Document:

Exhibit 10.1

 

HOTEL LEASE

 

between

 

PHR Cherry Propco, LLC, a Michigan limited liability
company, as Landlord

 

and

 

PHR Cherry
OPCO SUB, LLC, a Michigan limited liability company, as Tenant

 

Dated as of July 30, 2021

 

 

Cherry Tree Inn Traverse City, Michigan

 

     

     

    

 

		TABLE OF CONTENTS	 
	 	 	 
		 	Page
	 	 	 
	ARTICLE I DEFINITIONS	1
	 	 
	ARTICLE 2 DEMISE AND TERM 	5
	2.1	Demise	5
	2.2 	Term	6
	2.3 	Termination
    Upon Sale by Landlord	6
	2.4 	Effect
    of Termination	6
	 	 	 
	ARTICLE 3 RENT 	7
	3.1 	Rent	7
	3.2 	Apportionments	8
	3.3 	Additional
    Rent	8
	3.4 	Late
    Charge	8
	3.5 	Intentionally
    Omitted.	8
	3.6 	Personal
    Property Limitation.	8
	3.7 	Sublease
    Rent Limitation	9
	3.8 	No
    Commingling of Funds	9
	3.9 	Manager;
    Management.	9
	3.10	Books and Records	10
	3.11	Rent without Setoff	10
	3.12	Rent Acceptance	11
	3.13	Place Where Rent Paid	11
	3.14	Key Money	11
	 	 	 
	ARTICLE 4 USE 	11
	4.1 	General
    Operating Covenants	11
	4.2 	Prohibited
    Uses	12
	4.3	Records.	12
	4.4	Guests	12
	4.5	Advertising and Promotion	12
	4.6	Services and Purchases.	12
	4.7	Permits	12
	4.8	Compliance with Law, Mortgages.	13
	4.9	Payment of Taxes.	13
	4.10	Removal of Liens	14
	4.11	Utilities	14
	4.12	Notice to Landlord	15
	4.13	Omitted.	15
	4.14	Representations, Warranties and Covenants of Landlord	15
	4.15	Representations and Warranties of Tenant	15
	4.16	Mutual Representations, Warranties and Covenants of Landlord and Tenant.	17
	4.17	“As Is” Leased Property	17
	4.18	Third Party Manager	17

 

    i

     

    

	 	 	 
	ARTICLE 5 FINANCIAL STATEMENTS; TRANSACTIONS WITH AFFILIATES 	18
	5.1	Financial Statements to be Provided by Tenant	18
	5.2 	Transactions
    with Affiliates	18
	 	 	 
	ARTICLE 6 MAINTENANCE, REPAIRS AND ALTERATIONS 	18
	6.1	Maintenance and Repairs	18
	6.2	Alterations	18
	6.3	Capital Expenditures	19
	 	 	 
	ARTICLE 7 LIABILITY CLAIMS AND INSURANCE 	20
	7.1	Waiver of Claims	20
	7.2 	Liability
    Insurance	20
	7.3	Property Insurance	20
	7.4	Business Interruption Coverage.	20
	7.5	Waiver of Subrogation	20
	7.6	Other	20
	7.7	Single Policy	21
	 	 	 
	ARTICLE 8 DEFAULT AND TERMINATION 	21
	8.1	Tenant Default	21
	8.2	Collateral Assignment	22
	8.3	Landlord’s Remedies	22
	8.4	Surrender of the Leased Property	22
	8.5	Landlord’s Right to Cure	23
	8.6	Tenant’s Bankruptcy or Insolvency	23
	8.7	Attorneys’ Fees	23
	8.8	Remedies Cumulative	24
	8.9	Liability for Tenant’s Obligations	24
	8.10	Default by Landlord	24
	8.11 	Holding
    Over	24
	 	 	 
	ARTICLE 9 CASUALTY OR CONDEMNATION 	25
	9.1	Restoration	25
	9.2 	Condemnation	25
	 	 	 
	ARTICLE 10 ASSIGNMENT AND SUBLETTING 	25
	10.1	Assignment or Subletting	25
	10.2	Notice	25
	10.3	Continued Primary Liability	26
	10.4	Miscellaneous	26
	ARTICLE 11 SUBORDINATION 	26
	11.1	Subordination.	26

 

    ii

     

    

 

	ARTICLE 12 MISCELLANEOUS 	27
	12.1	Quiet Enjoyment	27
	12.2	Landlord’s Right of Entry	27
	12.3	Estoppel Certificates	28
	12.4	Delivery of Notices.	28
	12.5	Notices	28
	12.6 	No
    Broker	29
	12.7 	Quarterly
    Meetings	29
	12.8 	No
    Joint Venture	30
	12.9 	Partial
    Invalidity	30
	12.10 	Third
    Parties	30
	12.11 	Waivers
    and Enforcement	30
	12.12 	Modification	30
	12.13 	Non-Recourse
    Liability	30
	12.14 	Captions	31
	12.15 	Time
    of Essence	31
	12.16 	Successors
    and Assigns	31
	12.17 	No
    Recordation	31
	12.18 	Name	31
	12.19 	Survival	31
	12.20 	Confidentiality	31
	12.21 	Conveyance
    by Landlord	31
	12.22	Governing Law	32
	12.23	Counterparts	32

 

    iii

     

    

 

AMENDED AND RESTATED HOTEL LEASE

 

THIS AMENDED AND RESTATED
HOTEL LEASE (this “Lease”) is made and entered into as of the 30th day of July, 2021, by and between PHR
Cherry Propco, LLC, a Michigan limited liability company, having its principal office at c/o Procaccianti Companies, 1140 Reservoir Avenue,
Cranston, Rhode Island 02920-6320 (“Landlord”), and as Landlord and PHR CHERRY OPCO SUB, LLC, a Michigan limited liability
company, a Michigan limited liability company, having its principal office at c/o Procaccianti Companies, 1140 Reservoir Avenue, Cranston,
Rhode Island 02920-6320 (“Tenant”).

 

RECITALS

 

A.        Landlord
is the owner of the real property located at 2345 N, US-31 N, Traverse City, MI 49686 and legally described on Exhibit A attached
hereto (the “Land”) and all improvements thereon, including the building that is being operated as a hotel consisting
of approximately 77 guest rooms, and other facilities. The Property (as hereinafter defined) and that portion of the FF&E (as hereinafter
defined) that is owned by Landlord (and not paid for herein by Tenant) are hereinafter collectively referred to as the “Leased
Property”.

 

B.        Landlord
desires to lease the Leased Property to Tenant and Tenant desires to lease the Leased Property from Landlord, all on the terms and conditions
set forth herein.

 

AGREEMENT

 

In consideration of the mutual
covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:

 

ARTICLE
I

DEFINITIONS

 

In addition to other terms
that are defined elsewhere in this Lease, the following terms shall have the meanings set forth below when used herein:

 

“Additional Rent”
has the meaning set forth in Section 3.3.

 

“Affiliate”
means, with respect to any Person, any other Person (a) directly or indirectly controlled by, controlling or under direct or indirect
common control with the Person in question, (b) who owns, directly or indirectly, 5% or more of the equity interest of the Person in question,
or (c) who is an immediate family member (e.g., a parent, spouse, sibling, child or grandchild) of the Person in question. For the purposes
of this definition, “control” when used with respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract
or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the foregoing.

 

“Assigned Items”
has the meaning set forth in Section 2.1.

 

“Base Rent”
has the meaning set forth in Section 3.1.

 

     

     

    

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding provision or provisions of prior or succeeding
law.

 

“Commencement Date”
means July 30, 2021.

 

“Consumer Price Index”
means the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average for All Items, 1982-84=100 as published by the
United States Department of Labor, Bureau of Labor Statistics. If the Consumer Price Index shall cease to use 1982-84 as the base period,
the Consumer Price Index shall be converted in accordance with the conversion factor, if any, published by the United States Department
of Labor, Bureau of Labor Statistics. If the Consumer Price Index is discontinued or revised during the Term hereof such other governmental
index or computation, if any, with which it is replaced shall be used. If no conversion factor is supplied by the United States Department
of Labor, Bureau of Labor Statistics, either for a new base year or a new index, the parties hereto shall agree upon a replacement for
the Consumer Price Index to be used.

 

“Cut-Off Time”
means 12:01 a.m. on the Commencement Date.

 

“Debtor’s Law”
has the meaning set forth in Section 8.6.

 

“Default Interest
Rate” means an annual rate equal to the Prime Rate, plus five percent (5%).

 

“Event of Default”
has the meaning set forth in Section 8.1.

 

“Executive Order
13224” has the meaning set forth in Section 4.15(e)(i).

 

“Expiration Date”
has the meaning set forth in Section 2.2.

 

“FF&E”
means the furniture, furnishings, equipment, fixtures, apparatus and other personal property used in, or held in storage for use in, the
operation of the Hotel, or any replacement or substitution of such furniture, furnishings, equipment, fixtures or apparatus.

 

“Fixed Rent”
has the meaning set forth in Section 3.1(a).

 

“Foreclosure Purchaser”
means the holder of a Mortgage or the designee or assignee of the holder of a Mortgage in the case of a deed-in-lieu of foreclosure, or
the purchaser in a foreclosure proceeding.

 

“GAAP”
has the meaning set forth in Section 3.1(d).

 

“Governmental Authority”
means any federal, state, county or municipal government and any appropriate department, commission, board or other authority having jurisdiction
over the Hotel now or hereafter in force, including, without limitation, any alcoholic beverage control board, health inspector, the Board
of Fire Underwriters, and any insurance company providing the insurance required to be carried under this Lease.

 

“Gross Revenue”
has the meaning set forth in Section 3.1(d).

 

    2

     

    

 

“Hazardous Materials”
means any flammables, explosives, radioactive materials, hazardous wastes, hazardous and toxic substances or related materials, asbestos
or any material containing asbestos, or any other substance or material included in the definition of “hazardous substances”,
“hazardous wastes”, “hazard materials”, “toxic substances”, “contaminants” or any other
pollutant, or otherwise regulated by any federal, state or local environmental law, ordinance, rule or regulation, including the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, the Hazardous Materials Transportation Act, as amended, and
the Resource Conservation and Recovery Act, as amended, and in the regulations adopted and publications promulgated pursuant to each of
the foregoing Acts.

 

“Hotel”
means the hotel operated on the Land by Tenant, currently commonly known as the Cherry Tree Inn, Traverse City, and all improvements constructed
thereon, all related FF&E, and all rights appurtenances and interests in connection therewith.

 

“Hotel Personalty”
has the meaning set forth in Section 3.6(a).

 

“Land”
has the meaning set forth in Recital A.

 

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

 

“Law” has
the meaning set forth in Section 4.8(a).

 

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

 

“Lease Year”
means a consecutive twelve-month period, commencing on the first day of the first full month after the Commencement Date, except that
the final Lease Year shall end on the Expiration Date (unless this Lease shall be sooner terminated in accordance with its terms).

 

“Leased Property”
has the meaning set forth in Recital A.

 

“Licenses”
has the meaning set forth in Section 4.7.

 

“Lien”
has the meaning set forth in Section 4.10.

 

“Management Agreement”
means that certain Management Agreement, dated as of the date hereof, between Tenant and Manager for the management and operation of the
Hotel, as amended from time to time, and any substitute therefor mutually agreed to by Manager and Tenant.

 

“Manager”
means PHR Cherry Tree Hotel Manager, LLC.

 

“Mortgage”
means any first mortgage, deed of trust, deed to secure debt or other security instrument recorded against all or any portion of the Property
for current indebtedness of Landlord and all renewals, modifications, refinancings, rearrangements, consolidations, replacements and extensions
thereof, as evidenced or deemed to be evidenced by any mortgage, deed of trust, deed to secure debt, assignment of leases or profits,
security agreement or fixture filing from Landlord to a lender.

 

“Notices”
has the meaning set forth in Section 12.5.

 

    3

     

    

 

“OFAC”
has the meaning set forth in Section 4.15(e)(i).

 

“OFAC Lists”
has the meaning set forth in Section 4.15(e)(i).

 

“Officer’s
Certificate” has the meaning set forth in Section 3.1(c).

 

“Operating Supplies”
means all supplies, except for FF&E and kitchen, restaurant and bar equipment, used or held in storage for future use in connection
with operation of the Hotel in accordance with the Operational Standards, including, without limitation, all engineering, maintenance
and housekeeping supplies, guest room cleaning supplies, soap and other toiletries, toilet paper, stationery, writing pens, office supplies,
and food and beverages of all kinds.

 

“Operational Standards”
means the operating standards required for the Hotel to be operated as a first-class, hotel staffed and equipped and having inventories
comparable to other similar first-class hotels in comparable metropolitan areas in the United States.

 

“Parking Contracts”
means any agreements providing for vehicle parking (valet or otherwise) rights associated with the guests, invitees or employees of the
Hotel.

 

“Percentage Rent”
has the meaning set forth in Section 3.1(b).

 

“Person”
means any individual, corporation, partnership, limited liability company, association, trust or other entity or organization.

 

“Personal Property
Limitation” has the meaning set forth in Section 3.6(a).

 

“Persons Within Tenant’s
Control” means all of Tenant’s subtenants and assignees, and all of their respective principals, officers, agents, contractors,
servants, employees, licensees, guests and invitees.

 

“Prime Rate”
means the prime rate of interest published from time to time (and as the same may be changed from time to time) in the Money Rates section
of The Wall Street Journal, or its successor publication, from time to time.

 

“Property”
means the Land and the Hotel, in whole or in part, and all improvements, FF&E, appurtenances, rights and interests relating thereto.

 

“Proposed Party”
has the meaning set forth in Section 10.2.

 

“Renewal Term”
has the meaning set forth in Section 2.2.

 

“Rent”
means Base Rent, Additional Rent, Percentage Rent and any other sum payable from Tenant to Landlord pursuant to this Lease.

 

“Required Improvements”
has the meaning set forth in Section 4.13(b).

 

“Sale Termination
Event” has the meaning set forth in Section 2.3.

 

“Service Contracts”
has the meaning set forth in Section 4.6(a).

 

    4

     

    

 

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

 

“Tenant’s Representative”
has the meaning set forth in Section 8.6.

 

“Term”
has the meaning set forth in Section 2.2.

 

“Unrecovered Costs”
has the meaning set forth in Section 2.3.

 

The terms “herein,”
“hereof,” “hereunder” and like terms, unless otherwise specified, shall be deemed to refer to this Lease in its
entirety and shall not be limited to any particular section or provision hereof. The terms “include” and “including”
as used herein shall be deemed to mean “including, but not limited to.” References herein to “Sections,” and “Exhibits”
shall be deemed to respectively mean sections of and exhibits to this Lease unless otherwise specified.

 

ARTICLE
2

DEMISE AND TERM

 

2.1             
Demise. Upon the terms and conditions hereinafter set forth and in consideration of the payment from time to time by Tenant
of the Rent and the prompt performance by Tenant and Landlord of each and every one of the respective covenants and agreements hereinafter
contained to be kept and performed by Tenant and Landlord, the performance of each and every one of which is declared to be an integral
part of the consideration to be furnished respectively by Tenant and Landlord, (i) Landlord does hereby lease, let and demise unto Tenant,
and Tenant does hereby lease of and from Landlord, for the Term, at the Rent and upon all of the other provisions of this Lease, the Leased
Property together with any and all improvements now or hereafter erected or installed thereon relating to the Leased Property and all
present or future appurtenances, rights, service contracts, equipment leases, privileges, licenses and easements benefiting, belonging
or pertaining thereto; and (ii) effective as of the Commencement Date, Landlord does hereby assign to Tenant and Tenant does hereby assume
from Landlord, for the Term, all of Landlord’s right, title and interest in and to, and all of Landlord’s obligations under,
the Parking Contracts, the Service Contracts, the Licenses, the hotel reservations and any proprietary rights, records, documents and
intangible property required in the ordinary course of business in operating the Hotel (collectively, the “Assigned Items”).

 

2.2             
Term. The term of this Lease (the “Term”) shall commence on the Commencement Date and shall continue
until the fifth (5th) anniversary of the first full month of this Lease, or such earlier date upon which this Lease is sooner
terminated in accordance with its terms (the “Expiration Date”). Provided that no Event of Default shall have occurred
and be continuing, this Lease shall automatically extend for three (3) renewal terms of five (5) years each (each a “Renewal
Term”) unless Tenant elects, by providing notice to Landlord no later than 12 months prior to then next scheduled expiration
of the Term or Renewal Term of this Agreement to terminate this Agreement upon the expiration of the then current Term or Renewal Term.
Base Rent and Percentage Rent shall be renegotiated by Landlord and Tenant prior to the commencement of each Renewal Term at rental rates
with shall be “market rent” (meaning such rent which a willing tenant would pay a willing landlord to lease the Leased Property
taking into account the terms and conditions of this Lease and permitting compliance with Sections 3.6 and 3.7 hereof) which shall
be evidenced by a transfer pricing report prepared by an independent national accounting firm. All of the terms, covenants and provisions
of this Agreement shall apply to each Renewal Term. Tenant shall have no right to extend the Term beyond the expiration of third Renewal
Term. If Tenant does not give notice that it elects to terminate this Agreement in accordance with this Section 2.2, this Lease
shall automatically renew at the end of the Term or Renewal Term then in effect as provided in the this Section 2.2.

 

    5

     

    

 

2.3             
Termination Upon Sale by Landlord. Notwithstanding anything to the contrary contained herein, the Term shall automatically
expire and this Lease shall automatically terminate immediately upon completion of a sale by Landlord of Landlord’s interest in
all or substantially all of the Leased Property. In such event (a “Sale Termination Event”), Landlord shall pay to
Tenant (i) a termination payment equal to the greater of (y) the present value of a series of monthly payments for the number of months
remaining in the Term of this Lease, which payments shall equal 1.75% of the monthly average gross receipts generated by the Leased Property
during the preceding portion of the Term discounted at an annual rate of 15%; and (z) Tenant’s Unrecovered Costs, plus an amount
that would provide Tenant with an overall 10% internal rate of return on its invested capital; and (ii) a portion (measured as a percentage)
of any reserve established for the maintenance and replenishment of the FF&E shall be distributed to Tenant which portion shall equal
the percentage of the FF&E reserve equal to the percentage of FF&E (measured in the aggregate) owned by Tenant at the time of
such Sale Termination Event, versus the percentage of FF&E owned by Landlord at the time of such Sale Termination Event (measured
in the aggregate). Landlord and Tenant agree to execute whatever quitclaims or other documentation is reasonably required to evidence
any such Sale Termination Event. “Unrecovered Costs” are defined as the excess, if any, of Tenant’s cumulative
cash expenditures (including Rent pursuant to the terms and conditions of this Lease and excluding Tenant’s interest expense) over
the cumulative gross receipts generated by the Leased Property.

 

2.4             
Effect of Termination. Upon any termination of this Lease, Tenant shall pay to Landlord any Rent due and payable as of the
date of such termination.

 

ARTICLE
3

RENT

 

3.1             
Rent. Tenant agrees to pay for use of the Leased Property during each Lease Year (or partial Lease Year, if applicable with
respect to the first and last Lease Year), the rent (the “Base Rent”) equal to the sum of Fixed Rent and Percentage
Rent, as each are calculated in accordance Schedule 3.1 attached hereto and made a part hereof.

 

(a)              
“Fixed Rent” shall have the meaning contained in Schedule 3.1.

 

(b)              
 “Percentage Rent” shall have the meaning contained in Schedule 3.1.

 

    6

     

    

 

(c)              
Tenant shall pay an amount equal to the Fixed Rent on the first (1st) day of each calendar month during the Term (including
the calendar month next succeeding the last month of the term hereof). Percentage Rent for each Lease Year shall be payable quarterly
in arrears on the 15th day following the end of each calendar quarter based upon a written statement, signed and certified
by an officer of Tenant (an “Officer’s Certificate”) to be true and correct, setting forth the total amount of
Tenant’s Gross Revenue made during the immediately preceding calendar quarter. In the event the Term begins and/or ends in the middle
of a Lease Year, then to calculate Percentage Rent for the applicable partial Lease Year, the dollar thresholds set forth in Sections
3.1(b)(i) through (v) above shall be multiplied by a fraction equal to (i) the number of days in such Lease Year that fall within the
Term divided by (ii) 365. If the annual Percentage Rent due and payable for any Lease Year (as shown in the applicable Officer’s
Certificate) exceeds the amount actually paid as Percentage Rent by Tenant for such year, Tenant also shall pay such excess to Landlord
at the time such Officer’s Certificate is delivered. If the Percentage Rent actually due and payable for such Lease Year is shown
by such Officer’s Certificate to be less than the amount actually paid as Percentage Rent for the applicable Lease Year, Landlord
shall reimburse such amount to Tenant or alternatively, at the Landlord’s option, credit such amount against subsequent months’
Base Rent.

 

(d)              
With respect to any applicable time period, “Gross Revenue” means all revenues and income of any kind derived
from the use of rooms at the Hotel, including, without limitation, revenue derived from rooms and suites rented or leased for part of
a day, a week, a month or longer, and all revenues and income of any kind derived from the sale of all food, liquor, soft drinks or other
beverages at the Hotel, including mini-bars, and the sale, rental or use of kitchen facilities and services, conference facilities and
services, meeting rooms, miscellaneous banquet income and service charges or audio/video equipment, and all revenues and income of any
kind derived from minor operating departments income from the operations of the Hotel. Notwithstanding anything to the contrary contained
herein, revenue from guests who guaranteed their arrival but did not “show”, shall be included in Gross Revenue when collection
is reasonably assured. The calculation of all types of revenue shall be determined on the accrual method of accounting in accordance with
generally accepted accounting principles consistently applied (“GAAP”) and shall include sales made on a cash basis
or on credit, but shall exclude the following items:

 

(i)        Federal,
state and municipal excise taxes and sales taxes paid by customers in connection with goods, merchandise or services purchased by them
to the extent that such taxes are separately levied, whether or not itemized on the customer’s bill or checks; and

 

(ii)        Service
charges or tips paid directly to employees if not separately itemized or if not included in package prices on the customer’s bill
or checks; and

 

(iii)        All
applicable room, excise, sales and use taxes or similar government charges collected directly from guests of the Hotel; and

 

(iv)        Revenues
from the sale or financing of all or any part of the Leased Property, the operating inventory, or surplus items; and

 

(v) Except for proceeds under
any business interruption policies, any insurance or condemnation proceeds related to the Leased Property.

 

(e)               
Landlord and Tenant hereby agree to allocate fairly (based on relative value) the Base Rent payments between the lease of the Hotel,
on the one hand, and the lease of the Hotel Personalty, on the other hand.

 

    7

     

    

 

3.2             
Apportionments. In the event that Tenant receives any income or incurs any expenses attributable to the period prior to
the Cut-Off Time, Tenant shall assign such items of income and expense to the designee of Landlord, and Landlord’s designee shall
retain all such income and pay all such expenses attributable to this period. In the event that Landlord receives any income (or a credit
therefor in connection with Landlord’s purchase of the Leased Property) or incurs any expense attributable to the period following
the Cut-Off Time, and Tenant would have been entitled to such income or responsible for such expense had such income or expense been received
or incurred directly by Tenant, Landlord shall assign such items of income and expense to Tenant, and Tenant shall retain such income
and pay all such expense attributable to this period.

 

3.3             
Additional Rent. All payments (whether or not specifically denoted as such) to be made by Tenant pursuant to the provisions
of this Lease in addition to Base Rent shall constitute “Additional Rent”.

 

3.4             
Late Charge. Any amount payable hereunder that shall not have been paid within ten (10) days after the date on which the
same shall become due and payable shall bear interest at a rate equal to eighteen percent (18%) per annum, compounded monthly, but in
no event in excess of the maximum rate permitted by applicable law.

 

3.5             
Intentionally Omitted.

 

3.6             
Personal Property Limitation.

 

(a)              
Anything contained in this Lease to the contrary notwithstanding, the amount of Hotel Personalty subject to this Lease shall be
limited so that the rents attributed to Hotel Personalty shall not exceed fifteen percent (15%) of the total rents from all property demised
under this Lease determined at the time that the Hotel Personalty is placed in service (the “Personal Property Limitation”).
“Hotel Personalty” is defined to include, without limitation, all property related to the Hotel that is not “real
property” within the meaning of Treas. Reg. Section 1.856-10. Landlord and Tenant shall at all times cooperate in good faith and
use their best efforts to permit Landlord to comply with the Personal Property Limitation, which compliance may include, without limitation,
the purchase by Tenant at fair market value of personal property used in the operation of the Hotel sufficient to permit compliance with
the Personal Property Limitation set forth in this Section 3.6. All such compliance shall be effected in a manner that has no material
net economic detriment to Tenant. This Section 3.6 is intended to ensure that the rents from personal property fall below the fifteen
percent (15%) limitation of Section 856(d)(1) of the Code and shall be interpreted in a manner consistent with such intent.

 

(b)              
If and to the extent the ownership of any portion of the Hotel Personalty would cause the Base Rent not to qualify as “rents
from real property” for purposes of Section 856(d)(1) of the Code, or if deemed appropriate or desirable by Landlord, Tenant agrees
that, upon request of Landlord, Tenant will acquire such of the Hotel Personalty at its fair market value as Landlord shall reasonably
specify, and Landlord and Tenant agree to adjust the Base Rent (including any revenue breakpoints set forth in the Percentage Rent) to
appropriately reflect such acquisition, and Landlord and Tenant agree to amend this Lease accordingly.

 

    8

     

    

 

3.7             
Sublease Rent Limitation. Anything contained in this Lease to the contrary notwithstanding, Tenant shall not sublet the
Hotel or enter into any similar arrangement on any basis such that the rental or other amounts to be paid by the sublessee thereunder
would be based, in whole or in part, on either (a) the net income or profits derived by the business activities of the sublessee, or (b)
any other formula such that any portion of the Rent would fail to qualify as “rents from real property” within the meaning
of Section 856(d)(1) of the Code, or any similar or successor provision thereto.

 

3.8             
No Commingling of Funds. Tenant shall not commingle monies received and held by Tenant from the possession and operation
of the Leased Property with any other funds of Tenant or of any other Person.

 

3.9             
Manager; Management.

 

(a)              
Pursuant to the Management Agreement, Manager has agreed to manage the Leased Property on the terms and conditions contained therein.
Tenant shall (i) at all times comply with the terms and conditions contained in the Management Agreement, (ii) do all things necessary
to preserve and keep unimpaired its material rights under the Management Agreement and (iii) notify Landlord in writing of any default,
alleged default, or event which with notice or the passage of time would constitute a default under the Management Agreement, which default
or event shall be and constitute a default hereunder.

 

(b)              
Tenant hereby covenants and agrees to promptly enforce the performance and observance of all of the material covenants and agreements
required to be performed and/or observed by Manager under the Management Agreement and all of its rights and remedies under the Management
Agreement against Manager.

 

(c)              
Tenant hereby covenants and agrees not to do any of the following without the prior written consent of Landlord: (i) surrender,
terminate or cancel the Management Agreement, (ii) reduce or consent to the reduction of the term of the Management Agreement, (iii) increase
or consent to the increase of the amount of any charges under the Management Agreement, or (iv) otherwise modify, change, supplement,
alter or amend in any material adverse respect any of the provisions of the Management Agreement or any of Tenant’s rights and remedies
under the Management Agreement.

 

(d)              
If Tenant receives any notice of or becomes aware of a violation or circumstances likely to result in a violation of the Management
Agreement, Tenant shall promptly deliver to Landlord written notice of such violation or circumstances and, to the extent the same is
the responsibility of Tenant under this Lease, take all remedial action necessary for compliance with the Management Agreement; provided
that Tenant may contest any such violation if Landlord consents to such contest by Tenant, which consent shall not be unreasonably withheld.
If Tenant contests such violation, Tenant shall hold Landlord harmless from any loss, cost, damage or expense, including reasonable attorneys’
fees, resulting from such contest, unless the contested violation resulted from an intentional act or omission in contravention of this
Lease by Landlord, its agents or employees.

 

    9

     

    

 

(e)              
Tenant shall deliver to Landlord, within three (3) days after receipt of same by Tenant, copies of all written notices sent to
Tenant by Manager relating to the Management Agreement.

 

(f)               
Landlord and Tenant agree to cooperate fully with each other in the event it becomes necessary to obtain an extension or modification
of the Management Agreement or a new management agreement for the Leased Property.

 

(g)              
Tenant shall ensure that the Management Agreement (or any successor management agreement) obligates the Manager to provide information
Landlord deems reasonably necessary to ensure that the Manager is an “eligible independent contractor” as such term is defined
in Section 856(d)(9)(A) of the Code.

 

3.10         
Books and Records. In addition to any other requirements set forth herein (including, without limitation, Sections 4.3(a)
and 5.1), Tenant covenants that, for the purposes of ascertaining the amount payable to Landlord as Percentage Rent, Tenant shall keep
books of account and other records in which full, true and correct entries will be made of all financial dealings and actions in relation
to the business and affairs of the Hotel in accordance with generally accepted accounting principles, consistently applied, and will preserve
such records and books of account throughout the Term. All such books and records shall be maintained at the Leased Property or the principal
business office of Tenant or Manager during the Term and, upon the Expiration Date, shall be delivered to Landlord, subject to Tenant’s
continuing right to review such books and records and to make copies or extracts of the same. Landlord shall keep such books and records
for five (5) years after the expiration or earlier termination of this Lease. Landlord shall have access to such books and records during
regular business hours during the Term and shall have the right, at its expense, to make copies or extracts thereof.

 

3.11         
Rent without Setoff. Except as otherwise expressly provided herein, there shall be no deduction or setoff of any nature
whatsoever from Rent payable under this Lease, by reason of (a) any damage to or destruction of the Leased Property or any portion thereof
from whatever cause or any condemnation; (b) the lawful or unlawful prohibition of, or restriction upon, Tenant’s use of the Leased
Property, or any portion thereof, unless caused by Landlord or unless the same is a breach of warranty or covenant by Landlord; (c) any
claim that Tenant may have against Landlord by reason of any default or breach of any warranty by Landlord under this Lease or any other
agreement between Landlord and Tenant, or to which Landlord and Tenant are parties; (d) any bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding up or other proceedings affecting Landlord or any assignee or transferee of Landlord;
or (e) for any other cause whether similar or dissimilar to any of the foregoing. Except as otherwise specifically provided in this Lease,
Tenant hereby waives all rights arising from any occurrence whatsoever, which may now or hereafter be conferred upon it by law, to entitle
Tenant to any abatement, reduction, suspension or deferment of the Rent or other sums payable or other obligations to be performed by
Tenant hereunder. The obligations of each party hereunder shall be separate and independent covenants and agreements, and the Rent and
all other sums payable by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be
terminated pursuant to the express provisions of this Lease.

 

    10

     

    

 

3.12         
Rent Acceptance. If Landlord, at any time or times, accepts any Rent or any other sum due to it hereunder after the same
becomes due and payable, such acceptance shall not excuse delay upon any subsequent occasion, or constitute, or be construed as, a waiver
of any of Landlord’s rights hereunder as to payment of any Rent or any other sums due to it thereafter. Furthermore, Landlord’s
acceptance at any time of less than the full amount of any item of Rent due shall not be deemed a waiver of any unpaid amount, whether
or not there is any dispute thereon between Landlord and Tenant, and whether or not Tenant expressly asserts, and/or Landlord expressly
disclaims or denies, such acceptance as being in full settlement, full payment or the like of any such dispute.

 

3.13         
Place Where Rent Paid. All Rent shall be payable to Landlord at the place provided in this Lease for the sending of notices
to Landlord, or at such other place as Landlord may specify by notice to Tenant from time to time. A place once specified as the place
for the payment of Rent shall continue until changed by notice by Landlord to Tenant.

 

3.14         
Omitted

 

ARTICLE
4

USE

 

4.1             
General Operating Covenants. During the Term, Tenant shall continuously use and occupy the Hotel as a hotel which meets
or exceeds the Operational Standards. Tenant shall operate the Hotel under the name “Cherry Tree Inn,” or such other name
as Landlord may approve from time to time, and shall maintain the Hotel in compliance with all applicable Laws, the Operational Standards
and all Mortgages. Tenant shall proceed with diligence and exercise reasonable good faith efforts to obtain and maintain all approvals
necessary to operate and use the Hotel for its intended purpose under all applicable Laws. Tenant shall use reasonable good faith efforts
to promote the maximum possible amount of trade, commerce and business for the Hotel. Tenant shall not hold itself out as the agent of
Landlord. Upon written request from Tenant, which request shall not be delivered more frequently than quarterly, Landlord shall perform
an inspection of the Leased Property, and, promptly following such inspection, confirm that Tenant is in compliance with this Section
4.1, or, if Tenant is not in compliance with this Section 4.1, specify any violations of this Section 4.1.

 

4.2             
Prohibited Uses. Tenant will not knowingly make or permit to be made any use of the Hotel or any part thereof that would
violate any of the covenants, terms, provisions and conditions of this Lease or any Mortgage, or that directly or indirectly is forbidden
by applicable Laws or that may be dangerous to life, limb or property or that may invalidate or materially increase the premium cost of
any policy of insurance carried on the Leased Property or covering the operation of the Leased Property or the Hotel. Tenant shall not,
and shall not knowingly permit anyone else to, bring into, use, store or dispose of on the Leased Property any materials or substances
in violation of any applicable Laws. Tenant will not, and will not knowingly suffer or permit the Leased Property or any part thereof
to be used in any manner or permit anything to be brought into or kept therein that would in any way materially impair or tend to materially
impair the character, reputation or appearance of the Hotel or that would materially impair or interfere with or tend to materially impair
or interfere with any of the services performed by Landlord for the Hotel or that could threaten the safety of the Hotel or any of its
occupants. Tenant will not, and will not knowingly suffer or permit the Leased Property or any part thereof to be used in any manner to
conduct wagering activities by any person who is engaged in the business of accepting wagers and who is otherwise legally authorized to
engage in such business.

 

    11

     

    

 

4.3             
Records.

 

(a)              
In addition to any other requirements set forth herein (including, without limitation, Sections 3.10 and 5.1), Tenant shall maintain
complete books and records for the Hotel, including the books of account, guest records, front office records and general records of the
Hotel.

 

(b)              
Tenant shall prepare and file all forms, reports and returns for the Hotel required by all federal, state or local laws in connection
with unemployment insurance, worker’s compensation insurance, disability benefits, income tax withholding, and social security.
Tenant shall prepare for review, approval and, where appropriate, auditing by Landlord’s independent accounting firm, all financial
statements with respect to the operation of the Hotel.

 

4.4             
Guests. Tenant shall maintain business-like relations with guests of the Hotel. Tenant shall collect with diligence the
rents and other income due from guests and concessionaires and use reasonable good faith efforts to enforce compliance with all terms
of overnight occupancy rights.

 

4.5             
Advertising and Promotion. Tenant shall arrange, contract and pay for all advertising and promotion that Tenant deems necessary
for the successful operation of the Hotel in order to meet or exceed the Operational Standards.

 

4.6             
Services and Purchases.

 

(a)              
Tenant shall enter into, perform its obligations under, administer, pay and use reasonable good faith efforts to enforce service
contracts required in the ordinary course of business in operating the Hotel, including contracts for water, electricity, gas, telephone,
refuse removal, vermin extermination, snow removal, cable, Internet, cleaning, laundry, pool service, vending services, fire systems inspection
and testing, elevator and boiler maintenance, and all other services (collectively, “Service Contracts”) that are provided
in comparable hotels.

 

(b)              
Tenant shall take reasonable measures, as directed by Landlord and as are consistent with the provisions of this Lease, to provide
for security in the Hotel.

 

(c)              
Tenant shall make all payments on or before the applicable due dates required to maintain the insurance regarding the Hotel that
Tenant is required to carry under Article 7.

 

4.7             
Permits. To the extent not required to be provided by Landlord, Tenant shall apply for, obtain and maintain (or shall require
Manager to apply for, obtain and maintain) for the benefit of the Hotel all licenses and permits required in connection with the management
and operation of the Hotel (collectively, “Licenses”). Landlord shall execute and deliver any and all applications
and other documents and otherwise cooperate to the fullest extent with Tenant in applying for, obtaining and maintaining such Licenses.
Tenant shall assign (or cause Manager to assign) all such Licenses for the Hotel to Landlord or its designee upon termination of this
Lease (to the extent assignable).

 

    12

     

    

 

4.8             
Compliance with Law and Mortgages.

 

(a)              
Subject to Section 4.8(c) below, Tenant shall comply with and abide by all applicable statutes, laws, rules, regulations, requirements,
orders, notices, determinations and ordinances of any Governmental Authority (all of the foregoing hereinafter referred to collectively
as “Laws”), and with the terms and provisions of any Mortgage, to the extent performance of such terms and provisions
are within the control of Tenant under this Lease.

 

(b)              
Subject to Section 4.8(c) below, if Tenant receives notice of or becomes aware of a violation or circumstances likely to result
in a violation of any Law or any Mortgage, Tenant shall promptly deliver to Landlord and the holder of such Mortgage written notice of
such violation or circumstances and, to the extent the same is the responsibility of Tenant under this Lease, take all remedial action
necessary for compliance with the Law and any Mortgage; provided that Tenant may contest any such violation if Landlord consents to such
contest by Tenant, which consent shall not be unreasonably withheld. If Tenant contests such violation, Tenant shall hold Landlord harmless
from any loss, cost, damage or expense, including, reasonable attorneys’ fees, resulting from such contest, unless the contested
violation resulted from an intentional act or omission in contravention of this Lease by Landlord, its agents or employees. Upon written
request from Tenant, which request shall not be delivered more frequently than quarterly, Landlord shall perform an inspection of the
Leased Property, and, promptly following such inspection, confirm that there is no violation or circumstances likely to result in a violation
of any Law or any Mortgage, or, if such a violation or circumstance shall exist, specify any such violation or circumstance.

 

(c)              
Notwithstanding the foregoing provisions of this Section 4.8, Landlord shall be solely responsible for all cost and expense arising
from the presence, suspected presence, release or suspected release of any Hazardous Materials in or into the air, soil, surface water
or ground water, or any portion thereof, at, on, about, under or within the Leased Property, including any costs of investigation or remediation,
whether prior to or subsequent to the Commencement Date; provided, however, that Tenant shall be solely responsible for all cost and expense
arising from the presence, suspected presence, release or suspected release of any Hazardous Materials in or into the air, soil, surface
water or ground water, or any portion thereof, at, on, about, under or within the Leased Property, including any costs of investigation
or remediation, if and to the extent caused by the intentional act or willful misconduct of Tenant.

 

    13

     

    

 

4.9             
Payment of Taxes.

 

(a)              
Tenant shall pay all taxes (including, without limitation, all ad valorem, sales and use, single business, gross receipts, transaction,
privilege, imposition, rent or similar taxes as the same relate to or are imposed upon Tenant or the business conducted upon the Leased
Property) not included in Section 4.9(b) below, water, sewer or other rents and charges, excises, tax levies, fees (including,
without limitation, license, permit, inspection, authorization and similar fees) and all other governmental charges not included in Section
4.9(b) below, in each case whether general or special, ordinary or extraordinary, foreseen or unforeseen, of every character in respect
of the Leased Property or the business conducted thereon by Tenant (including all interest and penalties thereon due to any failure in
payment by Tenant), which at any time during or in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien
upon (i) Landlord’s interest in the Leased Property; (ii) the Leased Property, any part thereof, any rent therefrom, or any estate,
right, title, or interest therein; or (iii) any occupancy, operation, use or possession of, or sales from, or activity conducted on or
in connection with the Leased Property or the leasing or use of the Leased Property or any part thereof by Tenant, including, without
limitation, (A) all social security taxes, unemployment insurance taxes, withholding taxes and similar taxes and assessments of any nature
imposed on Tenant in connection with any employees or personnel of Tenant; (B) all hotel taxes, gross receipts taxes, amusement taxes,
excise taxes, sales or use taxes, rent taxes or similar taxes as the same relate to or are imposed upon Tenant or the business conducted
upon the Leased Property (excluding the income of any sublessees, licensees or concessionaires of Tenant, but including the rent or other
amounts received by Tenant under any such subleases, licenses or concession agreements); and (C) all personal property taxes or similar
taxes or assessments with respect to any period during the Term, it being agreed that any personal property taxes payable in part with
respect to the Term and in part with respect to periods before or after the Term shall be prorated between Landlord and Tenant based on
the number of days of the period for which such personal property tax is payable that fall within the Term and that fall outside of the
Term.

 

(b)              
Landlord shall pay all real property or similar taxes or assessments, whether special or general, of any nature whatsoever assessed
against the Leased Property, with respect to any period before, during or after the Term, but the foregoing shall not include any sales,
use, gross receipts, occupancy, single business, transaction, privilege, imposition, rent, ad valorem or other tax not specifically enumerated
herein.

 

4.10         
Removal of Liens. Except as contemplated under any mortgage loan associated with the Leased Property, Tenant shall at all
times keep the Leased Property free of any claim, lien, encumbrance or security interest other than liens for real and personal property
taxes and assessments not then delinquent (hereinafter collectively called a “Lien”), except for taxes that are then
due and payable and that, if not then paid, would be delinquent. In the event a Lien is asserted against the Leased Property or any part
thereof, Tenant shall immediately give Landlord written notice thereof and shall, to the extent that the Lien would be the responsibility
of Tenant hereunder, within twenty (20) days after such notice is given, take all reasonable steps necessary for removal thereof or bonding
over unless Landlord notifies Tenant in writing within such 20-day period that Landlord wishes to contest such Lien or permit Tenant to
contest such Lien. Landlord shall retain all right to contest and control all matters involving real property tax assessments and valuations
regarding the Property. Tenant shall promptly notify Landlord of any notice received by it regarding such matters.

 

4.11         
Utilities. Tenant shall be solely responsible for, and shall promptly pay directly to the utility or service provider the
cost (including connection and other charges), of all heat, air conditioning, water, gas, electrical, light, power, sewer charges, telephone
service, and other services and utilities supplied to the Leased Property, together with any taxes thereof. Landlord shall reasonably
cooperate with Tenant in connection with any energy conservation program, provided that the same shall be accomplished without Landlord
being required to incur any out-of-pocket cost or expense thereby. If such cooperation by Landlord shall result in any out-of-pocket cost
or expense to Landlord (including reasonable attorneys’ fees and disbursements), Tenant shall nonetheless have the right to require
Landlord’s cooperation in connection therewith, provided that Tenant shall reimburse Landlord for such out-of-pocket costs or expenses,
as Additional Rent, within thirty (30) days after demand therefor.

 

    14

     

    

 

4.12         
Notice to Landlord. Tenant shall promptly notify Landlord in writing:

 

(a)              
if, to the actual knowledge of Tenant, the condition of the Hotel or any part thereof fails to meet any Law or the standards imposed
hereunder;

 

(b)              
upon receipt by Tenant of any notice, demand or similar communication with respect to the violation of (i) any Law, or (ii) the
obligation of Landlord under any Mortgage;

 

(c)              
upon receipt by Tenant of any summons, notice, demand or similar communication regarding any action at law or in equity or before
any regulatory body in connection with or involving the Hotel, or any portion thereof;

 

(d)              
upon receipt by Tenant of any notice or communication from an insurance carrier regarding a material change to insurance coverages
or the insurability of the Leased Property; and

 

(e)              
upon receipt by Tenant of any notice or communication of any nature, written or oral, that, in the reasonable opinion of Tenant,
may have a material adverse effect on the Hotel.

 

4.13         
Omitted.

 

4.14         
Representations, Warranties and Covenants of Landlord. Landlord hereby represents, warrants and covenants to Tenant that
as of the Commencement Date:

 

(a)              
Organization; Binding and Enforceable. Landlord is a duly organized limited liability company validly existing under the
laws of the State of Delaware. Landlord has full power and authority to perform its obligations under this Lease, and this Lease is the
legal, valid and binding obligation of Landlord and is enforceable against Landlord in accordance with its terms.

 

(b)              
No Conflicts; Consents Obtained. The execution and delivery of this Lease does not violate or conflict with the formation
document or the operating document of Landlord or any agreement, judgment, license, permit, order or other document applicable to or binding
upon Landlord. Landlord has obtained all consents and approvals required by any third party with respect to Landlord in connection with
the execution and delivery of this Lease.

 

4.15         
Representations and Warranties of Tenant. Tenant hereby represents and warrants to Landlord that as of the Commencement
Date:

 

(a)              
Organization; Binding and Enforceable. Tenant is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware. Tenant has full power and authority to perform its obligations under this Lease, and
this Lease is the legal, valid and binding obligation of Tenant, and enforceable against Tenant in accordance with its terms.

 

    15

     

    

 

(b)              
No Conflicts; Consents Obtained. The execution and delivery of this Lease does not violate or conflict with the formation
document or the operating document of Tenant or any agreement, judgment, license, permit, order or other document applicable to or binding
upon Tenant. Tenant has obtained all consents and approvals required by any third party with respect to Tenant in connection with the
execution and delivery of this Lease.

 

(c)              
Management Agreement. (i) The Management Agreement is in full force and effect, (ii) there is no material uncured default,
breach or violation existing thereunder by either party thereto, and (iii) to Tenant’s knowledge, no event has occurred (other than
payments due but not yet delinquent) that, with the passage of time or the giving of notice, or both, would constitute a material default,
breach or violation by either party thereunder.

 

(d)              
Omitted.

 

(e)              
OFAC Lists.

 

(i)        Neither
Tenant, nor any member of Tenant, nor, to Tenant’s knowledge, any Person with actual authority to direct the actions of any member
of Tenant, nor, to Tenant’s present, actual knowledge, any other Persons holding any legal or beneficial interest whatsoever in
Tenant, (A) are named on any list of persons, entities, and governments issued by the Office of Foreign Assets Control of the United States
Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 – Blocking Property and Prohibiting Transactions
with Persons Who Commit, Threaten to Commit, or Support Terrorism (“Executive Order 13224”), as in effect on the date
hereof, or any similar list known to Tenant or publicly issued by OFAC or any other department or agency of the United States of America
(collectively, the “OFAC Lists”), (b) are included in, owned by, controlled by, knowingly acting for or on behalf of,
knowingly providing assistance, support, sponsorship, or services of any kind to, or otherwise knowingly associated with any of the Persons
referred to or described in the OFAC Lists; or (c) has knowingly conducted business with or knowingly engaged in any transaction with
any Person named on any of the OFAC Lists or any Person included in, owned by, controlled by, acting for or on behalf of, providing assistance,
support, sponsorship, or services of any kind to, or, to Tenant’s present, actual knowledge otherwise associated with any of the
Persons referred to or described in the OFAC Lists.

 

(ii)        Neither
Tenant, nor any Persons holding any legal or beneficial interest whatsoever in Tenant (whether directly or indirectly), will conduct business
with or engage in any transaction with any Person named on any of the OFAC Lists or any Person included in, owned by, controlled by, acting
for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the Persons
referred to or described in the OFAC Lists.

 

    16

     

    

 

(iii)        Tenant
shall comply at all times with the requirements of Executive Order 13224; the International Emergency Economic Powers Act, 50 U.S.C. Sections
1701-06; the United and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Pub. L. 107-56; the Iraqi Sanctions Act, Pub. L. 101-513, 104 Stat. 2047-55; the United Nations Participation Act, 22 U.S.C. Section 287c;
the Antiterrorism and Effective Death Penalty Act, (enacting 8 U.S.C. Section 219, 18 U.S.C. Section 2332d, and 18 U.S.C. Section 2339b);
the International Security and Development Cooperation Act, 22 U.S.C. Section 2349 aa-9; the Terrorism Sanctions Regulations, 31 C.F.R.
Part 595; the Terrorism List Governments Sanctions Regulations, 31 C.F.R. Part 596; and the Foreign Terrorist Organizations Sanctions
Regulations, 31 C.F.R. Part 597 and any similar laws are regulation currently in force or hereafter enacted.

 

4.16         
Mutual Representations, Warranties and Covenants of Landlord and Tenant.

 

(a)              
Single Purpose Entities. Except as otherwise permitted by this Lease, each of Landlord and Tenant hereby represents and
warrants that it has been organized as a single purpose entity, solely for the purpose of entering into this Lease and the other agreements
contemplated hereby and performing the obligations required hereunder and under the other agreements contemplated hereby. Each of Landlord
and Tenant covenants that as of the date hereof and through the Term it will comply with the special purpose entity covenants contained
in the loan documents related to any Mortgage by the Landlord.

 

(b)              
No Discrimination. Each of Landlord and Tenant covenants by and for itself, its successors and assigns, and all persons
claiming under or through them, and this Lease is made and accepted upon and subject to the condition that there shall be no discrimination
against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin
or ancestry in the leasing, subleasing, transferring, use or enjoyment of the Property herein leased, nor shall the Lease itself, or any
person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants or vendees of the Property herein leased.

 

4.17         
“As Is” Leased Property. Tenant agrees to accept the Leased Property on the Commencement Date “AS IS”
in the condition existing on the date hereof, subject to the provisions of Section 6.3 below. Landlord shall have no obligation to do
any work in order to make the Leased Property suitable and ready for occupancy and use by Tenant. Landlord shall deliver actual possession
of the Leased Property to Tenant in such condition on the Commencement Date. Tenant agrees that, except as expressly provided herein,
(a) Tenant enters into this Lease without any representations, warranties or promises, express or implied, by Landlord, its agents, representatives,
employees, servants or any other person in respect of the Leased Property, and (b) no rights, easements or licenses are acquired by Tenant
by implication or otherwise.

 

4.18         
Third Party Manager. Tenant shall have the right to cause Manager to perform all obligations of Tenant to be performed under
this Lease, provided that Tenant shall remain liable to Landlord for the performance of all such obligations, notwithstanding any liability
of Manager to Tenant.

 

    17

     

    

 

ARTICLE
5

FINANCIAL STATEMENTS; TRANSACTIONS WITH AFFILIATES

 

5.1             
Financial Statements to be Provided by Tenant. In addition to any other requirements set forth herein (including, without
limitation, Sections 3.10 and 4.3(a)), Tenant shall maintain accurate and complete books of account and records showing the assets and
liabilities, operations, transactions and financial condition of Tenant and the Property on an accrual basis in accordance with GAAP.
The books of account and records of Tenant and the Property shall at all times be maintained at the principal business office of Tenant
or Manager. All such books of account and records may be inspected, copied and audited by Landlord or any of its members or their designees
or representatives from time to time and upon reasonable prior notice at the office of Tenant or Manager. Tenant shall, as and when received
(or required to be received), furnish to Landlord copies of the financial statements and reports furnished (or required to be furnished)
by Manager to Tenant pursuant to the terms of the Management Agreement. In addition, if not furnished pursuant to the immediately preceding
sentence, Tenant shall furnish to Landlord, as and when required pursuant to the terms of any Mortgage, any and all operating statements,
financial statements, balance sheets, budgets and reports regarding the Leased Property, including the Hotel, that shall be required under
such Mortgage.

 

5.2             
Transactions with Affiliates. In Tenant’s management and operation of the Hotel, Tenant may not purchase goods, supplies
or services from or through any of its Affiliates, except with the prior written consent of Landlord, which consent shall not be unreasonably
withheld.

 

ARTICLE
6

MAINTENANCE, REPAIRS AND ALTERATIONS

 

6.1             
Maintenance and Repairs. Subject to Landlord’s performance of its obligations under this Lease with respect to the
condition of the Leased Property (including, without limitation, with respect to the Required Improvements), Tenant shall keep and maintain
the Leased Property, the heating, air conditioning, ventilating, plumbing, mechanical, electrical, telephone, elevator, escalator, life
and safety and security systems, floor and wall coverings in good order, repair and condition, including making and paying for necessary
replacements, additions and substitutions in order to maintain the Hotel in compliance with any Mortgage, the Operational Standards, and
all applicable Laws; provided, however, that Landlord shall have the right to (i) participate in meetings with Tenant’s contractors
performing any such repairs, replacements, additions and substitutions and (ii) require that any such repairs, replacements, additions
and substitutions be supervised by Landlord.

 

6.2             
Alterations. Except for Tenant’s obligations hereunder to renew and replace (which may, without Landlord’s consent,
be made with the same, similar, or better materials and workmanship), Tenant shall not have any right to make any alterations, changes,
additions or improvements to the Hotel or the FF&E, if and to the extent such FF&E is owned by Landlord, without the prior written
consent of Landlord, which consent Landlord may withhold in its sole discretion. Any work that Tenant may perform in the Hotel that is
done with Landlord’s consent, if given, may be conditioned on (i) Landlord’s approval of Tenant’s plans therefor, (ii)
Landlord’s participation in meetings with Tenant’s contractors performing any such alterations, changes, additions or improvements,
(iii) Landlord’s supervision of the performance of any such alterations, changes, additions or improvements, and (iv) compliance
by Tenant with such terms and conditions as Landlord may reasonably impose or as are required to maintain the quality of the improvements
on the Land in accordance with the Operational Standards, or any Mortgage. All alterations, additions, and improvements in, on, or to
the Hotel made or installed by Tenant, including carpeting and wall covering, shall be and become a part of the realty and owned by Landlord
without compensation to Tenant.

 

    18

     

    

 

6.3             
Capital Expenditures. Landlord shall be responsible for any capital expenditure (determined in accordance with GAAP) necessary
to operate and maintain the Leased Property in accordance with the Operational Standards.

 

ARTICLE
7

LIABILITY CLAIMS AND INSURANCE

 

7.1             
Waiver of Claims. To the extent permitted pursuant to applicable Laws, Tenant agrees that Landlord, its Affiliates, and
each of their respective shareholders, directors, partners, members, officers, employees and agents, shall not be liable to Tenant, and
Tenant hereby releases said parties from any liability, for any personal injury to Tenant’s employees, invitees, guests or licensees,
for loss of income or damage to or loss of persons or personal property in or about the Hotel from any cause whatsoever except to the
extent that such damage or loss of income is attributable to the gross negligence, willful misconduct or fraud of Landlord. To the extent
permitted pursuant to applicable Laws, Landlord agrees that Tenant, its Affiliates and each of their respective shareholders, directors,
partners, members, officers, employees and agents shall not be liable to Landlord, and Landlord hereby releases said parties from any
liability for any personal injury to Landlord’s employees, invitees, guests or licensees, for loss of income or damage or loss of
income of persons or property in or about the Hotel from any cause whatsoever except to the extent that such damage or loss is attributable
to the gross negligence, willful misconduct or fraud of Tenant.

 

7.2             
Liability Insurance. Tenant will secure and maintain broad form commercial general liability insurance (including innkeeper’s
legal liability insurance and dram shop insurance, if applicable) designating Landlord, Manager, and Tenant as named insureds and the
holder of each Mortgage as additional insureds, from financially responsible insurance companies, covering the Hotel in forms and with
limits that are in compliance with the Management Agreement and each Mortgage and which are reasonable and appropriate based on the Operational
Standards. The companies issuing such policies and the form and coverage of such policies shall be subject to the prior written approval
of Landlord, which approval shall not be unreasonably withheld. Tenant shall cause Manager to maintain workers’ compensation insurance
and employer’s liability insurance in forms and amounts required by law. Tenant shall supply Landlord with certificates of insurance
for all the above-described policies of insurance. Such certificates shall provide that Tenant’s insurance may not be terminated,
canceled or amended except upon thirty (30) days’ prior written notice to Landlord.

 

    19

     

    

 

7.3             
Property Insurance. Subject to the terms of Section 7.7 below, Landlord shall obtain and keep in full force and effect “all
risk” property insurance on the Hotel, including all FF&E owned by Landlord, in compliance with each Mortgage, for the full
replacement cost thereof, excluding deductibles. Tenant shall insure all FF&E owned by Tenant, in compliance with each Mortgage, for
the full replacement cost thereof, excluding deductibles. Landlord shall supply Tenant, and Tenant shall supply Landlord, with certificates
of insurance for all the above-described policies of insurance and each shall name Landlord, Manager, and Tenant as named insured parties.
In addition, each policy maintained by Landlord under this Section 7.3 shall name the holder of each Mortgage as loss payee. Such certificates
shall provide that such insurance may not be terminated, canceled or amended except upon thirty (30) days’ prior written notice
to Landlord and Tenant. Tenant hereby waives any claims against Landlord for any loss or damage to the Leased Property as a result of
fire or other casualty covered by insurance (unless such loss or damage is a direct result of Landlord’s negligence, willful misconduct
or fraud).

 

7.4             
Business Interruption Coverage.

 

(a)              
Subject to the terms of Section 7.7 below, Landlord shall obtain coverage for the actual loss sustained (including rental value)
resulting from the necessary interruption of business caused by direct physical damage to or destruction of real or personal property
resulting from an occurrence covered by the insurance described in Section 7.3 above, including one hundred eighty (180) days subsequent
to completion of any required repairs or replacements necessary to return the Leased Property to a condition at least as good as the condition
prior to the interruption event and sufficient to satisfy the requirements of any Mortgage and the Operational Standards. The insurance
described in this Section 7.4(a) shall name Landlord as named insured party and each mortgagee under any Mortgage as loss payee.

 

(b)              
Subject to the terms of Section 7.7 below, Tenant shall obtain coverage for the actual loss of profits sustained resulting from
the necessary interruption of business caused by direct physical damage to or destruction of real or personal property resulting from
an occurrence covered by the insurance described in Section 7.3 above, including one hundred eighty (180) days subsequent to completion
of any required repairs or replacements necessary to return the Leased Property to a condition at least as good as the condition prior
to the interruption event and sufficient to satisfy the requirements of the Operational Standards.

 

7.5             
Waiver of Subrogation. All insurance policies described in Sections 7.1, 7.2, 7.3 and 7.4(a) shall provide for waiver of
rights of subrogation against Landlord, Tenant, Manager and the holder of each Mortgage.

 

7.6             
Other. Any insurance provided by Tenant under this Article 7 may be provided under the blanket insurance policies of Manager,
which policies cover other hotel properties managed by Manager, subject, however, to the prior written approval of Landlord (which approval
shall not be unreasonably withheld) if Landlord shall have an approval right pursuant to this Article 7 over the insurance coverage being
provided by any such blanket insurance policy. All premiums, costs and expenses shall be allocated among the properties participating
in such program. Coverage extended to any additional insured or additional named insured under these policies will expire on the Expiration
Date.

 

    20

     

    

 

7.7             
Single Policy. Notwithstanding anything to the contrary contained in this Article 7, any insurance coverage required to
be provided by Landlord under this Article 7 may be provided by Tenant on behalf of Landlord under a single policy, and any insurance
required to be provided by Tenant under this Article 7 may be provided by Landlord on behalf of Tenant under a single policy, provided
that (i) any such coverage shall otherwise comply with the foregoing provisions of this Article 7, including with respect to the naming
of loss payees, named insureds and additional insureds, (ii) in the result of an insured claim, any such coverage shall result in the
same allocation of proceeds as would have been made had the policies been maintained separately, and (iii) notwithstanding the fact that
one party may maintain insurance coverage for the benefit of the other party, the cost of insurance under this Article 7 shall be allocated
such that each party shall pay for its respective share of such insurance.

 

ARTICLE
8

DEFAULT AND TERMINATION

 

8.1             
Tenant Default. The following events shall constitute a default by Tenant (subsequent to the associated notice and cure
periods set forth in this Section 8.1, each an “Event of Default”) under this Lease:

 

(a)              
Tenant shall fail to pay when due and payable any of the Rent herein provided for or any other sum agreed or required by this Lease
to be paid by Tenant upon the respective dates that the same becomes due and payable and such failure shall continue for a period of five
(5) business days after written notice of non-payment from Landlord; or

 

(b)              
Tenant shall fail to perform any other covenant of this Lease to be kept and performed by Tenant, and such failure shall thereafter
continue for a period of thirty (30) days after written notice from Landlord to Tenant specifying the nature of said failure; provided
that, if the default is one that cannot, by its nature, reasonably be cured within thirty (30) days, no Event of Default will have occurred
hereunder if Tenant commences reasonable and diligent efforts to cure such default within such 30-day period after receipt of Landlord’s
notice and thereafter diligently prosecutes such efforts to completion; or

 

(c)              
Tenant shall file an application for, or consent to, the appointment of a receiver, trustee or liquidator of itself or of all of
its assets, or file a voluntary petition in bankruptcy or for reorganization, or have filed against it an involuntary petition in bankruptcy
which is not dismissed within sixty (60) days, or file a pleading in any court of record admitting in writing its inability to pay its
debts as they come due, or make a general assignment for the benefit of creditors or file an answer admitting the material allegations
of, or its consenting to, or defaulting in answering, a petition filed against it in any bankruptcy or reorganization proceeding; or

 

(d)              
any order, judgment or decree by any court of competent jurisdiction, is entered adjudicating Tenant as bankrupt, or appointing
a receiver, trustee or liquidator of it or of all of its assets, and such order, judgment or decree continues unstayed and in effect for
any period of ninety (90) consecutive days; or

 

(e)              
the Management Agreement is terminated for any reason during the Term, unless terminated by Tenant on account of the default or
failure to perform by Manager; or

 

(f)               
Omitted; or

 

    21

     

    

 

(g)              
an act or omission of Tenant causes a default under the Mortgage; or

 

(h)              
Tenant violates Section 12.20.

 

8.2             
Collateral Assignment. To secure payment and performance of Tenant’s obligations to Landlord under this Lease, Tenant
hereby irrevocably, absolutely and unconditionally assigns, transfers and conveys to Landlord, its successors and assigns, all of Tenant’s
right, title and interest, if any, and grants to Landlord a security interest, in and to all of Tenant’s right, title and interest
in and to the property and items set forth on Exhibit B hereto. The foregoing is intended to grant in favor of Landlord a first
priority continuing lien and security interest in all of Tenant’s personal property. Tenant authorizes Landlord (or holder of a
Mortgage, on Landlord’s behalf) and its counsel to file UCC statements in form and substance satisfactory to Landlord, describing
the collateral as all assets and personal property of Tenant, whether now owned or existing or hereafter acquired or arising and wheresoever
located, including all accessions thereto and products and proceeds thereof, or using words with similar effect. Tenant acknowledges,
agrees and consents to the pledge by Landlord to any holder of a Mortgage of Landlord’s rights, title, and interests herein as collateral
security for the Landlord’s obligations to any holder of a Mortgage.

 

8.3             
Landlord’s Remedies. Upon a continuing and uncured Event of Default, Landlord shall have, in addition to all rights
and remedies provided by law, the right to terminate this Lease by delivery of written notice thereof to Tenant at any time prior to the
cure of the Event of Default.

 

8.4             
Surrender of the Leased Property. Tenant shall, on the Expiration Date, or on the earlier termination hereof, peaceably
and quietly leave (subject to any continuing rights of Tenant to enter onto the Leased Property for the purposes specifically contemplated
in this Lease), surrender and yield up unto Landlord the Leased Property in good order and repair, excepting reasonable wear and tear.
Upon the termination of this Lease for any reason, (i) Landlord, or a purchaser of Landlord’s interest in the Leased Property, shall
purchase all of the Hotel Personalty (including FF&E) owned by Tenant and all of the Operating Supplies owned by Tenant and used in
connection with the Leased Property (if any) for an amount equal to the fair market value of such Hotel Personalty and Operating Supplies
as of the date of termination, (ii) Tenant shall leave at the Hotel the Hotel Personalty and Operating Supplies not owned by Tenant (which
shall be in a condition consistent with the Operational Standards), and (iii) Tenant shall assign the Assigned Items to Landlord. Tenant
shall also reasonably cooperate for thirty (30) days with any successor tenant or owner of the Hotel upon the expiration or termination
of this Lease to effect a smooth and efficient transition in the operation of the Hotel. Upon termination of this Lease and surrender
of the Hotel by Tenant, Landlord shall either assume or cause to be assumed all of the Assigned Items and perform or otherwise cause to
be performed all of Tenant’s obligations thereunder relating to any period after the Expiration Date.

 

    22

     

    

 

8.5             
Landlord’s Right to Cure. Tenant agrees that, if an Event of Default occurs, Landlord may, but shall not be obligated
to, after the occurrence of the Event of Default, until the same has been cured, and after notice or demand to Tenant, without waiving
or releasing Tenant from any of Tenant’s obligations under this Lease, make any payment or perform such other act in whole or in
part to the extent Landlord may deem desirable and, in connection therewith, to pay expenses and employ legal counsel. All sums paid by
Landlord pursuant to this Section 8.5 and all reasonable expenses, including reasonable attorneys’ fees, paid in connection therewith,
together with interest thereon at the Default Interest Rate calculated from the date of payment by Landlord, shall be deemed to be Rent
hereunder and shall be payable upon demand by Landlord, and Landlord shall have the same rights and remedies for the nonpayment thereof
as in the case of default in the payment of Rent.

 

8.6             
Tenant’s Bankruptcy or Insolvency. If Tenant shall be subjected to the provisions of the United States Bankruptcy
Code or other law of the United States or any state thereof for the protection of debtors as in effect at such time (each a “Debtor’s
Law”), the debtor-in-possession and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”)
shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Leased Property then
accorded to Tenant by the specific provisions of this Lease, except to the extent Landlord shall be required to permit such assumption,
assignment or sublease by the provisions of such Debtor’s Law. Without limitation of the generality of the foregoing, any right
of any Tenant’s Representative to assume or assign this Lease or to sublease any of the Leased Property shall be subject to the
conditions that:

 

(a)              
Such Debtor’s Law shall provide to Tenant’s Representative a right of assumption of this Lease which Tenant’s
Representative shall have timely exercised and Tenant’s Representative shall have fully cured any default of Tenant under this Lease.

 

(b)              
Tenant’s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for
the timely payment of rent an amount equal to three (3) months’ Rent and other monetary charges accruing under this Lease, and shall
have provided Landlord with adequate other assurance of the future performance of the obligations of Tenant under this Lease. Without
limitation, such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of Landlord
that Tenant’s Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations
and administrative expenses to assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations
of Tenant under this Lease.

 

(c)              
In the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified
public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be
sufficient to assure the future performance by such assignee of all of Tenant’s obligations under this Lease.

 

(d)              
Any existing or proposed assumption or assignment of this Lease and any subleasing of any part or all of the Leased Property will
not breach any provision of any other lease, mortgage, financing agreement or other agreement by which Landlord is bound.

 

8.7             
Attorneys’ Fees. If at any time litigation is instituted between Landlord and Tenant with respect to this Lease, the
prevailing party in such litigation may recover from the losing party all court costs, reasonable costs of litigation and reasonable attorneys’
fees incurred or expended by the prevailing party in such action.

 

    23

     

    

 

8.8             
Remedies Cumulative. To the maximum extent permitted by law, each legal, equitable or contractual right, power and remedy
of Landlord or Tenant, now or hereafter provided either in this Lease or by statute or otherwise, shall be cumulative and concurrent and
shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by Landlord or Tenant (as applicable)
of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Landlord of any or
all of such other rights, powers and remedies.

 

8.9             
Liability for Tenant’s Obligations. Landlord covenants and agrees to look solely to Tenant (and not its Affiliates)
for all obligations of Tenant under this Lease.

 

8.10         
Default by Landlord. Landlord shall not be in default of any obligation of Landlord hereunder unless and until Landlord
has failed to perform such obligation within thirty (30) days after receipt of written notice of such failure from Tenant; provided, however,
that in the event the nature of Landlord’s obligation is such that more than thirty (30) days are required for complete performance,
Landlord shall not be in default pursuant to this Section 8.10 if Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes such performance to completion.

 

8.11         
Holding Over. Tenant acknowledges that (a) Tenant’s complete vacancy and surrender of the Leased Property in strict
compliance with Section 8.4 (and all other provisions of this Lease) on or before the Expiration Date or earlier termination may be critical
to the sale by Landlord of the Leased Property, and (b) if Tenant or any Person occupying the Leased Property (or any part thereof) by
or through Tenant holds over past the Expiration Date for any period of time, however brief, such holding over will compromise and deleteriously
affect Landlord’s ability to timely conclude any sale of the Leased Property. In light of the foregoing, (i) Tenant and any Person
occupying the Leased Property (or any part thereof) by or through Tenant shall not be permitted to hold over for any period of time beyond
the Expiration Date for any reason or length of time, (ii) if Tenant (or any Person holding through Tenant) shall hold over for any period
whatsoever, Tenant shall be a tenant at sufferance, subject to eviction without notice, and (iii) Tenant shall indemnify, defend (with
legal counsel reasonably approved by Landlord), and hold Landlord harmless from all causes of action, claims, debts, liabilities, controversies,
damages, costs, losses, and expenses (including reasonable attorneys’ fees) suffered or incurred by Landlord, including lost profits,
by reason of Tenant’s failure (or the failure of any Person occupying all or any portion of the Leased Property under or through
Tenant) to completely vacate and surrender the Leased Property on or before the Expiration Date in strict compliance with Section 8.4
and all other applicable provisions of this Lease.

 

    24

     

    

 

ARTICLE
9

CASUALTY OR CONDEMNATION

 

9.1             
Restoration. If, during the Term, the Hotel is damaged or destroyed by fire, casualty or other cause, Landlord shall, at
its cost and expense and with all reasonable diligence, comply with the requirements of each Mortgage, as such document pertains to casualty
and repair. If the Leased Property, or any material part thereof, shall be rendered untenantable by reason of such damage and such damage
shall not be due to the fault of Tenant or of Persons Within Tenant’s Control, then the Base Rent hereunder, or an amount thereof
apportioned according to the area of the Leased Property so rendered untenantable (if less than the entire Leased Property shall be so
rendered untenantable), shall be abated for the period from the date of such damage to the date when the damage shall have been repaired
as aforesaid. If all or any part of the Leased Property shall be damaged or destroyed by fire or other casualty such that the Hotel is
closed and Landlord determines in its reasonable judgment that the damage cannot be fully restored within 365 days, then either Landlord
or Tenant may terminate this Lease by notice given to the other party not later than thirty (30) days after the determination by Landlord
that the Leased Property cannot be restored within such time period. If this Lease is terminated pursuant to this Section 9.1, all insurance
proceeds shall be paid to Landlord free of any claim or interest therein whatsoever of Tenant. If this Lease is not terminated as the
result of any fire or other casualty, then, subject to the rights of the holder of each Mortgage, the proceeds of any casualty insurance
or the equivalent thereof shall be used by Landlord to pay for the cost of restoration.

 

9.2             
Condemnation. If, during the Term, all or any part of or interest in the Hotel is taken by any public authority under the
power of eminent domain or by purchase in lieu thereof, Landlord shall, at its cost and expense and with all reasonable diligence, comply
with the requirements of each Mortgage, as such document pertains to condemnation and restoration. If only a part of the Leased Property
shall be so condemned or taken, then effective as of the date of vesting of title, the Base Rent and shall be abated in an amount apportioned
according to the area of the Leased Property so condemned or taken. If all or any part of or interest in the Hotel is taken by any public
authority under the power of eminent domain or by purchase in lieu thereof, such that the Hotel is closed and Landlord determines in its
reasonable judgment that the Hotel cannot be reopened within 365 days, then either Landlord or Tenant may terminate this Lease by notice
given to the other party within thirty (30) days after possession of the Leased Property has been taken. If this Lease is terminated pursuant
to this Section 9.2, then, subject to the rights of the holder of any applicable Mortgage, all awards and proceeds of condemnation shall
be paid to Landlord free and clear of any claim or interest therein whatsoever of Tenant. Tenant shall have no claim against the condemning
authority, whether for the value of its leasehold estate or otherwise.

 

ARTICLE
10

ASSIGNMENT AND SUBLETTING

 

10.1         
Assignment or Subletting. Tenant shall not assign, transfer, mortgage, hypothecate, or encumber, by operation of law or
otherwise, this Lease, or any of Tenant’s interest herein or hereto, nor sublet the Leased Property, or any portion thereof, nor
grant any license or right of use or occupancy with respect to the Leased Property, without the prior written consent of Landlord, which
consent may be withheld by Landlord in its sole and absolute discretion. In addition, Tenant shall not do any of the foregoing without
the prior written consent of the holder of any Mortgage if and to the extent such consent is required by such Mortgage or related loan
documents. Any consent shall be specifically conditioned upon Tenant’s compliance with all of the provisions of this Article 10.
Any attempt to do otherwise shall be absolutely and unconditionally null and void and of no force or effect whatsoever.

 

10.2         
Notice. If Tenant desires to undertake any such transaction, it shall provide Landlord with written notice of such desire,
specifying the consideration for, and all other terms and conditions of such proposed transaction, and identifying the proposed assignee
or subtenant (the “Proposed Party”). Tenant shall also provide Landlord with such corporate, financial, and insurance
information as Landlord may reasonably request concerning the Proposed Party.

 

    25

     

    

 

10.3         
Continued Primary Liability. Notwithstanding any assignment, conveyance or subletting, permitted or otherwise, Tenant shall
at all times remain directly, primarily and fully responsible and liable for the payment of the Rent and for compliance with all of its
other obligations under the terms, provisions and covenants of this Lease.

 

10.4         
Miscellaneous. Notwithstanding any other provision of this Article 10 to the contrary, in connection with any proposed assignment
or subletting, (a) Tenant shall pay to Landlord all reasonable expenses, including reasonable attorneys’ fees incurred by Landlord
in connection with the transaction, (b) Tenant and its proposed party shall, within ten (10) days after notice to do so, execute and deliver
to Landlord such documents, including insurance, and take such further action, as Landlord may reasonably require to effect such transaction
or to protect Landlord’s rights, (c) the acceptance by Landlord of Rent from any other person other than Tenant shall not be deemed
a waiver by Landlord of any provision of this Lease or a consent to any transaction subject to this Article 10, (d) the consent to any
particular transaction shall not be deemed a consent to any other transaction subject to this Article 10, and (e) the consent to any assignment,
subletting or other such transfer (or the consummation of any such transaction) shall not in any way relieve Tenant of any of its obligations
under this Lease, whether arising before or after such consent.

 

ARTICLE
11

SUBORDINATION

 

11.1         
Subordination.

 

(a)              
This Lease shall be subject and subordinate to any existing or future Mortgage. Tenant shall execute such instruments as shall
from time to time be reasonably requested by the holder of the Mortgage confirming such subordinated status. Tenant agrees that if a Foreclosure
Purchaser shall succeed to the interest of Landlord in the Leased Property, (i) this Lease will terminate by operation of law or upon
written notice to Tenant from the Foreclosure Purchaser, as applicable, (ii) the holder of such Mortgage shall not have any obligation
under this Lease to Tenant, (iii) Tenant’s rights in and ownership of any FF&E or other property or items set forth on Exhibit
B hereto owned or leased by Tenant shall terminate by operation of law or upon written notice to Tenant, as applicable (if by written
notice to Tenant from the Foreclosure Purchaser, Tenant shall deliver to the Foreclosure Purchaser such assignments and bills of sale
as the Foreclosure Purchaser may require to evidence the transfer of such FF&E and other property or items), and (iv) Tenant shall
cooperate with the Foreclosure Purchaser with respect to delivery of all licenses and permits, if any, held by Tenant.

 

    26

     

    

 

(b)              
In the event of any foreclosure of any Mortgage or conveyance in lieu of foreclosure, neither the Foreclosure Purchaser nor its
successors or assigns shall in any way or to any extent (i) be bound by any modification or amendment of this Lease executed after the
date of this Lease or by any existing prepayment of Rent for a period greater than one (1) month, unless such modification, amendment
or prepayment shall have been expressly approved in writing by such Foreclosure Purchaser, (ii) be bound by any assignment of Tenant’s
interest in this Lease by Tenant or by operation of law or otherwise (except for any assignment of Tenant’s interest in this Lease
by Tenant made in accordance with the terms of this Lease, which assignment shall be expressly subject to the security interests of the
holder of the Mortgage, including, without limitation, any security interests granted to Landlord by Tenant and pledged or assigned including,
without limitation, any notices by Landlord to the holder of any Mortgage as permitted under Section 8.2 above) without the express prior
written consent of such Foreclosure Purchaser, (iii) be obligated or liable to Tenant with respect to any act or failure to act on the
part of Landlord occurring prior to the transfer of title to the Foreclosure Purchaser, or (iv) be obligated or liable to Tenant for failure
to complete any proposed construction regarding the Leased Property. Except to the extent permitted in accordance with the preceding sentence,
Tenant shall have no right to assert or claim any of the foregoing or any damages arising therefrom against the Foreclosure Purchaser,
whether as an offset or defense or otherwise.

 

(c)              
After notice is given to Tenant by the Foreclosure Purchaser that the rents under this Lease should be paid to the Foreclosure
Purchaser, Tenant shall pay to the Foreclosure Purchaser, or in accordance with the directions of the Foreclosure Purchaser, all rents
and other monies due and to become due to Landlord under this Lease, and Landlord hereby expressly authorizes Tenant to make such payments
to the Foreclosure Purchaser and hereby releases and discharges Tenant of and from any liability to Landlord on account of any such payments.

 

(d)              
Tenant agrees to provide to the Foreclosure Purchaser a copy of any notice, demand or request provided to Landlord under this Lease
at the address of the Foreclosure Purchaser provided to Tenant by the Foreclosure Purchaser.

 

(e)              
If the terms of this Lease conflict with the terms of any Mortgage regarding the matters set forth in this Section 11.1, the terms
of the Mortgage shall control.

 

ARTICLE
12

MISCELLANEOUS

 

12.1         
Quiet Enjoyment. Landlord covenants and agrees that Tenant, upon compliance with the obligations of Tenant hereunder, and
subject to the provisions hereof, shall lawfully and quietly enjoy the Leased Property and Tenant’s rights hereunder during the
Term without hindrance by Landlord or any Persons by, through and under Landlord.

 

12.2         
Landlord’s Right of Entry. Landlord, its employees and agents, shall have the right to enter the Hotel at reasonable
times and on reasonable notice to Tenant to examine the condition and use thereof, exhibit the same, and otherwise perform its obligations
and exercise its rights hereunder. Landlord will endeavor to examine the Hotel or otherwise perform its obligations and exercise its rights
with minimum disruption to the operation of the Hotel.

 

    27

     

    

 

12.3         
Estoppel Certificates. Tenant and Landlord, from time to time within ten (10) business days following written request by
the other party or by the holder of any Mortgage of the Leased Property, shall execute, acknowledge and deliver to the requesting party
or its designee a written statement in form and substance reasonably requested by such requesting party certifying to such requesting
party or to such other Person as such requesting party may designate (i) the commencement and expiration dates of the Term, (ii) that
this Lease is unmodified and in full force and effect or, if there have been modifications, that the same is in full force and effect
as modified and setting forth the modifications, (iii) the dates to which Rent and other payments due under this Lease from Tenant have
been paid in advance, if any, and (iv) whether or not, to the best knowledge of the party signing such certificate, the requesting party
is in default in the performance of any term, covenant or condition contained in this Lease or any Mortgage and, if so, specifying each
such default of which the signing party may have knowledge. Such certificate shall also set forth such other information regarding this
Lease as may reasonably be requested or, with respect to a certificate delivered by Tenant, regarding the Management Agreement as may
be reasonably requested, including, without limitation, (A) that the Management Agreement is in full force and effect, and (B) that there
is no material uncured default, breach or violation existing thereunder by either party thereto and that, to Tenant’s knowledge,
no event has occurred (other than payments due but not yet delinquent) that, with the passage of time or the giving of notice, or both,
would constitute a material default, breach or violation by either party thereunder.

 

12.4         
Delivery of Notices.

 

(a)              
If Tenant shall give Landlord any notice of a default or breach by Landlord, Tenant shall simultaneously deliver a written notice
of such breach or default to the holder of all Mortgages.

 

(b)              
If Landlord shall receive any written notice from a Governmental Authority, a mortgagee under any Mortgage or any party commencing
a litigation against Landlord or the Leased Property, Landlord shall, upon receipt of such notice, deliver a copy thereof to Tenant.

 

12.5         
Notices. All notices, demands, consents, approvals, requests or other communications that either Landlord or Tenant may
desire or be required to give hereunder (collectively, “Notices”) shall be in writing and shall be given by personal
delivery or facsimile or United States registered or certified mail (postage prepaid, return receipt requested) addressed as hereinafter
provided, provided, however, that any Notice given by facsimile shall also be given by personal delivery or United States registered or
certified mail. Except as otherwise specified herein, the time period in which a response to any notice or other communication must be
made, if any, shall commence to run on the earliest to occur of (a) if by personal delivery, the date of receipt, or attempted delivery,
if such communication is refused; (b) if given by facsimile, the date on which such facsimile is transmitted and confirmation of delivery
thereof is received; and (c) if sent by mail (as aforesaid), the date of receipt or attempted delivery, if such mailing is refused. Until
further notice, notices and other communications under this Agreement shall be addressed to the parties listed below as follows:

 

(a)              
Each notice to Tenant shall be delivered to Tenant at the following addresses:

 

PHR CHERRY OPCO SUB, LLC

c/o Procaccianti Companies

1140 Reservoir Avenue

Cranston, Rhode Island 02920-6320

Attention: Ron M. Hadar, General Counsel

 

    28

     

    

 

and

 

Morris, Manning & Martin, LLP

1600 Atlanta Financial Center

3343 Peachtree Road, N.E.

Atlanta, Georgia 30326

Attention: Catherine E. Morgen, Esq.

Facsimile: (404) 365-9532

 

 

(b)              
Each notice to Landlord shall be delivered to Landlord at the following address:

 

PHR Cherry Propco, LLC c/o Procaccianti
Companies

1140 Reservoir Avenue

Cranston, Rhode Island 02920-6320

Attention: Ron M. Hadar, General Counsel

 

and

 

Morris, Manning & Martin, LLP

1600 Atlanta Financial Center

3343 Peachtree Road, N.E.

Atlanta, Georgia 30326

Attention: Catherine Morgen, Esq.

Facsimile: (404) 365-9532

 

Either party shall have the right from time to
time during the term of this Lease to change the address thereof and to specify as the address thereof any other address within the United
States of America.

 

12.6         
No Broker. Tenant and Landlord each represents and warrants to the other that no broker or finder was engaged in connection
with the execution of this Lease and each agrees to indemnify and hold the other harmless of and from and against all liabilities, costs
and expenses (including reasonable attorneys’ fees) arising from any claim by any such broker or finder arising out of the acts
of the indemnifying party.

 

12.7         
Quarterly Meetings. Landlord covenants to meet with Tenant not less frequently than quarterly (and otherwise, as may be
reasonably requested by Tenant) so as to review and consult with Tenant with respect to any and all matters concerning the Leased Property
that Tenant may desire to discuss, including, without limitation, the condition of the Leased Property.

 

    29

     

    

 

12.8         
No Joint Venture. Nothing contained in this Lease shall be construed to make Landlord and Tenant partners or joint venturers
or to render any of said parties liable for the debts or obligations of the others or to create any agency relationship between the parties.

 

12.9         
Partial Invalidity. If any provisions of this Lease or the application thereof to any Person or circumstances shall to any
extent be invalid or unenforceable, the remainder of this Lease, or the application of such provision to Persons or circumstances other
than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid
and be enforced to the fullest extent permitted by law.

 

12.10     
Third Parties. The Lease is made for the exclusive benefit of the parties hereto and their successors and assigns herein
permitted and not for any third party other than (only to the extent specifically provided in Section 11.1, 12.3 and 12.4) the holder
of any Mortgage and any Foreclosure Purchaser, and, except to such extent, nothing in this Lease, expressed or implied, is intended to
confer upon any Person, other than the parties hereto and their respective successors and permitted assigns, any rights or remedies under
or by this Lease.

 

12.11     
Waivers and Enforcement. No delay or omission by either of the parties hereto to exercise any right or power accruing upon
any non-compliance or failure of performance by the other party under the provisions of this Lease shall impair any such right or power
or be construed to be a waiver thereof. The failure herein to specify a right, power or remedy accruing upon any non-compliance or failure
of performance by either of the parties hereto shall not be construed to be a waiver thereof so as to impair the right of the party thereby
aggrieved to all remedies then available to it at law or in equity by reason of such noncompliance or failure of performance. A waiver
by either of the parties hereto of performance of any of the covenants, conditions or agreements hereof to be performed by the other party
hereto shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant condition or agreement herein contained.

 

12.12     
Modification. This Lease contains the entire agreement between the parties hereto with respect to the subject matter hereof
and supersedes all other agreements, oral or written, between the parties on or prior to the date hereof with respect to such subject
matter. None of the covenants, terms or conditions of this Lease to be kept and performed by either party to this Lease shall in any manner
be waived, modified, changed or abandoned except by written instrument duly signed, acknowledged and delivered by the parties to this
Lease. Any amendment to this Lease that is not ministerial in nature shall require the prior written consent of the holder of any Mortgage
to the extent required in such Mortgage.

 

12.13     
Non-Recourse Liability. Landlord and each of its officers, directors, affiliates, shareholders, members and constituent
partners, as applicable, shall in no event or at any time be personally liable for the payment or performance of any obligation required
or permitted of Landlord under this Lease or under any document executed in connection herewith. In the event of any actual or alleged
failure, breach or default by Landlord under this Lease or any such document, the sole recourse of Tenant shall be against the interest
of Landlord in the Leased Property. No attachment, execution, writ, or other process shall be sought or obtained, and no judicial proceeding
shall be initiated by or on behalf of Tenant, against Landlord (or any of Landlord’s officers, directors, affiliates or constituent
partners or shareholders) personally or Landlord’s assets as a result of any such failure, breach, or default. In no event shall
Landlord have any liability for any loss of profits, business interruptions and/or consequential damages of Tenant.

 

    30

     

    

 

12.14     
Captions. The Article and Section headings or captions are for convenience and reference only and in no way define, limit
or describe the scope or intent of this Lease, nor in any way affect this Lease.

 

12.15     
Time of Essence. Time is of the essence as to the covenants in this Lease.

 

12.16     
Successors and Assigns. All the covenants, agreements, conditions and undertakings in this Lease shall extend and inure
to and be binding upon the successors and permitted assigns of each of the parties hereto, the same as if they were in every case named
and expressed.

 

12.17     
No Recordation. Neither party shall record this Lease or any memorandum thereof.

 

12.18     
NameLandlord shall have the right to change the name of the Hotel at any time and from time to time and the right to place
any signs in or on the Hotel from time to time indicating the name of the Hotel as designated by Landlord. Landlord and Tenant shall at
all times refer to the Hotel by such name as is designated by Landlord from time to time. Tenant shall have no right to place any signs
on the exterior of the Hotel without the prior written consent of Landlord.

 

12.19     
Survival. All of the provisions of this Lease shall survive the termination of this Lease, and, except as otherwise specifically
provided herein, neither party shall be relieved from any liability hereunder accruing prior to the Expiration Date.

 

12.20     
Confidentiality. Tenant and Landlord each agree that it and its Affiliates will keep all non-public information obtained
by them with respect to the business and business terms of the parties confidential and will not provide such information to any third
parties without the prior written consent of the other party, unless required by court order or Law, except to their employees, agents,
contractors, lenders, professionals and consultants on a need-to-know basis. Notwithstanding any terms or conditions in this Lease or
any related agreement to the contrary, but subject to restrictions reasonably necessary to comply with federal or state securities laws,
any Person may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transaction
and all materials of any kind (including opinions or other tax analyses) that are provided relating to such tax treatment and tax structure.
For the avoidance of doubt, this authorization is not intended to permit disclosure of the names of, or other identifying information
regarding, the participants in the transaction, or of any information of the portion of any materials not relevant to the tax treatment
or tax structure of the transaction.

 

12.21     
Conveyance by Landlord. If Landlord or any successor owner of all or any portion of the Leased Property conveys all or any
portion of the Leased Property in accordance with the terms hereof, other than as security for debt, if the grantee or transferee of such
of the Leased Property expressly assumes and agrees to perform, by written instrument in form approved by Tenant, which approval shall
not unreasonably be withheld, all obligations of Landlord hereunder arising or accruing from and after the date of such conveyance or
transfer, Landlord or such successor owner, as the case may be, shall thereupon be released from all liabilities and obligations hereunder
arising or accruing from and after the date of such conveyance or other transfer, all such future liabilities and obligations shall thereupon
be binding upon the new owner, and this Lease shall continue in full force and effect.

 

    31

     

    

 

12.22     
Governing Law. This Lease shall be construed and enforced in accordance with the Laws of the State of Michigan.

 

12.23     
Counterparts. This Lease may be executed in several counterparts, each of which shall be deemed an original, and all such
counterparts shall together constitute one and the same instrument. Executed counterparts of thus Lease delivered by facsimile transmission
to the other party shall be binding on the party delivering such executed counterpart.

 

[the remainder of this page is intentionally blank]

 

    32

     

    

 

IN WITNESS WHEREOF, Landlord and Tenant have caused
this Lease to be executed on the day, month and year first above dated.

 

	 	LANDLORD:
	 	 	 
	 	PHR CHERRY PROPCO, LLC, a Michigan limited

               liability company
	 	 
	 	 	 
		By:	/s/
                                            James A. Procaccianti
	 	Name:	James A. Procaccianti
	 	Title:	Authorized Signer

 

	 	TENANT:
	 	 	 
	 	PHR CHERRY OPCO SUB, LLC, a Michigan limited

               liability company
	 	 
	 	 	 
		By:	/s/
                                            James A. Procaccianti
	 	Name:	James A. Procaccianti
	 	Title:	Authorized Signer

 

[Signature Page to Hotel Lease – Cherry Tree Inn, Traverse City, MI]

 

     

     

    

 

SCHEDULE 3.1

 

Each of Fixed Rent”
and “Percentage Rent” mean amounts per annum equal such amounts describe in that certain Transfer Study Report prepared by
EY and effective July 30, 2021.

 

     

     

    

 

Exhibit A

 

Legal Description

 

Unit Nos. 1 through 77, Cherry Tree Condominium,
according to the Master Deed recorded in Liber

2006C, Page 00067, and Amendments thereto,
First Amendment to Master Deed recorded in Instrument No. 2008C-00015 and designated as Grand Traverse County Condominium Subdivision
Plan No. 317, together with rights in general common elements and limited common elements as set forth in above Master Deeds and as described,
in ACT 59 of Public Acts of 1978, and amendments thereto.

 

Excepting:

An undivided 1/4 interest in Unit
2 Cherry Tree Condominium being Fractional ID "A" and "E", An undivided 1/4 interest in Unit 2 Cherry Tree Condominium
being Fractional ID "C and "G"", An undivided 1/4 interest in Unit 3 Cherry Tree Condominium being Fractional ID "A"
and "E", An undivided 1/4 interest in Unit 3 Cherry Tree Condominium being Fractional ID "D" and "H", An
undivided 1/4 interest in Unit 4 Cherry Tree Condominium being Fractional ID "D" and "H", An undivided 1/4 interest
in Unit 9 Cherry Tree Condominium being Fractional ID "D" and "H", An undivided 1/4 interest in Unit 23 Cherry Tree
Condominium being Fractional ID "D" and "H", An undivided 1/4 interest in Unit 24 Cherry Tree Condominium being Fractional
ID "D" and "H", An undivided 1/4 interest in Unit 37 Cherry Tree Condominium being Fractional ID "A" and
"E", An undivided 1/4 interest in Unit 45 Cherry Tree Condominium being Fractional ID "A" and "E",

An undivided 1/4 interest in Unit 72 Cherry
Tree Condominium being Fractional ID "B" and "F".

 

     2

     

    

 

Exhibit B

The Collateral

 

1.       Fixtures
and Personal Property. All goods, inventory, machinery, equipment, fixtures (including, without limitation, all heating, air conditioning,
plumbing, lighting, communications and elevator fixtures), furnishing, building supplies and materials, and all other personal property
of every kind and nature whatsoever owned by Tenant (or in which Tenant has or hereafter acquires an interest) and now or hereafter located
upon, or appurtenant to, the Property or used or useable in the present or future operation and occupancy of the Property, along with
all accessions, replacements or substitutions of all or any portion thereof including, but not limited to, all items of personal property
located within or adjacent to the Hotel and included within the definition of “Property and Equipment” and “Inventories”
under the Uniform System of Accounts for the Lodging Industry as published by the American Hotel Association of the United States and
Canada, including but not limited to, beds, bureaus, chiffoniers, chests, chairs, desks, lamps, mirrors, bookcases, tables, rugs, carpeting,
drapes, draperies, curtains, shades, Venetian blinds, screens, paintings, hangings, pictures, divans, couches, luggage carts, luggage
racks, stools, sofas, chinaware, linens, pillows, blankets, glassware, tableware, uniforms, guest ledgers, foodcarts, cookware, dry cleaning
facilities, dining room wagons, tools, keys or other entry systems, bars, bar fixtures, and other drink dispensers, icemakers, radios,
televisions sets, intercom and paging equipment, electric and electronic equipment, dictating equipment, private telephone systems, medical
equipment, potted plants, heating, lighting and plumbing equipment, fire prevention and extinguishing apparatus, escalators, fittings,
plants, apparatus, stoves, ranges, refrigerators, laundry machines, tools, machinery, engines, dynamos, motors, boilers, incinerators,
switchboards, conduits, compressors, vacuum cleaning systems, floor cleaning, waxing and polishing equipment, call systems, brackets,
electrical signs, bulbs, bells, ash and disposals, washers and dryers and other customary hotel equipment, and computer software and hardware,
but excluding, in all events, alcoholic beverages inventory;

 

     3

     

    

 

2.       Leases
and Rents. All income, rents, room rates, issues, profits, revenues, deposits, accounts and other benefits from the operation of the
Hotel, including, without limitation, all revenues, cash and credit card receipts collected from guest rooms, restaurants, bars, mini-bars,
meeting rooms, banquet rooms and recreational facilities and otherwise, all receivables, customer obligations, installment payment obligations
and other obligations now existing or hereafter arising or created out of sale, lease, sublease, license, concession, or other grant of
the right of the possession, use or occupancy of all or any portion of the Land, the Hotel or personalty located therein, or rendering
of services by Tenant or any operator or manager of the Hotel or the commercial space located therein or acquired from others including,
without limitation, from the rental of any office space, retail space, commercial space, guest room or other space, halls, stores or offices,
including any deposits securing reservations of such space, exhibit or sales space of every kind, license, lease, sublease and concession
fees and rentals, health club membership fees, food and beverage wholesale and retail sales, service charges, vending machine sales, all
deposits or other security now or hereafter made with or given to any utility company by Tenant with respect to the Property, and all
proceeds, if any, from business interruption or other loss of income insurance relating to the use, enjoyment or occupancy of the Land
and/or the Hotel whether paid or accruing before or after the filing by or against Tenant of any petition for relief under any present
or future state or federal law regarding bankruptcy (each a “Bankruptcy Code”), reorganization or other relief to debtors
and all proceeds from the sale or other disposition of the Tenant Leases (hereinafter defined). All leases, subleases, licenses and other
agreements granting others the right to use or occupy all or any part of the Property together with all restatements, renewals, extensions,
amendments and supplements thereto, (collectively, the “Tenant Leases”), now existing or hereafter entered into, and
whether entered before or after the filing by or against Tenant of any petition for relief under a Bankruptcy Code, and all of Tenant’s
right, title and interest in the Tenant Leases, including, without limitation (i) all guarantees, letters of credit and any other credit
support given by any tenant or guarantor in connection therewith (collectively, the “Tenant Lease Guaranties”), (ii)
all cash, notes, or security deposited thereunder to secure the performance by the tenants of their obligations thereunder (collectively,
the “Tenant Security Deposits”), (iii) all claims and rights to the payment of damages and other claims arising from
any rejection by a tenant of its Tenant Lease under a Bankruptcy Code (“Bankruptcy Claims”), (iv) all of the landlord’s
rights in casualty or condemnation proceeds of a tenant in respect of the leased premises (collectively, the “Tenant Claims”),
(v) all rents, ground rents, additional rents, revenues, termination and similar payments, issues and profits (including all oil and gas
or other mineral royalties and bonuses) from the Property (collectively with the Tenant Lease Guaranties, Tenant Security Deposits, Bankruptcy
Claims and Tenant Claims, the “Rents”), whether paid or accruing before or after the filing by or against Tenant of
any petition for relief under a Bankruptcy Code, (vi) all proceeds or streams of payment from the sale or other disposition of the
Tenant Leases or disposition of any Rents, and (vii) the right to receive and apply the Rents to the payment of Tenant’s obligations
under this Lease and to do all other things which Tenant or a lessor is or may become entitled to do under the Tenant Leases or with respect
to the Rents;

 

3.       Condemnation
Awards. All awards or payments, including interest thereon, which may heretofore and hereafter be made with respect to the Property,
whether from the exercise of the right of eminent domain (including, without limitation, any transfer made in lieu of or in anticipation
of the exercise of the right), or for a change of grade, or for any other injury to or decrease in the value of the Property;

 

4.       Insurance
Proceeds. All proceeds of, and any unearned premiums on, any insurance policies covering the Property, including, without limitation,
the exclusive right to receive and apply the proceeds of any claim awards, judgments, or settlements made in lieu thereof, for damage
to the Property;

 

5.       Tax
Certiorari. All refunds, rebates or credits in connection with a reduction in any taxes, including, without limitation, rebates as
a result of tax certiorari or any other applications or proceedings for reduction;

 

6.       Agreements.
All agreements (including, without limitation, interest rate cap agreements, swaps or other interest hedging agreements), contracts (including,
without limitation, the Management Agreement and construction, architectural, service, supply and maintenance contracts), registrations,
permits, licenses (including, without limitation, liquor licenses, if any, to the fullest extent assignable by Tenant), franchise, plans,
specifications and other documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the
use, occupation, construction, management or operation of the Property, or respecting any business or activity conducted from the Property,
and all right, title and interest of Tenant therein and thereunder, including, without limitation, the right, while an Event of Default
remains uncured, to receive and collect any sums payable to Tenant thereunder;

 

     4

     

    

 

7.       Intangibles.
All accounts, escrows, chattel paper, claims, deposits, trade names, trademarks, service marks, logos, copyrights, goodwill, licenses,
permits, plans and specifications, environmental audits, engineering reports, warranties, guaranties, books and records and all other
general intangibles and payment intangibles relating to or used in connection with the operation of the Property;

 

8.       Accounts.
All reserves, escrows and deposit accounts maintained by Tenant with respect to the Property, together with all cash, checks, drafts,
certificates, accounts receivable, documents, letter of credit rights, commercial tort claims, securities, investment property, financial
assets, instruments and other property from time to time held therein, and all proceeds, products, distributions, dividends or substitutions
thereon or thereof, and all accounts (including, without limitation, any deposit accounts), impounds, contract rights, book debts, letters
of credit, letter of credit rights, supporting obligations, drafts and notes arising from the operation of a hotel at the Property or
arising from the sale, lease or exchange of goods or other property and/or the performance of services, and Tenant’s rights to payment
from any consumer credit/charge card organization or entities which sponsor and administer such cards, including, without limitation,
the American Express card, the Visa card, the Discover card, and the MasterCard;

 

9.       Rights
to Conduct Legal Actions. The right, in the name and on behalf of Tenant, to commence any action or proceeding to protect the interest
of Landlord in the Property and to appear in and defend any action or proceeding brought with respect to the Property; and

 

10.       Proceeds.
All proceeds and profits arising from the conversion, voluntary or involuntary, of any of the foregoing into cash (whether made in one
payment or a stream of payments) and any liquidation claims applicable thereto.

 

     5Exhibit 10.2

 

PROMISSORY NOTE

 

Amount: $4,000,000

 

	Date: July 30, 2021	 	Due: As set forth below

 

FOR VALUE RECEIVED,
PHR CHERRY PROPCO, LLC, an Michigan limited liability company (“Borrower”) promises to pay to the order of EMERALD
CAPITAL LENDING III, LLC, a Delaware limited liability company (“Lender”), the sum of Four Million Dollars ($4,000,000.00)
and such other amounts as Lender has advanced to Borrower, together with interest on the unpaid balance from time to time outstanding
at the rate of 9.00% per annum. During the period of any default, the rate of interest shall be increased to 15.000% per annum.

 

1.            
PAYMENTS AND MATURITY.

 

(a)              
Commitment Fee. Borrower shall pay to Lender an origination fee in the amount of $20,000.00, which amounts shall be paid prior
to or upon delivery of this Promissory Note (this “Promissory Note”).

 

(b)              
Interest shall be payable on the outstanding principal balance of this Promissory Note and any and all other amounts owing by Borrower
to Lender under this Promissory Note at the rate of Nine (9%) per annum, compounded monthly, if not paid. Such interest shall be calculated
on the basis of a three hundred sixty (360)-day year for the actual number of days elapsed.

 

(c)              
Payments of Interest shall be payable in arrears on the 1st day of the day of the month commencing on September 1, 2021. Payments
shall be made to Lender at 1140 Reservoir Ave., Cranston, RI 02920-6320 or as otherwise directed by Lender:

 

(d)              
All principal and unpaid interest under this Promissory Note shall be repaid on the earlier of (A) six (6) months following date
hereof or (B) the date of acceleration as set forth in Section 2 below (“Maturity Date”) or the sooner repayment of this Promissory
Note. Any principal and accrued interest not previously paid shall be paid in full on by Borrower on the Maturity Date.

 

2.            
DEFAULT. There shall exist a default under this Promissory Note in the event of the failure to make any payment hereunder
within five (5) days after when due and after written notice from Lender to Borrower. At any time after the occurrence and during the
continuance of the foregoing event of default or upon the occurrence and during the continuance of any Event of Default by the Borrower
under the Mortgage, as defined therein, entire principal of this Promissory Note remaining unpaid at that time, together with the accrued
interest thereon, shall, at the election of the holder hereof and without notice of such election and without demand or presentment, become
immediately due and payable at the aforesaid place of payment, anything contained herein or any other agreement securing or evidencing
the indebtedness hereunder to the contrary notwithstanding, and all costs and expenses of collection, including a reasonable attorney
fee actually incurred, shall be added to and become part of the total indebtedness. The holder hereof may, at any time upon or after acceleration
or maturity of this Promissory Note, hold and apply its own indebtedness or liability to the undersigned in payment of the indebtedness
due hereunder.

 

     1

     

    

 

3.           
SECURITY. This Promissory Note is secured by that certain Mortgage, Assignment of Rents and Leases, Security Agreement
and Fixture Filing dated as of even date herewith, executed by Borrower for the benefit of Lender (the “Mortgage”), creating
a lien on certain real property (the “Premises”) legally described in Exhibit A attached to the Mortgage; statement of the
rights, remedies, and security afforded thereby, and all matters therein contained.

 

4.            
ACCELERATION. In the event of default, the failure of Lender to promptly exercise its right to declare the indebtedness
remaining unpaid hereunder to be immediately due and payable shall not constitute a waiver of that right while the default continues,
nor a waiver of that right in connection with any future default on the part of the undersigned. Acceptance of partial payments shall
not be deemed to constitute an accord and satisfaction, a waiver or a compromise of any sum or obligation owing or default existing hereunder,
and shall instead be deemed a payment on account.

 

5.           
WAIVER. The makers, endorsers, sureties and guarantors hereof and all other parties who may become liable for all
or any part of this obligation, severally waive presentment for payment, protest, notice of protest and of non-payment and diligence in
the enforcement or collection hereof, and hereby expressly consent to any number of renewals or extensions of the time of payment thereof.
Any renewals or extensions may be made without notice to any of those parties and without affecting their liability, and they shall not
be released from liability on this Promissory Note by reason of any forbearance or extension of time granted to, or the failure of the
holder to demand strict performance by, the undersigned or any subsequent owner or owners of the property mortgaged, assigned or pledged
as security for this obligation, with or without notice to or the consent of any of those parties.

 

6.            
PREPAYMENT. This Promissory Note may be prepaid, in whole or in part, without penalty. Prepayments shall be applied
first upon accrued but unpaid interest, and then in reduction of the outstanding principal balance. No prepayment shall prepay, postpone
or defer any regular installment due hereunder, which shall continue to be made in all events.

 

7.           
USURY. It is not intended by this Promissory Note to impose upon the maker any obligation to pay interest in excess
of the maximum rate of interest permitted by law in the State of Michigan by written stipulation with the undersigned, taking into consideration
all possible exceptions to any restrictions thereon. Any interest determined to exceed that maximum rate of interest shall automatically
abate to the extent of the excess. Moreover, if the holder hereof should in good faith and by reference to the provisions of law or an
adjudication determine that the maximum permissible rate of interest has been exceeded, the holder shall thereupon have the option of
declaring the unpaid balance of this Promissory Note to be due and payable in full.

 

     2

     

    

 

8.            
JOINT AND SEVERAL. If more than one person or party shall now or hereafter join in the execution of this Promissory
Note, the liability of all such persons and parties shall be both joint and several. In seeking payment of the Promissory Note, the holder
may proceed against or otherwise deal with any individual maker independently and separately from any other maker.

 

9.            
GOVERNING LAW. This Promissory Note and the liability of all parties hereunder shall be governed by the laws of the
State of Michigan, except with respect to paragraph 7 above, which shall be governed by the laws of The Commonwealth of Massachusetts,
without regard to its conflicts of law principles, where this Promissory Note has been delivered for value.

 

[Balance of Page
Intentionally Blank; Signatures on Following Page]

 

     3

     

    

 

IN WITNESS WHEREOF, the Borrower has executed and
delivered this Promissory Note as of the date first referenced above.

 

		BORROWER:
	 	PHR CHERRY PROPCO, LLC
	 	 	            
	 	By: 	Procaccianti Hotel REIT, L.P., its Member
	 	 	By:  Procaccianti Hotel REIT, Inc., its General Partner
	 	 	 
		By:	/s/ James A. Procaccianti
	 	 	Name: James A. Procaccianti
	 	 	Title: President

 

[Signature Page to Promissory Note]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00331-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00331-of-00352.parquet"}]]