Document:

ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN REALTY CAPITAL HOSPITALITY TRUST,
INC.,

 

AMERICAN REALTY CAPITAL HOSPITALITY OPERATING
PARTNERSHIP, L.P.,

 

AND

 

AMERICAN REALTY CAPITAL HOSPITALITY ADVISORS,
LLC

 

Dated as of January 7, 2014

 

    	 

    	 

    

 

TABLE OF
CONTENTS

 

	 	 	 	 	Page
	  1.	 	DEFINITIONS	 	1
	 	 	 	 	 
	  2.	 	APPOINTMENT	 	7
	 	 	 	 	 
	  3.	 	DUTIES OF THE ADVISOR	 	7
	 	 	 	 	 
	  4.	 	AUTHORITY OF ADVISOR	 	9
	 	 	 	 	 
	  5.	 	FIDUCIARY RELATIONSHIP	 	9
	 	 	 	 	 
	  6.	 	NO PARTNERSHIP OR JOINT VENTURE	 	9
	 	 	 	 	 
	  7.	 	BANK ACCOUNTS	 	10
	 	 	 	 	 
	  8.	 	RECORDS; ACCESS	 	10
	 	 	 	 	 
	  9.	 	LIMITATIONS ON ACTIVITIES	 	10
	 	 	 	 	 
	 10.	 	FEES	 	10
	 	 	 	 	 
	 11.	 	EXPENSES	 	12
	 	 	 	 	 
	 12.	 	OTHER SERVICES	 	13
	 	 	 	 	 
	 13.	 	REIMBURSEMENT TO THE ADVISOR	 	14
	 	 	 	 	 
	 14.	 	OTHER ACTIVITIES OF THE ADVISOR	 	14
	 	 	 	 	 
	 15.	 	THE AMERICAN REALTY CAPITAL NAME	 	14
	 	 	 	 	 
	 16.	 	TERM OF AGREEMENT	 	15
	 	 	 	 	 
	 17.	 	TERMINATION BY THE PARTIES	 	15
	 	 	 	 	 
	 18.	 	ASSIGNMENT TO AN AFFILIATE	 	15
	 	 	 	 	 
	 19.	 	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	 	15
	 	 	 	 	 
	 20.	 	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT	 	16
	 	 	 	 	 
	 21.	 	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	 	16
	 	 	 	 	 
	 22.	 	INDEMNIFICATION BY ADVISOR	 	17
	 	 	 	 	 
	 23. 	 	NOTICES	 	17
	 	 	 	 	 
	 24.	 	MODIFICATION	 	18
	 	 	 	 	 
	 25.	 	SEVERABILITY	 	18
	 	 	 	 	 
	 26.	 	GOVERNING LAW	 	18
	 	 	 	 	 
	 27.	 	ENTIRE AGREEMENT	 	18
	 	 	 	 	 
	 28.	 	NO WAIVER	 	18
	 	 	 	 	 
	 29.	 	PRONOUNS AND PLURALS	 	18
	 	 	 	 	 
	 30.	 	HEADINGS	 	18
	 	 	 	 	 
	 31.	 	EXECUTION IN COUNTERPARTS	 	18

 

    	 

    	 

    

 

FORM OF ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT (this “Agreement”)
dated as of January 7, 2014, is entered into among American Realty Capital Hospitality Trust, Inc., a Maryland corporation
(the “Company”), American Realty Capital Hospitality Operating Partnership, L.P., a Delaware limited partnership
(the “Operating Partnership”), and American Realty Capital Hospitality Advisors, LLC, a Delaware limited liability
company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation
created in accordance with Maryland General Corporation Law and intends to qualify as a REIT (as defined below);

 

WHEREAS, the Company is the general partner
of the Operating Partnership;

 

WHEREAS, the Company and the Operating Partnership
desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of the Advisor
and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision
of the Board of Directors of the Company, all as provided herein; and

 

WHEREAS, the Advisor is willing to render
such services, subject to the supervision of the Board of Directors of the Company, on the terms and subject to the conditions
hereinafter set forth.

 

NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

1.           
DEFINITIONS.   As used in this Agreement, the following terms have the definitions set forth below:

 

“ Acquisition Expenses”
means any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Operating Partnership, the Advisor or any
of their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development of any Investments,
whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage
fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance
premiums and the costs of performing due diligence.

 

“Acquisition Fee”
means the fee payable to the Advisor or its Affiliates pursuant to Section 10(a).

 

“Advisor” means
American Realty Capital Hospitality Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and
the Operating Partnership, or any Person to which American Realty Capital Hospitality Advisors, LLC or any successor advisor subcontracts
substantially all its functions.  Notwithstanding the foregoing, a Person hired or retained by American Realty Capital
Hospitality Advisors, LLC to perform property management and related services for the Company or the Operating Partnership that
is not hired or retained to perform substantially all the functions of American Realty Capital Hospitality Advisors, LLC with respect
to the Company and the Operating Partnership as a whole shall not be deemed to be an Advisor. 

 

“ Affiliate” or
“ Affiliated” means with respect to any Person, (i) any other Person directly or indirectly owning,
controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such Person;
(ii) any other Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled
or held, with the power to vote, by such Person; (iii) any other Person directly or indirectly controlling, controlled by
or under common control with such Person; (iv) any executive officer, director, trustee or general partner of such Person;
and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.  For
purposes of this definition, the terms “controls,” “is controlled by,” or “is under common control
with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of an entity, whether through ownership or voting rights, by contract or otherwise.

 

    	1

    	 

    

 

“Agreement” has
the meaning set forth in the preamble, and such term shall include any amendment or supplement hereto from time to time.

 

“Annual Subordinated Performance
Fee” means the fees payable to the Advisor or its assignees pursuant to Section 10(e).

 

“Articles of Incorporation”
means the charter of the Company, as the same may be amended from time to time.

  

“Average Invested Assets”
has the meaning set forth in the Articles of Incorporation.  For an equity interest owned in a Joint Venture, the calculation
of Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value for the equity
interest.

 

“Board of Directors”
or “Board” means the Board of Directors of the Company.

 

“Bylaws” means
the bylaws of the Company, as amended and as the same are in effect from time to time.

 

“ Cause” means
(i) fraud, criminal conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Advisor, or (ii) if any
of the following events occur:  (A) the Advisor shall breach any material provision of this Agreement, and after written
notice of such breach, shall not cure such default within thirty (30) days or have begun action within thirty (30) days to cure
the default which shall be completed with reasonable diligence; (B) the Advisor shall be adjudged bankrupt or insolvent by a court
of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver, liquidator,
or trustee of the Advisor, for all or substantially all its property by reason of the foregoing, or if a court of competent jurisdiction
approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in force or unstayed
for a period of thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary bankruptcy or shall file a petition
seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors, or shall consent to
the appointment of a receiver for itself or for all or substantially all its property, or shall make a general assignment for the
benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become due.

 

“ Change of Control
” means a change of control of the Company of a nature that would be required to be reported in response to the disclosure
requirements of Schedule 14A of Regulation 14A promulgated under the Exchange Act, as enacted and in force on the date hereof,
whether or not the Company is then subject to such reporting requirements; provided, however, that, without limitation,
a Change of Control shall be deemed to have occurred if:  (i) any “person” (within the meaning of Section
13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that
term is defined in Rule 13d-3, as enacted and in force on the date hereof, under the Exchange Act) of securities of the Company
representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a
merger, consolidation or other reorganization of the Company which is not approved by the Board of Directors; (iii) there occurs
a sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person, which disposition
is not approved by the Board of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders that results
in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.  Reference to any provision
of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto,
as interpreted by any applicable regulations as in effect from time to time.

 

    	2

    	 

    

 

“Common
Stock” means the shares of the Company’s common stock, par value $0.01 per share.

 

“Company”
has the meaning set forth in the preamble.

 

“Competitive Real Estate Commission”
means a real estate or brokerage commission for the purchase or sale of an asset which is reasonable, customary and competitive
in light of the size, type and location of the asset.

 

“Contract Purchase Price”
has the meaning set forth in the Articles of Incorporation.

 

“Contract Sales Price”
means the total consideration received by the Company for the sale of an Investment.

 

“Cost of Assets”
means, with respect to a Real Estate Asset, the purchase price,

Acquisition Expenses, capital expenditures and other customarily
capitalized costs, but shall exclude Acquisition Fees associated with such Real Estate Asset.

 

“Dealer Manager”
means Realty Capital Securities, LLC, or such other Person selected by the Board of Directors to act as the dealer manager for
the Offering.

 

“Dealer Manager Fee”
means the fee from the sale of Shares in a Primary Offering, payable to the Dealer Manager for serving as the dealer manager of
such Primary Offering.

 

“Director” means
a director of the Company.

 

“Distributions”
means any distributions of money or other property by the Company to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.

 

“Excess Amount” has
the meaning set forth in Section 13.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto. Reference to any provision
of the Exchange Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision
thereto, as interpreted by any applicable regulations as in effect from time to time.

 

“Expense Year”
has the meaning set forth in Section 13.

  

“Financing Coordination Fee” means
the fee payable to the Advisor or its Affiliates pursuant to Section 10(d).

 

“FINRA” means
the Financial Industry Regulatory Authority, Inc.

 

“GAAP” means
United States generally accepted accounting principles, consistently applied.

 

“Good Reason ”
means:  (i) any failure to obtain a satisfactory agreement from any successor to the Company or the Operating Partnership
to assume and agree to perform obligations under this Agreement; or (ii) any material breach of this Agreement of any nature whatsoever
by the Company or the Operating Partnership.

 

“Gross Proceeds”
means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for
Selling Commissions, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering
Expenses.  For the purpose of computing Gross Proceeds, the purchase price of any Share for which reduced Selling Commissions
are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall be deemed to be
the full amount of the offering price per Share pursuant to the Prospectus for such Offering without reduction.

 

    	3

    	 

    

 

“Indemnitee”
has the meaning set forth in Section 21.

 

“Independent Director”
has the meaning set forth in the Articles of Incorporation.

 

“Independent Valuation Advisor”
means a firm that is (i) engaged in the business of conducting appraisals on real estate properties, (ii) not an affiliate of
the Advisor and (iii) engaged by the Company with the Board’s approval to appraise the Real Properties and other Investments
pursuant to the Valuation Guidelines.

 

“Investments”
means any investments by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate
Related Loans or any other asset.

 

“Joint Ventures”
means the joint venture or partnership or other similar arrangements (other than between the Company and the Operating Partnership)
in which the Company or the Operating Partnership or any of their subsidiaries is a co-venturer, limited liability company member,
limited partner or general partner, which are established to acquire or hold Investments.

 

“Listing”
means the listing of the Common Stock on a national securities exchange, or the inclusion of the Common Stock for trading
in the over-the-counter-market.

 

“Loans” means
any indebtedness or obligations in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit or similar instruments, including mortgages and mezzanine loans.

 

“NAREIT
FFO” means funds from operations (“FFO”), consistent with the standards established by the White
Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”),
as revised in February 2004 and as modified by NAREIT from time to time.

 

“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by the North American Securities
Administrators Association on May 7, 2007, as the same may be amended from time to time.

 

“NAV” means the
Company’s net asset value, calculated pursuant to the Valuation Guidelines.

 

“NAV
Pricing Start Date” means the first date on which the Company calculates NAV.

 

“Net Income”
means, for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such
period other than additions to reserves for depreciation, bad debts, impairments or other similar non-cash reserves and excluding
any gain from the sale of the Company’s assets. 

  

“Notice” has
the meaning set forth in Section 23.

 

“Offering” means
any public offering and sale of Shares pursuant to an effective registration statement filed under the Securities Act.

 

“Operating
Partnership” has the meaning set forth in the preamble.

 

“Operating Partnership Agreement”
means the Agreement of Limited Partnership of the Operating Partnership, dated as of January 7, 2014, among the Company, American
Realty Capital Hospitality Special Limited Partner, LLC, and the Advisor, as the same may be amended from time to time.

 

    	4

    	 

    

 

“OP Units” means
units of limited partnership interest in the Operating Partnership.

 

“Organization and Offering
Expenses” means all expenses (other than the Selling Commission and the Dealer Manager Fee) to be paid by the Company
in connection with an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow holder and
transfer agent, charges of the Advisor for administrative services related to the issuance of Shares in an Offering, reimbursement
of the Advisor for costs in connection with preparing supplemental sales materials, the cost of bona fide training and education
meetings held by the Company (primarily the travel, meal and lodging costs of the registered representatives of broker-dealers),
attendance and sponsorship fees and cost reimbursement for employees of the Company’s Affiliates to attend retail seminars
conducted by broker-dealers and, in special cases, reimbursement to soliciting broker-dealers for technology costs associated
with an Offering, costs and expenses related to such technology costs, and costs and expenses associated with facilitation of
the marketing of the Shares and the ownership of Shares by such broker-dealer’s customers.

 

“Person” has
the meaning set forth in the Articles of Incorporation.

  

“Primary Offering”
means the portion of an Offering other than the Shares offered pursuant to the Company’s distribution reinvestment plan.

 

“Prospectus”
means a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time. 

 

“Real Estate Assets”
means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Estate Commission”
means the fees payable to the Advisor pursuant to Section 10(c).

 

“Real Estate Related Loans”
means any investments in mortgage loans and other types of real estate related debt financing, including, mezzanine loans, bridge
loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans, by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Property”
means (i) land, (ii) rights in land (including leasehold interests), and (iii) any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.

 

“Registration Statement”
means the Company’s registration statement on Form S-11 (File No. 333-190698) and the prospectus contained therein.

 

“REIT” means
a corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing
in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both,
as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real
estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations
promulgated thereunder.

 

    	5

    	 

    

 

“Sale” or “Sales”
means any transaction or series of transactions whereby:  (i) the Company or the Operating Partnership directly
or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its direct or indirect ownership of any Real Estate Assets, Loan or other Investment or portion thereof, including the lease of
any Real Estate Assets consisting of a building only, and including any event with respect to any Real Estate Assets that gives
rise to a significant amount of insurance proceeds or condemnation awards; (ii) the Company or the Operating Partnership
directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its ownership of all or substantially all the direct or indirect interest of the Company or the Operating Partnership in any Joint
Venture in which it is a co-venturer, member or partner; (iii) any Joint Venture directly or indirectly (except as described
in other subsections of this definition) in which the Company or the Operating Partnership as a co-venturer, member or partner
sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Real Estate Assets or portion thereof,
including any event with respect to any Real Estate Assets which gives rise to insurance claims or condemnation awards; or (iv) the
Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells,
grants, conveys or relinquishes its direct or indirect interest in any Real Estate Related Loans or portion thereof (including
with respect to any Real Estate Related Loan, all payments thereunder or in satisfaction thereof other than regularly scheduled
interest payments) and any event which gives rise to a significant amount of insurance proceeds or similar awards; or (v) the
Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys, or relinquishes its direct or indirect ownership of any other asset not previously described in this
definition or any portion thereof, but not including any transaction or series of transactions specified in clauses (i) through
(v) above in which the proceeds of such transaction or series of transactions are reinvested by the Company in one or more
assets within 180 days thereafter.

 

 “Securities Act”
means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision
thereto, as interpreted by any applicable regulations as in effect from time to time. 

 

“Selling Commission”
means the fee payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares sold by them in a Primary
Offering.

 

“Shares” means
the shares of beneficial interest or of common stock of the Company of any class or
series, including Common Stock, that has the right to elect the Directors of the Company.

 

“Soliciting Dealers”
means broker-dealers that are members of FINRA, or that are exempt from broker-dealer registration, and that, in either case,
have executed soliciting dealer or other agreements with the Dealer Manager to sell Shares.

 

“Sponsor” means
American Realty Capital IX, LLC, a Delaware limited liability company.

 

“Stockholders”
means the holders of record of the Shares as maintained on the books and records of the Company or its transfer agent.

 

“Subordinated Participation
Interest” means a profits interest in the Operating Partnership designated as a Class B Unit in accordance with
the terms of the Operating Partnership Agreement. 

  

“Termination Date”
means the date of termination of this Agreement.

 

“Total Operating Expenses”
has the meaning set forth in the Articles of Incorporation.  The definition of “Total Operating Expenses”
set forth above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under
the NASAA REIT Guidelines.  As a result, and notwithstanding the definition set forth above, any expense of the Company
which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating
Expenses for purposes hereof.

 

“Total Return to Stockholders”
means receipt by Stockholders of an annual cumulative, pre-tax, non-compounded return on the capital contributed by Stockholders
in excess of a return of capital contributions to Stockholders.

 

“Valuation Guidelines”
means the valuation guidelines adopted by the Board, as may be amended from time to time.

 

    	6

    	 

    

 

“2%/25% Guidelines”
has the meaning set forth in Section 13.

 

2.           
APPOINTMENT.   The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor to
perform the services set forth herein on the terms and subject to the conditions set forth in this Agreement and subject to the
supervision of the Board, and the Advisor hereby accepts such appointment.

 

3.           
DUTIES OF THE ADVISOR.   The Advisor will use its reasonable best efforts to present to the Company and the Operating
Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from time to time by the Board.  In performance
of this undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles of Incorporation,
By-laws and the Operating Partnership Agreement, the Advisor, directly or indirectly, will:  

 

(a)           serve
as the Company’s and the Operating Partnership’s investment and financial advisor;

 

(b)           provide
the daily management for the Company and the Operating Partnership and perform and supervise the various administrative functions
necessary for the day-to-day management of the operations of the Company and the Operating Partnership;

 

(c)           investigate,
select and, on behalf of the Company and the Operating Partnership, engage and conduct business with and supervise the performance
of such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder (including consultants,
accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, property
managers, real estate management companies, real estate operating companies, securities investment advisors, mortgagors, the registrar
and the transfer agent and any and all agents for any of the foregoing), including Affiliates of the Advisor and Persons acting
in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services (including
entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing);

 

(d)           consult
with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s
financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments
consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken
by the Company or the Operating Partnership;

 

(e)           subject
to the provisions of Section 4 , (i) participate in formulating an investment strategy and asset allocation framework;
(ii) locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions
pursuant to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend
acquisitions and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership
in compliance with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal
with, Investments; (vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform
all other operational functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee
and manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial
information for each of the Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding
agreements and oversee and monitor these relationships; (ix) oversee, supervise and evaluate Affiliated and non-Affiliated property
managers who perform services for the Company or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons
with whom the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xi) manage
accounting and other record-keeping functions for the Company and the Operating Partnership, including reviewing and analyzing
the capital and operating budgets for the Real Estate Assets and generating an annual budget for the Company; (xii) recommend
various liquidity events to the Board when appropriate; and (xiii) source and structure Real Estate Related Loans; 

 

    	7

    	 

    

  

(f)           upon
request, provide the Board with periodic reports regarding prospective investments;

 

(g)           make
investments in, and dispositions of, Investments within the discretionary limits and authority as granted by the Board;

 

(h)           negotiate
on behalf of the Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company, the Operating
Partnership or any of their subsidiaries, and negotiate with investment banking firms and broker-dealers on behalf of the Company,
the Operating Partnership or any of their subsidiaries, or negotiate private sales of Shares or obtain Loans for the Company,
the Operating Partnership or any of their subsidiaries, but in no event in such a manner so that the Advisor shall be acting as
broker-dealer or underwriter; provided , however , that any fees and costs payable to third parties incurred by
the Advisor in connection with the foregoing shall be the responsibility of the Company, the Operating Partnership or any of their
subsidiaries;

 

(i)           obtain
reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the
value of Investments or contemplated investments of the Company and the Operating Partnership;

 

(j)           from
time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the
Company and the Operating Partnership under this Agreement, including reports with respect to potential conflicts of interest
involving the Advisor or any of its Affiliates;

 

(k)           provide
the Company and the Operating Partnership with all necessary cash management services;

 

(l)           deliver
to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with the investments in any Real Estate
Assets as may be required to be obtained by the Board;

 

(m)           notify
the Board of all proposed material transactions before they are completed;

 

 (n)           effect
any private placement of OP Units, tenancy-in-common (TIC) or other interests in Investments as may be approved by the Board;

 

(o)           perform
investor-relations and Stockholder communications functions for the Company;

  

(p)           render
such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein;

 

(q)           maintain
the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with
the Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

 

(r)           do
all things reasonably necessary to assure its ability to render the services described in this Agreement;

 

(s)           at the end of each quarter, calculate
the NAV as provided in the Registration Statement, and in connection therewith, obtain appraisals performed by the Independent
Valuation Advisor; and

 

(t)           supervise one or more Independent
Valuation Advisor and, if and when necessary, recommend to the Board its replacement.

 

    	8

    	 

    

 

(u)           From time to time, or at any time
reasonably requested by the Board, make reports to the Board on the Advisor’s performance of services to the Company and
the Operating Partnership under this Agreement;

 

(v)           Make reports to the Independent
Directors each quarter of the investments that have been made by other programs sponsored by the Advisor, the Sub-advisor or any
of their respective Affiliates, as well as any investments that have been made by the Advisor, Sub-advisor or any of their Affiliates
directly, in each case to the extent such investments constitute a conflict of interest or a potential conflict of interest with
the investment policies and objectives of the Company;

 

(w)           Manage and coordinate with the transfer
agent the monthly distribution process and payments to Stockholders;

 

(x)           Provide the Company’s officers
and the Board with timely updates related to the overall regulatory environment affecting the Company, as well as managing compliance
with such matters, including compliance with the Sarbanes Oxley Act of 2002;

 

(y)           Consult with the Company’s
officers and the Board relating to the corporate governance structure and appropriate policies and procedures related thereto;
and

 

(z)           Perform all reporting, record keeping,
internal controls and similar matters in a manner that allows the Company to comply with applicable law, including federal and
state securities laws and the Sarbanes Oxley Act of 2002.

 

Notwithstanding the foregoing or anything
else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties to any Person so long
as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this Section 3.

 

4.           
AUTHORITY OF ADVISOR.

 

(a)           Pursuant
to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 9),
and subject to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on
the authority of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.

 

(b)           Notwithstanding
anything herein to the contrary, all Investments will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board specified by the Board, as the case may be.

 

(c)           If
a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents
and other information reasonably required by them to evaluate properly the proposed transaction.

 

(d)           The
Board may, at any time upon the giving of Notice to the Advisor, modify or revoke the authority set forth in this Section 4;
provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be
applicable to investment transactions to which the Advisor has committed the Company or the Operating Partnership prior to the
date of receipt by the Advisor of such notification.

 

5.           
FIDUCIARY RELATIONSHIP.   The Advisor, as a result of its relationship with the Company and the Operating Partnership
pursuant to this Agreement, has a fiduciary responsibility and duty to the Company, the Stockholders and the partners in the Operating
Partnership. 

 

6.           
NO PARTNERSHIP OR JOINT VENTURE.   Except as provided in Section 10(g), the parties to this Agreement are
not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers
or impose any liability as such on either of them.

 

    	9

    	 

    

 

7.           
BANK ACCOUNTS.   The Advisor may establish and maintain one or more bank accounts in the name of the Company or
the Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or
accounts, any money on behalf of the Company or the Operating Partnership, under such terms and conditions as the Board may approve;
provided, that no funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render
appropriate accountings of such collections and payments to the Board and to the auditors of the Company. 

 

8.           
RECORDS; ACCESS.   The Advisor shall maintain appropriate records of all its activities hereunder and make such
records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and
from time to time.  The Advisor shall at all reasonable times have access to the books and records of the Company and
the Operating Partnership.

 

9.           
LIMITATIONS ON ACTIVITIES   Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking
any action which, in its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely affect
the status of the Company as a REIT, unless the Board has determined that REIT qualification is not in the best interests of the
Company and its Stockholders, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended,
or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over
the Company, the Operating Partnership or the Shares, or otherwise not be permitted by the Articles of Incorporation or By-laws,
except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s
judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification
or instructions from the Board.  In such event, the Advisor shall have no liability for acting in accordance with the
specific instructions of the Board so given.

 

10.         FEES.

 

(a)           
Acquisition Fee.  Subject to Section 10(b), the Company shall pay an Acquisition Fee to the Advisor
or its Affiliates as compensation for services rendered in connection with the investigation, selection and acquisition (by purchase,
investment or exchange) of Investments. If the Advisor is terminated without Cause pursuant to Section 17(a), the Advisor
or its Affiliates shall be entitled to an Acquisition Fee for any Investments acquired after the Termination Date for which
a contract to acquire any such Investment had been entered into at or prior to the Termination Date. The total Acquisition
Fee payable to the Advisor or its Affiliates shall equal one and one-half percent (1.5%) of the Contract Purchase Price of each
Investment.   The purchase price allocable for an Investment held through a Joint Venture shall equal the product of
(i) the Contract Purchase Price of the Investment and (ii) the direct or indirect ownership percentage in the Joint
Venture held directly or indirectly by the Company or the Operating Partnership.  For purposes of this Section 10(a),
“ownership percentage” shall be the percentage of capital stock, membership interests, partnership interests or other
equity interests held by the Company or the Operating Partnership, without regard to classification of such equity interests.  The
Company shall pay to the Advisor or its Affiliates the Acquisition Fee promptly upon the closing of the Investment and shall cover
services rendered by the Advisor or its Affiliates until such time as a letter of intent to purchase such Investment has been
submitted to the seller by the Advisor and the Advisor has presented a detailed investment memorandum to the Board of Directors
for approval.  In addition, if during the period ending two years after the close of the initial Offering, the Company
sells an Investment and then reinvests in other Investments, the Company will pay to the Advisor or its Affiliates one and one-half
percent (1.5%) of the Contract Purchase Price of the Investments. 

 

(b)           
Limitation on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses.  

 

    	10

    	 

    

 

(i) The total of all “Acquisition
Fees” (as defined in the Articles of Incorporation), Financing Coordination Fees and Acquisition Expenses payable
in connection with the Company’s total portfolio of Investments and reinvestments, if any, shall be reasonable and
shall not exceed an amount equal to four and one-half percent (4.5%) of the Contract Purchase Price of the Company’s total
portfolio of Investments or four and one-half percent (4.5%) of the amount advanced for the Company’s total portfolio of
Investments; provided, however, that once all the proceeds from the initial Offering have been fully invested,
the total of all Acquisition Fees and Financing Coordination Fees shall not exceed one and nine-tenths percent (1.9%) of
the Contract Purchase Price of all the Investments acquired.

 

(ii) In accordance with the Articles
of Incorporation, the total of all Acquisition Fees, Financing Coordination Fees and Acquisition Expenses payable in connection
with any Investment or any reinvestment shall be reasonable and shall not exceed an amount equal to four and one-half percent
(4.5%) of the Contract Purchase Price of the Investment or four and one-half percent (4.5%) of the amount advanced for any Investment;
provided, further, however, that a majority of the Directors (including a majority of the Independent
Directors) not otherwise interested in the transaction may approve fees and expenses in excess of these limits if they
determine the transaction to be commercially competitive, fair and reasonable to the Company.

 

(c)           
Real Estate Commission.  In connection with a Sale of a Real Estate Asset in which the Advisor or any
Affiliate of the Advisor provides a substantial amount of services, as determined by the Independent Directors, the Company shall
pay to the Advisor or its assignees a Real Estate Commission up to the lesser of (i) two percent (2.0%) of the Contract Sales
Price of such Real Estate Asset or (ii) one-half of the Competitive Real Estate Commission paid if a non-Affiliate broker is also
involved; provided, however, that in no event may the Real Estate Commission paid to the Advisor, its Affiliates and non-Affiliates,
exceed the lesser of six percent (6.0%) of the Contract Sales Price and a Competitive Real Estate Commission.

 

(d)           
Financing Coordination Fee.   The Company shall pay a Financing Coordination Fee to the Advisor or its
assignees in connection with the financing of any Investment, assumption of any Loans with respect to any Investment or refinancing
of any Loan in an amount equal to 0.75% of the amount made available and/or outstanding under any such Loan, including any assumed
Loan.  The Advisor may reallow some of or all this Financing Coordination Fee to reimburse third parties with whom it
may subcontract to procure any such Loan.

  

(e)           
Annual Subordinated Performance Fee. The Company may pay the Advisor an Annual Subordinated Performance Fee calculated
on the basis of the Total Return to Stockholders, payable monthly in arrears in any year in which the Company’s Total Return
to Stockholders exceeds six percent (6%) per annum, in an amount equal to fifteen percent (15%) of the excess Total Return to
Stockholders, provided, that the Annual Subordinated Performance Fee shall not exceed ten percent (10%) of the aggregate Total
Return to Stockholders for such year.

 

(f)             Payment of Fees.  
In connection with the Acquisition Fee, Real Estate Commission, Annual Subordinated Performance Fee and Financing Coordination
Fee, the Company shall pay such fees to the Advisor or its assignees in cash, in Shares, or a combination of both, the form of
payment to be determined in the sole discretion of the Advisor. For the purposes of the payment of any fees in Shares, (i) if
at the applicable time an Offering is underway, (a) prior to the NAV Pricing Start Date, each Share shall be valued at the per-share
offering price of the Shares in such Offering minus the maximum Selling Commissions and Dealer Manager Fee allowed in such Offering,
and (b) after the NAV Pricing Start Date, each Share shall be valued at the then-current NAV per Share; and (ii) at all other
times, each Share shall be valued by the Board in good faith (A) at the estimated value thereof, calculated in accordance with
the provisions of NASD Rule 2340(c)(1) (or any successor or similar FINRA rule), or (B) if no such rule shall then exist, at the
fair market value thereof; provided, however, that in the case of Asset Management Fees payable in grants of restricted Shares,
each Share shall be valued in accordance with the provisions of the equity incentive plan of the Company pursuant to which such
grants are to be made.

  

    	11

    	 

    

 

(g)         
   Exclusion of Certain Transactions. 

 

(i)           
If the Company or the Operating Partnership shall propose to enter into any transaction in which the Advisor, any Affiliate of
the Advisor or any of the Advisor’s directors or officers has a direct or indirect interest, then such transaction shall
be approved by a majority of the Board not otherwise interested in such transaction, including a majority of the Independent Directors.

 

(ii)          Neither
the Company nor the Operating Partnership shall make Loans to the Advisor or any Affiliate thereof or certain of the Stockholders
except Mortgages (as defined in the Articles of Incorporation) pursuant to Section 9.3(iii) of the Articles of Incorporation (or
any successor provision) or loans to wholly owned subsidiaries of the Company. None of the Advisor nor any Affiliate thereof,
or certain of the Stockholders shall make loans to the Company or the Operating Partnership, or to Joint Ventures, unless approved
by a majority of the Directors (including a majority of the Independent Directors) not otherwise interested in such transaction
as fair, competitive, and commercially reasonable, and no less favorable to the Company or Operating Partnership, as applicable,
than comparable loans between unaffiliated parties.

 

(iii)       The Company and the Operating Partnership
may enter into Joint Ventures with the Advisor or its Affiliates provided that (a) a majority of Directors (including a majority
of Independent Directors) not otherwise interested in the transaction approves the transaction as being fair and reasonable to
the Company or Operating Partnership, as applicable, and (b) the investment by the Company or Operating Partnership, as applicable,
is on substantially the same terms as those received by other joint venturers.

 

 (iv)       If the Board elects to internalize
any management services provided by the Advisor, neither the Company nor the Operating Partnership shall pay any compensation
or other remuneration to the Advisor or its Affiliates in connection with such internalization of management services.

 

(h)           Subordinated Participation
Interests.   The Company shall cause the Operating Partnership to periodically issue Subordinated Participation
Interests in the Operating Partnership to the Advisor or its assignees, pursuant to the terms and conditions contained in the
Operating Partnership Agreement, in connection with the Advisor’s (or its assignees’) management of the Operating
Partnership’s assets.

 

11.        
  EXPENSES.

 

(a)           In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership
shall pay directly or reimburse the Advisor for all the expenses paid or incurred by the Advisor or its Affiliates in connection
with the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including, the following:

 

(i)             Organization
and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and
itemized invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such reimbursement
would cause the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed
two percent (2.0%) of the Gross Proceeds raised in all Primary Offerings;

 

(ii)           Acquisition
Expenses, subject to the limitations set forth in Section 10(b), and a specific reimbursement to the Advisor not to exceed
0.10% of the Contract Purchase price of an Investment for legal expenses it or its affiliates incur in connection with the selection,
evaluation and acquisition of an Investment, also subject to the limitations set forth in Section 10(b);

 

(iii)           the
actual cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor;

 

    	12

    	 

    

 

(iv)           interest
and other costs for Loans, including discounts, points and other similar fees; 

 

(v)           taxes
and assessments on income of the Company or Investments;

 

(vi)          costs
associated with insurance required in connection with the business of the Company or by the Board;

 

(vii)         expenses
of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated
Person;

 

(viii)           all
expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

(ix)          
 expenses associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions
and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees;

 

(x)           expenses
connected with payments of Distributions;

 

(xi)           expenses
of organizing, revising, amending, converting, modifying or terminating the Company, the Operating Partnership or any subsidiary
thereof or the Articles of Incorporation, By-laws or governing documents of the Operating Partnership or any subsidiary of the
Company or the Operating Partnership;

 

(xii)          expenses
of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other
Stockholder reports, proxy statements and other reports required by governmental entities;

 

(xiii)         administrative
service expenses, including all costs and expenses incurred by the Advisor or its Affiliates in fulfilling its duties hereunder,
including reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services;
provided , however , that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates
to the extent that such employees perform services for which the Advisor receives a separate fee and no reimbursement shall be
made for salaries, bonuses or benefits to be paid to the Company’s executive officers; and

 

(xiv)          audit,
accounting and legal fees.

 

(b)           Commencing
upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment and (ii) six (6) months
after the commencement of the initial Offering, expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
or in connection with the services provided by the Advisor hereunder and payable pursuant to this Section 11 shall be reimbursed,
no less than monthly, to the Advisor.

 

12.         
OTHER SERVICES.    Should the Board request that the Advisor or any director, officer or employee thereof
render services for the Company and the Operating Partnership other than set forth in Section 3 , such services shall
be separately compensated at such customary rates and in such customary amounts as are agreed upon by the Advisor and the Board,
including a majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and
shall not be deemed to be services pursuant to the terms of this Agreement.

 

    	13

    	 

    

 

13.         
REIMBURSEMENT TO THE ADVISOR.    The Company shall not reimburse the Advisor at the end of any fiscal quarter
in which Total Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal quarters then ended (the “Expense
Year”) exceed (the “Excess Amount”) the greater of two percent (2%) of Average Invested Assets
or twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”) for such year.  Any Excess Amount
paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the option of the Company, subtracted from the
Total Operating Expenses reimbursed during the subsequent fiscal quarter.  If there is an Excess Amount in any Expense
Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which they
deem sufficient, then the Excess Amount may be carried over and included in Total Operating Expenses in subsequent Expense Years
and reimbursed to the Advisor in one or more of such years, provided that there shall be sent to the Stockholders a written disclosure
of such fact, together with an explanation of the factors the Independent Directors considered in determining that such excess
expenses were justified.  Such determination shall be reflected in the minutes of the meetings of the Board.  All
figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.

 

14.         
OTHER ACTIVITIES OF THE ADVISOR.   Except as set forth in this Section 14 , nothing herein contained shall
prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including the rendering of
advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Sponsor
or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee or
stockholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business or to render services of
any kind to any other Person and earn fees for rendering such services; provided, however , that the Advisor must devote
sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement.  The
Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and
every other participant therein, and earn fees for rendering such advice and service.  Specifically, it is contemplated
that the Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and pursuant
to the agreements governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and service to such
Persons, in which case the Advisor will earn fees for rendering such advice and service.

 

The Advisor shall report to the Board the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create
a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other
Person.  If the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment
objectives which have investment funds available at the same time as the Company, the Advisor shall inform the Board of the method
to be applied by the Advisor in allocating investment opportunities among the Company and competing investment entities and shall
provide regular updates to the Board of the investment opportunities provided by the Advisor to competing programs in order for
the Board (including the Independent Directors) to fulfill its duty to ensure that the Advisor and its Affiliates use their reasonable
best efforts to apply such method fairly to the Company. 

 

15.         
THE AMERICAN REALTY CAPITAL NAME.   The Advisor and its Affiliates have or may have a proprietary interest in the
names “American Realty Capital,” “ARC” and “AR Capital.”  The Advisor hereby grants
to the Company, to the extent of any proprietary interest the Advisor may have in any of the names “American Realty Capital,”
“ARC” and “AR Capital,” a non-transferable, non-assignable, non-exclusive, royalty-free right and license
to use the names “American Realty Capital,” “ARC” and “AR Capital” during the term of this
Agreement. The Company agrees that the Advisor and its Affiliates will have the right to approve of any use by the Company of
the names “American Realty Capital,” “ARC” and “AR Capital,” such approval not to be unreasonably
withheld or delayed. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or
one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request
from the Advisor, cease to conduct business under or use the names “American Realty Capital,” “ARC” and
“AR Capital” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries
to a name that does not contain the names “American Realty Capital,” “ARC” and “AR Capital”
or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form
of relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes
to any trademarks, servicemarks or other marks necessary to remove any references to the words “American Realty Capital,”
“ARC” and “AR Capital.” Consistent with the foregoing, it is specifically recognized that the Advisor
or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment
vehicles (including vehicles for investment in real estate) and financial and service organizations having any of the names “American
Realty Capital,” “ARC” and “AR Capital” as a part of their name, all without the need for any consent
(and without the right to object thereto) by the Company.  Neither the Advisor nor any of its Affiliates makes any representation
or warranty, express or implied, with respect to the names “American Realty Capital,” “ARC” and “AR
Capital” licensed hereunder or the use thereof (including without limitation as to whether the use of the names “American
Realty Capital,” “ARC” and “AR Capital” will be free from infringement of the intellectual property
rights of third parties.  Notwithstanding the preceding, the Advisor represents and warrants that it is not aware of
any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the names “American
Realty Capital,” “ARC” and “AR Capital.”

 

    	14

    	 

    

 

16.         
TERM OF AGREEMENT.   This Agreement shall continue in force for a period of one year from the date hereof.  Thereafter,
the term may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.

 

17.         
TERMINATION BY THE PARTIES.   This Agreement may be terminated upon sixty (60) days’ prior written notice
(a) by the Independent Directors of the Company or the Advisor, without Cause and without penalty, (b) by the Advisor for Good
Reason, or (c) by the Advisor upon a Change of Control; provided, that termination of this Agreement with Cause shall be
upon I just-five (45) days’ prior written notice.  The provisions of Sections 15 and 19 through
31 (inclusive) of this Agreement shall survive any expiration or earlier termination of this Agreement. 

 

18.         
ASSIGNMENT TO AN AFFILIATE.   This Agreement may be assigned by the Advisor to an Affiliate with the approval of
a majority of the Directors (including a majority of the Independent Directors).  The Advisor may assign any rights
to receive fees or other payments under this Agreement to any Person without obtaining the approval of the Directors.  This
Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor, except in the
case of an assignment by the Company or the Operating Partnership to a Person which is a successor to all the assets, rights and
obligations of the Company or the Operating Partnership, in which case such successor Person shall be bound hereunder and by the
terms of said assignment in the same manner as the Company or the Operating Partnership, as applicable, is bound by this Agreement.

 

19.         
PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a)            
Amounts Owed .  After the Termination Date, the Advisor shall be entitled to receive from the Company
or the Operating Partnership within thirty (30) days after the effective date of such termination all amounts then accrued
and owing to the Advisor, including all its interest in the Company’s income, losses, distributions and capital by payment
of an amount equal to the then-present fair market value of the Advisor’s interest, subject to the 2%/25% Guidelines to
the extent applicable.

  

(b)           
Advisor’s Duties.  The Advisor shall promptly upon termination of this Agreement:

 

 (i)           pay
over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it
is then entitled;

 

(ii)          deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board;

 

(iii)         deliver
to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody
of the Advisor; and

 

(iv)         cooperate
with the Company and the Operating Partnership to provide an orderly management transition.

 

    	15

    	 

    

 

20.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.  To the extent that the Articles of Incorporation
or the Operating Partnership Agreement as in effect on the date hereof impose obligations or restrictions on the Advisor or grant
the Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions
and such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth herein.

 

21.         
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. 

 

(a)           The
Company and the Operating Partnership, jointly and severally, shall indemnify and hold harmless the Advisor and its Affiliates,
as well as their respective officers, directors, equity holders, members, partners, stockholders, other equity holders and employees
(collectively, the “Indemnitees,” and each, an “Indemnitee”), from and against all losses,
claims, damages, losses, joint or several, expenses (including reasonable attorneys’ fees and other legal fees and expenses),
judgments, fines, settlements, and other amounts (collectively, “Losses,” and each, a “Loss”)
arising in the performance of their duties hereunder, including reasonable attorneys’ fees, to the extent such Losses are
not fully reimbursed by insurance, and to the extent that such indemnification would not be inconsistent with the laws of the
State of New York, the Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines. Notwithstanding
the foregoing, the Company and the Operating Partnership shall not provide for indemnification of an Indemnitee for any Loss suffered
by such Indemnitee, nor shall they provide that an Indemnitee be held harmless for any Loss suffered by the Company and the Operating
Partnership, unless all the following conditions are met:

 

(i)           the
Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interest
of the Company and the Operating Partnership;

 

(ii)          the
Indemnitee was acting on behalf of, or performing services for, the Company or the Operating Partnership;

 

(iii)         such
Loss was not the result of negligence or willful misconduct by the Indemnitee; and

 

(iv)        such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

 

(b)           Notwithstanding
the foregoing, an Indemnitee shall not be indemnified by the Company and the Operating Partnership for any Losses arising from
or out of an alleged violation of federal or state securities laws by such Indemnitee unless one or more of the following conditions
are met:

 

(i)           there
has been a successful adjudication on the merits of each count involving alleged securities law violations as to the Indemnitee;

 

(ii)         such
claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or

 

(iii)         a
court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification of the
settlement and the related costs should be made, and the court considering the request for indemnification has been advised of
the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority
in which securities of the Company or the Operating Partnership were offered or sold as to indemnification for violation of securities
laws.

 

(c)           In
addition, the advancement of the Company’s or the Operating Partnership’s funds to an Indemnitee for legal expenses
and other costs incurred as a result of any legal action for which indemnification is being sought is permissible only if all
the following conditions are satisfied:

 

    	16

    	 

    

 

(i)           the
legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Company or the
Operating Partnership;

 

(ii)          the
legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder acting in
such Stockholder’s capacity as such and a court of competent jurisdiction specifically approves such advancement; and

 

(iii)         the
Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal
rate of interest thereon, in cases in which such Indemnitee is found not to be entitled to indemnification.

 

22.         
INDEMNIFICATION BY ADVISOR.   The Advisor shall indemnify and hold harmless the Company and the Operating Partnership
from Losses, including reasonable attorneys’ fees to the extent that such Losses are not fully reimbursed by insurance and
are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence
or reckless disregard of its duties; provided, however, that the Advisor shall not be held responsible for any action of
the Board in following or declining to follow any advice or recommendation given by the Advisor.

 

23.         
NOTICES.   Any notice, report or other communication (each a “Notice”) required or permitted
to be given hereunder shall be in writing unless some other method of giving such Notice is required by the Articles of Incorporation,
the By-laws, and shall be given by being delivered by hand, by courier or overnight carrier or by registered or certified mail
to the addresses set forth below: 

 

	To the Company:	 	American Realty Capital Hospitality Trust, Inc.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:     William M. Kahane
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention: Steven L. Lichtenfeld, Esq.
	 	 	 
	To the Operating Partnership:	 	American Realty Capital Hospitality Operating 
	 	 	Partnership, L.P.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  William M. Kahane
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention: Steven L. Lichtenfeld, Esq.
	 	 	 
	To the Advisor: 	 	American Realty Capital Hospitality Advisors V, LLC
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  William M. Kahane

 

    	17

    	 

    

 

	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention: Steven L. Lichtenfeld, Esq.

 

Any party may at any time give Notice in writing to the other
parties of a change in its address for the purposes of this Section 23 .

 

24.         
MODIFICATION.   This Agreement shall not be amended, supplemented, terminated, or discharged, in whole or in part,
except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

 

25.         
SEVERABILITY.   The provisions of this Agreement are independent of and severable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may
be invalid or unenforceable in whole or in part.

 

26.         GOVERNING
LAW.   The provisions of this Agreement shall be construed and interpreted in accordance with the laws
of the State of New York as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

27.         
ENTIRE AGREEMENT.   This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The
express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms
hereof.  

 

28.         
NO WAIVER.   Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy,
power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is
signed by the party asserted to have granted such waiver.

 

29.         PRONOUNS
AND PLURALS.   Whenever the context may require, any pronoun used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

30.         
HEADINGS.   The titles of sections and subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

31.         
EXECUTION IN COUNTERPARTS.   This Agreement may be executed (including by facsimile transmission) with counterpart
signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left
blank]

 

    	18

    	 

    

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the date first written above.

 

	 	AMERICAN REALTY CAPITAL HOSPITALITY TRUST, INC.
	 	 
	 	By:	/s/ William M. Kahane
	 	 	Name: William M. Kahane  
	 	 	Title:   Chief Executive Officer and President  

 

	 	AMERICAN REALTY CAPITAL HOSPITALITY OPERATING PARTNERSHIP, L.P.
	 	 
	 	By:   American
    Realty Capital Hospitality Trust, Inc., its General Partner
	 	 
	 	By:	/s/ William M. Kahane
	 	 	Name: William M. Kahane
	 	 	Title:   Chief Executive Officer and President

 

	 	AMERICAN REALTY CAPITAL HOSPITALITY ADVISORS, LLC
	 	 
	 	By:  	American Realty Capital Hospitality Special Limited Partner, LLC, its
    Member
	 	 	 
	 	By:	American Realty Capital IX, LLC, it Sole Member  
	 	 	 
	 	By:  	AR Capital, LLC, its Sole Member
	 	 	 
	 	By: 	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch  
	 	 	Title: Authorized Signatory  

 

    	19AGREEMENT
OF PURCHASE AND SALE

 

BY
AND BETWEEN

 

barcelÓ
CRESTLINE CORPORATION

 

aS
“sELLER,”

 

AND

 

ARC
HOSPITALITY TRS HOLDING, LLC

A DELAWARE LIMITED LIABILITY COMPANY,

 

As
“PuRCHASER” 

 

January
30, 2014 

	 

  

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1. INTERPRETATION	1
	 	 	 
	1.1.	Definitions	1
	1.2.	Governing Law	6
	1.3.	Captions, Numbering and Headings	6
	1.4.	Number; Gender	6
	1.5.	Business Day	6
	1.6.	Severability	6
	1.7.	No Oral Modifications or Waivers	7
	1.8.	Exhibits	7
	1.9.	Integration	7
	1.10.	No Construction Against Drafter	7
	1.11.	Including	7
	 	 	 
	ARTICLE 2. SALE OF INTERESTS	7
	 	 	 
	2.1.	Sale and Purchase	7
	2.2.	Purchase Price.	7
	2.3.	Allocation of Purchase Price	8
	 	 
	ARTICLE 3. SELLER’S REPRESENTATIONS AND WARRANTIES	8
	 	 	 
	3.1.	Good Standing	8
	3.2.	Due Authorization	8
	3.3.	No Violations	8
	3.4.	Bankruptcy	8
	3.5.	Litigation	8
	3.6.	Terrorist Organizations Lists	8
	3.7.	Brokers	8
	3.8.	No Liens	9
	3.9.	Violations of Law	9
	3.10.	Condemnation	9
	3.11.	Environmental Matters	9
	3.12.	Contracts	9
	3.13.	Tenant Leases	10
	3.14.	Employees	10
	3.15.	Financial Information	10
	3.16.	Licenses and Permits	10
	 	 	 
	ARTICLE 4. PURCHASER’S REPRESENTATIONS AND WARRANTIES	10
	 	 
	4.1.	Good Standing	10
	4.2.	Due Authorization	10
	4.3.	No Violations	11

 

    	i

    	 

    

 

	4.4.	Bankruptcy	11
	4.5.	Litigation	11
	4.6.	No Other Relationships; Brokers	11
	4.7.	Terrorist Organizations Lists	11
	 	 
	ARTICLE 5. ACTIONS PENDING CLOSING	11
	 	 	 
	5.1.	Additional Due Diligence	11
	5.2.	Covenants	12
	5.3.	Updates to Representations	12
	5.4.	Satisfaction of Conditions	12
	5.5.	Liquor License	12
	5.6.	Consent of Franchisor	13
	5.7.	Schedules	13
	 	 
	ARTICLE 6. CONDITIONS TO CLOSING	13
	 	 	 
	6.1.	Purchaser’s Conditions to Closing	13
	6.2.	Failure of Purchaser’s Condition	13
	6.3.	Seller’s Conditions to Closing	13
	6.4.	Failure of Seller’s Condition	14
	 	 	 
	ARTICLE 7. CLOSING	14
	 	 	 
	7.1.	Closing	14
	7.2.	Seller’s Closing Deliveries	14
	7.3.	Purchaser’s Closing Deliveries	15
	7.4.	Closing and Other Costs	15
	7.5.	Indemnification	16
	7.6.	Survival and other Limitations	18
	 	 
	ARTICLE 8. DEFAULT, REMEDIES	19
	 	 	 
	8.1.	Purchaser’s Default	19
	8.2.	Seller’s Default	19
	 	 	 
	ARTICLE 9. PRORATIONS	20
	9.1.	Prorations	20
	9.2.	Interes	21
	9.3.	Survival	21
	 	 
	ARTICLE 10. MISCELLANEOUS	21
	 	 
	10.1.	Assignment	21
	10.2.	Notices	21
	10.3.	Reserved.	22
	10.4.	Waiver of Jury Trial; Jurisdiction	22

  

    	ii

    	 

    

 

	10.5.	Counterparts; Electronic Signatures and Effectiveness	23
	10.6.	Brokerage	23
	10.7.	No Third Party Beneficiaries	23
	10.8.	Confidentiality	23
	10.9.	Public Announcements	24
	10.10.	Recordation	24
	10.11.	Time of Essence	24
	10.12.	Attorneys’ Fees	24
	10.13.	No Offer	24
	10.14.	Rights under LLC Agreement	24

 

    	iii

    	 

    

 

Schedules
and Exhibits

 

	Schedules
	 	 
	1.1.28	Franchise Agreements
	1.1.40	Management Agreements
	1.1.55Seller’s Knowledge
	2.3	Purchase Price Allocation
	3.5	Pending Actions
	3.11	Environmental Reports
	3.12	Contracts
	3.13	Tenant Leases
	 	 
	Exhibits
	 	 
	A	Form of Assignment and Assumption of Interests
	B	Form of Promissory Note
	C	Form of Indemnity Agreement

  

    	iv

    	 

    

  

AGREEMENT
OF PURCHASE AND SALE

 

THIS AGREEMENT
OF PURCHASE AND SALE (this “Agreement”) is made as of January 30, 2014 (“Contract Date”),
between (i) ARC Hospitality TRS Holding, LLC, a Delaware limited liability company (“Purchaser”), and Barceló
Crestline Corporation, a Maryland corporation (“Seller”).

 

RECITALS:

 

A.                 Seller
is the owner of One Hundred Percent (100%) of the membership interests in each of CHRI Blacksburg (as defined below) and CHRI Virginia
Beach (as defined below).

 

B.                  CHRI
Blacksburg owns twenty four percent (24%) of the membership interests in Blacksburg Hotel Owner (as defined below) and Blacksburg
Hotel Owner ground leases the Blacksburg Hotel (as defined below) pursuant to the terms of the Blacksburg Hotel Ground Lease (as
defined below).

 

C.                  CHRI
Virginia Beach owns thirty and 5323/10000 percent (30.5323 %) of the membership interests in Virginia Beach Hotel Owner (as defined
below) and Virginia Beach Hotel Owner owns the Virginia Beach Hotel (as defined below).

 

D.                 
Seller desires to sell to Purchaser and Purchaser desires to buy from Seller the Interests (as defined below) on the terms and
provisions, and subject to the conditions more particularly set forth in this Agreement.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

ARTICLE
1. INTERPRETATION

 

1.1.        Definitions.
For purposes of this Agreement, the following capitalized terms shall have the meanings
indicated:

 

1.1.1.      Action:
any action, suit, arbitration, governmental investigation or other legal proceeding. 

 

1.1.2.      Apportionment
Time: 11:59 p.m. EDT on the day preceding the Closing Date.

 

1.1.3.      Asset
Purchase and Sale Agreement: that certain Purchase and Sale Agreement, dated on the Contract Date, between (i) HFP Hotel Owner
II, LLC, CSB Stratford, LLC, and CC Technology Square LLC, collectively as seller, and (ii) Purchaser, as purchaser, pursuant to
which seller has agreed to sell and Purchaser has agreed to purchase all of seller’s right, title and interest in and to
certain hotels more particularly described therein.

 

1.1.4.      Assignment
and Assumption of Interests: the Assignment and Assumption of Membership Interests in the form attached hereto as Exhibit
A.

 

    	1

    	 

    

  

1.1.5.      Blacksburg
Hotel: that certain hotel commonly referred to as the Hilton Garden Inn Blacksburg, located at 900 Plantation Rd, Blacksburg,
VA 24060, and leased by Blacksburg Hotel Owner.

 

1.1.6.      Blacksburg
Hotel Ground Lease: Deed of Ground Lease, dated April 27, 2007, between Virginia Tech Foundation, Inc. and Blacksburg Hotel
Owner.

 

1.1.7.      Blacksburg
Hotel Guaranty: First Amended and Restated Guaranty of Payment, dated April 17, 2011, by Daniel A Hoffler, Louis S. Haddad,
Bruce B. Smith, Seller and The Bruce B. Smith Revocable Trust in favor of Blacksburg Hotel Lender.

 

1.1.8.      Blacksburg
Hotel Indemnity: Construction Loan Indemnity, dated March 10, 2008, by AH Hotel Holding, L.L.C., Daniel A. Hoffler, Louis S.
Haddad, Bruce Smith Enterprise, LLC, Bruce B. Smith, CHRI Blacksburg, Seller, Hampton BB Company, LLC, Hampton University, and
Legacy Hospitality, LLC.

 

1.1.9.      Blacksburg
Hotel Lender: Regions Bank, an Alabama banking corporation.

 

1.1.10.    Blacksburg
Hotel Owner: BSE/AH Blacksburg Hotel, L.L.C., a Virginia limited liability company.

 

1.1.11.    Blacksburg
Hotel Owner Operating Agreement: Amended and Restated Operating Agreement of Blacksburg Hotel Owner, dated January 15, 2008,
between AH Hotel Holdings, L.L.C., Hampton BB Company, LLC, Legacy Hospitality, LLC, CHRI Blacksburg, and Bruce Smith Enterprise,
LLC (as the same may be amended or other modified from time to time).

 

1.1.12.    CHRI
Blacksburg: CHRI Blacksburg Hotel (A/H) Minority Holding, LLC, a Delaware limited liability company.

 

1.1.13.    CHRI
Virginia Beach: CHRI Virginia Beach Hotel (A/H) Minority Holding, LLC, a Delaware limited liability company.

 

1.1.14.    Claims:
collectively, all past, present and future claims, cross-claims, counterclaims, demands, liabilities, obligations, debts,
liens, damages, losses, costs, expenses, controversies, actions, rights, suits, assessments, penalties, charges, indemnities,
guaranties, promises, commitments, or causes of action of whatsoever nature, whether in law or equity and whether direct or indirect,
known or unknown, asserted or unasserted, foreseen or unforeseen, fixed or contingent.

 

1.1.15.    Closing:
the consummation of the purchase and sale of the Interests as contemplated by this Agreement.

 

1.1.16.    Closing
Date: the date on which the Closing occurs.

 

1.1.17.    Closing
Year: as defined in Section 9.1.1.

 

    	2

    	 

    

  

1.1.18.    Company:
individually or collectively, as applicable, CHRI Blacksburg and/or CHRI Virginia Beach.

 

1.1.19.    Contract
Date: as defined in the Preamble.

 

1.1.20.    Contract:
as to each Hotel, any contract for services, maintenance and supplies, purchase order, booking and reservation agreement,
credit card service agreement, equipment lease and any other contract or agreement to which the applicable Property Owner or Manager
is a party relating to the use, maintenance, operation, provisioning or equipping of such Hotel; but excluding the Tenant Leases.

 

1.1.21.    Damages:
out-of-pocket damages, liabilities, losses, Claims, costs and expenses (including reasonable attorneys’ fees and expenses)
actually incurred by a Person.

 

1.1.22.    Distribution:
as defined in Section 9.1.1.

 

1.1.23.    Environmental
Laws: all Legal Requirements in effect as of the Contract Date relating to the protection of the environment or to human health,
or regulating the manufacture, use or disposal of Hazardous Substances.

 

1.1.24.    Environmental
Reports: as defined in Section 3.11.

 

1.1.25.    Escrow
Agent: Stewart Title Guaranty, 5935 Carnegie Blvd., Suite 301, Charlotte, NC 28209. Attention: Regina L. Fiegel, Telephone:
(704) 401-2010, Telecopy (704) 401-2039; E-Mail: rfiegel@stewart.com.

 

1.1.26.    Financial
Statements: as defined in Section 3.15.

 

1.1.27.    Fiscal
Year:  as defined in the Management Agreement.

 

1.1.28.    Franchise
Agreement: as to each Hotel, the franchise agreement set forth on Schedule 1.1.28.

 

1.1.29.    Franchisor:
as to each Hotel, the franchisor party to the applicable Franchise Agreement.

 

1.1.30.    Franchisor
Consent: as defined in Section 5.6.

 

1.1.31.    Hazardous
Substance: any pollutant, contaminant or any toxic, radioactive or otherwise hazardous substance, including petroleum, its
derivatives, by-products and other hydrocarbons, asbestos, and toxic mold, in each case as regulated under Environmental Laws.

 

1.1.32.    Hotel
or Hotels: individually or collectively, as applicable, the Blacksburg Hotel and/or the Virginia Beach Hotel.

 

    	3

    	 

    

 

1.1.33.    Indemnity
Agreement: the Indemnity Agreement in the form attached hereto as Exhibit C, pursuant to which Purchaser shall indemnify
Seller for any actual losses incurred by Seller, in its capacity as guarantor or indemnitor, as applicable, under each of (i) the
Blacksburg Hotel Guaranty, (ii) the Blacksburg Hotel Indemnity, (iii) the Virginia Beach Hotel Guaranty, and (iv) the Virginia
Beach Hotel Indemnity, in each case solely to the extent that such losses are incurred with respect to obligations arising following
the Closing Date.

 

1.1.34.    Indemnified
Party: as defined in Section 7.5.5.

 

1.1.35.    Indemnifying
Party: as defined in Section 7.5.5.

 

1.1.36.    Interests:
all of Seller’s right, title and interest in and to the membership interests in, individually or collectively, as applicable,
(i) CHRI Blacksburg, and/or (ii) CHRI Virginia Beach.

 

1.1.37.    Legal
Requirement: any federal, state, local or municipal constitution, law, statute, ordinance, rule, order or regulation.

 

1.1.38.    Licenses
and Permits: as to each Hotel, all certificates of occupancy and all zoning, building, safety and health approvals and all
other licenses, permits and entitlements issued by a governmental authority and owned by the applicable Property Owner in connection
with the operation or ownership of such Hotel; provided that Licenses and Permits shall not include Liquor Licenses.

 

1.1.39.    Liquor
License: as defined in Section 5.5.

 

1.1.40.    Management
Agreement: as to each Hotel, the management agreement set forth on Schedule 1.1.40.

 

1.1.41.    Manager:
Crestline Hotels & Resorts LLC, a Delaware limited liability company, successor-in-interest to Crestline Hotels &
Resorts, Inc., a Delaware corporation.

 

1.1.42.    Net
Cash Flow: as defined in Section 9.1.1.

 

1.1.43.    Outside
Closing Date: October 1, 2014.

 

1.1.44.    Person:
a natural person or any legal or governmental entity.

 

1.1.45.    Promissory
Note: as defined in Section 2.2.2.

 

1.1.46.    Property
Owner: individually or collectively, as applicable, the Blacksburg Hotel Owner and/or the Virginia Beach Hotel Owner.

 

1.1.47.    Property
Owner Operating Agreements: individually or collectively, as applicable, the Blacksburg Hotel Owner Operating Agreement and/or
the Virginia Beach Hotel Owner Operating Agreement.

 

1.1.48.    Proration
Report: as defined in Section 9.1.3.

 

1.1.49.    Purchase
Price: as defined in Section 2.2.1.

 

    	4

    	 

    

  

1.1.50.    Purchaser:
as defined in the Preamble.

 

1.1.51.    Purchaser
Parties: collectively, Purchaser, Purchaser’s Designee and each and all of their respective past, present or future
agents, heirs, executors, administrators, conservators, successors, assigns, participants, direct and indirect parents, principals,
subsidiaries, affiliates, related companies, shareholders, interest holders, investors, members, managers, partners (including
general and limited partners), representatives, receivers, attorneys and beneficiaries, and each and all of the past, present
and future managers, officers, directors and employees of each of them (each, a “Purchaser Party”).

 

1.1.52.    Purchaser’s
Designee: as defined in Section 10.1.

 

1.1.53.    Seller:
as defined in the Preamble.

 

1.1.54.    Seller
Parties: Seller, and each and all of their respective past, present or future agents, heirs, executors, administrators, conservators,
successors, assigns, participants, direct and indirect parents, principals, subsidiaries, affiliates, related companies, shareholders,
interest holders, investors, members, managers, partners (including general and limited partners), representatives, receivers,
attorneys and beneficiaries, and each and all of the past, present and future managers, officers, directors and employees of each
of them (each, a “Seller Party”).

 

1.1.55.    Seller’s
Knowledge: as to Seller, the actual current knowledge (without investigation or the duty to investigate) of those Persons
set forth on Schedule 1.1.55. No knowledge of any other Person (including Manager and its employees) shall be imputed to
Seller.

 

1.1.56.    Survival
Date: the date that is one year after the Closing Date.

 

1.1.57.    Surviving
Obligations: as defined in Section 7.6.1.

 

1.1.58.    Tenant
Lease: as to each Hotel, any space lease, lease, license or concession agreement which provides for the use or occupancy of
space or facilities at the Hotel to which Seller or Manager is a party, including any leases or licenses for antennae and related
equipment; but excluding any booking or reservation agreement at such Hotel.

 

1.1.59.    Third-Party
Claims: as defined in Section 7.5.5.

 

1.1.60.    Transaction
Documents: collectively, this Agreement and the documents executed by Seller and Purchaser and/or Purchaser’s Designee
in connection with the transaction described in this Agreement.

 

1.1.61.    Virginia
Beach Hotel: that certain hotel commonly referred to as the Westin Virginia Beach Hotel and Conference Center, located at 4535
Commerce Street

Virginia Beach, VA 23462, and owned by Virginia Beach Hotel Owner, which is part of the condominium project commonly referred to
as Town Center Condominium 7.

 

1.1.62.    Virginia
Beach Hotel Guaranty: Guaranty of Recourse Obligations, dated December 21, 2007, by Armada/Hoffler Properties, L.L.C. and Seller
for the benefit of Virginia Beach Hotel Lender.

 

    	5

    	 

    

  

1.1.63.        Virginia
Beach Hotel Indemnity: Permanent Loan Cross Indemnity, dated December 21, 2007, among Armada/Hoffler Properties L.L.C., Armada/Hoffler
Properties II, L.L.C., Daniel A. Hoffler, Louis S. Haddad, CHRI Virginia Beach, Seller, Hampton W Company, LLC, Hampton University,
Legacy Hospitality, LLC and VB City Hotels, LLC.

 

1.1.64.        Virginia
Beach Hotel Lender: U.S. Bank National Association, successor-in-interest to Countrywide Commercial Real Estate Financing,
Inc.

 

1.1.65.        Virginia
Beach Hotel Owner: TCA Block 7 Hotel, L.L.C., a Virginia limited liability company.

 

1.1.66.    Virginia
Beach Hotel Owner Operating Agreement: Second Amended and Restated Operating Agreement of Virginia Beach Hotel Owner, dated
January 1, 2008, between VB City Hotels LLC, Armada/Hoffler Properties II, L.L.C., CHRI Virginia Beach, Hampton W Company, LLC,
Legacy Hospitality, LLC, and TCA Block 7, Inc. (as the same may be amended or modified from time to time).

 

1.1.67.        Virtual
Data Room: Seller’s virtual data room hosted by Box at (https://app.box.com/files/0/f/879279574/Crestline).

 

1.2.        Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York (without reference to conflicts of laws principles).

 

1.3.        Captions,
Numbering and Headings. Captions, numbering and headings of Articles, Sections, Schedules
and Exhibits in this Agreement are for convenience of reference only and shall not be considered in the interpretation of this
Agreement. References in this Agreement to Articles, Sections, Schedules and Exhibits shall be deemed to be references to such
Articles, Sections, Schedules and Exhibits in this Agreement unless otherwise expressly specified.

 

1.4.        Number;
Gender. Whenever required by the context, the singular shall include the plural, the neuter
gender shall include the male gender and female gender, and vice versa.

 

1.5.        Business
Day. In the event that the date for performance of any obligation or the exercise of any
right or option under this Agreement falls on other than a Business Day, then such obligation shall be performed on the next succeeding
Business Day. For purposes of this Agreement, “Business Day” shall
mean any day other than a Saturday, Sunday or any other day on which national banks in the State of New York are not open for
business. Unless otherwise specified herein, all references herein to a “day” or “days” shall refer to
calendar days and not Business Days.

 

1.6.        Severability. In
the event that one or more of the provisions of this Agreement shall be held to be illegal, invalid or unenforceable, each
such provision shall be deemed severable and the remaining provisions of this Agreement shall continue in full force and
effect, unless this construction would operate as an undue hardship on Seller or Purchaser or would constitute a substantial
deviation from the general intent of the parties as reflected in this Agreement.

 

    	6

    	 

    

  

1.7.        No
Oral Modifications or Waivers. No modification of this Agreement shall be valid or effective
unless the same is in writing and signed by Seller and Purchaser. No purported waiver of any of the provisions of this Agreement
shall be valid or effective unless the same is in writing and signed by the party against whom it is sought to be enforced.

 

1.8.        Exhibits.
All Schedules and Exhibits referenced in this Agreement are incorporated by this reference
as if fully set forth in this Agreement, and all references to this Agreement shall be deemed to include all such Schedules and
Exhibits.

 

1.9.        Integration.
This Agreement, all Schedules and Exhibits appended to this Agreement, the documents and
agreements referenced in this Agreement contain the entire understanding between Seller and Purchaser with respect to the sale
of the Interests, and are intended to be a full integration of all prior or contemporaneous agreements, conditions, understandings
or undertakings between Seller and Purchaser with respect thereto. There are no promises, agreements, conditions, undertakings,
understandings, warranties or representations, whether oral, written, express or implied, between Seller and Purchaser with respect
to the sale of the Interests other than as are expressly set forth in this Agreement, the Schedules and Exhibits appended to this
Agreement, the documents and agreements referenced in this Agreement and the Confidentiality Agreement.

 

1.10.      No
Construction Against Drafter. This Agreement has been negotiated and prepared by Seller
and Purchaser and their respective attorneys and, should any provision of this Agreement require judicial interpretation, the
court interpreting or construing such provision shall not apply the rule of construction that a document is to be construed more
strictly against one party.

 

1.11.      Including.
The term “including,” and variants thereof, shall mean “including without
limitation.”

 

ARTICLE
2. SALE OF INTERESTS

 

2.1.        Sale
and Purchase. Subject to and in accordance with the terms of this Agreement, Seller shall
sell to Purchaser, and Purchaser shall purchase from Seller, the Interests.

 

2.2.        Purchase
Price.

 

2.2.1.      The
purchase price (“Purchase Price”) for the sale and purchase of the Interests shall be Five Million and 00/100
Dollars ($5,000,000.00), subject to the debits and credits described in ARTICLE
9.

 

2.2.2.      At
the Closing, Purchaser shall pay the Purchase Price, subject to the debits and credits described in ARTICLE
9, by Purchaser’s execution of a promissory note in the form attached hereto as Exhibit B (the “Promissory
Note”).

 

    	7

    	 

    

  

2.3.        Allocation
of Purchase Price. The Purchase Price shall be allocated among the Interests
as set forth on Schedule 2.3 and each party agrees to file any federal, state and local tax returns consistent with such
allocation agreed upon between the parties. The provisions of this Section 2.3 shall survive Closing indefinitely.

 

ARTICLE
3. SELLER’S REPRESENTATIONS AND WARRANTIES

 

(A)         Seller,
hereby represents and warrants to Purchaser as follows:

 

3.1.        Good
Standing. Seller is duly organized, validly existing and in good standing under the laws
of the state of its organization, and has all requisite limited liability company power and authority to conduct the business
in which it is now engaged.

 

3.2.        Due
Authorization. The execution, delivery and performance of this Agreement by Seller and
the consummation by Seller of the transactions contemplated by this Agreement will have been duly and validly authorized by all
requisite actions of Seller. Assuming the due execution and delivery of this Agreement by Purchaser, this Agreement constitutes
the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms.

 

3.3.        No
Violations. The execution, delivery and performance of this Agreement by Seller and the
consummation by Seller of the transactions contemplated by this Agreement will not:  (i) violate any Legal Requirement
or any order of any court or governmental authority that is binding on Seller; (ii) subject to the fulfillment of the requirements
set forth in Sections 5.6, result in a breach of or default under any material contract or other agreement to which Seller is
a party, or (iii) result in a breach of or default under any provision of the organizational documents of Seller.

 

3.4.        Bankruptcy.
Seller is not the subject debtor under any federal, state or local bankruptcy or insolvency
proceeding, or any other proceeding for dissolution, liquidation or winding up of its assets.

 

3.5.        Litigation.
Except as set forth in Schedule 3.5, to Seller’s Knowledge, there are no Actions
pending before any court or governmental authority or threatened against Seller (not including Actions filed with insurance companies,
or litigation that is being defended by insurance companies), an adverse determination of which would materially adversely affect
(i) the financial condition of Seller, or (ii) Seller’s ability to enter into or perform under this Agreement.

 

3.6.        Terrorist
Organizations Lists. Seller is not acting, directly or, to Seller’s Knowledge, indirectly,
for or on behalf of any Person named by the United States Treasury Department as a Specifically Designated National and Blocked
Person, or for or on behalf of any Person designated in Executive Order 13224 as a Person who commits, threatens to commit,
or supports terrorism. Seller is not engaged in the transaction contemplated by this Agreement directly or indirectly on behalf
of, or facilitating such transaction directly or indirectly on behalf of, any such Person.

 

3.7.        Brokers.
No broker, finder or similar consultant has acted on behalf of Seller Parties in connection with this Agreement or the transaction
contemplated by this Agreement.

 

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3.8.        No
Lien. Seller owns the Interests free and clear of any security interest, lien, pledge, purchase option, charge or other encumbrance.

 

(B)        As to each
Hotel, Seller hereby represents and warrants to Purchaser as follows:

 

3.9.        Violations
of Law. Neither Seller nor, to Seller’s Knowledge, Manager or the applicable Property
Owner has received any written notice from any governmental authority alleging a violation of any Legal Requirement that has not
been corrected.

 

3.10.      Condemnation.
Neither Seller nor, to Seller’s Knowledge, Manager or the applicable Property Owner,
has received any written notice of any pending or threatened condemnation actions with respect to such Hotel.

 

3.11.      Environmental
Matters. Schedule 3.11 accurately identifies each Environmental Report of which
Seller has a copy (the “Environmental Reports”) and to Seller’s
Knowledge, Purchaser has been provided with a true, correct and complete copy of each such Environmental Report. To Seller’s
Knowledge, other than as set forth in the Environmental Reports, and other than (i) Hazardous Substances used in the ordinary
course of maintaining and cleaning such Hotel in commercially reasonable amounts, and (ii) Hazardous Substances used as fuels,
lubricants or otherwise in connection with vehicles, machinery and equipment located at such Hotel in commercially reasonable
amounts, no Hazardous Substances are present on or in such Hotel. To Seller’s Knowledge, the Hazardous Substances described
in the foregoing clauses (i) and (ii) are being used and disposed of in compliance with all Environmental Laws.

 

PURCHASER ACKNOWLEDGES THAT (1)
PURCHASER HAS RECEIVED COPIES OF THE ENVIRONMENTAL REPORTS LISTED ON SCHEDULE 3.11 WITHOUT REPRESENTATION OR WARRANTY, AND
(2) IF SELLER DELIVERS ANY ADDITIONAL ENVIRONMENTAL REPORTS TO PURCHASER, PURCHASER WILL PROMPTLY UPON RECEIPT THEREOF BE DEEMED
TO HAVE ACKNOWLEDGED IN WRITING THAT IT HAS RECEIVED SUCH REPORTS WITHOUT REPRESENTATION OR WARRANTY. SELLER SHALL HAVE NO LIABILITY
OR OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION FROM ANY ENVIRONMENTAL REPORT. SUBJECT TO ANY CONSENT PURCHASER MAY
RECEIVE FROM THE PREPARER OF ANY SUCH ENVIRONMENTAL REPORT THAT PURCHASER MAY RELY ON SUCH ENVIRONMENTAL REPORT, PURCHASER SHALL
HAVE NO CLAIMS AGAINST THE PREPARER OF ANY ENVIRONMENTAL REPORT PROVIDED BY SELLER. PURCHASER HAS CONDUCTED ITS OWN INVESTIGATION
OF THE ENVIRONMENTAL CONDITION OF THE HOTEL TO THE EXTENT PURCHASER DEEMS SUCH AN INVESTIGATION TO BE NECESSARY OR APPROPRIATE.

 

3.12.      Contracts.
Schedule 3.12 accurately identifies each Contract currently in full force and effect
at such Hotel of which Seller has a copy and to Seller’s Knowledge, Purchaser has been provided with a true, correct and
complete copy of each such Contract. To Seller’s Knowledge, there is no default or set of circumstances which but for the
passage of time would result in a default under any Contract by the applicable Property Owner or any third party.

 

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3.13.      Tenant
Leases. Schedule 3.13 accurately identifies each Tenant Lease currently in full
force and effect at such Hotel of which Seller has a copy and to Seller’s Knowledge, Purchaser has been provided with a
true, correct and complete copy of each such Tenant Lease as received by it from Manager.

 

3.14.      Employees.
Seller has no employees who are employees of such Hotel and, to Seller’s Knowledge,
neither Property Owner has any employees who are employees of the applicable Hotel.

 

3.15.      Financial
Information. Seller has provided to Purchaser a correct and complete copy of the unaudited
annual operating statement for the 2013 Fiscal Year for such Hotel as received by it from the Company or the Manager (the “Financial
Statement”). To Seller’s Knowledge, such Financial Statement was prepared by
the Manager in accordance with the accounting standards set forth in the Management Agreement and fairly present the operations
of such Hotel for the periods covered. Seller shall also provide to Purchaser financial statements of CHRI Blacksburg and CHRI
Virginia Beach that were prepared by Blacksburg Hotel Owner and Virginia Beach Hotel Owner, respectively, with corrections made
thereto by Seller.

 

3.16.      Licenses
and Permits. To Seller’s Knowledge, each Property Owner (or, to the
extent permissible and applicable, Manager on Property Owner’s behalf) owns or possess all of the licenses, permits and
entitlements required by any governmental authority for the operation and ownership of the applicable Hotel as currently conducted
and all such Licenses and Permits are unexpired and are in full force and effect. To Seller’s Knowledge, no Property Owner
or Manager has received written notice from any governmental authority that (i) the Licenses and Permits necessary for the operation
and ownership of the applicable Hotel as it is currently operated are not in full force and effect, or (ii) that there has been
any uncured violation of any such Licenses and Permits. Seller has provided to Purchaser true, correct, and complete copies of
all of the Licenses and Permits (of which Seller has a copy) issued by any governmental authority necessary to operate, maintain
and use such Hotel as it is currently operated, including Licenses and Permits relative to the handling of Hazardous Substances.

 

ARTICLE
4. PURCHASER’S REPRESENTATIONS AND WARRANTIES

 

Purchaser
hereby represents and warrants to Seller as follows:

 

4.1.        Good
Standing. Purchaser is duly organized, validly existing and in good standing under the
laws of the state of its organization, and has full power and authority to conduct the business in which it is now engaged.

 

4.2.        Due
Authorization. The execution, delivery and performance of this Agreement by Purchaser
and the consummation by Purchaser of the transactions contemplated by this Agreement have been duly and validly authorized by
all requisite actions of Purchaser and its partners, members, board of directors, board of managers, trustees or other Persons,
as applicable. Assuming the due execution and delivery of this Agreement by Seller, this Agreement constitutes the valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with its terms.

 

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4.3.        No
Violations. The execution, delivery and performance of this Agreement by Purchaser and
the consummation by Purchaser of the transactions contemplated by this Agreement will not:  (i) violate any Legal
Requirement or any order of any court or governmental authority that is binding on Purchaser; (ii) result in a breach of
or default under any contract or other agreement to which Purchaser is a party, or (iii) result in a breach of or default
under any provision of the organizational documents of Purchaser.

 

4.4.        Bankruptcy.
Purchaser is not the subject debtor under any federal, state or local bankruptcy or insolvency
proceeding, or any other proceeding for dissolution, liquidation or winding up of its assets.

 

4.5.        Litigation.
There are no Actions pending or, to Purchaser’s knowledge, threatened against Purchaser
before any court or governmental authority, an adverse determination of which would materially adversely affect (i) the financial
condition of Purchaser, or (ii) Purchaser’s ability to enter into or perform this Agreement.

 

4.6.        No
Other Relationships; Brokers. No broker, finder or similar consultant
has acted on behalf of any of the Purchaser Parties in connection with this Agreement or the transaction contemplated by this
Agreement.

 

4.7.        Terrorist
Organizations Lists. Purchaser is not acting, directly or indirectly,
for or on behalf of any Person named by the United States Treasury Department as a Specifically Designated National and Blocked
Person, or for or on behalf of any Person designated in Executive Order 13224 as a Person who commits, threatens to commit,
or supports terrorism. Purchaser is not engaged in the transaction contemplated by this Agreement directly or indirectly on behalf
of, or facilitating such transaction directly or indirectly on behalf of, any such Person.

 

ARTICLE
5. ACTIONS PENDING CLOSING

 

5.1.        Additional
Due Diligence.

 

5.1.1.      Seller
shall use commercially reasonable efforts to cooperate with Purchaser’s continued due diligence of the Interest and the Hotels;
provided, however, that Purchaser shall have no right to terminate this Agreement, nor a right of set-off or reduction of the Purchase
Price, as a result of such diligence.

 

5.1.2.      Seller
shall continue to make or cause to be made available to Purchaser for inspection and copying all books, records and files of Seller
related to the Interests and the Hotels (other than the Confidential Materials). Any inspection of such books, records and files
shall be during regular business hours and upon reasonable prior notice to Seller. Seller makes no representation or warranty with
respect to the accuracy or completeness of such books, records and files.

 

5.1.3.      Seller
shall continue to use commercially reasonable efforts to (a) obtain and provide Purchaser with any due diligence matters related
to the Hotels that Purchaser reasonably requests, and (b) otherwise facilitate communication between Purchaser and each Property
Owner (subject to the satisfaction of any requirements or conditions of Property Owner prior to granting Purchaser access to its
Hotel or any Hotel materials).

 

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5.1.4.      Upon
any termination of this Agreement, Purchaser shall promptly: (i) deliver to Seller all books, records and files (and all copies
thereof) and other information obtained by Purchaser pursuant to this Section 5.1, and (ii) destroy all memoranda, notes and
other writings prepared by Purchaser (or its representatives, agents or contractors) and containing any information described in
the foregoing clause (i).

 

5.1.5.      Purchaser’s
obligations under this Section 5.1 shall survive the Closing or termination of this Agreement indefinitely.

 

5.2.        Covenants.
Prior to the Closing, unless Purchaser consents otherwise, which consent will not be unreasonably
withheld, conditioned or delayed:

 

5.2.1.      Seller
shall not assign, sell, transfer or otherwise dispose of all or any portion of the Interests, and shall not grant a security interest,
lien, pledge, charge or other encumbrance upon all or any portion of any Interests.

 

5.2.2.      Seller
shall not cause CHRI Blacksburg or CHRI Virginia Beach to: (i) exercise any of its rights under the Property Owner Operating Agreements
(including any right to approve or disapprove any action taken by such Property Owner), or (ii) agree to amend or otherwise modify
the Property Owner Operating Agreements.

 

5.3.        Updates
to Representations. Prior to the Closing, Seller and Purchaser shall each promptly notify
the other in writing if it becomes aware of any fact or condition that is inconsistent with any of Seller’s representations
or warranties under this Agreement. Such representations and warranties shall automatically be deemed modified to reflect (a)
all information actually known to Purchaser prior to the Contract Date, and (b) the following information, which shall be deemed
to be known to Purchaser: (x) information included prior to the Contract Date in the Virtual Data Room or otherwise delivered
to Purchaser, (y) information related to any physical condition affecting any Hotel that existed prior to the Contract Date, and
(z) any matters existing as of the Contract Date.

 

5.4.        Satisfaction
of Conditions. Prior to the Closing, Seller and Purchaser shall each use good faith,
commercially reasonable efforts to satisfy the conditions to the Closing set forth in ARTICLE
6.

 

5.5.        Liquor
License. Promptly following the Contract Date, Seller shall work with
each Property Owner, with any reasonably necessary out-of-pocket expenses being shared equally between the parties, to prepare
and deliver all filings or notices due, or consents required under any Legal Requirements for the continued sale of alcoholic
beverages at each Hotel from and after the Closing Date consistent with the practices and procedures in effect as of the Contract
Date (collectively, “Liquor Licenses”).
Seller shall keep Purchaser informed of the status of such items and shall promptly respond to Purchaser’s inquiries regarding
the status of the same. Purchaser shall provide Seller with all information and materials as may be required in connection with
the foregoing.

 

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5.6.         Consent
of Franchisor. As to each Hotel, Seller, with any reasonably necessary out-of-pocket expenses being shared equally between
the parties, shall use commercially reasonable efforts to work with the Property Owners to make all necessary applications for,
and diligently pursue, the consent of each Franchisor to the transactions contemplated by this Agreement (each, a “Franchisor
Consent”). Purchaser shall provide Seller with all information and materials as may be required by each Franchisor.
Seller shall keep Purchaser informed of the status of such applications, and shall promptly respond to Purchaser’s inquiries
regarding the status of the same.

 

5.7.         Schedules.Within
ten (10) days of the date hereof, Seller and Purchaser shall agree on Schedules 1.1.90, 2.3, 3.5, 3.9, 3.10 and 3.16 to this Agreement,
following which Seller and Purchaser shall enter into an amendment to this Agreement attaching the same.

 

ARTICLE
6. CONDITIONS TO CLOSING

 

6.1.         Purchaser’s
Conditions to Closing. The obligation of Purchaser to consummate the Closing shall be subject
to the satisfaction of each of the following conditions, any or all of which may be waived in whole or in part by Purchaser:

 

6.1.1.    Each
of Seller’s representations and warranties set forth in this Agreement (as deemed to have been modified by the second sentence
of Section 5.3) shall be true and correct in all material respects as of the Closing Date (provided that if any representation
and warranty speaks as of a particular date or period, it will continue to speak as of such date or period). An inaccuracy in Seller’s
representations and warranties shall be deemed to be material if it (a) materially adversely affects Seller’s ability to
proceed to the Closing under this Agreement, or (b) requires a modification to Seller’s representations and warranties that,
in the aggregate with all such modifications or updates, has a material adverse effect on the value of the Interests.

 

6.1.2.    Seller
shall have performed all of its material obligations under this Agreement required to have been performed at or prior to the Closing.

 

6.1.3.    At
or prior to Closing, each Franchisor shall have consented to the transactions contemplated by this Agreement and any conditions
to such consent have been satisfied.

 

6.2.         Failure
of Purchaser’s Condition. In the event of the failure of any condition set forth in
Section 6.1, Purchaser, at its sole election, may (i) terminate this Agreement, (ii) waive the condition and proceed
to the Closing, or (iii) extend the Closing Date for such additional period of time (not to exceed the Outside Closing Date)
as may be reasonably required to allow such condition to be satisfied. Nothing set forth in this Section 6.2 shall affect Purchaser’s
rights or remedies under Section 8.2 with respect to any breach of this Agreement by Seller.

 

6.3.         Seller’s
Conditions to Closing. The obligation of Seller to consummate the Closing shall be subject
to the satisfaction of each of the following conditions, any or all of which may be waived in whole or in part by Seller:

 

6.3.1.    Each
of Purchaser’s representations and warranties set forth in this Agreement shall be true and correct in all material respects
as of the Closing Date.

 

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6.3.2.    Each
of Purchaser’s representations and warranties set forth in this Agreement shall be true and correct in all material respects
as if made by Purchaser’s Designee as of the Closing Date.

 

6.3.3.    Purchaser
shall have performed all of its material obligations under this Agreement required to have been performed at or prior to the Closing.

 

6.3.4.    Closing
shall have occurred or occur simultaneously with the Closing under the Asset Purchase and Sale Agreement.

 

6.3.5.    At
or prior to Closing, each Franchisor shall have consented to the transactions contemplated by this Agreement and any conditions
to such consent have been satisfied.

 

6.4.        Failure
of Seller’s Condition. In the event of the failure of any condition precedent set
forth in Section 6.3, Seller, at its sole election, may (i) terminate this Agreement, (ii) waive the condition and proceed
to the Closing, or (iii) extend the Closing Date for such additional period of time (not to exceed the Outside Closing Date)
as may be reasonably required to allow Purchaser to satisfy such condition. Nothing set forth in this Section 6.4 shall affect
Seller’s rights or remedies under Section 8.1 with respect to any breach of this Agreement by Purchaser.

 

ARTICLE
7. CLOSING

 

7.1.        Closing.

 

7.1.1.    The
Closing shall be held on the earlier of (x) the date mutually agreed to by the parties, or (y) the Outside Closing Date. Notwithstanding
anything in this Agreement to the contrary, including, but not limited to, the requirement in Section
6.3.4., the Closing may be bifurcated in accordance with Section 7.1.1 of the Asset Purchase and Sale Agreement.

 

7.1.2.    The
Closing shall be conducted through an escrow with Escrow Agent, and Seller and Purchaser shall execute (or cause their counsel
to execute) such additional instructions to Escrow Agent as may be required in connection therewith. The parties shall deposit
documents and funds with Escrow Agent such that the Closing is consummated no later than 4:00 p.m. Eastern Time on the Closing
Date.

 

7.2.        Seller’s
Closing Deliveries. At or prior to the Closing (except as otherwise expressly provided below),
Seller shall deliver or cause to be delivered to Escrow Agent the following:

 

7.2.1.    The
Assignment and Assumption of Interests, duly executed by Seller and dated as of the Closing Date.

 

7.2.2.    The
Indemnity Agreement, duly executed by Seller and dated as of the Closing Date.

 

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7.2.3.    A
certificate, duly executed by Seller, confirming that its representations and warranties set forth in this Agreement are correct
as if made on the Closing Date (or noting any exceptions and as the same are deemed to have been modified by the second sentence
of Section 5.3).

 

7.2.4.    For
Seller, a secretary’s certificate, incumbency certificate, resolutions, organizational documents and such other documents
and instruments as are customary and as may be reasonably requested by Purchaser or Escrow Agent to effectuate the transactions
contemplated by this Agreement.

 

7.3.         Purchaser’s
Closing Deliveries. At or prior to the Closing, Purchaser shall deliver to Escrow Agent
the following:

 

7.3.1.    The
Assignment and Assumption of Interests, duly executed by Purchaser (or Purchaser’s Designee) and dated as of the Closing
Date.

 

7.3.2.    The
Indemnity Agreement, duly executed by Purchaser (or Purchaser’s Designee) and dated as of the Closing Date.

 

7.3.3.    A
certificate, duly executed by Purchaser, confirming that its representations and warranties set forth in this Agreement are
correct as if made on the Closing Date (or noting any exceptions)

 

7.3.4.    A
certificate from Purchaser’s Designee, duly executed by Purchaser’s Designee, confirming that Purchaser’s
representations and warranties set forth in the Agreement are correct as if made by Purchaser’s Designee on the Closing Date
(or noting any exceptions).

 

7.3.5.    The
Promissory Note, duly executed and acknowledged by Purchaser and dated as of the Closing Date.

 

7.3.6.    Copies
of Purchaser’s and Purchaser’s Designee’s secretary’s certificate, incumbency certificate, resolutions,
organizational documents and such other documents and instruments as are customary and as may be reasonably requested by Seller
or Escrow Agent to effectuate the transactions contemplated by this Agreement.

 

7.4.         Closing
and Other Costs.

 

7.4.1.    Seller
and Purchaser shall each bear its own counsel’s fees and expenses in connection with the transactions described in this Agreement.

 

7.4.2.    Purchaser
shall pay all costs of Purchaser’s due diligence investigations of the Interests and the Hotels.

 

7.4.3.    All
other costs and expenses incident to this transaction and the Closing hereof and not specifically set forth in this Section 7.4
or elsewhere in this Agreement shall be paid by Seller and Purchaser in a manner consistent with custom for similar transactions
in the city where the Hotel is located.

 

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7.4.4.    The
provisions of this Section 7.4 shall survive the Closing indefinitely.

 

7.5.        Indemnification.

 

7.5.1.    From
and after the Closing, Seller shall indemnify the Purchaser Parties, and shall hold Purchaser Parties harmless from and against,
any and all Damages paid or incurred by Purchaser Parties due to (i) any breach of any representation or warranty made by
Seller in this Agreement or any other Transaction Document executed by Seller, and (ii) any breach of any covenant to be performed
from and after the Closing by Seller pursuant to this Agreement or any other Transaction Document executed by Seller. Notwithstanding
anything to the contrary in this Agreement, the obligations of Seller under this Section 7.5.1 shall not extend to any special,
incidental, consequential or punitive damages, lost profits or business interruption.

 

7.5.2.    Subject
to any express provisions of this Agreement to the contrary, from and after the Closing, Purchaser shall indemnify the Seller Parties,
and shall hold Seller Parties harmless from and against, any and all damages paid or incurred by Seller Parties due to (i) any
breach of any representation or warranty made by Purchaser or Purchaser’s Designee in this Agreement or any other Transaction
Document executed by Purchaser or Purchaser’s Designee, (ii) any breach of any covenant to be performed from and after
the Closing by Purchaser or Purchaser’s Designee pursuant to this Agreement or any other Transaction Document executed by
Purchaser or Purchaser’s Designee, and (iii) any obligations with respect to which Purchaser receives a credit at the
Closing, to the extent of such credit.

 

7.5.3.    Notwithstanding
anything to the contrary in this Agreement or any other provision of any Transaction Document to the contrary, Seller shall have
no obligation to indemnify, defend or hold harmless the Purchaser Parties with respect to (i) any Damages arising out of the
alleged presence at, or release or disposal from a Hotel of any Hazardous Substance, or the alleged violation of any Environmental
Laws, (ii) any Damages arising out of a violation of any Legal Requirement with respect to the physical condition, maintenance
or improvement of a Hotel (including zoning and building codes and the Americans with Disabilities Act), or (iii) any Damages
arising out of the state of the physical condition, maintenance or improvement of a Hotel, except (in the case of this clause (iii) only)
any Damages for the death of or injury to third parties, or damage to property other than such Hotel occurring prior to the Closing
Date.

 

7.5.4.    Notwithstanding
anything to the contrary in this Agreement, the aggregate liability of Seller under Section 7.5.1 shall not exceed an amount
equal to five percent (5%) of the Purchase Price except for liability based upon actual fraud on the part of Seller. Further notwithstanding
anything to the contrary in this Agreement, no Seller shall have any liability to Purchaser Parties under Section 7.5.1, except
to the extent that the aggregate of all Damages paid or incurred by Purchaser Parties (and but for this sentence would be paid
by all Seller, in the aggregate, pursuant to Section 7.5.1) as described in Section 7.5.1 exceeds an amount equal to $50,000.00,
and where the aggregate of all Damages paid or incurred by Purchaser Parties exceeds an amount equal to $50,000.00, Seller shall
pay only the Damages in excess of $50,000.00).

 

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7.5.5.    A
party entitled to indemnification under this Agreement (an “Indemnified Party”) shall promptly notify the party
that is required to provide such indemnification (the “Indemnifying Party”) in writing of any Claim which may
give rise to the right to indemnification hereunder; provided, however, that failure to timely give the notice provided in this
Section 7.5.5 shall not release, waive or otherwise affect the Indemnifying Party’s obligations under this Section 7.5.5
with respect thereto, except to the extent that the Indemnifying Party is prejudiced as a result of such failure.  The Indemnified
Party shall not admit any liability with respect to, or settle, compromise or discharge any Third-Party Claim covered by this Section
7.5.5 without the prior written consent (which shall not be unreasonably withheld, delayed or conditioned) of the Indemnifying
Party.  The Indemnifying Party shall have the right, with the consent of the Indemnified Party (which shall not be unreasonably
withheld, delayed or conditioned), to settle any Claim giving rise to indemnity hereunder resulting from or arising out of any
Claim or Action by a Person other than the Indemnified Party (a “Third-Party Claim”) which is susceptible to
being settled, provided that the Indemnified Party shall have no obligation of any kind to consent to any settlement of such Third-Party
Claim unless such settlement (a) is for money damages only, the full amount of which shall be paid by the Indemnifying Party, (b)
includes, as a condition thereof, an express, unconditional release of the Indemnified Party from any liabilities for Damages or
other obligations with respect to such Third-Party Claim, and (c) would not reasonably be expected to have an adverse impact on
the Indemnified Parties.  In connection with a Third-Party Claim, the Indemnifying Party may, at its sole cost and expense,
upon written notice to the Indemnified Party received by the Indemnified Party within ten (10) calendar days after receipt of notice
of such Third-Party Claim by the Indemnifying Party, assume the defense of any such Third-Party Claim or Action with counsel reasonably
acceptable to the Indemnified Party.  Notwithstanding the foregoing, the Indemnifying Party shall not have the right to assume
control of such defense, and shall pay the fees and expenses of counsel retained by the Indemnified Party, if such Third-Party
Claim which the Indemnifying Party seeks to assume control (i) seeks non-monetary relief, (ii) involves criminal or quasi-criminal
allegations, (iii) involves a Claim which, if adversely determined, could be reasonably expected to establish a precedent,
custom or practice adverse to the continuing business interests or prospects of the Indemnified Party, or (iv) involves a Claim
that, in the good faith judgment of the Indemnified Party, the Indemnifying Party has failed or is failing to prosecute or defend
vigorously or that creates a conflict for the Indemnifying Party.  Other than as provided in the immediately preceding sentence,
after assumption of the defense of any Claim as aforesaid, the Indemnifying Party shall not be liable to the Indemnified Party
for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Party in connection with
the defense thereof.  The Indemnified Party shall be entitled to participate in (but not control) the defense of any such
Action with its own counsel and at its own expense (except as otherwise provided in this Section 7.5.5), and shall be entitled
to any and all information and documentation relating thereto.  If the Indemnifying Party does not assume the defense of any
such Claim or Action resulting therefrom in accordance with the terms hereof or fails to pursue such defense with diligence, the
Indemnified Party may, at the expense of the Indemnifying Party and upon prior written notice to the Indemnifying Party (with reasonable
opportunity for the Indemnifying Party to assume such defense, subject to the terms of this Section 7.5.5), defend against such
Claim or Action in such manner as it reasonably may deem appropriate.  The Indemnified Party will cooperate reasonably with
the Indemnifying Party in their respective efforts to conduct or resolve such matters, including by making available to the Indemnifying
Party relevant documents and witnesses.  The Indemnified Party and the Indemnifying Party shall keep each other informed of
all settlement negotiations with third parties and of the progress of any litigation with third parties. The Indemnified Party
and the Indemnifying Party shall permit each other reasonable access to books and records and shall otherwise cooperate with all
reasonable requests of each other in connection with any indemnifiable matter resulting from a Claim by a third Person. Notwithstanding
the foregoing, the parties shall have no obligation to share information or documents that are subject to applicable privileges
unless counsel to the disclosing party is satisfied that disclosure can be made in such a manner as to preserve such privileges.

 

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7.5.6.    From
and after the Closing, except as otherwise expressly set forth in any Transaction Document executed by the party to be charged,
the indemnification provisions in this Section 7.5 shall be the exclusive remedies of Seller and Purchaser in connection with any
of the matters described in this Section 7.5, the transactions described in this Agreement and in the other Transaction Documents
and/or relating to the Interests (or any Hotel), and each party hereby waives and releases any other rights or remedies it may
have under applicable law or at equity in connection therewith. This Section 7.5.6 shall survive the Closing indefinitely.

 

7.6.     
  Survival and other Limitations.

 

7.6.1.    The
Closing shall be deemed a full satisfaction by Seller and Purchaser of all of their respective obligations and covenants under
this Agreement and under the other Transaction Documents (other than the Surviving Obligations). Except for the Surviving Obligations,
all other obligations of Seller and Purchaser under this Agreement shall be deemed to terminate immediately upon the Closing. As
used herein, “Surviving Obligations” shall mean the representations and warranties made by Purchaser and Seller
under this Agreement and under the other Transaction Documents executed by them and those other covenants, duties and obligations
(including any indemnity obligations) of Seller or Purchaser under this Agreement and under the other Transaction Documents executed
by them that are expressly stated herein or therein to survive the Closing.

 

7.6.2.    With
respect the Surviving Obligations, and in all events subject to the provisions of Section 7.5,

 

7.6.2.1.          all
representations and warranties made by Seller and Purchaser set forth in this Agreement and/or in any of the other Transaction
Documents shall survive the Closing until the Survival Date, and any Action (including any claim or demand for indemnification)
on any such representation or warranty must be instituted on or before the Survival Date.

 

7.6.2.2.          all
other Surviving Obligations that are expressly stated to survive the Closing indefinitely or for a specific period of time beyond
the Closing shall survive indefinitely or for such other specified time period, as applicable, and to the extent any such other
Surviving Obligation is stated expressly to survive the Closing for a specified period of time (i.e., other than indefinitely),
any Action (including any claim or demand for indemnification) thereon must be instituted on or before the expiration of the stated
survival period therefor; provided, however, that notwithstanding anything in this Agreement or the other Transaction Documents
to the contrary, any Action (including any claim or demand for indemnification) that is based upon the obligations of Seller under
clause (ii) of Section 7.5.1 must be instituted on or before the Survival Date, and Purchaser waives and releases any right to
bring any Action (including any claim or demand for indemnification) thereunder after such date.

 

    	18

    	 

    

 

7.6.3.    Notwithstanding
any other provision of this Agreement, if at or prior to the Closing Purchaser obtains actual knowledge (including by way of the
certificate delivered by Seller at the Closing pursuant to Section 7.2.3) that any representation or warranty of Seller under this
Agreement (as the same is deemed to have been modified by the second sentence of Section 5.3) is inaccurate in any respect, but
nonetheless proceeds to the Closing, Purchaser shall be deemed to have waived any right to make a Claim arising out of such inaccuracy,
and Seller’s representations and warranties set forth in this Agreement shall be deemed to have been modified to reflect
all such matters actually known to Purchaser. Notwithstanding anything to the contrary in this Agreement, in no event shall Seller
be liable to Purchaser for any Damages, or be deemed to be in default hereunder by reason of any breach of a representation or
warranty which results from any change that (a) occurs between the Effective Date and the Closing, and (b) is expressly permitted
under the terms of this Agreement or is beyond the reasonable control of Seller to prevent. The occurrence of a change in a representation
and warranty may, however, result in the failure of the condition set forth in Section 6.1.1, subject to the terms thereof.

  

ARTICLE
8. DEFAULT, REMEDIES

 

8.1.         Purchaser’s
Default. If Purchaser defaults in its obligation to proceed to the Closing in accordance
with this Agreement, or if any condition set forth in Section 6.3.1, 6.3.2 6.3.3 or 6.3.4 is not satisfied and Seller elects not
to proceed to the Closing, and in any such default is not cured and/or such condition is not satisfied within five (5) days after
Seller has given Purchaser written notice of the same, then Seller, as its sole and exclusive remedy, shall have the right to
exercise all rights and remedies available to it or its affiliates under that certain Amended and Restated Limited Liability Company
Agreement of Crestline Hotels & Resorts, LLC, dated August 31, 2013 (as the same may be amended or otherwise modified from
time to time).

 

8.2.         Seller’s
Default.

 

8.2.1.     Except
as provided in Section 8.2.2 below, if Seller defaults in its obligation to proceed to the Closing in accordance with this Agreement,
or if any condition set forth in Sections 6.1.1 or 6.1.2 is not satisfied and Purchaser elects not to proceed to the Closing, and
if such default is not cured and/or such condition is not satisfied within five (5) days after Purchaser has given Seller written
notice of the same, then Purchaser shall be entitled, as its sole remedy, to recover from Seller, Purchaser’s actual, verifiable
out-of-pocket due diligence costs incurred in connection with the transaction contemplated by this Agreement, provided that, as
to each Interest, in no event shall the amount of such out-of-pocket costs (including reasonable attorney’s fees) exceed
in the aggregate Fifty Thousand Dollars ($50,000). Upon receipt of the foregoing, this Agreement shall terminate and neither party
shall have any further obligations or liabilities to the other party under this Agreement, except for obligations that expressly
survive termination of this Agreement.

 

    	19

    	 

    

 

8.2.2.     Notwithstanding
the provisions of Section 8.2.1, if (a) Seller shall willfully and intentionally refuse or fail to convey the Interests as
provided in this Agreement for any reason other than any provision of this Agreement that (i) permits Seller to terminate
this Agreement, (ii) relieves Seller of the obligation to convey the Interests or (iii) conditions Seller’s obligation
to convey the Interests and such condition has not been satisfied, and (b) Purchaser has (i) waived all conditions to Closing
for the benefit of Purchaser under this Agreement (other than the conditions set forth in Sections 6.1.1 or 6.1.2), (ii) has
delivered to Escrow Agent the documents, instruments and other items required to be delivered by Purchaser at the Closing, together
with an unconditional written instruction to proceed to the Closing, and (iii) Seller thereafter fails or refuses to deliver
to Escrow Agent within three (3) Business Days thereafter the documents and instruments required to be delivered by Seller at the
Closing, then Purchaser may, in lieu of exercising the remedy provided for in Section 8.2.1 (but not in addition thereto), commence
appropriate legal proceedings seeking to enforce Seller’s obligation to convey the Interests through specific performance,
provided that no such proceeding for specific performance shall require Seller to do any of the following (unless otherwise
expressly required of Seller by this Agreement) secure any permit, approval, consent or other agreement or instrument from any
third party not affiliated with Seller with respect to the Interests or a Hotel or Seller’s conveyance of such Interests;
and, provided further, that the remedy provided for in this Section 8.2.2 shall be available to Purchaser only if
Purchaser commences such proceeding within not more than thirty (30) calendar days after the later of (x) the expiration of the
three (3) Business Day period referred to above and (y) the date of the alleged act upon which Purchaser’s proceeding is
predicated becomes known to Purchaser.

 

8.2.3.    Notwithstanding
anything to the contrary contained herein, Purchaser hereby waives any right to recover Damages (whether actual, consequential,
punitive or other), or, except as expressly provided in Section 8.2.2, to seek specific performance or other equitable relief,
as a result of any breach or default by Seller under this Agreement, except for the indemnified matters described in Section 7.5.1
following the Closing.

 

ARTICLE
9. PRORATIONS

 

9.1.          Prorations
.

 

9.1.1.    Prior
to Closing, Seller shall not cause or permit either Company to make a distribution to Seller.

 

9.1.2.    Any
distribution (each, a “Distribution”) of Net Cash Flow (as defined in the applicable Property Owner Operating
Agreement) (“Net Cash Flow”) to a Company for the operating year during which the Closing occurs (the “Closing
Year”), regardless of when made, with respect to the period prior to the Apportionment Time shall be for the account
of Seller and with respect to the period after the Apportionment Time shall be for the account of Purchaser. Any distribution of
Net Cash Flow to a Company for (x) an operating year prior to the Closing Year shall be for the account of Seller, and (y) an operating
year after the Closing Year shall be for the account of Purchaser. For the avoidance of doubt, distributions of amounts other than
Distributions of Net Cash Flow shall be retained by the Companies for the account of Purchaser, and shall not be subject to proration.

 

    	20

    	 

    

  

9.1.3.    Within
one (1) Business Day following the date on which each Company actually receives a Distribution of Net Cash Flow for the Closing
Year, Purchaser shall prepare and issue to Seller a report showing the amount of such Distribution and the appropriate proration
thereof ( the “Proration Report”). The Parties shall come to a final determination of the accuracy of the Proration
Report within five (5) days after the issuance of the Proration Report. Within two (2) Business Days after such final determination,
Purchaser shall pay to Seller its share of such Distribution in immediately available funds.

 

9.2.        Interest
If Purchaser shall fail to pay any amount due by it pursuant to this ARTICLE 9 by the date the same is due and payable, interest
shall accrue on the unpaid portion at the rate of 10% per annum until paid in full.

 

9.3.        Survival.
This ARTICLE 9 shall survive the Closing until the Survival Date.

 

ARTICLE
10. MISCELLANEOUS

 

10.1.      Assignment.
Neither Seller nor Purchaser shall assign this Agreement without the consent of the other.
If Purchaser desires to assign the right to receive any Interests at the Closing to another Person (“Purchaser’s
Designee”), Purchaser shall give notice to Seller showing the anticipated ownership
structure of Purchaser and Purchaser’s Designee as of the Closing Date, together with such other information as Seller may
reasonably request. No such assignment shall delay or otherwise adversely affect the Closing. Upon any such assignment, Purchaser’s
Designee shall be deemed to have assumed for the benefit of Seller all obligations of Purchaser under this Agreement, but such
assignment shall not relieve Purchaser of its obligations under this Agreement, which obligations shall remain the joint and several
obligations of Purchaser. Seller may, in its sole and absolute discretion, pursue any Action against, or seek to enforce or demand
performance from Purchaser or Purchaser’s Designee, in respect to any Transaction Document, without prejudice to its rights
thereafter to pursue such Action or demand against Purchaser or Purchaser’s Designee, as the case may be.

 

10.2.      Notices.
Notices and other communications required or permitted under this Agreement shall be in
writing and delivered by hand against receipt or sent by recognized overnight delivery service or by facsimile. All notices shall
be addressed as follows:

 

	
        If to Seller:

         

        Simon Pedro Barceló

        C/. José Rover Motta, 27

        07006 Palma de Mallorca

        Spain

        Phone: 011 34 (971) 771 700

        Fax: 011 34 (971) 466 720

        

        
	
        with a copy to:

         

        Holland & Knight LLP

        1600 Tysons Boulevard

        Suite 700

        Tysons Corner, Virginia 22102

        Attn: William J. Mutryn

        Phone: (703) 720-8069

        Fax: (703) 720-8610

 

    	21

    	 

    

 

	
        If to Purchaser:

         

        American Realty Capital Hospitality
        Trust, Inc.

        405 Park Avenue, 15th Floor

        New York, NY 10022

        Tel. No.: 212.415.6505

        Fax No.: 857.207.3397

        Attention: Jon Mehlman

        Tel. No.: (646) 626-8857

        Fax No.: (646) 861-7784
	
        with a copy to:

         

        Jesse Galloway

        c/o AR Capital, LLC

        405 Park Avenue, 15th Floor

        New York, NY 10022

        Tel. No.: (212) 415-6516

        Fax No.: (646) 861-7751

         

	
         

        If to Escrow Agent:

         

        Stewart Title Guaranty

        5935 Carnegie Blvd., Suite 301

        Charlotte, NC 28209

        Attention: Regina L. Fiegel

        Tel. No.: (704) 401-2010

        Fax No.: (704)
401-2039 
	 

 

or to such other addresses as
may be designated by a proper notice. Notices shall be deemed to be effective upon receipt (or refusal thereof) if personally delivered
or sent by recognized overnight delivery service, or upon electronically verified transmission, if such delivery is by facsimile.
Notices may be given on behalf of a party by such party’s legal counsel.

 

10.3.      Reserved.

 

10.4.      Waiver
of Jury Trial; Jurisdiction. Seller
and Purchaser each hereby waives any right to jury trial in the event any party files an action relating to this Agreement or
to the transactions or obligations contemplated by this Agreement. Any action, suit or proceeding arising out of this Agreement
or the transactions contemplated by this Agreement shall be brought exclusively in any United States District Court sitting in
New York, New York, and Seller and Purchaser agree that such courts are the most convenient forum for resolution of any such action
and further agree to submit to the jurisdiction of such courts and waive any right to object to venue in such courts. 

 

Seller’s
Initials: __________Purchaser’s Initials: __________

 

    	22

    	 

    

 

10.5.      Counterparts;
Electronic Signatures and Effectiveness. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute a single binding
instrument. In order to expedite the execution and delivery of this Agreement by the parties hereto, signatures may transmitted
via facsimile or other electronic means may be used in place of original signatures on this Agreement. Each of the parties hereto
intend to be, and hereby are, bound by any signatures delivered via facsimile or other electronically transmitted means, and are
aware that the other party will rely on any such facsimile or electronically transmitted signatures, and hereby waive any defenses
to the enforcement of the terms of this Agreement based on the form of signature. This Section 10.5 shall survive the Closing
indefinitely.

 

10.6.      Brokerage.
Purchaser and Seller each shall indemnify and hold the other harmless from Claims made by
or Damages owing to any broker, finder or similar consultant claiming through it for a commission, fee or compensation in connection
with this Agreement or the transaction contemplated by this Agreement. The indemnification obligations set forth in this Section 10.6
shall survive the Closing or any termination of this Agreement indefinitely.

 

10.7.      No
Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any third
party benefit on any broker, finder or similar consultant, or any other Person not a party hereto with respect to this Agreement
or the transaction described herein. This Section 10.7 shall survive the Closing or any termination of this Agreement indefinitely.

 

10.8.      Confidentiality.
Purchaser and Seller shall each maintain as confidential any and all information and material
obtained about the other which is furnished to it by the other in connection with this Agreement, and such obligation shall survive
any termination of this Agreement and shall survive the Closing indefinitely. Purchaser and Seller shall each maintain as confidential
the terms of this Agreement and such obligation shall survive the Closing and any termination of this Agreement indefinitely,
except such obligation shall terminate at the Closing as to the Purchase Price and Closing Date (provided that the foregoing confidentiality
requirement shall not limit either party’s ability to utilize a sanitized version of any Transaction Document as a form
agreement). Purchaser shall maintain as confidential any and all information and material obtained by it concerning the Interests
or any Hotel, and (a) with respect to Confidential Materials, such obligation shall survive the Closing and any termination of
this Agreement indefinitely and (b) with respect to all other information and material, such obligation shall terminate at the
Closing or, if the Closing does not occur, shall survive any termination of this Agreement indefinitely. Confidential information
shall not include information and material which (i) becomes generally available to the public other than as a result of
a disclosure prohibited by this Section 10.8, (ii) is known to Purchaser or Seller, as the case may be, on a non-confidential
basis, prior to its receipt of such information and material from the other, or (iii) becomes available to Purchaser or Seller,
as the case may be, on a non-confidential basis from a source other than the other which is not prohibited from disclosing the
same. Notwithstanding the foregoing, (A) each of Purchaser and Seller may disclose confidential information to its employees,
agents or advisors, to potential investors or lenders, and to other third parties (to the extent such disclosure is required in
order to consummate the transactions described in this Agreement), in each case on a need-to-know basis after the recipients of
the information have been informed of the confidential nature of such information and directed not to disclose such information
except in accordance with this Section 10.8, (B) each of Purchaser and Seller may disclose confidential information
to the extent required by any Legal Requirement or the rules of any applicable securities market or exchange, and (C) Purchaser
and Seller, following prior notice to and consultation with the other, may disclose the transaction contemplated by this Agreement
to the extent necessary to obtain consents or approvals contemplated by this Agreement.

 

    	23

    	 

    

  

10.9.     Public
Announcements. Neither Seller nor Purchaser shall make any public statement or issue any
press release prior to the Closing with respect to this Agreement or the transactions contemplated by this Agreement without the
prior written consent of the other party, except as otherwise required by applicable Legal Requirements. If either party determines
that applicable Legal Requirements require disclosure of this Agreement, any other Transaction Document or the transactions contemplated
hereby or thereby, then, not less than twenty-four (24) hours prior to such disclosure, such party shall notify and provide the
other party an opportunity to comment on the disclosing party’s form of press release, securities filing or other written
disclosure.

 

10.10.   Recordation.
Neither Seller nor Purchaser shall record this Agreement or any notice of this Agreement
in the land records of any jurisdiction.

 

10.11.   Time
of Essence. Time is of the essence with respect to all obligations of Seller and Purchaser
under this Agreement.

 

10.12.   Attorneys’
Fees. If either Purchaser or Seller shall employ an attorney to enforce its rights pursuant
to this Agreement or any of the documents and agreements delivered at the Closing, then, in addition to the other amounts and
remedies to which the prevailing party may be entitled pursuant to the other provisions of this Agreement, the prevailing party
shall be reimbursed by the non-prevailing party for reasonable attorneys’ and experts’ fees and expenses including
the costs of any litigation and appeal. This Section 10.12 shall survive the Closing and any termination of this Agreement indefinitely.

 

10.13.   No
Offer. Submission of this Agreement to Purchaser does not constitute an offer to sell. This
Agreement shall become effective only upon execution and delivery thereof by Seller and Purchaser.

 

10.14.   Rights
under LLC Agreement. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall limit, diminish
or other restrict the rights of Seller or its affiliates under that certain Amended and Restated Limited Liability Company Agreement
of Crestline Hotels & Resorts, LLC, dated August 31, 2013 (as the same may be amended or otherwise modified from time to time).

  

[Signatures
on following page]

 

    	24

    	 

    

 

IN WITNESS
WHEREOF, Seller and Purchaser have caused this Agreement to be executed as of the Contract Date:

 

	 	SELLER:
	 	 
	 	Barceló Crestline Corporation
	 	 	 
	 	By:	/s/ Vicente Fenollar Molina
	 	Name: Vicente Fenollar Molina
	 	Its: Authorized Signatory
	 	 	 
	 	PURCHASER:
	 	 
	 	ARC Hospitality TRS Holding, LLC
	 	 
	 	By:	American Realty Capital Hospitality Operating Partnership, L.P., a Delaware limited partnership, its sole member
	 	 	 
	 	By:  	/s/ Jesse C. Galloway
	 	Name: 	Jesse C. Galloway
	 	Title:  	Authorized Signatory

 

Signature Page

 

    	 

    	 

    

 

exhibit
A

 

Form of Assignment
and Assumption of Interests

 

ASSIGNMENT AND
ASSUMPTION OF MEMBERSHIP INTEREST

 

THIS ASSIGNMENT
AND ASSUMPTION OF MEMBERSHIP INTEREST (“Agreement”) is made and entered into, effective for all purposes, as of ________
___, 201_ (the “Effective Date”), by and between BARCELÓ CRESTLINE CORPORATION, a Maryland corporation (“Assignor”),
and [__________________, a ____________________] (“Assignee”).

  

RECITALS:

 

A.         Assignor
is the owner of a One Hundred Percent (100%) membership interest in each of (i) CHRI Virginia Beach Hotel (A/H) Minority Holding,
LLC, a Delaware limited liability company, and (ii) CHRI Blacksburg Hotel (A/H) Minority Holding, LLC, a Delaware limited liability
company (collectively, the “Interests”).

 

B.         Assignor
desires to assign, transfer and convey to Assignee, and Assignee desires to assume, from Assignor, all of Assignor’s right,
title and interest in, to and under the Interests.

 

NOW, THEREFORE,
in consideration of the foregoing, and of the mutual covenants hereinafter set forth, and of other good and valuable consideration,
the receipt, adequacy and sufficiency of which hereby are acknowledged, Assignor and Assignee, intending to be legally bound, hereby
agree as follows:

 

1.          Incorporation
of Recitals. The foregoing Recitals hereby are incorporated into this Agreement by this reference as if the same were set forth
in full below.

 

2.          Agreement
and Assumption of Interests.

 

a.           Assignor
hereby assigns, transfers and conveys all of Assignor’s right, title and interest in, to and under the Interests to Assignee.

 

b.           Assignee
hereby accepts the Interests and assumes all obligations and duties of Assignor with respect to the Interests from and after the
Effective Date.

 

3.          Indemnity.

 

a.           Assignor
hereby indemnifies, agrees to defend, and holds Assignee harmless from and against all claims, demands, losses, damages, expenses,
and costs including, but not limited to, reasonable attorneys’ fees and expenses actually incurred, arising out of or in
connection with Assignor’s failure, prior to the Effective Date, to observe, perform, and discharge all covenants, duties,
obligations, liabilities, and responsibilities of Assignor under or with respect to the Interests to be observed, performed or
discharged or which relate or accrue with respect to the period prior to Effective Date.

 

    	Exhibit A-1

    	 

    

 

b.           Assignee
hereby indemnifies, agrees to defend, and holds Assignor harmless from and against all claims, demands, losses, damages, expenses,
and costs including, but not limited to, reasonable attorneys’ fees and expenses actually incurred, arising out of or in
connection with Assignee’s failure, on and after the Effective Date, to observe, perform, and discharge all covenants, duties,
obligations, liabilities, and responsibilities of Assignor and/or Assignee (if any) under or with respect to the Interests to be
observed, performed, or discharged, or which relate or accrue with respect to the period, on or after, but not before, the Effective
Date.

 

4.          Further
Assurances. Promptly upon request of the other party, Assignor and Assignee shall execute and deliver to the other such further
assurances and take such further actions as may be reasonably required or appropriate to perfect the assignment and assumption
of the Interests and otherwise carry out the intent and purpose of this Agreement, provided that neither party shall incur any
additional cost, expense or obligation in connection with any act that the other party may request.

 

5.          Binding
Effect and Agreement. This Agreement shall be binding upon and inure to the benefit of Assignor, Assignee and their respective
successors and assigns.

 

6.          Interpretation.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision hereof shall be prohibited by or invalid under such law, then such provision shall be ineffective to
the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of
this Agreement. This Agreement may not be modified, amended, altered or changed, nor any provision hereof waived, except in writing
with the mutual consent of Assignor and Assignee.

 

7.          Counterparts.
This Assignment may be executed in several counterparts and all counterparts so executed shall constitute one Assignment, binding
on all the parties hereto and thereto, notwithstanding that all the parties are not signatories to the same counterpart.

 

8.          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without reference
to conflicts of laws principles).

 

[Signatures
on following pages] 

 

    	Exhibit A-2

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Agreement to be executed as of the date first above written.

 

	 	ASSIGNOR:
	 	 
	 	BARCELÓ CRESTLINE CORPORATION, a Maryland
    corporation
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

[Signatures
continue on following page]

 

    	Exhibit A-3

    	 

    

 

	 	ASSIGNEE:
	 	 
	 	
        [____________________________],
        a

        [____________________]

	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

  

    	Exhibit A-4

    	 

    

 

Exhibit
b

 

Form of Promissory
Note

 

PROMISSORY
NOTE

(Purchase
Price)

 

	$[________________]	_____________ ___, 201__

 

FOR VALUE RECEIVED,
[American Realty Capital Hospitality Trust, Inc.], a Maryland corporation (“Maker”), whose principal
office is located at [_________________________________] promises to pay to the order of [_____________________________] (together
with any and all of its successors and assigns and/or any other holder of this Note, “Seller”), whose principal
office is located at [_______________________], in lawful money of the United States of America, at its office indicated above
or wherever else Seller may specify, the sum of [_________________________ and ___/100 Dollars ($[_________________]), on the terms
provided in this Promissory Note (including all renewals, extensions or modifications hereof, this “Note”).

 

1.          USE
OF PROCEEDS. Indebtedness evidenced by this Note constitutes a portion of the purchase price (the “Purchase Price”)
required to be paid in accordance with that certain Agreement of Purchase and Sale dated as of ________ ___, 201_ between Maker
and Seller (the “Purchase Agreement”). Capitalized terms used but not defined herein shall have the meanings
given to such terms in the Purchase Agreement.

 

2.          MATURITY
DATE. The entire principal balance of this Note shall be fully and immediately due and payable upon written demand by Seller
at any time (upon at least ten (10) business days notice from Seller) after the date that Maker has raised common equity in an
aggregate amount equal to or greater than One Hundred Fifty Million and 00/100 Dollars ($150,000,000.00) (the “Trigger
Date”). From and after the date hereof, Maker shall provide written updates at least monthly to Seller of the aggregate
amount of common equity raised by Maker and shall provide written notice to Seller with within ten (10) business days after the
occurrence of the Trigger Date. The “Maturity Date” is the date selected by Seller and set forth in Seller’s
written demand (with at least ten (10) business days’ advance notice to Maker) made at any time after the Trigger Date.

 

3.          INTEREST
RATE. Commencing on the date hereof and continuing until the Maturity Date, interest shall accrue on the unpaid principal balance
of this Note at the rate of interest equal to the initial dividend rate provided by Maker to its investors (the “Interest
Rate”), compounded annually.

 

4.          INTEREST
AND FEE(S) COMPUTATION (ACTUAL/365). Interest and fees, if any, shall be computed, payable and allocated on the basis of a
360-day year consisting of twelve 30-day months.

 

    	Exhibit B-1

    	 

    

  

5.       MONTHLY
PAYMENTS. Subject to the remainder of this Section 5, interest shall be paid by Maker to Seller monthly, in arrears,
beginning on ______ 1, 201__1 and continuing on the first
day of each following month (each, a “Monthly Payment Date”). The outstanding principal balance of this Note,
together with all accrued and unpaid interest thereon, if any, and any and all other amounts payable by Maker under this Note
shall be due and payable on the Maturity Date. Notwithstanding the foregoing, Maker may defer any amounts due to Seller on a Monthly
Payment Date that occurs prior to [_________________]2 (the
“Defer Period”); provided however, that on the first Monthly Payment Date to occur after the Defer Period,
Maker shall pay to Seller all accrued, but unpaid interest then outstanding.

 

6.       PREPAYMENT
TERMS. Maker may pay the principal amount outstanding under this Note, in whole or in part, together with any accrued and unpaid
interest thereon, at any time or from time to time, without penalty or premium.

 

7.       METHOD
AND APPLICATION OF PAYMENTS. All payments made hereunder shall be made in lawful money of the United States of America. Monies
received by Seller from any source for application toward payment of the Obligations shall be applied first, to cost of enforcement
(as set forth in Section 11 of this Note), second, to accrued interest, and third, to principal. If any payment received
by Seller under this Note is rescinded, avoided, invalidated, declared to be fraudulent or preferential, set aside, or for any
reason returned by Seller (or repaid by Seller) because of any adverse claim or threatened action, the returned or repaid payment
shall remain payable as an Obligation under this Note as though such payment had not been made. Remittances shall be made without
offset, demand, counterclaim, deduction, or recoupment (each of which is hereby waived) and shall be accepted subject to the condition
that any check or draft may be handled for collection in accordance with the practice of the collecting bank or banks. Acceptance
by Seller of any payment in an amount less than the amount then due pursuant to this Note shall be deemed an acceptance on account
only, notwithstanding any notation on or accompanying such partial payment to the contrary, and shall not in any way (a) waive,
impair or extinguish any right or remedy available to Seller hereunder or under the Purchase Agreement, or (b) waive the requirement
of punctual payment and performance or constitute a novation in any respect. Payments received after [2:00 p.m. EDT] shall be deemed
to be received on, and shall be posted as of, the following business day. Whenever any payment under this Note falls due on a day
which is not a business day, such payment may be made on the next succeeding business day.

 

8.       EVENTS
OF DEFAULT. Each of the following shall constitute an event of default by Maker under this Note (each, an “Event of
Default”)

 

a.    Failure
to make any Monthly Payment or other payment due hereunder within two (2) days after written notice from Seller that such failure
has occurred; and

 

 

1
Insert first day of the month after date of the Note.

 

2
Insert the day that is six months after Maker’s effective date.

 

    	Exhibit B-2

    	 

    

  

b.    Failure
to comply with any covenant or obligation set forth in this Note, not otherwise provided for in Section 8(a) within ten
(10) days after written notice from Seller that such failure has occurred.

 

9.       REMEDIES;
DEFAULT INTEREST RATE. Upon the occurrence of an Event of Default, Seller may take such action at law or equity, without notice
or demand, as it deems advisable to protect and enforce its rights hereunder, including, but not limited to, declaring the entire
principal then outstanding, together with any accrued interest thereon, immediately due and payable. Without limiting the foregoing,
if, and for so long as, any Monthly Payment or other payment due under this Note (subject to Maker’s right to defer Monthly
Payments during the Defer Period) remains past due for five (5) days or more, interest under this Note shall accrue on the unpaid
principal balance at the rate of twenty percent (20%) per annum (the “Default Interest Rate”), compounded monthly,
beginning on the date such payment was due until such time as Maker pays to Seller such past due amounts together with any amounts
that become due during such time.

 

10.      DEFINITIONS.
Obligations. The term “Obligations”, as used in this Note refers to any and all indebtedness and other obligations
under this Note of Maker to Seller.

 

11.      COST
OF ENFORCEMENT; ATTORNEYS’ FEES AND OTHER COSTS. Maker shall pay all of Seller’s reasonable expenses incurred to
(1) enforce its right under this Note, and (2) to enforce or collect any of the Obligations, including, without limitation, as
a result of an Event of Default by Maker, in each case, including, without limitation, reasonable arbitration, paralegals’,
attorneys’ and experts’ fees and expenses, whether incurred without the commencement of a suit, in any trial, arbitration,
or administrative proceeding, or in any appellate or bankruptcy proceeding.

 

12.      USURY.
If at any time the effective interest rate under this Note (including the Default Interest Rate) would, but for this paragraph,
exceed the maximum lawful rate, the effective interest rate under this Note shall be the maximum lawful rate, and any amount received
by Seller in excess of such rate shall be applied to principal and then to fees and expenses, or, if no such amounts are owing,
returned to Maker.

 

13.      WAIVERS
AND AMENDMENTS. No waivers, amendments or modifications of this Note shall be valid unless in writing and signed by an officer
of Seller. No waiver by Seller of any default shall operate as a waiver of any other default or the same default on a future occasion.
Neither the failure nor any delay on the part of Seller in exercising any right, power, or remedy under this Note or the Purchase
Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. Except to the extent otherwise provided by the Purchase Agreement
or prohibited by law, Maker waives presentment, protest, notice of dishonor, demand for payment, notice of intention to accelerate
maturity, notice of acceleration of maturity, notice of sale and all other notices of any kind.

 

    	Exhibit B-3

    	 

    

 

14.     NOTICES.
Any notice, request, demand, consent, approval or other communication under or in accordance with this Note shall be in writing
and delivered by hand against receipt or sent by recognized overnight delivery service or by facsimile. All notices shall be addressed
as follows:

 

	
        If to Seller:

         

        Simon Pedro Barceló

        C/. José Rover Motta, 27

        07006 Palma de Mallorca

        Spain

        Phone: 011 34 (971) 771 700

        Fax: 011 34 (971) 466 720

        

        
	
        with a copy to:

         

        Holland & Knight LLP

        1600 Tysons Boulevard

        Suite 700

        Tysons Corner, Virginia 22102

        Attn: William J. Mutryn

        Phone: (703) 720-8069

        Fax: (703) 720-8610

        

	 	 
	
        If to Maker:

         

        [______________]

        405 Park Avenue, 15th Floor

        New York, NY 10022

        Tel. No.: 212.415.6505

        Fax No.: 857.207.3397

        Attention: __________________

        Tel. No.: ___________________

        Fax No.: ___________________
	
        with a copy to:

         

        Jesse Galloway

        c/o AR Capital, LLC

        405 Park Avenue, 15th Floor

        New York, NY 10022

        Tel. No.: (212) 415-6516

        Fax No.: (646) 861-7751

         

 

 

or to such other
addresses as may be designated by a proper notice. Notices shall be deemed to be effective upon receipt (or refusal thereof) if
personally delivered or sent by recognized overnight delivery service, or upon electronically verified transmission, if such delivery
is by facsimile. Notices may be given on behalf of a party by such party’s legal counsel.

 

    	Exhibit B-4

    	 

    

 

15.         MISCELLANEOUS
PROVISIONS. Assignment. This Note shall inure to the benefit of and be binding upon the parties and their respective heirs,
legal representatives, successors and assigns. Seller’s interests in and rights under this Note are freely assignable, in
whole or in part, by Seller. Maker shall not assign its rights and interest hereunder without the prior written consent of Seller,
and any attempt by Maker to assign without Seller’s prior written consent is null and void. Any assignment shall not release
Maker from the Obligations. Applicable Law; Conflict Between Documents. This Note shall be governed by and construed under
the laws of the State of New York without regard to the conflict of laws principles thereof. Jurisdiction. Maker irrevocably
agrees to nonexclusive personal jurisdiction in the State of New York. Severability. If any provision of this Note shall
be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note.  Interpretation;
Captions. Any reference in this Notice to the term “person” shall mean any individual, person or entity; as required
by the context, the singular shall include the plural, the plural the singular, the neuter gender shall include the male gender
and female gender and vice versa. The captions contained in this Note are inserted for convenience only and shall not affect the
meaning or interpretation of this Note. Posting of Payments. All payments received on business days after [2:00 p.m. EDT]
at the office of Seller first shown above shall be deemed received at the opening of the next business day. Fees and Taxes.
Maker shall promptly pay all documentary, intangible recordation and/or similar taxes on this transaction assessed or arising from
time to time. LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING SELLER BY ACCEPTANCE
HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM THAT
MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS NOTE OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL
ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY
DAMAGES. EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH
MAY ARISE IN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION,
MEDIATION, JUDICIALLY OR OTHERWISE. FINAL AGREEMENT. This Note and the Purchase Agreement represent the final agreement
between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.
There are no unwritten oral agreements between the parties.

 

16.         WAIVER
OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF MAKER BY EXECUTION HEREOF AND SELLER BY ACCEPTANCE HEREOF,
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON,
OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH THIS
NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT
HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT TO SELLER TO ACCEPT THIS NOTE. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF
SHALL SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN THE PURCHASE
AGREEMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED TO OR BEING REPLACED, SUPPLEMENTED,
EXTENDED OR MODIFIED BY, THIS NOTE.

 

17.         PROMISSORY
NOTE SUBORDINATION TO THE LOAN. This Note shall be subject and subordinate at all times to the Loan from General Electric
Capital Corporation to Maker (the “Loan”) and to all of the provisions, covenants, agreements, terms and conditions
of the Loan, and Seller shall not do or permit anything to be done in connection with this Note which would violate any of said
provisions, covenants, agreements, terms and conditions.

 

[remainder
of page intentionally left blank]

 

    	Exhibit B-5

    	 

    

 

IN WITNESS WHEREOF,
Maker, on the day and year first above written, has caused this Note to be executed under seal.

 

	 	MAKER
	 	 
	 	[American Realty Capital Hospitality Trust, Inc.]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	Exhibit B-6

    	 

    

 

EXHIBIT C

 

Form of Indemnity
Agreement

 

INDEMNITY AGREEMENT

 

THIS INDEMNITY
AGREEMENT (this “Agreement”) is made and entered into as of the _____ day of _________, 201___, by [American
Realty Capital Hospitality Trust, Inc., a Maryland corporation] (“Indemnitor”) for the benefit of
BARCELÓ CRESTLINE CORPORATION, a Maryland corporation (“Indemnitee”).

 

RECITALS:

 

A.           Indemnitee
owns one hundred percent (100%) of the membership interests in each of the following (collectively, the “Interests”):(i)
CHRI Blacksburg Hotel (A/H) Minority Holding, LLC, a Delaware limited liability company (“CHRI Blacksburg”),
and (ii) CHRI Virginia Beach Hotel (A/H) Minority Holding, LLC, a Delaware limited liability company (“CHRI Virginia Beach”).

 

B.           CHRI
Blacksburg owns twenty four percent (24%) of the membership interests in BSE/AH Blacksburg Hotel, L.L.C., a Virginia limited liability
company (“Blacksburg Hotel Owner”) and Blacksburg Hotel Owner ground leases that certain hotel commonly referred
to as the Hilton Garden Inn Blacksburg, located at 900 Plantation Rd, Blacksburg, VA 24060 (the “Blacksburg Hotel”).

 

C.           CHRI
Virginia Beach owns thirty and 5323/10000 percent (30.5323 %) of the membership interests in TCA Block 7 Hotel, L.L.C., a
Virginia limited liability company (“Virginia Beach Hotel Owner”) and Virginia Beach Hotel Owner owns that
certain hotel commonly referred to as the Westin Virginia Beach Hotel and Conference Center, located at 4535 Commerce Street
Virginia Beach, VA 23462, and owned by Virginia Beach Hotel Owner, which is part of the condominium project commonly referred
to as Town Center Condominium 7 Virginia Beach Hotel (the “Virginia Beach Hotel”).

 

D.           On
or about April 17, 2008, Blacksburg Hotel Owner obtained a loan from Regions Bank, an Alabama banking corporation (“Blacksburg
Hotel Lender”), which loan is secured by the Blacksburg Hotel (the “Blacksburg Hotel Loan”).

 

E.           As
a condition to making the Blacksburg Hotel Loan, Blacksburg Lender required that Indemnitee, Daniel A. Hoffler, Louis S. Haddad
and Bruce B. Smith, which together with Indemnitee constitute affiliates of some or all of the members of Blacksburg Hotel Owner
(collectively, the “Blacksburg Hotel Guarantors”) execute and deliver that certain Guaranty of Payment, dated
April 17, 2008, which was subsequently amended and restated pursuant to that certain First Amendment and Restated Guaranty of Payment,
dated April 17, 2011, by Indemnitee, Daniel A. Hoffler, Louis S. Haddad and Bruce B. Smith (as amended and restated the “Blacksburg
Hotel Guaranty”).

 

    	Exhibit C-1

    	 

    

 

F.           In
connection with the Blacksburg Hotel Guaranty, the Blacksburg Hotel Guarantors, together with the members of Blacksburg Hotel Owner
and their affiliates entered into that certain Construction Loan Indemnity, dated March 10, 2008, by AH Hotel Holding, L.L.C.,
Daniel A. Hoffler, Louis S. Haddad, Bruce Smith Enterprise, LLC, Bruce B. Smith, CHRI Blacksburg, Indemnitee, Hampton BB Company,
LLC, Hampton University, and Legacy Hospitality, LLC (other than Indemnitee, collectively the “Blacksburg Hotel Indemnity
Parties”), pursuant to which the parties agreed to allocate the obligations of each of the Blacksburg Hotel Guarantors
under the Blacksburg Hotel Guaranty in accordance with their proportionate share of membership interests in Blacksburg Hotel Owner
and indemnify each other in connection therewith (the “Blacksburg Hotel Indemnity”).

 

G.           On
or about December 21, 2007, Virginia Beach Hotel Owner obtained a loan from Countrywide Commercial Real Estate Finance, Inc. (“Countrywide”),
which loan is secured by the Virginia Beach Hotel (the “Virginia Beach Hotel Loan”). The Virginia Beach Hotel
Loan is currently held by U.S. Bank National Association (“Virginia Beach Hotel Lender”).

 

H.           As
a condition to making the Virginia Beach Hotel Loan, Virginia Beach Lender required that Indemnitee and Armada/Hoffler Properties,
L.L.C., which together with Indemnitee constitute affiliates of some or all of the members of Virginia Beach Hotel Owner (collectively,
the “Virginia Beach Hotel Guarantors”) execute and deliver that certain Guaranty of Recourse Obligations, dated
December 21, 2007 (the “Virginia Beach Hotel Guaranty”).

 

I.           In
connection with the Virginia Beach Hotel Guaranty, the Virginia Beach Hotel Guarantors, together with the members of Virginia Beach
Hotel Owner and their affiliates entered into that certain Permanent Loan Cross Indemnity, dated December 21, 2007, by Armada/Hoffler
Properties L.L.C., Armada/Hoffler Properties II, L.L.C., Daniel A. Hoffler, Louis S. Haddad, CHRI Virginia Beach, Indemnitee, Hampton
W Company, LLC, Hampton University, Legacy Hospitality, LLC, and VB City Hotels LLC (other than Indemnitee, collectively the “Virginia
Beach Hotel Indemnity Parties”), pursuant to which the parties agreed to allocate the obligations of each of the Virginia
Beach Hotel Guarantors under the Virginia Beach Hotel Guaranty in accordance with their proportionate share of membership interests
in Virginia Beach Hotel Owner and indemnify each other in connection therewith (the “Virginia Beach Hotel Indemnity”).

 

J.           Pursuant
to that certain Agreement of Purchase and Sale, dated ____________ __, 201_ (the “Purchase Agreement”), Indemnitee
has agreed to sell to Indemnitor and Indemnitor has agreed to purchase from Indemnitee all of Indemnitee’s right, title and
interest in and to the Interests on the terms and conditions set forth in the Purchase Agreement.

 

K.          As
a condition to consummating the closing under the Purchase Agreement, Indemnitee is requiring that Indemnitor execute and deliver
this Agreement so that Indemnitee is protected in the event that (i) Blacksburg Hotel Lender exercise its rights against Indemnitee
under the Blacksburg Hotel Guaranty, (ii) any of the Blacksburg Indemnity Parties exercise their respective rights against Indemnitee
under the Blacksburg Hotel Indemnity, (iii) Virginia Beach Lender exercises its rights against Indemnitee under the Virginia Beach
Hotel Guaranty, or (iv) any of the Virginia Beach Indemnity Parties exercise their respective rights under the Virginia Beach Hotel
Indemnity.

 

NOW, THEREFORE,
in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

    	Exhibit C-2

    	 

    

 

1.          Defined
Terms. As used herein the following terms have the meanings indicated:

 

(a)          Guaranty
or Guaranties: individually or collectively, as applicable, the Blacksburg Hotel Guaranty and/or the Virginia Beach Hotel Guaranty.

 

(b)          Indemnity
Agreement or Indemnity Agreements: individually or collectively, as applicable, the Blacksburg Hotel Indemnity Agreement and/or
the Virginia Beach Hotel Indemnity Agreement.

 

(c)          Indemnity
Party or Indemnified Parties: individually or collectively, as applicable, the Blacksburg Hotel Indemnity Parties and/or the
Virginia Beach Hotel Indemnity Parties.

 

(d)          Lender:
individually or collectively, as applicable, Blacksburg Hotel Lender and/or Virginia Beach Hotel Lender.

 

2.          Indemnity.

 

(a)          Indemnitor
shall indemnify and hold harmless Indemnitee from and against any loss or liability actually incurred by Indemnitee in connection
with (i) any exercise by a Lender of its rights against Indemnitee under a Guaranty, or (ii) any exercise by any Indemnified Party
of its rights against Indemnitee under an Indemnity Agreement; and Indemnitor shall reimburse Indemnitee to the extent it incurs
any costs or expenses in connection with either of the foregoing.

 

(b)          Indemnitee
shall provide Indemnitor with written notice (“Reimbursement Notice”) of any indemnified loss, liability or
reimbursement obligation. Within thirty (30) days after its receipt of such Reimbursement Notice, Indemnitor shall reimburse Indemnitee
for the amount of such loss, liability or reimbursement obligation. Any amount due hereunder, if not paid within such thirty (30)
day period, shall thereafter bear interest at a default rate of twenty percent (20%) per annum, until all of such amount is paid
in full.

 

3.          Additional
Rights. 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 shall 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. In no event shall any provisions of this Agreement
be deemed to be a waiver of or to be in lieu of any right or claim, including, without limitation, any other right of contribution
or other right of recovery, that any party hereto might otherwise have against the other party hereto. No delay or omission in
exercising any right hereunder shall operate as a waiver of such right or any other right.

 

4.          Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective executors,
heirs, successors and assigns. This Agreement is solely for the benefit of the parties hereto and their respective executors, heirs,
successors and assigns, and shall not inure to the benefit of, or be enforceable by, any other person or party.

 

    	Exhibit C-3

    	 

    

 

5.          
Term. The terms and provisions of this Agreement shall continue to apply until Indemnitee is fully released from all liabilities
and obligations under the Guaranties and the Indemnity Agreements and any and all amounts payable under this Agreement have been
paid in full.

 

6.          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without reference
to conflicts of laws principles).

.

7.          Attorneys’
Fees. If any party hereto obtains a judgment against any other party hereto by reason of the breach of this Agreement or the
failure to comply with the terms hereof, reasonable attorneys’ fees and costs as fixed by the court shall be included in
such judgment.

 

8.          Severability.
In the event that any one or more of the provisions contained in this Agreement, or any application thereof, shall be invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein,
and other application thereof, shall not in any way be affected or impaired thereby.

 

9.          Integration.
This Agreement contains the entire agreement between the parties relating to the subject matter hereof. Amendments, variations,
modifications or changes herein may be made effective and binding upon the parties hereto by, and only by, the setting forth of
the same in a document duly executed by such parties.

 

10.         Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be an original but all of which together shall constitute
but one and the same agreement. The recitals of this Agreement are incorporated herein by reference and made a part of this Agreement.

 

11.         Jurisdiction.
The parties hereto consent to the jurisdiction of any state or federal court sitting in the State of New York for any action arising
out of matters related to this Agreement. The parties hereto waive the right to commence an action in connection with this Agreement
in any court outside of the State of New York.

 

12.         Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TRIAL BY JURY IN ANY ACTION ARISING OUT OF MATTERS RELATED TO THIS
AGREEMENT, WHICH WAIVER IS INFORMED AND VOLUNTARY.

 

13.         Incorporation
of Recitals. The recitals to this Agreement hereby are incorporated into this Agreement by this reference as if the same were
set forth in full herein.

 

[The balance
of this page is intentionally left blank] 

 

    	Exhibit C-4

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have duly executed this Agreement under seal as of the day and year first written above.

 

	 	Indemnitor:
	 	 
	 	[AMERICAN REALTY CAPITAL HOSPITALITY TRUST, INC., a Maryland corporation]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	 	 
	 	Indemnitee:
	 	 
	 	BARCELÓ CRESTLINE CORPORATION, a Maryland corporation
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

    	Exhibit C-5

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