Document:

EXHIBIT 10.20

 Exhibit 10.20 
 SPRINGHILL SUITES BY MARRIOTT 
 RELICENSING FRANCHISE AGREEMENT 
 between 
 MARRIOTT INTERNATIONAL,
INC. 
 Franchisor 
 and 
 APPLE EIGHT HOSPITALITY MANAGEMENT, INC. 
 Franchisee 
 Location: 6006 Landmark Center Blvd, Greensboro, NC 27407 

 Dated as of: 

 SPRINGHILL SUITES BY MARRIOTT 
 RELICENSING FRANCHISE AGREEMENT 
 TABLE OF CONTENTS 
  

					
	 	  	Page
	RECITALS	  	1
			
	I.	 	GRANT	  	2
			
	II.	 	TERM	  	4
			
	III.	 	FEES	  	5
			
	IV.	 	SPRINGHILL FRANCHISE ASSOCIATION	  	7
			
	V.	 	MANAGEMENT, STAFFING AND TRAINING	  	7
			
	VI.	 	OPERATION OF THE HOTEL	  	9
			
	VII.	 	FURNISHING AND MAINTAINING THE HOTEL	  	11
			
	VIII.	 	RESERVATION AND PROPERTY MANAGEMENT SYSTEMS	  	13
			
	IX.	 	ADVERTISING AND MARKETING	  	14
			
	X.	 	PROPRIETARY MARKS AND INTELLECTUAL PROPERTY	  	16
			
	XI.	 	SYSTEM STANDARDS MANUAL	  	19
			
	XII.	 	CONFIDENTIAL INFORMATION	  	19
			
	XIII.	 	ACCOUNTING AND RECORDS	  	20
			
	XIV.	 	INSURANCE	  	21
			
	XV.	 	TRANSFERABILITY OF INTEREST	  	24
			
	XVI.	 	SECURITY OFFERINGS	  	30
			
	XVII.	 	DEFAULT AND TERMINATION	  	31
			
	XVIII.	 	OBLIGATIONS UPON TERMINATION	  	34
			
	XIX.	 	CONDEMNATION AND CASUALTY	  	38
			
	XX.	 	TAXES, COMPLIANCE WITH LAWS, AND INDEBTEDNESS	  	39
			
	XXI.	 	INDEPENDENT CONTRACTOR AND INDEMNIFICATION	  	40
			
	XXII.	 	APPROVALS AND WAIVERS	  	40

  

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	XXIII.	 	REPRESENTATIONS AND WARRANTIES OF FRANCHISEE	  	41
			
	XXIV.	 	NOTICES	  	42
			
	XXV.	 	ENTIRE AGREEMENT	  	43
			
	XXVI.	 	CONSTRUCTION AND SEVERABILITY	  	43
			
	XXVII.	 	APPLICABLE LAW AND CURRENCY REQUIREMENT	  	44
			
	XXVIII.	 	WAIVER OF JURY TRIAL	  	45
			
	XXIX.	 	INJUNCTIVE RELIEF	  	45
			
	XXX.	 	FRANCHISEE ACKNOWLEDGMENTS	  	45

					
			
	ATTACHMENT A	 	FRANCHISE INFORMATION	  	48
			
	ATTACHMENT B	 	FORM OF GUARANTY	  	49
			
	ATTACHMENT C	 	FORM OF MANAGER ACKNOWLEDGMENT	  	52
			
	ATTACHMENT D	 	FORM OF ELECTRONIC SYSTEMS LICENSE AGREEMENT	  	56
			
	ATTACHMENT E	 	CHANGE OF OWNERSHIP RIDER	  	59
		
	PROPERTY IMPROVEMENT PLAN ADDENDUM	  	61
		
	EXHIBIT A TO PROPERTY IMPROVEMENT PLAN ADDENDUM	  	64
		
	EXHIBIT B TO PROPERTY IMPROVEMENT PLAN ADDENDUM	  	66
			
	ATTACHMENT F	 	FORM OF OWNER AGREEMENT	  	67

  

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 SPRINGHILL SUITES BY MARRIOTT 
 RELICENSING FRANCHISE AGREEMENT 
 THIS AGREEMENT is made and entered into
effective as of the      day of                     , 2007 (“Effective Date”), between Marriott
International, Inc., a Delaware corporation (“Franchisor”), and Apple Eight Hospitality Management, Inc., a Virginia corporation (“Franchisee”). 
 WITNESSETH: 
 WHEREAS, Franchisor has developed and owns a concept and system (“System”) for the
establishment and operation of moderately-priced hotels under the names “SpringHill Suites by Marriott” and “SpringHill Suites” which offer guests exceptional quality and service; all references herein to the “System”
shall be to the SpringHill Suites system in the United States and Canada; 
 WHEREAS, the distinguishing characteristics of the System, all
of which may be changed, improved or further developed by Franchisor, include, without limitation: 
 1. the trade name, trademark and service
mark “SpringHill Suites” and such other trade names, trademarks and service marks as are now or as may hereafter be designated by Franchisor in writing as part of the System (“Proprietary Marks”); 
 2. design & construction criteria documents for SpringHill Suites by Marriott hotels; 
 3. high standards of cleanliness, quality and service as prescribed in the Manual (as defined in Section XI hereof); 
 4. management training; 
 5. advertising,
marketing and promotional programs; 
 6. the SpringHill Suites Reservation System; and 
 7. the SpringHill Suites Property Management System; 
 WHEREAS, BRR Greensboro, LLC (“Existing Franchisee”) and Franchisor are parties to a SpringHill Suites by Marriott franchise agreement (“Existing Franchise Agreement”) for the operation of the
Hotel (defined below); 
 WHEREAS, pursuant to that certain Purchase Contract, dated as of September 4, 2007, between Existing
Franchisee and certain of its affiliates and Apple Eight Hospitality Ownership, Inc., a Virginia corporation (“Owner”), Owner has purchased the Hotel (as defined herein) from Existing Franchisee (the “Hotel Purchase
Transaction”); 
 WHEREAS, Existing Franchisee desires to terminate the Existing Franchise Agreement in connection with the consummation
of the Hotel Purchase Transaction; 
 WHEREAS, Franchisor has agreed to terminate the Existing Franchise Agreement on the terms and
conditions set forth in a Termination Agreement and Release between Existing Franchisee and Franchisor (the “Termination Agreement”); 

 WHEREAS, pursuant to the Termination Agreement, the termination of the Existing Franchise Agreement is
not effective unless, among other things, this Agreement has become effective in accordance with its terms; 
 WHEREAS, Franchisee desires
that the Hotel remain in the System after termination of the Existing Franchise Agreement and Franchisee desires to operate the Hotel under Franchisor’s System at the location specified herein and to obtain a franchise from Franchisor for that
purpose; 
 WHEREAS, in order to enhance public acceptance of, and demand for, all SpringHill Suites by Marriott hotels, Franchisee
understands and acknowledges the importance of complying strictly to Franchisor’s standards and specifications in (i) completing in a timely manner the renovations, upgrading and/or remodeling requirements (the “Property Improvement
Plan”) set forth in the Property Improvement Plan Addendum (the “Addendum”) attached hereto, and (ii) operating the Hotel to be franchised hereunder; 
 WHEREAS, the Hotel opened for business as a SpringHill Suites by Marriott hotel on July 19, 2004 (the “Opening Date”), and was operated under Franchisor’s System from the Opening Date until
termination of the Existing Franchise Agreement pursuant to the Termination Agreement; 
 WHEREAS, certain modifications to this Agreement
are required in order to account for the fact that the Hotel was opened and operating prior to the Effective Date, which are set forth in the Change of Ownership Rider attached hereto as Attachment E; 
 WHEREAS, Owner is the owner of the Hotel and has entered into a Lease Agreement with Franchisee dated as of the Effective Date (the “Lease
Agreement”), pursuant to which Franchisee has leased the Hotel from Owner and Franchisee has rights to operate the Hotel; 
 WHEREAS,
simultaneously with the execution of this Agreement, Franchisor, Franchisee and Owner are entering into an Owner Agreement in substantially the same form set forth in Attachment F hereto (the “Owner Agreement”); and 
 WHEREAS, Franchisor is relying upon the business skill, financial capacity and character of Franchisee and its principals, and the guarantee by Apple
Eight Hospitality, Inc. (the “Guarantor”) of Franchisee’s obligations, in substantially the form set forth in Attachment B hereto. 
 NOW, THEREFORE, the parties, in consideration of the premises and the undertakings and commitments of each party to the other party set forth herein, agree as follows: 
  

	I.	GRANT 

 A. Franchisor hereby grants to Franchisee, upon the
terms and conditions herein contained, a nonexclusive right and franchise, and Franchisee undertakes the obligation, to operate a SpringHill Suites by Marriott hotel in accordance with Franchisor’s standards and specifications at, and only at,
the location specified in Attachment A hereto (“Approved Location”) and to use solely in connection therewith Franchisor’s System as it may be changed, improved and further developed. Franchisor reserves the right to revise, modify,
amend or change the System, or any part thereof. Such revisions, modifications, amendments, or changes may include new or different systems, programs, specifications, standards, controls, and other distinguishing elements or characteristics that
Franchisor may make mandatory. Franchisee specifically acknowledges that certain modifications or additions to the 

  

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System may require Franchisee to contribute to the cost of such modifications or additions on a fair and consistent basis with other participating System
hotels or other hotels, as determined by Franchisor. The grant of this franchise is subject to Franchisee’s satisfying the requirements set forth in the Addendum to this Agreement. 
 B. The “Opening Date” shall be the first day the Hotel opens for business, which date shall be specified in a writing executed on the behalf of
Franchisor and Franchisee, respectively, pursuant to Paragraph C.1.g. of the Addendum attached hereto. The right to use and become part of the System shall begin as of the Opening Date. Franchisee understands and agrees that it shall not open the
Hotel for business as a SpringHill Suites by Marriott hotel or any other hotel at the Approved Location until the Opening Date, and Franchisee has no rights to the franchise or to the use of the System, except to advertise and promote the Hotel
prior to its opening, until the Opening Date. Franchisee understands and agrees further that if Franchisee fails to comply with the construction, furnishing and pre-opening requirements set forth in the Addendum attached hereto in strict compliance
with the standards and specifications of Franchisor, then in such event, (i) Franchisor is not obligated to authorize the opening and operation of the Hotel as a SpringHill Suites by Marriott hotel, and (ii) this Agreement shall, upon
notice by Franchisor to Franchisee, be terminated in accordance with Paragraph XVII.B.7. For purposes of this Agreement, the terms “Hotel” and “Franchised Business” shall refer to (i) the hotel and all land used in
connection with the hotel located or to be located at the Approved Location; (ii) all improvements, structures, facilities, entry and exit rights, parking, pools, and appurtenances (including without limitation the hotel building, public
facilities, and all operating systems therein); and (iii) all FF&E (as defined herein), supplies, goods, and other items installed in such improvements. 
 C. Franchisee acknowledges and agrees that (i) this franchise relates solely to the Approved Location; (ii) this Agreement does not entitle Franchisee to any protected territory, territorial rights or
exclusivity; and (iii) this franchise and Franchisee’s rights hereunder are granted only for the number of guest rooms specified in Attachment A hereto. Franchisee shall not expand or change the number of guest rooms in or make other
structural changes to the Hotel without the prior written consent of Franchisor. 
 D. Franchisee further acknowledges and agrees that
Franchisor, its subsidiaries, affiliates (as defined below) and partners (collectively the “Marriott Companies” and each individually a “Marriott Company”) have and retain the right to develop, promote, construct, own, lease,
acquire and/or operate, or authorize or otherwise license or franchise others to develop, promote, construct, own, lease, acquire and/or operate other lodging products operating under the trade name “SpringHill Suites by Marriott,”
including other SpringHill Suites by Marriott hotels, as well as any other lodging products or concepts, including but not limited to those operated under the trade names Marriott Hotels, Resorts and Suites; JW Marriott Hotels; Renaissance Hotels,
Resorts and Suites; Renaissance ClubSport; Courtyard by Marriott; Fairfield Inn by Marriott; Fairfield Suites; Fairfield Inn & Suites by Marriott; Nickelodeon Resorts by Marriott; Residence Inn by Marriott; TownePlace Suites by Marriott;
Ritz-Carlton; Marriott Conference Centers; Marriott ExecuStay; The Residences at the Ritz-Carlton; JW Marriott Residences; or any other lodging product; vacation, timesharing, interval or fractional ownership facilities, including, but not limited
to, Marriott Vacation Club International; restaurants; or other business operation. Franchisee further acknowledges, accepts and agrees that the Marriott Companies may exercise such right without notice to Franchisee, and Franchisee covenants that
it shall not take any action, including any cause of action in a court of law or equity, that may interfere with the exercise of such right by any of the Marriott Companies. For purposes of this Agreement, “affiliate” means with respect to
any person or entity, any other person or entity directly or indirectly, through one or more intermediaries controlling, controlled by or under common control with such person or entity. 
  

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 E. Franchisee hereby represents and warrants to Franchisor that (i) Owner is the sole owner of the
Hotel, (ii) the Hotel is leased to Franchisee pursuant to the Lease Agreement, and (iii) the Lease Agreement grants Franchisee full and exclusive control of the Hotel and all rights, powers and authority with respect to the Hotel required
or desirable for the performance of Franchisee’s obligations hereunder. To the extent that the Lease Agreement provides that any of the obligations of Franchisee hereunder are to be performed by Owner, Franchisee agrees that it shall cause
Owner to perform such obligations in accordance with this Agreement; provided that Franchisee acknowledges and agrees that neither the existence of this Lease Agreement nor any terms thereof that require Owner to perform obligations of Franchisee
hereunder shall serve as an assignment of such obligation to Owner (or Franchisor’s consent thereto) or shall relieve Franchisee of any obligations under this Agreement and Franchisee covenants that Lease Agreement shall in no way limit or
restrict Franchisor’s rights or remedies under this Agreement. 
  

	II.	TERM 

 A. The term of this Agreement shall begin on the
Effective Date and shall expire on October 7, 2025. 
 B. Franchisee may, at Franchisee’s option, obtain renewal of this franchise
for one period of ten (10) years upon compliance with the following terms and conditions: 
 1. Franchisee shall not then be in default
of any material provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its subsidiaries or affiliates and Franchisee shall have substantially complied with all the material
terms and conditions of such agreements during the term thereof; 
 2. Franchisee shall have satisfied all monetary obligations owed by
Franchisee and Franchisor or its subsidiaries or affiliates and shall have met these obligations on a reasonably timely basis throughout the term of this Agreement; 
 3. Franchisee shall submit a renewal application to Franchisor not less than twenty-four (24) months nor more than thirty-six (36) months prior to the end of the initial term and shall pay with its renewal
application a renewal fee of one-half (1/2) of the then-current initial application fee being charged by Franchisor; and 
 4. Not less
than twelve (12) months prior to the end of the initial term, Franchisee shall execute Franchisor’s then-current form of franchise agreement, which shall require as conditions precedent to its being effective, among other things, that
Franchisee’s General Manager, department managers (as determined by Franchisor) and other employees comply with Franchisor’s then-current training requirements and that Franchisee upgrade, at Franchisee’s expense, the Hotel to conform
to the then-current standard and specifications of Franchisor as applied to all System hotels, including, without limitation, such structural changes, remodeling, and redecoration and such modifications to existing improvements as may be necessary
to do so. Upon expiration of the initial term of this Agreement and provided Franchisee has complied with the upgrading and other requirements specified in the replacement franchise agreement, Franchisor shall authorize Franchisee to continue
operating the Franchised Business for a ten (10) year renewal term. The replacement franchise agreement shall supersede in all respects this Agreement and the terms may differ from the terms of this Agreement, including, without limitation,
higher royalty and marketing fees. 
  

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	III.	FEES 

 A. Franchisor acknowledges having received from
Franchisee an application fee of Four Hundred Dollars ($400) per guest room in the Hotel or Fifty Thousand Dollars ($50,000), whichever is greater, which fee was paid by Franchisee to Franchisor in consideration for the administrative and other
expenses incurred by Franchisor in processing Franchisee’s application. Franchisee acknowledges and agrees that the application fee is not refundable. Franchisee shall have no right to expand the number of rooms at the Hotel beyond the number
initially approved by Franchisor. If Franchisee proposes to expand the number of rooms, Franchisee must pay to Franchisor, along with its request for approval of expansion, a fee equal to the then-current application fee per guest room for each
proposed additional guest room. The additional application fee will be refundable only if the request for approval is disapproved by Franchisor, which approval or disapproval will be at the sole discretion of Franchisor. The amount refunded will be
the additional application fee less a processing charge. The additional application fee shall be non-refundable upon Franchisor’s approval of the proposed expansion. 
 B. In addition to the fee referenced in Paragraph III.A. above and all other fees set forth in this Section III, Franchisee shall pay to Franchisor or its affiliates, on invoice, a charge in an amount specified by
Franchisor to pay for the following: (i) pre-opening or opening training (or training in connection with a change in ownership of the Hotel) conducted by Franchisor (including travel expenses, room and board), (ii) orientation of
Franchisee’s executives (except travel expenses), (iii) initial training by Franchisor of Franchisee’s employees at the Hotel, (iv) the purchase, staging, programming, installation, interfacing and upgrading of hardware and
Software (as defined herein) for the property management and reservation systems, (v) the Software and license fees for Franchisor’s property management and reservation systems and electronic mail, (vi) charges in connection with the
opening authorization process and the cost of manuals provided by Franchisor, and (vii) any goods or services purchased, leased or licensed by Franchisee from Franchisor or an affiliate of Franchisor and any optional or mandatory programs of
Franchisor or its affiliates in which Franchisee participates. To the extent hardware, software or training related thereto is provided by or purchased or licensed from a third party(ies), the amount of the charges shall account for the cost of any
such third-party hardware, software and related license(s) and training. 
 C. In further consideration of the franchise granted herein,
Franchisee shall pay to Franchisor a continuing royalty fee per Accounting Period (as defined herein) during the term of this Agreement in an amount equal to five percent (5%) of Franchisee’s gross room revenues (as defined herein).

 D. Franchisee shall also remit to Franchisor for each Accounting Period an amount equal to two and one-half percent (2.5%) of
Franchisee’s gross room revenues as a contribution to the marketing fund which shall be maintained and administered by Franchisor, or its affiliates, for the System as provided in Section IX. Franchisor warrants and represents that each System
hotel operated by Franchisor shall make contributions to the marketing fund at the same percentage of gross room revenues required of franchisees within the System. Franchisor may periodically increase the marketing fund contributions for all hotels
in the System including the Hotel, provided the total marketing fund contribution required of Franchisee in any fiscal year shall not exceed three and one-half percent (3.5%) of Franchisee’s gross room revenues. 
 E. Franchisee shall also remit the reservation system fees to Franchisor for each Accounting Period, including: (i) the percentage reservation fee;
(ii) the transaction reservation fee; and 

  

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(iii) the communication support fee. Reservation system fees shall be subject to increase or decrease by Franchisor; provided, however, any increase or
decrease shall apply equally to all hotels in the System including SpringHill Suites by Marriott hotels operated by Franchisor or any subsidiary of Franchisor. Franchisor reserves the right to modify or change the reservation system and the basis
for computing reservation system fees, provided the fees are computed on a fair and consistent basis for all System hotels. 
 F.
Additionally, Franchisee shall remit a property management system fee to Franchisor for each Accounting Period, which fee shall be used by Franchisor to maintain Software for the property management system, including enhancements, additions,
substitutions, modifications and upgrades, and to maintain a Help Desk to provide telephone assistance on property management operations for all System hotels (so long as such Help Desk is maintained by Franchisor) plus access fees for each
Accounting Period for electronic mail. The amount charged shall be subject to increase or decrease by Franchisor; provided, however, any increase or decrease shall apply on a fair and consistent basis to all hotels in the System including SpringHill
Suites by Marriott hotels operated by Franchisor or a subsidiary of Franchisor. 
 G. All payments required in Paragraphs III.C., III.D., and
III.E.(i) shall be paid to Franchisor by the fifteenth (15th) day following the end of each Accounting Period on the gross room revenues during the preceding Accounting Period, and shall be submitted to Franchisor together with any reports
required under Section XIII. All payments required in Paragraphs III.E.(ii), III.E.(iii), and III.F. shall be paid to Franchisor pursuant to the timing set forth in the invoice forwarded to Franchisee, which shall not be less than ten (10) days
after Franchisee’s receipt of the invoice. Any payment or report not actually received by Franchisor on or before such date shall be deemed overdue. If any payment is overdue, Franchisee shall pay to Franchisor, in addition to the overdue
amount, a late charge on such amount from the date it was due until paid, at one and one-half percent (1.5%) per Accounting Period or the maximum rate permitted by law, whichever is less. Entitlement to such late charge shall be in addition to
any other remedies Franchisor may have. 
 H. “Gross room revenues” as used herein shall include all gross revenues attributable to
or payable for rental of guest rooms, including, without limitation, all credit transactions, whether or not collected, and guaranteed no-show revenue that is collected, but excluding any sales or room taxes collected by Franchisee for transmittal
to the appropriate taxing authority. Gross room revenues shall also include all lost revenues and receipts, due to the non-availability of guest rooms, included in the calculation of the proceeds from any business interruption, loss of income, or
other similar insurance. Gross room revenues shall be accounted for in accordance with the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition, 2006, as published by the Educational Institute of the American Hotel &
Lodging Association, or any later edition or revision that Franchisor approves or designates. 
 I. “Accounting Period” as used
herein refers to Franchisor’s fiscal accounting and reporting period. Franchisor’s fiscal year begins on the Saturday closest to January 1 and ends on the Friday closest to December 31, and is comprised of thirteen (13) four
(4)-week Accounting Periods or twelve (12) four (4)-week Accounting Periods and one (1) five (5)-week Accounting Period, depending upon the calendar year. Notwithstanding the foregoing, with Franchisor’s prior consent, Franchisee may
use its own fiscal accounting period for purposes of computing and payment of all fees due under Paragraphs III.C., D., and E(i). 
  

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	IV.	SPRINGHILL FRANCHISE ASSOCIATION 

 If Franchisor should,
during the term of this Agreement, sanction the formation of a SpringHill Franchise Association (hereinafter “SFA”) or such successor association as may be sanctioned by Franchisor to serve as an advisory council to Franchisor with respect
to advertising, marketing, reservations, and other matters relating to SpringHill Suites by Marriott hotels, all franchisees of SpringHill Suites by Marriott hotels and Franchisor shall be members of SFA. In such event, Franchisee shall pay to SFA
all dues and assessments authorized by SFA and shall otherwise maintain its membership in SFA in good standing (“good standing” means SFA dues and assessments are current, Franchisor has authorized Franchisee to operate the Hotel as a
SpringHill Suites by Marriott hotel and Franchisee is not in default hereunder). Such fees shall be consistently applied to all SpringHill Suites by Marriott franchisees. On all matters on which members of SFA are authorized to vote under the bylaws
of SFA, each franchisee member in good standing shall be entitled to one (1) vote for each System hotel it has in operation; and Franchisor shall be entitled to one (1) vote for each System hotel operated by Franchisor or its affiliates
for parties who are not franchisees. 
  

	V.	MANAGEMENT, STAFFING AND TRAINING 

 A. Franchisee shall at
all times be responsible for oversight of the Franchised Business. The operator of the Hotel, either Franchisee or a third-party management company, shall be subject to the prior approval of Franchisor. Except as may be otherwise approved in writing
by Franchisor, the Hotel will be operated by the entity (Franchisee or an approved management company) identified in Attachment A hereto, provided that, in the case of a third-party management company, Franchisor’s approval of such operator
shall be effective only upon the execution by Franchisee and such management company of a Manager Acknowledgment substantially identical to the form set forth at Attachment C attached hereto, and will be subject to Paragraph V.G. below. 

1. In order to be approved by Franchisor as the operator of the Hotel, Franchisee or a proposed management company must be deemed by Franchisor, in
its sole discretion, qualified to manage the Hotel. Franchisor may refuse to approve, as operator of the Hotel, Franchisee or any proposed management company that, in Franchisor’s sole discretion, is inexperienced or unqualified in managerial
skills or operational capacity or capability, or is otherwise unable to adhere fully to the obligations and requirements of this Agreement. Franchisor may also withhold its approval if the proposed management company does not provide Franchisor with
all information that Franchisor may reasonably request. It is understood that Confidential Information (as defined herein) is, in the normal course of business, imparted to System franchisees and managers, and Franchisor will be under no obligation
to approve a proposed management company or replacement management company that is a franchisor or owner of, is under the common control of, is affiliated with, or manages hotels exclusively for the franchisor or owner of, a hotel trade name that is
competitive with Franchisor, irrespective of the number of hotels operating under such trade name. In the event there is a change in the control of the then current management company for any reason whatsoever, or if there is a material adverse
change to the financial status or operational capacity of the management company, Franchisee shall promptly notify Franchisor of any such change, and such management company shall be subject to reapproval in accordance with the provisions of this
Paragraph V.A.1. if (i) in Franchisor’s sole discretion, a change in control has occurred, or (ii) in Franchisor’s Reasonable Business Judgment (as defined in Paragraph XXVI.I.), there has been a material adverse change to the
financial status or operational capacity of the management company that will affect the management company’s ability to operate the Hotel. If the then-current management company becomes a franchisor or owner of, is acquired by, merges with or
into, 

  

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comes under the control of, becomes affiliated with, or begins to manage hotels exclusively for the franchisor or owner of, a hotel trade name that is
competitive with Franchisor, irrespective of the number of hotels operating under such trade name, Franchisee shall promptly notify Franchisor of any such change and Franchisor shall have the right to require Franchisee to terminate such management
company’s relationship with the Hotel. 
 2. When Franchisor has approved in principle the management company nominated by Franchisee,
Franchisee shall have the right to negotiate and execute a management agreement with such management company for the management and operation of the Hotel, subject to the terms, conditions, and obligations of this Agreement. Prior to the management
agreement becoming effective and prior to the assumption of any rights thereunder by a management company, the management company and Franchisee must execute a Manager Acknowledgment substantially identical to the form set forth at Attachment C
attached hereto. Franchisor shall have the right to review the management agreement to ensure that it is consistent with the terms and conditions of this Agreement and the Manager Acknowledgment. 
 B. Franchisee shall, as prescribed in the Manual, employ qualified personnel sufficient to staff all positions at the Hotel. All personnel employed by
Franchisee as General Manager or an Assistant Hotel Manager shall, prior to assuming their duties at the Hotel, attend and successfully (as defined by Franchisor) complete Franchisor’s management training program. All subsequent personnel
employed by Franchisee in the positions of General Manager and Assistant Hotel Manager also must successfully complete Franchisor’s management training program within ninety (90) days after commencement of such employment. Franchisee must
inform Franchisor when a change in such management personnel occurs. Franchisee is not required to employ an Assistant Hotel Manager if and so long as the Hotel has fewer than one hundred ten (110) guest rooms. Franchisor may periodically make
available other required or optional training courses to Franchisee’s personnel, as well as other programs, conferences, seminars and materials, and Franchisee shall insure that such personnel as Franchisor may direct shall satisfactorily
complete any required training within the time specified. Franchisor may conduct pre-opening and opening training (or training in connection with a change of ownership of the Hotel), as determined by Franchisor, for all departments at the Hotel, and
Franchisee shall pay such training fees as specified by the Franchisor for such training. Franchisee shall provide complimentary accommodations at the Hotel for Franchisor’s trainers during the pre-opening and opening training (or training in
connection with a change of ownership of the Hotel). All training shall be provided at such times and locations and for such duration as Franchisor may designate. Franchisee shall pay to Franchisor the applicable tuition fee as specified in the
Manual or otherwise in writing by Franchisor for any required training (including the general manager conference, regardless of whether Franchisee’s personnel attend such conference), and any optional training or meetings attended by
Franchisee’s personnel. Franchisee also shall be responsible for Franchisee’s employees’ travel expenses and room, board and wages during any training. Franchisor reserves the right to require, as a condition of providing training,
that personnel employed by Franchisee execute confidentiality agreements prepared by Franchisor. 
 C. Franchisee’s General Manager (and
Assistant Hotel Manager for System hotels over 109 rooms) shall devote full time to the management and operation of the Hotel, and such persons shall not be employed in any other capacity by Franchisee or its affiliates without the express written
consent of Franchisor. Franchisee covenants and agrees that the Hotel shall not, under any circumstance, be managed by a person or persons who have not successfully completed, within ninety (90) days of employment in such capacity,
Franchisor’s management training program. 
  

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 D. Franchisee shall cause all employees of Franchisee, while working at the Hotel, to wear uniforms as
specified in the Manual; to present a neat and clean appearance; and render competent and courteous service to guests of the Hotel. 
 E.
Neither party will initiate personal contact to employ any person, without prior written consent of the other party, who is at that time employed by the other party or another System franchisee. 
 F. If the Hotel is not operated by Franchisee, but is operated by a management company approved by Franchisor, (i) the provisions of Paragraphs
V.B., V.C., V.D. and V.E. relating to Franchisee’s general manager and other employees, shall apply equally to the general managers and other employees of the management company, and (ii) Franchisor shall have the right to communicate
directly with the management company or the managers at the Hotel as to matters relating to the operation and promotion of the Hotel. 
 G.
Notwithstanding anything to the contrary set forth in this Agreement, the Manager Acknowledgment and/or Franchisor’s Quality Assurance Program, if, during the term of this Agreement, the Hotel is placed in the Yellow Zone for any two
consecutive tracking periods or in the Red Zone for any single tracking period under Franchisor’s Quality Assurance Program, then Franchisor may require, in its sole discretion, Franchisee to replace the then-current management company for the
Hotel (the “Manager”) with a management company that has been approved by Franchisor to operate the Hotel. Such replacement shall occur within sixty (60) days from the receipt by Franchisee (or first refusal of delivery) of a written
notice by Franchisor advising Franchisee that it must replace the Manager. If Franchisee fails to replace Manager in accordance with the terms of this Paragraph V.G., then Franchisee shall be in material default under this Agreement and shall have
thirty (30) days from receipt by Franchisee (or first refusal of delivery) of a written notice of default from Franchisor to cure such default and provide evidence of such cure to Franchisor. If Franchisee fails to cure the default within such
30-day period, Franchisor may, at its option, terminate this Agreement and all rights granted hereunder effective immediately upon the expiration of such 30-day period. For purposes of this Paragraph V.G., capitalized terms not otherwise defined in
this Agreement shall have the meanings set forth under Franchisor’s Quality Assurance Program, as modified from time to time, and the Yellow Zone and Red Zone may be substituted with equivalent standards of unacceptable performance under such
program as modified. 
  

	VI.	OPERATION OF THE HOTEL 

 A. Franchisee understands and
acknowledges that each and every standard, specification and procedure of the System is essential in order to maintain the exceptional quality and guest service of SpringHill Suites by Marriott hotels and enhance public acceptance of, and demand
for, SpringHill Suites by Marriott hotels. Franchisee shall conduct the Franchised Business in strict conformity with the standards, specifications and procedures set forth in the Manual (as described below at Section XI.), which standards,
specifications and procedures shall be consistently applied to all SpringHill Suites by Marriott hotels; provided, however, if the market area or the physical peculiarities of a hotel in the System warrant, in the Reasonable Business Judgment of
Franchisor, a deviation from such provisions, then in such event Franchisor may allow such deviation. Franchisee shall not deviate from the requirements of the Manual, as it may be modified by Franchisor, and shall not otherwise operate in a manner
that reflects adversely on the System, the Proprietary Marks, the goodwill associated therewith or Franchisor’s rights therein, or interferes with or impairs the use of the property as a System hotel. 
  

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 B. Franchisee shall use the Hotel premises solely for the operation of the Franchised Business and
refrain from using or suffering the use of the premises for any other purpose or activity at any time. Franchisee shall not provide, or allow others to provide, any food or beverage service or any other guest service at the Hotel except as
prescribed in the Manual. 
 C. Franchisee shall ensure that no part of the Hotel or the System, without limitation, is used to further or
promote (i) any lodging business (including any other hotel operated by Franchisee or in which Franchisee or a principal of Franchisee holds an interest) operated under a trade name or trademark not owned by Franchisor or its affiliates,
including without limitation advertising or promotion of hotels, vacation or time-sharing facilities (or any similar product sold on a fractional or other basis with use rights on a weekly or other periodic basis), conference centers or other
lodging products, or (ii) except as expressly permitted in the Manual, any business or concession at the Hotel including, but not limited to, car rental agencies, airline counters or gift shop (if the gift shop is not operated by Franchisee),
unless the Franchisee first obtains the prior written consent of Franchisor, which consent may be withheld at Franchisor’s sole discretion. Franchisee shall use every reasonable means to encourage the use of System hotels everywhere by the
traveling public; provided, however, nothing herein shall prohibit, and Franchisee agrees to participate in, any program specified by Franchisor for referring prospective customers to other hotels when the customers cannot be accommodated by
Franchisee’s Hotel or any other System hotel. Nothing herein shall prohibit Franchisee or an affiliate of Franchisee from developing, operating or promoting other hotels or lodging facilities so long as Franchisee satisfies the provisions of
Paragraphs VI.A., B. and C. of this Agreement. 
 D. Franchisee shall honor at the Hotel all credit cards specified in the Manual. Franchisee
also agrees to participate in all customer surveys and guest satisfaction audits and offer all guest services, which may include complimentary services, as Franchisor may prescribe for System hotels including, without limitation, programs and
services for senior citizens, children and frequent guests. Additionally, Franchisee shall participate in travel agent programs, any complaint resolution and other programs as Franchisor may reasonably establish for the System, which programs may
include, without limitation, providing complimentary rooms or refunds to guests. 
 E. Franchisor shall administer a quality assurance
program for the System that may include conducting periodic inspections of the Hotel and guest satisfaction audits and surveys to ensure compliance with System standards. Any such program to survey guests will be as set forth in the Manual, and such
program may be modified by Franchisor. Franchisee’s failure to maintain acceptable results in Franchisor’s quality assurance program will be a material default under this Agreement giving Franchisor the right to terminate this Agreement
pursuant to Section XVII. Franchisee hereby grants to Franchisor and its representatives the right to enter upon the premises of the Hotel at all reasonable times, with or without prior notice, for the purpose of conducting inspections. Franchisee
shall (i) provide lodging, if available, without charge to Franchisor’s agents during such time as may reasonably be necessary to complete the inspections, (ii) cooperate fully with Franchisor’s agents during the inspections, and
(iii) take all steps reasonably necessary to correct any deficiencies detected within the time specified by Franchisor. Franchisee shall provide all information requested by Franchisor for the purpose of Franchisor’s conducting guest
satisfaction audits and surveys. 
 F. Franchisee hereby acknowledges and agrees that the termination of the Existing Franchise Agreement and
execution of this Agreement does not change or affect the status or performance of the Hotel under the Quality Assurance Program (the “QA Program”) prior to the Effective Date, including its performance for the current tracking period, or
Franchisor’s rights thereunder with respect to such performance. Should the Hotel’s performance in the current tracking period fail to meet 

  

 10 

 
the QA Program requirements, the Hotel will be subject to the applicable terms for such failure as set forth in the Manual. If the Hotel is in the Red Zone
for the current tracking period and re-enters the Red Zone during any of the four tracking periods following the Effective Date, Franchisee will be in default of this Agreement, and if such default is not cured within the applicable cure period,
this Agreement may be subject to termination. 
  

	VII.	FURNISHING AND MAINTAINING THE HOTEL 

 A. Franchisee shall,
at Franchisee’s expense, purchase or lease and install at the Hotel all fixtures, equipment, furnishings, furniture, a telephone system, facsimile machine, copier, signs, computer terminals and hardware and related equipment for the property
management system, reservation system, and all other items (“FF&E”) specified by Franchisor for the System. Franchisee also shall install and maintain, or arrange to have installed and maintained at the Hotel, all coin-operated vending
machines specified by Franchisor for the System. Franchisee shall refrain from installing or permitting to be installed at the Hotel, without Franchisor’s prior written consent, any FF&E, electronic or video games, vending machines or any
other items not previously approved by Franchisor. The size, form, color scheme, content (except for prices to be charged) and location of all signs, advertisements and graphic materials displayed in any public area or guest rooms at the Hotel shall
be as prescribed in the Manual or otherwise approved in writing by Franchisor. Franchisee shall obtain and display at the Hotel, in accordance with applicable laws and regulations, in prominent locations approved by Franchisor, one or more
illuminated exterior signs meeting Franchisor’s standards and specifications and purchased from a source previously approved by Franchisor. 
 B. Franchisee shall use only such FF&E, supplies and other goods and services at the Hotel that conform to Franchisor’s standards and specifications. Franchisor may specify for System hotels a particular model or brand of FF&E
that may be available from only one manufacturer or supplier. Additionally, Franchisor may, in its discretion, specify that certain food products, FF&E, communication systems, supplies and other goods and services be purchased only from
Franchisor or sources designated or approved by Franchisor. If Franchisee wishes to obtain any FF&E, supplies or other goods and services for which Franchisor has established a standard or specification from a source that Franchisor has not
previously approved as meeting its standards and specifications, Franchisee shall submit a written request to Franchisor and provide such other information and samples as are necessary for Franchisor to determine whether the item and source meet
Franchisor’s then-current criteria. Provided that Franchisee complies with Franchisor’s processes and procedures regarding approval of alternate or additional manufacturers or suppliers, Franchisor shall respond to such requests within a
reasonable period of time. Franchisee shall not purchase any FF&E and other capital items for the Hotel unless such purchase is from a source designated as “approved” by Franchisor or unless Franchisor has approved in writing that the
item proposed by Franchisee meets Franchisor’s standards and specifications. Prior to seeking approval from Franchisor to purchase “soft goods” and “case goods” FF&E from an unapproved source, or where the Hotel will be
using a non-prototypical guestroom, Franchisor may require Franchisee to prepare models of the basic types of rooms (double/double, king and/or single) to be used in constructing or renovating the Hotel, furnish the same with the FF&E proposed
for use therein, and provide Franchisor any opportunity to inspect the model rooms to determine whether such FF&E proposed for use therein satisfies the Standards. Franchisor may modify its standards and specifications in its sole discretion.
Franchisor reserves the right, at its option, to revoke its approval as to future purchases if the source or the item fails to continue to meet Franchisor’s standards and specifications. 
 C. Franchisee shall maintain the Hotel, including, without limitation, all signs (interior and exterior), parking areas, entrance ways, landscaping, and
all other facilities and 

  

 11 

 
appurtenances in first-class condition. In connection therewith, Franchisee shall make, at Franchisee’s sole cost and expense, all additions,
alterations, repairs and replacements of signs and other FF&E as Franchisor may reasonably direct; and Franchisee shall not make any material alterations to the Hotel without first obtaining the prior written consent of Franchisor. 

D. After approximately the fifth (5th) anniversary of the Opening Date and each five (5) year period thereafter (or such longer period as
provided in the System standards), Franchisor shall have the right to require upon notice that Franchisee upgrade the Hotel at Franchisee’s sole cost and expense to conform to the building décor and trade dress and FF&E required
under Franchisor’s then-current System standards, (which standards shall be applied consistently throughout the System for hotels of similar age), including, without limitation, such FF&E replacements, remodeling, redecoration and
modifications to existing improvements as may be necessary to do so. Franchisee shall submit its plans for such upgrading and remodeling to Franchisor for its review and approval prior to commencing same. Upgrades to the Hotel required by Franchisor
pursuant to this Paragraph VII.D., considering the then-current System standards and requirements and the current structural design of the Hotel, shall be subject to Franchisor’s Reasonable Business Judgment. Franchisee shall complete within
the time specified by Franchisor upgrading and remodeling of the Hotel as required by Franchisor pursuant to this Paragraph VII.D., and Franchisee acknowledges that its failure to do so, except for delays that may be caused by the occurrence of
event(s) constituting force majeure, shall constitute a material default under this Agreement giving Franchisor the right to terminate this Agreement pursuant to Paragraph XVII.B. 
 E. Recognizing the importance of FF&E replacements, remodeling, redecoration and modifications to existing improvements that may become necessary for
Franchisee to undertake pursuant to this Section VII., Franchisee agrees as follows: 
 1. In order to provide funds to accomplish the
significant FF&E replacements, remodeling, redecoration and modifications to existing improvements that may become necessary or required pursuant to this Section VII., Franchisee shall establish, at a bank selected by Franchisee, an escrow
reserve account (the “Reserve”), which Reserve shall be funded on a monthly basis. The Reserve shall not be used for (i) repairs, alterations, improvements, renewals or replacements to the Hotel building’s structure or to its
mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, which structure and operating systems shall be maintained in good repair and condition (ii) any of the renovation requirements (as set
forth in the Addendum and further described under the Scope of Work attached as Exhibit A to the Addendum). 
 2. Franchisee shall transfer
into the Reserve each month, an amount equal to five percent (5%) of gross revenues (as defined herein) each year throughout the term of this Agreement. The term “gross revenues” as used in this Section includes gross room revenues,
as well as the revenues from all other operations of the Hotel, including but not limited to revenue from Hotel restaurant, lounge, banquet, meeting, catering, convention, event, dining and other food or beverage service operations. 
 3. At the end of each year, any amounts remaining in the Reserve shall be carried forward to the next year. Such amounts carried forward shall not be
credited against or decrease the amount otherwise required to be deposited in the Reserve in the next year. 
 4. At the request of
Franchisor, Franchisee shall prepare an estimate (“Renovation, Replacement and Renewal Estimate”) of the expenditures necessary each year from the Reserve for the necessary replacements and renewals of FF&E and the significant
renovations set forth in 

  

 12 

 
this Section VII to be made during the ensuing year and shall submit the Renovation, Replacement and Renewal Estimate to Franchisor for its review and
approval. Additionally, at the request of Franchisor, Franchisee shall each year provide plans covering the next succeeding five (5) years that (i) address renovations, replacements and renewals of FF&E required to comply with the
Standards (as defined herein), and (ii) identify the availability of funding for same. 
 5. Franchisee acknowledges that the
percentage deductions for the Reserve set forth in Paragraph VII.E.2. may not be sufficient to keep the Reserve at the levels necessary to make the replacements and renewals to the Hotel’s FF&E of the nature described in this Section VII.
that are required to maintain the Hotel in accordance with Franchisor’s System requirements. In the event the available funds in the Reserve are insufficient to properly maintain the Hotel in accordance with the provisions of this Agreement,
Franchisee will promptly provide the necessary additional funds, which additional amounts will not be credited against or otherwise decrease amounts required to be deposited in the Reserve in subsequent years. 
  

	VIII.	RESERVATION AND PROPERTY MANAGEMENT SYSTEMS 

 A. As long as
Franchisee is in compliance with all material terms of this Agreement, Franchisor shall make available to the Hotel the reservation system provided by Franchisor for all SpringHill Suites by Marriott hotels, which system may be modified or changed
by Franchisor. Franchisee acknowledges that offering the public a single, efficient reservation service is essential to the goodwill, reputation and success of the System. Franchisee shall participate during the term of this Agreement in the
reservation system, and observe all terms and conditions of participation as determined by Franchisor. Franchisee shall be solely responsible for notifying the reservation system office (or such other office as Franchisor may designate in writing)
of any changes in Franchisee’s room rates. Franchisee shall in no event charge any guest a rate higher than the rate specified to the guest by the reservation system center at the time the guest’s reservation was made. Such rate shall be
the rate most recently provided to the reservation system office, according to the records of such office, by Franchisee prior to the guest’s having made such reservation. 
 B. Franchisee, at its expense, shall purchase, install and maintain at the Hotel all equipment necessary for participation in the reservation system
provided by Franchisor, including any future enhancements, additions, substitutions or other modifications specified by Franchisor. Franchisee, at its expense, shall purchase, install and maintain at the Hotel all computer software and accompanying
documentation (including all future enhancements, upgrades, additions, substitutions, and other modifications thereof) provided to Franchisee by or through Franchisor and/or third parties designated by Franchisor for use by System hotels
(“Software”). Franchisee shall also be responsible for telephone line charges for connecting Franchisee’s reservation equipment to the system, for the cost of supplies used in the operation of the equipment and for all other related
expenses. 
 C. In the event Franchisee fails to pay, when due, royalties, marketing fund contributions, reservation system fees or other
sums related to the Franchised Business owed to Franchisor or its affiliates or is otherwise in material default under this Agreement, Franchisor may, if such default is not cured within the applicable cure period pursuant to Section XVII., after
notice to Franchisee, suspend the Hotel from the reservation system for so long as Franchisee remains in default. Franchisee waives all claims against Franchisor arising from Franchisee’s suspension from the reservation system pursuant to this
paragraph. 
  

 13 

 D. Franchisor has developed (or may engage a third party to develop) for all System hotels a property
management system (“PMS”) and shall provide (or cause a third party vendor to provide) to Franchisee specifications and all required applications Software for PMS, which may include a designated supplier(s) for hardware and/or Software.
Franchisee shall, at its expense, purchase, install, maintain and use PMS hardware and install and use all required Software. 
 E. As part
of the reservations system and PMS, Franchisee shall use, at Franchisee’s sole cost and expense, the communication system(s) specified or otherwise approved in writing by Franchisor for System hotels. 
 F. All Software, and all electronic access to Franchisor systems and data, provided to Franchisee in connection with the System, whether provided on the
Effective Date or at any time thereafter (collectively, “Electronic Systems”), shall at all times remain the sole property of Franchisor or any third-party vendors, as applicable, and as a condition to using such Electronic Systems,
Franchisee shall execute the form electronic systems license agreement attached hereto as Attachment D (the “Electronic Systems License Agreement”). Franchisee shall at all times treat the Electronic Systems as confidential. Franchisee
acknowledges that Electronic Systems will be modified, enhanced, replaced, become obsolete, that new Electronic Systems will be created to meet the needs of the System and hotels operating in it and the continual changes in technology, and that any
such new Electronic Systems shall be subject to the terms of the Electronic Systems License Agreement. If from time to time during the term of this Agreement Franchisor determines that it is advisable or necessary to amend the Electronic Systems
License Agreement or have a new Electronic Systems License Agreement executed by Franchisee as a result of the creation, modification, enhancement, replacement or obsolescence of any Electronic Systems, Franchisee, upon the request of Franchisor,
shall, as required by Franchisor, execute the then current form of Electronic Systems License Agreement or an amendment to the Electronic Systems License Agreement. Franchisee agrees that Franchisee shall, at its expense, purchase, install, maintain
and use the Electronic Systems required by Franchisor during the term of this Agreement. 
  

	IX.	ADVERTISING AND MARKETING 

 A. Franchisee shall be
responsible at its own expense for providing local advertising, marketing, promotional and public relations programs and activities for the Hotel, all in accordance with the Manual or otherwise approved in writing by Franchisor. All advertising by
Franchisee in any medium shall be conducted in a dignified manner and shall conform to such standards and requirements as Franchisor may prescribe. Franchisee shall submit to Franchisor (through the mail, return receipt requested), for its prior
approval, samples of all advertising and promotional plans and materials and public relations programs that Franchisee desires to use, including, without limitation, any materials in digital, electronic, or computerized form, or in any form of media
now or hereafter developed (e.g., materials to be made available through a computer or telecommunications network such as the Internet), that have not been either provided or previously approved by Franchisor. Any advertising, marketing or sales
concepts, programs or materials proposed or developed by Franchisee for the Hotel and approved by Franchisor may be used by other System hotels without any compensation to Franchisee. 
 B. Recognizing the value of marketing and advertising to all System hotels, Franchisee agrees that Franchisor or its designee shall administer a
marketing fund (“Fund”) for the System as follows: 
 1. Except as set forth at Paragraph B.3. below, the Fund shall be used on
behalf of the System for advertising and marketing, including, without limitation, any and all costs 

  

 14 

 
associated with developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and
public relations materials, programs, campaigns, sales and marketing seminars and training programs and activities of every kind and nature, through media now existing or hereafter developed, including producing and disseminating a SpringHill Suites
by Marriott Directory, conducting marketing research and administering and maintaining guest programs (except for complimentary guest services to be provided by the Hotel pursuant to Paragraph VI.E. hereof), customer surveys and guest satisfaction
audits, advertising/public relations agency fees and expenses, production and media costs, and administering and maintaining any part of frequent traveler programs. All sums paid by Franchisee, other SpringHill Suites by Marriott franchisees and
Franchisor to the Fund, plus any interest or other income earned from such contributions, shall be maintained in a separate account from the other funds of Franchisor and shall be used to defray any of Franchisor’s reasonable administrative
costs and overhead Franchisor incurs in directing and administering the Fund including, without limitation, the cost of collecting and accounting for the Fund. Franchisor has the right to make loans to the Fund, and is entitled to receive interest
on those loans. The actual advertising and marketing program activities that will be supported by the Fund may change and shall be determined by Franchisor. 
 2. Franchisor or its designee shall direct all advertising, promotional and public relations programs using Franchisor’s Reasonable Business Judgment over the concepts, materials and media used in such programs
and activities and the placement and allocation thereof. Franchisee acknowledges that, with respect to advertising, the Fund is intended to maximize general public recognition, acceptance and use of the System and that Franchisor and its designees
undertake no obligation in administering the Fund to make expenditures that are equivalent or proportionate to Franchisee’s contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the Fund.

 3. Franchisor shall have the right, in its sole discretion, to use up to twenty percent (20%) of the Fund to develop and enhance or
improve the computer systems designated by Franchisor for use by the SpringHill Suites by Marriott System. Such portion of the Fund shall be accounted for separately, and it shall be known as the “Technology Fund.” If implemented, the
Technology Fund may be used by Franchisor to pay any costs or other expenses associated with the acquisition, design, development, modification, improvement, replacement, installation, implementation, training efforts and/or ongoing usage,
maintenance or support of and for any automated systems (whether software, service or hardware) used at or for the benefit of the hotels in the System. If Franchisor determines, in its sole discretion, that any such costs or other expenses shall not
be paid from the Technology Fund, then such costs and expenses shall remain the sole obligation of Franchisee outside the Fund. 
 4. The
parties anticipate that all contributions to the Fund shall be expended during the taxable year within which the contributions are made. 
 5. The Fund is not an asset of Franchisor. An accounting of the operation of the Fund shall be prepared annually and shall be available to Franchisee. 
 6. Franchisor reserves the right to terminate the Fund and establish other methods for advertising and marketing SpringHill Suites by Marriott hotels in Franchisor’s Reasonable Business Judgment. The Fund shall
not be terminated, however, until all monies in the Fund have been expended for the purposes described in this Paragraph IX.B. 
  

 15 

 7. When collateral materials are produced, all SpringHill Suites by Marriott hotels will receive an
equitable portion of the materials. Should the Hotel require an additional amount of any collateral material, the Hotel shall pay for the costs of such additional material. 
 C. In connection with the initial opening of the Hotel for business, Franchisee shall conduct an advertising and marketing campaign as prescribed by
Franchisor or as otherwise agreed upon by Franchisee and Franchisor. 
 D. Franchisee agrees to the listing of the Hotel in the SpringHill
Suites by Marriott Directory for so long as one is produced by Franchisor, and Franchisee shall furnish to Franchisor such information as Franchisor may request for that purpose. Franchisee shall, as set forth in Paragraph IX.F., determine the rates
for the Hotel that appear in the Directory. Franchisor shall have no liability for the failure of any hotel to honor any Directory rates. Franchisee agrees to not charge higher rates than those Franchisee causes to be published in the Directory and
to comply with such requirements with respect to the Directory as may be specified in the Manual. 
 E. Franchisor may establish and
coordinate cooperative advertising, marketing and sales programs, customer satisfaction programs, frequent traveler programs, travel agency programs and other programs or activities among System hotels (including the Hotel). These programs or
activities may be on a local, regional or national basis or based on the market orientation of System hotels, and they may include participation by other lodging products of the Marriott Companies. Franchisee shall participate in such programs and
activities as Franchisor may prescribe, and such programs and activities may (at Franchisor’s option) be paid for partially or wholly by the Fund or outside the Fund on a pro rata or other fair and consistent basis by the participants.

 F. Franchisee is responsible for setting its own prices and rates, although Franchisor may prohibit certain types of charges or billing
practices that Franchisor determines are misleading or otherwise detrimental to the System, such as incremental fees for services that guests would normally expect to be included in the room charge, or require that Franchisee price consistently in
various distribution channels. Franchisor may recommend or suggest prices or rates for the products and services offered by Franchisee, including in connection with Franchisee’s participation in various sales or revenue management programs,
account management programs, and/or other consulting services or promotions offered by Franchisor and its affiliates. Franchisor’s recommendations or suggestions concerning prices or rates are not mandatory, Franchisee is ultimately responsible
for determining the prices or rates at which it offers its goods and services, and Franchisor’s recommendations and suggestions shall not be deemed a representation or warranty by Franchisor that the use of such suggested or recommended prices
or rates will produce, increase or optimize Franchisee’s profits. Franchisee shall honor any price to which it commits in connection with its participation in programs or promotions. 
  

	X.	PROPRIETARY MARKS AND INTELLECTUAL PROPERTY 

 A. Franchisor
represents with respect to the Proprietary Marks that: 
 1. Franchisor is the owner of all right, title, and interest in and to the
Proprietary Marks or has a license to grant Franchisee’s use thereof; 
 2. Franchisor will take all steps reasonably necessary to
preserve and protect the ownership and validity of such Proprietary Marks; and 
  

 16 

 3. Franchisor will use reasonable efforts to assure that all SpringHill Suites by Marriott franchisees
use the Proprietary Marks only in accordance with the System and standards and specifications attendant thereto. 
 B. With respect to
Franchisee’s use of the Intellectual Property (as defined herein below) pursuant to this Agreement: 
 1. Franchisee shall use the
Intellectual Property only in the manner authorized and permitted by Franchisor; 
 2. Franchisee shall use the Intellectual Property only
for the operation of the Hotel franchised hereunder at the Approved Location; 
 3. During the term of this Agreement, Franchisee shall
identify itself as the owner of the Hotel in conjunction with any use of the Proprietary Marks, including, but not limited to, invoices, order forms, receipts, business cards and contracts, as well as in a notice of such content and form and at such
conspicuous locations at the Hotel as Franchisor shall designate in the Manual; 
 4. Franchisee’s right to use the Intellectual
Property is limited to such uses as are authorized under this Agreement, and any unauthorized use thereof shall constitute an infringement of Franchisor’s rights; 
 5. Franchisee shall not use the Intellectual Property to incur any obligation or indebtedness on behalf of Franchisor; 
 6. Franchisee shall not use the names “SpringHill Suites by Marriott,” “SpringHill Suites” or “Marriott” (or any of the Proprietary Marks or marks or names that are in Franchisor’s
sole opinion similar thereto) as part of its corporate or legal name or in connection with any other business activity or venture (other than the Hotel), or apply for trademark or service mark registration or domain name registration of any
Proprietary Mark, any variation thereof or any mark similar to any Proprietary Mark in the United States or any other jurisdiction; 
 7.
Franchisee shall comply with Franchisor’s instructions in filing and maintaining any required trade name or fictitious name registrations and shall execute any documents deemed necessary by Franchisor to protect the Proprietary Marks or
maintain their validity and enforceability (Franchisor shall pay any required filing or similar governmental fee incurred by Franchisee resulting from its compliance with Franchisor’s instructions pursuant to this sub-paragraph); and

 8. In the event that litigation involving the Proprietary Marks is instituted or threatened against Franchisee, Franchisee shall promptly
notify Franchisor in writing and shall cooperate fully in defending or settling such litigation; Franchisor shall take actions in its Reasonable Business Judgment necessary to defend or settle such litigation and shall indemnify and hold Franchisee
harmless against any and all claims that Franchisee’s use of the Proprietary Marks, in accordance with the terms of this Agreement, infringes upon the rights of any other party, as well as the costs, including reasonable attorneys’ fees,
of defending against such claims. 
  

 17 

 C. Franchisee understands and acknowledges that: 
 1. Franchisor is the owner (or licensee as set forth above at Paragraph X.A.1.) of all right, title, and interest in and to the Intellectual Property and
the goodwill associated therewith and symbolized by the Proprietary Marks; 
 2. the Proprietary Marks are valid and serve to identify the
System and those who are franchised under the System; 
 3. any and all Intellectual Property is subject to change, addition and deletion,
and if any such action is taken by Franchisor, Franchisee shall bear the cost of conforming the Hotel and the Franchised Business to any such change, addition or deletion; 
 4. Franchisee shall not directly or indirectly contest the validity of the ownership of the Intellectual Property; 
 5. Franchisee’s use of the Intellectual Property and the System pursuant to this Agreement, including without limitation, any addition or
modification to the System proposed by Franchisee and adopted by Franchisor, shall not give Franchisee any ownership interest or other interest in or to the Intellectual Property or the System, except the nonexclusive license granted herein;

 6. any and all goodwill arising from Franchisee’s use of the Intellectual Property and the System shall inure solely and exclusively
to Franchisor’s benefit, and upon expiration or termination of this Agreement and the franchise granted herein, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee’s use of the System or the
Intellectual Property; 
 7. the right and license of the Intellectual Property granted hereunder to Franchisee is nonexclusive, and
Franchisor thus may itself use and grant licenses to others to use the Intellectual Property ; and establish, develop, and license other systems, that use the Intellectual Property and the System, without offering or providing Franchisee any rights
in, to, or under such other systems; and 
 8. the Intellectual Property will be used for marketing of Franchisor’s and its
affiliates’ lodging products and business operations only and will not be used in any combined sales or marketing activities by Franchisee with any other products, concepts, brands, or services without the prior written approval of Franchisor,
which approval may be granted or withheld in Franchisor’s sole discretion; any such unapproved combined sales and marketing effort by Franchisee will constitute a default under this Agreement. 
 D. “Intellectual Property” means: (i) all Software; including the data and information processed or stored thereby; (ii) the Manual
and all brochures, directives and other information issued by or on behalf of Franchisor for use in the operation of the Hotel or any other hotel in the System; (iii) customer information, customer lists and Guest Profile Data (as defined
below); (iv) all Proprietary Marks; and (v) all Confidential Information, and all other information, materials, and copyrightable or patentable subject matter developed, acquired, licensed or used by Franchisor or any of its partners or
affiliates in the operation of the Hotel or in any other hotel in the System. The foregoing shall apply regardless of the form or medium involved (e.g., paper, electronic, tape, tangible or intangible). “Guest Profile Data” means each
personal guest profile and information regarding guest preferences, including, without limitation, any information derived from or contained in any frequent traveler program. 
  

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	XI.	SYSTEM STANDARDS MANUAL 

 A. Franchisor has provided to, or
made available to, Franchisee Franchisor’s compilation (the “Manual”) of operating rules, procedures and standard operating procedures, systems, guides, requirements, standards, specifications and controls for hotels in the System
(the “Standards”). The Manual may be in hard paper copy or it may be made available to Franchisee in digital, electronic or computerized form or in some other form now existing or hereafter developed that would allow Franchisee to view the
contents thereof. If the Manual (or any changes thereto) is provided in a form other than paper copy, Franchisee shall pay any and all costs to retrieve, review, use or access the Manual. Franchisee shall conduct the Franchised Business in strict
compliance with the Manual as it may be modified by Franchisor. The provisions of the Manual shall be consistently applied by Franchisor to all SpringHill Suites by Marriott hotels, as applicable; provided, however, if the market area or the
physical peculiarities of a SpringHill Suites by Marriott hotel warrant, in the Reasonable Business Judgment of Franchisor, a deviation from such provisions, then in such event Franchisor may allow such deviation. 
 B. Franchisee shall at all times treat the Manual, all revisions thereto, and any other manuals created for or approved for use in the operation of the
Hotel, and the information contained therein as confidential, and shall use all reasonable efforts to maintain such information as confidential. Franchisee shall not at any time, without Franchisor’s prior written consent, copy, duplicate,
record or otherwise reproduce the foregoing materials, in whole or in part, or otherwise make the same available to any unauthorized person. 
 C. The Manual shall at all times remain the sole property of Franchisor. 
 D. Franchisor may in its sole discretion revise in any
way whatsoever the contents of said Manual. Franchisor shall provide to Franchisee a copy of all revisions and additions to the Manual, and Franchisee expressly agrees to comply with each new or changed standard. At Franchisor’s sole option,
such versions and additions may be provided via hard paper copy or made available to Franchisee in digital, electronic or computerized form or in some other form now existing or hereafter developed that would allow Franchisee to view the contents
thereof. 
 E. Franchisee shall at all times ensure that Franchisee’s copy of said Manual is kept current and up-to-date, and in the
event of any dispute as to the contents of said Manual, the terms of the Manual then being provided to, or made available to, new franchisees shall be controlling. Franchisee shall maintain the Manual in a safe and secure location, shall take all
reasonable measures to prevent unauthorized access thereto, whether any attempted unauthorized access takes the form of physical access or access via computer or telecommunications networks or otherwise and shall report the theft or loss of the
Manual, or any portion thereof, immediately to Franchisor. At a minimum, Franchisee shall, in the case of computer and telecommunications networks, use the latest available firewall and similar technology to prevent unauthorized access. 

 

	XII.	CONFIDENTIAL INFORMATION 

 Franchisee shall not, during the
term of this Agreement or thereafter, without Franchisor’s prior written consent, which consent may be granted or withheld in Franchisor’s sole discretion, copy, duplicate, record, reproduce, in whole or in part, or otherwise transmit or
make available 

  

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to any unauthorized person any of the following information (collectively, “Confidential Information”): the Manual, any other manuals or documents
created for or approved for use in the System or in the design, construction or operation of the Hotel, any Software and Guest Profile Data and accompanying documentation developed for the System or elements thereof, or any other confidential
information, knowledge, trade secrets, business information or know-how obtained through the use of any part of the System or concerning the System or the operation of the Hotel, which may be communicated or provided to Franchisee, or of which
Franchisee may be apprised, by virtue of Franchisee’s operation of the Hotel under this Agreement or its access to the System. Franchisee may divulge such Confidential Information only to such of Franchisee’s employees or agents as must
have access to it in order to operate the Hotel, provided such employees or agents are apprised of the confidential nature of such information prior to it being divulged and are bound by confidentiality obligations substantially similar to those set
forth herein; all other persons shall be deemed “unauthorized” for purposes of this Agreement. Franchisee shall be liable to Franchisor for any breaches of the confidentiality obligations in this Section XII. by its employees and agents;
provided, however, although Franchisor reserves its rights to pursue all rights and remedies against such agents, and to pursue its rights and remedies against Franchisee for any breaches by such agents for injunctive relief or damages, Franchisor,
however, will not terminate this Agreement for the first breach of this provision by such agents of Franchisee if Franchisee is otherwise complying herewith. Franchisee shall maintain the Confidential Information in a safe and secure location and
shall immediately report to Franchisor the theft or loss of all or any part of the Confidential Information. The contents of the Manual, all Software, and all other information, knowledge, know-how or other data that Franchisor designates as
confidential shall be deemed confidential for purposes of this Agreement. Franchisor shall not disclose such financial information related to Franchisee (as opposed to the Hotel) that Franchisee designates as confidential at the time Franchisee
provides it to Franchisor (“Franchisee Confidential Financial Information”) to any unauthorized third party without the consent of Franchisee if such information is not already in the public domain at the time Franchisee delivers it to
Franchisor or at such later date of disclosure. Franchisor shall have the right to use and disclose any information concerning the operating results of the Hotel, such as average daily rate, occupancy, RevPAR, or such other information that is
entered into the Franchisor’s PMS, reservations and other systems without first obtaining the consent of Franchisee. 
  

	XIII.	ACCOUNTING AND RECORDS 

 A. Beginning on the Effective Date
and throughout the remainder of the term of this Agreement, Franchisee shall maintain and preserve, for at least five (5) years from the dates of their preparation, full, complete and accurate books, records and accounts in accordance with
generally accepted accounting principles consistently applied and in the form and manner prescribed in the Manual or otherwise in writing. Franchisee’s obligation to preserve such books, records and accounts shall survive the termination
hereof. 
 B. Franchisee shall, at Franchisee’s expense, submit to Franchisor by the fifteenth (15th) day of each Accounting Period
after the Opening Date, including the first partial Accounting Period if the Opening Date is on other than the first day of an Accounting Period, a statement covering the immediately preceding Accounting Period in the form prescribed by Franchisor,
accurately reflecting all gross room revenues, the source and amounts of all other revenues generated at the Hotel, room occupancy and rates, reservations data, and such other data or information as Franchisor may require. Additionally,
Franchisor’s property management system may poll the Hotel’s room revenue results daily. 
 C. Upon the request of Franchisor,
Franchisee shall, at Franchisee’s expense, submit to Franchisor an unaudited quarterly and/or annual profit and loss statement for the Hotel (in the form 

  

 20 

 
prescribed by Franchisor) and a balance sheet within thirty (30) days of the end of each fiscal quarter and/or fiscal year during the term hereof. Each
statement shall be signed by Franchisee attesting that it is true and correct. 
 D. Franchisee shall, at its expense, submit to Franchisor,
for review and audit, such other forms, periodic and other reports, records, information and data relating to Franchisee, the Hotel and the Hotel’s marketing, sales and guests as Franchisor may reasonably designate, in the form and at the times
and places reasonably required by Franchisor, upon request and as specified in the Manual or otherwise in writing. Franchisor shall have the right to access the Hotel’s PMS and reservations system directly to obtain marketing, sales and guest
information, and Franchisee shall take all actions necessary to provide such access. 
 E. Franchisor or its designated agent shall have the right at all reasonable times, and upon reasonable notice to Franchisee, to examine and copy, at its expense, all books, records, accounts and tax returns of Franchisee related to the
operation of the Hotel during the preceding five (5) years. Franchisor also shall have the right, at any time, and upon reasonable notice to Franchisee, to have an independent audit made of these books, accounts and records of Franchisee
related to the operation of the Hotel. Franchisee shall provide lodging, if available, without charge to Franchisor’s agents during the time as may reasonably be necessary to complete such audits and to render such other assistance as may
reasonably be requested. If an inspection should reveal that payments have been understated in any report to Franchisor, Franchisee shall immediately pay to Franchisor upon demand, the amount understated plus interest from the date such amount was
due until paid. The rate of interest shall be one and one-half percent (1 1/2%) per Accounting Period or the
maximum rate permitted by law, whichever is less, from the date such amount was due. If an inspection discloses an understatement of three percent (3%) or more for the period being inspected, Franchisee shall, in addition, reimburse Franchisor
for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys’ fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have. If an inspection
should reveal that Franchisee has made overpayments to Franchisor, the amount of any such overpayment, without interest, shall be credited against future payments due and payable to Franchisor by Franchisee hereunder. 
 F. Upon the request of Franchisor: (i) Franchisee, if a natural person or persons, shall submit to Franchisor a list of all owners of this franchise
and the interest held by each; (ii) Franchisee, if a partnership, shall submit to Franchisor a list of all partners and the interest in Franchisee held by each; (iii) Franchisee, if a corporation, shall submit to Franchisor a list of all
shareholders and the interest in Franchisee held by each; provided, however if Franchisee’s shares are publicly held, the list of shareholders required shall include only those who own five percent (5%) or more of the shares outstanding;
or (iv) Franchisee, if a limited liability company, shall submit to Franchisor a list of all members of the limited liability company and the interest in Franchisee held by each. 
  

	XIV.	INSURANCE 

 A. Franchisee, at its expense, shall at all
times during the term of this Agreement procure and maintain such insurance as may be required by the terms of any lease or mortgage on the premises where the Hotel is located, and in any event no less than the following: 
  

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 1. Property Insurance 
 a. Property insurance (or builder’s risk insurance during any period of construction or renovation) on the Hotel building(s) and contents against loss or damage by fire, lightning, windstorm, and all other risks
covered by the usual all-risk policy form, all in an amount not less than ninety percent (90%) of the full replacement cost thereof and a waiver of co-insurance and agreed amount endorsement. Said policy shall also include coverage for
landscape improvements and law and ordinance coverage in reasonable amounts. 
 b. Boiler and machinery insurance against loss or damage
caused by machinery breakdown or explosion of boilers or pressure vessels to the extent applicable to the Hotel. 
 c. Business interruption
insurance covering at least twelve (12) months’ loss of profits and necessary continuing expenses for interruptions caused by any occurrence covered by the insurance referred to in a. and b. immediately above. Such business interruption
insurance shall name Franchisor as an additional insured as its interests may appear. 
 d. If the Hotel is located in whole or in part
within an area identified by the federal government as having a special flood hazard, flood insurance in an amount not less than the maximum coverage available under the National Flood Insurance Program and excess flood coverage with reasonable
limits including business interruption coverage in an amount not less than that set forth in Paragraph XIV.A.1.c. above. 
 e. If the Hotel
is located in an “earthquake prone zone” as determined by the U.S. Geological Survey, earthquake insurance in an amount not less than the probable maximum loss less any applicable deductibles, including business interruption coverage in an
amount not less than that set forth in Paragraph XIV.A.1.c. above, all as determined by a recognized earthquake engineering firm. 
 2.
Workers’ Compensation insurance in statutory amounts on all employees of the Hotel and Employer’s Liability Insurance in amounts not less than $1,000,000 per accident/disease. 
 3. Comprehensive or Commercial General Liability Insurance for any claims or losses arising or resulting from or pertaining to the Hotel or its
operation, with combined single limits of $1,000,000 per each occurrence for bodily injury and property damage. If the general liability coverages contain a general aggregate limit, such limit shall be not less than $2,000,000, and it shall apply in
total to the Hotel only by specific endorsement. Such insurance shall be on an occurrence policy form and shall include premises and operations, independent contractors, blanket contractual, products and completed operations, advertising injury,
employees as additional insureds, broad form property damage, personal injury, incidental medical malpractice, severability of interests, innkeeper’s and safe deposit box liability, and explosion, collapse and underground coverage during any
construction, renovation, upgrading and/or remodeling. 
 4. Liquor Liability (applicable when the Franchisee distributes, sells, serves, or
furnishes alcoholic beverages) for combined single limits of bodily injury and property damage of not less than $1,000,000 each occurrence. 
  

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 5. Business Auto Liability including owned, non-owned and hired vehicles for combined single limits of
bodily injury and property damage of not less than $1,000,000 each occurrence. 
 6. Umbrella Excess Liability on a following form in
amounts not less than $14,000,000 if the Hotel is four or five stories in height above ground or $9,000,000 if the Hotel is three stories or less in height in excess of the liability insurance required under Paragraphs XIV.A.2. through 5.
immediately above. Such coverage shall apply in total to the Hotel only by specific endorsement. Franchisor shall have the right to require Franchisee to increase the amount of coverage if the number of floors of the Hotel above ground is greater
than five or if, in Franchisor’s Reasonable Business Judgment, such an increase is warranted. 
 7. Fidelity insurance coverage or a
fidelity bond in an amount not less than $250,000 per occurrence. 
 8. Such other insurance as may be customarily carried by other hotel
operators on hotels similar to the Hotel. 
 B. The following general insurance requirements will be satisfied by Franchisee. 
 1. All insurance under Paragraph XIV.A.3. through 7. shall by endorsement specifically name as unrestricted additional insureds Franchisor, any affiliate
of Franchisor designated by Franchisor, and their employees and agents. 
 2. Any deductibles or self-insured retentions maintained by
Franchisee (excluding deductibles for high hazard risks in high hazard geological zones, such as earthquake and windstorm, which shall be as required by the insurance carrier) shall not exceed $25,000, or such higher amount as may be approved in
writing in advance by Franchisor. 
 3. All insurance purchased in compliance herewith shall be placed with insurance companies reasonably
acceptable to Franchisor and licensed, authorized or registered to do business in the state where the Hotel is located. Such licensing requirement shall not apply to those insurers providing Umbrella Excess Liability above $5,000,000 under Paragraph
XIV.A.5. 
 4. All insurance required hereunder shall be specifically endorsed to provide that the coverages will be primary and that any
insurance carried by any additional insured shall be excess and non-contributory. 
 5. All insurance required hereunder shall contain an
endorsement whereby the policies shall not be canceled, non-renewed, or materially changed without at least thirty (30) days prior notice to Franchisor. 
 6. All insurance required hereunder may be effected under policies of blanket insurance that cover other properties of Franchisee and its affiliates so long as such blanket insurance fulfills the requirements herein.

 7. Franchisee shall deliver to Franchisor (Attention: Insurance Department), a certificate of insurance (or certified copy of such
insurance policy if requested by Franchisor) evidencing the coverages required herein and setting forth deductibles and the amount 

  

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thereof, if any. Renewal certificates of insurance (or certified copies of such insurance policy if requested by Franchisor) shall be delivered to Franchisor
not less than ten (10) days prior to their respective inception dates. 
 8. Franchisee’s obligation to maintain the insurance
hereunder shall not relieve Franchisee of its obligations under Section XXI. 
 9. All insurance shall be satisfactory to Franchisor in
accordance with standards and specifications set forth in the Manual or otherwise in writing. Should Franchisee for any reason fail to procure or maintain the insurance required by this Agreement, as revised for all franchisees by the Manual or
otherwise in writing, Franchisor shall have the right and authority (without however any obligation to do so) to immediately procure such insurance and to charge the cost thereof to Franchisee, which charges, together with a reasonable fee for
Franchisor’s expenses in so acting, shall be payable by Franchisee immediately upon demand. 
  

	XV.	TRANSFERABILITY OF INTEREST 

 A. Franchisee understands and
acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee, and that Franchisor has granted this franchise in reliance on the business skill, financial capacity, and character of Franchisee and its general
partners, controlling shareholders or controlling individuals. Franchisee shall retain ownership of the Hotel except as may be otherwise approved by Franchisor in writing. Accordingly, neither Franchisee nor any immediate or remote successor to any
part of Franchisee’s interest in this franchise, or any individual, partnership, corporation, or other legal entity that directly or indirectly owns or controls any interest (other than interests of limited partners) in this franchise or in
Franchisee, shall sell, assign (collaterally or otherwise) transfer, convey, mortgage, grant a security interest or otherwise encumber (each, a “Transfer”) any direct or indirect interest in this franchise (including any ownership interest
in Franchisee or any controlling (greater than 15%) interest in any entity that controls Franchisee, but excluding interests of limited partners, if any), and no Transfer of this Agreement, the Franchised Business, or a substantial portion of the
assets (including building and real estate) of the Franchised Business shall occur without the prior written consent of Franchisor. Except as otherwise provided in this Section XV and Section XVI, any Transfer addressed in the immediately preceding
sentence, by operation of law, sale of stock or otherwise, not having the prior written consent of Franchisor will be a material default under this Agreement giving Franchisor the right to terminate this Agreement pursuant to Paragraph XVII.B.4. and
seek injunctive relief as well as monetary damages. Notwithstanding anything to the contrary in this Agreement, Franchisor shall have the right to withhold its consent to any Transfer of any interest in this Agreement, Franchisee or any entity that
controls Franchisee if Franchisee is in default hereunder. 
 B. Except as prohibited under Paragraph XX.F., Franchisor shall not require
approval of the Transfer of all or any part of the assets of the Franchised Business (excluding this franchise, this Agreement, and any stock, partnership or other interests in Franchisee) to banks or other lending institutions that are not a
Competitor (as defined herein) or an affiliate of a Competitor for purposes of any refinancing or as collateral securing a loan made directly to or for the benefit of the Franchised Business. 
 C. Subject to Paragraph XV.D, Franchisor shall not unreasonably withhold its consent to a Transfer of any interest in this franchise, Franchisee, this
Agreement, the Franchised Business, or in a substantial portion of the assets (including building and real estate) of the Franchised Business; provided, however, if a Transfer, alone or together with other previous, simultaneous or 

  

 24 

 
proposed Transfers, would result in the Transfer of a controlling interest (as reasonably determined by Franchisor) in this franchise, Franchisee, the entity
that controls Franchisee, this Agreement, or the Franchised Business, or substantially all of the assets (including building and real estate) of the Franchised Business, Franchisor may, in its sole discretion, require any or all of the following as
a condition of its approval: 
 1. Franchisee shall satisfy all of Franchisee’s accrued monetary obligations to Franchisor, its
subsidiaries and affiliates, and shall execute a general release in a form prescribed by Franchisor of any and all claims against Franchisor, its subsidiaries and affiliates, and their respective officers, directors, agents and employees;

 2. Franchisee shall provide Franchisor with a true and complete copy of the purchase and sale agreement or similar document covering the
transaction; 
 3. the proposed transferee shall submit to Franchisor an application, in the form prescribed by Franchisor, for a new
franchise agreement to replace this Agreement for its unexpired term, and shall pay to Franchisor a transfer fee (which fee shall be refunded, less Ten Thousand Dollars ($10,000) to cover Franchisor’s cost of processing the application, in the
event the application is disapproved). The amount of the transfer fee shall be equal to the amount of the application fee then being charged by Franchisor per room for System franchises for new development multiplied by the number of rooms in the
Hotel or the minimum amount per hotel then being charged by Franchisor for System franchises for new development, whichever amount is greater. In the event that the Transfer involves multiple hotels, must be completed within a short timeframe, or
involves other complications such that Franchisor determines in its Reasonable Business Judgment that it is necessary to obtain outside counsel to complete the Transfer, Franchisor shall have the right to require Franchisee to pay its outside
counsel fees in connection with such Transfer. If, prior to the submission of an application, Franchisee desires Franchisor to review the Hotel to determine the renovations necessary to bring the Hotel into good repair and to conform the Hotel to
Franchisor’s then current standards to transfer, Franchisor may charge its then current Property Improvement Plan (“PIP”) fee (currently, Five Thousand Dollars ($5,000)) to cover Franchisor’s costs associated with such PIP and
consent review under this Paragraph XV.C. If Franchisor enters into a new franchise agreement with the transferee for this Hotel within six (6) months after the PIP and a full transfer fee has been paid to Franchisor in connection therewith,
the PIP fee paid to Franchisor will be refunded or credited against other amounts due from Franchisee to Franchisor at the time of the Transfer. Franchisor also shall have the right to charge Franchisee its costs to inspect the Hotel to evaluate
compliance with Franchisor’s Fire Protection and Life Safety standards at the time of such Transfer. Franchisor reserves the right to reject an application for a Transfer if (i) Franchisor, in its Reasonable Business Judgment, deems the
transferee’s proposed debt service to be too great to permit the transferee to operate the Hotel successfully under the System or (ii) the proposed transferee or the proposed management company, or any of their respective affiliated
entities (other than those holding interests as limited partners only), is a Competitor (as defined in Paragraph XV.D.) or fails to satisfy the requirements of Section V.A.1. In all events, the transferee will be required to certify in writing that
(a) Franchisor did not endorse, recommend, or otherwise concur with the terms of the Transfer, (b) Franchisor did not comment upon any financial projections submitted by Franchisee to the transferee, or (c) Franchisor did not
participate in the decision of the price to be paid, which decision was made without any intervention, support or participation by Franchisor; 
 4. transferee shall demonstrate to Franchisor, in its sole discretion, that the transferee and its shareholders or general partners, as appropriate, meet Franchisor’s managerial and business standards and have the aptitude and ability
to conduct the Franchised Business (as may be 

  

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evidenced by prior related business experience or otherwise); possess good moral character, business reputation and credit rating; and have adequate
financial resources and capital to operate the Franchised Business; 
 5. Franchisor and the transferee will, upon approval of
transferee’s application, enter into a new franchise agreement for the unexpired term of this Agreement, which shall require transferee to upgrade the Hotel to conform to Franchisor’s then-current System standards and requirements, and
which new franchise agreement shall contain the standard terms (except for duration) then being issued for new franchised hotels under the System; 
 6. transferee’s General Manager (and Assistant Hotel Manager for System hotels having more than 109 rooms) shall, prior to assuming management of the Hotel, successfully (as defined by Franchisor) complete the management training
program then being offered by Franchisor; and 
 7. if transferee is a real estate investment trust or other form of publicly-held entity,
or if the Hotel will be operated by a third-party management company, Franchisor may, in its Reasonable Business Judgment, require transferee to establish and maintain a reserve to support the cost of future repairs and replacements of furniture,
furnishings and equipment at the Hotel; transferee shall deposit into such reserve each month throughout the term of the new franchise agreement (or throughout the then unexpired term of this Agreement) an amount equal to five percent (5%) of
gross revenues or such other amount as determined by Franchisor in its Reasonable Business Judgment. 
 D. Notwithstanding anything to the
contrary in this Agreement, no Transfer of the Hotel, an interest in the Hotel, an interest in Franchisee or an interest in an entity that controls Franchisee shall be made to any person or entity that owns, has an interest in, has management
responsibility for, or is an affiliate, principal, officer or director of, a person or entity that owns or has an interest in a hotel brand, trade name, trademark, system or chain (a “Brand”) that is comprised of at least (i) twenty
(20) full-service or (ii) fifty (50) limited-service hotels (a “Competitor”). For the purposes of defining “Competitor” herein, “full-service” hotels are those hotels that typically offer at least three
(3) meals per day and have an average of three thousand (3,000) square feet or more of meeting space per hotel in the hotel Brand, and “limited-service” hotels are all hotels that are not “full-service” hotels. A person
or entity shall not be deemed to be a Competitor if such person or entity has an interest in such Brand merely as a franchisee or as a mere passive investor that has no control or influence over the business decisions concerning the Brand at issue,
such as limited partners in a partnership or as a non-controlling mere stockholder in a corporation. If there is a proposed Transfer to a Competitor of the Hotel, Franchisee’s interest in this Agreement, Franchisee or an affiliate of
Franchisee, or an interest in either Franchisee or such affiliate, and Franchisee or any such affiliate (or such Competitor, as the case may be) wishes to accept such offer, Franchisee shall give notice thereof to Franchisor, stating the full name
and identity of the prospective purchaser or tenant, as the case may be, including the names and addresses of the owners of the capital stock, partnership interests or other proprietary interests of such prospective purchaser or tenant, the price or
rental and all terms and conditions of such proposed transaction, together with all other information with respect thereto that is requested by Franchisor and reasonably available to Franchisee. Within thirty days after receipt by Franchisor of such
written notice from Franchisee, Franchisor, in its sole discretion, shall elect by notice to Franchisee one of the immediately following four alternatives: 
 1. If the proposed Transfer is a sale or lease of the Hotel, for cash consideration, Franchisor (or its designee) shall have the right to purchase or lease the Hotel premises and related property at the same price or
rental and upon the same terms and conditions (other than any terms 

  

 26 

 
relating to the Brand of the Hotel) as those set forth in such offer from (or to) a Competitor. In such event, Franchisee and Franchisor (or its designee)
shall promptly enter into an agreement for sale or lease at the price or rental and on terms consistent with such offer. 
 2. If the
proposed Transfer is a purchase or lease of all or a portion of the ownership interests or assets (which includes the Hotel) of Franchisee or any affiliate of Franchisee, or a merger with or into Franchisee or any such affiliate, or the acquisition
of Franchisee’s interest in this Agreement, or any sale or lease of the Hotel involving non-cash consideration, or other form of Transfer, Franchisor (or its designee) shall have the right to purchase or lease the Hotel premises and related
property at the purchase or lease price pursuant to terms consistent with such offer (other than the non-cash nature of the consideration and any provision relating to the Brand of the Hotel) as agreed to by the parties. If the parties are unable to
agree as to a purchase or lease price and terms within fifteen (15) days of Franchisor’s election, the purchase or lease price of the Hotel premises and related property shall be determined in the manner provided below. Within thirty
(30) days after the expiration of such fifteen (15) day period, Franchisor and Franchisee shall each obtain, at its own expense, an appraisal of the fair market value of the Hotel from a nationally recognized appraiser of hotel properties
comparable to the Hotel. In determining the fair market value, the appraisers shall be instructed to assume that the Hotel is not subject to a management agreement but is subject to the existing Franchise Agreement. If, after receiving the
appraisals, the parties agree on the fair market value of the Hotel, such agreed fair market value shall constitute the purchase or lease price hereunder. If, after receiving such appraisals, the parties are not able within ten (10) days to
agree on such fair market value, the purchase or lease price shall be determined by “baseball arbitration” in Washington, D.C. in accordance with the Arbitration Rules for the Real Estate Industry of the American Arbitration Association
then in effect (“AAA Rules”) as modified by this Agreement. The parties shall jointly select a third party to act as the sole arbitrator (the “Arbitrator”) to determine the fair market value of the Hotel, and such Arbitrator
shall be a person having at least ten (10) years’ recent professional experience as to the subject matter in question and shall be qualified to act as an Arbitrator in accordance with the AAA Rules. If the parties do not agree on an
Arbitrator with such qualifications within fifteen (15) days after the expiration of such ten (10) day period referred to above, the Arbitrator shall be appointed by the American Arbitration Association in Washington, D.C. in accordance
with the AAA Rules. 
 (i) The Arbitrator shall be instructed and obligated to decide, within thirty (30) days after appointment,
whether the appraisal submitted by Franchisor or the appraisal submitted by Franchisee most accurately reflects the fair market value of the Hotel based upon the appraisals submitted and such information as is normally relied upon by an appraiser of
hotels and real estate. Each party agrees to fully cooperate and provide all information requested by the Arbitrator related to the determination of fair market value hereunder. 
 (ii) The Arbitrator’s choice of appraisal shall be in writing, shall constitute the purchase price hereunder, and shall be final, conclusive and
binding on the parties as an “award” under the AAA Rules, and may be enforced by a court of competent jurisdiction. The expenses of the arbitration shall be borne equally by the parties to the arbitration. Franchisor (or its designee)
shall have the right, at any time within thirty (30) days of being notified in writing of the decision of the Arbitrator as aforesaid, to either (a) purchase the Hotel premises and related property at the valuation fixed by the Arbitrator,
or (b) terminate this Agreement pursuant to Paragraph XV.D.3. 
 3. To place Franchisee in default and terminate this Agreement in
accordance with Section XVII.C., in which event Franchisee shall be obligated to pay Franchisor the applicable liquidated damages as set forth at Paragraph XVIII.E. 
  

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 4. To consent to such Transfer, which consent shall be on such terms and conditions as Franchisor may
require, in its sole discretion. 
 Notwithstanding anything to the contrary set forth in this Paragraph XV.D, if a Competitor proposes to acquire all of the
interests of an affiliate of Franchisee, and such affiliate does not, directly or indirectly, own, lease or operate any hotels operating under a trade name owned by a Marriott Company, then in such event, with respect to such Transfer, Franchisor
shall not have any right of first refusal to purchase the Hotel or right to terminate this Agreement as provided above in this Paragraph XV.D. 
 This
Paragraph XV.D. shall survive termination of this Agreement for any reason if, prior to such termination, any event specified in Paragraphs XV.D., XV.E. or XV.F. occurs, as a result of which Franchisor has exercised (or has the right to exercise)
the right of first refusal provided herein. In addition, this Paragraph XV.D. shall survive termination of the Agreement in accordance with Paragraph XV.H. 
 E. If the Transfer to a Competitor is by foreclosure, judicial or legal process, such as execution and levy, Franchisor shall have the right to purchase the Hotel upon notice to Franchisee. If the parties are unable
to agree as to a purchase price and terms within thirty days of Franchisor’s notice, the fair market value of the Hotel premises and related property shall be determined by arbitration pursuant to the procedure set forth in Paragraph XV.D.2.
above. This provision shall survive the termination of this Agreement pursuant to Paragraph XVII.A below in connection with the Competitor’s actions under this Paragraph XV.E. 
 F. If Franchisee or any of its affiliates becomes a Competitor, Franchisee shall so notify Franchisor providing the data required pursuant to Paragraph
XV.D., or if Franchisor otherwise determines that Franchisee or any of its affiliates has become a Competitor, then in either event, Franchisor shall so notify Franchisee and assert that Franchisor has the rights set forth above at Paragraph XV.D.
Provided Franchisor has received sufficient pricing and other data to allow an informed decision, Franchisor shall make its election thereunder within thirty days of Franchisor’s receipt of such notice from Franchisee or within thirty days of
Franchisor’s giving notice to Franchisee in which Franchisor asserts that Franchisee or any of its affiliates has become a Competitor. 
 G. Franchisee acknowledges that Franchisor’s rights under Paragraphs XV.D., XV.E. and XV.F. are real estate rights in the Hotel. Franchisor is entitled to file a record of such interests in and among the appropriate real estate records
of the jurisdiction in which the Hotel is located, and Franchisee shall cooperate as requested by Franchisor in such filing. Franchisee acknowledges and agrees that damages are not an adequate remedy in the event that Franchisee breaches its
obligations under such Paragraphs XV.D., XV.E. or XV.F., and Franchisor shall be entitled to injunctive relief to prevent or remedy such breach, without the necessity of proving the inadequacy of money damages as a remedy and without the necessity
of posting a bond, in addition to such other relief to which it may be entitled in law and equity. Such recording shall indicate that Franchisor’s rights in real estate under Paragraphs XV.D., XV.E. and XV.F. shall be subordinate only to the
interests of bona fide lenders who are not Competitors or affiliates of Competitors and who record a security interest in the Hotel, provided that any such financing and security interests comply with the requirements of Paragraph XX.F. If
Franchisee Transfers the Hotel other than to a Competitor or if a controlling portion of the ownership interests of Franchisee or any entity that controls Franchisee is Transferred to an entity other than a Competitor and this Agreement is
terminated, or if for any other reason Franchisor’s rights under Paragraphs XV.D., XV.E. and XV.F. terminate, at the request of Franchisee or the transferee, Franchisor shall execute and deliver an instrument in recordable form to terminate the
record of its interest in and among the appropriate real estate records of the jurisdiction in which the Hotel is located. 
  

 28 

 H. Except for termination of this Agreement pursuant to Paragraph XV.D.3., Franchisee agrees that
Franchisor’s rights under Paragraphs XV.D., XV.E. and XV.F. shall survive early termination of this Agreement (as opposed to expiration of this Agreement as set forth in Section II) and shall bind Franchisee and its affiliates, if: 

1. prior to or within six months after termination of this Agreement, a proposed Transfer to a Competitor occurs with respect to the Hotel, Franchisee
or an affiliate of Franchisee, or an interest in either Franchisee or such affiliate, and 
 2. either: 
 a. this Agreement is terminated pursuant to Paragraphs XVII.A., XVII.B.1. or 4., or pursuant to Paragraph XVII.C., or pursuant to Paragraph XVII.D. based
upon Franchisee’s failure to pay any indebtedness to Franchisor or any Marriott Company when due and payable or a violation of Section X.; or 
 b. this Agreement is terminated pursuant to Paragraph XVII.A. below and an affiliate, principal or director of Franchisee obtains possession of the Hotel or such affiliate, principal or director is the party filing
the suit or seeking the execution or foreclosure referenced in Paragraph XVII.A. 
 In addition, Franchisor’s rights under Paragraphs XV.D., XV.E. and
XV.F. shall survive any purported early termination of this Agreement (as opposed to expiration of this Agreement as set forth in Section II) by Franchisee, and shall bind Franchisee and its affiliates, if prior to or within six months after such
purported termination, a proposed Transfer to a Competitor occurs with respect to the Hotel, Franchisee or an affiliate of Franchisee, or an interest in either Franchisee or such affiliate. 
 I. Subject to Paragraph XV.D., in the event of the death or mental incompetency of Franchisee or any shareholder or partner of Franchisee, the interest
of such person may be Transferred in accordance with and subject to the terms of Paragraph XV.C., provided that (i) any such Transfer shall be made within six (6) months of the date of death or mental incompetency and (ii) the
obligations of Franchisee under this Agreement are satisfied pending the Transfer, including adequate provision for management of the Hotel. 
 J. Subject to Paragraph XV.D., provided the Franchisee has executed a guarantee substantially identical to the form of guarantee attached to this Agreement and provides to Franchisor documentation evidencing the Transfer by which the
transferee expressly assumes the obligations of Franchisee under the Agreement, then in such event, the Franchisee will have the right to Transfer, without payment of the transfer fee, this Agreement to an entity controlled by Franchisee.

 K. Subject to Paragraph XV.D., and subject to Franchisee’s giving prior notice to Franchisor, any individual holding an interest in
Franchisee shall have the right to Transfer his/her interest in Franchisee or a portion thereof to a member of the immediate family of such individual or to an entity in which such individual and/or a member of his/her immediate family has and
retains the controlling interest; provided, however, if the transferor is Transferring a controlling interest in Franchisee, then in such event, Franchisor shall have the right to require a guarantee, substantially identical to the form of guarantee
attached to this Agreement, from any such transferor. 
  

 29 

 L. If Franchisee is neither a natural person nor a publicly held corporation, the stock of which is
traded on a nationally recognized stock exchange (with no individual holding 5% or more of the outstanding stock), Franchisee represents that its equity is directly and (if applicable) indirectly owned as shown on Attachment A. This Section XV will
be applied by looking through or disregarding direct, indirect and intervening ownership interests in Franchisee to the extent deemed appropriate by Franchisor in order to ascertain the ultimate beneficial ownership and/or control of
Franchisee’s equity. Such ultimate or beneficial interests are referred to in this Section XV. as “equity interest.” The transfer, creation or elimination of an equity interest by operation of law, sale of stock or otherwise, unless
specifically authorized herein, will be a material default under this Agreement giving Franchisor the right to terminate this Agreement pursuant to Paragraph XVII.B.4. 
 M. Franchisor shall have the right to Transfer this Agreement to any person or legal entity without prior notice to, or consent of, Franchisee, provided the transferee assumes Franchisor’s obligations to
Franchisee under this Agreement. Franchisee hereby acknowledges and agrees that any such Transfer shall constitute a release and novation of Franchisor with respect to this Agreement. 
 N. Notwithstanding anything to the contrary in this Agreement, no Transfer shall be made to a Specially Designated National or Blocked Person (as herein
defined below) or to an entity in which a Specially Designated National or Blocked Person has an interest. 
  

	XVI.	SECURITY OFFERINGS 

 A. Publicly-traded securities in
Franchisee or in any entity that directly or indirectly controls Franchisee or any direct or indirect interest in the Hotel previously registered under federal securities law may be Transferred without Franchisor’s consent if (i) the
Transfer is exempt from registration under federal and state securities law, and (ii) the Transfer will not result in a Transfer of control (as reasonably determined by Franchisor) in Franchisee or any entity that directly or indirectly
controls Franchisee. Any Transfer of securities in Franchisee or in any entity that directly or indirectly controls Franchisee or any direct or indirect interest in the Hotel that will result in a Transfer of control requires Franchisor’s prior
written consent, which shall be conditioned upon satisfaction of the requirements of Paragraph XV.C. 
 B. In connection with any proposed
public or private offering to potential investors of securities of Franchisee or any entity that directly or indirectly controls Franchisee or any direct or indirect interest in the Hotel, Franchisee shall: 
 1. submit to Franchisor for its review at least thirty (30) days before the earliest of the date on which any registration statement, solicitation,
prospectus (preliminary or otherwise), private placement memorandum, offering circular, or similar documentation, including any amendments thereto (collectively, the “Prospectus”) is delivered to a potential investor or filed with the
Securities and Exchange Commission or any other governmental authority responsible for the regulation of the sale of securities, a copy of the proposed Prospectus, all supporting and related materials and releases, together with a nonrefundable fee
of $2,000 to reimburse Franchisor for its expense in performing the limited review of the proposed Prospectus in accordance with this Paragraph XVI; 
  

 30 

 2. fully, unconditionally, and in writing, indemnify and hold harmless Franchisor and its affiliates in
connection with the Prospectus, and the offering; 
 3. include in the Prospectus and all supporting and related materials and releases a
disclaimer, in a form approved by Franchisor, that Franchisor and its affiliates are not, in any way, participating in or endorsing the offering or solicitation described therein; 
 4. use any Proprietary Marks in the Prospectus and in any supporting or related materials only as approved by Franchisor in writing; 
 5. provide in the appropriate agreements and other documents related to the offering for establishment of a capital replacement reserve fund escrowing a
percentage of gross room revenues, as reasonably determined by Franchisor, to assure Franchisee’s ability to continue to meet System standards and the periodic upgrade requirements set forth in the Franchise Agreement; and 
 6. refrain from filing, publishing, issuing or releasing the Prospectus or any supporting or related materials without having received the prior written
approval of Franchisor. 
 C. If the indemnification provided for in Paragraph XVI.B.2 above shall for any reason be unavailable or
insufficient to hold Franchisor and its affiliates harmless in respect of any claim, then Franchisee shall, in lieu of indemnifying Franchisor and its affiliates, contribute to the amount paid or payable by Franchisor and its affiliates as a result
of any such claim, action, loss liability, cost, and expense of any kind, including reasonable attorneys’ fees, in respect thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received by Franchisor and
its affiliates on the one hand and Franchisee and its affiliates on the other or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) above but also the relative fault of Franchisor and its affiliates on the one hand and Franchisee and its affiliates on the other with respect to any claim, or action in respect thereof, as well
as any other relevant equitable considerations. Franchisee and Franchisor agree that it would not be just and equitable if contributions pursuant to this Paragraph XVI.C were to be determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to herein. Franchisee’s obligations under this Paragraph XVI.C shall survive the termination or expiration of this Agreement. 
 D. Franchisor’s review of the Prospectus or the information included therein will be conducted solely for the benefit of Franchisor to determine the
accuracy and completeness of any description of Franchisor’s relations with Franchisee and compliance with the other requirements of this section and not to benefit or protect any other person, and its approval shall not constitute any kind of
authorization, acceptance or agreement, endorsement or ratification of the offering or Prospectus, either express or implied. Franchisee agrees to make any and all changes to the Prospectus as Franchisor may request in its Reasonable Business
Judgment in accordance with this Section XVI. 
  

	XVII.	DEFAULT AND TERMINATION 

 A. Franchisee shall be deemed to
be in material default under this Agreement, and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder without affording Franchisee any opportunity to cure the default, effective immediately upon Franchisee’s
receipt or first refusal of delivery of notice by Franchisor, (i) if Franchisee shall become insolvent or make a general assignment for the benefit of creditors, or (ii) if a petition in bankruptcy is filed by Franchisee or such a 

  

 31 

 
petition is filed against and consented to by Franchisee, or (iii) if Franchisee is adjudicated bankrupt, or (iv) if a bill in equity or other
proceeding for the appointment of a receiver of Franchisee or other custodian for Franchisee’s business or assets is filed and consented to by Franchisee, or (v) if a receiver or other custodian (permanent or temporary) of
Franchisee’s assets or property, or any part thereof, is appointed by any court of competent jurisdiction, or (vi) if proceedings for a compromise with creditors under any state or federal law is instituted by, against or consented to by
Franchisee, or (vii) if a final judgment remains unsatisfied or of record for ninety (90) days or longer (unless supersedeas bond is filed), or (viii) if execution is levied against the Hotel or other real or personal property at the
Hotel, or (ix) suit to foreclose any lien or mortgage against the Hotel or any property, real or personal, appurtenant thereto is initiated against Franchisee, or (x) if the real or personal property of the Hotel shall be sold after being
levied upon by any sheriff, marshal, or constable; provided, however, Franchisee shall be granted one hundred twenty (120) days to obtain dismissal of any involuntary receivership, bankruptcy or other insolvency proceeding before Franchisor
will take any action regarding termination so long as no other default by Franchisee then occurs under this Agreement. 
 B. Franchisee shall
be deemed to be in material default under this Agreement and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, upon the occurrence of any of the events in the immediately following subparagraphs (i) with
respect to the following subparagraphs 1, 2, 3, 5, 8, 9, and 10 only, without affording Franchisee any opportunity to cure the default, effective immediately upon Franchisee’s receipt of notice (or refusal of delivery), or (ii) with
respect to the following subparagraphs 4, 6, and 7 only, effective upon expiration of the cure period established by Franchisor in the notice to Franchisee if such default is then uncured. 
 1. if Franchisee fails to obtain or loses control of the Approved Location, or Franchisee ceases to do business at the Hotel or ceases to operate the
Hotel under the Proprietary Marks and System, or loses ownership or possession or the right to possession of the Hotel, or otherwise forfeits the right to conduct the Franchised Business at the Approved Location, except as otherwise provided in
Section XIX.; 
 2. if a threat or danger to public health or safety results from the construction, renovations, upgrading and/or
remodeling, maintenance or operation of the Hotel franchised hereunder, and an immediate shutdown of the Hotel is reasonably determined by Franchisor to be essential to avoid substantial liability or loss of goodwill; provided, however, Franchisor
and Franchisee shall reinstate this Agreement if, within six (6) months after termination under this Paragraph XVII.B.2., the threat or danger to public health or safety is eliminated and Franchisor reasonably determines that reopening the
Hotel would not cause a substantial loss of goodwill; 
 3. if Franchisee or a principal thereof who controls Franchisee is or has been
convicted of a felony, or is or has been convicted of any other crime or offense or has engaged in a pattern or practice of acts or conduct that is likely, as a result of the adverse publicity that has occurred in connection with such offenses, acts
or conduct, in the Reasonable Business Judgment of Franchisor, to adversely affect the System, the Proprietary Marks, the goodwill associated therewith, or Franchisor’s interest therein; 
 4. if Franchisee or any partner or shareholder in Franchisee purports to Transfer any rights or obligations under this Agreement or any interest in
Franchisee, the Franchised Business or the Hotel to any third party without Franchisor’s prior written consent, contrary to the terms of Sections XV. or XVI.; 
  

 32 

 5. if Franchisee (or its employees or agents) intentionally discloses or divulges the contents of the
Manual or other trade secret or Confidential Information contrary to Sections VI., XI. or XII. hereof; 
 6. if Franchisee fails to complete
(except for reasons constituting force majeure), within the time reasonably specified by Franchisor, renovating, upgrading and remodeling of the Hotel as required by Franchisor pursuant to Paragraph VII.D.; 
 7. if Franchisee fails to commence or satisfy the requirements set forth in the Addendum attached hereto within the time set forth at Attachment A or to
complete any work required in the Addendum by such other date as specified in the Addendum; 
 8. if any of the representations and
warranties made by Franchisee pursuant to Section XXIII. proves to have been untrue, incorrect or incomplete when made, deemed made, furnished or as of the date of this Agreement, or if the representations and warranties made by Franchisee pursuant
to Section XXIII.B. fails to be true and correct at any time during the term of this Agreement, or if a Transfer is made in violation of Paragraph XV.N; 
 9. if Franchisee or any of its affiliates receives a notice of default under any financing documents with respect to any hotel that is in the same Financed Pool (as defined in Paragraph XX.F) as the Hotel and such
default is not cured within the applicable cure period; or 
 10. if Franchisee or Owner is in breach of, or default under, the Lease
Agreement or Owner Agreement, and any such breach or default is not cured within any applicable period thereunder, or if the Lease Agreement or Owner Agreement is terminated for any reason. 
 C. Franchisee shall be deemed to be in material default under this Agreement if Franchisee or any of its affiliates becomes a Competitor (as defined at
Paragraph XV.D.) or becomes affiliated with a Competitor, or Transfers an interest in Franchisee, this Agreement or the Hotel to a Competitor, and, in such event, Franchisor shall have the rights provided in this Agreement at Paragraph XV.D.,
including, to terminate this Agreement without affording Franchisee any opportunity to cure the default, effective immediately upon Franchisee’s receipt or first refusal of delivery of notice by Franchisor. 
 D. Franchisee shall be in material default under this Agreement for any failure to comply with any of the requirements imposed by this Agreement, as it
may be supplemented by the Manual, or to carry out the terms of this Agreement in good faith. Except as provided in Paragraphs XVII.A., XVII.B. and XVII.C. and for non-payment of any amounts due to Franchisor or its affiliates, Franchisee shall have
thirty (30) days or such longer period as specified herein after its receipt from Franchisor (or first refusal of delivery) of a notice of default, within which to remedy any default and provide evidence thereof to Franchisor. If Franchisee is
delinquent in payment of any amounts due to Franchisor and its affiliates, Franchisee shall have ten (10) business days after receipt of a notice of non-payment within which to cure such monetary default. If any such default is not cured within
that time, or such longer period as applicable law may require (or such longer period as Franchisor may, in its Reasonable Business Judgment, deem necessary to permit Franchisee to cure any non-monetary default provided Franchisee immediately
commences, diligently and in good faith pursues, and cures, such default), Franchisor shall have the right to terminate this Agreement upon notice to Franchisee. 
  

 33 

	XVIII.	OBLIGATIONS UPON TERMINATION 

 Upon termination or
expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and Franchisee shall comply with all of the obligations applicable to the Approved Location as set forth in this Section XVIII. 
 A. Franchisee shall immediately cease operation of the Hotel as a System hotel and shall not thereafter, directly or indirectly, represent to the public
or hold itself out as a present or former franchisee of Franchisor. 
 B. Franchisee shall immediately and permanently cease to use, by
advertising or in any other manner whatsoever, the names “SpringHill Suites by Marriott” or “SpringHill Suites” and “Marriott” and all variations thereof and all other Proprietary Marks of Franchisor, any other
identifying characteristics and marks of the System, and all Intellectual Property. Franchisee shall forthwith remove from its place of business, and discontinue using for any purpose, any and all signs, fixtures, furniture, furnishings, equipment,
advertising materials, stationery, supplies, forms or other articles that display the Proprietary Marks or any distinctive features or designs associated with the System. Any signs containing the Proprietary Marks that Franchisee is unable to remove
within one day of expiration or termination of this Agreement shall be completely covered by Franchisee until the time of their removal, and, in all events, removal of such signs shall occur within seventy-two hours of termination of this Agreement
and the franchise granted hereby. 
 C. Franchisee shall, at its expense, immediately make such modifications or alterations (except
structural changes) as may be necessary to distinguish the Hotel so clearly from its former appearance and other hotels operated under the System as to prevent any possibility of confusion therewith by the public, and to prevent the operation of any
business at the location of the Hotel by Franchisee or others in derogation of this Paragraph XVIII.C. (including, without limitation, removal of all distinctive physical features identifying System hotels, removal of all distinctive signs and
emblems, and changing of telephone numbers and other directory listings). Franchisee shall, at Franchisee’s expense, make such specific additional changes as Franchisor may reasonably request for this purpose. Until all modifications and
alterations required by this Paragraph XVIII.C. are completed, Franchisee shall (i) maintain a conspicuous sign at the registration desk in a form specified by Franchisor stating that the Hotel is no longer a SpringHill Suites by Marriott hotel
and is not associated with the System, and (ii) until Franchisee has changed telephone numbers, advise all customers and prospective customers telephoning the Hotel that the Hotel is no longer associated with the System. Franchisee expressly
acknowledges that its failure to make such alterations will cause irreparable injury to Franchisor. 
 D. Franchisee shall take such action
as may be necessary to cancel any assumed name or equivalent registration that contains the names “SpringHill Suites by Marriott,” “SpringHill Suites,” “Marriott” or any variation thereof and any Proprietary Mark of
Franchisor, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement. 
 E. Franchisee has agreed to operate the Hotel as a SpringHill Suites by Marriott hotel in compliance with this Agreement for the full term of the
Agreement. If Franchisee should fail to do so, Franchisee acknowledges and agrees that Franchisor would be damaged in several ways, including but not limited to: loss of future franchise fees, loss of marketing fees used to market the System and
injury to the good will in the Proprietary Marks. Franchisee further acknowledges and agrees that if this Agreement is terminated with Special Circumstances (as defined below), Franchisor and the System will 

  

 34 

 
suffer greater damage because of loss of multiple hotels, which practicably may not be replaceable or, if replaceable, may take more extended periods to
replace due to the Special Circumstances. The consequences of Special Circumstances include but are not limited to significant loss of distribution in the markets served by the hotels, confusion to national account and individual customers because
of brand switching and unavailability of Franchisor Brand (as defined below) hotels in locations previously serviced under Franchisor Brands and resulting loss of customer confidence, disadvantage to Franchisor in competing for national accounts and
other types of bookings for the System, loss of foregone opportunities in markets in which the hotels were located and increased difficulty in quality System growth. Franchisee acknowledges and agrees that it is difficult to estimate the revenues of
the Hotel over a period of years and that elements of Franchisor’s damages not directly calculated from the Hotel’s revenues are inherently difficult to calculate although such damages are real and meaningful to Franchisor and the System.
Franchisor’s damages in the event of termination would not be easily ascertained, would be difficult to estimate accurately, and the proofs thereof would be burdensome and costly, and Franchisor and Franchisee agree that liquidated damages (as
calculated in Paragraph XVIII.E.2 below) are not a penalty and represent a reasonable estimate of just and fair compensation of Franchisor for the damages that it would suffer. Franchisee and Franchisor further acknowledge and agree that termination
with Special Circumstances creates greater and fundamentally different damages due to the number or types of hotels exiting the System; therefore, they agree that a distinct liquidation schedule is warranted, as described below. In the event this
Agreement is terminated, such termination shall not affect the obligations of Franchisee hereunder to take action or abstain from taking action after the termination hereof as required by this Section XVIII. As used herein, “Special
Circumstances” means that, in connection with the termination of this Agreement, one or more additional franchise, license or owner agreements between Franchisor and Franchisee, or the respective affiliates of either, are terminated as further
described in Paragraph XVIII.E.2.c., within the twelve-month period that includes the termination date of this Agreement. As used herein, “Franchisor Brand” means any brand licensed or franchised by a Marriott Company. 
 1. In the event this Agreement is terminated, Franchisor shall be entitled to recover from Franchisee, and Franchisee shall be obligated to promptly pay
to Franchisor, all payments that have then accrued to Franchisor or its affiliates pursuant to other provisions of this Agreement up to the date of such termination (without limiting Franchisee’s obligations to pay to Franchisor any payments
that relate to the period prior to the date of such termination, but that are not billed to Franchisee prior to the date of such termination). 
 2. In addition to all amounts due to Franchisor pursuant to Paragraph XVIII.E.1. above, if termination of this Agreement is due to a default by Franchisee under this Agreement, Franchisee shall promptly pay to Franchisor liquidated damages
in the following amounts, as indicated below: 
 a. If an early termination of this
Agreement is due to a default by Franchisee under this Agreement, Franchisee shall promptly pay to Franchisor liquidated damages in an amount equal to (i) the sum of (x) the average of the monthly contribution to the marketing fund under
Paragraph III.D. theretofore payable to Franchisor over the immediately preceding two (2) years, plus (y) the average of the monthly royalty fee under Paragraph III.C. theretofore payable to Franchisor over the immediately preceding
two (2) years, times (ii) the lesser of (x) thirty-six (36) or (y) one-half ( 1/2) the number of months that remain in the term of this Agreement. If the Hotel has not opened or been operating as a SpringHill Suites by Marriott for at least two (2) years (whether pursuant to this Agreement or a franchise or
management agreement between Franchisor or its affiliate on the one hand and a previous franchisee or owner on the other hand), the average monthly royalty fee and contribution to the 

  

 35 

 
marketing fund for the previous two (2) years for all hotels, on a per room basis, operated in the System in the United States (“System Average
Performance”) shall be multiplied by the number of rooms at the Hotel and then such sum shall be multiplied by the lesser of thirty-six (36) or one-half ( 1/2) the number of months that remain in the term of this Agreement to arrive at the amount of liquidated damages. If either party believes that the System Average Performance
calculation would not be representative of the projected performance of the Hotel, the party shall notify the other in writing and the amount of liquidated damages will be calculated by substituting the projected stabilized revenue submitted by
Franchisee in its application for the System Average Performance. The amounts described in this Paragraph XVIII.E.2.a. shall be referred to herein as “Liquidated Damages”. 
 b. If, in connection with the termination of this Agreement, the Hotel is Transferred to a Competitor, or any other event specified in Paragraphs XV.D.,
XV.E. or XV.F. occurs, as a result of which Franchisor has the right of first refusal provided in Paragraph XV.D., and Franchisor’s right of first refusal under such Paragraph XV.D. is not effectuated for any reason, or Franchisor elects to
terminate this Agreement or condition its consent to such Transfer on the payment of Liquidated Damages, Franchisee shall pay to Franchisor an amount equal to one hundred fifty percent (150%) of the amount of the Liquidated Damages that would
otherwise be payable hereunder (“Competitor Liquidated Damages”). In the event the Transfer to a Competitor also involves Special Circumstances and the percentage multiplier, as determined in accordance with Paragraph XVIII.E.2.c. below,
pursuant to such Special Circumstances for any franchise, license or owner agreement is greater than 150%, Franchisee shall promptly pay to Franchisor Special Circumstances Liquidated Damages as defined in Paragraph XVIII.E.2.c. below. 

c. If an early termination due to a default hereunder by Franchisee occurs with Special Circumstances, then Franchisee shall pay to Franchisor an
amount equal to the percentage set forth in the chart below multiplied by the amount of the Liquidated Damages that would otherwise be payable hereunder (“Special Circumstances Liquidated Damages”): 
  

																			
	 Termination Class
	  	 1-2
 Agreements
	 	 	 3-4
 Agreements
	 	 	 5-8
 Agreements
	 	 	 9-15
 Agreements
	 	 	 16-25
 Agreements
	 	 	326
Agreements	 
	 Franchisor Brand Hotels
	  	100	%	 	100	%	 	125	%	 	175	%	 	200	%	 	300	%
	 State
	  	100	%	 	125	%	 	150	%	 	200	%	 	250	%	 	300	%
	 Top 20% of Room Count, Royalty Contribution or GSS
	  	100	%	 	125	%	 	150	%	 	200	%	 	250	%	 	300	%
	 Metropolitan Statistical Area
	  	100	%	 	175	%	 	250	%	 	300	%	 	300	%	 	300	%
	 Hotels Over 400 Guest Rooms that are the Major Group Representation in a Secondary or Tertiary Market
	  	150% if 2	 	 	175	%	 	250	%	 	300	%	 	300	%	 	300	%

  

 36 

																		
	 Termination Class
	  	 1-2
 Agreements
	  	 3-4
 Agreements
	 	 	 5-8
 Agreements
	 	 	 9-15
 Agreements
	 	 	 16-25
 Agreements
	 	 	326
Agreements	 
	 Resort Designated or Hotels for Which at Least 50% of Guests are Leisure Travelers
	  	150% if 2	  	175	%	 	250	%	 	300	%	 	300	%	 	300	%
	 JW Marriott Hotels
	  	150% if 2	  	175	%	 	250	%	 	300	%	 	300	%	 	300	%

 For each franchise, license or owner agreement terminated, Special Circumstances Liquidated Damages will be
calculated using the largest percentage multiplier for which a Termination Class (as defined below) is applicable. By way of example, if six agreements for Franchisor Brand hotels are terminated, five of which are for hotels located in the same
State (and do not fall within another Termination Class), and the remaining agreement is for a hotel located in another State (and does not fall within another Termination Class), the percentage multiplier for each of the first five agreements shall
be 150% and the percentage multiplier for the remaining agreement shall be 125%. “Termination Class” means the grouping into which each franchise, license or owner agreement, including this Agreement, is placed to determine the percentage
multiplier to be used when calculating liquidated damages in connection with a termination under Special Circumstances. 
 In addition to all such liquidated
damages described in Paragraph XVIII.E.2, Franchisor shall have the right to recover reasonable attorneys’ fees and court costs incurred in collecting such sums plus interest (calculated pursuant to Paragraph XIII.E.) on all amounts due
pursuant to this Paragraph XVIII.E. from the date of such termination until paid. The legal remedies hereunder shall not preclude Franchisor from any equitable remedies to which it may be entitled under applicable law. Franchisee’s obligation
to pay Franchisor liquidated damages, if applicable, and other sums pursuant to this Paragraph XVIII.E. shall survive termination of this Agreement. 
 F. Franchisee shall promptly pay all sums owing to Franchisor, its subsidiaries and affiliates. In the event of termination for any default of Franchisee, such sums shall include any payment to Franchisor required
under Paragraph XVIII.E., any costs and expenses incurred in connection with removing the Hotel from the System, and all damages, costs and expenses, including reasonable attorneys’ fees, incurred by Franchisor in obtaining (i) injunctive
or other relief for the enforcement of any provisions of this Agreement or (ii) contested termination of this Agreement. 
 G.
Franchisee shall immediately turn over to Franchisor all Intellectual Property except for Proprietary Marks, which must be removed as set forth in this article XVIII above (all of which are acknowledged to be the Franchisor’s Property), and
shall retain no copy or record of any of the foregoing, excepting only Franchisee’s copy of this Agreement and any correspondence between the parties, and any other documents that Franchisee reasonably needs for compliance with any provision of
law. In the event that Franchisor permits Franchisee to continue using any Intellectual Property after the date of termination (such permission to be explicit and specific), such use by Franchisee shall be in accordance with the terms of this
Agreement. 
 H. Franchisor shall have the right, but not the duty, to be exercised by notice of intent to do so within thirty (30) days
after termination or expiration, to purchase any and all signs, 

  

 37 

 
advertising materials, supplies and inventory and any other item bearing Franchisor’s Proprietary Marks, at Franchisee’s cost. With respect to any
purchase by Franchisor as provided herein, Franchisor shall have the right to set off all amounts due from Franchisee under this Agreement. 
 I. The obligations of Franchisee set forth in this Section XVIII. shall survive termination of this Agreement. 
  

	XIX.	CONDEMNATION AND CASUALTY 

 A. Franchisee shall, at the
earliest possible time, give Franchisor notice of any proposed taking by eminent domain. If the Hotel is condemned, or such a substantial portion of the Hotel is condemned to render impractical the continued operation of the Hotel in accordance with
the System, this Agreement shall terminate upon notice by Franchisor or Franchisee to the other party, and Franchisor and Franchisee shall share equitably in the condemnation award; provided, however, Franchisor’s portion shall be limited to
compensating Franchisor for Franchisor’s lost royalty income, which amount shall not exceed the amount of the applicable liquidated damages due under Section XVIII. If a non-substantial condemnation shall occur, then in such event, Franchisee
shall promptly make whatever repairs and restoration may be necessary to make the Hotel conform substantially to its former condition, character and appearance, according to plans and specifications approved by Franchisor, and the resumption of
normal operation of the Hotel shall not be unreasonably delayed. 
 B. If the Hotel is damaged or destroyed by fire or other cause and such
damage or destruction is substantial and material, affecting over fifty percent (50%) of the Hotel, and necessitates the closing of the Hotel for a period in excess of ninety (90) days, Franchisee shall have the right to terminate this
Agreement if it elects not to repair or rebuild the Hotel upon notice to Franchisor given within ninety (90) days of such closing of the Hotel; provided, however, if subsequent to such notice and prior to the date on which the term of this
Agreement would otherwise have ended pursuant to Section II if such notice of termination had not been given (the “Term Expiration Date”), Franchisee, any of its members if it is a limited liability company or any of its affiliated
companies or any company controlled by a controlling stockholder of Franchisee if Franchisee is a corporation, or any of its general partners or any entity in which Franchisee or any of its general partners (the “Franchisee Entity”) has a
greater than fifteen percent interest in or operates a hotel; vacation, timesharing, interval or fractional ownership facility; condominium; apartment; or other lodging product at the Approved Location (the “Other Lodging Product”), which
Other Lodging Product is not operated pursuant to a license or franchise from one of the Marriott Companies, then in such event, Franchisee shall be obligated to promptly pay to Franchisor an amount equal to the applicable liquidated damages set
forth at Paragraph XVIII.E., and the time element for calculating the amount of applicable liquidated damages shall be the lesser of (a) thirty-six (36) months or (b) one-half (1/2) the number of months then remaining between
(i) the date upon which the Other Lodging Product is first operated by or for the Franchisee Entity and (ii) the Term Expiration Date. Franchisee’s obligation set forth herein shall survive termination of this Agreement pursuant to
this Paragraph XIX.B. In the event the Hotel does not close for more than ninety (90) days due to a casualty or Franchisee does not elect to terminate this Agreement in accordance with the provisions of this Paragraph XIX.B., the Hotel shall be
promptly renovated and reopened within a reasonable time in accordance with the System and pursuant to plans and specifications approved by Franchisor in accordance with Section VII. 
  

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	XX.	TAXES, COMPLIANCE WITH LAWS, AND INDEBTEDNESS 

 A.
Franchisee shall promptly pay when due, all taxes levied or assessed by any federal, state or local tax authority, and any and all other indebtedness incurred by Franchisee in the conduct of the Franchised Business. Franchisee shall pay to
Franchisor an amount equal to any tax, including any sales, gross receipts or similar tax imposed as a result of the operation of the Hotel and calculated based on payments required hereunder, unless the tax is credited against income tax otherwise
payable by Franchisor. 
 B. In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee may
contest the validity of the amount of the tax or indebtedness in accordance with the procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or
warrant, or attachment by creditor, to occur against the premises of the Hotel or any improvement thereon. 
 C. Franchisee shall comply with
all federal, state, and local laws, rules and regulations, and shall timely obtain any and all permits, certificates or licenses necessary for the full and proper conduct of the Franchised Business including, without limitation, licenses to do
business, fictitious name registration and sales tax permits, health and sanitation permits and ratings and fire clearances. Copies of all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the term of
this Agreement in connection with the Hotel that indicate a violation of governmental standards or material non-compliance with any applicable law, rule or regulation, shall be forwarded to Franchisor by Franchisee within five (5) days of
Franchisee’s receipt thereof. 
 D. Franchisee shall notify Franchisor in writing within five (5) days of the commencement of any
action, suit or proceeding, and of the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality, that may adversely affect the operation or financial condition of the Franchised Business.

 E. Franchisee recognizes that Franchisee’s failure or repeated delay in making prompt payment in accordance with the terms of any
agreements, leases, invoices or statements for any purchases or leases will be detrimental to the reputation and credit standing of Franchisee, Franchisor and other SpringHill Suites by Marriott franchisees. Franchisee shall pay when due all such
amounts owed in connection with operating the Hotel. 
 F. Franchisee shall not incur or replace any indebtedness that is secured by a lien
on or mortgage of the Hotel or pledge of the stock, partnership, membership or other ownership interests in Franchisee (whether such indebtedness is incurred (i) individually on behalf of the Hotel or (ii) on a pooled basis with other
hotels or legal entities (a “Financed Pool”)) unless the following conditions are met: (1) the terms of such indebtedness are commercially reasonable, (2) commencing on the third anniversary of the Opening Date, the debt coverage
ratio is equal to or greater than 1.3, and (3) the lender is not a Competitor or an affiliate of a Competitor. The debt coverage ratio shall be the ratio of (a) cash available for the payment of the annual debt service payments (interest
and principal) based on the cash flow from the Hotel (or hotels, including the Hotel, that are part of the Financed Pool) (after deduction for any management fee and reserve required under such management agreement or as a condition to such
financing) for the twelve (12) months immediately preceding the written commitment for such indebtedness, to (b) the amount of such annual debt service payments. Franchisee shall give written notice to Franchisor of the component hotels
and legal entities in a Financed Pool prior to incurring such indebtedness. 
  

 39 

	XXI.	INDEPENDENT CONTRACTOR AND INDEMNIFICATION 

 A. Nothing in
this Agreement creates a fiduciary relationship between the parties hereto. Franchisee is an independent contractor, and nothing in this Agreement is intended to constitute either party an agent, legal representative, subsidiary, joint venturer,
partner, employee or servant of the other for any purpose whatsoever. 
 B. During the term of the Agreement and any extensions hereof,
Franchisee shall hold itself out to the public as an independent contractor operating the business pursuant to a franchise from Franchisor and as an authorized user of the Proprietary Marks. Franchisee shall take such affirmative action as may be
necessary to do so, including, without limitation, exhibiting notices of that fact at the Hotel as required under Paragraph X.B.3. 
 C.
Nothing in this Agreement authorizes either party to make any contract, agreement, warranty or representation on the other’s behalf, or to incur any debt or other obligation in the other’s name. 
 D. Franchisor does not exercise any direction or control over the employment policies or employment decisions of Franchisee. All employees of Franchisee
are solely employees of Franchisee, not Franchisor. Franchisee is not Franchisor’s agent for any purpose in regard to Franchisee’s employees or otherwise. 
 E. Franchisee shall and hereby does indemnify and shall defend and save harmless Franchisor, its affiliates, their officers and employees, and their respective successors and assigns, from and against all losses,
costs, liabilities, damages, claims and expenses, of every kind and description, including allegations of negligence by Franchisor, its employees and agents, to the fullest extent permitted by applicable law, and including reasonable attorneys’
fees, arising out of or resulting from the construction, renovation, upgrading, operation, alteration, remodeling, repair or use of the Franchised Business or the Hotel premises or of any other business conducted on or in connection with the
Franchised Business by the Franchisee (or any management company operating the Hotel), or because of any act or omission of the Franchisee or anyone associated with, employed by, or affiliated with Franchisee (or any management company operating the
Hotel). Franchisee shall promptly give notice to Franchisor of any action, suit, proceeding, claim, demand, inquiry, or investigation related to the foregoing. Franchisor shall in any event have the right, through counsel of its choice at
Franchisee’s expense, to control the defense or response to any such action if it could affect the interests of Franchisor, and such undertaking by Franchisor shall not, in any manner or form, diminish Franchisee’s obligations to
Franchisor hereunder. Under no circumstances shall Franchisor be required or obligated to seek recovery from third parties or otherwise mitigate its losses in order to maintain a claim under this indemnification and against Franchisee, and the
failure of Franchisor to pursue such recovery or mitigate a loss will in no way reduce the amounts recoverable by Franchisor from Franchisee. The obligations of Franchisee under this Paragraph XXI.E. shall survive the termination or expiration of
this Agreement. 
  

	XXII.	APPROVALS AND WAIVERS 

 A. Approvals and consents by either
party will not be effective unless evidenced by writing signed by such party. Either party’s consent, wherever required, may be withheld if any default by the other party exists under this Agreement. 
  

 40 

 B. Except as otherwise provided in any written agreement executed by Franchisor and Franchisee,
Franchisor makes no warranties or guarantees upon which Franchisee may rely. Franchisor assumes no liability or obligation to Franchisee by providing any waiver, approval, consent or suggestion to Franchisee in connection with this Agreement or by
reason of any delay or denial of any request therefor. 
 C. No failure of a party to exercise any power reserved to it by this Agreement, or
to insist upon strict compliance by the other party with any obligation or condition hereunder, and no custom or practice of the parties at variance with the terms hereof, shall constitute a waiver of such party’s right thereafter to demand
exact compliance with any of the terms herein. Waiver by a party of any particular default by the other party shall not affect or impair such party’s rights with respect to any subsequent default of the same, similar, or different nature; nor
shall any delay, forbearance, or omission of a party to exercise any power or right arising out of any breach or default by the other party of any of the terms, provisions, or covenants hereof, affect or impair such party’s right to exercise
the same. 
  

	XXIII.	REPRESENTATIONS AND WARRANTIES OF FRANCHISEE 

 A.
Franchisor entered into this Agreement in reliance upon the statements and information submitted to Franchisor by Franchisee in connection with this Agreement. Franchisee represents and warrants that all such statements and information submitted by
Franchisee in connection with this Agreement, including, without limitation, all statements made and information given in connection with any application submitted by Franchisee, are true, correct and complete in all material respects. Franchisee
agrees to promptly advise Franchisor of any material changes in the information or statements submitted. 
 B. Franchisee represents and
warrants to Franchisor that neither Franchisee (including, without limitation, any and all of its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person. Neither
Franchisee nor any affiliate is directly or indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Franchisee nor any affiliate is acting on behalf of a government of
any country that is subject to such an embargo. Franchisee further represents and warrants that it is in compliance with any applicable anti-money laundering law, including, without limitation, the USA Patriot Act. Franchisee agrees that it will
notify Franchisor in writing immediately upon the occurrence of any event which would render the foregoing representations and warranties of this Paragraph XXIII.B. incorrect. For purposes of this Agreement, “Specially Designated National or
Blocked Person” means (i) a person or entity designated by the U.S. Department of Treasury’s Office of Foreign Assets Control from time to time as a “specially designated national or blocked person” or similar status,
(ii) a person or entity described in Section 1 of U.S. Executive Order 13224, issued on September 23, 2001, or (iii) a person or entity otherwise identified by government or legal authority as a person with whom Franchisor, or
any of the other Marriott Companies or any of their affiliates, are prohibited from transacting business. As of the Effective Date, a list of such designations and the text of the Executive Order are published under the internet website address
www.ustreas.gov/offices/enforcement/ofac. 
 C. Franchisee represents and warrants that (i) it is a legal entity duly formed,
validly existing, and in good standing under the laws of the jurisdiction of its formation, (ii) it and its affiliates have and will continue to have throughout the term hereof the ability to perform its obligations under this Agreement, and
(iii) it has and will continue to have throughout the term hereof all necessary power and authority to execute and deliver this Agreement. 
  

 41 

 D. Franchisee represents and warrants that the execution and delivery of this Agreement and the
performance by Franchisee of its obligations hereunder: (i) have been duly authorized by all necessary action; (ii) do not require the consent, vote, or approval of any third parties (including lenders) except for such consents as have
been properly obtained; and (iii) do not and will not contravene, violate, result in a breach of, or constitute a default under (a) its certificate of formation, operating agreement, articles of incorporation, by-laws, or other governing
documents, (b) any provision of law, regulation of any governmental body, or any judgment, writ, injunction, decision, ruling, order, decree or award of any court or governmental authority having jurisdiction over it or any of its affiliates by
which it or any of its affiliates may be bound or affected, or (c) any agreement, indenture, contract, commitment, restriction or other instrument to which it or any of its affiliates is a party or by which it or any of its affiliates is bound.

 E. Franchisee represents and warrants that all of the representations and warranties in the application and any information provided in
addition to the application in connection with the franchise granted herein is true, correct and complete as of the time made and as of the date hereof, regardless of whether such was provided by Franchisee, one of its affiliates, or by a third
party on behalf of Franchisee, unless Franchisee has notified Franchisor of a change in the representations and warranties or the information and Franchisor has approved the change in writing. 
  

	XXIV.	NOTICES 

 A. Any and all notices, requests, demands,
statements and other communications required or permitted under this Agreement shall be in writing and shall be delivered personally or by a nationally-recognized overnight delivery service (such as Airborne Express or Federal Express) or by
certified mail, return receipt requested, to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other party: 
  

					
		 	Notices to FRANCHISOR:	  	Marriott International, Inc.
		 		  	Franchise Attorney
		 		  	Law Department 52/923.25
		 		  	10400 Fernwood Road
		 		  	Bethesda, MD 20817
			
		 	with copy to:	  	Marriott International, Inc.
		 		  	Vice President, Owner and Franchise Services
		 		  	10400 Fernwood Road
		 		  	Bethesda, MD 20817
			
		 	Notices to FRANCHISEE:	  	Apple Eight Hospitality Management, Inc.
		 		  	814 East Main Street
		 		  	Richmond, VA 23219
		 		  	Attn: Krissy Gathright, Vice President
		 		  	Email: kgathright@applereit.com

 Any notice shall be deemed to have been given at the date and time of (i) receipt or first refusal of
delivery if sent via certified mail or delivered by hand, or (ii) one (1) day after posting if sent via overnight commercial delivery service. 
  

 42 

 B. Notwithstanding Paragraph XXIV.A., Franchisor may provide Franchisee with routine information, the
Manual and other System requirements and programs, such as the quality assurance program, including any modifications thereto, by regular mail or by e-mail, facsimile, the internet, an extranet, or other electronic means. 
  

	XXV.	ENTIRE AGREEMENT 

 This Agreement, including the
attachments, exhibits and addenda hereto, and any execution copies thereof, the agreements executed simultaneously herewith or pursuant to, or in connection with, this Agreement, contain the entire agreement between the parties hereto as it relates
to the Approved Location as of the date hereof. This is a fully integrated agreement. No agreement of any kind relating to the matters covered by this Agreement shall be binding upon either party unless and until the same has been made in a written,
non-electronic instrument that has been duly executed by the non-electronic signature of all interested parties. This Agreement may not be amended or modified by conduct manifesting assent, or by electronic signature, and each party is hereby put on
notice that any individual purporting to amend or modify this Agreement by conduct manifesting assent or by electronic signature is not authorized to do so. In entering this Agreement, Franchisee represents and warrants that it did not rely on and
Franchisor and Franchisor’s representatives have not made, any promises, representations or agreements relating to franchising this Approved Location except as expressly contained in this Agreement. 
  

	XXVI.	CONSTRUCTION AND SEVERABILITY 

 A. Unless otherwise
specified, the term “Franchisee” as used in this Agreement shall include the entity identified in the preamble to this Agreement. 
 B. Except as expressly provided to the contrary herein, each section, part, term and/or provision of this Agreement, including, but not limited to Section XXI.E., shall be considered severable; and if, for any reason any section, part, term
or provision herein is determined to be invalid, unenforceable or contrary to, or in conflict with, any existing or future law or regulation by a court or agency having valid jurisdiction, such shall not impair the operation of, or have any other
effect upon, such other sections, parts, terms and provisions of this Agreement as may remain otherwise intelligible, and the latter shall continue to be given full force and effect and bind the parties hereto; and said invalid or unenforceable
sections, parts, terms or provisions shall be deemed to be replaced with a provision that is valid and enforceable and most nearly reflects the original intent of the invalid or unenforceable provision. 
 C. Nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies under or by reason of this Agreement upon any person or
legal entity other than Franchisor or Franchisee and such of their respective successors and assigns subject to the prior approvals set forth in Section XV. hereof. 
 D. Franchisee and Franchisor expressly agree to be bound by any promise or covenant imposing the maximum duty permitted by law that is subsumed within the terms of any provision hereof, as though it were separately
articulated in and made part of this Agreement, that may result from striking any of the provisions hereof and portion or portions that a court may hold to be unreasonable and unenforceable in a final decision to which Franchisor or Franchisee, as
applicable, is a party, or from reducing the scope of any promise or covenant to the extent required to comply with such a court order. 
  

 43 

 E. All captions in the Agreement are intended solely for the convenience of the parties, and none shall
be deemed to affect the meaning or construction of any provision hereof. 
 F. All references herein to the masculine, neuter or singular
shall be construed to include the masculine, feminine, neuter or plural, where applicable, and all acknowledgments, promises, covenants, agreements and obligations herein made or undertaken by Franchisee shall be deemed jointly and severally
undertaken by all the parties hereto on behalf of Franchisee. 
 G. This Agreement may be executed in a number of identical counterparts,
each of which shall be deemed an original for all purposes and all of which shall constitute, collectively, one agreement. Delivery of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a
manually signed counterpart of this Agreement. 
 H. When this Agreement provides that Franchisor may take or refrain from taking any action
or exercise discretion, such as rights of approval, to modify the System, or to make determinations, Franchisor may do so from time to time. 
 I. Except where Franchisor has reserved “sole discretion” or as otherwise indicated in this Agreement, Franchisor agrees to use “Reasonable Business Judgment” when discharging its obligations or exercising its rights or
discretion under this Agreement, including with respect to any consents and approvals and the administration of its relationship with Franchisee. “Reasonable Business Judgment” means that Franchisor’s action or inaction has a business
basis that is intended to benefit the System or the profitability of the System, including Franchisor, regardless of whether some individual hotels may be unfavorably affected; or to increase the value of the Proprietary Marks; or to increase or
enhance overall hotel guest or franchisee or owner satisfaction; or to minimize possible brand inconsistencies or customer confusion. In the event that such obligation or exercise of discretion is unrelated to the System, standards, brand or other
subjects described above, Reasonable Business Judgment shall mean that Franchisor has a business basis and has not acted in bad faith. Franchisee shall have the burden of establishing that Franchisor failed to exercise Reasonable Business Judgment,
and neither the fact that Franchisor benefited economically from an action nor the existence of other “reasonable” alternatives will, by themselves, establish such failure. To the extent that any implied covenant, such as the implied
covenant of good faith and fair dealing, is applied to this Agreement, Franchisor and Franchisee intend that Franchisor shall not have violated such implied covenant if Franchisor has exercised Reasonable Business Judgment. 
  

	XXVII.	APPLICABLE LAW AND CURRENCY REQUIREMENT 

 A. This Agreement
takes effect upon its acceptance and execution by Franchisor in the State of Maryland, and shall be interpreted and construed under the laws thereof, which laws shall prevail in the event of any conflict of law. Nothing in this Section XXVII is
intended, or shall be deemed, to make the Maryland Franchise Registration and Disclosure Law apply to this Agreement, or the transactions or relationships contemplated hereby, if such law otherwise would not be applicable. 
 B. No right or remedy conferred upon or reserved to Franchisor or Franchisee by this Agreement is intended to be, nor shall be deemed, exclusive of any
other right or remedy herein or by law or equity provided or permitted, but each shall be cumulative of every other right or remedy. 
  

 44 

 C. Nothing herein contained shall bar either party’s right to obtain injunctive relief against
threatened conduct that will cause it loss or damages, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. 
 D. All fees and payments required by this Agreement shall be paid in U.S.A. currency. 
 E. Each party hereby expressly and irrevocably submits itself to the non-exclusive jurisdiction of the courts of the State of Maryland, United States of
America in any suit, action, or proceeding arising, directly or indirectly, out of or relating to this Agreement; and so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative. 
  

	XXVIII.	WAIVER OF JURY TRIAL 

 IN ANY LITIGATION BETWEEN THE
PARTIES FOUNDED UPON OR ARISING FROM THIS AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  

	XXIX.	INJUNCTIVE RELIEF 

 Franchisor shall be entitled to
injunctive or other equitable or other judicial relief without the necessity of proving the inadequacy of money damages as a remedy, without the necessity of posting a bond, and without waiving any other rights or remedies at law or in equity, for
any actual or threatened material breach or violation of this Agreement or the Manual. 
 XXX. FRANCHISEE ACKNOWLEDGMENTS 
 A. FRANCHISEE ACKNOWLEDGES THAT IT DID NOT RELY ON ANY PROMISES, REPRESENTATIONS OR AGREEMENTS ABOUT THE FRANCHISOR OR THE FRANCHISE NOT EXPRESSLY
CONTAINED IN THIS AGREEMENT AND IN THE DISCLOSURE DOCUMENT REFERRED TO IN XXX.C. BELOW IN MAKING ITS DECISION TO SIGN THIS AGREEMENT. FRANCHISEE FURTHER REPRESENTS AND WARRANTS THAT FRANCHISOR AND ITS REPRESENTATIVES HAVE NOT MADE ANY PROMISES,
REPRESENTATIONS OR AGREEMENTS, ORAL OR WRITTEN, EXCEPT AS EXPRESSLY CONTAINED IN THIS AGREEMENT AND IN THE DISCLOSURE DOCUMENT REFERRED TO IN XXX.C. BELOW. 
 B. FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS CONDUCTED AN INDEPENDENT INVESTIGATION OF THE BUSINESS FRANCHISED HEREUNDER, AND RECOGNIZES THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES BUSINESS
RISKS AND THAT ITS SUCCESS WILL BE LARGELY DEPENDENT UPON THE ABILITY OF FRANCHISEE AS AN INDEPENDENT BUSINESSMAN. FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS NOT RECEIVED, ANY WARRANTY OR GUARANTEE,
EXPRESS OR IMPLIED, AS TO THE POTENTIAL VOLUME, PROFITS OR SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT. 
 C. FRANCHISEE
ACKNOWLEDGES THAT FRANCHISEE RECEIVED A COPY OF THIS AGREEMENT, THE EXHIBITS AND ATTACHMENTS HERETO, IF ANY, AND 

  

 45 

 
AGREEMENTS RELATING THERETO, IF ANY, AT LEAST FIVE (5) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED. FRANCHISEE FURTHER
ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES AT THE
EARLIER OF (i) AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED, OR (ii) THE DATE OF THE FIRST MEETING BETWEEN FRANCHISOR AND FRANCHISEE FOR THE PURPOSE OF DISCUSSING A PROSPECTIVE FRANCHISE.

 D. FRANCHISEE ACKNOWLEDGES THAT IT HAS READ AND UNDERSTOOD THIS AGREEMENT, THE EXHIBITS AND ATTACHMENTS HERETO, IF ANY, AND THAT
FRANCHISEE HAS HAD AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF FRANCHISEE’S OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT. FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS HAD AN OPPORTUNITY TO
NEGOTIATE, AND HAS FULLY NEGOTIATED, THE ESSENTIAL STIPULATIONS OF THIS AGREEMENT AND THAT SUCH STIPULATIONS WERE NOT UNILATERALLY IMPOSED ON IT BY FRANCHISOR. 
 E. ALL OF THE OBLIGATIONS OF FRANCHISOR HEREUNDER ARE TO FRANCHISEE ONLY; NO OTHER PERSON OR ENTITY IS ENTITLED TO RELY ON, ENFORCE, OR OBTAIN RELIEF FOR BREACH OF SUCH OBLIGATIONS EITHER DIRECTLY OR BY SUBROGATION.

 {Signatures appear on the following page.} 
  

 46 

 IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this SpringHill Suites by
Marriott Relicensing Franchise Agreement in duplicate as of the Effective Date. 
  

									
		 		 	FRANCHISOR
			
	ATTEST:	 		 	MARRIOTT INTERNATIONAL, INC.
					
	  
	 		 	By:	 	 Liam Brown
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	FRANCHISEE
			
	ATTEST:	 		 	APPLE EIGHT HOSPITALITY MANAGEMENT, INC., a Virginia corporation
					
	  
	 		 	By:	 	 /s/ Justin G. Knight
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	/s/ Justin Knight	 	
		 		 	Title:	 		 	

  

 47 

 ATTACHMENT A 
 FRANCHISE INFORMATION 
  

	1.	Location of the Franchised SpringHill Suites by Marriott 

 6006 Landmark Center Blvd, Greensboro, NC 27407 
  

	2.	Number of guest rooms 

 82 
  

	3.	Date for commencement of property improvement 

 Effective
Date 
  

	4.	Date for complete satisfaction of the requirements set forth in the Addendum attached to the Franchise Agreement 

 Within six (6) months of the Effective Date unless explicitly stated otherwise with respect to any particular item. 
  

	5.	Name of entity that will operate the Hotel 

 Newport
Chester, LLC 
  

	6.	Equity Interest(s) in Franchise or Franchisee 

 (Name(s),
Address(es), and percentage(s) of ownership) 
  

				
	Ownership of Apple Eight Hospitality Management, Inc.	 
	 Apple Eight Hospitality, Inc.
 c/o Apple REIT Companies, 814 East Main Street, Richmond, Virginia 23219
	  	100	%
	
	Ownership of Apple Eight Hospitality, Inc.	 
	 Apple REIT Eight, Inc.
 814 East Main Street, Richmond, Virginia 23219
	  	100	%
	
	Ownership of Apple REIT Eight, Inc.	 
	 Publicly-Held Company
	  	100	%

  

 48 

 ATTACHMENT B 
 FORM OF GUARANTY 
 This GUARANTY (“Guaranty”) is executed as of
                    , 2007, by
                    , a
                     organized and existing under the laws of
                     (“Guarantor”), in favor of and for the benefit of Marriott International, Inc., a Delaware corporation
(“Franchisor”). In consideration of and as an inducement to Franchisor to execute the Franchise Agreement dated as of
                    , 2007 (as such agreement may be amended, supplemented, restated or otherwise modified, the “Agreement”), by and
between Franchisor and                              (“Franchisee”), Guarantor hereby agrees
as follows: 
 1. Guarantor hereby unconditionally warrants to Franchisor and its successors and assigns that all of Franchisee’s
representations and warranties in (i) any application submitted by Franchisee to Franchisor in connection with the Agreement and (ii) the Agreement are true, accurate and complete as of the time made and as of the date hereof. Further,
Guarantor unconditionally guarantees that all of Franchisee’s obligations under the Agreement will be punctually paid and performed. 
 2. Upon default by Franchisee and notice from Franchisor, Guarantor will immediately make each payment and perform each obligation required by Franchisee under the Agreement. Franchisor may extend, modify or release any indebtedness or
obligation of Franchisee, or settle, adjust or compromise any claims against Franchisee without notice to Guarantor and any such action shall not affect the obligations of Guarantor under this Guaranty. Guarantor hereby waives notice of any
amendment, supplement, restatement or other modification of Agreement and notice of demand for payment or performance by Franchisee. Guarantor’s guarantee hereunder shall extend to any extension or renewal of the Agreement. 
 3. Guarantor hereby agrees that the obligations of Guarantor under this Guaranty shall not be reduced, limited, terminated, discharged, impaired or
otherwise affected by: (i) Franchisee’s failure to pay a fee or provide other consideration to Guarantor in consideration for the issuance of this Guaranty; (ii) the occurrence or continuance of a default under the Agreement;
(iii) any assignment of the Agreement; (iv) any modification or amendment of, or waiver or consent or other action taken with respect to, the Agreement or any other agreement or document delivered in connection therewith, including without
limitation any indulgence in or extension of time for the payment of any amounts payable of Franchisee under or in connection with the Agreement or for the performance of any other obligation of Franchisee under the Agreement (any of which
modifications, amendments, waivers or consents may be agreed to or granted without the approval or consent of Guarantor); (v) the voluntary or involuntary liquidation, sale or other disposition of all or any portion of Franchisee’s assets,
or the receivership, insolvency, bankruptcy, reorganization or similar proceedings affecting Franchisee or its assets or the release or discharge of Franchisee from any of its obligations under the Agreement; or (vi) any change of
circumstances, whether or not foreseeable, and whether or not any such change does or might vary the risk of Guarantor hereunder. No failure of Franchisor to exercise any power or right hereunder, or to insist upon compliance by Guarantor with any
term hereof shall constitute a waiver of Franchisor’s right thereafter to demand full compliance with any term herein. 
 4. This
Guaranty constitutes a guaranty of payment and performance and not of collection, and Guarantor specifically waives any obligation of Franchisor to proceed against Franchisee on any money or property held by Franchisee or by any other person or
entity as collateral security, by way of set-off or otherwise or against any other guarantor. Guarantor further agrees that this Guaranty shall continue to be effective or be reinstated as the case may be, if at any time payment of any of the

  

 49 

 
guaranteed obligations is rescinded or must otherwise be restored or returned by Franchisor upon the insolvency, bankruptcy or reorganization of Franchisee
or Guarantor, all as though such payment has not been made. 
 5. Except as otherwise expressly set forth herein, all notices, requests,
demands, statements and other communications required or permitted to be given hereunder shall be in writing and shall be delivered by nationally recognized overnight courier service to Franchisor at the address set forth in the Agreement and to
Guarantor at the address set forth below or for either at such other address as may be designated by Guarantor or by Franchisor, and such communication shall be effective three days after the day sent. This Guaranty may be amended only by a written
instrument signed by a duly authorized representative of each of Guarantor and Franchisor. 
 6. Guarantor hereby unconditionally and
irrevocably waives notice of acceptance of this Guaranty, presentment, demand, diligence, protest and notice of dishonor or of any other kind to which the Guarantor otherwise might be entitled under applicable law. 
 7. Guarantor agrees to pay Franchisor all expenses, including reasonable attorneys’ fees and court costs, incurred by Franchisor, its subsidiaries,
affiliates, or any of their respective successors and assigns, to remedy any defaults of or enforce any rights under this Guaranty or the Agreement, effect termination of this Guaranty or the Agreement, or to collect any amounts due under this
Guaranty or the Agreement. 
 8. If more than one person or entity has executed this Guaranty as a Guarantor hereunder, the liability of each
such Guarantor shall be joint, several and primary. This Guaranty may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument. Delivery
of an executed signature page to this Guaranty by facsimile transmission shall be effective as delivery of a manually signed counterpart of this Guaranty. 
 9. Upon the death of any individual Guarantor, the estate of such Guarantor will be bound by this Guaranty but only for defaults and obligations hereunder existing at the time of death, and the obligations of any
other Guarantors will continue in full force and effect. 
 10. Guarantor represents and warrants to Franchisor that neither Guarantor
(including, without limitation, any and all of its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person (as defined in the Agreement). Neither Guarantor nor any
affiliate of Guarantor is directly or indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Guarantor nor any affiliate of Guarantor is acting on behalf of a government
of any country that is subject to such an embargo. Guarantor agrees that it will notify Franchisor in writing immediately upon the occurrence of any event which would render the foregoing representations and warranties of this Section 10
incorrect. 
 11. This Guaranty is executed pursuant to, and shall be construed under and governed by, the laws of the State of Maryland,
without regard to its conflict of laws provisions. Guarantor hereby submits itself to the non-exclusive jurisdiction of the courts of the State of Maryland, United States of America, in any suit, action, or proceeding arising, directly or
indirectly, out of or relating to this Guaranty; and so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative. 
 12. IN ANY LITIGATION BETWEEN FRANCHISOR AND GUARANTOR FOUNDED UPON OR ARISING FROM THIS GUARANTY OR THE FRANCHISE AGREEMENT, GUARANTOR HEREBY WAIVES ITS RIGHT TO A JURY TRIAL, AND GUARANTOR HEREBY STIPULATES THAT ANY
SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  

 50 

 IN WITNESS WHEREOF, the undersigned has executed this Guaranty, under seal, as of the date first above
written. 
  

									
	 	 	 	 	GUARANTOR:
			
		 		 	[GUARANTOR]
					
		 		 	By:	 	  
	 	(SEAL)
		 		 	Name:	 		 	
		 		 	Title:	 		 	
				
	ADDRESS FOR NOTICES TO GUARANTOR:	 		 		 	
				
	  
	 		 		 	
	  
	 		 		 	
	  
	 		 		 	

  

 51 

 ATTACHMENT C 
 FORM OF MANAGER ACKNOWLEDGMENT 
 This Manager Acknowledgment (“Manager
Acknowledgment”) is executed as of                 , 2007, by and among
                    , a
                     (“Manager”),
                    , a
                     (“Franchisee”), and Marriott International, Inc., a Delaware corporation (“Franchisor”). 

WHEREAS, Manager has entered into an agreement (“Management Agreement”) with Franchisee, pursuant to which Manager will operate that certain
                     hotel located at
                     (the “Hotel”), in accordance with the terms and conditions of that certain
                     Hotel Franchise Agreement dated
                    , 2007 (as such agreement may be amended, supplemented, restated or otherwise modified, the “Franchise
Agreement”) between Franchisor and Franchisee; and 
 WHEREAS, Franchisee has requested that Franchisor approve Manager to operate the
Hotel in accordance with the Franchise Agreement. 
 NOW, THEREFORE, in consideration of the mutual undertakings and benefits to be derived
herefrom, the receipt and sufficiency of which are acknowledged by each of the parties hereto, it is hereby agreed as follows: 
 1.
Franchisor’s Consent. Franchisor hereby consents to the operation of the Hotel by Manager during the term of the Franchise Agreement on behalf of and subject to the control of Franchisee with respect to and in accordance with the terms
and conditions of the Franchise Agreement, subject to and upon the terms and conditions set forth below. Franchisor’s consent granted in the immediately preceding sentence shall terminate contemporaneously with any termination of the Franchise
Agreement without notice to Manager; provided that the duties and obligations of Manager that by their nature or express language survive such termination, including, without limitation, Sections 3.b. and c. below, shall continue in full force and
effect notwithstanding the termination of the Franchise Agreement. 
 2. Manager Representations and Covenants. Manager represents and
warrants to Franchisor that: 
 a. Manager is not in control of or controlled by persons who have been convicted of any felony or a crime
involving moral turpitude, or been convicted of any other crime or offense or committed any acts, or engaged in any conduct that is reasonably likely to have an adverse effect on the System, the Proprietary Marks, the goodwill associated therewith,
or Franchisor’s interests therein; 
 b. neither Manager nor any affiliate of Manager is a Competitor; 
 c. the Management Agreement is valid, binding and enforceable; contains no terms, conditions, or provisions that are, or through any act or omission of
Franchisee or Manager, may be or may cause a breach of or default under the Franchise Agreement; and is for a term of not less than ten (10) years; and 
 d. neither Manager nor any affiliate of Manager is a person or entity with whom United States persons are prohibited from transacting business. 
  

 52 

 3. Manager and Franchisee Acknowledgements. Manager and Franchisee covenant and agree to the
following: 
 a. Manager shall have the exclusive authority and responsibility for the management of the Hotel on behalf of and subject to the
control of Franchisee with respect to and in accordance with the terms and conditions of the Franchise Agreement. The general manager of the Hotel shall devote his or her full time and attention to the management and operation of the Hotel and shall
have successfully completed Franchisor’s management training program as required under the Franchise Agreement; 
 b. The Hotel will be
operated in strict compliance with the requirements of the Franchise Agreement, and Manager will observe fully and be bound by all terms, conditions and restrictions regarding the management and operation of the Hotel set forth in the Franchise
Agreement, including those related to Confidential Information and the Proprietary Marks, as if and as though Manager had executed the Franchise Agreement as “Franchisee,” provided that Manager obtains no rights under the terms of the
Franchise Agreement except as specifically set forth herein. Manager shall comply with all applicable laws, rules, and regulations, and shall obtain in a timely manner all permits, certificates, and licenses necessary for the full and proper
operation of the Hotel; 
 c. Franchisor may enforce directly against Manager all terms and conditions in the Franchise Agreement regarding
Intellectual Property during and subsequent to Manager’s tenure as operator of the Hotel; 
 d. Any default under the terms and
conditions of the Franchise Agreement caused wholly or partially by Manager shall constitute a default under the terms and conditions of the Management Agreement, for which Franchisee shall have the right to terminate the Management Agreement;

 e. Franchisee and Manager shall not modify or amend the Management Agreement in such a way as to create a conflict or other inconsistency
with the terms and conditions of the Franchise Agreement or this Manager Acknowledgment; 
 f. Except in extraordinary circumstances, such as
theft or fraud on the part of Manager or a default by Franchisee under the Franchise Agreement caused by Manager for which Franchisee needs to promptly remove Manager from the Hotel, the Management Agreement shall not be terminated or permitted to
expire without at least thirty (30) days’ prior written notice to Franchisor; and 
 g. Franchisor shall have the right to
communicate directly with Manager and the managers at the Hotel regarding day-to-day operations of the Hotel and such communications shall be deemed made to Franchisee because Manager and the managers at the Hotel are acting on behalf of Franchisee
and Manager as their agents and Franchisor shall have the right to rely on the instructions of such managers as to matters relating to the operation and promotion of the Hotel. 
 4. Existence and Power. Manager and Franchisee each represents and warrants with respect to itself that (i) it is a legal entity duly formed,
validly existing, and in good standing under the laws of the jurisdiction of its formation, (ii) it has the ability to perform its obligations under this Manager Acknowledgment and under the Management Agreement, and (iii) it has all
necessary power and authority to execute and deliver this Manager Acknowledgment. 
  

 53 

 5. Authorization; Contravention. 
 a. Manager and Franchisee each represents and warrants with respect to itself that the execution and delivery of this Manager Acknowledgment and the
performance by Manager and Franchisee of its respective obligations hereunder and under the Management Agreement: (i) have been duly authorized by all necessary action; (ii) do not require the consent of any third parties (including
lenders) except for such consents as have been properly obtained; and (iii) do not and will not contravene, violate, result in a breach of, or constitute a default under (a) its certificate of formation, operating agreement, articles of
incorporation, by-laws, or other governing documents, (b) any regulation of any governmental body or any decision, ruling, order, or award by which each may be bound or affected, or (c) any agreement, indenture or other instrument to which
each is a party; and 
 b. Manager represents and warrants to Franchisor that neither Manager (including, without limitation, any and all of
its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person (as defined in the Franchise Agreement). Neither Manager nor any affiliate of Manager is directly or
indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Manager nor any affiliate of Manager is acting on behalf of a government of any country that is subject to such an
embargo. Manager further represents and warrants that it is in compliance with any applicable anti-money laundering law, including, without limitation, the USA Patriot Act. Manager agrees that it will notify Franchisor in writing immediately upon
the occurrence of any event which would render the foregoing representations and warranties of this Section 5.b. incorrect. 
 6.
Controlling Agreement. If there are conflicts between any provision(s) of the Franchise Agreement and this Manager Acknowledgment on the one hand and the Management Agreement on the other hand, the provision(s) of the Franchise Agreement and
this Manager Acknowledgment shall control. 
 7. No Release. This Manager Acknowledgment shall not release or discharge
Franchisee from any liability or obligation under the Franchise Agreement, and Franchisee shall remain liable and responsible for the full performance and observance of all of the provisions, covenants, and conditions set forth in the Franchise
Agreement. 
 8. Limited Consent. Franchisor’s consent to Manager operating the Hotel is personal to Manager, and this Manager
Acknowledgment is not assignable by Franchisee or Manager. If there is a change in control of Manager or if Manager becomes, is acquired by, comes under the control of, or merges with or into a Competitor, or if there is a material adverse change to
the financial status or operational capacity of Manager, Franchisee shall promptly notify Franchisor of any such change and Manager shall be subject to approval under the Franchise Agreement as a new operator of the Hotel. 
 9. Defined Terms. Unless specifically defined herein, all capitalized terms used in this Manager Acknowledgment shall have the same meanings set
forth in the Franchise Agreement. 
 10. Counterparts. This Manager Acknowledgment may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed signature page to this Manager Acknowledgment by facsimile transmission shall be effective as delivery
of a manually signed counterpart of this Manager Acknowledgment. 
  

 54 

 11. Governing Law. This Manager Acknowledgment shall be construed in accordance with the laws of
the State of Maryland without regard to the conflict of laws principles thereof, and contains the entire agreement of the parties hereto. Manager hereby submits itself to the non-exclusive jurisdiction of the courts of the State of Maryland, United
States of America, in any suit, action, or proceeding arising, directly or indirectly, out of or relating to this Manager Acknowledgment; and so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative.

 12. Manager’s Address. Manager’s mailing address is
                            . Manager agrees to provide written notice to both Franchisee and
Franchisor if there is any change in Manager’s mailing address. 
 13. IN ANY LITIGATION BETWEEN THE PARTIES FOUNDED UPON OR ARISING
FROM THIS MANAGER ACKNOWLEDGMENT OR THE FRANCHISE AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Manager Acknowledgment, under seal, as of the date first above written.

  

									
		 		 	FRANCHISOR:
			
	ATTEST:	 		 	MARRIOTT INTERNATIONAL, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	FRANCHISEE:
			
	ATTEST:	 		 	[FRANCHISEE]
					
	  
	 		 	By:	 	  
	 	(SEAL)
	(Assistant) Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	MANAGER:
			
	ATTEST:	 		 	[MANAGER]
					
	  
	 		 	By:	 	  
	 	(SEAL)
	(Assistant) Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	

  

 55 

 ATTACHMENT D 
 FORM OF ELECTRONIC SYSTEMS LICENSE AGREEMENT 
 This Electronic Systems License Agreement (this
“License Agreement”) is made and entered into effective as of the      day of                 , 2007 (“Effective
Date”), between Marriott International, Inc., a Delaware corporation (“Franchisor”), and                     , a
                     (“Franchisee”). 
 WITNESSETH: 
 WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement dated as of the
date hereof (the “Franchise Agreement”) pursuant to which Franchisee will establish and operate the Hotel under Franchisor’s System at the location specified in the Franchise Agreement; and 
 WHEREAS, pursuant to the terms of the Franchise Agreement, Franchisee is required to use certain Electronic Systems in connection with, and as a
condition of operating the Hotel, and Franchisor desires to make available to Franchisee such Electronic Systems pursuant to the terms and conditions of this License Agreement. 
 NOW, THEREFORE, in consideration of the premises and the undertakings and commitments of each party to the other party set forth herein, the parties
agree as follows: 
 1. Defined Terms. Capitalized terms not defined in this License Agreement shall have the meaning given to them in
the Franchise Agreement. 
 2. License Grant. Subject to the terms and conditions of this License Agreement, Franchisor hereby grants
to Franchisee a nonexclusive, non-transferable right and license to use the Electronic Systems made available by Franchisor. For each Electronic System, the license will commence on the installation date thereof, and shall extend until termination
of this License Agreement or such time as Franchisor ceases to make such Electronic System available in accordance with Franchisor’s operation of the System. 
 3. Ownership; Use Restrictions. All Electronic Systems shall at all times remain the sole property of Franchisor or any third-party vendors, as applicable. Franchisee shall at all times treat the Electronic
Systems as confidential. Franchisee shall not at any time, without Franchisor’s or such third party’s prior written consent (which may be withheld in Franchisor’s or such third party’s sole discretion), copy, modify, reverse
engineer, or otherwise duplicate the Electronic Systems or any component thereof, in whole or in part, or otherwise make the same available to any third party. Franchisee will use the Electronic Systems for the exclusive purpose of operating the
Hotel in accordance with the Franchise Agreement. Franchisee will take reasonable measures to ensure that only authorized employees of Franchisee at the Hotel have access to the Electronic Systems, and only for permitted purposes hereunder. Such
measures shall be subject to review and inspection by Franchisor. Franchisee will not attempt to modify, delete or circumvent any measures used by Franchisor to safeguard the Electronic Systems and the Intellectual Property therein. Franchisor
reserves the right to suspend Franchisee’s access to any Electronic System in order to protect Franchisor’s Intellectual Property or other systems, data or property of Franchisor or its vendors. 
  

 56 

 4. Third Party Vendors; Preferred Vendors. If any Electronic System is provided by a third party
vendor, Franchisee will comply with the terms and conditions provided by such vendors in connection therewith. Franchisee acknowledges and agrees that such third party vendors shall have the right to enforce such terms and conditions directly
against Franchisee, and Franchisor shall have no liability in connection with Franchisee’s use of any third party Electronic System. Franchisor may also require Franchisee to execute license or similar agreements directly with such third party
vendors in order to obtain access to Electronic Systems that are required under Franchisor’s System. Franchisee shall be deemed to be in direct privity of contract with any third party provider of Electronic Systems. From time to time
Franchisor may designate a third party vendor of Electronic Systems as a “preferred vendor” based on Franchisor’s reasonable judgment that such third party Electronic System is suitable or desirable for Franchisor’s System.
Franchisee acknowledges and agrees that Franchisor neither endorses nor makes any representations or warranties in connection with any third party’s Electronic Systems, including any Electronic System provided by a preferred vendor. 

5. Support Services. Franchisor will use commercially reasonable efforts to maintain and support the Electronic Systems (the
“Services”) during the term of this License Agreement either by itself or through third party vendors as deemed appropriate by Franchisor. 
 6. Term and Termination. This License Agreement shall commence on the Effective Date and remain in force until termination of the Franchise Agreement. 
 7. DISCLAIMERS. FRANCHISEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS LICENSE AGREEMENT, FRANCHISOR PROVIDES
THE ELECTRONIC SYSTEMS AND ANY ASSOCIATED SERVICES ON AN AS-IS BASIS, AND FRANCHISOR DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CUSTOM OR
USAGE IN THE TRADE, IN CONNECTION WITH FRANCHISEE’S USE OF THE ELECTRONIC SYSTEMS AND THE PROVISION OF THE SERVICES UNDER THIS LICENSE AGREEMENT. 
 8. Limitation on Liability. Franchisor shall not be liable for any damage arising out of or in connection with the use or failure of any Electronic Systems or Services, including, but not limited to, corruption
of data, and Franchisee hereby waives any right to or claim of any exemplary, incidental, indirect, special, consequential, or other similar damages (including without limitation, loss of profits) in connection with the use or failure of Electronic
Systems or Service, even if Franchisor has been advised of the possibility of same. Franchisor shall use reasonable efforts, to the extent legally permissible, to pass through to Franchisee any warranties or other similar protections provided to
Franchisor by Franchisor’s vendors with respect to Electronic Systems. 
 9. Indemnification. Franchisee agrees to indemnify,
defend and hold harmless Franchisor and its respective officers, directors, employees, agents, successors, and assigns, from any losses, fines, liabilities, damages and claims, and all related costs and expenses, including reasonable legal fees,
disbursements and costs of investigation, litigation, settlement, judgment, interest and penalties (collectively, “Losses”) incurred by Franchisor in connection with Franchisee’s use of the Electronic Systems or any failure by
Franchisee to comply with the terms of this License Agreement. Such indemnification and hold harmless obligations shall be subject to and incorporated into Section XXI.E. of the Franchise Agreement. 
  

 57 

 10. Software License Rights Upon Termination. Franchisee acknowledges and agrees that most
Software purchased by Franchisees through Franchisor’s procurement process is purchased in Franchisor’s name, and is not assignable to Franchisee upon termination of this License Agreement (“Non-Assignable Software”). As such,
upon termination of this License Agreement, Franchisee’s right to use such Non-Assignable Software shall automatically cease. With respect to software purchased through Franchisor’s procurement process that is assignable to Franchisee upon
termination of this License Agreement (“Assignable Software”), upon the request of Franchisee, Franchisor will provide reasonable assistance in helping to facilitate assignment of such software, including obtaining consent of the vendor
where necessary. Upon termination of this License Agreement, Franchisee shall delete both Assignable Software and Non-Assignable Software obtained through Franchisor’s procurement process and, with respect to Assignable Software, Franchisee may
reinstall such software on the applicable computing equipment using software copies obtained by Franchisee directly from the applicable vendor. 
 11. Miscellaneous. All notices and other communications hereunder shall be in writing and shall be delivered in accordance with the terms of the Franchise Agreement. This License Agreement may not be modified or amended except by an
agreement in writing signed by the parties hereto. Waiver of any provision hereof in one or more instances shall not preclude enforcement thereof on future occasions. This License Agreement may not be assigned by Franchisee to any third party,
except in connection with an assignment of the Franchise Agreement as expressly permitted therein. This License Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the
jurisdiction set forth in the Franchise Agreement. This License Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and supersedes all other communications, whether written or oral.

 IN WITNESS WHEREOF, the parties hereto have caused this License Agreement to be duly executed and delivered, under seal, as of the date
first above written. 
  

									
		 		 	FRANCHISOR:
			
	ATTEST:	 		 	MARRIOTT INTERNATIONAL, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	FRANCHISEE:
			
	ATTEST/WITNESS:	 		 	[FRANCHISEE]
					
	  
	 		 	By:	 	  
	 	(SEAL)
	(Assistant) Secretary/Witness	 		 	Name:	 		 	
		 		 	Title:	 		 	

  

 58 

 ATTACHMENT E 
 CHANGE OF OWNERSHIP RIDER 
 Franchisee desires that the Hotel continue to be operated as a SpringHill Suites
by Marriott hotel and the following additional terms and provisions and modifications to the Agreement shall apply, which shall be an integral part of the Agreement: 
 1. Paragraph I.A is hereby amended by inserting the following sentence at the beginning of such Paragraph: 
 “On or before the Effective Date, Franchisee has (i) caused Existing Franchisee to deliver to Franchisor the Termination Agreement duly executed by all parties thereto other than Franchisor and
(ii) paid Franchisor’s outside legal counsel fees and expenses incurred in connection with the review, preparation and negotiation of this Agreement and ancillary documents related thereto.” 
 2. Paragraph I.B is hereby amended and restated in its entirety to read as follows: 
 “B. Franchisee understands and agrees that if Franchisee fails to comply with the requirements of the Property Improvement Plan set
forth in the Addendum attached hereto in strict compliance with the standards and specifications of Franchisor, then in such event, (i) Franchisor is not obligated to authorize Franchisee to operate the Hotel as a SpringHill Suites by Marriott
hotel, and (ii) this Agreement shall, upon notice by Franchisor to Franchisee, be terminated in accordance with Paragraph XVII.B.7. For purposes of this Agreement, the terms “Hotel” and “Franchised Business” shall refer to
(i) the hotel and all land used in connection with the hotel located or to be located at the Approved Location; (ii) all improvements, structures, facilities, entry and exit rights, parking, pools, and appurtenances (including without
limitation the hotel building, public facilities, and all operating systems therein); and (iii) all FF&E (as defined herein), supplies, goods, and other items installed in such improvements.” 
 3. Paragraph III.A is hereby amended and restated in its entirety to read as follows: 
 “A. Franchisor acknowledges having received from Franchisee a transfer fee of Fifty Thousand Dollars ($50,000), which fee was paid by
Franchisee to Franchisor in consideration for the administrative and other expenses incurred by Franchisor in processing Franchisee’s application (the “Transfer Fee”). Franchisee acknowledges and agrees that the Transfer Fee is not
refundable. Franchisee shall have no right to expand the number of rooms or suites at the Hotel beyond the number set forth in Attachment A to this Agreement. If Franchisee proposes to expand the number of rooms or suites, Franchisee must pay to
Franchisor, along with its request for approval of expansion, a fee equal to the then-current application fee per guest room or suite for each proposed additional guest room or suite. The additional application fee will be refundable only if the
request for approval is disapproved by Franchisor, which approval or disapproval will be at the sole discretion of Franchisor. The amount refunded will be the additional application fee less a processing charge. The additional application fee shall
be non-refundable upon Franchisor’s approval of the proposed expansion.” 
  

 59 

 4. Paragraph III. is hereby further amended by adding the following new Paragraph J after Paragraph I: 
 “J. Notwithstanding any provision of this Agreement to the contrary, Franchisee agrees that, except as provided below in this
Paragraph III. J, if the Effective Date is not the first day of an Accounting Period then, for the Accounting Period in which the Effective Date occurs (the “Initial Accounting Period”), Franchisee shall pay to Franchisor all
amounts due to Franchisor or its affiliates with respect to the operation of the Hotel for the entire Initial Accounting Period as though the term of this Agreement had begun on the first day of the Initial Accounting Period, and that any dispute
between Franchisee and Existing Franchisee concerning the allocation of payments for the Initial Accounting Period shall be no defense to Franchisee’s obligations pursuant to this Paragraph III.J. This Paragraph III.J shall not apply to amounts
due pursuant to Paragraph III.C, III.D or III.E(i) above.” 
 5. The references to the “Opening Date” in Paragraph XIII.B. are amended to be
references to the “Effective Date.” 
 6. Paragraph XXX is hereby amended by adding the following new Paragraphs F and G after Paragraph E:

 “F. FRANCHISEE ACKNOWLEDGES THAT FRANCHISOR (i) DID NOT ENDORSE, RECOMMEND, OR OTHERWISE CONCUR WITH THE TERMS OF ANY TRANSACTION
PURSUANT TO WHICH FRANCHISEE MAY HAVE ACQUIRED THE RIGHT TO OPERATE THE HOTEL FROM A PRIOR FRANCHISEE OF FRANCHISOR; (ii) DID NOT PARTICIPATE IN THE DECISION REGARDING THE PRICE OR COMPENSATION TO BE PAID BY FRANCHISEE TO ANY THIRD PARTY FOR
SUCH RIGHT, WHICH DECISION WAS MADE WITHOUT ANY INTERVENTION, SUPPORT OR PARTICIPATION BY FRANCHISOR; AND (iii) DID NOT COMMENT UPON ANY FINANCIAL PROJECTIONS SUBMITTED TO FRANCHISEE BY OR ON BEHALF OF ANY PRIOR FRANCHISEE. 
 G. FRANCHISEE ACKNOWLEDGES AND AGREES TO BE BOUND BY ALL ANCILLARY AGREEMENTS BETWEEN EXISTING FRANCHISEE AND FRANCHISOR, INCLUDING, BUT NOT LIMITED TO,
ANY LICENSING AGREEMENTS, COST SHARING AGREEMENTS, CLUSTER REVENUE AGREEMENTS, AND ANY OTHER AGREEMENTS RELATING TO THE EXISTING FRANCHISE AGREEMENT. FRANCHISEE AGREES TO EXECUTE ANY SEPARATE ACKNOWLEDGEMENTS OR AMENDMENTS TO SUCH AGREEMENTS
SIGNIFYING FRANCHISEE’S WILLINGNESS TO BE BOUND BY SUCH AGREEMENTS AS FRANCHISOR MAY REASONABLY REQUEST.” 
  

 60 

 PROPERTY IMPROVEMENT PLAN 
 ADDENDUM 
 Franchisee agrees to upgrade and/or remodel the Hotel in accordance with the
following terms and provisions: 
  

	A.	IMPROVEMENT OF THE HOTEL 

 1. Franchisee agrees to perform
the work set forth at Exhibit A attached hereto. Unless otherwise specified in this Addendum, all work, including, without limitation, furniture, fixtures, equipment, furnishings, and signs, shall conform to SpringHill Suites by Marriott
specifications as set forth in the Manual or otherwise in writing by Franchisor. 
 2. IN ORDER TO SATISFY THE REQUIREMENTS OF THIS ADDENDUM,
FRANCHISEE WILL EXPEND SUBSTANTIAL TIME, EFFORT, AND EXPENSE. NEVERTHELESS, IF FRANCHISEE DOES NOT SATISFY ALL THE REQUIREMENTS OF THIS ADDENDUM WITHIN THE TIME SPECIFIED ON ATTACHMENT A OF THIS AGREEMENT, OR FRANCHISEE DOES NOT COMPLETE ANY ACTION
REQUIRED IN THIS ADDENDUM BY SUCH OTHER DATE AS IS SPECIFIED HEREIN, FRANCHISOR SHALL HAVE THE RIGHT TO TERMINATE THIS AGREEMENT AS SET FORTH IN PARAGRAPH XVII.B.7 OF THIS AGREEMENT. FRANCHISEE ACKNOWLEDGES AND AGREES THAT FRANCHISOR SHALL HAVE NO
LIABILITY OR OBLIGATIONS TO FRANCHISEE FOR ANY LOSSES, OBLIGATIONS, LIABILITIES OR EXPENSES INCURRED BY FRANCHISEE IF THIS AGREEMENT IS TERMINATED BECAUSE FRANCHISEE FAILS TO SATISFY IN A TIMELY MANNER THE REQUIREMENTS OF THIS ADDENDUM. 

3. Franchisee agrees that time is of the essence with regard to the deadlines for the work set forth at Exhibit A attached hereto. 
 4. Franchisee, at its expense, shall comply, to Franchisor’s satisfaction, with all of the requirements set forth below: 
 a. If required to complete the renovations, upgrading or remodeling required by this Addendum, Franchisee shall employ a qualified architect, design firm
or engineer to prepare complete working drawings, including, architectural, mechanical, electrical, civil engineering, plumbing, and fire and life safety plans and landscaping drawings (collectively, the “Plans”). Franchisor shall have the
right to disapprove the architect and design firm (as well as any contractors or subcontractors) to be utilized in connection with the design, renovations, upgrading or remodeling of the Hotel. If requested by Franchisor, Franchisee shall provide to
Franchisor, at least thirty (30) days prior to their engagement by Franchisee, the name and address of any architect, design firm, engineer, contractor or subcontractor that it wishes to retain. If Franchisor does not respond to Franchisee with
its disapproval within thirty (30) days after Franchisor’s receipt of the name, address and any other information on the relevant party(ies) as requested by Franchisor, then Franchisee may retain such party(ies). Franchisee acknowledges
and agrees that Franchisor’s failure to request such information or to respond within the required time period or Franchisor’s consent to Franchisee’s use of such party(ies) shall not be deemed an approval by Franchisor of any such
party(ies). Franchisee acknowledges and agrees that (i) Franchisor is not liable for the unsatisfactory performance of any architect, design firm, engineer, contractor or subcontractor retained by Franchisee, and (ii) Franchisee is solely
responsible for making sure its Plans comply with state, local and federal laws, regulations and ordinances. Franchisee acknowledges and 

  

 61 

 
agrees that Franchisee is solely responsible for making sure that the Hotel and any renovations, upgrading or remodeling thereto comply with state, local and
federal laws, regulations and ordinances. Franchisee shall ensure that the Hotel complies with Franchisor’s Fire Protection and Life Safety standards even if such standards exceed federal, state or local code requirements and shall maintain the
Hotel in accordance with such standards, as the same may be modified from time to time by Franchisor in its sole discretion. Franchisor requires that the Hotel comply with all state, local, and federal laws, codes and regulations, including but not
limited to the Americans with Disabilities Act and/or other similar state laws, codes, and/or regulations governing public accommodations for persons with disabilities. Franchisee shall, upon the earlier of (i) completion of the work or
(ii) the first anniversary of the Effective Date, provide to Franchisor a written certificate or opinion from its architect, licensed professional engineer, or recognized expert consultant on the Americans with Disabilities Act stating that the
Hotel conforms to the requirements of the Americans with Disabilities Act, the related federal regulations, and all other applicable state and local laws, regulations and other requirements governing public accommodations for persons with
disabilities. In the event that the completion date for any item or items set forth in Exhibit A extends beyond the first anniversary of the Effective Date, Franchisee shall provide an additional certificate to Franchisor with respect to such item
or items upon final completion of all work related to any and all such items. The certificate or opinion should be in a form substantially identical to the form attached hereto as Exhibit B. 
 b. Franchisee must submit Plans and specifications, furniture layouts and FF&E specifications/samples for all work required hereunder to Franchisor
for approval prior to commencing such work. Franchisor shall have the right to charge Franchisee an amount equal to One Hundred Twenty-Five Dollars ($125) multiplied by the number of hours required for Franchisor’s review of Franchisee’s
Plans. When approved by Franchisor, such Plans shall not thereafter be changed or modified, including changes required by governmental authorities, without the prior written consent of Franchisor. Franchisee acknowledges and agrees that
Franchisor’s review of the Plans under this Paragraph A.4.b. is limited solely to determining whether the Plans comply with Franchisor’s design and construction criteria and the approval by Franchisor of the Plans shall be limited solely
to compliance with such design and construction criteria. 
 c. Franchisee shall obtain all permits and certifications required for lawful
completion of the renovations, upgrading or remodeling required by this Addendum and operation of the Hotel including, without limitation, zoning, access, sign, building permits and fire requirements and shall certify in writing to Franchisor, if
requested, that all such permits and certifications have been obtained. 
 5. During the course of performing the work required by this
Addendum, Franchisee, at its expense, shall comply, to Franchisor’s satisfaction, with all of the requirements set forth below: 
 a.
The Hotel must comply with the standards set forth in the most recent versions of the Manual. 
 b. The Hotel is subject to further review
by Franchisor to, among other things, ensure that the Hotel complies with the requirements of the Property Improvement Plan (“PIP Review”). Franchisee shall ensure that the Hotel complies with all requirements specified by Franchisor
following any PIP Review. Franchisee shall cooperate fully, and shall cause its contractors and subcontractors to cooperate fully, with any inspections conducted by Franchisor pursuant to any PIP Review. 
  

 62 

 c. If any material changes to the Hotel occur after October 3, 2007, then all such changes shall be
subject to additional review by Franchisor (“Material Change Review”). Franchisee shall ensure that the Hotel complies with all requirements specified by Franchisor following a Material Change Review. Franchisee shall cooperate fully, and
shall cause its contractor and subcontractors to cooperate fully, with any inspections conducted by Franchisor pursuant to a Material Change Review. 
 d. Franchisor shall not be deemed to have approved any work done pursuant to this Addendum unless such approval is set forth in writing and signed by Franchisor’s authorized representative. If such approval is
partial or contingent, Franchisee hereby authorizes its General Manager of the Hotel or its Director of Operations (or similarly titled person) to acknowledge in writing the additional work to be performed and the time within which such work will be
performed, and such written acknowledgement shall be binding on Franchisee. 
 e. Franchisee shall comply with the relevant insurance
requirements set forth in Section XIV. of this Agreement. 
 6. Franchisor’s exercise of its rights to approve and inspect any
renovation, upgrading or remodeling of the Hotel shall be solely for the purpose of assuring compliance with the terms and conditions of this Agreement and this Addendum, and Franchisor shall have no liability or obligation with respect to
renovation, upgrading, remodeling or furnishing of the Hotel. 
 7. Upon Franchisee’s written request and provided Franchisee has
diligently pursued commencement and completion of the renovation, remodeling or upgrading of the Hotel, Franchisor may, in its sole discretion, extend the dates specified in Attachment A of this Agreement for commencement and completion of the
action required in this Addendum. Extension requests shall be considered in increments of one or more months. For any extension, Franchisor shall have the right to require Franchisee to pay to Franchisor a nonrefundable extension fee not to exceed
Two Thousand Dollars ($2,000) per month for each month of the extension. The extension fee shall be paid to Franchisor with the written request for the extension and shall be fully refunded in the event Franchisor declines to grant the requested
extension. 
  

	B.	DEFAULT AND TERMINATION DUE TO FAILURE TO SATISFY REQUIREMENTS 

 Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted thereunder effective immediately upon Franchisee’s receipt of notice or upon first refusal of delivery of
notice by Franchisor, upon the occurrence of any of the following events: 
 1. if Franchisee fails to commence the Property Improvement Plan
for the Hotel in accordance with all of the terms and conditions of this Addendum within the time prescribed at Paragraph 3 of Attachment A of this Agreement or fails to control through fee ownership or leasehold the site of the Hotel; or

 2. if Franchisee fails to complete any action in accordance with all of the terms and conditions of this Agreement and this Addendum
within the time prescribed at Paragraph 4 of Attachment A to this Agreement or by such other date as specified herein. 
  

 63 

 EXHIBIT A TO PROPERTY IMPROVEMENT PLAN ADDENDUM 
 SCOPE OF WORK 
 Franchisee agrees to perform
all work and install the items specified below, in addition to satisfying all other requirements set forth in this Agreement as of the dates specified herein. All renovation work, including furniture, fixtures, equipment, furnishings and signs shall
conform to Franchisor’s specifications and standards as set forth in the manuals and drawings or otherwise specified or agreed to in writing by Franchisor. 
 The purpose of this Addendum is to specify the scope of work to be accomplished and the timing appropriate therefor. All work identified must be performed using materials and specifications satisfactory to Franchisor.
The work set forth in this scope of work is in addition to, and the completion of such work does not satisfy, Franchisee’s obligation to periodically update and renovate the Hotel pursuant to Paragraph VII.D. of the Agreement, which obligation
pursuant to Paragraph VII.D. is independent of Franchisee’s obligation to complete the work set forth herein. 
 All items are to
be completed within six (6) months of the Effective Date, unless otherwise noted with respect to a particular item. 
  

	I.	BUILDING EXTERIOR 

  

	 	A.	Exterior Signage and Graphics 

  

	 	1.	Install new identification signage. Sign plans must be submitted to Franchisor for approval. (to be completed within 3 months of the Effective Date)

  

	II.	BUILDING INTERIOR – GENERAL (to be completed by 7/1/2010 in connection with the next renovation and upgrade required pursuant to Section VII.D. of the Franchise
Agreement) 

  

	 	1.	Complete all requirements of a 6 year renovation per standards. 

  

	 	2.	Implement new public space and/or guestroom concept design where applicable and appropriate. 

  

	III.	BUILDING INTERIOR - PUBLIC SPACES 

  

	 	A.	The Market (to be completed within 3 months of the Effective Date) 

  

	 	1.	Install the 24 hour food and beverage Market. Locate near main guest traffic path, and in view of and adjacent to Front Desk. 

  

	 	2.	Install new floor tile and base at the Market per standards. 

  

	 	3.	Install new Market graphics. 

  

	 	4.	Install new Market equipment per standards. 

  

	 	5.	Install new decorative and ambient lighting per design standards. 

  

	 	B.	The Business Library (to be completed within 3 months of the Effective Date) 

  

	 	1.	Install the Business Library. 

  

	 	2.	Locate in the public space of the lobby. 

  

	 	3.	Install with granite counter top. 

  

	 	4.	Install a minimum of one PC. 

  

	IV.	BUILDING INTERIOR - GUEST ROOMS 

  

	 	A.	Bedding 

  

	 	1.	Install new bedding package to include bedskirt, white bedding package and bedscarf. (to be completed within 3 months of the Effective Date)  

 

	 	B.	TV 

  

	 	1.	Replace TVs with LCD flat panel TVs according to standards. (to be completed by 6/1/2009) 

  

 64 

	 	C.	Shower Experience 

  

	 	1.	Install new curved shower rods and two piece shower curtain according to standards. (to be completed within 3 months of the Effective Date) 

 

	V.	FIRE PROTECTION / LIFE SAFETY 

  

	 	1.	Remove storage from the sprinkler room, the mechanical rooms, and the electrical rooms throughout the hotel. Ensure a minimum 36” clearance around all electrical panels
throughout the property. (to be completed within 30 days of the Effective Date) 

  

	 	2.	Remove the gasoline and gasoline powered tools immediately from the hotel. Ensure all flammable products including paint are stored in yellow fire proof cabinets. No flammable
products are to be stored anywhere inside Marriott properties. (to be completed within 30 days of the Effective Date) 

  

	 	3.	Ensure there is a safe path of travel from all exits onto a hard surface that leads to an area of refuge. Currently, the rear doors from the pool have no access to the street, side
of the building, or parking lot. The concrete walk-ways must be extended to the parking lots or other hard surfaced location where people can safely evacuate. 

 For Internal Use Only 
  

							
		  	OASIS TR Date:	 	6 Months	  	
				
		  	OASIS RD Date:	 	7/1/2010	  	

  

 65 

 EXHIBIT B TO PROPERTY IMPROVEMENT PLAN ADDENDUM 
 ADA CERTIFICATION 
 (TO BE
COMPLETED BY FRANCHISEE’S ARCHITECT, ENGINEER, ADA 
 CONSULTANT, OR OTHER LICENSED PROFESSIONAL) 
 In connection with the proposed [NAME AND LOCATION OF HOTEL] (the “Hotel”), I hereby represent and certify to [FRANCHISEE] and to Marriott
International, Inc. that: 
  

	(i)	I have used professionally reasonable efforts to ensure that the Hotel conforms to and complies with the design standards and requirements of the Americans with Disabilities Act
(“ADA”), the ADA Architectural Guidelines (“ADAAG”), and all other related or similar state and local laws, regulations, and other requirements governing public accommodations for persons with disabilities in effect at the time
that this certification is made, and 

  

	(ii)	In my professional judgment, the Hotel does in fact conform to and comply with such design standards and requirements. 

  

			
	By:	 	  

		
	Print Name:	 	  

		
	Firm:	 	  

		
	Date:	 	  

  

 66 

 ATTACHMENT F 
 FORM OF OWNER AGREEMENT 
 This AGREEMENT (“Agreement”) is entered into as of the
     day of                 , 2007, by and among Marriott International, Inc., a Delaware corporation (“Franchisor”),
                    , a
                                        
(“Franchisee”), and                     , a
                                        
(“Owner”). 
 W I T N E S S E T H: 
 [The Franchise Agreement should be revised to account for the Owner Agreement. The grant of the franchise should be conditioned on the existence of a valid and effective Owner Agreement. Owner’s or
Franchisee’s breach of the Owner Agreement and the termination of the Owner Agreement should be defaults under the Franchise Agreement granting Franchisor the right to terminate the Franchise Agreement.] 
 WHEREAS, Franchisor and Franchisee are parties to that certain Franchise Agreement dated as of
                     (as may be amended from time to time, the “Franchise Agreement”) relating to the Hotel (as defined in
the Franchise Agreement); and 
 WHEREAS, Owner represents and warrants that it holds fee title to the Hotel; and 
 WHEREAS, Owner and Franchisee [will enter] [have entered] into a lease agreement, management agreement or operating agreement (the “Operating
Agreement”) whereby Franchisee will lease the Hotel from Owner and will operate the Hotel; and 
 WHEREAS, Owner, Franchisee and
Franchisor desire that the Hotel be operated as a [            ] Hotel pursuant to the terms and conditions of the Franchise Agreement and this Agreement. 
 NOW, THEREFORE, the parties, in consideration of the premises and the undertakings and commitments of each party set forth herein, agree as follows:

  

	1.	[Intentionally Omitted] 

  

	2.	Termination of the Franchise Agreement. 

 Franchisor
shall have the right to terminate this Agreement immediately upon termination of the Franchise Agreement by delivering written notice to Owner. 
  

	3.	Termination of the Operating Agreement. 

 Owner
shall notify Franchisor immediately of any pending or actual termination or expiration of the Operating Agreement that is to occur or occurred prior to expiration of the Franchise Agreement, and Franchisor shall have the right to terminate this
Agreement and the Franchise Agreement in connection with any such expiration or termination. If there is a dispute between Owner and Franchisee relating to the termination of the Operating Agreement, Franchisor shall have the right to permit
Franchisee to 

  

 67 

 
operate the Hotel pursuant to the Franchise Agreement so long as Franchisee has possession of the Hotel, and all of Franchisor’s rights under this
Agreement shall be reserved pending resolution of such dispute whether by final court or administrative order or negotiated settlement. 
  

	4.	Transfers Not Involving Competitors. 

 Section XV of
the Franchise Agreement shall apply hereunder to any Transfer of the Hotel, any ownership interest in the Hotel, this Agreement or the Operating Agreement, or of a direct or indirect ownership interest in Owner (including any controlling (greater
than 15%) interest in any entity that controls Owner, but excluding interests of limited partners, if any) as if Owner were a party thereto; any such Transfer(s) by Owner as described above shall be made only in strict compliance with said Section
XV as the context requires. 
  

	5.	Transfers Involving a Competitor and Right of First Refusal. 

 A. No Transfers to a Competitor. If there is a proposed Transfer to a Competitor of the Hotel, any ownership interest in the Hotel, Owner’s ownership interest in this Agreement or in the Operating
Agreement, or an ownership interest in either Owner or an affiliate of Owner, and Owner or such affiliate of Owner (or such Competitor, as the case may be) wishes to accept such proposed Transfer, Owner shall give written notice thereof to
Franchisor, stating the name and full identity of the prospective purchaser or tenant, as the case may be, including the names and addresses of the owners or holders of any ownership interest of such prospective purchaser or tenant, the price or
rental and all terms and conditions of such proposed transaction, together with all other information with respect thereto that is requested by Franchisor and reasonably available to Owner. Within thirty (30) days after receipt by Franchisor of
such notice from Owner, Franchisor, in its sole discretion, shall elect by notice to Owner one of the immediately following four alternatives: 
 (1) Acquisition of Control of Hotel for Cash. If the proposed Transfer is a sale or lease of the Hotel for cash consideration, Franchisor (or its designee) shall have the right to purchase or lease the Hotel at the same price or
rental and upon the same terms and conditions (other than any terms relating to the Brand of the Hotel) as those set forth in such offer from (or to) a Competitor. In such event, Owner and Franchisor (or its designee) shall promptly enter into an
agreement for sale or lease at the price or rental and on terms consistent with such offer. 
 (2) Acquisition of Owner/Acquisition of
Control of Hotel. If the proposed Transfer is a purchase or lease of all or a portion of the ownership interests or the assets (which includes the Hotel) of Owner or an affiliate of Owner, or a merger with or into Owner or an affiliate of Owner,
or the acquisition of Owner’s ownership interest in this Agreement or in the Operating Agreement, or any sale or lease of the Hotel involving non-cash consideration, or other form of Transfer, Franchisor (or its designee) shall have the right
to purchase or lease the Hotel at the purchase or lease price pursuant to terms consistent with such offer (other than the non-cash nature of the consideration and any provision relating to the Brand of the Hotel) as agreed to by the parties. If the
parties are unable to agree as to purchase or lease price and terms within fifteen (15) days of Franchisor’s election, the purchase or lease price of the Hotel shall be determined as follows. Franchisor and Owner each shall, at its own
expense and within thirty (30) days thereafter, obtain an appraisal of the fair market value of the Hotel from a nationally recognized appraiser of Hotel properties comparable to such Hotel. In determining the fair market value, the appraisers
shall be instructed to assume that the Hotel is not subject to a management agreement but is subject to the existing Franchise Agreement. If, after receiving the appraisals, the parties agree on the fair market value of the Hotel, such agreed fair
market value shall constitute the purchase or lease price 

  

 68 

 
hereunder. If, after receiving such appraisals, the parties are not able within ten (10) days to agree on such fair market value, the purchase or lease
price shall be determined by “baseball arbitration” in Washington, D.C. in accordance with the Arbitration Rules for the Real Estate Industry of the American Arbitration Association then in effect (“AAA Rules”) as modified by
this Agreement. The parties shall jointly select a third party to act as the sole arbitrator (the “Arbitrator”) to determine the fair market value of the Hotel, and such Arbitrator shall be a person having at least ten
(10) years’ recent professional experience as to the subject matter in question and shall be qualified to act as an Arbitrator in accordance with the AAA Rules. If the parties do not agree on an Arbitrator with such qualifications within
fifteen (15) days after the expiration of such ten (10) day period referred to above, the Arbitrator shall be appointed by the American Arbitration Association in Washington, D.C. in accordance with the AAA Rules. 
 (i) The Arbitrator shall be instructed and obligated to decide, within thirty (30) days after appointment, whether the appraisal submitted by
Franchisor or the appraisal submitted by Owner most accurately reflects the fair market value of the Hotel based upon the appraisals submitted and such information as is normally relied upon by an appraiser of hotels and real estate. Each party
agrees to fully cooperate and provide all information requested by the Arbitrator related to the Arbitrator’s determination of fair market value hereunder. 
 (ii) The Arbitrator’s choice of appraisal shall be in writing, shall constitute the purchase price hereunder, and shall be final, conclusive and binding on the parties as an “award” under the AAA Rules,
and may be enforced by a court of competent jurisdiction. The expenses of the arbitration shall be borne equally by the parties to the arbitration. Franchisor (or its designee) shall have the right, at any time within thirty (30) days of being
notified in writing of the decision of the Arbitrator, to either (a) purchase the Hotel premises and related property at the valuation determined by the Arbitrator, or (b) terminate this Agreement pursuant to clause (3) below.

 (3) Termination of Franchise Agreement. To place Owner and Franchisee in default and to terminate this Agreement and the Franchise
Agreement, in which event Owner and Franchisee shall be obligated, jointly and severally, to pay Franchisor the applicable liquidated damages as set forth in Section XVIII.E of the Franchise Agreement. 
 (4) Consent. To consent to such Transfer, which consent shall be on such terms and conditions as Franchisor may require, in its sole discretion.

 This Section 5.A shall survive termination of this Agreement if, prior to such termination, any event specified in Section 5 occurs, as a result
of which Franchisor has exercised (or has the right to exercise) the right of first refusal provided herein. 
 B. Affiliates.
Notwithstanding anything to the contrary set forth in Section 5.A, if a Competitor proposes to acquire all of the ownership interests of an affiliate of Owner and the affiliate does not directly or indirectly own, lease or operate any hotels
operating under a trade name or trademark owned by Franchisor or any of its affiliates, then in such event, with respect to such Transfer, Franchisor shall not have any right of first refusal to purchase the Hotel or right to terminate this
Agreement as provided above in Section 5.A. 
 C. Foreclosure. If the Transfer to a Competitor is by foreclosure, judicial or
legal process, such as execution and levy, or by any other means, Franchisor (or its designee) shall have the right to purchase the Hotel upon written notice to Owner. If the parties are unable to agree as to a purchase price 

  

 69 

 
and terms within thirty (30) days of Franchisor’s notice, the fair market value of the Hotel premises and related property shall be determined by
arbitration pursuant to the procedure set forth in Section 5.A(2) above. This provision shall survive the termination of this Agreement and the termination of the Franchise Agreement under Paragraph XVII.A thereof in connection with the
Competitor’s actions under Paragraph XV.E. of the Franchise Agreement or this Section 5.C. 
 D. Owner Becomes a Competitor.
If Owner or any of its affiliates becomes a Competitor, Owner shall so notify Franchisor providing the data required pursuant to Section 5.A., or if Franchisor otherwise determines that Owner or any of its affiliates has become a Competitor,
Franchisor shall so notify Owner and assert that Franchisor has the rights set forth above at Section 5.A. Provided Franchisor has received sufficient pricing and other data to allow an informed decision, Franchisor shall make its election
thereunder within thirty (30) days of Franchisor’s receipt of such notice from Owner or within thirty days of Franchisor’s giving notice to Owner in which Franchisor asserts that Owner or any of its affiliates has become a Competitor.

 E. Right of First Refusal. In addition to the events specified in Section 5.A, Franchisor shall have the rights set forth at
Section 5.A. if any event occurs granting Franchisor a right of first refusal under Section XV of the Franchise Agreement. 
 F. Real
Estate Rights. Owner acknowledges that Franchisor’s rights under this Section 5 are real estate rights in the Hotel. Franchisor is entitled to file a record of such interest in and among the appropriate real estate records of the
jurisdiction in which the Hotel is located, and Owner shall cooperate as requested by Franchisor in such filing. Such recording shall indicate that Franchisor’s rights in real estate under Section 5 of this Agreement shall be subordinate
to the interests of bona fide lenders who are not Competitors or affiliates of Competitors and who record a security interest in the Hotel, provided that any such financing and security interests comply with the requirements of Section 7
hereof. Owner acknowledges and agrees that damages are not an adequate remedy in the event that Owner breaches its obligations under this Section 5, and Franchisor shall be entitled to injunctive relief to prevent or remedy such breach.

 G. Survival of Right of First Refusal. Except for termination of this Agreement pursuant to Section 5.A.(3) above, Owner
agrees that Franchisor’s rights under Section 5 shall survive early termination of this Agreement (as opposed to expiration of this Agreement as set forth in Section 12 hereof) and shall bind Owner, and its affiliates, if: 

(i) prior to or within six (6) months after termination of this Agreement, a Competitor offers (or receives an offer from Owner or an affiliate of
Owner) to purchase or lease the Hotel or to purchase an ownership interest in Owner or an affiliate of Owner, or merge with or into either Owner or such affiliate; and 
 (ii) A. the Franchise Agreement is terminated pursuant to Paragraphs XVII.A., XVII.B.1. or 4. thereof, or pursuant to Paragraph XVII.C. thereof, or
pursuant to Paragraph XVII.D. thereof based upon a violation of Section X.B thereof; or 
 B. the Franchise Agreement is terminated pursuant
to Paragraph XVII.A. thereof and an affiliate, principal or director of Owner obtains possession of the Hotel, or such affiliate, principal or director is the party filing the suit or seeking the execution or foreclosure referenced in Paragraph
XVII.A. of the Franchise Agreement. 
  

 70 

 In addition, Franchisor’s rights under Section 5 shall survive any purported early termination
of this Agreement (as opposed to expiration of this Agreement as set forth in Section 12 hereof) by Owner, and shall bind Owner and its affiliates, if, prior to or within six (6) months after such purported termination, a Competitor offers
(or receives an offer from Owner or an affiliate of Owner) to purchase or lease the Hotel, or to purchase an ownership interest in Owner or an affiliate of Owner, or merge with or into either Owner or such affiliate. 
  

	6.	[Intentionally Omitted] 

  

	7.	Financing of the Hotel. 

 Owner shall not incur or
replace any indebtedness that is secured by a lien on or mortgage of the Hotel or pledge of the stock, partnership, membership or other ownership interests in Owner or Franchisee (whether such indebtedness is incurred (i) individually on behalf
of the Hotel or (ii) on a pooled basis with other hotels or legal entities (a “Financed Pool”)) unless the following conditions are met: (1) the terms of such indebtedness are commercially reasonable, (2) commencing on the
third anniversary of the Opening Date, the debt coverage ratio is equal to or greater than 1.3, and (3) the lender is not a Competitor or an affiliate of a Competitor. The debt coverage ratio shall be the ratio of (a) cash available for
the payment of the annual debt service payments (interest and principal) based on the cash flow from the Hotel (or hotels, including the Hotel, that are part of the Financed Pool) (after deduction for any management fee and reserve required under
such management agreement or as a condition to such financing) for the twelve (12) months immediately preceding the written commitment for such indebtedness, to (b) the amount of such annual debt service payments. Owner shall give written
notice to Franchisor of the component hotels and legal entities in a Financed Pool prior to incurring such indebtedness. 
  

	8.	Operation of the Hotel. 

 The Hotel shall be
operated as a [            ] Hotel for the term hereof, and Owner shall cause Franchisee to operate the Hotel in accordance with the terms of the Franchise Agreement. Failure of the Owner
to cause the Hotel to be so operated shall be a material default by Owner hereunder giving Franchisor the right to terminate this Agreement and the Franchise Agreement. 
  

	9.	Owner’s Obligations under the Franchise Agreement. 

 A. Franchisee Default. If Franchisor declares Franchisee to be in default under the Franchise Agreement, Franchisor may enforce the Franchise Agreement directly against Owner as if Owner were the Franchisee under the Franchise
Agreement, and Owner and shall perform, or cause to be performed, the provisions of the Franchise Agreement including, without limitation, Section III on fees, Section VI on operation of the Hotel, Section XIV on insurance and Section XXI on
indemnification. 
 B. Termination of Franchise Agreement. If the Franchise Agreement is terminated and Franchisee fails to perform
any post-termination obligation under the Franchise Agreement, Franchisor may enforce the Franchise Agreement directly against Owner as if Owner were the Franchisee under the Franchise Agreement, and Owner shall perform, or cause to be performed,
all post-termination obligations of Franchisee under the Franchise Agreement, including, without limitation, Section XVIII on liquidated damages and on de-identifying the Hotel as part of the System and cessation of the use of the System and
Proprietary Marks, and Section XXI on indemnification. 
  

 71 

	10.	Provisions of the Operating Agreement. 

 The
Operating Agreement shall include the substance of the immediately following provisions. 
 (i) Franchisee shall have exclusive possession of
the Hotel and exclusive control of the day-to-day operations of the Hotel, subject to a management agreement that complies with the provisions of this Agreement. 
 (ii) The Hotel will be operated in full compliance with the provisions of the Franchise Agreement. The Franchise Agreement shall control in case of conflict with the Operating Agreement. 
 (iii) The provisions in the Operating Agreement that reflect this Section 10 and any other provisions in the Operating Agreement affecting or for
the benefit of Franchisor, shall not be amended or modified without Franchisor’s prior written consent. 
  

	11.	Surrender by Franchisee. 

 Upon the occurrence of
the events described herein for the replacement of Franchisee as possessor and operator of the Hotel, Franchisee shall surrender its rights and interest in the Franchise Agreement to Franchisor and peaceably turn over possession of the Hotel to
Owner without need for legal or judicial process. 
  

	12.	Term. 

 The term of this Agreement shall commence on
the date first set forth above and shall expire upon the expiration of the term of the Franchise Agreement, unless this Agreement is terminated prior thereto in accordance with this Agreement. If the term of the Franchise Agreement is renewed or
otherwise extended, the term of this Agreement shall automatically be extended to be coterminous with the extended term of the relevant franchise agreement. 
  

	13.	Survival. 

 Notwithstanding any provision to the
contrary contained herein, Sections 9, 16 and 17 of this Agreement shall survive and remain in full force and effect after termination or expiration of this Agreement for any reason, and Sections 5 and 14 shall survive the termination or expiration
of this Agreement for any reason to the extent provided in such Sections. 
  

	14.	Casualty. 

 If the Hotel is damaged or destroyed by
fire or other cause and such damage or destruction is substantial and material, affecting over fifty percent (50%) of the Hotel, and necessitates the closing of the Hotel for a period in excess of ninety (90) days, Owner shall have the
right to terminate this Agreement and to cause the Franchise Agreement to be terminated if it elects not to rebuild the Hotel upon written notice to Franchisor given within ninety (90) days of such closing of the Hotel; provided, however, if
subsequent to such notice and prior to the date on which the term of the Franchise Agreement would otherwise have ended pursuant to Section II of the Franchise Agreement if such notice of termination had not been given (“Term Expiration
Date”), Owner or Franchisee, or any affiliated companies or any company controlled by a controlling stockholder of Owner or Franchisee if Owner or 

  

 72 

 
Franchisee is a corporation, or any of their respective general partners, or any entity in which Owner or Franchisee or any of their respective general
partners (the “Owner Entity” or “Franchisee Entity”) has a fifteen percent (15%) or greater interest in or operates a hotel; vacation, timesharing, interval or fractional ownership facility; condominium; apartment; or other
lodging product at the Approved Location (the “Other Lodging Product”), which Other Lodging Product is not operated pursuant to a license or franchise from Franchisor or one of its affiliates, then in such event, Owner or Franchisee,
depending upon whether an Owner Entity or Franchisee Entity has the ownership interest in or is operating the Other Lodging Product, shall be obligated to promptly pay to Franchisor an amount equal to the liquidated damages set forth in Section
XVIII.E. of the Franchise Agreement, and the time element for calculating the amount of liquidated damages shall be the lesser of (a) thirty-six (36) months or (b) one-half ( 1/
2) the number of months then remaining between (i) the date upon which the Other Lodging Product is first operated by or for the Owner Entity or Franchisee
Entity and (ii) the Term Expiration Date. Owner’s and Franchisee’s obligations set forth in this Section 14 shall survive termination of this Agreement pursuant to this Section 14. In the event that the Hotel does not close
for ninety (90) days or the Owner does not elect to terminate this Agreement in accordance with the provisions of this Section 14, the Hotel shall be promptly renovated and reopened within a reasonable time in accordance with the System
and pursuant to plans and specifications approved by Franchisor in accordance with Section VII of the Franchise Agreement. 
  

	15.	Condemnation. 

 Owner shall, at the earliest
possible time, give Franchisor notice of any proposed taking of the Hotel by eminent domain. If the Hotel is condemned, or such a substantial portion of the Hotel is condemned to render impractical the continued operation of the Hotel in accordance
with the System, this Agreement and the Franchise Agreement shall terminate upon notice by Franchisor to Owner and Franchisee, and Franchisor shall share in the condemnation award to the extent such award includes an allocation for its lost royalty
income. If a non-substantial condemnation shall occur, then in such event Owner shall promptly make whatever repairs and restoration may be necessary to make the Hotel conform substantially to its former condition, character, and appearance,
according to plans and specifications approved by Franchisor, and the resumption of normal operation of the Hotel shall not be unreasonably delayed. 
  

	16.	Notices. 

 A. Any and all notices, requests,
demands, statements and other communications required or permitted under this Agreement shall be in writing and shall be delivered personally or delivered by a nationally-recognized overnight commercial delivery service (such as Airborne Express or
Federal Express) or by certified mail, return receipt requested, to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other party: 
  

					
	If to Franchisor:        	  	Marriott International, Inc.	  	
		  	Franchise Attorney	  	
		  	Law Department 52/923.25	  	
		  	10400 Fernwood Road	  	
		  	Bethesda, MD 20817	  	
			
	With a copy to:	  	Marriott International, Inc.	  	
		  	Vice President, Owner and Franchise Services	  	
		  	10400 Fernwood Road	  	
		  	Bethesda, MD 20817	  	

  

 73 

					
	If to Franchisee:	  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
			
	If to Owner:	  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
			
	With copy to:	  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	

 Any notice shall be deemed to have been given at the date and time of: (A) receipt or first refusal of
delivery, if sent via certified mail or delivered by hand; or (B) one day after posting if sent via overnight commercial delivery service. 
 B. Notwithstanding Section 16.A. above, Franchisor may provide Franchisee and/or Owner with routine information, the Standards, the Manual and other System requirements and programs, such as the Quality Assurance Program, including any
modifications thereto, by regular mail or by e-mail, facsimile, the internet, an extranet, or other electronic means. 
  

	17.	Successors and Assigns. 

 This Agreement shall run
to the benefit of and be binding upon the parties hereto and their approved successors and assigns. Franchisor shall have the right to Transfer this Agreement to any person or legal entity without prior notice to, or consent of, Owner or Franchisee,
provided the transferee assumes Franchisor’s obligations to Owner, and Franchisee under this Agreement. Owner and Franchisee hereby acknowledge and agree that any such Transfer shall constitute a release and novation of Franchisor with respect
to this Agreement. Except as may be provided above, this Agreement shall not be assigned by Owner or Franchisee. 
  

	18.	Governing Law. 

 This Agreement is executed pursuant
to, and shall be construed under and governed exclusively by, the laws of the State of Maryland, United States of America, which laws shall prevail in the event of any conflict of law. Nothing in this Section 18 is intended, or shall be deemed,
to make the Maryland Franchise Registration and Disclosure Law apply to this Agreement, or the transactions or relationships contemplated hereby, if such law otherwise would not be applicable. 
  

 74 

	19.	Ownership Structure. 

 A. If Owner is neither a
natural person nor a publicly held corporation, the stock of which is traded on a nationally recognized stock exchange (with no individual holding 5% or more of the outstanding stock), Owner represents that its equity is directly and (if applicable)
indirectly owned as shown on Attachment A hereto. 
 B. Owner represents and warrants to Franchisor that neither Owner (including, without
limitation, any and all of its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person. Neither Owner nor any affiliate is directly or indirectly owned or controlled
by the government of any country that is subject to an embargo by the United States government. Neither Owner nor any affiliate is acting on behalf of a government of any country that is subject to such an embargo. Owner further represents and
warrants that it is in compliance with any applicable anti-money laundering law, including, without limitation, the USA Patriot Act. Owner agrees that it will notify Franchisor in writing immediately upon the occurrence of any event which would
render the foregoing representations and warranties of this Section 19.B. incorrect. 
  

	20.	Entire Agreement; Counterparts. 

 A. This Agreement,
including the attachments hereto, and the agreements executed simultaneously herewith, or pursuant to, or in connection with, this Agreement (including, without limitation, the Franchise Agreement), contain the entire agreement between the parties
hereto as it relates to the Hotel as of the date hereof. The Franchise Agreement is attached hereto as Attachment B; Owner hereby acknowledges that it has read and fully understands Attachment B as it applies hereunder. 
 B. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes and all of which
shall constitute, collectively, one agreement. Delivery of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually signed counterpart of this Agreement. This is a fully integrated
agreement. No agreement of any kind relating to the matters covered by this Agreement shall be binding upon any party unless and until the same has been made in a written, non-electronic instrument that has been duly executed by the non-electronic
signature of all interested parties. This Agreement may not be amended or modified by conduct manifesting assent, or by electronic signature, and each party is hereby put on notice that any individual purporting to amend or modify this Agreement by
conduct manifesting assent or by electronic signature is not authorized to do so. 
  

	21.	Effects of Waivers. 

 No failure of a party to
exercise any power reserved to it by this Agreement, or to insist upon strict compliance by the other party with any obligation or condition hereunder, and no custom or practice of the parties at variance with the terms hereof, shall constitute a
waiver of such party’s right thereafter to demand exact compliance with any of the terms herein. Waiver by a party of any particular default by the other party shall not affect or impair such party’s rights with respect to any subsequent
default of the same, similar, or different nature; nor shall any delay, forbearance, or omission of a party to exercise any power or right arising out of any breach or default by the other party of any of the terms, provisions, or covenants hereof,
affect or impair such party’s right to exercise the same. 
  

 75 

	22.	Cost of Enforcement. 

 If for any reason it becomes
necessary for Franchisor or Owner to initiate any legal or equitable action to secure or protect its rights under this Agreement, the prevailing party shall be entitled to recover all costs incurred by it in successfully enforcing said rights,
including reasonable attorneys’ fees. 
  

	23.	Construction and Severability 

 A. Except as
expressly provided to the contrary herein, each section, part, term and/or provision of this Agreement shall be considered severable; and if, for any reason any section, part, term or provision herein is determined to be invalid and contrary to, or
in conflict with, any existing or future law or regulation by a court or agency having valid jurisdiction, such shall not impair the operation of, or have any other effect upon, such other sections, parts, terms and provisions of this Agreement as
may remain otherwise intelligible, and the latter shall continue to be given full force and effect and bind the parties hereto; and said invalid sections, parts, terms or provisions shall be deemed not to be a part of this Agreement. 
 B. Nothing in this Agreement is intended, or shall be deemed, to confer any rights or remedies under or by reason of this Agreement upon any person or
legal entity other than Franchisor (and its affiliates), Franchisee or Owner and their respective permitted successors and assigns. 
  

	24.	Captions. 

 All captions in the Agreement are
intended solely for the convenience of the parties, and none shall be deemed to affect the meaning or construction of any provision hereof. 
  

	25.	Owner Representations, Warranties and Covenants. 

 Owner represents, warrants and covenants that (i) it is a legal entity duly formed, validly existing, and in good standing under the laws of the jurisdiction of its formation, (ii) it and its affiliates have and will continue to
have throughout the term hereof the ability to perform their obligations under this Agreement, (iii) it has all necessary power and authority to execute and deliver this Agreement, (iv) it has read and fully understands Section XV of the
Franchise Agreement (attached hereto as Attachment B) as it applies hereunder and (v) during the term of the Franchise Agreement it will not enter into an Operating Agreement for the management of the Hotel that does not comply with the
provisions of the Franchise Agreement, unless otherwise approved by Franchisor. 
  

	26.	Capitalized Terms. 

 Unless the context requires
otherwise, capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. 
  

	27.	Waiver of Jury Trial. 

 IN ANY LITIGATION BETWEEN
THE PARTIES FOUNDED UPON OR ARISING FROM THIS AGREEMENT OR THE FRANCHISE AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  

 76 

 IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this Owner
Agreement, under seal, as of the date first above mentioned. 
  

									
		 		 	FRANCHISOR:
			
		 		 	MARRIOTT INTERNATIONAL, INC.
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	
			
		 		 	FRANCHISEE:
				
		 		 	  
	 	
		 		 	a/an	 	  
	 	
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	
			
		 		 	OWNER:
				
		 		 	  
	 	
		 		 	a/an	 	  
	 	
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	

  

 77 

 ATTACHMENT A 
 Equity Interest(s) in Owner 
 (Name(s), address(es), and percentages of ownership) 
  

 78 

 ATTACHMENT B 
 FRANCHISE AGREEMENT 
  

 79 

 GUARANTY 
 This GUARANTY (“Guaranty”) is executed as of                     , 2007, by Apple Eight Hospitality,
Inc., a Virginia corporation (“Guarantor”), in favor of and for the benefit of Marriott International, Inc., a Delaware corporation (“Franchisor”). In consideration of and as an inducement to SpringHill Suites by Marriott
Relicensing Franchisor to execute the Franchise Agreement dated as of                     , 2007 (as such agreement may be amended,
supplemented, restated or otherwise modified, the “Agreement”), by and between Franchisor and Apple Eight Hospitality Management, Inc. (“Franchisee”), Guarantor hereby agrees as follows: 
 1. Guarantor hereby unconditionally warrants to Franchisor and its successors and assigns that all of Franchisee’s representations and warranties in
(i) any application submitted by Franchisee to Franchisor in connection with the Agreement and (ii) the Agreement are true, accurate and complete as of the time made and as of the date hereof. Further, Guarantor unconditionally guarantees
that all of Franchisee’s obligations under the Agreement will be punctually paid and performed. 
 2. Upon default by Franchisee and
notice from Franchisor, Guarantor will immediately make each payment and perform each obligation required by Franchisee under the Agreement. Franchisor may extend, modify or release any indebtedness or obligation of Franchisee, or settle, adjust or
compromise any claims against Franchisee without notice to Guarantor and any such action shall not affect the obligations of Guarantor under this Guaranty. Guarantor hereby waives notice of any amendment, supplement, restatement or other
modification of Agreement and notice of demand for payment or performance by Franchisee. Guarantor’s guarantee hereunder shall extend to any extension or renewal of the Agreement. 
 3. Guarantor hereby agrees that the obligations of Guarantor under this Guaranty shall not be reduced, limited, terminated, discharged, impaired or
otherwise affected by: (i) Franchisee’s failure to pay a fee or provide other consideration to Guarantor in consideration for the issuance of this Guaranty; (ii) the occurrence or continuance of a default under the Agreement;
(iii) any assignment of the Agreement; (iv) any modification or amendment of, or waiver or consent or other action taken with respect to, the Agreement or any other agreement or document delivered in connection therewith, including without
limitation any indulgence in or extension of time for the payment of any amounts payable of Franchisee under or in connection with the Agreement or for the performance of any other obligation of Franchisee under the Agreement (any of which
modifications, amendments, waivers or consents may be agreed to or granted without the approval or consent of Guarantor); (v) the voluntary or involuntary liquidation, sale or other disposition of all or any portion of Franchisee’s assets,
or the receivership, insolvency, bankruptcy, reorganization or similar proceedings affecting Franchisee or its assets or the release or discharge of Franchisee from any of its obligations under the Agreement; or (vi) any change of
circumstances, whether or not foreseeable, and whether or not any such change does or might vary the risk of Guarantor hereunder. No failure of Franchisor to exercise any power or right hereunder, or to insist upon compliance by Guarantor with any
term hereof shall constitute a waiver of Franchisor’s right thereafter to demand full compliance with any term herein. 
 4. This
Guaranty constitutes a guaranty of payment and performance and not of collection, and Guarantor specifically waives any obligation of Franchisor to proceed against Franchisee on any money or property held by Franchisee or by any other person or
entity as collateral security, by way of set-off or otherwise or against any other guarantor. Guarantor further agrees that this Guaranty shall continue to be effective or be reinstated as the case may be, if at any time payment of any of the
guaranteed obligations is rescinded or must otherwise be restored or returned by Franchisor upon the insolvency, bankruptcy or reorganization of Franchisee or Guarantor, all as though such payment has not been made. 

 5. Except as otherwise expressly set forth herein, all notices, requests, demands, statements and other
communications required or permitted to be given hereunder shall be in writing and shall be delivered by nationally recognized overnight courier service to Franchisor at the address set forth in the Agreement and to Guarantor at the address set
forth below or for either at such other address as may be designated by Guarantor or by Franchisor, and such communication shall be effective three days after the day sent. This Guaranty may be amended only by a written instrument signed by a duly
authorized representative of each of Guarantor and Franchisor. 
 6. Guarantor hereby unconditionally and irrevocably waives notice of
acceptance of this Guaranty, presentment, demand, diligence, protest and notice of dishonor or of any other kind to which the Guarantor otherwise might be entitled under applicable law. 
 7. Guarantor agrees to pay Franchisor all expenses, including reasonable attorneys’ fees and court costs, incurred by Franchisor, its subsidiaries,
affiliates, or any of their respective successors and assigns, to remedy any defaults of or enforce any rights under this Guaranty or the Agreement, effect termination of this Guaranty or the Agreement, or to collect any amounts due under this
Guaranty or the Agreement. 
 8. If more than one person or entity has executed this Guaranty as a Guarantor hereunder, the liability of each
such Guarantor shall be joint, several and primary. This Guaranty may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument. Delivery
of an executed signature page to this Guaranty by facsimile transmission shall be effective as delivery of a manually signed counterpart of this Guaranty. 
 9. Upon the death of any individual Guarantor, the estate of such Guarantor will be bound by this Guaranty but only for defaults and obligations hereunder existing at the time of death, and the obligations of any
other Guarantors will continue in full force and effect. 
 10. Guarantor represents and warrants to Franchisor that neither Guarantor
(including, without limitation, any and all of its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person (as defined in the Agreement). Neither Guarantor nor any
affiliate of Guarantor is directly or indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Guarantor nor any affiliate of Guarantor is acting on behalf of a government
of any country that is subject to such an embargo. Guarantor agrees that it will notify Franchisor in writing immediately upon the occurrence of any event which would render the foregoing representations and warranties of this Section 10
incorrect. 
 11. This Guaranty is executed pursuant to, and shall be construed under and governed by, the laws of the State of Maryland,
without regard to its conflict of laws provisions. Guarantor hereby submits itself to the non-exclusive jurisdiction of the courts of the State of Maryland, United States of America, in any suit, action, or proceeding arising, directly or
indirectly, out of or relating to this Guaranty; and so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative. 
 12. A. In the event that Guarantor’s Net Worth (as defined below) is less than $30,000,000, as adjusted on January 1 of each year for changes in the Consumer Price Index for All Urban Consumers (CPI-U) for
the U.S. City Average for All Items, 1982-84=100 published by the Bureau of Labor Statistics of the United States Department of Labor or, if such index is not at such time so prepared and published, any comparable index then prepared and published
by an agency of the 

  

 2 

 
government of the United States reasonably selected by Franchisor (the “Minimum Net Worth”), then, from and after such date, all references in this
Guaranty to “Guarantor” shall automatically and without any action of any person or entity be deemed to refer to Guarantor and Apple REIT Eight, Inc. (or, if there is a merger, consolidation, transfer of assets and/or stock, or other
reorganization after the date hereof, the entity that succeeds to all or substantially all of the assets of Apple REIT Eight, Inc. in such transaction) (“Successor Guarantor”) and Successor Guarantor shall be bound by the provisions of
this Guaranty to the same extent as Guarantor. Successor Guarantor shall, if requested by Franchisor, execute and deliver to Franchisor a Guaranty substantially identical to this Guaranty; provided that the failure of Successor Guarantor to execute
and deliver such Guaranty shall not affect the validity and enforceability of this Guaranty against Successor Guarantor. Upon the request of Franchisor from time to time, Guarantor shall, at its sole cost and expense, provide to Franchisor a written
certification from the chief financial officer, comptroller or equivalent officer or employee of Guarantor, certifying in reasonable detail and providing supporting documentation as would be necessary to allow Franchisor to verify the results of
such certification, that, as of such date, Guarantor’s Net Worth is at a level equal to or exceeding the Minimum Net Worth. If the certification and supporting documentation described above is not provided to Franchisor within thirty
(30) days after a request is made therefor and Franchisor has notified Guarantor in such request that Guarantor’s failure to provide such information within such 30-day period will result in Successor Guarantor being deemed a
“Guarantor” hereunder, all references in this Guaranty to “Guarantor” shall automatically and without any action of any person or entity be deemed to refer to Guarantor and Successor Guarantor. 
 B. For purposes of this Guaranty, “Net Worth” shall mean the Net Income from Guarantor’s operations (in the twelve (12) months
immediately preceding such calculation) after fixed charges but before Interest Expense, Income Taxes and Depreciation and Amortization, divided by .10, plus (ii) current assets, minus (iii) total liabilities, all in accordance with United
States generally accepted accounting principles, consistently applied. Calculations of Net Worth shall use Revenue and Costs and Expenses determined in accordance with the Uniform System (as defined in the Agreement). For the purposes of the
foregoing calculation, “fixed charges” shall include, without limitation, insurance costs and expenses required pursuant to any and all applicable franchise agreements and management agreements, reasonable fees paid to any third party
managers for managing Guarantor’s hotel properties, the amount of any transfers into any reserve required pursuant to any applicable franchise agreements and management agreements and such other costs and expenses incurred by Guarantor or are
otherwise reasonably necessary for the proper and efficient operation of its hotel properties. Costs and Expenses shall not include debt service payments. 
 13. IN ANY LITIGATION BETWEEN FRANCHISOR AND GUARANTOR FOUNDED UPON OR ARISING FROM THIS GUARANTY OR THE FRANCHISE AGREEMENT, GUARANTOR HEREBY WAIVES ITS RIGHT TO A JURY TRIAL, AND GUARANTOR HEREBY STIPULATES THAT ANY
SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  

 3 

 IN WITNESS WHEREOF, the undersigned has executed this Guaranty, under seal, as of the date first above
written. 
  

					
	GUARANTOR:
	
	APPLE EIGHT HOSPITALITY, INC.
			
	By:	 	  
	 	(SEAL)
	Name:	 		 	
	Title:	 		 	

  

					
	ADDRESS FOR NOTICES TO GUARANTOR:
	
	c/o Apple REIT Companies
	814 East Main Street
	Richmond, VA 23219

 Acknowledged and agreed with respect to Section 12 of this Guaranty: 

					
	
	APPLE REIT EIGHT, INC.
			
	By:	 	  
	 	(SEAL)
	Name:	 		 	
	Title:	 		 	

  

 4 

 MANAGER ACKNOWLEDGMENT 
 This Manager Acknowledgment (“Manager Acknowledgment”) is executed as of
                    , 2007, by and among Newport Chester, LLC, a Virginia limited liability company (“Manager”), Apple Eight
Hospitality Management, Inc., a Virginia corporation (“Franchisee”), and Marriott International, Inc., a Delaware corporation (“Franchisor”). 
 WHEREAS, Manager has entered into an agreement (“Management Agreement”) with Franchisee, pursuant to which Manager will operate that certain SpringHill Suites by Marriott hotel located at 6006 Landmark
Center Blvd, Greensboro, NC 27407 (the “Hotel”), in accordance with the terms and conditions of that certain SpringHill Suites by Marriott Hotel Franchise Agreement dated
                    , 2007 (as such agreement may be amended, supplemented, restated or otherwise modified, the “Franchise
Agreement”) between Franchisor and Franchisee; and 
 WHEREAS, Franchisee has requested that Franchisor approve Manager to operate the
Hotel in accordance with the Franchise Agreement. 
 NOW, THEREFORE, in consideration of the mutual undertakings and benefits to be derived
herefrom, the receipt and sufficiency of which are acknowledged by each of the parties hereto, it is hereby agreed as follows: 
 1.
Franchisor’s Consent. Franchisor hereby consents to the operation of the Hotel by Manager during the term of the Franchise Agreement on behalf of and subject to the control of Franchisee with respect to and in accordance with the terms
and conditions of the Franchise Agreement, subject to and upon the terms and conditions set forth below. Franchisor’s consent granted in the immediately preceding sentence shall terminate contemporaneously with any termination of the Franchise
Agreement without notice to Manager; provided that the duties and obligations of Manager that by their nature or express language survive such termination, including, without limitation, Sections 3.b. and c. below, shall continue in full force and
effect notwithstanding the termination of the Franchise Agreement. 
 2. Manager Representations and Covenants. Manager represents and
warrants to Franchisor that: 
 a. Manager is not in control of or controlled by persons who have been convicted of any felony or a crime
involving moral turpitude, or been convicted of any other crime or offense or committed any acts, or engaged in any conduct that is reasonably likely to have an adverse effect on the System, the Proprietary Marks, the goodwill associated therewith,
or Franchisor’s interests therein; 
 b. neither Manager nor any affiliate of Manager is a Competitor; 
 c. the Management Agreement is valid, binding and enforceable; contains no terms, conditions, or provisions that are, or through any act or omission of
Franchisee or Manager, may be or may cause a breach of or default under the Franchise Agreement; and is for a term of not less than ten (10) years; and 
 d. neither Manager nor any affiliate of Manager is a person or entity with whom United States persons are prohibited from transacting business. 

 3. Manager and Franchisee Acknowledgements. Manager and Franchisee covenant and agree to the
following: 
 a. Manager shall have the exclusive authority and responsibility for the management of the Hotel on behalf of and subject to the
control of Franchisee with respect to and in accordance with the terms and conditions of the Franchise Agreement. The general manager of the Hotel shall devote his or her full time and attention to the management and operation of the Hotel and shall
have successfully completed Franchisor’s management training program as required under the Franchise Agreement; 
 b. The Hotel will be
operated in strict compliance with the requirements of the Franchise Agreement, and Manager will observe fully and be bound by all terms, conditions and restrictions regarding the management and operation of the Hotel set forth in the Franchise
Agreement, including those related to Confidential Information and the Proprietary Marks, as if and as though Manager had executed the Franchise Agreement as “Franchisee,” provided that Manager obtains no rights under the terms of the
Franchise Agreement except as specifically set forth herein. Manager shall comply with all applicable laws, rules, and regulations, and shall obtain in a timely manner all permits, certificates, and licenses necessary for the full and proper
operation of the Hotel; 
 c. Franchisor may enforce directly against Manager all terms and conditions in the Franchise Agreement regarding
Intellectual Property during and subsequent to Manager’s tenure as operator of the Hotel; 
 d. Any default under the terms and
conditions of the Franchise Agreement caused wholly or partially by Manager shall constitute a default under the terms and conditions of the Management Agreement, for which Franchisee shall have the right to terminate the Management Agreement;

 e. Franchisee and Manager shall not modify or amend the Management Agreement in such a way as to create a conflict or other inconsistency
with the terms and conditions of the Franchise Agreement or this Manager Acknowledgment; 
 f. Except in extraordinary circumstances, such as
theft or fraud on the part of Manager or a default by Franchisee under the Franchise Agreement caused by Manager for which Franchisee needs to promptly remove Manager from the Hotel, the Management Agreement shall not be terminated or permitted to
expire without at least thirty (30) days’ prior written notice to Franchisor; and 
 g. Franchisor shall have the right to
communicate directly with Manager and the managers at the Hotel regarding day-to-day operations of the Hotel and such communications shall be deemed made to Franchisee because Manager and the managers at the Hotel are acting on behalf of Franchisee
and Manager as their agents and Franchisor shall have the right to rely on the instructions of such managers as to matters relating to the operation and promotion of the Hotel. 
 4. Existence and Power. Manager and Franchisee each represents and warrants with respect to itself that (i) it is a legal entity duly formed,
validly existing, and in good standing under the laws of the jurisdiction of its formation, (ii) it has the ability to perform its obligations under this Manager Acknowledgment and under the Management Agreement, and (iii) it has all
necessary power and authority to execute and deliver this Manager Acknowledgment. 
  

 2 

 5. Authorization; Contravention. 
 a. Manager and Franchisee each represents and warrants with respect to itself that the execution and delivery of this Manager Acknowledgment and the
performance by Manager and Franchisee of its respective obligations hereunder and under the Management Agreement: (i) have been duly authorized by all necessary action; (ii) do not require the consent of any third parties (including
lenders) except for such consents as have been properly obtained; and (iii) do not and will not contravene, violate, result in a breach of, or constitute a default under (a) its certificate of formation, operating agreement, articles of
incorporation, by-laws, or other governing documents, (b) any regulation of any governmental body or any decision, ruling, order, or award by which each may be bound or affected, or (c) any agreement, indenture or other instrument to which
each is a party; and 
 b. Manager represents and warrants to Franchisor that neither Manager (including, without limitation, any and all of
its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person (as defined in the Franchise Agreement). Neither Manager nor any affiliate of Manager is directly or
indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Manager nor any affiliate of Manager is acting on behalf of a government of any country that is subject to such an
embargo. Manager further represents and warrants that it is in compliance with any applicable anti-money laundering law, including, without limitation, the USA Patriot Act. Manager agrees that it will notify Franchisor in writing immediately upon
the occurrence of any event which would render the foregoing representations and warranties of this Section 5.b. incorrect. 
 6.
Controlling Agreement. If there are conflicts between any provision(s) of the Franchise Agreement and this Manager Acknowledgment on the one hand and the Management Agreement on the other hand, the provision(s) of the Franchise Agreement and
this Manager Acknowledgment shall control. 
 7. No Release. This Manager Acknowledgment shall not release or discharge Franchisee
from any liability or obligation under the Franchise Agreement, and Franchisee shall remain liable and responsible for the full performance and observance of all of the provisions, covenants, and conditions set forth in the Franchise Agreement.

 8. Limited Consent. Franchisor’s consent to Manager operating the Hotel is personal to Manager, and this Manager
Acknowledgment is not assignable by Franchisee or Manager. If there is a change in control of Manager or if Manager becomes, is acquired by, comes under the control of, or merges with or into a Competitor, or if there is a material adverse change to
the financial status or operational capacity of Manager, Franchisee shall promptly notify Franchisor of any such change and Manager shall be subject to approval under the Franchise Agreement as a new operator of the Hotel. 
 9. Defined Terms. Unless specifically defined herein, all capitalized terms used in this Manager Acknowledgment shall have the same meanings set
forth in the Franchise Agreement. 
 10. Counterparts. This Manager Acknowledgment may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed signature page to this Manager Acknowledgment by facsimile transmission shall be effective as delivery
of a manually signed counterpart of this Manager Acknowledgment. 
  

 3 

 11. Governing Law. This Manager Acknowledgment shall be construed in accordance with the laws of
the State of Maryland without regard to the conflict of laws principles thereof, and contains the entire agreement of the parties hereto. Manager hereby submits itself to the non-exclusive jurisdiction of the courts of the State of Maryland, United
States of America, in any suit, action, or proceeding arising, directly or indirectly, out of or relating to this Manager Acknowledgment; and so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative.

 12. Manager’s Address. Manager’s mailing address is 4290 New Town Avenue, Williamsburg, VA 23188. Manager agrees to
provide written notice to both Franchisee and Franchisor if there is any change in Manager’s mailing address. 
 13. IN ANY LITIGATION
BETWEEN THE PARTIES FOUNDED UPON OR ARISING FROM THIS MANAGER ACKNOWLEDGMENT OR THE FRANCHISE AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A
JURY. 
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Manager Acknowledgment, under seal, as of the date
first above written. 
  

									
		 		 	FRANCHISOR:
			
	ATTEST:	 		 	MARRIOTT INTERNATIONAL, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	FRANCHISEE:
			
	ATTEST:	 		 	APPLE EIGHT HOSPITALITY MANAGEMENT, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	(Assistant) Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	MANAGER:
			
	WITNESS:	 		 	NEWPORT CHESTER, LLC
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Witness	 		 	Name:	 		 	
		 		 	Title:	 		 	

  

 4 

 ELECTRONIC SYSTEMS LICENSE AGREEMENT 
 This Electronic Systems License Agreement (this “License Agreement”) is made and entered into effective as of the
     day of                 , 2007 (“Effective Date”), between Marriott International, Inc., a Delaware corporation
(“Franchisor”), and Apple Eight Hospitality Management, Inc., a Virginia corporation (“Franchisee”). 
 WITNESSETH:

 WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement dated as of the date hereof (the “Franchise
Agreement”) pursuant to which Franchisee will establish and operate the Hotel under Franchisor’s System at the location specified in the Franchise Agreement; and 
 WHEREAS, pursuant to the terms of the Franchise Agreement, Franchisee is required to use certain Electronic Systems in connection with, and as a
condition of operating the Hotel, and Franchisor desires to make available to Franchisee such Electronic Systems pursuant to the terms and conditions of this License Agreement. 
 NOW, THEREFORE, in consideration of the premises and the undertakings and commitments of each party to the other party set forth herein, the parties
agree as follows: 
 1. Defined Terms. Capitalized terms not defined in this License Agreement shall have the meaning given to them in
the Franchise Agreement. 
 2. License Grant. Subject to the terms and conditions of this License Agreement, Franchisor hereby grants
to Franchisee a nonexclusive, non-transferable right and license to use the Electronic Systems made available by Franchisor. For each Electronic System, the license will commence on the installation date thereof, and shall extend until termination
of this License Agreement or such time as Franchisor ceases to make such Electronic System available in accordance with Franchisor’s operation of the System. 
 3. Ownership; Use Restrictions. All Electronic Systems shall at all times remain the sole property of Franchisor or any third-party vendors, as applicable. Franchisee shall at all times treat the Electronic
Systems as confidential. Franchisee shall not at any time, without Franchisor’s or such third party’s prior written consent (which may be withheld in Franchisor’s or such third party’s sole discretion), copy, modify, reverse
engineer, or otherwise duplicate the Electronic Systems or any component thereof, in whole or in part, or otherwise make the same available to any third party. Franchisee will use the Electronic Systems for the exclusive purpose of operating the
Hotel in accordance with the Franchise Agreement. Franchisee will take reasonable measures to ensure that only authorized employees of Franchisee at the Hotel have access to the Electronic Systems, and only for permitted purposes hereunder. Such
measures shall be subject to review and inspection by Franchisor. Franchisee will not attempt to modify, delete or circumvent any measures used by Franchisor to safeguard the Electronic Systems and the Intellectual Property therein. Franchisor
reserves the right to suspend Franchisee’s access to any Electronic System in order to protect Franchisor’s Intellectual Property or other systems, data or property of Franchisor or its vendors. 
 4. Third Party Vendors; Preferred Vendors. If any Electronic System is provided by a third party vendor, Franchisee will comply with the terms and
conditions provided by such vendors in connection therewith. Franchisee acknowledges and agrees that such third party vendors shall have the right to enforce such terms and conditions directly against Franchisee, and Franchisor shall have no 

 
liability in connection with Franchisee’s use of any third party Electronic System. Franchisor may also require Franchisee to execute license or similar
agreements directly with such third party vendors in order to obtain access to Electronic Systems that are required under Franchisor’s System. Franchisee shall be deemed to be in direct privity of contract with any third party provider of
Electronic Systems. From time to time Franchisor may designate a third party vendor of Electronic Systems as a “preferred vendor” based on Franchisor’s reasonable judgment that such third party Electronic System is suitable or
desirable for Franchisor’s System. Franchisee acknowledges and agrees that Franchisor neither endorses nor makes any representations or warranties in connection with any third party’s Electronic Systems, including any Electronic System
provided by a preferred vendor. 
 5. Support Services. Franchisor will use commercially reasonable efforts to maintain and support
the Electronic Systems (the “Services”) during the term of this License Agreement either by itself or through third party vendors as deemed appropriate by Franchisor. 
 6. Term and Termination. This License Agreement shall commence on the Effective Date and remain in force until termination of the Franchise
Agreement. 
 7. DISCLAIMERS. FRANCHISEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS LICENSE
AGREEMENT, FRANCHISOR PROVIDES THE ELECTRONIC SYSTEMS AND ANY ASSOCIATED SERVICES ON AN AS-IS BASIS, AND FRANCHISOR DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, CUSTOM OR USAGE IN THE TRADE, IN CONNECTION WITH FRANCHISEE’S USE OF THE ELECTRONIC SYSTEMS AND THE PROVISION OF THE SERVICES UNDER THIS LICENSE AGREEMENT. 
 8. Limitation on Liability. Franchisor shall not be liable for any damage arising out of or in connection with the use or failure of any
Electronic Systems or Services, including, but not limited to, corruption of data, and Franchisee hereby waives any right to or claim of any exemplary, incidental, indirect, special, consequential, or other similar damages (including without
limitation, loss of profits) in connection with the use or failure of Electronic Systems or Service, even if Franchisor has been advised of the possibility of same. Franchisor shall use reasonable efforts, to the extent legally permissible, to pass
through to Franchisee any warranties or other similar protections provided to Franchisor by Franchisor’s vendors with respect to Electronic Systems. 
 9. Indemnification. Franchisee agrees to indemnify, defend and hold harmless Franchisor and its respective officers, directors, employees, agents, successors, and assigns, from any losses, fines, liabilities,
damages and claims, and all related costs and expenses, including reasonable legal fees, disbursements and costs of investigation, litigation, settlement, judgment, interest and penalties (collectively, “Losses”) incurred by Franchisor in
connection with Franchisee’s use of the Electronic Systems or any failure by Franchisee to comply with the terms of this License Agreement. Such indemnification and hold harmless obligations shall be subject to and incorporated into Section
XXI.E. of the Franchise Agreement. 
 10. Software License Rights Upon Termination. Franchisee acknowledges and agrees that most
Software purchased by Franchisees through Franchisor’s procurement process is purchased in Franchisor’s name, and is not assignable to Franchisee upon termination of this License Agreement (“Non-Assignable Software”). As such,
upon termination of this License Agreement, Franchisee’s right to use such Non-Assignable Software shall automatically cease. With respect to software purchased 

  

 2 

 
through Franchisor’s procurement process that is assignable to Franchisee upon termination of this License Agreement (“Assignable Software”),
upon the request of Franchisee, Franchisor will provide reasonable assistance in helping to facilitate assignment of such software, including obtaining consent of the vendor where necessary. Upon termination of this License Agreement, Franchisee
shall delete both Assignable Software and Non-Assignable Software obtained through Franchisor’s procurement process and, with respect to Assignable Software, Franchisee may reinstall such software on the applicable computing equipment using
software copies obtained by Franchisee directly from the applicable vendor. 
 11. Miscellaneous. All notices and other communications
hereunder shall be in writing and shall be delivered in accordance with the terms of the Franchise Agreement. This License Agreement may not be modified or amended except by an agreement in writing signed by the parties hereto. Waiver of any
provision hereof in one or more instances shall not preclude enforcement thereof on future occasions. This License Agreement may not be assigned by Franchisee to any third party, except in connection with an assignment of the Franchise Agreement as
expressly permitted therein. This License Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the jurisdiction set forth in the Franchise Agreement. This License Agreement
constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and supersedes all other communications, whether written or oral. 
 IN WITNESS WHEREOF, the parties hereto have caused this License Agreement to be duly executed and delivered, under seal, as of the date first above written. 
  

									
		 		 	FRANCHISOR:
			
	ATTEST:	 		 	MARRIOTT INTERNATIONAL, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	
			
		 		 	FRANCHISEE:
			
	ATTEST:	 		 	APPLE EIGHT HOSPITALITY MANAGEMENT, INC.
					
	  
	 		 	By:	 	  
	 	(SEAL)
	(Assistant) Secretary	 		 	Name:	 		 	
		 		 	Title:	 		 	

  

 3 

 OWNER AGREEMENT 
 This AGREEMENT (“Agreement”) is entered into as of the      day of
                , 2007, by and among Marriott International, Inc., a Delaware corporation (“Franchisor”), Apple Eight Hospitality Management, Inc., a
Virginia corporation (“Franchisee”), and Apple Eight Hospitality Ownership, Inc., a Virginia corporation (“Owner”). 
 W I
T N E S S E T H: 
 WHEREAS, Franchisor and Franchisee are parties to that certain Franchise Agreement dated as of
                    , 2007 (as may be amended from time to time, the “Franchise Agreement”) relating to the Hotel (as defined in the
Franchise Agreement); and 
 WHEREAS, Owner represents and warrants that it holds fee title to the Hotel; and 
 WHEREAS, Owner and Franchisee have entered into a lease agreement, management agreement or operating agreement (the “Operating Agreement”)
whereby Franchisee will lease the Hotel from Owner and will operate the Hotel; and 
 WHEREAS, Owner, Franchisee and Franchisor desire that
the Hotel be operated as a SpringHill Suites by Marriott Hotel pursuant to the terms and conditions of the Franchise Agreement and this Agreement. 
 NOW, THEREFORE, the parties, in consideration of the premises and the undertakings and commitments of each party set forth herein, agree as follows: 
  

	1.	[Intentionally Omitted] 

  

	2.	Termination of the Franchise Agreement. 

 Franchisor
shall have the right to terminate this Agreement immediately upon termination of the Franchise Agreement by delivering written notice to Owner. 
  

	3.	Termination of the Operating Agreement. 

 Owner
shall notify Franchisor immediately of any pending or actual termination or expiration of the Operating Agreement that is to occur or occurred prior to expiration of the Franchise Agreement, and Franchisor shall have the right to terminate this
Agreement and the Franchise Agreement in connection with any such expiration or termination. If there is a dispute between Owner and Franchisee relating to the termination of the Operating Agreement, Franchisor shall have the right to permit
Franchisee to operate the Hotel pursuant to the Franchise Agreement so long as Franchisee has possession of the Hotel, and all of Franchisor’s rights under this Agreement shall be reserved pending resolution of such dispute whether by final
court or administrative order or negotiated settlement. 
  

	4.	Transfers Not Involving Competitors. 

 Section XV of
the Franchise Agreement shall apply hereunder to any Transfer of the Hotel, any ownership interest in the Hotel, this Agreement or the Operating Agreement, or of a direct or indirect 

 
ownership interest in Owner (including any controlling (greater than 15%) interest in any entity that controls Owner, but excluding interests of limited
partners, if any) as if Owner were a party thereto; any such Transfer(s) by Owner as described above shall be made only in strict compliance with said Section XV as the context requires. 
  

	5.	Transfers Involving a Competitor and Right of First Refusal. 

 A. No Transfers to a Competitor. If there is a proposed Transfer to a Competitor of the Hotel, any ownership interest in the Hotel, Owner’s ownership interest in this Agreement or in the Operating
Agreement, or an ownership interest in either Owner or an affiliate of Owner, and Owner or such affiliate of Owner (or such Competitor, as the case may be) wishes to accept such proposed Transfer, Owner shall give written notice thereof to
Franchisor, stating the name and full identity of the prospective purchaser or tenant, as the case may be, including the names and addresses of the owners or holders of any ownership interest of such prospective purchaser or tenant, the price or
rental and all terms and conditions of such proposed transaction, together with all other information with respect thereto that is requested by Franchisor and reasonably available to Owner; provided that Owner shall have no obligations under this
sentence with respect to the sale of one hundred percent (100%) of the ownership interests or assets of an affiliate of Owner that (i) is not a direct or indirect subsidiary or parent company of Owner and (ii) has no interest (direct
or indirect) in Owner, Franchisee, the Hotel or any other Marriott brand hotel. Within thirty (30) days after receipt by Franchisor of such notice from Owner, Franchisor, in its sole discretion, shall elect by notice to Owner one of the
immediately following four alternatives: 
 (1) Acquisition of Control of Hotel for Cash. If the proposed Transfer is a sale or lease
of the Hotel for cash consideration, Franchisor (or its designee) shall have the right to purchase or lease the Hotel at the same price or rental and upon the same terms and conditions (other than any terms relating to the Brand of the Hotel) as
those set forth in such offer from (or to) a Competitor. In such event, Owner and Franchisor (or its designee) shall promptly enter into an agreement for sale or lease at the price or rental and on terms consistent with such offer. 
 (2) Acquisition of Owner/Acquisition of Control of Hotel. If the proposed Transfer is a purchase or lease of all or a portion of the ownership
interests or the assets (which includes the Hotel) of Owner or an affiliate of Owner, or a merger with or into Owner or an affiliate of Owner, or the acquisition of Owner’s ownership interest in this Agreement or in the Operating Agreement, or
any sale or lease of the Hotel involving non-cash consideration, or other form of Transfer, Franchisor (or its designee) shall have the right to purchase or lease the Hotel at the purchase or lease price pursuant to terms consistent with such offer
(other than the non-cash nature of the consideration and any provision relating to the Brand of the Hotel) as agreed to by the parties. If the parties are unable to agree as to purchase or lease price and terms within fifteen (15) days of
Franchisor’s election, the purchase or lease price of the Hotel shall be determined as follows. Franchisor and Owner each shall, at its own expense and within thirty (30) days thereafter, obtain an appraisal of the fair market value of the
Hotel from a nationally recognized appraiser of Hotel properties comparable to such Hotel. In determining the fair market value, the appraisers shall be instructed to assume that the Hotel is not subject to a management agreement but is subject to
the existing Franchise Agreement. If, after receiving the appraisals, the parties agree on the fair market value of the Hotel, such agreed fair market value shall constitute the purchase or lease price hereunder. If, after receiving such appraisals,
the parties are not able within ten (10) days to agree on such fair market value, the purchase or lease price shall be determined by “baseball arbitration” in Washington, D.C. in accordance with the Arbitration Rules for the Real
Estate Industry of the American Arbitration Association then in effect (“AAA Rules”) as modified by this Agreement. The parties shall jointly select a third party to act as the sole arbitrator (the “Arbitrator”) to determine the
fair market value 

  

 2 

 
of the Hotel, and such Arbitrator shall be a person having at least ten (10) years’ recent professional experience as to the subject matter in
question and shall be qualified to act as an Arbitrator in accordance with the AAA Rules. If the parties do not agree on an Arbitrator with such qualifications within fifteen (15) days after the expiration of such ten (10) day period
referred to above, the Arbitrator shall be appointed by the American Arbitration Association in Washington, D.C. in accordance with the AAA Rules. 
 (i) The Arbitrator shall be instructed and obligated to decide, within thirty (30) days after appointment, whether the appraisal submitted by Franchisor or the appraisal submitted by Owner most accurately reflects the fair market value
of the Hotel based upon the appraisals submitted and such information as is normally relied upon by an appraiser of hotels and real estate. Each party agrees to fully cooperate and provide all information requested by the Arbitrator related to the
Arbitrator’s determination of fair market value hereunder. 
 (ii) The Arbitrator’s choice of appraisal shall be in writing, shall
constitute the purchase price hereunder, and shall be final, conclusive and binding on the parties as an “award” under the AAA Rules, and may be enforced by a court of competent jurisdiction. The expenses of the arbitration shall be borne
equally by the parties to the arbitration. Franchisor (or its designee) shall have the right, at any time within thirty (30) days of being notified in writing of the decision of the Arbitrator, to either (a) purchase the Hotel premises and
related property at the valuation determined by the Arbitrator, or (b) terminate this Agreement pursuant to clause (3) below. 
 (3) Termination of Franchise Agreement. To place Owner and Franchisee in default and to terminate this Agreement and the Franchise Agreement, in which event Owner and Franchisee shall be obligated, jointly and severally, to pay
Franchisor the applicable liquidated damages as set forth in Section XVIII.E of the Franchise Agreement. 
 (4) Consent. To consent to
such Transfer, which consent shall be on such terms and conditions as Franchisor may require, in its sole discretion. 
 This Section 5.A shall survive
termination of this Agreement if, prior to such termination, any event specified in Section 5 occurs, as a result of which Franchisor has exercised (or has the right to exercise) the right of first refusal provided herein. 
 B. Affiliates. Notwithstanding anything to the contrary set forth in Section 5.A, if a Competitor proposes to acquire all of the ownership
interests of an affiliate of Owner and the affiliate does not directly or indirectly own, lease or operate any hotels operating under a trade name or trademark owned by Franchisor or any of its affiliates, then in such event, with respect to such
Transfer, Franchisor shall not have any right of first refusal to purchase the Hotel or right to terminate this Agreement as provided above in Section 5.A. 
 C. Foreclosure. If the Transfer to a Competitor is by foreclosure, judicial or legal process, such as execution and levy, or by any other means, Franchisor (or its designee) shall have the right to purchase the
Hotel upon written notice to Owner. If the parties are unable to agree as to a purchase price and terms within thirty (30) days of Franchisor’s notice, the fair market value of the Hotel premises and related property shall be determined by
arbitration pursuant to the procedure set forth in Section 5.A(2) above. This provision shall survive the termination of this Agreement and the termination of the Franchise Agreement under Paragraph XVII.A thereof in connection with the
Competitor’s actions under Paragraph XV.E. of the Franchise Agreement or this Section 5.C. 
  

 3 

 D. Owner Becomes a Competitor. If Owner or any of its affiliates becomes a Competitor, Owner shall
so notify Franchisor providing the data required pursuant to Section 5.A., or if Franchisor otherwise determines that Owner or any of its affiliates has become a Competitor, Franchisor shall so notify Owner and assert that Franchisor has the
rights set forth above at Section 5.A. Provided Franchisor has received sufficient pricing and other data to allow an informed decision, Franchisor shall make its election thereunder within thirty (30) days of Franchisor’s receipt of
such notice from Owner or within thirty days of Franchisor’s giving notice to Owner in which Franchisor asserts that Owner or any of its affiliates has become a Competitor. 
 E. Right of First Refusal. In addition to the events specified in Section 5.A, Franchisor shall have the rights set forth at
Section 5.A. if any event occurs granting Franchisor a right of first refusal under Section XV of the Franchise Agreement. 
 F. Real
Estate Rights. Owner acknowledges that Franchisor’s rights under this Section 5 are real estate rights in the Hotel. Franchisor is entitled to file a record of such interest in and among the appropriate real estate records of the
jurisdiction in which the Hotel is located, and Owner shall cooperate as requested by Franchisor in such filing. Such recording shall indicate that Franchisor’s rights in real estate under Section 5 of this Agreement shall be subordinate
to the interests of bona fide lenders who are not Competitors or affiliates of Competitors and who record a security interest in the Hotel, provided that any such financing and security interests comply with the requirements of Section 7
hereof. Owner acknowledges and agrees that damages are not an adequate remedy in the event that Owner breaches its obligations under this Section 5, and Franchisor shall be entitled to injunctive relief to prevent or remedy such breach.

 G. Survival of Right of First Refusal. Except for termination of this Agreement pursuant to Section 5.A.(3) above, Owner
agrees that Franchisor’s rights under Section 5 shall survive early termination of this Agreement (as opposed to expiration of this Agreement as set forth in Section 12 hereof) and shall bind Owner, and its affiliates, if: 

(i) prior to or within six (6) months after termination of this Agreement, a Competitor offers (or receives an offer from Owner or an affiliate of
Owner) to purchase or lease the Hotel or to purchase an ownership interest in Owner or an affiliate of Owner, or merge with or into either Owner or such affiliate; and 
 (ii) A. the Franchise Agreement is terminated pursuant to Paragraphs XVII.A., XVII.B.1. or 4. thereof, or pursuant to Paragraph XVII.C. thereof, or
pursuant to Paragraph XVII.D. thereof based upon a violation of Section X.B thereof; or 
 B. the Franchise Agreement is terminated pursuant
to Paragraph XVII.A. thereof and an affiliate, principal or director of Owner obtains possession of the Hotel, or such affiliate, principal or director is the party filing the suit or seeking the execution or foreclosure referenced in Paragraph
XVII.A. of the Franchise Agreement. 
 In addition, Franchisor’s rights under Section 5 shall survive any purported early
termination of this Agreement (as opposed to expiration of this Agreement as set forth in Section 12 hereof) by Owner, and shall bind Owner and its affiliates, if, prior to or within six (6) months after such purported termination, a
Competitor offers (or receives an offer from Owner or an affiliate of Owner) to purchase or lease the Hotel, or to purchase an ownership interest in Owner or an affiliate of Owner, or merge with or into either Owner or such affiliate. 
  

 4 

	6.	[Intentionally Omitted] 

  

	7.	Financing of the Hotel. 

 Owner shall not incur or
replace any indebtedness that is secured by a lien on or mortgage of the Hotel or pledge of the stock, partnership, membership or other ownership interests in Owner or Franchisee (whether such indebtedness is incurred (i) individually on behalf
of the Hotel or (ii) on a pooled basis with other hotels or legal entities (a “Financed Pool”)) unless the following conditions are met: (1) the terms of such indebtedness are commercially reasonable, (2) commencing on the
third anniversary of the Opening Date, the debt coverage ratio is equal to or greater than 1.3, and (3) the lender is not a Competitor or an affiliate of a Competitor. The debt coverage ratio shall be the ratio of (a) cash available for
the payment of the annual debt service payments (interest and principal) based on the cash flow from the Hotel (or hotels, including the Hotel, that are part of the Financed Pool) (after deduction for any management fee and reserve required under
such management agreement or as a condition to such financing) for the twelve (12) months immediately preceding the written commitment for such indebtedness, to (b) the amount of such annual debt service payments. The chief financial
officer of Owner (or other officer performing the equivalent function) shall certify in writing to Franchisor that Owner has complied with the provisions of this Section 7 at the time that Owner shall incur or replace any indebtedness that is
secured by a lien on or mortgage of the Hotel or pledge of ownership interests in Owner. Owner shall give prompt written notice to Franchisor of the component hotels and legal entities in a Financed Pool prior to incurring such indebtedness.

  

	8.	Operation of the Hotel. 

 The Hotel shall be
operated as a SpringHill Suites by Marriott Hotel for the term hereof, and Owner shall cause Franchisee to operate the Hotel in accordance with the terms of the Franchise Agreement. Failure of the Owner to cause the Hotel to be so operated shall be
a material default by Owner hereunder giving Franchisor the right to terminate this Agreement and the Franchise Agreement. 
  

	9.	Owner’s Obligations under the Franchise Agreement. 

 A. Franchisee Default. If Franchisor declares Franchisee to be in default under the Franchise Agreement, Franchisor may enforce the Franchise Agreement directly against Owner as if Owner were the Franchisee under the Franchise
Agreement, and Owner and shall perform, or cause to be performed, the provisions of the Franchise Agreement including, without limitation, Section III on fees, Section VI on operation of the Hotel, Section XIV on insurance and Section XXI on
indemnification. 
 B. Termination of Franchise Agreement. If the Franchise Agreement is terminated and Franchisee fails to perform
any post-termination obligation under the Franchise Agreement, Franchisor may enforce the Franchise Agreement directly against Owner as if Owner were the Franchisee under the Franchise Agreement, and Owner shall perform, or cause to be performed,
all post-termination obligations of Franchisee under the Franchise Agreement, including, without limitation, Section XVIII on liquidated damages and on de-identifying the Hotel as part of the System and cessation of the use of the System and
Proprietary Marks, and Section XXI on indemnification. 
  

 5 

	10.	Provisions of the Operating Agreement. 

 The
Operating Agreement shall include the substance of the immediately following provisions. 
 (i) Franchisee shall have exclusive possession of
the Hotel and exclusive control of the day-to-day operations of the Hotel, subject to a management agreement that complies with the provisions of this Agreement. 
 (ii) The Hotel will be operated in full compliance with the provisions of the Franchise Agreement. The Franchise Agreement shall control in case of conflict with the Operating Agreement. 
 (iii) The provisions in the Operating Agreement that reflect this Section 10 and any other provisions in the Operating Agreement affecting or for
the benefit of Franchisor, shall not be amended or modified without Franchisor’s prior written consent. 
  

	11.	Surrender by Franchisee. 

 Upon the occurrence of
the events described herein for the replacement of Franchisee as possessor and operator of the Hotel, Franchisee shall surrender its rights and interest in the Franchise Agreement to Franchisor and peaceably turn over possession of the Hotel to
Owner without need for legal or judicial process. 
  

	12.	Term. 

 The term of this Agreement shall commence on
the date first set forth above and shall expire upon the expiration of the term of the Franchise Agreement, unless this Agreement is terminated prior thereto in accordance with this Agreement. If the term of the Franchise Agreement is renewed or
otherwise extended, the term of this Agreement shall automatically be extended to be coterminous with the extended term of the relevant franchise agreement. 
  

	13.	Survival. 

 Notwithstanding any provision to the
contrary contained herein, Sections 9, 16 and 17 of this Agreement shall survive and remain in full force and effect after termination or expiration of this Agreement for any reason, and Sections 5 and 14 shall survive the termination or expiration
of this Agreement for any reason to the extent provided in such Sections. 
  

	14.	Casualty. 

 If the Hotel is damaged or destroyed by
fire or other cause and such damage or destruction is substantial and material, the total cost of repairing and/or replacing the damaged portion of the Hotel to the same condition as existed previously would be forty-five percent (45%) or more
of the then total replacement cost of the Hotel, and such damage necessitates the closing of the Hotel for a period in excess of ninety (90) days, Owner shall have the right to terminate this Agreement and to cause the Franchise Agreement to be
terminated if it elects not to rebuild the Hotel upon written notice to Franchisor given within ninety (90) days of such closing of the Hotel; provided, however, if subsequent to such notice and prior to the date on which the term of the
Franchise Agreement would otherwise have ended pursuant to Section II of the Franchise Agreement if such notice of termination had not been given 

  

 6 

 
(“Term Expiration Date”), Owner or Franchisee, or any affiliated companies or any company controlled by a controlling stockholder of Owner or
Franchisee if Owner or Franchisee is a corporation, or any of their respective general partners, or any entity in which Owner or Franchisee or any of their respective general partners (the “Owner Entity” or “Franchisee Entity”)
has a fifteen percent (15%) or greater interest in or operates a hotel; vacation, timesharing, interval or fractional ownership facility; condominium; apartment; or other lodging product at the Approved Location (the “Other Lodging
Product”), which Other Lodging Product is not operated pursuant to a license or franchise from Franchisor or one of its affiliates, then in such event, Owner or Franchisee, depending upon whether an Owner Entity or Franchisee Entity has the
ownership interest in or is operating the Other Lodging Product, shall be obligated to promptly pay to Franchisor an amount equal to the liquidated damages set forth in Section XVIII.E. of the Franchise Agreement, and the time element for
calculating the amount of liquidated damages shall be the lesser of (a) thirty-six (36) months or (b) one-half ( 1/2) the number of months then remaining between (i) the date upon which the Other Lodging Product is first operated by or for the Owner Entity or Franchisee Entity and (ii) the Term Expiration Date. Owner’s and
Franchisee’s obligations set forth in this Section 14 shall survive termination of this Agreement pursuant to this Section 14. In the event that the Hotel does not close for ninety (90) days or the Owner does not elect to
terminate this Agreement in accordance with the provisions of this Section 14, the Hotel shall be promptly renovated and reopened within a reasonable time in accordance with the System and pursuant to plans and specifications approved by
Franchisor in accordance with Section VII of the Franchise Agreement. 
  

	15.	Condemnation. 

 Owner shall, at the earliest
possible time, give Franchisor notice of any proposed taking of the Hotel by eminent domain. If the Hotel is condemned, or such a substantial portion of the Hotel is condemned to render impractical the continued operation of the Hotel in accordance
with the System, this Agreement and the Franchise Agreement shall terminate upon notice by Franchisor to Owner and Franchisee, and Franchisor shall share in the condemnation award to the extent such award includes an allocation for its lost royalty
income. If a non-substantial condemnation shall occur, then in such event Owner shall promptly make whatever repairs and restoration may be necessary to make the Hotel conform substantially to its former condition, character, and appearance,
according to plans and specifications approved by Franchisor, and the resumption of normal operation of the Hotel shall not be unreasonably delayed. 
  

	16.	Notices. 

 A. Any and all notices, requests,
demands, statements and other communications required or permitted under this Agreement shall be in writing and shall be delivered personally or delivered by a nationally-recognized overnight commercial delivery service (such as Airborne Express or
Federal Express) or by certified mail, return receipt requested, to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other party: 
  

					
	If to Franchisor:	  	Marriott International, Inc.	  	
		  	Franchise Attorney	  	
		  	Law Department 52/923.25	  	
		  	10400 Fernwood Road	  	
		  	Bethesda, MD 20817	  	
			
	With a copy to:	  	Marriott International, Inc.	  	
		  	Vice President, Owner and Franchise Services	  	
		  	10400 Fernwood Road	  	
		  	Bethesda, MD 20817	  	

  

 7 

					
	If to Franchisee:	  	Apple Eight Hospitality Management, Inc.	  	
		  	815 East Main Street	  	
		  	Richmond, VA 23219	  	
		  	Attn: Krissy Gathright	  	
			
	If to Owner:	  	Apple Eight Hospitality Ownership, Inc.	  	
		  	815 East Main Street	  	
		  	Richmond, VA 23219	  	
		  	Attn: Krissy Gathright	  	

 Any notice shall be deemed to have been given at the date and time of: (A) receipt or first refusal of
delivery, if sent via certified mail or delivered by hand; or (B) one day after posting if sent via overnight commercial delivery service. 
 C. Notwithstanding Section 16.A. above, Franchisor may provide Franchisee and/or Owner with routine information, the Standards, the Manual and other System requirements and programs, such as the Quality Assurance Program, including any
modifications thereto, by regular mail or by e-mail, facsimile, the internet, an extranet, or other electronic means. 
  

	17.	Successors and Assigns. 

 This Agreement shall run
to the benefit of and be binding upon the parties hereto and their approved successors and assigns. Franchisor shall have the right to Transfer this Agreement to any person or legal entity without prior notice to, or consent of, Owner or Franchisee,
provided the transferee assumes Franchisor’s obligations to Owner, and Franchisee under this Agreement. Owner and Franchisee hereby acknowledge and agree that any such Transfer shall constitute a release and novation of Franchisor with respect
to this Agreement. Except as may be provided above, this Agreement shall not be assigned by Owner or Franchisee. 
  

	18.	Governing Law. 

 This Agreement is executed pursuant
to, and shall be construed under and governed exclusively by, the laws of the State of Maryland, United States of America, which laws shall prevail in the event of any conflict of law. Nothing in this Section 18 is intended, or shall be deemed,
to make the Maryland Franchise Registration and Disclosure Law apply to this Agreement, or the transactions or relationships contemplated hereby, if such law otherwise would not be applicable. 
  

	19.	Ownership Structure. 

 A. If Owner is neither a
natural person nor a publicly held corporation, the stock of which is traded on a nationally recognized stock exchange (with no individual holding 5% or more of the outstanding stock), Owner represents that its equity is directly and (if applicable)
indirectly owned as shown on Attachment A hereto. 
  

 8 

 B. Owner represents and warrants to Franchisor that neither Owner (including, without limitation, any and
all of its directors and officers), nor any of its affiliates or the funding sources for either is a Specially Designated National or Blocked Person. Neither Owner nor any affiliate is directly or indirectly owned or controlled by the government of
any country that is subject to an embargo by the United States government. Neither Owner nor any affiliate is acting on behalf of a government of any country that is subject to such an embargo. Owner further represents and warrants that it is in
compliance with any applicable anti-money laundering law, including, without limitation, the USA Patriot Act. Owner agrees that it will notify Franchisor in writing immediately upon the occurrence of any event which would render the foregoing
representations and warranties of this Section 19.B. incorrect. 
  

	20.	Entire Agreement; Counterparts. 

 A. This Agreement,
including the attachments hereto, and the agreements executed simultaneously herewith, or pursuant to, or in connection with, this Agreement (including, without limitation, the Franchise Agreement), contain the entire agreement between the parties
hereto as it relates to the Hotel as of the date hereof. The Franchise Agreement is attached hereto as Attachment B; Owner hereby acknowledges that it has read and fully understands Attachment B as it applies hereunder. 
 B. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes and all of which
shall constitute, collectively, one agreement. Delivery of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually signed counterpart of this Agreement. This is a fully integrated
agreement. No agreement of any kind relating to the matters covered by this Agreement shall be binding upon any party unless and until the same has been made in a written, non-electronic instrument that has been duly executed by the non-electronic
signature of all interested parties. This Agreement may not be amended or modified by conduct manifesting assent, or by electronic signature, and each party is hereby put on notice that any individual purporting to amend or modify this Agreement by
conduct manifesting assent or by electronic signature is not authorized to do so. 
  

	21.	Effects of Waivers. 

 No failure of a party to
exercise any power reserved to it by this Agreement, or to insist upon strict compliance by the other party with any obligation or condition hereunder, and no custom or practice of the parties at variance with the terms hereof, shall constitute a
waiver of such party’s right thereafter to demand exact compliance with any of the terms herein. Waiver by a party of any particular default by the other party shall not affect or impair such party’s rights with respect to any subsequent
default of the same, similar, or different nature; nor shall any delay, forbearance, or omission of a party to exercise any power or right arising out of any breach or default by the other party of any of the terms, provisions, or covenants hereof,
affect or impair such party’s right to exercise the same. 
  

	22.	Cost of Enforcement. 

 If for any reason it becomes
necessary for Franchisor or Owner to initiate any legal or equitable action to secure or protect its rights under this Agreement, the prevailing party shall be entitled to recover all costs incurred by it in successfully enforcing said rights,
including reasonable attorneys’ fees. 
  

	23.	Construction and Severability 

 A. Except as
expressly provided to the contrary herein, each section, part, term and/or provision of this Agreement shall be considered severable; and if, for any reason any section, part, term or 

  

 9 

 
provision herein is determined to be invalid and contrary to, or in conflict with, any existing or future law or regulation by a court or agency having valid
jurisdiction, such shall not impair the operation of, or have any other effect upon, such other sections, parts, terms and provisions of this Agreement as may remain otherwise intelligible, and the latter shall continue to be given full force and
effect and bind the parties hereto; and said invalid sections, parts, terms or provisions shall be deemed not to be a part of this Agreement. 
 B. Nothing in this Agreement is intended, or shall be deemed, to confer any rights or remedies under or by reason of this Agreement upon any person or legal entity other than Franchisor (and its affiliates), Franchisee or Owner and their
respective permitted successors and assigns. 
  

	24.	Captions. 

 All captions in the Agreement are
intended solely for the convenience of the parties, and none shall be deemed to affect the meaning or construction of any provision hereof. 
  

	25.	Owner Representations, Warranties and Covenants. 

 Owner represents, warrants and covenants that (i) it is a legal entity duly formed, validly existing, and in good standing under the laws of the jurisdiction of its formation, (ii) it and its affiliates have and will continue to
have throughout the term hereof the ability to perform their obligations under this Agreement, (iii) it has all necessary power and authority to execute and deliver this Agreement, (iv) it has read and fully understands Section XV of the
Franchise Agreement (attached hereto as Attachment B) as it applies hereunder and (v) during the term of the Franchise Agreement it will not enter into an Operating Agreement for the management of the Hotel that does not comply with the
provisions of the Franchise Agreement, unless otherwise approved by Franchisor. 
  

	26.	Capitalized Terms. 

 Unless the context requires
otherwise, capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. 
  

	27.	Waiver of Jury Trial. 

 IN ANY LITIGATION BETWEEN
THE PARTIES FOUNDED UPON OR ARISING FROM THIS AGREEMENT OR THE FRANCHISE AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL, AND THE PARTIES HEREBY STIPULATE THAT ANY SUCH TRIAL SHALL OCCUR WITHOUT A JURY. 
  

 10 

 IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this Owner
Agreement, under seal, as of the date first above mentioned. 
  

									
		 		 	FRANCHISOR:
			
		 		 	MARRIOTT INTERNATIONAL, INC.
					
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	
			
		 		 	FRANCHISEE:
			
		 		 	APPLE EIGHT HOSPITALITY MANAGEMENT, INC., a Virginia corporation
					
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	
			
		 		 	OWNER:
			
		 		 	APPLE EIGHT HOSPITALITY OWNERSHIP, INC., a Virginia corporation
					
	ATTEST:	 		 		 		 	
					
	  
	 		 	By:	 	  
	 	(SEAL)
	Assistant Secretary	 		 	Name:	 	  
	 	
		 		 	Title:	 	  
	 	

  

 11 

 ATTACHMENT A 
 Equity Interest(s) in Owner 
 (Name(s), address(es), and percentages of ownership) 
  

				
	Ownership of Apple Eight Hospitality Ownership, Inc.	 
	 Apple Eight Hospitality, Inc.
 c/o Apple REIT Companies, 814 East Main Street, Richmond, Virginia 23219
	  	100	%
	
	Ownership of Apple Eight Hospitality, Inc.	 
	 Apple REIT Eight, Inc.
 814 East Main Street, Richmond, Virginia 23219
	  	100	%
	
	Ownership of Apple REIT Eight, Inc.	 
	 Publicly-Held Company
	  	100	%

  

 12 

 ATTACHMENT B 
 FRANCHISE AGREEMENT 
  

 13EXHIBIT 10.21

 Exhibit 10.21 
 GREENSBORO, NC (SHS) 
 HOTEL LEASE AGREEMENT 
 EFFECTIVE NOVEMBER 9, 2007 
 BETWEEN

 APPLE EIGHT HOSPITALITY OWNERSHIP, INC., 
 A VIRGINIA CORPORATION 
 AS LESSOR 
 AND 
 APPLE EIGHT HOSPITALITY MANAGEMENT, INC., 
 A VIRGINIA CORPORATION 
 AS LESSEE

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
	ARTICLE 1 LEASED PROPERTY; OTHER DEFINITIONS	  	1
	      1.1	 	Leased Property	  	1
	      1.2.	 	Definitions.	  	2
	ARTICLE 2 TERM; TERMINATION	  	14
	      2.1.	 	Term	  	14
	      2.2.	 	Lessor’s Option to Terminate Lease	  	15
	      2.3.	 	Transition Procedures	  	15
	      2.4.	 	Holding Over	  	17
	ARTICLE 3 RENT; RENT ADJUSTMENTS	  	18
	      3.1.	 	Rent	  	18
	      3.2.	 	Confirmation of Percentage Rent	  	21
	      3.3.	 	Additional Charges	  	21
	      3.4.	 	Net Lease; No Termination, Abatement, Etc.	  	22
	      3.5.	 	Material Changes in Economic Climate	  	23
	      3.6.	 	Rent Adjustment: Basic Assumptions Incorrect	  	24
	ARTICLE 4 ANNUAL BUDGETS; BOOKS AND RECORDS	  	25
	      4.1.	 	Annual Budget	  	25
	      4.2.	 	Books and Records	  	25
	ARTICLE 5 IMPOSITIONS; HOTEL COSTS	  	26
	      5.1.	 	Payment of Impositions	  	26
	      5.2.	 	Notice of Impositions	  	27
	      5.3.	 	Adjustment of Impositions	  	27
	      5.4.	 	Utility Charges	  	27
	      5.5.	 	Insurance Premiums	  	27
	      5.6.	 	Franchise Fees	  	27
	      5.7.	 	Ground Rent	  	27
	ARTICLE 6 LEASED PROPERTY; LESSEE’S PERSONAL PROPERTY	  	27
	      6.1.	 	Ownership of the Leased Property	  	27
	      6.2.	 	Lessee’s Personal Property	  	27
	      6.3.	 	Lessor’s Lien	  	28
	      6.4.	 	Lessor’s Option to Purchase Assets of Lessee	  	28
	ARTICLE 7 CONDITION AND USE OF LEASED PROPERTY	  	29
	      7.1.	 	Condition of the Leased Property	  	29
	      7.2.	 	Use of the Leased Property	  	29
	      7.3.	 	Lessor to Grant Easements, Etc.	  	30
	ARTICLE 8 LESSEE’S COMPLIANCE WITH LAW; ENVIRONMENTAL COVENANTS	  	30
	      8.1.	 	Compliance with Legal and Insurance Requirements, Etc.	  	30
	      8.2.	 	Legal Requirement Covenants	  	31
	      8.3.	 	Environmental Covenants	  	32
	ARTICLE 9 MAINTENANCE AND REPAIRS; ENCROACHMENTS AND RESTRICTIONS	  	34
	      9.1.	 	Maintenance and Repairs	  	34
	      9.2.	 	Encroachments, Restrictions, Etc.	  	35

  

 i 

					
	ARTICLE 10 ALTERATIONS AND IMPROVEMENTS; FF&E RESERVE	  	36
	    10.1.	  	Alterations	  	36
	    10.2.	  	Salvage	  	36
	    10.3.	  	Joint Use Agreements	  	36
	    10.4.	  	[Reserved]	  	36
	    10.5.	  	Furniture, Fixture and Equipment Allowance	  	36
	ARTICLE 11 COMPLIANCE WITH FRANCHISE	  	37
	    11.1.	  	Compliance with Franchise Agreement and Management Agreement	  	37
	ARTICLE 12 PERMITTED LIENS AND CONTESTS	  	37
	    12.1.	  	Liens	  	37
	    12.2.	  	Permitted Contests	  	38
	ARTICLE 13 INSURANCE REQUIREMENTS	  	39
	    13.1.	  	General Insurance Requirements	  	39
	    13.2.	  	Replacement Cost	  	40
	    13.3.	  	Waiver of Subrogation	  	40
	    13.4.	  	Form Satisfactory, Etc.	  	40
	    13.5.	  	Increase in Limits	  	41
	    13.6.	  	Blanket Policy	  	41
	    13.7.	  	No Separate Insurance	  	41
	    13.8.	  	Reports On Insurance Claims	  	42
	ARTICLE 14 CASUALTY INSURANCE PROCEEDS; RECONSTRUCTION	  	42
	    14.1.	  	Insurance Proceeds	  	42
	    14.2.	  	Reconstruction in the Event of Damage or Destruction Covered by Insurance	  	42
	    14.3.	  	Reconstruction in the Event of Damage or Destruction Not Covered by Insurance	  	43
	    14.4.	  	Lessee’s Property	  	44
	    14.5.	  	Abatement of Rent	  	44
	    14.6.	  	Damage Near End of Term	  	44
	    14.7.	  	Waiver	  	44
	ARTICLE 15 CONDEMNATION; AWARD ALLOCATION	  	44
	    15.1.	  	Definitions	  	44
	    15.2.	  	Parties’ Rights and Obligations	  	45
	    15.3.	  	Total Taking	  	45
	    15.4.	  	Allocation of Award	  	45
	    15.5.	  	Partial Taking	  	45
	    15.6.	  	Temporary Taking	  	45
	ARTICLE 16 DEFAULT BY LESSEE; LESSOR’S REMEDIES	  	46
	    16.1.	  	Events of Default	  	46
	    16.2.	  	Surrender	  	47
	    16.3.	  	Damages	  	48
	    16.4.	  	Waiver	  	49
	    16.5.	  	Application of Funds	  	49
	    16.6.	  	Lessor’s Right to Cure Lessee’s Default	  	49
	ARTICLE 17 DEFAULT BY LESSOR; LESSEE’S REMEDIES	  	49
	    17.1.	  	Breach by Lessor	  	49
	    17.2.	  	Lessee’s Right to Cure	  	50
	    17.3.	  	Provisions Relating to Purchase of the Leased Property by Lessee	  	50

  

 ii 

					
	ARTICLE 18 INDEMNIFICATION	  	51
	    18.1.	 	Indemnification	  	51
	ARTICLE 19 REIT REQUIREMENTS AND RESTRICTIONS	  	52
	    19.1.	 	Personal Property Limitation	  	52
	    19.2.	 	Sublease Rent Limitation	  	52
	    19.3.	 	Sublease Tenant Limitation	  	52
	    19.4.	 	Lessee Ownership Limitations	  	52
	    19.5.	 	Lessee Officer and Employee Limitation	  	52
	    19.6.	 	Payments to Affiliates of Lessee	  	53
	ARTICLE 20 SUBLETTING AND ASSIGNMENT	  	53
	    20.1.	 	Subletting and Assignment	  	53
	    20.2.	 	Attornment	  	53
	    20.3.	 	Conveyance by Lessor	  	54
	ARTICLE 21 QUIET ENJOYMENT; RISK OF LOSS	  	54
	    21.1.	 	Quiet Enjoyment	  	54
	    21.2.	 	Risk of Loss	  	54
	ARTICLE 22 LESSOR MORTGAGES; SUBORDINATION OF LEASE	  	54
	    22.1.	 	Lessor May Grant Liens	  	54
	    22.2.	 	Subordination of Lease	  	55
	ARTICLE 23 ESTOPPEL CERTIFICATES; FINANCIAL STATEMENTS; INSPECTION RIGHTS	  	55
	    23.1.	 	Estoppel Certificates; Financial Statements	  	55
	    23.2.	 	Lessor’s Right to Inspect	  	56
	ARTICLE 24 APPRAISERS	  	56
	    24.1.	 	Appraisers	  	56
	ARTICLE 25 ARBITRATION AND DISPUTE RESOLUTION PROCEDURES	  	57
	    25.1.	 	Arbitration	  	57
	    25.2.	 	Alternative Arbitration	  	57
	    25.3.	 	Arbitration Procedure	  	58
	ARTICLE 26 NOTICES	  	58
	    26.1.	 	Notices	  	58
	ARTICLE 27 MISCELLANEOUS	  	58
	    27.1.	 	No Waiver	  	58
	    27.2.	 	Remedies Cumulative	  	59
	    27.3.	 	Waiver of Trial by Jury	  	59
	    27.4.	 	Acceptance of Surrender	  	59
	    27.5.	 	No Merger of Title	  	59
	    27.6.	 	Waiver of Presentment, Etc.	  	59
	    27.7.	 	Action for Damages	  	59
	    27.8.	 	Lease Assumption in Bankruptcy Proceeding	  	59
	    27.9.	 	Enforceability	  	60
	    27.10.	 	Memorandum of Lease	  	60

 Exhibit A – Legal Description 
 Exhibit B – Space Leases 
 Schedule 2.1 – Commencement Dates 
 Schedule 3.1(a) – Base Rents 
 Schedule 3.1(b) – Suite Revenue
Breakpoint 
  

 iii 

 HOTEL LEASE AGREEMENT 
 THIS HOTEL LEASE AGREEMENT (hereinafter called “Lease”), effective as of the 9th day of November, 2007, by and between APPLE EIGHT HOSPITALITY OWNERSHIP, INC., a Virginia corporation (hereinafter called “Lessor”), and APPLE EIGHT
HOSPITALITY MANAGEMENT, INC., a Virginia corporation (hereinafter called “Lessee”), provides as follows: 
 AGREEMENT:

 Lessor, for and in consideration of the payment of rent by Lessee to Lessor, the covenants and agreements to be performed by
Lessee, and upon the terms and conditions hereinafter stated, does hereby rent and lease unto Lessee, and Lessee does hereby rent and lease from Lessor, the Leased Property. 
 ARTICLE 1 
 LEASED PROPERTY; OTHER DEFINITIONS 
 1.1. Leased Property. The Leased Property shall mean and is comprised of Lessor’s interest in the following: 
 (a) the land 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 for 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 Lessee) 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 

 LESS AND EXCEPT all portions of the foregoing that are leased under Space Leases and all right, title and
interest of Lessor under the Space Leases (including any rents, security deposits or collateral held by or owing to Lessor pursuant thereto). 
 THE LEASED
PROPERTY IS DEMISED IN ITS PRESENT CONDITION WITHOUT REPRESENTATION OR WARRANTY (EXPRESSED OR IMPLIED) BY LESSOR 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 AND OTHER MATTERS WHICH WOULD BE DISCLOSED BY AN INSPECTION OF THE LEASED PROPERTY OR BY AN ACCURATE SURVEY THEREOF. 
 1.2. Definitions. For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the
terms defined in this Article have the meanings assigned to them in this Article 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 “Articles,” “Sections” and other subdivisions are to the designated Articles, 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 Article, Section or other subdivision:

 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, ten percent (10%) or more of the outstanding capital stock, shares or equity interests of such Person, or (c) any officer, director, employee, partner, manager or
trustee of such Person or any Person controlling, controlled by or under common control with such Person or any Person that owns, beneficially, directly or indirectly, ten percent (10%) or more of the outstanding capital stock, shares or equity
interests of such Person (excluding trustees and Persons serving in similar capacities who are not otherwise an Affiliate of such Person). 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. 
 Annual Budget: As used in this Lease,
the term “Annual Budget” shall mean an operating and capital budget prepared by Lessee and delivered to Lessor in accordance with Section 4.1. 
 Annual Revenues Computation: As defined in Subsection 3.1(b). 
 Award: As defined in
Subsection 15.1(a). 
  

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 Base Rate: The rate of interest announced publicly by Citibank, N.A., in New York, New York, from
time to time, as such bank’s base rate. If no such rate is announced or if such rate becomes discontinued, then such other rate as Lessor may reasonably designate. 
 Base Rent: As defined in Subsection 3.1(a). 
 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. 
 CERCLA: The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
 Change of Control: The sale, conveyance, assignment, encumbering, pledging, hypothecation, granting a security interest in, granting of options with respect to, or other disposition of (directly or indirectly, voluntarily or
involuntarily, by operation of law or otherwise, and whether or not for consideration) of any class stock or other equity interests in a Person (other than among existing holders of interests in such Person on the Commencement Date and/or family
members of such holders and/or trusts for the benefit of any of the foregoing) that, upon a transfer of any portion thereof, will create in the transferee thereof, directly or indirectly, a majority of any class of stock or other equity interests of
such Person. 
 Claims: As defined in Section 12.2. 
 COBRA: As defined in Subsection 8.2(b). 
 Code: The Internal Revenue Code of 1986, as amended. 
 Commencement Date: As defined in Section 2.1. 

Competitive Set: As defined in the STR Reports. Lessor and Lessee shall work in good faith to determine any additions and deletions to the
Hotel’s Competitive Set, on or before November 15th of each year, with such changes to be applicable for the following Fiscal Year. In the event Lessor and Lessee cannot agree to the Hotel’s Competitive Set by November 15th of
any year, such unagreed items shall be determined by Smith Travel Research (or, if it refuses or is unable to do so, by arbitration pursuant to Section 25.2). The costs of resetting the Hotel’s Competitive Set shall be borne equally by the
parties. 
 Comparison Month: As defined in Subsection 3.1(d). 
 Condemnation, Condemnor: As defined in Section 15.1 
 Consolidated Financials: For any fiscal year or other accounting period for Lessee and its consolidated subsidiaries, if any, 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, 

  

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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 and audited by independent certified public accountants acceptable to Lessor in its sole discretion. 
 Consumer Price Index: The “U.S. City Average, All Items” Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the United States Department of Labor (Base: 1982-1984=100), or any successor index thereto. If the Consumer Price Index is hereafter converted to a different standard reference base or otherwise revised, any determination hereunder
that uses the Consumer Price Index shall be made with the use of such conversion factor, formula or table for converting the Consumer Price Index as may be published by the Bureau of Labor Statistics, or, if the Bureau shall no longer publish the
same, then with the use of such conversion factor, formula or table as may be published by Prentice Hall, Inc., or, failing such publication, by any other nationally recognized publisher of similar statistical information. 
 Date of Taking: As defined in Subsection 15.1(d). 
 Encumbrance: As defined in Section 22.1. 
 Environmental Audit: As defined in Subsection
8.3(b). 
 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 Lessor, Lessee, any Predecessor, the Leased Property or any property used therein and
arising out of: 
 (a) Failure of Lessee, Lessor, any Predecessor or the Leased Property to comply at any time with all Environmental Laws;

  

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 (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 Lessee, Lessor 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. 
 Fair Market Rental: The fair market
rental of the Leased Property means the rental which a willing tenant not compelled to rent would pay a willing landlord not compelled to lease for the use and occupancy of such Leased Property pursuant to the Lease for the term in question,
(a) assuming that Lessee is not in default thereunder and (b) determined in accordance with the appraisal procedures set forth in Article 24 or in such other manner as shall be mutually acceptable to Lessor and Lessee. 
 Fair Market Value: The fair market value of the Leased Property 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 Leased Property, (a) assuming the same is unencumbered by this Lease, (b) determined in accordance with the appraisal procedures set forth in Article 24 or in such other manner as shall
be mutually acceptable to Lessor and Lessee, (c) assuming that such seller must pay customary closing costs and title premiums, and (d) taking into account the positive or negative effect on the value of the Leased Property attributable to
the interest rate, amortization schedule, maturity date, prepayment penalty and other terms and conditions of any encumbrance that is assumed by the transferee. In addition, in determining the Fair Market Value with respect to damaged or destroyed
Leased Property such value shall be determined as if such Leased Property had not been so damaged or destroyed. 
 FIFRA: The Federal
Insecticide, Fungicide, and Rodenticide Act, as amended. 
 Fiscal Year: The twelve (12) month period from January 1 to
December 31, or any shorter period at the beginning or end of the Term. 
  

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 Fixtures: As defined in Section 1.1. 
 Force Majeure: An Unavoidable Occurrence, generally affecting travel and/or the hotel or lodging business in the market and/or submarket in which
the Hotel is located. 
 Franchise Agreement: Any franchise agreement or license agreement with a franchisor (such as SpringHill
Suites by Marriott) under which the Hotel is operated. 
 Furniture and Equipment: For purposes of this Lease, the terms
“furniture and equipment” shall mean collectively all furniture, furnishings, wall coverings, fixtures and hotel equipment and systems located at, or used in connection with, the Hotel, together with all replacements therefor and additions
thereto, including, without limitation, (i) all equipment and systems required for the operation of kitchens and bars, laundry and dry cleaning facilities, (ii) office equipment, (iii) material handling equipment, cleaning and
engineering equipment, (iv) telephone and computerized accounting systems, and (v) vehicles. 
 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 agency or political subdivision of any of the foregoing. 
 Gross Operating Expenses: The term “Gross Operating Expenses” shall include (i) all costs and expenses of operating the Hotel
included within the meaning of the term “Total Costs and Expenses” contained in the Uniform System and, (ii) without duplication, the following: all salaries and employee expense and payroll taxes (including salaries, wages, bonuses
and other compensation of all employees of the Hotel, and benefits including life, medical and disability insurance and retirement benefits), expenditures described in Section 9.1, operational supplies, utilities, insurance to be provided by
Lessee under the terms of this Lease, governmental fees and assessments, common area maintenance costs and other common area fees and assessments, food, beverages, laundry service expense, the cost of Inventories, license fees, advertising,
marketing, reservation systems and any and all other operating expenses as are reasonably necessary for the proper and efficient operation of the Hotel and the Leased Property incurred by Lessee in accordance with the provisions hereof (excluding,
however, (i) 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 paid over to federal, state or municipal governments, (ii) the cost of insurance to be provided under Article 13, (iii) expenditures by Lessor pursuant to Article 13 and (iv) payments on any Mortgage or other mortgage
or security instrument on the Hotel); all determined in accordance with generally accepted accounting principles. No part of Lessee’s central office overhead or general or administrative expense (as opposed to that of the Hotel), and no
operating expenses paid or payable by tenants under Space Leases, shall be deemed to be a part of Gross Operating Expenses, as herein provided. Reasonable out-of-pocket expenses of Lessee incurred for the account of or in connection with the Hotel
operations, including but not limited to postage, telephone charges and reasonable travel expenses of employees, officers and other representatives and consultants of Lessee and its Affiliates, shall be deemed to be a part of Gross Operating
Expenses and such Persons shall be afforded reasonable accommodations, food, beverages, laundry, valet and other such services by and at the Hotel without charge to such Persons or Lessee. 
  

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 Gross Operating Profit: For any Fiscal Year, the excess of Gross Revenues for such Fiscal Year
over Gross Operating Expenses for such Fiscal Year. 
 Gross Revenues: All revenues, receipts, and income of any kind derived directly
or indirectly by Lessee from or in connection with the Hotel (including rentals or other payments from tenants, lessees, licensees or concessionaires but not including their gross receipts and not including rentals or other payments under Space
Leases) whether on a cash basis or credit, paid or collected, determined in accordance with generally accepted accounting principles, excluding, however: (i) funds furnished by Lessor, (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) the amount of all credits, rebates or refunds to customers, guests or patrons, and all service charges, finance charges, interest and discounts attributable to charge accounts and credit cards, to the extent the same are paid
to Lessee by its customers, guests or patrons, or to the extent the same are paid for by Lessee to, or charged to Lessee by, credit card companies, (iv) gratuities or service charges actually paid to employees, (v) proceeds of insurance
and condemnation, (vi) proceeds from sales other than sales in the ordinary course of business, (vii) all loan proceeds from financing or refinancings of the Hotel or interests therein or components thereof, (viii) judgments and
awards, except any portion thereof arising from normal business operations of the Hotel, and (ix) 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 any other Environmental Law; 
 (b) Hazardous substances,
as defined in CERCLA or any other Environmental Law; 
 (c) Toxic substances, as defined in TSCA or any other Environmental Law; 

(d) Insecticides, fungicides, or rodenticides, as defined in FIFRA or any other Environmental Law; and 
 (e) Gasoline or any other petroleum product or byproduct, polychlorinated biphenyl, asbestos and urea formaldehyde. 
 Hotel: The hotel and/or other facility offering lodging and other services or amenities being operated or proposed to be operated on the Leased
Property. 
  

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 Hotel Market Decline: A period of six (6) consecutive calendar months during which there is
(i) a twenty percent (20%) decline in average hotel occupancy for the Hotel from the average hotel occupancy levels for same period during the prior calendar year and (ii) a twenty percent (20%) decline in average hotel occupancy
for the Hotel’s Competitive Set from the average hotel occupancy levels for the same period during the prior calendar year, as published in the applicable STR Reports. 
 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 Lessee 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 Lessee (including all interest and penalties thereon caused by
any failure in payment by Lessee), 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) Lessor’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 Lessee. Nothing contained in this definition of Impositions shall be construed to require Lessee to pay (1) any tax based on net income (whether denominated as a franchise or
capital stock or other tax) imposed on Lessor or any other Person, or (2) any net revenue tax of Lessor or any other Person, or (3) any tax imposed with respect to the sale, exchange or other disposition by Lessor of any Leased Property or
the proceeds thereof, or (4) any single business, gross receipts (other than a tax on any rent received by Lessor from Lessee), transaction, privilege or similar taxes as the same relate to or are imposed upon Lessor, except to the extent that
any tax, assessment, tax levy or charge that Lessee 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. 
 Indemnified Party: Either
of a Lessee Indemnified Party or a Lessor Indemnified Party. 
 Indemnifying Party: Any party obligated to indemnify an Indemnified
Party pursuant to Sections 8.3 or 18.1. 
 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, including without limitation linens, china, silver, glassware and other non-depreciable personal property, and including any property of the type described in Section 1221(1) of the Code.

  

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 Land: As defined in Section 1.1. 
 Lease: This Lease. 
 Leased
Improvements; Leased Property: Each as defined in Section 1.1. 
 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 Lessee or otherwise),
whether now in force or 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 Lessee (other than encumbrances created by Lessor without the consent of Lessee), 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. 
 Lessee: The
Lessee designated in this Lease and its respective permitted successors and assigns. 
 Lessee Indemnified Party: Lessee, any
Affiliate of Lessee, 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 member’s interest) in Lessee, the officers,
directors, stockholders, members, managers, employees, agents and representatives of Lessee, and the respective heirs, personal representatives, successors and assigns of any such officer, director, stockholder, member, manager, employee, agent or
representative. 
 Lessee’s Personal Property: As defined in Section 6.2. 
 Lessor: The Lessor designated in this Lease and its respective successors and assigns. 
 Lessor Indemnified Party: Lessor, any Affiliate of Lessor, 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 Lessor, the officers, directors, stockholders, members, managers, employees, agents and representatives of the general partner of
Lessor and any partner, agent, or representative of Lessor, and the respective heirs, personal representatives, successors and assigns of any such officer, director, stockholder, partner, member, manager, employee, agent or representative.

  

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 Licenses: As defined in Subsection 2.3(a). 
 Management Agreement: The agreement pursuant to which Manager operates the Hotel. 
 Manager: Newport Greensboro Management, LLC, or any successor manager that is retained by Lessee to operate the Hotel pursuant to this Lease and
the Franchise Agreement. 
 Minimum Price: The sum of (a) the equity in the Leased Property at the time of acquisition of the
Leased Property by Lessor, plus (b) other capital expenditures on the Leased Property by Lessor after the date hereof (less depreciation and amortization thereof) plus (c) the unpaid principal balance of all encumbrances against the Leased
Property at the time of purchase of the Leased Property by Lessee, less (x) all proceeds received by Lessor from any financing or refinancing of the Leased Property after the date hereof (after payment of any debt refinanced and net of any
costs and expenses incurred in connection with such financing or refinancing, including, without limitation, loan points, commitment fees and commissions and legal fees) and (y) the net amount (after deduction of all reasonable legal fees and
other costs and expenses, including without limitation expert witness fees, incurred by Lessor in connection with obtaining any such proceeds or award) of all insurance proceeds received by Lessor and awards received by Lessor from any partial
Taking of the Leased Property that are not applied to restoration. 
 Mortgage: As defined in Section 22.2. 
 National Economic Decline: A period of six (6) consecutive calendar months during which there occurs or continues a ten percent
(10%) decline in average hotel occupancy, from average hotel occupancy levels for the same period during the prior calendar year, for all open and operating hotels in the United States as determined from the applicable STR Reports or, if the
STR Reports are not longer published, other reputable national economic data regarding the hospitality industry. 
 Notice: As defined
in Article 26. 
 Officer’s Certificate: A certificate of Lessee reasonably acceptable to Lessor, signed by the chief financial
officer or another officer authorized so to sign by the board of directors or other governing body of Lessee, or bylaws or limited liability company agreement of Lessee, or any other Person whose power and authority to act has been authorized by
delegation in writing by any such officer. 
 Optional Termination Date: As defined in Section 2.2. 
 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. 
  

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 Payment Date: Any due date for the payment of any installment of Base Rent. 
 Percentage Rent: As defined in Subsection 3.1(b). 
 Person: Any Government, natural person, corporation, general or limited partnership, limited liability company, stock company or association, joint venture, association, company, trust, bank, trust company,
land trust, business trust, or other entity. 
 Personal Property Taxes: All personal property taxes imposed on the furniture,
furnishings or other items of personal property located on, and used in connection with, the operation of the Leased Improvements as a hotel (other than Inventory and other personal property owned by Lessee), together with all replacement,
modifications, alterations and additions thereto. 
 Predecessor: Any Person whose liabilities arising under any Environmental Law
have or may have been retained or assumed by Lessor or Lessee, either contractually or by operation of law, relating to the Leased Property. 
 Primary Intended Use: As defined in Subsection 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. 
 Regional Market Decline: A period of six (6) consecutive calendar months during which there is a twenty percent
(20%) decline in average hotel occupancy from hotel occupancy levels for the same period during the then prior calendar year, for all open and operating hotels in the Smith Travel Research Region in which the Hotel is located, as determined
from applicable STR Reports or, if the STR Reports are no longer published, other reputable regional economic data regarding the hospitality industry. 
 Rejectable Offer Price: An amount equal to the greater of (a) the Fair Market Value, determined as of the applicable purchase date, or (b) the Minimum Price. 
 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. 
  

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 Repositioning: As defined in Section 3.6. 
 SARA: The Superfund Amendments and Reauthorization Act of 1986, as amended. 
 Solvent: As to any Person, (a) the sum of the assets of such Person exceeds its liabilities and (b) such Person has sufficient capital
with which to conduct its business as presently conducted and as proposed to be conducted. 
 Space Leases: With respect to the Land
and Leased Improvements, all leases, licenses, occupancy agreements, or other agreements, demising space in, providing for the use or occupancy of, or otherwise similarly affecting or relating to the use or occupancy of, the Leased Improvements or
Land, including (without limitation) the leases described in Exhibit B attached hereto, together with all amendments, modifications, renewals and extensions thereof, and all guaranties by third parties of the obligations of the tenants
thereunder, and any successor leases for such space. Space Leases shall specifically exclude hotel room or suite rental to hotel guests or convention or meeting space rental, each conducted in the ordinary course of business in the operation of a
hotel. 
 State: The state or commonwealth in which the Hotel is located. 
 STR Reports: Reports compiled by Smith Travel Research, or its successor, which contain historical supply and demand, occupancy, and average rate
information for the Hotel and hotels with which it competes (or, in the event that Smith Travel Research discontinues providing such information, reports of similar nature compiled by an authority recognized nationally in the hospitality industry).

 Subsidiaries: Persons in which Lessee owns, directly or indirectly, more than fifty percent (50%) of the voting stock or
control, as applicable. 
 Suite Revenue Breakpoint: As defined in Subsection 3.1(b). 
 Suite Revenues: All revenues, receipts, and income of any kind derived directly or indirectly by Lessee from or in connection with (i) the
rental of guest rooms or suites, whether to individuals, groups or transients, at the Hotel and (ii) the Hotel’s meeting rooms, telephones, TV and movie rentals, check room, washroom, laundry, valet, vending machines, and other sources
(other than Space Leases), in each case, whether on a cash basis or credit, paid or collected, determined in accordance with generally accepted accounting principles, but, in each case, excluding the following: 
 (a) The amount of all credits, rebates or refunds to customers, guests or patrons, and all service charges, finance charges, interest and discounts
attributable to charge accounts and credit cards, to the extent the same are paid to Lessee by its customers, guests or patrons, or to the extent the same are paid for by Lessee to, or charged to Lessee by, credit card companies; 
  

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 (b) All sales taxes or any other taxes imposed on the rental of such guest rooms or suites or imposed in
connection with the Hotel’s meeting rooms, telephones, TV and movie rentals, check room, washroom, laundry, valet, vending machines, and other sources of revenue; 
 (c) Gratuities or service charges actually paid to employees; and 
 (d) Proceeds of business interruption
and other insurance. 
 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.

 Term: As defined in Section 2.1. 
 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. 
 Unavoidable Occurrence. The occurrence of strikes, lockouts, labor unrest,
gasoline and other energy shortages, widespread disruption of air, auto or other travel, inability to procure materials or services, power or other utility failure, acts of God (such as hurricanes, tornadoes, earthquakes, floods and mud slides),
governmental restrictions, war or other enemy or terrorist action, civil commotion, fire, casualty, condemnation or other similar causes, in each case, if such cause is beyond the reasonable control of Lessee; provided that (i) lack of funds
shall not be deemed a cause beyond the reasonable 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,
and (ii) any such occurrence is an extraordinary, as opposed to a routine or cyclical, material event that was not reasonably foreseeable when the then-applicable Annual Budget was prepared. 
 Uneconomic for its Primary Intended Use: A state or condition of the Hotel such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing body of Lessee, the Hotel 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 revenues, such that Lessee intends to, and shall, complete the cessation of operations from the Leased Hotel. 
  

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 Uniform System: The Uniform System of Accounts for Hotels (9th Revised Edition, 1996) as published
by the American Hotel and Lodging Association, with such later revisions as may be agreed to by both Lessor and Lessee. 
 Unsuitable for
its Primary Intended Use: A state or condition of the Hotel such that, in the good faith judgment of Lessee, reasonably exercised and evidenced by the resolution of the board of directors or other governing body of Lessee, due to casualty damage
or loss through Condemnation, the Hotel cannot function as an integrated hotel facility consistent with standards applicable to a well maintained and operated hotel. 
 WARN Act: As defined in Subsection 8.2(b). 
 Working Capital: Funds reasonably necessary for
the day-to-day operation of the Hotel’s business for a thirty (30) day period, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, operating bank accounts, payrolls, accounts payable,
accrued current liabilities, and funds required to maintain Inventories. 
 ARTICLE 2 
 TERM; TERMINATION 
 2.1. Term.

 (a) The term of the Lease (the “Term”) shall commence on the date specified in Schedule 2.1 (the “Commencement
Date”), and shall end on the tenth (10th) anniversary of the Commencement Date, unless sooner terminated in accordance with the provisions hereof or extended to an anniversary of the initial expiration date pursuant to this Article 2.

 (b) Lessee is granted the option to extend the Term of this Lease for a period of five (5) years (the “First Extension”),
provided that Lessee is not in default hereunder either at the time of deemed exercise of the option or at the end of the original Term, which option must be exercised by written notice to Lessor at least one hundred twenty (120) days prior to
the expiration of the original Term. The First Extension shall be upon the same terms, conditions and rentals as set forth herein for the original Term. 
 (c) Lessee is granted an option to extend the Term for a period commencing at the expiration of the First Extension and ending on November 8, 2027 (the “Second Extension”), provided that Lessee is not
in default hereunder either at the time of exercise of the option or at the end of the First Extension, which option must be exercised by written notice to Lessor at least one hundred twenty (120) days prior to the expiration of the First
Extension. If such option is exercised, Lessor and Lessee shall negotiate in good faith modifications to the Rent for the Second Extension to adjust such Rent to market rates for arms-length hotel REIT leases between unrelated parties for similar
hotel properties at that time. In the event Lessor and Lessee are unable to agree upon Rent terms for the Second Extension at least ninety (90) days prior to the expiration of the Term, the Rent terms for the Second Extension shall be
determined by a panel of three (3) persons who have generally recognized expertise in evaluating hotel REIT leases and who are not Affiliates 

  

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of Lessor or Lessee. Lessee and the Lessor each shall have the right to designate one panel member and the two (2) panel members so designated will
designate the third panel member. Rent terms approved by at least two (2) of the three (3) panel members will be binding on Lessee and Lessor for the Second Extension, which shall be otherwise on the terms set forth herein. In determining
the market rates for the Second Extension, the panel members shall be instructed to consider hotel REIT lease terms with respect to similar hotel property types. The Second Extension shall be otherwise upon the same terms and conditions as set forth
herein for the original Term. 
 2.2. Lessor’s Option to Terminate Lease. In the event Lessor enters into a bona fide contract to
sell the Leased Property to a non-Affiliate, there is a Change of Control of Lessor, or the provisions of the Code are amended to permit Lessor to operate hotels or otherwise render the structure embodied by this Lease to be obsolete, Lessor may
terminate the Lease by giving not less than thirty (30) days’ prior Notice to Lessee of Lessor’s election to terminate the Lease effective upon, as appropriate, the closing under such contract, the date of such Change of Control, or
the effective date of such amendment to the Code (or any other specified date within 30 days after such date) (the “Optional Termination Date”). Effective upon the Optional Termination Date, 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 its leasehold estate under this Section 2.2, Lessor shall within 12
months of the Optional Termination Date either (a) pay to Lessee the fair market value of Lessee’s leasehold estate hereunder plus interest thereon at the Base Rate as of the Optional Termination Date or (b) offer to lease to Lessee
one or more substitute hotel facilities pursuant to one or more leases that would create for Lessee leasehold estates that have an aggregate fair market value of no less than the fair market value of the original leasehold estate, both such values
as determined as of the Optional Termination Date. Lessor also shall pay to Lessee, or reimburse Lessee for any assignment fees, termination fees or other liabilities arising under the Franchise Agreement or Management Agreement solely as a result
of the assignment or termination of such Franchise Agreement or Management Agreement in connection with the termination of this Lease under this Section 2.2. If Lessor elects and complies with the option described in (b) above, regardless
of whether Lessee enters into the lease(s) described therein, Lessor shall have no further obligations to Lessee with respect to compensation for the early termination of this Lease. In the event Lessor and Lessee 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 Article 24. 
 For the purposes of this Article, fair market value of the leasehold estate means, as applicable, an amount equal to the price that a willing buyer not compelled to buy would pay a willing seller not compelled to sell
for Lessee’s leasehold estate under this Lease or an offered replacement leasehold estate, taking into account that the leasehold estate is encumbered by the Franchise Agreement and an arm’s-length Management Agreement. 
 2.3. Transition Procedures. Upon the expiration or termination of the Term of this Lease, for whatever reason (other than a purchase of the Leased
Property by Lessee), Lessor and Lessee shall do the following (and the provisions of this Section 2.3 shall survive the expiration or termination of this Lease until they have been fully performed) and, in general, shall cooperate in good faith
to effect an orderly transition of the management and/or lease of the Hotel: 
 (a) Transfer of Licenses. Lessee shall use reasonable
efforts (i) to transfer to Lessor or Lessor’s nominee all 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 Hotel (collectively, “Licenses”), or (ii) if such transfer is prohibited by law or Lessor otherwise elects, to cooperate with Lessor or Lessor’s nominee in connection with the processing by Lessor or
Lessor’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 Lessor or Lessor’s nominee. 
  

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 (b) Leases and Concessions. Lessee shall assign to Lessor or Lessor’s nominee simultaneously
with the termination of this Lease, and the assignee shall assume, all leases and concession agreements in effect with respect to the Hotel then in Lessee’s name. 
 (c) Books and Records. All books and records for the Hotel kept by Lessee pursuant to Section 4.2 shall be delivered promptly to Lessor or Lessor’s nominee, simultaneously with the termination of this
Lease, but such books and records shall thereafter be available to Lessee at all reasonable times for inspection, audit, examination, and transcription for a period of one (1) year and Lessee may retain (on a confidential basis) copies or
computer records thereof. 
 (d) Receivables and Payables. Lessee shall be entitled to retain all cash, bank accounts and house banks,
and to collect all Gross Revenues and accounts receivable accrued through the termination date. Lessee shall be responsible for the payment of Rent, all Gross Operating Expenses and all other obligations of Lessee accrued under this Lease as of the
termination date, and Lessor or Lessor’s nominee shall be responsible for all Gross Operating Expenses of the Hotel accruing after the termination date. 
 (e) Final Accounting. Lessee shall, within forty five (45) days after the expiration or termination of the Term, prepare and deliver to Lessor a final accounting statement, dated as of the date of the
expiration or termination, along with a statement of any sums due from Lessee to Lessor pursuant hereto and payment of such funds. 
 (f)
Inventory. Lessee shall insure that the Leased Property, at the date of such termination or expiration, has Inventory of a substantially equivalent nature and amount as exists at the Leased Property on the Commencement Date, and Lessor or its
designee shall acquire such Inventory from Lessee for a sale price equal to the fair market value of such Inventory. 
 (g) Surrender.
Lessee will, upon the expiration or prior termination of the Term, vacate and surrender the Leased Property to Lessor in the condition in which the Leased Property was originally received from Lessor, 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 Lessee to maintain the Leased Property in good order and repair, as would a prudent owner, during the entire
Term of the Lease), or damage by casualty or Condemnation (subject to the obligations of Lessee to restore or repair as set forth in the Lease) 
  

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 The provisions of this Section 2.3 shall survive the expiration or termination of this Lease until
they have been fully performed. Nothing contained herein shall limit Lessor’s rights and remedies under this Lease if such termination occurs as the result of an Event of Default. 
 2.4. Holding Over. If Lessee 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 Lessee shall pay as rental each month 150% of the aggregate of (a) one-twelfth 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 Lessee under this Lease with respect to the Leased Property. During such period, Lessee 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 Lessor to the holding over of Lessee after the expiration or earlier termination of this Lease. 
  

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 ARTICLE 3 
 RENT; RENT ADJUSTMENTS 
 3.1. Rent. Lessee will pay to Lessor 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 Lessor’s address set forth in Article 26 hereof or at such other place or to such other Person as Lessor 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:
The annual sum specified in Schedule 3.1(a) (prorated for fiscal year 2007), as adjusted pursuant to Subsection 3.1(d) hereof, payable in advance in equal, consecutive monthly installments, on or before the tenth day of each calendar month of
the Term (“Base Rent”); provided, however, that the first monthly payment of Base Rent shall be payable during the second calendar month of the Term, and that the first and last monthly payments of Base Rent shall be pro rated as to any
partial month (subject to adjustment as provided in Sections 14.5, 15.3 and 15.5). 
 (b) Percentage Rent: For each fiscal year during
the Term commencing with the fiscal year in which the Commencement Date falls and ending with the fiscal year in which the Term (including any applicable extensions) ends, Lessee shall pay percentage rent (“Percentage Rent”). 

Percentage Rent for the applicable Fiscal Year shall be an amount equal to the applicable Annual Revenues Computation (as defined below) less an
amount equal to the Base Rent paid with respect to such Fiscal Year. 
 For the purpose of the foregoing calculation: 
 The annual revenues computation (“Annual Revenues Computation”) is equal to the amount obtained by adding, for the applicable Fiscal Year, an
amount equal to the sum of (i) seventeen percent (17%) of all Suite Revenues for the applicable Fiscal Year up to the applicable suite revenue breakpoint (the “Suite Revenue Breakpoint”) described in Schedule 3.1(b),
attached hereto, (prorated for the first and last Fiscal Year of the Term (including any applicable extensions)) and fifty-five percent (55%) of all Suite Revenues for the applicable Fiscal Year in excess of the applicable Suite Revenue
Breakpoint. At the beginning of each Fiscal Year, the Suite Revenue Breakpoints shall be adjusted by the same percentage that the Base Rent is adjusted pursuant to Subsection 3.1(d). 
 The Percentage Rent shall be payable as follows: 
  

	 	(i)	with respect to each calendar month of the Term, Lessee shall pay on or before the last day of the calendar month an amount equal to the excess, if any, of (A) seventy-five
percent (75%) of the amount of Lessee’s budgeted Percentage Rent payable with respect to the then current calendar month (which budgeted amount shall be equal to one-twelfth (1/12) of the annual estimate of Percentage Rent included in
the Annual Budget for the Fiscal Year in which the calendar month occurs) over (B) Base Rent for such calendar month; and 

  

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	 	(ii)	with respect to each Fiscal Year of the Term, Lessee shall pay on or before the 15th day following the end of the Fiscal Year an amount equal to the amount by which the aggregate
amount of all payments pursuant to Section 3.1(b)(i) in respect of Percentage Rent for such Fiscal Year shall be less than one hundred percent (100%) of the estimated Percentage Rent included in the Annual Budget for such Fiscal Year.

 In no event will the amount of Percentage Rent payable for any Fiscal Year or the result of any Annual Revenues Computation be less than
zero, and there shall be no reduction in the Base Rent regardless of the result of any Annual Revenues Computation. 
 (c) Officer’s
Certificates. On or before March 1 of each year, commencing with March 1, 2008, Lessee shall deliver to Lessor an Officer’s Certificate reasonably acceptable to Lessor setting forth the computation of the actual Percentage Rent
that accrued for 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 Lessee for such year, Lessee shall pay such excess to Lessor 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, Lessor, at its option, shall reimburse such amount to Lessee or credit such amount against subsequent months’ Base Rent, and with respect to Percentage Rent, to the extent
necessary, subsequent months’ Percentage Rent payments. Any such credit to Base Rent shall not be applied for purposes of calculating Percentage Rent payable for any subsequent month. 
 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 monthly payments for such Fiscal Year actually paid by Lessee as Percentage Rent, whether in favor of Lessor or Lessee, shall bear interest at the Overdue Rate, which interest shall
accrue from the due date of the last monthly payment for the Fiscal Year until the amount of such difference shall be paid or otherwise discharged. Any such interest payable to Lessor 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 Lessee’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 Lessee shall advise Lessor within sixty (60) days after such expiration or termination date of
Lessee’s best estimate at that time of the approximate amount of such adjustments, which estimate shall not be binding on Lessee or have any legal effect whatsoever. 
  

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 (d) CPI Adjustments to Base Rent and Percentage Rent. For each year of the Term beginning on or
after January 1, 2008, the Base Rent shall be adjusted from time to time as follows: 
 (1) If the most recently
published Consumer Price Index as of the last day of the last month (the “Comparison Month”) of any Fiscal Year is different than the average Consumer Price Index for the twelve (12) month period prior thereto, the Base Rent for the
next Fiscal Year shall be adjusted by the percentage change in the Consumer Price Index calculated as follows: 
 (A) The
difference between the Consumer Price Index for the most recent Comparison Month and the average Consumer Price Index for the twelve (12) month period prior thereto shall be divided by the average Consumer Price Index for the twenty four
(24) month period prior thereto. 
 (B) The Base Rent shall be multiplied by the lesser of (i) seven percent
(7%) or (ii) the quotient obtained in subparagraph (d)(1)(A) above. 
 (C) The product obtained in subparagraph
(d)(1)(B) above shall be added to the Base Rent. 
 Adjustments in the Base Rent shall be effective on the first day of the first calendar
month of the Fiscal Year to which such adjusted Base Rent applies. The Suite Revenue Breakpoint then included in the Annual Revenues Computation pursuant to Subsection 3.1(b) shall be similarly adjusted, effective with any such adjustment in the
Base Rent. 
 (2) If (i) a significant change is made in the number or nature (or both) of items used in determining the
Consumer Price Index, or (ii) 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 Washington, D.C. that is computed and published by an agency of the United States or a responsible financial periodical of recognized authority. 
 (e) Manager Fund-up Cure Payments. If and to the extent that Manager pays amounts to Lessee pursuant to the Management Agreement in order to avoid
termination of the Management Agreement by Lessee for Manager’s failure to meet certain performance hurdles described therein, such amounts shall be treated as additional Suite Revenues for purposes of the Percentage Rent calculation hereunder.

 (f) Allocation of Rent. The parties hereto acknowledge and agree that the Base Rent paid or payable by Lessee to Lessor hereunder
shall, to the extent relevant, be allocated between the personal property and real property constituting Leased Property hereunder in direct proportion to the then recognizable fair market value of such personal property and real property.
Percentage Rent in excess of Base Rent shall be allocated solely to real property. 
  

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 3.2. Confirmation of Percentage Rent. Lessee 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, that will accurately record all data necessary to compute Percentage Rent, and Lessee shall retain,
for at least four (4) years after the expiration of each Fiscal Year (and in any event until the reconciliation described in Subsection 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. Lessor, at its expense (except as provided hereinbelow), shall have the right from time to time, upon prior written notice to Lessee and Manager, 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 Subsection 3.1(d) and, in connection with such audits, to examine all Lessee’s records
(including supporting data 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; provided, however that Lessor may only
inspect or audit records in Manager’s possession subject to the terms of Lessee’s access thereto under the Management Agreement. If any such audit discloses a deficiency in the payment of Percentage Rent, and either Lessee agrees with the
result of such audit or the matter is otherwise determined or compromised, Lessee shall forthwith pay to Lessor 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 Lessee to Lessor, 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 Lessee, 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 Lessee for any Fiscal Year exceed those reported by
Lessee by more than three percent (3%), Lessee shall pay the cost of such audit and examination. Any proprietary information obtained by Lessor 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 Lessor may disclose such information to prospective lenders. The obligations of Lessee contained in this Section shall
survive the expiration or earlier termination of this Lease. 
 3.3. Additional Charges. In addition to the Base Rent and Percentage
Rent, (a) Lessee also will pay and discharge as and when due and payable all other amounts, liabilities, obligations and Impositions that Lessee assumes or agrees to pay under this Lease, and (b) in the event of any failure on the part of
Lessee to pay any of those items referred to in clause (a) of this Section 3.3, Lessee 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 Lessor 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. If any installment of Base Rent 

  

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and Percentage Rent or Additional Charges (but only as to those Additional Charges that are payable directly to Lessor) shall not be paid on its due date,
Lessee will pay Lessor 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 Lessee pays any Additional Charges to Lessor pursuant to any requirement of this Lease, Lessee shall be relieved of its obligation to pay such Additional Charges to the entity to which they would otherwise be due and Lessor shall pay
same from monies received from Lessee. 
 3.4. Net Lease; No Termination, Abatement, Etc. 
 (a) The Rent shall be paid absolutely net to Lessor, so that this Lease shall yield to Lessor the full amount of the installments of Base Rent, Percentage
Rent and Additional Charges throughout the Term, all as more fully set forth in Article 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 Lessor. 
 (b) 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 Lessor, Lessee, 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 Lessor (which shall not be unreasonably withheld or delayed) 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 Lessee 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, Lessee’s use of the Leased Property, or any portion thereof, or the interference with such use by any Person other than Lessor, (c) any claim which Lessee has or might have against
Lessor by reason of any default or breach of any warranty by Lessor under this Lease or any other agreement between Lessor and Lessee, or to which Lessor and Lessee are parties, (d) any bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding up or other proceedings affecting Lessor or any assignee or transferee of Lessor, or (e) for any other cause whether similar or dissimilar to any of the foregoing other than a discharge of Lessee
from any such obligations as a matter of law. Lessee 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 Lessee to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Lessee hereunder, except as otherwise specifically provided in this Lease.
The obligations of Lessee hereunder shall be separate and independent covenants and agreements and the Rent and all other sums payable by Lessee 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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 3.5. Material Changes in Economic Climate. 
 (a) In the event of the occurrence of a Force Majeure or a Hotel Market Decline, Lessor and Lessee shall, in good faith, negotiate possible modifications
to the Base Rent and Percentage Rent to reduce such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel properties in the Hotel’s Competitive Set, retroactively effective as of the first calendar month
of the Term following the last day of the six-month period during which such Hotel Market Decline has occurred with the excess of Base Rent and Percentage Rent actually paid for such period over the reduced Base Rent and Percentage Rent, plus
interest thereon at the Base Rate, to be credited to the next payments of Rent due and owing hereunder. If Lessor and Lessee are unable to agree that a Force Majeure or a Hotel Market Decline has occurred, within thirty (30) days after the date
of written certification from Lessee to Lessor that a Force Majeure and Hotel Market Decline has occurred (accompanied by reasonably detailed computations and documentation to support such assertion), the matter may be submitted by either party to
arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease). If, within ninety (90) days (during which period Lessee
shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease) following the date of such written certification from Lessee (or the date of a decision of an arbitrator if required hereunder to determine that a
Force Majeure and Hotel Market Decline has occurred), Lessor and Lessee are unable to agree upon the amount of reduction in Base Rent and Percentage Rent contemplated hereby, Lessee shall have the option to terminate this Lease upon not less than
thirty (30) days prior written notice to Lessor. 
 (b) In the event of the occurrence of a National Economic Decline or a Regional
Market Decline, Lessor and Lessee shall, in good faith, negotiate (i) possible modifications to the Base Rent and Percentage Rent to reduce such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel
properties in the Hotel’s Competitive Set, and (ii) possible modifications to the Base and Percentage Rent payable under each of the Other Leases for Other Hotels in the same Region (as defined in the STR Reports) as the Hotel to reduce
such Base Rent and Percentage Rent to recent market rates for hotel REIT leases for similar hotel properties in the Hotel’s Competitive Set, in each case retroactively effective as of the first calendar month of the Term following the last day
of the six month period during which such Regional Market Decline has occurred with the excess of Base Rent and Percentage Rent actually paid for such period over the reduced Base Rent and Percentage Rent, plus interest thereon at the Base Rent, to
be credited to the next payments of Rent due and owing hereunder. If, within thirty (30) days after the date of written certification from Lessee to Lessor that a National Economic Decline and Regional Market Decline has occurred (accompanied
by reasonably detailed computations and documentation to support such assertion), Lessor and Lessee are unable to agree that a National Economic Decline or Regional Market Decline has occurred, the matter may be submitted by either party to
arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease). If, within ninety (90) days (during which period Lessee
shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease) following the date of such initial written certification from Lessee (or the date of a decision of an arbitrator if required hereunder to determine
that a National Economic Decline and Regional Market Decline has occurred), Lessor and Lessee are unable to agree upon the amount of reduction in Base Rent and Percentage Rent contemplated hereby, Lessee shall have the option, upon not less than
sixty (60) days prior written notice to Lessor, to terminate all (but not less than all) of the Existing Leases of hotels in the same Region as the Hotel, including this Lease. 
  

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 3.6. Rent Adjustment: Basic Assumptions Incorrect. Except to the extent that doing so would cause
Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the
documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision
to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were
not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a “Repositioning”), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good
faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such
change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are
unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be
made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution
(during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target
deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days. 
  

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 ARTICLE 4 
 ANNUAL BUDGETS; BOOKS AND RECORDS 
 4.1. Annual Budget. Not later than thirty (30) days
prior to the commencement of each Fiscal Year, Lessee shall submit the Annual Budget to Lessor. The Annual Budget shall contain the following, to the extent included in the operating budgets and capital budgets provided to Lessee by Manager under
the management agreement for the Hotel: 
 (a) Lessee’s reasonable estimate of Gross Revenues (including room rates and Suite Revenues),
Gross Operating Expenses, and Gross Operating Profits for the forthcoming Fiscal Year itemized on schedules on a quarterly basis as approved by Lessor and Lessee, as same may be revised or replaced from time to time by Lessee and approved by Lessor,
together with the assumptions, in narrative form, forming the basis of such schedules. 
 (b) An estimate of the amounts to be dedicated to
the repair, replacement, or refurbishment of Furniture and Equipment. 
 (c) An estimate of any amounts Lessor will be required to provide
for required or desirable capital improvements to the Hotel or any of its components. 
 (d) A cash flow projection. 
 (e) A business plan, which shall describe business objectives and strategies for the forthcoming Fiscal Year, and shall include without limitation an
analysis of the market area in which the Hotel competes, a comparison of the Hotel and its business with competitive hotels, an analysis of categories of potential guests, and a description of sales and marketing activities designed to achieve and
implement identified objectives and strategies. 
 4.2. Books and Records. Lessee shall keep full and adequate books of account and
other records reflecting the results of operation of the Hotel on an accrual basis, all in accordance with generally accepted accounting principles and the obligations of Lessee under this Lease. The books of account and all other records relating
to or reflecting the operation of the Hotel shall be kept either at the Hotel or at Lessee’s offices in Richmond, Virginia or at Manager’s central offices, and shall be available to Lessor and its representatives and its auditors or
accountants, at all reasonable times, upon prior written notice to Lessee and Manager, for examination, audit, inspection, and transcription; provided, however that Lessor may only inspect or audit records in Manager’s possession subject to the
terms of Lessee’s access thereto under the Management Agreement. All of such books and records pertaining to the Hotel including, without limitation, books of account, guest records and front office records, at all times shall be the property
of Lessor and shall not be removed from the Hotel or Lessee’s offices or Manager’s central offices (but may be moved among any of the foregoing) by Lessee without Lessor approval. 
  

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 ARTICLE 5 
 IMPOSITIONS; HOTEL COSTS 
 5.1. Payment of Impositions. Subject to Section 12.2 (relating
to permitted contests), Lessee will pay, or cause to be paid, all Impositions (other than Real Estate Taxes and Personal Property Taxes, which shall be paid by Lessor) 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 Lessor copies of official receipts or other satisfactory proof evidencing such payments. Lessee’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), Lessee 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 Lessee’s right of contest pursuant to the provisions of Section 12.2) as the same respectively become due and before any fine, penalty, premium, further interest or cost may be added thereto. Lessor, at its expense,
shall, to the extent required or permitted by applicable law, prepare and file all tax returns in respect of Lessor’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 Lessee, 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 Lessee, the same shall be paid over to or retained by Lessee 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 Lessor. Any such funds retained by Lessor due to an Event of Default shall be applied as
provided in Article 16. Lessor and Lessee 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. Lessee shall file all Personal Property Tax returns in such jurisdictions where it is legally required so to file. Lessor, to the extent it possesses the same, and Lessee, to the extent it possesses the same, will provide the other party,
upon request, with cost and depreciation records necessary for filing returns for any property classified as personal property. Where Lessor is legally required to file Personal Property Tax returns, Lessee shall provide Lessor with copies of
assessment notices in sufficient time for Lessor to file a protest. Lessor may, upon Notice to Lessee, at Lessor’s option and at Lessor’s sole expense, protest, appeal, or institute such other proceedings (in its or Lessee’s name) as
Lessor may deem appropriate to effect a reduction of real estate or personal property assessments for those Impositions to be paid by Lessor, and Lessee, at Lessor’s expense as aforesaid, shall fully cooperate with Lessor in such protest,
appeal, or other action. Lessor hereby agrees to indemnify, defend, and hold harmless Lessee from and against any claims, obligations, liabilities and loss against or incurred by Lessee in connection with such cooperation. Billings for reimbursement
of Personal Property Taxes by Lessee to Lessor shall be accompanied by copies of a bill therefor and payments thereof which identify the personal property with respect to which such payments are made. Lessor, however, reserves the right to effect
any such protest, appeal or other action and, upon Notice to Lessee, shall control any such activity, which shall then go forward at Lessor’s sole expense. Upon such Notice, Lessee, at Lessor’s expense, shall cooperate fully with such
activities. 
  

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 5.2. Notice of Impositions. Lessor shall give prompt Notice to Lessee of all Impositions payable
by Lessee hereunder of which Lessor at any time has knowledge, provided that Lessor’s failure to give any such Notice shall in no way diminish Lessee’s obligations hereunder to pay such Impositions, but such failure shall obviate any
default hereunder for a reasonable time after Lessee receives Notice of any Imposition which it is obligated to pay during the first taxing period applicable thereto. 
 5.3. Adjustment of Impositions. Impositions imposed in respect of the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Lessor and Lessee, whether or not such Imposition
is imposed before or after such termination, and Lessee’s obligation to pay its prorated share thereof after termination shall survive such termination. 
 5.4. Utility Charges. Lessee will be solely responsible for obtaining and maintaining utility services to the Leased Property and 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. 
 5.5. Insurance Premiums. Lessee will pay or cause to be paid all
premiums for the insurance coverage’s required to be maintained by it under Article 13. 
 5.6. Franchise Fees. Lessee will
maintain in full force and effect, and pay or cause to be paid all fees and other charges payable pursuant to, any Franchise Agreement with respect to the Hotel. 
 5.7. Ground Rent. In the event that Lessor’s interest in the Land is pursuant to a Ground Lease or sublease, Lessor shall be solely responsible for the payment of any ground rent, building rent or subrent,
as the case may be, due with respect to the Leased Property. 
 ARTICLE 6 
 LEASED PROPERTY; LESSEE’S PERSONAL PROPERTY 
 6.1. Ownership of the Leased Property. Lessee acknowledges that the Leased Property is the property of Lessor and that Lessee has only the right to the possession and use of the Leased Property upon the terms
and conditions of this Lease. 
 6.2. Lessee’s Personal Property. Lessee will acquire and maintain throughout the Term such
Inventory as is required to operate the Leased Property in the manner contemplated by this Lease. Lessee 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 Lessee. Lessee, at the commencement of the Term, and from time to time thereafter, shall provide Lessor with an accurate list of all such items of Lessee’s personal
property (collectively, the “Lessee’s Personal Property”). Lessee may, subject to the first sentence of this Section 6.2 and the conditions set forth below, remove any of Lessee’s Personal 

  

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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 Lessee’s Personal
Property, other than Inventory, not removed by Lessee within ten (10) days following the expiration or earlier termination of the Term shall be considered abandoned by Lessee and may be appropriated, sold, destroyed or otherwise disposed of by
Lessor without first giving Notice thereof to Lessee, without any payment to Lessee and without any obligation to account therefor. Lessee will, at its expense, restore the Leased Property to the condition required by Subsection 2.3(g), including
repair of all damage to the Leased Property caused by the removal of Lessee’s Personal Property, whether effected by Lessee or Lessor. Upon the expiration or earlier termination of the Term, Lessor or its designee shall have the option to
purchase all Inventory on hand at the Leased Property at the time of such expiration or termination for a sale price equal to the fair market value of such Inventory. Lessee may make such financing arrangements, title retention agreements, leases or
other agreements with respect to Lessee’s Personal Property as it sees fit provided that Lessee first advises Lessor of any such arrangement and such arrangement expressly provides that in the event of Lessee’s default thereunder, Lessor
(or its designee) may assume Lessee’s obligations and rights under such arrangement. 
 6.3. Lessor’s Lien. To the fullest
extent permitted by applicable law, Lessor is granted a lien and security interest on all Lessee’s personal property now or hereinafter placed in or upon the Leased Property, and such lien and security interest shall remain attached to such
Lessee’s personal property until payment in full of all Rent and satisfaction of all of Lessee’s obligations hereunder; provided, however, Lessor shall subordinate its lien and security interest to that of any non-Affiliate of Lessee which
finances such Lessee’s personal property or any non-Affiliate conditional seller of such Lessee’s personal property, the terms and conditions of such subordination to be satisfactory to Lessor in the exercise of reasonable discretion.
Lessee shall, upon the request of Lessor, execute such financing statements or other documents or instruments reasonably requested by Lessor to perfect the lien and security interests herein granted. Lessee hereby authorizes Lessor to execute and
file financing statements signed only be a representative of Lessor covering the security interest of Lessor in Lessee’s personal property. 
 6.4. Lessor’s Option to Purchase Assets of Lessee. 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, Lessor shall have the option to purchase all (but not less than all) of the
assets of Lessee, 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 appraised in conformity with Article 24, 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, Lessor shall obtain no rights to any trade name or logo used in connection with the Franchise Agreement unless separate agreement as to such use is reached with the applicable franchisor.

  

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 ARTICLE 7 
 CONDITION AND USE OF LEASED PROPERTY 
 7.1. Condition of the Leased Property. Lessee
acknowledges receipt and delivery of possession of the Leased Property. Lessee 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. Lessee is leasing
the Leased Property “as is” in its present condition. Lessee waives any claim or action against Lessor in respect of the condition of the Leased Property. LESSOR 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, Lessor hereby assigns to Lessee all of Lessor’s rights to
proceed against any predecessor in title (other than any Affiliate of Lessee, which conveyed the Property to Lessor) for breaches of warranties or representations or for latent defects in the Leased Property. Lessor shall fully cooperate with Lessee
in the prosecution of any such claim, in Lessor’s or Lessee’s name, all at Lessee’s sole cost and expense. Lessee hereby agrees to indemnify, defend and hold harmless Lessor from and against any claims, obligations and liabilities
against or incurred by Lessor in connection with such cooperation. 
 7.2. Use of the Leased Property. 
 (a) Lessee covenants that it will proceed with all due diligence and will exercise reasonable efforts to obtain and to maintain all Licenses and other
approvals needed to use and operate the Leased Property and the Hotel under applicable local, state and federal law. 
 (b) Lessee shall use
or cause to be used the Leased Property only as a SpringHill Suites by Marriott hotel facility, and for such other uses as may be necessary or incidental to such use or such other use as otherwise approved by Lessor (the “Primary Intended
Use”). Lessee shall not use the Leased Property or any portion thereof for any other use without the prior written consent of Lessor, which consent may be granted, denied or conditioned in Lessor’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 Lessor is available and Lessee pays any premium increase), nor shall Lessee 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. Lessee 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
Lessee’s Personal Property. 
  

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 (c) Subject to the provisions of Articles 14, 15, 18 and 21, Lessee 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 and the Management Agreement, (3) not terminate or amend
the Franchise Agreement or the Management Agreement without the consent of Lessor (which shall not be unreasonably withheld or delayed), (4) maintain appropriate certifications and Licenses for such use and (5) seek to maximize the Gross
Revenues generated therefrom consistent with sound business practices. 
 (d) Lessee shall not commit or suffer to be committed any waste on
the Leased Property, or in the Hotel, nor shall Lessee cause or permit any nuisance thereon. 
 (e) Lessee shall neither suffer nor permit
the Leased Property or any portion thereof, or Lessee’s Personal Property, to be used in such a manner as (1) might reasonably tend to impair Lessor’s (or Lessee’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 Hotel on the Leased Property. 
 7.3. Lessor to Grant Easements, Etc. Lessor will, from time to time, so long as no Event of
Default has occurred and is continuing, at the request of Lessee and at Lessee’s cost and expense (but subject to the approval of Lessor, 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 Lessor of an Officer’s Certificate stating that such grant, release, dedication, transfer, petition or amendment does not interfere with the proper conduct of the business of Lessee on the Leased
Property and does not materially reduce the value of the Leased Property. 
 ARTICLE 8 
 LESSEE’S COMPLIANCE WITH LAW; ENVIRONMENTAL COVENANTS 
 8.1. Compliance with Legal and Insurance Requirements, Etc. Subject to Subsection 8.3(b) below and Section 12.2 (relating to permitted contests), Lessee, 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 (excluding any repair or restoration of any portion of the Leased Property required to be made
by Lessor pursuant to Subsection 9.1(b) below, which repair shall be made by Lessor), and (b) procure, maintain and comply with all appropriate Licenses and other authorizations required for any use of the Leased Property and Lessee’s
Personal Property then being made, and for the proper erection, installation, operation and maintenance of the Leased Property or any part thereof. 
  

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 8.2. Legal Requirement Covenants. 
 (a) Subject to Subsection 8.3(b) and Subsection 9.1(b) below, Lessee covenants and agrees that the Leased Property and Lessee’s Personal Property
shall not be used for any unlawful purpose, and that Lessee shall not permit or suffer to exist any unlawful use of the Leased Property by others. Lessee 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. Lessee further
covenants and agrees that Lessee’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 Lessee shall cause all sub-tenants, invitees or others within its control so to comply with all Legal Requirements). Lessee may, however, upon prior Notice to Lessor, contest the legality or
applicability of any such Legal Requirement or any licensure or certification decision if Lessee maintains such action in good faith, with due diligence, without prejudice to Lessor’s rights hereunder, and at Lessee’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 occurrence of any charge or liability of any kind, or the filing of any lien, against the Hotel or
Lessee’s leasehold interest therein and without subjecting Lessee or Lessor to any liability, civil or criminal, for failure so to comply therewith, Lessee 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, Lessee, on the prior written consent of Lessor, which consent shall not be unreasonably withheld or delayed, may nonetheless contest as aforesaid and delay as
aforesaid provided that such delay would not subject Lessor to criminal liability and Lessee both (a) furnishes to Lessor security reasonably satisfactory to Lessor against any loss or injury by reason of such contest or delay and
(b) prosecutes the contest with due diligence and in good faith. 
 (b) As between Lessor and Lessee, Lessee is solely responsible for
all liabilities or obligations of any kind with respect to employees at the Leased Property during the Term. Without limiting the generality of the foregoing sentence, Lessee is solely responsible for any required compliance with the Worker
Adjustment, Retraining and Notification Act of 1988 (the “WARN Act”) or any similar state law applicable to the Leased Property; any required compliance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”); and all alleged and actual obligations and claims arising from or relating to any employment agreement, collective bargaining agreement or employee benefit plans, any grievances, arbitration’s, or unfair labor practice
charges, and relating to compliance with any applicable state or federal labor employment law, including but not limited to all laws pertaining to discrimination, workers’ compensation, unemployment compensation, occupational safety and health,
unfair labor practices, family and medical leave, and wages, hours or employee benefits. Lessee agrees to indemnify and defend and hold harmless Lessor from and against any claims relating to any of the foregoing matters. Lessee further agrees to
reimburse Lessor for any and all losses, damages, costs, expenses, liabilities and obligations of any kind, including without limitation reasonable attorney’s fees and other legal costs and expenses, incurred by Lessor in connection with any of
the foregoing matters. 
  

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 (c) Notwithstanding the Lessee’s obligations under Section 8.1 to obtain and maintain all
permits and licenses required for the use of the Leased Property, and without limiting any obligations of Lessee hereunder, if (i) applicable law requires that the owner (rather than a lessee) of a hotel be the licensee under the required
liquor license for the Hotel or (ii) the former owner of the Hotel is holding the liquor license and continuing to exercise management and supervision of the liquor services at the Hotel pending transfer of the license to Lessor or Lessee, the
Lessee shall indemnify and hold Lessor harmless from any liability, damages or claims (a) arising in connection with liquor operations at the Hotel during such period of time following the Commencement Date, except to the extent caused by
Lessor’s gross negligence or willful misconduct or (b) made by or through the former owner with respect to liquor operations at the Hotel following the Commencement Date. 
 8.3. Environmental Covenants. Lessor and Lessee (in addition to, and not in diminution of, Lessee’s covenants and undertakings in Sections
8.1 and 8.2 hereof) covenant and agree as follows: 
 (a) At all times hereafter until the later of (i) such time as all liabilities,
duties or obligations of Lessee to Lessor under the Lease have been satisfied in full and (ii) such time as Lessee completely vacates the Leased Property and surrenders possession of the same to Lessor, Lessee shall fully comply with all
Environmental Laws applicable to the Leased Property and the operations thereon. Lessee agrees to give Lessor prompt Notice of (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 known by Lessee 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) Lessor hereby agrees to defend, indemnify and save harmless any and all Lessee Indemnified Parties from and
against any and all Environmental Liabilities other than (i) Environmental Liabilities resulting from conditions disclosed in any environmental audit obtained by Lessor and provided to Lessee prior to the execution of this Lease (the
“Environmental Audit”), and (ii) Environmental Liabilities which were caused by the acts or negligent failures to act of Lessee. 
 (c) Lessee hereby agrees to defend, indemnify and save harmless any and all Lessor Indemnified Parties from and against any and all Environmental Liabilities which were (i) resulting from conditions disclosed in the Environmental
Audit, and (ii) caused by the acts or negligent failures to act of Lessee. 
 (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 Subsection 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 

  

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not be unreasonably withheld or delayed; 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 or delayed. The Indemnifying Party shall not be liable
for any settlement of any such Proceeding made without its consent, which shall not be unreasonably withheld or delayed, but if settled with the consent of the Indemnifying Party, or if settled without its consent (if its consent shall be
unreasonably withheld or delayed), 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 and
loss incurred by such Indemnified Parties by reason of such settlement or judgment. 
 (e) At any time any Indemnified Party has reason to
believe circumstances exist which could reasonably result in an Environmental Liability, upon reasonable prior Notice to Lessee and Manager 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), Lessee’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 he 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 Article 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 Article 8 shall survive the termination of this Lease. 
 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 Lessee or Lessor, as the case may be, any claims or rights it may have against
any third party that would materially reduce the amount of damages otherwise incurred by such Indemnified Party. 
  

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 Notwithstanding anything to the contrary contained in this Lease, if Lessor 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 Lessor may assign its indemnification rights under this Section 8.3 (but not any other rights under this Section 8.3)
to any Person to whom Lessor 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: 
 (i) 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 Lessee or Lessor, then threatened with respect to the Leased Property; 
 (ii) Such indemnification rights shall be limited to Environmental Liabilities relating to or specifically affecting the Leased Property; and 
 (iii) Any assignment of such indemnification rights shall be limited to the immediate transferee of Lessor, and shall not extend to any
such transferee’s successors or assigns. 
 ARTICLE 9 
 MAINTENANCE AND REPAIRS; ENCROACHMENTS AND RESTRICTIONS 
 9.1. Maintenance
and Repairs. 
 (a) Lessee, at its sole expense, will keep the Leased Property, and all private roadways, sidewalks and curbs appurtenant
thereto that are under Lessee’s control, including windows and plate glass, mechanical, electrical and plumbing systems and equipment (including conduit and ductware), and non-load bearing interior walls, and parking lot surfaces, in good order
and repair, except (i) for ordinary wear and tear (whether or not the need for such repairs occurred as a result of Lessee’s use, any prior use, the elements or the age of the Leased Property, or any portion thereof) and (ii) to the
extent of damage caused by Lessor’s gross negligence or willful misconduct or that of its employees or agents, and, except as otherwise provided in Subsection 9.1(b), Article 14 or Article 15, 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, except as to the structural elements of the Leased Improvements. Lessee, however, shall be permitted to prosecute claims
against Lessor’s predecessors in title for breach of any representation or warranty or for any latent defects in the Leased Property to be maintained by Lessee unless Lessor 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. Lessee 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. 
  

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 (b) Notwithstanding Lessee’s obligations under Subsection 9.1(a) above, except to the extent of
damage caused by Lessee’s negligence or willful misconduct or that of its employees or agents, Lessor shall be required to bear the cost of maintaining any underground utilities and the structural elements of the Leased Improvements, including
exterior walls and the roof of the Hotel (but excluding windows and plate glass, mechanical, electrical and plumbing systems and equipment, including conduit and ductware, and non-load bearing walls, and parking lot surfaces). Except as set forth in
the preceding sentence and in Section 10.5, Lessor 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. Lessee
hereby waives, to the extent permitted by law, the right to make repairs at the expense of Lessor, pursuant to any law in effect at the time of the execution of this Lease or hereafter enacted, except following default by Lessor under this Lease, to
the extent of repairs (for which Lessor is obligated hereunder) required to be made in order for the Hotel, and Lessee’s use thereof, to comply with Lessee’s obligations under the Franchise Agreement and the Management Agreement. Lessor
shall have the right to give, record and post, as appropriate, notices of nonresponsibility under any mechanic’s lien laws now or hereafter existing. 
 (c) Nothing contained in this Lease and no action or inaction by Lessor shall be construed as (1) constituting the request of Lessor, 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
Lessee 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 Lessor 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 Lessor in the Leased Property, or any portion thereof. 
 9.2. Encroachments, Restrictions, Etc. Lessor represents and warrants that the Leased Improvements do not 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. Except to the extent that such representation and warranty is breached by Lessor, if any of the Leased Improvements, at any time hereafter, 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 Lessor or at the behest of any Person affected by any such encroachment, violation or impairment, Lessee 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, 

  

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whether the same shall affect Lessor or Lessee or (b) make such changes in the Leased Improvements, and take such other actions, as Lessee 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. Any such alteration shall be made in conformity with the applicable requirements of Article 10. Lessee’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 Lessor. 
 ARTICLE 10 
 ALTERATIONS AND IMPROVEMENTS; FF&E RESERVE 
 10.1. Alterations. After receiving approval of Lessor, which approval shall not be unreasonably withheld or delayed, Lessee shall have the right to make such additions, modifications or improvements to the Leased Property from time
to time as Lessee deems 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 Lessee to comply with the provisions of this Lease. The cost of such additions, modifications or improvements to the Leased Property
shall be paid by Lessee, and all such additions, modifications and improvements shall, without payment by Lessor 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 Lessor. 
 10.2. Salvage. All materials which are scrapped or removed in connection with the making of repairs
required by Articles 9 or 10 shall be or become the property of Lessor or Lessee depending on which party is paying for or providing the financing for such work. 
 10.3. Joint Use Agreements. If Lessee 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, the form of which has been approved in advance by Lessor, 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. 
 10.4. [Reserved]. 
 10.5.
Furniture, Fixture and Equipment Allowance. Lessor shall be obligated to pay Lessee, when and as required to meet the requirements of the Franchise Agreement and the Management Agreement for a reserve for periodic repair, replacement or
refurbishing of furniture, fixtures and equipment that constitute Leased Property, an amount equal up to five percent (5%) of Suite Revenues monthly. Upon written request by Lessee to Lessor stating the specific use to be 

  

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made and the reasonable approval thereof by Lessor (or as otherwise required by the franchisor under the Franchise Agreement or Manager under the Management
Agreement), such reserve funds (and additional funds of Lessor, if necessary) shall be made available by Lessor for use by Lessee for replacement or refurbishing of furniture, fixtures and equipment that constitute Leased Property in connection with
the Primary Intended Use; provided, however, that no amounts made available under this Article shall be used to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the
extent that doing so would cause Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. Lessor’s obligation shall be cumulative, but not compounded, and any amounts that have
accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Lessee shall have no interest in any accrued obligation of Lessor hereunder after the termination of this Lease. 
 ARTICLE 11 
 COMPLIANCE WITH
FRANCHISE 
 11.1. Compliance with Franchise Agreement and Management Agreement. To the extent any of the provisions of the
Franchise Agreement or Management Agreement impose a greater obligation on Lessee than the corresponding provisions of the Lease, then Lessee shall be obligated to comply with, and to take all reasonable actions necessary to prevent breaches or
defaults under, the provisions of the Franchise Agreement and the Management Agreement. It is the intent of the parties hereto that Lessee shall comply in every respect with the provisions of the Franchise Agreement and the Management Agreement so
as to avoid any material default thereunder during the term of this Lease. Lessee shall not terminate, extend or enter into any material modification of the Franchise Agreement or the Management Agreement without in each instance first obtaining
Lessor’s prior written consent, which shall not be unreasonably withheld. Lessor and Lessee agree to cooperate with each other in the event it becomes necessary to obtain a franchise extension or modification (or, at Lessor’s option, a new
franchise) for the Leased Property, and in any transfer of the Franchise Agreement or Management Agreement to Lessor or any designee of Lessor or any successor to Lessee upon the termination of this Lease. In the event of expiration or termination
of a Franchise Agreement or Management Agreement, for whatever reason, Lessor will have the right, in the exercise of its sole discretion, to approve any new Franchise Agreement or Management Agreement for the Hotel. 
 ARTICLE 12 
 PERMITTED LIENS
AND CONTESTS 
 12.1. Liens. Subject to the provisions of Section 12.2 relating to permitted contests, Lessee 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 included as exceptions in the title policy insuring Lessor’s interest in the Leased Property, (c) restrictions, liens and other encumbrances which are consented to
in writing by Lessor or any easements granted pursuant to the provisions of Section 7.3 of this Lease, (d) liens for those taxes upon Lessor or the Leased Property which Lessee is not required to pay hereunder, (e) subleases permitted
by Article 20 hereof, (f) liens for Impositions or for sums 

  

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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 12.2, (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 12.2 hereof, and (h) any liens which are the responsibility of Lessor pursuant
to the provisions of Article 22 of this Lease. 
 12.2. Permitted Contests. Lessee shall have the right to contest the amount or
validity of any Imposition to be paid by Lessee or any Legal Requirement or Insurance Requirement or any lien, attachment, levy, encumbrance, charge or claim (“Claims”) not otherwise permitted by Section 12.1, 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 Lessee’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 Lessee from its obligations hereunder and shall not cause the sale or risk the loss of any portion of the Leased Property, or any part
thereof, or cause Lessor or Lessee to be in default under any mortgage, deed of trust, security deed or other agreement encumbering the Leased Property or any interest therein. Upon the request of Lessor, Lessee shall either (a) provide a bond
or other assurance reasonably satisfactory to Lessor 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 Lessor, 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. Lessee shall furnish Lessor and any lender of Lessor with reasonable evidence of such deposit within five
(5) days of the same. Lessor agrees to join in any such proceedings if the same be required legally to prosecute such contest of the validity of such Claims; provided, however, that Lessor shall not thereby be subjected to any liability or loss
for the payment of any costs or expenses in connection with any proceedings brought by Lessee; and Lessee covenants to indemnify and save harmless Lessor from any such liabilities, losses, costs or expenses. Lessee shall be entitled to any refund of
any Claims and such charges and penalties or interest thereon which have been paid by Lessee or paid by Lessor and for which Lessor has been fully reimbursed. In the event that Lessee fails to pay any Claims when due or to provide the security
therefor as provided in this Section and diligently to prosecute any contest of the same, Lessor may, upon ten (10) days’ advance Notice to Lessee, and Lessee’s failure to correct the same within such ten (10) day period, pay
such charges together with any interest and penalties and the same shall be repayable by Lessee to Lessor as Additional Charges at the next Payment Date provided for in this Lease; provided, however, that should Lessor reasonably determine that the
giving of such Notice would risk loss to the Leased Property or cause damage to Lessor, then Lessor shall give such Notice as is practical under the circumstances. Lessor reserves the right to contest any of the Claims at its expense not pursued by
Lessee. Lessor and Lessee agree to cooperate in coordinating the contest of any Claims. 
  

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 ARTICLE 13 
 INSURANCE REQUIREMENTS 
 13.1. General Insurance Requirements. During the Term of this Lease,
Lessor and Lessee shall at all times keep the Leased Property insured with the kinds and amounts of insurance described below, or such other insurance coverage(s) as may be required by the Franchise Agreement. This insurance shall be written by
companies authorized to issue insurance in the State. The policies must name Lessor and/or Lessee, as applicable, as the insured or as an additional named insured, as the case may be. Losses shall be payable to Lessor or Lessee as provided in this
Lease. Any loss adjustment shall require the written consent of Lessor and Lessee, each acting reasonably and in good faith. Evidence of insurance shall be deposited with Lessor. The policies on the Leased Property, including the Leased
Improvements, Fixtures and Lessee’s Personal Property, shall include the following: 
 (a) Lessor shall obtain and maintain, at its own
expense: 
 (i) Building insurance on the “Special Form” (formerly “All Risk” form) (including earthquake
and flood in reasonable amounts as determined by Lessor) in an amount not less than 100% of the then full replacement cost thereof (as defined in Section 13.2) or such other amount which is acceptable to Lessor and Lessee, and personal property
insurance (on other than Lessee’s Personal Property) on the “Special Form” in the full amount of the replacement cost thereof; 
 (ii) Insurance for loss or damage (direct and indirect) from steam boilers, pressure vessels or similar apparatus, now or hereafter installed in the Hotel, in the minimum amount of $5,000,000 or in such greater
amounts as are then customary; and 
 (iii) Loss of income insurance on the “Special Form”, in the amount of one
year of Base Rent and Additional Charges (to the extent quantifiable) for the benefit of Lessor. 
 (b) Lessee shall obtain and maintain, at
its own expense: 
 (i) Personal property insurance on Lessee’s Personal Property on the “Special Form” in the
full amount of the replacement cost thereof; 
 (ii) Comprehensive 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 Lessor, 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 Lessor and Lessee; 
  

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 (iii) 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 Lessor; 
 (iv) Fidelity bonds with limits and deductibles as may be
reasonably requested by Lessor, covering Lessee’s employees in job classifications normally bonded under prudent hotel management practices in the United States or otherwise required by law; 
 (v) Worker’s compensation insurance coverage for all persons, if any, employed by Lessee on the Leased Premises, to the extent
necessary to protect Lessor and the Leased Property against Lessee’s worker’s compensation claims, such worker’s compensation insurance to be in accordance with the requirements of applicable local, state and federal law; 

(vi) Vehicle liability insurance for owned, non-owned, and hired vehicles, in the amount of $5,000,000; and 
 (vii) Such other insurance as Lessor may reasonably request for facilities such as the Leased Property and the operation thereof.

 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. Waiver of Subrogation. All insurance policies carried by Lessor or Lessee covering the Leased Property, the Fixtures, the Hotel or Lessee’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. 
 13.4. Form Satisfactory, Etc. 
 (a) All of the policies of insurance referred to in this Article 13 to
be maintained by Lessee shall be written in a form, with deductibles and by insurance companies satisfactory to Lessor. Lessee shall pay all of the premiums therefor, and deliver such policies or certificates thereof to Lessor 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 Lessee either to effect such insurance as herein called for or to pay the premiums
therefor, or to deliver such 

  

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policies or certificates thereof to Lessor at the times required, Lessor shall be entitled, but shall have no obligation, to effect such insurance and pay
the premiums therefor, and Lessee shall reimburse Lessor for any premium or premiums paid by Lessor for the coverages required of Lessee under this Article 13 upon written demand therefor, and Lessee’s failure to repay the same within thirty
(30) days after Notice of such failure from Lessor shall constitute an Event of Default within the meaning of Section 16.1. Each insurer mentioned in this Article 13 shall agree, by endorsement to the policy or policies issued by it, or by
independent instrument furnished to Lessor, that it will give to Lessor thirty (30) days’ written notice before the policy or policies in question shall be materially altered, allowed to expire or canceled. 
 (b) All of the policies of insurance referred to in this Article 13 to be maintained by Lessor shall be written in a form, with deductibles and by
insurance companies satisfactory to Lessee. Lessor shall pay all of the premiums therefor, and deliver such policies or certificates thereof to Lessee 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 Lessor either to effect such insurance as herein called for or to pay the premiums therefor, or to deliver such policies or certificates thereof to Lessee at the
times required, Lessee shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor, and Lessor shall reimburse Lessee for any premium or premiums paid by Lessee for the coverages required under this
Section upon written demand therefor. Each insurer mentioned in this Article 13 shall agree, by endorsement to the policy or policies issued by it, or by independent instrument furnished to Lessee, that it will give to Lessee thirty
(30) days’ written notice before the policy or policies in question shall be materially altered, allowed to expire or canceled. 
 13.5. Increase in Limits. If either Lessor or Lessee 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,
Lessor and Lessee 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 Article 13. 
 13.6. Blanket Policy. Notwithstanding anything to the contrary contained in this Article 13. Lessee
or Lessor may bring the insurance provided for herein within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Lessee (or Manager) or Lessor; provided, however, that the coverage afforded to Lessor and
Lessee 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 Article 13 are otherwise satisfied. 
 13.7. No Separate Insurance. Lessee shall not, on Lessee’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 Article 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 Lessor, are included therein as additional insured, and the
loss is payable under such additional separate insurance in the same manner as losses are payable under this Lease. Lessee shall immediately notify Lessor of any such separate insurance that Lessee has obtained or of the increase of any of the
amounts of the then existing insurance. 
  

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 13.8. Reports On Insurance Claims. Lessee shall promptly investigate and make a complete and
timely written report to the appropriate insurance company as to all accidents, claims for damage relating to the ownership, operation, and maintenance of the Hotel, any damage or destruction to the Hotel and the estimated cost of repair thereof and
shall prepare any and all reports required by any insurance company in connection therewith. All such reports shall be timely filed with the insurance company as required under the terms of the insurance policy involved, and a final copy of such
report shall be furnished to Lessor. Lessee shall be authorized to adjust, settle, or compromise any insurance loss, or to execute proofs of such loss, in the aggregate amount of $25,000 or less, with respect to any single casualty or other event.

 ARTICLE 14 
 CASUALTY INSURANCE PROCEEDS; RECONSTRUCTION 
 14.1. Insurance Proceeds. Subject to the provisions of
Section 14.4, all proceeds payable by reason of any loss or damage to the Leased Property, or any portion thereof, insured under any policy of insurance required by Article 13 of this Lease, shall be paid to Lessor and held in trust by Lessor
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 Lessor
from time to time for the reasonable costs of such reconstruction or repair upon satisfaction of reasonable terms and conditions specified by Lessor. Any excess proceeds of insurance (and accrued interest) remaining after the completion of the
restoration or reconstruction of the Leased Property, as hereinafter set forth, shall be paid to Lessee. If neither Lessor nor Lessee is required or elects to repair and restore, and the Lease is terminated without purchase by Lessee as described in
Section 14.2, all such insurance proceeds shall be retained by Lessor. All salvage resulting from any risk covered by insurance shall belong to Lessor. 
 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 Article 13 and the Hotel thereby is rendered Unsuitable for its Primary Intended Use, Lessee
shall, at Lessee’s option, either (1) restore the Hotel to substantially the same condition as existed immediately before the damage or destruction and otherwise in accordance with the terms of the Lease, or (2) offer to acquire the
Leased Property from Lessor for a purchase price equal to the Rejectable Offer Price of the Leased Property. If Lessee restores the Hotel, the insurance proceeds shall be paid out by Lessor 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 paid to Lessee. If Lessee acquires the Leased Property, Lessee shall receive the insurance proceeds. If Lessor does
not accept Lessee’s offer so to purchase the Leased Property within ninety (90) days, Lessee may withdraw its offer to purchase the Leased Property and, if so withdrawn, Lessee may terminate the Lease with respect to the Leased Property
without further liability hereunder and Lessor shall be entitled to retain all insurance proceeds. 
  

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 (b) Except as provided in Section 14.6, if during the Term the Leased Property is partially
destroyed by a risk covered by the insurance described in Article 13, but the Hotel is not thereby rendered Unsuitable for its Primary Intended Use, Lessee shall restore the Hotel to substantially the same condition as existed immediately before the
damage or destruction and otherwise in accordance with the terms of the Lease. Such damage or destruction shall not terminate this Lease; provided, however, that if Lessee 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 Hotel 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, Lessee may offer to purchase the Leased Property for a purchase price equal to the Rejectable Offer Price of the Leased Property,
determined without regard to such damage or destruction if insurance proceeds are available to restore the Hotel. If Lessee makes such offer and Lessor does not accept the same, Lessee shall withdraw such offer, in which event this Lease shall
remain in full force and effect and Lessee shall immediately proceed to restore the Hotel to substantially the same condition as existed immediately before such damage or destruction and otherwise in accordance with the terms of the Lease. If Lessee
restores the Hotel, the insurance proceeds shall be paid out by Lessor from time to time for the reasonable costs of such restoration upon satisfaction of reasonable terms and conditions specified by Lessor, and any excess proceeds remaining after
such restoration shall be paid to Lessee. 
 (c) If the cost of the repair or restoration exceeds the amount of proceeds received by Lessor
from the insurance it maintains as required under Article 13, Lessee shall be obligated to contribute any excess amounts needed to restore the Hotel. Such difference shall be paid by Lessee to Lessor promptly after Lessee receives Lessor’s
written invoice therefor, to be held in trust in an interest-bearing account, together with any other insurance proceeds, for application to the cost of repair and restoration. 
 (d) If Lessor accepts Lessee’s offer to purchase the Leased Property under this Article, this Lease shall terminate as to the Leased Property upon
payment of the purchase price, and Lessor shall remit to Lessee all insurance proceeds pertaining to the Leased Property being held in trust by Lessor. 
 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 Hotel is totally or materially destroyed by a risk not
covered by the insurance described in Article 13, whether or not such damage or destruction renders the Hotel Unsuitable for its Primary Intended Use, Lessee at its option shall either, (a) at Lessee’s sole cost and expense, restore the
Hotel to substantially the same condition it was in immediately before such damage or destruction and such damage or destruction shall not terminate this Lease, or (b) offer to purchase the Leased Property for a purchase price equal to the
Rejectable Offer Price of the Leased Property without regard to such damage or destruction. If such damage or destruction is not material, Lessee shall restore the Hotel to substantially the same condition as existed immediately before the damage or
destruction and otherwise in accordance with the terms of the Lease. If Lessor does not accept Lessee’s offer so to purchase the Leased Property within ninety (90) days, Lessee may withdraw its offer to purchase the Leased Property and, if
so withdrawn, Lessee may terminate the Lease with respect to the Leased Property without further liability hereunder. 
  

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 14.4. Lessee’s Property. All insurance proceeds payable by reason of any loss of or damage to
any of Lessee’s Personal Property shall be paid to Lessee; provided, however, no such payments shall diminish or reduce the insurance payments otherwise payable to or for the benefit of Lessor hereunder. 
 14.5. Abatement of Rent. Any damage or destruction due to casualty notwithstanding, this Lease shall remain in full force and effect and
Lessee’s obligation to make rental payments and to pay all other charges required by this Lease shall remain unabated during the first three (3) months of any period required for the applicable repair and restoration. Thereafter, Base Rent
shall be equitably abated. 
 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 Hotel rendering it unsuitable for its Primary Intended Use occurs during the last twenty-four (24) months of the Term, then Lessor or Lessee shall have the right to terminate this Lease by giving
Notice, respectively, to Lessee or Lessor 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 (5) days after the date of
such Notice. 
 14.7. Waiver. Lessee hereby waives any statutory rights of termination that may arise by reason of any damage or
destruction of the Hotel that Lessor is obligated to restore or may restore under any of the provisions of this Lease. 
 ARTICLE 15

 CONDEMNATION; AWARD ALLOCATION 
 15.1. Definitions. 
 (a) “Award” means all compensation, sums or anything of value
awarded, paid or received on a total or partial Condemnation. 
 (b) “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 Lessor to any Condemnor, either under threat of condemnation or while legal proceedings for
condemnation are pending. 
 (c) “Condemnor” means any public or quasi-public authority, or private corporation or
individual, having the power of Condemnation. 
 (d) “Date of Taking” means the date the Condemnor has the right to
possession of the property being condemned. 
  

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 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 Lessor and Lessee shall be determined by this Article 15. 
 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. 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, Lessee and Lessor 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 Lessee hereunder shall be apportioned as of the Date of Taking, and Lessee shall promptly pay Lessor such amounts. 
 15.4. Allocation
of Award. The total Award made with respect to the Leased Property or for loss of rent, or for Lessor’s loss of business beyond the Term, shall be solely the property of and payable to Lessor. Any Award made for loss of Lessee’s
business during the remaining Term, if any, for the taking of Lessee’s Personal Property, or for removal and relocation expenses of Lessee in any such proceedings shall be the sole property of and payable to Lessee. In any Condemnation
proceedings Lessor and Lessee shall each seek its Award in conformity herewith, at its respective expense; provided, however, Lessee shall not initiate, prosecute or acquiesce in any proceedings that may result in a diminution of any Award payable
to Lessor. 
 15.5. Partial Taking. If title to less than the whole of the Leased Property is condemned, and the Leased Property is
not Unsuitable for its Primary Intended Use, and not Uneconomic for its Primary Intended Use, or if Lessee or Lessor is entitled but neither elects to terminate this Lease as provided in Section 15.3, Lessee at its cost shall with all
reasonable dispatch 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. Lessor shall contribute to the cost of restoration that part of its Award specifically allocated to such restoration, if any, together with severance and other damages
awarded for the taken Leased Improvements; provided, however, that the amount of such contribution shall not exceed such cost. In the event of such a partial Taking, this 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 Lessee and Lessor, taking into consideration, among other relevant factors, the number of usable rooms, the amount of square footage, or the revenues affected by such partial Taking. If Lessor
and Lessee 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. 
 15.6. Temporary Taking. If the whole or any part of the Leased Property (other than the fee) or of Lessee’s interest under this Lease is
condemned by any Condemnor for its temporary use or occupancy (which shall mean a period not to exceed two years), this Lease shall not terminate by reason thereof, and Lessee shall continue to pay, in the manner and at the terms herein specified,
the full amounts of Base Rent and Additional Charges. In addition, Lessee shall pay Percentage Rent at a rate equal to the average Percentage Rent during the last three (3) preceding Fiscal Years 

  

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(or if three (3) Fiscal Years shall not have elapsed, the average during the preceding Fiscal Years). Except only to the extent that Lessee may be
prevented from so doing pursuant to the terms of the order of the Condemnor, Lessee shall continue to perform and observe all of the other terms, covenants, conditions and obligations hereof on the part of Lessee to be performed and observed, as
though such Condemnation had not occurred. In the event of any Condemnation as in this Section 15.6 described, 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 Lessee. Lessee covenants that upon the termination of any such period of temporary use or occupancy it will, at its sole cost and expense (subject to Lessor’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 such period of temporary use or occupancy extends beyond the expiration of the Term, in which case Lessee shall
not be required to make such restoration. If restoration is required hereunder, Lessor 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 Lessee shall fund the balance of such costs in a manner reasonably satisfactory to Lessor. 
 ARTICLE 16 

 DEFAULT BY LESSEE; LESSOR’S REMEDIES 
 16.1. Events of Default. If any one or more of the following events (individually, an “Event of Default”) occurs: 
 (a) if an Event of Default occurs under any other lease between Lessor or any Affiliate of Lessor and Lessee or any Affiliate of Lessee; or 
 (b) if Lessee fails to make payment of the Base Rent within ten (10) days after the same becomes due and payable; or 
 (c) if Lessee fails to make payment of Percentage Rent when the same becomes due and payable and such condition continues for a period of thirty
(30) days after the end of the applicable quarter; or 
 (d) if Lessee fails to observe or perform any other term, covenant or condition
of this Lease and such failure is not cured by Lessee within a period of thirty (30) days after receipt by Lessee of Notice thereof from Lessor, 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 Lessee 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; or 
 (e) if Lessee 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 Lessee as a bankrupt or its reorganization pursuant to any federal or 

  

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state bankruptcy law or any similar federal or state law shall be filed in any court and Lessee 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 Lessee or of the whole or substantially all of the assets of Lessee shall be appointed in any proceeding brought by
Lessee or if any such receiver, trustee or liquidator shall be appointed in any proceeding brought against Lessee and shall not be vacated or set aside or stayed within sixty (60) days after such appointment; or 
 (f) if Lessee 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 
 (g) if, except as expressly permitted herein, the estate or interest of Lessee in the
Leased Property or any part thereof is voluntarily or involuntarily transferred, assigned, conveyed, levied upon or attached in any proceeding (unless Lessee is contesting such lien or attachment in good faith in accordance with Section 12.2
hereof) or there is a Change of Control of Lessee; or 
 (h) if, except as a result of damage, destruction or a partial or complete
Condemnation as contemplated by this Lease, Lessee voluntarily ceases operations on the Leased Property for a period in excess of thirty (30) days; or 
 (i) if an event of default has been declared by the franchisor under the Franchise Agreement with respect to the Hotel as a result of any action or failure to act by Lessee or any Person with whom Lessee contracts for
management services at the Hotel, and such default is not cured by the earlier of (A) ten (10) days following notice from Lessor or (B) such earlier date as is required for Lessee to avoid termination of the Franchise Agreement by the
franchisor; 
 then, and in any such event, Lessor 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 Lessee not less than ten (10) 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 (d) during any time the curing thereof is prevented by an Unavoidable Delay, provided that upon the cessation of such Unavoidable Delay, Lessee remedies such default or Event of Default without further delay. 
 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, Lessee shall, if requested by Lessor so to do, immediately surrender to Lessor the Leased Property
including, without limitation, any and all books, records, files, licenses, permits and keys relating 

  

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thereto, and quit the same and Lessor may enter upon and repossess the Leased Property by summary proceedings, ejectment or otherwise, and may remove Lessee
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. Lessee hereby waives any and all requirements of applicable laws for service of notice to re-enter
the Leased Property. Lessor shall be under no obligation to, but may if it so chooses, relet the Leased Property or otherwise mitigate Lessor’s damages. 
 16.3. Damages. Neither (a) the termination of this Lease, (b) the repossession of the Leased Property, (c) the failure of Lessor to relet the Leased Property, nor (d) the reletting of all or any
portion thereof, shall relieve Lessee of its liability and obligations hereunder, all of which shall survive any such termination, repossession or reletting. In the event of any such termination, Lessee shall forthwith pay to Lessor all Rent due and
payable with respect to the Leased Property to and including the date of such termination. 
 Lessee shall forthwith pay to Lessor, at
Lessor’s option, as and for liquidated and agreed current damages for Lessee’s default, either: 
 (i) Without
termination of Lessee’s right to possession of the Leased Property, each installment of Rent (including Percentage Rent as determined below) and other sums payable by Lessee to Lessor under the Lease as the same becomes due and payable, which
Rent and other sums shall bear interest at the Overdue Rate, and Lessor may enforce, by action or otherwise, any other term or covenant of this Lease; or 
 (ii) the sum of: 
 (A) the unpaid Rent which had been earned at the time of termination,
repossession or reletting, and 
 (B) 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 Lessee proves could be reasonably avoided and as reduced for rentals received after the time of
termination, repossession or reletting, if and to the extent required by applicable law, and 
 (C) any other amount necessary
to compensate Lessor for all the detriment proximately caused by Lessee’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 subparagraph (B) 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%). Percentage 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 

  

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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 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, Lessee 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 Article 16, and (b) the benefit of any laws now or hereafter in force exempting property from liability for rent or for debt and Lessor
waives any right to “pierce the corporate veil” of Lessee other than to the extent funds shall have been fraudulently paid by Lessee to any Affiliate of Lessee following a default resulting in an Event of Default. 
 16.5. Application of Funds. Any payments received by Lessor under any of the provisions of this Lease during the existence or continuance of any
Event of Default shall be applied to Lessee’s obligations in the order that Lessor may determine or as may be prescribed by the laws of the State. 
 16.6. Lessor’s Right to Cure Lessee’s Default. If Lessee fails to make any payment or to perform any act required to be made or performed under this Lease, including, without limitation, Lessee’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, Lessor, without waiving or releasing any obligation of Lessee, 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 Lessee, 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 Lessor’s opinion, may be necessary or appropriate therefor. No such entry shall be deemed an eviction of Lessee. All sums so paid by Lessor 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 Lessors, shall be paid by Lessee to Lessor on demand. The obligations of Lessee and rights of Lessor contained in this Article shall survive the expiration or earlier termination of this
Lease. 
 ARTICLE 17 
 DEFAULT BY LESSOR; LESSEE’S REMEDIES 
 17.1. Breach by Lessor. It shall be a breach of this Lease if Lessor
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 Lessee, 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 Lessor, within such thirty (30) day period, proceeds promptly and with due diligence to cure the failure and diligently completes the
curing thereof; provided, however, that such default shall be cured by Lessor in any event prior to the date on which the default becomes an event of default under the terms of the Franchise Agreement for the Hotel. The time within which Lessor
shall be obligated to cure any such failure also shall be subject to 

  

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extension of time due to the occurrence of any Unavoidable Delay. If Lessor fails to cure any such breach within the grace period described above, Lessee,
without waiving or releasing any obligations hereunder, and in addition to all other remedies available to Lessee at law or in equity, may purchase the Leased Property from Lessor for a purchase price equal to the then Fair Market Value. If Lessee
elects to purchase the Leased Property it shall deliver a Notice thereof to Lessor 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, and
the same shall be thereupon conveyed in accordance with the provisions of Section 17.3; provided, however, that Lessor shall pay the cost of Lessee’s title insurance and all closing costs associated with such purchase by Lessee following
default by Lessor. 
 17.2. Lessee’s Right to Cure. Subject to the provisions of Section 17.1, if Lessor breaches any
covenant to be performed by it under this Lease, Lessee, after Notice to and demand upon Lessor, without waiving or releasing any obligation hereunder, and in addition to all other remedies available to Lessee, 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 Lessor. All sums so paid by Lessee 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 Lessee, shall be paid by Lessor to Lessee on demand or, following entry of a final, nonappealable judgment against Lessor for
such sums, may be offset by Lessee against the Base Rent and/or Percentage Rent payments next accruing or coming due. The rights of Lessee hereunder to cure and to secure payment from Lessor in accordance with this Section 17.2 shall survive
the termination of this Lease with respect to the Leased Property. 
 17.3. Provisions Relating to Purchase of the Leased Property by
Lessee. If Lessee purchases the Leased Property from Lessor pursuant to any of the terms of this Lease, Lessor shall, upon receipt from Lessee of the applicable purchase price, together with full payment of any unpaid Rent due and payable with
respect to any period ending on or before the date of the purchase, deliver to Lessee an appropriate limited or special warranty deed or other conveyance conveying the entire interest of Lessor in and to the Leased Property to Lessee free and clear
of all encumbrances other than (a) those that Lessee has agreed hereunder to pay or discharge, (b) those mortgage liens, if any, that Lessee has agreed in writing to accept and to take title subject to, (c) those liens and
encumbrances subject to which the Leased Property was conveyed to Lessor, to the extent not released in connection with the transactions contemplated by this Lease, (d) encumbrances, easements, licenses or rights of way required to be imposed
on the Leased Property under Section 7.3, and (e) any other encumbrances permitted to be imposed on the Leased Property under the provisions of Article 22 that are assumable at no cost to Lessee or to which Lessee may take subject without
cost to Lessee. The difference between the applicable purchase price and the total of the encumbrances assumed or taken subject to shall be paid in cash to Lessor or as Lessor may direct, in federal or other immediately available funds, except as
otherwise mutually agreed by Lessor and Lessee. All expenses of such conveyance, including, without limitation, the cost of title examination or title insurance, if desired by Lessee, Lessee’s attorneys’ fees incurred in connection with
such conveyance and release, and one-half of any transfer taxes and recording fees, shall be paid by Lessee. Lessor shall pay one-half of any transfer taxes and recording fees and its attorney’s fees. 
  

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 ARTICLE 18 
 INDEMNIFICATION 
 18.1. Indemnification. 
 (a) Notwithstanding the existence of any insurance, and without regard to the policy limits of any such insurance or self-insurance, but subject to
Section 13.3 and Section 8.3, Lessee will protect, indemnify, hold harmless and defend Lessor from and against all liabilities, losses, 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 Lessor 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 use, misuse, non-use, condition, management,
maintenance or repair by Lessee or any of its agents, employees or invitees of the Leased Property or Lessee’s Personal Property during the Term or any litigation, proceeding or claim by governmental entities or other third parties to which a
Lessor Indemnified Party is made a party or participant related to such use, misuse, non-use, condition, management, maintenance, or repair thereof by Lessee or any of its agents, employees or invitees, including any failure of lessee 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 Lessee pursuant to the applicable
provisions of this Lease, (d) any failure on the part of Lessee 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. 
 (b) Notwithstanding the existence of any insurance, and without regard to the
policy limits of any such insurance or self-insurance, but subject to Section 13.3 and Section 8.3, Lessor shall indemnify, save harmless and defend Lessee 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 Lessee Indemnified Parties as a result of (a) the gross negligence or willful misconduct of Lessor arising in connection with this Lease or
(b) any failure on the part of Lessor to perform or comply with any of the terms of this Lease. Any amounts that become payable by an Indemnifying Party under this Section shall be paid within ten (10) 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 or delayed. Nothing herein shall be construed as
indemnifying a Lessor Indemnified Party against its own (or Lessor’s) grossly negligent acts or omissions or willful misconduct. 
  

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 (c) Lessee’s or Lessor’s liability for a breach of the provisions of this Article shall survive
any termination of this Lease. 
 ARTICLE 19 
 REIT REQUIREMENTS AND RESTRICTIONS 
 19.1. Personal Property Limitation. Anything contained in
this Lease to the contrary notwithstanding, the average of the adjusted tax bases of the items of personal property that are leased to Lessee 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 adjusted tax bases of the Leased Property at the beginning and at the end of such Fiscal Year. This Section 19.1 is 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. 
 19.2. Sublease Rent Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not sublet the Leased Property on any basis such that the rental to be paid by the sublessee
thereunder would be based, in whole or in part, on either (a) the income or profits derived by the business activities of the sublessee, or (b) any other formula such that any portion of the Rent would fail to qualify as “rents from
real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto. 
 19.3.
Sublease Tenant Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not sublease the Leased Property to any Person in which Lessor owns, directly or indirectly, a ten percent (10%) or more interest,
within the meaning of Section 856(d)(2)(B) of the Code, or any similar or successor provisions thereto. 
 19.4. Lessee Ownership
Limitations. 
 (a) Anything contained in this Lease to the contrary notwithstanding, neither Lessee nor an Affiliate of Lessee shall
acquire, directly or indirectly, a ten percent (10%) or more interest in Lessor within the meaning of Section 856(d)(2)(B) of the Code, or any similar or successor provision thereto. 
 (b) Lessee shall not own, operate, manage or have any interest in any hotel or motel property in which Lessor or an Affiliate of Lessor does not have an
interest, pursuant to this Lease or another lease, agreement or arrangement with Lessor or an Affiliate of Lessor. Lessor agrees to notify Lessee promptly of the location of any hotel or motel property in which Lessor or an Affiliate of Lessor has
an interest. 
 19.5. Lessee Officer and Employee Limitation. If a Person serves as both (a) a director of Lessee (or any Person
who furnishes or renders services to the tenants of the Leased Property, or manages or operates the Leased Property) and (b) an officer (or employee) of the Lessor that Person shall not receive any compensation for serving as a director of
Lessee (or any Person who furnishes or renders services to the tenants of the Leased Property, or manages or operates the 

  

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Leased Property). Furthermore, if a Person serves as both (a) a director of the Lessor and (b) an officer (or employee) of Lessee (or any Person
who furnishes or renders services to the tenants of the Leased Property, or manages or operates the Leased Property), that Person shall not receive any compensation for serving as a director of the Lessor. No Person, other than Justin G. Knight,
shall serve as an officer (or employee) of both Lessor and Lessee. 
 19.6. Payments to Affiliates of Lessee. During the Term, Lessee
shall not pay, or become obligated to pay, any fees to any Affiliate of Lessee in connection with the Hotel, other than fees that are subordinated to the payments that are required to be made to Lessor pursuant to this Lease. 
 ARTICLE 20 
 SUBLETTING AND
ASSIGNMENT 
 20.1. Subletting and Assignment. Subject to the provisions of Article 19 and Section 20.2 and any other express
conditions or limitations set forth herein, Lessee may, but only with the consent of Lessor (which shall not be unreasonably withheld or delayed), (a) assign this Lease or sublet all or any part of the Leased Property to an Affiliate of Lessee,
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 Lessee 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 20.2, 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 Lessee to be kept and performed and shall be, and become, jointly and severally liable with Lessee for the performance
thereof. Notwithstanding the above, Lessee may assign the Lease to an Affiliate without the consent of Lessor; 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 Lessee to
be kept and performed and shall be and become jointly and severally liable with Lessee for the performance thereof. In case of either an assignment or subletting made during the Term, Lessee 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 Lessee hereunder. An original counterpart of each such sublease and assignment and assumption, duly executed
by Lessee and such sublessee or assignee, as the case may be, in form and substance satisfactory to Lessor, shall be delivered promptly to Lessor. 
 20.2. Attornment. Lessee shall insert in each sublease permitted under Section 20.1 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 Lessor hereunder, (b) if this Lease terminates before the expiration of such sublease, the sublessee thereunder will, at Lessor’s option, attorn to Lessor 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 Notice from Lessor or Lessor’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 Lessor or Lessor’s assignees, if any, as
the case may be, shall be credited against the amounts owing by Lessee under this Lease. 
  

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 20.3. Conveyance by Lessor. Lessor may assign this Lease to any purchaser of the Leased Property.
If Lessor or any successor owner of the Leased Property conveys the Leased Property 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
Lessor hereunder arising or accruing from and after the date of such conveyance or transfer, Lessor or such successor owner, as the case may be, shall thereupon be released from all future liabilities and obligations of Lessor 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. 
 ARTICLE 21 
 QUIET ENJOYMENT;
RISK OF LOSS 
 21.1. Quiet Enjoyment. So long as Lessee 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, Lessee shall peaceably and quietly have, hold and enjoy the Leased Property for the Term hereof, free of any claim or other action by
Lessor or anyone claiming by, through or under Lessor, but subject to all liens and encumbrances subject to which the Leased Property was conveyed to Lessor, to the extent not released in connection with the transactions contemplated by this Lease,
or hereafter consented to by Lessee or provided for herein. Notwithstanding the foregoing, Lessee shall have the right by separate and independent action to pursue any claim it may have against Lessor as a result of a breach by Lessor of the
covenant of quiet enjoyment contained in this Section. 
 21.2. 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 Lessor and those claiming from, through or under Lessor) is assumed by Lessee, and, in the absence of gross negligence, willful misconduct or breach of this Lease by Lessor pursuant to Section 17.1, Lessor shall in no event
be answerable or accountable therefor, nor shall any of the events mentioned in this Section entitle Lessee to any abatement of Rent except as specifically provided in this Lease. 
 ARTICLE 22 
 LESSOR MORTGAGES; SUBORDINATION OF LEASE 
 22.1. Lessor May Grant Liens. Without the consent of Lessee, Lessor may, subject to the terms and conditions set forth below in this
Section 22.1, 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. Upon the request of Lessor, Lessee shall subordinate this Lease to the lien of a new mortgage on the Leased Property, on the condition that the proposed mortgagee executes a
non-disturbance agreement recognizing this Lease in accordance with the provisions of Section 22.2, and agreeing, for itself and its successors and assigns, to comply with the provisions of this Article 22. 
  

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 22.2. Subordination of Lease. This Lease and Lessee’s interest hereunder shall at all times
be subject and subordinate to the lien and security title of any deeds to secure debt, deeds of trust, mortgages, or other Encumbrances heretofore or hereafter granted by Lessor or which otherwise encumber or affect the Leased Property and to any
and all advances to be made thereunder and to all renewals, modifications, consolidations, replacements, substitutions, and extensions thereof (all of which are herein called the “Mortgage”); provided, however, that with respect to any
Mortgage hereafter granted, such subordination is conditioned upon delivery to Lessee of a non-disturbance agreement which provides that Lessee shall not be disturbed in its possession of the Leased Property hereunder following a foreclosure of such
Mortgage (or delivery of a deed-in-lieu-of-foreclosure) and that the holder of such Mortgage or the purchaser at a foreclosure sale (or grantee under such deed-in-lieu-of-foreclosure) shall perform all obligations of Lessor under this Lease. In
confirmation of such subordination, however, Lessee shall, at Lessor’s request, promptly execute, acknowledge and deliver any instrument which may be required to evidence subordination to any Mortgage and to the holder thereof. In the event of
Lessee’s failure to deliver such subordination and if the Mortgage does not change any term of the Lease, Lessor may, in addition to any other remedies for breach of covenant hereunder, execute, acknowledge, and deliver the instrument as the
agent or attorney-in-fact of Lessee, and Lessee hereby irrevocably constitutes Lessor its attorney-in-fact for such purpose, Lessee acknowledging that the appointment is coupled with an interest and is irrevocable. 
 ARTICLE 23 
 ESTOPPEL
CERTIFICATES; FINANCIAL STATEMENTS; INSPECTION RIGHTS 
 23.1. Estoppel Certificates; Financial Statements. 
 (a) At any time and from time to time upon not less than ten (10) days Notice by Lessor, Lessee will furnish to Lessor 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 Lessee
there is any existing default or Event of Default exists thereunder by Lessor or Lessee, and such other information as may be reasonably requested by Lessor. Any such certificate furnished pursuant to this Section may be relied upon by Lessor, any
lender and any prospective purchaser of the Leased Property. 
 (b) Lessee will furnish the following statements to Lessor: 
 (i) with reasonable promptness, such information respecting the financial condition and affairs of Lessee including audited financial
statements prepared by the same certified independent accounting firm that prepares the returns for Lessor or such other accounting firm as may be approved by Lessor, as Lessor may request from time to time; and 
 (ii) the most recent Consolidated Financials of Lessee within forty-five (45) days after each quarter of any Fiscal Year (or, in the
case of the final quarter in any Fiscal Year, the most recent audited Consolidated Financials of Lessee within ninety (90) days); and 
  

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 (iii) on or about the 20th day of each month, a detailed profit and loss statement for
the Leased Property for the preceding month, a balance sheet for the Leased Property as of the end of the preceding month, and a detailed accounting of revenues for the Leased Property for the preceding month, each in form acceptable to Lessor.

 Lessee will permit the inclusion of such statements in any filings required to be made by Lessor under the Securities Act of 1933 and the Securities
Exchange Act of 1934. 
 (c) At any time and from time to time upon not less than ten (10) days Notice by Lessee, Lessor will furnish to
Lessee or to any Person designated by Lessee 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 Lessor there is any existing default or Event of Default on Lessee’s part hereunder, and such other information as may be reasonably requested by Lessee. 
 (d) Lessee shall at all times be Solvent. Furthermore, as of the date of this Agreement, Lessee agrees to establish and maintain, in a form satisfactory
to Lessor, a funding commitment in an amount equal to $2,000,000 upon which Lessee may draw upon to pay to Lessor Base Rent, Percentage Rent and Additional Charges. Repayment of the funding commitment shall be subordinated to all payments of Base
Rent, Percentage Rent and additional charges under all Leases between Lessor and Lessee. 
 23.2. Lessor’s Right to Inspect.
Lessee shall permit Lessor and its authorized representatives as frequently as reasonably requested by Lessor to inspect the Leased Property and Lessee’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 Lessee. 
 ARTICLE 24 
 APPRAISERS 
 24.1. Appraisers. If it becomes necessary to determine the Fair Market Value or Fair Market Rental of the Leased Property 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, Lessor (or Lessee, as the case may be) shall by Notice to Lessee (or Lessor, 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 (5) years’
experience in the State appraising property similar to the Leased Property, shall, within forty-five (45) days after the date of the Notice appointing the first appraiser, proceed to appraise the Leased Property to determine the Fair Market
Value or Fair Market Rental thereof as of the relevant date (giving effect to the impact, if any, of inflation from the date of their decision to 

  

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the relevant date); provided, however, that if only one appraiser shall have been so appointed, then the determination of such appraiser shall be final and
binding upon the parties. To the extent consistent with sound appraisal practice as then existing at the time of any such appraisal, such appraisal shall be made on a basis consistent with the basis on which the Leased Property was appraised for
purposes of determining its Fair Market Value at the time the Leased Property was acquired by Lessor. 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 or Fair Market Rental 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 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 or Fair Market Rental, whichever is earlier, either Lessor or Lessee 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 or Fair Market Rental 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 appraisers shall be excluded, and fifty percent (50%) of the sum of the remaining two determinations shall be final and binding upon Lessor and Lessee as the Fair Market Value or
Fair Market Rental of the Leased Property, as the case may be. 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. Lessor and Lessee shall each pay the fees and expenses of the appraiser appointed by it and each shall pay one-half of the fees and expenses of the third appraiser and
one-half of all other costs and expenses incurred in connection with each appraisal. 
 ARTICLE 25 
 ARBITRATION AND DISPUTE RESOLUTION PROCEDURES 
 25.1. Arbitration. Except as set forth in Section 25.2, in each case specified in this Lease in which it shall become necessary to resort to arbitration, such arbitration shall be determined as provided in this
Section 25.1. The party desiring such arbitration shall give Notice to that effect to the other party, and an arbitrator shall be selected by mutual agreement of the parties, or if they cannot agree within thirty (30) days of such notice,
by appointment made by the American Arbitration Association (“AAA”) from among the members of its panels who are qualified and who have experience in resolving matters of a nature similar to the matter to be resolved by arbitration.

 25.2. Alternative Arbitration. In each case specified in this Lease for a matter to be submitted to arbitration pursuant to the
provisions of this Section 25.2, Lessor and Lessee will agree upon a nationally recognized accounting firm with a hospitality division of which neither party nor their Affiliates of Lessor is a significant client to serve as arbitrator of such
dispute within fifteen (15) days after written demand for arbitration is received or sent by either party. In the event the parties fail to make such designation within such fifteen (15) day period, Lessor shall be entitled to designate
any nationally recognized accounting firm with a hospitality division of which Lessor or an Affiliate of Lessor is not a significant client to serve as arbitrator of such dispute within fifteen (15) days after the parties fail to timely make
such designation. In the event Lessor 

  

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fails to make such designation within such fifteen (15) day period, Lessee shall be entitled to designate any nationally recognized accounting firm with
hospitality division of which Lessee or an Affiliate of Lessee is not a significant client to serve as arbitrator of such dispute within fifteen (15) days after the parties fail to timely make such designation. In the event no nationally
recognized accounting firm satisfying such qualifications is available and willing to serve as arbitrator, the arbitrator shall instead be administered as set forth in Section 25.1. 
 25.3. Arbitration Procedure. In any arbitration commenced pursuant to Sections 25.1 or 25.2, a single arbitrator shall be designated and shall
resolve the dispute. The arbitrator’s decision shall be binding on all parties, shall not be subject to further review or appeal except as otherwise allowed by applicable law and may be filed in and enforced by a court of competent
jurisdiction. Upon the failure of either party (the “non-complying party”) to comply with his decision, the arbitrator shall be empowered, at the request of the other party, to order such compliance by the non-complying party and to
supervise or arrange for the supervision of the non-complying party’s obligation to comply with the arbitrator’s decision, all at the expense of the non-complying party. To the maximum extent practicable, the arbitrator and the parties,
and the AAA if applicable, shall take any action necessary to insure that the arbitration shall be concluded within ninety (90) days of the filing of such dispute. The fees and expenses of the arbitrator shall be shared equally by Lessor and
Lessee except as otherwise specified above in this Section 25.3. Unless otherwise agreed in writing by the parties or required by the arbitrator or AAA, if applicable, arbitration proceedings hereunder shall be conducted in the State.
Notwithstanding formal rules of evidence, each party may submit such evidence as each party deems appropriate to support its position and the arbitrator shall have access to and right to examine all books and records of Lessee and Lessor regarding
the Hotel during the arbitration. 
 ARTICLE 26 
 NOTICES 
 26.1. Notices. All notices, demands, requests, consents approvals and other
communications (“Notice” or “Notices”) hereunder shall be in writing and hand-delivered, sent by FedEx or other nationally recognized overnight courier service, or mailed (by registered or certified mail, return receipt requested
and postage prepaid), if to Lessor at 814 East Main Street, Richmond, Virginia 23219, Attn: Krissy Gathright and if to Lessee at 814 East Main Street, Richmond, Virginia 23219, Attn: Krissy Gathright 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 overnight courier service or by mail shall be complete at the time of deposit with the courier service or in the U.S. Mail system,
respectively, 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 overnight courier service shall be extended one
(1) day and by mail shall be extended five (5) days. 
 ARTICLE 27 
 MISCELLANEOUS 
 27.1. No Waiver.
No failure by Lessor or Lessee to insist upon the strict performance of any term hereof or to exercise any right, power or remedy consequent upon a breach thereof, and 

  

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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. 
 27.2. Remedies Cumulative. To the extent permitted by law and unless otherwise provided herein to the contrary, each legal, equitable or
contractual right, power and remedy of Lessor or Lessee 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 Lessor or Lessee of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Lessor or Lessee of any or all of such other rights, powers and remedies. 

27.3. Waiver of Trial by Jury. LESSOR AND LESSEE EACH WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN
THE EVENT OF A PROCEEDING WITH RESPECT TO THIS LEASE, INCLUDING, WITHOUT LIMITATION, SUMMARY PROCEEDINGS TO ENFORCE THE REMEDIES SET FORTH IN ARTICLE 16. 
 27.4. Acceptance of Surrender. No surrender to Lessor 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 Lessor and no act by Lessor or any representative or agent of Lessor, other than such a written acceptance by Lessor, shall constitute an acceptance of any such surrender. 
 27.5. 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 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. 
 27.6. Waiver of Presentment, Etc. Lessee 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. 
 27.7. Action for Damages. Except as otherwise expressly provided herein, in any suit or other claim brought by either party seeking damages
against the other party for breach of its obligations under this Lease, the party against whom such claim is made shall be liable to the other party only for actual damages and not for consequential, punitive or exemplary damages. 
 27.8. Lease Assumption in Bankruptcy Proceeding. If an Event of Default occurs and Lessee has filed or has had filed against it a petition in
bankruptcy or for reorganization or other relief pursuant to the federal bankruptcy code, Lessee shall promptly move the court presiding over the proceeding to assume this Lease pursuant to 11 U.S.C. §365, without seeking an extension of the
time to file said motion. 
  

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 27.9. Enforceability. Anything contained in this Lease to the contrary notwithstanding, all claims
against, and liabilities of, Lessee or Lessor 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 Lessor and Lessee. 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 permitted 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. 
 27.10. Memorandum of Lease. Lessor and Lessee shall promptly, upon the request of either party, 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. Lessee shall pay all costs and expenses of recording such memorandum of this Lease. 
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 IN WITNESS WHEREOF, the parties have executed this Lease by their duly authorized officers as of the date
first above written. 
  

			
	“LESSOR”
	
	APPLE EIGHT HOSPITALITY OWNERSHIP, INC., a Virginia corporation
		
	By:	 	 /s/ Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	President

  

			
	“LESSEE”
	
	APPLE EIGHT HOSPITALITY MANAGEMENT, INC., a Virginia corporation
		
	By:	 	 /s/ Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	President

 EXHIBIT A 
 LEGAL DESCRIPTION 
 LOCATED IN GUILFORD COUNTY, NORTH CAROLINA AND BEING: 
 All of that tract of land containing approximately 1.57 acres, more particularly shown as Lot 33 Revised on the “Revised Final Record Map of Lots 33, 34 and 35
Wendover South Associates,” Prepared by F. Donald Lawrence & Associates, P.A., recorded in Plat Book 146, Page 32, Guilford County Registry, to which plat reference is made for a more particular description of Lot 33 Revised.

 EXHIBIT B 
 SPACE LEASES 
 None 

 SCHEDULE 2.1 
 COMMENCEMENT DATE 
 November 9, 2007 

 SCHEDULE 3.1(a) 
 BASE RENT 
 Prorated 2007: $94,659 
 Full Year 2007: $651,894 

 SCHEDULE 3.1(b) 
 SUITE REVENUE BREAKPOINT 
  

							
	 	  	 Prorated
 07
	  	2007
	 Yearly Breakpoint
	  	$	119,099	  	$	820,211

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