constitute a material event of default under this Agreement. 
  
 XVI. SECURITIES OFFERINGS 
  
 A. Consent Requirement. Any transfer of securities in a publicly-held
Franchisee or in any publicly-held entity that owns a controlling interest in Franchisee which will result in a transfer of control requires Franchisor’s prior written consent, which shall be conditioned upon satisfaction of the requirements of
Section XV.D. and additionally upon satisfaction of the requirements of Section XVI.B. below. 
  
 B. Review of Offering Materials. In connection with any public or private offering of securities relating to Franchisee or the Hotel, whether or not involving a transfer of control, Franchisee shall:

  
 1. Submit to Franchisor at least forty-five (45) days before
the date on which the prospectus or any other offering material (collectively, the “Prospectus”) is first issued, a copy of the Prospectus for review. Franchisee shall reimburse Franchisor for its expense (including professional fees and
costs) in reviewing the proposed offering; 
  
 2. Fully and
unconditionally indemnify and hold harmless Franchisor and its affiliates in connection with the offering; 
  
 3. State clearly in the Prospectus and supporting materials and releases that Franchisor and its affiliates are not, in any way, participating in or
endorsing the offering; 
  
 4. Use the Proprietary Marks in the
Prospectus and in any related or supporting materials only as directed by Franchisor; and 
  
 5. Refrain from filing, publishing, issuing or releasing the Prospectus or any supporting or related materials without having received the prior written approval of Franchisor. 
  

 - 20 - 

 C. Scope of Review. Franchisor’s review of any Prospectus shall be limited solely to the
subject of the relationship between Franchisee and Franchisor and use of the Proprietary Marks, and its approval shall not constitute an endorsement or ratification of the offering, either express or implied. Franchisee agrees to make such changes
to the Prospectus and related materials as Franchisor may reasonably request in accordance with the guidelines for its review established by this Section. 
  
 XVII. DEFAULT AND TERMINATION 
  
 A. Termination - No Notice or Cure. Franchisee shall be deemed to be in default under this Agreement and all rights granted hereunder shall
automatically terminate without notice from Franchisor, if Franchisee shall become insolvent or make a general assignment for the benefit of creditors, or if a petition in bankruptcy is filed by Franchisee or such a petition is filed against and
consented to by Franchisee, or if Franchisee is adjudicated bankrupt, or if a bill in equity or other proceeding for the appointment of a receiver of Franchisee or other custodian for Franchisee’s business or assets is filed and consented to by
Franchisee, or if a receiver or other custodian (permanent or temporary) of Franchisee’s assets or property, or any part thereof, is appointed by any court of competent jurisdiction, or if proceedings for a compromise with creditors under any
state or federal law is instituted by, against or consented to by Franchisee, or if a final judgment remains unsatisfied or of record for ninety (90) days or longer (unless supersedeas bond is filed), or if execution is levied against the Hotel or
other real or personal property at the Hotel, or suit to foreclose any lien or mortgage against the Hotel or other real or personal property appurtenant thereto is initiated against Franchisee or if the real or personal property of the Hotel shall
be sold after levied upon by any sheriff, marshal, or constable. 
  
 B. Termination - Notice Only. Franchisee shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the
default, effective immediately upon Franchisee’s receipt (or first refusal of delivery) of notice, upon the occurrence of any of the following: 
  
 1. If Franchisee ceases to do business at the Hotel, or ceases to operate the Hotel under the Proprietary Marks and Systems, or loses ownership or
possession or the right to possession of the Hotel, or otherwise forfeits the right to conduct the franchised business at the Approved Location, except as otherwise provided in Section XIX.; 
  
 2. If a threat or danger to public health or safety results from the
construction, maintenance or operation of the Hotel, and an immediate shutdown of the Hotel is reasonably determined by Franchisor to be essential to avoid substantial liability or loss of goodwill; provided, however, Franchisor shall reinstate this
Agreement if, within six (6) months after termination under this Section XVII.B.2., the threat or danger to public health or safety is eliminated and Franchisor reasonably determines that reopening the Hotel would not cause a substantial loss of
goodwill; 
  
 3. If Franchisee or any Principal, officer, director
or employee of Franchisee is convicted of a felony or any other crime or offense that is reasonably likely, in the reasonable opinion of Franchisor, to adversely affect the System, the Proprietary Marks, the goodwill associated therewith, or
Franchisor’s interest therein; 
  
 4. If Franchisee
intentionally discloses or divulges the contents of the Manual, the Software (including accompanying documentation) or other trade secret or confidential information provided Franchisee by Franchisor contrary to Sections XI. and XII. hereof or fails
to exercise reasonable care to prevent such disclosure; 
  
 5. If
Franchisee or any Principal or Controlling Principal purports to transfer any rights or obligations under this Agreement or any interest in Franchisee or the franchised business to any third party contrary to the terms of Sections XV. or XVI. of
this Agreement; 
  
 6. If in an audit conducted pursuant to the
provisions of this Agreement Franchisee is determined to have (i) underreported Gross Room Revenues by five percent (5%) or more for any month during the term hereof, or (ii) underreported Gross Room Revenues by more than two percent (2%) twice in
any thirty-six (36) month period; 
  

 - 21 - 

 7. If Franchisee shall default in the payment of any amounts due Franchisor or any of its affiliates and
shall fail to pay the amount due within ten (10) days after receiving notice of the default; or 
  
 8. If Franchisee fails to comply with Franchisor’s quality assurance program and fails to cure any default under that program within the applicable
cure period. 
  
 C. Termination - Notice and Cure. Except
as provided in Sections XVII.A. and XVII.B. of this Agreement and except for any monetary default, Franchisee shall have thirty (30) days or such longer period as specified herein after its receipt from Franchisor (or first refusal of delivery) of a
written notice of default, within which to remedy any default and provide evidence thereof to Franchisor. Franchisee shall have ten (10) days after receipt of a written notice of default within which to cure any monetary default. If a default is not
cured within the time set forth above, or such longer period as applicable law may require or as Franchisor may deem necessary to permit Franchisee to cure any non-monetary default (provided Franchisee immediately commences, diligently and in good
faith pursues, and cures, such default), Franchisor shall have the right to terminate this Agreement upon notice to Franchisee. Franchisee shall be in default under this Agreement for any failure to comply with any of the requirements imposed by
this Agreement, as it may from time to time be supplemented by the Manual, including, without limitation, if Franchisee fails to carry out the terms of this Agreement in good faith. 
  
 XVIII. OBLIGATIONS UPON TERMINATION 
  

Upon termination or expiration of this Agreement, all rights granted hereunder to Franchisee shall forthwith terminate, and Franchisee shall comply
with all of the obligations applicable to the Approved Location as set forth in this Section XVIII. 
  
 A. Cease Operation as System Hotel. Franchisee shall immediately cease operation of the Hotel under the System and the Proprietary Marks and shall
not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor. 
  
 B. Discontinue Use of Proprietary Marks. Franchisee shall immediately and permanently cease to use, by advertising or in any other manner
whatsoever, the Proprietary Marks, all variations thereof, any other identifying characteristics and marks of the System, and all confidential methods, procedures and techniques associated with the System. Franchisee shall forthwith remove from its
place of business, and discontinue using for any purpose, any and all signs, fixtures, furniture, furnishings, equipment, advertising materials, stationery, supplies, forms or other articles which display the Proprietary Marks or any distinctive
features or designs associated with the System. Any signs containing the Proprietary Marks which Franchisee is unable to remove within one day of expiration or termination of this Agreement shall be completely covered by Franchisee until the time of
their removal. 
  
 C. Deidentify. Franchisee shall, at its
expense, promptly remove all distinctive signs, emblems, amenities and other items bearing the Proprietary Marks, change directory and other listings to remove all reference to such Proprietary Marks and to any telephone or other number used
generally by other System Hotels for reservation or other purposes and make such specific additional changes as Franchisor may reasonably request to prevent any possibility that the public may confuse the Hotel with a System Hotel and the
Proprietary Marks. Until all modifications and alterations required by this Section XVIII.C. are completed, Franchisee shall take all such actions as may reasonably be required by Franchisor to advise all customers and prospective customers that the
Hotel is no longer associated with the System. Franchisee expressly acknowledges that its failure to make such alterations will cause irreparable injury to Franchisor. 
  
 D. Cancel Assumed Name Certificate. Franchisee shall take such action as may be necessary to cancel any assumed name
or equivalent registration which contains the Proprietary Marks or any variation thereof, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination
or expiration of this Agreement. 
  
 E. Pay Liquidated
Damages. In the event that termination of this Agreement after the Effective Date is the result of Franchisee’s default, Franchisee shall pay to Franchisor, as liquidated damages for the premature 
  

 - 22 - 

 termination of this Agreement and not as a penalty for breaching this Agreement or in lieu of any other payment, a lump
sum equal to the total amounts required under Sections III.B. and III.C. during the thirty-six (36) full calendar months of operation preceding the termination; or if the Hotel has not been in operation as a System Hotel for thirty-six (36) full
calendar months, the greater of: (i) thirty-six (36) times the monthly average of such amounts, or (ii) thirty-six (36) times such amounts as are due for the one full calendar month preceding such termination. Notwithstanding the foregoing sentence,
if the number of months remaining between the date of Franchisor’s written notice of default (or, in the event of termination pursuant to Section XVII.A., the occurrence of the termination event) and the date on which the term of this Agreement
would otherwise have ended pursuant to Section II. hereof is less than thirty-six (36) months, then the time period for calculating the amount of liquidated damages shall be the number of months remaining in such term. The parties acknowledge that a
precise calculation of the full extent of the damages which Franchisor will incur in the event of termination of this Agreement as a result of Franchisee’s default is difficult in the extreme, and agree that the lump sum payment provided under
this Section XVIII.E. is reasonable in light of the damages for premature termination which Franchisor will incur in such event. Such payment of liquidated damages shall be in addition to amounts provided immediately below in Section XVIII.F. The
payment of liquidated damages hereunder shall not affect Franchisor’s rights to obtain appropriate equitable relief and remedies, such as injunctive relief to enforce Section X. hereof and specific performance to enforce Section XVIII. hereof.
In the event that this Agreement is terminated prior to the Effective Date, then this Section XVIII.E. shall not apply but the initial franchise fee paid by Franchisee hereunder shall be retained by Franchisor. 
  
 F. Pay Outstanding Amounts. Franchisee shall promptly pay all sums
owing to Franchisor and its Affiliates, and all suppliers. In the event of termination for any default of Franchisee, such sums shall include any payment to Franchisor required under Section XVIII.E. and all damages, costs and expenses, including
reasonable attorneys’ fees, incurred by Franchisor in obtaining (i) injunctive or other relief for the enforcement of any provisions of this Agreement, or (ii) contested termination of this Agreement. 
  
 G. Return of Manual and Other Materials. Franchisee shall immediately
deliver to Franchisor the Manual, instructions, Software and accompanying documentation, and all other materials provided by Franchisor related to the operation of the Hotel, and all copies thereof (all of which are acknowledged to be the
Franchisor’s property), and shall retain no copy or record of any of the foregoing, excepting only Franchisee’s copy of this Agreement and any correspondence between the parties, and any other documents which Franchisee reasonably needs
for compliance with any provision of law. 
  
 H. Purchase of
Certain Materials. Franchisor shall have the right but not the duty, to be exercised by notice of intent to do so within thirty (30) days after termination or expiration, to purchase any and all signs, advertising materials, supplies and
inventory and any other item bearing Franchisor’s Proprietary Marks, at the lower of Franchisee’s cost or fair market value. With respect to any purchase by Franchisor as provided herein, Franchisor shall have the right to set off all
amounts due from Franchisee under this Agreement. 
  
 I.
Survival. The obligations of Franchisee set forth in Article XVIII. shall survive the expiration or termination of this Agreement. 
  
 XIX. CONDEMNATION AND CASUALTY 
  
 A. Condemnation. Franchisee shall, at the earliest possible time, give Franchisor notice of any proposed taking by eminent domain. If the Hotel is
condemned, or such a substantial portion of the Hotel is condemned as to render impractical the continued operation of the Hotel in accordance with System standards, Franchisor may, in its sole discretion permit the transfer of the franchise to
another location submitted by Franchisee within one hundred eighty (180) days of the taking. The new Hotel must be converted or constructed and furnished in accordance with the then-current System standards and opened for business under the System
within two (2) years of the closing of the condemned Hotel. Franchisee shall give Franchisor ninety (90) days advance notice of the date of such opening. In the event that Franchisee does not submit a proposed location for a new Hotel, this
Agreement shall terminate upon notice by Franchisor to Franchisee, and Franchisor shall share in the condemnation award to the extent such award includes an allocation for its lost royalty income. If a non-substantial condemnation shall occur, then
Franchisee shall promptly make whatever repairs and restoration may be necessary to make the Hotel conform substantially to its former condition, character and appearance, according to plans and specifications approved by Franchisor. The resumption
of normal operation of the Hotel shall not be unreasonably delayed. 
  

 - 23 - 

 B. Casualty. If the Hotel is damaged or destroyed by fire or other cause, which damage or
destruction necessitates the closing of the Hotel for a period in excess of thirty (30) days and Franchisee elects not to repair or rebuild the Hotel, Franchisee shall have the right to terminate this Agreement upon written notice to Franchisor
given within sixty (60) days of the closing of the Hotel; provided that Franchisee shall be obligated to promptly pay to Franchisor an amount equal to the liquidated damages set forth at Section XVIII.E. of this Agreement, except that the time for
calculating the amount of liquidated damages shall be the lesser of (a) thirty-six (36) months or (b) the number of months then remaining between the (i) date of Franchisee’s written notice of termination and (ii) the date on which the term of
this Agreement would otherwise have ended pursuant to Section II. hereof if such notice of termination had not been given. Franchisee’s obligation set forth herein shall survive expiration or termination of this Agreement pursuant to this
Section XIX.B. 
  
 XX. TAXES, PERMITS AND INDEBTEDNESS 

 
 A. Payment of Taxes and Indebtedness. Franchisee shall promptly pay
when due all taxes levied or assessed by any federal, state or local tax authority, and any and all other indebtedness incurred by Franchisee in the conduct of the franchised business. Franchisee shall pay to Franchisor an amount equal to any sales
tax, gross receipts tax or similar tax imposed on Franchisor with respect to any payments to Franchisor required under this Agreement, unless the tax is credited against income tax otherwise payable by Franchisor. Franchisee shall have no obligation
hereunder for any tax which is based upon the net income of Franchisor. 
  
 B. Contested Amounts. In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee may contest the validity of the amount of the tax or indebtedness in accordance with the
procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by creditor, to occur against the premises of the Hotel or any
improvement thereon. 
  
 C. Compliance with Laws.
Franchisee shall comply with all federal, state, and local laws, rules and regulations, and shall timely obtain any and all permits, certificates or licenses necessary for the operation of the Hotel and for the full and proper conduct of the
franchised business including, without limitation, licenses to do business, fictitious name registrations, sales tax permits, health and sanitation permits and ratings and fire clearances. Franchisee shall obtain and maintain in full force and
effect from and after the opening of the Hotel all licenses required for the offer and provision of alcoholic beverages. 
  
 D. Notice of Judicial and Regulatory Matters. Franchisee shall notify Franchisor in writing within five (5) days of the commencement of any action,
suit or proceeding, and of the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality, which may adversely affect the operation or financial condition of the franchised business. Copies of
all inspection reports, warnings, certificates and ratings issued by any governmental entity during the term of this Agreement in connection with the Hotel which indicate a failure to meet or maintain governmental standards or less than full
compliance with any applicable law, rule or regulation, shall be forwarded to Franchisor by Franchisee within five (5) days of Franchisee’s receipt thereof. 
  
 E. Notice of Defaults. Franchisee shall promptly deliver to Franchisor a copy of any notice of default received from
any mortgagee, trustee under any deed of trust, or ground lessor with respect to the Hotel and, upon the request of Franchisor, shall provide such additional information as may be requested in respect of any such alleged default or any subsequent
action or proceeding in connection therewith. 
  
 F. Timely
Payments. Franchisee recognizes that Franchisee’s failure to make or repeated delay in making prompt payment of all amounts owed in connection with the operation of the Hotel (including, without limitation, all taxes levied or assessed and
all accounts and other indebtedness) in accordance with the terms of any agreements, leases, invoices or statements for purchase or lease of furniture, fixtures, equipment, inventories, supplies, food products, beverages, travel agent services, or
other goods or services will be detrimental to the reputation and credit standing of Franchisee, Franchisor and other System franchisees. Franchisee shall pay when due all amounts owed by Franchisee in connection with operating the Hotel.

  

 - 24 - 

 XXI. INDEPENDENT CONTRACTOR AND INDEMNIFICATION 
  
 A. Independent Contractor. Franchisee acknowledges that Franchisor and
Franchisee are not and will not be considered as joint venturers, partners or agents of each other. Franchisee specifically acknowledges that the relationship created by this Agreement is not a fiduciary, special or any other similar relationship,
but rather is an arm’s-length business relationship. Franchisor owes Franchisee no duties except as expressly provided in this Agreement. 
  
 1. During the term of this Agreement (including any extensions or renewals), Franchisee shall hold itself out to the public as an independent contractor
operating the business pursuant to a franchise from Franchisor and as an authorized user of the Proprietary Marks. Franchisee shall take such affirmative action as may be necessary to do so, including, without limitation, exhibiting notices of that
fact at the Hotel as required under Section X. hereof. 
  
 2.
Nothing in this Agreement authorizes either party to make any contract, agreement, warranty or representation on the other’s behalf, or to incur any debt or other obligation in the other’s name. Neither party shall assume liability for, or
be deemed liable hereunder, as a result of any such action, or by reason of any act or omission of the other party or any claim or judgment arising therefrom. 
  

3. Franchisor does not exercise any discretion or control over the employment policies or employment decisions of Franchisee. All employees of
Franchisee are solely employees of Franchisee, not Franchisor. Franchisee is not Franchisor’s agent for any purpose in regard to Franchisee’s employees or otherwise. 
  
 B. Indemnity. Throughout the term of this Agreement, Franchisee shall indemnify, defend and save harmless Franchisor,
its Affiliates, their respective officers, directors, agents, representatives, employees, successors and assigns (collectively, the “Indemnified Parties”), from and against all payments of money (including, without limitation, all losses,
costs, liabilities, damages, claims, fines, settlement amounts, legal fees, costs and expenses) of every kind and description arising out of or resulting from Franchisee’s breach of any representation or warranty in this Agreement or the
construction, conversion, operation or use of the Hotel or Hotel premises or of any other business conducted on or in connection with the Hotel by the Franchisee, or because of any act or omission of the Franchisee or anyone associated with,
employed by, or affiliated with Franchisee (even where the strict liability or negligence, whether sole, joint or concurrent, active or passive, of the Indemnified Parties is actual or alleged). Franchisee shall promptly give written notice to
Franchisor of any action, suit, proceeding, claim, demand, inquiry, or investigation related to the foregoing. Franchisor shall in any event have the right, through counsel of its choice at Franchisee’s expense, to control the defense or
response to any such action if it could affect the Indemnified Parties financially, and such undertaking by Franchisor shall not, in any manner or form, diminish Franchisee’s obligations to Franchisor hereunder. Franchisee shall also reimburse
Franchisor for all expenses (including legal fees and court costs) reasonably incurred by Franchisor to protect itself and any of the Indemnified Parties from, or to remedy, Franchisee’s defaults under this Agreement, provided, that under no
circumstances shall Franchisor be required or obligated to seek recovery from third parties or otherwise mitigate its losses in order to maintain a claim under this indemnity and against Franchisee, and the failure of Franchisor to pursue such
recovery or mitigate such loss will no way reduce the amounts recoverable by Franchisor from Franchisee. This indemnification shall survive the expiration, termination, or transfer of this Agreement or any interest herein. 
  
 XXII. APPROVALS AND WAIVERS 
  
 A. Written Consent Required. Approvals and consents by either party
will not be effective unless evidenced by a writing signed by such party. Either party’s consent, wherever required, may be withheld if any default by the other party exists under this Agreement. 
  
 B. Standards for Consents. Unless expressly stated otherwise in this
Agreement, whenever the consent or approval of Franchisor is required, and whenever Franchisee is required to operate or act in accordance with standards, specifications or requirements of Franchisor, such consents and approvals shall be given or
withheld, 
  

 - 25 - 

 and such standards, specifications and requirements shall be promulgated and administered by Franchisor reasonably and in
a manner consistent with the requirements Franchisor imposes on the management of all System Hotels. 
  
 C. Effects of Consents. Except as otherwise provided in any written agreement executed by Franchisor and Franchisee, Franchisor makes no warranties
or guarantees upon which Franchisee may rely. Franchisor assumes no liability or obligation to Franchisee by providing any waiver, approval, consent or suggestion to Franchisee in connection with this Agreement or by reason of any delay or denial of
any request therefor. 
  
 D. No Waiver. No failure of a
party to exercise any power reserved to it by this Agreement, or to insist upon strict compliance by the other party with any obligation or condition hereunder, and no custom or practice of the parties at variance with the terms hereof, shall
constitute a waiver of such party’s right thereafter to demand exact compliance with any of the terms herein. Waiver by a party of any particular default by the other party shall not affect or impair such party’s rights with respect to any
subsequent default of the same, similar, or different nature; nor shall any delay, forbearance, or omission of a party to exercise any power or right arising out of any breach or default by the other party of any of the terms, provisions, or
covenants hereof, affect or impair such party’s right to exercise the same. 
  
 XXIII. REPRESENTATION OF FRANCHISEE 
  
 Franchisor has entered into this Agreement in reliance upon the statements and information submitted to Franchisor by Franchisee in connection with this Agreement. Franchisee represents and warrants that all such statements and information
submitted by Franchisee in connection with this Agreement are true, correct and complete in all material respects. Franchisee agrees to promptly advise Franchisor of any material changes in the information or statements submitted. 
  
 XXIV. NOTICES 
  
 Any and all notices required or permitted under this Agreement shall be in writing and shall be delivered personally or
delivered by a nationally recognized overnight commercial delivery service (such as Airborne Express or Federal Express) or by certified mail, return receipt requested, to the respective parties at the following addresses unless and until a
different address has been designated by written notice to the other party: 
  

			
	 Notices to Franchisor:
	 	 Summerfield Hotel Company, L.P.

	 	 	 1950 Stemmons Freeway

	 	 	 Suite 6001

	 	 	 Dallas, Texas 75201

	 	 	 Facsimile: (214) 863-1986

	 	 	 Telephone: (214) 863-1000

		
	 Notices to Franchisee:
	 	 KPA Leaseco IV, Inc.

	 	 	 306 Royal Poinciana Way

	 	 	 Palm Beach, Florida 33480

	 	 	 Attention: President

	 	 	 Facsimile: (561) 835-0457

	 	 	 Telephone: (561) 835-1800

  
 Any notice shall be
deemed to have been given at the date and time of (i) receipt or first refusal of delivery if sent via certified mail, or (ii) one (1) day after posting if sent via overnight commercial delivery service. 
  
 XXV. ENTIRE AGREEMENT 
  
 A. This Agreement contains the entire agreement between the parties hereto as
it relates to the franchising of the Hotel at the Approved Location. There are no representations, inducements, promises, agreements, arrangements or undertakings, oral or written, between the parties relating to the franchising of the 

 

 - 26 - 

 Hotel at the Approved Location other than those set forth herein. No agreement of any kind relating to the matters
covered by this Agreement shall be binding upon either party unless and until the same has been made in writing and executed by all interested parties. 
  
 B. This Agreement may not be amended, modified or rescinded, or any performance requirement waived, except by a written document signed by Franchisor and
Franchisee. This provision does not apply to changes in the Manual, which Franchisor may modify unilaterally. The parties expressly agree that this Agreement may not be amended or modified, or any performance standard changed, by course of dealing,
by special indulgences or benefits Franchisor bestows on Franchisee, or by inference from a party’s conduct. 
  
 XXVI. CONSTRUCTION AND SEVERABILITY 
  
 A. Severability. Except as expressly provided to the contrary herein, each section, part, term and provision of this Agreement shall be considered
severable. If, for any reason, any section, part, term or provision herein is determined to be invalid and contrary to, or in conflict with, any existing or future law or regulation by a court or agency having valid jurisdiction, such shall not
impair the operation of, or have any other effect upon, such other sections, parts, terms and provisions of this Agreement as may remain otherwise intelligible, and the latter shall continue to be given full force and effect and bind the parties
hereto; and said invalid sections, parts, terms or provisions shall be deemed not to be a part of this Agreement. 
  
 B. No Third Party Beneficiary. Nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies under or by reason of
this Agreement upon any person or legal entity other than Franchisee, Franchisor, and such of Franchisee’s and Franchisor’s respective successors and assigns as may be contemplated (and, as to Franchisee, permitted) by this Agreement.

  
 C. Maximum Duty Imposed. Franchisee and Franchisor
expressly agree to be bound by any promise or covenant imposing the maximum duty permitted by law which is subsumed within the terms of any provision hereof, as though it were separately articulated in and made part of this Agreement, that may
result from striking from any of the provisions hereof any portion or portions which a court may hold to be unreasonable and unenforceable in a final decision to which Franchisor or Franchisee, as applicable, is a party, or from reducing the scope
of any promise or covenant to the extent required to comply with such a court order. 
  
 D. Captions. All captions in the Agreement are intended solely for the convenience of the parties, and none shall be deemed to affect the meaning or construction of any provision hereof. 
  
 E. Construction. All references herein to the masculine, neuter or
singular shall be construed to include the masculine, feminine, neuter or plural, where applicable. All acknowledgments, promises, covenants, agreements and obligations herein made or undertaken by Franchisee shall be deemed jointly and severally
undertaken by all the parties hereto signing the Guaranty on behalf of Franchisee. 
  
 F. Counterpart Execution. This Agreement may be executed in counterparts and each copy so executed shall be deemed an original. 
  

	XXVII.	DISPUTE RESOLUTION AND GOVERNING LAW 

  
 A. FRANCHISOR AND FRANCHISEE AGREE TO SUBMIT ANY CLAIM, CONTROVERSY OR DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING ALL ATTACHMENTS AND
ADDENDA) OR THE RELATIONSHIP CREATED BY THIS AGREEMENT TO NON-BINDING MEDIATION PRIOR TO BRINGING SUCH CLAIM, CONTROVERSY OR DISPUTE IN A COURT OR BEFORE ANY OTHER TRIBUNAL. THE MEDIATION SHALL BE CONDUCTED BY EITHER AN INDIVIDUAL MEDIATOR OR A
MEDIATOR APPOINTED BY A MEDIATION SERVICES ORGANIZATION OR BODY, EXPERIENCED IN THE MEDIATION OF HOTEL INDUSTRY DISPUTES, AGREED UPON BY THE PARTIES AND, FAILING SUCH AGREEMENT WITHIN A REASONABLE PERIOD OF TIME (NOT TO EXCEED FIFTEEN (15) DAYS),
AFTER EITHER PARTY HAS NOTIFIED THE OTHER OF ITS DESIRE TO SEEK MEDIATION BY THE AMERICAN ARBITRATION ASSOCIATION (OR ANY SUCCESSOR ORGANIZATION) IN ACCORDANCE WITH ITS RULES GOVERNING MEDIATION, AT 
  

 - 27 - 

 FRANCHISOR’S PRINCIPAL PLACE OF BUSINESS. THE COSTS AND EXPENSES OF MEDIATION, INCLUDING COMPENSATION AND EXPENSES
OF THE MEDIATOR (EXCEPT FOR THE ATTORNEY’S FEES INCURRED BY EITHER PARTY), SHALL BE BORNE BY THE PARTIES EQUALLY. IF THE PARTIES ARE UNABLE TO RESOLVE THE CLAIM, CONTROVERSY OR DISPUTE WITHIN NINETY (90) DAYS AFTER THE MEDIATOR HAS BEEN CHOSEN,
THEN, UNLESS SUCH TIME PERIOD IS EXTENDED BY WRITTEN AGREEMENT OF THE PARTIES, EITHER PARTY MAY BRING A LEGAL PROCEEDING UNDER SECTION XXVII.B. BELOW TO RESOLVE SUCH CLAIM, CONTROVERSY OR DISPUTE. NOTWITHSTANDING THE FOREGOING, FRANCHISOR MAY BRING
AN ACTION (1) FOR MONIES OWED, (2) FOR INJUNCTIVE OR OTHER EXTRAORDINARY RELIEF, OR (3) INVOLVING THE POSSESSION OF OR TO SECURE OTHER RELIEF RELATING TO THE HOTEL PREMISES, IN A COURT HAVING JURISDICTION AND IN ACCORDANCE WITH SECTION XVII.B.,
BELOW, WITHOUT FIRST SUBMITTING SUCH ACTION TO MEDIATION. 
  
 B.
WITH RESPECT TO ANY CLAIMS, CONTROVERSIES OR DISPUTES WHICH ARE NOT FINALLY RESOLVED THROUGH MEDIATION OR AS OTHERWISE PROVIDED ABOVE, FRANCHISEE HEREBY IRREVOCABLY SUBMITS ITSELF TO THE JURISDICTION OF THE STATE AND THE FEDERAL DISTRICT COURTS
LOCATED IN THE STATE, COUNTY OR JUDICIAL DISTRICT IN WHICH THE FRANCHISOR’S PRINCIPAL PLACE OF BUSINESS IS LOCATED AND HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION FOR THE PURPOSE OF CARRYING OUT THIS PROVISION. FRANCHISEE HEREBY AGREES
THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY TEXAS OR FEDERAL LAW. FRANCHISEE FURTHER AGREES THAT VENUE FOR ANY
PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE THE COUNTY OR JUDICIAL DISTRICT IN WHICH THE FRANCHISOR’S PRINCIPAL PLACE OF BUSINESS IS LOCATED; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION (1) FOR MONIES OWED, (2) FOR
INJUNCTIVE OR OTHER EXTRAORDINARY RELIEF OR (3) INVOLVING POSSESSION OR DISPOSITION OF, OR OTHER RELIEF RELATING TO, THE HOTEL PREMISES, FRANCHISOR MAY BRING SUCH ACTION IN ANY STATE OR FEDERAL DISTRICT COURT WHICH HAS JURISDICTION. 
  
 C. THIS AGREEMENT TAKES EFFECT UPON ITS ACCEPTANCE AND EXECUTION BY
FRANCHISOR IN THE STATE OF TEXAS AND SHALL BE INTERPRETED AND CONSTRUED UNDER TEXAS LAW (EXCEPT FOR TEXAS CHOICE OF LAW RULES). 
  
 D. FRANCHISEE AND FRANCHISOR ACKNOWLEDGE THAT THE PARTIES’ AGREEMENT REGARDING APPLICABLE STATE LAW AND FORUM SET FORTH HEREIN PROVIDE EACH OF THE
PARTIES WITH THE MUTUAL BENEFIT OF UNIFORM INTERPRETATION OF THIS AGREEMENT AND ANY DISPUTE ARISING OUT OF THIS AGREEMENT OR THE PARTIES’ RELATIONSHIP CREATED BY THIS AGREEMENT. FRANCHISOR AND FRANCHISEE FURTHER ACKNOWLEDGE THE RECEIPT AND
SUFFICIENCY OF MUTUAL CONSIDERATION FOR SUCH BENEFIT. 
  
 E.
FRANCHISOR AND FRANCHISEE ACKNOWLEDGE THAT THE EXECUTION OF THIS AGREEMENT AND ACCEPTANCE OF THE TERMS BY THE PARTIES OCCURRED IN DALLAS, TEXAS AND FURTHER ACKNOWLEDGE THAT THE PERFORMANCE OF CERTAIN OBLIGATIONS OF FRANCHISEE ARISING UNDER THIS
AGREEMENT, INCLUDING BUT NOT LIMITED TO THE PAYMENT OF MONIES DUE HEREUNDER AND THE SATISFACTION OF CERTAIN TRAINING REQUIREMENTS, SHALL OCCUR IN DALLAS, TEXAS. 
  

F. FRANCHISOR, FRANCHISEE AND THE CONTROLLING PRINCIPALS SIGNING THIS AGREEMENT AS GUARANTORS ACKNOWLEDGE THAT VARIOUS PROVISIONS OF THIS AGREEMENT
SPECIFY CERTAIN MATTERS THAT ARE WITHIN THE DISCRETION OR JUDGMENT OF FRANCHISOR OR ARE OTHERWISE TO BE DETERMINED UNILATERALLY BY FRANCHISOR. IF THE EXERCISE OF FRANCHISOR’S DISCRETION OR JUDGMENT AS TO ANY SUCH MATTER IS SUBSEQUENTLY
CHALLENGED, THE PARTIES TO THIS AGREEMENT EXPRESSLY DIRECT THE TRIER OF FACT THAT FRANCHISOR’S RELIANCE ON A BUSINESS REASON IN THE EXERCISE OF ITS DISCRETION OR JUDGMENT IS TO BE VIEWED AS A REASONABLE AND PROPER EXERCISE OF 
  

 - 28 - 

 SUCH DISCRETION OR JUDGMENT, WITHOUT REGARD TO WHETHER OTHER REASONS FOR ITS DECISION MAY EXIST AND WITHOUT REGARD TO
WHETHER THE TRIER OF FACT WOULD INDEPENDENTLY ACCORD THE SAME WEIGHT TO THE BUSINESS REASON. 
  
 XXVIII. REMEDIES; CURRENCY 
  
 A. Remedies Cumulative. No right or remedy conferred upon or reserved to Franchisor or Franchisee by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by
law or equity provided or permitted, but each shall be cumulative of every other right or remedy. 
  
 B. Injunctive Relief. Nothing herein contained shall bar either party’s right to obtain injunctive relief against threatened conduct that will
cause it loss or damages, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. 
  
 C. U.S. Currency. All fees and payments required by this Agreement shall be paid in U.S. currency. 
  
 XXIX. WAIVER OF JURY TRIAL 
  
 IN ANY LITIGATION BETWEEN THE PARTIES FOUNDED UPON OR ARISING FROM THIS
AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  
 XXX. FRANCHISEE ACKNOWLEDGMENTS 
  
 A. FRANCHISEE ACKNOWLEDGES THAT IT DID NOT RELY ON ANY PROMISES, REPRESENTATIONS OR AGREEMENTS ABOUT THE FRANCHISOR OR THE FRANCHISE NOT EXPRESSLY
CONTAINED IN THIS AGREEMENT IN MAKING ITS DECISION TO SIGN THIS AGREEMENT. FRANCHISEE FURTHER REPRESENTS AND WARRANTS THAT FRANCHISOR AND ITS REPRESENTATIVES HAVE NOT MADE ANY PROMISES, REPRESENTATIONS OR AGREEMENTS, ORAL OR WRITTEN, EXCEPT AS
EXPRESSLY CONTAINED IN THIS AGREEMENT. 
  
 B. FRANCHISEE
ACKNOWLEDGES THAT FRANCHISEE HAS CONDUCTED AN INDEPENDENT INVESTIGATION OF THE BUSINESS FRANCHISED HEREUNDER, AND RECOGNIZES THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES BUSINESS RISKS AND THAT ITS SUCCESS WILL BE LARGELY
DEPENDENT UPON THE ABILITY OF FRANCHISEE AS AN INDEPENDENT BUSINESSMAN. FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS NOT RECEIVED, ANY WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, AS TO THE POTENTIAL
VOLUME, PROFITS OR SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT. 
  
 C. FRANCHISEE ACKNOWLEDGES THAT IT HAS READ AND UNDERSTOOD THIS AGREEMENT AND THE ATTACHMENTS HERETO (IF ANY) AND THAT FRANCHISEE HAS HAD AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF FRANCHISEE’S OWN
CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT. 
  
 D. ALL OF THE OBLIGATIONS OF FRANCHISOR HEREUNDER ARE TO FRANCHISEE ONLY; NO OTHER PERSON OR ENTITY IS ENTITLED TO RELY ON, ENFORCE, OR OBTAIN RELIEF FOR BREACH OF SUCH OBLIGATIONS EITHER DIRECTLY OR BY SUBROGATION.

  
 E. FRANCHISEE ACKNOWLEDGES THAT IT RECEIVED A COMPLETE COPY OF
THIS AGREEMENT AND ALL RELATED ATTACHMENTS AND AGREEMENTS AT LEAST FIVE (5) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED. FRANCHISEE FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE
REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED “DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES” AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS
EXECUTED. 
  

 - 29 - 

 IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this Agreement in
duplicate on the day and year first above written. 
  

							
	FRANCHISOR
	
	 SUMMERFIELD HOTEL COMPANY, L.P.,

	 a Kansas limited partnership

		
	 By:
	 	 PAH-Summerfield LLC,

	 	 	 General Partner

			
	 	 	 By:
	 	 PAH–L.P., Inc.,

	 	 	 	 	 Its Manager and Sole Member

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Title:
	 	  

  

							
	FRANCHISEE
	
	 KPA LEASECO IV, INC.

		
	 By:
	 	  

	 	 	 Jeffrey H. Fisher, President

  

 - 30 - 

 ATTACHMENT A 
  
 SELECTED TERMS 
  
 Effective Date:     April 1, 2004 
  
 Expiration Date: March 31, 2014 (which is ten (10) years following the Effective Date) 
  

			
	 Approved Location :
	  	 810 South Douglas Street

	 	  	 El Segundo, California 90245

		
	 Number of guest rooms:
	  	 122

		
	 Initial franchise fee:
	  	 None

		
	 Application fee:
	  	 None

  
 Franchisee’s Principals (names,
addresses, and percentages of ownership in Franchisee or in any person or entity that owns a controlling interest in Franchisee). 
  

							
	 	  	 Name

	  	 Address

	  	 Percentage of Ownership

	 *
	  	 Jeffrey H. Fisher
	  	 306 Royal Poinciana Way
 Palm Beach, Florida 33480
	  	100%

	*	Designates Franchisee’s Controlling Principals. 

  

 Attachment A – Page Solo 

 ATTACHMENT B 
  
 GUARANTY 
  
 As an inducement to Summerfield Hotel Company, L.P. (“Franchisor”) to execute the Franchise Agreement dated February 24, 2004, applicable to the
Hotel located at the Approved Location listed on Attachment A to the Franchise Agreement, the undersigned, jointly and severally, hereby unconditionally warrant to Franchisor and its successors and assigns that all of Franchisee’s
representations in the Franchise Agreement are true, agree to be bound by all the terms and conditions of the above Franchise Agreement including any amendments thereto whenever made (hereinafter the “Agreement”), and absolutely,
unconditionally and irrevocably guaranty to Franchisor and its successors and assigns that all of Franchisee’s obligations under the Agreement will be punctually paid and performed. 
  
 Upon default by Franchisee, the undersigned will immediately make each payment and perform each obligation required of
Franchisee under the Agreement. Without affecting the obligations of the undersigned under this Guaranty, Franchisor may, without notice to the undersigned, extend, modify, waive, renew or release any indebtedness or obligation of Franchisee, or
settle, adjust or compromise any claims against Franchisee. The undersigned waive notice of amendment of the Agreement and notice of demand for payment or performance by Franchisee. 
  
 Franchisor may pursue its rights against any of the undersigned without first exhausting its remedies against Franchisee and
without joining any other guarantor. No delay on the part of the Franchisor in the exercise of any right or remedy, and no single or partial exercise by Franchisor of any right or remedy shall preclude the further exercise of such right or remedy.
Upon the death of an individual guarantor, the estate of such guarantor will be bound by this Guaranty but only for defaults and obligations hereunder existing at the time of death, and the obligations of the other guarantors will continue in full
force and effect. 
  
 IN WITNESS WHEREOF, each of the undersigned
has signed this Guaranty as of date of the above Agreement. 
  

							
	 ATTEST:
	 	GUARANTOR
		
	  

	 	 INNKEEPERS SUMMERFIELD GENERAL II, L.P.

	 Witness
	 	 	 	 	 	 
	 	 	By:	 	 Innkeepers Financial Corporation V,

	 	 	 	 	 its General Partner

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Title:
	 	  

  

 Attachment B – Page Solo 

 ATTACHMENT C 
  
 MANAGEMENT COMPANY RIDER 
 To Franchise Agreement Dated February 24, 2004 
 Between Summerfield Hotel Company, L.P.
(“Franchisor”) and 
 KPA Leaseco IV, Inc. (“Franchisee”) 
  
 Innkeepers Hospitality Management, Inc. (“Management Company”) has
entered into a Management Agreement with Franchisee, under the terms of which Management Company will operate the Hotel located at the Approved Location listed on Attachment A to the Franchise Agreement (the “Hotel”) in accordance with the
terms and conditions of the Franchise Agreement identified above. 
  
 In consideration of being permitted to operate the Hotel, Management Company hereby acknowledges and ratifies the terms and conditions of the Franchise Agreement and agrees to fully observe and be bound by all terms, conditions and
restrictions regarding the management and operation of the Hotel set forth in the Franchise Agreement as if and as though Management Company had executed the Franchise Agreement as “Franchisee” for as long as Management Company operates
the Hotel; provided, however, that the foregoing does not constitute an agreement of the Management Company to pay or assume any financial obligation of Franchisee to Franchisor or to any third party. Management Company further agrees to be bound by
the confidentiality covenants set forth in Article XII. of the Franchise Agreement (including all remedies available to Franchisor under the Franchise Agreement for breach thereof) during and subsequent to its tenure as manager and operator of the
Hotel. 
  
 Management Company agrees that Franchisor may enforce
directly against Management Company those terms and conditions of the Franchise Agreement to which Management Company has hereby agreed to be bound. The prevailing party in any cause of action brought hereunder, pursuant hereto or in connection
herewith (including, without limitation, any action for declaratory or equitable relief) shall be entitled to recover from the non-prevailing party reasonable attorney’s fees, expenses and costs of suit incurred by the prevailing party in such
action. 
  

					
	 	 	MANAGEMENT COMPANY:
		
	 	 	 INNKEEPERS HOSPITALITY MANAGEMENT, INC.

	 ATTEST:
	 	 	 	 
	  

	 	 By:
	 	  

	 Witness
	 	 Name:
	 	  

	 	 	 Title:
	 	  

  

 Attachment C – Page Solo 

 ATTACHMENT D 
  
 DEFINITIONS 
  
 An “Affiliate” means, with respect to any person or entity, any other person or entity controlling, controlled by, or under common control with said person or
entity. 
  
 “Approved Location” means the street address of the Hotel,
as identified in Attachment A. 
  
 “Control” or “controlling
interest” mean the direct or indirect power to direct the management and policies of a person or entity, including those relating to the payment of financial obligations, whether through the ownership of voting securities or interests, by
contract, or otherwise, each as reasonably determined by Franchisor. 
  
 “Directory” means the directory published from time to time by or at the direction of Franchisor for all hotels operating under the System and the Proprietary Marks. 
  
 The “Effective Date” of the Franchise Agreement is the date that Franchisor authorizes the opening of the Hotel under the System
and the Proprietary Marks. The Effective Date shall be entered on Attachment A to this Agreement. 
  
 “Expiration Date” is that date which is 20 years (for new construction) or 10 years (for conversion) following the Effective Date on which this Agreement expires. The Expiration Date shall be entered on
Attachment A to this Agreement. 
  
 The “Franchisee” includes the entity
identified in the preamble to this Agreement and (i) the individual owner or owners of the franchise granted hereunder, if Franchisee is a natural person or persons; or (ii) collectively and individually, the general partners, if Franchisee is a
partnership; or (iii) collectively and individually, the controlling shareholders or controlling members, as applicable, if Franchisee is a corporation or limited liability company. 
  
 “Franchisee’s Principals” include any individual, partnership, corporation, or other legal entity which directly or
indirectly owns any interest in this franchise, in Franchisee, or in any person or entity that owns a controlling interest in Franchisee. “Franchisee’s Controlling Principals” include Franchisee’s general partners, controlling
shareholders, or controlling members, as applicable. 
  
 “Gross Room
Revenues” include all gross revenues attributable to or payable for the rental of guest rooms at the Hotel, including, without limitation, all credit transactions, whether or not collected, but excluding any sales or room taxes collected by
Franchisee for transmittal to the appropriate taxing authority. Gross Room Revenues also include the proceeds from any business interruption insurance applicable to loss of revenues due to the nonavailability 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 for the Lodging Industry, Ninth Revised Edition, 1996, as published by the Hotel Association of New York City, Inc.

  
 “Hotel” means the freehold or long-term leasehold title to the hotel
located at the Approved Location, together with all improvements constructed on the Approved Location, including, without limitation, the Hotel building, and all furniture, fixtures, equipment (including computer and telephone systems), and
inventories. 
  
 The “Manager” is the party identified in the Management
Company Rider attached as Attachment C to the Franchise Agreement. 
  
 The
“Manual” is the Hotel Operating Manual and all other manuals and guides containing the standards, specifications, policies, and procedures for the establishment and operation of System Hotels. 
  
 The “Proprietary Marks”means all trade names, trademarks, service marks, logos,
emblems, symbols and indicia of origin that are now designated and may hereafter be designated in writing by Franchisor as part of the System for use in connection with System Hotels, including the trade name and service mark “Summerfield
Suites® by Wyndham.” The Proprietary Marks may be modified by Franchisor from time to
time. 
  

 Attachment D – Page 1 

 “System” means the collection of procedures, policies, standards, specifications, controls and other
distinguishing elements which Franchisor or its Affiliates have developed in connection with the establishment and operation of Summerfield Suites® by Wyndham Hotels. The distinguishing characteristics of the System include, without limitation, standards and specifications for the
establishment and operation of a Summerfield Suites® by Wyndham Hotel; reservation and
property management systems; advertising, marketing and promotional programs; a Summerfield Suites® by Wyndham Hotel Directory; management and personnel training programs; operational standards, policies, procedures and techniques as prescribed in the Manual and the quality assurance program, all of which may be changed, improved
or further developed from time to time. Franchisor and its Affiliates have all rights in and to the System and Franchisee has only the right to use the System under the terms and conditions of this Agreement. 
  
 “System Hotels” means extended stay, all-suite hotels rightfully operated under the
System and the Proprietary Marks, whether owned, managed or franchised by Franchisor. 
  

 Attachment D – Page 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]