Document:

Exhibit 10.181

	
	
Environmental Indemnity Agreement, Page 1
4857-4369-4346.3
ENVIRONMENTAL INDEMNITY AGREEMENT
This Environmental Indemnity Agreement (this “Agreement”), dated as of February 8, 2022 (the
“Effective Date”), is made, by LF3 EL PASO AIRPORT, LLC, a Delaware limited liability company
and LF3 EL PASO AIRPORT TRS, LLC, a Delaware limited liability company (collectively,
“Borrower”) and LODGING FUND REIT III OP, LP, a Delaware limited partnership (“Guarantor” and
collectively with Borrower, “Indemnitor”) in favor of LEGENDARY A-1 BONDS, LLC, a Delaware
limited liability company (“Lender”).
Recitals:
A. Borrower is indebted to Lender pursuant to the Promissory Note in the principal amount
of $9,990,000 dated the Effective Date from Borrower payable to the order of Lender, issued pursuant to
the Loan Agreement dated as of the Effective Date between Lender and Borrower (the “Loan”).
B. The Loan is secured by, among other things, a Deed of Trust, Security Agreement,
Fixture Filing, Financing Statement and Assignment of Leases and Rents dated the Effective Date from
Borrower to Clifton M. Dugas, II, as trustee, for the benefit of Lender, to be recorded in the real property
records of El Paso County, Texas (the “Security Instrument”) encumbering the property as more
particularly described therein (the “Property”).
C. Guarantor has provided a guaranty of the obligations of Borrower under the Loan
pursuant to that certain Continuing Guaranty of even date herewith.
D. As a condition to making the Loan, Lender requires Indemnitor to indemnify and hold
Lender harmless from any Environmental Claim, any requirements or violations of any Environmental
Laws, any violation of any Environmental Permit and all Costs related to any of the foregoing related to
the Property.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which are acknowledged, the
parties hereto agree as follows:
1. Definitions. As used herein, the following terms have the meanings assigned:
“Costs” means all liabilities (including strict liabilities), losses, costs, damages (including
consequential damages or indirect), expenses, claims, reasonable attorneys’ fees, experts’ fees,
consultants’ fees and disbursements of any kind or of any nature whatsoever. For the purposes of
this definition, such losses, costs and damages will include, without limitation, remedial, removal,
response, abatement, cleanup, legal, investigative and monitoring costs, expenses, losses,
damages, penalties, fines, obligations, defenses, judgments, suits, forfeitures, proceedings and
disbursements.
“Environmental Claim” means, but not be limited to, any claim, demand, action, cause
of action, suit, loss, cost, damage, fine, penalty, expense, liability, judgment, forfeitures,
proceeding, or injury, whether threatened, sought, brought, or imposed, that seeks to impose costs
or liabilities for (i) noise; (ii) pollution or contamination of the air, surface water, groundwater, or
soil; (iii) solid, gaseous, or liquid waste generation, handling, treatment, storage, disposal, or
transportation; (iv) exposure to Hazardous Materials; (v) the generation, handling, treatment,
transportation, manufacture, processing, distribution in commerce, use, storage or disposal of
Hazardous Materials; (vi) injury to or death of any person or persons directly or indirectly
connected with Hazardous Materials and directly or indirectly related to the Property;
(vii) destruction or contamination of any property directly or indirectly in connection with 

	
	
Environmental Indemnity Agreement, Page 2
4857-4369-4346.3
Hazardous Materials and directly or indirectly related to the Property; or (viii) any and all
penalties directly or indirectly connected with Hazardous Materials and directly or indirectly
related to the Property. The term “Environmental Claim” also includes (i) the costs of removal
of any and all Hazardous Materials from all or any portion of the Property, (ii) costs required to
take necessary precautions to protect against the release of Hazardous Materials at, on, in, about,
under, within, near or in connection with the Property in or into the air, soil, surface water,
groundwater, or soil vapor, any public domain, or any surrounding areas, (iii) costs incurred to
comply, in connection with all or any portion of the Property or any surrounding areas, with all
applicable laws with respect to Hazardous Materials, including any such laws applicable to the
work referred to in this sentence, and (iv) the costs of site investigation, response, and
remediation of any and all Hazardous Materials at, on, about, under, within, near or in all or any
portion of the Property. “Environmental Claim” also includes any asserted or actual breach or
violation of any requirements of Environmental Laws, or any event, occurrence, or condition as a
consequence of which, pursuant to any requirements of Environmental Laws, (i) Borrower,
Lender, or any owner, occupant, or person having any interest in the Property will be liable or
suffer any disability, or (ii) the Property will be subject to any restriction on use, ownership,
transferability, or (iii) any Remedial Work will be required.
“Environmental Laws” means any and all present and future federal, state and local law
(whether under common law, statute, rule, ordinance, agreement, regulation or otherwise)
requirement under any permit issued with respect thereto, and other requirements of
governmental authorities having jurisdiction thereunder relating to pollution or the protection of
the environment, including, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sections 9601 et seq.), as heretofore and
hereafter amended, and including the Texas Water Code §26.001 et seq.; the Texas Health &
Safety Code §361.001 et seq.; and the Texas Solid Waste Disposal Act, Tex. Civ. Stat. Ann. art.
4477-7..
“Environmental Permit” means any permit, license, approval, or other authorization
with respect to any activities, operations, or businesses conducted on or in relation to the Property
under any applicable law, regulation, or other requirement of the United States or any state,
municipality, or other subdivision or jurisdiction related to pollution or protection of health or the
environment, or any private agreement (such as covenants, conditions and restrictions), including
laws, regulations or other requirements relating to spills, emissions, discharges, or releases or
threatened releases of Hazardous Materials into ambient air, surface water, groundwater, or soil,
or otherwise relating to the manufacture, processing, distribution, use, generation, treatment,
storage, disposal, transportation, or handling of Hazardous Materials directly or indirectly related
to the Property.
“Hazardous Materials” means any chemical, compound, material, mixture or substance
(not generally found in the operation or maintenance of a limited select service hotel) that is now
or hereafter defined or listed in, or otherwise classified pursuant to, any Environmental Laws as a
“hazardous substance,” “hazardous material,” “hazardous waste,” “acutely hazardous”,
“extremely hazardous waste,” infectious waste,” “toxic substance,” “toxic pollutant” or any other
formulation intended to define, list, or classify substances by reason of deleterious properties such
as ignitability, corrosivity, reactivity, carcinogenicity, or toxicity, including any petroleum,
natural gas, natural gas liquids, liquified natural gas, or synthetic gas usable for fuel (or mixtures
of natural gas and such synthetic gas) or derivatives thereof. “Hazardous Materials” will also
include, without limitation, those substances listed in the United States Department of
Transportation Table (49 CFR 172.101, as amended), spillage, seepage, storage, holding,
existence or suspected existence, release or suspected releases, emission, discharge, disposal,
generation, processing, abatement, removal, disposition, handling, transportation or other use of 

	
	
Environmental Indemnity Agreement, Page 3
4857-4369-4346.3
any Hazardous Materials from, at, under, into, on, about, within, near or in connection with the
Property or surrounding property. The term “Hazardous Materials” does not include any
Hazardous Materials used in connection with routine construction, maintenance, repair and
operation of the Property in compliance with Environmental Law and in amounts or
concentrations which do not violate Environmental Laws.
“Hazardous Materials Activity” will include any activity relating to such Hazardous
Materials.
“Transfer Date” means the earlier of the date (i) the lien of the Security Instrument is
foreclosed or a conveyance by deed in lieu of such foreclosure is fully effective and (ii) a receiver
is appointed by a court for the Property, which receiver is requested by Lender, and in each case
Borrower and/or its affiliates are no longer in possession of the Property; provided, if such
foreclosure, conveyance or appointment is challenged, in bankruptcy proceedings or otherwise,
the Transfer Date will be deemed not to have occurred until such challenge is rejected, dismissed
or withdrawn with prejudice. If the Transfer Date is triggered by the appointment of a receiver as
provided in clause (ii) of this definition, the receiver is subsequently dismissed and the Borrower
once again has possession of the Property, the term “Transfer Date” means the period of time
during which the receiver had possession of the Property.
2. Indemnification.
(a) Indemnitor hereby agrees to protect, defend, indemnify, reimburse, and hold
harmless Lender and its officers, directors, shareholders, agents, employees and attorneys and
their respective heirs, legal representatives, successors and assigns (all such persons and entities
individually an “Indemnitee” and collectively the “Indemnitees”) from and against all Costs,
which at any time may be imposed upon the Property, the Indemnitees, or any of them, arising
out of or in connection with any one or more of the following, EVEN IF CAUSED BY THE
NEGLIGENCE OF AN INDEMNIFIED PARTY, but not if caused by the willful misconduct or gross
negligence of an Indemnified Party: (i) the breach of any representation, warranty or covenant
contained in the Loan Documents (as defined in the Loan Agreement) relating to the Hazardous
Materials; (ii) any requirements of Environmental Laws; (iii) Environmental Claims; (iv) the
failure of Borrower, or any other party directly or indirectly connected with the Property, or
affiliated with Borrower to obtain, maintain, or comply with any Environmental Permit, beyond
the any applicable notice and cure period; (v) the conduct of any Hazardous Materials Activity;
and/or (vi) the presence or existence of Hazardous Materials at, on, about, under, within, near or
in connection with the Property, but only with respect to matters occurring or conditions existing
prior to the Transfer Date.
(b) In the event that any investigation, monitoring, response, remediation, removal,
restoration, abatement, repair, cleanup, detoxification or other ameliorative work is required by
Lender or any agency, governmental or private, having jurisdiction over Hazardous Materials or
Hazardous Materials Activity (the “Remedial Work”), Indemnitor will within thirty (30) days
after written demand for performance thereof by any Indemnitees or any such agency (or such
shorter period of time as may be required under any applicable Environmental Laws), promptly
commence, or cause to be commenced, and thereafter diligently prosecute to completion, all such
Remedial Work, but only with respect to matters occurring or conditions existing prior to the
Transfer Date. All Remedial Work will be performed by one or more contractors, approved in
advance in writing by Lender, and, if required by Lender, under the supervision of a consulting
engineer approved in advance in writing by Lender. All Costs related to such Remedial Work will
be paid by Indemnitor including, without limitation, Costs incurred by any Indemnitee in
connection with oversight, monitoring or review of such Remedial Work. In the event Indemnitor 

	
	
Environmental Indemnity Agreement, Page 4
4857-4369-4346.3
will fail to promptly commence, or cause to be commenced, or fail to diligently prosecute to
completion, such Remedial Work, Lender may, but will not be required to, cause such Remedial
Work to be performed and all Costs will become an Environmental Claim hereunder.
(c) This Agreement, and all rights and obligations hereunder, are separate and
distinct from the rights and obligations of Borrower and Lender under the Loan Documents and
will survive (i) payment of all amounts payable pursuant to the Notes and secured by the Security
Instrument, (ii) surrender of the Notes; (iii) release, satisfaction, assignment or reconveyance of
the Security Instrument or other security provided in connection with the Loan; (iv) foreclosure of
the Security Instrument and other security instruments in connection with the Loan;
(v) acquisition of the Property by Lender; or (vi) transfer of any or all Lender’s rights in the Loan
and the Property, except to the extent specifically set forth herein. The indemnities and releases
set forth herein will benefit all parties who have been, or are currently, a “Lender” under the Loan
Agreement.
(d) Nothing contained in this Agreement will prevent or in any way diminish or
interfere with any rights or remedies, including, without limitation, the right to contribution,
which any Indemnitee may have against Borrower or any other party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (codified at Title 42 U.S.C.
§ 9601 et seq.), as it may have been or may be amended from time to time, or any other
Environmental Laws, all such rights being hereby expressly reserved.
3. Notice of Actions. Indemnitor and Lender each agree to give the other prompt written
notice of the receipt of any notice or discovery of any information regarding any actual, alleged or
potential Environmental Claim or any claim under this Agreement, and to deliver copies of any and all
orders, notices, permits, reports, and other communications, documents and instruments pertaining to
such Environmental Claim.
4. Procedure Relating to Indemnification.
(a) Any Indemnitee will have the right to join and participate in, as a party if such
Indemnitee so elects, any legal proceedings or actions in connection with the Property involving
any Environmental Claim, any Hazardous Materials or any requirements of Environmental Laws,
and Indemnitor will reimburse such Indemnitee upon demand for all of its Costs in connection
therewith, but only with respect to Costs arising from or relating to matters occurring or
conditions existing prior to the Transfer Date.
(b) In any circumstances in which this Agreement applies, any Indemnitee may, but
will not be obligated to, employ its own legal counsel and consultants to investigate, prosecute,
negotiate, or defend any such circumstances, including, but not limited to, any Environmental
Claim, and such Indemnitee will have the right to compromise or settle the same without the
necessity of showing actual liability therefor, and without the consent of Indemnitor. Indemnitor
will reimburse such Indemnitee, upon demand, for all Costs incurred by such Indemnitee,
including the amount of all Costs of settlements entered into by Indemnitees, but only with
respect to Costs arising from or relating to matters occurring or conditions existing prior to the
Transfer Date.
(c) Indemnitor will not, without the prior written consent of Lender (i) settle or
compromise any action, suit, proceeding, or claim or consent to the entry of any judgment that
does not include as an unconditional term thereof and delivery by the claimant or plaintiff to
Lender of (x) a full and complete written release of Indemnitees (in form, scope and substance
satisfactory to Lender in its sole discretion) from all liability in respect to such action, suit or 

	
	
Environmental Indemnity Agreement, Page 5
4857-4369-4346.3
proceeding and (y) a dismissal with prejudice of such suit, action or proceeding; or (ii) settle or
compromise any action, suit, proceeding, or claim in any manner that may adversely affect
Indemnitee as determined by Lender in its sole discretion.
5. Binding Effect.
(a) This Agreement will be binding upon Borrower and Guarantor, their respective
successors and permitted assigns and will inure to the benefit of the Indemnitees and their
successors and assigns, without limitation, any holder of the Notes and any affiliates of Lender
which acquires all or part of the Property by any sale, assignment, deed in lieu of foreclosure,
foreclosure under the Security Instrument, or otherwise. The obligations of Indemnitor under this
Agreement will not be assigned, voluntarily or by operation of law, without the prior written
consent of Lender which consent may be given or withheld in the sole discretion of Lender.
(b) In the event of a dissolution of Indemnitor or other disposition involving
Indemnitor or all or substantially all the assets of Indemnitor to one or more persons or other
entities, the surviving entity or transferee of assets, as the case may be, will (i) be formed and
existing under the laws of a state, district or commonwealth of the United States of America and
(ii) deliver to Lender an acknowledged instrument in recordable form assuming all obligations,
covenants and responsibilities of Indemnitor under this Agreement.
6. Enforcement of Agreement. Failure of Indemnitor to satisfy its obligations under this
Agreement will constitute an Event of Default under the Loan Agreement; provided that the liability of
Indemnitor under this Agreement will in no way be limited or impaired by the provisions of the Loan
Documents, or any amendment, modification, extension or renewal thereof. This Agreement may be
enforced by Lender or any Indemnitee without regard to any other rights and remedies existing against
Borrower under the Loan Documents. Enforcement of this Agreement will not be deemed to constitute an
action for recovery of the Loan indebtedness nor for recovery of a deficiency judgment against Borrower
following foreclosure of the Security Instrument. Indemnitor expressly and specifically agrees that a
separate action or actions may be brought and prosecuted against Indemnitor whether or not action is
brought against Indemnitor or any other indemnitor and whether or not Indemnitor is joined in any action
against such indemnitor on this Agreement. Lender would not make the Loan without this Agreement and
Indemnitor acknowledges and understands that this Agreement is a material inducement for their
agreement to make the Loan..
7. Waiver. Indemnitor waives any right or claim of right to cause a marshaling of the assets
of Indemnitor or to cause Lender to proceed against any of the security for the Loan before proceeding
under this Agreement against Indemnitor. Indemnitor agrees that any payments required to be made
hereunder will become due on demand made in writing by a Indemnified Party. Indemnitor expressly
waives and relinquishes all rights, remedies or defenses accorded by applicable law to indemnitors or
guarantors, except any rights of subrogation that Indemnitor may have, provided that the indemnity
provided for hereunder will neither be contingent upon the existence of any such rights of subrogation nor
subject to any claims or defenses whatsoever that may be asserted in connection with the enforcement or
attempted enforcement of such subrogation rights, including, without limitation, any claim that such
subrogation rights were abrogated by any acts or omissions of Lender.
8. Notices. All notices, consents, approvals, elections and other communications hereunder
will be given and received (or deemed received) in accordance with the terms of the Loan Agreement.
9. Attorneys’ Fees. In the event that any either party brings or otherwise becomes a party to
any suit or other proceeding (including, without limitation, any administrative proceedings) with respect
to the subject matter or enforcement of this Agreement, such prevailing party will, in addition to such 

	
	
Environmental Indemnity Agreement, Page 6
4857-4369-4346.3
other relief as may be awarded, be entitled to recover from non-prevailing party its reasonable attorneys’
fees, expenses and costs of investigation as are reasonably incurred, provided that a determination is final,
non-appealable order with respect to such litigation, claim or otherwise.
10. Governing Law. This Note will be governed by and construed in accordance with the
laws of the State of Texas.
11. Successive Actions. A separate right of action hereunder will arise each time an
Indemnitee acquires knowledge of any matter indemnified by Indemnitor under this Agreement. Separate
and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and
from time to time. No action hereunder will preclude any subsequent action, and Indemnitor hereby
waives and covenants not to assert any defense in the nature of splitting of causes of action or merger of
judgments.
12. Severability. The invalidity or unenforceability of one or more covenants, terms, or
conditions in this Agreement will not affect the remainder of this Agreement.
13. Interest on Unpaid Amounts. All amounts required to be paid or reimbursed to any
Indemnitee hereunder will bear interest from the date of written demand to Indemnitor until paid to
Indemnitee(s). The interest rate will be the “Interest Rate” specified in the Loan Agreement.
14. Joint and Several Liability. The obligations of each Indemnitor, if more than one, under
this Agreement will be the joint and several obligations of each of them.
15. Recitals. All of the Recitals set forth above are true and correct and are incorporated
herein by this reference.
 

	
	The undersigned have executed this Agreement as of the date first set forth above .
..BORROWER:
LF3 EL PASO AIRPORT, LLC,
a Delaware limited liabilit y compan y
B y : Lodging Fund REIT ill OP, LP,
a Delaware limited partnership, its sole member
B y: Lodging Fund REIT III, Inc.,
a Mar y land corporation, its gener 1 partner
By::__,,.,.,y!V\._z':::_::":,,,L..1.��i.------
) Name: Samuel C. Montgomery
Title: Chief Financial Officer
LF3 EL PASO AIRPORT TRS, LLC,
a Delaware limited liability compan y
By : Lodging Fund REIT III TRS, Inc.,
a Delaware corporation, its sole member
By: Lodging Fund REIT III OP, LP,
a Delaware limited partnership, its sole shareholder
B y: Lodging Fund REIT III, Inc.,
a Maryland corporation, its general
rr
e
_
r
_ _ _ _ __
B y:-.'c=fL.J"'2� """'"" _.::..:.__:__ _ _:::c__ ___ _,__
Name: Samuel C. Montgomery
Title: Chief Financial Officer
..GUARANTOR:
LODGING FUND REIT ill OP, LP,
a Delaware limited partnership
By: Lodging Fund REIT III, Inc.,
a Mar y land corporation, its gener 1 partner
By :_-1.;;::J.,;::..i,'-:"":�=--�"----____::,.---­
Name: amuel C. Montgomery
Title: Chief Financial Officer
Environmental Indemnity Agreement, Page 7 4857-4369-4346.1
/s/ Sam Montgomery
/s/ Sam Montgomery
/s/ Sam MontgomeryExhibit 10.182

	
	FIRST AMENDMENT TO CONTRIBUTION AGREEMENT
This FIRST AMENDMENT TO CONTRIBUTION AGREEMENT (this “Amendment”)
is made as of the 23rd day of February 2022 (the “Amendment Date”) by and among Lodging
Fund REIT III OP, LP, a Delaware limited partnership (the “Operating Partnership”), and RLC-
VI Lakewood, LLC, a Colorado limited liability company (the “Contributor”).
WHEREAS, Contributor and Operating Partnership entered into that certain Contribution
Agreement dated December 30, 2021 (the “Agreement”) for the contribution of a 142-room hotel
business known as the Fairfield Inn & Suites Denver Southwest Lakewood located at 3605 S.
Wadsworth Boulevard, Lakewood, Colorado 80235-2012 (the “Property”);
WHEREAS, during the course of Operating Partnership’s due diligence studies, the
Operating Partnership has realized that it will need an extension to the Due Diligence Period (as
defined in the Agreement);
NOW THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
1. Capitalization.  All capitalized terms used herein will have the meanings ascribed
to those terms in the Agreement, unless otherwise specified herein.
2. Due Diligence Period. Section 2.17.1 shall remain in full force and effect except
that the Due Diligence Period shall now extend until 11:59 PM EST on March 2, 2022.
3. Conflict; Counterparts.  In the event of any conflict between the terms of this
Amendment and the Agreement, this Amendment shall control. This Amendment may be executed
in multiple counterparts via facsimile or email in .PDF format, each of which shall be deemed to
be an original, but such counterparts when taken together shall constitute but one Amendment.
4. Successors and Assigns.  This Amendment shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors, administrators, and assigns.
5. Ratification.  Except as set forth above, the terms of the Agreement are hereby
ratified and confirmed in their entirety.
[Signature Page to Follow] 

	
	IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto
as of the day and year first above written.
SELLER:
RLC-VI Lakewood, LLC
a Colorado limited liability company
By ------------
Steph:en: Mills, Manager pi,-.� \i ,\ll H-\.,\,-1-c Li-\ .f
[OPERATING PARTNERSHIP'S SIGNATURE PAGE TO FOLLOW]
/s/ Phillip Hutchins

	
	OPERATING PARTNERSHIP:
LODGING FUND REIT III OP, LP
A Delaware limited partnership
By: Lodging Fund REIT III, Inc.
Its: General Partner
By:
Name:  David R. Durell
Title:  Chief Investment Officer
/s/ David Durell

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]