Document:

Management Agreement, as amended, dated May 31, 2002

 Holiday Inn – Billings, Montana  
  
 Exhibit 10.14 
  
 MANAGEMENT AGREEMENT 
  
 BETWEEN 
  
 SIX CONTINENTS RESOURCES, INC. 
  
 AND 
  
 HOTEL VENTURE LIMITED PARTNERSHIP 
  
 MAY 31, 2002 

 INDEX 
 HOLIDAY INN 
 MANAGEMENT AGREEMENT 
  

					
	 	  	 	  	PAGE

	RECITALS	  	 	  	1
			
	ARTICLE 1	  	 SCOPE OF AGREEMENT
	  	1
			
	1.01	  	 Engagement of Manager
	  	1
	1.02	  	 Funding
	  	2
			
	ARTICLE 2	  	 TERM AND RENEWALS
	  	2
			
	2.01	  	 Effective Date
	  	2
	2.02	  	 Initial Term
	  	2
	2.03	  	 Renewal Term
	  	3
	2.04	  	 Performance Termination
	  	3
	2.05	  	 Manager’s Termination Right
	  	4
			
	ARTICLE 3	  	 TITLE TO HOTEL
	  	4
			
	3.01	  	 Ownership
	  	4
	3.02	  	 Covenants of Title
	  	5
	3.03	  	 Estoppels
	  	5
	3.04	  	 Subordination
	  	6
			
	ARTICLE 4	  	 FINANCIAL ENHANCEMENT
	  	6
			
	4.01	  	 Financial Enhancement
	  	6
			
	ARTICLE 5	  	 STANDARDS AND MANAGER’S CONTROL
	  	7
			
	5.01	  	 Standards
	  	7
	5.02	  	 Manager’s Control
	  	7
			
	ARTICLE 6	  	 OPERATION OF THE HOTEL
	  	8
			
	6.01	  	 Permits
	  	8
	6.02	  	 Equipment and Supplies
	  	8
	6.03	  	 Personnel
	  	8
	6.04	  	 Sales, Marketing and Advertising
	  	10
	6.05	  	 Intentionally Omitted
	  	11
	6.06	  	 Maintenance and Repairs
	  	11

					
	6.07	  	 Capital Expenditures
	  	12
			
	ARTICLE 7	  	 FISCAL MATTERS
	  	15
			
	7.01	  	 Accounting Matters and Fiscal Periods
	  	15
	7.02	  	 Yearly Budgets
	  	16
	7.03	  	 Bank Accounts
	  	19
			
	ARTICLE 8	  	 FEES TO MANAGER
	  	21
			
	8.01	  	 Management Fees
	  	21
	8.02	  	 Accounting Fee
	  	22
	8.03	  	 Termination Fee
	  	23
			
	ARTICLE 9	  	 DISBURSEMENTS
	  	23
			
	9.01	  	 Priority of Disbursements
	  	23
	9.02	  	 Adjustment to Bank Account
	  	25
			
	ARTICLE 10	  	 CERTAIN OTHER SERVICES
	  	25
			
	10.01	  	 Optional Services
	  	25
	10.02	  	 Purchasing
	  	26
			
	ARTICLE 11	  	 SIGNS AND SERVICE MARKS
	  	27
			
	11.01	  	 Intentionally Omitted
	  	27
	11.02	  	 System Marks
	  	27
	11.03	  	 System Mark Litigation
	  	28
			
	ARTICLE 12	  	 INSURANCE
	  	29
			
	12.01	  	 Insurance Coverage
	  	29
	12.02	  	 Insurance Policies
	  	29
			
	ARTICLE 13	  	 INDEMNITY AND RELATED MATTERS
	  	30
			
	13.01	  	 Scope
	  	30
	13.02	  	 Defense
	  	31
	13.03	  	 Waiver of Subrogation
	  	31
			
	ARTICLE 14	  	 DAMAGE TO AND DESTRUCTION OF THE HOTEL
	  	32
			
	14.01	  	 Obligation to Restore
	  	32
	14.02	  	 Termination Option
	  	32

					
	ARTICLE 15	  	CONDEMNATION	  	33
			
	15.01	  	Termination	  	33
	15.02	  	Restoration and Continuation	  	33
			
	ARTICLE 16	  	DEFAULT AND TERMINATION	  	34
			
	16.01	  	Events of Default	  	34
	16.02	  	Default Termination	  	36
	16.03	  	Post Termination Obligations	  	37
			
	ARTICLE 17	  	NOTICES	  	39
			
	17.01	  	Procedure	  	39
			
	ARTICLE 18	  	RELATIONSHIP, AUTHORITY AND FURTHER ACTIONS	  	40
			
	18.01	  	Relationship	  	40
	18.02	  	Contractual Authority	  	41
	18.03	  	Further Actions	  	41
			
	ARTICLE 19	  	APPLICABLE LAW	  	41
			
	19.01	  	Scope	  	41
			
	ARTICLE 20	  	SUCCESSORS AND ASSIGNS	  	42
			
	20.01	  	Assignment by Manager	  	42
	20.02	  	Assignment pursuant to an Authorized Mortgage	  	42
	20.03	  	Assignment by Owner	  	43
	20.04	  	Binding Effect	  	44
			
	ARTICLE 21	  	RECORDING	  	44
			
	21.01	  	Memorandum to Agreement	  	44
			
	ARTICLE 22	  	FORCE MAJEURE	  	44
			
	22.01	  	Operation of Hotel	  	44
	22.02	  	Extension of Time	  	45
			
	ARTICLE 23	  	GENERAL PROVISIONS	  	45
			
	23.01	  	Authorization	  	45
	23.02	  	Interest	  	45
	23.03	  	Formalities	  	46

					
	23.04	  	Documents	  	46
	23.05	  	Consent	  	46
	23.06	  	Time	  	46
	23.07	  	Attorneys’ Fees	  	46
	23.08	  	Other Hotels	  	46
			
	ARTICLE 24	  	SALE OF HOTEL	  	47
			
	24.01	  	Sale of Hotel to Third Party; Management Agreement	  	47
			
	ARTICLE 25	  	DEFINITIONS	  	47
			
	25.01	  	Definitions	  	47

  

	
	 EXHIBITS

	
	 Exhibit “A” - Site Legal Description

	 Exhibit “B” - Form of Operating Statement

	 Exhibit “C” - Minimum Insurance Provisions

	 Exhibit “C-1” - Manager’s Insurance Requirements

	 Exhibit “D” – Hotel Portfolio

	 Exhibit “E” – Amortization of Enhancement

 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of the 31st day of May, 2002, by and between HOTEL VENTURE LIMITED PARTNERSHIP, a Delaware limited partnership, with offices at 3100 McKinnon, Suite 1080,
Dallas, Texas 75201 (hereinafter referred to as “Owner”), and SIX CONTINENTS RESOURCES, INC., a Delaware corporation, with offices at Three Ravinia Drive, Suite 2900, Atlanta, Georgia 30346 (hereinafter referred to as “Manager”);

  
 RECITALS: 
  
 A. Owner wishes to have Manager manage the Hotel described on Exhibit
“A”, attached hereto, as a Holiday Inn hotel; 
  
 B.
Manager desires to manage and operate the Hotel as a Holiday Inn hotel and as a member of the Brand; and 
  
 C. Owner and Holiday Inns Franchising, Inc., an affiliate of Manager, have entered into that certain Holiday Inn Change of Ownership License Agreement
dated February 6, 1998, with respect to the Hotel (the “License Agreement”). 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, Owner and Manager agree as follows: 
  
 ARTICLE 1 
  
 SCOPE OF AGREEMENT 
  
 1.01 Engagement of Manager. Owner hereby grants to Manager the sole and exclusive 
  

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 right to supervise and direct the management and operation of the Hotel for the account of Owner. Manager hereby accepts
said grant and agrees that it will control, supervise and direct the management and operation of the Hotel, all subject to the terms and conditions of this Agreement, and that it will exercise commercially reasonable efforts in doing so with the
objective of maximizing the profitability of Hotel operations and the value of the Hotel as an asset. Subject to such terms and conditions of this Agreement, the Yearly Budget and the Brand Standards, Manager shall have the right to determine
operating policy, standards of operation, quality of service and any other matters affecting customer relations or management and operation of the Hotel. Owner and Manager will each cooperate with and assist the other in every reasonable and proper
way to permit Manager to carry out its duties hereunder with respect to the Hotel. 
  
 1.02 Funding. Owner shall provide all funds, both initially and throughout the Initial Term and any Renewal Term(s), as shall be necessary to perform and satisfy Owner’s covenants and responsibilities
under this Agreement, and to enable Manager to operate the Hotel as contemplated by this Agreement. Manager’s performance of all activities hereunder will be on behalf of, and for the account of, Owner. 
  
 ARTICLE 2 
  
 TERM AND RENEWALS 
  
 2.01 Effective Date. This Agreement is effective upon execution by all
parties. Manager’s management of the Hotel will commence on and as of the Effective Date. 
  
 2.02 Initial Term. The Initial Term of this Agreement will be ten (10) years from the Effective Date, and will expire on the Expiration Date, as such date may be accelerated if this Agreement is sooner
terminated as hereinafter provided in Section 2.04, 2.05 or in Articles 14, 15 or 16 or as such date may be extended as provided in Section 2.03. 
  

 2 

 2.03 Renewal Term. This Agreement may be extended for up to two (2) consecutive five (5) year
Renewal Terms beyond the Initial Term upon the mutual agreement of Manager and Owner. In the event that either Owner or Manager wishes to enter into a Renewal Term, then on or before the date which is ninety (90) days prior to the Expiration Date of
the Initial Term (or the Expiration Date as extended by then effective Renewal Term, as the case may be) such party shall provide the other party with written notice of its election to further extend the term of this Agreement. If the non-renewing
party wishes to enter into a Renewal Term, then shall confirm such renewal within thirty (30) days after receiving the extension notice. Failure of the non-renewing party to timely provide such written notice shall be deemed such party’s
election not to enter into a Renewal Term. The terms and provisions of this Agreement will remain in effect as stated herein during any Renewal Term. 
  
 2.04 Performance Termination. 
  
 (a) Beginning with the Fiscal Year starting January 1, 2003, and so long as Owner is not in default of its obligations under this Agreement, including
without limitation, funding of all necessary Capital Replacements under Article 6 of this Agreement, Owner may terminate this Agreement without payment of the Termination Fee described in Section 8.03 upon ninety (90) days prior written notice to
Manager (such notice to be sent to Manager within thirty (30) days of Owner’s receipt of the final operating statement for such Fiscal Year) if, following the end of any Fiscal Year, the Hotel’s actual Gross Operating Profit for such
Fiscal Year is less than ninety percent (90%) of budgeted Gross Operating Profit as determined pursuant to the Yearly Budget for such Fiscal Year (the “Performance Test”). 
  
 (b) Notwithstanding subsection (a) above, Owner shall not be entitled to exercise such termination right if, within sixty
(60) days following Manager’s receipt of Owner’s written notice of 
  

 3 

 termination, Manager cures such failure by paying into the Bank Account the shortfall between the Hotel’s actual
Gross Operating Profit and budgeted Gross Operating Profit (as determined pursuant to the Yearly Budget) for such Fiscal Year. Thereafter, such Fiscal Year shall not count toward any future Performance Test measure. However, in no event shall
Manager have the right to cure a failure of the Performance Test for more than one (1) period of two (2) consecutive Fiscal Years. 
  
 (c) Notwithstanding subsection (a) above, Owner and Manager agree that the Performance Test shall be waived in any Fiscal Year that (i) force majeure
resulted in a failure of the Performance Test, or (ii) a major renovation to the Hotel costing at least $2,000,000.00 resulted in a failure of the Performance Test. 
  
 2.05 Manager’s Termination Right. The License Agreement for the Hotel expires on February 6, 2008. In the event
that Owner does not obtain a renewal of the License Agreement or an extension of the term of the License Agreement through the Expiration Date, Manager shall have the right to terminate this Agreement effective upon the expiration of the License
Agreement. Upon such termination, Owner shall pay to Manager the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement. 
  
 ARTICLE 3 
  
 TITLE TO HOTEL 
  
 3.01 Ownership. Owner represents that it has, and throughout the Initial Term and any Renewal Term(s) will, maintain full ownership of the Site,
the Building, including all FF&E, the Operating Equipment and Operating Supplies, subject only to any Authorized Mortgage(s) and to any permitted transfers as described in Article 20 and, if applicable, to the terms of a ground lease in form and
substance approved by manager prior to the Effective Date. Owner shall not consent to amendment of or waive any term or condition of such a ground lease which would adversely affect the rights of Manager or its ability to manage the Hotel under this
Agreement. 
  

 4 

 3.02 Covenants of Title. During the Initial Term and any Renewal Term(s), provided Manager is not
in default under the terms of this Agreement beyond the expiration of any applicable cure period, Manager shall have the right peaceably and quietly to operate the Hotel in accordance with the terms of this Agreement, free from interference,
disturbance and eviction by Owner or by any other person from whom Owner derives its title to or right to occupy and use the Hotel or by any other person or persons claiming by, through or under Owner, subject only to termination of this Agreement
due to an Event of Default by Manager. Owner, at Owner’s own expense shall prosecute all appropriate actions, judicial or otherwise, required to assure such quiet and peaceable operation by Manager and shall pay and discharge any ground rents,
other lease or rental payments, or any other charges payable by Owner relative to the Hotel or any component thereof, including all amounts due under a ground lease for the Site or an Authorized Mortgage. Owner shall pay, prior to delinquency, all
taxes and assessments which may become a lien on or are assessed against the Hotel or any component thereof and which may be due and payable during the Initial Term and any Renewal Term(s) of this Agreement, unless payment thereof is in good faith
being contested by Owner, enforcement is stayed and the amount so contested is escrowed or guaranteed in a form satisfactory to Manager. Upon Manager’s request, Owner agrees to furnish to Manager copies of all documents by and through which
Owner has the right of possession to the Hotel and the right and ability to enter into this Agreement. 
  
 3.03 Estoppels. Upon request, Owner will use all commercially reasonable efforts to obtain and provide to Manager estoppel certificates from the
holder of an Authorized Mortgage, if any, and from the lessor under any approved ground lease, stating that there is no default under such agreements or the related obligations and confirming the name, address and amounts due or coming due to such
holder or lessor and the completeness and accuracy of copies of the relevant documents provided to Manager. 
  

 5 

 3.04 Subordination. Provided that Owner assists Manager in obtaining a commercially reasonable
subordination, non-disturbance and attornment agreement which provides for the priority payment of the Base Management Fee and the fees under the License Agreement from the holder of each Authorized Mortgage, this Agreement shall be subordinate to
any Authorized Mortgage. 
  
 ARTICLE 4 
  
 FINANCIAL ENHANCEMENT 
  
 4.01 Financial Enhancement . On or before May 31, 2002, Manager
shall pay to Owner in cash a financial enhancement in the total amount of $3,000,000.00 in immediately available funds with respect to the Hotel and the other hotels owned by Owner and managed by Manager, all as listed on Exhibit
“D”, which shall be non-refundable except as otherwise provided in this Agreement. A portion of the total enhancement in the amount of $500,000.00 (the “Enhancement”) shall be allocated to the Hotel and shall be amortized
(without interest thereon) in accordance with the amortization schedule attached hereto as Exhibit “E” and incorporated herein by reference. Upon any termination of this Agreement prior to the full amortization of the Enhancement,
Owner shall immediately repay to Manager the unamortized portion of the Enhancement at the time of such termination. The foregoing repayment obligation shall be secured by a guaranty given by Circa Capital Corporation, the general partner of Owner,
for the benefit of Manager and in form and content reasonably satisfactory to Manager. 
  

 6 

 ARTICLE 5 
  

BRAND STANDARDS AND MANAGER’S CONTROL 
  
 5.01 Brand Standards. Manager shall operate the Hotel as a Holiday Inn hotel for the account of and at the expense of Owner in accordance with the
terms of this Agreement, the License Agreement and the Brand Standards. Owner acknowledges that Manager’s expectation of operating a hotel which is at all times physically in compliance with the Brand Standards, including, without limitation,
standards relating to life safety and quality of the hotel, is essential to inducing Manager and its affiliates to undertake this Agreement because such standards are critical to maintaining the integrity of the Brand. Accordingly, the Brand
Standards shall be observed by Owner and the Hotel at all times. Affiliates of Manager which own the System Marks and Brand Standards reserve the right to revise and amend the System Marks or Brand Standards from time to time on a non-discriminatory
basis in accordance with the terms of the License Agreement. Owner also agrees that the Hotel will be required to participate in Brand-wide or area quality programs that are implemented from time to time by Affiliates of Manager in accordance with
the License Agreement. The allocable cost of participation in such programs shall be Operating Costs of the Hotel. 
  
 5.02 Manager’s Control. Manager shall have uninterrupted control over the operation of the Hotel. Owner acknowledges that under this
Agreement, except as may otherwise be expressly provided herein, Owner delegates all authorities and responsibilities for operation of the Hotel to Manager. Manager, in the exercise of reasonable discretion and business judgment and in accordance
with the Yearly Budget, shall be solely responsible for determining room rates, food and beverage menu prices and charges to guests for other Hotel services. Manager shall also have sole responsibility, in the exercise of reasonable discretion and
business judgment and in accordance with the Yearly Budget, to determine the terms of guest occupancy and admittance to the Hotel, use of rooms for commercial purposes, policies relating to entertainment, labor policies, 
  

 7 

 publicity and promotion activities and technology services and equipment to be used in the Hotel. Manager shall review
with Owner from time to time and during the annual review of the Yearly Budget material changes in policies, practices and procedures and their effect on the financial performance of the Hotel. 
  
 ARTICLE 6 
  
 OPERATION OF THE HOTEL 
  
 6.01 Permits. Manager, as an Operating Cost of the Hotel, shall obtain
in the name of Owner (unless otherwise required by applicable law to be held in the name of Manager) and maintain in full force and effect all necessary operating licenses and permits, including liquor, bar, restaurant, sign and hotel licenses, as
may be required for the operation of the Hotel. Manager will make all reasonable efforts within its control to comply with conditions or requirements set out in or imposed by law in connection with any such licenses and permits and at all times to
manage the Hotel in accordance with such conditions and any other legal requirements. 
  
 6.02 Equipment and Supplies. After the Effective Date, Manager shall procure, at Owner’s expense and pursuant to the Yearly Budgets, all such Operating Supplies and Operating Equipment as Manager deems
necessary for the normal and ordinary course of operation of the Hotel in accordance with the Brand Standards. 
  
 6.03 Personnel. 
  
 (a) The General Manager and all other personnel engaged in the operation of the Hotel will be the employees of Manager; provided, however, Manager shall
not assume, and Owner hereby expressly agrees to indemnify Manager for any and all cost, loss, expenses, claims, and liability associated with or in any manner related to the employment of such personnel at any time prior to the Effective Date.
Manager will hire, supervise, direct, discharge and determine the 
  

 8 

 compensation, other benefits and terms of employment of all personnel working in the Hotel; provided, however, that Owner
shall have the right to participate in the hiring process for the Hotel’s General Manager, Controller and Director of Sales and that Owner shall have the right disapprove Manager’s first selection for the Hotel’s General Manager.
Manager will be the sole judge of the fitness and qualifications of such personnel and is vested with absolute discretion in the hiring, supervising, directing, discharging and determining the compensation, other benefits and terms of employment of
such personnel. In such discretion and in accordance with the Yearly Budget, Manager may elect to staff certain functions at offsite or regional locations, or to provide employee benefits on a Brand-wide or other multi-location basis and may
allocate the employee costs among the hotels participating in such staffing or benefits. Owner shall not interfere with the performance of employment duties of, or give orders or instructions to, any personnel employed at the Hotel. However, Owner
shall be solely responsible for, as an Operating Cost, and will reimburse and hold harmless Manager from and against all expenses, costs, charges or claims which are or would be related to or incidental to any personnel (whether incurred or paid
before, during or after the Initial or any Renewal Term of this Agreement), including the General Manager, employed in the operation of the Hotel (including, without limitation, salaries, wages, other compensation, benefit contributions and
premiums, net of amounts paid by Hotel employees; stop-loss insurance premiums; group health plan benefit payments in excess of contribution and premium amounts paid by Owner and Hotel employees; pay for vacation, holidays, sick leave and other
leaves of absence; workers’ compensation premiums; workers compensation benefit payments paid by Manager in excess of premium amounts paid by Owner; administrative fees and taxes; and severance benefits applicable under Manager’s then
current Human Resources policies) all as generally set forth in the Yearly Budget except for items of an unforeseen or unpredictable nature. 
  

 9 

 (b) Owner shall reimburse Manager for all reasonable travel expenses incurred by Manager’s employees
in connection with (i) constructing improvements of additions, renovating, furnishing and supplying the Hotel; (ii) hiring and training Hotel employees; (iii) maintaining the physical condition and appearance of the Hotel; (iv) maintaining and
promoting proper operational procedures and practices at the Hotel; (v) maintaining books and records of the Hotel; and (vi) otherwise performing duties undertaken by or rights granted to Manager in this Agreement. Manager will have sole discretion,
which shall not be unreasonably exercised, within the Yearly Budget to determine the appropriateness of such travel. All such travel must be consistent with Manager’s policies governing travel by its employees. 
  
 (c) The costs, fees, compensation or other expenses of any independent
contractors engaged by Owner or Manager (with the consent of Owner, which consent shall not be unreasonably withheld) to perform duties of a special nature, directly related to the ownership of the Hotel, such as attorneys and independent
accountants, are an Ownership Cost and will be a direct expense of Owner which shall not be the direct responsibility of Manager nor an Operating Cost, nor an expense disbursed by Manager from Gross Revenues or the Bank Account, unless the
engagement of such independent contractor is caused by Manager’s non-performance in accordance with the terms of this Agreement. 
  
 6.04 Sales, Marketing and Advertising. Manager, in accordance with the Yearly Budget and on behalf of Owner and at Owner’s expense, shall or
shall cause its affiliates to: 
  
 (a) advertise and promote the
business of the Hotel; 
  
 (b) institute and supervise a sales and
marketing program for the Hotel; 
  
 (c) include the Hotel in
Manager’s local, regional and worldwide promotional and advertising programs directed at the leisure, business and meetings markets, as Manager may deem advisable; 
  

 10 

 (d) represent the Hotel through Manager’s worldwide sales offices; 
  
 (e) include the Hotel in the Six Continents Hotels loyalty program, presently
called “Priority Club”, including, without limitation, inclusion of the Hotel in promotional materials distributed to participants of such program; 
  
 (f) coordinate the Hotel’s participation in travel programs marketed by airlines, travel agents and government tourist departments when Manager
determines such participation to be advisable; and 
  
 (g) cause
the Hotel to participate in sales and promotional campaigns and activities involving complimentary rooms, food and beverages to bona fide travel agents, tourist officials and airline representatives where Manager has determined that such
participation is in furtherance of the Hotel’s business and is customary in the travel industry or in the practices and policies of Manager. 
  
 (h) The Hotel’s Pro rata cost of participation in all of the foregoing programs shall be paid by Manager as an Operating Cost. 
  
 6.05 Intentionally Omitted. 
  
 6.06 Maintenance and Repairs. 
  
 (a) Owner shall be responsible for providing the funds necessary, either
from Hotel revenues or otherwise, to maintain the Hotel and its FF&E in good repair and in a condition consistent with the Brand Standards. 
  
 (b) Manager shall, on behalf of Owner and at Owner’s expense, make or cause to be made all repairs, replacements, corrections and maintenance items
as are required in the normal and ordinary course of operation of the Hotel and as are required to comply with the Brand Standards. 
  

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 In conjunction therewith, Manager is authorized to make and enter into in the name of, for the account of and at the
expense of Owner all contracts and agreements (all of which must be terminable within thirty (30) days notice unless Owner approves otherwise) as are necessary or advisable in Manager’s opinion for the repair and maintenance of the Hotel.

  
 6.07 Capital Expenditures. 
  
 (a) Owner acknowledges the necessity of making Capital Replacements in the
Hotel, and that replacements of FF&E are only a part of the total Capital Replacement requirements of the Hotel. Owner shall expend such amounts for Capital Replacements as are required in the normal and ordinary course of operation of the Hotel
in accordance with the Brand Standards. At Owner’s election, design and installation of Capital Replacements may be carried out under Manager’s supervision, except that the costs of design, construction management, technical services,
project management and similar project-specific services will be separate and will be Ownership Costs. 
  
 (b) It is acknowledged by the parties that necessary expenditures for Capital Replacements will fluctuate from year to year depending on varying operating
conditions in the Hotel. However, it is anticipated, over the Initial Term and any Renewal Term(s) that capital expenditures for repair and/or replacement of FF&E and interior furnishings of the Hotel will average not less than four percent (4%)
of Gross Revenues. Manager shall pay from the Bank Account in cash in each Fiscal Month beginning in the Fiscal Month commencing immediately after the Effective Date, and continuing for each and every month through June, 2003, two percent (2%) of
Gross Revenues attributable to that month. Thereafter, Manager shall pay from the Bank Account in cash in each Fiscal Month beginning in July, 2003, and continuing for each and every month during the remainder of the Initial Term and any Renewal
Term(s), four percent (4%) of Gross Revenues attributable to that month. Such amount shall be paid into the Reserve Account to 
  

 12 

 pay for the FF&E Replacements in future periods. The amounts so paid into the Reserve Account shall be recorded on
the Hotel’s books of account as “Reserve for FF&E Replacements.” Any expenditures for FF&E Replacements during any Fiscal Year which have been approved in the yearly Capital Replacements Budget may be made without Owner’s
further approval and, to the extent available, may be made by Manager from the Reserve Account (including accrued interest and unused balances from earlier years). Any amounts remaining in the Reserve Account at the close of each Fiscal Year will be
carried forward and retained in the Reserve Account until fully used for FF&E Replacements as herein provided. To the extent funds in the Reserve Account are insufficient at any time or to the extent such funds plus anticipated contributions for
the ensuing year are less than the budget for FF&E Replacements for the ensuing year, Owner shall supply the necessary funds by deposit to the Reserve Account within thirty (30) days of delivery of notice to that effect from Manager. All
proceeds from the sale of items of FF&E no longer needed for the operation of the Hotel will be deposited in the Reserve Account. Sale of such items will be made only pursuant to an approved capital expenditure program as provided in the Yearly
Budget. Upon termination of this Agreement for any reason, except to the extent of contractual commitments made pursuant to a Capital Replacements Budget any balance then remaining in the Reserve Account will be returned to and applied in the same
manner as other funds in the Bank Account. 
  
 (c) In addition to
budgeted expenditures in the Capital Replacements Budget as provided for in Section 6.07(b), Manager shall have the further right, as an Ownership Cost, to make alterations, additions or improvements in or to the Hotel which are beneficial to the
Hotel or its operations but which do not involve structural modifications to the Building; provided, however, that no such alteration, addition or improvement in excess of Twenty-Five Thousand Dollars ($25,000) per Fiscal Year, if not contained in
the Yearly Budget or the Capital Replacements 
  

 13 

 Budget, may be made without Owner’s prior written approval, which approval shall not be unreasonably withheld or
delayed. The amount of Twenty-Five Thousand Dollars ($25,000) per Fiscal Year and may be annually adjusted by Manager with reference to the Consumer Price Index to retain the same purchasing power as at the Effective Date. Expenditures under this
Article 6.07(c) must be paid from the Reserve Account. 
  
 (d) In
the event that a condition should exist in or about the Hotel of an illegal or emergency nature, including structural conditions, which requires immediate repair necessary to protect guests or employees or to preserve and protect the Hotel, or to
maintain its insurance coverage or right to permits and licenses or otherwise to assure its continued operation, Manager, on behalf of and at the expense of Owner, is hereby authorized to take all steps and to make all expenditures necessary to
repair and correct any such condition, regardless of whether provisions have been made in the applicable Yearly Budget for any such expenditures. Upon the occurrence of such an event or condition, Manager will communicate to Owner all available
information regarding such event or condition as soon as reasonably possible and will take reasonable steps to obtain Owner’s approval before incurring such expenses. Expenditures under this Section 6.07(d) shall be paid from the Reserve
Account unless otherwise agreed by Owner and Manager. 
  
 (e) In
the event that at any time during the Initial Term and any Renewal Term(s), repairs to or additions, changes or corrections in the Hotel of any nature are required by reason of any laws, ordinances, rules, regulations or other applicable legal
requirements, or by order of any governmental or municipal power, department, agency, authority or officer, such repairs, additions, changes or corrections shall be made at the direction of Manager and paid for by Owner. Such work shall be
accomplished with as little hindrance as possible to the operation of the Hotel. Expenditures under this Section 6.07(e) shall be paid from the Reserve Account unless otherwise 
  

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 agreed by Owner and Manager. Further, Manager and Owner agree that Manager shall not be required to make such repairs,
additions, changes or corrects and Owner shall not be obligated to pay for such items if Owner in good faith contests such legal requirements and negotiates an alternative settlement with the applicable governmental or municipal authority.

  
 ARTICLE 7 
  
 FISCAL MATTERS 
  
 7.01 Accounting Matters and Fiscal Periods. 
  
 (a) Manager shall maintain books and records reflecting the results of Hotel
operations in accordance with the Accounting Principles. In consideration thereof, Manager shall be paid the Accounting Fee as provided in Article 8. Owner and Manager and their respective independent accounting firms will have the right to examine
such books and records of the Hotel at any reasonable time and to make and retain copies thereof at the requesting party’s expense. 
  
 (b) At Owner’s election but as an Ownership Cost, a certified audit of the Hotel operations may be performed annually, and after the Expiration Date,
by a nationally recognized, independent Certified Public Accounting firm appointed by Owner and approved by Manager, such approval not to be unreasonably withheld or delayed. In the event that Owner elects to have such an audit performed, Owner must
give notice of its election within sixty (60) days after the end of the Fiscal Year, or within sixty (60) days after the Expiration Date of this Agreement, as the case may be. 
  
 (c) On or before the twenty-fifth (25th) day after the close of each Fiscal Month, Manager shall furnish Owner with a
detailed operating statement setting forth the results of Hotel operations with respect to such month. Attached hereto as Exhibit “B” is a form of the operating statement currently utilized by Manager which reflects the results of
the prior month as well as the 
  

 15 

 cumulative Fiscal Year-to-date results of operations. Owner acknowledges that the form of the operating statement may be
modified from time to time by Manager as it determines appropriate for all hotels operated by it. In the event that either no notice of audit is given within 60 days, or no audit is in fact commenced within 120 days after the end of the Fiscal Year,
the year-end operating statement will constitute the final statement for that Fiscal Year, deemed to have been approved by Owner. 
  
 7.02 Yearly Budgets. 
  
 (a) Not less than sixty (60) days prior to the first day of each Fiscal Year after the Effective Date, Manager shall submit to Owner for Owner’s
approval a proposed Yearly Budget including a proposed Capital Replacements Budget for the ensuing full or partial Fiscal Year, as the case may be. Owner’s approval of the Yearly Budget and the Capital Replacements Budget shall not be
unreasonably withheld or delayed and shall be deemed given unless a specific written disapproval thereof (as provided below) is delivered by Owner to Manager within thirty (30) days after submission of such budgets. Manager will, on a monthly basis,
issue periodic forecasts of operating performance to Owner reflecting any significant unanticipated changes, variables or events or describing significant additional unanticipated items of income or expense. Manager will provide Owner with the
material data and information utilized in preparing the Yearly Budget and the Capital Replacements Budget or any revisions thereof. Manager will not be deemed to have made any guaranty, warranty or representation whatsoever in connection with the
Yearly Budget and the Capital Replacements Budget, and Owner acknowledges that the Yearly Budget, including the Capital Replacements Budget are intended only as reasonable estimates of the matters they describe. In administering the Yearly Budget,
Manager may, without Owner’s approval, reallocate, without restriction, budget line items within the same general divisional classification of budget 
  

 16 

 items shown in the Yearly Budget (e.g., rooms, food and other similar or dissimilar categories, as determined in
accordance with the Accounting Principles, and shall not mean the sub-categories such as, for example, linen replacement and uniforms, appearing under a general divisional category) so long as such reallocation does not materially and adversely
affect the purposes for which the original budget line items were intended and so long as Manager provides notice of such reallocation to Owner. Manager is always authorized to make expenditures for taxes, insurance and utilities to reflect actual
costs thereof. With respect to other items, in the event that Manager encounters circumstances which require unbudgeted and unanticipated expenditures not foreseen at the time of preparation of the Yearly Budget and which Manager deems reasonably
necessary, Manager may submit such matters for Owner’s approval, which approval will not be unreasonably withheld or delayed. Expenditures required to complete, or correct deficiencies, in construction, reconstruction or refurbishment of the
Hotel, if undertaken, are Ownership Costs and will not be reflected in the Yearly Budget or the Capital Replacements Budget or paid from the Reserve Account. 
  
 (b) In the event Owner disapproves or raises any objections to the proposed Yearly Budget, or any portion thereof, or any revisions thereto, Owner and
Manager shall cooperate with each other in good faith to resolve the disputed or objectionable items. Any objectionable items in the proposed Yearly Budget or Capital Replacements Budget, or revisions thereto, which Owner disapproves must be
disapproved on a specific line-by-line basis in order to establish which, if any, line items are not acceptable to Owner. In the event Owner and Manager are not able to negotiate and resolve the disputed or objectionable items within a period of
thirty (30) days after the date on which Owner provides written notice of its disapprovals to Manager, either party may submit the disputed items to arbitration before a panel of three (3) arbitrators who will conduct the arbitration 
  

 17 

 proceedings in accordance with the provisions of this Agreement and the rules of the American Arbitration Association.
Unless otherwise mutually agreed by Owner and Manager, the arbitration proceedings will be conducted at the Hotel. All arbitrators appointed by or on behalf of either party shall be persons with recognized expertise in the operation of hotels of
similar size and class as the Hotel. The party desiring arbitration will give written notice to that effect to the other party, specifying in such notice the name, address and professional qualifications of the person designated to act as arbitrator
on its behalf. Within fifteen (15) days after service of such notice, the other party will give written notice to the party desiring such arbitration specifying the name, address and professional qualifications of the person designated to act as
arbitrator on its behalf. The two arbitrators will, within fifteen (15) days thereafter, select a third, neutral arbitrator. As soon as possible after the selection of the third arbitrator, and no later than fifteen (15) days thereafter, the parties
will submit their positions on each disputed item in writing to the three arbitrators. In so submitting their positions, each party shall state only one substantive proposal as a resolution for each disputed item. The arbitrators may not consider
multiple or alternative positions from either party with respect to any disputed budget item. The decision of the arbitrators so chosen shall be given within a period of twenty (20) days after the appointment of such third arbitrator. The
arbitrators must, by majority vote, agree upon and approve the substantive position of either Owner or Manager with respect to each disputed item, and are not authorized to agree upon or impose any other substantive position which has not been
presented to the arbitrators by Manager or Owner. A decision in which any two (2) arbitrators so appointed and acting hereunder concur in writing with respect to each disputed item shall in all cases be binding and conclusive upon Owner and Manager
and a copy of said decision shall be forwarded to the parties. The fees and expenses of the arbitration will be paid by the non-prevailing party. 
  

 18 

 If the party receiving a request for arbitration fails to appoint its arbitrator within the time above
specified, or if the two arbitrators so selected cannot agree on the selection of the third arbitrator within the time above specified, then either party, on behalf of both parties, may request such appointment of such second or third arbitrator, as
the case may be, by application to any judge of any court in the jurisdiction where the Hotel is located which has original jurisdictional authority over contractual disputes involving a claim equal to the disputed budget item upon ten (10) days
prior written notice to the other party of such intent. 
  
 In the
event Owner and Manager are not able to resolve the disputed or objectionable matters raised by Owner in regard to a Yearly Budget prior to the commencement of the applicable Fiscal Year, either voluntarily or by means of arbitration, Manager is
authorized to operate the Hotel in accordance with the proposed Yearly Budget; provided, however, that as for disputed budget items, Manager may not expend more than the previous year’s budgeted amount for such item (if any), increased by a
percentage equal to the increase in the Consumer Price Index during the last year. For purposes of this section, “increase in the Consumer Price Index during the last year” shall mean the percentage increase in the Consumer Price Index for
the 12-month period ending immediately prior to the date of submission of the Yearly Budget during the calendar year which began during the Fiscal Year which is in dispute. 
  
 7.03 Bank Accounts. 
  
 (a) The revenues of the Hotel shall be deposited into one or more Bank Account(s) established by Manager in Owner’s name at such banks as Manager
shall determine. The Bank Accounts will be separate and distinct from any other accounts, reserves or deposits required by this Agreement, and Manager’s designees who are included in the coverage of any required fidelity or similar insurance
will be the only parties authorized to draw upon any Bank Account; provided, 
  

 19 

 however, such designees shall only be authorized to draw upon a Bank Account for purposes authorized by the terms of this
Agreement. Within one (1) business day of the Effective Date, Owner shall deposit in the Bank Accounts designated by Manager the sum of Three Hundred Fifteen Thousand and No/100 Dollars ($315,000.00), as the minimum working capital for the Hotel.
Such amount is based upon the purchasing power of money at the Effective Date and shall be annually increased or decreased with reference to increase or decrease in the Consumer Price Index in order to retain the same purchasing power. This amount
as adjusted shall be the “Target Bank Balance” to be maintained by Owner during the remainder of the Initial Term and any Renewal Term(s). The Target Bank Balance will serve as working capital for Hotel operations and any interest earned
on the Target Bank Balance shall belong to the Hotel. It is acknowledged by Manager and Owner that the Target Bank Balance will fluctuate during each Fiscal Month and that Manager shall have no obligation to fund any deficiency in the Target Bank
Balance. Owner shall, within seven (7) days of receiving written notice from Manager that the actual working capital balance is more than ten percent (10%) less than the Target Bank Balance, furnish Manager with, or Manager may retain from amounts
otherwise distributable to or on behalf of Owner on a monthly basis if available, sufficient funds to make up any deficiency in the Target Bank Balance. Owner acknowledges that the Target Bank Balance will be administered by Manager on a
consolidated basis across the portfolio of hotels owned by Owner and listed on Exhibit “D” attached hereto. Notwithstanding the provisions of this Section 7.03(a) and Section 9.02 to the contrary, Owner and Manager agree that the
obligation of Owner to fund deficits in the Target Bank Balance and the obligation of Manager to disburse excess funds above the Target Bank Balance shall be determined on a consolidated basis for all such hotels. 
  
 (b) Manager shall have exclusive control of the Bank Accounts. Nothing
contained 
  

 20 

 herein is to be construed as preventing Manager from maintaining separate payroll accounts or petty cash funds and making
payments therefrom as the same may be customary in the hotel business or the Brand Standards. Further, Manager shall have the right to consolidate the Bank Accounts for the Hotel with the bank accounts of any other hotels owned by Owner and managed
by Manager as Manager determines in its sole discretion. Manager shall not have the right to consolidate the Bank Accounts with any other hotels managed by Manager that are not owned by Owner. Manager shall reconcile the Bank Accounts on a monthly
basis and shall provide copies of the Bank Account statements and reconciliation worksheets to Owner with the monthly operating statement provided under Section 7.01(c) of this Agreement. 
  
 ARTICLE 8 
  
 FEES TO MANAGER 
  
 8.01 Management Fees. As consideration for the management and operation of the Hotel by Manager and for such other services as are provided by
Manager as required in this Agreement, Manager shall have the right to withdraw from the Bank Account and pay itself a Base Management Fee and an Incentive Management Fee as follows: 
  
 (a) A Base Management Fee equal to three percent (3%) of Adjusted Gross Revenues in each Fiscal Year during the Initial Term
and any Renewal Term(s), inclusive of the Accounting Fee described in Section 8.02 below. The Base Management Fee for the immediately preceding Fiscal Month shall be paid to Manager by the 15th day of the next succeeding Fiscal Month. The Base
Management Fee for any period less than a full 12-month Fiscal Year shall be paid on the basis of Adjusted Gross Revenues in that period. 
  
 (b) The Incentive Management Fee for the period from the Effective Date through December 31, 2003, shall be equal to twenty-five percent (25%) of the
amount, if any, by which the 
  

 21 

 Hotel’s actual Gross Operating Profit exceeds the Hotel’s budgeted Gross Operating Profit as determined
pursuant to the Yearly Budget. The Incentive Management Fee for the period commencing January 1, 2004, and continuing through the Initial Term and any Renewal Term(s) shall be equal to twenty-five percent (25%) of the amount, if any, by which the
Hotel’s actual Gross Operating Profit in each Fiscal Year exceeds the Hotel’s actual Gross Operating Profit for Fiscal Year 2003 (adjusted annually by a percentage equal to the percentage increase or decrease in the Consumer Price Index
from the prior Fiscal Year). The Incentive Management Fee for the immediately preceding Fiscal quarter shall be paid on an estimated basis to Manager by the 15th day of the next succeeding Fiscal Month. The Incentive Management Fee for each Fiscal Year shall be finally determined and adjusted after receipt of year end financial statements from Manager, and
upon such final determination and adjustment, Manager shall either (x) repay to Owner any overage (by redepositing the amount of such overage into the Bank Account) or (y) withdraw from the Bank Account any underpayment of Incentive Management Fee
for such Fiscal Year, as applicable. The Incentive Management Fee for any Fiscal Year which is a partial year shall be calculated by prorating the Incentive Management Fee on the basis of the elapsed portion of the current Fiscal Year. 

 
 8.02 Accounting Fee. In consideration of certain other mandatory
services related to the Brand provided by Manager and/or its affiliates, Manager shall have the right to withdraw from the Bank Account and pay itself an Accounting Fee equal to Fifteen Dollars ($15.00) per room for each Fiscal Month or part thereof
during the Initial Term and any Renewal Term(s), subject to adjustment from time to time on an area-wide basis within the Brand. The Accounting Fee for the immediately preceding Fiscal Month shall be paid to Manager by the 15th day of the next succeeding Fiscal Month. 
  

 22 

 8.03 Termination Fee. In the event that Manager’s services are terminated under this
Agreement upon mutual consent or for any reason other than a final determination through an arbitration proceeding conducted in accordance with Section 7.02(b) of this Agreement that Manager is subject to termination with cause for an Event of
Default (in which case no Termination Fee will be due to Manager), then Manager shall be entitled to a termination fee equal to the total of the Base Management Fee and the Incentive Management Fee earned for the most recent full Fiscal Year at the
time of such termination (the “Termination Fee”). In addition to the Termination Fee described above, Owner must pay to Manager any and all amounts due to Manager under this Agreement on the effective date of any such termination,
including, without limitation, the unamortized portion of the Enhancement due under Section 4.01 of this Agreement. Owner shall have the right to terminate this Agreement without cause upon thirty (30) days prior written notice to Manager and
payment to Manager of the Termination Fee and all other amounts due to Manager under this Agreement on the effective date of such termination, including, without limitation, the unamortized portion of the Enhancement due under Section 4.01 of this
Agreement. 
  
 ARTICLE 9 
  
 DISBURSEMENTS 
  
 9.01 Priority of Disbursements. As and when received by Manager or
the Hotel, all Gross Revenues shall be deposited into a Bank Account created pursuant to the requirements of Section 7.03. Manager shall in turn disburse on a monthly basis, for and on behalf of Owner, funds from such account in the following order
of priority and to the extent available: 
  

	 	(a)	the Base Management Fee, the Accounting Fee, the fees due under the License Agreement, and all reimbursements due Manager under this Agreement; 

  

	 	(b)	all Operating Costs other than those described in subparagraph (a) above; 

  

 23 

	 	(c)	Disbursements to Owner, from which the following Ownership Costs will be paid directly by Owner: 

  

	 	(i)	Debt Service on any Authorized Mortgage; 

  

	 	(ii)	real property taxes and assessments; 

  

	 	(iii)	fire and extended coverage insurance premiums; 

  

	 	(iv)	rental pursuant to an approved ground lease, if any, or any other lease payments approved by Manager; 

  

	 	(d)	expenditures under Section 6.07, including those for Capital Replacements; 

  

	 	(e)	contributions to the Reserve Account. 

  
 Any Incentive Management Fee due and payable to Manager will be paid to Manager from one of the Bank Accounts on a quarterly basis as set forth in Section
8.01(b) above; provided, however, the payment of the Incentive Management Fee shall be subordinate to the payment of Debt Service on any Authorized Mortgage and to the extent there is insufficient funds to pay the Incentive Management Fee when due,
such Incentive Management Fee will accrue and become a priority payment after payment of Debt Service in succeeding Fiscal Months. 
  
 Notwithstanding the foregoing priority of disbursements, Manager agrees that Owner shall have the right to defer and accrue items described under
subsection (d) and subsection (e) above for up to two (2) months per Fiscal Year in order to accommodate the seasonal nature of the Hotel’s business; provided, however, that all such deferred and accrued amounts must be fully funded by the end
of each Fiscal Year, all as to be agreed by Owner and Manager as part of the Yearly Budget. If all such deferred and accrued amounts are not fully funded by the end of the Fiscal Year, Manager shall have the right to fully fund the deficit before
making the disbursement set forth in Section 9.02 at the end of each Fiscal Year. 
  

 24 

 9.02 Adjustment to Bank Accounts. After the disbursements pursuant to Section 9.01 (including
reasonable provisions for periodic disbursements not made on a monthly basis), any excess funds remaining in the Bank Account into which Gross Revenues are so deposited over the Target Bank Balance will then be disbursed to Owner on or before the
20th day of each month. Accordingly, any deficiency or projected shortfall in the Bank Accounts shall promptly be funded by Owner as required in Section 7.03(a). Notwithstanding that Manager is authorized to and will make the disbursements described
above in the order set forth and to the extent funds are available, Owner is ultimately solely liable for all Operating Costs and Ownership Costs. Owner shall at all times promptly make available, to the extent not provided by the Gross Revenue of
the Hotel, the necessary funds to enable Manager to operate the Hotel as contemplated in this Agreement. Manager shall have no responsibility to incur obligations for or on account of the Hotel or to perform services requiring Manager to incur or
pay obligations of the Hotel unless Manager is reasonably assured that funds to discharge such obligations will be available as the amounts come due. 
  
 ARTICLE 10 
  
 CERTAIN OTHER SERVICES 
  
 10.01 Optional Services. Owner acknowledges that Manager and its affiliates sometimes provide separate, optional services which may relate to the Hotel in addition to those which are encompassed by this
Agreement, such as, by way of example, construction project management or technical services including design, architectural, engineering, auditing and estimating services. Owner agrees to consider in good faith any proposals presented to it by
Manager or any of Manager’s affiliates for such additional services relative to the Hotel; it being understood, however that this Section shall in no event be construed to require Owner to accept any such proposals. 
  

 25 

 10.02 Purchasing. In making purchasing decisions with respect to products and service used in the
operation of the Hotel, Manager will exercise reasonable business judgment in accordance with the standards in this Agreement generally applicable to management of the Hotel. Manager will act in a manner that enables Owner and the Hotel to gain the
same benefits with respect to purchasing as are made available to other hotels of the same category as the Hotel which hotels are owned or operated by Manager of its affiliates. In the aggregate of all purchasing decisions Manager will give
consideration to relevant competitive standards and practices among potential suppliers, taking into account the same price, quality, service and other considerations which would be applied to a supplier unrelated to Manager, and will confirm that
the hotel is not being charged amounts in excess of the amount which would be charged to a similarly situated hotel owned or operated by Manager. 
  
 Owner acknowledges that Manager, an affiliate of Manager, or an entity in which Manager has an interest, purchases or provides various goods and services
used in the operation of the Hotel, and that in such instances, Manager or the related entity sets charges for such goods and services (which may include recovery of costs as well as profit). In addition, Owner acknowledges that Manager or entities
related to it may receive rebates, allowances or similar kinds of payments in connection with purchasing activities. Owner agrees that, so long as Manager is acting in accordance with the standards described above, it may make such purchases unless
otherwise instructed by Owner in writing. Within thirty (30) days of written request by Owner, Manager will provide Owner with pricing comparison information for such goods and services that Manager has in its possession. 
  
 Owner may cancel the foregoing authorization and remove the Hotel from
participation in 
  

 26 

 Manager’s purchasing programs provided (i) Owner has given Manager sixty (60) days advance written notice of its
intent to do so, and (ii) Owner has, at least thirty (30) days in advance, arranged for an alternative, comprehensive purchasing program which is sufficient, in Manager’s reasonable business judgment, to meet all of the Hotel’s
requirements for the purchase of goods and services. 
  
 ARTICLE
11 
  
 SIGNS AND SERVICE MARKS 
  
 11.01 Intentionally Omitted. 
  
 11.02 System Marks. It is understood and agreed by Owner that the
name Holiday Inn and all System Marks are the exclusive property of Manager or its Affiliates. Owner agrees and acknowledges the exclusive right of ownership of Manager and its Affiliates to the System Marks and the Reservation System. Owner hereby
disclaims any right or interest therein, regardless of the legal protection afforded thereto. Unless the License Agreement remains in full force and effect, in the event of termination or cancellation of this Agreement, whether as a result of a
default by Manager or otherwise, Owner shall not hold itself out as, or operate the Hotel as, a Holiday Inn hotel, and will immediately cease using the name Holiday Inn, and all other System Marks in connection with the name or operation of the
Hotel as of the Expiration Date. Manager will then have the right to enter the Hotel and to remove all signs, furnishings, printed material, emblems, slogans or other distinguishing characteristics which are now or hereafter may be connected or
identified with the Reservation System. Owner shall not use any System Marks or any part, combination or variation thereof in the name of any partnership, corporation or other business entity, nor allow the use thereof by others. Owner shall not
make, or allow others to make, reference to any System Marks, or any combination or variation thereof, directly or indirectly, in connection with Owner’s participation in a public sale of securities or other comparable means of financing
without the prior written consent of Manager or its affiliate as applicable, which may be withheld in its sole discretion. 
  

 27 

 11.03 System Mark Litigation. In the event the Hotel, Owner or Manager is the subject of any
litigation or action brought by any party seeking to claim rights in or to restrain the use of any System Mark used by Manager in connection with the Hotel, then any such litigation or action will be defended entirely by and at the expense of
Manager, notwithstanding that Manager may or may not be named as a party thereto. The Owner shall not have the right to bring suit against any user of any System Mark with respect to the System Mark. In all cases the conduct of any suit whether
brought by Manager or instituted against Owner and/or Manager shall be under the absolute control of counsel to be nominated and retained by Manager notwithstanding that Manager may not be a party to such suit. Manager shall hold Owner harmless from
and indemnify Owner against any amounts voluntarily paid in connection with a settlement and any judgments or awards of any court or administrative agency of competent jurisdiction, whether such awards be in the form of damages, costs or otherwise
which Owner is required to pay as a result of Manager using any of its System Marks as the name of or in connection with the operation of the Hotel in accordance with the terms of this Agreement. 
  

 28 

 ARTICLE 12 
  
 INSURANCE 
  
 12.01 Insurance Coverage. Owner agrees to procure and maintain, at its expense and at all times during the Initial Term and any Renewal Term(s),
reasonable and adequate amounts of casualty, liability and other usual and customary types of insurance, including, but not limited to, the minimum insurance coverages set forth in Exhibit “C” attached hereto. Owner acknowledges and
agrees that Manager has not made any representations or warranties regarding the adequacy of 
 the insurance coverages set forth in Exhibit
“C” to Owner or Owner’s shareholders, partners, members, agents, or employees. Manager agrees to procure and maintain the insurance coverages set forth in Exhibit “C-1” attached hereto. 
  
 12.02 Insurance Policies. 
  
 (a) All insurance provided for under this Article 12 must be effected by
policies issued by insurance companies of good reputation and of sound financial responsibility and will be subject to Manager’s reasonable approval. 
  
 (b) Notwithstanding anything herein to the contrary, this Agreement will not be effective until all required insurance coverage has been obtained and
evidence thereof has been furnished to Manager; provided, however, that certificates of insurance will be delivered to Manager within thirty (30) days after the Effective Date. 
  
 (c) All insurance policies shall be issued in the name of Owner with Manager being named as an additional insured.

  
 (d) Subject to the rights of a mortgagee under any Authorized
Mortgage, all insurance policies shall be endorsed specifically to provide that the proceeds of any building, contents, crime or business interruption losses will be payable to Owner and Manager jointly, as their interests may appear as
“owner” or “manager.” All such policies of insurance shall also be endorsed specifically to provide that such policies may not be canceled or materially changed without at least thirty (30) days’ prior written notice to
Owner and Manager: 
  
 Certificates of insurance for Manager will
be sent to: 
  

					
	 	 	 Six Continents Resources, Inc.
	 	 
	 	 	 c/o Six Continents Hotels, Inc.
	 	 
	 	 	 Risk Management Department
	 	 
	 	 	 Three Ravinia Drive
	 	 
	 	 	 Suite 2900
	 	 
	 	 	 Atlanta, Georgia 30346-2149
	 	 
	 	 	 Attn: Risk Manager
	 	 

  

 29 

 ARTICLE 13 
  
 INDEMNITY AND RELATED MATTERS 
  
 13.01 Scope. 
  
 (a) Subject to Section 13.01(c) of this Agreement, Owner shall indemnify and hold Manager free and harmless from any liability for injury to persons or
damage to property by reason of any cause, arising out of or related in any way to the performance of this Agreement by Manager, its agents, employees or independent contractors, either in the Hotel or elsewhere, irrespective of whether negligence
on the part of Manager, its agents, employees or independent contractors is alleged. 
  
 (b) Subject to Section 13.01(c) of this Agreement, Owner shall reimburse Manager upon demand for any money or other property which Manager is required to pay out for any reason whatsoever related to Manager’s
performance under this Agreement, whether the payment is for Operating Costs or Ownership Costs or any other costs, charges or debts incurred or assumed by Manager, or any other party, or for judgments, settlements or expenses in defense of any
claim, civil or criminal action, proceeding, charge or prosecution made, instituted or maintained against Manager or Owner jointly or severally, affecting or because of the condition or use of the Hotel, or acts or failure to act of Manager,
employees, agents or independent contractors of Manager, Owner, employees, agents or independent contractors of Owner, or arising out of or based upon any law, regulation, requirement, contract or award relating to the hours of employment, working
conditions, wages and/or compensation of employees or former employees of Owner, or for any other cause in connection with the Hotel, unless such payment is a matter for which Manager is obligated to indemnify Owner under the terms of this
Agreement. 
  

 30 

 (c) Notwithstanding the foregoing, Owner shall not be liable to indemnify and hold Manager harmless from
any such liability which is finally determined by a judgment in litigation to result from the gross negligence or willful misconduct of Manager. Manager shall indemnify and hold Owner free and harmless from any liability for injury to persons or
damage to property arising out of the gross negligence, willful misconduct, or fraudulent activities of Manager, its agents, employees or independent contractors in connection with Manager’s performance or non-performance under the terms of
this Agreement. 
  
 13.02 Defense. Except as provided in
Section 13.01(c) of this Agreement, Owner shall defend, promptly and diligently at Owner’s expense, any claim, action or proceeding brought against Manager or Owner jointly or severally arising out of or connected with any of the matters
referred to in Section 13.01(a) or 13.01(b), and hold Manager harmless and fully indemnify Manager from any judgment, liability, loss or settlement on account thereof. 
  
 13.03 Waiver of Subrogation. To the fullest extent permitted by law, Owner hereby waives any and all right of
subrogation and right of recovery or cause of action, and agrees to release the Manager from liability, for loss or damage to the extent such loss or damage is covered by valid and collectible insurance in effect at the time of such loss or damage
(or which would have been covered if Owner was carrying the insurance required by this Agreement). Said waivers are in addition to, and not in limitation or derogation of, any other waiver or release contained in this Agreement. Written notice of
the terms of the above waivers shall be given to the insurance carriers of Owner and the insurance policies shall be properly endorsed, if necessary, to prevent the invalidation of said policies by reason of such waivers. Owner shall require
inclusion in all policies of property insurance, general liability insurance and all other forms of insurance required by the terms of this Agreement a waiver by the insurer of all right of subrogation against Manager in connection with any loss or
damage thereby insured against. 
  

 31 

 ARTICLE 14 
  
 DAMAGE TO AND DESTRUCTION OF THE HOTEL 
  
 14.01 Obligation to Restore. At its cost, Owner agrees, subject to the provisions of this Article 14 and to the terms
of any Authorized Mortgage then in effect, to repair, restore, rebuild or replace any damage to, or impairment or destruction of, the Hotel from fire or other casualty. If Owner fails to undertake such work within one hundred twenty (120) days after
the fire or other casualty, or fails to complete the same diligently, Manager may, but will not be obligated to, undertake or complete such work for the account of Owner and will be entitled to be repaid therefor with reasonable interest, and all
the proceeds of any insurance covering such loss or other casualty will be payable to Manager for that purpose. 
  
 14.02 Termination Option. In the event the Building is destroyed or substantially destroyed (over seventy percent (70%) of the Building affected)
during the Initial Term or any Renewal Terms by fire or other casualty, Owner shall have the right not to repair, restore, rebuild or replace the Building and in such event, Owner will have the right, upon notice served to Manager within sixty (60)
days after such fire or other casualty, to terminate this Agreement. In the event Owner exercises the foregoing termination right, Owner shall pay Manager the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized
portion of the Enhancement. If Owner does not elect to terminate this Agreement, Owner agrees, at its cost, to repair, restore, rebuild or replace such damage, impairment or destruction. If Owner fails to undertake such work within one hundred
twenty (120) days after the fire or other casualty or fails to complete the same diligently, Manager, without prejudice to its rights to repair, restore, rebuild or replace such damage, impairment or destruction for and on behalf of Owner and its
rights and remedies upon 
  

 32 

 undertaking any such work provided for in this Article 14, may, at its election, terminate this Agreement upon delivery
of thirty (30) days written notice to Owner, and in addition to any other sums due to Manager from Owner, Owner shall pay Manager the Termination Fee, together with the unamortized portion of the Enhancement. 
  
 ARTICLE 15 
  
 CONDEMNATION 
  
 15.01 Termination. If the whole of the Hotel is taken or condemned in
any eminent domain, condemnation, compulsory acquisition or like proceeding by any competent authority for any public or quasi-public use or purpose, or if such a portion thereof is taken or condemned as to make it imprudent or unreasonable, in
Manager’s opinion, to use the remaining portion as a hotel of the type and class immediately contemplated by this Agreement, then in either of such events this Agreement shall terminate as of the date of such taking or condemnation, but any
award for such taking or condemnation shall, after deduction of any fees, payments or reimbursements then due Manager (including the Termination Fee set forth in Section 8.03 of this Agreement and the unamortized portion of the Enhancement) and any
sums required to be paid to the mortgagee under any Authorized Mortgage, be paid to Owner. 
  
 15.02 Restoration and Continuation. If only a part of the Hotel is taken or condemned and the taking or condemnation of such part does not make it unreasonable or imprudent, in Owner and Manager’s
reasonable opinion, to operate the remainder as a hotel of the type and class contemplated by this Agreement, this Agreement will not terminate. However, out of any award to Owner, so much thereof as shall be reasonably necessary to alter or modify
the Hotel, or any part thereof, or to repair any damage so as to render the Hotel a complete and satisfactory architectural unit as a hotel of the same type and class as it is contemplated by this Agreement shall be employed 
  

 33 

 by Owner or otherwise made available to Manager for that purpose. The balance of the award, after deduction of the sum
necessary for restoration, shall be fairly and equitably apportioned between Owner and Manager so as to compensate Manager for any loss of income resulting or to result from the taking or condemnation. Notwithstanding the foregoing, should the
Building be substantially taken or condemned (over seventy percent (70%) of the Building affected), Owner shall have the right not to repair, restore, modify or alter the Building and in such event, Owner will have the right, upon notice served to
Manager within sixty (60) days after the date of such condemnation, to terminate this Agreement. In the event Owner exercises the foregoing termination right, Owner shall pay Manager the Termination Fee set forth in Section 8.03 of this Agreement,
together with the unamortized portion of the Enhancement. 
  
 ARTICLE 16 
  
 DEFAULT AND TERMINATION

  
 16.01 Events of Default. Subject to the provisions of
Article 22, it will be an event of default hereunder if any one or more of the following occurs (“Event of Default”): 
  
 (a) The breach, default or non-compliance in any material respect by either party with any covenants, obligations or agreements to be performed by such
party under this Agreement, followed by written notice of such breach, default or non-compliance from the other party to the breaching or defaulting party (and to the mortgagee or mortgagees under any Authorized Mortgage if Owner is the defaulting
party) and failure of such defaulting party (or such mortgagee if Owner is the defaulting party) to remedy or correct such breach, default or non-compliance within thirty (30) days after receipt of such notice. If the breach, default or
non-compliance is other than for the payment of money and is also of a nature that it cannot reasonably be cured within such thirty (30) day period, then the defaulting party will not be considered to be in default, and an Event of Default

  

 34 

 will not be deemed to have occurred, so long as the defaulting party commences and diligently pursues a cure of such
default within such thirty (30) day period and continues to pursue a cure to completion with diligence and continuity; or 
  
 (b) If an event of default occurs under the License Agreement and continues beyond applicable notice and cure periods; or 
  
 (c) If: (i) a party is voluntarily or involuntarily dissolved; applies for or
consents to the appointment of a receiver, trustee or liquidator of all or a substantial part of its assets; files a voluntary petition in bankruptcy (or has filed against it an involuntary petition in bankruptcy which has not been dismissed within
sixty (60) days after filing) or otherwise voluntarily avails itself of any federal or state laws for the relief of debtors; admits in writing its inability to pay its debts as they become due; makes a general assignment for the benefit of
creditors; files a petition (or has filed against it any such petition which has not been dismissed within sixty (60) days after filing) or an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law; or
files an answer admitting the material allegations of any petition filed against it in any bankruptcy, reorganization or insolvency proceeding; or (ii) an order, judgment or decree is entered by any court of competent jurisdiction, on the
application of any one or more creditors of such party, adjudicating such party to be bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee or liquidator of all or a substantial part of its assets,
and such order, judgment or decree becomes final; or (iii) a party is directly or indirectly owned or controlled by another company or entity and an event described in sub-sections (b)(i) or (ii) occurs with respect to any company or entity owning
or controlling such party; or (iv) if Owner conveys title to the Hotel or any part thereof in lieu of foreclosure of any security interest in the Hotel or if an action to foreclose any security interest in the Hotel or any part thereof is instituted
against Owner and is not dismissed within sixty (60) days thereafter. 
  

 35 

 16.02 Default Termination. 
  
 (a) If an Event of Default occurs and has not been cured within the cure period described above, this Agreement shall
terminate at the election of the Non-Defaulting Party. Notice of termination pursuant to this Article 16 may be given by the Non-Defaulting Party to the Defaulting Party at any time prior to the curing of such Event of Default, and such termination
shall be effective as of the date specified in such notice of termination, which date shall be not less than thirty (30) and not more than one hundred twenty (120) days after the date of such notice. 
  
 (b) Unless the License Agreement remains in full force and effect, Owner will
have no right from and after the date of termination of this Agreement to use the System Marks or to operate the Hotel as a Holiday Inn hotel. Further, Owner will have no right whatsoever from and after the date of termination to make use of or to
dispose of any Furnishings and Equipment, Operating Equipment and Operating Supplies bearing or incorporating any System Marks of Manager except upon and in accordance with the terms and provisions of this Section 16.02. Specifically, it is
understood and agreed that Owner may not make any use of such property from and after such effective date unless Owner is specifically authorized in writing (whether under license from Manager or otherwise, but other than by this Agreement) to use
property bearing any System Marks of Manager, nor may Owner dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Manager (whether under license from Manager or otherwise)
to use property bearing or incorporating any System Marks of Manager. 
  
 (c) If this Agreement is terminated by either Owner or Manager for any reason, then Owner will immediately pay to Manager all amounts due and owing under this Agreement through the effective date of such termination including any applicable
termination fees or damages. 
  

 36 

 (d) The waiver by any party of any one Event of Default will not be construed as a waiver by that party
of any other Event of Default. 
  
 (e) The terms of this Agreement
shall not be deemed to impair the right of any party to exercise any other right or remedy it may have at law or equity, whether for damages, injunction, specific performance or otherwise, upon any breach or termination hereof. 
  
 16.03 Post Termination Obligations. Upon expiration or termination of
this Agreement for any reason, Owner and Manager shall proceed as follows: 
  
 (a) Within sixty (60) days following the effective date of such expiration or termination, Manager will prepare and submit to Owner a final accounting of the results of Hotel operations and all accounts between Owner
and Manager through the effective date of such expiration or termination. Said final accounting will promptly be submitted by Manager to Owner for its approval. Owner shall not unreasonably withhold or delay its approval of the final accounting.

  
 (b) Within thirty (30) days following its receipt of the final
accounting, Owner will either notify Manager that Owner has approved the final accounting or will provide Manager a written statement of Owner’s disapproval, together with an explanation of the specific reasons for such disapproval in such
reasonable detail as will allow Manager to respond to or address Owner’s concerns. Failure by Owner to timely respond to the final accounting will be deemed Owner’s approval of the same. 
  
 (d) Once the final accounting has been approved or deemed approved by any of
the methods described above, Owner shall pay to Manager all remaining amounts owed to Manager shown by such final accounting no later than thirty (30) days from approval or deemed approval of the final accounting (or, if the final accounting shows
Manager has received an overpayment previously, then Manager shall pay to Owner the amounts owed to Owner as shown by the final accounting no later than thirty (30) days from the approval or deemed approval of the final accounting), and any funds
remaining in the Bank Account will be paid to Owner. 
  

 37 

 (e) On the effective date of such expiration or termination, Manager will promptly deliver to Owner all
books and records of the Hotel, provided that Manager may retain copies of any of the same for Manager’s records. Manager will not be required to deliver to Owner any information or materials (including software, database, manuals and technical
information) which are proprietary property of Manager. Notwithstanding the foregoing, Manager will deliver all information relating to future bookings, sales contracts and other information directly relating to the historic or future operation of
the Hotel. From and after Manager’s delivery of such books and records (including but not limited to purchase orders and purchase invoices) to Owner, Owner will have sole responsibility for (i) maintaining such books and records, (ii)
responding to any inquiries and conducting any audits of any of such books and records (including but not limited to any audit of sales, use, gross receipts, hotel occupancy, property, withholding or similar taxes); provided, however, that Manager
agrees to cooperate with any such inquiries and audits, and (iii) payment of any and all costs associated with any such audit (including but not limited to any interest and penalties, unless such penalties are the result of Manager’s negligence
or misconduct, in which case Manager shall be responsible for such penalties). Manager agrees to reasonably cooperate with Owner, at no cost to Manager, to the extent necessary or appropriate for the response to any such inquiry or the conduct of
any such audit. Owner agrees to indemnify and hold Manager harmless from and against any and all loss, cost, liability, damage, claim or expense (including but not limited to reasonable attorney fees and court costs) incurred by Manager, any
Affiliate of Manager or any of their respective officers, directors, agents or representatives in connection with any inquiry or audit described in this Section 16.03(e) except to the extent that such loss, cost, liability, damage, claim or expense
results from Manager’s gross negligence or willful misconduct. 
  

 38 

 (f) On the effective date of such expiration or termination, Manager will deliver possession of the
Hotel, together with any and all keys or other access devices, to Owner, subject to the prior or simultaneous removal from the Hotel of any items of FF&E, Operating Equipment, or other personal property bearing or incorporating the System Marks
(unless the License Agreement remains in full force and effect). In addition, Manager shall provide Owner with information on employee health claims and worker’s compensation history, but will not provide complete copies of employee records.

  
 (g) On the effective date of such expiration or termination
Manager will assign to Owner, and Owner will assume, all booking, reservation, service and operating contracts relating exclusively to the operation of the hotel and entered into in the ordinary course of business by Manager. Owner agrees to
indemnify and hold Manager harmless from liability or other obligations under any such agreements relating to acts or occurrences, including Owner’s failure to perform, on or after the effective date of such assignment. 
  
 (h) Manager will reasonably cooperate with Owner as may be necessary for the
transfer of any and all Hotel licenses and permits to Owner or Owner’s designee; provided, however, such cooperation will be at no cost to Manager. The provisions of this Section 16.03 shall survive the expiration or termination of this
Agreement. 
  
 ARTICLE 17 
  
 NOTICES 
  
 17.01 Procedure. All notices or other communications provided for in this Agreement shall be in writing and
personally served or sent by any internationally recognized express delivery 
  

 39 

 service, or by confirmed facsimile transmission followed immediately by a postage prepaid Registered or Certified Letter
at the following address until such time as written notice, as provided hereby, of a change of address with a new address to be used thereafter is delivered the other party: 
  

			
	 OWNER:
	 	Hotel Venture Limited Partnership
	 	 	c/o Circa Capital Corporation
	 	 	3100 McKinnon, Suite 1080
	 	 	Dallas, Texas 75201
	 	 	Attn: Lamont Meek
	 	 	Facsimile: (214) 954-4160
		
	 MANAGER:
	 	Six Continents Resources, Inc.
	 	 	c/o Six Continents Hotels, Inc.
	 	 	Three Ravinia Drive, Suite 2900
	 	 	Atlanta, Georgia 30346
	 	 	Attn: Vice President of Operations
	 	 	Facsimile: (770) 604-8875
		
	 with a copy to:
	 	Six Continents Resources, Inc.
	 	 	c/o Six Continents Hotels, Inc.
	 	 	Three Ravinia Drive, Suite 2900
	 	 	Atlanta, Georgia 30346
	 	 	Attn: General Counsel - Operations
	 	 	Facsimile: (770) 604-5802

  
 The delivery and receipt of any such
notice will be presumed to have occurred at the address to which it is sent within seventy-two (72) hours, but such presumption will be rebuttable. Upon request, a party shall send copies of any notice or communication by ordinary mail as instructed
by the other party. 
  
 ARTICLE 18 
  
 RELATIONSHIP, AUTHORITY AND FURTHER ACTIONS 
  
 18.01 Relationship. Manager shall be the agent of Owner with a
limited agency solely for the purpose of operating the Hotel and carrying out ordinary and customary transactions for that purpose. Manager shall not be a fiduciary and shall not be held to have fiduciary duties to Owner 
  

 40 

 by virtue of this Agreement. Owner and Manager shall not be construed as joint venturers or partners of each other, and
neither shall have the power to bind or obligate the other except as set forth in this Agreement. Manager shall not constitute a tenant or subtenant of Owner and this Agreement shall not constitute Owner a franchisee of Manager or of any of
Manager’s affiliates. This Agreement shall not create a franchise or a franchisor/franchisee relationship within the meaning of the Federal Trade Commission Act, any rule or regulation promulgated, or any other state or federal law, rule
regulation, administrative or judicial decision. 
  
 18.02
Contractual Authority. Manager is authorized to make, enter into and perform in the name of, for the account of, on behalf of and at the expense of Owner any contracts and agreements deemed necessary in Manager’s commercially reasonable
judgment in order to carry out the terms and conditions of this Agreement; provided, however, that no contract or agreement with a term in excess of one (1) year (unless expressly terminable on thirty (30) days notice), if not included in the Yearly
Budget, may be entered into without Owner’s prior written approval, which approval shall not be unreasonably withheld or delayed. The foregoing dollar amounts are based upon the purchasing power of money at the Effective Date and shall be
periodically adjusted by Manager with reference to the then current Consumer Price Index to retain the same purchasing power. 
  
 18.03 Further Actions. Owner agrees to execute all contracts, agreements and documents and to take all actions necessary to comply with the
provisions of this Agreement and the intent hereof. 
  
 ARTICLE
19 
  
 APPLICABLE LAW 
  
 19.01 Scope. The interpretation, validity and performance of this
Agreement will be 
  

 41 

 governed by the laws of the jurisdiction in which the Hotel is located. In the event any court or competent judicial
authority holds or declares that the law of another jurisdiction is applicable, this Agreement will remain enforceable under the laws of that jurisdiction. If any of the terms and provisions hereof are held invalid or unenforceable for any reason,
such invalidity or unenforceability will in no event affect any of the other terms or provisions hereof, all such other terms and provisions to be valid and enforceable to the fullest extent permitted by law; provided, however, if in any event any
material part of one party’s obligations under this Agreement are declared invalid or unenforceable, the other party will have the option to terminate this Agreement. 
  
 ARTICLE 20 
  
 SUCCESSORS AND ASSIGNS 
  
 20.01 Assignment by Manager. Owner’s consent will not be required for Manager to assign any of its rights or interests as Manager hereunder to
any parent, subsidiary or Affiliate of Manager, provided that any such assignee agrees to be bound by the terms and conditions of this Agreement. Manager may transfer this Agreement and its rights hereunder to a successor by merger or otherwise by
law, provided that such successor acquires all of Manager’s rights in the use of the Brand and the System Marks and the right to participate in the benefits of the Brand Standards and the Reservation System. 
  
 20.02 Assignment pursuant to an Authorized Mortgage. Owner may assign
its interest in the Agreement together with all of its interest in the Hotel to a mortgagee who is a recognized institutional source of hotel loans and holds in its own name (whether or not participated with others) an Authorized Mortgage. An
“Authorized Mortgage” is defined to mean a first priority mortgage, pledge or encumbrance of or other form of security interest in the assets constituting the Hotel which provides, at a minimum, that (i) such mortgage, pledge, encumbrance
or security 
  

 42 

 interest shall contain terms which are reasonable and customary in similar transactions; (ii) the lien shall not be
cross-collateralized outside of the pool of hotels listed on Exhibit “D” or the obligation cross-defaulted with any other obligation, (iii) if the loan secured by such encumbrance is made after completion of construction of the
Hotel, at the time the lien is first attached the loan does not require a debt service coverage ratio of 1.3:1, nor allow a loan-to-value ratio of greater than eighty percent (80%); (iv) this Agreement shall not be subject to forfeiture or
termination in the event of a default or foreclosure under such mortgage, pledge, encumbrance or security interest; and (vi) in the event of default, foreclosure or the exercise of any remedy available to the mortgagee thereunder, this Agreement and
Manager’s rights hereunder, including Manager’s right to manage and operate the Hotel as a Holiday Inn hotel, may not be disturbed. The foregoing shall be applicable both to original financing and to any refinancing. 
  
 20.03 Assignment by Owner. Owner may not assign (or permit the
assignment of) any of Owner’s interest in this Agreement or in any manner, either directly or indirectly, partition (or seek the partition of), sell, assign or transfer any of its rights or interests in the Hotel or permit (except by testate or
intestate succession) a change in a fifty percent (50%) or more equity or profit sharing interest in Owner, without the prior written consent (which consent shall not be unreasonably withheld or delayed) of Manager. If at any time after the
Effective Date hereof, without the prior written consent of Manager, (a) a change of fifty percent (50%) or more equity or profit sharing interest in Owner occurs (except by testate or intestate succession), (b) Owner or any other party partitions
(or seeks the partition of), sells, transfers or assigns the whole or any part of its interest(s) in the Hotel or any of Owner’s interest in this Agreement or (c) any mortgage, pledge, encumbrance or similar security interest, other than an
Authorized Mortgage, is placed upon the Hotel or any part thereof or interest therein, Manager may elect to terminate this Agreement (which termination will 
  

 43 

 be effective thirty (30) days after Manager’s service upon Owner of written notice of its election to terminate). In
the event this Agreement is terminated (whether by election of Manager or otherwise) due to any of the foregoing causes, Owner shall be obligated to pay to Manager a Termination Fee as provided in Section 8.03, together with the unamortized portion
of the Enhancement. 
  
 20.04 Binding Effect. The terms,
provisions, covenants, undertakings, agreements, obligations and conditions of this Agreement shall be binding upon and shall inure to the benefit of the successors in interest and the assigns of the parties hereto with the same effect as if
mentioned in each instance where the party hereto is named or referred to, except that no assignment, transfer, sale, pledge, encumbrance, mortgage, lease or sublease by or through Owner, as the case may be, in violation of the provisions of this
Agreement shall vest any rights in the assignee, transferee, purchaser, secured party, mortgagee, pledgee, lessee, sublessee or occupant. 
  
 ARTICLE 21 
  
 RECORDING 
  
 21.01 Memorandum of Agreement. Manager and Owner agree that no Memorandum of this Agreement will be recorded in the land records of the State and County where the Hotel is located. 
  
 ARTICLE 22 
  
 FORCE MAJEURE 
  
 22.01 Operation of Hotel. If at any time during the Initial Term and
any Renewal Term(s) hereof it becomes necessary in Manager’s reasonable opinion to cease or alter operations at the Hotel in order to protect the health, safety and welfare of the guests and/or employees of the Hotel, 
  

 44 

 or the Hotel itself, for reasons of force majeure beyond the control of Manager such as, but not limited to, acts of war,
insurrection, civil strife and commotion, labor unrest or acts of God, then in such event Manager may close and cease or alter operation of all or part of the Hotel, reopening and commencing or resuming operation when Manager deems that such may be
done without jeopardy to the Hotel, its guests and employees. 
  
 22.02 Extension of Time. Owner and Manager agree that, with respect to any obligation, other than the payment of money, to be performed by a party during the Initial Term and any Renewal Term(s) of this Agreement, neither party will
be liable for failure so to perform when prevented by any force majeure cause such as strike, lockout, breakdown, accident, order or regulation of or by any governmental authority, failure of supply or inability, by the exercise of reasonable
diligence, to obtain supplies, parts or employees necessary to perform such obligation, or war or other emergency. The time within which such obligation must be performed will be extended for a period of time equivalent to the number of days of
delay from such cause. 
  
 ARTICLE 23 
  
 GENERAL PROVISIONS 
  
 23.01 Authorization. Owner represents that it has full power and
authority to execute this Agreement and to be bound by and perform the terms hereof. Manager represents it has full power and authority to execute this Agreement and to be bound by and perform the terms hereof. On request each party will furnish the
other evidence of such authority. 
  
 23.02 Interest. Any
amount payable to Manager hereunder which is not paid when due shall accrue interest from the date due until paid at the lesser of: (a) the highest legal limit, or (b) two percent (2%) over the prime rate of interest charged by Citibank, New York,
New York, to borrowers on ninety day unsecured commercial loans, as the same may be changed from time to time. 
  

 45 

 23.03 Formalities. Any amendment or modification of this Agreement must be in writing signed by
all parties hereto. This Agreement may be executed in one or more counterparts, each of which will be deemed an original. The captions for each Article are intended for convenience only. 
  
 23.04 Documents. Throughout the Initial Term and any Renewal Term(s) hereof, Owner agrees to furnish Manager copies
of all property tax and insurance statements, all financing documents (including notes and mortgages) relating to the Hotel and such other documents pertaining to the Hotel as Manager may request. 
  
 23.05 Consent. Whenever under this Agreement the consent or approval
of a party is required before the other party may proceed or take certain action, or before an act or proceeding is effective, such consent or approval shall not be unreasonably withheld or delayed. 
  
 23.06 Time. Time is of the essence with respect to this Agreement.

  
 23.07 Attorneys’ Fees. In the event of any
litigation arising out of this Agreement, the prevailing party shall be entitled to reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees. 
  
 23.08 Other Hotels. Manager hereby agrees that sales and marketing information (including but not limited to
advertising strategies) that is proprietary to the Hotel shall not be shared by Manager with any other hotel product that is owned or managed by Manager or its Affiliates in the metropolitan statistical area in which the Hotel is located without
Owner’s prior written approval. 
  

 46 

 ARTICLE 24 
  
 SALE OF HOTEL TO THIRD PARTY; MANAGEMENT AGREEMENT 
  
 24.01 Sale to Third Party 
  
 (a) In the event that Owner consummates the transfer of the Hotel to a third
party purchaser approved by Manager (such approval to be in the exercise of Manager’s reasonable business judgment and underwriting policies) and such third party purchaser elects to retain this Agreement, the third party purchaser shall
execute and deliver to Manager an amendment and restatement of this Agreement confirming all the terms hereof, and assuming all of the obligations of Owner hereunder, including, without limitation, assumption of the unamortized portion of the
Enhancement and the Guaranty, at which time Owner shall have no further liability under this Agreement or the Guaranty. 
  
 (b) In the event that Owner consummates the transfer of the Hotel to a third party purchaser and such third party purchaser elects to terminate this
Agreement, upon the transfer of the Hotel, in addition to any other amounts payable to Manager hereunder, Owner shall pay the Termination Fee set forth in Section 8.03 of this Agreement, together with the unamortized portion of the Enhancement.

  
 ARTICLE 25 
  
 DEFINITIONS 
  
 25.01 Definitions. As used herein the following terms shall have the
meanings provided below: 
  
 (a) Accounting Fee – the
fee paid to Manager pursuant to Section 8.02. 
  
 (b)
Accounting Principles - generally accepted accounting principles and procedures, based on the then current edition of “the Uniform System of Accounts for the Lodging Industry”, published by the Educational Institute of the American
Hotel and Motel Association, as consistently applied by Manager in accounting for the operations at hotels owned, leased and operated, or managed by Manager or its subsidiaries, all as may be amended or modified from time to time by Manager.

  

 47 

 (c) Adjusted Gross Revenues - Gross Revenues less (to the extent such items have been included in
Gross Revenues): (i) gratuities or service charges added to a customer’s bill; (ii) credits or refunds made to customers, guests or patrons; (iii) sums and credits (other than those already excluded from Gross Revenues) received by Owner for
lost or damaged merchandise; (iv) sales taxes, excise taxes, use taxes, gross receipts taxes, admission taxes, entertainment taxes, tourist taxes or charges, and similar charges required by law to be collected from patrons or guests or as part of
the sale price for goods, services or entertainment which must be remitted to governmental authorities; (v) proceeds from the sale or other disposition of the Hotel, Furnishings and Equipment or other assets of the Hotel; (vi) interest paid with
respect to the Reserve Fund or any Bank Accounts; (vii) fire and extended coverage insurance proceeds or other insurance proceeds payable in connection with any property casualty loss; (viii) condemnation awards; and (ix) proceeds of financing or
refinancing of the Hotel. 
  
 (d) Affiliate – any
entity which owns or controls another entity, is owned or controlled by such entity or which is under common ownership or control with such entity is an “affiliate” of such entity, and the two entities are “affiliated entities”;
for purposes of this definition, “ownership” shall include and be limited to 50.1% or more of the equity interest. 
  
 (e) Authorized Mortgage – shall have the meaning provided in Section 20. 
  
 (f) Bank Accounts – one or more bank accounts necessary for the operation of the Hotel established in
Owner’s name at a bank selected by as provided in Section 7.03. 
  
 (g) Base Management Fee – the fee paid to Manager pursuant to Section 8.01(a). 
  
 (h) Brand – the Holiday Inn hotel service marks, the Brand Standards, and all of the attributes and features customarily associated with the
Holiday Inn hotel chain in North America from time to time. 
  

 48 

 (i) Brand Standards – the standards of operation from time to time in effect at substantially
all hotels similar to the Hotel which are operated under the Holiday Inn name, which standard shall include but not be limited to standards of operation from time to time required of owners of similar hotels or may be specified in manuals and other
guidelines provided by the owner of the System Marks or its affiliates. Brand Standards may include changed or upgraded service and equipment standards instituted in future to maintain the Brand’s competitive market position. 
  
 (j) Building - all buildings, structures and improvements now or
hereafter located on the Site, and all fixtures and equipment attached to, forming a part of and necessary for the operation of such buildings, structures and improvements as a hotel (including, without limitation, heating, lighting, sanitary,
air-conditioning, laundry, refrigeration, kitchen, elevator and similar items) having guest sleeping rooms, each with bath, and such (i) restaurants, bars, banquet, meeting and other public areas; (ii) commercial space, including concessions and
shops; (iii) parking facilities and areas; (iv) storage and service areas; (v) recreational facilities and areas; (vi) permanently affixed signage; (vii) public grounds and gardens; and (viii) other facilities and appurtenances, as may hereafter be
attached to and form a part of the Building in accordance with this Agreement 
  
 (k) Capital Replacements – acquisition, installation, and replacement of (i) FF&E, and (ii) capital items as required to maintain the Hotel and comply with Brand Standards. 
  
 (l) Capital Replacements Budget – the annual budget for Capital
Replacements in the Hotel, covering a Fiscal Year, as prepared by Manager and approved by Owner as part of a Yearly Budget. References to Yearly Budget shall be deemed to incorporate the Capital Replacement Budget unless specifically excluded.

  

 49 

 (m) Consumer Price Index – the Consumer Price Index for all Urban Consumers, U.S. City
Average, published by the United States Bureau of Labor Statistics. 
  
 (n) Debt Service – the payments of principal (assuming not more than 20 year amortization by constant payments) and interest required under any Authorized Mortgage. 
  
 (o) Defaulting Party - The party responsible for the occurrence of an Event of Default or on account of whom an Event
of Default has occurred. 
  
 (p) Effective Date – July
1, 2002. 
  
 (q) Event of Default – the occurrence of
any one or more of the events set forth in Article 16.01(a) or (b). 
  
 (r) Expiration Date – June 30, 2012. 
  
 (s)
Fiscal Month - a calendar month. 
  
 (t) Fiscal Year
- twelve calendar months ending December 31 of each year. 
  
 (u)
Furniture, Fixtures and Equipment or FF&E - all furniture, furnishings and equipment (excepting “Operating Equipment” as hereinafter defined) now or hereafter located and installed in or about the Hotel which are used in
the operation thereof as a hotel in accordance with the standards set forth in this Agreement, including, without limitation (i) office furnishings and equipment; (ii) specialized hotel equipment necessary for the operation of any portion of the
Building as a Holiday Inn hotel, including equipment for kitchens, laundries, dry cleaning facilities, bars, restaurants, public rooms, commercial space, parking areas, and recreational facilities; and (iii) all other furnishings and equipment
hereafter located and installed in or about the Building which are used in the operation of the Building as a Holiday Inn hotel in accordance with the standards set forth in this Agreement. 
  
 (v) Gross Operating Profit - the amount, if any, by which Adjusted
Gross Revenues for any period exceed “Operating Costs” for the same period. 
  

 50 

 (w) Gross Revenue - all revenues and income of any nature derived directly or indirectly from the
Hotel or from the use or operation thereof, including without limitation room sales; food and beverage sales; telephone, telegraph, fax and internet revenues; rental or other payments from lessees, subleases, concessionaires and others occupying or
using space or rendering services at the Hotel (but not the gross receipts of such lessees, subleases or concessionaires); interest on the Reserve Account or any Bank Accounts; and the actual cash proceeds of business interruption, use, occupancy or
similar insurance. 
  
 (x) Guaranty – that certain
Guaranty of even date herewith executed by Circa Capital Corporation, the general partner of Owner, for the benefit of Manager and securing the repayment obligations with respect to the Enhancement . 
  
 (y) Hotel - a collective term for the Owner’s interest in the
Site, the Building, the Furniture, Fixtures and Equipment, the Operating Equipment and the Operating Supplies. 
  
 (z) Incentive Management Fee - the fee paid to Manager pursuant to Section 8.01(b). 
  
 (aa) Initial Term – the period of time commencing on the Effective Date and continuing until the Expiration Date
of the Initial Term as provided in Section 2.02. 
  
 (bb)
License Agreement – as defined in Recital C. 
  
 (cc)
Non-Defaulting Party – the party to this Agreement who is not responsible for an Event of Default. 
  
 (dd) Operating Cost(s) - The term “Operating Cost(s)” shall mean and refer to the entire cost and expense of maintaining, operating and
supervising the operation of the Hotel. Operating Costs shall be the sum of such costs and expenses as are normally charged as a cost of operation under the Accounting Principles, including, without limitation: 
  

	 	i.	the cost of Operating Supplies, wages, salaries and employee fringe benefits, advertising and promotional expenses, the cost of personnel training programs, utility and energy
costs, operating licenses and permits, maintenance costs, and equipment rentals; 

  

 51 

	 	ii.	all expenditures made for maintenance and repairs to keep the Hotel in good condition and repair; 

  

	 	iii.	premiums for Workers’ Compensation Insurance, Employment Practices Liability Insurance and Comprehensive General Liability Insurance (including Automobile or Liquor Liability);

  

	 	iv.	the Base Management Fee; and 

  

	 	v.	the Accounting Fee payable to Manager as provided in Section 8.02 and all reimbursements due Manager. 

  
 (ee) Operating Equipment - non-consumable equipment and supplies required for the operation of the Hotel, including
chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies. 
  
 (ff) Operating Supplies - food and beverages and other consumable items used in the operation of a hotel, such as fuel, soap, cleaning materials,
matches, stationery, brochures, folios and all other items used in the routine operation of the Hotel which are consumable by nature. 
  
 (gg) Ownership Costs - all costs of operating or owning the Hotel other than those which are within the definition of Operating Costs, including,
without limitation: 
  

	 	i.	depreciation of the Building, Furniture, Fixtures and Equipment and Operating Equipment; 

  

	 	ii.	rental payments pursuant to a ground lease, if any, or any other equipment lease or lease financial arrangement; 

  

 52 

	 	iii.	amounts due for Debt Service or any other amounts coming due on any mortgage or other debt related to the Hotel; property taxes and assessments; expenditures under Section 6.07,
including those for Capital Replacements; 

  

	 	iv.	audit, legal and other professional or special fees not normally chargeable to the Hotel under the Accounting Principles, including but not limited to any of such fees incurred in
connection with the handling of inquiries, assessments and audits of sales, use, gross receipts, hotel occupancy, property, withholding or similar taxes; 

  

	 	v.	real estate taxes and assessments and personal property taxes and assessments; 

  

	 	vi.	premiums for property, casualty or fire and extended coverage insurance premiums; 

  

	 	vii.	the Incentive Management Fee; and 

  

	 	viii.	such other costs or expenses which are normally treated as capital expenditures under the Accounting Principles. 

  
 (hh) Renewal Term(s) – any period of years extending the Term of
this Agreement, commencing upon the expiration of the Initial Term or any extensions thereto, as provided in Section 8.03. 
  
 (ii) Reservation System - a computerized network of high speed terrestrial and satellite-linked hardware and data lines connecting hotels, central
reservation centers, data processing centers and travel agencies which provides reservations services to hotel brands owned and/or operated by Manager or its affiliates. 
  
 (jj) Reserve Account - an interest-bearing account established for funds to be held in reserve for FF&E
Replacements as set forth in Section 6.07(b) in Owner’s name at a bank selected by Manager over which Manager’s designees shall be the sole authorized signatories. 
  

 53 

 (kk) Reserve for FF&E Replacements – amounts paid into the Reserve Account. 

 
 (ll) Rooms Revenue – all revenue derived from the rental of
guest rooms in the Hotel determined in accordance with the Accounting Principles. 
  
 (mm) Site - the parcel or parcels of real estate more particularly described on Exhibit “A”. 
  
 (nn) System Marks – all service marks, trademarks, copyrights, trade names, logo types, commercial symbols, patents or other similar rights or
registrations now or hereafter held or applied for by Manager or any Affiliate of Manager in connection with the Holiday Inn brand of Hotels. 
  
 (oo) Target Bank Balance – as defined in Section 7.03(a). 
  
 (pp) Yearly Budget – the annual operating budget of the Hotel, covering a Fiscal Year, as prepared by Manager in accordance with the
Accounting Principles and approved by Owner. Such budget may include provision for an operating budget, a business plan, and a Capital Replacement Budget. 
  

 54 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement effective as of
the day and year first above written. 
  
 OWNER: 
  
 HOTEL VENTURE LIMITED PARTNERSHIP, 
 A Delaware limited partnership 
  

					
	 By:
	 	Circa Capital Corporation, a Texas	 	 
	 	 	corporation, its sole general partner	 	 
			
	 	 	 By:

	 	 
	 	 	 Name:

	 	 
	 	 	 Title:

	 	 
		
	 Date of Execution:

	 	 

  
 MANAGER: 
  
 SIX CONTINENTS RESOURCES, INC., 
 a Delaware corporation 
  

					
	 By:
	 	  

	 	 
	 Name:
	 	  

	 	 
	 Title:
	 	  

	 	 
		
	 Date of Execution:

	 	 

  

 55 

 EXHIBIT “A” 
  
 SITE LEGAL DESCRIPTION 
  

[TO BE INSERTED] 
  

 56 

 EXHIBIT “B” 
  
 FORM OF OPERATING STATEMENT 
  
 [TO BE INSERTED] 
  

 57 

 EXHIBIT “C” 
  
 MINIMUM INSURANCE COVERAGES 
  
 Commercial property insurance written on all-risk form, including, but not limited to, the following on a full replacement cost basis: fire,
explosion, lightning, windstorm, hail, smoke, riot or civil commotion, vandalism, sprinkler leakage, flood, boiler and machinery. Coverage shall include Business Interruption and Extra Expense. 
  
 Commercial general liability coverage with worldwide jurisdiction (including coverage for
liquor liability, product liability, completed operations, contractual liability and Comprehensive Automobile liability in an amount not less than $20,000,000 per occurrence/per location. 
  
 Workers’ Compensation and Employer’s Liability. 
  
 Comprehensive Crime coverage in an amount equal to not less than $1,000,000. 
  
 All coverages to be written on an occurrence form. 
  

 58 

 EXHIBIT “C-1” 
  
 Manager’s Insurance Requirements 
  

	1.	Comprehensive Crime Insurance covering all of Manager’s employees assigned to the Hotel and/or responsible for handling funds regardless of location. The limits shall be no
less than $500,000 with a deductible no greater than $5,000 per occurrence. 

  

	2.	Workers Compensation and Employer’s Liability with limits of $1,000,000 for accident and disease per accident per employee and policy limit (or qualify as a non-subscriber in
the State of Texas with excess coverage of at least $1,000,000 for the State of Texas). 

  

	3.	Employment Practices coverage with a minimum limit of $1,000,000 and a deductible no greater than $25,000 (in California the deductible shall be no greater than $25,000 plus 10% of
the claim), provided that if the premium cost for this coverage exceeds $2,000 per year, then Manager shall be responsible for payment of any premium cost in excess of $2,000. 

  
 These requirements are minimum requirements and do not serve to limit Manager’s
liability to Owner. Owner agrees that the premiums for coverages provided in 1, 2 and, to the extent provided in 3 above, shall be reimbursed by Owner to Manager to the extent provided in the Yearly Budget. If any such coverages are provided by
Manager under a “blanket” policy of coverage, then such reimbursement shall be on an equitable basis in relation to all other properties also covered under such policy. 
  

 59 

 EXHIBIT “D” 
  
 HOTEL PORTFOLIO 
  

	1.	Holiday Inn Hotel Towers - Lubbock, Texas 

	2.	Holiday Inn Park Plaza - Lubbock, Texas 

	3.	Holiday Inn City Center - Fort Smith, Arkansas 

	4.	Holiday Inn – Cheyenne, Wyoming 

	5.	Holiday Inn – Billings, Montana 

	6.	Holiday Inn – Fresno, California 

  

 60 

 EXHIBIT “E” 
  
 ENHANCEMENT AMORTIZATION 
  

				
	 Period:

	  	Unamortized Balance:

	 Through end of Fiscal Year 1
	  	$	500,000.00
	 Through end of Fiscal Year 2
	  	$	450,000.00
	 Through end of Fiscal Year 3
	  	$	400,000.00
	 Through end of Fiscal Year 4
	  	$	350,000.00
	 Through end of Fiscal Year 5
	  	$	300,000.00
	 Through end of Fiscal Year 6
	  	$	250,000.00
	 Through end of Fiscal Year 7
	  	$	200,000.00
	 Through end of Fiscal Year 8
	  	$	150,000.00
	 Through end of Fiscal Year 9
	  	$	100,000.00
	 Through end of Fiscal Year 10
	  	$	50,000.00

  

 61 

 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN BILLINGS, MONTANA 
  
 This MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT AGREEMENT FOR THE HOLIDAY INN BILLINGS, MONTANA, (“Assignment”), is made as of this
22nd day of July, 2003, by and between Hotel Venture Limited Partnership, (“Assignor”), Hotel Venture East, L.P., (“Assignee”), InterContinental Hotels Group Resources, Inc. f/k/a Six Continents Resources, Inc.,
(“Manager”) and Circa Capital Corporation, (“Guarantor”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Assignor is a party to that certain management agreement dated the 31st of May, 2002 by and between Assignor and Manager for the Holiday Inn Billings, Montana, (“the Management Agreement”); and, 
  
 WHEREAS, Assignee is a recently formed affiliated entity of Assignor; and,

  
 WHEREAS, Assignor will transfer to Assignee the title to the
hotel which is the subject of the Management Agreement (“the Hotel”); and 
  
 WHEREAS, Manager, pursuant to this Assignment, desires to authorize the transfer of the Management Agreement to Assignee, and, 
  

WHEREAS, Assignor desires to assign to Assignee all of its interest in and to the Management Agreement, and Assignee and Guarantor desire to accept
such assignment, all in connection with the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and upon the conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Manager,
Assignor, Assignee and Guarantor hereby agree as follows: 
  
 1.
Assignment. Assignor hereby assigns, sells, transfers, grants, delivers and conveys to Assignee all of Assignor’s rights in, interest in, and obligations under the Management Agreement. (“Assignment”). 
  
 2. Acceptance and Assumption by Assignee. Assignee hereby accepts said
Assignment and irrevocably assumes and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Assignor under the Management Agreement from and after the effective date
hereof. 
  
 3. Acceptance by Manager. Manager hereby
accepts said Assignment to Assignee, and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Manager under the Management Agreement from and after the date hereof.

 4. Acceptance by Guarantor. Guarantor hereby agrees that Guarantor becomes the guarantor of the
obligations of Assignee under the Management Agreements as if Assignee were identified as the Owner in the 31st of May 2002 Guaranty executed for the benefit of Manager; and, that Guarantor’s obligations to Manager under that Guaranty therefore
have not been released or diminished as a result of this Assignment. 
  
 5. Modification of Management Agreement. Assignor, Assignee, Guarantor and Manager hereby agree that the Management Agreement shall be modified as specified in the attached Exhibit A. 
  
 6. Further Actions. Assignor, Assignee, Manager and Guarantor hereby
agree to take any further actions and to execute any other documents deemed to be reasonably necessary to carry out the purposes of this Assignment. 
  
 7. Modification. No modification, waiver, amendment, discharge or change of this Assignment shall be valid unless the same is in writing and signed
by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. 
  
 8. Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of the parties hereto, and to its respective successors
in interest and assigns. 
  
 9. Effective Date. This
Assignment shall become effective upon the transfer to Assignee of title to the Hotel or                          (date),
whichever is sooner. 
  
 10. Counterparts. This Assignment
may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date and year first above written. 
  
 ASSIGNOR: 
  
 HOTEL VENTURE LIMITED PARTNERSHIP, a Delaware limited partnership. 
  
 BY: CIRCA CAPITAL CORPORATION, a Texas Corporation, its general partner 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 2 

 ASSIGNEE: 
  
 HOTEL VENTURE EAST, L.P., a Texas limited partnership 
  
 BY: CIRCA GP EAST, INC. a Texas corporation 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 MANAGER: 
  
 INTERCONTINENTAL HOTELS GROUP RESOURCES, INC., a Delaware Corporation. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 GUARANTOR: 
  
 CIRCA CAPITAL CORPORATION, a Texas Corporation 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 3 

 EXHIBIT A to 
 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN
BILLINGS, MONTANA  
  
 Section 6.01 Permits. Shall be modified to
read as follows: 
  
 “6.01 Permits. Manager, as an Operating Cost of the
Hotel, shall obtain in the name of the Owner (unless otherwise required by applicable law to be held in the name of Manager) and maintain in full force and effect all necessary operating licenses and permits, including restaurant, sign and hotel
licenses, as may be required for the operation of the Hotel, but excluding the alcoholic beverage permit, which Owner shall obtain. Manager will make all reasonable efforts within its control to comply with conditions or requirements set out in or
imposed by law in connection with any such licenses and permits and at all times to manage the Hotel in accordance with such conditions and any other legal requirements. All costs of resolving the dispute with the State of Montana regarding the
alcoholic beverage permit, and any extraordinary costs (those costs other than the normal administrative renewal costs) of obtaining an alcoholic beverage permit shall be treated as an Owners Cost in accordance with the provisions of Section 6.03
(c) herein.” 
  
 Section 7.03 Bank Accounts, sub-section (a) shall be
modified to read as follows: 
  
 “Section 7.03 Bank Accounts.

  
 (a) The revenues of the Hotel shall be deposited into one or
more Bank Account(s) established by Manager in Owner’s name at such banks as Manager shall determine. The Bank Accounts will be separate and distinct from any other accounts, reserves or deposits required by this Agreement, and Manager’s
designees who are included in the coverage of any required fidelity or similar insurance will be the only parties authorized to draw upon any Bank Account; provided, however, such designees shall only be authorized to draw upon a Bank Account for
purposes authorized by the terms of this Agreement. Within one (1) business day of the Effective Date, Owner shall deposit in the Bank Accounts designated by Manager the sum of One Hundred Eighty Nine Thousand Eight Hundred and No/100 Dollars
($189,000.00), as the minimum working capital for the Hotel. Such amount is based upon the purchasing power of money at the Effective Date and shall be annually increased or decreased with reference to increase or decrease in the Consumer Price
Index in order to retain the same purchasing power. This amount as adjusted shall be the “Target Bank Balance” to be maintained by Owner during the remainder of the Initial Term and any Renewal Term(s). The Target Bank Balance will serve
as working capital for Hotel operations and any interest earned on the Target Bank Balance shall belong to the Hotel. It is acknowledged by Manager and Owner that the Target Bank Balance will fluctuate during each Fiscal Month and that Manager shall
have no obligation to fund any deficiency in the Target Bank Balance. Owner shall, within three (3) business days of receiving written notice from Manager that the actual working capital balance is more than ten percent (10%) less than the Target
Bank Balance, furnish Manager with, or Manager may retain from amounts otherwise distributable to or on behalf of Owner on a monthly basis if available, sufficient funds to make up any deficiency in the Target Bank Balance. Owner acknowledges that
the Target Bank Balance will be administered by Manager on a consolidated basis across the portfolio of hotels owned by Owner and listed on Exhibit “D” attached hereto. Notwithstanding the provisions of this Section 7.03(a)
and Section 9.02 to the contrary, Owner and Manager agree 
  

 4 

 that the obligation of Owner to fund deficits in the Target Bank Balance and the obligations of Manager to disburse
excess funds above the Target Bank Balance shall be determined on a consolidated basis for all such hotels.” 
  

 5 

 MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT 
 AGREEMENT FOR THE HOLIDAY INN BILLINGS, MONTANA 
  
 This MODIFICATION, ASSIGNMENT AND ASSUMPTION OF MANAGEMENT AGREEMENT FOR THE HOLIDAY INN BILLINGS, MONTANA (“Second Assignment”), is made
as of this              day of June, 2004, by and between Hotel Venture East, L.P., (“Assignor”), Circa Capital Corporation (“Circa”), InterContinental Hotels
Group Resources, Inc. f/k/a Six Continents Resources, Inc., (“Manager”), Capital Lodging TRS HV East Operations, Inc. (“Assignee”), and Capital Lodging, a Maryland real estate investment trust (“Guarantor”). 

 
 W I T N E S S E T H: 
  
 WHEREAS, Assignor, an affiliate of Circa, is a party to that certain
management agreement dated the 31st of May, 2002 by and between Assignor, Manager and Circa for the Holiday Inn
Billings, Montana, as modified by the Modification, Assignment and Assumption of Management Agreement for the Holiday Inn Billings, Montana dated July 22, 2003 (the “Management Agreement”); 
  
 WHEREAS, Assignor has agreed to transfer, convey and assign to Capital
Lodging HV East Properties, L.P., a Delaware limited partnership and subsidiary of Guarantor (“New Hotel Owner”), all of Assignor’s interest in and to the hotel which is the subject of the Management Agreement (the “Hotel”),
as provided in that certain Agreement for Purchase and Sale and Joint Escrow Instructions, between Assignor, as Seller, the other Sellers named therein and AP/APMC Partners, LLC, a Delaware limited liability company, as Buyer (the “Purchase
Agreement”); and AP/APMC Partners, LLC will assign all of its interest in and to the Purchase Agreement with respect to the Hotel to New Hotel Owner concurrently with the transfer of the Hotel pursuant to the Purchase Agreement; 
  
 WHEREAS, New Hotel Owner will enter into a lease agreement with Assignee with
respect to the Hotel; 
  
 WHEREAS, Assignee will enter into a new
license agreement with Holiday Hospitality Franchising, Inc. with respect to the Hotel; 
  
 WHEREAS, Manager, pursuant to this Second Assignment, desires to authorize the transfer of the Management Agreement to Assignee; 
  

WHEREAS, Assignor desires to assign to Assignee all of its interest in and to the Management Agreement, and Assignee and Guarantor desire to accept
such assignment, all in connection with the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and upon the conditions contained herein, and for other good and valuable consideration, the receipt 

 and sufficiency of which are hereby acknowledged, Manager, Assignor, Assignee and Guarantor hereby agree as follows:

  
 1. Assignment. Assignor hereby assigns, sells,
transfers, grants, delivers and conveys to Assignee all of Assignor’s rights in, interest in, and obligations under the Management Agreement (“Assignment”). 
  
 2. Acceptance and Assumption by Assignee. Assignee hereby accepts said Assignment and irrevocably assumes and agrees
to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Assignor under the Management Agreement from and after the effective date hereof. 
  
 3. Acceptance by Manager. Manager hereby accepts said Assignment to
Assignee, and agrees to keep, perform and be bound by all of the terms, covenants, conditions and obligations that are required to be performed by Manager under the Management Agreement from and after the date hereof. 
  
 4. Acceptance by Guarantor. Guarantor hereby agrees that Guarantor
becomes the guarantor of the obligations of Assignee under the Management Agreements as if Assignee were identified as the Owner in the 31st of May, 2002 Guaranty executed for the benefit of Manager; and, that Guarantor’s obligations to Manager under the Guaranty therefore have not been released or diminished as a result of this Agreement. 
  
 5. Modification of Management Agreement. Assignor, Assignee, Guarantor
and Manager hereby agree that the Management Agreement shall be modified as specified in the attached Exhibit A. 
  
 6. Further Actions. Assignor, Assignee, Manager and Guarantor hereby agree to take any further actions and to execute any other documents deemed to
be reasonably necessary to carry out the purposes of this Agreement. 
  
 7. Modification. No modification, waiver, amendment, discharge or change of this Second Assignment shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is or may be sought. 
  
 8.
Successors and Assigns. This Second Assignment shall be binding upon and inure to the benefit of the parties hereto, and to its respective successors in interest and assigns. 
  
 9. Effective Date. This Second Assignment shall become effective upon the Closing Date, as defined in the Purchase
Agreement. If the Closing Date does not occur as provided in the Purchase Agreement, then this Second Assignment shall be null and void and of no further force and effect, and (a) Assignor shall continue to be responsible for all obligations under
the Management Agreement, (b) the request for Manager’s approval of the assignment contemplated by this Second Assignment shall be deemed 

 withdrawn, unapproved and without any force or effect, and (c) Manager shall continue to manage the Hotel in accordance
with the terms of the Management Agreement. 
  
 10.
Counterparts. This Second Assignment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 
  
 11. Release of Assignor and Circa. Assignor, Circa and Manager release
one another from any further claims or obligations of any nature whatsoever in any way which may arise out of the Management Agreement from and after the Effective Date. Notwithstanding the foregoing, such release shall not be effective with respect
to any claims or liabilities existing as of the Effective Date, known or unknown, for which Manager, Assignor and/or Circa may be liable. 
  
 12. Retention of Accounting Information. Manager shall perform all necessary actions as called for under Section 16.03 of the Management Agreement
or as otherwise appropriate in order to provide Assignor with a true and accurate final accounting of Assignor’s ownership period (“Assignor’s Information”) and to wind up Assignor’s accounts and affairs in a timely and
efficient manner. Inasmuch as Manager will continue to operate the Hotel, Manager will not be required to turn over all the books and records of the Hotel to Assignor as provided in Section 16.03(e) of the Management Agreement, and Manager will
continue to be responsible for maintaining such books and records for so long as Manager continues to operate the Hotel; provided, however, Manager will keep Assignor’s Information and make same available to Assignor for no less than three
years from the date hereof (the “Safekeeping Period”). Manager agrees to continue to cooperate with Assignor in responding to any inquiries or audits pertaining to Assignor’s period of ownership. If Manager ceases to manage the Hotel
prior to the expiration of the Safekeeping Period, Manager will contact Assignor to obtain instructions for the final disposition of Assignor’s Information. 
  

 Page 3 of 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Second Assignment as of the date and year first
above written. 
  
 ASSIGNOR: 
 HOTEL VENTURE EAST, L.P., a Texas limited partnership 
  
 BY: CIRCA GP EAST, INC., a Texas corporation, its general partner 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 CIRCA CAPITAL CORPORATION, a Texas corporation 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 ASSIGNEE: 
 CAPITAL LODGING TRS HV EAST OPERATIONS, INC., a Delaware corporation 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 MANAGER: 
 INTERCONTINENTAL HOTELS GROUP RESOURCES, INC., a Delaware corporation. 

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 GUARANTOR: 
 CAPITAL LODGING, a Maryland real estate investment trust 

			
		
	By:	 	 
	Name:	 	Edward J. Rohling
	Title:	 	President and Chief Executive Officer

  

 Page 4 of 6 

 EXHIBIT A to 
 SECOND ASSIGNMENT 
  

	1.	The following sentence shall be added to the end of Section 2.04 (a): For the Fiscal Year 2004, the budgeted Gross Operating Profit shall be $2,606,102 for purposes of the
Performance Test. 

  

	2.	The first sentence of Section 2.04(b) shall be replaced with the following: “Notwithstanding subsection (a) above, Owner shall not be entitled to exercise such termination
right if, within sixty (60) days following Manager’s receipt of Owner’s written notice of termination, Manager cures such failure by paying into the Bank Account the shortfall between the Hotel’s actual Gross Operating Profit and
ninety percent (90%) of budgeted Gross Operating Profit (as determined pursuant to the Yearly Budget) for such Fiscal Year.” 

  

	a.	 	Section 2.05 shall be amended to delete the date at the end of the first sentence and replace it with the following: February 6, 2008. 

  

	3.	Section 6.07(b) shall be amended by deleting the ninth sentence of that section and inserting the following in its place: 

  
 “To the extent funds in the Reserve Account are insufficient at any
time or to the extent such funds plus anticipated contributions for the ensuing year are less than the budget for FF&E Replacements for the ensuing year, Owner shall provide the necessary funds to Manager within thirty (30) days of delivery of
notice to that effect from Manager.” 
  

	4.	The following section shall be added to Article 23: 

  
 Section 23.09: Eligible Independent Contractor. During the Term of this Agreement, Manager shall at all times qualify as an “eligible
independent contractor” (an “Eligible Independent Contractor”) within the meaning of Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the “Code”). To that end, Manager covenants that, during the Term of
this Agreement: 
  
 (a) Manager shall not conduct
or permit wagering activities at any of the Hotels; 
  

 Page 5 of 6 

 (b) Manager shall not own (within the meaning of Section 856(d)(5) of the Code) more than
twenty-five percent (25%) of the outstanding stock of Capital Lodging, a Maryland real estate investment trust (“Capital Lodging”); 
  
 (c) no more than thirty-five percent (35%) of either (i) the total combined voting power in Manager (determined by reference to interests
in the capital stock of Manager) or (ii) the total shares of all classes of capital stock of Manager shall be owned (within the meaning of Section 856(d)(5) of the Code) by one or more persons owning (within the meaning of Section 856(d)(5) of the
Code) in the aggregate thirty-five percent (35%) or more of the outstanding stock of Capital Lodging; 
  
 (d) Manager (or a person who is a “related person,” within the meaning of Section 856(d)(9)(F) of the Code (a “Related
Person”), with respect to Manager) shall be actively engaged in the trade or business of operating “Qualified Lodging Facilities,” as defined below, for one or more persons who are not Related Persons with respect to Capital Lodging
or Owner (“Unrelated Persons”). For purposes of determining whether the requirements of this Section 23.09(d) have been met, Manager shall be treated as being actively engaged in such a trade or business if Manager (i) derives at least ten
percent (10%) of both its profits and revenues from operating Qualified Lodging Facilities for Unrelated Persons, or (ii) complies with any regulations or other administrative guidance under Section 856(d)(9) of the Code with respect to the amount
of hotel management business with Unrelated Persons that is necessary for Manager to qualify as an Eligible Independent Contractor. 
  
 (e) For purposes of this Section 23.09, a “Qualified Lodging Facility” means a Lodging Facility, as defined below, unless
wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is fully authorized to engage in such activities at or in connection with such facility. A
“Lodging Facility” is a hotel, motel, or other establishment more than one-half of the dwelling units in which are used on transient basis, and includes customary amenities and facilities operated as part of, or associated with, the
lodging facility so long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners who are Unrelated Persons. 
  

 Page 6 of 6Management Agreement

 Exhibit 10.15 
  
 MANAGEMENT AGREEMENT 
 BETWEEN 
 RADISSON HOTEL CORPORATION 
 and 
 AP/APMC STOCKTON, L.P. 
 FOR THE 
 RADISSON HOTEL STOCKTON 
  

 TABLE OF CONTENTS 
  

					
		
	 ARTICLE 1 DEFINITIONS
	  	1
		
	 ARTICLE 2 TERM
	  	11
			
	 2.1
	  	 Operating Term
	  	11
			
	 2.2
	  	 Renewal of Operating Term
	  	11
		
	 ARTICLE 3 CONSTRUCTION
	  	12
			
	 3.1
	  	 Opening the Hotel
	  	12
			
	 3.2
	  	 Cost
	  	12
			
	 3.3
	  	 Signage
	  	12
			
	 3.4
	  	 Limitation on Manager’s Responsibility
	  	12
			
	 3.5
	  	 Initial Improvements
	  	12
			
	 3.6
	  	 Construction
	  	14
		
	 ARTICLE 4 GENERAL HOTEL OPERATION
	  	15
			
	 4.1
	  	 Opening the Hotel
	  	15
			
	 4.2
	  	 Name
	  	15
			
	 4.3
	  	 Appointment of Manager
	  	15
			
	 4.4
	  	 Manager’s Corporate Staff Employee and Affiliates’ Services
	  	15
			
	 4.5
	  	 General Duties and Authority of Manager
	  	16
			
	 4.6
	  	 Operation at Owner’s Expense
	  	18
			
	 4.7
	  	 Impositions
	  	18
			
	 4.8
	  	 Owner’s Assistance; Asset Manager
	  	18
			
	 4.9
	  	 Manager’s Expenses
	  	18
			
	 4.10
	  	 Manager’s Right to Perform Owner’s Obligations
	  	19
			
	 4.11
	  	 Manager’s and Affiliates’ Liability
	  	19
		
	 ARTICLE 5 PERSONNEL
	  	19
			
	 5.1
	  	 Hotel Employees
	  	19
			
	 5.2
	  	 Manager’s Employees
	  	19
			
	 5.3
	  	 Termination
	  	20
			
	 5.4
	  	 Temporary Assignments
	  	20
		
	 ARTICLE 6 ANNUAL PLAN
	  	20
			
	 6.1
	  	 Preparation and Approval
	  	20
			
	 6.2
	  	 Failure to Approve
	  	21
			
	 6.3
	  	 Periodic Monitoring
	  	21
			
	 6.4
	  	 Qualifications
	  	22
		
	 ARTICLE 7 BANK ACCOUNTS
	  	22
			
	 7.1
	  	 Operating Account
	  	22
			
	 7.2
	  	 Working Capital
	  	22
			
	 7.3
	  	 Reserve Fund Account
	  	22
			
	 7.4
	  	 Remittances to Owner
	  	23
			
	 7.5
	  	 Investments
	  	23
			
	 7.6
	  	 Withdrawals from Bank Accounts
	  	23
		
	 ARTICLE 8 BOOKS, RECORDS AND STATEMENTS
	  	23
			
	 8.1
	  	 Accounting System
	  	23
			
	 8.2
	  	 Statements
	  	24
			
	 8.3
	  	 Independent Auditor
	  	24

  

 i 

					
		
	 ARTICLE 9 REPAIRS, MAINTENANCE AND CAPITAL IMPROVEMENTS
	  	24
			
	 9.1
	  	 Maintenance and Repairs
	  	24
			
	 9.2
	  	 Reserve Fund Work
	  	24
			
	 9.3
	  	 Capital Improvements
	  	24
			
	 9.4
	  	 Technical Assistance Services
	  	25
			
	 9.5
	  	 Emergencies
	  	25
			
	 9.6
	  	 HARMONY Upgrades
	  	25
			
	 9.7
	  	 Signage
	  	25
		
	 ARTICLE 10 COMPLIANCE WITH LAWS
	  	26
			
	 10.1
	  	 Compliance by Manager
	  	26
			
	 10.2
	  	 Owner’s Compliance
	  	26
			
	 10.3
	  	 Right of Owner to Contest or Postpone Compliance
	  	26
		
	 ARTICLE 11 FEES AND OTHER AMOUNTS PAYABLE
	  	26
			
	 11.1
	  	 Base Management Fee, Reservations Fee and Marketing Contribution
	  	26
			
	 11.2
	  	 Incentive Fee
	  	26
			
	 11.3
	  	 Third Party Reservation Charges
	  	26
			
	 11.4
	  	 Marketing, Training and Orientation Programs and Fees
	  	27
			
	 11.5
	  	 Use of Marketing Funds
	  	27
			
	 11.6
	  	 Annual Reconciliation
	  	27
			
	 11.7
	  	 Expense Reimbursement
	  	27
			
	 11.8
	  	 Payment Authorization
	  	27
			
	 11.9
	  	 Interest
	  	28
			
	 11.10
	  	 No Right of Off-Set
	  	28
		
	 ARTICLE 12 INSURANCE
	  	28
			
	 12.1
	  	 Insurance Coverage
	  	28
			
	 12.2
	  	 Purchase of Insurance
	  	28
			
	 12.3
	  	 Waiver of Subrogation
	  	28
			
	 12.4
	  	 Owner’s Risk
	  	29
			
	 12.5
	  	 Changes
	  	29
			
	 12.6
	  	 General Contractor’s Liability Insurance
	  	29
		
	 ARTICLE 13 INDEMNIFICATION AND LIMITATION OF LIABILITY
	  	29
			
	 13.1
	  	 Indemnification by Owner
	  	29
			
	 13.2
	  	 Defense against Claims
	  	30
			
	 13.3
	  	 Continuation of Obligations
	  	30
		
	 ARTICLE 14 MARKS
	  	30
			
	 14.1
	  	 Ownership
	  	30
			
	 14.2
	  	 Changes
	  	31
			
	 14.3
	  	 Defense or Enforcement of the Marks
	  	31
		
	 ARTICLE 15 CONFIDENTIAL AND PROPRIETARY SYSTEM INFORMATION
	  	31
			
	 15.1
	  	 Right to Use
	  	31
			
	 15.2
	  	 Revisions
	  	31
			
	 15.3
	  	 Ownership and Non-Disclosure
	  	31
			
	 15.4
	  	 Survival
	  	32
		
	 ARTICLE 16 MUTUAL TERMINATION RIGHTS
	  	32
		
	 ARTICLE 17 OWNER’S TERMINATION RIGHTS
	  	32
			
	 17.1
	  	 Owner’s Right to Terminate for Default
	  	32
			
	 17.2
	  	 Owner’s Performance Termination Rights
	  	33

  

 ii 

					
	 17.3
	  	 Owner’s Limited Termination Right Upon Sale
	  	34
			
	 17.4
	  	 Special Right of Owner to Terminate Without Cause
	  	34
		
	 ARTICLE 18 MANAGER’S TERMINATION RIGHTS
	  	34
			
	 18.1
	  	 Default - No Opportunity to Cure
	  	34
			
	 18.2
	  	 Default - Opportunity to Cure
	  	34
			
	 18.3
	  	 Suspension of Services
	  	35
			
	 18.4
	  	 Special Terminations
	  	35
		
	 ARTICLE 19 CONSEQUENCES UPON TERMINATION/EXPIRATION
	  	36
			
	 19.1
	  	 Owner’s Obligations
	  	36
			
	 19.2
	  	 Manager’s Rights
	  	36
			
	 19.3
	  	 Cooperation Upon Termination
	  	37
			
	 19.4
	  	 Survival
	  	37
		
	 ARTICLE 20 DAMAGE OR DESTRUCTION; CONDEMNATION
	  	37
			
	 20.1
	  	 Damage or Destruction—Termination
	  	37
			
	 20.2
	  	 Damage or Destruction—Restoration
	  	37
			
	 20.3
	  	 Condemnation—Termination
	  	37
			
	 20.4
	  	 Condemnation—Restoration
	  	37
			
	 20.5
	  	 Condemnation—Temporary Use
	  	37
			
	 20.6
	  	 Restoration
	  	38
			
	 20.7
	  	 Fees
	  	38
			
	 20.8
	  	 Manager’s Award
	  	38
			
	 20.9
	  	 Consequences of Termination
	  	38
		
	 ARTICLE 21 TRANSFERS
	  	38
			
	 21.1
	  	 Assignment by Manager
	  	38
			
	 21.2
	  	 Transfers by Owner
	  	39
			
	 21.3
	  	 Special Sale and Termination Rights
	  	40
			
	 21.4
	  	 Right of First Offer
	  	40
			
	 21.5
	  	 Mortgages
	  	41
			
	 21.6
	  	 Mortgage Documents
	  	41
			
	 21.7
	  	 Estoppel Certificates
	  	41
			
	 21.8
	  	 Sale of Securities
	  	41
		
	 ARTICLE 22 OWNER’S UNDERSTANDINGS, REPRESENTATIONS
	  	42
			
	 22.1
	  	 Representation and Warranties
	  	42
			
	 22.2
	  	 Understandings
	  	43
		
	 ARTICLE 23 MISCELLANEOUS PROVISIONS
	  	43
			
	 23.1
	  	 Severability
	  	43
			
	 23.2
	  	 Governing Law
	  	43
			
	 23.3
	  	 Venue and Jurisdiction
	  	43
			
	 23.4
	  	 Modifications and Changes
	  	44
			
	 23.5
	  	 Headings/Terms
	  	44
			
	 23.6
	  	 Third Parties
	  	44
			
	 23.7
	  	 Understandings and Agreements
	  	44
			
	 23.8
	  	 Force Majeure
	  	44
			
	 23.9
	  	 Relationship of Parties
	  	44
			
	 23.10
	  	 JURY WAIVER
	  	45
			
	 23.11
	  	 Binding Agreement
	  	45

  

 iii 

					
			
	 23.12
	  	 Notices
	  	45
			
	 23.13
	  	 Execution/Counterparts
	  	46
			
	 23.14
	  	 Attorneys’ Fees
	  	46
			
	 23.15
	  	 Actions By Others
	  	47
			
	 23.16
	  	 Joint and Several Liability
	  	47
			
	 23.17
	  	 Survival
	  	47
			
	 23.18
	  	 Time of the Essence
	  	47
			
	 23.19
	  	 Approvals
	  	47
			
	 23.20
	  	 Successors Bound
	  	47
			
	 23.21
	  	 Cumulative Rights
	  	47
			
	 23.22
	  	 Terminology
	  	47
			
	 23.23
	  	 Exhibits, Addenda, Schedules and Riders
	  	47
			
	 23.24
	  	 Interpretation
	  	47
			
	 23.25
	  	 Limitation of Claims
	  	48
			
	 23.26
	  	 Photocopies
	  	48
			
	 23.27
	  	 Confidentiality
	  	48
			
	 23.28
	  	 Limited Recourse
	  	48
			
	 23.29
	  	 Guaranty
	  	48
			
	 23.30
	  	 Mortgagee Consent
	  	48

  

 iv 

 MANAGEMENT AGREEMENT 
  
 This Management Agreement (this “Agreement”) is dated and effective September 1, 2001 and is by and between
AP/APMC Stockton, L.P., a Delaware limited partnership (“Owner”), and Radisson Hotel Corporation (“Manager”), a New Jersey corporation. Owner and Manager agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 The following terms, as used in this Agreement, shall have the following respective meanings: 
  
 Advance. As defined in Section 4.10. 
  
 Affiliate. Any Person that, directly or indirectly, Controls, is Controlled by or is under common Control with any other Person. 
  
 Annual Plan. The Annual Operating Budget, the Capital Expenditure Budget, the
Reserve Fund Work Budget and all other information submitted to Owner with such budgets. 
  
 Annual Operating Budget. The estimate of Gross Revenues, Expenses and Permitted Deductions and other categories, in the form and format established by Manager consistent with the Uniform System for each Fiscal Year
during the Operating Term. 
  
 Approved Plans. As defined in
Section 3.6(c). 
  
 Asset Manager. Edward Rohling, unless and
until a successor asset manager is designated by Owner in a notice in writing to Manager, in which case the Asset Manager shall be such successor. 
  
 Average Monthly Base Management Fee. The total Base Management Fees payable to Manager under this Agreement for the 12 month period immediately preceding
the event requiring a determination of the Average Monthly Base Management Fee, divided by 12. If there are not 12 months from the Opening Date to the end of such period for which the Average Monthly Base Management Fee is being calculated, then the
Average Monthly Base Management Fee is the total Base Management Fees payable for the total of the months in such period divided by the number of such months. However, if the Average Monthly Base Management Fee is to be determined prior to the end
of the first month after the Opening Date, then the Average Monthly Base Management Fee is equal to one-twelfth (1/12) of the of the total Base Management Fees that would be payable during the first 12 months following the Opening Date as provided
in the approved Annual Operating Budget for such period. If there is no approved Annual Operating Budget, the Average Monthly Base Management Fee will be as reasonably determined by Manager, subject to Owner’s approval. Partial months are not
included in these calculations. 
  
 Base Management Fee. As
defined in Section 11.1(a). 
  

 1 

 Capital Expenditure Budget. Each annual budget reflecting the estimated costs for all Capital
Expenditures. 
  
 Capital Expenditures. Expenditures for any
Capital Improvements, including those that are necessary to Operate the Hotel in compliance with the Operating Standards. 
  
 Capital Improvements. Any and all major alterations and improvements to the Hotel and all major repairs and replacements to the structural, mechanical,
electrical, HVAC, plumbing or vertical transportation elements of the Hotel other than certain non-routine repairs and maintenance to the Hotel which are normally capitalized under generally accepted accounting principles. Capital Improvements shall
not include any FF&E or other items or improvements acquired, constructed, installed or effected pursuant to any Reserve Fund Work. 
  
 Condemnation. The temporary or permanent acquisition of all or any portion of the Project by any Governmental Authority having the power of condemnation,
eminent domain or similar procedure by compulsory acquisition or voluntary sale under threat of compulsory acquisition. 
  
 Confidential and Proprietary System Information. Confidential and Proprietary System Information includes Guest Data, Hotel Data, System Hotel Statistics
and all System Information, whether or not developed by Manager from its own Guest Data and System Hotel Statistics or from Hotel Data, regardless of whether such are labeled confidential, proprietary or trade secret. 
  
 Construction. All activities and plans, specifications, drawings, scheme
boards and other information with respect to the planning, design, construction, remodeling, redecorating, furnishing, equipping, renovation, rebuilding and replacement of, and additions, alterations, improvements and repairs to the Hotel, including
the FF&E, OS&E and interior finishes. 
  
 Construction
Commencement Date. The date by which any Construction of or relating to the Hotel must begin. For new construction, “begin” means that the building slab has been completed and framing has begun. For the remodeling or renovation of an
existing hotel, “begin” means the removal of existing FF&E, and the commencement of substantial demolition. 
  
 Construction Standards. As defined in Section 3.6(d). 
  
 Control. The right or ability, directly or indirectly, to cause a Person to act in accordance with another Person’s instructions. 
  
 Corporate Staff Employees. Any individual employed by Manager or its
Affiliates who is not assigned permanently or temporarily on a full-time basis at the Hotel. 
  
 Cure Amount. As defined in Section 17.2(c). 
  
 Cure Period. As defined in Section 17.2(c). 
  
 Effective Date. September 1, 2001. 
  

 2 

 Encumbrance. Any claim, lien, charge or liability attached to or resulting from a security interest in
all or any part of the Project other than a Mortgage. 
  
 Equity
Interest. Any stock, unit, membership, partnership or other legal or beneficial ownership interest in Owner. 
  
 Equity Holder. Any Person who owns an Equity Interest directly or indirectly. 
  
 Executive Committee. The Hotel’s general manager, assistant general manager, director of food and beverage, director of
sales, controller and any other key executive of the Hotel designated by Manager. 
  
 Expenses and Permitted Deductions. The expenses and deductions attributable to all Operating Departments and Undistributed Operating Expenses as those terms are used and defined in the Uniform System, but only as they
relate to the Operation of the Hotel, including: 
  
 (a) Expenses
related to Manager’s and its Affiliate’s employees while assigned permanently or temporarily on a full-time basis at the Hotel. 
  
 (b) Reimbursable Expenses. 
  
 (c) The Hotel’s pro-rated share of program fees and Marketing expenses incurred by Manager for programs in which the Hotel and other System Hotels
participate. 
  
 (d) The Base Management Fee. 
  
 (e) The Marketing Contribution. 
  
 (f) The Royalty Fee. 
  
 (g) The Reservation Charges. 
  
 Expenses and Permitted Deductions do not include payments for the following
as defined and determined in accordance with the Uniform System: 
  
 (i) Capital Improvements. 
  
 (ii) Property Taxes, Rent
and Insurance. 
  
 (iii) The Incentive Fee. 
  
 (iv) Federal and State income taxes and Gross Receipts Taxes (or their
equivalent imposed by any other governmental authority having jurisdiction). 
  
 (v) Pre-opening Expenses. 
  
 (vi)
Reserve Fund Payments. 
  
 (vii) Expenses incurred pursuant to
Section 10.3. 
  

 3 

 Fiscal Year. A fiscal year that ends on December 31. The first Fiscal Year shall be the period commencing
on the Opening Date and ending on December 31 of the same calendar year. The term “full Fiscal Year” means any Fiscal Year containing not fewer than 365 days. A partial Fiscal Year after the end of the last full Fiscal Year and ending with
the expiration or earlier termination of the Term shall constitute a separate Fiscal Year. 
  
 Force Majeure. (i) Acts of nature including hurricanes, typhoons, tornadoes, cyclones, other severe storms, winds, lightning, floods, earthquakes, volcanic eruptions, disease and epidemics; (ii) fires and explosions
except those intentionally caused by Owner, Manager or their respective agents; (iii) acts of war; riots or other civil commotion; terrorism, including hijacking, sabotage, bombing, murder, assault and kidnapping; (iv) strikes or other labor
disturbances; (v) shortages of critical materials or supplies; (vi) action or inaction of Governmental Authorities, including the imposition of restrictions on room rates, Hotel Employee wages or other material aspects of the Hotel’s
Construction or Operation; and (vii) any other events or conditions beyond the control of Owner or Manager, but excluding causes due to downturns in general economic conditions or insufficient funds. If any Governmental Authority Controls a party,
then any act of that Governmental Authority does not constitute a Force Majeure as to that party. 
  
 FF&E. Furniture, furnishings, fixtures, outfittings, decorations, and equipment customarily used in connection with the Construction and Operation of
a System Hotel, including all equipment required for the operation of kitchens, laundries, dry cleaning facilities and bars, special lighting, signs, carpets, drapes, shades, tapestries, pictures, paintings, beds, mattresses, chairs, desks, tables,
sofas, wall coverings, televisions, radios, intercoms, telephones and office equipment and machinery. 
  
 Governmental Authority. Any governmental entity, and any political or other subdivision of any governmental entity, and any agency, department,
commission, board, bureau, court or instrumentality of any of them, which, at any time, has jurisdiction over the Owner, Manager or any part of the Project. 
  
 Governmental Permits. All approvals, certificates, licenses and permits from any Governmental Authority required to evidence full compliance by Owner or
Manager with all Legal Requirements or required to evidence that the Project complies with all Legal Requirements. 
  
 Gross Operating Profit. The excess, during each Fiscal Year, of Gross Revenue over Expenses and Permitted Deductions, which is the equivalent of Income
After Undistributed Operating Expenses in the Uniform System. 
  
 Gross Revenues. All consideration, whether by cash, credit, in kind or otherwise, derived directly or indirectly from the Operation of the Hotel, as finally determined on an accrual basis in accordance with the Uniform System and generally
accepted accounting principles consistently applied, including: (i) all rentals and charges for guest rooms, suites, meeting rooms, conference rooms, ballrooms and other public rooms, including all charges for room reservations and deposits not
refunded to guests; (ii) all sales of food and beverages, whether served on or off the premises, including but not limited to all charges for room service, banquets and catering fees; (iii) all sales or leases of miscellaneous and sundry merchandise
and services, including laundry, 

  

 4 

 
valet, garage, parking, telephone, telex, facsimile, e-mail and Internet access, computer equipment, audiovisual, check room, vault and other miscellaneous
services, cover and minimum charges for guest entertainment, fees charged for the temporary use of facilities at the Hotel, all sales through vending machines and all other consideration and other payments derived from business conducted pursuant to
this Agreement; (iv) all business interruption insurance awards received in respect of the Hotel; (v) Condemnation awards for temporary use of the Hotel; (vi) amounts recovered (net of costs of collection) with respect to legal proceedings or
settlement of claims arising out of the Operation of the Hotel that represent amounts that would have been included in Gross Revenues had they been collected without resort to legal proceedings; and (vii) all rentals, fees, commissions, concessions
and other payments derived from lessees, licensees and concessionaires of Owner with respect to the Hotel. Gross Revenues does not include: 
  
 (a) Excise, sales and use taxes or similar impositions collected directly from customers or included as part of the sales price of any goods or services
and paid to any Governmental Authority, such as gross receipts, admission or similar equivalent taxes; 
  
 (b) Sales and other receipts of tenants, licensees and concessionaires, except as provided in clause (viii) above; 
  
 (c) Insurance proceeds, except as provided in clause (iv) above; 

 
 (d) Condemnation awards, except as provided in clause (v) above;

  
 (e) Proceeds from the sale or other transfer of all or any
portion of the Project; 
  
 (f) Proceeds from any financing or
refinancing of all or any portion of the Hotel; 
  
 (g) Payments
made by Owner to Manager under this Agreement; and 
  
 (h)
Interest earned on the Operating Account, the Reserve Fund Account or any tax, insurance or similar escrow account. 
  
 Gross Room Revenue. That part of Gross Revenue accounted for in the rooms department of the Hotel, including: (i) one hundred percent (100%) of the
revenue derived from the rental of a guestroom or suite; (ii) all business interruption insurance awards in respect of the Hotel’s guestrooms and suites; and (iii) Condemnation awards for temporary use of the Hotel’s guestrooms and suites.

  
 Guest Data. Personal information, data and statistics on
System Hotel guests compiled from information furnished to Manager by System Hotels. 
  
 HARMONY. HARMONY is the HARMONY Product SuitesSM that is a network of hardware and
software products specified by Manager for use in System Hotels. 
  
 Hotel. The System Hotel that must contain a minimum of 198 guestrooms and that will be Operated under this Agreement under the name “Radisson Hotel Stockton,” which Hotel includes that certain tract of land and all current and
future improvements Constructed or to be Constructed on the property located at 2323 Grand Canal Boulevard in the City of Stockton, 

  

 5 

 
County of San Joaquin, State of California, more particularly described in Schedule 1, and which improvements do or must include the Hotel and related
facilities described on Schedule 2. 
  
 Hotel Data. That part of
the Guest Data and System Hotel Statistics derived from the Operation of the Hotel. 
  
 Hotel Employees. Those individuals selected by Manager and employed by Manager’s Affiliate to work at, or directly in connection with the operation of, the Hotel. 
  
 Impositions. All real estate, personal property, utility, business or
occupation taxes that cannot be passed along to customers of the Hotel and other taxes (other than income taxes imposed by the United States Government or the State of Minnesota on fees earned by Manager pursuant to this Agreement and payroll
taxes), imposed by any Governmental Authority with respect to the Project. 
  
 Incentive Fee. As defined in Section 11.2. 
  
 Income Before Fixed Charges. For any period, an amount equal to total income before fixed charges for the Project for such period as calculated pursuant to the Uniform System of Accounts and the example attached
hereto as Schedule 3. 
  
 Initial Improvements. As defined in
Section 3.5. 
  
 Legal Requirements. Any law, ordinance, order,
rule or regulation of any Governmental Authority and any requirement, term or condition contained in any restriction or restrictive covenant affecting Owner, Manager or the Project. 
  
 Maintain and Repair. The making of routine maintenance and repairs to the Hotel and everything in it, including the
FF&E, needed to keep the Hotel in good order, condition and repair in accordance with the Operating Standards, but excluding, specifically, Capital Improvements and Reserve Fund Work. 
  
 Management Fee. The Management Fee in respect of any period shall mean the sum of the Base Management Fee and the Incentive
Fee payable for such period and, in respect of any period during the first twelve (12) months of the Operating Term, the Royalty Fee. 
  
 Marketing. All activities related to marketing, sales, advertising, promotion and public relations with respect to the Hotel and System Hotels.

  
 Marketing Contribution. As defined in Section 11.1(c).

  
 Marks. RADISSON® and the RADISSON & DESIGN® (“Primary Marks”) and all other trademarks, service marks, trade names,
copyrights, insignia, emblems, slogans, logos, commercial symbols, signs, designs, trade dress and all other visual identification, whether in English or any other language, by which the System and System Hotels are identified and publicized,
including the good will associated with all of them. 
  
 Months.
Full calendar months, but including any partial month in which the Opening 

  

 6 

 
Date, termination date or expiration date occurs, unless stated otherwise and whether capitalized or not capitalized. 
  
 Mortgage. Any mortgage or deed of trust that encumbers all or any portion of
the Project at any time. 
  
 Mortgagee. Any party to a Mortgage
other than Owner. 
  
 Net Operating Income. For any period, an
amount equal to Income Before Fixed Charges for such period less an amount equal to the sum of (i) the amount of real estate taxes and property insurance premiums for such period and (ii) the amount contributed to the Reserve Fund Account for such
period (but, for purposes of this definition, such amount not to exceed the amount to be contributed to the Reserve Fund Account pursuant to Section 7.3). An example of the calculation of Net Operating Income is attached hereto as Schedule 3.

  
 Net Operating Income Threshold. As defined in Section 17.2(a).

  
 Non-Hotel Facilities. As defined in Section 3.6(g).

  
 Opening Date. The Effective Date. 
  
 Operating Account. The account or accounts containing all money attributable
to Gross Revenues, and any other money received for the payment of Hotel expenses or required to be deposited pursuant to this Agreement, exclusive of the Reserve Fund Payments. 
  
 Operating Standards. The Operation of the Hotel at a level comparable to the operation of hotels of similar class and
standing in the area in which the Hotel is located, and in a physical condition substantially similar to that of the Hotel as of the Opening Date (or, after the completion of the renovations contemplated by the Initial Improvements and other
improvements required for the level of the Hotel’s condition and operation to meet the level of the condition and operation of System Hotels of similar class and standing to the Hotel, the condition of the Hotel after the completion of such
Initial Improvements and other improvements) and taking into account the making and completion of the Maintenance and Repairs and Capital Improvements required throughout the Operating Term pursuant to Article 9, all in accordance with this
Agreement and the System. 
  
 Operating Term. The initial term of
this Agreement as established in Section 2.1 and each renewal or extension of the initial term as it occurs, as established under Section 2.2 or otherwise, unless this Agreement shall be sooner terminated as herein provided, in which case the
“Operating Term” shall end upon the date of such termination. 
  
 Operation. All aspects that are customarily the subject of the management and operation of a System Hotel, including those with respect to accounting, collections, credit policies, making arrangements with credit card organizations,
maintaining bank accounts, receiving, holding and disbursing funds, guestrooms, the use of Hotel facilities, personnel, labor relations, training, food and beverage, FF&E, OS&E, purchasing, housekeeping, kitchen and laundry, signage,
Maintenance and Repairs, Construction, public relations, life-safety, engineering, insurance, security and loss prevention, leases, licenses and concessions, Marketing, 

  

 7 

 
reservations, entertainment, administration, engaging independent contractors to provide legal, accounting or other professional or technical services, the
back of house and the front desk. “Operate” (and variations thereof) shall mean the performance of such actions and functions as are necessary or desirable as part of such Operation. 
  
 OS&E. All operating supplies and equipment including chinaware,
glassware, linens, silverware, uniforms, utensils, inventories and other similar items used in the Operation of System Hotels. 
  
 Ownership Transfer. Any Transfer: (i) by Owner of all or any part of the Project; (ii) of all or any part of Owner’s interest in this Agreement; or
(iii) of an Equity Interest that results in Equity Holders having the ability to Control Owner who were not Equity Holders as of the Effective Date. 
  
 Person. Any natural person or legal entity, including trustees, representatives, administrators, heirs, executors, partnerships, corporations, limited
liability companies, trusts, unincorporated organizations and governmental agencies, departments and branches. 
  
 Plans. As defined in Section 3.6(c). 
  
 Primary Marks. As defined in the definition of “Marks.” 
  

Project. The entire complex consisting of the Hotel and Non-Hotel Facilities, if any. 
  
 RHI. Manager’s Affiliate, Radisson Hotels International, Inc. 
  
 Reimbursable Expenses. All reasonable travel, lodging, entertainment,
telephone, facsimile, postage, courier, delivery, Hotel Employee training and other expenses incurred by Manager that are directly related to its performance of this Agreement. Each Annual Plan shall include provision for Reimbursable Expenses.

  
 Reservations Fee. As defined in Section 11.1(b). 

 
 Reservation System. The system for accepting and transmitting System
Reservations to System Hotels through various media, including HARMONY, toll free numbers, Manager’s Internet web site, Third Party Systems, using the applicable chain code, and other means that may be used by Manager from time to time for this
purpose. 
  
 Reserve Fund Account. The account into which Reserve
Fund Payments are made. 
  
 Reserve Fund Payments. Four Percent
(4%) of Gross Revenue. 
  
 Reserve Fund Work. Expenditures to be
made from the Reserve Fund Account for the routine replacement and new purchases of FF&E and interior finishes, and those non-routine repairs and maintenance that are normally capitalized including such work as: (i) exterior repainting; (ii)
resurfacing building walls, floor, roof and parking areas; and (iii) replacing folding walls. Each Annual Plan shall include provision for Reserve Fund Work and a narrative or description of the Reserve Fund Work contemplated thereby. 
  

 8 

 Reserve Fund Work Budget. Each annual budget reflecting the estimated costs for all Reserve Fund Work.

  
 Restoration. The repairing, rebuilding and replacing of the
Hotel after its damage, destruction or Condemnation. 
  
 Royalty
Fee. As defined in Section 11.1(d). 
  
 Special Termination Fee,
in respect of any termination of this Agreement pursuant to which a Special Termination Fee is payable, shall mean an amount equal to the following: 
  

			
	Date of Termination	  	Special Termination Fee
		
	First through end of twelfth month of the Operating Term	  	$100,000
		
	Thirteenth through end of eighteenth month of the Operating Term	  	15 x Average Monthly Base Management Fee
		
	Nineteenth through end of thirtieth month of the Operating Term	  	12 x Average Monthly Base Management Fee
		
	Thirty-first through end of forty-eighth month of the Operating Term	  	6 x Average Monthly Base Management Fee
		
	Following the forty-eighth month of the Operating Term	  	Zero

  
 System. The system
developed and owned by RHI, as modified by RHI from time to time, for the Operation of System Hotels of a distinctive character, including the Marks that identify System Hotels’ affiliation with the System, the Confidential and Proprietary
System Information, and all good will associated with the System. 
  
 System Hotel. A hotel Operated in the United States that uses the System pursuant to a written agreement with Manager or RHI. 
  
 System Hotel Statistics. All information, data and statistics on System Hotels compiled by Manager or RHI from information furnished to Manager or RHI by
System Hotels, including rates, occupancy, average daily rates, daily revenue statements, gross revenues, Gross Room Revenues, guest satisfaction measures, other measures of compliance with the Operating Standards, and any other information
requested by Manager in the ordinary course of Manager’s business. 
  
 System Information. All information provided by Manager or RHI to Owner in the ordinary course of business, in any form, including information, knowledge, know-how, 

  

 9 

 
drawings, materials, technology, equipment, Marketing plans, strategic plans, methods, procedures, specifications, policy manuals, operating manuals,
techniques, computer programs and systems. 
  
 System Reservation.
A reservation for a guestroom in the Hotel, which is processed through the Reservation System and is never canceled through the Reservation System. 
  
 Test Year. Each twelve (12) month period during the Term commencing on the first day of the calendar month immediately following the calendar month in
which the Opening Date occurs and each anniversary thereof, unless the Opening Date occurs on the first day of a calendar month, in which case each such twelve (12) month period shall commence on the first day of the calendar month in which the
Opening Date occurs and each anniversary thereof. In the event that this Agreement shall terminate on a date other than the last day of any such twelve (12) month period, the last Test Year shall end on the date of termination. The term “full
Test Year” means any Test Year containing not fewer than 365 days. 
  
 Third Party. Any Person, other than Manager, Owner and their respective Affiliates. 
  
 Third Party Systems. Reservation systems not controlled by Manager or its Affiliates, but which have access provided by Manager or its Affiliates to guestroom inventories in the Reservation System for the purpose of
making System Reservations, including the global distribution system. 
  
 Transfer. The voluntary or compulsory giving to another, directly or indirectly and by operation of law or otherwise, of all or any part of that which is being transferred by any means or device, including an assignment, transfer,
conveyance, security interest, Encumbrance, divestiture, sale, disposition, pledge, foreclosure, levy, attachment, execution, trade, lease, sublease, gift, bequest, inheritance or delegation. 
  
 Uniform System. The “Uniform System of Accounts for Hotels” (Hotel
Association of New York City, Inc.,) as revised periodically, which, as of the Effective Date, is the Ninth Revised Edition, 1996, as modified by this Agreement and the System, and, if not addressed by any of the above, generally accepted accounting
principles. The editions to be applied to any particular matter are the editions that were in effect at the time the matters in question occurred. If a matter spans more than one edition, each such edition will apply to the matter for the period of
time when such edition was in effect. 
  
 W.A.R.N. Act. As defined
in Section 5.3. 
  
 Words and Phrases. Whenever any of the words
and phrases in each subparagraph below are used in this Agreement, whether capitalized or not capitalized, the sentence in which they are used must be read as if the other words and phrases in such subparagraph appear in the same sentence so that
the meaning and interpretation of each applies to that sentence in the broadest sense, eliminating any obvious contradictions or inconsistencies. 
  
 “According to” “in compliance with” “as required by” and “meet” with respect to this Agreement, the System, the
Operating Standards and the Construction Standards. 
  

 10 

 “Approval”, “consent”, “permission” and “authorization” with
respect to Owner’s or Manager’s approval. 
  
 “In
or at Manager’s discretion” or similar words are to be read as “in Manager’s reasonable discretion. “Sole” discretion means “in Manager’s absolute discretion without any limitation whatsoever”.

  
 “In default of”, “in breach of”, “in
violation of”, “defaults”, “breaches”, “failure to perform”, and “violates” with respect to a party’s obligations under this Agreement. 
  
 “Includes”, “such as”, “for example” are not intended to limit the listing that follows. The
listings are examples or illustrations. The words should be read as if the words “without limitation” or “but not limited to” or a similar phrase appears after them. 
  
 “May”, “at its option”, “is entitled to” and “has the right to” are all permissive
and the decision is at the applicable party’s sole discretion. 
  
 “Shall”, “should”, “must” and “will” are all obligatory. 
  
 “Terms”, “covenants”, “conditions”, “obligations”, “provisions” and “requirements” with
respect to a referenced document. 
  
 “With respect to”,
“pursuant to”, “under”, “in connection with”, “arising out of”, “related to”, “resulting from” and “by reason of” in all references. 
  
 “Without any liability”, “without having or assuming any
liability”, “creates or assumes no liability”, “has or assumes no liability”, “gives rise to no liability” including “whatsoever” in each case. Each all of the following words includes the others:
“liability” “duty”, “responsibility” and “obligation”. 
  
 Working Capital. Funds supplied by Owner in an amount sufficient to pay the Expenses and Permitted Deductions and any other expenses that Manager is required or authorized to pay pursuant to this Agreement to provide
for the on-going Operation of the Hotel for the then-current month and the next succeeding month (or months, taking seasonality into account), including: (i) food and beverage inventory; (ii) petty cash required in the ordinary course of business;
(iii) estimated payroll; and (iv) the estimated accounts payable. 
  
 ARTICLE 2 
 TERM 
  
 2.1 Operating Term. The initial Operating Term commences on the Effective Date and expires on the fifth (5th) anniversary of the Opening Date. 

 
 2.2 Renewal of Operating Term. If neither party gives the other party
notice at least ninety (90) days prior to the end of the then-current Operating Term, the then-current Operating Term is automatically renewed through the next anniversary of the Opening Date on the same terms unless otherwise agreed in writing.

  

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 ARTICLE 3 
 CONSTRUCTION 
  
 3.1 Opening the
Hotel. The parties anticipate that Manager will take over the management and operation of the Hotel, and the Opening Date will occur, on the Effective Date. 
  
 3.2 Cost. Owner is solely responsible for the entire cost of all of the activities contemplated by this Article. 
  
 3.3 Signage. As soon as practicable, or in any event within sixty (60) days,
following’ the Opening Date, Owner will arrange, at Owner’s cost and expense, for the installation of signage on and within the Hotel prominently displaying the appropriate Marks, subject to Manager’s approval and in compliance with
the System and Legal Requirements. Owner, subject to Legal Requirements, will install temporary signs on the Hotel site during any Construction prominently displaying the appropriate Marks, subject to Manager’s approval and in compliance with
the System. 
  
 3.4 Limitation on Manager’s Responsibility.
To the extent that Manager reviews or inspects any Construction performed at the Hotel, it assumes no duty to review, inspect or approve such Construction with respect to compliance with the Construction Standards, construction means, methods or
techniques, or compliance with any Legal Requirements, including the Americans With Disabilities Act. Manager’s inspections, reviews or approvals are solely for the purpose of determining the progress of Construction and approving the
re-opening of any or all of the Hotel (to the extent the Hotel, or any portion thereof, is closed during such Construction). Manager’s approval of the Plans and the occurrence of the Opening Date is a permission only, and not an assurance,
guarantee, representation or warranty: (i) that the Hotel or any portion thereof has been Constructed in accordance with the Construction Standards; or (ii) with respect to the qualifications, capabilities, suitability, adequacy or performance of
any Person involved in the Construction; (iii) that all or any part of the Construction or Hotel is safe, suitable, fit or proper for its intended use or purpose; (iv) that the Construction has been performed in a workmanlike manner or in compliance
with all Legal Requirements; or (v) as to the reasonableness or accuracy of any cost estimates. This applies even though Manager may have commented on any of these matters in connection with any inspections, reviews or approvals. Manager has no
liability to Owner, Owner’s Affiliates or any Third Party with respect to any Construction or Owner’s activities. 
  
 3.5 Initial Improvements. 
  
 (a) As soon as practicable following the Effective Date, Owner is to undertake certain Construction to upgrade and renovate the Hotel. Manager shall
facilitate such Construction on behalf of Owner but Owner shall be responsible for such Construction and the completion thereof. Such Construction is described on Schedule 3.5 (the “Initial Improvements”) and will be effected pursuant to a
scope of work and terms, plans, specifications and standards developed by Manager in consultation with Owner and approved by Owner (such approval not to be unreasonably withheld or delayed). The costs of the Initial Improvements shall be paid from
the Reserve Fund Account, taking into account the need for Reserve Fund Work at the Hotel. Owner shall diligently prosecute the Initial Improvements, to the extent funds are available therefor in 

  

 12 

 
the Reserve Fund Account, and provision therefor shall be included in the Annual Plan. Manager shall have the rights set forth in Section 3.5(b) if the
Initial Improvements are not completed by the first anniversary of the Effective Date. In connection with the Initial Improvements, Owner and Manager (or an Affiliate of Manager) may, upon approval by Owner, enter into a purchasing agreement in a
form proposed by Manager and approved by Owner, and Manager or such Affiliate will be entitled to receive certain fees thereunder, which fees also shall be in addition to the Management Fees and other amounts payable to Manager under this Agreement.
In addition, it is anticipated that an employee of Manager may be utilized to perform certain limited construction supervision services for the Initial Improvements on behalf of Owner. Owner will (i) be entitled to approve such individual and (ii)
reimburse Manager for (A) all reasonable travel, lodging, telephone and other expenses incurred by such employee that are directly related to his or her performance of such services and (B) the pro rata portion of such employee’s total monthly
compensation (including benefits) based upon the number of days (or partial days and including travel time) in any given month in which such employee performs such services on behalf of Owner. 
  
 (b) If the Initial Improvements are not completed, as determined by Manager
in its reasonable judgment, by the first anniversary of the Effective Date, then (i) at any time thereafter Manager may at its option terminate this Agreement upon at least six (6) months prior written notice to Owner (and Manager will not be
entitled to receive the Special Termination Fee in connection with any such termination); and (ii) at any time after the second anniversary of the Effective Date, Manager may at its option, upon six (6) months prior written notice to Owner, exclude
the use of the “Radisson” name and other Marks in connection with the operation of the Hotel, and in such case Manager shall be entitled to continue to manage the Hotel subject to and in accordance with the terms of this Agreement (other
than any terms hereof requiring the Hotel to be operated under the “Radisson” brand or Marks or as a System Hotel) and thereafter the Hotel shall not be included in the centralized reservation system operated for System Hotels (but upon
Owner’s request, Manager shall consult with Owner concerning the procurement from a Third Party of a franchise or license agreement for the operation of the Hotel under another hotel brand and for the inclusion of the Hotel in any centralized
hotel reservations system offered by a Third Party). The foregoing remedies set forth in clauses (i) and (ii) of this Section 3.5(b) constitute Manager’s sole remedies in the event of a failure by Owner to complete the Initial Improvements.
With respect to any period following the exclusion of the “Radisson” name and Marks from the Hotel pursuant to Manager’s exercise of the remedy set forth in the foregoing clause (ii), Manager shall not charge the Hotel for the
Reservations Fee, the Marketing Contribution or other reservations, training, orientation or other System-program charges that are payable by System Hotels but not by non-System Hotels managed by Manager (but Manager in any event shall continue to
be entitled to receive the Management Fees and Reimbursable Expenses payable to it hereunder, and Owner acknowledges and agrees that, if pursuant to the agreement of Owner and Manager the Hotel becomes affiliated with another hotel system, Owner
will be required to pay reservations, training, marketing and other charges to the extent payable by hotels that participate in such other hotel system). 
  

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 3.6 Construction. The Construction pursuant to the Initial Improvements and all future Construction must
comply with the System and all Legal Requirements. The process set forth below applies to the Construction pursuant to the Initial Improvements and all future Construction involving an estimated cost in excess of $25,000: 
  
 (a) Professional Services. Owner will engage only experienced and licensed,
where applicable, architects, engineers, contractors, interior designers and other design and Construction professionals, and will give due consideration to any opinions that Manager might express. 
  
 (b) Cooperation. Owner, and Persons under its Control, will cooperate with
Manager in the exchange of all information and the exercise by Manager of any of its rights and obligations under this Agreement. 
  
 (c) Approvals. Prior to the Construction Commencement Date, and at the various stages of their development, Owner will submit the conceptual, preliminary
and final drawings, plans and specifications (“Plans”) to Manager for approval. Before ordering, Owner must submit samples, specifications and such other information requested by Manager with respect to the FF&E and OS&E for
Manager’s approval based on the System. After any of the Plans are approved, they become a part of the “Approved Plans”. Manager will review the Plans in a timely manner taking into account Owner’s needs and the overall demand on
Manager’s resources. 
  
 (d) Construction. Owner will be
responsible for the Construction of the Hotel in compliance with the System, and other reasonable requirements imposed by Manager in the ordinary course of business, except as modified by the Approved Plans, but subject to compliance with all Legal
Requirements, including the Americans With Disabilities Act (“Construction Standards”). Owner must retain a licensed architect who will conduct inspections for this purpose. Owner must not vary in any material respect from the Construction
Standards without Manager’s approval. Because Manager will not be reviewing the Plans in detail, Owner must specifically apply for a waiver as to any particular Construction Standard or Manager may enforce compliance at any time. Owner’s
contracts with Owner’s Construction professionals must contain a provision requiring the professionals to Construct the Hotel in accordance with the Construction Standards. After the Opening Date, Owner will not perform any Construction or make
any architectural, structural, design or decorating changes to the Hotel without Manager’s approval. 
  
 (e) Manager’s Inspection. Owner will provide Manager with access to the Hotel, or affected portions thereof, during the Construction process at all
reasonable times. Manager may inspect the Hotel during Construction to determine the progress of Construction. Manager assumes no duty to look for any deviations from the Construction Standards. Owner acknowledges and agrees that the Hotel is to be
open and operating during the Construction pursuant to the Initial Improvements. Such Construction shall be prosecuted in a manner so as not to unduly interfere with the Operation of the Hotel. 
  
 (f) Opening the Hotel. If the Hotel is closed as part of any Construction,
the re-opening thereof cannot occur until Manager and Owner have determined that the applicable requirements have been met. Manager is not liable for delays or losses caused by Manager’s failure to give its approval to allow the re-opening to
occur. 
  
 (g) Non-Hotel Facilities. Owner agrees that any
facilities subsequently Constructed after the Effective Date, which are under Owner’s control and are a part of the Project, but not 

  

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subject to Manager’s Operation under this Agreement (“Non-Hotel Facilities”) must be constructed, completed, equipped, furnished, operated and
maintained to a standard comparable to that required of this Hotel, and that such facilities must be continuously available for use by Hotel guests. Owner will furnish Manager such information with respect to the Non-Hotel Facilities as is
reasonably necessary for Manager to make a determination whether the standard for Non-Hotel Facilities is being met. 
  
 (h) Changes. Once approved, Owner will not make any material changes to the Approved Plans, or any other information submitted to Manager without
Manager’s approval. 
  
 ARTICLE 4 
 GENERAL HOTEL OPERATION 
  
 4.1 Opening the Hotel. The Opening Date (or any re-opening if the Hotel is closed in connection with any Construction) may not occur until, in the
exercise of Manager’s reasonable discretion: (i) the Hotel staff is ready to receive guests and render service in compliance with the System and this Agreement; and (ii) all necessary Governmental Permits have been obtained. In the event the
Hotel is closed in connection with any Construction, the Hotel must not re-open without Manager’s and Owner’s joint approval. 
  
 4.2 Name. Manager will Operate the Hotel under the name “Radisson Hotel Stockton.” Owner will not change the name of the Hotel without
Manager’s approval, which may be withheld in Manager’s sole discretion. 
  
 4.3 Appointment of Manager. Owner appoints Manager as Owner’s exclusive agent to Operate the Hotel during the Operating Term in accordance with the Operating Standards, and Manager accepts such appointment and
agrees to so Operate the Hotel subject to the other provisions of this Agreement. Manager may perform certain of its obligations through its Affiliates. In such cases, Manager will still be directly responsible to Owner, and Owner’s obligations
pursuant to this Agreement will still run directly to Manager. 
  
 4.4 Manager’s Corporate Staff Employee and Affiliates’ Services. Manager will provide the following services directly or through its Affiliates. Notwithstanding that Manager is Owner’s agent in Operating the Hotel, the
services provided pursuant to this Section will be provided in its capacity as an independent contractor on a basis comparable to that Manager and its Affiliates provide generally to other System Hotels. 
  
 (a) Reservation services through the Reservation System. (The Reservation
System may refer individuals attempting to make a reservation at the Hotel to hotels operating under a brand name of one of Manager’s Affiliates when: (i) the Hotel is not in the area where the individual wants to stay; (ii) the Hotel is fully
booked; (iii) the Hotel does not meet the individual’s requirements in other respects; or (iv) the individual is not going to make the reservation at the Hotel, but the reservation can be secured for an Affiliate so that the individual’s
needs are met.) 
  
 (b) Marketing efforts directed towards
generating business for the Hotel and all other System Hotels with the Marketing Contribution funds and any other of Manager’s funds that Manager, in its sole discretion, makes available for this purpose. These Marketing efforts are in 

  

 15 

 
addition to those Manager performs with the Hotel’s Gross Revenues as otherwise set out in the Annual Plan. 
  
 (c) Purchasing programs utilizing the buying power of Manager, its Affiliates
and the businesses they manage and franchise. 
  
 (d) Property
Management and Point of Sale systems, currently in the form of HARMONY developed to facilitate the Operation of the Hotel and its integration into the System. 
  

4.5 General Duties and Authority of Manager. Manager will Operate the Hotel subject to the following: 
  
 (a) Manager and Hotel Employees selected by Manager will enter into written
employment contracts that Manager deems to be reasonably necessary or advisable in connection with the Operation of the Hotel. Such contracts will be in Manager’s name and, subject to Section 5.2, Manager is required to obtain Owner’s
approval only if such contract: (i) obligates Owner for more than $100,000 (subject to annual increases of five percent), inclusive of benefits; (ii) has a term of more than one year; or (iii) cannot be cancelled without cause or without a
cancellation payment upon not more than ninety (90) days notice. Amounts payable under such contracts shall be expenses of operating the Hotel. 
  
 (b) Manager will determine and implement the terms of admittance, charges for rooms and commercial space, and charges for entertainment, food and
beverages. Manager will establish reasonable policies that provide for: (i) charging varying rates to different customers or groups of customers; (ii) permitting individuals to occupy guestrooms at rates lower than published rates or free of charge;
and (iii) permitting individuals to dine at the Hotel’s restaurants and lounges free of charge. 
  
 (c) Manager will notify and consult with Owner and obtain Owner’s consent (which shall not be unreasonably withheld or delayed) prior to engaging in
any negotiations with any labor union lawfully entitled to represent employees of the Hotel. Manager will keep Owner advised of the progress of any such union negotiations, and Owner’s representatives may attend those negotiations. Manager will
present all collective bargaining agreements and labor contracts to Owner for its approval, which shall not be unreasonably withheld or delayed. 
  
 (d) Manager will initiate, settle or otherwise dispose of litigation, or claims which might give rise to litigation, including the adjustment of insurance
claims, in Owner’s name. However, Manager will not take any action with respect to such matters without Owner’s approval where the amount in controversy exceeds $25,000 (subject to annual increases of five percent (5%)). 
  
 (e) Manager may provide Corporate Staff Employees and other Manager
representatives visiting the Hotel on a temporary basis related to Manager’s Operating the Hotel with free room, board and amenities. 
  
 (f) Manager may authorize unbudgeted Capital Expenditures totaling no more than $25,000 (subject to annual increases of five percent (5%)) in any Fiscal
Year when reasonably necessary. 
  

 16 

 (g) Manager and Hotel Employees will present all leases and concessions for restaurants, food service and
other facilities within the Hotel to Owner for approval and signing. 
  
 (h) Manager will use reasonable efforts to purchase goods and services for the Hotel on reasonable terms taking into account customary factors, including price, quality, quantities, delivery dates and Operating Standards. In addition,
unless Owner directs Manager not to do so, Manager may supply OS&E, FF&E and other goods and services used in the Operation of the Hotel under terms and conditions that may include a profit element, or purchase such items from Affiliates who
charge a fee for their services. Manager will review these matters with Owner at Owner’s request and Owner, at any time, may require the Hotel Employees to solicit and obtain bids for such purchases and submit them to Owner for approval. For
material purchases to be made from the Reserve Fund Account in any Fiscal Year, Manager, in the applicable Reserve Fund Work Budget, will propose the method for making such purchases for Owner’s approval. Notwithstanding anything in this
Section (h) to the contrary, Manager will purchase certain FF&E, OS&E and other goods and services from specific suppliers that have been approved by Manager, including Manager or its Affiliates, where such requirement is imposed generally
on System Hotels. Manager shall obtain Owner’s prior approval of any contract with a service provider entered into at any time after the Opening Date if such contract (i) obligates Owner for more than $25,000, (ii) cannot be cancelled without
cause or without a cancellation payment upon not more than ninety (90) days notice or (iii) contains an indemnity of the service provider by the Hotel or by Owner for causes other than those caused by Owner’s willful misconduct or gross
negligence. If Owner does not approve or disapprove any such contract requiring Owner’s approval within ten (10) business days after such contract is submitted to Owner, then Manager may deliver written notice to Owner stating that Owner shall
be deemed to have approved the contract submitted by Manager if it does not approve or disapprove such contract within five (5) business days after the giving of such notice. If Owner does not approve or disapprove any such contract within such
further five (5) business day time period, Owner shall be deemed to have approved such contract. 
  
 (i) Manager and its Affiliates may receive and keep payments from suppliers for their own accounts where such payments are based on volume purchasing
programs for System Hotels, which programs are available to System Hotels generally at prices and on commercially reasonable terms negotiated periodically by Manager or its Affiliates. 
  
 (j) To the extent funds in the Operating Accounts are sufficient to do so, and unless otherwise instructed by Owner, Manager
shall pay from the Operating Accounts all amounts necessary to discharge Owner’s obligations under ground or other leases affecting the Hotel and any Mortgages and Impositions relating to the Hotel, and Manager shall furnish to Owner, upon
request, evidence that all such amounts have been paid. To the extent the terms thereof both (i) are expressly identified in writing by Owner to Manager and (ii) directly affect or relate to the responsibilities of, or would reasonably be executed
to be performed by, Manager in connection with the management of the Hotel in accordance with the terms of this Agreement, Manager shall exercise all reasonable efforts to operate the Hotel in accordance with the terms of any ground or other leases
affecting the Hotel and any Mortgages; provided, however, that Manager shall not be deemed to be in default with respect to its agreement to so operate the Hotel unless 

  

 17 

 
both (x) it has in fact failed to perform such terms and such failure continues beyond the notice and applicable cure period provided for under this
Agreement and (y) Owner has received written notice of default concerning such non-performance from the applicable lessor or Mortgagee. To the extent that Manager is responsible hereunder for effecting, or arranging for, any maintenance, repairs,
alterations, improvements, renewals or replacements in or to the Hotel, Manager shall exercise all reasonable efforts to prevent any liens from being filed against the Hotel in connection therewith. Manager and Owner shall cooperate fully in
obtaining the release of any such liens. 
  
 4.6 Operation at
Owner’s Expense. Manager’s actions with respect to performing its obligations under this Agreement are solely for Owner’s account. Unless specifically stated in this Agreement that Manager is to bear an expense, and that the expense
is not to be charged to the Hotel or the Owner, all expenses, debts and liabilities incurred by Manager in performing such duties are chargeable to the Hotel and are Owner’s responsibility. If the Operation of the Hotel does not generate
adequate funds to pay such expenses, Owner will promptly deposit the required amount into the Operating Account or the Reserve Fund Account, as applicable. Owner agrees that, with respect to the time periods set forth on Schedule 4.6 attached hereto
(which are time periods following the Effective Date), it will provide funds for the operation of the Hotel as contemplated by such Schedule (with the funds shown thereon to be provided at “0 Days” to be provided and available on the
Effective Date). Nothing in this Section shall be deemed to permit Manager to circumvent the limitations on Manager’s authority to incur expenses or make expenditures on behalf of Owner under this Agreement. 
  
 4.7 Impositions. Owner will pay all Impositions prior to delinquency, and, at
Manager’s request, furnish Manager with evidence that they have been paid. However, Owner, in good faith, may contest the validity or amount of any Impositions by appropriate proceedings, so long as such proceedings do not interfere with the
Operation of the Hotel or result in a default under any Mortgage or other Encumbrance. Owner will pay all Impositions being contested unless the collection or enforcement of any lien securing the payment is stayed while the matter is pending.

  
 4.8 Owner’s Assistance; Asset Manager. As a condition
precedent to Manager’s obligation to perform its responsibilities under this Agreement, Owner will assist Manager with respect to those matters that are within Owner’s control, as may be necessary: (i) to keep the Hotel open and Operating
in accordance with the Operating Standards, as determined in Manager’s discretion; and (ii) to enable Manager to exercise its rights and perform its obligations related to this Agreement. The parties acknowledge that Owner has engaged the Asset
Manager to advise Owner with respect to the operation of the Hotel. The Asset Manager shall not have any authority to manage the Hotel or to perform any of the responsibilities of Manager hereunder, but to the extent that Owner authorizes the Asset
Manager to act on Owner’s behalf hereunder and notifies Manager in writing of such authority and any limitations thereon, Manager shall be entitled to rely upon consents, approvals, instructions and other actions of the Asset Manager within
such authority and limitations as if such actions were taken directly by Owner, unless and until Manager is notified in writing to the contrary in writing by Owner. 
  
 4.9 Manager’s Expenses. The supervisory services of Manager’s or its Affiliates’ Corporate Staff Employees
rendered in connection with the Operation of the Hotel, other than 

  

 18 

 
Reimbursable Expenses, will be provided by Manager at its expense and not charged to the Operation of the Hotel or Owner. Except for this obligation, and
unless specifically stated in this Agreement that Manager is to bear an expense, and that the expense is not to be charged to the Hotel or the Owner, Manager: (i) is not liable for any expenses, debts or liabilities for its own account; and (ii) is
not obligated to advance any of its own funds with respect to the performance of its obligations under this Agreement and the Operation of the Hotel. 
  
 4.10 Manager’s Right to Perform Owner’s Obligations. If Owner fails to make any payment, including fees or other amounts owed to Manager and its
Affiliates pursuant to this Agreement, or to perform any of its other obligations pursuant to this Agreement and such failure shall continue for ten (10) business days after Manager has given written notice thereof to Owner, Manager, at its sole
discretion and without further notice to, or demand upon, Owner, and without waiving or releasing Owner from any obligations under this Agreement, may make such payment, either with its own funds (an “Advance”) or with funds withdrawn for
such purpose from the Operating Account, or perform such obligation. Owner will reimburse Manager on demand for all Advances, and all necessary incidental expenses incurred by Manager in connection with the performance of any such obligation (if not
paid from the Operating Account), together with interest at the lesser of eighteen (18%) per year or the highest lawful rate permitted by Legal Requirements from the date such Advance or expenditure is made. 
  
 4.11 Manager’s and Affiliates’ Liability. Notwithstanding any other
provisions of this Agreement, neither Manager, in its capacity as agent or independent contractor, nor any of its Affiliates providing goods or services pursuant to this Agreement is responsible for, and Owner will make no claims against any of them
on account of, any errors of judgment made in good faith in performing their responsibilities or providing goods and services pursuant to this Agreement. 
  
 ARTICLE 5 
 PERSONNEL 
  
 5.1 Hotel Employees. Subject to Section 4.5(a), Manager will establish and
implement all employment policies for Hotel Employees, including salaries, wages, fringe benefits, other compensation, recruitment, hiring, relocation, transfer, discharge and retirement, severance and other benefit plans in accordance with
Manager’s standard policies, subject to reasonable variances Manager establishes for the Hotel. 
  
 5.2 Manager’s Employees. Initially, all Hotel Employees will be employees of Owner, but, subject to the third and fourth sentences of this Section
and the provisions of Section 4.5(a), Manager shall be responsible for and shall have the sole and exclusive right to hire, promote, discharge, supervise, train and determine the terms of employment of the Hotel Employees. Effective January 1, 2002,
Manager will employ substantially all of the Hotel Employees (in any event a sufficient number thereof to avoid the notification requirements of the W.A.R.N. Act) and will provide such employed Hotel Employees credit for length of service with
respect to benefits and vacation. Manager shall obtain the approval of Owner before hiring the general manager, controller and director of sales and marketing of the Hotel. Owner’s approval for the hiring of such employees shall be obtained as
follows: Manager shall submit to Owner the resume of its candidate for each such position, and Owner shall have the right to approve or reject such candidate. If Owner fails to approve or reject any such candidate within 

  

 19 

 
five (5) business days after receipt of the applicable resume or resumes, the applicable candidate shall be deemed approved by Owner. Notwithstanding the
provisions of Section 5.1, 5.4 and this Section 5.2 or any other provision of this Agreement, all costs, expenses and liabilities relating to Hotel Employees shall be expenses of operating the Hotel and the responsibility of Manager for acts or
omissions of Hotel Employees shall not extend beyond responsibility for the gross negligence or willful misconduct of the members of the Executive Committee. Manager acknowledges, however, that the members of the Executive Committee have the duties
specified in the first sentence of Section 5.1 with respect to other Hotel Employees. 
  
 5.3 Termination. Upon termination or expiration of this Agreement, Owner and Manager will take such actions as may be reasonably necessary, and which are consistent with the Operating Standards, to mitigate any loss,
cost, claim, liability or expense with respect to Hotel Employees resulting from such termination or expiration. In addition to its obligation to pay all employee related expenses during the Operating Term and any extensions thereof, Owner agrees to
pay to Manager amounts due Hotel employees arising out of termination of this Agreement, including, without limitation, salaries, employee benefits, bonuses and severance and vacation pay accrued as of the date of termination. Owner also agrees to
reimburse Manager for any claims relating to termination, such as “wrongful termination” claims or state or federal plant closing law claims (e.g., Federal Worker’s and Adjustment and Retraining Notification Act (“W.A.R.N.
Act”) claims or similar state laws). These obligations of Owner will survive termination of this Agreement. In connection with any termination of this Agreement, Manager shall, unless otherwise requested in writing by Owner, give notice of
termination of employment to all Hotel Employees containing such information as is required by any severance policy applicable to such Hotel Employees and the provisions of any applicable federal or state plant closing or similar laws. The notice to
Hotel Employees shall be given at a time agreed upon by Owner and Manager or, in the absence of such agreement, within ten (10) days after notice of termination of this Agreement is given by Owner or Manager, as the case may be. 
  
 5.4 Temporary Assignments. Manager, in its discretion, may assign Corporate
Staff Employees or employees from other System Hotels to the Hotel on a temporary basis. Such assignments will be provided for in the Annual Operating Budget, unless the additional needs are not reasonably anticipated at the time the Annual
Operating Budget is prepared or arise due to emergencies. If not anticipated, Manager will obtain Owner’s approval. If due to an emergency, Manager will assign such employees to the Hotel and advise Owner of the needs and details as soon as
reasonably possible. All such Corporate Staff Employees and other System Hotel employees will be considered as Hotel Employees for all purposes pursuant to this Agreement while on assignment at the Hotel. In addition, the Reimbursable Expenses of
both categories of such employees will be charged to the Hotel as an Expense and Permitted Deduction. 
  
 ARTICLE 6 
 ANNUAL PLAN 
  
 6.1 Preparation and Approval. Manager shall submit an interim operating budget for the first Fiscal Year within thirty (30)
days after the Effective Date, with such interim operating budget to include a cash forecast and Manager’s estimate of the Gross Revenues and Expenses and Permitted Deductions of the Project for the first Fiscal Year. Manager will submit the
Annual Plan for each Fiscal Year after the first Fiscal Year at least forty-five (45) days prior to 

  

 20 

 
the beginning of each such Fiscal Year. Manager will include in the proposed Reserve Fund Work Budget the estimated costs for Reserve Fund Work and will
include in the Capital Expenditure Budget the estimated costs for Capital Improvements. The Reserve Fund Work Budget and the Capital Expenditure Budget each will include the method for handling the accomplishment of the work contemplated thereby,
any technical assistance needed and its cost, and the estimated schedule for planning, beginning and completing the work. Owner shall give its written approval or disapproval of the Annual Plan not later than thirty (30) days after its submission to
Owner. If Owner does not approve or disapprove such Annual Plan within twenty (20) days after its submission to Owner, then Manager may deliver written notice to Owner (with a copy to Owner’s counsel as required by Section 23.12) stating that
Owner shall be deemed to have approved the Annual Plan as submitted by Manager if it does not approve the Annual Plan within ten (10) days after the giving of such notice. If Owner does not approve or disapprove such Annual Plan within such ten
(10)-day period, then Owner shall be deemed to have approved the Annual Plan as submitted by Manager. 
  
 6.2 Failure to Approve. 
  
 (a) If Owner objects to all or any portion of the Annual Plan submitted by Manager, then Owner shall notify Manager as soon as reasonably possible of the
reasons for its objections, and Owner and Manager shall use their good faith efforts to agree in respect of the items to which Owner objects. Pending agreement being reached, Manager will continue to Operate the Hotel in accordance with those parts
of the Annual Operating Budget that Owner has approved. As to any parts not approved, Manager will continue to Operate the Hotel in the new Fiscal Year at levels of expenditure comparable to those of the Annual Operating Budget for the preceding
Fiscal Year with suitable adjustments for other factors, including the volume of business, inflation, local business climate, competition, this Agreement and compliance with the Operating Standards. 
  
 (b) Owner will not withhold its approval with respect to any portion of the
Capital Expenditure Budget if, in Manager’s reasonable opinion, the expenditures are reasonably necessary to resolve physical issues (in addition to those addressed in Section 3.5 in the Initial Improvements) with the Hotel that, in
Manager’s reasonable opinion, adversely impact the Hotel’s compliance with the Operating Standards. If Manager determines that Owner has not complied with the previous sentence, then Manager may issue Owner a notice of intent to terminate
this Agreement. If Owner thereafter fails to cure such physical deficiencies within ninety (90) days after the issuance of such notice, then Manager shall be entitled to give to Owner notice of termination of this Agreement, whereupon this Agreement
shall terminate upon the expiration of thirty (30) days after the giving of such notice. Such termination shall be Manager’s sole remedy, and Manager shall not be entitled to receive the Special Termination Fee in connection therewith.

  
 6.3 Periodic Monitoring. Manager will monitor the Annual Plan
throughout the Fiscal Year. If Manager considers it necessary to revise any portion of the Annual Plan during the Fiscal Year, whether due to volume of business, local business climate, competition, changed trading climate, unforeseen capital
requirements or for any other reason, Manager must submit such revisions with an appropriate explanation to Owner for approval as soon as reasonably possible. The principles established in Sections 6.2 (a) and (b) apply to the approval process in
this Section. 
  

 21 

 6.4 Qualifications. Manager will use commercially reasonable efforts to Operate the Hotel in accordance
with, and to achieve the results projected in, the Annual Plan. While the Annual Plan is an estimate only, Manager will prepare it using assumptions that Manager believes to be reasonable at the time of its preparation. The Hotel’s actual
results may differ from the projected results, and Manager does not guarantee, warrant or represent that the actual financial or other results will conform to the Annual Plan. Nevertheless, Manager shall not, without Owner’s approval, incur
discretionary expenses (meaning expenses other than those that meet all of the following criteria: (i) they are required to be incurred for the operation of the Hotel in accordance with the Operating Standards, (ii) they are determined by a Third
Party or Governmental Authority and (iii) they are not within the reasonable control of Manager, such as utilities and energy expenses, minimum wages under collective bargaining agreements, taxes and insurance premiums) in any full Fiscal Year that
cause the total amount expended with respect to any expense category listed on Schedule 6.4 for any full Fiscal Year to exceed the amount budgeted therefor in the applicable Annual Plan by more than five percent (5%) of such budgeted amount;
provided, however, that the foregoing shall not apply to expenses incurred to mitigate emergencies at the Hotel or to variable expenses to the extent of any increase in Gross Revenues with respect to which such expenses are variable. Notwithstanding
any other provision in this Agreement, this Section qualifies any and all references to the Annual Plan in this Agreement and any and all authority of Manager to incur, create, pay or receive reimbursement from Owner for, costs and expenses incurred
in connection with the operation of the Hotel. Owner and Manager agree that Capital Expenditures during any Fiscal Year may not exceed the amount budgeted therefor in the Annual Plan without the prior approval of Owner, except as provided in Section
4.5(f). 
  
 ARTICLE 7 
 BANK ACCOUNTS 
  
 7.1 Operating Account. Gross Revenues and additional funds supplied by Owner for Working Capital or other purposes, exclusive of funds deposited in the
Reserve Fund Account, will be deposited in the Operating Account. Manager will open, maintain and have sole signatory authority over the Operating Account at all times (provided, however, that Owner shall have the authority to close the Operating
Account but shall not otherwise have signatory authority thereon). All Expenses and Permitted Deductions and any other amounts that Manager is required or authorized to pay pursuant to this Agreement, subject to Section 7.3, will be paid out of the
Operating Account. Manager may also maintain house banks or petty cash funds as reasonably required for Operating purposes. Notwithstanding the foregoing, Manager agrees that the Operating Account will be administered and maintained in accordance
with any cash management agreement with any Mortgagee, provided that Manager has been furnished with copies of any such agreement. 
  
 7.2 Working Capital. Prior to the Opening Date, and after that as required, Owner will deposit the Working Capital into the Operating Account. 

 
 7.3 Reserve Fund Account. After the payment of all Expenses and Permitted
Deductions, Manager, on or before the twenty fifth (25th) day of each month will transfer the 

  

 22 

 
Reserve Fund Payments from the Operating Account into the Reserve Fund Account. Cash received from the sale of the Hotel’s FF&E in the ordinary
course of business will also be deposited into the Reserve Fund Account. If the Hotel’s Operation does not generate sufficient cash to fund the Reserve Fund Account with the Reserve Fund Payments, Owner, within thirty (30) days of
Manager’s request, will provide the cash required to fund the Reserve Fund Account in accordance with this Section. Unless Owner and Manager specifically agree to the contrary, the entire balance of the Reserve Fund Account shall be spent each
Fiscal Year. At the end of any Fiscal Year, any of the Reserve Fund Account not spent will be carried forward to the next Fiscal Year and will be in addition to the payments to be made into the Reserve Fund Account for such Fiscal Year. Subject to
any other uses that may be specifically authorized in this Agreement, Manager and Owner will use the Reserve Fund Account only for the Initial Improvements, Reserve Fund Work and other work authorized in writing by Owner. Notwithstanding the
foregoing, Manager agrees that the Reserve Fund Account will be administered and maintained in accordance with any Mortgage and/or cash management agreement with any Mortgagee, provided that Manager has been furnished with copies of any such
agreement. 
  
 7.4 Remittances to Owner. From time to time, and at
least monthly, Manager will remit all sums in the Operating Account in excess of the amount required for Working Capital to Owner. 
  
 7.5 Investments. Manager will deposit the funds in the Operating Account and the Reserve Fund Account into an interest bearing account or certificates of
deposit, with due regard for the cash needs of the Hotel. Manager will use no other investment mediums without Owner’s approval. If Owner approves any other investment mediums, Owner bears all risk of loss with respect to funds and approved
investments unless such loss results from Manager’s gross negligence or willful misconduct, in which event the risk of such loss will be borne by Manager (unless the same is fully reimbursed by insurance). 
  
 7.6 Withdrawals from Bank Accounts. Manager will designate the individuals
who will have the authority to sign checks and other documents and instructions of withdrawal from the Operating Account and the Reserve Fund Account, provided such individuals are bonded or otherwise insured. Upon the termination or expiration of
this Agreement, Manager will have no further rights to either of these accounts. 
  
 ARTICLE 8 
 BOOKS, RECORDS AND STATEMENTS 
  
 8.1 Accounting System. Manager will keep the Hotel’s financial books and records so that they reflect the results of
the Operation of the Hotel in accordance with the Uniform System. Generally, Manager will interpret the Uniform System consistently with respect to System Hotels that it Operates. Manager will make all of such books and records available to Owner at
all reasonable times for all reasonable purposes. Upon the termination or expiration of this Agreement, Manager will turn over the originals or copies of all of such books and records to Owner so as to insure the orderly continuance of the operation
of the Hotel. After that, Owner will make them available to Manager at all reasonable times and for all reasonable purposes. In connection with a change for all System Hotels Operated by Manager generally, Manager may 

  

 23 

 
change the Hotel’s method of accounting to an “accounting period” system where an accounting period is generally a period of from 28 to 35
days and the Fiscal Year ends on or about December 31. 
  
 8.2
Statements. Within 30 days after the end of each month, Manager will deliver to Owner: (i) a profit and loss statement showing the results of the Hotel’s Operation for such month and the Fiscal Year-to-date; (ii) a balance sheet as of the close
of such month; and (iii) a comparison with the Annual Operating Budget for the same month and Fiscal Year-to-date. 
  
 8.3 Independent Auditor. Manager will cooperate with an independent auditor of national or international repute having hotel experience, selected by Owner
and approved by Manager (and the parties hereby approve Deloitte & Touche), so as to allow the independent auditor to deliver to Owner within one hundred and ten (110) days after the end of each Test Year an audited profit and loss statement
showing the results of the Operation of the Hotel and an audited balance sheet for such Test Year. The auditor will also prepare and deliver a statement showing the calculation of the Management Fee for such Test Year. The cost of the annual audit
shall be an Expense and Permitted Deduction. 
  
 ARTICLE 9

 REPAIRS, MAINTENANCE AND CAPITAL IMPROVEMENTS 
  
 9.1 Maintenance and Repairs. During the Operating Term, Manager will Maintain and Repair the Hotel with funds from the Operating Account. However, with
respect to portions of the Hotel for which Third Parties have Maintenance and Repair obligations through leases or otherwise, the Third Parties will bear such costs and Manager will monitor the performance of such Third Parties’ obligations
under their agreements. Manager has no responsibility to repair or otherwise maintain the structural integrity of the Hotel or other matters relating to defects with respect to the Construction of the Hotel, all of which are Owner’s
responsibilities. With respect to the condition of the Hotel as of the Effective Date, Owner acknowledges that certain elements thereof are not in good repair. Owner agrees to immediately and diligently assess and develop (in consultation with
Manager and, as necessary, Third Party consultants) and implement plans mutually approved by Owner and Manager to repair and remedy the items listed in Schedule 3.5. 
  
 9.2 Reserve Fund Work. During the Fiscal Year, Manager will arrange for the Reserve Fund Work to be done in accordance with
the Reserve Fund Work Budget. Manager will use reasonable efforts to schedule such work consistent with the balance in the Reserve Fund Account at any time and in accordance with the scheduled payments into the Reserve Fund Account and,
notwithstanding any other provision hereof, Owner shall not be required to deposit additional funds (in excess of the Reserve Fund Payments) into the Reserve Fund Account unless the related additional expenditure has been expressly approved in
writing by Owner in its sole discretion, either as part of the Annual Plan or otherwise (but the foregoing does not modify the Operating Standards or Manager’s rights under Sections 3.5 and 6.2(b)). 
  
 9.3 Capital Improvements. During the Fiscal Year, Manager or Owner, as
applicable, will arrange for the Capital Improvements provided for in the Capital Expenditure Budget for that year to be made. Any Construction with respect to such Capital Improvements will be commenced and completed in accordance with Article 3.
Except as otherwise provided in this 

  

 24 

 
Agreement, Owner will make no Capital Improvements with respect to the Hotel without Manager’s approval. 
  
 9.4 Technical Assistance Services. Manager’s responsibilities under this
Agreement with respect to Construction, Reserve Fund Work, Capital Improvements and Restorations include general co-ordination of the Hotel Operation with professionals retained by Owner to handle all aspects of such work. If Owner wishes to retain
Manager or its Affiliates to perform additional technical assistance services with respect to any of these matters, the nature of the services must be documented by a separate, written agreement at an agreed upon fee. 
  
 9.5 Emergencies. Notwithstanding anything in this Agreement to the contrary
or if specific expenditures were not included in the Annual Plan, if, at any time, Manager reasonably believes that: (i) a condition exists at the Hotel that needs immediate attention, including those needed to keep the Hotel Operating or relating
to safety; (ii) Maintenance and Repairs, Reserve Fund Work or Capital Improvements are required to comply with any Legal Requirement or the requirements of any insurance company covering any of the risks against which the Hotel is insured; or (iii)
expenditures are required to remedy any condition caused by a Force Majeure, Manager will first notify Owner and, as promptly as possible, take all steps and make all expenditures reasonably necessary to take care of the matter. However, if, in
Manager’s reasonable opinion, an emergency exists and action needs to be taken before notifying Owner, Manager may act and then notify Owner as soon as reasonably possible after that. 
  
 9.6 HARMONY Upgrades. Manager will arrange for the purchase and installation
and continuing maintenance of HARMONY and other equipment required in connection with the use of the Reservation System at the Hotel through Manager’s approved suppliers and Affiliates. Manager may periodically require the purchase of improved,
modified or replacement components of the Reservation System and HARMONY. Manager is authorized to purchase, install and maintain the equipment required by Manager in connection with any such improvements, modifications and replacements. Manager
will identify such expenditures in the Annual Plan, if known at that time, or obtain Owner’s approval for any material expenditure if the matter cannot wait until the next Fiscal Year. Neither Manager nor its Affiliates has any liability to
Owner if either HARMONY or the Reservation System becomes inoperable or ceases to function due to equipment failure or for any other reason or cause. 
  
 9.7 Signage. Manager will arrange for the purchase of all interior and exterior signs for the Hotel in compliance with the System and as provided for in
the Annual Plan. Signs that use the Primary Marks will be purchased from one of Manager’s designated suppliers. Manager reserves the right to revise and introduce new signs and other identification designs for System Hotels. When this occurs,
Manager will arrange for modifying or replacing the then-existing signs and other identification used for the Hotel. Manager will identify such expenditures in the Annual Plan, if known at that time, or obtain Owner’s approval for any material
expenditure if the matter cannot wait until the next Fiscal Year. 
  

 25 

 ARTICLE 10 
 COMPLIANCE WITH LAWS 
  
 10.1
Compliance by Manager. Manager will use prudent business judgement in Operating the Hotel in compliance with Legal Requirements and the requirements of any insurance companies covering any of the risks against which the Hotel is insured. If the cost
of compliance exceeds $25,000 (subject to an annual increase of five percent) in any instance, Manager will promptly notify Owner. 
  
 10.2 Owner’s Compliance. Owner’s performance is subject to, and Owner will comply with, Legal Requirements and the requirements of any insurance
companies covering any of the risks against which the Project is insured. 
  
 10.3 Right of Owner to Contest or Postpone Compliance. Notwithstanding Sections 10.1 and 10.2, if so permitted by Legal Requirements and not detrimental to the Operation of the Hotel, Owner may contest any Legal
Requirements and insurance requirements, and postpone compliance pending the determination of such contest. 
  
 ARTICLE 11 
 FEES AND OTHER AMOUNTS PAYABLE 
  
 11.1 Base Management Fee, Reservations Fee, Marketing Contribution and
Royalty Fee. For each Fiscal Year during the Operating Term, starting with the Opening Date, Owner will pay Manager the following fees, on or before the tenth (10th) day of each month, in the following percentages for the preceding month.

  
 (a) A Base Management Fee in an amount equal to three and
one-half percent (3.5%) of daily Gross Revenue (the “Base Management Fee”). 
  
 (b) A Reservations Fee in the amount of two percent (2%) of Gross Room Revenue (the “Reservations Fee”). 
  
 (c) A Marketing Contribution in an amount equal to three quarters of one percent (.75%) of daily Gross Room Revenue (the “Marketing
Contribution”). 
  
 (d) A Royalty Fee in an amount equal to
two and three quarters of one percent (2.75%) of daily Gross Room Revenue (the “Royalty Fee”). The Royalty Fee shall be payable only in respect of the first twelve (12) months of the Operating Term hereof. 
  
 11.2 Incentive Fee. For each Fiscal Year during the Term, starting with the
Opening Date, in addition to the fees provided for in Section 11.1, Owner will pay Manager an Incentive Fee (the “Incentive Fee”) in an amount equal to ten percent (10%) of the amount, if any, by which Net Operating Income for such Fiscal
Year exceeds $1,250,000 (with such $1,250,000 amount being stated for full Fiscal Years and to be prorated, based on the number of days elapsed, in respect of any Fiscal Year that is less than a full Fiscal Year). The Incentive Fee for each Fiscal
Year shall be payable on or before the tenth (10th) day following the delivery to Owner of the audited annual financial statements for each Fiscal Year pursuant to Section 8.3, and at the expiration or sooner termination of the Term. 
  
 11.3 Third Party Reservation Charges. For each Fiscal Year during the
Operating Term, starting with the Opening Date, Owner will pay Manager: (i) a Third Party Reservation Charge of $3.90 for each System Reservation delivered through a Third Party System; and (ii) an 

  

 26 

 
Internet Reservation Charge of $2.50 for each System Reservation delivered through RHI’s Internet web site. Manager may increase the Third Party
Reservation Charge and the Internet Reservation Charge from time to time to reflect the increased costs related to providing System Reservations through these methods. The increase will apply to the Hotel as long as it is imposed generally for all
System Hotels. These two reservations charges will be imposed unless the System Reservation for which the charge is made is cancelled in the Reservation System in the same manner in which it was made prior to the guest’s scheduled arrival at
the Hotel. All charges pursuant to this Section 11.3 shall be on the same basis as and no less favorable than those imposed on other System Hotels managed by Manager in the United States. 
  
 11.4 Marketing, Training and Orientation Programs and Fees. Owner will pay Manager any fees assessed with respect to
Marketing, training and orientation programs that exist now or in the future, and that are implemented generally for System Hotels. Manager may modify, eliminate and add such programs on a basis consistent with that for other similarly situated
System Hotels from time to time and the assessments are subject to change by Manager at its sole discretion. The Hotel will be assessed the cost of the attending Hotel Employees’ travel, lodging, food and incidental expenses, and such
reasonable amounts assessed by Manager generally to other System Hotels to recover Manager’s or its Affiliates’ costs with respect to training and orientation programs. The Hotel will be assessed the registration fee for the general
manager to attend the System-wide business conference regardless of whether the general manager attends. All fees and costs covered under this Section 11.4 shall be in proportion to and no less favorable than those charged to other System Hotels
managed by Manager in the United States. 
  
 11.5 Use of Marketing
Funds. Manager will account for the Marketing Contribution in separate books of account, and furnish Owner, upon request, an annual statement of receipts and disbursements. Other than as specifically provided in this Agreement: (i) Manager and RHI
decide, in their sole discretion, the nature and amount of all costs and expenses to be paid out of the Marketing Contribution to themselves, their Affiliates and Third Parties; (ii) the Marketing Contribution is not held in trust or escrow for the
benefit of Owner or other System Hotels; (iii) neither Manager nor its Affiliates have any fiduciary duty with respect to the Marketing Contribution; and (iv) Owner has no rights of any kind with respect to the Marketing Contribution. 
  
 11.6 Annual Reconciliation. At the end of each Test Year following the annual
audit, an adjustment will be made, if necessary, so that all fees and other amounts due Manager that are based on a percentage rather than fixed amount have been properly calculated and paid for the Test Year covered by such audit. Any sums due
either Manager or Owner will be paid upon receipt of the applicable invoice. 
  
 11.7 Expense Reimbursement. Owner will reimburse Manager for all Reimbursable Expenses incurred by Manager in connection with the performance of Manager’s obligations pursuant to this Agreement. 
  
 11.8 Payment Authorization. Owner authorizes Manager (subject to the terms of
any Mortgage or any applicable cash management agreement with any Mortgagee) to pay the fees and other amounts owed to Manager and its Affiliates out of the Operating Account in 

  

 27 

 
accordance with this Agreement and Manager’s then-current policy. As long as, pursuant to such authority, Manager has received all payments owing to it
under this Agreement, Owner is not required to make the payment directly. If at any time, funds in these accounts are not sufficient to cover such payments, Owner will pay the amount of any shortfall within five days of its receipt of the applicable
invoice. The foregoing provisions concerning compliance with the terms of any Mortgage or cash management agreement are not intended to, and shall not, excuse Owner from any payment obligation under the terms of this Agreement. 
  
 11.9 Interest. Fees, Advances and other amounts due Manager or its Affiliates
that are not paid out of the Operating Account or the Reserve Fund Account when due will bear interest at the lesser of 18% per year or the highest lawful rate permitted by Legal Requirements. 
  
 11.10 No Right of Off-Set. Neither Owner nor Manager has any right, claim or
defense of “offset” against the other. Manager may pay all fees and other amounts due Manager out of the Operating Account or, if the Operating Account does not have sufficient funds, Owner will pay all fees and amounts due Manager
regardless of any claims or defenses that Owner may have or assert against Manager or its Affiliates. 
  
 ARTICLE 12 
 INSURANCE 
  
 12.1 Insurance Coverage. Owner will maintain insurance sufficient to provide Owner and Manager with reasonable and adequate
protection in the Operation of the Hotel. The coverage to be maintained and the minimum limits required are set forth on the attached Schedule 12.1. In addition, Owner shall maintain such insurance as may be required by any Mortgage. The required
coverages will be purchased so as to be in effect from the Opening Date. The companies providing such policies will be subject to Manager’s approval. All policies will name Owner, Manager, Carlson Hotels Worldwide, Inc., RHI and Manager’s,
Carlson Hotels Worldwide, Inc.’s and RHI’s respective Affiliates as additional insureds, and will contain a provision that the policies may not be cancelled, amended or allowed to expire without ninety (90) days prior written notice to
Manager. Owner will provide Manager with evidence acceptable to Manager that the required policies are in effect no later than the Opening Date (or possibly earlier as set out above), and annually after that, prior to the applicable policy’s
expiration. 
  
 12.2 Purchase of Insurance. Owner is responsible
for obtaining the required insurance coverage. If the Hotel is eligible to participate in Manager’s insurance program Manager, at Owner’s request, will arrange for such participation. Any insurance coverage obtained with respect to the
Hotel is the primary coverage and must pay 100% of any losses incurred by Owner or Manager. Owner’s obligation to maintain the required insurance is not limited in any way because of any insurance that Manager or its Affiliates carry. Owner has
no right to deny coverage of Manager’s losses and Owner has no right to any additional coverage obtained by Manager. 
  
 12.3 Waiver of Subrogation. As used herein, the term “Property Policy” means any fire and extended coverage or all-risk material and property
damage insurance policy which is carried by or on behalf of either Owner or Manager or any of the other parties named in Section 13.1. Each of Owner and Manager agrees to obtain in each Property Policy evidencing any 

  

 28 

 
insurance it is responsible for providing hereunder language or an endorsement providing that any release from liability of or waiver of claim for recovery
from the other party or any of the parties named in Section 13.1 entered into by the insured under such Property Policy prior to any loss or damage shall not affect the validity of the Property Policy or the right of the insured thereunder to
recover, and providing further that insurer waives all rights of subrogation which such insurer might have against the other party or any of the parties named in Section 13.1. In addition to and without limiting or being limited by any other
releases or waivers of claims in this Agreement, but rather in confirmation and furtherance thereof, to the extent not prohibited by law, Owner waives all claims for recovery from Manager and its agents, partners and employees and the Hotel
Employees, and Manager waives all claims for recovery from Owner, Owner’s members, partners and their respective agents, partners and employees for any injury or damage to or theft, robbery, pilferage, loss or the loss of use of any of their
respective property to the extent of proceeds recovered or recoverable under insurance policies maintained or required to be maintained hereunder. It is the intention of Owner and Manager that each of them and their respective Affiliates either be
named as an insured or additional insured or be the beneficiaries of waiver of subrogation provisions, as applicable, under all property, liability and other insurance procured and maintained in respect of the Hotel pursuant to this Agreement.

  
 12.4 Owner’s Risk. The required insurance coverage is for
Manager’s benefit and protection. Manager makes no warranty or representation that the policies are adequate for Owner’s needs. Owner assumes all risks in this respect and waives all claims against Manager with respect to these matters and
with respect to any partial or fully uninsured claims. 
  
 12.5
Changes. Manager may make such reasonable changes to the insurance requirements consistent generally with changes with respect to other System Hotels, including requiring different or additional coverages, conditions and limits to reflect inflation,
changes in standards of liability, higher damage awards in public or product liability litigation and business related liability, or other relevant changes in circumstances. 
  
 12.6 General Contractor’s Liability Insurance. Prior to the start of any Construction, Owner will require the
appropriate Third Parties to procure and maintain commercial general liability insurance (including products, completed operations and independent contractors coverage) with limits of at least $15,000,000 naming Manager and its Affiliates as
additional insureds, and statutory workers’ compensation insurance with employer’s liability limits of at least $1,000,000. 
  
 ARTICLE 13 
 INDEMNIFICATION AND LIMITATION OF
LIABILITY 
  
 13.1 Indemnification by Owner. Owner assumes sole
and complete responsibility for, and will indemnify and hold harmless Manager and its Affiliates and their respective partners, members, shareholders, directors, officers, employees and agents (the “Indemnified Parties”) against and from,
all payments of money, including those with respect to fines, penalties, taxes, losses, damages, costs, expenses (including reasonable attorney fees, investigation expenses, court costs, deposition expenses, and travel and living expenses)
(“Payments”) due to any claims, causes of action, investigations, administrative proceedings and demands (“Claims”) with respect to this Agreement, or the Construction or Operation of the Hotel, any occurrence at the Hotel, the

  

 29 

 
presence of any hazardous materials on or under, or migrating from, the Hotel or the Hotel site or the environmental condition of the Hotel and the Hotel
site, or any acts or omissions of Owner or anyone associated with Owner, including those caused by Manager’s or its Affiliates’ simple negligence and those for which Manager or its Affiliates might be held to be strictly liable,
“wrongful termination” claims by Hotel Employees and violations of Legal Requirements, such as the Americans With Disabilities Act and the W.A.R.N. Act. Owner’s indemnification obligations: (i) do not apply to Payments based on Claims
that are directly caused by Manager’s gross negligence or willful misconduct; (ii) do apply to all other Claims, including those based on: (a) theories of vicarious liability, including agency, apparent agency or employment or (b) failure to
compel Owner’s compliance with the provisions of this Agreement; and (iii) do apply to Payments made by Manager, or for which Manager is responsible, in connection with Manager enforcing Owner’s obligations. For purposes of determining the
Persons entitled to be indemnified under this Section and Persons who are considered to be acting on behalf of Manager for purposes of this Section, Hotel Employees other than the members of the Executive Committee shall not be deemed to be
employees or agents of, or otherwise acting on behalf of, Manager. Notwithstanding any other provision of this Section, Owner shall in no event be required to indemnify an Indemnified Party from and against Claims that are directly caused by his,
her or its own gross negligence or willful misconduct. Notwithstanding any contrary provision of this Section 13.1, Owner and Manager agree for the benefit of each other that, with respect to Payments and Claims covered by this Section, they will
look for recovery first to the appropriate insurance coverages in effect pursuant to this Agreement, regardless of the cause of such Claim. Any payment pursuant to this Section 13.1 shall be treated as an Expense and Permitted Deduction to the
extent that the basis of the Claim with respect to which the payment is made is an expense that would qualify as such under the definition of “Expenses and Permitted Deductions” set forth herein. Such payments otherwise shall be a cost of
operating the Hotel, which shall be payable from the Operating Account (or if there are not sufficient funds available therein, by Owner) but shall not constitute a deduction in calculating Gross Operating Profit for purposes of Section 17.2 or Net
Operating Income for purposes of determining the Incentive Fee payable hereunder. 
  
 13.2 Defense against Claims. Owner will defend Manager against all Claims for which Owner has an indemnification obligation under Section 13.1, provided that upon notice to Owner, Manager, in its sole discretion, may
use its own counsel and may control such defense, but the cost thereof shall be an Expense and Permitted Deduction. 
  
 13.3 Continuation of Obligations. The indemnification and other obligations contained in this Article will continue in full force and effect subsequent to
and notwithstanding the expiration or termination of this Agreement. 
  
 ARTICLE 14 
 MARKS 
  
 14.1 Ownership. Manager is using the Marks and the system in the performance of its responsibilities pursuant to this Agreement. Owner acquires no rights
to the Marks or the System pursuant to this Agreement or otherwise. Owner will not assert any ownership or other rights in the Marks or the System and will not take any action whatsoever to contest Manager’s proprietary interest in any of them.

  

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 14.2 Changes. Manager, from time to time in its sole discretion, may revise, update, amend, change,
modify or supplement (“Modifications”) all or any part of the Marks or the System. As soon as reasonably possible, Manager will cease using the former Marks or System and commence using the modified Marks or System with respect to the
Operation of the Hotel. Manager will identify any such expenses associated with such Modifications in the Annual Plan if known at that time, or obtain Owner’s approval for any material expenditure if the matter cannot wait until the next Fiscal
Year. 
  
 14.3 Defense or Enforcement of the Marks. Owner will
immediately notify Manager of any circumstance or claim that Owner reasonably believes may affect Manager’s ownership or use of the Marks. If Owner is named as a party in any proceedings with respect to any such circumstance or claim, Owner
must deliver copies of all relevant documents to Manager within seven days after receiving them, and tender the defense to Manager. Manager, at its expense, will defend against such circumstance or claim resulting solely with respect to the use of
the Primary Marks. If Manager makes a determination with respect to any proceedings or negotiations in connection with the Marks through legal counsel, or there is an adjudication by a court of competent jurisdiction, that a Third Party’s right
to all or any part of the Marks is superior to Manager’s, Manager will cease using that part of or all of the Marks with respect to the Operation of the Hotel. Other than Manager’s obligation to defend as set forth above, Manager’s
decisions and actions with respect to this Section are not a breach by Manager under this Agreement, and gives Owner no claim for damages or other relief outside of this Agreement. 
  
 ARTICLE 15 
 CONFIDENTIAL AND PROPRIETARY SYSTEM INFORMATION 
  
 15.1
Right to Use. Owner will not use any Confidential or Proprietary System Information for any purpose other than with respect to the Construction and Operation of the Hotel pursuant to this Agreement. 
  
 15.2 Revisions. Manager may revise, update, amend, change, modify or
supplement (“Revisions”) the Confidential and Proprietary System Information any time. Manager will continue to Operate the Hotel pursuant to such Revisions as they exist from time to time. Manager will identify any expenses associated
with such Revisions in the Annual Plan if known at that time, or obtain Owner’s approval for any material expenditure if the matter cannot wait until the next Fiscal Year. 
  
 15.3 Ownership and Non-Disclosure. As between them, Manager and Owner each own the Hotel Data that is actually in their
respective possession, and each of them, and their respective Affiliates and any Third Parties who have lawfully obtained Hotel Data, may use it without Manager or Owner being in default of this Agreement. If, upon the termination or expiration of
this Agreement, Owner has not retained any Guest Data in its possession, Manager, at Owner’s request, will use reasonable efforts to provide the history of guests’ stays at the Hotel for the most recent 12 months, together with their
names, addresses and telephone numbers. Reasonable efforts do not include manually copying the information or developing ways to retrieve this information from HARMONY that do not exist at the time of the request. As between Manager and Owner,
Manager owns all other Confidential and Proprietary System Information. Owner will make no claim and has no rights with respect to such information other 

  

 31 

 
than those that are granted in this Agreement. Owner will divulge Confidential and Proprietary System Information only to Persons who must have access to
such information in order to perform their responsibilities with respect to this Agreement or the Construction or Operation of the Hotel. Owner will use all reasonable means to protect the confidentiality of the Confidential and Proprietary System
Information and will not communicate or make it available to, or use it for the benefit of, any unauthorized Persons. Manager shall not disclose to Third Parties or publish to the general public the financial or operating results of the Hotel
without the prior written approval of Owner; provided, however, that Manager may make such disclosures of such information to its auditors and attorneys as reasonably required in the course of its business and may combine information concerning the
Hotel’s financial and operating results with similar information concerning other System Hotels and disclose such combined data and information to hospitality research services, such as Smith Travel Research, Inc.; to its auditors and attorneys
and to the extent required as part of its franchise disclosure obligations. The provisions of this Section 15.3 shall not preclude Owner or Manager from making any disclosure as and to the extent required by applicable law. 
  
 15.4 Survival. This Article will continue in full force and effect subsequent
to and notwithstanding the expiration or termination of this Agreement 
  
 ARTICLE 16 
 MUTUAL TERMINATION RIGHTS 
  
 The following are material defaults, which, if applicable to a party, entitles the non-defaulting party, in addition to and cumulative of any and all
rights and remedies available to the non-defaulting party under this Agreement, at law or in equity, to terminate this Agreement upon notice to the defaulting party and without the opportunity to cure the default except as specifically set out in
this Article: (i) filing a petition or pleading under any bankruptcy or insolvency laws, or if such a petition is filed against, and is not opposed by a party; (ii) the appointment of a permanent or temporary conservator, receiver or trustee for a
party, or all or substantially all of a party’s property by any court having jurisdiction; (iii) making an assignment for the benefit of creditors or a written statement to the effect that a party is unable to pay its debts as they become due;
(iv) the issuance of a levy, execution or attachment against all or substantially all of a party’s property, which is not released, stayed or satisfied within 30 days; (v) a party is dissolved; or (vi) a material, final judgment against a party
remains unsatisfied for 30 days or longer without being discharged, vacated, reversed or stayed (unless a supersedeas bond is filed). The effective date of termination under this Article is the date set forth in applicable notice. 
  
 ARTICLE 17 
 OWNER’S TERMINATION RIGHTS 
  
 17.1 Owner’s Right to Terminate for Default. In addition to and cumulative of any and all rights and remedies available to Owner under this Agreement, at law or in equity, Owner may terminate this Agreement by
notice to Manager if Manager fails to perform any of Manager’s material obligations contained in this Agreement, and such failure continues for a period of 30 days after notice to Manager setting out the failure in reasonable detail. If the
failure is such that it cannot reasonably be cured within such 30 days, Owner may not terminate this Agreement as 

  

 32 

 
long as Manager begins the cure within the 30 days and proceeds diligently and in good faith to accomplish the cure and provides Owner with reasonable
evidence of its actions to effect such cure. 
  
 17.2 Owner’s
Performance Termination Rights. 
  
 (a) Owner shall have the
right, subject to Manager’s rights to cure described below, to terminate this Agreement (without the payment of a Special Termination Fee) if, for any full Test Year following the second (2nd) full Test Year during the Operating Term hereof,
the Hotel’s Net Operating Income is less than $1,500,000 (the “Net Operating Income Threshold”); provided, however, that Owner shall have such termination right only if the failure to achieve the Net Operating Income Threshold is not
directly attributable to (x) an event constituting a Force Majeure and/or (y) any major renovation of the Hotel during such Test Year or during the last six months of the Test Year immediately preceding the applicable Test Year. The determination as
to whether such test has been satisfied shall be made in accordance with the audited annual financial statements prepared and delivered pursuant to Section 8.3. Notwithstanding the foregoing, if the Initial Improvements are not completed on or
before the first anniversary of the Effective Date, the commencement date for the foregoing performance test shall be extended by a period of time equal to that by which the date of completion of the Initial Improvements follows such first
anniversary; provided, however, that if such extended commencement date (the “Extended Date”) is not the first day of a calendar month, the applicable extended commencement date shall be the first day of the calendar month next following
the Extended Date. In case of any such extension, the “Test Year,” for purposes of this Section 17.2 only, shall mean each full twelve (12) month period commencing on such extended commencement date and each anniversary thereof, and
Manager’s compliance with the performance test for any such pertinent period will be determined pursuant to the unaudited financial statements prepared for the Hotel pursuant to Section 8.2. 
  
 (b) Such option to terminate shall be exercised by Owner serving written
notice thereof on Manager no later than sixty (60) days after the receipt by Owner of the annual audited financial statements pursuant to Section 8.3. If Owner serves such notice, subject to Manager’s cure rights described below, this Agreement
shall terminate ninety (90) days after the date such notice is given. Owner’s failure to exercise its right to terminate this Agreement with respect to any given Test Year shall not be deemed an estoppel or waiver of Owner’s right to
exercise its termination rights with respect to any subsequent Test Year in which the Hotel fails to achieve the Net Operating Income Threshold; however, Owner’s termination rights for a particular Test Year shall be waived if Owner fails to
give a termination notice within sixty (60) days after its receipt of the annual audited financial statements for such Test Year pursuant to Section 8.3. 
  
 (c) Upon receipt of Owner’s timely notice of termination under this Section 17.2, Manager shall have the option, to be exercised within thirty (30)
days after the date on which Manager receives Owner’s notice of its intent to terminate this Agreement (“Cure Period”), to avoid such termination by paying to Owner, within the Cure Period, an amount equal to the amount by which the
Hotel’s Net Operating Income was below the Net Operating Income Threshold for the applicable Test Year (“Cure Amount”). Such Cure Amount payment shall be treated as an increase to the applicable Fiscal Year’s and Test Year’s
Net Operating Income. If Manager exercises such option, then the foregoing election by Owner to terminate this 

  

 33 

 
Agreement under this Section 17.2 shall be canceled and of no force or effect and this Agreement shall not terminate. Manager may elect to pay the Cure
Amount only two (2) times during the Operating Term of this Agreement (and in no event shall any Cure Amounts paid by Manager hereunder be repaid or refunded to Manager). 
  
 17.3 Owner’s Limited Termination Right Upon Sale. Under certain limited circumstances, Owner may terminate this
Agreement in connection with a sale of the Hotel. The terms of and conditions to such termination right are set forth in Section 21.3. 
  
 17.4 Special Right of Owner to Terminate Without Cause. Owner shall have the right to terminate this Agreement, without cause, at any time upon at least
ninety (90) days prior written notice to Manager and the payment to Manager of an amount equal to the sum of (i) the Special Termination Fee and (ii) an amount equal to three (3) times the Average Monthly Base Management Fee. Such payment shall be
made no later than, and shall be a condition precedent (which may be waived by Manager) to, the termination of this Agreement. In addition, upon any such termination of this Agreement, all accrued and unpaid Management Fees and other accrued and
unpaid amounts payable to Manager under this Agreement shall be immediately due and payable. The Right of First Offer provided for in Section 21.4 hereof also shall survive any such termination until the date that is six months after such
termination, as provided in such Section. The provisions of this Section shall survive any termination of this Agreement. 
  
 ARTICLE 18 
 MANAGER’S TERMINATION RIGHTS

  
 18.1 Default - No Opportunity to Cure. The following are
events of material default by Owner, which entitle Manager, in addition to and cumulative of any and all rights and remedies available to Manager under this Agreement, at law or in equity, to terminate this Agreement upon notice to Owner without
Owner having the opportunity to cure the default: 
  
 (a) With
respect to the Owner or the Project: (i) willful failure to deliver to Manager a copy of any notice of default received from any Person who has the right to declare a default under any Encumbrance, Mortgage or ground or land lease; or (ii) upon
Manager’s reasonable request, failure to provide additional information with respect to such alleged default or any action or proceeding related to it; or (iii) the commencement of proceedings to foreclose any Encumbrance or Mortgage that are
not dismissed within 30 days. 
  
 (b) Any representations or
warranties made by Owner in this Agreement prove to be materially untrue at the time they were made or Owner materially breaches any of the representations or warranties given by Owner in this Agreement. 
  
 The effective date of termination for a default under this Section is the
date set forth in Manager’s notice. 
  
 18.2 Default -
Opportunity to Cure. The following, without limitation, are events of material default by Owner, which entitle Manager, in addition to and cumulative of any and all rights and remedies available to Manager under this Agreement, at law or in equity,
to terminate this Agreement upon notice to Owner, subject to Owner’s right to cure. The cure period for any default, unless stated otherwise, is thirty (30) days from the receipt of the notice. 
  

 34 

 (a) Failure to pay any past due fees or other amounts owed to Manager or its Affiliates within ten (10)
days after notice, provided that such failure is not a result of Manager’s failure to make such payments even though Manager had access to sufficient funds in the Operating Account and the Reserve Fund Account. 
  
 (b) Failure to provide funds to Manager or to the Operating. Account or
Reserve Fund Account in accordance with the terms of this Agreement, and the continuation of such failure for ten (10) business days after notice of such failure. 
  
 (c) Failure to comply with: (i) any other material provision of this Agreement; or (ii) a sufficient number of non-material
provisions which, collectively, constitute materiality or evidence a disregard for Owner’s obligations under this Agreement, provided, however, if such default is such that it cannot reasonably be cured within thirty (30) days, Manager may not
terminate this Agreement as long as Owner begins the cure within the thirty (30) days and proceeds diligently and in good faith to accomplish the cure within a period not to exceed one hundred eighty (180) days. 
  
 (d) Failure to provide evidence that Owner has obtained any insurance
coverage required to be obtained by Owner pursuant to this Agreement. 
  
 (e) Failure to approve any Capital Improvements necessary to allow the Hotel to be Operated in accordance with this Agreement, and, once approved, failure to complete them. 
  
 (f) The occurrence of an Ownership Transfer in violation of this Agreement. 
  
 The effective date of any termination under this Section is the date
specified in Manager’s termination notice. 
  
 18.3
Suspension of Services. In addition to any other remedies Manager has, Manager, after five (5) business days notice to Owner of any material default by Owner, and after expiration of any applicable cure period under Section 18.2, may suspend the
services of the Reservation System and expenditures of the Marketing funds for the Hotel’s benefit until the default is cured. Suspension of any of such services does not constitute a constructive termination of this Agreement or a breach of
any duty that Manager may have to Owner. Owner will not seek or be entitled to damages or equitable relief preventing or curtailing Manager’s rights under this Section. Owner must continue to pay all fees and other amounts due under this
Agreement during any suspension period. In addition, for any period that a suspension is effective, Manager, in its sole discretion, may exclude the use of the Marks in connection with the Project, including removing or covering any signage in a
manner reasonably satisfactory to Manager. 
  
 18.4 Special
Terminations. Manager may terminate this Agreement for the following reasons upon thirty (30) days notice to Owner. 
  
 (a) If Manager is materially limited in Operating the Hotel in accordance with the Operating Standards because of Legal Requirements enacted after the
Effective Date of the then-current Operating Term. 
  

 35 

 (b) If any material Governmental Permit required for Manager’s performance under, or the
Construction or Operation of the Hotel in accordance with, this Agreement is suspended, withdrawn or revoked for more than three consecutive months, but only if such suspension, withdrawal or revocation is due to circumstances beyond Manager’s
reasonable control and only if Manager has made reasonable efforts to contest such suspension, withdrawal or revocation. 
  
 Any termination pursuant to this Section is without liability by either party to the other party except for any causes of action a party has against any
other party for any matters occurring up to and through the date of such termination, whether resulting from nonpayment of fees or any other default under this Agreement or otherwise. 
  
 ARTICLE 19 
 CONSEQUENCES UPON TERMINATION/EXPIRATION 
  
 19.1
Owner’s Obligations. Upon the expiration or termination of this Agreement, Owner will immediately do the following, without limitation: 
  
 (a) Pay all amounts due and owing to Manager and its Affiliates, submit any missing Hotel Data to Manager or its Affiliates, and deposit with Manager an
amount reasonably estimated by Manager to be sufficient to cover the amounts that will become due and owing after the termination or expiration date, attributable to the period prior to such date. 
  
 (b) Not use the Marks or the System and not represent the Hotel to the public
or hold it out as a System Hotel or a former System Hotel. Owner will accomplish this by, without limitation, removing, returning or destroying, as instructed by Manager: (i) all operating manuals, any Confidential and Proprietary System
Information, Marketing materials and all other printed materials containing the Marks; (ii) all interior and exterior signs, OS&E and FF&E bearing the Marks; and (iii) anything else which might result in customers continuing to identify the
Hotel as a System Hotel. Owner will cover up anything bearing the Marks or otherwise identified as being associated with the System that cannot reasonably be removed on or before the expiration or termination date, until it can be removed, but no
later than thirty (30) days after the termination or expiration date. 
  
 (c) Change the listing for the telephone and facsimile numbers for the Hotel. 
  
 (d) Offer Manager all FF&E, OS&E and other equipment or items bearing any of the Marks at their purchase price, depreciated over a period of five (5) years. 
  
 19.2 Manager’s Rights. In anticipation of the expiration or termination
of this Agreement, Manager may begin to take action needed to accomplish any or all of the actions required pursuant to Section 19.1 as long as there is no unreasonable disruption to the Hotel’s Operation, taking into account the objectives to
be achieved with respect to de-identification of the Hotel. Manager may pay the costs associated with such actions out of the Operating Account as an Expense and Permitted Deduction. If sufficient funds are not available in the Operating Account,
Owner will reimburse Manager upon receipt of a statement of costs. If Owner prevents Manager from taking any of such actions, or fails to comply with Section 19.1 within the thirty (30) day period, Manager may seek injunctive or other relief to
enforce Owner’s obligations or Manager’s rights without posting bond. 
  

 36 

 19.3 Cooperation Upon Termination. Upon the termination or expiration of this Agreement, Manager shall,
at Owner’s expense, cooperate with and assist Owner and any successor management company in a smooth and orderly transition in the management and operation of the Hotel in a manner consistent with past practices for day-to-day operations. In
connection therewith, Manager shall cooperate to transfer to Owner, to the extent assignable under applicable Legal Requirements, all of Manager’s right, title and interest in and to all restaurant, liquor and other licenses and permits
relating solely and specifically to the Hotel. 
  
 19.4 Survival.
This Article will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement. 
  
 ARTICLE 20 
 DAMAGE OR DESTRUCTION; CONDEMNATION

  
 20.1 Damage or Destruction—Termination. If the Hotel is
totally destroyed or substantially damaged, or if all or a substantial portion of the Non-Hotel Facilities are totally destroyed or substantially damaged, such that the Hotel becomes uneconomical, unfeasible or not reasonably practical to Operate,
either party, within sixty (60) days after the occurrence of such event, may terminate this Agreement by notice to the other. The Hotel will be deemed to have been substantially damaged if fifty percent (50%) or more of the aggregate floor space of
the Hotel becomes untenantable. 
  
 20.2 Damage or
Destruction—Restoration. If the Hotel is damaged, but not to the extent required to give rise to a right to terminate this Agreement, or if neither party elects to terminate this Agreement pursuant to Section 20.1, Owner will, subject to the
requirements of any Mortgage, promptly commence and expeditiously complete the Restoration in accordance with Section 20.6. 
  
 20.3 Condemnation—Termination. If: (i) all or a substantial portion of the Hotel is taken by Condemnation (other than for temporary use), or (ii) if
all or a substantial portion of the Non-Hotel Facilities are taken such that the Hotel becomes uneconomical, unfeasible or not reasonably practical to Operate, this Agreement will terminate as of the date of such taking. A substantial portion of the
Hotel is deemed taken if, in Owner’s or Manager’s reasonable opinion, the part not taken may not be repaired, restored, replaced, rebuilt or utilized so as to be acceptable as a System Hotel under the then current System. If this Agreement
is terminated pursuant to this Section, the Condemnation award will, subject to the requirements of any Mortgage, be paid to Owner as its property. 
  
 20.4 Condemnation—Restoration. If less than a substantial portion of the Hotel or the Non-Hotel Facilities are taken by Condemnation, or this
Agreement is not terminated pursuant to Section 20.3, Owner will promptly commence and expeditiously complete any necessary Restoration in accordance with Section 20.6. 
  
 20.5 Condemnation—Temporary Use. While a Condemnation of all or part of the Hotel for temporary use exists, this
Agreement will remain in full force, subject to the following: 
  
 (a) If the Condemnation is for a period not extending beyond the Operating Term, the Condemnation award, including any interest, will be included in Gross Revenues for the Fiscal 

  

 37 

 
Year in it is which received. When the Condemnation terminates, Owner will promptly, subject to the requirements of any Mortgage, commence and expeditiously
complete any necessary Restoration in accordance with Section 20.6. 
  
 (b) If the Condemnation is for a period extending beyond the Operating Term, that portion of the Condemnation award, which is attributable to the period up to the expiration of the Operating Term, will be included in Gross Revenues for the
Fiscal Year in which it is received. 
  
 20.6 Restoration. Owner
will, subject to the requirements of any Mortgage, promptly commence and expeditiously complete any necessary Restoration in accordance with Article 3. Owner will, subject to the requirements of any Mortgage, Restore the Hotel as nearly as possible
to its value, condition and character immediately prior to the damage, destruction or Condemnation and so that it would be acceptable as a System Hotel under the then current System. Owner will, subject to the requirements of any Mortgage, complete
the Restoration as soon as reasonably possible after the date of such damage, destruction or the date after which any portion of the Hotel is not available to Manager due to a Condemnation, but in any event no later than one (1) year following the
applicable date. If in any event the Restoration is not completed within one (1) year following the applicable date, Manager may terminate this Agreement upon thirty (30) days’ notice to Owner. 
  
 20.7 Fees. During the period from the date of the damage or destruction, or
the date from which any portion of the Hotel is not available to Manager due to a Condemnation, through the: (i) completion of the Restoration; or (ii) termination of this Agreement, Owner will continue to pay Manager and its Affiliates the fees and
other amounts actually earned pursuant to this Agreement. 
  
 20.8
Manager’s Award. With respect to any Condemnation, Manager may initiate proceedings against Governmental Authorities to recover any damages or compensation to which Manager may be entitled in addition to fees earned based on Owner’s award.
Owner will cooperate with Manager in such proceedings. 
  
 20.9
Consequences of Termination. A valid termination pursuant to this Article is subject to Article 19, but is otherwise without liability by either party to the other party except: (i) as set forth in this Article; and (ii) for any causes of action a
party has against the other for matters occurring up to and through the date of such termination, whether resulting from nonpayment of fees, default or otherwise. The Operating Term is not extended or renewed because of any of the events
contemplated by this Article. 
  
 ARTICLE 21 
 TRANSFERS 
  
 21.1 Assignment by Manager. Manager may Transfer this Agreement in whole or in part without Owner’s consent to: (i) an Affiliate; (ii) any successor
or assignee of Manager resulting from any merger, consolidation or reorganization; or (iii) another Person that acquires all or substantially all of Manager’s business and assets. Manager will notify Owner as soon after a Transfer takes place
as reasonably possible and, in connection therewith, Manager or the applicable transferee will provide evidence to Owner that such transferee has assumed the 

  

 38 

 
obligations of the “Manager” hereunder that have been so transferred. After a Transfer, Manager’s liability under this Agreement is terminated
except when the Transfer is to an Affiliate, and except for any causes of action either party has against the other for matters occurring up to and through the date of such termination, whether resulting from nonpayment of fees, default or
otherwise. 
  
 21.2 Transfers by Owner. Subject to the following
Sections, Owner will not effect or permit an Ownership Transfer without Manager’s prior written consent. Manager will not withhold its consent provided that the Ownership Transfer meets the following conditions. 
  
 (a) Owner provides Manager with sixty (60) days notice of the proposed terms
of such Ownership Transfer and any other information reasonably required by Manager. 
  
 (b) With respect to any Transfer of Owner’s entire interest in the Hotel, the Hotel and this Agreement must be Transferred to the same Person, and such Person must assume this Agreement pursuant to a written
instrument in form and substance reasonably satisfactory to Manager and reflecting any amendments to this Agreement reasonably necessary in order to preserve and protect Manager’s rights hereunder in light of the change in ownership.

  
 (c) All of Owner’s monetary obligations due to Manager
and its Affiliates must be paid in full, and Owner cannot otherwise be in default under this Agreement or any other agreements with Manager or Manager’s Affiliates at the time of notice or the Transfer. 
  
 (d) The Ownership Transfer will not adversely affect the Operation of the
Hotel pursuant to this Agreement. 
  
 (e) With respect to any
Transfer of Owner’s entire interest in the Hotel, the transferee: (i) must have a verifiable, adequate net worth determined in accordance with generally accepted accounting principles to timely discharge Owner’s obligations under this
Agreement; (ii) must agree to be bound in writing as Owner under this Agreement in form and substance reasonably satisfactory to Manager; (iii) must not be a Person with whom Manager or its Affiliates have had an unfavorable business relationship or
experience; (iv) must not be a direct competitor of Manager; and (iv) must generally be considered in the relevant business community to be of high character with a favorable reputation for integrity and honesty. As used in this Section (e),
“transferee” includes transferee’s Affiliates, and transferee’s and the Affiliates’ respective officers, directors, shareholders and members. 
  
 (f) With respect to any Transfer of Owner’s entire interest in the Hotel, Owner must pay a non-refundable Transfer fee
of $10,000, subject to annual increases of five percent. 
  
 With
respect to any Permitted Affiliate Transfer (hereinafter defined), Manager’s consent to such Permitted Affiliate Transfer shall not be required; provided, however, that Owner shall give Manager at least fifteen (15) days’ prior written
notice of such Permitted Affiliate Transfer and shall comply with subsections (b) and (c) and clause (ii) of subsection (e) of this Section 21.2 (and, except for the conditions set forth in the definition of “Permitted Affiliate Transfer,”
Owner shall not be required to demonstrate compliance with the other conditions to Manager’s consent set forth in Section 21.2 or to pay the $10,000 Transfer fee provided for in Section 21.2(f)). As used in the preceding sentence,
“Permitted Affiliate Transfer” means any transfer of 

  

 39 

 
the Hotel to (i) American Property Hotel LLC (a New Mexico limited liability company) or one of its direct or indirect subsidiaries or (ii) any Person who is
directly or indirectly controlled by or under common control with Apollo Real Estate Investment Fund III, L.P. so long as such Person is not in the hotel franchising business as a franchisor of, and does not operate or manage hotels under, its own
regionally or nationally recognized brand (an “Apollo Affiliate”). In the event of a Permitted Affiliate Transfer, Owner shall continue to be liable for its obligations hereunder in respect of the period prior to such transfer as if such
transfer had not been made, and in the event of a Permitted Affiliate Transfer to an Apollo Affiliate, (without limiting the circumstances in which such Guaranty may continue in accordance with its terms) the Guaranty provided for in Section 23.29
shall continue in full force and effect with respect to the successor Owner. 
  
 21.3 Special Sale and Termination Rights. Owner shall have the right, without Manager’s consent, to sell the entire Hotel in a bona fide, arm’s length sale to an independent third party at any time during
the Term and to terminate this Agreement upon the consummation thereof, with Owner to provide Manager at least ninety (90) days prior written notice of such sale and termination. If Owner desires to effect such a sale of the Hotel without
terminating this Agreement, such sale shall require Manager’s prior consent and shall be governed by Section 21.2. Any notice of termination given pursuant to this Section 21.3 shall be deemed ineffective if such sale thereafter is not
consummated. Not later than the effective date of any termination of this Agreement pursuant to this Section 21.3, and as a condition (which may be waived by Manager) to the effectiveness of any such termination, Owner shall pay to Manager the
applicable Special Termination Fee. 
  
 21.4 Right of First Offer.
If Owner shall elect to sell the Hotel, Owner shall first give written notice to Manager of such election, which notice will contain the offering price and other major business terms of the proposed sale (the “Sale Notice”). Manager or its
Affiliates shall have thirty (30) days after receipt of the Sale Notice (the “Exercise Period”) to elect to purchase the Hotel for ninety-seven percent (97%) of the offering price and on the other terms reflected in the Sale Notice. If
Manager or one of its Affiliates so elects to purchase the Hotel, Manager or such Affiliate shall have thirty (30) days after such election (the “Negotiation Period”) to enter into a purchase and sale agreement for such purchase, which
purchase and sale agreement shall provide for, among other things, (i) the payment by Manager or such Affiliate of a non-refundable deposit in an amount equal to two percent (2%) of the purchase price and (ii) the closing of the purchase and sale on
a date that is no later than sixty (60) days after the date of the parties’ execution and delivery of the purchase and sale agreement. After Manager’s (or its Affiliate’s) election to purchase the Hotel and until the earlier of the
execution of a purchase and sale agreement or the end of the Negotiation Period, Owner and Manager agree to negotiate the terms of such purchase and sale agreement. Owner agrees that Manager and/or its Affiliates may conduct due diligence on the
Hotel before and after the transmittal of the Sale Notice. If Manager does not elect to purchase the Hotel, the parties have not entered into a binding purchase and sale agreement within the Negotiation Period or Manager or its Affiliate fails to
close under a purchase and sale agreement by the specified closing date (other than as a result of a breach by Owner or any of its Affiliates of the provisions of the purchase and sale agreement or any action by Owner or any of its Affiliates
constituting bad faith), Owner shall be entitled, without Manager’s consent, to consummate the proposed sale with any third party. If either party shall default under this Section, the other party shall be entitled to specific performance. No
exercise 

  

 40 

 
or waiver by Manager of any of its rights hereunder shall modify, abridge, impair or affect any of Manager’s rights under any of the other terms or
provisions of this Agreement. Any sale, transfer or other conveyance of all or any part of the Hotel or Owner’s interest therein in violation of this Section shall be null and void. The terms and provisions of this Section shall be in addition
to and cumulative of all of the other terms and provisions of this Agreement, including, without limitation, the terms and provisions of Section 21.2. The provisions of this Section 21.4 shall survive any termination or expiration of this Agreement
for a period of six (6) months following the date of such termination or expiration with respect to any offer of the Hotel for sale during such six (6)—month period. This Section 21.4 shall not apply to any transfer of the Hotel to an Affiliate
of Owner. 
  
 21.5 Mortgages. Notwithstanding anything in this
Agreement to the contrary, Owner may place a Mortgage on the Hotel with, and collaterally assign its interest in this Agreement to, a Mortgagee who is an institutional lender without Manager’s approval, as long as: 
  
 (a) The proceeds of the Mortgage will be used for Capital Improvements,
Reserve Fund Work or other direct benefit to the Hotel, to refinance any Mortgage indebtedness or as otherwise directed by Owner; 
  
 (b) This Agreement is not subject to termination or forfeiture if there is a default in, termination of, foreclosure on or exercise of a power of sale
pursuant to, that Mortgage (“Mortgage Proceedings”); 
  
 (c) Manager and such Mortgagee enter into a written agreement, in a form and substance reasonably satisfactory to Manager and the applicable Mortgagee (in Manager’s good faith determination), providing that Manager’s rights under
this Agreement will not be affected by any Mortgage Proceedings (“Non-Disturbance Agreement”); and 
  
 (d) Based on relevant projects, the terms of the Mortgage do not impose a financial burden on the Hotel or Owner that can reasonably be expected to result
in a default by Owner under this Agreement or the Mortgage. 
  
 21.6 Mortgage Documents. Except as contemplated by Section 4.5(j), Manager has no obligation to review Owner’s Mortgage documents. Owner waives all arguments that Manager’s review of any Mortgage documents, participation in any
activities with respect to assisting Owner in obtaining a Mortgage or possession of such documents constitutes a waiver of any of its rights or obligations under this Agreement. 
  
 21.7 Estoppel Certificates. Manager agrees that when requested by Owner upon not less than fifteen (15) days notice, Manager
will sign and deliver to Owner a statement certifying: (i) that this Agreement has not been modified and is in full force and effect (or, if there have been modifications, that this Agreement is in full force and effect as modified and specifying
the modifications); and (ii) whether or not any notices of Owner’s default have been issued by Manager and the nature of the default. Upon similar notice, Manager will be entitled to a similar statement from Owner. 
  
 21.8 Sale of Securities. Before Owner or any Affiliate of Owner makes an
Ownership Transfer by way of the sale or offering for sale any Equity Interests pursuant to either federal or 

  

 41 

 
state securities laws (or any exemption), Owner will provide Manager with a copy of the proposed offering circular, prospectus and other relevant documents
for Manager’s approval at least thirty (30) days prior to the time that the offering circular or prospectus is filed with any state securities commission or the United States Securities and Exchange Commission. Manager’s approval is
limited to references to the relationship between Manager, its Affiliates and Owner. Owner will “highlight” all such references in the documents to expedite Manager’s review. Owner will comply with all applicable Legal Requirements
with respect to such Ownership Transfer and will clearly disclose to all purchasers and offerees that: (i) Manager, including its Affiliates and each of their respective officers, directors, agents or employees, is not in any way an issuer or
underwriter of said securities; and (ii) Manager, including its Affiliates and each of their respective officers, directors, agents or employees, has no liability with respect to the sale or offer of said securities, including no liability for any
financial statements, projections or other financial information contained in the prospectus or other communications. 
  
 ARTICLE 22 
 OWNER’S UNDERSTANDINGS,
REPRESENTATIONS 
 WARRANTIES AND COVENANTS 
  
 22.1 Representation and Warranties. Owner represents and warrants to Manager, and covenants with Manager, as follows as of the Effective Date and
throughout the Operating Term: 
  
 (a) Owner has fee title to, a
leasehold interest in, or other right to possession of, the Hotel and the FF&E and OS&E, and will maintain such, as applicable, throughout the remaining Operating Term. 
  
 (b) Except as expressly provided in any written agreement among Owner, Manager and any applicable lessee or lender, Owner
will not lease the Project to Persons or place any Encumbrance on, or grant a security interest in, the Project that subjects this Agreement to forfeiture or termination, without Manager’s approval, which may be withheld at Manager’s sole
discretion. 
  
 (c) There are no Mortgages on the Project, or if
there are any, any default, termination, foreclosure or exercise of a power of sale pursuant to such Mortgage will not result in the forfeiture or termination of this Agreement except in accordance with the provisions of this Agreement and/or except
as expressly provided in any written agreement among Owner, Manager and any applicable lender. 
  
 (d) The interest of Manager under this Agreement is not subordinate to any other matters affecting title to the Project, except for Impositions not yet due and payable and such other matters that will not materially
and adversely affect Manager’s performance under this Agreement and/or except for any Mortgages consented to or approved in writing by Manager. 
  
 (e) That as long as Manager is not in default hereunder, Owner will take all appropriate actions, judicial or otherwise, to maintain Manager’s rights
under this Agreement. 
  
 (f) Owner will obtain and maintain in
good standing all Governmental Permits, except those that, under applicable Legal Requirements, are required to be obtained and maintained by Manager. 
  

 42 

 (g) Owner will take such action as is necessary to put Equity Holders and prospective Equity Holders on
notice that any Ownership Transfer is subject to this Agreement and obtain their written agreement to also comply with the terms of this Agreement in Owner’s place as this Agreement relates to such Ownership Transfer. 
  
 (h) Owner represents that it has the authority to enter into this Agreement.

  
 22.2 Understandings. Owner understands and agrees to the
following: 
  
 (a) Notwithstanding Manager’s entering into
this Agreement and agreeing to Operate the Hotel, Manager and its Affiliates, in their sole discretion, may Operate System Hotels, and engage in any other businesses, including the timeshare and vacation-ownership businesses, using the System or the
Marks, and using other systems and trademarks,, at any location and at any time. Manager, in its sole discretion, may also grant the same or similar rights to its Affiliates and Third Parties. These rights may be exercised and granted, and the
System Hotels Operated and the other businesses operated, even though they have an economic impact on the Hotel. Neither Manager nor its Affiliates have any obligation to offer or grant such rights to Owner. 
  
 (b) That it will not offer or require Manager to offer Hotel guestrooms for
sale or lease as condominium or time-share units or as anything other than hotel guestrooms. 
  
 (c) Manager’s lawful exercise of any of its rights with respect to this Agreement is not a breach of any fiduciary duty Manager has to Owner arising out of the agency relationship created by this Agreement or
otherwise. 
  
 ARTICLE 23 
 MISCELLANEOUS PROVISIONS 
  
 23.1 Severability. If one or more clauses of this Agreement are held to be void or unenforceable for any reason by any Governmental Authority, such clause
or clauses will be deemed to be separable in such jurisdiction, and the remainder of this Agreement will be deemed to be valid and in full force and effect. Thereafter, the parties will enter into good faith negotiations to agree on new or
alternative provisions, which carry out the parties’ original intent. It is the intent of the parties that each provision of this Agreement will be honored, carried out, and enforced as written. Notwithstanding the above, if either party can
establish that the actions of such Governmental Authority in modifying this Agreement would operate an undue hardship on either party or constitute a material deviation from the general purpose and intent of this Agreement, either party may
terminate this Agreement on ninety (90) days prior written notice. 
  
 23.2 Governing Law. Notwithstanding any laws with respect to choice of law under which any other law might be applicable, this Agreement and the relationship between the parties is subject to and governed by the laws (statutory or
otherwise) of the State of Minnesota. 
  
 23.3 Venue and
Jurisdiction. Except for injunctive relief sought by Manager, which may be brought in a court of proper jurisdiction in the state where: (i) Owner resides or has its principal place of business or (ii) the Hotel is located, Owner and Manager agree
that all claims, 

  

 43 

 
disputes, or controversies whatsoever, arising out of or related to this Agreement in any way, must be commenced, filed and litigated before the state and
federal courts located in Hennepin County, Minnesota. Owner agrees and submits to personal jurisdiction of the federal and state courts in the State of Minnesota. 
  
 23.4 Modifications and Changes. Oral changes to this Agreement, including those by way of modification, addition,
rescission, release, amendment, waiver or otherwise, are not valid or enforceable. Changes may be made only by a written agreement signed by a duly authorized officer of each party. 
  
 23.5 Headings/Terms. The Article and Section headings contained herein are for convenience of reference only and are not
intended to define, limit or describe the scope or intent of any provision of this Agreement. 
  
 23.6 Third Parties. This Agreement is for the sole benefit of the parties. Neither party’s obligations are for the benefit of any third party, and no third party acquires any enforceable rights with respect to
this Agreement, except as otherwise expressly provided under Article 13. 
  
 23.7 Understandings and Agreements. With respect to its subject matter, this Agreement and any addenda, exhibits, acknowledgements and amendments constitute the entire agreement between the parties, and supersede and
terminate all prior agreements, either oral or in writing. Any representations, inducements, promises or agreements between the parties, which are not in writing and signed by Owner and Manager, are not enforceable. 
  
 23.8 Force Majeure. 
  
 (a) If a party’s default under this Agreement (other than Owner’s
obligation to: (i) fund the Operating Account, the Reserve Fund Account, pay Manager and its Affiliates any fees and other amounts owed to them; (ii) fund any Capital Improvements contained in the Capital Expenditure Budget; and (iii) procure or
maintain the insurance coverage required by this Agreement) is caused in whole or in part by a Force Majeure, such default and any right of the other party to terminate this Agreement for such default is suspended for as long as the default is
reasonably caused by such Force Majeure. Any suspension is effective only from the delivery of a notice of the Force Majeure to the other party stating the party’s intention to invoke the Force Majeure. However, if such suspension continues for
longer than six months and such default still exists, either party may terminate this Agreement upon thirty (30) days notice to the other party. 
  
 (b) For any period in which a default relating to the physical condition of the Hotel not being in compliance with the Operating Standards is suspended
for more than sixty (60) days because of a notice of Force Majeure, Manager, in its sole discretion, may exclude the use of the Marks in connection with the Project, including removing or covering any signage in a manner reasonably satisfactory to
Manager. 
  
 23.9 Relationship of Parties. Nothing in this
Agreement constitutes or is to be construed to be or create a partnership, joint venture or franchise relationship between Owner and Manager. The parties: (i) do not consider their relationship as one of franchisor and franchisee, or involving a
business opportunity as that term is defined under various state business opportunity statutes; (ii) do not intend to create such relationships; and (iii) want no 

  

 44 

 
laws applied which might create one. Where not prohibited by applicable law, each party waives all rights either of them may have under any state or federal
laws, rules or regulations that apply to franchise or business opportunity relationships. Manager intends to challenge the application of any such laws, rules or regulations if any Person claims that a franchise or business opportunity relationship
exists pursuant to this Agreement, and intends to claim any applicable exemption should any of them be found to apply. Owner will cooperate with Manager in seeking and obtaining such exemptions. 
  
 23.10 JURY WAIVER. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH
PARTY KNOWINGLY AND VOLUNTARILY WAIVES THE RIGHT TO A TRAIL BY JURY IN ANY LITIGATION ARISING UNDER, AS A RESULT OF OR IN CONNECTION WITH THIS AGREEMENT. 
  
 23.11 Binding Agreement. This Agreement is binding upon the parties and their respective successors and assigns. 
  
 23.12 Notices. Any notices required or permitted must be given in advance and
in writing and delivered by fax, by personal delivery or by reliable expedited delivery companies including Federal Express and DHL. Notices by expedited delivery are deemed delivered and received on the second business day immediately succeeding
the date on which the notice was given to the expedited delivery company. Notice given in any other manner shall be effective only if and when received by the party to be notified. Notices shall be addressed as follows: 
  
 To Manager: 
  
 Radisson Hotel Corporation 
 c/o Legal Department 
 Mail Stop 8249 
 1405 Xenium Lane 
 Plymouth, MN 55441

 Facsimile: (763) 212-8543 
  
 With a copy to: 
  
 Locke Liddell & Sapp LLP 
 2200 Ross
Avenue, Suite 2200 
 Dallas, TX 75201 
 Attn: Janis H. Loegering 
 Facsimile: (214) 740-8800 
  

 45 

 To Owner: 
  
 AP/APMC Stockton, L.P. 
 c/o Apollo Real
Estate Advisors III, L.P. 
 1301 Avenue of the Americas 
 38th Floor 
 New York, NY 10019 
 Attn: Alfred C. Trivilino, Vice President 
 Facsimile: (212) 515-3283 
  
 With copies to: 
  
 Edward Rohling 
 c/o Fields, Britton & Frazier 
 501 Village Creek Drive 
 Plano, Texas 75093 
 Attn: Michael S. Butler

 Facsimile: (972) 788-4332 
  
 and 
  
 Apollo Advisors, L.P. 
 1999 Avenue of the
Stars 
 Suite 1900 
 Los Angeles,
CA 90067 
 Attn: Michael D. Weiner 
 Facsimile: (310) 201-4166 
  
 and 
  
 Brownstein Hyatt & Farber, P.C. 
 Twenty-Second Floor 
 410 Seventeenth Street

 Denver, CO 80202 
 Attn: Steven
C. Demby, Esq. 
 Facsimile: (303) 223-1111 
  
 23.13 Execution/Counterparts. Two copies of this Agreement may be signed, each of which, when signed, is an original and which, together, constitute one
and the same instrument. This Agreement may be executed in two or more counterparts, each of which will constitute an original and all of which, when taken together, will constitute one Agreement. 
  
 23.14 Attorneys’ Fees. The prevailing party is entitled to recover all
reasonable and necessary costs and expenses, including attorneys’ fees, incurred by that party in enforcing any provisions of this Agreement, or in defending against any claims made against that party by the other party with respect to this
Agreement, whether through injunctive relief or otherwise. 
  

 46 

 23.15 Actions By Others. Where Owner is prohibited by this Agreement from directly taking any action, or
where action by Owner would constitute a material breach of this Agreement, Owner agrees that it will not encourage, authorize or permit any other person or entity, directly or indirectly or under its direct or indirect control to take such action.

  
 23.16 Joint and Several Liability. The liability of all Owners
(if more than one Person) signing this Agreement is joint and several. 
  
 23.17 Survival. All provisions which, as a matter of logic or otherwise, need to survive the expiration or termination of this Agreement in order to achieve an intended result, will survive despite the absence of specific survival language
with respect to each of them. 
  
 23.18 Time of the Essence. Time
is of the essence of each and every provision of this Agreement. 
  
 23.19 Approvals. Whenever either party’s approval is required, such approval, unless specifically stated otherwise, must be obtained in advance, in writing and not be unreasonably withheld or delayed. Either party may stipulate a
reasonable time within which an approval must be given or withheld, but in no case, unless an emergency exist, less than five (5) business days. A determination whether Manager’s approval is reasonably withheld is to be based on Manager’s
needs to protect its rights under this Agreement and the integrity, value and reputation of the System, although as an additional factor, Manager may take Owner’s economic or other circumstances into account. Either party’s approval of any
matter is a permission only and not a representation, warranty or assurance. 
  
 23.20 Successors Bound. This Agreement will be binding upon and inure to the benefit of Owner, its successors and permitted assigns, and will be binding upon and inure to the benefit of Manager, its successors and its
permitted assigns. 
  
 23.21 Cumulative Rights. The remedies
provided for in this Agreement are not exclusive. Either party is free to pursue such other remedies as may be available at law or in equity. 
  
 23.22 Terminology. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, include all genders; the
singular includes the plural and the plural includes the singular. The Table of Contents and titles of Articles, Sections and paragraphs in this Agreement are for convenience only and neither limit nor amplify the provisions of this Agreement, and
all references in this Agreement to Articles, Sections, paragraphs, clauses, exhibits, addenda or riders also refer to the corresponding Article, Section, paragraph, clause of, or exhibit, addendum or rider attached to this Agreement, unless
otherwise specified. 
  
 23.23 Exhibits, Addenda, Schedules and
Riders. All exhibits, addenda, schedules and riders attached hereto are incorporated in this Agreement. 
  
 23.24 Interpretation. The parties do not want any provision of this Agreement to be construed against or interpreted to the disadvantage of either party
by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured or dictated such provision. 
  

 47 

 23.25 Limitation of Claims. Except for those that are brought pursuant to the indemnification in Article
13 and the insurance coverage obligations in Article 12, upon expiration or termination of this Agreement, neither party will assert any claim or cause of action with respect to this Agreement against the other unless the party commences the action
within one year following the effective date of expiration or termination of this Agreement. 
  
 23.26 Photocopies. Photocopies and facsimiles of this Agreement showing signatures are fully binding and effective for all purposes. 
  
 23.27 Confidentiality. Owner agrees not to disclose the terms or conditions of this Agreement to any Person other than a
Permitted Person, provided, however, that the restrictions of this Section do not apply to any information required to be disclosed pursuant to Legal Requirements or to information that becomes public other than by virtue of a breach of this
Section. For purposes of this Section, the term “Permitted Person” means: (i) the partners, shareholders, directors, officers, members and employees of Owner; (ii) accountants, attorneys, consultants and other professionals engaged to
render services in connection with the Project; and (iii) lenders and potential lenders to and potential purchasers of the Project. Owner will inform Permitted Persons of the confidential nature of the information disclosed to them and Owner will
require them to agree to act in accordance with the provisions of this Section with respect to such information. 
  
 23.28 Limited Recourse. Subject to the next sentence, Manager agrees that it shall look solely to the assets of Owner, and not to the assets of any
general partner in or of Owner, or of any direct or indirect partners in such general partner or any disclosed or undisclosed officers, shareholders, principals, directors, employees, servants or agents of Owner, in connection with the enforcement
of any obligations of Owner under this Agreement. Notwithstanding the liability-limiting provisions of the preceding sentence, with respect to any general partner against whom or which Manager would have recourse but for such liability-limiting
provisions, Manager shall have recourse against any such general partner to the extent of the value of any sales proceeds that such general partner may receive in connection with any sale of the Hotel. The provisions of this Section are not intended
and shall not be construed to provide Manager recourse against any person against whom Manager would not have recourse if this. Section were not included in this Agreement. 
  
 23.29 Guaranty. Owner agrees to cause AP/APH Ventures LLC to execute and deliver to Owner, contemporaneously with the
execution and delivery of this Agreement, a guaranty in the form attached hereto as Schedule 23.29. 
  
 23.30 Mortgagee Consent. Owner has advised Manager that the Mortgagee of the Hotel as of the Effective Date has consented to Manager’s assumption of
management of the Hotel on an interim basis pending such Mortgagee’s review and approval of this Agreement and the negotiation, execution and delivery of an Assignment and Subordination of Management Agreement in substantially the form attached
hereto as Schedule 23.30 (and with any such changes thereto as the parties may negotiate in good faith). Notwithstanding any other provision of this Agreement, if such Mortgagee has not approved this Agreement, or if Owner, Manager and such
Mortgagee shall not have negotiated, executed and delivered such Assignment and Subordination of Management Agreement on or before December 31, 2001, then Manager may 

  

 48 

 
terminate this Agreement upon at least thirty (30) days prior written notice to Owner, with any such notice to be given on or before January 31, 2002. In the
event Manager so terminates this Agreement, Owner shall pay to Manager the Special Termination Fee no later than the business day immediately preceding the specified date of such termination of this Agreement (with such payment obligation to survive
the termination of this Agreement). 
  
 [The remainder of this page
is intentionally left blank.] 
  

 49 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

  

			
	 AP/APMC Stockton, L.P.

	 (“Owner”)

		
	By:	 	 AP/APMC-GP, Inc.,

	 	 	 Its General Partner

		
	 	 	 By:                                     
                                        
           

	 	 	 Name:                                     
                                        
      

	 	 	 Title:                                     
                                        
        

	
	 Radisson Hotel Corporation

	 (“Manager”)

	
	 By:                                     
                                       
                    

	 Name:                                     
                                        
             

	 Title:                                     
                                        
               

  

 50 

 FIRST AMENDMENT TO MANAGEMENT AGREEMENT 
 FOR 
 RADISSON HOTEL STOCKTON 
 STOCKTON, CALIFORNIA 
  
 This First Amendment to Management Agreement for Radisson Hotel Stockton (“Amendment”) is made as of this 1st day of December, 2001, between RADISSON HOTEL Corporation, a New Jersey Corporation
(“Manager”), and AP/APH Stockton, L.P., a Delaware limited partnership (“Owner”), in order to amend the Management Agreement dated as of September 1, 2001 between Manager and Owner (“Management Agreement”). 

 
 WHEREAS, Manager and Owner want to amend the Management Agreement in
accordance with their mutual understanding of the terms negotiated between the parties. 
  
 NOW THEREFORE, for good and valuable consideration, Manager and Owner agree as follows: 
  
 1. The definition of Special Termination Fee shall be superseded and replaced with the following: 
  
 Special Termination Fee,in respect of any termination of this Agreement pursuant to which a Special Termination Fee
is payable, shall mean an amount equal to the following: 
  

			
	 Date of Termination

	  	 Special Termination Fee

		
	First through end of twelfth month of the Operating Term	  	 9 x Average Monthly
 Base Management Fee

		
	Thirteenth through end of eighteenth month of the Operating Term	  	 6 x Average Monthly
 Base Management Fee

		
	Nineteenth through end of thirtieth month of the Operating Term	  	 3 x Average Monthly
 Base Management Fee

		
	Following the thirtieth month of the Operating Term	  	 Zero

  
 2. The address of Edward Rohling in
Section 23.12 shall be changed to the following: 
  
 Edward
Rohling 
 c/o Fields, Britton & Frazier 
 5401 Village Creek Drive 
 Plano, Texas 75093 
 Attn: Michael S. Britton 
 Facsimile: (972)
788-4332 
  
 3. Except as amended hereby, all of the other terms and provisions
contained in the Management Agreement shall remain in full force and effect and this Amendment and the Management Agreement shall be merged and considered one instrument. If there are any 

  

 1 

 
inconsistencies between the provisions of this Amendment and the provisions of the Management Agreement, as amended, the provisions of this Amendment shall
apply. 
  
 IN WITNESS WHEREOF, the parties hereto have executed
this Amendment as of the date first set forth above. 
  

			
	AP/APH STOCKTON, L.P.
	(“Owner”)
		
	By:	 	 AP/APMC-GP, Inc.,

	 	 	 Its General Partner

  

			
	By:	 	 
	Name:	 	 Alfred C. Trivilino

	Title:	 	 President

	 	 	 

  

			
	RADISSON HOTEL CORPORATION
	(“Manager”)
		
	By:	 	 
	Name:	 	 
	 Title:
	 	 

  
 APPROVED BY: 

 
 LENDER: 
  
 WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, f/k/a NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, AS TRUSTEE UNDER THAT CERTAIN
POOLING AND SERVICING AGREEMENT, DATED AS OF JUNE 12, 1998, BY AND AMONG CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP. AND NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, AMONG OTHERS 
  

					
	 By:
	 	 LENNAR PARTNERS, INC., as attorney-in-fact

			
	 	 	By:	 	 
	 	 	Name:	 	 Ronald E. Schrager

	 	 	Title:	 	 Vice President

  

 2

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