Document:

Exhibit 10.2

 

FORM OF 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           , 2013

 

 

    	 

    	 

    

 

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	 	15
	 	 	 	 	 
	 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  , 2013, 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.

 

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“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.

 

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“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.

 

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“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.

 

“Management Agreement”
means the Property Management and Leasing Agreement, dated as of , 2013, among the Company, the Operating Partnership and American
Realty Capital Hospitality Properties, LLC, as the same may be amended from time to time.

 

“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 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.

  

    	4

    	 

    

 

“Operating Partnership Agreement”
means the Agreement of Limited Partnership of the Operating Partnership, dated as of , 2013, among the Company, American Realty
Capital Hospitality Special Limited Partner, LLC, and the Advisor, as the same may be amended from time to time.

 

“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.

 

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

 

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“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; 

 

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(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.

 

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(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
on Stockholders’ capital contributions exceeds six percent (6%) per annum, in an amount equal to fifteen percent (15%) of
the excess total return, provided, that the Annual Subordinated Performance Fee shall not exceed ten percent (10%) of the aggregate
total return 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

 

(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: 
	 	 	Name: William M. Kahane	 
	 	 	Title:   Chief Executive Officer and President	 
	 	 	 	 
	 	AMERICAN REALTY CAPITAL HOSPITALITY OPERATING PARTNERSHIP, L.P.
	 	 	 	 
	 	By:	American Realty Capital HospitalityTrust, Inc., its General Partner	 
	 	 	 	 
	 	By: 	 	 
	 	 	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: 	 	 
	 	 	Name: Nicholas S. Schorsch	 
	 	 	Title: Authorized Signatory	 

  

    	19Exhibit 10.8

 

FORM OF AGREEMENT OF LEASE

 

DATED AS OF ______________

 

BETWEEN

 

 

 

AS LANDLORD

 

AND

 

 

 

AS TENANT

	 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	SECTION 1.	1
	1.1	Leased Property	1
	1.2	Term	2
	 	 	 
	SECTION 2.	2
	2.1	Definitions	2
	 	 	 
	SECTION 3.	12
	3.1	Rent	12
	3.2	Confirmation of Percentage Rent	14
	3.3	Additional Charges	15
	3.4	Net Lease Provision	15
	3.5	Conversion of Property	16
	 	 	 
	SECTION 4.	16
	4.1	Payment of Impositions	16
	4.2	Notice of Impositions	17
	4.3	Adjustment of Impositions	17
	4.4	Utility Charges	17
	4.5	Insurance Premiums	17
	 	 	 
	SECTION 5.	17
	5.1	No Termination, Abatement, etc.	17
	5.2	Abatement Procedures	18
	 	 	 
	SECTION 6.	18
	6.1	Ownership of the Leased Property	18
	6.2	Tenant’s Personal Property	18
	6.3	Landlord’s Lien	19
	 	 	 
	SECTION 7.	19
	7.1	Condition of the Leased Property	19
	7.2	Use of the Leased Property	19
	7.3	Landlord to Grant Easements, etc.	21
	 	 	 
	SECTION 8.	21
	8.1	Compliance with Legal and Insurance Requirements, etc.	21
	8.2	Legal Requirement Covenants	21
	8.3	Environmental Covenants	22

 

    	-i-

    	 

    

 

	 	 	Page
	 	 	 
	SECTION 9.	24
	9.1	Maintenance and Repair	24
	9.2	Encroachments, Restrictions, Etc.	25
	 	 	 
	SECTION 10.	26
	10.1	Alterations	26
	10.2	Salvage	26
	10.3	Joint Use Agreements	26
	 	 	 
	SECTION 11.	26
	11.1	Liens	26
	 	 	 
	SECTION 12.	27
	12.1	Permitted Contests	27
	 	 	 
	SECTION 13.	27
	13.1	General Insurance Requirements	27
	13.2	Replacement Cost	29
	13.3	Worker’s Compensation	29
	13.4	Waiver of Subrogation	29
	13.5	Form Satisfactory, etc.	29
	13.6	Increase in Limits	29
	13.7	Blanket Policy	30
	13.8	No Separate Insurance	30
	 	 	 
	SECTION 14.	30
	14.1	Insurance Proceeds	30
	14.2	Reconstruction in the Event of Damage or Destruction Covered by Insurance	31
	14.3	Reconstruction in the Event of Damage or Destruction Not Covered by Insurance	31
	14.4	Tenant’s Property	31
	14.5	Abatement of Rent	31
	14.6	Damage Near End of Term	32
	14.7	Waiver	32
	 	 	 
	SECTION 15.	32
	15.1	Definitions	32
	15.2	Parties’ Rights and Obligations	32
	15.3	Total Taking	32
	15.4	Allocation of Award	33
	15.5	Partial Taking	33
	15.6	Temporary Taking	34

 

    	-ii-

    	 

    

 

	 	 	Page
	 	 	 
	SECTION 16.	34
	16.1	Events of Default	34
	16.2	Surrender	36
	16.3	Damages	36
	16.4	Waiver	37
	16.5	Application of Funds	37
	 	 	 
	SECTION 17.	37
	17.1	Landlord’s Right to Cure Tenant’s Default	37
	 	 	 
	SECTION 18.	37
	18.1	REIT Requirements	37
	18.2	Tenant Officer and Employee Limitation	39
	18.3	Management Agreement	39
	 	 	 
	SECTION 19.	39
	19.1	Holding Over	39
	 	 	 
	SECTION 20.	40
	20.1	Risk of Loss	40
	 	 	 
	SECTION 21.	40
	21.1	Indemnification	40
	 	 	 
	SECTION 22.	41
	22.1	Subletting and Assignment	41
	22.2	Attornment	42
	 	 	 
	SECTION 23.	42
	23.1	Officer’s Certificates; Financial Statements; Budgets; Landlord’s Estoppel Certificates and Covenants	42
	23.2	Operating Budget	42
	23.3	Marketing Plan	43
	23.4	Capital Budget	43
	23.5	Disputes	43
	 	 	 
	SECTION 24.	43
	24.1	Landlord’s Right to Inspect	43
	 	 	 
	SECTION 25.	43
	25.1	No Waiver	43

 

    	-iii-

    	 

    

 

	 	 	Page
	 	 	 
	SECTION 26.	43
	26.1	Remedies Cumulative	43
	 	 	 
	SECTION 27.	44
	27.1	Acceptance of Surrender	44
	 	 	 
	SECTION 28.	44
	28.1	No Merger of Title	44
	 	 	 
	SECTION 29.	44
	29.1	Conveyance by Landlord	44
	 	 	 
	SECTION 30.	44
	30.1	Quiet Enjoyment	44
	 	 	 
	SECTION 31.	45
	31.1	Notices	45
	 	 	 
	SECTION 32.	45
	32.1	Appraisers	45
	 	 	 
	SECTION 33.	46
	33.1	Landlord May Grant Liens	46
	33.2	Tenant’s Right to Cure	46
	33.3	Breach by Landlord	46
	 	 	 
	SECTION 34.	47
	34.1	Miscellaneous	47
	34.2	Transfer of Licenses	47
	34.3	Waiver of Presentment, etc.	47
	 	 	 
	SECTION 35.	47
	35.1	Memorandum of Lease	47
	 	 	 
	SECTION 36.	48
	36.1	Landlord’s Option to Purchase Assets of Tenant	48
	 	 	 
	SECTION 37.	48
	37.1	Landlord’s Option to Terminate Lease	48
	 	 	 
	SECTION 38.	49
	38.1	Compliance with Franchise Agreement	49

 

    	-iv-

    	 

    

 

	 	 	Page
	 	 	 
	SECTION 39.	49
	39.1	Landlord Approval of Capital Expenditures	49
	39.2	Inventory	49

 

	Exhibit “A”	Land Description
	Exhibit “B-1”	Rent Terms
	Exhibit “B-2”	Schedule of Base and Percentage Rent
	Exhibit “C”	Management Agreement

 

    	-v-

    	 

    

 

AGREEMENT OF LEASE

 

THIS AGREEMENT OF LEASE
(hereinafter called “Lease”), made as of the ___ day of _______, 20__, by and between ________________, a _________________
(hereinafter called “Landlord”), and __________, a _______________ (hereinafter called “Tenant”),
provides as follows.

 

WITNESSETH:

 

Landlord owns fee title
to the Leased Property (as defined below); and

 

Landlord and Tenant
each desire to enter into this Lease for the Leased Property.

 

NOW, THEREFORE, intending
to be legally bound, Landlord, in consideration of the payment of rent by Tenant to Landlord, the covenants and agreements to be
performed by Tenant, and upon the terms and conditions hereinafter stated, does hereby rent and lease unto Tenant, and Tenant does
hereby rent and lease from Landlord, the Leased Property.

 

SECTION 1.

 

1.1          Leased
Property. The Leased Property is comprised of Landlord’s interest in the hotel property
(the “Leased Property”) as follows:

 

(a)          the
land or ground leasehold interests described in Exhibit “A” attached hereto and by reference incorporated herein (the
“Land”);

 

(b)          all
buildings, structures and other improvements of every kind including, but not limited to, alleyways and connecting tunnels, sidewalks,
utility pipes, conduits and lines (on-site and offsite), parking areas and roadways appurtenant to such buildings and structures
presently situated upon the Land (collectively, the “Leased Improvements”);

 

(c)          all
easements, rights and appurtenances relating to the Land and the Leased Improvements;

 

(d)          all
equipment, machinery, fixtures, and other items of property required or incidental to the use of the Leased Improvements as a hotel,
including all components thereof, now and hereafter permanently affixed to or incorporated into the Leased Improvements, including,
without limitation, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating, refrigerating,
incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems and apparatus, sprinkler
systems and fire and theft protection equipment, all of which to the greatest extent permitted by law are hereby deemed by the
parties hereto to constitute real estate, together with all replacements, modifications, alterations and additions thereto (collectively,
the “Fixtures”);

 

(e)          all
furniture and furnishings and all other items of personal property (excluding Inventory and personal property owned by Tenant)
located on, and used in connection with, the operation of the Leased Improvements as a hotel, together with all replacements, modifications,
alterations and additions thereto; and

 

    	 

    	 

    

 

(f)          all
existing leases of space within the Leased Property (including any security deposits or collateral held by Landlord pursuant thereto).

 

THE LEASED PROPERTY IS DEMISED IN ITS PRESENT
CONDITION WITHOUT REPRESENTATION OR WARRANTY (EXPRESSED OR IMPLIED) BY LANDLORD AND SUBJECT TO THE RIGHTS OF PARTIES IN POSSESSION,
AND TO THE EXISTING STATE OF TITLE INCLUDING ALL COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS OF RECORD INCLUDING
ALL APPLICABLE LEGAL REQUIREMENTS, THE LIEN OF FINANCING INSTRUMENTS, MORTGAGES, DEEDS OF TRUST AND SECURITY DEEDS, AND INCLUDING
OTHER MATTERS WHICH WOULD BE DISCLOSED BY AN INSPECTION OF THE LEASED PROPERTY OR BY AN ACCURATE SURVEY THEREOF.

 

1.2           Term.
The term of the Lease (the “Term”) shall commence on the Commencement Date and shall end on the Expiration
Date, unless sooner terminated in accordance with the provisions hereof.

 

SECTION 2.

 

2.1           Definitions.
For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the terms
defined in this Section have the meanings assigned to them in this Section and include the plural as well as the singular, (b)
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles as are at the time applicable, (c) all references in this Lease to designated “Sections” and other subdivisions
are to the designated Sections and other subdivisions of this Lease and (d) the words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Section
or other subdivision.

 

“Accounting
Period”: A calendar month, or portion thereof in which the Term begins or ends.

 

“Accounting
Quarter”: A calendar quarter, or portion thereof in which the Term begins or ends.

 

“Additional
Charges”: As defined in Section 3.3.

 

“Affiliate”:
As used in this Lease the term “Affiliate” of a person shall mean (a) any person that, directly or indirectly, controls
or is controlled by or is under common control with such person, (b) any other person that owns, beneficially, directly or indirectly,
five percent or more of the outstanding capital stock, shares or equity interests of such person, or (c) any officer, director,
employee, partner or trustee of such person or any person controlling, controlled by or under common control with such person (excluding
trustees and persons serving in similar capacities who are not otherwise an Affiliate of such person). The term “person”
means and includes individuals, corporations, general and limited partnerships, stock companies or associations, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business trusts, or other entities and governments and agencies
and political subdivisions thereof. For the purposes of this definition, “control” (including the correlative meanings
of the terms “controlled by” and “under common control with”), as used with respect to any person, shall
mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such
person, through the ownership of voting securities, partnership interests or other equity interests.

 

    	-2-

    	 

    

 

“Average Daily
Rate”: Total Room Revenue divided by occupied rooms at the Facility.

 

“Award”:
As defined in Section 15.1(c).

 

“Base Rate”:
The “prime rate” of interest as published in The Wall Street Journal from time to time. If no such rate is announced
or becomes discontinued, then such other rate as Landlord may reasonably designate.

 

“Base Rent”:
As defined in Section 3.

 

“Business
Day”: Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which national banks in the City of New
York, New York, or in the municipality wherein the Leased Property is located are closed.

 

“Capital Budget”:
As defined in Section 23.4.

 

“Capital Expenditures”:
Amounts advanced to pay the costs of Capital Improvements.

 

“Capital Improvements”:
Improvements to (A) the external walls and internal load bearing walls (other than windows and plate glass), (B) the roof of the
Facility, (C) private roadways, parking areas, sidewalks and curbs appurtenant thereto that are under Tenant’s control (other
than cleaning, patching and striping), (D) mechanical, electrical and plumbing systems that service common areas, entire wings
of the Facility or the entire Facility, including conduit and ductware connected thereto, and (E) items of the types which should
be capitalized pursuant to Landlord’s capital expenditures policy.

 

“CERCLA”:
The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended.

 

“Code”:
The Internal Revenue Code of 1986, as amended.

 

“Commencement
Date”: The date set forth on Exhibit “B-1” attached hereto as the commencement date with respect to the Facility.

 

“Condemnation,
Condemnor”: As defined in Section 15.1.

 

“Consolidated
Financials”: For any fiscal year or other accounting period for Tenant and its consolidated subsidiaries, statements
of earnings and retained earnings and of changes in financial position for such period and for the period from the beginning of
the respective fiscal year to the end of such period and the related balance sheet as at the end of such period, together with
the notes thereto, all in reasonable detail and setting forth in comparative form the corresponding figures for the corresponding
period in the preceding fiscal year, and prepared in accordance with generally accepted accounting principles.

 

    	-3-

    	 

    

 

“Consumer
Price Index”: Consumer Price Index, all Items for all Urban Consumers (CPI-U) where 1982-84=100, published by the Bureau
of Labor Statistics of the United States Department of Labor, as reported in The Wall Street Journal.

 

“CPI Adjustment
Year”: The calendar year next following the year in which the Commencement Date occurs, if the Commencement Date occurs
between January 1 and June 30, or the second calendar year following the year in which the Commencement Date occurs, if the Commencement
Date occurs between July 1 and December 31.

 

“Cumulative
Accounting Period Portion”: As defined in Exhibit “B-1”.

 

“Date of Taking”:
As defined in Section 15.1(b).

 

“Encumbrance”:
As defined in Section 33.1.

 

“Eligible
Independent Contractor”: A management company that meets the following requirements:

 

(a)          The
management company does not own, directly or indirectly, more than thirty-five percent (35%) of the outstanding stock of REIT.

 

(b)          If
the management company is a corporation, no more than thirty-five percent (35%) of the total combined voting power of its outstanding
stock (or thirty-five percent (35%) of the total shares of all classes of its outstanding stock) or, if it is not a corporation,
no more than thirty-five percent (35%) of the ownership interest in its assets or profits is owned, directly or indirectly, by
one or more Persons owning thirty-five percent (35%) or more of the outstanding stock of REIT.

 

(c)          Neither
REIT, the Landlord, the Tenant, nor any Affiliate thereof derives any income from the management company.

 

(d)          At
the time that the management company enters into a management agreement with the Tenant to operate the Leased Property, the management
company (or any “related person” within the meaning of Section 856(d)(9)(F) of the Code) is actively engaged in the
trade or business of operating “qualified lodging facilities” within the meaning of Section 856(d)(9)(D) of the Code
for any Person who is not a “related person” within the meaning of Section 856(d)(9)(F) of the Code with respect to
REIT or the Tenant (an “Unrelated Person”). For purposes of determining whether the requirement of this paragraph
(d) has been met, a management company shall be treated as being actively engaged in such a trade or business if the management
company (i) derives at least ten percent (10%) of both its profits and revenue from operating “qualified lodging facilities”
within the meaning of Section 856(d)(9)(D) of the Code for Unrelated Persons or (ii) complies with any regulations or other administrative
guidance under Section 856(d)(9) of the Code that provide a “safe harbor” rule with respect to the amount of hotel
management business with Unrelated Persons that is necessary to qualify as an “eligible independent contractor” within
the meaning of such Code section.

 

    	-4-

    	 

    

 

“Environmental
Authority”: Any department, agency or other body or component of any Government that exercises any form of jurisdiction
or authority under any Environmental Law.

 

“Environmental
Authorization”: Any license, permit, order, approval, consent, notice, registration, filing or other form of permission
or authorization required under any Environmental Law.

 

“Environmental
Laws”: All applicable federal, state, local and foreign laws and regulations relating to pollution of the environment
(including without limitation, ambient air, surface water, ground water, land surface or subsurface strata), including, without
limitation, laws and regulations relating to emissions, discharges, Releases or threatened Releases of Hazardous Materials or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials.
Environmental Laws include but are not limited to CERCLA, FIFRA, RCRA, SARA and TSCA.

 

“Environmental
Liabilities”: Any and all obligations to pay the amount of any judgment or settlement, the cost of complying with any
settlement, judgment or order for injunctive or other equitable relief, the cost of compliance or corrective action in response
to any notice, demand or request from an Environmental Authority, the amount of any civil penalty or criminal fine, and any court
costs and reasonable amounts for attorney’s fees, fees for witnesses and experts, and costs of investigation and preparation
for defense of any claim or any Proceeding, regardless of whether such Proceeding is threatened, pending or completed, that may
be or have been asserted against or imposed upon Landlord, Tenant, any Predecessor, the Leased Property or any property used therein
and arising out of:

 

(a)          Failure
of Tenant, Landlord, any Predecessor or the Leased Property to comply at any time with all Environmental Laws;

 

(b)          Presence
of any Hazardous Materials on, in, under, at or in any way affecting the Leased Property;

 

(c)          A
Release at any time of any Hazardous Materials on, in, at, under or in any way affecting the Leased Property;

 

(d)          Identification
of Tenant, Landlord or any Predecessor as a potentially responsible party under CERCLA or under any Environmental Law similar to
CERCLA;

 

(e)          Presence
at any time of any above-ground and/or underground storage tanks, as defined in RCRA or in any applicable Environmental Law on,
in, at or under the Leased Property or any adjacent site or facility; or

 

(f)          Any
and all claims for injury or damage to persons or property arising out of exposure to Hazardous Materials originating or located
at the Leased Property, or resulting from operation thereof or any adjoining property.

 

“Event of
Default”: As defined in Section 16.1.

 

    	-5-

    	 

    

 

“Excess Personal
Property”: As defined in Section 18.1.

 

“Expiration
Date”: The date set forth on Exhibit “B-1” attached hereto as the expiration date with respect to the Facility.

 

“F&B Revenue”:
Gross revenue from the sale of food and beverages, including alcoholic beverages, whether to individuals, groups or transients,
at the Facility, including cancellation and attrition but excluding the following:

 

(a)          the
amount of all credits, rebates or refunds to customers, guests or patrons;

 

(b)          all
sales taxes or any other taxes imposed on the sale of food and beverages;

 

(c)          accounts
receivable which have been included in F&B Revenue which thereafter become, in the reasonable judgment of Tenant, uncollectible;
and

 

(d)          the
portions of the Facility that are operated by a third party under a lease.

 

“Facility”:
The hotel and/or other facility offering lodging and other services or amenities being operated or proposed to be operated on the
Leased Property.

 

“Fair Market
Value”: The fair market value of the leasehold estate hereunder, or under a replacement lease offered under Section 37,
means an amount equal to the price that a willing buyer not compelled to buy would pay a willing seller not compelled to sell for
such leasehold estate, calculated based upon the present value (discounted at a rate of interest mutually agreeable to the parties),
of the net income stream reasonably projected by the parties to be earned by Tenant under such lease for the then remaining term
of such lease, determined in accordance with the appraisal procedures set forth in Section 32 (with the understanding that such
appraisers will be instructed to utilize the income stream approach as aforesaid) or in such other manner as shall be mutually
acceptable to Landlord and Tenant, and assuming that such seller must pay customary closing costs.

 

“FIFRA”:
The Federal Insecticide, Fungicide, and Rodenticide Act, as amended.

 

“Fiscal Year”:
The twelve (12) month period from January 1 to December 31.

 

“Fixtures”:
As defined in Section 1.1.

 

“Franchise
Agreement”: Any franchise license agreement with a national franchisor under which the Facility is operated.

 

“GAAP”:
GAAP shall mean, as of any date of determination, accounting principles (a) set forth as generally accepted in then currently effective
Financial Accounting Standards Board codification and the rules and releases of the Securities and Exchange Commission as consistently
applied. The term “consistently applied,” as used in connection therewith, means that the accounting principles applied
are consistent in all material respects to those applied at prior dates or for prior periods.

 

    	-6-

    	 

    

 

“Government”:
The United States of America, any state, district or territory thereof, any foreign nation, any state, district, department, territory
or other political division thereof, or any political subdivision of any of the foregoing.

 

“Gross Revenue”:
All revenue, receipts, and income of any kind derived directly or indirectly by Tenant from or in connection with the Facility
(including rentals or other payments from tenants, lessees, licensees or concessionaires but not including their gross receipts)
whether on a cash basis or credit, paid or collected, determined in accordance with GAAP and the Uniform System, excluding, however:
(i) funds furnished by Landlord, (ii) federal, state and municipal excise, sales, and use taxes collected directly from patrons
and guests or as a part of the sales price of any goods, services or displays, such as gross receipts, admissions, cabaret or similar
or equivalent taxes and paid over to federal, state or municipal governments, (iii) gratuities paid to employees, (iv) proceeds
of insurance and condemnation, (v) proceeds from sales other than sales in the ordinary course of business, (vi) all loan proceeds
from financing or refinancings of the Facility or interests therein or components thereof, (vii) judgments and awards, except any
portion thereof arising from normal business operations of the Facility, and (viii) items constituting “allowances”
under the Uniform System.

 

“Hazardous
Materials”: All chemicals, pollutants, contaminants, wastes and toxic substances, including without limitation:

 

(a)          Solid
or hazardous waste, as defined in RCRA or in any Environmental Law;

 

(b)          Hazardous
substances, as defined in CERCLA or in any Environmental Law;

 

(c)          Toxic
substances, as defined in TSCA or in any Environmental Law;

 

(d)          Insecticides,
fungicides, or rodenticides, as defined in FIFRA or in any Environmental Law; and

 

(e)          Gasoline
or any other petroleum product or byproduct, polychlorinated biphenols, asbestos and urea formaldehyde.

 

“Impositions”:
Collectively, all taxes (including, without limitation, all ad valorem, sales and use, single business, gross receipts, transaction
privilege, rent or similar taxes as the same relate to or are imposed upon Tenant or its business conducted upon the Leased Property),
assessments (including, without limitation, all assessments for public improvements or benefit, whether or not commenced or completed
prior to the date hereof and whether or not to be completed within the Term), ground rents, water, sewer or other rents and charges,
excises, tax inspection, authorization and similar fees and all other governmental charges, in each case whether general or special,
ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Leased Property or the business conducted
thereon by Tenant (including all interest and penalties thereon caused by any failure in payment by Tenant), which at any time
prior to, during or with respect to the Term hereof may be assessed or imposed on or with respect to or be a lien upon (a) Landlord’s
interest in the Leased Property, (b) the Leased Property, or any part thereof or any rent therefrom or any estate, right, title
or interest therein, or (c) any occupancy, operation, use or possession of, or sales from, or activity conducted on or in connection
with the Leased Property, or the leasing or use of the Leased Property or any part thereof by Tenant. Nothing contained in this
definition of Impositions shall be construed to require Tenant to pay (1) any tax based on net income (whether denominated as a
franchise or capital stock or other tax) imposed on Landlord or any other person, or (2) any net revenue tax of Landlord or any
other person, or (3) any tax imposed with respect to the sale, exchange or other disposition by Landlord of any Leased Property
or the proceeds thereof, or (4) any single business, gross receipts (other than a tax on any rent received by Landlord from Tenant),
transaction, privilege or similar taxes as the same relate to or are imposed upon Landlord, except to the extent that any tax,
assessment, tax levy or charge that Tenant is obligated to pay pursuant to the first sentence of this definition and that is in
effect at any time during the Term hereof is totally or partially repealed, and a tax, assessment, tax levy or charge set forth
in clause (1) or (2) is levied, assessed or imposed expressly in lieu thereof.

 

    	-7-

    	 

    

 

“Indemnified
Party”: Either of a Tenant Indemnified Party or a Landlord Indemnified Party.

 

“Indemnifying
Party”: Any party obligated to indemnify an Indemnified Party pursuant to Sections 8.3 or 21.1.

 

“Insurance
Requirements”: All terms of any insurance policy required by this Lease and all requirements of the issuer of any such
policy.

 

“Inventory”:
All “Inventories of Merchandise” and “Inventories of Supplies” as defined in the Uniform System and including
any property of the type described in Section 1221(1) of the Code.

 

“Land”:
As defined in Section 1.1(a).

 

“Landlord”:
The Landlord designated on this Lease and its respective successors and assigns.

 

“Landlord
Indemnified Party”: Landlord, any Affiliate of Landlord, any other Person against whom any claim for indemnification
may be asserted hereunder as a result of a direct or indirect ownership interest (including a stockholder’s or partnership
interest) in Landlord, the officers, directors, stockholders, employees, agents and representatives of the general partner of Landlord
and any partner, agent, or representative of Landlord, and the respective heirs, personal representatives, successors and assigns
of any such officer, director, partner, stockholder, employee, agent or representative.

 

“Lease”:
This Lease.

 

“Lease Year”:
Any twelve (12) month period from January 1 through December 31 during the Term, or any shorter period at the beginning or end
of the Term.

 

“Leased Improvements;
Leased Property”: Each as defined in Section 1.1.

 

    	-8-

    	 

    

 

“Legal Requirements”:
All federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting either the Leased Property or the maintenance, construction, use or alteration thereof (whether
by Tenant or otherwise), whether or not hereafter enacted and in force, including (a) all laws, rules or regulations pertaining
to the environment, occupational health and safety and public health, safety or welfare, and (b) any laws, rules or regulations
that may (1) require repairs, modifications or alterations in or to the Leased Property or (2) in any way adversely affect the
use and enjoyment thereof; and all permits, licenses and authorizations and regulations relating thereto and all covenants, agreements,
restrictions and encumbrances contained in any instruments, either of record or known to Tenant (other than encumbrances created
by Landlord without the consent of Tenant), at any time in force affecting the Leased Property.

 

“Lending Institution”:
Any insurance company, credit company, federally insured commercial or savings bank, national banking association, savings and
loan association, employees welfare, pension or retirement fund or system, corporate profit sharing or pension trust, college or
university, or real estate investment trust, including any corporation qualified to be treated for federal tax purposes as a real
estate investment trust, such trust having a net worth of at least $10,000,000.

 

“Management
Agreement”: As defined in Section 18.3.

 

“Manager”:
As defined in Section 18.3.

 

“Notice”:
A notice given pursuant to Section 31.

 

“Officer’s
Certificate”: A certificate of Tenant signed by the chief financial officer or another officer authorized so to sign
by the board of directors or by-laws of Tenant, or any other person whose power and authority to act has been authorized by delegation
in writing by any such officer.

 

“Operating
Budget”: As defined in Section 23.2.

 

“Overdue Rate”:
On any date, a rate equal to the Base Rate plus five percent (5%) per annum, but in no event greater than the maximum rate then
permitted under applicable law.

 

“Other Revenue”:
All revenue, receipts, and income of any kind derived directly or indirectly from or in connection with the Facility and included
in Gross Revenue (including, without limitation, rental revenue), other than Room Revenue, F&B Revenue and Third Party Lease
Revenue. For the avoidance of doubt, Other Revenue shall not include non-cash adjustments resulting from GAAP.

 

“Payment Date”:
Any due date for the payment of any installment of Base Rent.

 

“Percentage
Rent”: As defined in Section 3.1(b).

 

“Periodic
Revenue Computation”: As defined in Exhibit “B-1”.

 

“Personal
Property Limitation”: As defined in Section 18.1.

 

“Person”:
Any Government, natural person, corporation, partnership or other legal entity.

 

    	-9-

    	 

    

 

“Predecessor”:
Any Person whose liabilities arising under any Environmental Law have or may have been retained or assumed by Tenant, either contractually
or by operation of law, relating to the Leased Property.

 

“Primary Intended
Use”: As defined in Section 7.2(b).

 

“Proceeding”:
Any judicial action, suit or proceeding (whether civil or criminal), any administrative proceeding (whether formal or informal),
any investigation by a governmental authority or entity (including a grand jury), and any arbitration, mediation or other non-judicial
process for dispute resolution.

 

“RCRA”:
The Resource Conservation and Recovery Act, as amended.

 

“Real Estate
Taxes”: All real estate taxes, including general and special assessments, if any, which are imposed upon the Land, and
any improvements thereon.

 

“REIT Requirements”:
As defined in Section 18.1.

 

“REIT”:
American Realty Capital Hospitality Trust, Inc., a Maryland real estate investment trust and sole general partner of American Realty
Capital Hospitality Operating Partnership, L.P., a Delaware limited partnership.

 

“Release”:
A “Release” as defined in CERCLA or in any Environmental Law, unless such Release has been properly authorized and
permitted in writing by all applicable Environmental Authorities or is allowed by such Environmental Law without authorizations
or permits.

 

“Rent”:
Collectively, the Base Rent, Percentage Rent, and Additional Charges.

 

“Revenue Percentages”:
Shall mean each tier of revenue percentages utilized in the calculation of Percentage Rent and set forth in Exhibit “B-2”,
relating to Room Revenue, F&B Revenue, Other Revenue and Third Party Lease Revenue, as applicable.

 

“Revenue Thresholds”:
Shall mean each tier of revenue thresholds utilized in the calculation of Percentage Rent and set forth in Exhibit “B-2”,
relating to Room Revenue, F&B Revenue, Other Revenue and Third Party Lease Revenue, as applicable.

 

“Room Revenue”:
Shall mean gross revenue from the rental of guest rooms, whether to individuals, groups or transients, including cancellation and
attrition but excluding the following:

 

(a)          The
amount of all credits, rebates or refunds to customers, guests or patrons;

 

(b)          All
sales taxes or any other taxes imposed on the rental of such guest rooms; and

 

(c)          Any
fees collected for amenities including, but not limited to: food and beverage, telephone, laundry, movies or concessions.

 

“SARA”:
The Superfund Amendments and Reauthorization Act of 1986, as amended.

 

    	-10-

    	 

    

 

“State”:
The state, district or commonwealth of the United States in which the Leased Property is located.

 

“Subsidiaries”:
Corporations in which Tenant owns, directly or indirectly, more than fifty percent (50%) of the voting stock or control, as applicable
(individually, a “Subsidiary”).

 

“Taking”:
A taking or voluntary conveyance during the Term hereof of all or part of the Leased Property, or any interest therein or right
accruing thereto or use thereof, as the result of, or in settlement of, any Condemnation or other eminent domain proceeding affecting
the Leased Property whether or not the same shall have actually been commenced.

 

“Tenant”:
The Tenant designated on this Lease and its respective permitted successors and assigns.

 

“Tenant Indemnified
Party”: Tenant, any Affiliate of Tenant, any other Person against whom any claim for indemnification may be asserted
hereunder as a result of a direct or indirect ownership interest (including a stockholder’s interest) in Tenant, the officers,
directors, stockholders, employees, agents and representatives of Tenant and any corporate stockholder, agent, or representative
of Tenant, and the respective heirs, personal representatives, successors and assigns of any such officer, director, stockholder,
employee, agent or representative.

 

“Tenant’s
Personal Property”: As defined in Section 6.2.

 

“Term”:
As defined in Section 1.2.

 

“Third Party
Lease Revenue”: Shall mean net operating income from the portions of the Facility such as restaurant, bar, spa or retail
space that are operated by a third party under a lease.

 

“TSCA”:
The Toxic Substances Control Act, as amended.

 

“Unavoidable
Delays”: Delays due to strikes, lock-outs, labor unrest, inability to procure materials, power failure, acts of God,
governmental restrictions, enemy action, civil commotion, fire, unavoidable casualty or other causes beyond the control of the
party responsible for performing an obligation hereunder, provided that lack of funds shall not be deemed a cause beyond the control
of either party hereto unless such lack of funds is caused by the failure of the other party hereto to perform any obligations
of such party under this Lease or any guaranty of this Lease.

 

“Uneconomic
for its Primary Intended Use”: A state or condition of the Facility such that, in the good faith judgment of Tenant,
reasonably exercised and evidenced by the resolution of the board of directors or other governing body of Tenant, the Facility
cannot be operated on a commercially practicable basis for its Primary Intended Use, taking into account, among other relevant
factors, the number of usable rooms and projected revenue, such that Tenant intends to, and shall, complete the cessation of operations
at the Leased Facility.

 

    	-11-

    	 

    

 

“Uniform System”:
Shall mean the “Uniform System of Accounts for Hotels” (10th Revised Edition, 2006) as published by the American Hotel
and Motel Association, as it may be amended from time to time with such exceptions as may be required by the provisions of this
Lease.

 

“Unsuitable
for its Primary Intended Use”: A state or condition of the Facility such that, in the good faith judgment of Tenant,
reasonably exercised and evidenced by the resolution of the board of directors or other governing body of Tenant, due to casualty
damage or loss through Condemnation, the Facility cannot function as an integrated hotel facility consistent with standards applicable
to a well maintained and operated hotel.

 

SECTION 3.

 

3.1          Rent.
Tenant will pay to Landlord in lawful money of the United States of America which shall be legal tender for the payment of public
and private debts, in immediately available funds, at Landlord’s address set forth in Section 31 hereof or at such other
place or to such other Person, as Landlord from time to time may designate in a Notice, all Base Rent, Percentage Rent and Additional
Charges, during the Term, as follows:

 

(a)          Base
Rent: Base Rent for any Fiscal Year shall be payable in the amount set forth on Exhibit “B-2”, payable in arrears
in equal, consecutive periodic installments, on or before the tenth (10th) day after the end of an Accounting Period (“Base
Rent”) (subject to increase as provided in Section 3.1(d)(i)(B) hereof); provided, however, that (1) Base Rent shall
be prorated as to any Lease Year which is less than twelve (12) calendar months and (2) if the Term shall commence and/or end at
any time other than the beginning or end of a calendar month, the first and/or last periodic payments of Base Rent, as the case
may be, shall be prorated for any such partial calendar month; and

 

(b)          Percentage
Rent: For each Accounting Quarter during the Term, commencing with the Accounting Quarter in which the Term begins, Tenant
shall at the time specified in Section 3.1(c) hereof pay percentage rent (“Percentage Rent”), if any, in an amount
calculated by the following formulas:

 

For any Accounting Quarter,
Percentage Rent shall equal: (A) The amount equal to the Periodic Revenue Computation (as defined in Exhibit “B-1”),
less (B) an amount equal to the Base Rent paid for the Fiscal Year to date, (C) less an amount equal to the Percentage Rent paid
for the Fiscal Year to date.

 

(c)          Officer’s
Certificates: Additionally, an Officer’s Certificate in form reasonably acceptable to Landlord shall be delivered to
Landlord quarterly, together with such quarterly Percentage Rent payment, setting forth the calculation of such rent payment for
such quarter within thirty five (35) days after each of the first three (3) quarters of each Fiscal Year (or part thereof) in the
Term. Such quarterly payments shall be based on the formula set forth in Section 3.1(b) and Exhibit B. There shall be no reduction
in the Base Rent regardless of the result of the Revenue Computations.

 

    	-12-

    	 

    

 

In addition, on or before
February 10 of each year, commencing with the February 10 first following the end of the Fiscal Year in which the Commencement
Date occurs, Tenant shall deliver to Landlord an Officer’s Certificate reasonably acceptable to Landlord setting forth the
computation of the actual Percentage Rent that accrued for the last quarter of the Fiscal Year that ended on the immediately preceding
December 31 and shall pay to Landlord Percentage Rent, if due and payable, for the last quarter of the applicable Fiscal Year.
The Officer’s Certificate shall also set forth the computation of the Percentage Rent accrued and paid during the Fiscal
Year that ended on the immediately preceding December 31. If the annual Percentage Rent due and payable for any Fiscal Year (as
shown in the applicable Officer’s Certificate) exceeds the amount actually paid as Percentage Rent by Tenant for such year,
Tenant also shall pay such excess to Landlord at the time such certificate is delivered. If the Percentage Rent actually due and
payable for such Fiscal Year is shown by such certificate to be less than the amount actually paid as Percentage Rent for the applicable
Fiscal Year, Landlord, at its option, shall reimburse such amount to Tenant or credit such amount against the following months’
Base Rent and, to the extent necessary, the next quarters’ Percentage Rent payments. Any such credit to Base Rent shall not
be applied for purposes of calculating Percentage Rent payable for any subsequent quarter.

 

Any difference between
the annual Percentage Rent due and payable for any Fiscal Year (as shown in the applicable Officer’s Certificate or as adjusted
pursuant to Section 3.3) and the total amount of quarterly payments for such Fiscal Year actually paid by Tenant as Percentage
Rent, whether in favor of Landlord or Tenant, shall bear interest at the Overdue Rate, which interest shall accrue from the close
of such Fiscal Year until the amount of such difference shall be paid or otherwise discharged. Any such interest payable to Landlord
shall be deemed to be and shall be payable as Additional Charges.

 

The obligation to pay
Percentage Rent shall survive the expiration or earlier termination of the Term, and a final reconciliation, taking into account,
among other relevant adjustments, any adjustments which are accrued after such expiration or termination date but which related
to Percentage Rent accrued prior to such termination date, and Tenant’s good faith best estimate of the amount of any unresolved
contractual allowances, shall be made not later than two (2) years after such expiration or termination date, but Tenant shall
advise Landlord within sixty (60) days after such expiration or termination date of Tenant’s best estimate at that time of
the approximate amount of such adjustments, which estimate shall not be binding on Tenant or have any legal effect whatsoever.

 

(d)          CPI
Adjustments to Rent.

 

For each Fiscal
Year of the Term beginning in January of 2015 and each Fiscal Year thereafter for the Base Rent and the Revenue Thresholds, the
Base Rent and the Revenue Thresholds then in effect shall be adjusted annually as follows:

 

The Consumer Price
Index for the last month of the most recently ended Fiscal Year shall be divided by the Consumer Price Index for the last month
of the Fiscal Year immediately preceding the most recently ended Fiscal Year and rounded to the nearest 1/10th of a percent.

 

The new Base Rent for
the then current Fiscal Year shall be the adjusted amount obtained by multiplying the Base Rent for the most recently ended Fiscal
Year by the quotient obtained in Section 3.1(d)(i)(A) above.

 

    	-13-

    	 

    

 

The new Revenue Thresholds
(used in the Periodic Revenue Computations set forth in Exhibit “B-1”) for the then-current Fiscal Year shall be the
adjusted amount obtained by multiplying the Revenue Thresholds for the most recently ended Fiscal Year by the quotient obtained
in Section 3.1(d)(i)(A) above.

 

By way of example, the amount
of Base Rent and the Revenue Thresholds in the Periodic Revenue Computations for the Fiscal Year commencing January 1, 2015 shall
be adjusted to reflect any change in the Consumer Price Index from December 2014 as compared to December 2013.

 

Adjustments calculated as set
forth above in the Base Rent and Revenue Thresholds shall be effective in the first Accounting Period of the Fiscal Year to which
such adjusted amounts apply. If rent is paid in any Fiscal Year prior to the determination of the amount of any adjustment to Base
Rent and the Revenue Thresholds applicable for such Fiscal Year, payment adjustments for any shortfall in or overpayment of Rent
paid shall be made with the first Base Rent payment due after the amount of the adjustments are determined.

 

If (1) a significant
change is made in the number or nature (or both) of items used in determining the Consumer Price Index or (2) the Consumer Price
Index shall be discontinued for any reason, the Bureau of Labor Statistics shall be requested to furnish a new index comparable
to the Consumer Price Index, together with information which will make possible a conversion to the new index in computing the
adjusted Base Rent hereunder. If for any reason the Bureau of Labor Statistics does not furnish such an index and such information,
the parties will instead mutually select, accept and use such other index or comparable statistics on the cost of living in the
city the Facility is located that is computed and published by an agency of the United States or a responsible financial periodical
of recognized authority.

 

3.2           Confirmation
of Percentage Rent. Tenant shall utilize, or cause to be utilized, an accounting system for
the Leased Property in accordance with its usual and customary practices, and in accordance with generally accepted accounting
principles and the Uniform System, that will accurately record all data necessary to compute Percentage Rent, and Tenant shall
retain, for at least four years after the expiration of each Fiscal Year (and in any event until the reconciliation described
in Section 3.1(c) for such Fiscal Year has been made), reasonably adequate records conforming to such accounting system showing
all data necessary to compute Percentage Rent for the applicable Fiscal Years. Landlord, at its expense (except as provided hereinbelow),
shall have the right from time to time by its accountants or representatives to audit the information that formed the basis for
the data set forth in any Officer’s Certificate provided under Section 3.1(c) and, in connection with such audits, to examine
all Tenant’s records (including supporting data, franchisor reports and sales and excise tax returns) reasonably required
to verify Percentage Rent, subject to any prohibitions or limitations on disclosure of any such data under Legal Requirements.
If any such audit discloses a deficiency in the payment of Percentage Rent, and either Tenant agrees with the result of such audit
or the matter is otherwise determined or compromised, Tenant shall forthwith pay to Landlord the amount of the deficiency, as
finally agreed or determined, together with interest at the Overdue Rate from the date when said payment should have been made
to the date of payment thereof; provided, however, that as to any audit that is commenced more than two (2) years after the date
Percentage Rent for any Fiscal Year is reported by Tenant to Landlord, the deficiency, if any, with respect to such Percentage
Rent shall bear interest at the Overdue Rate only from the date such determination of deficiency is made unless such deficiency
is the result of gross negligence or willful misconduct on the part of Tenant, in which case interest at the Overdue Rate will
accrue from the date such payment should have been made to the date of payment thereof. If any such audit discloses that the Percentage
Rent actually due from Tenant for any Fiscal Year exceed those reported and paid by Tenant by more than three percent (3%), Tenant
shall pay the cost of such audit and examination. Any proprietary information obtained by Landlord pursuant to the provisions
of this Section shall be treated as confidential, except that such information may be used, subject to appropriate confidentiality
safeguards, in any litigation between the parties and except further that Landlord may disclose such information to prospective
lenders. The obligations of Tenant contained in this Section shall survive the expiration or earlier termination of this Lease.

 

    	-14-

    	 

    

 

3.3           Additional
Charges. In addition to the Base Rent and Percentage Rent, (a) Tenant also will pay and discharge
as and when due and payable all other amounts, liabilities, obligations and Impositions that Tenant assumes or agrees to pay under
this Lease, and (b) in the event of any failure on the part of Tenant to pay any of those items referred to in clause (a) of this
Section 3.3, Tenant also will promptly pay and discharge every fine, penalty, interest and cost that may be added for non-payment
or late payment of such items (the items referred to in clauses (a) and (b) of this Section 3.3 being additional rent hereunder
and being referred to herein collectively as the “Additional Charges”), and Landlord shall have all legal, equitable
and contractual rights, powers and remedies provided either in this Lease or by statute or otherwise in the case of non-payment
of the Additional Charges as in the case of non-payment of the Base Rent, including, but not limited to, the right, but not the
obligation to pay such Additional Charges on behalf of the Tenant and to require reimbursement thereof by Tenant, together with
interest thereon at the Overdue Rate. If any installment of Base Rent, Percentage Rent or Additional Charges (but only as to those
Additional Charges that are payable directly to Landlord) shall not be paid on its due date, Tenant will pay Landlord on demand,
as Additional Charges, a late charge (to the extent permitted by law) computed at the Overdue Rate on the amount of such installment,
from the due date of such installment to the date of payment thereof. To the extent that Tenant pays any Additional Charges to
Landlord pursuant to any requirement of this Lease, Tenant shall be relieved of its obligation to pay such Additional Charges
to the entity to which they would otherwise be due and Landlord shall pay same from monies received from Tenant.

 

3.4           Net
Lease Provision. The Rent shall be paid absolutely net to Landlord, so that this Lease
shall yield to Landlord the full amount of the installments of Base Rent, Percentage Rent and Additional Charges throughout the
Term, all as more fully set forth in Section 5, but subject to any other provisions of this Lease that expressly provide for adjustment
or abatement of Rent or other charges or expressly provide that certain expenses or maintenance shall be paid or performed by
Landlord.

 

    	-15-

    	 

    

 

3.5           Conversion
of Property. If, during the Term, Tenant wishes to cease food and beverage operations or institute
food and beverage operations at the Facility (all in accordance with the requirements of any applicable Franchise Agreement),
Tenant shall give notice of such desire to Landlord. If, during the Term, Landlord wishes (a) Tenant to cease food and beverage
operations or to institute food and beverage operations at the Facility (all in accordance with the requirements of any applicable
Franchise Agreement), or (b) to change the franchise affiliation of the Facility or to make substantial renovations to the Facility,
Landlord shall give notice thereof to Tenant. Following any such notice, Landlord and Tenant shall commence negotiations to adjust
Rent to reflect the proposed renovation or change to the operation of the Facility, each acting reasonably and in good faith,
and subject to Landlord’s reasonable satisfaction that any Rent adjustment will not adversely affect REIT’s status
as a real estate investment trust under the Code. All other terms of this Lease will remain substantially the same. During negotiations,
which shall not extend beyond sixty (60) days, Tenant shall not “convert” the Facility and Landlord shall not change
the franchise or commence substantial renovations and Tenant shall continue fulfilling its obligations under the existing terms
of this Lease. If no agreement is reached after such sixty (60) day period, Tenant or Landlord, as appropriate, shall withdraw
such notice and this Lease shall continue in full force.

 

SECTION 4.

 

4.1           Payment
of Impositions. Subject to Section 12 relating to permitted contests, Tenant will pay, or cause
to be paid, all Impositions (other than Real Estate Taxes and personal property taxes, which shall be paid by Landlord) before
any fine, penalty, interest or cost may be added for non-payment, such payments to be made directly to the taxing or other authorities
where feasible, and will promptly furnish to Landlord copies of official receipts or other satisfactory proof evidencing such
payments. Tenant’s obligation to pay such Impositions shall be deemed absolutely fixed upon the date such Impositions become
a lien upon the Leased Property or any part thereof. If any such Imposition may, at the option of the taxpayer, lawfully be paid
in installments (whether or not interest shall accrue on the unpaid balance of such Imposition), Tenant may exercise the option
to pay the same (and any accrued interest on the unpaid balance of such Imposition) in installments and in such event, shall pay
such installments during the Term hereof (subject to Tenant’s right of contest pursuant to the provisions of Section 12)
as the same respectively become due and before any fine, penalty, premium, further interest or cost may be added thereto. Landlord,
at its expense, shall, to the extent required or permitted by applicable law, prepare and file all tax returns in respect of Landlord’s
net income, gross receipts, sales and use, single business, transaction privilege, rent, ad valorem, franchise taxes, Real Estate
Taxes, personal property taxes and taxes on its capital stock, and Tenant, at its expense, shall, to the extent required or permitted
by applicable laws and regulations, prepare and file all other tax returns and reports in respect of any Imposition as may be
required by governmental authorities. If any refund shall be due from any taxing authority in respect of any Imposition paid by
Tenant, the same shall be paid over to or retained by Tenant if no Event of Default shall have occurred hereunder and be continuing.
If an Event of Default shall have occurred and be continuing, any such refund shall be paid over to or retained by Landlord. Any
such funds retained by Landlord due to an Event of Default shall be applied as provided in Section 16. Landlord and Tenant shall,
upon request of the other, provide such data as is maintained by the party to whom the request is made with respect to the Leased
Property as may be necessary to prepare any required returns and reports. Landlord shall file all personal property tax returns
in such jurisdictions where it is legally required to so file. Tenant, to the extent it possesses the same, will provide Landlord,
upon request, with cost and depreciation records necessary for filing returns for any property so classified as personal property.
Where Landlord is legally required to file personal property tax returns, to the extent it possesses the same, Tenant shall provide
Landlord with copies of assessment notices in sufficient time for Landlord to file such tax returns and to file a protest. Landlord
may protest, appeal, or institute such other proceedings as it may deem appropriate to effect a reduction of real estate or personal
property assessments and Tenant shall fully cooperate with Landlord in such protest, appeal, or other action. Landlord hereby
agrees to indemnify, defend, and hold harmless Tenant from and against any claims, obligations, and liabilities against or incurred
by Tenant in connection with such cooperation.

 

    	-16-

    	 

    

 

4.2           Notice
of Impositions. To the extent Landlord is notified of any Impositions, Landlord shall give prompt
Notice to Tenant of such Impositions payable by Tenant hereunder, provided that Landlord’s failure to give any such Notice
shall in no way diminish Tenant’s obligations hereunder to pay such Impositions, but such failure shall obviate any default
hereunder for a reasonable time after Tenant receives Notice of any Imposition which it is obligated to pay during the first taxing
period applicable thereto.

 

4.3           Adjustment
of Impositions. Impositions imposed in respect of the tax-fiscal period during which the Term
terminates shall be adjusted and prorated between Landlord and Tenant, whether or not such Imposition is imposed before or after
such termination, and Tenant’s obligation to pay its prorated share thereof after termination shall survive such termination.

 

4.4           Utility
Charges. Landlord and Tenant will cooperate in obtaining and maintaining utility services to
the Leased Property. Landlord will pay or cause to be paid all charges for electricity, gas, oil, water, sewer and other utilities
used in the Leased Property during the Term; provided that Tenant may obtain and maintain utility services to the Leased Property
and Landlord may credit such charges against Rent or otherwise reimburse Tenant for such charges.

 

4.5           Insurance
Premiums. Tenant will pay or cause to be paid all premiums for the insurance coverages required
to be maintained by it under Section 13.

 

SECTION 5.

 

5.1           No
Termination, Abatement, etc.. Except as otherwise specifically provided in this Lease, and except
for loss of the Franchise Agreement solely by reason of any action or inaction by Landlord, Tenant, to the extent permitted by
law, shall remain bound by this Lease in accordance with its terms and shall neither take any action without the written consent
of Landlord to modify, surrender or terminate the same, nor seek nor be entitled to any abatement, deduction, deferment or reduction
of the Rent, or setoff against the Rent, nor shall the obligations of Tenant be otherwise affected by reason of (a) any damage
to, or destruction of, any Leased Property or any portion thereof from whatever cause or any Taking of the Leased Property or
any portion thereof, (b) the lawful or unlawful prohibition of, or restriction upon, Tenant’s use of the Leased Property,
or any portion thereof, or the interference with such use by any Person, corporation, partnership or other entity, or by reason
of eviction by paramount title, (c) any claim which Tenant has or might have against Landlord by reason of any default or breach
of any warranty by Landlord under this Lease or any other agreement between Landlord and Tenant, or to which Landlord and Tenant
are parties, (d) any bankruptcy, insolvency, reorganization, composition, readjustment, liquidation, dissolution, winding up or
other proceedings affecting Landlord or any assignee or transferee of Landlord, or (e) for any other cause whether similar or
dissimilar to any of the foregoing other than a discharge of Tenant from any such obligations as a matter of law. Tenant hereby
specifically waives all rights, arising from any occurrence whatsoever, which may now or hereafter be conferred upon it by law
to (1) modify, surrender or terminate this Lease or quit or surrender the Leased Property or any portion thereof, or (2) entitle
Tenant to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Tenant hereunder, except as otherwise
specifically provided in this Lease. The obligations of Tenant hereunder shall be separate and independent covenants and agreements
and the Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events unless the obligations
to pay the same shall be terminated pursuant to the express provisions of this Lease or by termination of this Lease other than
by reason of an Event of Default.

 

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5.2           Abatement
Procedures. In the event of a partial Taking as described in Section 15.5, the Lease shall not
terminate, but the Base Rent shall be abated in the manner and to the extent that is fair, just and equitable to both Tenant and
Landlord, taking into consideration, among other relevant factors, the number of usable rooms, the amount of square footage, or
the revenue affected by such partial Taking. If Landlord and Tenant are unable to agree upon the amount of such abatement within
thirty (30) days after such partial Taking, the matter may be submitted by either party to a court of competent jurisdiction for
resolution.

 

SECTION 6.

 

6.1           Ownership
of the Leased Property. Tenant acknowledges that the Leased Property is the property of Landlord
and that Tenant has only the right to the possession and use of the Leased Property upon the terms and conditions of this Lease.

 

6.2           Tenant’s
Personal Property. Tenant will acquire and maintain throughout the Term such Inventory as is
required to operate the Leased Property in the manner contemplated by this Lease. Tenant may (and shall as provided hereinbelow),
at its expense, install, affix or assemble or place on any parcels of the Land or in any of the Leased Improvements, any items
of personal property (including Inventory) owned by Tenant. Tenant, at the commencement of the Term, and from time to time thereafter,
shall provide Landlord with an accurate list of all such items of Tenant’s personal property (collectively, the “Tenant’s
Personal Property”). Tenant may, subject to the first sentence of this Section 6.2 and the conditions set forth below, remove
any of Tenant’s Personal Property set forth on such list at any time during the Term or upon the expiration or any prior
termination of the Term. All of Tenant’s Personal Property, other than Inventory, not removed by Tenant within ten (10)
days following the expiration or earlier termination of the Term shall be considered abandoned by Tenant and may be appropriated,
sold, destroyed or otherwise disposed of by Landlord without first giving Notice thereof to Tenant, without any payment to Tenant
and without any obligation to account therefor. Tenant will, at its expense, restore the Leased Property to the condition required
by Section 9.1(d), including repair of all damage to the Leased Property caused by the removal of Tenant’s Personal Property,
whether effected by Tenant or Landlord. Upon the expiration or earlier termination of the Term, Tenant shall sell and Landlord,
or its designee, shall purchase all Inventory on hand at the Leased Property at the time of such expiration or termination for
a sale price equal to Tenant’s actual cost of such Inventory, as evidenced by invoices, receipts, or other reasonable documentation.
Tenant may make such financing arrangements, title retention agreements, leases or other agreements with respect to the Tenant’s
Personal Property as it sees fit provided that Tenant first advises Landlord of any such arrangement and such arrangement expressly
provides that in the event of Tenant’s default thereunder, Landlord (or its designee) may assume Tenant’s obligations
and rights under such arrangement.

 

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6.3           Landlord’s
Lien. To the fullest extent permitted by applicable law, Landlord is granted a lien and security
interest on all Tenant’s personal property now or hereinafter placed in or upon the Leased Property, and such lien and security
interest shall remain attached to such Tenant’s personal property until payment in full of all Rent and satisfaction of
all of Tenant’s obligations hereunder; provided, however, Landlord shall subordinate its lien and security interest to that
of any non-Affiliate of Tenant which finances such Tenant’s personal property or any non-Affiliate conditional seller of
such Tenant’s personal property, the terms and conditions of such subordination to be satisfactory to Landlord in the exercise
of reasonable discretion. Tenant shall, upon the request of Landlord, execute such financing statements or other documents or
instruments reasonably requested by Landlord to perfect the lien and security interests herein granted.

 

SECTION 7.

 

7.1           Condition
of the Leased Property. Tenant acknowledges receipt and delivery of possession of the Leased
Property. Tenant has examined and otherwise has knowledge of the condition of the Leased Property and has found the same to be
satisfactory for its purposes hereunder. Tenant is leasing the Leased Property “as is” in its present condition. Tenant
waives any claim or action against Landlord in respect of the condition of the Leased Property. LANDLORD MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY, OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE,
DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN,
LATENT OR PATENT, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE. LESSEE ACKNOWLEDGES THAT THE LEASED PROPERTY
HAS BEEN INSPECTED BY LESSEE AND IS SATISFACTORY TO IT. Provided, however, to the extent permitted by law, Landlord hereby assigns
to Tenant all of Landlord’s rights to proceed against any predecessor in title other than Tenant for breaches of warranties
or representations or for latent defects in the Leased Property. Landlord shall fully cooperate with Tenant in the prosecution
of any such claim, in Landlord’s or Tenant’s name, all at Tenant’s sole cost and expense. Tenant hereby agrees
to indemnify, defend and hold harmless Landlord from and against any claims, obligations and liabilities against or incurred by
Landlord in connection with such cooperation.

 

7.2           Use
of the Leased Property.

 

(a)          Tenant
covenants that it will proceed with all due diligence and will exercise its best efforts to obtain and to maintain all approvals
needed to use and operate the Leased Property and the Facility under applicable local, state and federal law.

 

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(b)          Tenant
shall use or cause to be used the Leased Property only as a hotel facility, and for such other uses as may be necessary or incidental
to such use or such other use as otherwise approved by Landlord (the “Primary Intended Use”). Tenant shall not
use the Leased Property or any portion thereof for any other use without the prior written consent of Landlord, which consent may
be granted, denied or conditioned in Landlord’s sole discretion. No use shall be made or permitted to be made of the Leased
Property, and no acts shall be done, which will cause the cancellation or increase the premium of any insurance policy covering
the Leased Property or any part thereof (unless another adequate policy satisfactory to Landlord is available and Tenant pays any
premium increase), nor shall Tenant sell or permit to be kept, used or sold in or about the Leased Property any article which may
be prohibited by law or fire underwriter’s regulations. Tenant shall, at its sole cost, comply with all of the requirements
pertaining to the Leased Property of any insurance board, association, organization or company necessary for the maintenance of
insurance, as herein provided, covering the Leased Property and Tenant’s Personal Property.

 

(c)          Subject
to the provisions of Sections 14 and 15, 20 and 21, Tenant covenants and agrees that during the Term it will (1) operate continuously
the Leased Property as a hotel facility, (2) keep in full force and effect and comply with all the provisions of the Franchise
Agreement (other than requirements with respect to Capital Improvements), (3) not terminate or amend the Franchise Agreement without
the consent of Landlord, (4) maintain appropriate certifications and licenses for such use and (5) will seek to maximize the gross
revenue generated therefrom consistent with sound business practices.

 

(d)          Tenant
shall not commit or suffer to be committed any waste on the Leased Property, or in the Facility, nor shall Tenant cause or permit
any nuisance thereon.

 

(e)          Tenant
shall neither suffer nor permit the Leased Property or any portion thereof, or Tenant’s Personal Property, to be used in
such a manner as (1) might reasonably tend to impair Landlord’s (or Tenant’s, as the case may be) title thereto or
to any portion thereof, or (2) may reasonably make possible a claim or claims of adverse usage or adverse possession by the public,
as such, or of implied dedication of the Leased Property or any portion thereof, except as necessary in the ordinary and prudent
operation of the Facility on the Leased Property.

 

(f)          Throughout
the Term, neither Tenant nor any Affiliate of Tenant shall own, lease, operate, manage, franchise or have any interest in any hotel
or motel that is within a five (5) mile radius of any hotel or motel property in which Landlord or an Affiliate of Landlord has
an interest on the date Tenant or its Affiliate would otherwise commence operating or managing such property, other than pursuant
to this Lease or another lease, agreement or arrangement with Landlord or an Affiliate of Landlord. Tenant agrees to notify Landlord,
from time to time at the request of Landlord, of the location of any hotel or motel property the Tenant or any Affiliate owns,
leases, operates, manages or has an interest in. Landlord agrees to notify Tenant, from time to time at the request of Tenant,
of the location of any hotel or motel property in which Landlord or an Affiliate of Landlord has an interest. At the request of
Landlord, Tenant shall provide such information as Landlord may reasonably request in order to confirm to the Landlord that the
requirements of this Section 7.2(f) are satisfied.

 

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7.3           Landlord
to Grant Easements, etc.. Landlord will, from time to time, so long as no Event of Default has
occurred and is continuing, at the request of Tenant and at Tenant’s cost and expense (but subject to the approval of Landlord,
which approval shall not be unreasonably withheld or delayed), (a) grant easements and other rights in the nature of easements
with respect to the Leased Property to third parties, (b) release existing easements or other rights in the nature of easements
which are for the benefit of the Leased Property, (c) dedicate or transfer unimproved portions of the Leased Property for road,
highway or other public purposes, (d) execute petitions to have the Leased Property annexed to any municipal corporation or utility
district, (e) execute amendments to any covenants and restrictions affecting the Leased Property and (f) execute and deliver to
any person any instrument appropriate to confirm or effect such grants, releases, dedications, transfers, petitions and amendments
(to the extent of its interests in the Leased Property), but only upon delivery to Landlord of an Officer’s Certificate
stating that such grant, release, dedication, transfer, petition or amendment is not detrimental to the proper conduct of the
business of Tenant on the Leased Property and does not materially reduce the value of the Leased Property.

 

SECTION 8.

 

8.1          Compliance
with Legal and Insurance Requirements, etc. Subject to Section 8.3(b) below and
Section 12 relating to permitted contests, and subject further to the obligations of Landlord with respect to Capital Improvements
as set forth in Section 9.1(b), Tenant, at its expense, will promptly (a) comply with all applicable Legal Requirements and Insurance
Requirements in respect of the use, operation, maintenance, repair and restoration of the Leased Property, and (b) procure, maintain
and comply with all appropriate licenses and other authorizations required for any use of the Leased Property and Tenant’s
Personal Property then being made, and for the proper erection, installation, operation and maintenance of the Leased Property
or any part thereof.

 

8.2           Legal
Requirement Covenants. Subject to Section 8.3(b) below, Tenant covenants and agrees that the
Leased Property and Tenant’s Personal Property shall not be used for any unlawful purpose, and that Tenant shall not permit
or suffer to exist any unlawful use of the Leased Property by others. Tenant shall acquire and maintain all appropriate licenses,
certifications, permits and other authorizations and approvals needed to operate the Leased Property in its customary manner for
the Primary Intended Use, and any other lawful use conducted on the Leased Property as may be permitted from time to time hereunder.
Tenant further covenants and agrees that Tenant’s use of the Leased Property and maintenance, alteration, and operation
of the same, and all parts thereof, shall at all times conform to all Legal Requirements, unless the same are finally determined
by a court of competent jurisdiction to be unlawful (and Tenant shall cause all such sub-tenants, invitees or others to so comply
with all Legal Requirements). Tenant may, however, upon prior Notice to Landlord, contest the legality or applicability of any
such Legal Requirement or any licensure or certification decision if Tenant maintains such action in good faith, with due diligence,
without prejudice to Landlord’s rights hereunder, and at Tenant’s sole expense. If by the terms of any such Legal
Requirement compliance therewith pending the prosecution of any such proceeding may legally be delayed without the incurrence
of any lien, charge or liability of any kind against the Facility or Tenant’s leasehold interest therein and without subjecting
Tenant or Landlord to any liability, civil or criminal, for failure so to comply therewith, Tenant may delay compliance therewith
until the final determination of such proceeding. If any lien, charge or civil or criminal liability would be incurred by reason
of any such delay, Tenant, on the prior written consent of Landlord, which consent shall not be unreasonably withheld, may nonetheless
contest as aforesaid and delay as aforesaid provided that such delay would not subject Landlord to criminal liability and Tenant
both (a) furnishes to Landlord security reasonably satisfactory to Landlord against any loss or injury by reason of such contest
or delay and (b) prosecutes the contest with due diligence and in good faith.

 

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8.3           Environmental
Covenants. Landlord and Tenant (in addition to, and not in diminution of, Tenant’s covenants
and undertakings in Sections 8.1 and 8.2 hereof) covenant and agree as follows:

 

(a)          At
all times hereafter until such time as all liabilities, duties or obligations of Tenant to the Landlord under the Lease have been
satisfied in full, Tenant shall fully comply with all Environmental Laws applicable to the Leased Property and the operations thereon,
subject to the obligations of Landlord with respect to Capital Improvements as set forth in Section 9.1(b) unless caused by the
acts or grossly negligent failures to act of Tenant. Tenant agrees to give Landlord written notice of the following, promptly after
Tenant receives knowledge thereof: (1) all Environmental Liabilities; (2) all pending, threatened or anticipated Proceedings, and
all notices, demands, requests or investigations, relating to any Environmental Liability or relating to the issuance, revocation
or change in any Environmental Authorization required for operation of the Leased Property; (3) all Releases at, on, in, under
or in any way affecting the Leased Property, or any Release at, on, in or under any property adjacent to the Leased Property; and
(4) all facts, events or conditions that could reasonably lead to the occurrence of any of the above-referenced matters.

 

(b)          Landlord
hereby agrees to defend, indemnify and save harmless any and all Tenant Indemnified Parties from and against any and all Environmental
Liabilities other than Environmental Liabilities which were caused by the intentionally wrongful acts or negligent acts or negligent
failures to act of Tenant; provided, however, that any successor Landlord, including any lender of the Landlord under any mortgage
encumbering the Leased Property that becomes a successor Landlord, shall have no liability under this Section 8.3(b) unless Environmental
Liabilities are caused by such successor Landlord’s intentionally wrongful acts or grossly negligent acts or grossly negligent
failures to act.

 

(c)          Tenant
hereby agrees to defend, indemnify and save harmless any and all Landlord Indemnified Parties from and against any and all Environmental
Liabilities caused by the intentionally wrongful acts or negligent acts or negligent failures to act of Tenant.

 

(d)          If
any Proceeding is brought against any Indemnified Party in respect of an Environmental Liability with respect to which such Indemnified
Party may claim indemnification under either Section 8.3(b) or (c), the Indemnifying Party, upon request, shall at its sole expense
resist and defend such Proceeding, or cause the same to be resisted and defended by counsel designated by the Indemnified Party
and approved by the Indemnifying Party, which approval shall not be unreasonably withheld; provided, however, that such approval
shall not be required in the case of defense by counsel designated by any insurance company undertaking such defense pursuant to
any applicable policy of insurance. Each Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel will be at the sole expense of such Indemnified
Party unless such counsel has been approved by the Indemnifying Party, which approval shall not be unreasonably withheld. The Indemnifying
Party shall not be liable for any settlement of any such Proceeding made without its consent, which shall not be unreasonably withheld,
but if settled with the consent of the Indemnifying Party, or if settled without its consent (if its consent shall be unreasonably
withheld), or if there be a final, nonappealable judgment for an adversary party in any such Proceeding, the Indemnifying Party
shall indemnify and hold harmless the Indemnified Parties from and against any liabilities incurred by such Indemnified Parties
by reason of such settlement or judgment.

 

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(e)          At
any time any Indemnified Party has reason to believe circumstances exist which could reasonably result in an Environmental Liability,
upon reasonable prior written notice to Tenant stating such Indemnified Party’s basis for such belief, an Indemnified Party
shall be given immediate access to the Leased Property (including, but not limited to, the right to enter upon, investigate, drill
wells, take soil borings, excavate, monitor, test, cap and use available land for the testing of remedial technologies), Tenant’s
employees, and to all relevant documents and records regarding the matter as to which a responsibility, liability or obligation
is asserted or which is the subject of any Proceeding; provided that such access may be conditioned or restricted as may be reasonably
necessary to ensure compliance with law and the safety of personnel and facilities or to protect confidential or privileged information.
All Indemnified Parties requesting such immediate access and cooperation shall endeavor to coordinate such efforts to result in
as minimal interruption of the operation of the Leased Property as practicable.

 

(f)          The
indemnification rights and obligations provided for in this Section 8 shall be in addition to any indemnification rights and obligations
provided for elsewhere in this Lease.

 

(g)          The
indemnification rights and obligations provided for in this Section 8 shall survive the termination of this Agreement.

 

For purposes of this
Section 8.3, all amounts for which any Indemnified Party seeks indemnification shall be computed net of (a) any actual income tax
benefit resulting therefrom to such Indemnified Party, (b) any insurance proceeds received (net of tax effects) with respect thereto,
and (c) any amounts recovered (net of tax effects) from any third parties based on claims the Indemnified Party has against such
third parties which reduce the damages that would otherwise be sustained; provided that in all cases, the timing of the receipt
or realization of insurance proceeds or income tax benefits or recoveries from third parties shall be taken into account in determining
the amount of reduction of damages. Each Indemnified Party agrees to use its reasonable efforts to pursue, or assign to Tenant
or Landlord, as the case may be, any claims or rights it may have against any third party which would materially reduce the amount
of damages otherwise incurred by such Indemnified Party.

 

Notwithstanding anything
to the contrary contained in this Agreement, if Landlord shall become entitled to the possession of the Leased Property by virtue
of the termination of the Lease or repossession of the Leased Property, then Landlord may assign its indemnification rights under
Section 8.3 of this Agreement (but not any other rights hereunder) to any Person to whom the Landlord subsequently transfers the
Leased Property, subject to the following conditions and limitations, each of which shall be deemed to be incorporated into the
terms of such assignment, whether or not specifically referred to therein:

 

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The indemnification
rights referred to in this section may be assigned only if a known Environmental Liability then exists or if a Proceeding is then
pending or, to the knowledge of Tenant or Landlord, then threatened with respect to the Leased Property;

 

Such indemnification
rights shall be limited to Environmental Liabilities relating to or specifically affecting the Leased Property; and

 

Any assignment of
such indemnification rights shall be limited to the immediate transferee of Landlord, and shall not extend to any such transferee’s
successors or assigns.

 

SECTION 9.

 

9.1           Maintenance
and Repair.

 

(a)          Except
as provided in Section 9.1(b) or Section 14, Tenant, at its sole expense, will keep the Leased Property in good order and repair
except for ordinary wear and tear (whether or not the need for such repairs occurred as a result of Tenant’s use, any prior
use, the elements or the age of the Leased Property, or any portion thereof), and, with reasonable promptness, make all necessary
and appropriate repairs, replacements, and improvements thereto of every kind and nature, whether interior or exterior, ordinary
or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior to the commencement of the Term of
this Lease (concealed or otherwise), or required by any governmental agency having jurisdiction over the Leased Property. Tenant,
however, shall be permitted to prosecute claims against Landlord’s predecessors in title for breach of any representation
or warranty or for any latent defects in the Leased Property to be maintained by Tenant unless Landlord is already diligently pursuing
such a claim. All repairs shall, to the extent reasonably achievable, be at least equivalent in quality to the original work. Tenant
will not take or omit to take any action, the taking or omission of which might materially impair the value or the usefulness of
the Leased Property or any part thereof for its Primary Intended Use.

 

(b)          Notwithstanding
Tenant’s obligations under Section 9.1(a) above or elsewhere in this Lease, unless caused by Tenant’s negligence or
willful misconduct or that of its employees or agents, Tenant shall not be responsible for any Capital Improvements, including
(without limitation) Capital Improvements required by the Franchisor under the Franchise Agreement. Landlord shall be responsible
for all Capital Improvements, subject to (i) Landlord’s right to approve the Capital Budget pursuant to Section 39, and (ii)
Landlord’s right in its sole discretion to refuse to make any Capital Expenditure required by the Franchisor; provided that,
if such refusal results in a default under or termination of the Franchise Agreement, Landlord shall be responsible for all damages,
termination payments payable by Tenant under the terms of the Franchise Agreement, application fees for a new franchise license
approved by Landlord, increased royalty fees and other costs arising out of such refusal or out of the resulting need to apply
for and enter into a substitute franchise license agreement. Except as set forth in the preceding sentence, Landlord shall not
under any circumstances be required to build or rebuild any improvement on the Leased Property, or to make any repairs, replacements,
alterations, restorations or renewals of any nature or description to the Leased Property, whether ordinary or extraordinary, foreseen
or unforeseen, or to make any expenditure whatsoever with respect thereto, in connection with this Lease, or to maintain the Leased
Property in any way. Tenant hereby waives, to the extent permitted by law, the right to make repairs at the expense of Landlord
pursuant to any law in effect at the time of the execution of this Lease or hereafter enacted. Landlord shall have the right to
give, record and post, as appropriate, notices of nonresponsibility under any mechanic’s lien laws now or hereafter existing.

 

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(c)          Nothing
contained in this Lease and no action or inaction by Landlord shall be construed as (1) constituting the request of Landlord, expressed
or implied, to any contractor, subcontractor, laborer, materialman or vendor to or for the performance of any labor or services
or the furnishing of any materials or other property for the construction, alteration, addition, repair or demolition of or to
the Leased Property or any part thereof, or (2) giving Tenant any right, power or permission to contract for or permit the performance
of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any
claim against Landlord in respect thereof or to make any agreement that may create, or in any way be the basis for any right, title,
interest, lien, claim or other encumbrance upon the estate of Landlord in the Leased Property, or any portion thereof.

 

(d)          Tenant
will, upon the expiration or prior termination of the Term, vacate and surrender the Leased Property to Landlord in the condition
in which the Leased Property was originally received from Landlord, except as repaired, rebuilt, restored, altered or added to
as permitted or required by the provisions of this Lease and except for ordinary wear and tear (subject to the obligation of Tenant
to maintain the Leased Property in good order and repair, as would a prudent owner, during the entire Term of the Lease, to the
extent required in Section 9.1(a)), or damage by casualty or Condemnation (subject to the obligations of Tenant to restore or repair
as set forth in the Lease.)

 

9.2           Encroachments,
Restrictions, Etc.. If any of the Leased Improvements, at any time, materially encroach upon
any property, street or right-of-way adjacent to the Leased Property, or violate the agreements or conditions contained in any
lawful restrictive covenant or other agreement affecting the Leased Property, or any part thereof, or impair the rights of others
under any easement or right-of-way to which the Leased Property is subject, then promptly upon the request of Landlord or at the
behest of any person affected by any such encroachment, violation or impairment, Tenant shall, at its expense, subject to its
right to contest the existence of any encroachment, violation or impairment and in such case, in the event of an adverse final
determination, either (a) obtain valid and effective waivers or settlements of all claims, liabilities and damages resulting from
each such encroachment, violation or impairment, whether the same shall affect Landlord or Tenant or (b) make such changes in
the Leased Improvements, and take such other actions, as Tenant in the good faith exercise of its judgment deems reasonably practicable
to remove such encroachment, and to end such violation or impairment, including, if necessary, the alteration of any of the Leased
Improvements, and in any event take all such actions as may be necessary in order to be able to continue the operation of the
Leased Improvements for the Primary Intended Use substantially in the manner and to the extent the Leased Improvements were operated
prior to the assertion of such violation, impairment or encroachment; provided, however, that any Capital Improvement
shall be the responsibility of Landlord. Any such alteration shall be made in conformity with the applicable requirements of Section
10. Tenant’s obligations under this Section 9.2 shall be in addition to and shall in no way discharge or diminish any obligation
of any insurer under any policy of title or other insurance held by Landlord.

 

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SECTION 10.

 

10.1         Alterations.
Tenant shall have the right to make additions, modifications or improvements to the Leased Property from time to time as Tenant,
in its discretion, may deem to be desirable for its permitted uses and purposes, provided that such action will not significantly
alter the character or purposes or significantly detract from the value or operating efficiency thereof and will not significantly
impair the revenue-producing capability of the Leased Property or adversely affect the ability of the Tenant to comply with the
provisions of this Lease. The cost of such additions, modifications or improvements to the Leased Property shall be paid by Tenant,
and all such additions, modifications and improvements shall, without payment by Landlord at any time, be included under the terms
of this Lease and upon expiration or earlier termination of this Lease shall pass to and become the property of Landlord.

 

10.2         Salvage.
All materials which are scrapped or removed in connection with the making of repairs required by Sections 9 or 10 shall be or
become the property of Landlord or Tenant depending on which party is paying for or providing the financing for such work.

 

10.3         Joint
Use Agreements. If Tenant constructs additional improvements that are connected to the Leased
Property or share maintenance facilities, HVAC, electrical, plumbing or other systems, utilities, parking or other amenities,
the parties shall enter into a mutually agreeable cross-easement or joint use agreement to make available necessary services and
facilities in connection with such additional improvements, to protect each of their respective interests in the properties affected,
and to provide for separate ownership, use, and/or financing of such improvements.

 

SECTION 11.

 

11.1         Liens.
Subject to the provision of Section 12 relating to permitted contests, Tenant will not directly or indirectly create or allow
to remain and will promptly discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon
the Leased Property or any attachment, levy, claim or encumbrance in respect of the Rent, not including, however, (a) this Lease,
(b) the matters, if any, included as exceptions in the title policy insuring Landlord’s interest in the Leased Property,
(c) restrictions, liens and other encumbrances which are consented to in writing by Landlord or any easements granted pursuant
to the provisions of Section 7.3 of this Lease, (d) liens for those taxes upon Landlord which Tenant is not required to pay hereunder,
(e) subleases permitted by Section 22 hereof, (f) liens for Impositions or for sums resulting from noncompliance with Legal Requirements
so long as (1) the same are not yet payable or are payable without the addition of any fine or penalty or (2) such liens are in
the process of being contested as permitted by Section 12, (g) liens of mechanics, laborers, materialmen, suppliers or vendors
for sums either disputed or not yet due provided that (1) the payment of such sums shall not be postponed under any related contract
for more than sixty (60) days after the completion of the action giving rise to such lien and such reserve or other appropriate
provisions as shall be required by law or generally accepted accounting principles shall have been made therefor or (2) any such
liens are in the process of being contested as permitted by Section 12 hereof, and (h) any liens which are the responsibility
of Landlord pursuant to the provisions of Section 33 of this Lease.

 

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SECTION 12.

 

12.1         Permitted
Contests. Tenant shall have the right to contest the amount or validity of any Imposition to
be paid by Tenant or any Legal Requirement or Insurance Requirement or any lien, attachment, levy, encumbrance, charge or claim
(“Claims”) not otherwise permitted by Section 11, by appropriate legal proceedings in good faith and with due diligence
(but this shall not be deemed or construed in any way to relieve, modify or extend Tenant’s covenants to pay or its covenants
to cause to be paid any such charges at the time and in the manner as in this Section provided), on condition, however, that such
legal proceedings shall not operate to relieve Tenant from its obligations hereunder and shall not cause the sale or risk the
loss of the Leased Property, or any part thereof, or cause Landlord or Tenant to be in default under any mortgage, deed of trust
or security deed encumbering the Leased Property or any interest therein. Upon the request of Landlord, Tenant shall either (a)
provide a bond or other assurance reasonably satisfactory to Landlord that all Claims which may be assessed against the Leased
Property together with interest and penalties, if any, thereon will be paid, or (b) deposit within the time otherwise required
for payment with a bank or trust company as trustee upon terms reasonably satisfactory to Landlord, as security for the payment
of such Claims, money in an amount sufficient to pay the same, together with interest and penalties in connection therewith, as
to all Claims which may be assessed against or become a Claim on the Leased Property, or any part thereof, in said legal proceedings.
Tenant shall furnish Landlord and any lender of Landlord with reasonable evidence of such deposit within five (5) days of the
same. Landlord agrees to join in any such proceedings if the same be required to legally prosecute such contest of the validity
of such Claims; provided, however, that Landlord shall not thereby be subjected to any liability for the payment
of any costs or expenses in connection with any proceedings brought by Tenant; and Tenant covenants to indemnify and save harmless
Landlord from any such costs or expenses. Tenant shall be entitled to any refund of any Claims and such charges and penalties
or interest thereon which have been paid by Tenant or paid by Landlord and for which Landlord has been fully reimbursed. In the
event that Tenant fails to pay any Claims when due or to provide the security therefor as provided in this Section 12.1 and to
diligently prosecute any contest of the same, Landlord may, upon ten (10) days advance Notice to Tenant, pay such charges together
with any interest and penalties and the same shall be repayable by Tenant to Landlord as Additional Charges at the next Payment
Date provided for in this Lease. Provided, however, that should Landlord reasonably determine that the giving of such Notice would
risk loss to the Leased Property or cause damage to Landlord, then Landlord shall give such Notice as is practical under the circumstances.
Landlord reserves the right to contest any of the Claims at its expense not pursued by Tenant. Landlord and Tenant agree to cooperate
in coordinating the contest of any claims.

 

SECTION 13.

 

13.1         General
Insurance Requirements. During the Term of this Lease, the Leased Property shall at all times
be insured with the kinds and amounts of insurance described below.

 

(a)          This
insurance shall be written by companies authorized to issue insurance in the State. The policies must name the party obtaining
the policy as the insured or as an additional named insured, as the case may be. Losses shall be payable to Landlord or Tenant
as provided in this Lease. Any loss adjustment shall require the written consent of Landlord and Tenant, each acting reasonably
and in good faith. Evidence of insurance shall be deposited with Landlord. The policies on the Leased Property, including the Leased
Improvements, Fixtures and Tenant’s Personal Property, shall include:

 

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(b)          Building
insurance on the “Special Form” (formerly “All Risk” form) (including earthquake and flood in reasonable
amounts as determined by Landlord) in an amount not less than one hundred percent (100%) of the then full replacement cost thereof
(as defined in Section 13.2) or such other amount which is acceptable to Landlord, and personal property insurance on the “Special
Form” in the full amount of the replacement cost thereof;

 

(c)          Insurance
for loss or damage (direct and indirect) from steam boilers, pressure vessels or similar apparatus, now or hereafter installed
in the Facility, in the minimum amount of $5,000,000 or in such greater amounts as are then customary or as may be reasonably requested
by Landlord from time to time;

 

(d)          Insurance
covering such other hazards and in such amounts as may be customary for comparable properties in the area of the Leased Property
and is available from insurance companies, insurance pools or other appropriate companies authorized to do business in the State
at rates which are economically practicable in relation to the risks covered as may be reasonably requested by Landlord;

 

(e)          Loss
of income insurance on the “Special Form”, in the amount of one year of Base Rent for the benefit of Landlord, and
business interruption insurance on the “Special Form” in the amount of one (1) year of gross profit, for the benefit
of Tenant;

 

(f)           Commercial
general liability insurance, with amounts not less than $10,000,000 covering each of the following: bodily injury, death, or property
damage liability per occurrence, personal and advertising injury, general aggregate, products and completed operations, with respect
to Landlord, and “all risk legal liability” (including liquor law or “dram shop” liability if liquor or
alcoholic beverages are served on the Leased Property) with respect to Landlord and Tenant;

 

(g)          Fidelity
bonds with limits and deductibles as may be reasonably requested by Landlord, covering Tenant’s employees in job classifications
normally bonded under prudent hotel management practices in the United States or otherwise required by law;

 

(h)          Workers’
compensation insurance to the extent necessary to protect Landlord and the Leased Property against Tenant’s workers’
compensation claims;

 

(i)          Vehicle
liability insurance for owned, non-owned, and hired vehicles, in the amount of $1,000,000;

 

(j)          Such
other insurance as Landlord may reasonably request for facilities such as the Leased Property and the operation thereof; and

 

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(k)          Tenant
shall obtain the insurance and pay the premiums for the coverages described in (d) through (i) above, and Landlord shall obtain
the insurance and pay the premiums for the coverages described in (a) through (c) above. The Tenant shall also be responsible for
any and all deductibles in connection with such coverages. In the event that the Landlord can obtain comparable insurance coverage
required to be carried by Tenant from comparable insurers at a cost significantly less than that at which Tenant can obtain such
coverage, the parties shall cooperate in good faith to obtain such coverage at the lower cost and the Tenant shall pay the premiums
therefor.

 

13.2         Replacement
Cost. The term “full replacement cost” as used herein shall mean the actual
replacement cost of the Leased Property requiring replacement from time to time including an increased cost of construction endorsement,
if available, and the cost of debris removal. In the event either party believes that full replacement cost (the then-replacement
cost less such exclusions) has increased or decreased at any time during the Lease Term, it shall have the right to have such
full replacement cost re-determined.

 

13.3         Worker’s
Compensation. Tenant, at its sole cost, shall at all times maintain adequate worker’s
compensation insurance coverage for all persons employed by Tenant on the Leased Property. Such worker’s compensation insurance
shall be in accordance with the requirements of applicable local, state and federal law.

 

13.4         Waiver
of Subrogation. All insurance policies carried by Landlord or Tenant covering the Leased Property,
the Fixtures, the Facility or Tenant’s Personal Property, including, without limitation, contents, fire and casualty insurance,
shall expressly waive any right of subrogation on the part of the insurer against the other party. The parties hereto agree that
their policies will include such waiver clause or endorsement so long as the same are obtainable without extra cost, and in the
event of such an extra charge the other party, at its election, may pay the same, but shall not be obligated to do so.

 

13.5         Form
Satisfactory, etc.. All of the policies of insurance referred to in this Section 13 shall be
written in a form, with deductibles and by insurance companies satisfactory to Landlord. Subject to the right to reimbursement
or credit specified in Section 13.1, the party responsible for obtaining any policy shall pay all of the premiums therefor, and
deliver such policies or certificates thereof to the other party prior to their effective date (and, with respect to any renewal
policy, thirty (30) days prior to the expiration of the existing policy), and in the event of the failure of the responsible party
either to effect such insurance as herein called for or to pay the premiums therefor, or to deliver such policies or certificates
thereof to the other party at the times required, such other party shall be entitled, but shall have no obligation, to effect
such insurance and pay the premiums therefor, and to be reimbursed upon written demand therefor. The responsible party’s
failure to repay the same within thirty (30) days after Notice of such failure shall constitute an Event of Default within the
meaning of Section 16.1(b). Each insurer mentioned in this Section shall agree, by endorsement to the policy or policies issued
by it, or by independent instrument furnished to the party not responsible hereunder for obtaining such policy, that it will give
thirty (30) days’ written notice before the policy or policies in question shall be materially altered, allowed to expire
or canceled.

 

13.6         Increase
in Limits. If either Landlord or Tenant at any time deems the limits of the personal injury
or property damage under the comprehensive public liability insurance then carried to be either excessive or insufficient, Landlord
or Tenant shall endeavor in good faith to agree on the proper and reasonable limits for such insurance to be carried and such
insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the provisions of this Section.

 

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13.7         Blanket
Policy. Notwithstanding anything to the contrary contained in this Section 13, Landlord may
bring the insurance provided for herein within the coverage of a so-called blanket policy or policies of insurance carried and
maintained by Landlord; provided, however, that the coverage afforded to Tenant will not be reduced or diminished or otherwise
be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason of the
use of such blanket policy of insurance, and provided further that the requirements of this Section 13 are otherwise satisfied.

 

13.8         No
Separate Insurance. Tenant shall not on Tenant’s own initiative or pursuant to the request
or requirement of any third party, take out separate insurance concurrent in form or contributing in the event of loss with that
required in this Section 13 to be furnished, or increase the amount of any then existing insurance by securing an additional policy
or additional policies, unless all parties having an insurable interest in the subject matter of the insurance, including in all
cases Landlord, are included therein as additional insureds, and the loss is payable under such additional separate insurance
in the same manner as losses are payable under this Lease. Tenant shall immediately notify Landlord that Tenant has obtained any
such separate insurance or of the increasing of any of the amounts of the then existing insurance.

 

SECTION 14.

 

14.1         Insurance
Proceeds. Subject to the provisions of Section 14.6, all proceeds payable by reason of any loss
or damage to the Leased Property, or any portion thereof, and insured under any policy of insurance required by Section 13 of
this Lease shall be paid to Landlord and held by Landlord in an interest-bearing account, shall be made available, if applicable,
for reconstruction or repair, as the case may be, of any damage to or destruction of the Leased Property, or any portion thereof,
and, if applicable, shall be paid out by Landlord from time to time for the reasonable costs of such reconstruction or repair
upon satisfaction of reasonable terms and conditions specified by Landlord. Any excess proceeds of insurance remaining after the
completion of the restoration or reconstruction of the Leased Property shall be paid to Landlord. If neither Landlord nor Tenant
is required or elects to repair and restore, all insurance proceeds shall be retained by Landlord. All salvage resulting from
any risk covered by insurance shall belong to Landlord.

 

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14.2         Reconstruction
in the Event of Damage or Destruction Covered by Insurance.

 

(a)          Except
as provided in Section 14.6, if during the Term the Leased Property is totally or partially destroyed by a risk covered by the
insurance described in Section 13, whether or not such damage or destruction renders the Facility Unsuitable for its Primary Intended
Use, Tenant shall be obligated, but only to the extent of any insurance proceeds made available to Tenant and any other sums advanced
by Landlord pursuant to the next sentence, to restore the Facility to substantially the same condition as existed immediately before
the damage or destruction and otherwise in accordance with the terms of the Lease. If the insurance proceeds are not adequate to
restore the Facility to that condition, each of Landlord and Tenant shall have the right to terminate this Lease, without in any
way affecting any other leases in effect between Landlord and Tenant, by giving Notice to the other and all insurance proceeds
shall be retained by Landlord; provided, however that, if such termination is by Tenant, Landlord shall have the
right, in its sole discretion, to nullify the termination and keep this Lease in full force by providing, within thirty (30) days
after Tenant’s Notice of termination, a Notice to Tenant of Landlord’s unconditional, legally binding obligation to
be responsible for all restoration costs in excess of the insurance proceeds. If this Lease is terminated by either party as aforesaid
(and such termination is not nullified by Landlord) and if the inadequacy of insurance proceeds was the result of Landlord’s
failure to maintain the proper insurance coverages as required pursuant to Section 13, Landlord shall, within one hundred eighty
(180) days after such termination, either (i) pay to Tenant the Fair Market Value of the leasehold estate hereunder as of the termination
date or (ii) offer to lease to Tenant one or more hotel facilities pursuant to one or more leases that would create for Tenant
leasehold estates having an aggregate Fair Market Value no less than the Fair Market Value of the leasehold estate hereunder, as
of the date of termination. If this Lease is not terminated and Tenant restores the Facility, the insurance proceeds, and any other
sums made available by Landlord as aforesaid, shall be paid out by Landlord from time to time for the reasonable costs of such
restoration upon satisfaction of reasonable terms and conditions, and any excess proceeds remaining after such restoration shall
be retained by Landlord.

 

(b)          Notwithstanding
the provisions of Section 14.2(a) above, if Tenant cannot within a reasonable time obtain all necessary government approvals, including
building permits, licenses and conditional use permits, after diligent efforts to do so, to perform all required repair and restoration
work and to operate the Facility for its Primary Intended Use in substantially the same manner as that existing immediately prior
to such damage or destruction and otherwise in accordance with the terms of the Lease, either Landlord or Tenant may terminate
this Lease by providing Notice to the other party, without in any way affecting any other Leases then in effect between Landlord
and Tenant.

 

14.3         Reconstruction
in the Event of Damage or Destruction Not Covered by Insurance. Except as provided in Section
14.6, if during the Term the Facility is totally or materially destroyed by a risk not covered by the insurance described in Section
13, whether or not such damage or destruction renders the Facility Unsuitable for its Primary Intended Use, the provisions of
Section 14.2 applicable to casualties for which insurance proceeds are inadequate shall govern.

 

14.4         Tenant’s
Property. All insurance proceeds payable by reason of any loss of or damage to any of Tenant’s
Personal Property shall be paid to Tenant; provided, however, no such payments shall diminish or reduce the insurance payments
otherwise payable to or for the benefit of Landlord hereunder.

 

14.5         Abatement
of Rent. Any damage or destruction due to casualty notwithstanding, this Lease shall remain
in full force and effect and Tenant’s obligation to make rental payments and to pay all other charges required by this Lease
shall remain unabated by any damage or destruction which does not result in a reduction of Gross Revenue. If and to the extent
that any damage or destruction results in a reduction of Gross Revenue which would otherwise be realizable from the operation
of the Facility, then Landlord shall receive all loss of income insurance and Tenant shall have no obligation to pay Rent in excess
of the amount of Percentage Rent, if any, realizable from Gross Revenues generated by the operation of the Facility during the
existence of such damage or destruction; provided, however, that if such damage or destruction was caused by Tenant’s
gross negligence or willful misconduct, Tenant shall remain liable for the amount of Rent which would have been payable hereunder
at a rate equal to the average Rent during the last two preceding 12-month Lease Years (or if two 12- month Lease Years have not
elapsed, the average during the preceding 12-month Lease Year, or if one Lease Year has not elapsed, the amount derived by annualizing
the Rent from the Commencement Date of this Lease), as if such damage or destruction had not occurred.

 

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14.6         Damage
Near End of Term. Notwithstanding any provisions of Section 14.2 or 14.3 appearing to the contrary, if damage to or destruction
of the Facility unsuitable for its Primary Intended Use occurs during the last twelve (12) months of the Term, then Tenant shall
have the right to terminate this Lease by giving written notice to Tenant within thirty (30) days after the date of damage or
destruction, whereupon all accrued Rent shall be paid immediately, and this Lease shall automatically terminate five days after
the date of such notice.

 

14.7         Waiver.
Tenant hereby waives any statutory rights of termination that may arise by reason of any damage or destruction of the Facility
that Landlord is obligated to restore or may restore under any of the provisions of this Lease.

 

SECTION 15.

 

15.1         Definitions.

 

(a)          “Condemnation”
means a Taking resulting from (1) the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor,
and (2) a voluntary sale or transfer by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings
for condemnation are pending.

 

(b)          “Date
of Taking” means the date the Condemnor has the right to possession of the property being condemned.

 

(c)          “Award”
means all compensation, sums or anything of value awarded, paid or received on a total or partial Condemnation.

 

(d)          “Condemnor”
means any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

15.2         Parties’
Rights and Obligations. If during the Term there is any Condemnation of all or any part of the Leased Property or any interest
in this Lease, the rights and obligations of Landlord and Tenant shall be determined by this Section 15.2.

 

15.3         Total
Taking. If title to the fee of the whole of the Leased Property is condemned by any Condemnor,
this Lease shall cease and terminate as of the Date of Taking by the Condemnor, without in any way affecting any other Leases
then in effect between Landlord and Tenant. If title to the fee of less than the whole of the Leased Property is so taken or condemned,
which nevertheless renders the Leased Property Unsuitable or Uneconomic for its Primary Intended Use, Tenant and Landlord shall
each have the option, by notice to the other, at any time prior to the Date of Taking, to terminate this Lease as of the Date
of Taking. Upon such date, if such Notice has been given, this Lease shall thereupon cease and terminate. All Base Rent, Percentage
Rent and Additional Charges paid or payable by Tenant hereunder shall be apportioned as of the Date of Taking, and Tenant shall
promptly pay Landlord such amounts.

 

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15.4         Allocation
of Award. The total Award made with respect to the Leased Property in connection
with a Total Taking shall be equitably apportioned between Landlord and Tenant in proportion to the then fair market values of
the respective estates and interests of Landlord and Tenant in and to the Leased Property and under this Lease.

 

15.5         Partial
Taking. If title to less than the whole of the Leased Property is condemned, and the Leased
Property is still suitable for its Primary Intended Use, and not Uneconomic for its Primary Intended Use, or if Tenant or Landlord
is entitled but neither elects not to terminate this Lease as provided in Section 15.3, Tenant at its cost shall with all reasonable
dispatch , but only to the extent of any condemnation awards made available to Tenant and any other sums advanced by Landlord
pursuant to the next sentence, restore the untaken portion of any Leased Improvements so that such Leased Improvements constitute
a complete architectural unit of the same general character and condition (as nearly as may be possible under the circumstances)
as the Leased Improvements existing immediately prior to the Condemnation. If the condemnation awards are not adequate to restore
the Facility to that condition, each of Landlord and Tenant shall have the right to terminate this Lease, without in any way affecting
any other leases in effect between Landlord and Tenant, by giving Notice to the other; provided, however that, if such termination
is by Tenant, Landlord shall have the right, in its sole discretion, to nullify the termination and keep this Lease in full force
by providing, within thirty (30) days after Tenant’s Notice of termination, a Notice to Tenant of Landlord’s unconditional,
legally binding obligation to be responsible for all restoration costs in excess of the condemnation awards. If this Lease is
not terminated and Tenant restores the Facility, the condemnation awards, and any other sums made available by Landlord as aforesaid,
shall be held in trust by Landlord and paid out by Landlord from time to time for the reasonable costs of such restoration upon
satisfaction of reasonable terms and conditions, and any excess awards remaining after such restoration shall be retained by Landlord
unless the partial condemnation materially impairs the operations or financial performance of the Facility, in which latter event
the award shall be equitably apportioned between Landlord and Tenant in proportion to the then fair market values of the respective
estates and interests of Landlord and Tenant in and to the Leased Property and under this Lease.

 

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15.6         Temporary
Taking. If the whole or any part of the Leased Property or of Tenant’s interest
under this Lease is condemned by any Condemnor for its temporary use or occupancy, this Lease shall not terminate by reason thereof,
and Tenant shall continue to pay, in the manner and at the terms herein specified, the full amounts of Base Rent and Additional
Charges. In addition, the entire amount of any Award made for such Condemnation allocable to the Term of this Lease, whether paid
by way of damages, rent or otherwise, shall be paid to Tenant and, except for any portion thereof utilized for restoration, shall
be deemed to be Room Revenue for the purpose of calculating the Percentage Rent payable hereunder during such temporary taking.
Except only to the extent that Tenant may be prevented from so doing pursuant to the terms of the order of the Condemnor, Tenant
shall continue to perform and observe all of the other terms, covenants, conditions and obligations hereof on the part of the
Tenant to be performed and observed, as though such Condemnation had not occurred. Tenant covenants that upon the termination
of any such period of temporary use or occupancy it will, at its sole cost and expense (subject to Landlord’s contribution
as set forth below), restore the Leased Property as nearly as may be reasonably possible to the condition in which the same was
immediately prior to such Condemnation, unless (a) such period of temporary use or occupancy extends beyond the expiration of
the Term, in which case Tenant shall not be required to make such restoration, or (b) the condemnation award is inadequate to
cover the costs of such restoration, in which case the provisions of Section 15.5 applicable to inadequate awards shall govern.
If restoration is required in connection with such temporary taking and the condemnation award (together with any other sums Landlord
elects, in its sole discretion, to advance) is adequate to pay the costs thereof, the provisions of Section 15.5 shall govern
the disbursement of the awards (and other sums, if applicable) and the disposition of any awards in excess of restoration costs.
If restoration is required hereunder, Landlord shall contribute to the cost of such restoration that portion of its entire Award
that is specifically allocated to such restoration in the judgment or order of the court, if any, and Tenant shall fund the balance
of such costs in advance of restoration in a manner reasonably satisfactory to Landlord.

 

SECTION 16.

 

16.1         Events
of Default. If any one or more of the following events (individually, an “Event of
Default”) occurs:

 

(a)          if
Tenant fails to make payment of the Base Rent when the same becomes due and payable for a period of ten (10) days after receipt
by the Tenant of Notice from the Landlord thereof;

 

(b)          if
Tenant fails to make payment of quarterly Percentage Rent when the same becomes due and payable and such condition continues for
a period of ten (10) days after receipt by the Tenant of Notice from the Landlord thereof;

 

(c)          if
Tenant fails to observe or perform any term, covenant or condition of this Lease, other than the payment of Rent, and such failure
is not cured by Tenant within a period of thirty (30) days after receipt by the Tenant of Notice thereof from Landlord, unless
such failure cannot with due diligence be cured within a period of thirty (30) days, in which case it shall not be deemed an Event
of Default if Tenant proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof provided,
however, in no event shall such cure period extend beyond ninety (90) days after such Notice; provided, however,
that a failure of Tenant to observe or perform any covenant contained in Section 18 hereof shall result in an immediate Event of
Default and there shall be no cure period applicable thereto; or

 

(d)          if
the Tenant shall file a petition in bankruptcy or reorganization for an arrangement pursuant to any federal or state bankruptcy
law or any similar federal or state law, or shall be adjudicated a bankrupt or shall make an assignment for the benefit of creditors
or shall admit in writing its inability to pay its debts generally as they become due, or if a petition or answer proposing the
adjudication of the Tenant as a bankrupt or its reorganization pursuant to any federal or state bankruptcy law or any similar federal
or state law shall be filed in any court and the Tenant shall be adjudicated a bankrupt and such adjudication shall not be vacated
or set aside or stayed within sixty (60) days after the entry of an order in respect thereof, or if a receiver of the Tenant or
of the whole or substantially all of the assets of the Tenant shall be appointed in any proceeding brought by the Tenant or if
any such receiver, trustee or liquidator shall be appointed in any proceeding brought against the Tenant and shall not be vacated
or set aside or stayed within sixty (60) days after such appointment; or

 

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(e)          if
Tenant is liquidated or dissolved, or begins proceedings toward such liquidation or dissolution, or, in any manner, permits the
sale or divestiture of substantially all of its assets; or

 

(f)          if
the estate or interest of Tenant in the Leased Property or any part thereof is voluntarily or involuntarily transferred, assigned,
conveyed, levied upon or attached in any proceeding (unless Tenant is contesting such lien or attachment in good faith in accordance
with Section 12 hereof); or

 

(g)          if,
except as a result of damage, destruction or a partial or complete Condemnation, Tenant voluntarily ceases operations on the Leased
Property for a period in excess of thirty (30) days;

 

(h)          if
(A) an event of default has been declared by the franchisor under the Franchise Agreement with respect to the Facility on the Leased
Premises as a result of any action or failure to act by Tenant or any Person with whom Tenant contracts for management services
at the Facility, other than a failure to complete a Capital Improvement required by the Franchisor resulting from Landlord’s
failure to fund the Capital Expenditure therefor pursuant to Section 9.1(b), and (B) Tenant has failed, within thirty (30) days
thereafter, to cure such default by either (1) curing the underlying default under the Franchise Agreement and paying all costs
and expenses associated therewith, or (2) obtaining at Tenant’s sole cost and expense a substitute franchise license agreement
with a substitute franchisor acceptable to Landlord, on terms and conditions acceptable to Landlord; provided, however,
that if Tenant is in good faith disputing an assertion of default by the franchisor or is proceeding diligently to cure such default,
the thirty (30) day period shall be extended for such period of time as Tenant continues to dispute such default in good faith
or diligently proceeds to cure such default, so long as there is no period during which the Facility is not operated pursuant to
a Franchise Agreement approved by Landlord; or

 

(i)          then,
and in any such event, Landlord may exercise one or more remedies available to it herein or at law or in equity, including but
not limited to its right to terminate this Lease by giving Tenant not less than ten days’ Notice of such termination.

 

If litigation is commenced
with respect to any alleged default under this Lease, the prevailing party in such litigation shall receive, in addition to its
damages incurred, such sum as the court shall determine as its reasonable attorneys’ fees, and all costs and expenses incurred
in connection therewith.

 

No Event of Default
(other than a failure to make a payment of money) shall be deemed to exist under clause (c) during any time the curing thereof
is prevented by an Unavoidable Delay, provided that upon the cessation of such Unavoidable Delay, Tenant remedies such default
or Event of Default without further delay.

 

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16.2         Surrender.
If an Event of Default occurs (and the event giving rise to such Event of Default has not been cured within the curative period
relating thereto as set forth in Section 16.1) and is continuing, whether or not this Lease has been terminated pursuant to Section
16.1, Tenant shall, if requested by Landlord so to do, immediately surrender to Landlord the Leased Property including, without
limitation, any and all books, records, files, licenses, permits and keys relating thereto, and quit the same and Landlord may
enter upon and repossess the Leased Property by reasonable force, summary proceedings, ejectment or otherwise, and may remove
Tenant and all other persons and any and all personal property from the Leased Property, subject to rights of any hotel guests
and to any requirement of law. Tenant hereby waives any and all requirements of applicable laws for service of notice to re-enter
the Leased Property. Landlord shall be under no obligation to, but may if it so chooses, relet the Leased Property or otherwise
mitigate Landlord’s damages, except unless otherwise required by applicable law.

 

16.3         Damages.
Neither (a) the termination of this Lease, (b) the repossession of the Leased Property, (c) the failure of Landlord to relet the
Leased Property, nor (d) the reletting of all or any portion thereof, shall relieve Tenant of its liability and obligations hereunder,
all of which shall survive any such termination, repossession or reletting. In the event of any such termination, Tenant shall
forthwith pay to Landlord all Rent due and payable with respect to the Leased Property to and including the date of such termination.

 

Tenant shall forthwith
pay to Landlord, at Landlord’s option, as and for liquidated and agreed current damages for Tenant’s default, either:

 

(a)          Without
termination of Tenant’s right to possession of the Leased Property, each installment of Rent and other sums payable by Tenant
to Landlord under the Lease as the same becomes due and payable, which Rent and other sums shall bear interest at the Overdue Rate,
and Landlord may enforce, by action or otherwise, any other term or covenant of this Lease; or

 

(b)          the
sum of:

 

the unpaid Rent which
had been earned at the time of termination,

 

repossession or reletting,
and

 

the worth at the time
of termination, repossession or reletting of the amount by which the unpaid Rent for the balance of the Term after the time of
termination, repossession or reletting, exceeds the amount of such rental loss that Tenant proves could be reasonably avoided,
and

 

any other amount necessary
to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this
Lease or which in the ordinary course of things, would be likely to result therefrom. The worth at the time of termination, repossession
or reletting of the amount referred to in Section 16.3(b)(ii) is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of New York at the time of award plus one percent (1%).

 

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Rent for the purposes
of this Section 16.3 shall be a sum equal to (i) the average of the annual amounts of the Percentage Rent for the three (3) Fiscal
Years immediately preceding the Fiscal Year in which the termination, re-entry or repossession takes place, or (ii) if three (3)
Fiscal Years shall not have elapsed, the average of the Percentage Rent during the preceding Fiscal Years during which the Lease
was in effect, or (iii) if one (1) Fiscal Year has not elapsed, the amount derived by annualizing the Percentage Rent from the
effective date of this Lease.

 

16.4         Waiver.
If this Lease is terminated pursuant to Section 16.1, Tenant waives, to the extent permitted by applicable law, (a) any right
to a trial by jury in the event of summary proceedings to enforce the remedies set forth in this Section 16, and (b) the benefit
of any laws now or hereafter in force exempting property from liability for rent or for debt and Landlord waives any right to
“pierce the corporate veil” of Tenant other than to the extent funds shall have been inappropriately paid any Affiliate
of Tenant following a default resulting in an Event of Default.

 

16.5         Application
of Funds. Any payments received by Landlord under any of the provisions of this Lease during
the existence or continuance of any Event of Default shall be applied to Tenant’s obligations in the order that Landlord
may determine or as may be prescribed by the laws of the State.

 

SECTION 17.

 

17.1         Landlord’s
Right to Cure Tenant’s Default. If Tenant fails to make any payment or to perform any
act required to be made or performed under this Lease including, without limitation, Tenant’s failure to comply with the
terms of any Franchise Agreement, and fails to cure the same within the relevant time periods provided in Section 16.1, Landlord,
without waiving or releasing any obligation of Tenant, and without waiving or releasing any obligation or default, may (but shall
be under no obligation to) at any time thereafter make such payment or perform such act for the account and at the expense of
Tenant, and may, to the extent permitted by law, enter upon the Leased Property for such purpose and, subject to Section 16.4,
take all such action thereon as, in Landlord’s opinion, may be necessary or appropriate therefor. No such entry shall be
deemed an eviction of Tenant. All sums so paid by Landlord and all costs and expenses (including, without limitation, reasonable
attorneys’ fees and expenses, in each case to the extent permitted by law) so incurred, together with a late charge thereon
(to the extent permitted by law) at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Landlord,
shall be paid by Tenant to Landlord on demand. The obligations of Tenant and rights of Landlord contained in this Section shall
survive the expiration or earlier termination of this Lease.

 

SECTION 18.

 

18.1         REIT
Requirements.

 

(a)          Tenant
understands that, in order for REIT to qualify as a real estate investment trust within the meaning of section 856 of the Code,
the following requirements (the “REIT Requirements”) must be satisfied:

 

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(i)          Anything
contained in this Lease to the contrary notwithstanding, the average of the Fair Market Value of the items of personal property
that are leased to the Tenant under this Lease at the beginning and at the end of any Fiscal Year shall not exceed fifteen percent
(15%) of the average of the aggregate Fair Market Value of the real and personal property contained in the Leased Property at the
beginning and at the end of such Fiscal Year (the “Personal Property Limitation”). If Landlord reasonably anticipates
that the Personal Property Limitation will be exceeded for any Fiscal Year, Landlord shall notify Tenant, and Tenant shall purchase
any personal property, anticipated to be in excess of the Personal Property Limitation (“Excess Personal Property”)
from the Landlord. Tenant’s Rent obligation shall be reduced by an amount agreed to by the Landlord and Tenant reflective
of the fair market value of the Excess Personal Property acquired by Tenant.

 

(ii)         Sublease
Rent Limitation. Tenant cannot sublet the property that is leased to it by Landlord, or enter into any similar arrangement,
on any basis such that the rental or other amounts paid by the sublessee thereunder would be based, in whole or in part, on either
(i) the net income or profits derived by the business activities of the sublessee or (ii) any other formula such that any portion
of the rent paid by Tenant to Landlord would fail to qualify as “rents from real property” within the meaning of Section
856(d) of the Code.

 

(iii)        Sublease
Tenant Limitation. Tenant cannot sublease the property leased to it by Landlord to, or enter into any similar arrangement with,
any person in which REIT owns, directly or indirectly, a ten percent (10%) or greater interest, within the meaning of Section 856(d)(2)(B)
of the Code.

 

(iv)        TRS
Election. Tenant either will have in effect at all times during this Lease an election (jointly with REIT) to be, and Tenant
will operate as, a “taxable REIT subsidiary” of REIT within the meaning of Section 856(l) of the Code, or is an entity
that is a corporation (or is treated as a corporation for federal income tax purposes) and more than thirty-five percent (35%)
of the voting power or value of whose securities is owned by an entity that has made an election (jointly with REIT) to be an operate
as a “taxable REIT subsidiary” of REIT within the meaning of Section 856(l) of the Code.

 

(v)         Tenant
shall not (A) directly or indirectly operate or manage a “lodging facility” within the meaning of Section 856(d)(9)(D)(ii)
of the Code or a “health care facility” within the meaning of Section 856(e)(6)(D)(ii) or (B) directly or indirectly
provide to any other person (under a franchise, license, or otherwise) rights to any brand name under which any lodging facility
or health care facility is operated; provided, however, that Tenant may provide such rights to Manager to operate
or manage a lodging facility as long as such rights are held by Tenant as a franchisee, licensee, or in a similar capacity and
such lodging facility is either owned by Tenant or is leased to Tenant by Landlord or one of its Affiliates.

 

(vi)        Tenant
shall not allow any wagering activities to be conducted at, or in connection with, the Leased Property.

 

(vii)       Tenant
shall not allow any amenities or facilities to be provided at the Leased Property unless such amenities and facilities are customary
for other properties of a comparable size and class owned by Unrelated Persons.

 

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(b)          Tenant
agrees, and agrees to use reasonable efforts to cause its Affiliates, to use its best efforts to permit the REIT Requirements to
be satisfied. Tenant agrees, and agrees to use reasonable efforts to cause its Affiliates, to cooperate in good faith with REIT
and Landlord to ensure that the REIT Requirements are satisfied, including but not limited to, providing REIT with information
about the ownership of Tenant, Manager and their Affiliates to the extent that such information is reasonably available. Tenant
agrees, and agrees to use reasonable efforts to cause its Affiliates, upon request by REIT, and, where appropriate, at REIT’s
expense, to take reasonable action necessary to ensure compliance with the REIT Requirements. Immediately after becoming aware
that the REIT Requirements are not, or will not be, satisfied, Tenant shall notify, or use reasonable efforts to cause its Affiliates
to notify, REIT of such noncompliance.

 

(c)          The
REIT Requirements are intended to ensure that the Rent qualifies as “rents from real property,” within the meaning
of Section 856(d) of the Code, or any similar or successor provisions thereto, and shall be interpreted in a manner consistent
with such intent..

 

18.2         Tenant
Officer and Employee Limitation. Anything contained in this Lease to the contrary notwithstanding,
none of the officers or employees of Tenant or any entity in which Tenant has a direct or indirect ownership inteterest (a “Tenant-Owned
Entity”) shall be officers or employees of a Manager (or any Person who operates or manages the Leased Property) or
any entity in which the Manager (or such Person) has a direct or indirect ownership interest (a “Manager-Owned Entity”).
In addition, if a Person serves as both (a) a director of Tenant or any Tenant-Owned Entity and (b) a director and officer (or
employee) of Manager (or any Person who operates or manages the Leased Property) or any Manager-Owner Entity, that Person shall
not receive any compensation for serving as a director of Tenant or any Tenant-Owned Entity. If a person serves as both (a) a
director of Manager (or any Person who operates or manages the Leased Property) or any Manager-Owned Entity and (b) a director
and officer (or employee) of Tenant or any Tenant-Owned Entity, that Person shall not receive any compensation for serving as
a director of Manager or any Manager-Owned Entity.

 

18.3         Management
Agreement. Tenant agrees that, in order to comply with certain of the REIT Requirements, it
will, at all times during the Term, cause the Leased Property to be operated and managed by a management company (“Manager”)
that is an Eligible Independent Contractor. Effective as of the Commencement Date, the Tenant shall enter into an initial management
agreement in the form of Exhibit “C” attached hereto (the “Management Agreement”) and Tenant shall
provide Landlord with an executed copy thereof. Tenant may not amend, modify or terminate the Management Agreement in any respect
or change the Manager without the prior written consent of Landlord. Tenant shall also provide Landlord with copies of any amendments
or modifications to the Management Agreement which are entered into from time to time or any other management agreement. Landlord
shall have the right to approve in advance any Manager.

 

SECTION 19.

 

19.1         Holding
Over. If Tenant for any reason remains in possession of the Leased Property after the expiration
or earlier termination of the Term, such possession shall be as a tenant at sufferance during which time Tenant shall pay as rental
each month two (2) times the aggregate of (a) one-twelfth (1/12th) of the aggregate Base Rent and Percentage Rent payable with
respect to the last Fiscal Year of the Term, (b) all Additional Charges accruing during the applicable month and (c) all other
sums, if any, payable by Tenant under this Lease with respect to the Leased Property. During such period, Tenant shall be obligated
to perform and observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder other than
the right, to the extent given by law to tenancies at sufferance, to continue its occupancy and use of the Leased Property. Nothing
contained herein shall constitute the consent, express or implied, of Landlord to the holding over of Tenant after the expiration
or earlier termination of this Lease.

 

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SECTION 20.

 

20.1         Risk
of Loss. During the Term, the risk of loss or of decrease in the enjoyment and beneficial use
of the Leased Property in consequence of the damage or destruction thereof by fire, the elements, casualties, thefts, riots, wars
or otherwise, or in consequence of foreclosures, attachments, levies or executions (other than those caused by Landlord and those
claiming from, through or under Landlord) is assumed by Tenant except as specifically provided in this Lease, and, in the absence
of gross negligence, willful misconduct or breach of this Lease by Landlord pursuant to Section 33.3, Landlord shall in no event
be answerable or accountable therefor, nor shall any of the events mentioned in this Section entitle Tenant to any abatement of
Rent except as specifically provided in this Lease.

 

SECTION 21.

 

21.1         Indemnification.
Notwithstanding the existence of any insurance, and without regard to the policy limits of any such insurance or self-insurance,
but subject to Section 16.4 and Section 8, Tenant will protect, indemnify, hold harmless and defend Landlord from and against
all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation,
reasonable attorneys’ fees and expenses), to the extent permitted by law, imposed upon or incurred by or asserted against
Landlord Indemnified Parties by reason of: (a) any accident, injury to or death of persons or loss of or damage to property occurring
on or about the Leased Property or adjoining sidewalks, including without limitation any claims under liquor liability, “dram
shop” or similar laws, (b) any past, present or future use, misuse, non-use, condition, management, maintenance or repair
by Tenant or any of its agents, employees or invitees of the Leased Property or Tenant’s Personal Property or any litigation,
proceeding or claim by governmental entities or other third parties to which a Landlord Indemnified Party is made a party or participant
related to such use, misuse, non-use, condition, management, maintenance, or repair thereof by Tenant or any of its agents, employees
or invitees, including any failure of Tenant or any of its agents, employees or invitees to perform any obligations under this
Lease or imposed by applicable law (other than arising out of Condemnation proceedings), (c) any Impositions that are the obligations
of Tenant pursuant to the applicable provisions of this Lease, (d) any failure on the part of Tenant to perform or comply with
any of the terms of this Lease, and (e) the non-performance of any of the terms and provisions of any and all existing and future
subleases of the Leased Property to be performed by the landlord thereunder.

 

Landlord shall indemnify,
save harmless and defend Tenant Indemnified Parties from and against all liabilities, obligations, claims, damages, penalties,
causes of action, costs and expenses imposed upon or incurred by or asserted against Tenant Indemnified Parties as a result of
(a) the gross negligence or willful misconduct of Landlord arising in connection with this Lease or (b) any failure on the part
of Landlord to perform or comply with any of the terms of this Lease.

 

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Any amounts that become
payable by an Indemnifying Party under this Section shall be paid within ten days after liability therefor on the part of the Indemnifying
Party is determined by litigation or otherwise, and if not timely paid, shall bear a late charge (to the extent permitted by law)
at the Overdue Rate from the date of such determination to the date of payment. An Indemnifying Party, at its expense, shall contest,
resist and defend any such claim, action or proceeding asserted or instituted against the Indemnified Party. The Indemnified Party,
at its expense, shall be entitled to participate in any such claim, action, or proceeding, and the Indemnifying Party may not compromise
or otherwise dispose of the same without the consent of the Indemnified Party, which may not be unreasonably withheld. Nothing
herein shall be construed as indemnifying a Landlord Indemnified Party against its own grossly negligent acts or omissions or willful
misconduct.

 

Tenant’s or Landlord’s
liability for a breach of the provisions of this Article shall survive any termination of this Lease.

 

SECTION 22.

 

22.1         Subletting
and Assignment. Subject to the provisions of Section 18 and Section 22.2 and any other express
conditions or limitations set forth herein, Tenant may, but only with the prior written consent of Landlord, (a) assign this Lease
or sublet all or any part of the Leased Property to an Affiliate of Tenant, or (b) sublet any retail or restaurant portion of
the Leased Improvements in the normal course of the Primary Intended Use; provided that any subletting to any party other than
an Affiliate of Tenant shall not individually as to any one such subletting, or in the aggregate, materially diminish the actual
or potential Percentage Rent payable under this Lease. In the case of a subletting, the sublessee shall comply with the provisions
of Section 22.2, and in the case of an assignment, the assignee shall assume in writing and agree to keep and perform all of the
terms of this Lease on the part of Tenant to be kept and performed and shall be, and become, jointly and severally liable with
Tenant for the performance thereof. Notwithstanding the above, Tenant may assign the Lease to an Affiliate without the consent
of Landlord; provided that any such assignee assumes in writing and agrees to keep and perform all of the terms of the Lease on
the part of the Tenant to be kept and performed and shall be and become jointly and severally liable with Tenant for the performance
thereof. In case of either an assignment or subletting made during the Term, Tenant shall remain primarily liable, as principal
rather than as surety, for the prompt payment of the Rent and for the performance and observance of all of the covenants and conditions
to be performed by Tenant hereunder. An original counterpart of each such sublease and assignment and assumption, duly executed
by Tenant and such sublessee or assignee, as the case may be, in form and substance satisfactory to Landlord, shall be delivered
promptly to Landlord.

 

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22.2         Attornment.
Tenant shall insert in each sublease permitted under Section 22.1 provisions to the effect that (a) such sublease is subject and
subordinate to all of the terms and provisions of this Lease and to the rights of Landlord hereunder, (b) if this Lease terminates
before the expiration of such sublease, the sublessee thereunder will, at Landlord’s option, attorn to Landlord and waive
any right the sublessee may have to terminate the sublease or to surrender possession thereunder as a result of the termination
of this Lease, and (c) if the sublessee receives a written Notice from Landlord or Landlord’s assignees, if any, stating
that an uncured Event of Default exists under this Lease, the sublessee shall thereafter be obligated to pay all rentals accruing
under said sublease directly to the party giving such Notice, or as such party may direct. All rentals received from the sublessee
by Landlord or Landlord’s assignees, if any, as the case may be, shall be credited against the amounts owing by Tenant under
this Lease.

 

SECTION 23.

 

23.1         Officer’s
Certificates; Financial Statements; Budgets; Landlord’s Estoppel Certificates and Covenants.

 

(a)          At
any time and from time to time upon not less than twenty (20) days Notice by Landlord, Tenant will furnish to Landlord an Officer’s
Certificate certifying that this Lease is unmodified and in full force and effect (or that this Lease is in full force and effect
as modified and setting forth the modifications), the date to which the Rent has been paid, whether to the knowledge of Tenant
there is any existing default or Event of Default exists thereunder by Landlord or Tenant, and such other information as may be
reasonably requested by Landlord. Any such certificate furnished pursuant to this Section may be relied upon by Landlord, any lender
and any prospective purchaser of the Leased Property.

 

(b)          Throughout
the Term, Tenant will furnish to Landlord such historical financial information of Tenant and the Facility as Landlord may reasonably
request and shall provide Landlord access to Tenant’s books and records with respect thereto.

 

(c)          At
any time and from time to time upon not less than twenty (20) days notice by Tenant, Landlord will furnish to Tenant or to any
person designated by Tenant an estoppel certificate certifying that this Lease is unmodified and in full force and effect (or that
this Lease is in full force and effect as modified and setting forth the modifications), the date to which Rent has been paid,
whether to the knowledge of Landlord there is any existing default or Event of Default on Tenant’s part hereunder, and such
other information as may be reasonably requested by Tenant.

 

(d)          During
the Term, Tenant will maintain a net worth sufficient to cover any reasonably anticipated working capital requirements.

 

23.2         Operating
Budget. Not later than sixty (60) days prior to the commencement of each Lease Year, Tenant,
in consultation with the Manager, shall prepare and submit to Landlord an operating budget (the “Operating Budget”)
in form and substance satisfactory to Landlord, prepared in accordance with the requirements of this Section 23.2. The Operating
Budget shall be prepared in accordance with the Uniform System to the extent applicable and show by month and quarter and for
the year as a whole in the degree of detail specified by the Uniform System for monthly statements, and in accordance with the
detail level of monthly financial statements, the following:

 

(a)          Tenant’s
reasonable estimate of Gross Revenue, Room Revenue, F&B Revenue, Other Revenue and Third Party Lease Revenue (including room
rates) for the Facility for the forthcoming Lease Year itemized on schedules on a monthly and quarterly basis as approved by Landlord
and Tenant, together with the assumptions, in narrative form, forming the basis of such schedules.

 

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(b)          A
cash flow projection.

 

(c)          Tenant’s
reasonable estimate for each quarter of the Lease Year of Percentage Rent.

 

23.3         Marketing
Plan. Not later than sixty (60) days prior to the commencement of each Lease Year, Tenant, in
consultation with the Manager, will prepare and submit to Landlord a narrative description of the program for advertising and
marketing the Facility for the forthcoming Lease Year (the “Marketing Plan”) containing a detailed budget itemization
of the proposed advertising expenditures by category and the assumptions, in narrative form, forming the basis of such budget
itemization.

 

23.4         Capital
Budget. Not later than sixty (60) days prior to the commencement of each Lease Year, Landlord
shall prepare and submit to Tenant a capital budget (the “Capital Budget”) prepared in accordance with this Section
23.4. The Capital Budget shall be prepared in accordance with the Uniform System to the extent applicable and shall set forth
Landlord’s proposed Capital Expenditures for the ensuing Lease Year.

 

23.5         Disputes.
In the event of any dispute between Landlord and Tenant as to the Operating Budget, the Marketing Plan or the Capital Budget,
Landlord and Tenant shall act promptly, reasonably and in good faith in seeking to resolve such disputes and in arriving at a
mutually acceptable Operating Budget, Marketing Plan and Capital Budget.

 

SECTION 24.

 

24.1         Landlord’s
Right to Inspect. Tenant shall permit Landlord and its authorized representatives as frequently
as reasonably requested by Landlord to inspect the Leased Property and Tenant’s accounts and records pertaining thereto
and make copies thereof, during usual business hours upon reasonable advance notice, subject only to any business confidentiality
requirements reasonably requested by Tenant.

 

SECTION 25.

 

25.1         No
Waiver. No failure by Landlord or Tenant to insist upon the strict performance of any term hereof
or to exercise any right, power or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent
during the continuance of any such breach, shall constitute a waiver of any such breach or of any such term. To the extent permitted
by law, no waiver of any breach shall affect or alter this Lease, which shall continue in full force and effect with respect to
any other then existing or subsequent breach.

 

SECTION 26.

 

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

 

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SECTION 27.

 

27.1         Acceptance
of Surrender. No surrender to Landlord of this Lease or of the Leased Property or any part thereof,
or of any interest therein, shall be valid or effective unless agreed to and accepted in writing by Landlord and no act by Landlord
or any representative or agent of Landlord, other than such a written acceptance by Landlord, shall constitute an acceptance of
any such surrender.

 

SECTION 28.

 

28.1         No
Merger of Title. There shall be no merger of this Lease or of the leasehold estate created hereby
by reason of the fact that the same person or entity may acquire, own or hold, directly or indirectly: (a) this Lease or the leasehold
estate created hereby or any interest in this Lease or such leasehold estate and (b) the fee estate in the Leased Property.

 

SECTION 29.

 

29.1         Conveyance
by Landlord. If Landlord or any successor owner of the Leased Property conveys the Leased Property
to a Person other than an Affiliate of Landlord in accordance with the terms hereof other than as security for a debt, and the
grantee or transferee of the Leased Property expressly assumes all obligations of Landlord hereunder arising or accruing from
and after the date of such conveyance or transfer, Landlord or such successor owner, as the case may be, shall thereupon be released
from all future liabilities and obligations of Landlord under this Lease arising or accruing from and after the date of such conveyance
or other transfer as to the Leased Property and all such future liabilities and obligations shall thereupon be binding upon the
new owner.

 

SECTION 30.

 

30.1         Quiet
Enjoyment. So long as Tenant pays all Rent as the same becomes due and complies with all of the terms of this Lease and performs
its obligations hereunder, in each case within the applicable grace periods, if any, Tenant shall peaceably and quietly have,
hold and enjoy the Leased Property for the Term hereof, free of any claim or other action by Landlord or anyone claiming by, through
or under Landlord, but subject to all liens and encumbrances subject to which the Leased Property was conveyed to Landlord or
hereafter consented to by Tenant or provided for herein. Notwithstanding the foregoing, Tenant shall have the right by separate
and independent action to pursue any claim it may have against Landlord as a result of a breach by Landlord of the covenant of
quiet enjoyment contained in this Section.

 

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SECTION 31.

 

31.1         Notices.
All notices, demands, requests, consents approvals and other communications (“Notice” or “Notices”)
hereunder shall be in writing and personally served, mailed (by registered or certified mail, return receipt requested and postage
prepaid) or sent by facsimile, addressed to Landlord at _____________, Facsimile ____________, Attention: _____________, and addressed
to Tenant at _______________, Facsimile ________________, Attention: _____________, or to such other address or addresses as either
party may hereafter designate. Personally delivered Notice shall be effective upon receipt, and Notice given by mail shall be
complete at the time of deposit in the U.S. Mail system, but any prescribed period of Notice and any right or duty to do any act
or make any response within any prescribed period or on a date certain after the service of such Notice given by mail shall be
extended five (5) days.

 

SECTION 32.

 

32.1         Appraisers.
If it becomes necessary to determine the Fair Market Value of the leasehold estate hereunder for any purpose of this Lease, the
party required or permitted to give Notice of such required determination shall include in the Notice the name of a person selected
to act as appraiser on its behalf. Within ten (10) days after Notice, Landlord (or Tenant, as the case may be) shall by Notice
to Tenant (or Landlord, as the case may be) appoint a second person as appraiser on its behalf. The appraisers thus appointed,
each of whom must be a member of the American Institute of Real Estate Appraisers (or any successor organization thereto) with
at least five years experience in the State appraising property similar to the Leased Property, shall, within forty (45) days
after the date of the Notice appointing the first appraiser, proceed to determine the Fair Market Value of the leasehold estate
hereunder as of the relevant date (giving effect to the impact, if any, of inflation from the date of their decision to the relevant
date); provided, however, that if only one (1) appraiser shall have been so appointed, then the determination of
such appraiser shall be final and binding upon the parties. If two (2) appraisers are appointed and if the difference between
the amounts so determined does not exceed five percent (5%) of the lesser of such amounts, then the Fair Market Value shall be
an amount equal to fifty percent (50%) of the sum of the amounts so determined. If the difference between the amounts so determined
exceeds five percent (5%) of the lesser of such amounts, then such two (2) appraisers shall have twenty (20) days to appoint a
third appraiser. If no such appraiser shall have been appointed within such twenty (20) days or within ninety (90) days of the
original request for a determination of Fair Market Value, whichever is earlier, either Landlord or Tenant may apply to any court
having jurisdiction to have such appointment made by such court. Any appraiser appointed by the original appraisers or by such
court shall be instructed to determine the Fair Market Value within forty-five (45) days after appointment of such appraiser.
The determination of the appraiser which differs most in the terms of dollar amount from the determinations of the other two (2)
appraisers shall be excluded, and fifty percent (50%) of the sum of the remaining two determinations shall be final and binding
upon Landlord and Tenant as the Fair Market Value of the leasehold estate hereunder. This provision for determining by appraisal
shall be specifically enforceable to the extent such remedy is available under applicable law, and any determination hereunder
shall be final and binding upon the parties except as otherwise provided by applicable law. Landlord and Tenant shall each pay
the fees and expenses of the appraiser appointed by it and each shall pay one-half (.5) of the fees and expenses of the third
(3rd) appraiser and one-half (.5) of all other costs and expenses incurred in connection with each appraisal.

 

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SECTION 33.

 

33.1         Landlord
May Grant Liens. Without the consent of Tenant, Landlord may, subject to the terms and conditions set forth below in this
Section 33.1, from time to time, directly or indirectly, create or otherwise cause to exist any lien, encumbrance or title retention
agreement (“Encumbrance”) upon the Leased Property, or any portion thereof or interest therein, whether to
secure any borrowing or other means of financing or refinancing. Any such Encumbrance shall (a) contain the right to prepay (whether
or not subject to a prepayment penalty); and (b) contain the Agreement by the holder of the Encumbrance that it will (1) give
Tenant the same notice, if any, given to Landlord of any default or acceleration of any obligation underlying any such Encumbrance
or any sale in foreclosure under such Encumbrance, (2) permit Tenant to cure any such default on Landlord’s behalf within
any applicable cure period, and Tenant shall be reimbursed by Landlord for any and all costs incurred in effecting such cure,
including without limitation out-of-pocket costs incurred to effect any such cure (including reasonable attorneys’ fees)
and (3) permit Tenant to appear by its representative and to bid at any sale in foreclosure made with respect to any such Encumbrance.
Upon the request of Landlord, Tenant shall subordinate this Lease to the lien of a new mortgage on the Leased Property, on the
condition that (a) the proposed mortgagee executes a non-disturbance agreement recognizing this Lease, subject to the provisions
of Section 33.3, and agreeing, for itself and its successors and assigns, to comply with the provisions of this Section 33 and
(b) such lien is subject to the rights of the Tenant under this Lease.

 

33.2         Tenant’s
Right to Cure. Subject to the provisions of Section 33.2, if Landlord breaches
any covenant to be performed by it under this Lease, Tenant, after Notice to and demand upon Landlord, without waiving or releasing
any obligation hereunder, and in addition to all other remedies available to Tenant, may (but shall be under no obligation at
any time thereafter to) make such payment or perform such act for the account and at the expense of Landlord. All sums so paid
by Tenant and all costs and expenses (including, without limitation, reasonable attorneys’ fees) so incurred, together with
interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Tenant, shall be paid
by Landlord to Tenant on demand or, following entry of a final, nonappealable judgment against Landlord for such sums, may be
offset by Tenant against the Base Rent payments next accruing or coming due. The rights of Tenant hereunder to cure and to secure
payment from Landlord in accordance with this Section 33 shall survive the termination of this Lease with respect to the Leased
Property.

 

33.3         Breach
by Landlord. It shall be a breach of this Lease if Landlord fails to observe or
perform any term, covenant or condition of this Lease on its part to be performed and such failure continues for a period of thirty
(30) days after Notice thereof from Tenant, unless such failure cannot with due diligence be cured within a period of thirty (30)
days, in which case such failure shall not be deemed to continue if Landlord, within such thirty (30) day period, proceeds promptly
and with due diligence to cure the failure and diligently completes the curing thereof. The time within which Landlord shall be
obligated to cure any such failure also shall be subject to extension of time due to the occurrence of any Unavoidable Delay.
If Landlord fails to cure any such breach within the grace period described above, Tenant, without waiving or releasing any obligations
hereunder, and in addition to all other remedies available to Tenant at law or in equity, may purchase the Leased Property from
Landlord for a purchase price equal to the then Fair Market Value; provided however, that such right to purchase
the Leased Property shall terminate upon any foreclosure under any Encumbrance, provided that Tenant may appear by its representative
to bid at any sale in foreclosure made with respect to any Encumbrance and provided further that such right to purchase
the Leased Property is subject in all cases to the rights of any lender of the Landlord under any mortgage encumbering the Leased
Property notwithstanding any non-disturbance agreement executed in connection with such mortgage. If Tenant elects to purchase
the Leased Property it shall deliver a Notice thereof to Landlord specifying a settlement date to occur not less than ninety (90)
days subsequent to the date of such Notice on which it shall purchase the Leased Property.

 

    	-46-

    	 

    

 

SECTION 34.

 

34.1         Miscellaneous.
Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities of, Tenant or Landlord arising
prior to any date of termination of this Lease shall survive such termination. If any term or provision of this Lease or any application
thereof is invalid or unenforceable, the remainder of this Lease and any other application of such term or provisions shall not
be affected thereby. If any late charges or any interest rate provided for in any provision of this Lease are based upon a rate
in excess of the maximum rate permitted by applicable law, the parties agree that such charges shall be fixed at the maximum permissible
rate. Neither this Lease nor any provision hereof may be changed, waived, discharged or terminated except by a written instrument
in recordable form signed by Landlord and Tenant. All the terms and provisions of this Lease shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. The headings in this Lease are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof. This Lease shall be governed by and construed in
accordance with the laws of the State, but not including its conflicts of laws rules.

 

34.2         Transfer
of Licenses. Upon the expiration or earlier termination of the Term, Tenant shall
use its best efforts (i) to transfer to Landlord or Landlord’s nominee or designee all Franchise Agreements, licenses, operating
permits and other governmental authorizations and all contracts, including contracts with governmental or quasi-governmental entities,
that may be necessary for the operation of the Facility (collectively, “Licenses”), or (ii) if such transfer
is prohibited by law or Landlord otherwise elects, to cooperate with Landlord or Landlord’s nominee in connection with the
processing by Landlord or Landlord’s nominee of any applications for, all Licenses; provided, in either case, that the costs
and expenses of any such transfer or the processing of any such application shall be paid by Landlord or Landlord’s nominee.

 

34.3         Waiver
of Presentment, etc.. Tenant waives all presentments, demands for payment and for performance, notices of nonperformance,
protests, notices of protest, notices of dishonor, and notices of acceptance and waives all notices of the existence, creation,
or incurring of new or additional obligations, except as expressly granted herein.

 

SECTION 35.

 

35.1         Memorandum
of Lease. Landlord and Tenant shall promptly upon the request of either enter into a short form
memorandum of this Lease, in form suitable for recording under the laws of the State in which reference to this Lease, and all
options contained herein, shall be made. Tenant shall pay all costs and expenses of recording such memorandum of this Lease.

 

    	-47-

    	 

    

 

SECTION 36.

 

36.1         Landlord’s
Option to Purchase Assets of Tenant. Effective on not less than ninety (90) days prior Notice
given at any time within one hundred eighty (180) days before the expiration of the Term, but not later than ninety (90) days
prior to such expiration, or upon such shorter Notice period as shall be appropriate if this Lease is terminated prior to its
expiration date, Landlord shall have the option to purchase all (but not less than all) of the assets of Tenant, tangible and
intangible, relating to the Leased Property (other than this Lease), at the expiration or termination of this Lease for an amount
(payable in cash on the expiration date of this Lease) equal to the fair market value thereof as agreed to by the parties or,
in the absence of such agreement, as determined by appraisal in conformity with Section 32, except that the appraisers need not
be members of the American Institute of Real Estate Appraisers, but rather shall be appraisers having at least ten (10) years
experience in valuing similar assets. Notwithstanding any such purchase, Landlord shall obtain no rights to any trade name or
logo used in connection with the Franchise unless separate agreement as to such use is reached with the applicable franchisor.

 

SECTION 37.

 

37.1         Landlord’s
Option to Terminate Lease. In the event Landlord enters into a bona fide contract to sell the
Leased Property to a non-Affiliate, Landlord may terminate the Lease as to any Leased Property prior to the Expiration Date by
giving to Tenant not less than thirty (30) days prior Notice of Landlord’s election to terminate this Lease upon the closing
of such contract. Effective upon the termination date set forth in the Notice, this Lease shall terminate and be of no further
force and effect except as to any obligations of the parties existing as of such date that survive termination of this Lease.
As compensation for the early termination of Tenant’s leasehold estate under this Section 37, Landlord shall, within one
hundred eighty (180) days following the termination date, either (a) pay to Tenant the Fair Market Value of Tenant’s leasehold
estate hereunder as of the closing date of the sale of the Leased Property or (b) within one (1) year following the termination
date offer to lease to Tenant one or more substitute hotel facilities pursuant to one or more leases that would create for the
Tenant leasehold estates that have an aggregate Fair Market Value of no less than the Fair Market Value of the leasehold estate
for the Leased Property being terminated hereunder, both such values as determined as of the termination date of the Lease. If
Landlord elects and complies with the option described in (b) above, regardless of whether Tenant enters into the lease(s) described
therein, Landlord shall have no further obligations to Tenant with respect to compensation for the early termination of the Lease.
In the event Landlord and Tenant are unable to agree upon the fair market value of an original or replacement leasehold estate,
it shall be determined by appraisal using the appraisal procedure set forth in Section 32.

 

    	-48-

    	 

    

 

SECTION 38.

 

38.1         Compliance
with Franchise Agreement. To the extent any of the provisions of the Franchise Agreement impose
a greater obligation on Tenant than the corresponding provisions of this Lease, then Tenant shall be obligated to comply with
the provisions of the Franchise Agreement (other than requirements with respect to Capital Improvements). It is the intent of
the parties hereto that Tenant shall comply in every respect with the provisions of the Franchise Agreement so as to avoid any
default thereunder during the term of this Lease. Tenant shall not terminate, extend or enter into any modification of the Franchise
Agreement without in each instance first obtaining Landlord’s prior written consent. Landlord and Tenant agree to cooperate
with each other in the event it becomes necessary to obtain a franchise extension or modification or a new franchise for the Leased
Property, and in any transfer of the Franchise Agreement to Landlord or any designee of Landlord or any successor to Tenant upon
the termination of this Lease. In the event of expiration or termination of a Franchise Agreement, for whatever reason, the Landlord
will have the right, in its sole discretion, to approve any new Franchise Agreement for the Facility. If, upon any expiration
or earlier termination of this Lease (other than upon an Event of Default by Tenant), a Franchise Agreement remains in effect,
or would but for such expiration or termination remain in effect, Landlord shall indemnify, defend and hold Tenant harmless with
respect to the obligations and liabilities arising thereunder after the date of expiration or termination of this Lease.

 

SECTION 39.

 

39.1         Landlord
Approval of Capital Expenditures. All Capital Expenditures whether pursuant to the Capital Budget
or otherwise shall be subject to the approval of Landlord, which approval shall extend both to the plans and specifications (including
matters of design and decor) and to the contracting and purchasing of all labor, services and materials. Landlord shall have the
right to require competitive bidding of contracts for Capital Improvements, review all bids and monitor costs, time, quality and
performance. The foregoing restrictions shall not apply to emergency Capital Expenditures made by Tenant in amounts not to exceed
$10,000, and with prior notice to Landlord (if possible under the circumstances).

 

39.2         Inventory.
On the Commencement Date, Tenant agrees to purchase from Landlord, for cash, any Inventory at the Facility at a price equal to
the fair market value as agreed by Landlord and Tenant.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	-49-

    	 

    

 

IN WITNESS WHEREOF, the
parties have executed this Lease by their duly authorized officers as of the date first above written.

 

	 	LANDLORD
	 	 
	 	[Insert Landlord Info]
	 	 
	 	TENANT
	 	 
	 	[Insert Landlord Info]

 

[Agreement of Lease Signature Page]

 

    	 

    	 

    

 

Exhibit “A”

 

LAND DESCRIPTION

 

    	Exhibit A

    	 

    

 

Exhibit “B-1”

 

Rent Terms

 

	FACILITY:	__________
	 	 
	LAND:	Pursuant to Exhibit “A” attached hereto
	 	 
	COMMENCEMENT DATE:	__________
	 	 
	EXPIRATION DATE:	__________
	 	 
	BASE RENT:	Pursuant to Exhibit “B-2” attached hereto.
	 	 
	PERIODIC REVENUE COMPUTATION:

 

For purposes of defining
the Periodic Revenue Computation below:

 

Each of Revenue Percentages
and the Revenue Thresholds are as set forth on Exhibit B-2 attached hereto.

 

“Cumulative
Accounting Period Portion” shall mean a fraction having as its numerator the total number of Accounting Periods (including
partial periods) in the Fiscal Year which have elapsed prior to the Accounting Period in which the payment of Percentage Rent is
due, and having as its denominator the total number of Accounting Periods (including partial periods) in the Fiscal Year. For example,
the Cumulative Accounting Period Portion in an entire (12-Accounting Period) Fiscal Year for the first percentage Rent Payment
will be 3/12 and for the second Percentage Rent payment will be 6/12, and for the last Percentage Rent payment for said Fiscal
Year (due in January of the next Fiscal Year) will be 12/12 or 100%.

 

The “Periodic
Revenue Computation” shall be the amount obtained by adding, for the applicable Fiscal Year, an amount equal to (i) the
Rooms First Tier Percentage of Room Revenue for the Fiscal Year to date to the extent that such Room Revenue does not exceed the
Cumulative Accounting Period Portion of the Rooms First Tier Threshold; (ii) the Rooms Second Tier Percentage of Room Revenue for
the Fiscal Year to date to the extent that such Room Revenue exceeds the Cumulative Accounting Period Portion of the Rooms First
Tier Threshold but does not exceed the Cumulative Accounting Period Portion of the Rooms Second Tier Threshold; (iii) the Rooms
Third Tier Percentage of Room Revenue for the Fiscal Year to date to the extent that such Room Revenue exceeds the Cumulative Accounting
Period Portion of the Rooms Second Tier Threshold; (iv) the F&B First Tier Percentage of F&B Revenue for the Fiscal Year
to date to the extent that such F&B Revenue does not exceed the Cumulative Accounting Period Portion of the F&B First Tier
Threshold; (v) the F&B Second Tier Percentage of F&B Revenue for the Fiscal Year to date to the extent that such F&B
Revenue exceeds the Cumulative Accounting Period Portion of the F&B First Tier Threshold but does not exceed the Cumulative
Accounting Period Portion of the F&B Second Tier Threshold; (vi) the F&B Third Tier Percentage of F&B Revenue for the
Fiscal Year to date to the extent that such F&B Revenue exceeds the Cumulative Accounting Period Portion of the F&B Second
Tier Threshold; (vii) the Other First Tier Percentage of Other Revenue for the Fiscal Year to date to the extent that such Other
Revenue does not exceed the Cumulative Accounting Period Portion of the Other First Tier Threshold; (viii) the Other Second Tier
Percentage of Other Revenue for the Fiscal Year to date to the extent that such Other Revenue exceeds the Cumulative Accounting
Period Portion of the Other First Tier Threshold but does not exceed the Cumulative Accounting Period Portion of the Other Second
Tier Threshold; (ix) the Other Third Tier Percentage of Other Revenue for the Fiscal Year to date to the extent that such Other
Revenue exceeds the Cumulative Accounting Period Portion of the Other Second Tier Threshold; and (x) the Third Party Lease Percentage
of Third Party Revenue for the Fiscal Year to date.

 

    	Exhibit B-1

    	 

    

 

If the Term for the
Leased Property begins or ends in the middle of a Fiscal Year, the foregoing formulas shall be applied as if the first Fiscal
Year had only the number of full calendar month Accounting Periods remaining in the Fiscal Year in which the Term commenced or
the last Fiscal Year had only the number of full calendar month Accounting Periods in the Fiscal Year in which the Term ended.
If the Term shall commence and/or end at any time other than the beginning or end of the calendar month, the Percentage Rent for
the Leased Property for the first or last Accounting Period, as applicable, shall equal (i) the Percentage Rent calculated as
indicated above multiplied by (ii) a fraction equal to (A) the number of days in such Accounting Period divided by (B) the total
number of days in the calendar month in which such Accounting Period begins.

 

    	Exhibit B-1

    	 

    

 

Exhibit “B-2”

 

SCHEDULE OF BASE AND PERCENTAGE RENT

 

    	Exhibit B-2

    	 

    

 

Exhibit “C”

 

MANAGEMENT AGREEMENT

 

    	Exhibit C

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