Document:

exv10w3

Exhibit 10.3

FORM OF HOTEL MANAGEMENT AGREEMENT

     THIS AMENDED AND RESTATED HOTEL MANAGEMENT AGREEMENT (this “Agreement”) is made as of the ___
day of ____________, 2010, between the lessee entities set forth on Exhibit A attached
hereto and made a part hereof (collectively, “Owner”) and INTERSTATE MANAGEMENT COMPANY, LLC
(“Operator”), a Delaware limited liability company.

RECITALS

     A. Owner and its affiliates lease from Summit Hotel OP, LP, a Delaware limited partnership
(the “OP”), and its affiliates described on Exhibit A (each a “Land Holder” and
collectively, the “Land Holders”, whether held as a Land Holder or as a ground lessee) the hotel
properties described in Exhibit A (each a “Hotel” and collectively, the “Hotels”) pursuant
to one or more Lease Agreements (each, a “Lease”). Summit Hotel OP is substantially owned by
Summit Hotel Properties, Inc., a Maryland corporation (the “REIT”).

     B. The Hotels, together with certain other hotels and lodging assets owned by Land Holders and
leased by Owner, comprise a portfolio of hotels, which prior to the date hereof were managed by The
Summit Group Inc. (“Prior Manager”) pursuant to the terms of five (5) certain management agreements
of varying dates entered into between 2003 and 2007 (as amended, the “Existing Management
Agreements”).

     C. Owner desires Operator to assume management of the Hotels.

     D. Pursuant to an Assignment and Assumption Agreement of even date herewith (the
“Assignment”), Prior Manager has assigned all of its right, title and interest in the Existing
Management Agreements to Operator, and Operator has assumed the obligations of Prior Manager under
the Existing Management Agreements to the extent arising on or after the date of the Assignment, on
the terms and conditions set forth in the Assignment.

     E. Owner and Operator desire to amend, restate and replace the Existing Management Agreements
with this Agreement, and evidence their agreement with respect to the operation, direction,
management, and supervision of the Hotels individually as more particularly set forth below.

     NOW, THEREFORE, for and in consideration of the premises, and other good and valuable
consideration, Owner and Operator agree as follows:

ARTICLE I

THE HOTEL

1.1. Owner and Operator acknowledge that each Hotel consists of and contains:

A. A building (the “Building”) with guest rooms and suites, restaurant(s), lounge(s), and

 

 

conference and meeting rooms together with the parcel of land on which the Building is located and
any outdoor parking areas or other facilities located on such land, all as more fully described on
Exhibit B attached hereto and made a part hereof;

B. Mechanical systems and built-in installations (the “Installations”) in each Building including,
but not limited to, heating, ventilation, air conditioning, electrical and plumbing systems,
elevators and escalators, and built-in laundry, refrigeration and kitchen equipment;

C. Furniture, furnishings, wall coverings, floor coverings, window treatments, fixtures and hotel
equipment and vehicles (the “FF&E”);

D. Chinaware, glassware, silverware, linens, and other items of a similar nature (the “Operating
Equipment”);

E. Stock and inventories of paper supplies, cleaning materials and similar consumable items and
food and beverage (the “Operating Supplies”); and

F. Any whirlpool, fitness center, spa, on-site parking, pool , beach, club facilities, retail
facilities, restaurants and related amenities or facilities for each Hotel.

ARTICLE II

OPERATING TERM

2.1. This Agreement shall have a term (the “Operating Term”) commencing on the date hereof (the
“Commencement Date”) and expiring on the tenth (10th) anniversary of the Commencement Date (the
“Initial Term”), unless sooner terminated in accordance with the provisions of this Agreement or
unless extended as provided by the terms of this Agreement or as otherwise provided by the written
agreement of Owner and Operator. This Agreement shall automatically renew for additional terms of
thirty (30) days each (each, a “Renewal Term”) unless either party gives the other party written
notice of termination at least sixty (60) days prior to the end of the Initial Term or thirty (30)
days prior to the end of the then-current Renewal Term. Owner and Operator, by mutual written
agreement, may renew this Agreement for a longer term and, in such case, such longer term shall be
a Renewal Term. Any and all reference contained herein to Term shall be deemed to include the
Operating Term, the Initial Term and the Renewal Term(s).

ARTICLE III

APPOINTMENT AND ENGAGEMENT OF OPERATOR

3.1. Owner hereby engages Operator as the exclusive operator of the Hotels during the Term and
Operator hereby accepts such engagement.

3.2. Subject to the terms of this Agreement and the applicable Budgets, Operator shall have control
and discretion in all aspects of the operation, direction, management and supervision of the
Hotels. Such control and discretion of Operator shall include, without limitation, the
determination

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of credit policies (including entering into agreements with credit card
organizations), terms of admittance, charges for rooms, food and beverage policies, employee wage,
benefits and severance policies, entertainment and amusement policies, leasing, licensing and
granting of concessions for commercial space at the Hotels, and all phases of advertising,
promotion and publicity relating to the Hotels. Notwithstanding the foregoing, Operator
acknowledges that the contracts with credit card vendors listed on Exhibit C attached
hereto are required to remain in effect following the Commencement Date pursuant to the terms of
the such contracts, and that Operator will not terminate such agreements (other than as permitted
under the terms of such agreements) without Owner’s prior written consent.

3.3. Operator shall operate, manage and maintain each Hotel and all of its facilities and
activities in a diligent and careful manner in accordance with the following standards (the “Hotel
Standard”) in order to maintain the condition and character of such Hotel and with the primary goal
of maximizing the Gross Operating Profit (as defined herein) of such Hotel:

     (a) in a manner that is equal to or better than the operation of similar hotels in the area of
such Hotel and other similar hotels operated by Operator, to the extent consistent with the Budgets
and such Hotel’s facilities; and

     (b) in accordance with the standards imposed by the hotel franchise agreement, if any,
applicable to such Hotel (a “Franchise Agreement”).

3.4. Operator shall make its senior executives available to meet with Owner at least once each
quarter and, in addition, at Owner’s reasonable request, consult with and advise Owner concerning
all policies and procedures affecting all phases of the conduct of business at the Hotels.
Operator shall in all events consult with Owner before implementing any material changes in
policies and procedures relating to the Hotels. Operator shall make the Key Hotel Personnel (as
defined in Section 4.7) for each Hotel available through the General Manager of such Hotel to meet
with Owner at least once per month and at additional times (including by teleconference) from time
to time upon Owner’s reasonable request, to review the operations of the Hotel and current matters
of import, and in each instance, Owner shall give Operator adequate advance notice, in no event to
be less than three (3) days advance notice. Operator shall in all events meet with Owner before
implementing any material changes in policies and procedures relating to any Hotel. Owner shall
not contact any other Hotel Employee regarding the operations of the Hotels.

3.5. During the Term, Operator, as agent and for the account of Owner, shall in accordance with the
Budgets (as defined in Section 8.4) and the other applicable provisions of this Agreement, and only
to the extent Owner has provided sufficient funds therefor, either through Hotels operations or
directly from Owner:

	 	A.	 	Recruit, train, direct, supervise, employ and dismiss on-site staff (the “Hotel
Employees”) for the operation of the Hotels, and in connection therewith establish and
maintain an affirmative action plan for the Hotels; provided, however, no employment
agreement for any Hotel Employee shall contain an automatic renewal provision without
the prior written consent of the Owner specifically referring to
such renewal provision;

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	 	B.	 	Develop and implement advertising, marketing, promotion, publicity and other
similar programs for the Hotels;
	 
	 	C.	 	(i) Negotiate and enter into leases, licenses and concession agreements for
stores, office space and lobby space at the Hotels (including without limitation, car
rental counters and gift shops) and commercial space, if any, that is adjacent to or
otherwise part of the Hotels (including without limitation, rooftop antennas)
(collectively, the “Leases”), collect the rent under such Leases and otherwise
administer the Leases and (ii) negotiate and enter into contracts for the provision of
services to the Hotels; provided that, Operator shall not, without Owner’s consent,
enter into any such Leases or contracts for terms in excess of one (1) year, unless
such Lease or contract may be terminated without cause and without payment of any
penalty on no less than sixty (60) days’ notice;
	 
	 	D.	 	Upon receipt of all necessary information from Owner, apply for, process and
take all necessary steps to procure and keep in effect in Owner’s name (or, if required
by the licensing authority, in Operator’s name or both) all licenses and permits and
the sales tax registration(s) required for the operation of the Hotels;
	 
	 	E.	 	Pursuant to a separate written agreement on terms and conditions set forth
therein, Operator’s affiliate will purchase all FF&E, Operating Equipment and Operating
Supplies necessary for the operation of the Hotels; provided, however, Owner may
purchase any of the FF&E, Operating Equipment or Operating Supplies used in connection
with the operation of the Hotels, as an operating or capital expense, as appropriate,
of the Hotels, in which case Owner will provide to Operator sufficient information for
Operator to maintain accurate books and records regarding sales tax accruals and pay
such accruals out of Total Revenues from the Hotel. At the request of Owner, Operator
shall put out for competitive bid the purchase of FF&E, Operating Equipment or
Operating Supplies used in connection with the operation of the Hotels as contemplated
in this Section E;
	 
	 	F.	 	Provide routine accounting and purchasing services as required in the ordinary
course of business;
	 
	 	G.	 	Comply with all applicable laws, ordinances, regulations, rulings and orders of
governmental authorities affecting or issued in connection with the Hotel, as well as
with orders and requirements of any board of fire underwriters or any other body which
may exercise similar functions, so long as Owner promptly delivers to Operator any
notice of violation thereof received by Owner;
	 
	 	H.	 	Subject to the Budgets, cause all needed repairs and maintenance to the Hotel
of which Operator is aware to be made, and unless otherwise set forth in the Budgets,
any expense for repairs and maintenance that exceeds Five Thousand Dollars ($5,000)
shall require Owner’s prior approval and shall be put out for a minimum of
three (3) competitive bids unless otherwise approved by Owner. Notwithstanding 

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	 	 	 	the foregoing, such prior approval and bids shall not be required for ;any expenses
regardless of amount which, in Operator’s reasonable judgment, are immediately
necessary to prevent immediate material damage to a Hotel or the health or safety of
its occupants (“Emergency Expenses”); provided that, Operator shall make good faith
attempts to contact and notify Owner of the need for such Emergency Expenses prior
to incurring them and in all events shall notify Owner within twenty-four (24) hours
after Operator becomes aware of such emergency;
	 
	 	I.	 	Subject to Section 3.6 below, use commercially reasonable efforts to operate
the Hotels in accordance with any mortgage or deed of trust on the Hotels and/or
Franchise Agreement (collectively, “Major Agreements”); provided, however, Operator
shall have no responsibility for causing the payment of any Fixed Charges or Owner
Expenses (as defined in Section 7.2), unless expressly set forth in this Agreement;
	 
	 	J.	 	At the direction of Owner, in its sole discretion and pursuant to a separate
written agreement between Owner and Operator (or its affiliates), provide project
coordination services to the Owner and its general contractor to aid in any
construction or remodeling at the Hotels;
	 
	 	K.	 	Use good faith efforts to identify, and provide recommendations to Owner
regarding the use of, any vendor relationships established by Operator, in order to
implement potential cost savings and operational efficiencies for the Hotels; and
	 
	 	L.	 	Provide such other services as are required under the terms of this Agreement
or as are customarily performed without additional fee by management companies of
similar properties in the areas of the Hotels.

3.6. Notwithstanding any other provision of this Agreement to the contrary, Operator’s obligations
with respect to any Major Agreement shall be limited to the extent (i) complete and accurate copies
and/or summaries of the relevant provisions thereof have been delivered to Operator sufficiently in
advance to allow Operator to perform such obligations and (ii) the provisions thereof and/or
compliance with such provisions by Operator (1) are applicable to the day-to-day operation,
maintenance and non-capital repair and replacement of the Hotels or any portion thereof, (2) do not
require contribution of capital or payments of Operator’s own funds, (3) do not materially increase
Operator’s obligations hereunder or materially decrease Operator’s other rights hereunder, provided
however, that Operator acknowledges and agrees that standards, expectations, responsibilities and
limitations prescribed by franchisors are not deemed to materially increase Operator’s obligations
or materially decrease its rights hereunder (4) do not limit or purport to limit any corporate
activity or transaction with respect to Operator or its affiliates or any other activity, transfer,
transaction, property or other matter involving Operator or its affiliates other than at the sites
of the Hotels, and (5) are otherwise within the scope of Operator’s duties under this Agreement.
Owner acknowledges and agrees, without limiting the foregoing, that any failure of Operator or the
Hotels to comply with the provisions of any Major Agreement arising out of (A) the condition of the
Hotels, and/or the failure of the Hotels to comply with the provisions of such Major Agreement,
prior to Operator’s assuming the day-to-day management thereof, (B) construction activities at the Hotels, (C) inherent

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limitations in the design and/or construction of, location of and/or parking at the Hotels, (D)
instructions from Owner to operate any Hotel in a manner inconsistent with the Major Agreements
and/or (E) Owner’s failure to approve any matter requested by Operator in Operator’s reasonable
good faith business judgment as necessary or appropriate to achieve compliance with any Major
Agreement, shall not be deemed a breach by Operator of its obligations under this Agreement.
Operator shall be entitled to rely on the copies of the Franchise Agreements provided by Owner.

ARTICLE IV

AGENCY; HOTEL EMPLOYEES

4.1. In the performance of its duties as Operator of the Hotels, Operator shall act solely as agent
of Owner. Nothing in this Agreement shall constitute or be construed to be or create a partnership
or joint venture between Owner and Operator. Except as otherwise provided in this Agreement, (a)
all debts and liabilities to third persons incurred by Operator in the course of its operation and
management of the Hotels in accordance with the provisions of this Agreement shall be the debts and
liabilities of Owner only and (b) except to the extent provided in Section 23.1, Operator shall not
be liable for any such obligations by reason of its management, supervision, direction and
operation of the Hotel as agent for Owner. Operator may so inform third parties with whom it deals
on behalf of Owner and may take any other reasonable steps to carry out the intent of this
paragraph.

4.2. All Hotel Employees shall be employees of Operator or an affiliate. All compensation
(including without limitation all wages, fringe benefits and severance payments) of the Hotel
Employees shall be an Operating Expense (as defined in Section 10.2) and shall be borne by Owner
and paid or reimbursed to Operator out of the Agency Account (as hereinafter defined) or if the
amounts therein are insufficient by Owner upon demand therefor by Operator. Owner acknowledges and
agrees that (a) Operator shall have the right to institute bonus programs for the Hotel Employees
so long as such policies are reasonable and customary in the industry and (b) Operator shall have
the right to institute severance payment policies for the Hotel Employees so long as such policies
are consistent with Operator’s severance payment policies in effect from time to time for other
similar hotels managed by Operator and its affiliates. Operator’s current severance payment policy
is attached hereto as Exhibit D, and Operator shall obtain Owner’s prior consent before
implementing any material changes to such policy at the Hotels.

4.3. Operator may, subject to the Budgets, enroll the Hotel Employees in retirement, health and
welfare employee benefit plans substantially similar to corresponding plans implemented in other
hotels with similar service levels managed by Operator or similar hotels in the areas of the Hotel.
Such plans may be joint plans for the benefit of employees at more than one hospitality property
owned, leased or managed by Operator or its affiliates. Employer contributions to such plans
(including any withdrawal liability incurred upon termination of this Agreement) and reasonable
administrative fees which Operator may expend in connection therewith shall be the responsibility
of Owner and shall be an Operating Expense. The administrative expenses of any joint plans will be
equitably apportioned by Operator among properties covered by such plan. The apportionment for
each Hotel shall be based upon the total costs of the administrative expenses multiplied by a
fraction, the numerator of which is the total payroll expense of the Hotel, and the denominator of
which is the total payroll expense of all hotels participating in the joint plans. Owner hereby acknowledges and

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agrees that (a) any employee benefit plan withdrawal liability and (b) compliance with the
provisions of the Worker Adjustment and Retraining Notification Act and/or any similar state or
local laws (together with all rules and regulations promulgated thereunder and including without
limitation any such state or local laws, the “WARN Act”) upon any disposition of a Hotel, upon any
termination of this Agreement or upon the occurrence of any other event giving rise to the
application of the WARN Act are the responsibility and obligation of Owner, and Owner hereby agrees
to indemnify, defend and hold Operator harmless from and against any cost, expense, obligation,
claim or other liability which Operator may incur arising out of or in connection with any employee
benefit plan withdrawal liability or any breach or claimed breach of the WARN Act in connection
with any such disposition, termination or other occurrence; provided, however, in the event that
Operator receives notice of termination of this Agreement with sufficient time to comply with the
WARN Act but fails to satisfy the applicable WARN Act requirements, then Operator shall indemnify,
defend, and hold harmless Owner from and against any cost, expense, obligation, claim or other
liability which Owner may incur arising out of such failure by Operator.

4.4. Operator, in its discretion but subject to the Budgets (unless otherwise approved by Owner),
may, as an Operating Expense of the Hotels, (i) provide lodging for Operator’s executive employees
to the extent they are visiting the Hotels in connection with the performance of Operator’s
services and allow them the use of Hotel facilities and (ii) provide the General Manager of the
Hotels and other Hotel Employees temporary living quarters within the Hotels and the use of all
Hotel facilities, in either case without charge, as the case may be, but for no more than an
aggregate of sixty (60) days without the Owner’s prior written consent.

4.5. Operator shall not be liable for any failure of the Hotels to comply prior to the Commencement
Date with any federal, state, local and foreign statutes, laws, ordinances, regulations, rules,
permits, judgments, orders and decrees affecting labor union activities, civil rights or employment
in the United States, including, without limitation, the Civil Rights Act of 1870, 42 U.S.C. §1981,
the Civil Rights Acts of 1871, 42 U.S.C. §1983 the Fair Labor Standards Act, 29 U.S.C. §201,
et seq., the Civil Rights Act of 1964, 42 U.S.C. §2000e, et seq.,
as amended, the Age Discrimination in Employment Act of 1967, 29 U.S.C. §621, et
seq., the Rehabilitation Act, 29 U.S.C. §701, et seq., the Americans With
Disabilities Act of 1990, 29 U.S.C. §706, 42 U.S.C. §12101, et seq., the Employee
Retirement Income Security Act of 1974, 29 U.S.C. § 301, et seq., the Equal Pay
Act, 29 U.S.C. §201, et seq., the National Labor Relations Act, 29 U.S.C. §151,
et seq., and any regulations promulgated pursuant to such statutes (collectively,
as amended from time to time, and together with any similar laws now or hereafter enacted, the
“Employment Laws”).

4.6. Operator shall from time to time develop and implement policies, procedures and programs for
the Hotels (collectively, the “Employment Policies”) reasonably designed to effect compliance with
the Employment Laws. The Employment Policies shall be consistent with industry standards from time
to time for reputable hotel management companies.

4.7. Notwithstanding anything stated herein to the contrary, the hiring of any new candidates for
the Key Hotel Personnel positions shall be subject to Owner’s approval, not to be unreasonably
withheld so long as the candidate is reasonably qualified to perform the position based on the
candidate’s education and experience. If requested by Owner, Operator shall make a candidate for a
Key Hotel Personnel position available to interview with Owner’s representative at Owner’s offices

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(or other mutually agreeable location) at a mutually agreeable reasonable time. In the event Owner
fails to respond in writing to a request for approval from Operator within five (5) days of the
latter of (i) such request, or (ii) the provision to Owner of a written summary of such candidate’s
education, professional experience and qualifications, Owner shall be deemed to have provided such
approval. If Owner becomes dissatisfied with the performance of any Key Hotel Personnel, Owner
may meet with senior management of the Operator to resolve such dissatisfaction. Operator will
give Owner not less than fourteen (14) days prior notice of any proposed transfer of any Key Hotel
Personnel. For the purposes hereof, “Key Hotel Personnel” shall be defined as the following
individuals, to the extent employed at a Hotel: General Manager.

4.8. Operator, as the sole employer, shall have the duty and responsibility to negotiate with any
labor union lawfully entitled to represent its Hotel Employees. Operator shall consult with Owner
before and during any discussions about strategies, objectives, tactics, proposals and agreements
as well as keep the Owner fully informed as to the progress of any negotiations and any agreements
that are reached. Nothing in this Section 4.8 shall require Operator to employ persons belonging
to labor unions. In addition, Operator shall consult with Owner during the course of any
negotiations with such labor union. Operator shall use diligent efforts to settle and compromise
all controversies and disputes arising under any labor union contracts affecting the Hotel
Employees upon such terms and conditions as Operator reasonably deems to be in Owner’s best
interests. Notwithstanding any term of this Agreement Operator may enter into no labor union
agreement, settlement or compromise that shall be binding upon Owner (either directly or as a
successor under any agreement or indirectly as an agreement covering union representation or
Operator’s policies with respect to wages and conditions applicable to the Hotels) without the
prior written consent of Owner, which consent shall not be unreasonably withheld or delayed.

ARTICLE V

PROVISION OF FUNDS

5.1. In performing its services under this Agreement, Operator shall act solely as agent and for
the account of Owner. Operator shall not be deemed to be in default of its obligations under this
Agreement to the extent it is unable to perform any obligation due to the lack of available funds
from the operation of the Hotels or as otherwise provided by Owner.

5.2. Operator shall in no event be required (i) to advance any of its funds (whether by waiver or
deferral of its management fees or otherwise) for the operation of the Hotels or (ii) to incur any
liability unless Owner shall have furnished Operator with funds necessary for the discharge thereof
prior to incurring such liability.

5.3. Owner acknowledges that prior to and during the two (2) weeks following the Commencement Date,
Manager will undertake certain transition activities which are necessary to effectuate Manager’s
take-over of management of the Hotels, and that Manager will incur expenses in connection with such
transition activities, which are described and estimated in the transition budget (“Transition
Budget”) attached hereto as Exhibit E. Owner expressly agrees to reimburse Operator for
fifty percent (50%) of the expenses incurred in connection with the transition activities
during such period, which are not to exceed the amounts set forth in the Transition Budget unless

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otherwise approved by Owner, whether incurred prior to or following the Commencement Date. Owner
agrees to pay such amounts within thirty (30) days after written demand by Operator, as issued from
time to time.

ARTICLE VI

CENTRALIZED SERVICES; MULTI-PROPERTY PROGRAMS;

INFORMATION TECHNOLOGY

6.1. Operator may, subject to the Budgets, provide or cause its affiliated companies to provide for
the Hotels and their guests the full benefit of any reservations system hereafter established by
Operator or its affiliates and provide, or cause its affiliated companies to provide, such aspects
of any accounting or purchasing services, other group benefits and services, revenue management
services, on-site sales training, associate satisfaction surveys, Operator’s national training
program and other training as are made available generally to similar properties managed by
Operator (individually and collectively, “Centralized Services”). Subject to the provisions of the
applicable Budget, Operator or such of Operator’s affiliated companies as provide Centralized
Services shall be entitled to be reimbursed for each Hotel’s share of the total costs that are
reasonably incurred in providing such Centralized Services on a system-wide basis to hotels and
motels managed by Operator or its affiliates which costs may include, without limitation, salaries
(including payroll taxes and employee benefits) of employees and officers of Operator and its
affiliates, costs of all equipment employed in the provision of such services and a reasonable
charge for overhead. Each Hotel’s share of such costs shall be determined in an equitable manner
by Operator (which shall be reasonably satisfactory to Owner) and substantiated to Owner after each
Fiscal Year (as hereinafter defined), shall be an Operating Expense of the Hotels and shall be
borne by Owner and paid or reimbursed to Operator out of the Agency Account or if the amounts
therein are insufficient by Owner upon demand therefor by Operator. Operator shall maintain and
make available to Owner invoices or other evidence supporting all of the charges for Centralized
Services. Notwithstanding the foregoing, Operator’s fee for providing centralized accounting
services shall be the Accounting Fee (as defined in Section 9.2 hereof). Owner acknowledges and
agrees that (i) Operator has disclosed to Owner the types of Centralized Services Operator
currently makes available to properties which it operates, (ii) the Hotels are likely to receive
substantial benefit from its participation in such Centralized Services, (iii) Operator is not
obligated to provide such Centralized Services under Article III of this Agreement, (iv) Operator
is entitled to payment for such Centralized Services in the manner set forth above in addition to
its Basic Fee and Incentive Fee, and (v) the receipt by Operator of any such payment does not
breach any fiduciary or other duty which Operator may have to Owner. A list of the Centralized
Services currently offered by Operator to hotels operated by Operator is attached hereto as
Exhibit F.

6.2. Owner acknowledges and agrees that Operator may, subject to the Budgets, enter into certain
purchasing, maintenance, service or other contracts with respect to the Hotels (collectively,
“Multi-Property Programs”) pursuant to which Operator or affiliates of Operator receive rebates,
discounts, cash or other incentives, administration fees, concessions, profit participations, stock
or stock options, investment rights or similar payments or economic consideration (collectively,
“Operator Rebates”) from or in, as applicable, the vendors or suppliers of goods or services
provided under such Multi-Property Programs. Owner acknowledges and agrees that (i) Operator

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has disclosed to Owner the types of Multi-Property Programs Operator currently makes available to
properties which it operates and (ii) subject to the last sentence of this Section, (1) the Hotels
are likely to receive substantial benefit from its participation in such Multi-Property Programs
which the Hotels could not obtain on their own and for which Operator is not adequately compensated
by its Basic Fee and Incentive Fee and (2) any and all Operator Rebates are the sole property of
Operator and not Owner. To the extent any such Operator Rebate is specifically designated for one
or more Hotels, Operator shall disclose to the amount of such Operator Rebate to Owner. To the
extent the Operator Rebates from the Multi-Property Programs exceed all costs and expenses in
managing and overseeing the Multi-Property Programs during any Fiscal Year, such excess shall be
allocated ratably among all of the hotels that participated in the Multi-Property Programs by using
such excess (i) to develop — both internally and externally — and establish additional associate
training programs; (ii) to compensate third-party experts who provided such training; and (iii) to
provide other benefits for the hotels such as third-party food and beverage consulting expertise.
The excess is allocated by multiplying the amount of such excess by a fraction, the numerator of
which is the total amount of purchases through the Multi-Property Programs made by a Hotel and the
denominator of which is the total amount of purchases through the Multi-Property Programs made by
all of the hotels managed by Operator that participate in the Multi-Property Programs. The Owner
has the right to require that (i) one or more of the purchasing, maintenance, service or other
goods, services or other benefits contracted for in the Multi-Property Programs may be purchased
from a provider designated by Owner other than the party providing the Multi-Property Programs, and
(ii) Operator put out for competitive bid any one or more goods or services provided through the
Multi-Property Program; provided that, Owner cannot require early termination of a contract within
a Multi-Property Program unless such early termination is permitted by the terms of such contract.

6.3. The Hotels shall incur, as an Operating Expense, subject to the Budgets, fees for certain
information technology services, including, but not limited to: (i) de-centralized accounting
support services, pursuant to Section 9.2, (ii) Operator’s IT Central Support Services (support
desk and e-mail services), (iii) Operator’s IT Delphi System Support (centralized sales and
catering software application), (iv) license fees equal to the Operator’s actual costs for use of
certain Microsoft software applications at the Hotels, and (v) Virtual Private Network (“VPN”)
Connectivity and Support (connection to Operator’s software applications via secure internet
connection). For purposes of the VPN, Operator may install hardware at the Hotels, which shall be
Owner’s property, and the cost thereof shall be chargeable as an Operating Expense. In addition,
Owner shall pay the costs of all information technology equipment, software and costs associated
with business process changes from time to time to (i) comply with the operating standards required
by the Major Agreements, (ii) make reasonable adaptations to changing technology, (iii) be
otherwise consistent with industry standards for similar hotel operations, and (iv) achieve and
sustain compliance on an on-going basis with the then current Payment Card Industry Data Security
Standards and other applicable information security and operating rules and regulations of the
credit card associations, and applicable data protection and privacy laws and regulations. A list
of the fees payable to Operator pursuant to this Section 6.3 (the “IT Fees”) is included in
Exhibit F, subject to change as set forth in the Budgets for each Fiscal Year. Commencing
on the Commencement Date and continuing throughout the term, such fees shall be incurred by the
Hotels and payable to Operator on a monthly basis. All IT Fees shall be an Operating Expense,
shall be included in and subject to the Budgets and shall be paid or reimbursed to Operator out of
the Agency Account or, if the funds therein are insufficient, by Owner.

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6.4. To the extent requested by Owner, Operator may provide project management services in
connection with the procurement and installation of additional information technology for the
Hotels on terms and conditions (including separate fees for such services) mutually agreed upon by
Owner and Operator.

ARTICLE VII

WORKING CAPITAL AND BANK ACCOUNTS

7.1. Owner will provide Operator with working capital for the Hotels in the amount of Two Million
Seven Hundred Fifty Thousand Dollars ($2,750,000) (the “Working Capital”). Owner shall at all
times provide, either from Total Revenues or from other funds of Owner, sufficient funds as
determined in the good faith business judgment of Operator to constitute normal working capital for
the uninterrupted and efficient operation of the Hotels (but which, in no event, shall be an amount
less than the Working Capital), including without limitation funds sufficient to operate, maintain
and equip the Hotels in accordance with all Major Agreements and to maintain the Hotels in
accordance with the Hotel Standard. The Working Capital amount required under this Section 7.1
shall be increased (but not decreased) annually on the first day of each succeeding Fiscal Year by
the same percentage as any percentage increase in the CPI (as defined in Section 8.6) from the
first day of the prior Fiscal Year through the first day of such succeeding Fiscal Year.

Upon Operator’s written notice to Owner that additional funds are required to pay necessary
Operating Expenses (including but not limited to payroll expenses), Owner shall provide the funds
necessary to pay such Operating Expenses within three (3) business days following Owner’s receipt
of such notice. Any such failure to provide such funding shall constitute a breach under this
Agreement. If Operator chooses to fund any such expenses (which shall be totally at Operator’s
sole discretion), Operator may, in addition to all other rights, repay itself as soon as any funds
are available, and pay itself interest upon such sum from the date payment was made at a rate equal
to the Prime Rate plus three hundred (300) basis points.

7.2. All funds received by Operator in the operation of the Hotels, including working capital
furnished by Owner, shall be deposited in a special account or accounts (the “Agency Account”) in
such federally insured bank, savings and loan or trust company as may be selected by Owner and
reasonably approved by Operator. Any successor or substitute bank, savings and loan or trust
company shall be selected in the same manner. Operator shall pay all Operating Expenses and Fixed
Charges on behalf of Owner from the Agency Account; provided, however, that Operator shall not be
obligated to pay any Operating Expenses or Fixed Charges in the event that such funds are not
currently available in the Agency Account. Upon Owner’s written request and direction, Operator
shall pay on behalf of Owner from the Agency Account (but only to the extent that such funds are
available in the Agency Account following the payment of all Operating Expenses and Fixed Charges),
such other fixed expenses as may be requested by Owner (e.g., debt service, ground lease payments,
capital costs, etc.) (“Owner Expenses”); provided, however, Operator will not be required to pay
such Owner Expenses until Operator receives Owner’s written request and direction to do so
(including copies of any material agreements) (“Owner’s Expense Notice”). Owner agrees
to provide Owner’s Expense Notice at least thirty (30) days prior to the date on which the first

11

 

payment by Operator is due, and such Owner’s Expense Notice shall only be revocable upon thirty
(30) days prior written notice from Owner.

7.3. A. The Agency Account shall be in the name of the Hotel(s), with Operator as agent for Owner
(bearing Owner’s Federal tax identification number), and shall be under the control of Operator.
The FF&E Reserve Account (as defined in Section 11.1) shall be in the name of Owner and under the
control of Owner. Checks or other documents of withdrawal from the Agency Account shall be signed
only by Operator’s representatives, provided that such representatives shall be bonded or otherwise
insured in a manner reasonably satisfactory to Owner. The premiums for bonding or other insurance
shall be an Operating Expense except for premiums for bonding off-site executive employees of
Operator. No later than ninety (90) days following the expiration or termination of this
Agreement, all remaining amounts in the Agency Account shall be transferred to Owner. The Operator
shall not co-mingle any Agency Account funds with any other funds of Operator or funds from hotels
that are not Hotels.

     B. Except for the payroll account referred to below, Operator shall not maintain, for the
deposit of revenues generated at the Hotels, any bank account in Operator’s sole name. Working
Capital shall be adjusted as appropriate in the mutual judgment of Owner and Operator, and within
three (3) business days of written notice, Owner shall advance additional funds deemed necessary to
maintain Working Capital or Operator shall return any amounts deemed unnecessary to maintain as
Working Capital as is requested by Owner and reasonably approved by Operator. At such time as
Owner enters into a credit facility with a Lender, provided that such credit facility provides for
the payment of necessary disbursements, checks and transfers by Operator on behalf of Owner,
Operator shall arrange such daily sweeps of cash into such accounts as is requested by Owner, so
long as there is sufficient money available to pay payroll and normal operating expenses.

     C. All sums received from the operation of the Hotels and any and all items paid by Operator
arising by virtue of management of the Hotels shall pass through the Agency Account. Nothing
herein contained shall be construed to deprive Operator of the right to maintain separate payroll
accounts or petty cash funds and to make payments therefrom as the same are customary in the hotel
business.

ARTICLE VIII

BOOKS, RECORDS AND STATEMENTS; BUDGETS

8.1. Operator shall keep full and accurate books of account and other records reflecting the
results of the operation of the Hotels in accordance with the “Uniform System of Accounts for the
Lodging Industry” (Tenth Revised Edition 2006, as further revised from time to time) as adopted by
the American Hotel & Lodging Educational Institute (the “Uniform System”) with such exceptions as
may be required by the provisions of this Agreement; provided, however, that Operator may, with
prior notice to Owner, make such modifications to the methodology in the Uniform System as are
consistent with Operator’s standard practice in accounting for its operations under management
contracts generally and applicable to substantially all of the hotels managed by Operator, so long
as such modifications do not affect the determination of Total Revenues, Operating Expenses or
Fixed
Charges under Article X. Except for the books and records which may be kept in Operator’s home

12

 

office or other suitable location pursuant to the adoption of a central billing system or other
centralized service, the books of account and all other records relating to or reflecting the
operation of the Hotels shall be kept at the Hotels and shall be available to Owner and its
representatives at all reasonable times for examination, audit, inspection and transcription. All
of such books and records including, without limitation, books of account, guest records and front
office records, shall be the property of Owner. Upon any termination of this Agreement, physical
possession of all of such books and records shall be transferred to Owner, but shall thereafter be
available to Operator at all reasonable times for inspection, audit, examination and transcription
for a period of five (5) years. Owner shall reimburse Operator for any costs or expenses incurred
by Operator in connection with any assistance requested by Owner to determine the inventory of
books and records for retention, which determination shall be Owner’s responsibility; provided,
however, that Owner shall be specifically required to, and Operator may, retain a copy of all sales
tax returns and supporting documents relating to all tax reporting periods for the Hotels covered
by the Term.

8.2. Operator shall deliver to Owner within ten (10) business days after the end of each month, the
following items for each Hotel and a consolidated report for all Hotels (collectively, the “Monthly
Reports”):

	 	A.	 	A balance sheet as of the last day of such month;
	 
	 	B.	 	A source and use of funds statement for such month;
	 
	 	C.	 	An income and expense statement for such month;
	 
	 	D.	 	Detailed departmental income and expense statements for such month;
	 
	 	E.	 	A report listing updated operating projections and forecasts for the remainder
of the Fiscal Year;
	 
	 	F.	 	A variance report showing expense line-items that exceed the Budget by more
than Five Hundred Dollars ($500); and
	 
	 	G.	 	Such other monthly reports as Owner may reasonably request and to which
Operator agrees in writing.

The Monthly Reports shall be prepared in accordance with the Uniform System and/or other applicable
generally accepted accounting principles as promulgated by the Financial Accounting Standards Board
and approved by the Securities and Exchange Commission (“GAAP”) but in all events consistent with
this Agreement. In addition to the Monthly Reports, the Operator shall allow the Owner reasonable
access at Owner’s request to Operator’s internal electronic reporting software systems to review
information related to the Hotels.

8.3. Year-end unaudited financial statements for each Hotel and a consolidated report for all
Hotels (including a balance sheet, income statement and statement of sources and uses of funds)
shall be prepared and delivered to Owner within twenty-five (25) days following Fiscal Year end.
Owner may request that the financial statements be audited by an independent certified public

13

 

accountant. Such accountant shall address any findings, reports or opinions that concern
Operator’s work under this Agreement to both Operator and Owner. Owner shall pay the cost of such
audit and Operator shall provide reasonable assistance with such accountant in the preparation of
such statements.

8.4. On or before each November 1 during the Term, Operator shall submit to Owner for the next
Fiscal Year the following items for each Hotel (collectively, the “Budgets”):

	 	A.	 	An operating budget (the “Operating Budget”) setting forth in reasonable
line-item detail the projected income from and expenses of all aspects of the
operations of the Hotel;
	 
	 	B.	 	A capital budget (the “Capital Budget”) setting forth in reasonable line-item
detail proposed capital projects and expenditures for the Hotel including but not
limited to FF&E expenditures which, if any, will be expensed in the then current Fiscal
Year in accordance with GAAP;
	 
	 	C.	 	A marketing and strategic sales plan for the Hotel;
	 
	 	D.	 	A cash flow analysis for the Hotel; and
	 
	 	E.	 	Such other reports or projections as Owner may reasonably request and to which
Operator agrees in writing.

Owner and Operator shall start meetings and discussions for the Budgets no later than October 1 of
each Fiscal Year. The Operating Budget shall include: a detailed operating budget showing
estimated Gross Operating Profit, department profits, all Operating Expenses and Fixed Charges; a
marketing plan, marketing and sales strategies, objectives and tactics, a detailed competitive
analysis and everything else typically included in a hotel marketing plan including projections of
average daily room rates and average daily occupancy; a cash flow forecast; projections for and
limits on discounted and complementary rooms and services, estimated corporate reimbursements to
Operator and its affiliates, including without limitation, Centralized Services and Multi-Property
Programs and Operator Rebates. All of the foregoing information shall be set forth in reasonable
detail, including by month and compared by month, quarter and year to the prior year, and, where
appropriate, with the basis for all assumptions expressly set forth. Owner shall review the
proposed Budgets and deliver to Operator its comments and suggested changes within fourteen (14)
days after Owner’s receipt of such Operating Budget and Capital Budget, respectively. Within ten
(10) days after receiving Owner’s objection(s) to the proposed Budgets, Owner and Operator shall
meet at the applicable Hotel (or such other location as they may agree) and endeavor in good faith
to resolve such objections and arrive at approved Budgets. Operator shall submit revised Budgets
within fourteen (14) days of any meeting. Owner shall thereafter have fourteen (14) days to review
the revised Budgets and advise Operator in writing of any objections to thereto. Owner’s notice
shall include a reasonably detailed explanation of each objection. This process shall continue
until there is an approved Operating Budget and Capital Budget. If Owner approves any proposed
Budgets, whether before or after any such exchange of comments and suggestions, then such proposed
Budgets shall become the approved Budgets for the Fiscal Year to which it relates. Operator shall

14

 

not be deemed to have made any guarantee, warranty of representation whatsoever in connection with
the Budgets or with respect to the economic performance or profitability of the Hotels, and Owner
acknowledges that the Budgets and any other projections previously or hereafter prepared by
Operator are intended only to be reasonable estimates and that actual results may vary due to
unanticipated events and circumstances occurring subsequent to the date of such Budgets or
projection and unforeseen circumstances, including but not limited to, cost of labor, material,
services and supplies, casualty, law, economic or market conditions may make adherence to the
Budgets impracticable. If the Owner and Operator cannot agree upon the Budgets, the parties agree
to submit their claims to either PKF Consulting or HVS (or other mutually agreeable hospitality
consultant) to act as a mediator to assist the parties in finalization of the Budgets.

8.5. Upon approval of the Budgets by Owner, Operator shall use diligent and commercially reasonable
efforts to operate the Hotels substantially in accordance with the Budgets. Operator shall not,
without Owner’s prior approval:

	 	A.	 	Incur any expense for any line-item in the Operating Budget which causes the
aggregate expenditures for such line-item to exceed the budgeted amount by the lesser
of (i) 10% or (ii) $5,000 for the applicable fiscal period set forth in the Operating
Budget, provided that, aggregate expenses shall not exceed those provided in the
Operating Budget by more than two percent (2%) and provided further that, Operator may
at Owner’s cost and expense, without Owner’s approval, (x) pay any expenses (the
“Necessary Expenses”) regardless of amount, which are necessary for the continued
operation of the Hotels in accordance with the requirements of any Major Agreement and
the operational standards set forth in this Agreement and which are not within the
reasonable control of Operator (including, but not limited to, those for insurance,
taxes, utility charges and debt service), (y) pay Emergency Expenses regardless of
amount; provided that, Operator shall make good faith attempts to contact and notify
Owner of the need for such Emergency Expenses prior to incurring them and in all events
shall notify Owner within twenty-four (24) hours after Operator becomes aware of such
emergency, and/or (z) pay any third-party operating expenses which are commercially
desirable to be incurred in order to obtain unbudgeted Hotel revenue in the ordinary
course of operating the Hotels in accordance with the then current business plan
provided that such unbudgeted revenue is reasonably certain and sufficient in
Operator’s reasonable professional judgment to offset such expenses (“Opportunity
Expenses”); provided, that such additional expenses shall be proportionally equal to or
less than the projected additional revenue to be realized.
	 
	 	B.	 	Incur any expense for any line-item in the Capital Budget which causes the
aggregate expenditures for such capital line-item or related series of capital
line-items to exceed the budgeted amount by the lesser of (i) 10% or (ii) $5,000,
provided that Operator may, without Owner’s approval, pay any Emergency Expenses which
are capital in nature; provided that, Operator shall make good faith attempts to
contact and notify Owner of the need for such Emergency Expenses prior to incurring
them and in all events shall notify Owner within twenty-four (24) hours after Operator
becomes aware of such emergency.

15

 

8.6. If the Budgets (or any component of the Budgets) with respect to any Fiscal Year are
disapproved by Owner as provided in Section 8.4 then, until approval of the Budgets (or such
components) by Owner, Operator until the resolution of such dispute shall cause the Hotels to be
operated substantially in accordance with most recent approved Budgets, except for, or as modified
by, (a) those components of such Budgets for the applicable Fiscal Year approved by Owner, (b) an
adjustment to the disputed Budgets so as to increase (but not decrease) disputed expense items by
the same percentage as any percentage increase in the Consumer Price Index — All Urban Consumers
(U.S. City Average) (1982-1984 =100), or any successor index thereto appropriately adjusted (the
“CPI”), from the CPI in effect on the first day of the first month of the Fiscal Year applicable to
such last approved Budget to the CPI in effect on the first day of the first month of the Fiscal
Year applicable to the disputed Budgets, (c) Necessary Expenses which shall be paid as required,
(d) Emergency Expenses which shall be paid as required and (e) Opportunity Expenses.

8.7. Notwithstanding any provisions of this Agreement granting Operator the authority to enter into
contracts, perform repairs and improvements, or incur expenditures on behalf of Owner, Operator
shall not be authorized to take any actions or incur any expenditures that would be inconsistent
with the Operating Budgets described in Section 8.4 (but subject to the right of Operator to
deviate from such Budgets to the extent permitted in Sections 8.5 and 8.6).

8.8. Owner recognizes the necessity for regular replacement of FF&E (the “FF&E Replacements”).
Owner in its sole and absolute discretion agrees to expend such amounts for FF&E Replacements as
shall be approved in the Budgets. For the avoidance of doubt, any approval of FF&E Replacements
and capital expenditures in any Budgets, shall only be the starting point and the actual
implementation and timing of such FF&E Replacements and capital expenditures shall be subject to
approval by Owner in its sole and absolute discretion. Owner acknowledges that, in order for the
Operator to be able to operate the Hotels in accordance with the Hotel Standard, it is necessary
that Owner exercise reasonable discretion in determining the amounts necessary for FF&E
Replacements and the actual timing of such FF&E Replacements and capital expenditures. Each
contract to provide FF&E and for capital expenditures must be approved by Owner. For routine FF&E
Replacements, after contract approval, (a) Operator may incur any expenditure for FF&E Replacements
during any Fiscal Year which has been specifically approved in the Budgets without further Owner’s
approval and (b) Owner shall fund payments therefor from the FF&E Reserve Account (as defined in
Section 11.1) (or from other Owner funds) directly to the vendor and handle all processing and
accounting of such payments. For capital projects and non-routine FF&E Replacements (a) if Owner
desires Operator to coordinate such items, such arrangements shall be subject to Owner and Operator
(or its affiliate) entering into a separate written agreement pursuant to Section 3.5(E) hereof and
(b) Owner shall fund payments therefor from the FF&E Reserve Account (or from other Owner funds)
directly to the vendor and handle all processing and accounting of such payments. Notwithstanding
the foregoing, Operator shall be permitted to incur and pay Emergency Expenses as permitted under
Sections 3.5(H), Article 8 and Article 14.

All proceeds from the sale of FF&E no longer needed for the operation of the Hotels shall be
distributed to Owner, subject to the terms of any Major Agreements.

8.9. The Operator will give Owner and its agents access to the accounting working papers related

16

 

to
the Hotels from the Operator’s accountants and the SAS 70 certification or any deficiencies with
respect thereto noted by their auditor. The Operator shall cooperate with and supply such
certifications as are reasonably required from those providing services to or for a public
“reporting company” under the applicable statutes and rules of the Securities and Exchange
Commission, including, without limitation, the Securities Act of 1933, the Securities Exchange Act
of 1934, and the Sarbanes Oxley Act of 2002 and other applicable laws, all as amended or replaced,
and Operator will with its auditors assist the Owner and its affiliates in any SAS 70 compliance or
similar audit. With respect to Operator’s centralized accounting office in Dallas, Texas, such
papers and reports shall be supplied free of charge. Owner shall pay the cost of obtaining such
reports for any other centralized accounting office servicing the Hotels.

ARTICLE IX

MANAGEMENT FEES

AND PAYMENTS TO OPERATOR AND OWNER

9.1. Owner shall pay to Operator, on a monthly basis, for services rendered under this Agreement a
management fee (the “Basic Fee”) equal to three percent (3.0%) of Total Revenues during any Fiscal
Year or portion thereof.

9.2. In addition to the Basic Fee, Owner shall pay to Operator, on a monthly basis, for its
centralized accounting services a fee (the “Accounting Fee”) during the Term and for three (3)
months after the termination of this Agreement equal to One Thousand Five Hundred Dollars ($1,500)
per month for Hotels with ninety (90) or more rooms and One Thousand Three Hundred Seventy-Five
Dollars ($1,375) per month for Hotels with less than ninety (90) rooms. The Accounting Fee shall
be increased (but not decreased) annually on the first day of each succeeding Fiscal Year by the
lesser of (i) the same percentage as any percentage increase in the CPI from the first day of the
prior Fiscal Year through the first day of such succeeding Fiscal Year and (ii) three percent (3%).

9.3. In addition to the Basic Fee and the Accounting Fee, commencing with the Fiscal Year beginning
January 1, 2011 Owner shall pay to Operator an incentive management fee (the “Incentive Fee”) equal
to ten percent (10%) of the amount by which actual aggregate EBITDA (as defined in Article X) for
all the Hotels exceeds Sixty Five Million Dollars ($65,000,000), subject to adjustment for
increases and decreases in the number of Hotels as described in this Section 9.3 (the
“Incentive Fee Threshold”). If a Hotel is removed from this Agreement during a Fiscal
Year, for purposes of the Incentive Fee calculation (i) the Incentive Fee Threshold for such Fiscal
Year and thereafter shall be reduced by an amount equal to the actual trailing 12-month EBITDA of
such Hotel as of the effective date of termination of with respect to such Hotel and (ii) the
actual EBITDA of such Hotel for such Fiscal Year through the date of termination shall be removed
from the aggregate year-end EBITDA for all the Hotels. If a Hotel is added to this Agreement
during a Fiscal Year pursuant to Section 24.1, for purposes of the Incentive Fee calculation (i)
the Incentive Fee Threshold for such Fiscal Year and thereafter shall be increased by an amount
equal to the actual trailing 12-month EBITDA of such Hotel as of the date such Hotel was added to
this Agreement and (ii) the actual EBITDA of such Hotel for such Fiscal Year (including any portion
of such Fiscal Year
occurring prior to the date such Hotel was added to the Management Agreement) shall be added to

17

 

the
aggregate year-end EBITDA for all the Hotels. Notwithstanding the foregoing, the total Incentive
Fee payable to Operator for all the Hotels for any Fiscal Year (or partial Fiscal Year) shall not
exceed one and one half percent (1.5%) of Total Revenues of all the Hotels for such Fiscal Year (or
partial Fiscal Year). In any case in which the effective date of termination falls prior to the
end of a calendar month, the trailing 12-month EBITDA shall be determined as of the end of the
prior month. Examples of the foregoing calculations are attached hereto on Exhibit G.

9.4. In each month during the Term, Operator shall be paid out of the Agency Account the following
payments for the preceding month: (a) the Basic Fee, (b) the Accounting Fee, and (c) any expense
reimbursements due to Operator, as determined from the monthly income and expense statement. Such
payment shall be due and made upon delivery of the income and expense statement for such month and
shall be deducted by Operator out of the Agency Account. The Incentive Fee for any Fiscal Year or
partial Fiscal Year during the Term shall be paid to Operator within thirty (30) days after the end
of the Fiscal Year or partial Fiscal Year at the time of delivery of the income and expense
statement for the Fiscal Year or partial Fiscal Year, shall be payable based upon the computation
of the Incentive Fee on a cumulative basis through the end of the Fiscal Year or partial Fiscal
Year and shall be subject to adjustment as provided in Section 9.6.

9.5. On or before the tenth (10th) day following the last day of each calendar month (or such other
fiscal period as Owner and Operator may determine) of each Fiscal Year during the Term, after (a)
payment of Operating Expenses, Fixed Charges and, to the extent the same are to be paid by Operator
under this Agreement, debt service, ground rent, capital costs and other amounts, (b) payment or
reserving of installments on account of the Incentive Fee, (c) deposits to the FF&E Reserve Account
in accordance with the Budget, (d) any required payment to Operator pursuant to Section 9.6 below
and (e) retention of working capital as required under Section 7.1 above, all remaining funds in
the Agency Account shall be paid to Owner.

9.6. At the end of each Fiscal Year and following receipt by Owner of the annual financial
statements set forth in Section 8.3 (or, if audited, following Owner’s receipt of such audited
financial statements), an adjustment will be made, if necessary, based on the audit so that
Operator shall have received the accurate Basic Fee and Incentive Fee for such Fiscal Year. Within
thirty (30) days of receipt by Owner and Operator of such audit, Operator shall either (a) place in
the Agency Account or remit to Owner, as appropriate, any excess amounts Operator may have received
for such fees during such calendar year or (b) be paid out of the Agency Account or by Owner, as
appropriate, any deficiency in the amounts due Operator for the Basic Fee and the Incentive Fee.
If such annual audit does not reveal that adjustment should be made to the calculation of the fees
payable to Operator, the calculation of the fees shall be deemed final unless Owner objects to such
calculation within one hundred twenty (120) days after the end of the applicable Fiscal Year.

9.7. Owner shall be liable for and shall pay or indemnify Operator for any applicable sales, use,
excise consumption or similar taxes that are payable to any taxing jurisdiction with respect to any
fees, reimbursements or other amounts due to Operator under this Agreement to ensure that the net
amount of such fees, reimbursements or other amounts received by Operator shall be equal to the
full amount that Operator would have otherwise received if no such taxes applied to such amounts.
This Section 9.7 does not apply to federal or state income taxes payable by Operator as a result of
its
gross or net income relating to any fees collected under this Agreement.

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ARTICLE X

CERTAIN DEFINITIONS

10.1. A. The term “Total Revenues” shall mean all income, revenue and proceeds resulting directly
or indirectly from the operation of the Hotels and all of its facilities (net of refunds and
credits to guests and other items deemed “Allowances” under the Uniform System) which are properly
attributable under the Uniform System to the period in question, but in all cases subject to the
terms of this Agreement. Subject to Section 10.1(B), Total Revenues shall include, without
limitation, all amounts derived from:

(i) The rentals of rooms, banquet facilities and conference facilities;

(ii) The sale of food and beverage whether sold in a bar, lounge or restaurant,
delivered to a guest room, sold through an in-room facility or vending machines,
provided in meeting or banquet rooms or sold through catering operations, including
for any events held off-site of Hotel premises;

(iii) Charges for admittance to or the use of any parking facilities, recreational
facilities or any entertainment events at the Hotels;

(iv) Rentals paid under Leases (percentage rent based on the receipts of the tenant,
licensee or concessionaire paid to the Hotel or Owner is included in such rentals,
but the underlying receipts of any tenant, licensee or concessionaire are not);

(v) Charges for other Hotel services or amenities, including, but not limited to,
telephone service, in-room movies, laundry services and spa services; and

(vi) The gross revenue amount on which the proceeds of business interruption or
similar insurance are determined, with respect to any period for which such proceeds
are received.

     B. Total Revenues shall not include:

(i) Sales or use taxes or similar governmental impositions collected by Owner or
Operator;

(ii) Tips, service charges and other gratuities received by Hotel Employees;

(iii) Proceeds of insurance except as set forth in Section 10.1(A);

(iv) Proceeds of the sale or condemnation of the Hotels, any interest therein or any
other asset of Owner not sold in the ordinary course of business, or the proceeds of
any loans or financings;

19

 

(v) Capital contributed by Owner to the Hotels; and

(vi) The receipts of any tenant, licensee or concessionaire under a Lease.

10.2. A. The term “Operating Expenses” shall mean all costs and expenses of maintaining, conducting
and supervising the operation of the Hotels and all of their facilities which are properly
attributable under the Uniform System to the period in question, but in all cases subject to the
terms of this Agreement. Operating Expenses shall include, without limitation:

	 	(i)	 	The cost of all Operating Equipment and Operating Supplies;
	 
	 	(ii)	 	Salaries and wages of Hotel Employees, including costs of
payroll taxes, employee benefits and severance payments. The salaries or wages
of off-site employees or off-site executives of Operator shall not be Operating
Expenses, provided that if it becomes necessary for an off-site employee or
executive of Operator to temporarily perform services at a Hotel of a nature
normally performed by Hotel Employees, his salary (including payroll taxes and
employee benefits) for such period only as well as his traveling expenses shall
be Operating Expenses and reimbursed to Operator;
	 
	 	(iii)	 	The cost of all other goods and services obtained in
connection with the operation of the Hotels including, without limitation, heat
and utilities, laundry, landscaping and exterminating services and office
supplies;
	 
	 	(iv)	 	The cost of all non-capital repairs to and maintenance of the
Hotels;
	 
	 	(v)	 	Insurance premiums (or the allocable portion thereof in the
case of blanket policies) for all insurance maintained under Article XII (other
than insurance against physical damage to the Hotels) and losses incurred on
any self-insured risks (including deductibles);
	 
	 	(vi)	 	All taxes, assessments, permit fees, inspection fees, and water
and sewer charges and other charges (other than income or franchise taxes)
payable by or assessed against Owner with respect to the operation of the
Hotels, excluding Property Taxes (as defined in Section 10.3);
	 
	 	(vii)	 	Legal fees and fees of any independent certified public
accountant for services directly related to the operation of the Hotels and
their facilities;
	 
	 	(viii)	 	All expenses for advertising the Hotel and all expenses of sales promotion
and public relations activities;
	 
	 	(ix)	 	All out-of-pocket expenses and disbursements reasonably
incurred by Operator, pursuant to, in the course of, and directly related to,
the management and operation of the Hotels under this Agreement, which fees
and disbursements shall be paid out of the Agency Account or paid or

20

 

	 	 	 	reimbursed by Owner to Operator upon demand. Without limiting the
generality of the foregoing, such charges may include all reasonable travel,
telephone, telegram, facsimile, air express and other incidental expenses
and any fees or expenditures required for Operator to operate the Hotels in
the given jurisdiction, but, except as otherwise provided in this Agreement,
shall not include any of the regular expenses of the central offices
maintained by Operator, other than offices maintained at the Hotels for the
management of the Hotels. Operator shall maintain and make available to
Owner invoices or other evidence supporting such charges;
	 
	 	(x)	 	The Accounting Fee and any fees or tax levied on those charges
by the local jurisdiction;
	 
	 	(xi)	 	Periodic payments made in the ordinary course of business under
any applicable Franchise Agreement;
	 
	 	(xii)	 	Any other item specified as an Operating Expense in this
Agreement; and
	 
	 	(xiii)	 	Any other cost or charge classified as an Operating Expense or an
Administrative and General Expense under the Uniform System unless specifically
excluded under the provisions of this Agreement.

     B. Operating Expenses shall not include:

	 	(i)	 	Amortization and depreciation;
	 
	 	(ii)	 	The making of or the repayment of any loans or any interest
thereon;
	 
	 	(iii)	 	The costs of any alterations, additions or improvements which
for Federal income tax purposes or under the Uniform System or GAAP must be
capitalized and amortized over the life of such alteration addition or
improvement;
	 
	 	(iv)	 	Payments on account of any equipment lease that is to be
capitalized under GAAP;
	 
	 	(v)	 	Payments under any ground lease, space lease or easement
agreement;
	 
	 	(vi)	 	Payments into or out of the FF&E Reserve Account; or
	 
	 	(vii)	 	Any item defined as a Fixed Charge in Section 10.3.

10.3. “Fixed Charges” shall mean the cost of the following items relating to the Hotels or their
facilities which are properly attributable under the Uniform System to the period in question:

(i) Real estate taxes, assessments, personal property taxes and any other ad valorem taxes

21

 

imposed on or levied in connection with the Hotels, the Installations and the FF&E (collectively, “Property
Taxes”);

	 	(ii)	 	Insurance against physical damage to the Hotels; and
	 
	 	(iii)	 	The Basic Fee.

10.4. “Gross Operating Profit” shall mean the amount, if any, by which Total Revenues exceed
Operating Expenses.

10.5. “EBITDA” for any period shall mean the amount, if any, by which Gross Operating Profit for
such period exceeds Fixed Charges.

10.6. “Fiscal Year” shall mean each twelve (12) consecutive calendar month period or partial twelve
(12) consecutive calendar month period within the Term commencing on January 1st (or, with respect
to the first year of the Term, the Commencement Date) and ending on December 31st (or, with respect
to the last year of the Term, the expiration or earlier termination of the Term) unless Owner and
Operator otherwise agree.

10.7. “Operating Loss” shall mean the amount, if any, by which Operating Expenses exceed Total
Revenues.

ARTICLE XI

FF&E RESERVE

11.1. In addition to the Agency Account established pursuant to Section 7.2, an account shall be
established at the same institution for a reserve for replacements, substitutions and additions to
the FF&E (the “FF&E Reserve Account”). During each Fiscal Year there shall be allocated and paid
on a monthly basis to the FF&E Reserve Account from Total Revenues or other funds provided by Owner
an amount equal to four percent (4%) of Total Revenues for such Fiscal Year or such amount as may
be required under the Major Agreements, whichever is greater.

11.2. All funds in the FF&E Reserve Account, together with any interest earned thereon and the
proceeds of any sale of FF&E (which proceeds shall be deposited in the FF&E Reserve Account) shall
be used solely for purposes of replacing or refurbishing the FF&E in accordance with the applicable
Capital Budget. Any funds remaining in the FF&E Reserve Account at the end of a Fiscal Year shall
be carried forward to the next Fiscal Year. The FF&E Reserve Account may be pledged to any lender
to the Hotels. Notwithstanding anything contained herein to the contrary, no additional FF&E
Reserve Account shall be required to the extent any lender(s) require an FF&E reserve.

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ARTICLE XII

INSURANCE

12.1. The following insurance with respect to each Hotel, to the extent such insurance is
commercially available, shall be obtained by Owner and maintained throughout the Term at Owner’s
sole cost and expense in the amounts as set forth on Exhibit H.

12.2. Operator shall obtain the following insurance with respect to the Hotel Employees and shall
maintain such insurance during the Term of this Agreement at Owner’s sole cost and expense:

	 	A.	 	Worker’s compensation insurance or insurance required by similar employee
benefit acts having a minimum per occurrence limit as Owner may deem advisable against
all claims which may be brought for personal injury or death of Hotel Employees, but in
any event not less than amounts prescribed by applicable state law;
	 
	 	B.	 	Fidelity insurance, in such amounts and with such deductibles as Owner may
require, covering Hotel Employees (including executive employees of Operator) or in job
classifications normally insured in other hotels it manages in the United States or
otherwise required by law; and
	 
	 	C.	 	Employment Practices Liability Insurance (“Employment Insurance”) with
reasonable limits and deductibles.

12.3. All insurance policies obtained by Owner in accordance with Section 12.1 shall name Owner as
the insured party and shall name as additional insured parties (a) Operator, its subsidiaries,
affiliates, directors, officers and employees and (b) such other parties as may be required by the
terms of the Major Agreements as appropriate. Owner’s coverage shall be primary and
non-contributory to any insurance obtained by the Operator.

12.4. All insurance policies shall be in such form and with such companies having a Best’s Rating
of A+ or better as shall be reasonably satisfactory to Owner and/or Operator and provided Owner has
given Operator detailed written notice of such requirements, shall comply with the requirements of
any Major Agreement. Insurance may be provided under blanket or master policies covering one or
more other hotels owned by Owner. The portion of the premium for any blanket or master policy
which is allocated to each Hotel as an Operating Expense or Fixed Charge shall be determined in an
equitable manner by Owner and reasonably approved by Operator and paid out of the Agency Account
or, if the funds therein are insufficient, by Owner upon demand therefor by Operator. Such amount
shall be determined by a suitable and customary formula applying the specific hotel exposures
against appropriate rates to determine the premium allocation for each Hotel.

12.5. All insurance policies shall specify that they cannot be canceled or modified on less than
thirty (30) days prior written notice to both Owner and Operator and any additional insureds (or
such longer period as may be required under a Major Agreement, provided that Operator has been
advised in writing of such period) and shall provide that claims shall be paid notwithstanding any
act or negligence of Owner, or Operator unilaterally or on behalf of Owner, including without
limitation

23

 

their respective agents or employees.

12.6. All insurance policies shall provide, to the extent customarily obtainable from the insurance
company providing such insurance, that the insurance company will have no right of subrogation
against Owner, Operator any party to a Major Agreement or any of their respective agents,
employees, partners, members, officers, directors or beneficial owners.

12.7. Owner and Operator hereby release one another from any and all liability, to the extent of
the waivers of subrogation obtained under Section 12.6, associated with any damage, loss or
liability with respect to which property insurance coverage is provided pursuant to this Article or
otherwise.

12.8. The proceeds of any insurance claim (other than proceeds payable to third parties under the
terms of the applicable policy) shall be deposited into the Agency Account to the extent of Owner’s
interest therein unless otherwise required by the terms of a Major Agreement.

12.9. Operator shall have the right to pay for, or reimburse itself for, insurance required under
this Article XII out of the Agency Account. Notwithstanding anything to the contrary set forth in
this Agreement, Operator shall have no obligation to obtain or maintain any insurance set forth in
this Article if funds from Total Revenues or funds otherwise provided by Owner are not made
available to Operator to purchase the same.

12.10. Subject to the provisions of the Budgets and with the prior written consent of the Owner,
Operator may act, directly or indirectly, in a brokerage capacity with respect to the insurance
required under this Article or as a direct insurer or reinsurer with respect to the same.

ARTICLE XIII

PROPERTY TAXES

13.1. Provided that funds from Total Revenues or funds otherwise provided by Owner are available,
and provided that Operator has received written notice thereof sufficiently in advance to make such
payments, Operator shall pay all Property Taxes on behalf of Owner not less than ten (10) days
prior to the applicable due dates. Upon Owner’s request, Operator shall promptly furnish Owner
with proof of payment of Property Taxes.

13.2. Owner may contest the validity or amount of any Property Tax (a “Tax Contest”), and Operator
agrees to cooperate with Owner in a Tax Contest and execute any documents or pleadings required for
such purpose, provided that the facts set forth in such documents or pleadings are accurate and
that such cooperation or execution does not impose any liability on Operator. All costs and
expenses incurred by Owner and Operator in connection with a Tax Contest shall be Fixed Expenses.

24

 

ARTICLE XIV

REPAIRS AND MAINTENANCE

14.1. Operator shall perform ordinary repairs and maintenance at the Hotels, subject to the Budgets
and Owner providing sufficient funding, to keep the Hotels in compliance with the Hotel Standard.
Ordinary repairs shall include only those which are normally expenses under GAAP. The cost of
ordinary repairs shall be paid from Total Revenues and shall be treated as an Operating Expense.

14.2. Operator shall, from time-to-time, make or cause to be made replacements and renewals to the
FF&E of the Hotels and shall make Routine Capital Expenditures (as defined below) in accordance
with the Budgets and from the FF&E Reserve Account. Costs of the foregoing shall be expensed in
the then-current Fiscal Year in accordance with GAAP. As used herein, Routine Capital Expenditures
shall mean expenses which are classified as capital expenditures under GAAP and shall consist of
non-material expenditures; by way of example, repainting interiors of the Hotels, resurfacing
parking lots and other miscellaneous expenditures.

14.3. Operator shall prepare an annual estimate of non-Routine Capital Expenditures to the Hotels,
including without limitation the structure, the exterior façade, the mechanical, electrical,
heating, ventilating, air conditioning, or plumbing systems. Operator shall submit the estimate to
the Owner for its approval at the time of the annual budgeting process as part of the Capital
Budget.

14.4. After notice to Owner, if practicable, Operator may take appropriate remedial action without
Owner consent in the event of: (i) an emergency threatening the health and safety of a Hotel or
its guests or employees; or (ii) if the expenditures are necessary to avoid Operator’s exposure to
any civil or criminal liability. Operator shall make good faith attempts to contact and notify
Owner of prior to undertaking such remedial action and in all events shall notify Owner within
twenty-four (24) hours after Operator takes such action. Operator shall have the right to
participate in any decisions that affect any conditions as described in this Section 14.4.

14.5. If Owner directly performs or contracts for repair, maintenance, refurbishing, construction
or renovations at a Hotel, Owner must coordinate, and require its contractors and subcontractors to
coordinate, with Operator including, but not limited to, causing any Owner employees, contractors
or subcontractors to comply with safety and security rules of the Hotel and communicate on a
regular basis the activities being performed at the Hotel to assure the health, safety and
efficient operation of the Hotel and its guests and employees. Owner must comply with all laws,
obtain all necessary permits and shall provide Operator copies of any permits prior to commencement
of any such activities.

ARTICLE XV

COVENANTS AND REPRESENTATIONS

15.1. Owner represents, warrants and covenants that it holds good and marketable leasehold title to
the Hotels and that Land Holder holds good and marketable fee or leasehold title to the Hotels,
except for easements or encumbrances that do not adversely affect the operation of the Hotels,

25

 

mortgages or liens for taxes, assessment levies or other public charges not yet due or payable.

15.2. Owner covenants and represents that, at a minimum, it has conducted Environmental Phase I
surveys at the time Owner acquired or leased the Hotels and that there are no Hazardous Materials
on any portion of the Hotels or their surrounding sites; that no Hazardous Materials have been
released or discharged on the Hotels or their surrounding sites, in either case in violation of
applicable law. Owner agrees that it has provided Operator with all information and reports
regarding the environmental condition of the Hotels and any hazards that are contained in or around
the Hotels, including, but not limited to, any Environmental Phase I or Phase II reports that may
have been performed. Owner shall update Operator immediately upon any change of this information
or status. In the event of the discovery of any Hazardous Materials on any portion of the Hotels
or their surrounding sites, Owner shall promptly remove such Hazardous Materials that are at the
Hotels in violation of applicable law and shall remedy the problem in accordance with all laws,
rules and regulations of any governmental authority. Owner shall indemnify, defend and hold
Operator harmless from and against all losses, expenses and liabilities (including but not limited
to any professional fees incurred by Operator to assess the situation or obtain advice on how to
proceed) in the event of a violation of this section or Owner’s failure to act promptly in
accordance with this Section, except to the extent Operator is required to indemnify Owner under
Section 23.1 hereof. Hazardous Materials shall mean any substance or material identified by any
law, rule or regulation as being hazardous to the health and safety or guests or employees and
requiring the monitoring, clean up or removal of such substance. Hazardous Materials shall
include, but not be limited to, asbestos, lead-based paint and PCB’s.

15.3. Owner represents, warrants and covenants that neither it, nor any of its affiliates (or any
of their respective principals, partners or funding sources), is nor will become (i) a person
designated by the U.S. Department of Treasury’s Office of Foreign Asset Control as a “specially
designated national or blocked person” or similar status, (ii) a person described in Section 1 of
U.S. Executive Order 13224 issued on September 23, 2001; (iii) a person otherwise identified by a
government or legal authority as a person with whom Owner or Operator is prohibited from
transacting business; (iv) directly or indirectly owned or controlled by the government of any
country that is subject to an embargo by the United States government; or (v) a person acting on
behalf of a government of any country that is subject to an embargo by the United States
government. Owner agrees that it will notify Operator in writing immediately upon the occurrence
of any event which would render the foregoing representations and warranties contained in this
Section 15.3 incorrect.

15.4. Owner represents, warrants and covenants: (A) that it is familiar with the United States
Foreign Corrupt Practices Act, 15 U.S.C. §§ 778dd-2 (the “FCPA”), a copy of which is available at
http://www.usdoj.gov/criminal/fraud/fcpa.html, and the purposes of the FCPA, and in
particular, the FCPA’s prohibition of the payment or the gift of any item of value, either directly
or indirectly, by a company organized under the laws of the United States of America, or any of its
states, to an official of a foreign government for the purpose of influencing an act or decision in
such person’s official capacity, or inducing such person to use influence with the foreign
government to assist a company in obtaining or retaining business for, with, or in that foreign
country or directing business to any person or company or obtaining an improper advantage, and (B)
that it has not taken, and during the Term of this Agreement it will not take, any action that
would constitute a violation of the FCPA or any similar law.

26

 

15.5. Owner represents, warrants and covenants that it is in full compliance with all Major
Agreements, that Owner has not received any notice of breach of any of such Major Agreements and
that Owner will maintain full compliance with all such Major Agreements during the Term of this
Agreement. Owner agrees to promptly provide to Operator copies of any notice of default or breach
received under any Major Agreement. Notwithstanding the foregoing, the Franchise Agreement
defaults set forth on Schedule 15.5 shall not be deemed Events of Default under this
Agreement unless Owner fails to cure such defaults within the applicable cure periods required by
the Hotel’s franchisor.

15.6. Owner represents, warrants and covenants as follows:

	 	A.	 	Owner is duly organized, validly existing and qualified to conduct its
business, and has full power and authority to enter into and fully perform and comply
with the terms of this Agreement.
	 
	 	B.	 	Neither the execution and delivery of this Agreement nor its performance by
Owner will conflict with or result in a breach of any contract, agreement, law, rule or
regulation to which it is bound.
	 
	 	C.	 	This Agreement is valid and enforceable against Owner in accordance with its
terms and each instrument to be executed by Owner pursuant to this Agreement or in
connection herewith will, when executed and delivered, be valid and enforceable against
Owner in accordance with its terms, subject to the effect of (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights of creditors generally, and (ii) the application of general principles of
equity (regardless of whether enforcement is considered in proceedings at law or in
equity).
	 
	 	D.	 	There is no legal action, suit, arbitration or other legal, administrative or
other governmental proceeding (whether federal, state, local or foreign) pending or, to
Owner’s knowledge, threatened against Owner or any equity holder of Owner or of Owner’s
affiliates or their equity holders or any of their respective properties, assets,
rights or business before any court or governmental department, commission, board,
bureau, agency or instrumentality or any arbitrator, that may have a material adverse
effect on Owner or that draws into question the validity of this Agreement or the
ability of Owner to perform its obligations hereunder.

15.7. Operator represents, warrants and covenants as follows:

	 	A.	 	Operator is duly organized, validly existing and qualified to conduct its
business, and has full power and authority to enter into and fully perform and comply
with the terms of this Agreement.
	 
	 	B.	 	Neither the execution and delivery of this Agreement nor its performance by
Operator will conflict with or result in a breach of any contract, agreement, law, rule

27

 

	 		 	or regulation to which it is bound.
	 
	 	C.	 	This Agreement is valid and enforceable against Operator in accordance with its
terms and each instrument to be executed by Operator pursuant to this Agreement or in
connection herewith will, when executed and delivered, be valid and enforceable against
Operator in accordance with its terms, subject to the effect of (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights of creditors generally, and (ii) the application of general principles of
equity (regardless of whether enforcement is considered in proceedings at law or in
equity).
	 
	 	D.	 	There is no legal action, suit, arbitration or other legal, administrative or
other governmental proceeding (whether federal, state, local or foreign) pending or, to
Operator’s knowledge, threatened against Operator or any member of Operator or of
Operator’s affiliates or their members or any of their respective properties, assets,
rights or business before any court or governmental department, commission, board,
bureau, agency or instrumentality or any arbitrator, that may have a material adverse
effect on Operator or that draws into question the validity of this Agreement or the
ability of Operator to perform its obligations hereunder.
	 
	 	E.	 	Neither it, nor any of its affiliates (or any of their respective principals,
partners or funding sources), is nor will become (i) a person designated by the U.S.
Department of Treasury’s Office of Foreign Asset Control as a “specially designated
national or blocked person” or similar status, (ii) a person described in Section 1
of U.S. Executive Order 13224 issued on September 23, 2001; (iii) a person otherwise
identified by a government or legal authority as a person with whom Owner or
Operator is prohibited from transacting business; (iv) directly or indirectly owned
or controlled by the government of any country that is subject to an embargo by the
United States government; or (v) a person acting on behalf of a government of any
country that is subject to an embargo by the United States government. Operator
agrees that it will notify Owner in writing immediately upon the occurrence of any
event which would render the foregoing representations and warranties contained in
this Section 15.7(E) incorrect.
	 
	 	F.	 	That (1) it is familiar with the United States Foreign Corrupt Practices Act,
15 U.S.C. §§ 778dd-2 (the “FCPA”), a copy of which is available at
http://www.usdoj.gov/criminal/fraud/fcpa.html, and the purposes of the FCPA,
and in particular, the FCPA’s prohibition of the payment or the gift of any item of
value, either directly or indirectly, by a company organized under the laws of the
United States of America, or any of its states, to an official of a foreign government
for the purpose of influencing an act or decision in such person’s official capacity,
or inducing such person to use influence with the foreign government to assist a
company in obtaining or retaining business for, with, or in that foreign country or
directing business to any person or company or obtaining an improper advantage, and (2)
it has not taken, and during the Term of this Agreement it will not take, any action
that would constitute a violation of the FCPA or any similar law.

28

 

15.8. Operator hereby agrees, for the benefit of Owner, its successors and assigns, that Operator
will not own, operate, lease or otherwise have an interest in, directly or indirectly, in any hotel
in the Competitive Set of a Hotel during the Operating Term except for those Hotels shown on the
attached Exhibit I unless expressly permitted by Owner. If Operator elects to do so
without Owner’s consent, Owner’s sole remedy shall be termination of this Agreement solely with
respect to the Hotel(s) for which the other hotel is in their Competitive Set, without payment of
any termination fee, upon at least thirty (30) days prior written notice to Operator.

ARTICLE XVI

DAMAGE OR DESTRUCTION; CONDEMNATION

16.1. If a Hotel is damaged by fire or other casualty, Operator shall promptly notify Owner. This
Agreement shall remain in full force and effect subsequent to such casualty; provided that:

     A. either party may terminate this Agreement upon thirty days prior written notice to the
other party if (i) Owner shall elect to close such Hotel as a result of such casualty (except on a
temporary basis for repairs or restoration) or (ii) Owner shall determine in good faith not to
proceed with the restoration of such Hotel; and

     B. Owner or Operator may terminate this Agreement upon thirty days prior written notice to the
other party if twenty percent (20%) or more of the rooms in such Hotel are unavailable for rental
for a period of sixty (60) days or more as a result of such casualty; provided that, if Owner
terminates this Agreement pursuant to this Section 16.1(B), such termination shall be deemed an
At-Will Termination (as defined in Section 19.3).

16.2. If all or any portion of a Hotel becomes the subject of a condemnation proceeding or if
Operator learns that any such proceeding may be commenced, Operator shall promptly notify Owner
upon Operator’s receipt of written notice thereof. Either party may terminate this Agreement with
respect to a Hotel on thirty (30) days written notice to the other party if (a) all or
substantially all of such Hotel is taken through condemnation or (b) less than all or substantially
all of such Hotel is taken, but, in the reasonable judgment of the party giving the termination
notice, such Hotel cannot, after giving effect to any restoration as might be reasonably
accomplished through available funds from the condemnation award, be profitably operated as a hotel
similar to that of the Hotel immediately prior to such condemnation.

16.3. Any condemnation award or similar compensation shall be the property of Owner, provided that
Operator shall have the right to bring a separate proceeding against the condemning authority for
any damages and expenses specifically incurred by Operator as a result of such condemnation.

ARTICLE XVII

REIT PROVISIONS

17.1. From the Commencement Date through the end of the Term:

29

 

     (a) no wagering activities shall be conducted at or in connection with any Hotel by any person
who is engaged in the business of accepting wagers and who is legally authorized to engage in such
business at or in connection with the applicable Hotel; and

     (b) Operator shall qualify as an “eligible independent contractor” as defined in Section
856(d)(9) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to Lessee and
the REIT. To that end, Operator shall satisfy the following requirements:

     (i) Operator shall not own, directly or indirectly (within the meaning of Section
856(d)(5) of the Code), more than thirty-five percent (35%) of the outstanding stock of the
REIT;

     (ii) No more than thirty-five percent (35%) of the ownership interest in Operator’s
assets or net profits shall be owned, directly or indirectly, by one or more persons owning
thirty-five percent (35%) or more of the outstanding stock of the REIT; and

     (iii) As of the Commencement Date and as of the commencement of any Renewal Term (each,
a “Renewal Commencement Date”), Operator shall be (or shall, within the definition of
Section 856(d)(9)(F), be related to a person (“Related Person”) that is) actively engaged in
the trade or business of operating “qualified lodging facilities” (defined below) for a
person who is not a “related person” within the meaning of Section 856(d)(9)(F) of the Code
with respect to the REIT (“Unrelated Persons”). In order to meet this requirement, Operator
shall, as of the Commencement Date and each Renewal Commencement Date, reasonably project
that it (or any Related Person) will derive at least 10% of both its revenue and profit from
operating “qualified lodging facilities” (defined below) that Operator or a Related Person
operates as of the Commencement Date and each Renewal Commencement Date, as applicable, for
Unrelated Persons for (i) the one-year period following the Commencement Date or the Renewal
Commencement Date, as applicable, and (ii) the Initial Term or the Renewal Term, as
applicable. Upon request from the REIT, Operator shall provide documentation reasonably
necessary to verify the representation in the preceding sentence. A “qualified lodging
facility,” as defined in Section 856(d)(9)(D) of the Code, means a “lodging facility”
(defined below), unless wagering activities are conducted at or in connection with such
facility by any person who is engaged in the business of accepting wagers and who is legally
authorized to engage in such business at or in connection with such facility. A “lodging
facility” is a hotel, motel or other establishment more than one-half of the dwelling units
in which are used on a transient basis, and includes customary amenities and facilities
operated as part of, or associated with, the lodging facility so long as such amenities and
facilities are customary for other properties of a comparable size and class owned by other
owners unrelated to the REIT.

ARTICLE XVIII

EVENTS OF DEFAULT

18.1. The following shall constitute events of default for which the non-defaulting party may

30

 

terminate this Agreement with respect to any individual Hotel or Hotels as described below:

	 	A.	 	If either party shall be in default in the payment of any amount required to be
paid under the terms of this Agreement, and such default continues for a period of ten
(10) days after written notice from the non-defaulting party;
	 
	 	B.	 	If either party shall be in material default of its obligations under this
Agreement that is reasonably likely to result in a threat to the health and safety of a
Hotel’s employees or guests, then this Agreement may be terminated upon written notice
from the non-defaulting party if such default is not immediately cured;
	 
	 	C.	 	If either party shall be in material default in the performance of its other
obligations under this Agreement, and such default continues for a period of thirty
(30) days after written notice from the non-defaulting party, provided that if such
default cannot by its nature reasonably be cured within such thirty (30) day period, an
event of default shall not occur if and so long as the defaulting party promptly
commences and diligently pursues the curing of such default;
	 
	 	D.	 	If either party shall (i) make an assignment for the benefit of creditors, (ii)
institute any proceeding seeking relief under any federal or state bankruptcy or
insolvency laws, (iii) institute any proceeding seeking the appointment of a receiver,
trustee, custodian or similar official for its business or assets or (iv) consent to
the institution against it of any such proceeding by any other person or entity (an
“Involuntary Proceeding”);
	 
	 	E.	 	If an Involuntary Proceeding shall be commenced against either party and shall
remain undismissed for a period of sixty (60) days;
	 
	 	F.	 	If Owner violates Sections 15.3 or 15.4 hereof, in which case Operator may
terminate this Agreement immediately; or
	 
	 	G.	 	If Operator violates any provision of Article XVII hereof, in which case Owner
may terminate this Agreement immediately.

18.2. Unless otherwise stated in Section 18.1 hereof, if any event of default shall occur, the
non-defaulting party may terminate this Agreement with respect to the applicable Hotel(s) on five
(5) days prior notice to the defaulting party.

18.3. The right of termination set forth in Section 18.2 shall not be in substitution for, but
shall be in addition to, any and all rights and remedies for breach of contract available in law or
at equity.

18.4. Neither party shall be deemed to be in default of its obligations under this Agreement if and
to the extent that such party is unable to perform such obligation as a result of fire or other
casualty, act of God, strike or other labor unrest, unavailability of materials, war, terrorist
activity, riot or other civil commotion or any other cause beyond the control of such party (a
“Force Majeure Event”) (which shall not include the inability of such party to meet its financial
obligations).

31

 

18.5. Each of the parties hereto irrevocably waives any right such party may have against the other
party hereto at law, in equity or otherwise to any consequential damages, punitive damages or
exemplary damages.

18.6. Notwithstanding anything to the contrary contained in this Agreement, if, within thirty (30)
days after receiving Operator’s written request, Owner fails to approve any changes, repairs,
alterations, improvements, renewals or replacements to a Hotel which Operator determines in its
reasonable judgment are necessary to (i) protect such Hotel, Owner and/or Operator from innkeeper
liability exposure, (ii) ensure material compliance with any applicable code requirements
pertaining to life safety systems requirements or (iii) ensure material compliance with any
applicable state, local or federal employment law, including without limitation the Americans with
Disabilities Act, then Operator may terminate this Agreement with respect to such Hotel upon thirty
(30) days’ written notice to Owner delivered at any time after the expiration of Owner’s thirty
(30) day approval period. Owner shall pay to Operator the At-Will Termination Fee (as defined in
Section 19.3) upon any termination of this Agreement pursuant to this Section, which At-Will
Termination Fee shall be due and payable upon the effective date of the termination of this
Agreement with respect to such Hotel.

ARTICLE XIX

TERMINATION OF AGREEMENT

19.1. Upon termination of this Agreement with respect to any individual Hotel, the rights and
obligations of the parties will cease with respect to such Hotel except as to fees and
reimbursements due the Operator and other claims of liabilities of either party which accrued or
arose before the effective date of termination, but shall remain in full force and effect with
respect to all other Hotels. Upon termination of this Agreement for any reason during the Term of
this Agreement, Operator and Owner agree to sign any documents reasonably necessary to effect such
termination or change in management for the applicable Hotel(s) and Owner shall pay to Operator all
amounts due under this Agreement with respect to such Hotel(s) through the effective date of
termination.

19.2. In addition to the other termination rights provided in this Agreement:

     A. Beginning with Fiscal Year 2011, if a Hotel fails to achieve as of the end of any Fiscal
Year (i) actual Gross Operating Profit of at least eighty-seven and one-half percent (87.5%) of the
budgeted Gross Operating Profit for such Hotel for such Fiscal Year, AND (ii) eighty-seven and
one-half percent (87.5%) of such Hotel’s RevPAR Benchmark (collectively, a “Performance Failure”),
subject to clauses (B) and (C) below, Owner may terminate this Agreement with respect to such Hotel
upon sixty (60) days prior written notice to Operator with no termination fee or similar
compensation. The effectiveness of any such notice of termination, however, shall be stayed until
completion of the applicable cure periods set forth in clause (B) below.

     B. Notwithstanding the foregoing:

     (i) If a Performance Failure occurs with respect to a Fiscal Year, but the Hotel

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achieves as of the end of the immediately following Fiscal Year (1) actual Gross Operating Profit
of at least eighty-seven and one-half percent (87.5%) of the budgeted Gross Operating Profit for
such Hotel for such Fiscal Year, OR (2) eighty-seven and one-half percent (87.5%) of such Hotel’s
RevPAR Benchmark, then the Performance Failure shall be deemed cured and Owner shall have no right
to terminate for such Performance Failure (and any notice of termination with respect thereto shall
be deemed null and void).

     (ii) If Owner notifies Operator that Owner elects to terminate this Agreement with respect to
a Hotel for a Performance Failure, Operator shall have a right exercisable no more than two (2)
times per Hotel, in its sole discretion, to cure the Performance Failure by, within thirty (30)
days of receipt of Owner’s termination notice, making a payment to Owner equal to the amount by
which eighty-seven and one-half percent (87.5%) of the budgeted Gross Operating Profit for such
Hotel exceeds actual Gross Operating Profit for such Hotel for such Fiscal Year. In such case,
Owner’s notice of termination shall be deemed null and void. Upon the occurrence of a third
Performance Failure (but subject to clause (B)(i) above), Owner shall have the right to terminate
this Agreement with respect to such Hotel without the payment of a termination fee upon sixty (60)
days prior written notice to Operator.

For purposes hereof:

     “RevPAR Benchmark” means the Hotel’s RevPAR Index for the trailing 12-months ending on
the Commencement Date.

     “RevPAR Index” means the RevPAR Index included in the STR Report produced for the Hotel
by Smith Travel Research or, if Smith Travel Research no longer is in existence at any time
during the Term, the successor of Smith Travel Research or such other industry resource that
is equally as reputable as Smith Travel Research will be substituted, in order to obtain
substantially the same result as would be obtained if Smith Travel Research has not ceased
to be in existence.

     “Competitive Set” for each Hotel means the hotels listed on Exhibit J attached
hereto, or such other hotels as may be reasonably agreed upon by Owner and Operator from
time to time during the Term. The Owner and Operator shall discuss at least once a year,
and upon any major change to an existing hotel in the Competitive Set, the composition of
the Competitive Set. Any changes to a Hotel’s Competitive Set must be mutually agreed upon
by Owner and Operator.

     C. In the event of the occurrence of any Force Majeure Event (as defined below), Owner shall
not be entitled to exercise its termination right under this Section 19.2 with respect to any
period of time in which such Force Majeure Event occurred or is continuing.

19.3. In addition to the other termination rights provided in this Agreement and notwithstanding
anything contained therein to the contrary:

     A. (i) Owner may terminate this Agreement with respect to an individual Hotel upon the sale of
such Hotel to a bona fide unaffiliated third party, so long as (a) Owner provides to

33

 

Operator at least sixty (60) days prior written notice of termination, (b) all amounts due Operator
under this Agreement with respect to such Hotel have been paid in full, and(c) subject to clause
(ii) below, Owner pays Operator the Sale Termination Fee (as defined below) on the effective date
of termination.

          For the purposes of this Section 19.3(A), the “Sale Termination Fee” shall be equal to
an amount which would provide Operator with a thirty percent (30%) Internal Rate of Return (as
defined below) with respect to the following cash flows for such Hotel: (x) the Hotel Allocated
Value (as defined below) as the initial outflow and (y) as inflows, as and when paid to Operator:

(1) fifty percent (50%) of the Basic Fees and Accounting actually collected by
Operator for such terminated Hotel for each Fiscal Year from the date the Hotel was
added to this Agreement through the date of termination of this Agreement with
respect to such Hotel; plus

(2) if for any given Fiscal Year, an Incentive Fee was earned and collected by
Operator under Section 9.3 and the EBITDA Percentage (as defined below) of the
terminated Hotel is above the mean of all the Hotels’ EBITDA Percentage for such
Fiscal Year, fifty percent (50%) of the Incentive Fee allocable to the terminated
Hotel and actually collected by Operator for each Fiscal Year from the date the
Hotel was added to this Agreement through the date of termination of this Agreement
with respect to such Hotel.

The Incentive Fee allocable to the terminated Hotel for each Fiscal Year, if applicable, shall be
calculated by multiplying the actual Incentive Fee, if any, for each Fiscal Year by a fraction, the
numerator of which is the trailing 12-month EBITDA of the terminated Hotel, and the denominator of
which is the aggregate 12-month EBITDA for all Hotels that were covered by this Agreement in
determining the Incentive Fee for the Fiscal Year in question.

     (ii) If Owner and Operator add an Additional Hotel (as defined in Section 24.1) to this
Agreement:

     (a) within nine (9) months following the termination of this Agreement pursuant
to Section 19.3(A)(i) with respect to a Hotel (the “Replacement Window Period”), and

     (b) with an expiration date with respect to such Additional Hotel that is equal
to the original expiration date plus the number of days following commencement of
the Replacement Window Period required by Owner to add the Additional Hotel to this
Agreement,

then the payment of the Sale Termination Fee with respect to such terminated Hotel shall (x) if not
yet paid to Operator, be offset or (y) if paid to Operator, be credited against future Sale
Termination Fees due and payable from Owner. The amount of the offset or credit shall be
determined by multiplying the Sale Termination Fee by a fraction, the numerator of which is the
aggregate projected fifty percent (50%) of Basic Fees and Accounting Fees allocable to the
Additional Hotel

34

 

for the next 12-months and the denominator of which is the aggregate fifty percent (50%) of
projected aggregate Basic Fees and Accounting Fees allocable to the terminated Hotel, for the next
12-months (determined by such terminated Hotel’s Budget). Further, if Owner and Operator add an
Additional Hotel to this Agreement during a time period outside of a Replacement Window Period,
Owner shall receive a credit with respect to future terminations of Hotels subject to the this
Agreement (i.e., those terminated following the addition of such Additional Hotel to this
Agreement) equal for each such Additional Hotel to the present value of the aggregate fifty percent
(50%) of projected Basic Fees and Accounting Fees allocable to the Additional Hotel, discounted at
a rate of thirty percent (30%). Projected Basic Fees for an Additional Hotel shall be calculated
by multiplying (i) the mean of the actual Total Revenues of such Additional Hotel for the prior
three (3) Fiscal Years by (ii) the Basic Fee set forth in Section 9.1 hereof, and increasing such
product by the CPI. Projected Accounting Fees for an Additional Hotel shall be the Accounting Fee
set forth in Section 9.2 hereof multiplied by twelve (12).

     B. In addition, and notwithstanding anything contained in this Agreement to the contrary,
Owner may terminate this Agreement with respect to up to five (5) Hotels during any Fiscal Year,
with or without cause, so long as (i) Owner provides to Operator at least sixty (60) days prior
written notice of termination, (ii) all amounts due Operator under this Agreement with respect to
such Hotels have been paid in full, and (iii) Owner pays Operator the At Will Termination Fee (as
defined below) on the effective date(s) of termination. For the purposes of this Section 19.3(B),
the “At Will Termination Fee” shall be equal to the Sale Termination Fee; provided, however, solely
for the first (5) terminations with respect a Hotel, if the effective date of such termination
occurs on or before the end of the eighteenth (18th) month following the Commencement Date, the
Internal Rate of Return (as defined below) in such calculation shall be twenty percent (20%)
instead of thirty percent (30%).

     C. For the purposes of this Agreement:

     (i) “EBITDA Percentage” for any period shall mean EBITDA for such period divided by
Total Revenues for such period.

     (ii) “Hotel Allocated Value” shall mean the dollar amount set forth on Exhibit
K with respect to each Hotel.

     (iii) “Internal Rate of Return” shall mean the internal rate of return calculated for a
stream of payments using the XIRR function on Microsoft Excel.

19.4. Operator and Owner agree that upon termination, there may be certain adjustments to the final
accounting for which information may not be available at the time of the final accounting and the
parties agree to readjust such amounts and make the required cash adjustments when such information
becomes available; provided, however, but subject to the provisions of Article XXIII hereof, all
accounts shall be deemed final ninety (90) days after termination of the Agreement.

19.5. Operator shall release to Owner any of Owner’s funds and accounts controlled by Operator,
except as stated herein.

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19.6. With the exception of employment records, Operator shall provide or make available to Owner
all books and records with respect to a Hotel upon termination of this Agreement with respect to
such Hotel.

19.7. To the extent permitted by applicable laws, Operator shall cooperate with Owner to assign any
permits or licenses to Owner or the subsequent manager or owner; provided that (i) Owner give
Operator sufficient time to effect such transfers; (ii) Owner shall cooperate and require that the
new manager and/or owner to cooperate with Operator with respect to such transfers; (iii) Owner
shall pay or reimburse any costs or expenses, including reasonable attorney fees, incurred by
Operator in connection with these efforts.

19.8. All software and hardware, used at the Hotel which is owned, licensed or proprietary to
Operator or its affiliated companies shall remain the exclusive property of Operator. Operator
shall have the right to remove such software and hardware, and Owner access to any proprietary
systems without compensation to Owner. Owner assumes all liability and shall indemnify Operator if
Owner uses illegally licensed software.

19.9. Intentionally Deleted.

19.10. Owner shall cause the succeeding employer to hire a sufficient number of employees at the
Hotel to avoid the occurrence of a “closing” under the WARN Act and shall otherwise comply with its
obligations under Section 4.3 hereof, or shall provide Operator with sufficient notice of
termination to allow Operator to comply with the WARN Act and avoid any liability thereunder.

ARTICLE XX

ASSIGNMENT

20.1. Operator shall not assign or pledge this Agreement without the prior written consent of
Owner; provided that, Operator may, without the consent of Owner, assign this Agreement to (a) any
entity controlling, controlled by or under common control with Operator (control being deemed to
mean the ownership of fifty percent (50%) or more of the stock or other beneficial interest in such
entity and/or the power to direct the day-to-day operations of such entity); (b) any entity which
is the successor by merger, consolidation or reorganization of Operator or Operator’s general
partner, managing member or parent corporation or (c) the purchaser of all or substantially all of
the hotel management business of Operator or Operator’s general partner, managing member or parent
corporation, unless any such assignment results in a Change in Control of Operator or Interstate
Hotels & Resorts, Inc. (“IHR”). For purposes of this Agreement, a “Change in Control” of Operator
or IHR shall mean a change of fifty percent (50%) or more of the voting control of Operator or IHR,
in a single transaction or series of transactions constituting a single transaction (unless arising
from the issuance in an underwritten public offering by IHR of voting stock or instruments
convertible into voting stock) that, within six (6) months following the closing of such
transaction, results in (i) a change in a majority of the members of the Board of Directors of IHR
and (ii) at the direction of such newly constituted Board of Directors, a substantial change in the
identity of the operating team responsible for the portfolio of Hotels owned by Owner and operated
under this Agreement. If Operator assigns this Agreement under subsection (a), (b) or (c) above
and such

36

 

assignment results in a Change in Control of Operator or IHR, then Owner, as its sole remedy, shall
have the right to terminate this Agreement upon at least sixty (60) days’ prior written notice to
Operator and upon any such termination, Operator shall not be entitled to any termination fee or
similar compensation. If Operator assigns this Agreement under subsection (a), (b) or (c) above
and such assignment does not result in a Change in Control of Operator or IHR, and such assignee
agrees in writing to be bound by this Agreement and assumes in writing all of Operator’s
obligations under this Agreement from and after the effective date of such assignment, Owner agrees
to attorn to the assignee.

     Nothing in this Agreement shall prohibit or be deemed to prohibit any pledge by Operator of
the Basic Fee, Incentive Fee or any other amounts received by Operator under this Agreement to any
lender as collateral security for debt of Operator and/or Operator’s affiliates.

20.2. Owner shall not assign or pledge this Agreement without the prior written consent of
Operator; provided that, Owner may assign this Agreement without Operator’s consent to any person
or entity acquiring Owner’s leasehold interest and/or Land Holder’s fee or leasehold interest in a
Hotel as of the effective date of such acquisition if (a) Owner provides Operator with thirty (30)
days prior written notice of such assignment, and (b) such assignee agrees in writing to be bound
by this Agreement and assumes in writing all of Owner’s obligations under this Agreement from and
after the effective date of such assignment.

20.3. Upon any permitted assignment of this Agreement and the assumption of this Agreement by the
assignee, the assignor shall be relieved of any obligation or liability under this Agreement
arising after the effective date of the assignment.

ARTICLE XXI

NOTICES

21.1. Any notice, statement or demand required to be given under this Agreement shall be in
writing, sent by certified mail, postage prepaid, return receipt requested, or by facsimile
transmission, receipt electronically or verbally confirmed, or by nationally-recognized overnight
courier, receipt confirmed, addressed if to:

			
	                    Owner:	 	c/o Summit Hotel Properties, Inc.

2701 S. Minnesota, Suite 6

Sioux Falls, SD 57105

Attention: Dan Hansen

Facsimile No.: (605) 362-9388

				
	                              With copies to:	 	
 

 

 

 
	 

			
	                    and Operator:	  	Interstate Management Company, LLC

37

 

			
	                                             	 	c/o Interstate Hotels & Resorts, Inc.

4501 N. Fairfax Drive, Suite 500

Arlington, VA 22203

Attention: Executive Vice President and General Counsel

Facsimile No.: (703) 542-0965

or to such other addresses as Operator and Owner shall designate in the manner provided in this
Section 21.1. Any notice or other communication shall be deemed given (a) on the date three (3)
business days after it shall have been mailed, if sent by certified mail, (b) on the business day
it shall have been sent by facsimile transmission (unless sent on a non-business day or after
business hours in which event it shall be deemed given on the following business day), or (c) on
the date received if it shall have been given to a nationally-recognized overnight courier service.

ARTICLE XXII

SUBORDINATION; ESTOPPELS; RECOGNITION

22.1. Operator acknowledges and agrees that its rights under this Agreement are subject and
subordinate to the lien of any first mortgage or deed of trust loan, or any junior mortgage or deed
of trust loan held by an institutional investor, encumbering one or more Hotels whether now or
hereafter existing; provided, however, that (i) Operator shall not be obligated to waive or forbear
from receiving, on a current basis and as and when due under this Agreement, any and all fees due
to it under this Agreement prior to an event of default under any such mortgage or deed of trust
and (ii) Operator shall not be obligated to waive, or to forbear from exercising (unless and to the
extent Operator receives adequate assurance, in Operator’s good faith business judgment, that it
will be paid or reimbursed for any and all amounts due to Operator under this Agreement during the
period of any such forbearance, which period will not exceed 60 days in any event) any right it may
have to terminate this Agreement pursuant to Article 18 above. The provisions of this Section 22.1
shall be self operative but Operator agrees to execute and deliver promptly any document or
certificate containing such other terms as may be customary and reasonable confirming such
subordination as Owner or the holder of any such lien may reasonably request.

22.2. If any person or entity making or holding a loan to be secured by a mortgage or deed of trust
encumbering one or more Hotels shall request that Operator agree to modifications of this
Agreement, Operator shall enter into an agreement setting forth such modifications provided that
the same do not adversely affect the rights or obligations of Operator under this Agreement. Such
modifications may include, but shall not be limited to, Operator’s agreement to give simultaneous
notice of, and the opportunity to cure within the applicable cure period set forth herein, any
defaults on the part of Owner to such person or entity.

22.3. Owner and Operator agree that from time to time upon the request of the other party or a
party to a Major Agreement, it shall execute and deliver within ten (10) days after the request a
certificate confirming that this Agreement is in full force and effect, stating whether this
Agreement has been modified and supplying such other information as the requesting party may
reasonably require.

38

 

ARTICLE XXIII

INDEMNIFICATION

23.1. Operator hereby agrees to indemnify, defend and hold Owner (and Owner’s agents, principals,
shareholders, partners, members, officers, directors and employees) harmless from and against all
liabilities, losses, claims, damages, costs and expenses (including, but not limited to, reasonable
attorneys’ fees and expenses) that may be incurred by or asserted against any such party and that
arise from (a) the fraud, willful misconduct or gross negligence of the off-site employees of
Operator or Key Hotel Personnel, (b) the breach by Operator of any provision of this Agreement
caused by the fraud, willful misconduct or gross negligence of the off-site employees of Operator
or Key Hotel Personnel, or (c) any action taken by Operator which is beyond the scope of Operator’s
authority under this Agreement. Owner shall promptly provide Operator with written notice of any
claim or suit brought against it by a third party which might result in such indemnification.
Owner shall cooperate with the Operator or its counsel in the preparation and conduct of any
defense to any such claim or suit.

23.2. Except as provided in Section 23.1, Owner hereby agrees to indemnify, defend and hold
Operator (and Operator’s agents, principals, shareholders, partners, members, officers, directors
and employees) harmless from and against all liabilities, losses, claims, damages, costs and
expenses (including, but not limited to, reasonable attorneys’ fees and expenses; and any
additional tax (excluding any tax that is based on net or gross income of Operator or its
affiliates) and interest and penalties thereon) that may be incurred by or asserted against
Operator and that arise from or in connection with (a) the performance of Operator’s services under
this Agreement, (b) any act or omission (whether or not willful, tortious, or negligent) of Owner
or any third party or (c) or any other occurrence related to the Hotels and/or Operator’s duties
under this Agreement whether arising before, during or after the Term. Operator shall promptly
provide Owner with written notice of any claim or suit brought against it by a third party which
might result in such indemnification. Operator shall cooperate with the Owner or its counsel in
the preparation and conduct of any defense to any such claim or suit.

23.3. Supplementing the provisions of Sections 23.1 and 23.2, if any claim shall be made against
Owner and/or Operator which is based upon a violation or alleged violation of the Employment Laws
(an “Employment Claim”), the Employment Claim shall fall within Operator’s indemnification
obligations under Section 23.1 ONLY IF it is based upon (a) the willful misconduct or gross
negligence of Operator’s off-site employees or Key Hotel Personnel or (b) Operator’s breach of its
obligations under Section 4.6 and shall otherwise fall within Owner’s indemnification obligations
under Section 23.2.

23.4. If any action, lawsuit or other proceeding shall be brought against any party (the
“Indemnified Party”) hereunder arising out of or based upon any of the matters for which such party
is indemnified under this Agreement, such Indemnified Party shall promptly notify the party
required to provide indemnification hereunder (the “Obligor”) in writing (which may be in the form
of email) thereof and Obligor shall promptly assume the defense thereof (including without
limitation the employment of counsel selected by Obligor) unless otherwise agreed to by the parties
as provided herein, such defense to be subject to the consent of the Indemnified Party, which
consent

39

 

shall not be unreasonably withheld (provided, however, by way of illustration and not limitation,
it shall be reasonable for the Indemnified Party to deny consent to any settlement that requires
the Indemnified Party to admit guilt or liability). The Indemnified Party shall cooperate with the
Obligor in the defense of any such action, lawsuit or proceeding, on the condition that the Obligor
shall reimburse the Indemnified Party for any out-of-pocket costs and expenses incurred in
connection therewith. The Obligor shall have the right to negotiate settlement or consent to the
entry of judgment with respect to the matters indemnified hereunder; provided, however, that if any
such settlement or consent judgment contemplates any action or restraint on the part of the
Indemnified Party, then such settlement or consent judgment shall require the written consent of
the Indemnified Party, which consent shall not be unreasonably withheld. In addition to the
foregoing, the Indemnified Party shall have the right (at its own expense) to employ separate
counsel in any such action and to participate in the defense thereof. An Indemnified Party may
settle any action on its own behalf (i.e., with respect to its own liability and with no
requirement of Obligor to admit guilt or liability) only with the prior written consent of Obligor,
which consent shall not be unreasonably withheld (provided, however, by way of illustration and not
limitation, it shall be reasonable for Obligor to deny consent to any settlement that requires
Obligor to expend funds in an amount Obligor determines in good faith is inappropriate so long as
the Indemnified Party remains adequately protected at all times). In the event that Obligor fails
to use reasonable efforts to defend or compromise any action, lawsuit or other proceeding for which
an Indemnified Party is indemnified hereunder or as the parties may agree, the Indemnified Party
may, at Obligor’s expense and without limiting Obligor’s liability under the applicable indemnity,
assume the defense of such action and the Obligor shall pay the charges and expenses of such
attorneys and other persons on a current basis within thirty (30) days of submission of invoices or
bills therefor. In the event the Obligor is Owner and Owner neglects or refuses to pay such
charges, Operator may pay such charges out of the Agency Account and deduct such charges from any
amounts due Owner, or add such charges to any amounts due Operator from Owner under this Agreement.
If Operator is the Obligor and Operator neglects or refuses to pay such charges, the amount of such
charges shall be deducted from any amounts due Operator under this Agreement.

23.5. The provisions of this Article shall survive the termination of this Agreement with respect
to acts, omissions and occurrences arising during the Operating Term.

ARTICLE XXIV

MISCELLANEOUS

24.1. In the event that Operator and Owner desire to add a Hotel to this Agreement after the date
of this Agreement (an “Additional Hotel”), such Hotel shall become subject to the terms of this
Agreement upon the date of execution by Operator and Owner of a Joinder and Amendment Agreement in
the form of Exhibit L attached hereto and made a part hereof.

24.2. Owner and Operator shall execute and deliver all other appropriate supplemental agreements
and other instruments, and take any other action necessary to make this Agreement fully and legally
effective, binding, and enforceable as between them and as against third parties; provided,
however, that neither party shall be required to execute any other document or instrument or
perform any other action that would materially increase its liability or decrease its rights under
this Agreement.

40

 

24.3. This Agreement constitutes the entire agreement between the parties relating to the subject
matter hereof, superseding all prior agreements or undertakings, oral or written. Owner
acknowledges that in entering into this Agreement, Owner has not relied on any projection of
earnings, statements as to the possibility of future success, or other similar matter which may
have been prepared by Operator.

24.4. The headings of the titles to the articles of this Agreement are inserted for convenience
only and are not intended to affect the meaning of any of the provisions hereof.

24.5. A waiver of any of the terms and conditions of this Agreement may be made only in writing and
shall not be deemed a waiver of such terms and conditions on any future occasion.

24.6. This Agreement shall be binding upon and inure to the benefit of Owner and Operator and their
respective successors and permitted assigns.

24.7. This Agreement shall be construed, both as to its validity and as to the performance of the
parties, in accordance with the laws of the state of Maryland without reference to its conflict of
laws provisions.

24.8. This Agreement may be executed in any number of counterparts each of which shall, when
executed, be deemed to be an original and all of which shall be deemed to be one and the same
instrument. Signatures on this Agreement delivered by facsimile shall be deemed to be original
signatures for all purposes of this Agreement.

24.9. Any capitalized terms used within this Agreement which were not defined in this Agreement
shall have the same meanings given to such terms in the Master Agreement.

ARTICLE XXV

SPECIAL FRANCHISE/LICENSE AGREEMENT PROVISIONS

So long as any Hotel is subject to a Franchise Agreement with Holiday Inn or another member of the
InterContinental Hotels Group (“IHG”), the following applies solely with respect to such Hotel(s)
and their respective Franchise Agreements:

     (1) Operator agrees to accept, abide by and be subject to all rules, regulations, inspections
and requirements of Holiday Inn and/or IHG.

     (2) If the Franchise Agreement shall terminate, the Operator shall cease to operate such Hotel
as a Holiday Inn Express Hotel or Holiday Inn Hotel, as the case may be.

     (3) If there is any conflict between the terms of this Agreement and the terms of the
Franchise Agreement, the terms of the Franchise Agreement shall govern and control.

     (4) Notwithstanding the consent of Holiday Inn and IHG to this Agreement, Owner and

41

 

all guarantors shall remain liable to Holiday Inn and/or IHG under the terms of Franchise
Agreement.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

42

 

     IN WITNESS WHEREOF, Operator and Owner have duly executed this Agreement the day and year
first above written.

	 	 	 	 	 
	 	[OWNER]

[INSERT LIST OF OWNER ENTITIES TO SIGN]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 
	 	INTERSTATE MANAGEMENT COMPANY, LLC
 	 
	 	By:  	Interstate Operating Company, L.P., member 	 
	 
	 	 	By:  	Interstate Hotels & Resorts, Inc., general partner 	 
	 
	 	 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

43

 

EXHIBIT A

List of Hotels, Owners (Lessees) and Land Holders

See attached

44

 

EXHIBIT B

Buildings

See attached

45

 

EXHIBIT C

Existing Credit Card Vendor Contracts

1) Chase Merchant Services

2) First National Bank of Omaha

46

 

EXHIBIT D

Operator’s Current Severance Payment Policy

See attached

47

 

EXHIBIT E

Transition Budget

See attached for Transition Budget Per Hotel

48

 

EXHIBIT F

Centralized Services List

See attached for List per Hotel

49

 

EXHIBIT G

Example of Calculation of Incentive Fee

and Incentive Fee Threshold

50

 

EXHIBIT H

Insurance Amounts

51

 

EXHIBIT I

Existing Operated Hotels

52

 

EXHIBIT J

Competitive Sets

See attached

53

 

EXHIBIT K

Hotel Allocated Value List

	 	 	 	 	 	 	 
	Hotel	 	City	 	State	 	Allocated Value
	 
	 	 	 	 	 	 

54

 

EXHIBIT L

FORM OF JOINDER AND AMENDMENT TO

AMENDED AND RESTATED HOTEL MANAGEMENT AGREEMENT

      The undersigned Operator and Owner hereby agree that, as of the date set forth
below:

     (1) Owner and Operator are parties to an Amended and Restated Hotel Management Agreement,
dated as of _____________, 2010 (the “Management Agreement”). Owner and Operator desire to amend
the Management Agreement to include the hotel property set forth on Schedule I attached
hereto (the “Additional Hotel”).

     (3) Exhibit A and Exhibit K to the Management Agreement shall be amended to
include the Additional Hotel, and the Additional Hotel shall be a “Hotel” under the Management
Agreement.

     (4) Owner and Operator shall be bound by the terms of the Management Agreement with respect to
the Additional Hotel.

     (5) This Joinder may be executed in several counterparts, each of which shall be deemed an
original, and all such counterparts together constitute one and the same instrument. For the
purpose of this Joinder, facsimile signatures shall be deemed originals.

[Remainder of page intentionally left blank]

55

 

     IN WITNESS WHEREOF, Operator and Owner have duly executed this Joinder as of the _____ day of
______________, 20__.

	 	 	 	 	 
	 	OWNER:

[List of Owners (lessees)]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 
	 	OPERATOR:

INTERSTATE MANAGEMENT COMPANY, L.L.C.
 	 
	 	By:  	Interstate Operating Company, L.P., member 	 
	 
	 	By:  	Interstate Hotels & Resorts, Inc., general partner 	 
	 
	 	 	By:  
	 
	 	 	Name:  
	 
	 	 	Title:  
	 
	 

56

 

SCHEDULE I TO THE JOINDER AGREEMENT

ADDITIONS TO EXHIBIT A AND EXHIBIT K TO

AMENDED AND RESTATED HOTEL MANAGEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Owner Entity	 	Land Holder Entity	 	Hotel	 	City	 	State
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     Hotel Allocated Value: $_________________

57

 

SCHEDULE 15.5

Franchise Defaults

1) Notice of Default received from Marriott on 8/20/2010 related to the Fairfield Inn, Emporia,
Kansas.

2) Notice of Red Zone Status received from Marriott on 8/20/2010 related to the Fairfield Inn,
Salina, Kansas.

3) Notice of Red Zone Status received from Marriott on 8/20/2010 related to the Residence Inn,
Germantown, Tennessee.

4) Cure of Default and Continuing Red 2 Status received from Marriott on 2/19/2010 related to the
SpringHill Suites, Nashville, Tennessee.

5) Cure of Default and Continuing Red 2 Status received from Marriott on 2/19/2010 related to the
Courtyard, Memphis, Tennessee.

6) Red Zone/Unacceptable notice received from Hilton on May 27, 2010 related to the Hampton Inn, Denver, Colorado.

58exv10w14

Exhibit 10.14

FORM OF

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the _____ day of
__________, 20____, by and between Summit Hotel Properties, Inc., a Maryland corporation (the
“Company”), and ________________________ (“Indemnitee”).

     WHEREAS, at the request of the Company, Indemnitee currently serves as [a director] [and] [an
officer] of the Company and may, therefore, be subjected to claims, suits or proceedings arising as
a result of his service; and

     WHEREAS, as an inducement to Indemnitee to continue to serve as [a director] [and] [an
officer], the Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent
permitted by law; and

     WHEREAS, the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Definitions. For purposes of this Agreement:

    (a) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to,
joint ventures, limited liability companies and partnerships). For this purpose, the term
“control” (including the correlative meanings of the terms “controlled by” and “under common
control with”) shall mean ownership, directly or indirectly, of 50% or more of the total
combined voting power of all classes of voting securities issued by such entity, or the
possession, directly or indirectly, of the power to direct the management and policies of
such entity, by contract or otherwise.

    (b) “Change in Control” has the same meaning as such term is defined in the Company’s
2010 Equity Incentive Plan.

    (c) “Corporate Requested Status” means the status of a person as a present or former
director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent
of any other Entity (as defined herein) that such person is or was serving in such capacity
at the request of the Company. As a clarification and without limiting the circumstances in
which Indemnitee may be serving at the request of the Company, service by Indemnitee shall
be deemed to be at the request of the Company if Indemnitee serves or served as a director,
trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any
Entity (i) of which a majority of the voting power or equity interest is owned directly or
indirectly by the Company or (ii) the management of which is controlled directly or
indirectly by the Company.

 

 

    (d) “Corporate Status” means the status of a person as a present or former director,
officer, employee or agent of the Company or as a director, trustee, officer, partner,
manager, managing member, fiduciary, employee or agent of any other Entity that such person
is or was serving in such capacity at the request of the Company. As a clarification and
without limiting the circumstances in which Indemnitee may be serving at the request of the
Company, service by Indemnitee shall be deemed to be at the request of the Company if
Indemnitee serves or served as a director, trustee, officer, partner, manager, managing
member, fiduciary, employee or agent of any corporation, real estate investment trust,
partnership, limited liability company, joint venture, trust, employee benefit plan or other
enterprise (i) of which a majority of the voting power or equity interest is owned directly
or indirectly by the Company or (ii) the management of which is controlled directly or
indirectly by the Company.

    (e) “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification and/or advance of Expenses is
sought by Indemnitee.

    (f) “Effective Date” means the date set forth in the first paragraph of this Agreement.

    (g) “Entity” means any foreign or domestic corporation, real estate investment trust,
partnership, limited liability company, joint venture, trust, employee benefit plan or other
enterprise.

    (h) “Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and
costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a
result of the actual or deemed receipt of any payments under this Agreement, ERISA excise
taxes and penalties and any other disbursements or expenses incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing
to be a witness in or otherwise participating in a Proceeding. Expenses shall also include
Expenses incurred in connection with any appeal resulting from any Proceeding including,
without limitation, the premium, security for and other costs relating to any cost bond,
supersedeas bond or other appeal bond or its equivalent.

    (i) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither is, nor in the past five years has
been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning Indemnitee under this Agreement or
of other indemnitees under similar indemnification agreements), or (ii) any other party to
or participant or witness in the Proceeding giving rise to a claim for indemnification or
advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

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    (j) “Proceeding” means any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or
any other proceeding, whether brought by or in the right of the Company or otherwise and
whether of a civil (including intentional or unintentional tort claims), criminal,
administrative or investigative (formal or informal) nature, including any appeal therefrom,
except one pending or completed on or before the Effective Date, unless otherwise
specifically agreed in writing by the Company and Indemnitee. If Indemnitee reasonably
believes that a given situation may lead to or culminate in the institution of a Proceeding,
such situation shall also be considered a Proceeding.

     Section 2. Services by Indemnitee. Indemnitee will serve as [a director] [and] [an
officer] of the Company. However, this Agreement shall not impose any independent obligation on
Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall
not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

     Section 3. General. The Company shall indemnify, and advance Expenses to, Indemnitee
(a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law
in effect on the Effective Date and as amended from time to time; provided, however, that no change
in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder
based on Maryland law as in effect on the Effective Date. The rights of Indemnitee provided in
this Section 3 shall include, without limitation, the rights set forth in the other sections of
this Agreement, including any additional indemnification permitted by Section 2-418(g) of the
Maryland General Corporation Law (the “MGCL”).

     Section 4. Standard for Indemnification. If, by reason of Indemnitee’s Corporate
Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall
indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all
Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with any such Proceeding unless it is established that (a) the act or omission of Indemnitee was
material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was
the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper
personal benefit in money, property or services or (c) in the case of any criminal Proceeding,
Indemnitee had reasonable cause to believe that his conduct was unlawful.

     Section 5. Certain Limits on Indemnification. Notwithstanding any other provision of
this Agreement (other than Section 6), Indemnitee shall not be entitled to:

    (a) indemnification hereunder if the Proceeding was one by or in the right of the
Company and Indemnitee is adjudged to be liable to the Company;

    (b) indemnification hereunder if Indemnitee is adjudged to be liable on the basis that
personal benefit was improperly received in any Proceeding charging improper personal
benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status;
or

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    (c) indemnification or advance of Expenses hereunder if the Proceeding was brought by
Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this
Agreement, and then only to the extent in accordance with and as authorized by Section 12 of
this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders
entitled to vote generally in the election of directors or of the Board of Directors or an
agreement approved by the Board of Directors to which the Company is a party expressly
provide otherwise.

     Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of this
Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as
the court shall require, may order indemnification of Indemnitee by the Company in the following
circumstances:

    (a) if such court determines that Indemnitee is entitled to reimbursement under Section
2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee
shall be entitled to recover the Expenses of securing such reimbursement; or

    (b) if such court determines that Indemnitee is fairly and reasonably entitled to
indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has
met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been
adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the
MGCL, the court may order such indemnification as the court shall deem proper. However,
indemnification with respect to any Proceeding by or in the right of the Company or in which
liability shall have been adjudged in the circumstances described in Section 2-418(c) of the
MGCL shall be limited to Expenses.

     Section 7. Indemnification for Expenses of an Indemnitee Who is Wholly or Partially
Successful. Notwithstanding any other provision of this Agreement, and without limiting any
such provision, to the extent that Indemnitee was or is, by reason of his Corporate Status, made a
party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or
otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably
incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or
matter, allocated on a reasonable and proportionate basis. For purposes of this Section 7 and,
without limitation, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

     Section 8. Advance of Expenses for Indemnitee. If, by reason of Indemnitee’s
Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the
Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement
to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of
Indemnitee in connection with such Proceeding within ten days after the receipt by the Company of a
statement or statements requesting such advance or advances from time to time, whether

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prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Company as authorized by law and by this
Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially
the form attached hereto as Exhibit A or in such form as may be required under applicable
law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses
advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall
ultimately be established that the standard of conduct has not been met by Indemnitee and which
have not been successfully resolved as described in Section 7 of this Agreement. To the extent
that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the
Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The
undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of
Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such
advanced Expenses and without any requirement to post security therefor.

     Section 9. Indemnification and Advance of Expenses as a Witness or Other Participant.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be,
by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any
Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a
party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith
within ten days after the receipt by the Company of a statement or statements requesting any such
advance or indemnification from time to time, whether prior to or after final disposition of such
Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee.

     Section 10. Procedure for Determination of Entitlement to Indemnification.

    (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including therein or therewith such documentation and information
as is reasonably available to Indemnitee and is reasonably necessary to determine whether
and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or
more such requests from time to time and at such time(s) as Indemnitee deems appropriate in
Indemnitee’s sole discretion. The officer of the Company receiving any such request from
Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the
Board of Directors in writing that Indemnitee has requested indemnification.

    (b) Upon written request by Indemnitee for indemnification pursuant to Section 10(a)
above, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control
shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors,
a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be
selected by the Indemnitee and approved by the Board of Directors in accordance with Section
2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably

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withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of
Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a
quorum cannot be obtained, then by a majority vote of a duly authorized committee of the
Board of Directors consisting solely of one or more Disinterested Directors, (B) if
Independent Counsel has been selected by the Board of Directors in accordance with Section
2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which approval shall not be
unreasonably withheld, by Independent Counsel, in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by a
majority of the members of the Board of Directors, by the stockholders of the Company. If
it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee
shall be made within ten days after such determination. Indemnitee shall cooperate with the
person, persons or entity making such determination with respect to Indemnitee’s entitlement
to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination in the discretion of the Board of Directors or Independent
Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred
by Indemnitee in so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless
therefrom.

    (c) The Company shall pay the reasonable fees and expenses of Independent Counsel, if
one is appointed.

     Section 11. Presumptions and Effect of Certain Proceedings.

    (a) In making any determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a
request for indemnification in accordance with Section 10(a) of this Agreement, and the
Company shall have the burden of proof to overcome that presumption in connection with the
making of any determination contrary to that presumption.

    (b) The termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, upon a plea of nolo contendere or its equivalent,
or entry of an order of probation prior to judgment, does not create a presumption that
Indemnitee did not meet the requisite standard of conduct described herein for
indemnification.

    (c) The knowledge and/or actions, or failure to act, of any other director, officer,
employee or agent of the Company or any other director, trustee, officer, partner, manager,
managing member, fiduciary, employee or agent of any other Entity shall not be imputed to
Indemnitee for purposes of determining any other right to indemnification under this
Agreement.

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     Section 12. Remedies of Indemnitee.

    (a) If (i) a determination is made pursuant to Section 10(b) of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses
is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 10(b) of this
Agreement within 60 days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement
within ten days after receipt by the Company of a written request therefor, or (v) payment
of indemnification pursuant to any other section of this Agreement or the charter or Bylaws
of the Company is not made within ten days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication
in an appropriate court located in the State of Maryland, or in any other court of competent
jurisdiction, of Indemnitee entitlement to such indemnification or advance of Expenses.
Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be
conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the
American Arbitration Association. Indemnitee shall commence a proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which
Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a);
provided, however, that the foregoing clause shall not apply to a proceeding brought by
Indemnitee to enforce his rights under Section 7 of this Agreement. Except as set forth
herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall
apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any
such adjudication or award in arbitration.

    (b) In any judicial proceeding or arbitration commenced pursuant to this Section 12,
Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as
the case may be, under this Agreement and the Company shall have the burden of proving that
Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be.
If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12,
Indemnitee shall not be required to reimburse the Company for any advances pursuant to
Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s
entitlement to indemnification (as to which all rights of appeal have been exhausted or
lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12
that the procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator that the
Company is bound by all of the provisions of this Agreement.

    (c) If a determination shall have been made pursuant to Section 10(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to this Section
12, absent a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with
the request for indemnification.

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    (d) In the event that Indemnitee, pursuant to this Section 12, seeks a judicial
adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from
the Company, and shall be indemnified by the Company for, any and all Expenses actually and
reasonably incurred by him in such judicial adjudication or arbitration. If it shall be
determined in such judicial adjudication or arbitration that Indemnitee is entitled to
receive part but not all of the indemnification or advance of Expenses sought, the Expenses
incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be
appropriately prorated.

    (e) Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to
be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated
Code of Maryland for amounts which the Company pays or is obligated to pay for the period
(i) commencing with either the tenth day after the date on which the Company was requested
to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the
60th day after the date on which the Company was requested to make the
determination of entitlement to indemnification under Section 10(b) of this Agreement, as
applicable, and (ii) ending on the date such payment is made to Indemnitee by the Company.

     Section 13. Defense of the Underlying Proceeding.

    (a) Indemnitee shall notify the Company promptly in writing upon being served with any
summons, citation, subpoena, complaint, indictment, request or other document relating to
any Proceeding which may result in the right to indemnification or the advance of Expenses
hereunder and shall include with such notice a description of the nature of the Proceeding
and a summary of the facts underlying the Proceeding. The failure to give any such notice
shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right
of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the
Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance
policy is materially and adversely prejudiced thereby, and then only to the extent the
Company is thereby actually so prejudiced.

    (b) Subject to the provisions of the last sentence of this Section 13(b) and of Section
13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which
may give rise to indemnification hereunder; provided, however, that the Company shall notify
Indemnitee of any such decision to defend within 15 calendar days following receipt of
notice of any such Proceeding under Section 13(a) above. The Company shall not, without the
prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed,
consent to the entry of any judgment against Indemnitee or enter into any settlement or
compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as
an unconditional term thereof, the full release of Indemnitee from all liability in respect
of such Proceeding, which release shall be in form and substance reasonably satisfactory to
Indemnitee or (iii) would impose any Expense, judgment, fine, penalty or limitation on
Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under
Section 12 of this Agreement.

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    (c) Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
concludes, based upon an opinion of counsel approved by the Company, which approval shall
not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to
assert with respect to any issue which may not be consistent with other defendants in such
Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved
by the Company, which approval shall not be unreasonably withheld, that an actual or
apparent conflict of interest or potential conflict of interest exists between Indemnitee
and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a
timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of
Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not
be unreasonably withheld, at the expense of the Company. In addition, if the Company fails
to comply with any of its obligations under this Agreement or in the event that the Company
or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be
provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of
Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not
be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this
Agreement), to represent Indemnitee in connection with any such matter.

     Section 14. Non-Exclusivity; Survival of Rights; Subrogation.

    (a) The rights of indemnification and advance of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the charter or Bylaws of the Company, any agreement or a
resolution of the stockholders entitled to vote generally in the election of directors or of
the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee, no
amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or
restrict any right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal, regardless of whether a claim with respect to such action or inaction is raised
prior or subsequent to such amendment, alteration or repeal. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every other right or
remedy shall be cumulative and in addition to every other right or remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion of any right or
remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of
any other right or remedy.

    (b) In the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce
such rights.

     Section 15. Insurance. The Company will use its reasonable best efforts to acquire
directors and officers liability insurance, on terms and conditions deemed appropriate by the

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Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against
Indemnitee by reason of his Corporate Status and covering the Company for any indemnification or
advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by
reason of his Corporate Status. Without in any way limiting any other obligation under this
Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the
amount of any deductible or retention and the amount of any excess of the aggregate of all
judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a
Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase,
establishment and maintenance of any such insurance shall not in any way limit or affect the rights
or obligations of the Company or Indemnitee under this Agreement except as expressly provided
herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall
not in any way limit or affect the rights or obligations of the Company under any such insurance
policies. If, at the time the Company receives notice from any source of a Proceeding to which
Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and
officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to
the insurers in accordance with the procedures set forth in the respective policies.

     Section 16. Coordination of Payments.

    (a) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise.

    (b) The Indemnitee hereby acknowledges that for any claims made against Indemnitee by
reason of his or her Corporate Requested Status that the Company is not the indemnitor of
first resort (i.e., Indemnitee shall request indemnification and/or advancement of Expenses
from such other Entity prior to seeking indemnification and/or advancement of Expenses from
the Company). The Company’s obligations to advance Expenses or to provide indemnification
for the Expenses or liabilities incurred by Indemnitee by reason of his Corporate Requested
Status shall be secondary. No advancement or payment by the Company on behalf of Indemnitee
with respect to any claim for which Indemnitee has sought indemnification from any other
Entity shall affect the foregoing and the Company shall have a right of contribution and/or
be subrogated to the full extent of such advancement or payment to all of the rights of
recovery of Indemnitee against any such Entity.

     Section 17. Reports to Stockholders. To the extent required by the MGCL, the Company
shall report in writing to its stockholders the payment of any amounts for indemnification of, or
advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the
right of the Company with the notice of the meeting of stockholders of the Company next following
the date of the payment of any such indemnification or advance of Expenses or prior to such
meeting.

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     Section 18. Duration of Agreement; Binding Effect.

    (a) This Agreement shall continue until and terminate on the later of (i) the date that
Indemnitee shall have ceased to serve as a director, officer, employee or agent of the
Company or as a director, trustee, officer, partner, manager, managing member, fiduciary,
employee or agent of any other Entity that such person is or was serving in such capacity at
the request of the Company and (ii) the date that Indemnitee is no longer subject to any
actual or possible Proceeding (including any rights of appeal thereto and any Proceeding
commenced by Indemnitee pursuant to Section 12 of this Agreement).

    (b) The indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto and their
respective successors and assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business or assets of
the Company), shall continue as to an Indemnitee who has ceased to be a director, officer,
employee or agent of the Company or a director, trustee, officer, partner, manager, managing
member, fiduciary, employee or agent of any other Entity that such person is or was serving
in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee
and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other
legal representatives.

    (c) The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

    (d) The Company and Indemnitee agree that a monetary remedy for breach of this
Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and
further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the
parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief
and/or specific performance hereof, without any necessity of showing actual damage or
irreparable harm and that by seeking injunctive relief and/or specific performance,
Indemnitee shall not be precluded from seeking or obtaining any other relief to which
Indemnitee may be entitled. Indemnitee shall further be entitled to such specific
performance and injunctive relief, including temporary restraining orders, preliminary
injunctions and permanent injunctions, without the necessity of posting bonds or other
undertakings in connection therewith. The Company acknowledges that, in the absence of a
waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company
hereby waives any such requirement of such a bond or undertaking.

     Section 19. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including, without limitation,
each portion of any Section, paragraph or sentence of this Agreement containing any such provision

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held to be invalid, illegal or unenforceable that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to
the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to
the extent necessary to conform to applicable law and to give the maximum effect to the intent of
the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section, paragraph or sentence of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby.

     Section 20. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence of this
Agreement.

     Section 21. Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     Section 22. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     Section 23. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand
and receipted for by the party to whom said notice or other communication shall have been directed,
on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid,
on the third business day after the date on which it is so mailed:

    (a) If to Indemnitee, to the address set forth on the signature page hereto.

    (b) If to the Company, to:

Summit Hotel Properties, Inc.

2701 S. Minnesota Avenue, Suite 6

Sioux Falls, SD 57105

or to such other address as may have been furnished in writing to Indemnitee by the Company or to
the Company by Indemnitee, as the case may be.

     Section 24. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of
laws rules.

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     Section 25. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	COMPANY:

SUMMIT HOTEL PROPERTIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INDEMNITEE:

 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	Address:  	 	 

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EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To: The Board of Directors of Summit Hotel Properties, Inc.

			
	Re:	 	Affirmation and Undertaking

Ladies and Gentlemen:

     This Affirmation and Undertaking is being provided pursuant to that certain Indemnification
Agreement dated the _____ day of ______________, 20____, by and between Summit Hotel Properties,
Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification
Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description
of Proceeding] (the “Proceeding”).

     Terms used herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement.

     I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged
actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all
times, insofar as I was involved as [a director] [an officer] of the Company, in any of the facts
or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate
dishonesty, (2) did not receive any improper personal benefit in money, property or services and
(3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or
omission by me was unlawful.

     In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and
related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I
hereby agree that if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a) was committed in
bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an
improper personal benefit in money, property or services or (3) in the case of any criminal
proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters
in the Proceeding as to which the foregoing findings have been established.

     IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___ day of
____________________, 20___.

Name: _____________________________

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