Document:

Exhibit 10.14

 

$60,000,000 CREDIT FACILITY

LOAN AGREEMENT

 

Dated as of July 13, 2016

by and among

LVP HOLD CO MEZZ III LLC,

as Borrower,

WESTERN ALLIANCE BANK

for itself, as a Lender and as Agent for all Lenders,

and

THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO

as Lenders

 

     

     

    

 

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	Article 1    THE CREDITS	1
	1.1	Amounts and Terms of Commitments	1
	1.2	[Intentionally Omitted]	1
	1.3	The Revolving Facility	1
	1.4	Extension of Maturity Date	3
	1.5	Other Interest Provisions	4
	1.6	Closing	4
	1.7	Collateral	4
	1.8	Loan Accounts	4
	1.9	Intentionally Omitted	5
	1.10	Intentionally Omitted	5
	1.11	Payments by Borrower	5
	1.12	Payments by the Lenders to Agent; Settlement	7
	1.13	Borrowing Base Valuation	10
	1.14	Cash Management	10
	Article 2     CONDITIONS PRECEDENT	12
	2.1	Closing Conditions Precedent	12
	2.2	Conditions Precedent to Funding Revolving Loans Post-Closing	12
	2.3	Conditions Precedent to Classification as a Borrowing Base Asset	13
	Article 3     REPRESENTATIONS AND WARRANTIES	14
	3.1	Corporate Existence and Power	14
	3.2	Corporate Authorization; No Contravention	14
	3.3	Governmental Authorization	14
	3.4	Binding Effect	14
	3.5	Litigation and Condemnation	15
	3.6	Administrative, Criminal and Governmental Audits and Investigations	15
	3.7	No Default	15
	3.8	ERISA Compliance	15
	3.9	Use of Proceeds; Margin Stock	15
	3.10	Ownership of Property; Liens	15

 

    i

     

    

 

	3.11	Taxes	16
	3.12	Financial Condition	16
	3.13	Regulated Entities	16
	3.14	Solvency	17
	3.15	Labor Relations	17
	3.16	Brokers’ Fees; Transaction Fees	17
	3.17	Ventures, Subsidiaries and Affiliates; Outstanding Stock	17
	3.18	Bonding	17
	3.19	Full Disclosure	17
	3.20	Foreign Assets Control Regulations and Anti-Money Laundering	18
	3.21	Intentionally Omitted	18
	3.22	Bankruptcy and Similar Matters	18
	3.23	Site Conditions, Zoning, Access, and Utilities	18
	3.24	License Agreement	19
	3.25	Management Agreement	19
	3.26	Non-Foreign Status	19
	3.27	Commercial Purpose of Credit Facilities	19
	
        Article
4    AFFIRMATIVE COVENANTS 
	19
	4.1	Accounting Systems; Books and Records	20
	4.2	Financial Reporting	20
	4.3	Certificates; Other Information	21
	4.4	Notices	22
	4.5	Preservation of Corporate Existence, Etc	23
	4.6	The Collateral	23
	4.7	Insurance	24
	4.8	Payment of Obligations	24
	4.9	Compliance with Law	24
	4.10	Anti-Money Laundering; Anti-Terrorism	24
	4.11	Inspection of Property and Books and Records	25
	4.12	Use of Proceeds	25
	4.13	Further Assurances	25
	4.14	[Intentionally Omitted]	25
	4.15	Taxes	25

 

 

 

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	4.16	Casualty	26
	4.17	Condemnation	27
	4.18	License Agreement	28
	4.19	Management Agreement	29
	4.20	Requirement to Operate as Permitted Concept	29
	4.21	Estoppel Certificates	29
	4.22	Financial Covenants	29
	4.23	Credit Party Obligations	30
	4.24	Impounds	30
	4.25	Borrowing Base Additions	31
	4.26	Periodic Appraisals	31
	4.27	Borrowing Base Assets	32
	4.28	Obligations Regarding Representations and Warranties	32
	4.29	Post-Closing Requirements	32
	Article 5   NEGATIVE COVENANTS	32
	5.1	Limitation on Liens	32
	5.2	Disposition of Assets	32
	5.3	Maintenance of Existence; Consolidations and Mergers	33
	5.4	Loans and Investments	34
	5.5	Limitation on Indebtedness	34
	5.6	Transactions with Affiliates	34
	5.7	Management Fees and Compensation	34
	5.8	No Margin Stock	34
	5.9	Contingent Obligations	35
	5.10	No Benefit Plans	35
	5.11	Restricted Payments	35
	5.12	Change in Business	35
	5.13	Change in Structure	35
	5.14	Changes in Accounting	35
	5.15	No Name or Other Organizational Changes	35
	5.16	No Negative Pledges	36
	5.17	Sale-Leasebacks	36
	5.18	License Agreement Modifications and Assignments	36

 

 

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	5.19	The Management Agreement	36
	5.20	Single Purpose Entity Requirements	36
	Article 6  EVENTS OF DEFAULT	37
	6.1	Event of Default	37
	6.2	Remedies	40
	6.3	Rights Not Exclusive	40
	6.4	Late Fees	40
	6.5	No Waiver or Cure	41
	6.6	Full Payment Required	41
	6.7	Credit Bidding	41
	Article 7   AGENT	41
	7.1	Appointment and Duties	41
	7.2	Binding Effect	42
	7.3	Use of Discretion	43
	7.4	Delegation of Rights and Duties	43
	7.5	Reliance and Liability	43
	7.6	Agent Individually	45
	7.7	Lender Credit Decision	45
	7.8	Expenses; Indemnities; Withholding	46
	7.9	Resignation of Agent	47
	7.10	Release of Collateral or Guarantors	47
	7.11	Additional Secured Parties	48
	Article 8   GENERAL PROVISIONS	48
	8.1	Amendments and Waivers	48
	8.2	Notices	50
	8.3	E-Systems and E-Transmissions	51
	8.4	No Waiver; Cumulative Remedies	53
	8.5	Costs and Expenses	53
	8.6	Indemnity	54
	8.7	Marshaling; Payments Set Aside	55
	8.8	Binding Effect	55
	8.9	Assignments and Participations	55
	8.10	Non-Public Information; Confidentiality	58

 

 

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	8.11	Set-off; Sharing of Payments	60
	8.12	Counterparts; Facsimile Signature	61
	8.13	Severability	61
	8.14	Captions	61
	8.15	Independence of Provisions	61
	8.16	Interpretation	61
	8.17	No Third Parties Benefited	62
	8.18	Governing Law	62
	8.19	Jurisdiction and Service of Process	62
	8.20	Waiver of Jury Trial	62
	8.21	Entire Agreement; Release	63
	8.22	Survival	63
	8.23	Limitation of Liability for Certain Damages	63
	8.24	Patriot Act	63
	8.25	Replacement of Lender	64
	8.26	Creditor-Debtor Relationship	64
	8.27	Applicability of General Provisions to the Loan Documents	65
	8.28	Time of the Essence; Time Periods	65
	8.29	Corrections and Insertions	65
	8.30	Transaction Characterization	65
	Article 9    TAXES, YIELD PROTECTION AND ILLEGALITY	65
	9.1	Taxes	65
	9.2	Increased Costs and Reduction of Return; Capital Adequacy Regulation Events	67
	9.3	Funding Losses	68
	9.4	Lender Certificates	68
	Article 10    DEFINITIONS; oTHER INTERPRETIVE PROVISIONS	68
	10.1	Defined Terms	68
	10.2	The Agreement	69
	10.3	Certain Common Terms	69
	10.4	Headings; Singular and Plural	69
	10.5	Performance; Time	69
	10.6	Contracts	70
	10.7	Laws	70
	10.8	Accounting Terms and Principles	70
	10.9	Payments	70

 

  

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SCHEDULES

 

The following Schedules and Tables are
attached to and are an integral part of this Agreement:

 

	 Schedule 1.1	Loan Schedule
	Table 1.3(a) 	Revolving Loan Table
	Schedule 1.3(b)	Form of Revolving Loan Note
	Schedule 1.3(f)	Form of Revolving Loan Borrowing Notice
	Schedule 1.7	Collateral Table
	Schedule 2.1	Closing Conditions Precedent Schedule
	Schedule 2.3	Borrowing Base Addition Schedule
	Schedule 3.17	Organizational Structure Table
	Schedule 3.25	Approved Management Agreements as of the Closing Date
	Schedule 4.3(b)	Compliance Certificate
	Schedule 4.3(c)	Borrowing Base Certificate
	Schedule 4.7	Insurance Requirements Schedule
	Schedule 4.25(a)	Conditional Approval Notice Form
	Schedule 4.25(b)	Borrowing Base Addition Notice Form
	Schedule 4.25(c)	Proposal Package
	Schedule 4.29	Post-Closing Obligations
	Schedule 8.9(c)	Assignment Form
	Schedule 10.1(a)	Terms Defined in Loan Agreement Provisions
	Schedule 10.1(b)	Schedule of Defined Terms

 

 

    vi

     

    

 

LOAN AGREEMENT

 

This LOAN AGREEMENT
(including all exhibits and schedules hereto, as the same may be amended, modified and/or restated from time to time, this “Agreement”)
is entered into as of July 13, 2016, by and among LVP HOLD CO MEZZ III LLC, a Delaware limited liability company (“Borrower”);
and WESTERN ALLIANCE BANK, an Arizona corporation (in its individual capacity,
“Western Alliance Bank”), as Agent for the several financial institutions from time to time party to
this Agreement (collectively, the “Lenders” and individually each a “Lender”)
and for itself as a Lender and such Lenders.

 

Now,
therefore, in consideration of the mutual agreements, provisions and covenants contained herein and other valuable consideration,
the parties hereto agree as follows:

 

Article
1

THE CREDITS

 

1.1             
Amounts and Terms of Commitments. This Agreement and the other Loan Documents contain the terms and conditions applicable
to the loans identified in the following “Credit Facilities Table” (the “Loan”).
Attached as Schedule 1.1 is a Schedule of Loans reflecting each Lender’s share of the Loan (the “Loan
Schedule”).

 

	Credit Facilities Table 
	Loan 	Aggregate Commitment
	Revolving Loans	$60,000,000

 

1.2             
[Intentionally Omitted]

 

1.3             
The Revolving Facility.

 

(a)               
Revolving Loans. Subject to the terms and conditions of this Agreement and in reliance on the representations and
warranties of the Credit Parties contained herein and in the other Loan Documents, each Lender listed in the “Revolving
Loan Table” included as Table 1.3(a) on the Loan Schedule (each, together with any Lender holding Revolving
Loans, a “Revolving Loan Lender”) severally and not jointly agrees to make Loans to Borrower (each such
Loan, a “Revolving Loan”), in an aggregate amount not to exceed at any time outstanding the amount set
forth in the Revolving Loan Table as such Lender’s Revolving Loan Commitment (such Revolving Loan Commitment amount being
referred to herein as such Lender’s “Revolving Loan Commitment”); provided, however,
that, after giving effect to any borrowing of Revolving Loans, the aggregate principal amount of all outstanding Revolving Loans
shall not exceed the Borrowing Base Amount.

 

    	 	1	 

     

    

 

(b)              
Notes. The Revolving Loans made by each Revolving Loan Lender are evidenced by this Agreement and, if requested by
such Lender, a Revolving Loan Note, substantially in the form of Schedule 1.3(b), payable to such Lender in
an amount equal to such Lender’s Revolving Loan Commitment (each, a “Revolving Loan Note”).

 

(c)               
Use of Revolving Loan Proceeds. Borrower agrees to use the proceeds of the Revolving Loans exclusively to (i) repay
Indebtedness of Borrower (or its Subsidiaries), (ii) acquire new properties directly or through its Subsidiaries, (iii) pay for
capital expenditures incurred by Borrower or its Subsidiaries, and (iv) such other uses approved by Agent in its sole and absolute
discretion, all of which are not in contravention of any Requirement of Law and not in violation of this Agreement.

 

(d)              
Repayments and Reborrowings. Subject to the other terms and conditions of this Agreement, amounts borrowed under
this Section 1.3 may be repaid and reborrowed from time to time. No prepayment fee shall be due with respect to repayments
of Revolving Loans.

 

(e)               
Revolving Loan Interest Rate and Payment Provisions.

 

(i)                
Interest Rate. Subject to the terms of Section 1.5, each Revolving Loan shall bear interest on
the outstanding principal amount thereof from the Loan Advance Date for such Revolving Loan at the Variable Rate, such annual rate
to be computed using a 360-day year and charged for actual days elapsed.

 

(ii)              
Payments. Interest on each Revolving Loan shall be paid in arrears on the first day of each calendar month with the
first such payment due on the first day of the month following the date of this Agreement. The entire unpaid principal balance
of each Revolving Loan, together with all accrued and unpaid interest and all other amounts payable pursuant to this Agreement
and the other Loan Documents with respect to the Revolving Loans will be due and payable, in full on the “Revolving
Loan Maturity Date” which is the earlier to occur of: (i) July 13, 2019; and (ii) the date on which the Revolving
Loan Aggregate Commitment shall otherwise terminate in accordance with the provisions of this Agreement. The Revolving Loan Maturity
Date shall not be extended unless approved by Agent and Lenders in their sole and absolute discretion (subject to Section
1.4.)

 

(iii)            
Remargin. If at any time the outstanding principal balance of Revolving Loans exceeds the Borrowing Base Amount,
Borrower shall immediately prepay the outstanding Revolving Loans in an amount sufficient to eliminate such excess.

 

(f)               
Procedure for Revolving Loan Borrowings.

 

(i)                
When Available; Limitations. Revolving Loans shall be made from time to time on any Business Day during the period
beginning on the Closing Date and ending twenty days prior to the Revolving Loan Maturity Date; provided, however, Revolving Loans
will not be funded more frequently than once per calendar month, unless otherwise agreed by Agent and Required Lenders. Each Revolving
Loan shall be in an aggregate amount of $500,000 or $100,000 increments in excess thereof.

 

    	 	2	 

     

    

 

(ii)              
Notices and Fundings. Each borrowing of a Revolving Loan to be made by the Revolving Loan Lenders on the same day
shall be made upon the Borrower’s irrevocable written notice to Agent (each, a “Revolving Loan Borrowing Notice”)
substantially in the form of Schedule 1.3(f), which Revolving Loan Borrowing Notice must be received by Agent
prior to 1:00 p.m. (Phoenix time) on the date that is not less than three Business Days prior to the requested borrowing date.
Upon receipt of a Revolving Loan Borrowing Notice for a particular Revolving Loan, Agent will promptly notify each Revolving Loan
Lender of such Revolving Loan Borrowing Notice and of the amount of such Lender’s Commitment Percentage of such Revolving
Loan. Unless Agent is otherwise directed in writing by the Borrower, the proceeds of each requested Revolving Loan after the Closing
Date will be made available to Borrower by Agent by wire transfer of such amount to Borrower pursuant to the wire transfer instructions
specified on the applicable Revolving Loan Borrowing Notice.

 

(g)              
Unused Revolving Loan Commitment Fee. Borrower shall pay to Agent a fee (the “Unused Revolving Loan Commitment
Fee”) for the account of each Revolving Loan Lender in an amount equal to: (i) the average daily balance of the Revolving
Loan Commitment of such Revolving Loan Lender during the preceding Fiscal Quarter; less (ii) the average daily balance of all Revolving
Loans held by such Revolving Loan Lender during the preceding Fiscal Quarter; (iii) with the result being multiplied by 0.50% per
annum. The total Unused Revolving Loan Commitment Fee to be paid by Borrower will be equal to the sum of all of the Unused Revolving
Loan Commitment Fees due to the Lenders, subject to Section 1.12(e)(v). The Unused Revolving Loan Commitment
Fee shall accrue at all times from and after the execution and delivery of this Agreement and shall be due and payable (i) quarterly
in arrears on the fifteenth day after the end of each Fiscal Quarter; (ii) on the Revolving Loan Maturity Date; and (iii) upon
the termination of the Revolving Loan Aggregate Commitment.

 

1.4             
Extension of Maturity Date. At the Lenders’ sole discretion, the Lenders (acting unanimously) may offer Borrower
the option to extend the Revolving Loan Maturity Date for one (1) year (to July 13, 2020). If the Revolving Loan Maturity Date
is so extended, the Lenders (acting unanimously), at their sole discretion, may offer an additional option to extend the Revolving
Loan Maturity Date for one (1) more year (to July 13, 2021). Notwithstanding the foregoing, the Revolving Loan Maturity Date may
not be extended beyond July 13, 2021. In order to exercise such options to extend, Borrower, at a minimum, must (i) notify Agent
of its desire to extend the Revolving Loan Maturity Date at least ninety (90) days prior to the then Revolving Loan Maturity Date,
and (ii) satisfy the following conditions by or on the Revolving Loan Maturity Date: (a) Borrower has paid to Agent for the ratable
benefit of Revolving Loan Lenders an extension fee in the amount of one quarter percent (25 basis points) of the aggregate Revolving
Loan Commitments; (b) Agent shall have received a certificate signed by a duly-authorized officer of Borrower stating that (1)
no Default or Event of Default has occurred and is continuing or would result from such extension, (2) Borrower is in compliance
with the financial covenants in Section 4.22 both immediately before and after giving effect to such extension, and
(3) the representations and warranties contained in the Loan Documents are true and correct in all material respects on and as
of the extension date and (c) Borrower shall have executed all other documents reasonably requested by Agent with respect to any
extension.

 

    	 	3	 

     

    

 

1.5             
Other Interest Provisions.

 

(a)               
Default Interest. At the election of Agent or the Required Lenders while any Event of Default exists (or automatically
while any Event of Default under Section 6.1(a) or 6.1(f) exists), Borrower shall pay interest
(after as well as before entry of judgment thereon to the extent permitted by law) on each Loan from and after the date of occurrence
of such Event of Default, at a rate per annum which is determined by adding two percent per annum to the Variable Rate in effect
from time to time with respect to such Loan. All such interest shall be payable on demand of Agent or the Required Lenders.

 

(b)              
Maximum Rate of Interest. Anything herein or in any of the other Loan Documents to the contrary notwithstanding,
the obligations of Borrower hereunder shall be subject to the limitation that payments of interest shall not be required, for any
period for which interest is computed hereunder, to the extent (but only to the extent) that contracting for or receiving such
payment by the respective Lender would be contrary to any Requirement of Law applicable to such Lender limiting the highest rate
of interest which may be lawfully contracted for, charged or received by such Lender, and in such event Borrower shall pay such
Lender interest at the highest rate permitted by applicable law (“Maximum Lawful Rate”); provided,
however, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, Borrower
shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by Agent, on
behalf of the Lenders, is equal to the total interest that would have been received had the interest payable hereunder been (but
for the operation of this subsection) been computed since the Closing Date as otherwise provided in this Agreement.

 

1.6             
Closing. The closing (the “Closing”) with respect to the Loan will occur within three Business
Days following satisfaction (or waiver) of each of the closing conditions precedent listed in Section 2.1 and
on Schedule 2.1. The date on which the Closing occurs and the Revolving Loan to be made at Closing is funded is the
“Closing Date.” Borrower hereby authorizes Agent to insert the Closing Date on the first page hereof,
as the date of this Agreement, and in the various Loan Documents executed in connection with the Closing, as the date thereof.
The Closing must occur on or before 1:00 p.m. local time in Phoenix, Arizona on July 14, 2016 (the “Closing Deadline”).
If the Closing has not occurred on or before the Closing Deadline, Lenders shall have absolutely no obligation whatsoever to extend
the Loan to Borrower. Agent may extend the Closing Deadline in Agent’s sole discretion. Any Closing Deadline extension must
be in writing to be valid.

 

1.7             
Collateral. All of the Obligations, including with respect to the Loan, will be secured by the Collateral. At Closing,
the Collateral will include the Collateral described in the Collateral Table attached as Schedule 1.7 (the “Collateral
Table”) as well as all other Collateral described in the Loan Documents.

 

    	 	4	 

     

    

 

1.8             
Loan Accounts.

 

(a)               
Maintenance of Loan Records. Agent, on behalf of the Lenders, shall record on its books and records the amount of
each Loan made, the interest rate applicable, all payments of principal and interest thereon and the principal balance thereof
from time to time outstanding. On a monthly basis, Agent shall deliver to Borrower a loan statement setting forth such record for
the immediately preceding calendar month. Such record shall, absent manifest error, be conclusive evidence of the amount of the
Loans made by the Lenders to Borrower and the interest and payments thereon. Any failure to so record or any error in doing so,
or any failure to deliver such loan statement shall not, however, limit or otherwise affect the obligation of Borrower hereunder
(and under any Note) to pay any amount owing with respect to the Loans or provide the basis for any claim against Agent.

 

(b)              
Ownership Register. Agent, acting as a non-fiduciary agent of Borrower solely for tax purposes and solely with respect
to the actions described in this subsection, shall establish and maintain at its address referred to in Section 8.2
(or at such other address as Agent may notify Borrower): (i) a record of ownership (the “Register”) in
which Agent agrees to register by book entry the interests (including any rights to receive payment hereunder) of Agent and each
Lender in the Revolving Loans, each of their obligations under this Agreement to participate in each Loan, and any assignment of
any such interest, obligation or right; and (ii) accounts in the Register in accordance with its usual practice in which it shall
record: (A) the names and addresses of the Lenders (and each change thereto pursuant to Sections 8.9 and 8.25);
(B) the Commitments of each Lender; (C) the amount of each Loan and each funding of any participation described in clause
(i) of this subsection; (D) the amount of any principal or interest due and payable or paid; and (E) any other payment
received by Agent from Borrower and its application to the Obligations.

 

(c)               
Registered Obligations. Notwithstanding anything to the contrary contained in this Agreement, the Loans (including
any Notes evidencing such Loans) are registered obligations, the right, title and interest of the Lenders and their assignees in
and to such Loans shall be transferable only upon notation of such transfer in the Register and no assignment thereof shall be
effective until recorded therein. This Section 1.8 and Section 8.9 shall be construed so
that the Loans are at all times maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and
881(c)(2) of the Code.

 

(d)              
Access to Register. The Credit Parties, Agent, and the Lenders shall treat each Person whose name is recorded in
the Register as a Lender for all purposes of this Agreement. Information contained in the Register with respect to any Lender shall
be available for access by Borrower, Agent, or such Lender during normal business hours and from time to time upon at least one
Business Day’s prior notice. No Lender shall, in such capacity, have access to or be otherwise permitted to review any information
in the Register other than information with respect to such Lender, unless otherwise agreed by Agent.

 

1.9            
Intentionally Omitted.

 

    	 	5	 

     

    

 

1.10         
Intentionally Omitted.

 

1.11         
Payments by Borrower.

 

(a)               
Time, Manner and Place of Payment. All payments (including prepayments) to be made by each Credit Party on account
of principal, interest, fees and other amounts required hereunder shall be made without set off, recoupment, counterclaim or deduction
of any kind, shall, except as otherwise expressly provided herein, be made to Agent (for the ratable account of the Persons entitled
thereto) at the address for payment specified in the signature page hereof in relation to Agent (or such other address as Agent
may from time to time specify in accordance with Section 8.2), including payments utilizing the ACH system,
and shall be made in Dollars and by wire transfer or ACH transfer in immediately available funds (which shall be the exclusive
means of payment hereunder), no later than noon (Phoenix time) on the date due. Any payment which is received by Agent later than
noon (Phoenix time) may in Agent’s discretion be deemed to have been received on the immediately succeeding Business Day
and any applicable interest or fee shall continue to accrue. Borrower and each other Credit Party hereby irrevocably waives the
right to direct the application during the continuance of an Event of Default of any and all payments in respect of any Obligation
and any proceeds of Collateral. If any payment hereunder shall be stated to be due on a day and such day is not a Business Day,
such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the
computation of interest or fees, as the case may be. All payments with respect to the Obligations, including payments made by ACH
debit, shall be in U.S. dollars and shall be made from a business deposit account in Borrower’s name at a U.S. bank.

 

(b)              
Revolving Loans to Fund Interest, Fees, and Other Amounts. Borrower hereby authorizes Agent and each Lender to make
a Revolving Loan to pay (i) interest, principal, agent fees, and Unused Commitment Fees, in each instance, on the date due; or
(ii) after five days’ prior notice to Borrower, other fees, costs or expenses payable by Borrower or any other Credit Party
hereunder or under the other Loan Documents.

 

(c)               
Application of Payments After Event of Default. During the continuance of an Event of Default, Agent may, and, upon
the direction of Required Lenders, shall apply any and all payments received by Agent in respect of any Obligation in accordance
with priorities specified in this subsection (c). Notwithstanding any provision herein to the contrary, all
payments made by Credit Parties to Agent after any or all of the Obligations have been accelerated (so long as such acceleration
has not been rescinded), including proceeds of Collateral, shall be applied as follows:

 

(i)                
First, to payment of costs and expenses, including reasonable attorneys’ fees and expenses, of Agent payable
or reimbursable by the Credit Parties under the Loan Documents;

 

(ii)              
Second, to payment of reasonable attorneys’ fees and expenses of the Lenders payable or reimbursable by Borrower
under this Agreement;

 

    	 	6	 

     

    

(iii)            
Third, to payment of all accrued unpaid interest on the Obligations and fees owed to Agent and the Lenders;

 

(iv)            
Fourth, to payment of principal of the Obligations, including Obligations under any Secured Rate Contract;

 

(v)              
Fifth, to payment of any other amounts owing constituting Obligations; and

 

(vi)            
Sixth, any remainder shall be for the account of and paid to whoever may be lawfully entitled thereto.

 

In carrying out the foregoing,
amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding
category; and each of the Lenders or other Persons entitled to payment shall receive an amount equal to its pro rata share of amounts
available to be applied pursuant to clauses (iii), (iv), and (v) above.

 

1.12         
Payments by the Lenders to Agent; Settlement.

 

(a)               
Funding Requirements. Agent may, on behalf of the Lenders, disburse funds to Borrower for Loans requested. Each Lender
shall reimburse Agent on demand for all funds disbursed on its behalf by Agent, or if Agent so requests, each Lender will remit
to Agent its Commitment Percentage of any Loan before Agent disburses same to Borrower. If Agent elects to require that each Lender
make funds available to Agent prior to disbursement by Agent to Borrower, Agent shall advise each Lender by telephone or fax of
the amount of such Lender’s Commitment Percentage of the Loan requested by Borrower no later than the Business Day prior
to the scheduled borrowing date applicable thereto, and each such Lender shall pay Agent such Lender’s Commitment Percentage
of such requested Loan, in same day funds, by wire transfer to Agent’s account, as set forth on Agent’s signature page
hereto, no later than noon (Phoenix time) on such scheduled borrowing date. Nothing in this subsection (a) or
elsewhere in this Agreement or the other Loan Documents, including the other provisions of this Section 1.12,
shall be deemed to require Agent to advance funds on behalf of any Lender or to relieve any Lender from its obligation to fulfill
its Commitments hereunder or to prejudice any rights that Agent any Lender or Borrower may have against any Lender as a result
of any default by such Lender hereunder.

 

(b)              
Agent Payments to Lenders; Settlement. At least once each calendar month or more frequently at Agent’s election
(each, a “Settlement Date”), Agent shall advise each Lender by telephone or fax of the amount of such
Lender’s Commitment Percentage of principal, interest and fees paid for the benefit of the Lenders with respect to each applicable
Loan. Except as otherwise provided in Section 1.12(e)(iii) and Section 1.12(e)(v), Agent
shall pay to each Lender such Lender’s Commitment Percentage of principal, interest and fees paid by Borrower since the previous
Settlement Date for the benefit of such Lender on the Loans held by it. Such payments shall be made by wire transfer to such Lender
not later than 1:00 p.m. (Phoenix time) on the next Business Day following each Settlement Date.

 

    	 	7	 

     

    

 

(c)               
Availability of Lender’s Commitment Percentage. Agent may assume that each Revolving Loan Lender will make
its Commitment Percentage of each Revolving Loan available to Agent on each borrowing date. If such Commitment Percentage is not,
in fact, paid to Agent by such Revolving Loan Lender when due, Agent will be entitled to recover such amount on demand from such
Revolving Loan Lender without setoff, counterclaim or deduction of any kind. If any Revolving Loan Lender fails to pay the amount
of its Commitment Percentage forthwith upon Agent’s demand, Agent shall promptly notify the Borrower, and Borrower shall
immediately repay such amount to Agent. Nothing in this subsection or elsewhere in this Agreement or the other Loan Documents shall
be deemed to require Agent to advance funds on behalf of any Revolving Lender or to relieve any Revolving Lender from its obligation
to fulfill its Commitments hereunder or to prejudice any rights that Borrower may have against any Revolving Lender as a result
of any default by such Revolving Lender hereunder. Without limiting the provisions of subsection (b) above,
to the extent that Agent advances funds to Borrower on behalf of any Revolving Loan Lender and is not reimbursed therefor on the
same Business Day as such advance is made, Agent shall be entitled to retain for its account all interest accrued on such advance
from the date such advance was made until reimbursed by the applicable Revolving Loan Lender.

 

(d)              
Return of Payments.

 

(i)                
Recovery from the Lenders. If Agent pays an amount to a Lender under this Agreement in the belief or expectation
that a related payment has been or will be received by Agent from Borrower and such related payment is not received by Agent, then
Agent will be entitled to recover such amount from such Lender on demand without setoff, counterclaim or deduction of any kind.

 

(ii)              
Returned Payments. If Agent determines at any time that any amount received by Agent under this Agreement or any
other Loan Document must be returned to any Credit Party or paid to any other Person pursuant to any insolvency law or otherwise,
then, notwithstanding any other term or condition of this Agreement or any other Loan Document, Agent will not be required to distribute
any portion thereof to any Lender. In addition, each Lender will repay to Agent on demand any portion of such amount that Agent
has distributed to such Lender, together with interest at such rate, if any, as Agent is required to pay to Borrower or such other
Person, without setoff, counterclaim or deduction of any kind, and Agent will be entitled to set-off against future distributions
to such Lender any such amounts (with interest) that are not repaid on demand.

 

(e)               
Non-Funding Lenders.

 

(i)                
Responsibility. The failure of any Non-Funding Lender to make any Revolving Loan, or to fund any purchase of any
participation to be made or funded by it, or to make any payment required by it under any Loan Document on the date specified therefor
shall not relieve any other Lender of its obligations to make such loan, fund the purchase of any such participation, or make any
other such required payment on such date, and neither Agent nor, other than as expressly set forth herein, any other Lender shall
be responsible for the failure of any Non-Funding Lender to make a loan, fund the purchase of a participation or make any other
required payment under any Loan Document.

 

    	 	8	 

     

    

 

(ii)              
Voting Rights. Notwithstanding anything set forth herein to the contrary, including Section 8.1,
a Non-Funding Lender shall not have any voting or consent rights under or with respect to any Loan Document or constitute a “Lender”
or a “Revolving Loan Lender” (or be, or have its Loans and Commitments, included in the determination of “Required
Lenders”, or “Lenders directly affected” pursuant to Section 8.1) for any voting or consent
rights under or with respect to any Loan Document, provided that: (A) the Commitment of a Non-Funding Lender may not be increased,
extended or reinstated; (B) the principal of a Non-Funding Lender’s Loans may not be reduced or forgiven; and (C) the interest
rate applicable to Obligations owing to a Non-Funding Lender may not be reduced, in each case, without the consent of such Non-Funding
Lender. Moreover, for the purposes of determining Required Lenders, the Loans and Commitments held by Non-Funding Lenders shall
be excluded from the total Loans and Commitments outstanding.

 

(iii)            
Borrower Payments to a Non-Funding Lender. Agent shall be authorized to use all payments received by Agent for the
benefit of any Non-Funding Lender pursuant to this Agreement to pay in full the Aggregate Excess Funding Amount to the appropriate
Secured Parties. With respect to such Non-Funding Lender’s failure to fund Revolving Loans, any amounts applied by Agent
to satisfy such funding shortfalls shall be deemed to constitute a Revolving Loan or amount of the participation required to be
funded and, if necessary to effectuate the foregoing, the other Revolving Lenders shall be deemed to have sold, and such Non-Funding
Lender shall be deemed to have purchased, Revolving Loans from the other Revolving Loan Lenders until such time as the aggregate
amount of the Revolving Loans are held by the Revolving Loan Lenders in accordance with their Commitment Percentages of the Revolving
Loan Aggregate Commitment. Any amounts owing by a Non-Funding Lender to Agent which are not paid when due shall accrue interest
at the interest rate applicable during such period to Revolving Loans. If Agent is holding cash collateral of a Non-Funding Lender
that cures pursuant to clause (iv) below or that ceases to be a Non-Funding Lender pursuant to the definition
of Non-Funding Lender, Agent shall return the unused portion of such cash collateral to such Lender. The “Aggregate
Excess Funding Amount” of a Non-Funding Lender shall be the aggregate amount of all unpaid obligations owing by such
Lender to Agent and other Lenders under the Loan Documents, including such Lender’s pro rata share of all Revolving Loans.

 

(iv)            
Cure. A Lender may cure its status as a Non-Funding Lender under clause (a) of the definition
of Non-Funding Lender if such Lender fully pays to Agent, on behalf of the applicable Secured Parties, the Aggregate Excess Funding
Amount, plus all interest due thereon. Any such cure shall not relieve any Lender from liability for breaching its contractual
obligations hereunder.

 

    	 	9	 

     

    

 

(v)              
Fees. A Lender that is a Non-Funding Lender pursuant to clause (a) of the definition of Non-Funding
Lender shall not earn and shall not be entitled to receive, and Borrower shall not be required to pay, such Lender’s portion
of the Unused Revolving Loan Commitment Fee during the time such Lender is a Non-Funding Lender pursuant to clause (a)
of such definition.

 

(f)               
Procedures. Agent is hereby authorized by each Credit Party and each other Secured Party to establish procedures
(and to amend such procedures from time to time) to facilitate administration and servicing of the Loans and other matters incidental
thereto. Without limiting the generality of the foregoing, Agent is hereby authorized to establish procedures to make available
or deliver, or to accept, notices, documents and similar items on, by posting to or submitting and/or completion, on E-Systems.

 

1.13         
Borrowing Base Valuation. Agent will determine the Borrowing Base Amount from time to time (each such date, a “Borrowing
Base Valuation Date”), including, without limitation, (i) as of the Closing Date, (ii) as of the end of each Fiscal
Quarter based upon the Financial Statements and Borrowing Base Certificate provided pursuant to Sections 4.2 and 4.3,
and (iii) upon receipt of any new or updated Acceptable Appraisal ordered by Agent. If Borrower fails to provide Agent with the
required Financial Statements or a Borrowing Base Certificate for any quarter pursuant to Sections 4.2 and 4.3
(and fails to cure such breach within the cure period set forth in Section 6.1(d), if applicable), Agent and Required
Lenders may, in their sole discretion, elect to deem the Total Borrowing Base Value to be zero dollars until such Financial Statements
and Borrowing Base Certificate are provided to Agent.

 

1.14         
Cash Management.

 

(a)               
Borrower shall deposit, and shall cause Manager to deposit, all Operating Revenues into a Depository Account in which Borrower
has granted to Agent a perfected security interest pursuant to a Blocked Account Agreement. On or before Closing (and thereafter
as needed), Borrower and Manager shall give irrevocable notices to all current Credit Card Issuers or any other account debtors
doing business with Borrower or any of the Borrowing Base Assets to make or wire all payments to a Depository Account in which
Borrower has granted to Agent a perfected security interest. Within thirty (30) days after (i) the Closing with respect to the
initial Borrowing Base Assets or (ii) the date of submission as a Borrowing Base Asset with respect to all subsequently added Borrowing
Base Assets, Borrower shall deliver to Agent such notices signed by Borrower and will endeavor to have them countersigned by each
Credit Card Issuer. Borrower and Manager shall give the same irrevocable notice to all future Credit Card Issuers and other account
debtors concurrently with entering into agreements with such parties and, in the case of future Credit Card Issuers, shall deliver
to Agent all such notices signed by Borrower and will endeavor to have them countersigned by each future Credit Card Issuer within
thirty (30) days thereafter. Each reference to Borrower in this Section 1.14 shall also include the TRS Lessee for
each Hotel Asset, and Borrower shall cause each TRS Lessee to comply with this Section 1.14.

 

    	 	10	 

     

    

 

(b)              
During any Sweep Period, commencing upon the written request of Agent:

 

(i)                
Upon notice from Agent, the financial institution who is a party to the Blocked Account Agreement shall transfer all funds
then on deposit, and thereafter deposited, in its Depository Account to an account maintained by Agent in Agent’s name (or
such other account name as Agent may elect) at Western Alliance Bank or another bank selected by Agent in its sole discretion (the
“Agent Account”). Such transfers to the Agent Account shall continue until a Sweep Period no longer exists.

 

(ii)              
Upon Agent’s determination that a Sweep Period no longer exists, Agent shall transfer all funds then on deposit in
the Agent Account to the Depository Account and shall notify the applicable financial institution to cease transferring funds to
the Agent Account.

 

(iii)            
Borrower acknowledges that more than one Sweep Period may occur during the term of the Loan.

 

(c)               
The Agent Account, and all funds at any time on deposit therein, shall be subject to the following:

 

(i)                
At any time on or after the first day of each month, Agent shall withdraw from the Agent Account an amount equal in the
aggregate to all debt service, reserve amounts (including Tax & Assessment Impositions in accordance with Section 4.24),
fees, costs, expenses and other amounts then owing to Secured Parties under the Loan Documents.

 

(ii)              
Borrower shall submit to Agent a monthly a disbursement request containing detailed description of Operating Expenses then
owing, together with invoices, bills of sale and such other evidence as Agent may request to confirm the amount and nature of each
such Operating Expense. Each such disbursement request shall reflect Operating Expenses shown on the then-current operating budget
for such Borrowing Base Asset or be accompanied by a detailed explanation for the variance.

 

(iii)            
After payment of all amounts described under Section 1.14(c)(i) and upon Agent’s approval of each disbursement
request, Agent shall disburse funds from the Agent Account to pay Operating Expenses described in the approved disbursement request,
which disbursements shall be made by Agent to Borrower or the Manager who shall then pay such expenses and provide Agent with reasonable
evidence of such payment within ten (10) Business Days of receipt of such disbursement. Such disbursement request may also include
sales taxes, which Agent shall release from the Agent Account as the item with first priority to be paid as Operating Expenses.

 

(iv)            
Agent, in its sole discretion, may apply all of the funds then on deposit in the Agent Account (after payment of debt service,
reserve amounts and Operating Expenses then owing) to pay down the principal balance of the Revolving Loans, provided that unless
the Revolving Loans have been accelerated or have otherwise become due and payable in full, Agent shall not by such application
of such excess funds reduce the balance in any Agent Account to less than $50,000. Thereafter, Agent, in its sole discretion, may
continue to apply all of the funds remaining in the Agent Account after payment of debt service, reserve amounts and Operating
Expenses each month to pay down the principal balance of the Revolving Loans until the Sweep Period terminates. In no way shall
Agent's review, approval or payment of any disbursement request be deemed to impose any obligation on Agent to manage or operate
any Hotel Asset or to pay any Operating Expense (except out of available funds on deposit in the Agent Account as set forth herein)
or be deemed or construed as an approval of the amount of any Operating Expense (except to the extent that Agent determines a particular
amount does not constitute an Operating Expense) or the performance of any vendor supplying materials or services to a Hotel Asset.

 

    	 	11	 

     

    

 

(v)              
Nothing in this Section 1.14 shall obligate Agent to make any advances or loans to or for the benefit of Borrower
other than disbursements of available funds in the Agent Account from time to time as described in this Section 1.14.

 

(vi)            
To secure the Obligations, Borrower grants to Agent a security interest in all funds held in the Agent Account. While an
Event of Default exists, Agent shall be entitled, without notice to Borrower, to apply any funds in the Agent Account to satisfy
Borrower's obligations under the Loan Documents.

 

Article
2

CONDITIONS PRECEDENT

 

2.1             
Closing Conditions Precedent. The obligation of each Lender to make its initial Loans to be funded at Closing and
to close the transactions contemplated by this Agreement is subject to Agent’s satisfaction with or waiver of, in Agent’s
sole discretion and in each case on or prior to the Closing Deadline, the closing conditions precedent set forth in this Section
and on the Closing Conditions Precedent Schedule attached as Schedule 2.1, including all required deliverables,
each at the expense of the Credit Parties:

 

(a)               
Borrowing Base Certificate. Borrower shall have provided to Agent a Borrowing Base Certificate setting forth the
Total Borrowing Base Value as of the Closing Date.

 

2.2             
Conditions Precedent to Funding Revolving Loans Post-Closing. Except as otherwise expressly provided herein, no Revolving
Loan Lender shall be obligated to fund any Revolving Loan after the Closing, if, as of the date of funding, the conditions in this
Section 2.2 are not satisfied. The request by Borrower and acceptance by Borrower of the proceeds of such Revolving
Loan shall be deemed to constitute, as of the date thereof, both a representation and warranty by Borrower that the conditions
in this Section 2.2 have been satisfied and a reaffirmation by each Credit Party of the granting and continuance
of Agent’s Liens, on behalf of itself and the Secured Parties, pursuant to the Collateral Documents.

 

    	 	12	 

     

    

 

(a)               
Representations and Warranties True and Correct. All representations and warranties by any Credit Party contained
herein or in any other Loan Document are true and correct in all material respects (without duplication of any materiality qualifier
contained therein), unless Agent or Required Lenders have determined to make such Revolving Loan notwithstanding the fact that
such warranty or representation is untrue or incorrect.

 

(b)              
No Default or Event of Default. No Default or Event of Default has occurred and is continuing or would reasonably
be expected to result after giving effect to such Revolving Loan, unless Agent or Required Lenders shall have determined to make
such Revolving Loan notwithstanding the existence of such Default or Event of Default.

 

(c)               
Payment of Costs, Expenses and Fees. All costs, expenses and fees to be paid by Borrower on or before the date of
funding of such Revolving Loan shall have been paid in full.

 

(d)              
No Material Adverse Effect. No Material Adverse Effect shall have occurred since Closing, and there shall be no facts
or circumstances existing and not previously disclosed in writing to Agent or the Lenders with respect to any Credit Party, the
Collateral, the seller, if any, of the Collateral, any other Person representing or otherwise acting on behalf of a Credit Party,
or the transactions contemplated by the Loan Documents, in Agent’s reasonable judgment, are inconsistent in a material and
adverse manner with any such information disclosed to Agent prior to Closing.

 

(e)               
Loan Documents. Agent shall have received and has filed or recorded, as applicable, such documents as Agent may require
to (i) continue the full benefits of the Loan Documents; and (ii) protect, preserve, maintain, continue, and enforce Agent’s
rights in (and the priority of Agents Liens on) the Collateral, including consents, intercreditor agreements, and subordination
agreements, in each case duly executed and, where appropriate, acknowledged by the appropriate parties (with each such document
or instrument to be deemed to be a Loan Document).

 

(f)               
Borrowing Base Amount. After giving effect to any Loan, the aggregate outstanding amount of the Revolving Loans would
not exceed the Borrowing Base Amount.

 

(g)              
Borrowing Base Certificate. Not less than five (5) Business Days before the Revolving Loan is to be made, Agent shall
have received a current Borrowing Base Certificate dated as of the latest Borrowing Base Valuation Date and computed as if the
requested Revolving Loan had been made on such date.

 

(h)              
Capital Expenditure Information. If the Revolving Loan is to be made to pay for capital expenditures, Borrower shall
have provided Agent with any cost information with respect to such capital expenditures, as required by Agent in its reasonable
discretion.

 

(i)                
Purchase of Borrowing Base Assets. If the Revolving Loan is to be made to pay costs associated with the purchase
of a Borrowing Base Asset, Agent shall have received all information required by Agent in connection with such purchase, and the
applicable Hotel Asset must qualify as a Borrowing Base Asset upon the disbursement of the proceeds of such Revolving Loan.

 

    	 	13	 

     

    

 

(j)                
Incurrence Tests. Not less than five (5) Business Days before the Revolving Loan is to be made, Agent shall have
received a certificate of Borrower demonstrating to Agent’s satisfaction Borrower’s compliance with the financial covenants
set forth in Section 4.22 on a pro forma basis after giving effect to the proposed borrowing,
together with supporting information in detail satisfactory to Agent.

 

2.3             
Conditions Precedent to Classification as a Borrowing Base Asset. Prior to any Hotel Asset being classified as a
Borrowing Base Asset, the conditions set forth in Schedule 2.3 must be satisfied with respect to such Hotel
Asset. In addition, if a Hotel Asset is to be added as a Borrowing Base Asset after the Closing Date, Borrower must comply with
Section 4.25.

 

Article
3

REPRESENTATIONS AND WARRANTIES

 

Borrower acknowledges
and agrees that the representations and warranties in this Article are a material consideration to Agent and the Lenders; that
Agent and the Lenders are relying on their correctness and completeness in entering into this Agreement and making the Loans available
to Borrower; and that these representations and warranties are true and accurate as of the date hereof, will be true and accurate
as of the Closing, as if made at Closing, and will survive the Closing, regardless of any investigation or inspection by Agent
or any Lender. Accordingly, Borrower represents, warrants, and certifies to and covenants with Agent and the Lenders that:

 

3.1             
Corporate Existence and Power. Each Credit Party (a) is a corporation, limited liability company or limited partnership,
as applicable, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, organization
or formation, as applicable; (b) has the power and authority and all governmental licenses, authorizations, Permits, consents and
approvals to own its assets, carry on its business and execute, deliver, and perform its obligations under, the Loan Documents
to which it is a party; (c) is duly qualified as a foreign corporation, limited liability company or limited partnership, as applicable,
and licensed and in good standing, under the laws of each jurisdiction where its ownership, lease or operation of Property or the
conduct of its business requires such qualification or license; and (d) is in compliance with all Requirements of Law; except,
in each case referred to in clause (c) or clause (d), to the extent that the failure to do
so would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

3.2             
Corporate Authorization; No Contravention. The execution, delivery and performance by each of the Credit Parties
of this Agreement and any other Loan Document to which such Person is party, have been duly authorized by all necessary action,
and do not and will not (a) contravene the terms of any of that Person’s Organization Documents; (b) conflict with or result
in any material breach or contravention of, or result in the creation of any Lien under, any document evidencing any material Contractual
Obligation to which such Person is a party or any order, injunction, writ or decree of any Governmental Authority to which such
Person or its Property is subject; or (c) violate any material Requirement of Law in any material respect.

 

    	 	14	 

     

    

 

3.3             
Governmental Authorization. No approval, consent, exemption, authorization, or other action by, or notice to, or
filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Credit Party of this Agreement or any other Loan Document except (a) for recordings and filings in
connection with the Liens granted to Agent under the Collateral Documents; and (b) those obtained or made on or prior to the Closing
Date.

 

3.4             
Binding Effect. This Agreement and each other Loan Document to which any Credit Party is a party constitute the legal,
valid and binding obligations of each such Person, enforceable against such Person in accordance with their respective terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability.

 

3.5             
Litigation and Condemnation. There are no actions, suits, proceedings, claims or disputes pending, or to the knowledge
of Borrower, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, including condemnation
proceedings or proceedings in lieu of condemnation, against Borrower, any of its Subsidiaries or any of their respective Properties
which (a) purport to affect or pertain to this Agreement, any other Loan Document, or any of the transactions contemplated hereby
or thereby; (b) would reasonably be expected to result in monetary judgment(s) or relief, individually or in the aggregate, in
excess of $500,000 for any Site; or (c) seek an injunction or other equitable relief which would reasonably be expected to have
a Material Adverse Effect. No injunction, writ, temporary restraining order or any order of any nature has been issued by any court
or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any
other Loan Document or directing that the transactions provided for herein or therein not be consummated as herein or therein provided.

 

3.6             
Administrative, Criminal and Governmental Audits and Investigations. There are no administrative or criminal matters
or investigations or government investigations, or other similar matters currently pending or, to the knowledge of each Credit
Party, threatened that involve any Credit Party nor has any Credit Party been involved in any such matters within the past seven
years.

 

3.7             
No Default. No Default or Event of Default exists or would result from the incurring of any Obligations by any Credit
Party or the grant or perfection of Agent’s Liens on the Collateral. No Credit Party is in default under or with respect
to any Contractual Obligation in any respect which, individually or together with all such defaults, would reasonably be expected
to have a Material Adverse Effect.

 

3.8             
ERISA Compliance. None of the Credit Parties maintains, or has any Liabilities with respect to, any Title IV Plan,
Multiemployer Plan, and other material Benefit Plan.

 

3.9             
Use of Proceeds; Margin Stock. The proceeds of the Loans are intended to be and shall be used solely for the purposes
set forth in and permitted by Section 1.3(c) and are intended to be and shall be used in compliance with Section 5.8.
Neither the Borrower nor any of its Subsidiaries is engaged in the business of purchasing or selling Margin Stock or extending
credit for the purpose of purchasing or carrying Margin Stock. Proceeds of the Loans shall not be used for the purpose of purchasing
or carrying Margin Stock. As of the Closing Date, neither the Borrower nor any of its Subsidiaries owns any Margin Stock.

 

    	 	15	 

     

    

 

3.10         
Ownership of Property; Liens. Each of the Credit Parties which owns a Borrowing Base Asset has good record and marketable
title in fee simple to each Site that is a Borrowing Base Asset, and good and valid title to all owned personal property and valid
leasehold interests in all leased personal property, in each instance, necessary or used in the ordinary conduct of their respective
businesses. None of the Property of any Credit Party is subject to any Liens other than Permitted Liens. All material Permits required
to have been issued or appropriate to enable each such Site to be lawfully occupied and used for all of the purposes for which
it is currently occupied and used have been lawfully issued and are in full force and effect. All Real Estate and all personal
property of each Subsidiary Guarantor are subject to Liens in favor of Agent for the benefit of the Secured Parties.

 

3.11         
Taxes. All federal, state, local and foreign income and franchise and other material tax returns, reports and statements
(collectively, the “Tax Returns”) required to be filed by any Tax Affiliate have been filed with the
appropriate Governmental Authorities, all such Tax Returns are true and correct in all material respects, and all Taxes reflected
therein or otherwise due and payable have been paid prior to the date on which any Liability may be added thereto for non-payment
thereof except for those contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves
are maintained on the books of the appropriate Tax Affiliate in accordance with GAAP. To Borrower’s knowledge, no Tax Return
is under audit or examination by any Governmental Authority and no notice of any audit or examination or any assertion of any claim
for Taxes has been given or made by any Governmental Authority. Proper and accurate amounts have been withheld by each Tax Affiliate
from their respective employees for all periods in full and complete compliance with the tax, social security and unemployment
withholding provisions of applicable Requirements of Law and such withholdings have been timely paid to the respective Governmental
Authorities. No Tax Affiliate has participated in a “reportable transaction” within the meaning of Treasury Regulation
Section 1.6011-4(b) or has been a member of an affiliated, combined or unitary group other than the group of which a Tax Affiliate
is the common parent.

 

3.12         
Financial Condition.

 

(a)               
Pre-Closing Financial Statements. To Borrower’s knowledge, the financial statements delivered to Agent for
each of the Borrowing Base Assets for the trailing twelve months ending April 30, 2016, present fairly in all material respects
the results of operations for each Borrowing Base Asset for the periods covered thereby.

 

(b)              
Absence of Material Adverse Effects. Since December 31, 2015, there has been no Material Adverse Effect.

 

(c)               
Indebtedness and Contingent Obligations. The Borrower and its Subsidiaries have no Indebtedness other than Indebtedness
permitted pursuant to Section 5.5 and have no Contingent Obligations other than Contingent Obligations permitted
pursuant to Section 5.9.

 

    	 	16	 

     

    

 

(d)              
Closing Projections. All financial performance projections delivered to Agent, including the financial performance
projections delivered on or prior to the Closing Date, represent Borrower’s best good faith estimate of future financial
performance and are based on assumptions believed by Borrower to be fair and reasonable in light of current market conditions,
it being acknowledged and agreed by Agent and the Lenders that projections as to future events are not to be viewed as facts and
that the actual results during the period or periods covered by such projections may differ from the projected results.

 

3.13         
Regulated Entities. None of any Credit Party, any Person controlling any Credit Party, or any Affiliate of any Credit
Party, is (a) an “investment company” within the meaning of the Investment Company Act of 1940; or (b) subject to regulation
under the Federal Power Act, the Interstate Commerce Act, any state public utilities code, or any other federal or state statute,
rule or regulation limiting its ability to incur Indebtedness, pledge its assets or perform its obligations under the Loan Documents.

 

3.14         
Solvency. Both before and after giving effect to (a) the Loans made on or prior to the date this representation and
warranty is made or remade; (b) the disbursement of the proceeds of such Loans to Borrower or as directed by the Borrower; and
(c) payment and accrual of all transaction costs in connection with the foregoing, both the Credit Parties taken as a whole and
each Credit Party individually are Solvent. This Agreement and the other Loan Documents were executed and delivered to the Agent
by each Credit Party in good faith, and the Obligations incurred thereunder and the Liens granted thereunder were incurred and
granted in a substantially contemporaneous exchange for fair equivalent value.

 

3.15         
Labor Relations. There are no strikes, work stoppages, slowdowns or lockouts existing, pending (or, to the knowledge
of Borrower, threatened) against or involving any Credit Party, except for those that would not, in the aggregate, reasonably be
expected to have a Material Adverse Effect. There is no collective bargaining or similar agreement with any union, labor organization,
works council or similar representative covering any employee of any Credit Party. To Borrower’s knowledge, (a) no petition
for certification or election of any such representative is existing or pending with respect to any employee of any Credit Party;
and (b) no such representative has sought certification or recognition with respect to any employee of any Credit Party.

 

3.16         
Brokers’ Fees; Transaction Fees. Except for fees payable to Agent and the Lenders, none of the Credit Parties
has any obligation to any Person in respect of any finder’s, broker’s or investment banker’s fee in connection
with the transactions contemplated hereby.

 

3.17         
Ventures, Subsidiaries and Affiliates; Outstanding Stock. Borrower (a) has no Subsidiaries, except as may be disclosed
on Schedule 3.17 (the “Organizational Structure Table”) and (b) is not engaged in
any joint venture or partnership with any other Person. All issued and outstanding Stock and Stock Equivalents of Borrower are
duly authorized and validly issued, fully paid, non-assessable, and free and clear of all Liens. All such securities were issued
in compliance with all applicable state and federal laws concerning the issuance of securities. All of the issued and outstanding
Stock of Borrower and each Subsidiary of Borrower, if any, is owned by each of the Persons and in the amounts set forth on the
Organizational Structure Table. Except as set forth on the Organizational Structure Table, there are no pre-emptive or other outstanding
rights to purchase, options, warrants or similar rights or agreements pursuant to which Borrower may be required to issue, sell,
repurchase or redeem any of its Stock or Stock Equivalents or any Stock or Stock Equivalents of its Subsidiaries. Set forth on
the Organizational Structure Table is a true and complete organizational chart for Borrower and its Subsidiaries, which the Credit
Parties shall update upon notice to Agent promptly following the incorporation, organization or formation of any Subsidiary.

 

    	 	17	 

     

    

 

3.18         
Bonding. No Credit Party is a party to or bound by any surety bond agreement, indemnification agreement therefor
or bonding requirement with respect to products or services sold by it.

 

3.19         
Full Disclosure. None of the representations or warranties made by any Credit Party as of the date such representations
and warranties are made or deemed made, and none of the statements contained in each exhibit, report, statement or certificate
furnished by or on behalf of any Credit Party in connection with the Loan Documents (including the offering and disclosure materials,
if any, delivered by or on behalf of any Credit Party to Agent or the Lenders prior to the Closing Date), contains any untrue statement
of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in
light of the circumstances under which they are made, not misleading as of the time when made or delivered.

 

3.20         
Foreign Assets Control Regulations and Anti-Money Laundering. Each Credit Party and its Affiliates (each, an “AML
Party”) is and will remain in compliance with the following (collectively, the “AML Requirements”):
all U.S. economic sanctions laws and executive orders; all regulations promulgated by the U.S. Office of Foreign Assets Control
(“OFAC”); and all applicable anti-money laundering and counter-terrorism provisions of the Bank Secrecy
Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
P.L. 107-56 (the “Patriot Act”), and all rules and regulations issued pursuant to such laws, including
those relating to “know your customer”, anti-money laundering, and anti-terrorism. No AML Party is or will become a
Person (a) included by OFAC on the list of Specially Designated Nationals and Blocked Persons (the “SDN List”)
or who is otherwise the target of U.S. economic sanctions laws, such that, in either case, a U.S. Person cannot engage in business
transactions with such Person; or (b) that is Controlled by, or acting, directly or indirectly, for or on behalf of, any Person
on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions, such that entry into or performance
under any Loan Document would violate any Requirement of Law. For purposes of this Section 3.20,
“Affiliate” does not include the shareholders of any entity that is publicly traded on a recognized national United
States stock exchange.

 

3.21         
Intentionally Omitted.

 

3.22         
Bankruptcy and Similar Matters. There are no bankruptcy, insolvency, or similar proceeding currently pending or,
to the knowledge of Borrower, threatened against any Credit Party. During the past seven years: (a) no assets of any Credit Party
have been the subject of any foreclosure or similar proceeding or been transferred by deed in lieu; (b) no Credit Party has
filed (or had filed against such Credit Party) a petition under the U.S. Bankruptcy Reform Act of 1978, 11 U.S.C. §101, et
seq. (the “Bankruptcy Code”) or obtained a discharge of its debts under the Bankruptcy Code; and
(c) no Person that is a principal officer, executive, member, manager or shareholder of a Credit Party held a similar position
in an entity that, during the time such Person held such position or within one year after leaving such position, filed (or had
filed against it) a petition under the Bankruptcy Code or that obtained a discharge of its debts under the Bankruptcy Code.

 

    	 	18	 

     

    

 

3.23         
Site Conditions, Zoning, Access, and Utilities. Each Site, including all buildings and other improvements associated
with such Site, is in good condition and repair, ordinary wear and tear excepted; free (to the knowledge of Borrower) from structural
defects. Permanent, legal access is available to each Site from a physically open and dedicated public right-of-way. Each Site
is unconditionally zoned by the appropriate Governmental Authority for the use of such Site for the Permitted Concept. Adequate
public or private utilities are available at each Site to permit operation of such Site as a Permitted Concept, and all utility
connection fees and use charges have been paid in full.

 

3.24         
License Agreement. Borrower has delivered to Agent a fully executed, complete copy of each License Agreement affecting
a Site. Each License Agreement is in full force and effect, the entire interest of the franchisee thereunder is owned by one or
more Credit Parties, and such interest has not been assigned, transferred, mortgaged, or otherwise encumbered other than pursuant
to Lender’s Liens. The term of each License Agreement exceeds the Revolving Loan Maturity Date. No notice of default from
the Licensor has been received by Borrower or any other Credit Party with respect to any License Agreement that has not been cured,
and no notice of default to the Licensor has been given that has not been cured. To the knowledge of Borrower, no event has occurred
and no condition exists, including with respect to any required remodeling or re-imaging, that, with the giving of notice or the
lapse of time or both, would constitute a default under any License Agreement. No Credit Party is subject to any property or performance
improvement plan or similar requirement under any License Agreement (each, a “PIP”) or, if a Credit Party
is subject to a PIP, the requirements thereof have been fully disclosed to Agent, including expenses, required reserves, and other
requirements. Each Borrowing Base Asset is subject to an Approved License Agreement with an Approved Licensor.

 

3.25         
Management Agreement. Borrower has delivered to Agent a fully executed, complete copy of each Management Agreement
affecting a Site. Each Management Agreement is in full force and effect, the entire interest of the owner thereunder is owned by
the Credit Party that owns or leases such Site, and such interest has not been assigned, transferred, mortgaged, or otherwise encumbered
other than pursuant to Liens in favor of Agent. No notice of default from Manager has been received by Borrower or any other Credit
Party that has not been cured, and no notice of default to such Manager has been given that has not been cured. To Borrower’s
knowledge, no event has occurred and no condition exists that, with the giving of notice or the lapse of time or both, would constitute
a default under the Management Agreement. Each Management Agreement (a) is fully subordinate to the Loan and Loan Documents, including
to all Liens in Agent’s favor; and (b) does not contain any rights of first refusal or other options in favor of Manager
to acquire any Collateral or other property of a Credit Party. Each Borrowing Base Asset is operated and managed by an Approved
Manager pursuant to an Approved Management Agreement. Each Approved Management Agreement as of the Closing Date is set forth on
Schedule 3.25.

 

    	 	19	 

     

    

 

3.26         
Non-Foreign Status. Borrower is not a “foreign corporation”, “foreign partnership”, “foreign
trust”, “foreign estate” or “foreign person,” as those terms are defined by the Code.

 

3.27         
Commercial Purpose of Credit Facilities. The purpose of the Obligations is a commercial business purpose and not
a personal, family, or household purpose. No portion of the Collateral is being used by the Credit Parties for any personal, family
or household purposes.

 

Article
4

AFFIRMATIVE COVENANTS

 

Borrower covenants
and agrees that, so long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been asserted) shall remain unpaid or unsatisfied, Borrower
shall comply with the following and, to the extent a covenant is expressed as a covenant of a Credit Party or a Subsidiary of Borrower,
shall cause each such Credit Party or Subsidiary of Borrower to comply with the following:

 

4.1             
Accounting Systems; Books and Records. Borrower shall maintain (a) a system of accounting established and administered
in accordance with sound business practices to permit the preparation of financial statements in conformity with GAAP (provided
that monthly financial statements shall not be required to have footnote disclosures and are subject to normal year-end adjustments);
and (b) proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied
shall be made of financial transactions and matters involving the assets and business of such Person.

 

4.2             
Financial Reporting.

 

(a)               
Financial Reports. Borrower shall deliver to Agent and each Lender as an E-Transmission and in detail reasonably
satisfactory to Agent and the Required Lenders:

 

(i)                
Annual and Quarterly Financial Statements. Within 120 days after the end of each Fiscal Year of Borrower and within
45 days after the end of each Fiscal Quarter of Borrower (including the last Fiscal Quarter in each Fiscal Year): (A) complete
Financial Statements for Borrower and each other Credit Party for the period then ended (including, without limitation, for Limited
Guarantor, the audited annual Financial Statements of Lightstone Value Plus Real Estate Investment Trust III, Inc.) and (B) such
other information (financial or otherwise) as Agent may reasonably request.

 

(ii)              
Other Financial Information. Within 45 days following the end of each Fiscal
Quarter: (A) standard hotel data of rooms sold and rooms available for the Fiscal Quarter, as well as gross revenue breakdown of
room revenue from other revenue for such period, so that occupancy ADR and RevPar Statistics for such Fiscal Quarter can be calculated;
and (B) the Smith Travel Research Reports for such Fiscal Quarter.

 

    	 	20	 

     

    

 

(iii)            
Quality Assurance Reports. Within 45 days following the end of each Fiscal
Year, copies of all Quality Assurance reports for each Site issued by a Licensor during such Fiscal Year.

 

(iv)            
Royalty Billings. Within 30 days after the end of each Fiscal Quarter, all
Licensor royalty billing statements for each Site for such Fiscal Quarter.

 

(v)              
Other. Borrower will also deliver to Agent such Financial Statements of Borrower and each other Credit Party as Agent
may request from time to time to verify compliance with the terms and conditions of this Agreement and the other Loan Documents,
including with any financial covenants and at any time following the occurrence and during the continuance of a Default. “Financial
Statements” means, for Borrower, each Credit Party and Lightstone Value Plus Real Estate Investment Trust III, Inc.,
a consolidated and consolidating balance sheet, including retained earnings, as of the relevant fiscal period, and related profit
and loss statements, cash flows (if any), and all related schedules for the fiscal period then ended; provided, however,
quarterly Financial Statements will not require statements of retained earnings or cash flows unless requested by Agent in its
reasonable discretion. In those cases where a Credit Party is an individual, such Financial Statements shall include statements
of assets and liabilities, tax returns, salary information, and such other information as Agent may reasonably request.

 

(b)              
Financial Statement Requirements. All Financial Statements of Borrower and Subsidiary Guarantors shall show results
(including operating statements in detail reasonably acceptable to Agent) separately for each Borrowing Base Asset and shall be
prepared in accordance with GAAP from period to period. All Financial Statements of Borrower must be certified by a Responsible
Officer to be true, correct and complete in all material respects as of the date covered thereby.

 

(c)               
Tax Returns. Within the earlier of (a) 30 days of filing such Tax Returns with the appropriate Government Authorities;
or (b) November 15 of each Fiscal Year, Borrower shall, and shall cause each of its Subsidiaries, to deliver to Agent true and
complete copies of all such Tax Returns filed by Borrower and its Subsidiaries, in each case only if such entity is required to
file a Tax Return.

 

(d)              
Budgets and Projections. Annually, no later than the last day of each Fiscal Year of the Borrower, Borrower will
deliver to Agent budgets and projections for the operation of each Site for the upcoming Fiscal Year, in form and content reasonably
satisfactory to Agent.

 

4.3             
Certificates; Other Information. Borrower shall furnish to Agent and each Lender as an E-Transmission:

 

(a)               
Reports. Together with each delivery of the Annual Financial Statements, (i) an operational report, in reasonable detail,
signed by a Responsible Officer, describing the operations and financial condition of Borrower for the Fiscal Year then ended,
and (ii) a report setting forth in comparative form the corresponding figures for the corresponding periods of the previous Fiscal
Year and the corresponding figures from the most recent projections for the current Fiscal Year delivered pursuant to Section 4.3(d)
and discussing the reasons for any significant variations;

 

    	 	21	 

     

    

 

(b)              
Compliance Certificate. Together with each delivery of any Financial Statement, Borrower will deliver to Agent a
compliance certificate (the “Compliance Certificate”) using the attached Compliance Certificate Form
on Schedule 4.3(b) (or such other form as Agent may then require), duly executed by a Responsible Officer, that,
among other things: (a) certifies that the Financial Statements are accurate and complete and fairly present, in all material respects,
in accordance with GAAP, the financial position and the results of operations of Borrower, in the case of Borrower’s Financial
Statements, or such other Credit Party, in the case of such other Credit Party’s Financial Statements; (b) demonstrates compliance
with each of the financial covenants contained in this Agreement; and (c) states that no Default is continuing as of the date of
delivery of such compliance certificate or, if a Default is continuing, states the nature thereof and the action that Borrower
proposes to take with respect thereto;

 

(c)               
Borrowing Base Certificates. Together with each delivery of any Financial Statements of Borrower or any appraisals
pursuant to this Agreement, Borrower will deliver to Agent a Borrowing Base Certificate setting forth the Total Borrowing Base
Value as of the last day of the most recently ended Fiscal Quarter or date of appraisal, if later;

 

(d)              
Projections. As soon as available and in any event no later than the last day of each Fiscal Year of Borrower, projections
of the Credit Parties’ consolidated and consolidating financial performance for the forthcoming Fiscal Year on a month by
month basis;

 

(e)               
Accountant Audits and Reports. Promptly upon receipt thereof, copies of any reports submitted by Borrower’s
certified public accountants in connection with each annual, interim or special audit or review of any type of the Financial Statements
or internal control systems of any Credit Party made by such accountants, including any comment letters submitted by such accountants
to management of any Credit Party in connection with their services; and

 

(f)               
Other Items. Promptly, such additional business, financial, corporate affairs, perfection certificates and other
information as Agent may from time to time reasonably request.

 

4.4             
Notices. In addition to any other requirement in this Agreement or the other Loan Documents to provide Agent and
the Lenders with certain notices, Borrower shall notify promptly Agent and each Lender of each of the following (and in no event
later than three Business Days after a Responsible Officer becomes aware thereof); provided, however, that a requirement
in this Agreement or any other Loan Document to provide Agent and/or the Lenders with notice of the occurrence or existence of
certain events or matters shall not be construed as an approval or waiver of, or consent to, any such event or matter, where consent
or approval of Agent or the Lenders is otherwise required:

 

    	 	22	 

     

    

(a)               
Default or Event of Default. The occurrence or existence of any Default or Event of Default;

 

(b)              
Breach of Contractual Obligations. Any breach or non-performance of, or any default under, any Contractual Obligation
of any Credit Party, or any violation of, or non-compliance with, any Requirement of Law, which would reasonably be expected to
result, either individually or in the aggregate, in a Material Adverse Effect, including a description of such breach, non-performance,
default, violation or non-compliance and the steps, if any, such Person has taken, is taking or proposes to take in respect thereof;

 

(c)               
Governmental Authority Disputes, Investigations, Etc. Any dispute, litigation, investigation, proceeding or suspension
which may exist at any time between any Credit Party and any Governmental Authority which would reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect;

 

(d)              
Commencement of Litigation; Material Developments. The commencement of, or any material development in, any litigation
or proceeding affecting Borrower, any of Borrower’s Subsidiaries or their respective properties (i) in which the amount of
damages claimed is $500,000 or more (unless covered by insurance), (ii) which would reasonably be expected to have a Material Adverse
Effect, or (iii) in which the relief sought is an injunction or other stay of the performance of this Agreement or any other Loan
Document;

 

(e)               
Existence of a Material Adverse Effect. Any Material Adverse Effect subsequent to the date of the most recent financial
statements delivered to Agent and the Lenders pursuant to this Agreement;

 

(f)               
Changes in Accounting and Financial Reporting Practices. Any material change in accounting policies or financial
reporting practices by any Credit Party;

 

(g)              
Labor Controversies. Any labor controversy resulting in or threatening to result in any strike, work stoppage, boycott,
shutdown or other labor disruption against or involving any Credit Party if the same would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect; and

 

(h)              
New Subsidiaries; Stock Issuances. The creation, establishment or acquisition of any Subsidiary of Borrower or the
issuance by or to any Credit Party (other than the Limited Guarantor) of any Stock or Stock Equivalent.

 

Each notice pursuant to this Section shall
be delivered as an E-Transmission, accompanied by a statement by a Responsible Officer of Borrower, setting forth details of the
occurrence referred to therein, and stating what action Borrower or other Person proposes to take with respect thereto and at what
time. Each notice under Section 4.4(a) shall describe with particularity any and all clauses or provisions of
this Agreement or other Loan Document that have been breached or violated.

 

4.5             
Preservation of Corporate Existence, Etc.. Each Credit Party shall: (a) preserve and maintain in full force and effect
its organizational existence and good standing under the laws of its jurisdiction of incorporation, organization or formation,
as applicable, except as permitted by Section 5.3; (b) preserve and maintain in full force and effect all rights,
privileges, qualifications, Permits, licenses and franchises necessary in the normal conduct of its business except as permitted
by Sections 5.2 and 5.3 and except as would not reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect; and (c) use its commercially reasonable efforts, in the Ordinary Course of Business,
to preserve its business organization and preserve the goodwill and business of the customers, suppliers and others having material
business relations with it.

 

    	 	23	 

     

    

 

4.6             
The Collateral. The Credit Parties will (a) keep the Collateral free and clear of any and all Liens, other than the
Permitted Liens and Permitted Encumbrances; (b) use the Collateral only in its trade or business; (c) keep the tangible Collateral
at each Site and maintain such tangible Collateral in good operating condition and repair, normal wear and tear excepted; and (d)
own and keep at each Site all equipment, including all machinery, furniture, appliances, trade fixtures, tools, office and record
keeping equipment, and inventory required to be maintained by Borrower at such Site pursuant to the License Agreement and Management
Agreement for such Site and that are reasonably necessary for the proper and prudent operation of such Site as the Permitted Concept.

 

4.7             
Insurance. Borrower shall obtain and keep in force insurance of the types and in amounts customarily carried in lines
of business similar to Borrower’s, as well as such other insurance and coverages as may be necessary to comply with any Requirement
of Law or as Agent may otherwise reasonably require from time to time, including the insurance policies and coverages set forth
on Schedule 4.7 (the “Insurance Requirements Schedule”). All insurance policies and coverages
shall satisfy the Insurance Requirements (as defined on said Schedule). Borrower’s compliance or non-compliance with the
Insurance Requirements shall not limit the liability of any Credit Party for the acts or omissions of Borrower, any other Credit
Party, or any of their respective related Persons, as provided in this Agreement or in any of the other Loan Documents. If Agent
exercises its remedies and there is a sale of the Collateral or any other transfer of title or assignment of the Collateral in
extinguishment, in whole or in part, of the Obligations, all right, title and interest of Borrower in and to all required policies
of insurance relating to the Collateral so transferred shall inure to the benefit of and pass to the successor in interest to Borrower
or the purchaser or grantee of the Collateral, to the extent such policies are assignable pursuant to the terms thereof.

 

4.8             
Payment of Obligations. Each Credit Party shall pay, discharge and perform as the same shall become due and payable
or required to be performed: (a) all Tax liabilities, assessments and governmental charges or levies upon it or its Property and
all lawful claims which, if unpaid, would by law become a Lien upon its Property, unless the same are being contested in good faith
by appropriate proceedings diligently prosecuted which stay the enforcement of any Lien and for which adequate reserves in accordance
with GAAP are being maintained by such Person; (b) all Indebtedness, as and when due and payable, but subject to any subordination
provisions contained herein, in any other Loan Documents and/or in any instrument or agreement evidencing such Indebtedness; (c)
the performance of all obligations under any Contractual Obligation to such Credit Party or any of its Subsidiaries is bound, or
to which it or any of its Property is subject, except where the failure to perform would not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect; and (d) payments to the extent necessary to avoid the imposition of
a Lien with respect to, or the involuntary termination of any underfunded Benefit Plan.

 

    	 	24	 

     

    

 

4.9             
Compliance with Law. Each Credit Party will comply with all Requirements of Law, except where non-compliance would
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.10         
Anti-Money Laundering; Anti-Terrorism. Each Credit Party shall, at all times, comply, and cause its Affiliates to
comply, with all AML Requirements. Neither Borrower nor any other Credit Party will use any proceeds of the Loans directly or indirectly
for any payments to any government official or employee, political party, political party official, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage,
in violation of the U.S. Foreign Corrupt Practices Act of 1977. Within five days of written request, Borrower shall provide Lender
with such documentation as Lender may request from time to time, to verify compliance with the terms and conditions of this Section,
including with respect to sources of funds for payments made or to be made by any Credit Party.

 

4.11         
Inspection of Property and Books and Records. Each Credit Party shall, during normal business hours and upon reasonable
advance notice (unless an Event of Default shall have occurred and be continuing, in which event no notice shall be required and
Agent shall have access at any and all times during the continuance thereof): (a) provide access to each Site to Agent and any
of its Related Persons, as frequently as Agent determines to be appropriate; (b) permit Agent and any of its Related Persons
to conduct field examinations, audit, inspect, and make extracts and copies (or take originals if reasonably necessary) from all
of such Credit Party’s books and records; and (c) inspect, evaluate and make physical inspections, verifications and appraisals
of the Collateral in any manner and through any medium that Agent considers advisable, in each instance, at the Credit Parties’
expense; provided, however, that the Credit Parties shall only be obligated to reimburse Agent for the expenses of
one such field examination, audit and inspection per Site per calendar year or more frequently if an Event of Default has occurred
and is continuing. Any Lender may accompany Agent or its Related Persons in connection with any inspection at such Lender’s
expense.

 

4.12         
Use of Proceeds. Borrower shall use the proceeds of the Loans solely for the purposes specified in Section 1.3.

 

4.13         
Further Assurances.

 

(a)               
Disclosures. Each Credit Party shall ensure that all written information, exhibits and reports furnished to Agent
or the Lenders do not and will not contain any untrue statement of a material fact and do not and will not omit to state any material
fact or any fact necessary to make the statements contained therein not misleading in light of the circumstances in which made,
and will promptly disclose to Agent and the Lenders and correct any defect or error that may be discovered therein or in any Loan
Document or in the execution, acknowledgement or recordation thereof.

 

    	 	25	 

     

    

 

(b)              
Taking Certain Actions. Promptly upon request by Agent, the Credit Parties shall take such additional actions and
execute such documents as Agent may reasonably require from time to time in order to: (i) carry out more effectively the purposes
of this Agreement or any other Loan Document; (ii) subject the Collateral to the Liens created by any of the Collateral Documents;
(iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and the Liens intended to
be created thereby; and (iv) to better assure, convey, grant, assign, transfer, preserve, protect and confirm to the Secured Parties
the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document.

 

4.14         
[Intentionally Omitted].

 

4.15         
Taxes. Borrower shall pay or cause to be paid, prior to delinquency, all Taxes which may at any time be assessed,
levied or imposed upon Borrower, any Site, the Collateral, the Loan Documents, the Obligations, or the rents, issues, profits,
damages, income and other benefits now or hereafter derived from any of the Sites, or which may arise in respect of the occupancy,
use, possession or operation thereof, subject, however, to any contest rights provided for in the Loan Documents.

 

4.16         
Casualty.

 

(a)               
Casualty; Continuation of Obligations. Borrower shall at all times bear the entire risk of any loss, theft, damage
to, or destruction of, any Collateral from any cause whatsoever, including as a result of a taking by eminent domain (a “Casualty”).
If a Casualty occurs, whether or not covered by insurance, Borrower will promptly give Agent and the Lenders written notice thereof,
describing the nature and extent thereof. No Casualty shall relieve Borrower of any of its Obligations, including the obligations
to make regularly scheduled payments with respect to each Revolving Loan.

 

(b)              
Restoration Obligation. Promptly following the occurrence of a Casualty, Borrower shall, at its expense, commence
and diligently complete the repair, restoration, replacement, and rebuilding of the Collateral as nearly as possible to its value,
condition and character immediately prior to the Casualty (a ”Restoration”). Borrower shall not
be excused from Borrower’s Restoration obligation, regardless of whether there are Insurance Proceeds available to Borrower
or whether any such Insurance Proceeds are sufficient in amount, and the application or release by Agent of any Insurance Proceeds
shall not cure or waive any Default or Event of Default under this Agreement or the other Loan Documents or invalidate any act
done pursuant thereto.

 

(c)               
Application of Insurance Proceeds. Upon the occurrence of any Casualty with respect to any Site (or portion thereof)
(an “Affected Site”), Borrower will promptly and diligently pursue collection of all insurance proceeds
with respect to such Casualty (the “Insurance Proceeds”). All Insurance Proceeds shall be payable to
Agent, for the benefit of the Secured Parties, and Borrower authorizes and directs any affected insurance company to pay the Insurance
Proceeds directly to Agent. If Borrower receives any Insurance Proceeds relating to such Casualty, Borrower shall promptly pay
such proceeds to Agent. All Insurance Proceeds will be applied by Agent to payment of the Obligations
in such order as Agent, in its sole discretion, shall determine; provided, however, that if no Default or
Event of Default has occurred and is continuing, and the Casualty is not a Material Casualty and Restoration can be completed by
the earlier of (1) the date that is six months prior to the Revolving Loan Maturity Date, or (2) the date that is four months
after the date the Insurance Proceeds are paid to Agent (as determined by Agent in its sole discretion), the Insurance Proceeds,
less costs, fees and expenses incurred by Agent, the Lenders, and Borrower in the collection thereof, including adjuster’s
fees and expenses and reasonable attorneys’ fees and expenses (the “Net Insurance Proceeds”), shall
be made available to Borrower as follows: (i) if the Net Insurance Proceeds are less than $350,000, the Net Insurance Proceeds
shall be paid to Borrower by Agent and applied by Borrower to the cost of the Restoration; and (ii) if the Net Insurance Proceeds
are $350,000 or greater, the Net Insurance Proceeds shall be held and disbursed by Agent, or as Agent may from time to time direct,
as the Restoration progresses, to pay or reimburse Borrower for Restoration costs, upon Borrower’s written request accompanied
by evidence, reasonably satisfactory to Agent, that: (A) the Restoration is in compliance in all material respects with all
Requirements of Law and all private restrictions and requirements; (B) the amount requested has been paid or is then due and payable
and is properly a part of such cost; (C) there are no Liens for labor or materials previously supplied in connection with the Restoration;
(D) if the estimated cost of the Restoration exceeds the Net Insurance Proceeds (exclusive of proceeds received from Borrower’s
business income insurance), Borrower has deposited into an escrow satisfactory to Agent such excess amount, which sum will be disbursed
pursuant to escrow instructions satisfactory to Agent; and (E) the balance of such Net Insurance Proceeds, together with the funds
deposited into escrow, if any, will, after making the payment requested, be sufficient to pay the balance of the Restoration costs.
Upon receipt by Agent of evidence reasonably satisfactory to Agent that the Restoration has been completed, the cost thereof has
been paid in full, and that there are no Liens for labor or materials supplied in connection therewith, the balance, if any, of
such Net Insurance Proceeds shall be paid to Borrower.

 

    	 	26	 

     

    

 

(d)              
Adjustments to Borrowing Base and Financial Covenants. If a Material Casualty occurs, the Affected Site will no longer
constitute a Borrowing Base Asset from the date of the Casualty and, to the extent that such reclassification of such Affected
Site would require Borrower to make a payment under Section 1.3(e)(iii), Agent and Lenders will not require
such payment to be made until the earlier of the following (the “Required Remargin Date”): (i) the date
Insurance Proceeds for such Casualty are paid to Agent, or (ii) 180 days after the occurrence of such Casualty; provided, no further
advances of the Loan will be made without Lenders’ consent until such required payment is made. Further, if a Material Casualty
occurs, from and after the date of such Casualty, in calculating the financial covenants in Section 4.22, (1) Agent
will exclude all Net Operating Income applicable to the Affected Site (whether or not such income was earned before or after the
date of Casualty); (2) the Pro Rata Debt Amount associated with the Affected Site will be excluded from the Consolidated Debt Yield;
and (3) the debt service payments (including any interest payments) with respect to the Pro Rata Debt Amount will be excluded from
the Consolidated Pre-Compensation FCCR and the Consolidated Post-Compensation FCCR. The exclusions with respect to the Consolidated
Debt Yield, Consolidated Pre-Compensation FCCR and the Consolidated Post-Compensation FCCR in clauses (2) and (3) will cease upon
the Required Remargin Date. “Pro Rata Debt Amount” means the total outstanding principal amount of the
Revolving Loans as of the applicable date of determination, multiplied by a fraction the numerator of which is the portion of the
Total Borrowing Base Value attributable to the Affected Site, and the denominator of which is the Total Borrowing Base Value of
all Sites (including the Affected Site).

 

    	 	27	 

     

    

4.17         
Condemnation.

 

(a)               
Takings; Continuation of Obligations. If there is a taking of all or any portion of a Site or the commencement of
any proceedings or negotiations which might result in a taking, for any public or quasi-public purpose by any lawful authority
by exercise of the right of condemnation or by agreement between Agent, Borrower and those authorized to exercise such right in
lieu of condemnation (a “Taking”), Borrower will promptly give Agent written notice of the Taking, generally
describing the nature and extent. No Taking shall relieve Borrower of any of its Obligations, including its obligations to make
regularly scheduled payments of principal and interest under the Note and the other Loan Documents.

 

(b)              
Agent’s Right to Participate. Borrower shall not, without Agent’s prior written consent, which consent
shall not be unreasonably withheld, conditioned or delayed, settle, adjust, or compromise any claim for loss or damage in connection
with any Taking or proposed Taking and, without regard to the adequacy of its security, to commence, appear in and prosecute in
its own name or on behalf of Borrower any such action or proceeding arising out of or relating to a Taking or proposed Taking.

 

(c)               
Restoration Obligations. Promptly following the occurrence of a Taking, other than a Total Taking, Borrower shall,
at Borrower’s expense, commence and diligently complete the repair, restoration, replacement, and rebuilding of the Site
as nearly as possible to its value, condition and character immediately prior to the Taking (a “Condemnation Restoration”).
Borrower shall not be excused from repairing or maintaining any Site or from Borrower’s Condemnation Restoration obligation,
regardless of whether , regardless of whether or not there are Condemnation Proceeds available to Borrower or whether any such
Condemnation Proceeds are sufficient in amount, and the application or release by Agent of any Condemnation Proceeds shall not
cure or waive any Default or Event of Default under this Agreement or the other Loan Documents or invalidate any act done pursuant
thereto.

 

(d)              
Application of Condemnation Proceeds. All compensation, awards, damages, rights of action and proceeds awarded to
Borrower by reason of any such Taking or received by Borrower as the result of a transfer in lieu of a Taking (the “Condemnation
Proceeds”) are assigned to Agent and shall be paid directly to Agent. Borrower agrees to execute such further assignments
of the Condemnation Proceeds as Agent may require. If Borrower receives any Condemnation Proceeds, Borrower shall promptly pay
over such proceeds to Agent. All Condemnation Proceeds will be applied by Agent to payment of the Obligations in such order as
Agent, in its sole discretion, shall determine; provided, however, that if no Default or Event of Default has occurred
and is continuing and if the Taking is not a Total Taking (as determined by Agent in its sole discretion), and Condemnation Restoration
can be completed by the earlier of (1) the date that is six months prior to the Revolving Loan Maturity Date, or (2) the date that
is four months after the date the Condemnation Proceeds are paid to Agent (as determined by Agent in its reasonable discretion),
the Condemnation Proceeds, less costs, fees and expenses incurred by Agent and Borrower in the collection thereof, including reasonable
attorneys’ fees and expenses (the “Net Condemnation Proceeds”), shall be made available to Borrower,
to be used by Borrower to satisfy its Condemnation Restoration obligations, substantially in the manner and according to the procedures,
limitations, and requirements provided in Section 4.16 for the distribution of Net Insurance Proceeds, as if the
Net Condemnation Proceeds were Net Insurance Proceeds.

 

    	 	28	 

     

    

 

(e)               
Adjustments to Borrowing Base and Financial Covenants. If a Total Taking shall occur, the Site subject to the Taking
will no longer be a Borrowing Base Asset and Agent shall adjust the Borrowing Base Amount and financial covenants in Section 4.22
as if a Material Casualty occurred to the Site affected by the Taking as provided in Section 4.16(d) but substituting
(i) “Condemnation Proceeds” for “Insurance Proceeds”, (ii) “Taking” for “Casualty”,
and (iii) “Total Taking” for “Material Casualty” as used therein, and “Affected Site” shall
mean the Site affected by the Taking.

 

4.18         
License Agreement. The Credit Parties will (a) timely comply with and perform all of the franchisee’s or licensee’s
obligations under each License Agreement, including all remodeling and re-imaging obligations, and will give Agent prompt written
notice of the occurrence of any default by Borrower, any other Credit Party or the Licensor under such License Agreement and of
any notice of default given to Borrower or any other Credit Party by the Licensor; and (b) at all times cause each Borrowing Base
Asset to be subject to an Approved License Agreement or similar arrangement with an Approved Licensor who has executed and delivered
a Licensor comfort letter in form and substance satisfactory to the Agent in its sole discretion. Borrower will give Agent prompt
written notice of any bankruptcy filing by or against the Licensor of which Borrower or any other Credit Party has knowledge. Borrower
will send Agent copies of all notices given by Borrower or any other Credit Party to the Licensor concurrently with the giving
of such notices to the Licensor. The Credit Parties will keep each License Agreement in full force and effect and will exercise
all available options, such that the term of each License Agreement, as so extended, will not expire prior to the Revolving Loan
Maturity Date. Borrower will notify Agent immediately if any Site becomes subject to any PIP, and Borrower shall provide such information
with respect to such PIP as Agent may require, including the expected expenses, required reserves and compliance requirements.
Borrower will complete (or cause to be completed), in lien free condition, all improvements required pursuant to each PIP by the
date required thereunder.

 

4.19         
Management Agreement. The Credit Parties will (a) timely comply with and perform all of the property owner’s
obligations under the Management Agreement and will give Agent prompt written notice of the occurrence of any default by Borrower,
any other Credit Party, or Manager under the Management Agreement and of any notice of default given to Borrower or any other Credit
Party by Manager; and (b) at all times cause each Borrowing Base Asset to be managed and operated by an Approved Manager. Borrower
will also give Agent prompt written notice of any bankruptcy filing by or against Manager of which Borrower has knowledge. Borrower
will send Agent copies of all notices given by Borrower or any other Credit Party to Manager concurrently with the giving of such
notices to Manager. The Credit Parties will keep the Management Agreement in full force and effect and will exercise all available
options, such that the term of the Management Agreement, as so extended, will not expire prior to the Revolving Loan Maturity Date.
Borrower will set aside and maintain adequate reserves for repair, replacement and maintenance of each Site.

 

    	 	29	 

     

    

4.20         
Requirement to Operate as Permitted Concept. Borrower shall at all times occupy each Site and diligently operate
its business at each Site as the applicable Permitted Concept. Borrower shall not, and shall not permit any tenant to, by itself
or through any sale, lease or other type of transfer, convert such Site or other Collateral to an alternative use while this Agreement
is in effect, without Agent’s consent, in Agent’s sole discretion.

 

4.21         
Estoppel Certificates. From time to time and within 15 days after a request from Agent, Borrower will execute, acknowledge
and deliver to Agent a certificate in the form supplied by Agent, certifying: (a) whether, to Borrower’s knowledge,
there are then any existing Defaults or Events of Default by Borrower in the performance of its Obligations under any of the Loan
Documents, and, if there are any such Defaults, specifying the nature and extent thereof; and (b) as to such other facts and circumstances
as Agent may reasonably request.

 

4.22         
Financial Covenants. Borrower covenants and agrees that, so long as any Lender shall have any Commitment hereunder,
or any Loan or other Obligation (other than contingent indemnification Obligations to the extent no claim giving rise thereto has
been asserted) shall remain unpaid or unsatisfied, Borrower shall comply with the following financial covenants:

 

(a)               
Consolidated Debt Yield Test. As of the last day of each Fiscal Quarter occurring after the Closing Date, Borrower
must maintain a Consolidated Debt Yield equal to or greater than 12%

 

(b)              
Consolidated Pre-Compensation FCCR Test. Borrower must maintain a Consolidated Pre-Compensation FCCR of at least
1.50:1, computed for the trailing 12-month period ending on the last day of each Fiscal Quarter occurring after the Closing Date.

 

If Borrower shall not be in compliance
with such financial covenants (or any of them) as of the last day of any Fiscal Quarter, Borrower shall make a principal payment
within ten (10) days after Borrower’s Compliance Certificate for such Fiscal Quarter was due (i.e. no later than fifty-five
(55) days after the last day of such Fiscal Quarter) so as to reduce the outstanding principal amount of the Loan to the maximum
principal amount at which all of said financial covenants would have been satisfied. If Borrower timely makes such principal payment,
then (i) no Event of Default shall be deemed to have occurred and (ii) a Sweep Period shall not be deemed to have commenced.

 

4.23         
Credit Party Obligations. Borrower shall cause each Credit Party to comply with the terms of the Loan Documents applicable
to such Credit Party.

 

4.24         
Impounds.

 

(a)               
Right to Impound. Commencing upon written request made by Agent at any time an Event of Default exists (the “Impound
Commencement Date”), Borrower shall deposit with Agent the amounts described below, on a continuing basis until all
Liens securing the Obligations have been released or until Agent otherwise notifies Borrower.

 

    	 	30	 

     

    

 

(b)              
Impound Deposits. Monthly, on each Payment Day occurring after the Impound Commencement Date, Borrower shall deposit
with Agent an amount equal to 1/12th of the aggregate annual charges, as reasonably estimated by Agent, for all real property taxes
on each Site and, to the extent included with real property taxes, the amount of any levies and assessments (including special
district and improvement lien taxes, levies, and assessments) on the Sites (collectively, the “Tax & Assessment
Impositions”). On the Impound Commencement Date, Borrower shall deposit with Agent a sum of money that, together
with the monthly installments described above following the Impound Commencement Date, will be sufficient to pay the next installment
of Tax & Assessment Impositions 30 days prior to the date any delinquency or penalty becomes due with respect to such payment.
Amounts deposited with Agent pursuant to this subsection are referred to collectively as the “Tax & Assessment
Imposition Deposits”. Under no circumstances will Tax & Assessment Impositions be deemed to include income taxes,
sales tax, or payroll taxes.

 

(c)               
Use of Impound Deposits; Borrower’s Continuing Obligations. If Borrower is required to make Tax & Assessment
Imposition Deposits, Borrower will cause all bills, statements, or other documents relating to the Tax & Assessment Impositions
to be sent directly to Agent at least 30 days prior to the date on which such charges first become due and payable. Upon receipt
of such bills, statements, or other documents evidencing that an installment of Tax & Assessment Impositions is then payable,
and provided there are sufficient Tax & Assessment Imposition Deposits, Agent shall pay such amounts as may be due out of the
Tax & Assessment Imposition Deposits. If at any time and for any reason the Tax & Assessment Imposition Deposits are or
will be insufficient to pay such amounts, Agent shall notify Borrower and Borrower shall immediately deposit an amount equal to
such deficiency with Agent. In no event will Agent be deemed a trustee of Tax & Assessment Imposition Deposits or be obligated
to pay any amounts in excess of the amount of the Tax & Assessment Imposition Deposits. Agent may commingle Tax & Assessment
Imposition Deposits with its own funds, and Borrower shall not be entitled to interest thereon. Notwithstanding any impounding
for Tax & Assessment Impositions, Borrower has the primary and continuing obligation to pay all Tax & Assessment Impositions,
and Agent’s exercise of the right to impound shall not constitute a waiver of any Default or a release of Borrower from any
of such obligations.

 

4.25         
Borrowing Base Additions. Any approval of any new Borrowing Base Assets after the Closing Date will be in the sole
discretion of Agent and Required Lenders. Borrower may provide a written request to the Agent that a Hotel Asset (a “Proposed
Borrowing Base Asset”) be added as a Borrowing Base Asset and, in connection therewith, Borrower will deliver to
the Agent, at the Borrower’s expense, a Proposal Package with respect to such Proposed Borrowing Base Asset. Within 25 Business
Days after receipt of a complete Proposal Package, the Agent shall give written notice to the Borrower of whether the Agent and
the Required Lenders have conditionally approved such Proposed Borrowing Base Asset as a Borrowing Base Asset (any such notice
comprising a conditional approval, a “Conditional Approval Notice”). The delivery of a Conditional Approval
Notice, and any such approval or disapproval will be in the sole discretion of Agent and Required Lenders. After the issuance of
a Conditional Approval Notice, Borrower will be required to satisfy the conditions set forth in Schedule 2.3
and the Borrowing Base Conditions before the applicable Proposed Borrowing Base Asset is considered a Borrowing Base Asset. Failure
by Agent to provide a Conditional Approval Notice within such 25 Business Days will be deemed to constitute disapproval of the
Proposed Borrowing Base Asset. Within 45 days after receipt by the Borrower of a Conditional Approval Notice (which period may
be extended in the sole discretion of the Agent, at the Borrower’s request, for an additional 30 days), the conditions set
forth in Schedule 2.3 and the Borrowing Base Conditions must be satisfied in order for the Proposed Borrowing Base
Asset (as determined by Agent in its sole discretion) to be classified as a Borrowing Base Asset and, upon which, Agent will provide
a Borrowing Base Addition Notice to Borrower with respect to the applicable Hotel Asset.

 

    	 	31	 

     

    

 

4.26         
Periodic Appraisals. Agent or Required Lenders may require an Acceptable Appraisal of the Sites, or any of them,
or an update to a previously provided Acceptable Appraisal, indicating the present appraised value thereof as required by Agent:
(a) if Agent or Required Lenders determines in good faith that an appraisal is required as a result of (i) any law, regulation
or guideline or any change or interpretation thereof; or (ii) any central bank or other fiscal, monetary or other Government Authority
having jurisdiction over Agent or Lenders or their activities requesting, directing or imposing a condition upon Agent or Lenders
(whether or not such request, direction or condition shall have the force of law); (b) at any time after the occurrence and during
the continuance of a Default; (c) at any time after the occurrence of a Material Casualty or Total Taking; or (d) at any other
time or times required by Agent or Required Lenders. Appraisals and updates pursuant to this Section 4.26 shall be
at Borrower’s sole cost and expense, provided, however, with respect to Appraisals ordered pursuant to clause
(d), Agent will only charge Borrower for the cost of one such Appraisal for each Borrowing Base Asset per twelve (12) month
period. All appraisals and updates shall comply with Requirements of Law, as well as Agent’s internal requirements, and shall
be conducted by appraisers selected and retained by or on behalf of Agent. This Section shall not limit Borrower’s obligation
to pay expenses associated with appraisals obtained prior to the Closing Date, or in connection with a Borrowing Base Addition.

 

4.27         
Borrowing Base Assets. Borrower will cause all Borrowing Base Assets to satisfy the Borrowing Base Conditions at
all times.

 

4.28         
Obligations Regarding Representations and Warranties. Borrower will do all things necessary or appropriate such that
the representations and warranties of Borrower and the other Credit Parties contained in any of the Loan Documents remain true,
complete, and correct in all material respects.

 

4.29         
Post-Closing Requirements.Borrower agrees to satisfy the requirements set forth on Schedule 4.29 (“Post-Closing
Requirements”) by the applicable dates for such requirements as set forth in such schedule. It shall be an Event of Default,
for which there is no additional notice or cure period, if Borrower fails to satisfy the Post-Closing Requirements by the applicable
deadline and such failure continues without being fully cured for more than 10 days following written notice to Borrower of such
failure, whereupon Agent shall be entitled to exercise all of its rights and remedies under the Loan Agreement and the other Loan
Documents.

 

    	 	32	 

     

    

 

Article
5

NEGATIVE COVENANTS

 

Borrower covenants
and agrees that, so long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been asserted) shall remain unpaid or unsatisfied, Borrower
shall comply with the following and, to the extent a covenant is expressed as a covenant of a Credit Party or a Subsidiary of Borrower,
shall cause each such Credit Party or Subsidiary of Borrower to comply with the following:

 

5.1             
Limitation on Liens. Borrower shall not (and shall not permit any of its Subsidiaries to): (a) directly or indirectly,
make, create, incur, assume or suffer to exist any Lien upon or with respect to any of its Property, whether now owned or hereafter
acquired, other than the Permitted Liens and Permitted Encumbrances or (b) directly or indirectly, make, create, incur, assume
or suffer to exist any Lien upon or with respect to any of the Collateral, whether now owned or hereafter acquired, other than
the Permitted Liens and Permitted Encumbrances.

 

5.2             
Disposition of Assets.

 

(a)               
Transfers; Change of Control. Neither Borrower nor any of its Subsidiaries shall do or permit to be done, voluntarily
or involuntarily, or by operation of law or otherwise, any of the following without the prior written consent of Agent, in its
sole discretion:  (i) sell, lease, mortgage, pledge, license, assign, transfer, or otherwise encumber or dispose of any
Collateral to any Person, except for (1) sales of inventory in the ordinary course of business; (2) so long as no Default has occurred
and is continuing, sales or other dispositions of obsolete equipment consistent with past practices, so long as such items are
replaced by items of equal or greater value and utility; and (3) so long as no Default has occurred and is continuing, a Permitted
Transfer; (ii) sell, mortgage, pledge, assign, transfer, or otherwise encumber or dispose of its interest in this Agreement or
the other Loan Documents; (iii) engage in or allow a change of Control of Borrower or any of its Subsidiaries to occur, including
a change resulting from (1) direct or indirect transfers of beneficial ownership of, or the right and power to vote, any Stock
or Stock Equivalent, whether in one or a series of transactions; or (2) creation or issuance of new or additional equity interests;
(iv) pledge, assign, or otherwise encumber or dispose of any interest in Borrower or any of its Subsidiaries as collateral for
any obligation of a Credit Party or any other Person; or (v) enter into any agreement to do, or which would or could result in,
any of the foregoing.

 

(b)              
Permitted Transfers. Following a transfer of a Borrowing Base Asset pursuant to a Permitted Transfer, such Site shall
cease to be a Borrowing Base Asset and the Agent will, upon the request of the Borrower and at the Borrower’s expense, release
any Mortgages and UCC financing statements in favor of Agent from such transferred Borrowing Base Assets. Lenders hereby authorize
Agent to make such releases. As used herein, “Permitted Transfer” means the sale and transfer of any
Borrowing Base Asset to any Person that is not an Affiliate of Borrower, with the intention that such Borrowing Base Asset, upon
consummation of such transfer, shall no longer constitute a Borrowing Base Asset, provided that:

 

    	 	33	 

     

    

 

(i)                
immediately after giving effect to such transfer and the removal of the Site as a Borrowing Base Asset, (1) the remaining
Borrowing Base Assets shall continue to satisfy the requirements set forth in the definition of Borrowing Base Conditions, (2)
the outstanding principal balance of the Revolving Loans will not exceed the Borrowing Base Amount and (3) there will be three
(3) or more Borrowing Base Assets;

 

(ii)              
No Default shall have occurred and be continuing;

 

(iii)            
the Borrower shall be in compliance with the covenants contained in Section 4.22 on a pro forma basis
immediately after giving effect to such transfer and such Site no longer being a Borrowing Base Asset; and

 

(iv)            
on or prior to the date of such transfer, Borrower shall have delivered to the Agent (A) a Borrowing Base Certificate demonstrating
that the Total Borrowing Base Value (calculated on a pro forma basis after giving effect to such transfer) will be greater
than or equal to the aggregate outstanding principal balance of the Revolving Loans, and (B) a certificate of the Borrower demonstrating
compliance with the foregoing clauses (i) through (iii) and confirming that no Default shall exist on the date of such transfer
or will result therefrom, together with supporting information in detail satisfactory to the Agent.

 

5.3             
Maintenance of Existence; Consolidations and Mergers. Borrower shall not, and shall not permit any Credit Party to,
dissolve, liquidate, or otherwise cease to exist or merge, consolidate with or into, or convey, transfer, lease or otherwise dispose
of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter
acquired) to or in favor of any Person; provided, however, that the foregoing shall not operate to prevent a transaction
that results in the Obligations being paid and performed in full or a Permitted Transfer.

 

5.4             
Loans and Investments. Other than in connection with the acquisition of a Property constituting a Hotel Asset which,
upon such acquisition, will become a Borrowing Base Asset, Borrower shall not (and shall not permit any of its Subsidiaries to)
(a) purchase or acquire, or make any commitment to purchase or acquire any Stock or Stock Equivalents, or any obligations or other
securities of, or any interest in, any Person, including the establishment or creation of any Subsidiary; provided, however, Borrower
(or any of its Subsidiaries) may establish or create new Subsidiaries in connection with acquiring a Property constituting a Hotel
Asset which, upon such acquisition, will become a Borrowing Base Asset; (b) make or commit to make any acquisition of all or substantially
all of the assets of another Person, or of any business or division of any Person, including by way of merger, consolidation or
other combination; or (c) make or purchase or commit to make or purchase, any advance, loan, extension of credit or capital contribution
to or any other investment in, any Person including Borrower, any Affiliate of Borrower or any Subsidiary of Borrower (the foregoing
items being referred to as “Investments”).

 

    	 	34	 

     

    

 

5.5             
Limitation on Indebtedness. Borrower shall not, and shall not permit any of its Subsidiaries to, create, incur, assume,
permit to exist, or otherwise become or remain directly or indirectly liable with respect to, any Indebtedness, except (a) the
Obligations; (b) Indebtedness consisting of Contingent Obligations permitted pursuant to Section 5.9; (c) Indebtedness
consisting of Capital Lease Obligations with respect to any Borrowing Base Asset not to exceed five percent (5%) of the amount
of the Total Borrowing Base Value attributable to such Borrowing Base Asset in the aggregate at any time; and (d) other unsecured
Indebtedness consisting of trade payables incurred in the Ordinary Course of Business and not exceeding $500,000 in the aggregate
at any time with respect to any Borrowing Base Asset.

 

5.6             
Transactions with Affiliates. Borrower shall not enter into any transaction with any Affiliate, except (a) as expressly
permitted by this Agreement; or (b) in the Ordinary Course of Business and pursuant to the reasonable requirements of the business
of such Borrower upon fair and reasonable terms no less favorable to such Borrower than would be obtained in a comparable arm’s
length transaction with a Person not an Affiliate and which are disclosed in writing to Agent; provided, however,
that in no event shall a Credit Party perform or provide any management, consulting, administrative or similar services to or for
any Person other than another Credit Party.

 

5.7             
Management Fees and Compensation. No Credit Party shall pay any management, consulting or similar fees to any Affiliate
of any Credit Party or to any officer, director or employee of any Credit Party or any Affiliate of any Credit Party except payment
of reasonable compensation to officers and employees for actual services rendered in the Ordinary Course of Business;

 

5.8             
No Margin Stock. No Credit Party shall use any portion of the Loan proceeds, directly or indirectly, to purchase
or carry Margin Stock or repay or otherwise refinance Indebtedness of any Credit Party or others incurred to purchase or carry
Margin Stock, or otherwise in any manner which is in contravention of any Requirement of Law or in violation of this Agreement.
Borrower shall not use any proceeds of any Loan or the Collateral for personal, family, or household purposes.

 

5.9             
Contingent Obligations. Borrower shall not (and shall not permit any of its Subsidiaries to) create, incur, assume
or suffer to exist any Contingent Obligations except in respect of the Obligations and except (a) endorsements for collection
or deposit in the Ordinary Course of Business; (b) Rate Contracts entered into in the Ordinary Course of Business for bona fide
hedging purposes and not for speculation, with Agent’s prior written consent; and (c) Contingent Obligations arising under
indemnity agreements to title insurers to cause such title insurers to issue to Agent title insurance policies.

 

5.10         
No Benefit Plans. Neither Borrower nor any of the Credit Parties shall establish, maintain or incur any Liabilities
with respect to, any Title IV Plan, Multiemployer Plan or other material Benefit Plan.

 

5.11         
Restricted Payments. Borrower shall not declare or make any dividend payment or other distribution of assets, properties,
cash, rights, obligations or securities on account of any Stock or Stock Equivalent, or purchase, redeem or otherwise acquire for
value any Stock or Stock Equivalent now or hereafter outstanding if, either before or after giving effect to such transaction,
a Default or Event of Default would occur or has occurred and is continuing.

 

    	 	35	 

     

    

 

5.12         
Change in Business. Borrower shall not (a) make any changes in any of Borrower’s business objectives, purposes,
or operations that could reasonably be expected to adversely affect repayment of the Obligations or that could reasonably be expected
to have a Material Adverse Effect; or (b) carry on any business, operations or activities substantially different from those carried
on at the date hereof, including business, operations and activities reasonably related thereto.

 

5.13         
Change in Structure. Except as expressly permitted under Section 5.3, Borrower shall not (and
shall not permit any of its Subsidiaries to) amend any of its Organization Documents in any material respect or in any respect
adverse to Agent or the Lenders.

 

5.14         
Changes in Accounting. Borrower shall not make any significant change in accounting treatment or reporting practices,
except as required by GAAP or Requirement of Law, and then only after giving effect to the provisions of Section 10.8,
or change the Fiscal Year or method for determining Fiscal Quarters of Borrower.

 

5.15         
No Name or Other Organizational Changes. Borrower shall not (and shall not permit any of its Subsidiaries to) (a)
amend, restate, supplement, or terminate its Organization Documents in a manner that could reasonably be expected to have a Material
Adverse Effect; or (b) change any of the following from what it is as of the Closing: (i) its name; (ii) its place of business
or, if there is more than one principal place of business, its chief executive office; (iii) its mailing address; (iv) the location
of its books and records; (v) the type of legal entity that it is; (vi) the organization identification number issued by its state
of incorporation or organization, if it has one; however if Borrower does not have such a number and later obtains one, such Borrower
will immediately notify Agent of such number; or (vii) its state of incorporation or organization, without, in each instance, giving
Agent at least 45 days’ prior written notice thereof and taking all actions deemed necessary or appropriate by Agent
to continuously protect and perfect Agent’s Liens in the Collateral.

 

5.16         
No Negative Pledges. Borrower shall not, directly or indirectly, create or otherwise cause or suffer to exist or
become effective any consensual restriction or encumbrance of any kind on the ability of any Borrower to pay dividends or make
any other distribution on any of such Borrower’s Stock or Stock Equivalents or to pay fees, including management fees, or
make other payments and distributions to Borrower or any other Credit Party. Borrower shall not, directly or indirectly, enter
into, assume or become subject to any Contractual Obligation prohibiting or otherwise restricting the existence of any Agent Lien
upon its Property, whether now owned or hereafter acquired.

 

5.17         
Sale-Leasebacks. Borrower shall not engage in a sale leaseback, synthetic lease or similar transaction involving
any of its assets.

 

5.18         
License Agreement Modifications and Assignments. No Credit Party shall:  (a) agree to any License
Agreement amendment that could reasonably be expected to materially and adversely affect (i) the rights and privileges of franchisee
thereunder; or (ii) the rights, privileges, and remedies of Agent and the Lenders under the Loan Documents, with respect to the
Collateral or the License Agreement; or (b) assign, transfer, mortgage, pledge or otherwise encumber any License Agreement or any
interest therein to any Person other than Agent. Borrower shall send Agent a copy of all License Agreement amendments promptly
following execution thereof by Licensor and Borrower.

 

    	 	36	 

     

    

 

5.19         
The Management Agreement. Borrower shall not (and shall not permit any of its Subsidiaries to) (a) agree to any Management
Agreement amendment that could reasonably be expected to materially and adversely affect (i) the rights and privileges of
the owner thereunder; or (ii) the rights, privileges, and remedies of Agent under the Loan Documents with respect to the Collateral
or the Management Agreement; (b) assign, transfer, mortgage, pledge or otherwise encumber the Management Agreement or any interest
therein to any Person other than Agent; (c) make any change in Manager without Agent’s prior written consent, such consent
not to be unreasonably withheld, conditioned or delayed; or (d) become obligated with respect to any other Contractual Obligation
for the maintenance or operation of the Site or for providing services in connection with the Site, other than the Management Agreement
and other agreements entered into in the Ordinary Course of Business and on normal and customary terms. Borrower will send Agent
a copy of all Management Agreement amendments promptly following execution thereof by all parties thereto.

 

5.20         
Single Purpose Entity Requirements. Borrower shall not take any of the following actions: (a) engage in any business
or activity other than the acquisition and ownership of Subsidiaries directly or indirectly owning the Collateral and activities
incidental thereto; (b) acquire or own any material asset other than equity interest in such Subsidiaries; (c) commingle its assets
with the assets of any of its Affiliates or of any other Person or transfer any assets to any such Person other than transfers
and distributions on account of equity interests in the Borrower permitted pursuant to the Loan Documents; (d) allow any Person
to pay its debts and liabilities or fail to pay its debts and liabilities solely from its own assets; (e) fail to maintain its
records, books of account and bank accounts separate and apart from those of its Affiliates and any other Person; (f) fail to correct
any known misunderstandings regarding the separate identity of Borrower; (g) hold itself out to be responsible or pledge its assets
or credit worthiness for the debts of another Person or allow any Person to hold itself out to be responsible or pledge its assets
or credit worthiness for the debts of the Borrower (except for a Subsidiary Guarantor or Limited Guarantor); (h) make any loans
or advances to any Person, including any Affiliate of Borrower; (i) fail either to hold itself out to the public as a legal entity
separate and distinct from any other Person or to conduct its business solely in its own name in order not to mislead others as
to the Person with which such other party is transacting business, or to suggest that Borrower is responsible for the debts of
any third party (including any Affiliate of Borrower); or (j) conceal assets from any creditor, or enter into any transaction with
the intent to hinder, delay or defraud creditors of the Borrower or the creditors of any other Person.

 

    	 	37	 

     

    

 

Article
6

EVENTS OF DEFAULT

 

6.1             
Event of Default. Any of the following shall constitute an “Event of Default”:

 

(a)               
Non-Payment. (1) The Revolving Loans are not repaid in full on or before the Revolving Loan Maturity Date or (2)
any other Obligation for the payment of money is not paid within 10 days of the due date therefor, or if no specific due date is
specified, then within 10 days of written demand from Agent.

 

(b)              
Representation or Warranty. Any representation, warranty or certification by or on behalf of any Credit Party made
or deemed made herein, in any other Loan Document, or which is contained in any certificate, document, Financial Statement or other
statement by any such Person or their respective Responsible Officers, furnished at any time under this Agreement, or in or under
any other Loan Document, shall prove to have been incorrect in any material respect (without duplication of other materiality qualifiers
contained therein) on or as of the date made or deemed made.

 

(c)               
Specific Defaults. Any Credit Party fails to perform or observe any term, covenant or agreement contained in any
of Sections 4.7, 4.12, 4.22 or Article 5. A breach of a financial
covenant contained in Section 4.22 shall be deemed to have occurred as of the date ten (10) days after Borrower’s
Compliance Certificate for such Fiscal Quarter was due, regardless of when the Financial Statements reflecting such breach are
delivered to Agent, unless Borrower has made the principal paydown required by Section 4.22 within said ten
(10) day period. An Event of Default under either Section 4.22 or Article 5 shall conclusively
be deemed to be a continuing Event of Default until Agent, in its sole discretion, waives such Event of Default in writing.

 

(d)              
Financial Information. Any Credit Party fails to perform or observe any term, covenant or agreement contained in
Section 4.2 or Section 4.3(b), and, with respect to the first such failure in any twelve (12) month
period only, such Credit Party has not cured such failure within ten (10) Business Days after written notice from Agent.

 

(e)               
Material Adverse Effect. Any event or circumstance occurs that has had or could reasonably be expected to have a
Material Adverse Effect.

 

(f)               
Bankruptcy, Insolvency, and Certain Other Proceedings.

 

(i)                
Insolvency; Business Cessation. Any Credit Party (A) ceases to be Solvent; (B) generally fails to pay, or admits
in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any, whether at stated maturity
or otherwise; (C) voluntarily ceases to conduct its business in the ordinary course for not less than 20 consecutive Business
Days; or (D) takes any action to effectuate or authorize any of the foregoing;

 

(ii)              
Insolvency Proceedings. Any Credit Party shall institute or have instituted against it any proceeding or other action
under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization,
conservatorship, receivership, or relief of debtors, (A) seeking to adjudicate it bankrupt or insolvent; (B) seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, composition of it or its debts or any similar order; or
(C) seeking entry of an order for relief or appointment of a custodian, receiver, trustee, conservator, liquidating agent, liquidator,
or other official with similar powers, for it or for any substantial part of its property; and in the case of any such proceeding
or other action instituted against (but not by or with the consent of) such Credit Party, either (i) such proceeding or action
shall remain undismissed or unstayed for a period of 60 days or more; or (ii) any action sought in such proceedings shall occur;

 

    	 	38	 

     

    

 

(iii)            
Failure of Enforceability or Lien. If (A) any material provision of any Loan Document shall, at any time after the
delivery of such Loan Document, fail to be valid and binding on, or enforceable against, a Credit Party; (B) any Loan Document
purporting to grant a Lien to secure any Obligation shall, at any time after the delivery thereof, fail to create a valid and enforceable
Lien on any Collateral purported to be covered thereby; (C) any such Lien shall fail or cease to be a perfected Lien with the priority
required in the relevant Loan Document; or (D) a Credit Party shall state in writing that any of the events described in the preceding
clauses of this subsection has occurred; or

 

(iv)            
Actions in Furtherance. Any Credit Party shall take any action to authorize or effectuate, or otherwise further,
any action or circumstance described in the preceding clauses of this subsection (f).

 

(g)              
Monetary Judgments. One or more judgments, non-interlocutory orders, decrees or arbitration awards shall be entered
against any one or more of the Credit Parties involving in the aggregate a liability of $500,000 or more (provided that the applicable
threshold for Limited Guarantor shall be $10,000,000), excluding amounts covered by insurance to the extent the relevant independent
third-party insurer has not denied coverage therefor, and the same shall remain unsatisfied, unvacated, unbonded and unstayed by
reason of a pending appeal for a period of 30 days after the entry thereof.

 

(h)              
Non-Monetary Judgments. One or more non-monetary judgments, orders or decrees shall be rendered against any one or
more of the Credit Parties which has or would reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect, and there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect.

 

(i)                
Cross Default. Any Credit Party (i) fails to make any payment in respect of any Indebtedness (other than the Obligations)
or Contingent Obligation (other than the Obligations) having an aggregate principal amount (including undrawn committed or available
amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $500,000
(except that the applicable threshold for Limited Guarantor shall be $10,000,000) when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) and such failure continues after the applicable grace or notice period, if any,
specified in the document relating thereto on the date of such failure; or (ii) fails to perform or observe any other condition
or covenant, or any other event shall occur or condition exist, under any agreement or instrument relating to any such Indebtedness
or Contingent Obligation (other than Contingent Obligations owing by one Credit Party with respect to the obligations of another
Credit Party permitted hereunder or earnouts permitted hereunder), if the effect of such failure, event or condition is to cause,
or to permit, the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee or
agent on behalf of such holder or holders or beneficiary or beneficiaries) to declare the same to be due and payable prior to its
stated maturity (without regard to any subordination terms with respect thereto), or such Contingent Obligation to become payable
or cash collateral in respect thereof to be demanded.

 

    	 	39	 

     

    

 

(j)                
Dissolution. Any entity Credit Party is dissolved or its existence is terminated or there is commenced against any
such Credit Party any action or proceeding which seeks as one of its remedies the dissolution of such Credit Party or termination
of its existence and the same shall remain undismissed or unstayed for a period of 60 days or more.

 

(k)              
License Agreement; Management Agreement. The License Agreement or the Management Agreement terminates or expires
(without same having been replaced in accordance with this Agreement) prior to the performance and payment in full of the Obligations.

 

(l)                
Crimes and Forfeitures. Any executive officer of a Credit Party shall be indicted for a crime, a punishment for which
could include (i) the forfeiture of any assets of such Credit Party or of any equity interest in such Credit Party; (ii) the loss
of eligibility for any permit; (iii) imprisonment; or (iv) a material fine or other material monetary penalty.

 

(m)            
Other Defaults. Any Credit Party fails to observe or perform any of the covenants, conditions, or obligations of
this Agreement or any of the other Loan Documents, other than those referred to in the other subsections of this Section 6.1,
and such failure continues unremedied for a period of 30 days after the earlier to occur of (i) the date upon which a Responsible
Officer of any Credit Party becomes aware of such failure; and (ii) the date upon which written notice thereof is given to the
Borrower by Agent or Required Lenders. However, if such failure is not willful or intentional, does not place any rights or interest
in any Collateral in immediate jeopardy, and is within the reasonable power of such Credit Party to cure after receipt of notice
thereof, all as determined by Agent in its reasonable discretion, then such failure shall not constitute an Event of Default (unless
otherwise expressly provided) if during such 30-day period, such Credit Party begins to cure the failure and then diligently pursues
the cure to completion, except that in no event will the cure period under this subsection exceed 60 days from the date such
Credit Party receives the notice from Lender. If such Credit Party fails to cure such failure within the time periods provided
in this subsection, an Event of Default shall be deemed to have occurred without further notice or demand of any kind being required.

 

(n)              
Other Events of Default. Any other event or circumstance designated elsewhere in this Agreement or the other Loan
Documents as an Event of Default.

 

    	 	40	 

     

    

 

6.2             
Remedies. Upon the occurrence and during the continuance of any Event of Default, Agent may, and shall at the request
of the Required Lenders:

 

(a)               
Suspension and Termination of Commitments. Suspend or terminate all or any portion of any one or more of the Commitments
of each Lender to make Loans, whereupon all or such portion of such Commitments shall forthwith be suspended or terminated;

 

(b)              
Acceleration. Upon five days advance written notice from Agent to Borrower, declare all or any portion of the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder
or under any other Loan Document to be immediately due and payable, all without presentment, demand, protest or other further notice
of any kind, all of which are hereby expressly waived by each Credit Party; and/or

 

(c)               
Exercise Rights and Remedies. Exercise on behalf of itself and the Lenders all rights and remedies available to it
and the Lenders under the Loan Documents or applicable law;

 

provided, however, that upon
the occurrence of an Event of Default under Section 6.1(f), the obligation of each Lender to make Loans shall
automatically terminate and the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable without further act of Agent or any Lender.

 

6.3             
Rights Not Exclusive. The rights provided for herein and in the other Loan Documents are cumulative and are not exclusive
of any other rights, powers, privileges or remedies provided by law or in equity, or under any other instrument, document or agreement
now existing or hereafter arising. Neither the acceptance of this Agreement nor its enforcement shall prejudice or in any manner
affect Agent’s rights to realize upon or enforce its rights with respect to any security now or in the future held by Agent,
and Agent and the Lenders are entitled to enforce this Agreement and its rights and remedies with respect to any such security
in such order and manner as they may in their sole discretion determine.

 

6.4             
Late Fees. If Borrower fails to make any payment (excluding payment in full at maturity, whether by acceleration
or otherwise) on or before the 10th day after the due date for such Payment, then Borrower shall pay Agent a late fee equal to
5% of such past-due payment, which Agent shall be entitled to retain. Such late fee will be immediately due and payable and is
in addition to any other charges, costs, fees, and expenses that Borrower may owe as a result of the late Payment, including the
imposition of a default rate of interest pursuant to this Agreement or, where applicable, pursuant to any other Loan Document.

 

6.5             
No Waiver or Cure. Neither the application of a default rate of interest in the circumstances described herein or
in any of the other Loan Documents nor the imposition of any late fee shall be interpreted to extend any cure period set forth
herein or in any other Loan Document, to cure any Default or Event of Default, or to otherwise limit or waive any of the rights
or remedies of Agent and the Lenders under this Agreement or any other Loan Document.

 

6.6             
Full Payment Required. The acceptance by Agent of any sum after the same is due shall not constitute a waiver of
the right either to require prompt payment, when due, of all other sums hereby secured or to declare a subsequent Event of Default.
The acceptance by Agent of any sum in an amount less than the sum then due shall be deemed to be an acceptance on account only
and upon condition that it shall not constitute a waiver of Borrower’s obligation to pay the entire sum then due, and Borrower’s
failure to pay such entire sum then due shall, at Agent or the Required Lenders’ election, constitute an immediate Event
of Default without the necessity for any further notice, notwithstanding such acceptance of such amount on account.

 

    	 	41	 

     

    

 

6.7             
Credit Bidding. Agent or any Lender may purchase, in any public or private sale conducted under the provisions of
the UCC (including pursuant to Sections 9-610 and 9-620 of the UCC), the provisions of the Bankruptcy Code (including pursuant
to Section 363 of the Bankruptcy Code) or at any sale or foreclosure conducted by Agent (whether by judicial action or otherwise)
in accordance with applicable laws, rules and regulations, all or any portion of the Collateral. The Lenders hereby irrevocably
authorize Agent, upon the written consent of the Agent and Required Lenders, to Credit Bid (in an amount and on such terms as may
be directed by Required Lenders and purchase at any such sale (either directly or through one or more acquisition vehicles) all
or any portion of the Collateral on behalf of and for the benefit of the Lenders (but not as agent for any individual Lender or
Lenders, unless the Required Lenders shall otherwise agree in writing). Each Lender hereby agrees that, except as otherwise provided
in the Loan Documents or with the written consent of Agent and the Required Lenders, it will not exercise any right that it might
otherwise have to Credit Bid at any sales of all or any portion of the Collateral conducted under the provisions of the UCC or
the Bankruptcy Code, foreclosure sales or other similar dispositions of Collateral.

 

Article
7

AGENT

 

7.1             
Appointment and Duties.

 

(a)               
Appointment of Agent. Each Lender hereby appoints Western Alliance Bank (together with any successor Agent pursuant
to Section 7.9) as Agent hereunder and authorizes Agent to (i) execute and deliver the Loan Documents and accept
delivery thereof on its behalf from any Credit Party; (ii) take such action on its behalf and to exercise all rights, powers and
remedies and perform the duties as are expressly delegated to Agent under such Loan Documents; and (iii) exercise such powers as
are reasonably incidental thereto.

 

(b)              
Duties as Collateral and Disbursing Agent. Without limiting the generality of Section 7.1(a),
Agent shall have the sole and exclusive right and authority (to the exclusion of the Lenders), and is hereby authorized, to (i)
act as the disbursing and collecting agent for the Lenders with respect to all payments and collections arising in connection with
the Loan Documents, including in any proceeding described in Section 6.1(f)(ii) or any other bankruptcy, insolvency
or similar proceeding, and each Person making any payment in connection with any Loan Document to any Secured Party is hereby authorized
to make such payment to Agent; (ii) file and prove claims and file other documents necessary or desirable to allow the claims of
the Secured Parties with respect to any Obligation in any proceeding described in Section 6.1(f) or any other
bankruptcy, insolvency or similar proceeding (but not to vote, consent or otherwise act on behalf of such Person); (iii) act as
collateral agent for each Secured Party for purposes of the perfection of all Liens created by such agreements and all other purposes
stated therein; (iv) manage, supervise and otherwise deal with the Collateral; (v) take such other action as is necessary or desirable
to maintain the perfection and priority of the Liens created or purported to be created by the Loan Documents; (vi) except as may
be otherwise specified in any Loan Document, exercise all remedies given to Agent and the other Secured Parties with respect to
the Credit Parties and/or the Collateral, whether under the Loan Documents, applicable Requirements of Law or otherwise; and (vii)
execute any amendment, consent or waiver under the Loan Documents on behalf of any Lender that has consented in writing to such
amendment, consent or waiver; provided, however, that Agent hereby appoints, authorizes and directs each Lender to
act as collateral sub-agent for Agent and the Lenders for purposes of the perfection of all Liens with respect to the Collateral,
including any deposit account maintained by a Credit Party with, and cash and Cash Equivalents held by, such Lender, and may further
authorize and direct the Lenders to take further actions as collateral sub-agents for purposes of enforcing such Liens or otherwise
to transfer the Collateral subject thereto to Agent, and each Lender hereby agrees to take such further actions to the extent,
and only to the extent, so authorized and directed.

 

    	 	42	 

     

    

 

(c)               
Limited Duties. Under the Loan Documents, Agent (i) is acting solely on behalf of the Secured Parties (except to
the limited extent provided in Section 1.8(b) with respect to the Register), with duties that are entirely administrative
in nature, notwithstanding the use of the defined term “Agent”, the terms “agent”, “Agent”
and “collateral agent” and similar terms in any Loan Document to refer to Agent, which terms are used for title purposes
only; (ii) is not assuming any obligation under any Loan Document other than as expressly set forth therein or any role as agent,
fiduciary or trustee of or for any Lender or any other Person; and (iii) shall have no implied functions, responsibilities, duties,
obligations or other liabilities under any Loan Document. Each Secured Party, by accepting the benefits of the Loan Documents,
hereby waives and agrees not to assert any claim against Agent based on the roles, duties and legal relationships expressly disclaimed
in this subsection.

 

7.2             
Binding Effect. Each Secured Party, by accepting the benefits of the Loan Documents, agrees that (i) any action taken
by Agent or the Required Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with the
provisions of the Loan Documents; (ii) any action taken by Agent in reliance upon the instructions of Required Lenders (or, where
so required, such greater proportion); and (iii) the exercise by Agent or the Required Lenders (or, where so required, such greater
proportion) of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall
be authorized and binding upon all of the Secured Parties.

 

7.3             
Use of Discretion.

 

(a)               
No Action without Instructions. Agent shall not be required to exercise any discretion or take, or to omit to take,
any action, including with respect to enforcement or collection, except any action it is required to take or omit to take (i) under
any Loan Document; or (ii) pursuant to instructions from the Required Lenders (or, where expressly required by the terms of this
Agreement, a greater proportion of the Lenders).

 

(b)              
Right Not to Follow Certain Instructions. Notwithstanding the provisions of Section 7.3(a), Agent
shall not be required to take, or to omit to take, any action (i) unless, upon demand, Agent receives an indemnification satisfactory
to it from the Lenders (or, to the extent applicable and acceptable to Agent, any other Person) against all Liabilities that, by
reason of such action or omission, may be imposed on, incurred by or asserted against Agent or any Related Person thereof or (ii)
that is, in the opinion of Agent or its counsel, contrary to any Loan Document or applicable Requirement of Law.

 

    	 	43	 

     

    

 

(c)               
Exclusive Right to Enforce Rights and Remedies. Notwithstanding anything to the contrary contained herein or in any
other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Credit
Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement
shall be instituted and maintained exclusively by, Agent in accordance with the Loan Documents for the benefit of all Lenders;
provided, however, that the foregoing shall not prohibit (i) Agent from exercising on its own behalf the rights and
remedies that inure to its benefit (solely in its capacity as Agent) hereunder and under the other Loan Documents; (ii) any Lender
from exercising setoff rights in accordance with and subject to the provisions of Section 8.11; or (iii) any
Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative
to any Credit Party under any bankruptcy or other debtor relief law; and provided further, however, that, if at any
time there is no Person acting as Agent hereunder and under the other Loan Documents, then (A) the Required Lenders shall
have the rights otherwise ascribed to Agent pursuant to Article 7; and (B) in addition to the matters set forth
in clause (ii) and clause (iii) of the preceding proviso and subject to Section 8.11,
any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by
the Required Lenders.

 

7.4             
Delegation of Rights and Duties. Agent may, upon any term or condition it specifies, delegate or exercise any of
its rights, powers and remedies under, and delegate or perform any of its duties or any other action with respect to, any Loan
Document by or through any trustee, co-agent, employee, attorney-in-fact and any other Person (including any Secured Party). Any
such Person shall benefit from this Article to the extent provided by Agent.

 

7.5             
Reliance and Liability.

 

(a)               
Right to Rely and Take Certain Actions. Agent may, without incurring any liability hereunder: (i) treat the payee
of any Revolving Loan Note as its holder until such Revolving Loan Note has been assigned in accordance with Section 8.9;
(ii) rely on the Register to the extent set forth in Section 1.8; (iii) consult with any of its Related Persons
and, whether or not selected by it, any other advisors, accountants and other experts (including advisors to, and accountants and
experts engaged by, any Credit Party); and (iv) rely and act upon any document and information (including those that are transmitted
as an E-Transmission) and any telephone message or conversation, in each case believed by it to be genuine and transmitted, signed
or otherwise authenticated by the appropriate parties.

 

(b)              
No Liability. None of Agent or its Related Persons shall be liable for any action taken or omitted to be taken by
any of them under or in connection with any Loan Document, and each Secured Party and Credit Party hereby waive and shall not assert
any right, claim or cause of action based thereon, except to the extent of liabilities resulting primarily from the gross negligence
or willful misconduct of Agent or, as the case may be, such Related Person (each as determined in a final, non-appealable judgment
by a court of competent jurisdiction) in connection with the duties expressly set forth herein. Without limiting the foregoing,
Agent:

 

    	 	44	 

     

    

 

(i)                
Shall not be responsible or otherwise incur liability for any action or omission taken in reliance upon the instructions
of the Required Lenders or for the actions or omissions of any of its Related Persons selected with reasonable care (other than
employees, officers and directors of Agent, when acting on behalf of Agent);

 

(ii)              
Shall not be responsible to any Lender or other Person for the due execution, legality, validity, enforceability, effectiveness,
genuineness, sufficiency or value of, or the attachment, perfection or priority of any Lien created or purported to be created
under or in connection with, any Loan Document;

 

(iii)            
Makes no warranty or representation, and shall not be responsible, to any Lender or other Person for any statement, document,
information, representation or warranty made or furnished by or on behalf of any Credit Party or any Related Person of any Credit
Party in connection with any Loan Document or any transaction contemplated therein or any other document or information with respect
to any Credit Party, whether or not transmitted or (except for documents expressly required under any Loan Document to be transmitted
to the Lenders) omitted to be transmitted by Agent, including as to completeness, accuracy, scope or adequacy thereof, or for the
scope, nature or results of any due diligence performed by Agent in connection with the Loan Documents; and

 

(iv)            
Shall not have any duty to ascertain or to inquire as to the performance or observance of any provision of any Loan Document,
whether any condition set forth in any Loan Document is satisfied or waived, as to the financial condition of any Credit Party
or as to the existence or continuation or possible occurrence or continuation of any Default or Event of Default and shall not
be deemed to have notice or knowledge of such occurrence or continuation unless it has received a notice from Borrower or a Lender
describing such Default or Event of Default that is clearly labeled “notice of default” (in which case Agent shall
promptly give notice of such receipt to all Lenders);

 

(c)               
and, for each of the items set forth in clauses (i) through (iv) above, each Lender and
Credit Party hereby waive and agree not to assert any right, claim or cause of action it might have against Agent based thereon.

 

7.6             
Agent Individually. Agent and its Affiliates may make loans and other extensions of credit to, acquire Stock and
Stock Equivalents of, engage in any kind of business with, any Credit Party or Affiliate thereof as though it were not acting as
Agent and may receive separate fees and other payments therefor. To the extent Agent or any of its Affiliates makes any Loan or
otherwise becomes a Lender hereunder, it shall have and may exercise the same rights and powers hereunder and shall be subject
to the same obligations and liabilities as any other Lender and the terms “Lender”, “Revolving Loan Lender”,
“Required Lender”, and any similar terms shall, except where otherwise expressly provided in any Loan Document, include
Agent or such Affiliate, as the case may be, in its individual capacity as Lender, Revolving Loan Lender or as one of the Required
Lenders, respectively.

 

    	 	45	 

     

    

 

7.7             
Lender Credit Decision.

 

(a)               
Lenders to Make Independent Credit Decisions. Each Lender acknowledges that it shall, independently and without reliance
upon Agent, any Lender, or any of their Related Persons, or upon any document (including any offering and disclosure materials
in connection with the syndication of the Loans) solely or in part because such document was transmitted by Agent or any of its
Related Persons, conduct its own independent investigation of the financial condition and affairs of each Credit Party and make
and continue to make its own credit decisions in connection with entering into, and taking or not taking any action under, any
Loan Document or with respect to any transaction contemplated in any Loan Document, in each case based on such documents and information
as it shall deem appropriate. Except for documents expressly required by any Loan Document to be transmitted by Agent to the Lenders,
Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, Property, financial and other condition or creditworthiness of any Credit Party or any Affiliate of any
Credit Party that may come in to the possession of Agent or any of its Related Persons.

 

    	 	46	 

     

    

 

(b)              
MNPI. If any Lender has elected to abstain from receiving MNPI concerning the Credit Parties or their Affiliates,
such Lender acknowledges that, notwithstanding such election, Agent and/or the Credit Parties will, from time to time, make available
syndicate-information (which may contain MNPI) as required by the terms of, or in the course of administering, the Loans to the
credit contact(s) identified for receipt of such information on the Lender’s administrative questionnaire who are able to
receive and use all syndicate-level information (which may contain MNPI) in accordance with such Lender’s compliance policies
and contractual obligations and applicable law, including federal and state securities laws; provided, however, that
if such contact is not so identified in such questionnaire, the relevant Lender hereby agrees to promptly (and in any event within
one Business Day) provide such a contact to Agent and the Credit Parties upon request therefor by Agent or the Credit Parties.
Notwithstanding such Lender’s election to abstain from receiving MNPI, such Lender acknowledges that if such Lender chooses
to communicate with Agent, it assumes the risk of receiving MNPI concerning the Credit Parties or their Affiliates.

 

7.8             
Expenses; Indemnities; Withholding.

 

(a)               
Reimbursement for Certain Costs and Expenses. Each Lender agrees to reimburse Agent and each of its Related Persons
(to the extent not reimbursed by any Credit Party) promptly upon demand, severally and ratably, for any costs and expenses (including
fees, charges and disbursements of financial, legal and other advisors and Taxes paid in the name of, or on behalf of, any Credit
Party) that may be incurred by Agent or any of its Related Persons in connection with the preparation, syndication, execution,
delivery, administration, modification, consent, waiver or enforcement of, or the taking of any other action (whether through negotiations,
through any work-out, bankruptcy, restructuring or other legal or other proceeding, including preparation for and/or response to
any subpoena or request for document production relating thereto, or otherwise) in respect of, or legal advice with respect to
its rights or responsibilities under, any Loan Document.

 

(b)              
Indemnification of Agent. Each Lender further agrees to indemnify Agent and each of its Related Persons (to the extent
not reimbursed by any Credit Party), severally and ratably, from and against Liabilities (including, to the extent not indemnified
pursuant to Section 7.8(c), Taxes, interests and penalties imposed for not properly withholding or backup withholding
on payments made to or for the account of any Lender) that may be imposed on, incurred by or asserted against Agent or any of its
Related Persons in any matter relating to or arising out of, in connection with or as a result of any Loan Document or any other
act, event or transaction related, contemplated in or attendant to any such Loan Document, or, in each case, any action taken or
omitted to be taken by Agent or any of its Related Persons under or with respect to any of the foregoing; provided, however,
that no Lender shall be liable to Agent or any of its Related Persons to the extent such liability has resulted primarily from
the gross negligence or willful misconduct of Agent or, as the case may be, such Related Person, as determined by a court of competent
jurisdiction in a final non-appealable judgment or order.

 

(c)               
Tax Withholding. To the extent required by any applicable law, Agent may withhold from any payment to any Lender
under a Loan Document an amount equal to any applicable withholding tax. If (i) the IRS or any other Governmental Authority asserts
a claim that Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate
certification form was not delivered, was not properly executed, or fails to establish an exemption from, or reduction of, withholding
tax with respect to a particular type of payment, or because such Lender failed to notify Agent or any other Person of a change
in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason); or
(ii) Agent reasonably determines that it was required to withhold Taxes from a prior payment but failed to do so, such Lender shall
promptly indemnify Agent fully for all amounts paid, directly or indirectly, by Agent as tax or otherwise, including penalties
and interest, and together with all expenses incurred by Agent, including legal expenses, allocated internal costs and out-of-pocket
expenses. Agent may offset against any payment to any Lender under a Loan Document, any applicable withholding tax that was required
to be withheld from any prior payment to such Lender but which was not so withheld, as well as any other amounts for which Agent
is entitled to indemnification from such Lender under this Section 7.8(c).

 

7.9             
Resignation of Agent.

 

(a)               
Resignation and Successor Agent. Agent may resign at any time by delivering notice of such resignation to Lenders
and Borrower, effective on the date set forth in such notice or, if no such date is set forth therein, upon the date such notice
shall be effective, in accordance with the terms of this Section 7.9. If Agent delivers any such notice, the
Required Lenders shall have the right to appoint a successor Agent. If, after 30 days following the date of the retiring Agent’s
notice of resignation, no successor Agent has been appointed by the Required Lenders that has accepted such appointment, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent from among the Lenders. Each appointment under this subsection (a)
shall be subject to the prior consent of Borrower, which may not be unreasonably withheld but shall not be required during the
continuance of an Event of Default.

 

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(b)              
Discharge; Rights of Successor. Effective immediately upon its resignation, (i) the retiring Agent shall be discharged
from its duties and obligations under the Loan Documents; (ii) the Lenders shall assume and perform all of the duties of Agent
until a successor Agent shall have accepted a valid appointment hereunder; (iii) the retiring Agent and its Related Persons shall
no longer have the benefit of any provision of any Loan Document other than with respect to any actions taken or omitted to be
taken while such retiring Agent was, or because such Agent had been, validly acting as Agent under the Loan Documents; and (iv) subject
to its rights under Section 7.3, the retiring Agent shall take such action as may be reasonably necessary to
assign to the successor Agent its rights as Agent under the Loan Documents. Effective immediately upon its acceptance of a valid
appointment as Agent, a successor Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties
of the retiring Agent under the Loan Documents.

 

7.10         
Release of Collateral or Guarantors. Each Lender hereby consents to the release and hereby directs Agent to release
any Lien held by Agent for the benefit of the Secured Parties against (a) any Collateral that is sold, transferred, conveyed or
otherwise disposed of by a Credit Party in a transaction permitted by the Loan Documents (including pursuant to a valid waiver
or consent); and (b) all of the Collateral and all Credit Parties, upon (i) termination of the Revolving Loan Commitments; (ii)
payment and satisfaction in full of all Loans and all other Obligations under the Loan Documents and all Obligations arising under
Secured Rate Contracts, that Agent has theretofore been notified in writing by the holder of such Obligation are then due and payable;
(iii) deposit of cash collateral with respect to all Contingent Obligations in amounts and on terms and conditions and with parties
satisfactory to Agent and each Indemnitee that is, or may be, owed such Obligations (excluding Contingent Obligations as to which
no claim has been asserted); and (iv) to the extent requested by Agent, receipt by Agent and the Secured Parties of liability releases
from the Credit Parties each in form and substance reasonably acceptable to Agent. Each Lender hereby directs Agent, and Agent
hereby agrees, upon receipt of reasonable advance notice from Borrower, to execute and deliver or file such documents and to perform
other actions reasonably necessary to release the guaranties and Liens when and as directed in this Section.

 

7.11         
Additional Secured Parties. The benefit of the provisions of the Loan Documents directly relating to the Collateral
or any Lien granted thereunder shall extend to and be available to any Secured Party that is not a Lender as long as, by accepting
such benefits, such Secured Party agrees, as among Agent and all other Secured Parties, that such Secured Party is bound by (and,
if requested by Agent, shall confirm such agreement in a writing in form and substance acceptable to Agent) this Article 7,
Sections 8.3, 8.9, 8.10, 8.11, 8.17, 8.26,
and 9.1, and the decisions and actions of Agent and the Required Lenders (or, where expressly required by the terms
of this Agreement, a greater proportion of the Lenders or other parties hereto as required herein) to the same extent a Lender
is bound; provided, however, that, notwithstanding the foregoing: (a) such Secured Party shall be bound by Section 7.8
only to the extent of Liabilities, costs and expenses with respect to or otherwise relating to the Collateral held for the benefit
of such Secured Party, in which case the obligations of such Secured Party thereunder shall not be limited by any concept of pro
rata share or similar concept; (b) each of Agent and the Lenders shall be entitled to act at their sole discretion, without regard
to the interest of such Secured Party, regardless of whether any Obligation to such Secured Party thereafter remains outstanding,
is deprived of the benefit of the Collateral, becomes unsecured or is otherwise affected or put in jeopardy thereby, and without
any duty or liability to such Secured Party or any such Obligation; and (c) except as otherwise set forth herein, such Secured
Party shall not have any right to be notified of, consent to, direct, require or be heard with respect to, any action taken or
omitted in respect of the Collateral or under any Loan Document.

 

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Article
8

GENERAL PROVISIONS

 

8.1             
Amendments and Waivers.

 

(a)               
Amendments and Waivers Generally. No amendment or waiver of any provision of this Agreement or any other Loan Document,
and no consent with respect to any departure by any Credit Party therefrom, shall be effective unless the same shall be in writing
and signed by Agent, the Required Lenders (or by Agent with the consent of the Required Lenders), and Borrower and then such waiver
shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such waiver, amendment, or consent shall, unless in writing and signed by all Lenders directly affected thereby (or by
Agent with the consent of all Lenders directly affected thereby), in addition to Agent, the Required Lenders (or by Agent with
the consent of the Required Lenders) and Borrower, do any of the following (it being agreed that all Lenders shall be deemed to
be directly affected by an amendment or waiver of the type described in clauses(v), (vi), and (vii)
below):

 

(i)                
Increase or extend the Commitment of any Lender or reinstate any Commitment suspended or terminated pursuant to Section 6.2(a);

 

(ii)              
Postpone or delay any date fixed for, or reduce or waive, any scheduled installment of principal or any payment of interest,
fees or other amounts (other than principal) due to the Lenders (or any of them) hereunder or under any other Loan Document;

 

(iii)            
Reduce the principal of, or the rate of interest specified herein (it being agreed, however, that waiver of the default
interest margin shall only require the consent of Required Lenders) or the amount of interest payable in cash specified herein
on any Loan, or of any fees or other amounts payable hereunder or under any other Loan Document;

 

(iv)            
Amend or modify Section 1.11(c);

 

(v)              
Change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans which shall be required
for the Lenders or any of them to take any action hereunder;

 

(vi)            
Amend this Section 8.1, other than Section 8.1(d), or, subject to the terms of this
Agreement, the definition of Required Lenders or any provision providing for consent or other action by all Lenders; or

 

(vii)          
Discharge any Credit Party from its respective payment Obligations under the Loan Documents, or release all or substantially
all of the Collateral, except as otherwise may be provided in this Agreement or the other Loan Documents;

 

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(b)              
Amendments Affecting Rights of Agent. No amendment, waiver or consent shall, unless in writing and signed by Agent,
in addition to the Required Lenders or all Lenders directly affected thereby, as the case may be (or by Agent with the consent
of the Required Lenders or all Lenders directly affected thereby, as the case may be), affect the rights or duties of Agent under
this Agreement or any other Loan Document.

 

(c)               
Secured Rate Contracts. No amendment, modification or waiver of this Agreement or any Loan Document altering the
ratable treatment of Obligations arising under Secured Rate Contracts resulting in such Obligations being junior in right of payment
to principal on the Loans or resulting in Obligations owing to any Secured Swap Provider becoming unsecured (other than releases
of Liens permitted in accordance with the terms hereof), in each case in a manner adverse to any Secured Swap Provider, shall be
effective without the written consent of such Secured Swap Provider or, in the case of a Secured Rate Contract provided or arranged
by Western Alliance Bank or an Affiliate of Western Alliance Bank.

 

(d)              
Other Restrictions. No amendment or waiver shall, unless signed by Agent and Required Lenders (or by Agent with the
consent of Required Lenders), amend or waive compliance with the conditions precedent to the obligations of the Lenders to make
any Revolving Loan in Section 2.2 or waive any Default or Event of Default for the purpose of satisfying the
conditions precedent to the obligations of the Lenders to make any Revolving Loan in Section 2.2. No amendment
shall: (i) amend or waive this Section 8.1(d) or the definitions of the terms used in this Section
8.1(d) insofar as the definitions affect the substance of this Section 8.1(d); (ii) change the definition
of the term Required Lenders; or (iii) change the percentage of the Lenders which shall be required for Revolving Loan Lenders
to take any action hereunder, in each case, without the consent of all Revolving Loan Lenders.

 

(e)               
Additional Credit Facilities. This Agreement may be amended with the written consent of Agent, the Borrower, and
the Required Lenders to (i) add one or more additional credit facilities to this Agreement and to permit the extensions of credit
from time to time outstanding thereunder and the outstanding principal and accrued interest and fees in respect thereof to share
ratably in the benefits of this Agreement and the other Loan Documents with the Revolving Loans and the accrued interest and fees
in respect thereof; and (ii) include, as appropriate, the Lenders holding such credit facilities in any determination of the Required
Lenders.

 

(f)               
Other. Notwithstanding anything to the contrary contained in this Section 8.1, (i) Borrower may
amend Schedule 3.17 upon notice to Agent; (ii) Agent may amend the Revolving Loan Table to reflect Sales entered
into pursuant to Section 8.9; and (iii) Agent and Borrower may amend or modify this Agreement and any other Loan
Document to (A) cure any ambiguity, omission, defect or inconsistency therein; and (2) grant a new Lien for the benefit of the
Secured Parties, extend an existing Lien over additional Property for the benefit of the Secured Parties or join additional Persons
as Credit Parties.

 

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8.2             
Notices.

 

(a)               
Addresses. All notices and other communications required or expressly authorized to be made by this Agreement or
any other Loan Document shall be given in writing, unless otherwise expressly specified herein, and (i) sent by personal delivery,
overnight courier service, or U.S. mail, in each case addressed to the address set forth on the applicable signature page hereto
(or such other address as shall be notified in writing (A) in the case of Borrower and Agent, to the other parties hereto and (B)
in the case of all other parties, to the Borrower and Agent; (ii) posted to Syndtrak® (to the extent such system is available
and set up by or at the direction of Agent prior to posting) in an appropriate location by uploading such notice, demand, request,
direction or other communication to www.syndtrak.com, faxing it to 866-545-6600 with an appropriate bar-code fax coversheet or
using such other means of posting to Syndtrak® as may be available and reasonably acceptable to Agent prior to such posting;
(iii) posted to any other E-System approved by or set up by or at the direction of Agent; or (iv) sent as an E-Transmission, other
than by posting to an E-system; provided, however, that E-Transmissions to Agent, other than by way of posting to
an E-system, shall be effective only for notices where such E-Transmission is specifically authorized by this Agreement or such
other Loan Document and such E-Transmission is delivered in compliance with procedures of Agent applicable at the time and previously
communicated to the Borrower with respect to such E-Transmissions and receipt of such E-Transmission is acknowledged by Agent.

 

(b)              
Effectiveness. All communications described in Section 8.2(a) and all other notices, demands,
requests and other communications made in connection with this Agreement or any other Loan Document shall be effective and be deemed
to have been received (i) if delivered by hand, upon personal delivery; (ii) if delivered by overnight courier service, one Business
Day after delivery to such courier service; (iii) if delivered by mail, three Business Days after deposit in the mail; (iv) if
delivered as an E-Transmission by E-Fax, upon sender’s receipt of confirmation of proper transmission; (v) if delivered by
posting to Intralinks® or any other E-System, on the later of the Business Day of such posting and the Business Day access
to such posting is given to the recipient thereof in accordance with the standard procedures applicable to such E-System; and (vi)
if delivered as an E-Transmission using email, one Business Day after such email is sent, so long as the sender does not receive
any response email indicating that the email sent was undeliverable, any such “undeliverable” email being wholly ineffective.
The posting, completion and/or submission by any Credit Party of any communication pursuant to Intralinks® or any other E-System
shall constitute a representation and warranty by the Credit Parties that any representation, warranty, certification or other
similar statement required by the Loan Documents to be provided, given or made by a Credit Party in connection with any such communication
is true, correct and complete (as and to the extent provided in the Loan Documents) except as expressly noted in such communication
or E-System.

 

(c)               
Lender Notifications to Agent. Each Lender shall notify Agent in writing of any changes in the address to which notices
to such Lender should be directed, of addresses of its Lending Office, of payment instructions in respect of all payments to be
made to it hereunder, and of such other administrative information as Agent shall reasonably request.

 

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8.3             
E-Systems and E-Transmissions. Subject, in each case, to the provisions of Section 8.2:

 

(a)               
Use of E-Systems.

 

(i)                
Authorization. Each of Agent, the Lenders, each Credit Party and each of their Related Persons is authorized (but
not required) to transmit, post or otherwise make or communicate, in its sole discretion, E-Transmissions using an E-System approved
by or set up by or at the direction of Agent in connection with any Loan Document and the transactions contemplated therein; provided,
however, that the foregoing shall not apply to any Loan Document that is to be filed or recorded with any Governmental
Authority that does not accept electronic filings or recordations. Each Credit Party and each Secured Party hereto acknowledges
and agrees that the use of E-Systems is not necessarily secure and that there are risks associated with such use, including risks
of interception, disclosure and abuse and each indicates it assumes and accepts such risks by hereby authorizing the transmission
of E-Transmissions using an E-System.

 

(ii)              
Signatures. Each of the parties agrees that (A) no posting to any E-System shall be denied legal effect merely because
it is made electronically; (B) each E-Signature on any such posting shall be deemed sufficient to satisfy any requirement
for a “signature”; (C) each such posting shall be deemed sufficient to satisfy any requirement for a “writing”,
in each case including pursuant to any Loan Document, any applicable provision of any UCC, the federal Uniform Electronic Transactions
Act, the Electronic Signatures in Global and National Commerce Act and any substantive or procedural Requirement of Law governing
such subject matter; (D) each such posting that is not readily capable of bearing either a signature or a reproduction of a signature
may be signed, and shall be deemed signed, by attaching to, or logically associating with such posting, an E-Signature, upon which
Agent, each other Secured Party and each Credit Party may rely and assume the authenticity thereof; and (E) each such posting containing
a signature, a reproduction of a signature or an E-Signature shall, for all intents and purposes, have the same effect and weight
as a signed paper original.

 

(iii)            
Separate Agreements. All uses of an E-System shall be governed by and subject to, in addition to Section 8.2
and this Section 8.3, the separate terms, conditions and privacy policy posted or referenced in such E-System
(or such terms, conditions and privacy policy as may be updated from time to time, including on such E-System) and related Contractual
Obligations executed by Agent and Credit Parties in connection with the use of such E-System.

 

(iv)            
LIMITATION OF LIABILITY. ALL E-SYSTEMS AND ALL E-TRANSMISSIONS MADE USING E-SYSTEMS SHALL BE PROVIDED “AS
IS” AND “AS AVAILABLE”. NONE OF AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS WARRANTS THE ACCURACY, ADEQUACY
OR COMPLETENESS OF ANY E-SYSTEM OR E-TRANSMISSION MADE USING AN E-SYSTEM AND DISCLAIMS ALL LIABILITY FOR ERRORS OR OMISSIONS THEREIN.
NO WARRANTY OF ANY KIND IS MADE BY AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS IN CONNECTION WITH ANY E-SYSTEM OR E-TRANSMISSION
MADE USING AN E-SYSTEM, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY
RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS. Borrower and each Secured Party agrees
that Agent has no responsibility for maintaining or providing any equipment, software, services or any testing required in connection
with any E-Transmission made using an E-System or otherwise required for any E-System.

 

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(b)              
Other E-Transmissions. Each of Agent, the Lenders, each Credit Party and each of their Related Persons is authorized
(but not required) to transmit, post or otherwise make or communicate, in its sole discretion, E-Transmissions other than by E-System;
provided, however, and except as otherwise permitted by Section 8.3(a), the Credit Parties shall
deliver, as a further condition to Closing, live pen and ink signatures for those Loan Documents to be delivered on or before Closing,
that Agent, in its sole discretion, designates as requiring such live signatures. From time to time after Closing and except as
otherwise permitted by Section 8.3(a), each Credit Party agrees to deliver to Agent, upon Agent’s request,
a live pen and ink signature page for any Loan Document. Where this Agreement or any other Loan Document, including any executed
signature pages, is communicated by E-Transmission, other than by E-System:  (i) this Agreement, such other Loan
Document and such signature pages shall conclusively be deemed sufficient to satisfy any requirement for a “writing,”
“authentication,” “signature,” or “original” pursuant to any Loan Document or Requirement of
Law and shall be admissible as an original in any legal proceeding arising out of or relating to this Agreement or any of the other
Loan Documents; and (ii) each such E-Transmission shall have the same legal effect as a live pen and ink signed paper original.

 

(c)               
Contesting Validity. Neither Agent, the Lenders, the Credit Parties, nor their respective Related Persons shall contest
the validity or enforceability of this Agreement or such other Loan Document on the basis that this Agreement, such other Loan
Document, or one or more signatures hereto or thereto were the subject of an E-Transmission or executed by an E-Signature; provided,
however, that nothing herein shall limit a party’s right to contest whether this Agreement or such other Loan Document
has been altered after E-Transmission or whether the E-Transmission was delivered to an appropriate representative of Lender.

 

8.4             
No Waiver; Cumulative Remedies. Waiver of any matter shall not be deemed a waiver of the same or any other matter
on any future occasion. No failure to exercise and no delay in exercising, on the part of Agent or any Lender, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. No course of dealing between any Credit Party, any Affiliate of any Credit Party, Agent or any Lender shall be effective
to amend, modify or discharge any provision of this Agreement or any of the other Loan Documents.

 

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8.5             
Costs and Expenses.

 

(a)               
Generally. Any action taken by any Credit Party under or with respect to any Loan Document, even if required under
any Loan Document or at the request of Agent or Required Lenders, shall be at the expense of such Credit Party, and neither Agent
nor any other Secured Party shall be required under any Loan Document to reimburse any Credit Party therefor except as expressly
provided therein. In addition, Borrower agrees to pay or reimburse upon demand: (i) Agent for all reasonable out-of-pocket costs
and expenses incurred by it or any of its Related Persons in connection with (A) the investigation, development, preparation, negotiation,
syndication, execution, interpretation, or administration of (1) the Loans or any Loan Document, including Agent’s review
and evaluation of, and determinations with respect to, any conditions precedent that must, at any time, be satisfied by any of
the Credit Parties; and (2) any amendment, extension, renewal, termination, supplement, or waiver of any provision of any Loan
Document, including any commitment or proposal letter therefor and any other document prepared in connection therewith; (B) environmental
audits, internal audit reviews, field examinations, Site inspections, Collateral audits and appraisals, background checks and similar
expenses, to the extent permitted hereunder, which shall be reimbursed, in addition to the out-of-pocket costs and expenses of
such examiners, at the per diem rate per individual then charged by Agent for its examiners; and (ii) each of Agent and its Related
Persons for all costs and expenses incurred in connection with (A) any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work-out”; (B) the enforcement or preservation of any right or remedy under
any Loan Document, any Obligation, with respect to the Collateral or any other related right or remedy; or (C) the commencement,
defense, conduct of, intervention in, or the taking of any other action (including preparation for and/or response to any subpoena
or request for document production relating thereto) with respect to, any proceeding (including any bankruptcy or insolvency proceeding)
related to any Credit Party, Loan Document, or Obligation, including reasonable attorneys’ fees and expenses of one law firm
on behalf of all Lenders (other than Agent) incurred in connection with any of the matters referred to in this clause (ii).

 

(b)              
Processing Fees; Additional Lender Consideration. Borrower agrees to pay to Agent, for Agent’s benefit, a reasonable
processing and review fee in connection with the matters described in Section 8.5(a) or any other matter requiring
Agent or Required Lender approval or consent pursuant to this Agreement or any other Loan Document. Agent may also charge, on behalf
of the Lenders, an additional fee as consideration to the Lenders in connection with, and as a condition precedent to, any such
matter.

 

(c)               
Service Fees. Agent may, from time to time, impose fees or charges for returned checks, multiple payoff quotes within
a certain period of time, additional copies of documents, processing non-ACH payments, and such other services it may provide to
Borrower while the Obligations are outstanding. Agent may make available to Borrower a schedule of fees or charges for such services
upon demand or from time to time; provided, however, such fees and charges are subject to change at any time in Agent’s
sole discretion, without notice to Borrower.

 

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8.6             
Indemnity. Each Credit Party agrees to indemnify, hold harmless and defend Agent, each Lender, and each of their
respective Related Persons (each such Person being an “Indemnitee“) for, from, and against all Liabilities
(including brokerage commissions, fees and other compensation) that may be imposed on, incurred by or asserted against any such
Indemnitee in any matter relating to or arising out of, in connection with or as a result of any of the following (collectively,
the “Indemnified Matters“): (a) any Loan Document, any Obligation (or the repayment thereof), the use
or intended use of the proceeds of any Loan or any securities filing of, or with respect to, any Credit Party; (b) Borrower’s
operations at or relating to the Sites; (c) the Collateral, including its design, construction, operation, alteration, maintenance,
or use by Borrower or any other Person; (d) any permitted disclosure of Credit Party Information; (e) any misrepresentation or
inaccuracy in any representation or warranty in any Loan Document; (f) any breach or failure by any Credit Party to perform its
Obligations; (g) any commitment letter, proposal letter or term sheet with any Person and any Contractual Obligation, arrangement
or understanding with any broker, finder or consultant, in each case relating or connected in any way to the transactions contemplated
by this Agreement; (h) any actual or prospective investigation, litigation or other proceeding, whether or not brought by any such
Indemnitee or any of its Related Persons, any holders of securities or creditors (and including reasonable attorneys’ fees
in any case), whether or not any such Indemnitee, Related Person, holder or creditor is a party thereto, and whether or not based
on any securities or commercial law or regulation or any other Requirement of Law or theory thereof, including common law, equity,
contract, tort or otherwise; (i) any other matter with respect to which any Credit Party has an indemnity obligation to any Indemnitee
pursuant to any other provision of this Agreement or the other Loan Documents (excluding, however, the Environmental Indemnity
Agreement, it being the intent and agreement of the parties that the indemnification obligations therein be and are separate and
independent and not included within the coverage of this Section; and (j) any other act, event or transaction related, contemplated
in or attendant to any of the foregoing; provided, however, that no Credit Party shall have any liability under this
Section to any Indemnitee with respect to any Indemnified Matter, to the extent such liability has resulted primarily from the
gross negligence or willful misconduct of such Indemnitee, as determined by a court of competent jurisdiction in a final non-appealable
judgment or order. Furthermore, each Credit Party waives and agrees not to assert against any Indemnitee any right of contribution
with respect to any Liabilities that may be imposed on, incurred by or asserted against any Related Person.

 

8.7             
Marshaling; Payments Set Aside. No Secured Party shall be under any obligation to marshal any Collateral in favor
of any Credit Party or any other Person or against or in payment of any Obligation. To the extent that any Secured Party receives
a payment from Borrower, from any other Credit Party, from the proceeds of the Collateral, from the exercise of its rights of setoff
(to the extent allowed pursuant to Section 8.11), any enforcement action or otherwise, and such payment is subsequently,
in whole or in part, invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver
or any other party, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and
all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not occurred.

 

    	 	55	 

     

    

 

8.8             
Binding Effect. This Agreement shall become effective when it shall have been executed by Borrower, the other Credit
Parties signatory hereto and Agent and when Agent shall have been notified by each Lender that such Lender has executed it. Thereafter,
it shall be binding upon and inure to the benefit of, but only to the benefit of Borrower, the other Credit Parties hereto (in
each case except for Article 7), Agent, each Lender, and, to the extent provided in Section 7.11,
each other Secured Party and, in each case, their respective successors and permitted assigns. Except as expressly provided in
any Loan Document (including in Section 7.9), none of Borrower, any other Credit Party, or Agent shall have
the right to assign any rights or obligations hereunder or any interest herein.

 

8.9             
Assignments and Participations.

 

(a)               
Right to Assign. Subject to the provisions of Section 8.9(b), each Lender may sell, transfer,
negotiate or assign (a “Sale“) all or a portion of its rights and obligations hereunder (including all
or a portion of its Commitments and its rights and obligations with respect to Loans) to any of the following (each an “Eligible
Assignee“): (i) any existing Lender (other than a Non-Funding Lender or Impacted Lender); (ii) any Affiliate or Approved
Fund of any existing Lender (other than a Non-Funding Lender or Impacted Lender); or (iii) any other Person approved by Agent and,
so long as no Default or Event of Default exists, Borrower (which approvals shall not be unreasonably withheld or delayed).

 

(b)              
Sale Parameters. Sales must be ratable among the obligations owing to and owed by each Lender with respect to the
Revolving Loans. For each Loan, the aggregate outstanding principal amount (determined as of the effective date of the applicable
Assignment) of the Loans and Commitments subject to any such Sale shall be in a minimum amount of $1,000,000, unless such Sale
is (i) made to an existing Lender or an Affiliate or Approved Fund of any existing Lender; (ii) of the assignor’s (together
with its Affiliates and Approved Funds) entire interest in such facility; or (iii) made with the prior consent of Agent. Interest
accrued prior to and through the date of any such Sale may not be assigned. Sales by the Lenders who are Non-Funding Lenders due
to clause (a) of the definition of Non-Funding Lender shall be subject to Agent’s prior written consent
in all instances, unless in connection with such sale, such Non-Funding Lender cures, or causes the cure of, its Non-Funding Lender
status as contemplated in Section 1.12(e)(iv). Agent’s refusal to accept a Sale to a Credit Party, an
Affiliate of a Credit Party, or to a Person that would be a Non-Funding Lender or an Impacted Lender, or the imposition of conditions
or limitations (including limitations on voting) upon Sales to such Persons, shall not be deemed to be unreasonable.

 

(c)               
Procedure. The parties to each Sale made in reliance on Section 8.9(a), other than those described
in Sections 8.9(e) or 8.9(f), shall execute and deliver to Agent an Assignment, substantially in the
form of Schedule 8.9(c), via an electronic settlement system designated by Agent (or, if previously agreed with
Agent, via a manual execution and delivery of the Assignment) evidencing such Sale, together with any existing Note subject to
such Sale (or any affidavit of loss therefor acceptable to Agent), any tax forms required to be delivered pursuant to Section 9.1
and payment of an assignment fee in the amount of $3,500 to Agent, unless waived or reduced by Agent; provided, however,
that (i) if a Sale by a Lender is made to an Affiliate or an Approved Fund of such assigning Lender, then no assignment fee shall
be due in connection with such Sale; and (ii) if a Sale by a Lender is made to an assignee that is not an Affiliate or Approved
Fund of such assignor Lender, and concurrently to one or more Affiliates or Approved Funds of such Assignee, then only one assignment
fee of $3,500 shall be due in connection with such Sale (unless waived or reduced by Agent). Upon receipt of all the foregoing,
and conditioned upon such receipt and, if such Assignment is made in accordance with clause (iii) of Section 8.9(b),
upon Agent consenting to such Assignment, from and after the effective date specified in such Assignment, Agent shall record or
cause to be recorded in the Register the information contained in such Assignment.

 

    	 	56	 

     

    

 

(d)              
Effectiveness. Subject to the recording of an Assignment by Agent in the Register: (i) the assignee thereunder shall
become a party hereto and, to the extent that rights and obligations under the Loan Documents have been assigned to such assignee
pursuant to such Assignment, shall have the rights and obligations of a Lender; (ii) any applicable Note shall be transferred to
such assignee through such entry; and (iii) the assignor thereunder shall, to the extent that rights and obligations under this
Agreement have been assigned by it pursuant to such Assignment, relinquish its rights (except for those surviving the termination
of the Commitments and the payment in full of the Obligations) and be released from its obligations under the Loan Documents, other
than those relating to events or circumstances occurring prior to such assignment (and, in the case of an Assignment covering all
or the remaining portion of an assigning Lender’s rights and obligations under the Loan Documents, such Lender shall cease
to be a party hereto).

 

(e)               
Grant of Security Interests. In addition to the other rights provided in this Section 8.9, each
Lender may grant a security interest in, or otherwise assign as collateral, any of its rights under this Agreement, whether now
owned or hereafter acquired (including rights to payments of principal or interest on the Loans), to (i) any federal reserve bank
(pursuant to Regulation A of the Federal Reserve Board), without notice to Agent or (ii) any holder of, or trustee for the benefit
of the holders of, such Lender’s Indebtedness or equity securities, by notice to Agent; provided, however,
that no such holder or trustee, whether because of such grant or assignment or any foreclosure thereon (unless such foreclosure
is made through an assignment in accordance with Section 8.9(b) above), shall be entitled to any rights of such
Lender hereunder and no such Lender shall be relieved of any of its obligations hereunder.

 

(f)               
Participants and SPVs. In addition to the other rights provided in this Section 8.9, each Lender
may, (x) with notice to Agent, grant to an SPV the option to make all or any part of any Loan that such Lender would otherwise
be required to make hereunder (and the exercise of such option by such SPV and the making of Loans pursuant thereto shall satisfy
the obligation of such Lender to make such Loans hereunder) and such SPV may assign to such Lender the right to receive payment
with respect to any Obligation; and (y) without notice to or consent from Agent or Borrower, sell participations to one or more
Persons in or to all or a portion of its rights and obligations under the Loan Documents (including all its rights and obligations
with respect to the Revolving Loans); provided, however, that, whether as a result of any term of any Loan Document
or of such grant or participation:

 

(i)                
No such SPV or participant shall have a commitment, or be deemed to have made an offer to commit, to make Loans hereunder,
and, except as provided in the applicable option agreement, none shall be liable for any obligation of such Lender hereunder;

 

    	 	57	 

     

    

 

(ii)              
Such Lender’s rights and obligations, and the rights and obligations of the Credit Parties and the Secured Parties
towards such Lender, under any Loan Document shall remain unchanged and each other party hereto shall continue to deal solely with
such Lender, which shall remain the holder of the Obligations in the Register, except that (A) each such participant and SPV shall
be entitled to the benefit of Article 9, but, with respect to Section 9.1, only to the extent
such participant or SPV delivers the tax forms such Lender is required to collect pursuant to Section 9.1(f) and
then only to the extent of any amount to which such Lender would be entitled in the absence of any such grant or participation;
and (B) each such SPV may receive other payments that would otherwise be made to such Lender with respect to Loans funded by such
SPV to the extent provided in the applicable option agreement and set forth in a notice provided to Agent by such SPV and such
Lender, provided, however, that in no case (including pursuant to clause (A) or (B)
above) shall an SPV or participant have the right to enforce any of the terms of any Loan Document;

 

(iii)            
The consent of such SPV or participant shall not be required (either directly, as a restraint on such Lender’s ability
to consent hereunder or otherwise) for any amendments, waivers or consents with respect to any Loan Document or to exercise or
refrain from exercising any powers or rights such Lender may have under or in respect of the Loan Documents (including the right
to enforce or direct enforcement of the Obligations), except for those described in clauses (ii) and (iii)
of Section 8.1(a) with respect to amounts, or dates fixed for payment of amounts, to which such participant
or SPV would otherwise be entitled and, in the case of participants, except for those described in clause (vi)
of Section 8.1(a); and

 

(iv)            
No party hereto shall institute against any SPV grantee of an option pursuant to this Section 8.9(f)
any bankruptcy, reorganization, insolvency, liquidation or similar proceeding, prior to the date that is one year and one day after
the payment in full of all outstanding commercial paper of such SPV; provided, however, that each Lender having designated
an SPV as such agrees to indemnify each Indemnitee against any Liability that may be incurred by, or asserted against, such Indemnitee
as a result of failing to institute such proceeding (including a failure to be reimbursed by such SPV for any such Liability).
The agreement in the preceding sentence shall survive the termination of the Commitments and the payment in full of the Obligations.

 

8.10         
Non-Public Information; Confidentiality.

 

(a)               
Non-Public Information. Each of Agent and each Lender acknowledges and agrees that it may receive material non-public
information (“MNPI”) hereunder concerning the Credit Parties and their Affiliates and agrees to use such
information in compliance with all relevant policies, procedures and applicable Requirements of Laws (including United States federal
and state securities laws and regulations).

 

    	 	58	 

     

    

 

(b)              
Confidential Information. Each of Agent and each Lender agrees to use all reasonable efforts to maintain, in accordance
with its customary practices, the confidentiality of information obtained by it pursuant to any Loan Document, except that such
information may be disclosed (i) with the consent of Borrower; (ii) to Related Persons of such Lender or Agent, as the case may
be, that are advised of the confidential nature of such information and are instructed to keep such information confidential in
accordance with the terms hereof; (iii) to the extent such information presently is or hereafter becomes (A) publicly available
other than as a result of a breach of this Section 8.10; or (B) available to such Lender, Agent. or any of their
Related Persons, as the case may be, from a source (other than any Credit Party) not known by them to be subject to disclosure
restrictions; (iv) to the extent disclosure is required by any applicable Requirement of Law or other legal process or requested
or demanded by any Governmental Authority; (v) to the extent necessary or customary for inclusion in league table measurements;
(vi) to the National Association of Insurance Commissioners or any similar organization, any examiner or any nationally recognized
rating agency, or otherwise to the extent consisting of general portfolio information that does not identify Credit Parties; (vii)
to current or prospective assignees, SPVs (including the investors or prospective investors therein), participants, or direct or
contractual counterparties to any Secured Rate Contracts and to their respective Related Persons, and to the extent such assignees,
investors, participants, counterparties, or Related Persons agree to be bound by provisions substantially similar to the provisions
of this Section 8.10 (and such Person may disclose information to their respective Related Persons in accordance
with clause (ii) above); (viii) to any other party hereto; (ix) to Licensor and Manager upon the occurrence
and during the continuation of a Default; (x) to any proposed transferee, purchaser, assignee, servicer, participant, lender, investor,
ratings agency, or other Person with respect to any proposed Sale, participation of the Loan, or sale of any of the Collateral;
(xi) to any insurance or title company in connection with the transactions contemplated by the Loan Documents, including any action,
suit, or proceeding arising out of, in connection with, or relating to, this Agreement or the other Loan Documents, the Loan, or
any other transaction contemplated hereby; and (xii) in connection with the exercise or enforcement of any right or remedy under
any Loan Document, in connection with any litigation or other proceeding to which such Lender, Agent or any of their Related Persons
is a party or bound, or to the extent necessary to respond to public statements or disclosures by Credit Parties or their Related
Persons referring to a Lender, Agent or any of their Related Persons. The Credit Parties further consent to the use by Agent, the
Lenders, and their respective Affiliates of data relating to Borrower’s operations, including unit-level and corporate level
operating results, and authorize such Persons to produce and distribute various industry statistical analyses and data compilations,
provided that all such analyses and data compilations will be aggregated and will not be specifically attributable to the Sites,
Borrower, any other Credit Party, or any operator or lessee of the Sites. In the event of any conflict between the terms of this
Section 8.10 and those of any other Contractual Obligation entered into with any Credit Party (whether or not
a Loan Document), the terms of this Section 8.10 shall govern.

 

(c)               
Tombstones. Each Credit Party consents to the publication by Agent or any Lender of any press releases, tombstones,
advertising or other promotional materials (including as an E-Transmission) relating to the financing transactions contemplated
by this Agreement using such Credit Party’s name, product photographs, logo or trademark.

 

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(d)              
Press Release and Related Matters. No Credit Party shall, and no Credit Party shall permit any of its Affiliates
to, issue any press release or other public disclosure (other than any document filed with any Governmental Authority relating
to a public offering of securities of any Credit Party) using the name, logo or otherwise referring to Western Alliance Bank or
of any of its Affiliates, the Loan Documents or any transaction contemplated herein or therein to which Western Alliance Bank or
any of its Affiliates is party without the prior written consent of Western Alliance Bank or such Affiliate, each in its sole discretion,
except to the extent required to do so under applicable Requirements of Law and then, only after consulting with Western Alliance
Bank.

 

(e)               
Authorization to Share Certain Information. Borrower and each other Credit Party authorize each Licensor and Manager
to disclose and release to Agent, the Lenders and their respective Affiliates any and all information they may request from time
to time regarding (i) the status of each License Agreement and Management Agreement; (ii) the affairs and financial condition
of Borrower, such other Credit Party, or any operator of the Sites; and (iii) the business operations at the Sites, including Site
level and entity level operating results. Borrower and each such Credit Party also expressly authorize Agent and its Affiliates,
from time to time while any of the Obligations are outstanding to perform background, credit, judgment, lien and other checks,
searches, inspections and investigations and to obtain personal and business credit reports and asset reports with respect to Borrower
and the other Credit Parties and to answer questions about its credit experience with Borrower and the other Credit Parties. All
of the information which Agent or its Affiliates obtain from time to time in accordance with this Section, together with all other
information which Lender or its Affiliates now possess or in the future may acquire with respect to Borrower, any of the other
Credit Parties, the Collateral, the Credit Facilities, or the business operations at the Sites, whether pursuant to the Loan Documents
or otherwise, is referred to as “Credit Party Information.”

 

(f)               
Distribution of Materials to the Lenders. The Credit Parties acknowledge and agree that Credit Party Information
may be disseminated by, or on behalf of, Agent, and made available, to the Lenders by posting such Credit Party Information on
an E-System. The Credit Parties authorize Agent to download copies of their logos from its website and post copies thereof on an
E-System.

 

(g)              
Material Non-Public Information. The Credit Parties agree that if either they, any parent company, or Affiliate has
publicly traded equity or debt securities in the United States, they shall (and shall cause such parent company or Affiliate, as
the case may be, identify in writing and, to the extent reasonably practicable, clearly and conspicuously mark such Credit Party
Information that contain only information that is publicly available or that is not material for purposes of United States federal
and state securities laws as “PUBLIC”. The Credit Parties agree that by identifying such Credit Party Information as
“PUBLIC” or publicly filing such Credit Party Information with the Securities and Exchange Commission, then Agent and
the Lenders shall be entitled to treat such Credit Party Information as not containing any MNPI for purposes of United States federal
and state securities laws. The Credit Parties further represent, warrant, acknowledge and agree that the following documents and
materials shall be deemed to be PUBLIC, whether or not so marked, and do not contain any MNPI: (i) the Loan Documents, including
the schedules and exhibits attached thereto; and (ii) administrative materials of a customary nature prepared by the Credit Parties
or Agent (including, Borrowing Notices and any similar requests or notices posted on or through an E-System). Before distribution
of Credit Party Information, the Credit Parties agree to execute and deliver to Agent a letter authorizing distribution of the
evaluation materials to prospective Lenders and their employees willing to receive MNPI, and a separate letter authorizing distribution
of evaluation materials that do not contain MNPI and represent that no MNPI is contained therein.

 

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8.11         
Set-off; Sharing of Payments.

 

(a)               
Right of Setoff. Each of Agent, each Lender, and each Affiliate (including each branch office thereof) of any of
them is hereby authorized, without notice or demand (each of which is hereby waived by each Credit Party), at any time and from
time to time during the continuance of any Event of Default and to the fullest extent permitted by applicable Requirements of Law,
to set off and apply any and all deposits (whether general or special, time or demand, provisional or final) at any time held and
other Indebtedness, claims or other obligations at any time owing by Agent, such Lender, or any of their respective Affiliates
to or for the credit or the account of Borrower or any other Credit Party against any Obligation of any Credit Party now or hereafter
existing, whether or not any demand was made under any Loan Document with respect to such Obligation and even though such Obligation
may be unmatured; provided, however, that no Lender shall exercise any such right of setoff without the prior written
consent of Agent and the Required Lenders or if, in the opinion of Agent or its counsel, the exercise of setoff rights could materially
prejudice the rights and remedies of Agent pursuant to Agent’s Liens on the Collateral. Each of Agent and each Lender agrees
promptly to notify Borrower and Agent after any such setoff and application made by such Lender or its Affiliates; provided,
however, that the failure to give such notice shall not affect the validity of such setoff and application. The rights
under this Section 8.11 are in addition to any other rights and remedies (including other rights of setoff)
that Agent, the Lenders, their Affiliates and the other Secured Parties, may have.

 

(b)              
Sharing of Payments, Etc. If any Lender, directly or through an Affiliate or branch office thereof, obtains any payment
of any Obligation of any Credit Party (whether voluntary, involuntary or through the exercise of any right of setoff or the receipt
of any Collateral or “proceeds” (as defined under the applicable UCC) of Collateral) other than pursuant to Section 8.9
or Article 9 and such payment exceeds the amount such Lender would have been entitled to receive if all payments
had gone to, and been distributed by, Agent in accordance with the provisions of the Loan Documents, such Lender shall purchase
for cash from other Lenders such participations in their Obligations as necessary for such Lender to share such excess payment
with such Lenders to ensure such payment is applied as though it had been received by Agent and applied in accordance with this
Agreement (or, if such application would then be at the discretion of Borrower, applied to repay the Obligations in accordance
herewith); provided, however, that (i) if such payment is rescinded or otherwise recovered from such Lender in whole
or in part, such purchase shall be rescinded and the purchase price therefor shall be returned to such Lender without interest;
and (ii) such Lender shall, to the fullest extent permitted by applicable Requirements of Law, be able to exercise all its rights
of payment (including the right of setoff) with respect to such participation as fully as if such Lender were the direct creditor
of the applicable Credit Party in the amount of such participation. If a Non-Funding Lender receives any such payment as described
in the previous sentence, such Lender shall turn over such payments to Agent in an amount that would satisfy the cash collateral
requirements set forth in Section 1.11(e).

 

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s

8.12         
Counterparts; Facsimile Signature. This Agreement and the other Loan Documents may be executed in any number of counterparts
and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts
and attached to a single counterpart. Delivery of an executed signature page of this Agreement as an E-Transmission shall be as
effective as delivery of a manually executed counterpart hereof.

 

8.13         
Severability. The illegality or unenforceability of any provision of this Agreement, any other Loan Document, or
any instrument or agreement required hereunder or thereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions of this Agreement, such other Loan Document, or any instrument or agreement required hereunder or thereunder.

 

8.14         
Captions. The captions and headings of this Agreement are for convenience of reference only and shall not affect
the interpretation of this Agreement.

 

8.15         
Independence of Provisions. The parties hereto acknowledge that this Agreement and the other Loan Documents may use
several different limitations, tests or measurements to regulate the same or similar matters, and that such limitations, tests
and measurements are cumulative and must each be performed, except as expressly stated to the contrary in this Agreement.

 

8.16         
Interpretation. This Agreement is the result of negotiations among, and has been reviewed by counsel to Credit Parties,
Agent, each Lender and other parties hereto, and is the product of all such parties. Accordingly, this Agreement and the other
Loan Documents shall not be construed against the Lenders or Agent merely because of Agent’s or Lenders’ involvement
in the preparation of such documents and agreements. Without limiting the generality of the foregoing, each of the parties hereto
has had the advice of counsel with respect to Sections 8.18, 8.19, and 8.20.

 

8.17         
No Third Parties Benefited. This Agreement is made and entered into for the sole protection and legal benefit of
Borrower, the Lenders, Agent, each Indemnitee, and, subject to the provisions of Section 7.11, each other Secured
Party, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have
any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. Neither
Agent nor any Lender shall have any obligation to any Person not a party to this Agreement or the other Loan Documents.

 

8.18         
Governing Law. The laws of the State of ARIZONA (without giving effect
to its conflicts of laws principles) shall govern all matters arising out of, in connection with or relating to this Agreement
and the other Loan Documents (EXCEPT AS OTHERWISE PROVIDED THEREIN), including its validity, interpretation, construction, performance
and enforcement (including any claims sounding in contract or tort law arising out of the subject matter hereof and any determinations
with respect to post-judgment interest).

 

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8.19         
Jurisdiction and Service of Process. Any legal action or proceeding with respect to any Loan Document shall be brought
exclusively in the courts of the State of Arizona located in Maricopa County, or of the United States of America for the District
of Arizona, sitting in Phoenix, Arizona, and Borrower and each other Credit Party unconditionally accepts, for itself and in respect
of its Property, generally and unconditionally, the jurisdiction of the aforesaid courts; provided, however,
that nothing in this Agreement shall limit or restrict Agent’s right to commence any proceeding in the federal or state courts
located in the state in which a particular Site is located to the extent Agent deems such proceeding necessary or advisable to
exercise remedies available under any Loan Document. The parties hereto irrevocably waive any objection, including any objection
to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or hereafter have to the
bringing of any such action or proceeding in such jurisdictions. Each of Borrower and the other Credit Parties (a) irrevocably
waives personal service of any and all legal process, summons, notices and other documents of any kind; (b) consents to such service
in any suit, action or proceeding brought in the United States by any means permitted by any applicable Requirement of Law, including
by the mailing thereof to Borrower’s address specified on the signature page hereto; and (c) agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by any applicable Requirement of Law. Nothing contained in this Section 8.19 shall affect
the right of Agent or any Lender to serve process in any other manner permitted by applicable Requirements of Law or commence legal
proceedings or otherwise proceed against any Credit Party in any other jurisdiction.

 

8.20         
Waiver of Jury Trial. THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND
ANY OTHER TRANSACTION CONTEMPLATED HEREBY AND THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE. 

 

8.21         
Entire Agreement; Release. THE LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT OF THE PARTIES AND SUPERSEDE ALL PRIOR
AGREEMENTS AND UNDERSTANDINGS RELATING TO THE SUBJECT MATTER THEREOF AND ANY PRIOR LETTER OF INTEREST, COMMITMENT LETTER, CONFIDENTIALITY
AND SIMILAR AGREEMENTS INVOLVING ANY CREDIT PARTY, AGENT, ANY LENDER, OR ANY AFFILIATE OF AGENT OR ANY LENDER RELATING TO A FINANCING
OF SUBSTANTIALLY SIMILAR FORM, PURPOSE OR EFFECT and the Loan Documents may not be contradicted
by evidence of any alleged oral agreement.  IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THIS AGREEMENT AND ANY OTHER
LOAN DOCUMENT, THE TERMS OF THIS AGREEMENT SHALL GOVERN (UNLESS OTHERWISE EXPRESSLY STATED IN SUCH OTHER LOAN DOCUMENTS OR SUCH
TERMS OF SUCH OTHER LOAN DOCUMENTS ARE NECESSARY TO COMPLY WITH APPLICABLE REQUIREMENTS OF LAW, IN WHICH CASE SUCH TERMS SHALL
GOVERN TO THE EXTENT NECESSARY TO COMPLY THEREWITH). Execution of this Agreement by the Credit Parties constitutes a full,
complete and irrevocable release of any and all claims which each Credit Party may have at law or in equity in respect of all prior
discussions and understandings, oral or written, relating to the subject matter of this Agreement and the other Loan Documents.
Each Credit Party acknowledges and affirms that such Credit Party did not rely on any statement, oral or written, not contained
in the Loan Documents in making its decisions to enter into the agreements expressed in the Loan Documents.

 

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8.22         
Survival. Any indemnification or other protection provided to Agent, the Lenders, or any other Indemnitee pursuant
to any Loan Document, all representations and warranties made in any Loan Document, the provisions of this Article 8
and of Article 10, and all other provisions of the Loan Documents that are stated to survive, shall survive
the repayment in full in cash and performance of the Obligations and inure to the benefit of any Person that at any time held a
right thereunder and, thereafter, its successors and permitted assigns.

 

8.23         
Limitation of Liability for Certain Damages. In no event shall Agent, any Lender or any of their respective Related
Persons be liable to Borrower or any other Credit Party on any theory of liability for any special, indirect, consequential or
punitive damages (including any loss of profits, business or anticipated savings). BORROWER AND EACH OTHER CREDIT PARTY HEREBY
WAIVE, RELEASE AND AGREE NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR
NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

8.24         
Patriot Act. Each Lender that is subject to the Patriot Act hereby notifies the Credit Parties that pursuant to the
requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Credit Party, which
information includes the name and address of each Credit Party and other information that will allow such Lender to identify each
Credit Party in accordance with the Patriot Act.

 

8.25         
Replacement of Lender. Within 45 days after (i) receipt by the Borrower of written notice and demand from any Lender
(an “Affected Lender”) for payment of additional costs as provided in Sections 9.1
and 9.3; or (ii) any failure by any Lender (other than Agent or an Affiliate of Agent) to consent to a requested
amendment, waiver or modification to any Loan Document to which Required Lenders have already consented but the consent of each
Lender (or each Lender directly affected thereby, as applicable) is required with respect thereto, Borrower may, at its option,
notify Agent and such Affected Lender (or such non-consenting Lender) of Borrower’s intention to obtain, at Borrower’s
expense, a replacement Lender (“Replacement Lender”) for such Affected Lender (or such non-consenting
Lender), which Replacement Lender shall be reasonably satisfactory to Agent. If Borrower obtains a Replacement Lender within 45
days following notice of its intention to do so, the Affected Lender (or such non-consenting Lender) shall sell and assign its
Loans and Commitments to such Replacement Lender, at par, provided that Borrower has reimbursed such Affected Lender for its increased
costs for which it is entitled to reimbursement under this Agreement through the date of such sale and assignment. If a replaced
Lender does not execute an Assignment pursuant to Section 8.9 within five Business Days after receipt by such
replaced Lender of notice of replacement pursuant to this Section and presentation to such replaced Lender of an Assignment evidencing
an assignment pursuant to this Section, Borrower shall be entitled (but not obligated) to execute such an Assignment on behalf
of such replaced Lender, and any such Assignment so executed by Borrower, the Replacement Lender and Agent, shall be effective
for purposes of this Section and Section 8.9. Notwithstanding the foregoing, with respect to a Lender that is
a Non-Funding Lender or an Impacted Lender, Agent may, but shall not be obligated to, obtain a Replacement Lender and execute an
Assignment on behalf of such Non-Funding Lender or Impacted Lender at any time with three Business’ Days prior notice to
such Lender (unless notice is not practicable under the circumstances) and cause such Lender’s Loans and Commitments to be
sold and assigned, in whole or in part, at par. Upon any such assignment and payment and compliance with the other provisions of
Section 8.9, such replaced Lender shall no longer constitute a “Lender” for purposes hereof; provided,
any rights of such replaced Lender to indemnification hereunder shall survive.

 

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8.26         
Creditor-Debtor Relationship. The relationship between Agent and each Lender, on the one hand, and the Credit Parties,
on the other hand, is solely that of creditor and debtor. No Secured Party has any fiduciary relationship or duty to any Credit
Party arising out of or in connection with, and there is no agency, tenancy or joint venture relationship between the Secured Parties
and the Credit Parties by virtue of, any Loan Document or any transaction contemplated therein. No Loan Document provision is intended,
nor shall be deemed or construed, to make Agent or any Lender in any way responsible for the debts, obligations or losses of any
Credit Party. EACH CREDIT PARTY REPRESENTS, ACKNOWLEDGES, AND AGREES THAT (a) SUCH CREDIT PARTY IS ENTERING INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS VOLUNTARILY AND HAS HAD THE OPPORTUNITY TO OBTAIN AND CONSULT WITH SUCH LEGAL, FINANCIAL AND OTHER
ADVISERS AS EACH HAS DEEMED APPROPRIATE; AND (b) NEITHER AGENT, LENDERS, NOR ANY OF THEIR RESPECTIVE AFFILIATES, NOR ANY OF THEIR
RESPECTIVE RELATED PERSONS HAS ACTED AS AN INVESTMENT, TAX OR FINANCIAL ADVISER TO SUCH CREDIT PARTY IN ANY RESPECT AND HAS NOT
OTHERWISE PROVIDED SUCH CREDIT PARTY WITH ANY INVESTMENT, TAX, OR FINANCIAL ADVICE OF ANY NATURE WHATSOEVER.

 

8.27         
Applicability of General Provisions to the Loan Documents. The provisions of this Article and the Schedule of Defined
Terms attached as Schedule 10.1(b) apply equally to this Agreement and to each other Loan Document, and to all Credit
Parties, the same as if such provisions were set forth in full in each other Loan Document.

 

8.28         
Time of the Essence; Time Periods. Time is of the essence for performance of the Obligations under this Agreement
and each of the other Loan Documents. Unless otherwise expressly stated herein or in such other Loan Document, the time for performance
of any obligation or taking any action hereunder or under such other Loan Document shall be deemed to expire at 4:00 o’clock
p.m. (Phoenix time) on the last day of the applicable time period provided for in such Loan Document. If the time for performance
of any obligation or taking any action under such Loan Document expires on a day other than a Business Day, the time for performance
or taking such action shall be extended to the next succeeding Business Day. Unless otherwise expressly stated, references in any
of the Loan Documents to a particular time of day shall be to the local time in Phoenix, Arizona, and references to “month”
shall be a reference to calendar months.

 

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8.29         
Corrections and Insertions. Agent may correct patent errors in the Loan Documents and fill in all blanks in this
Agreement and the other Loan Documents consistent with the agreement of the parties.

 

8.30         
Transaction Characterization. The Loan Documents are a contract to extend a Financial Accommodation (as such term
is used in the Bankruptcy Code) for Borrower’s benefit.

 

Article
9

TAXES, YIELD PROTECTION AND ILLEGALITY

 

9.1             
Taxes.

 

(a)               
Payments to be Free and Clear of Taxes. Except as otherwise provided in this Section 9.1, each
payment by any Credit Party under any Loan Document shall be made free and clear of all Taxes.

 

(b)              
Gross-Up. If any Taxes shall be required by any Requirement of Law to be deducted from or in respect of any amount
payable under any Loan Document to any Secured Party (i) such amount shall be increased as necessary to ensure that, after all
required deductions for Taxes are made (including deductions applicable to any increases to any amount under this Section 9.1),
such Secured Party receives the amount it would have received had no such deductions been made; (ii) the relevant Credit Party
shall make such deductions; (iii) the relevant Credit Party shall timely pay the full amount deducted to the relevant taxing authority
or other authority in accordance with applicable Requirements of Law; and (iv) within 30 days after such payment is made, the relevant
Credit Party shall deliver to Agent an original or certified copy of a receipt evidencing such payment or other evidence of payment
reasonably satisfactory to Agent.

 

(c)               
Other Taxes. Borrower further agrees to pay, and authorizes Agent to pay in Borrower’s name, any and all Taxes
arising from the execution, delivery or registration of, or otherwise with respect to, any Loan Document or any transaction contemplated
therein (collectively, “Other Taxes”). Within 30 days after the date of any payment of Other Taxes by
any Credit Party, Borrower shall furnish to Agent, at its address referred to in Section 8.2, the original or
a certified copy of a receipt evidencing payment thereof or other evidence of payment reasonably satisfactory to Agent.

 

(d)              
Reimbursement and Indemnification. Borrower shall reimburse and indemnify, within 30 days after receipt of demand
therefor (with copy to Agent), each Secured Party for all Taxes and Other Taxes (including any Taxes and Other Taxes imposed by
any jurisdiction on amounts payable under this Section 9.1) required to be paid by such Secured Party by any Governmental
Authority and any Liabilities arising therefrom or with respect thereto, whether or not, absent manifest error, such Taxes or Other
Taxes were correctly or legally asserted by such Governmental Authority. A certificate of the Secured Party (or of Agent on behalf
of such Secured Party) claiming any compensation under this Section 9.1(d) setting forth the amounts to be paid
thereunder and delivered to Borrower with a copy to Agent, shall be conclusive, binding and final for all purposes, absent manifest
error. In determining such amount, Agent and such Secured Party may use any reasonable averaging and attribution methods.

 

    	 	66	 

     

    

 

(e)               
Mitigation. Any Lender claiming any additional amounts payable pursuant to this Section 9.1 shall
use its reasonable efforts (consistent with its internal policies and Requirements of Law) to change the jurisdiction of its Lending
Office if such a change would reduce any such additional amounts (or any similar amount that may thereafter accrue) and would not,
in the sole determination of such Lender, be otherwise disadvantageous to such Lender.

 

(f)               
Tax Forms.

 

(i)                
Non-U.S. Lender Parties. Each Non-U.S. Lender Party that, at any of the following times, is entitled to an exemption
from United States withholding tax or, after a change in any Requirement of Law, is subject to such withholding tax at a reduced
rate under an applicable tax treaty, shall (A) on or prior to the date such Non-U.S. Lender Party becomes a Non-U.S. Lender Party
hereunder; (B) on or prior to the date on which any such form or certification expires or becomes obsolete; (C) after the occurrence
of any event requiring a change in the most recent form or certification previously delivered by it pursuant to this subsection (f);
and (D) from time to time if requested by Borrower or Agent (or, in the case of a participant or SPV, the relevant Lender), provide
Agent and Borrower (or, in the case of a participant or SPV, the relevant Lender) with two completed originals of each of the following,
as applicable: (1) Form W-8ECI (claiming exemption from U.S. withholding tax because the income is effectively connected with a
U.S. trade or business), Form W-8BEN (claiming exemption from, or a reduction of, U.S. withholding tax under an income tax treaty)
and/or Form W-8IMY (together with appropriate forms, certifications and supporting statements) or any successor forms; (2) in the
case of a Non-U.S. Lender Party claiming exemption under Sections 871(h) or 881(c) of the Code, Form W-8BEN (claiming exemption
from U.S. withholding tax under the portfolio interest exemption) or any successor form and a certificate in form and substance
acceptable to Agent that such Non-U.S. Lender Party is not (x) a “bank” within the meaning of Section 881(c)(3)(A)
of the Code; (y) a “10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code; or
(z) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code; or (3) any other applicable document
prescribed by the IRS certifying as to the entitlement of such Non-U.S. Lender Party to such exemption from United States withholding
tax or reduced rate with respect to all payments to be made to such Non-U.S. Lender Party under the Loan Documents. Unless Borrower
and Agent have received forms or other documents satisfactory to them indicating that payments under any Loan Document to or for
a Non-U.S. Lender Party are not subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable
tax treaty, the Credit Parties and Agent shall withhold amounts required to be withheld by applicable Requirements of Law from
such payments at the applicable statutory rate.

 

    	 	67	 

     

    

 

(ii)              
U.S. Lender Parties. Each U.S. Lender Party shall (A) on or prior to the date such U.S. Lender Party becomes a U.S.
Lender Party hereunder; (B) on or prior to the date on which any such form or certification expires or becomes obsolete; (C) after
the occurrence of any event requiring a change in the most recent form or certification previously delivered by it pursuant to
this subsection (f); and (D) from time to time if requested by Borrower or Agent (or, in the case of a participant
or SPV, the relevant Lender), provide Agent and Borrower (or, in the case of a participant or SPV, the relevant Lender) with two
completed originals of Form W-9 (certifying that such U.S. Lender Party is entitled to an exemption from U.S. backup withholding
tax) or any successor form.

 

(iii)            
Participants and SPVs. Each Lender having sold a participation in any of its Obligations or identified an SPV as
such to Agent shall collect from such participant or SPV the documents described in this subsection (f) and
provide them to Agent.

 

(iv)            
FATCA. If a payment made to a Non-U.S. Lender Party would be subject to United States federal withholding tax imposed
by FATCA if such Non-U.S. Lender Party fails to comply with the applicable reporting requirements of FATCA, such Non-U.S. Lender
Party shall deliver to Agent and Borrower any documentation under any Requirement of Law or reasonably requested by Agent or Borrower
sufficient for Agent or Borrower to comply with their obligations under FATCA and to determine that such Non-U.S. Lender has complied
with such applicable reporting requirements.

 

9.2             
Increased Costs and Reduction of Return; Capital Adequacy Regulation Events. If any Lender (a) determines that a
Capital Adequacy Regulation Event affects the amount of capital required or expected to be maintained by such Lender or any entity
controlling such Lender; and (b) taking into consideration such Lender’s or such entities’ policies with respect to
capital adequacy and such Lender’s desired return on capital, determines that the amount of such capital is increased as
a consequence of its Commitment(s), Loans, credits or obligations under this Agreement, then, within 30 days of demand of such
Lender (with a copy to Agent), Borrower shall pay to such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender (or the entity controlling the Lender) for such increase; provided, however,
that Borrower shall not be required to compensate any Lender pursuant to this Section for any amounts incurred more than 180 days
prior to the date that such Lender notifies Borrower, in writing, of the amounts and of such Lender’s intention to claim
compensation thereof; provided, further, that if the event giving rise to such increase is retroactive, then the 180-day period
referred to above shall be extended to include the period of retroactive effect thereof. “Capital Adequacy Regulation
Event” means: (i) the introduction of any Capital Adequacy Regulation; (ii) any change in any Capital Adequacy Regulation;
(iii) any change in the interpretation or administration of any Capital Adequacy Regulation by any central bank or other Governmental
Authority charged with the interpretation or administration thereof; (iv) compliance by such Lender (or its Lending Office) or
any entity controlling the Lender with any Capital Adequacy Regulation; and (v) notwithstanding anything herein to the contrary
and regardless of the date enacted, adopted or issued: (A) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all
requests, rules, guidelines or directives thereunder or issued in connection therewith; and (B) all requests, rules, guidelines
or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor
or similar authority) or the United States of America or foreign regulatory authorities, in each case in respect of this clause (B)
pursuant to Basel III.

 

    	 	68	 

     

    

 

9.3             
Funding Losses. Borrower agrees to reimburse each Lender and to hold each Lender harmless from any loss or expense
which such Lender may sustain or incur as a consequence of the failure of Borrower to borrow a Loan after Borrower has given a
Borrowing Notice.

 

9.4             
Lender Certificates. Any Lender claiming reimbursement or compensation pursuant to this Article shall deliver to
Borrower (with a copy to Agent) a certificate setting forth in reasonable detail the amount payable to such Lender, and such certificate
shall be conclusive and binding on Borrower in the absence of manifest error.

 

Article
10

DEFINITIONS; oTHER INTERPRETIVE PROVISIONS

 

10.1         
Defined Terms. Unless otherwise specified, all terms defined herein or any other Loan Document shall have the defined
meanings when used in any certificate or other document made or delivered pursuant hereto or thereto. Terms (including uncapitalized
terms) not otherwise defined herein and that are defined in the UCC shall have the meanings therein provided.

 

(a)               
Terms Defined in Body of Agreement. Capitalized terms that are defined in the body of this Agreement are listed on
Schedule 10.1(a) with references to where such defined terms appear in the Agreement set forth opposite such
terms.

 

(b)              
Schedule of Defined Terms. Capitalized terms used herein and in the other Loan Documents and not otherwise defined
herein or therein have the meanings set forth on the Schedule of Defined Terms attached as Schedule 10.1(b).

 

10.2         
The Agreement. Unless otherwise expressly provided or the context may otherwise require: (a) the words “hereof”,
“herein”, “hereunder” and words of similar import when used in this Agreement or any other Loan Document
shall refer to this Agreement or such other Loan Document as a whole and not to any particular provision of this Agreement or such
other Loan Document; (b) article, section, subsection, clause, appendix, exhibit, schedule, and table references in a Loan Document
are to the Loan Document in which any such item is referenced; (c) references to any document includes all appendices, exhibits,
schedules, and tables thereto (all of which are incorporated into and constitute an integral part of the document to which they
are attached).

 

    	 	69	 

     

    

 

10.3         
Certain Common Terms. The term “document” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced. The term “including” is not limiting
and means “including without limitation.” The term “incur” means incur, create, make, issue,
assume or otherwise become directly or indirectly liable in respect of or responsible for, in each case whether directly or indirectly,
and the terms “incurrence” and “incurred” and similar derivatives shall have correlative
meanings. The term “sole” means “sole and absolute”. References to any statute, law, ordinance,
regulation or rule are to such statute, law, ordinance, regulation or rule, as modified from time to time and to any successor
to any such statute, law, ordinance, regulation or rule, in each case as in effect at the time any such reference is operative.

 

10.4         
Headings; Singular and Plural. Article, section, subsection, appendix, exhibit, schedule and table titles and other
divisions contained in any Loan Document are without substantive meaning or content of any kind and are not a part of the agreement
between the parties. Unless otherwise expressly indicated, the meaning of any term defined (including by reference) in any Loan
Document shall be equally applicable to both the singular and plural forms of such term.

 

10.5         
Performance; Time. Whenever any performance obligation hereunder or under any other Loan Document (other than a payment
obligation) shall be stated to be due or required to be satisfied on a day other than a Business Day, such performance shall be
made or satisfied on the next succeeding Business Day. For the avoidance of doubt, the initial payments of interest and fees relating
to the Obligations (other than amounts due on the Closing Date) shall be due and paid on the first day of the first month following
the entry of the Obligations onto the operations systems of Agent, but in no event later than the first day of the second month
following the Closing Date. In the computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including”; the words “to” and “until” each mean “to
but excluding”, and the word “through” means “to and including.” If any provision
of this Agreement or any other Loan Document refers to any action taken or to be taken by any Person, or which such Person is prohibited
from taking, such provision shall be interpreted to encompass any and all means, direct or indirect, of taking, or not taking,
such action.

 

10.6         
Contracts. Unless otherwise expressly provided herein or in any other Loan Document, references to agreements and
other contractual instruments, including this Agreement and the other Loan Documents, shall be deemed to include all subsequent
amendments, thereto, restatements and substitutions thereof and other modifications and supplements thereto which are in effect
from time to time, but only to the extent such amendments and other modifications are not prohibited by the terms of any Loan Document.

 

10.7         
Laws. References to any statute, law, ordinance, regulation or rule may be made by using either the common or public
name thereof or a specific cite reference and such references are to such statute, law, ordinance, regulation or rule, as modified
from time to time and to any successor to any such statute, law, ordinance, regulation or rule, in each case as in effect at the
time any such reference is operative.

 

    	 	70	 

     

    

 

10.8         
Accounting Terms and Principles. All accounting determinations required to be made pursuant hereto shall, unless
expressly otherwise provided herein, be made in accordance with GAAP. No change in GAAP used in the preparation of any Financial
Statement or Compliance Certificate or used in measuring compliance with any financial covenant or financial performance test in
this Agreement or the other Loan Documents and hereafter adopted by Borrower or any other Credit Party shall be given effect for
purposes of measuring compliance with any such covenants and tests, including those in Section 2.1, Section
4.22, and Article 5, unless Borrower, Agent and the Required Lenders agree to modify such provisions
to reflect such changes in GAAP and, unless such provisions are modified, all Financial Statements, Compliance Certificates and
similar documents provided hereunder shall be provided together with a reconciliation between the calculations and amounts set
forth therein before and after giving effect to such change in GAAP. Notwithstanding any other provision contained herein, all
terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred
to in Section 2.1, Section 4.22, and Article 5, shall be made, without giving
effect to any election under Accounting Standards Codification 825-10 (or any other Financial Accounting Standard having a similar
result or effect) to value any Indebtedness or other Liabilities of any Credit Party at “fair value.”

 

10.9         
Payments. Agent may set up standards and procedures to determine or redetermine the equivalent in Dollars of any
amount expressed in any currency other than Dollars and otherwise may, but shall not be obligated to, rely on any determination
made by any Credit Party. Any such determination or redetermination by Agent shall be conclusive and binding for all purposes,
absent manifest error. No determination or redetermination by any Secured Party or any Credit Party and no other currency conversion
shall change or release any obligation of any Credit Party or of any Secured Party (other than Agent and its Related Persons) under
any Loan Document, each of which agrees to pay separately for any shortfall remaining after any conversion and payment of the amount
as converted. Agent may round up or down, and may set up appropriate mechanisms to round up or down, any amount hereunder to nearest
higher or lower amounts and may determine reasonable de minimis payment thresholds.

 

[Signature Pages Follow]

 

 

 

    	 	71	 

     

    

EXECUTED effective as of the date
first set forth above.

 

	 	BORROWER:
	 	LVP HOLD CO MEZZ III LLC, a Delaware limited liability company
	 	 
	 	By:  ______________________________

Name: Joseph E. Teichman

Title: Executive Vice President
	 	 
	 	Principal place of business and address for notices:
	 	 
	 	
        c/o The Lightstone Group

        1985 Cedar Bridge Ave, Ste. 1

        Lakewood, NJ 08701

        Attn: Joseph E. Teichman, Esq.

        Facsimile No.: (732) 612-1444

        Email address: jteichman@lightstonegroup.com

         

        With a copy to:

         

        Eckert Seamans Cherin & Mellott, LLC

        U.S. Steel Tower, 44th Floor

        600 Grant Street

        Pittsburgh, Pennsylvania 15219

        Attn: Timothy Q. Hudak, Esq.

        Facsimile No.: (412) 566-6099

        Email address: thudak@eckertseamans.com 

 

     

     

    

 

EXECUTED effective as of the date
first set forth above.

 

	 	WESTERN ALLIANCE BANK, as Agent
	 	By:_______________________________
	 	Name: _____________________________
	 	Title: _____________________________
	 	Address for Notices:
	 	Western Alliance Bank
	 	One East Washington Street, 14th Floor
	 	Phoenix, Arizona 85004
	 	
        Attention: Justin Schwab

         

        With a copy to:

        

        Snell & Wilmer L.L.P.

        One Arizona Center

        400 East Van Buren

        Phoenix, Arizona 85004-22025

        Attention: Marc Currie

        Facsimile: (602) 382-6070

         

	 	Address for payments:
	 	Western Alliance Bank
	 	One East Washington Street, 14th Floor
	 	Phoenix, Arizona 85004

 

 

     

     

    

 

EXECUTED effective as of the date
first set forth above.

 

	 	WESTERN ALLIANCE BANK, an Arizona corporation, as a Lender
	 	 
	 	Name: ________________________________________
	 	Title:  _________________________________________
	 	
        Address for notices:

        Western Alliance Bank

        One East Washington Street, 14th
        Floor

        Phoenix, Arizona 85004

Attn: Justin SchwabExhibit 10.15

 

 

 

LOAN AGREEMENT

 

 

  

Dated as of October 5, 2016

 

by and among

 

LVP H2S SEATTLE LLC,

LVP H2S SEATTLE HOLDING
CORP.,

LVP H2S SALT LAKE CITY LLC AND

LVP H2S SALT LAKE CITY
HOLDING CORP.,

individually and/or collectively
(as the context requires), as Borrower

 

and

 

CITIGROUP GLOBAL MARKETS
REALTY CORP.,

as Lender

 

     

     

    

 

Table of Contents

 

	ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	 	 	 
	Section 1.1.	Definitions	1
	Section 1.2.	Principles of Construction	27
	 	 	 
	ARTICLE 2 GENERAL TERMS
	 	 	 
	Section 2.1.	Loan Commitment; Disbursement to Borrower	27
	Section 2.2.	The Loan	27
	Section 2.3.	Disbursement to Borrower	27
	Section 2.4.	The Note and the other Loan Documents	27
	Section 2.5.	Interest Rate 	27
	Section 2.6.	Loan Payments	28
	Section 2.7.	Prepayments	30
	Section 2.8.	Defeasance	31
	Section 2.9.	Intentionally Omitted	33
	 	 	 
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES
	Section 3.1.	Legal Status and Authority	34
	Section 3.2.	Validity of Documents	34
	Section 3.3.	Litigation	35
	Section 3.4.	Agreements	35
	Section 3.5.	Financial Condition	35
	Section 3.6.	Disclosure 	35
	Section 3.7.	No Plan Assets	36
	Section 3.8.	Not a Foreign Person	36
	Section 3.9.	Intentionally Omitted	36
	Section 3.10.	Business Purposes	36
	Section 3.11.	Borrower’s Principal Place of Business	36
	Section 3.12.	Status of Property 	36
	Section 3.13.	Financial Information	38
	Section 3.14.	Condemnation	38
	Section 3.15.	Separate Lots 	38
	Section 3.16.	Insurance	39
	Section 3.17.	Use of Property	39
	Section 3.18.	Leases and Rent Roll 	39
	Section 3.19.	Filing and Recording Taxes	39
	Section 3.20.	Management Agreement	39
	Section 3.21.	Illegal Activity/Forfeiture	39
	Section 3.22.	Taxes	39
	Section 3.23.	Permitted Encumbrances	40
	Section 3.24.	Third Party Representations	40
	Section 3.25.	Non-Consolidation Opinion Assumptions	40
	Section 3.26.	Federal Reserve Regulations	40
	Section 3.27.	Investment Company Act	40

 

    -i-

     

    

 

	Section 3.28.	Fraudulent Conveyance	40
	Section 3.29.	Embargoed Person	41
	Section 3.30.	Anti-Money Laundering and Economic Sanctions	41
	Section 3.31.	Organizational Chart 	42
	Section 3.32.	Bank Holding Company	42
	Section 3.33.	Hotel Matters	42
	Section 3.34.	Property Document Representations	43
	Section 3.35.	Master Lease Representations	43
	Section 3.36.	No Change in Facts or Circumstances; Disclosure	44
	 	 	 
	ARTICLE 4 BORROWER COVENANTS
	Section 4.1.	Existence	44
	Section 4.2.	Legal Requirements	44
	Section 4.3.	Maintenance and Use of Property	46
	Section 4.4.	Waste	46
	Section 4.5.	Taxes and Other Charges	46
	Section 4.6.	Litigation	47
	Section 4.7.	Access to Property	47
	Section 4.8.	Notice of Default	47
	Section 4.9.	Cooperate in Legal Proceedings	47
	Section 4.10.	Intentionally Omitted 	48
	Section 4.11.	Intentionally Omitted	48
	Section 4.12.	Books and Records	48
	Section 4.13.	Estoppel Certificates	51
	Section 4.14.	Leases and Rents	52
	Section 4.15.	Management Agreement	53
	Section 4.16.	Payment for Labor and Materials 	55
	Section 4.17.	Performance of Other Agreements	56
	Section 4.18.	Debt Cancellation	56
	Section 4.19.	ERISA	56
	Section 4.20.	No Joint Assessment	57
	Section 4.21.	Alterations	57
	Section 4.22.	Property Document Covenants	58
	Section 4.23.	Master Lease Covenants	58
	 	 	 
	ARTICLE 5 ENTITY COVENANTS
	Section 5.1.	Single Purpose Entity/Separateness	65
	Section 5.2.	Independent Director	70
	Section 5.3.	Change of Name, Identity or Structure	71
	Section 5.4.	Business and Operations	72
	 	 	
	ARTICLE 6 NO SALE OR ENCUMBRANCE
	Section 6.1.	Transfer Definitions	72
	Section 6.2.	No Sale/Encumbrance	73
	Section 6.3.	Permitted Equity Transfers	74

 

    -ii-

     

    

 

	Section 6.4.	Permitted Property Transfer (Assumption) 	75
	Section 6.5.	Lender’s Rights	78
	Section 6.6.	Economic Sanctions, Anti-Money Laundering and Transfers	78
	 	 	 
	ARTICLE 7 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
	Section 7.1.	Insurance	78
	Section 7.2.	Casualty 	84
	Section 7.3.	Condemnation	84
	Section 7.4.	Restoration	85
	 	 	 
	ARTICLE 8 RESERVE FUNDS
	Section 8.1.	Immediate Repair Funds	89
	Section 8.2.	Intentionally Omitted 	90
	Section 8.3.	Intentionally Omitted	90
	Section 8.4.	Operating Expense Funds	90
	Section 8.5.	Excess Cash Flow Funds	91
	Section 8.6.	Tax and Insurance Funds	91
	Section 8.7.	The Accounts Generally	92
	Section 8.8.	Intentionally Omitted	94
	Section 8.9.	Other Reserve Funds	94
	 	 	 
	ARTICLE 9 CASH MANAGEMENT
	Section 9.1.	Establishment of Certain Accounts	98
	Section 9.2.	Deposits into the Restricted Account	99
	Section 9.3.	Disbursements from the Cash Management Account	101
	Section 9.4.	Withdrawals from the Debt Service Account	101
	Section 9.5.	Payments Received Under this Agreement	101
	 	 	 
	ARTICLE 10 EVENTS OF DEFAULT; REMEDIES
	Section 10.1.	Event of Default	102
	Section 10.2.	Remedies	106
	 	 	 
	ARTICLE 11 SECONDARY MARKET
	Section 11.1.	Securitization	108
	Section 11.2.	Disclosure	110
	Section 11.3.	Reserves/Escrows	112
	Section 11.4.	Servicer	112
	Section 11.5.	Rating Agency Costs	112
	Section 11.6.	Mezzanine Option	113
	Section 11.7.	Conversion to Registered Form	113
	Section 11.8.	Uncross of Properties	114
	 	 	 
	ARTICLE 12 INDEMNIFICATIONS
	Section 12.1.	General Indemnification	115

 

    -iii-

     

    

 

	Section 12.2.	Mortgage and Intangible Tax Indemnification	115
	Section 12.3.	ERISA Indemnification	115
	Section 12.4.	Duty to Defend, Legal Fees and Other Fees and Expenses	116
	Section 12.5.	Survival	116
	Section 12.6.	Environmental Indemnity	116
	 	 	 
	ARTICLE 13 EXCULPATION
	Section 13.1.	Exculpation	116
	 	 	 
	ARTICLE 14 NOTICES
	Section 14.1.	Notices	120
	 	 	 
	ARTICLE 15 FURTHER ASSURANCES
	Section 15.1.	Replacement Documents	121
	Section 15.2.	Recording of Security Instrument	121
	Section 15.3.	Further Acts	122
	Section 15.4.	Changes in Tax, Debt, Credit and Documentary Stamp Laws	123
	 	 	 
	ARTICLE 16 WAIVERS
	Section 16.1.	Remedies Cumulative; Waivers	123
	Section 16.2.	Modification, Waiver in Writing	124
	Section 16.3.	Delay Not a Waiver 	124
	Section 16.4.	Waiver of Trial by Jury	124
	Section 16.5.	Waiver of Notice	124
	Section 16.6.	Remedies of Borrower	124
	Section 16.7.	Marshalling and Other Matters 	125
	Section 16.8.	Waiver of Statute of Limitations	125
	Section 16.9.	Waiver of Counterclaim	125
	Section 16.10.	Sole Discretion of Lender	125
	 	 	 
	ARTICLE 17 MISCELLANEOUS
	Section 17.1.	Survival	125
	Section 17.2.	Governing Law 	126
	Section 17.3.	Headings	127
	Section 17.4.	Severability	127
	Section 17.5.	Preferences	127
	Section 17.6.	Expenses	128
	Section 17.7.	Cost of Enforcement	129
	Section 17.8.	Schedules Incorporated	129
	Section 17.9.	Offsets, Counterclaims and Defenses	129
	Section 17.10.	No Joint Venture or Partnership; No Third Party Beneficiaries	129
	Section 17.11.	Publicity	130
	Section 17.12.	Limitation of Liability	130
	Section 17.13.	Conflict; Construction of Documents; Reliance	131

 

    -iv-

     

    

 

	Section 17.14.	Entire Agreement	131
	Section 17.15.	Liability	131
	Section 17.16.	Duplicate Originals; Counterparts	131
	Section 17.17.	Brokers	132
	Section 17.18.	Set-Off	132
	Section 17.19.	Contributions and Waivers	132
	Section 17.20.	Cross Default; Cross-Collateralization	136

 

    -v-

     

    

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT,
dated as of October 5, 2016 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”),
by and among CITIGROUP GLOBAL MARKETS REALTY CORP., having an address at 390 Greenwich Street, 7th Floor, New York, New
York 10013 (together with its successors and/or assigns, “Lender”), LVP H2S SEATTLE LLC, a Delaware limited
liability company (together with its successors and/or assigns, “Seattle Fee Owner”), LVP H2S SEATTLE HOLDING
CORP., a Delaware corporation (together with its successors and/or assigns, “Seattle Lessee”; Seattle Fee
Owner and Seattle Lessee are, individually and/or collectively (as the context requires) referred to herein as “Seattle
Borrower”), LVP H2S SALT LAKE CITY LLC, a Delaware limited liability company (together with its successors and/or
assigns, “SLC Fee Owner”) and LVP H2S SALT LAKE CITY HOLDING CORP., a Delaware corporation (together
with its successors and/or assigns, “SLC Lessee”; SLC Fee Owner and SLC Lessee are, individually and/or collectively
(as the context requires) referred to herein as “SLC Borrower”; Seattle Borrower and SLC Borrower are, individually
and/or collectively (as the context requires) referred to herein as “Borrower”), each having their respective
principal place of business at 1985 Cedar Bridge Avenue, Suite 1, Lakewood, New Jersey 08701.

 

RECITALS:

 

Borrower desires to obtain the Loan (defined
below) from Lender.

 

Lender is willing to make
the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined below).

 

In consideration of the
making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties
hereto hereby covenant, agree, represent and warrant as follows:

 

ARTICLE 1

 

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

 

Section 1.1.         Definitions.

 

For all purposes of this
Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:

 

“Acceptable LLC”
shall mean a limited liability company formed under Delaware law which (i) has at least one springing member, which, upon the dissolution
of all of the members or the withdrawal or the disassociation of all of the members from such limited liability company, shall
immediately become the sole member of such limited liability company, and (ii) otherwise meets the Rating Agency criteria then
applicable to such entities.

 

“Account Collateral”
shall mean (i) the Accounts, and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or
held in the Accounts from time to time; (ii) any and all amounts invested in Permitted Investments; (iii) all interest, dividends,
cash, instruments and other property from time to time received, receivable or otherwise payable in respect of, or in exchange
for, any or all of the foregoing; and (iv) to the extent not covered by clauses (i) - (iii) above, all “proceeds” (as
defined under the UCC as in effect in the State in which the Accounts are located) of any or all of the foregoing.

 

     

     

    

 

“Accounts”
shall mean the Cash Management Account, the Debt Service Account, the Restricted Account, the Tax Account, the Insurance Account,
the FF&E Reserve Account, the PIP Reserve Account, the Immediate Repair Account, the Excess Cash Flow Account, the Operating
Expense Account and any other account established by this Agreement or the other Loan Documents.

 

“Act” is defined in Section
5.1 hereof.

 

“Affected Property” shall
have the meaning set forth in Section 11.8 hereof.

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common
Control with such Person or, with respect to any natural Person, is a member of the Family Group of such Person.

 

“Affiliated Franchisor”
shall mean any franchisor of the Property in which Borrower, Guarantor, Sponsor, any SPE Component Entity (if any) or any Affiliate
of such entities has, directly or indirectly, any legal, beneficial or economic interest.

 

“Affiliated Manager”
shall mean any managing agent of any Individual Property in which Borrower, Guarantor, Sponsor, any SPE Component Entity (if any)
or any Affiliate of such entities has, directly or indirectly, any legal, beneficial or economic interest.

 

“Allocated Loan
Amount” shall mean the portion of the principal amount of the Loan allocated to any applicable Individual Property as
set forth on Schedule V hereof, as such amounts may be adjusted from time to time as hereinafter set forth. Notwithstanding
the foregoing, with respect to a Condemnation or Casualty affecting one hundred percent (100%) of an Individual Property, the Allocated
Loan Amount for such Individual Property shall, at Lender’s sole discretion, be reduced to zero (such Allocated Loan Amount
prior to reduction being referred to as the “Withdrawn Allocated Amount”) and each other Allocated Loan Amount
shall, if the Withdrawn Allocated Amount exceeds the Applied Net Proceeds realized with respect to such Individual Property (such
excess being referred to as the “Proceeds Deficiency”), be increased by an amount equal to the product of (1)
the Proceeds Deficiency and (2) a fraction, the numerator of which is the applicable Allocated Loan Amount (prior to the adjustment
in question) and the denominator of which is the aggregate of all of the Allocated Loan Amounts (prior to the adjustment in question)
other than the Withdrawn Allocated Amount.

 

“ALTA” shall mean American Land Title Association,
or any successor thereto.

 

“Alteration Threshold” shall mean, with
respect to each Individual Property, an amount equal to 5% of the outstanding principal amount of the Allocated Loan Amount
attributable to such Individual Property.

 

    	 	- 2 -	 

     

    

 

“Applicable Contribution” shall
have the meaning set forth in Section 17.19 hereof.

 

“Applicable Termination
Fees” shall mean, with respect to any Franchise Agreement, all termination fees, exit fees, other similar fees, costs,
penalties, judgments, damages and other amounts due, in each case, in connection with the termination, rejection or other cessation
of such Franchise Agreement.

 

“Approved Accounting
Method” shall mean the Uniform System of Accounts, (consistently applied) or such other method of accounting, consistently
applied, as may be reasonably acceptable to Lender.

 

“Approved Annual
Budget” shall have the meaning set forth in Section 4.12 hereof.

 

“Approved FF&E”
shall mean, for any period, FF&E which is reasonably approved by Lender (it being acknowledged that if no Trigger Period is
then ongoing, Lender’s approval shall be deemed given if, at the applicable time of disbursement, the applicable FF&E
is set forth in the then current Approved Annual Budget).

 

“Approved Extraordinary
Expense” shall mean an operating expense of the applicable Individual Property not set forth on the Approved Annual Budget
but approved by Lender in writing (which such approval shall not be unreasonably withheld or delayed).

 

“Approved ID Provider”
shall mean each of CT Corporation, Corporation Service Company, National Registered Agents, Inc., Vcorp, Wilmington Trust Company,
Stewart Management Company and Lord Securities Corporation; provided, that, (A) the foregoing shall be deemed Approved ID Providers
unless and until disapproved by any Rating Agency and (B) additional national providers of Independent Directors may be deemed
added to the foregoing hereunder to the extent approved in writing by Lender and the Rating Agencies.

 

“Approved Operating Expense”
shall mean an operating expense of the applicable Individual Property set forth on the Approved Annual Budget.

 

“Assignment of
Management Agreement” shall mean, individually and/or collectively (as the context requires) each Conditional Assignment
of Management Agreement dated as of the date hereof among Lender, Borrower and Manager, as the same may be amended, restated, replaced,
extended, renewed, supplemented or otherwise modified from time to time.

 

“Award”
shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect of all or any part
of the Property.

 

“Bank” shall be deemed to
refer to the bank or other institution maintaining the Restricted Account pursuant to the Restricted Account Agreement.

 

“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor
statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating
to bankruptcy, insolvency or creditors’ rights.

 

    	 	- 3 -	 

     

    

 

“Bankruptcy Event”
shall mean the occurrence of any one or more the of the following: (i) Borrower, any Affiliated Manager, any Affiliated Franchisor
or any SPE Component Entity shall commence any case, proceeding or other action (A) under the Bankruptcy Code and/or any Creditors
Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent,
or seeking reorganization, liquidation or dissolution or (B) seeking appointment of a receiver, trustee, custodian, conservator
or other similar official for it or for all or any substantial part of its assets (other than with the express written consent
of Lender or Servicer); (ii) Borrower, any Affiliated Manager, any Affiliated Franchisor or any SPE Component Entity shall make
a general assignment for the benefit of its creditors (other than with the express written consent of Lender or Servicer); (iii)
any Restricted Party (or Affiliate thereof) files, or joins or colludes in the filing of, (A) an involuntary petition against Borrower,
any Affiliated Manager, any Affiliated Franchisor or any SPE Component Entity under the Bankruptcy Code or any other Creditors
Rights Laws, or solicits or causes to be solicited or colludes with petitioning creditors for any involuntary petition under the
Bankruptcy Code or any other Creditors Rights Laws against Borrower, any Affiliated Manager, any Affiliated Franchisor or any SPE
Component Entity or (B) any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of Borrower’s, any Affiliated Manager’s, any Affiliated Franchisor’s
or any SPE Component Entity’s assets; (iv) Borrower, any Affiliated Manager, any Affiliated Franchisor or any SPE Component
Entity files an answer consenting to or otherwise affirmatively acquiescing in or joining in any involuntary petition filed against
it, by any other Person under the Bankruptcy Code or any other Creditors Rights Laws, or solicits or causes to be solicited or
colludes with petitioning creditors for any involuntary petition against it from any Person; (v) any Restricted Party (or Affiliate
thereof) consents to or affirmatively acquiesces in or joins in an application for the appointment of a custodian, receiver, trustee,
or examiner for Borrower, any SPE Component Entity, any Affiliated Manager, any Affiliated Franchisor or any portion of the Property;
(vi) Borrower, any Affiliated Manager, any Affiliated Franchisor or any SPE Component Entity makes an assignment for the benefit
of creditors, or, other than to Lender or Servicer, admits, in writing or in any legal proceeding, its insolvency or inability
to pay its debts as they become due; (vii) any Restricted Party (or Affiliate thereof) contesting or opposing any motion made by
Lender to obtain relief from the automatic stay or seeking to reinstate the automatic stay in the event of any proceeding under
the Bankruptcy Code or any other Creditors Rights Laws involving Sponsor or its subsidiaries; (viii) any Restricted Party (or Affiliate
thereof) taking any action in furtherance of, in collusion with respect to or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in items (i) through (vii) above; and (ix) in the event Lender receives less than the full value
of its claim in any proceeding under the Bankruptcy Code or any other Creditors Rights Laws, Sponsor or any of its Affiliates receiving
an equity interest or other financial benefit of any kind as a result of a “new value” plan or equity contribution.

 

“Benefit Amount” shall have
the meaning set forth in Section 17.19 hereof.

 

“Borrower Group”
shall mean each Borrower Party, any of their respective Affiliates and any other Person acting or failing to act at the direction
of any Borrower Party or any of their respective Affiliates.

 

    	 	- 4 -	 

     

    

 

“Borrower Party”
and “Borrower Parties” shall mean each of Borrower, any SPE Component Entity, Sponsor, any Affiliated Manager,
any Affiliated Franchisor and Guarantor.

 

“Business Day”
shall mean a day on which commercial banks are not authorized or required by applicable law to close in New York, New York.

 

“Cash Flow Adjustments”
shall mean adjustments made by Lender in its calculation of Underwritable Cash Flow and the components thereof, which such
adjustments shall only include adjustments (A) for (i) items of a non-recurring nature and (ii) imminent liabilities and/or other
expense increases (including, without limitation, imminent increases to Taxes and Insurance Premiums); and (B) to exclude rental
income attributable to any Tenant (to the extent there are any Tenant’s in place at the Property (it being acknowledged that
a standard and customary transient hotel guest shall not be deemed a Tenant for purposes hereof)) (1) in bankruptcy that has not
affirmed its Lease in the applicable bankruptcy proceeding pursuant to a final, non-appealable order of a court of competent jurisdiction,
(2) not paying rent under its Lease or otherwise in default under its Lease beyond any applicable notice and cure periods, (3)
that has expressed its intention (directly, constructively or otherwise) to not renew, terminate, cancel and/or reject its applicable
Lease, (4) whose tenancy at the Property is month-to-month and/or (5) under a Lease which expires within 6 months or less of the
applicable date of calculation hereunder.

 

“Cash Management Account”
shall have the meaning set forth in Section 9.1 hereof.

 

“Cash Management Provisions”
shall mean the representations, covenants and other terms and conditions of this Agreement and the other Loan Documents (including,
without limitation, the Restricted Account Agreement) related to, in each case, cash management and/or other related matters (including,
without limitation, Article 9 hereof).

 

“Casualty” shall have the
meaning set forth in Section 7.2 hereof.

 

“Casualty Consultant” shall
have the meaning set forth in Section 7.4 hereof.

 

“Closing Date” shall mean
the date of the funding of the Loan.

 

“Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise
of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof.

 

“Contribution” shall have
the meaning set forth in Section 17.19 hereof.

 

“Control”
shall mean the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership
of voting securities or other beneficial interests, by contract or otherwise. The terms “Controlled” and “Controlling”
shall have correlative meanings.

 

    	 	- 5 -	 

     

    

 

“Covered Rating
Agency Information” shall mean any Provided Information furnished to the Rating Agencies in connection with issuing,
monitoring and/or maintaining the Securities.

 

“Credit Card Agreement” shall
have the meaning set forth in Section 9.2 hereof.

 

“Creditors Rights Laws” shall
mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts or debtors.

 

“Debt”
shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement or the other
Loan Documents (including, without limitation, all costs and expenses payable to Lender thereunder).

 

“Debt Service”
shall mean, with respect to any particular period of time, scheduled principal (if applicable) and interest payments hereunder.

 

“Debt Service Account” shall
have the meaning set forth in Section 9.1 hereof.

 

“Debt Service
Coverage Ratio” shall mean the ratio calculated by Lender on a monthly basis of (i) the Underwritable Cash Flow to (ii)
the aggregate amount of debt service which would be due for the twelve (12) month period immediately preceding the date of calculation;
provided, that, the foregoing shall be calculated by Lender (A) based upon the actual amount of debt service which would be due
for such period and (B) assuming that the Loan had been in place for the entirety of said period.

 

“Default”
shall mean the occurrence of any event hereunder or under the Note or the other Loan Documents which, but for the giving of notice
or passage of time, or both, would be an Event of Default.

 

“Default Rate”
shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate, or (ii) four percent
(4%) above the Interest Rate.

 

“Default Yield Maintenance Premium”
shall mean an amount equal to the greater of (i) 4% of the amount of the Debt prepaid or (ii) the Yield Maintenance Premium.

 

“Defeasance Approval Item”
shall have the meaning set forth in Section 2.8 hereof.

 

“Defeasance Collateral Account”
shall have the meaning set forth in Section 2.8 hereof.

 

“Direction Notice” shall
have the meaning set forth in Section 9.2 hereof.

 

“Disclosure Documents”
shall mean, collectively and as applicable, any offering circular, prospectus, prospectus supplement, private placement memorandum
or other offering document, in each case, in connection with a Securitization.

 

    	 	- 6 -	 

     

    

 

“Eligible Account”
shall mean a separate and identifiable account from all other funds held by the holding institution that is an account or accounts
maintained with a federal or state- chartered depository institution or trust company which (a) complies with the definition of
Eligible Institution, (b) has a combined capital and surplus of at least $50,000,000 and (c) has corporate trust powers and is
acting in its fiduciary capacity. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument.

 

“Eligible Institution”
shall mean (a) a depository institution or trust company insured by the Federal Deposit Insurance Corporation (i) the short term
unsecured debt obligations or commercial paper of which are rated at least “A-1+” (or its equivalent) from each
of the Rating Agencies (in the case of accounts in which funds are held for thirty (30) days or less) and (ii) the long term unsecured
debt obligations of which are rated at least “A+” (or its equivalent) from each of the Rating Agencies (in the case
of accounts in which funds are held for more than thirty (30) days) or (b) such other depository institution otherwise approved
by the Rating Agencies from time-to-time.

 

“Embargoed Person” shall
have the meaning set forth in Section 3.29 hereof.

 

“Environmental Indemnity”
shall mean that certain Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower and Guarantor in connection
with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.

 

“Environmental Laws” shall
have the meaning set forth in the Environmental Indemnity.

 

“Equity Collateral” shall
have the meaning set forth in Section 11.6 hereof.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may heretofore have been or shall be amended, restated,
replaced or otherwise modified.

 

“Event of Default” shall
have the meaning set forth in Section 10.1 hereof.

 

“Excess Cash Flow” shall
have the meaning set forth in Section 9.3 hereof.

 

“Excess Cash Flow Account” shall
have the meaning set forth in Section 8.5 hereof.

 

“Excess Cash Flow Funds” shall
have the meaning set forth in Section 8.5 hereof.

 

“Exchange Act” shall mean
the Securities and Exchange Act of 1934, as amended.

 

“Excluded Items”
shall mean (i) the fees and expenses of any attorneys of any Borrower Party (whether in house or retained) and (ii) any costs
incurred by any Borrower Party in connection with the cooperation obligations under Section 11.1(b) hereof to the extent that Lender
reasonably determines that it needs to invoke Borrower’s cooperation obligations pursuant to Section 11.1(b) hereof as the
direct result of any Borrower Party (or Affiliate thereof) committing willful misconduct, negligence, fraud, misrepresentation
and/or failure to state a material fact or circumstance

 

    	 	- 7 -	 

     

    

 

“Exculpated Parties”
and “Exculpated Parties” shall mean, collectively, Borrower’s direct or indirect members, managers, shareholders,
partners, officers, directors, employees, advisors or agents; provided, that, in no event shall Guarantor be deemed to be an Exculpated
Party, provided, further, that, for the avoidance of doubt, Guarantor’s liability shall be governed by the Guaranty and the
Environmental Indemnity.

 

“Family Group”
shall mean, as to any natural Person, the spouse, children and grandchildren (in each case, by birth or adoption) and other
lineal descendants, in each case, of such natural Person and, in each case, family trusts and/or conservatorships for the benefit
of any of the foregoing Persons.

 

“FF&E”
shall mean the replacement of furniture, fixtures and equipment from time to time in connection with the operation of the Property.

 

“FF&E Payment” shall
have the meaning set forth in Section 8.9 hereof.

 

“FF&E Reserve Account” shall
have the meaning set forth in Section 8.9 hereof.

 

“FF&E Reserve Funds” shall
have the meaning set forth in Section 8.9 hereof.

 

“FF&E Reserve Monthly Deposit”
shall have the meaning set forth in Section 8.9 hereof.

 

“First Monthly Payment Date”
shall mean November 6, 2016.

 

“Fitch” shall mean Fitch,
Inc.

 

“Flood Insurance Acts” shall
have the meaning set forth in Section 7.1 hereof.

 

“Franchise
Agreement” shall mean, individually and/or collectively (as the context requires) (a) as to the Seattle Property,
(i) that certain Franchise Agreement dated as of August 2, 2016 between Hilton Franchise Holding LLC and Seattle Lessee or
(ii) any Qualified Franchise Agreement entered into subsequent to the Closing Date in accordance with the terms and
provisions of this Agreement and the other Loan Documents and (b) as to the SLC Property, (i) that certain Franchise
Agreement dated as of August 2, 2016 between Hilton Franchise Holding LLC and SLC Lessee or (ii) any Qualified Franchise
Agreement entered into subsequent to the Closing Date in accordance with the terms and provisions of this Agreement and the
other Loan Documents.

 

“Franchise Agreement
Cure Conditions” shall mean each of the following (i) Borrower has cured all defaults (if any) under the Franchise Agreement
to the satisfaction of the applicable Franchisor, (ii) Borrower and the applicable Franchisor have re-affirmed the Franchise Agreement
as being in full force and effect, (iii) with respect to any applicable bankruptcy or insolvency proceedings involving the applicable
Franchisor and/or Franchise Agreement (if any), such Franchisor is no longer insolvent or subject to any bankruptcy or insolvency
proceedings and has affirmed such Franchise Agreement pursuant to a final, non- appealable order of a court of competent jurisdiction,
(iv) the Property continues to be operated, “flagged” and branded pursuant to the Franchise Agreement and (v) all Permits
applicable to the related Franchise Agreement are in full force and effect. For purposes of clarification, the Franchise Agreement
Cure Conditions shall only be deemed to be satisfied hereunder to the extent that each of the items listed in subsections (i) through
(v) above (other than any of said items deemed inapplicable by Lender in its reasonable discretion due to the nature of the events
related to the applicable Franchise Agreement Trigger Period) are fully satisfied to Lender’s reasonably satisfaction.

 

    	 	- 8 -	 

     

    

 

“Franchise Agreement
Trigger Period” shall mean a period (A) commencing upon the first to occur of (i) Borrower being in default under the
Franchise Agreement beyond any applicable notice and cure periods, (ii) Borrower or Franchisor giving notice that it is terminating
the Franchise Agreement, (iii) any termination or cancellation of the Franchise Agreement (including, without limitation, rejection
in any bankruptcy or similar insolvency proceeding of Franchisor) and/or the Franchise Agreement expiring or otherwise failing
to otherwise be in full force and effect, (iv) any bankruptcy or similar insolvency of Franchisor, (v) the Property failing to
be operated, “flagged” and/or branded pursuant to the Franchise Agreement and (vi) any Permit applicable to the Franchise
Agreement ceasing to be in full force in effect; and (B) expiring upon Lender’s receipt of evidence reasonably acceptable
to Lender (which such evidence shall, if required by Lender, include, without limitation, a duly executed estoppel certificate
and comfort letter from the applicable Franchisor, in each case, in form and substance reasonably acceptable to Lender) of (1)
(a) the satisfaction of the Franchise Agreement Cure Conditions or (b) the branding, “flagging” and operation of the
Property pursuant to a replacement Qualified Franchise Agreement entered into in accordance with the terms of this Agreement and
the other Loan Documents (which Qualified Franchise Agreement shall be in full force and effect with no defaults thereunder) and
(2) to the extent a PIP is required in connection with the foregoing, the deposit of the corresponding PIP Deposit into the PIP
Reserve Account in accordance with Section 8.9 hereof.

 

“Franchise Renewal
Event” shall mean, in connection with any Franchise Renewal Trigger Event, an event which shall occur upon Lender’s
receipt of evidence reasonably acceptable to Lender (which such evidence shall include, without limitation, a duly executed estoppel
certificate and comfort letter from the applicable Franchisor (in each case, in form and substance reasonably acceptable to Lender))
that (i) the related Franchise Agreement has been extended or a replacement Qualified Franchise Agreement has been entered into,
in each case, for a term expiring no earlier than three (3) years after the Stated Maturity Date and otherwise in accordance with
the applicable terms and conditions of this Agreement and the other Loan Documents, (ii) such Franchise Agreement (as so extended)
or such replacement Qualified Franchise Agreement, as applicable, is in full force and effect with no defaults thereunder and (iii)
to the extent a PIP is required in connection with the foregoing, the corresponding PIP Deposit has been deposited in the PIP Reserve
Account in accordance with Section 8.9 hereof. For the purposes of the foregoing, the applicable Franchise Agreement will not fail
to be deemed “entered into” and “in full force and effect” to the extent the same has been duly executed
and delivered but provides that it is only effective after the expiration of the then current Franchise Agreement.

 

“Franchise Renewal
Trigger Event” shall mean an event which shall be deemed to have occurred if a Franchise Renewal Event does not occur
on or before the date which is twelve (12) months prior to the expiration of the then applicable term of the Franchise Agreement.

 

    	 	- 9 -	 

     

    

 

 

 

“Franchise Triggers” shall
have the meaning set forth in Section 4.24 hereof.

 

“Franchisor”
shall mean, with respect to any Franchise Agreement, each applicable franchisor or other counterparty thereunder; provided, that,
to the extent that any applicable Hotel Operating Agreement is owned, controlled, provided by or otherwise has no counterparty
other than Borrower, Borrower shall be deemed the “Franchisor” thereunder for purposes hereof and of the other Loan
Documents.

 

“Funding Borrower” shall
have the meaning set forth in Section 17.19 hereof.

 

“GAAP” shall mean generally
accepted accounting principles in the United States of

America as of the date
of the applicable financial report.

 

“Government Securities”
shall mean “government securities” as defined in Section 2(a)(16) of the Investment Company Act of 1940 and within
the meaning of Treasury Regulation Section 1.860G-2(a)(8); provided, that, (i) such “government securities” are not
subject to prepayment, call or early redemption, (ii) to the extent that any REMIC Requirements require a revised and/or alternate
definition of “government securities” in connection with any defeasance hereunder, the foregoing shall be deemed amended
in a manner commensurate therewith and (iii) the aforesaid laws and regulations shall be deemed to refer to the same as may be
and/or may hereafter be amended, restated, replaced or otherwise modified.

 

“Governmental
Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any
governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

 

“Gross Rents”
shall mean an amount equal to annual rental income reflected in a current rent roll for all Tenants (other than Master Tenant)
paying rent, open for business and in actual physical occupancy of their respective space demised pursuant to Leases (other than
the Master Lease) which are in full force and effect (Borrower hereby represents that as of the Closing Date, the Gross Rents at
the Property equal $0.00).

 

“Guarantor”
shall mean Lightstone Value Plus REIT III LP, a Delaware limited partnership and any successor to and/or replacement of the foregoing
Person, in each case, pursuant to and in accordance with the applicable terms and conditions of the Loan Documents.

 

“Guarantor Control
Condition” shall mean a condition which shall be deemed satisfied to the extent that each Person that Controls (directly
or indirectly) Borrower and, if applicable, each SPE Component Entity is, in each case, itself a current Guarantor (as distinguished
from any prior Guarantor that has been replaced in accordance with the applicable terms and conditions of the Loan Documents) or
Controlled (directly or indirectly) by one or more current Guarantors (as distinguished from any prior Guarantor that has been
replaced in accordance with the applicable terms and conditions of the Loan Documents).

 

“Guaranty”
shall mean that certain Limited Recourse Guaranty executed by Guarantor and dated as of the date hereof.

 

    	 	- 10 -	 

     

    

“Hotel Operating
Agreement” shall mean any brand, trademark, tradename, license, franchise, reservation system, logotype, mark, listing
system, hotel operating system (including, without limitation, any of the foregoing owned or otherwise controlled by Borrower,
Sponsor or Guarantor or any of their respective Affiliates) and any agreements and/or rights to use the foregoing (by law, contract
or otherwise), in each case, as would be commonly subsumed into a hotel franchise agreement.

 

“Hotel Provisions”
shall mean the representations, covenants and other terms and conditions of this Agreement and the other Loan Documents related
to, in each case, the operation of the Properties as hotels (including, without limitation, provisions relating to each Franchise
Agreement).

 

“Immediate Repair Account”
shall have the meaning set forth in Section 8.1 hereof.

 

“Immediate Repair Funds”
shall have the meaning set forth in Section 8.1 hereof.

 

“Immediate Repairs” shall
have the meaning set forth in Section 8.1 hereof.

 

“Improvements” shall mean,
individually and/or collectively (as the context requires), the “Improvements” as defined in each applicable Security
Instrument.

 

“Indebtedness”
shall mean, for any Person, any indebtedness or other similar obligation for which such Person is obligated (directly or indirectly,
by contract, operation of law or otherwise), including, without limitation, (i) all indebtedness of such Person for borrowed money,
for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets
is liable, (ii) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would
be liable if such amounts were advanced thereunder, (iii) all amounts required to be paid by such Person by contract and/or as
a guaranteed payment (including, without limitation, any such amounts required to be paid to partners and/or as a preferred or
special dividend, including any mandatory redemption of shares or interests), (iv) all indebtedness incurred and/or guaranteed
by such Person, directly or indirectly (including, without limitation, contractual obligations of such Person), (v) all obligations
under leases that constitute capital leases for which such Person is liable, (vi) all obligations of such Person under interest
rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently
or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against
loss and (vii) any property-assessed clean energy loans or similar indebtedness, including, without limitation, if such loans or
indebtedness are made or otherwise provided by any Governmental Authority and/or secured or repaid (directly or indirectly) by
any taxes or similar assessments.

 

    	 	- 11 -	 

     

    

“Indemnified Parties”
shall mean (a) Lender, (b) any successor owner or holder of the Loan or participations in the Loan, (c) any Servicer or prior Servicer
of the Loan, (d) any Investor or any prior Investor in any Securities, (e) any trustees, custodians or other fiduciaries who hold
or who have held a full or partial interest in the Loan for the benefit of any Investor or other third party, (f) any receiver
or other fiduciary appointed in a foreclosure or other Creditors Rights Laws proceeding, (g) any officers, directors, shareholders,
partners, members, employees, agents, servants, representatives, contractors, subcontractors, Affiliates or subsidiaries of any
and all of the foregoing, and (h) the heirs, legal representatives, successors and assigns of any and all of the foregoing (including,
without limitation, any successors by merger, consolidation or acquisition of all or a substantial portion of the Indemnified Parties’
assets and business), in all cases whether during the term of the Loan or as part of or following a foreclosure of the Loan.

 

“Independent Director” shall
have the meaning set forth in Section 5.2 hereof.

 

“Individual Property” shall
mean each parcel of real property, the Improvements thereon and all personal property owned by the applicable Borrower and encumbered
by the applicable Security Instrument, together with all rights pertaining to such property and Improvements, as more particularly
described in the granting clauses of the applicable Security Instrument and referred to therein as the “Property.”

 

“Insurance Account” shall
have the meaning set forth in Section 8.6 hereof.

 

“Insurance Payment
Date” shall mean, with respect to any applicable Policies, the date occurring 30 days prior to the date the applicable
Insurance Premiums associated therewith are due and payable.

 

“Insurance Premiums” shall
have the meaning set forth in Section 7.1 hereof.

 

“Intellectual Property” shall
have the meaning set forth in Section 3.33 hereof.

 

“Interest Accrual
Period” shall mean the period beginning on (and including) the sixth (6th) day of each calendar month during the term
of the Loan and ending on (and including) the fifth (5th) day of the next succeeding calendar month.

 

“Interest Rate” shall mean
a rate per annum equal to 4.73%.

 

“Interest Shortfall” shall
have the meaning set forth in Section 2.7 hereof.

 

“Investor”
shall mean any investor or potential investor in the Loan (or any portion thereof or interest therein) in connection with any Secondary
Market Transaction.

 

“IRS Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time or any successor statute.

 

“Land” shall mean, individually
and/or collectively (as the context requires), the “Land”

as defined in each applicable
Security Instrument.

 

“Lease”
shall have the meaning set forth in the Security Instrument; provided, however, notwithstanding anything in the Security Instrument
to the contrary, for purposes of this Agreement, the term “Lease" shall exclude the rental of hotel rooms to transient
guests and the temporary, transient rental of conference room and meeting space for special events, in each case, in the ordinary
course of business at the Property.

 

    	 	- 12 -	 

     

    

“Legal Requirements”
shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances,
judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof, or the construction,
use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation,
the Americans with Disabilities Act of 1990, and all Permits, authorizations and regulations relating thereto, and all covenants,
agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force
affecting Borrower or the Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications
or alterations in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

 

“Lender Control
Date” shall mean, following an exercise of remedies under the Loan Documents, the earlier to occur of (i) the date that
Lender takes title to the Property in connection with an exercise of remedies under the Loan Documents and controls the Property
to the exclusion of any Borrower Party or any Affiliate thereof and (ii) the date that any receiver appointed in connection with
Lender’s remedies under the Loan Documents takes physical possession of and controls the Property, in each case, to the exclusion
of any Borrower Party or any Affiliate thereof.

 

“Liabilities” shall have
the meaning set forth in Section 11.2 hereof.

 

“Loan” shall mean the loan
made by Lender to Borrower pursuant to this Agreement.

 

“Loan Bifurcation” shall
have the meaning set forth in Section 11.1 hereof.

 

“Loan Documents”
shall mean, collectively, this Agreement, the Note, the Security Instrument, the Environmental Indemnity, the Assignment of Management
Agreement, the Guaranty and all other documents executed and/or delivered in connection with the Loan, as each of the same may
be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.

 

“Losses”
shall mean (except to the extent that any such items arise solely from the illegal acts, gross negligence or willful misconduct
of Lender or, to the extent applicable, the Indemnified Party seeking indemnification for the applicable Loss) any and all losses,
damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including but not limited to strict liabilities),
obligations, debts, diminutions in value, fines, penalties, charges, amounts paid in settlement, foreseeable and unforeseeable
consequential damages (it being acknowledged that consequential and/or punitive damages shall be covered by this definition solely
to the extent such consequential damages and/or punitive damages are actually paid or payable to third parties by any party seeking
indemnification for Losses), litigation costs and attorneys’ fees, in the case of each of the foregoing, of whatever kind
or nature and whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments
or awards.

 

“Management Agreement”
shall mean individually and/or collectively (as the context may require), each management agreement entered into by and between
Borrower and Manager, pursuant to which Manager is to provide management and other services with respect to the Property or any
portion thereof, as the same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time
to time.

 

    	 	- 13 -	 

     

    

“Manager”
shall mean (i) with respect to each Individual Property, Island Hospitality Management II, LLC or (ii) such other Person selected
as the manager of any applicable Individual Property in accordance with the terms of this Agreement or the other Loan Documents.

 

“Master Lease”
shall mean, individually and/or collectively (as the context may require), (i) that certain Lease Agreement dated as of August
2, 2016 by and between Seattle Fee Owner and Seattle Lessee and (ii) that certain Lease Agreement dated as of August 2, 2016 by
and between SLC Fee Owner and SLC Lessee, as each of the same may be modified by the applicable Master Lease Estoppel and may be
further amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with the terms and conditions
hereof.

 

“Master Lease
Estoppel” shall mean, individually and/or collectively (as the context may require), (i) that certain Master Lease Estoppel
and Agreement dated as of the date hereof by and among Lender, Seattle Fee Owner and Seattle Lessee and (ii) that certain Master
Lease Estoppel and Agreement dated as of the date hereof by and among Lender, SLC Fee Owner and SLC Lessee, as each of the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with the terms and conditions
hereof.

 

“Master Lease
Provisions” shall mean the representations, covenants and other terms and conditions of this Agreement and the other
Loan Documents related to, in each case, the Master Lease.

 

“Master Tenant”
shall mean, individually and/or collectively (as the context may require), then then current tenant under each Master Lease.

 

“Material Action”
shall mean with respect to any Person, any action to consolidate or merge such Person with or into any Person, or sell all or substantially
all of the assets of such Person, or to institute proceedings to have such Person be adjudicated bankrupt or insolvent, or consent
to the institution of bankruptcy or insolvency proceedings against such Person or file a petition seeking, or consent to, reorganization
or relief with respect to such Person under any applicable federal or state law relating to bankruptcy, or consent to the appointment
of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of such Person or a substantial part of
its property, or make any assignment for the benefit of creditors of such Person, or admit in writing such Person’s inability
to pay its debts generally as they become due, or take action in furtherance of any such action, or, to the fullest extent permitted
by law, dissolve or liquidate such Person.

 

“Material Adverse
Effect” shall mean a material adverse effect on (i) the Property or any material portion thereof, (ii) the business,
profits, operations or condition (financial or otherwise) of Borrower, Guarantor, Sponsor or the Property or any material portion
thereof, (iii) the enforceability, validity, perfection or priority of the lien of the Security Instrument or the other Loan Documents,
or (iv) the ability of Borrower and/or Guarantor to perform its obligations under the Security Instrument or the other Loan Documents.

 

    	 	- 14 -	 

     

    

“Maturity Date”
shall mean the Stated Maturity Date or such other date on which the final payment of the principal amount of the Loan becomes due
and payable as herein provided, whether at the Stated Maturity Date, by declaration of acceleration, or otherwise.

 

“Maximum Legal
Rate” shall mean the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan
Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest
rate provisions of the Loan.

 

“Member” is defined in Section
5.1 hereof.

 

“Mezzanine Borrower” shall
have the meaning set forth in Section 11.6 hereof.

 

“Mezzanine Option” shall
have the meaning set forth in Section 11.6 hereof.

 

“Minimum Disbursement Amount”
shall mean Fifteen Thousand and No/100 Dollars ($15,000).

 

“Monthly Debt Service Payment Amount”
shall mean, for the First Monthly Payment Date and for each Monthly Payment Date occurring thereafter, a constant monthly payment
of $147,805.67.

 

“Monthly Insurance Deposit”
shall have the meaning set forth in Section 8.6 hereof.

 

“Monthly Payment Date” shall
mean the First Monthly Payment Date and the sixth (6th) day of every calendar month occurring thereafter during the term of the
Loan.

 

“Monthly Tax Deposit” shall
have the meaning set forth in Section 8.6 hereof. “Moody’s” shall mean Moody’s Investor Service,
Inc.

 

“Net Proceeds”
shall mean: (i) the net amount of all insurance proceeds payable as a result of a Casualty to any Individual Property, after deduction
of reasonable costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such
insurance proceeds, or (ii) the net amount of the Award, after deduction of reasonable costs and expenses (including, but not limited
to, reasonable attorneys’ fees), if any, in collecting such Award.

 

“Net Proceeds Deficiency”
shall have the meaning set forth in Section 7.4 hereof.

 

“New Franchisor”
shall mean, individually and/or collectively (as the context requires), each Person engaged as a Franchisor subsequent to the Closing
Date (including, without limitation, any Person replacing or becoming the assignee of any then current Franchisor) in accordance
with the applicable terms and conditions hereof.

 

“New Manager”
shall mean any Person replacing or becoming the assignee of the then current Manager, in each case, in accordance with the applicable
terms and conditions hereof.

 

    	 	- 15 -	 

     

    

“New Non-Consolidation
Opinion” shall mean a substantive non-consolidation opinion provided by outside counsel reasonably acceptable to Lender
and the Rating Agencies and otherwise in form and substance reasonably acceptable to Lender and the Rating Agencies.

 

“Non-Conforming Policy” shall
have the meaning set forth in Section 7.1 hereof.

 

“Non-Consolidation
Opinion” shall mean that certain substantive non-consolidation opinion delivered to Lender by Eckert Seamans Cherin &
Mellott, LLC in connection with the closing of the Loan.

 

“Note”
shall mean that certain Promissory Note of even date herewith in the principal amount of $28,400,000, made by Borrower in favor
of Lender, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified
from time to time.

 

“Obligations” shall have
the meaning set forth in Section 17.19 hereof.

 

“OFAC” shall have the meaning
set forth in Section 3.30 hereof.

 

“Officer’s
Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by Responsible Officer of Borrower.

 

“Op Ex Monthly Deposit” shall
have the meaning set forth in Section 8.4 hereof.

 

“Operating Expense Account”
shall have the meaning set forth in Section 8.4 hereof.

 

“Operating Expense Funds”
shall have the meaning set forth in Section 8.4 hereof.

 

“Operating Expenses”
shall mean the total of all expenditures, computed in accordance with the Approved Accounting Method, of whatever kind relating
to the operation, occupancy, maintenance and management of the Property that are incurred on a regular monthly or other periodic
basis, including without limitation, (and without duplication) (a) utilities, ordinary repairs and maintenance, insurance, license
fees, property taxes and assessments, advertising expenses, payroll and related taxes, computer processing charges, management
fees (equal to the greater of (x) three percent (3%) of the sum of (A) Operating Income for the trailing twelve (12) month period
plus (B) Gross Rents or (y) actual management fees payable under the Management Agreement), franchise fees (i.e. as of the Closing
Date, the program fee and the royalty fee under each Franchise Agreement) (equal to: (I) with respect to the Seattle Property,
the greater of (x) 6% of the sum of (A) Operating Income for the trailing twelve (12) month period relating to the Seattle Property
plus (B) Gross Rents relating the Seattle Property or (y) actual franchise fees payable under the Franchise Agreement relating
to the Seattle Property and (II) with respect to the SLC Property, the greater of 8% of the sum of (A) Operating Income for the
trailing twelve (12) month period relating to the SLC Property plus (B) Gross Rents relating the SLC Property or (y) actual franchise
fees payable under the Franchise Agreement relating to the SLC Property), operational equipment or other lease payments as approved
by Lender (including, without limitation, under the Master Lease), but specifically excluding (i) depreciation, (ii) Debt Service,
(iii) non-recurring or extraordinary expenses, and (iv) deposits into the Reserve Funds; (b) normalized FF&E equal to (I) with
respect to the Seattle Property, the greater of: (x) 4% of annual gross revenue generated by the hotel related operations at the
Seattle Property and (y) the amount required by any Franchise Agreement or similar agreement in place at the Seattle Property and
(II) with respect to the SLC Property, the greater of: (x) 6.5% of annual gross revenue generated by the hotel related operations
at the SLC Property and (y) the amount required by any Franchise Agreement or similar agreement in place at the SLC Property.

 

    	 	- 16 -	 

     

    

“Operating Income”
shall mean all income, computed in accordance with the Approved Accounting Method, derived from the ownership and operation of
the Property from whatever source, including, without limitation (but without duplication) (a) all income and proceeds received
from rental of rooms, commercial space, meeting, conference and/or banquet space within the Property; (b) all income and proceeds
received from food and beverage operations and from catering services conducted from the Property; (c) all income and proceeds
from business interruption, rental interruption and use and occupancy insurance with respect to the operation of the Property (after
deducting therefrom all necessary costs and expenses incurred in the adjustment or collection thereof); (d) all Awards for temporary
use (after deducting therefrom all costs incurred in the adjustment or collection thereof and in Restoration of the Property);
(e) all refunds of any items included in “Operating Expenses”; (f) all income and proceeds from judgments, settlements
and other resolutions of disputes with respect to matters which would be includable in this definition of “Operating Income”
if received in the ordinary course of the Property operation (after deducting therefrom all necessary costs and expenses incurred
in the adjustment or collection thereof); and (g) all other incidental income in connection with the operation of the Property;
but excluding (1) rental income derived from Leases (other than percentage rents (if applicable) and rents paid under the Master
Lease) and gross receipts received by lessees, managers, licensees or concessionaires of the Property (including, without limitation,
any Manager); (2) consideration received at the Property for hotel accommodations, goods and services to be provided at other hotels,
although arranged by, for or on behalf of Borrower or Manager; (3) sales, occupancy, use or other taxes on receipts required to
be paid to any Governmental Authority; (4) interest income from any source other than the Reserve Accounts; (5) non-recurring or
extraordinary income (including, without limitation, lease termination payments) and proceeds from the sale or other disposition
of goods, capital assets and other items not in the ordinary course of the Property operation (such as the sales of furniture,
fixtures and equipment); (6) federal, state and municipal excise, sales and use taxes collected directly from patrons or guests
of the Property as a part of or based on the sales price of any goods, services or other items, such as gross receipts, room, admission,
cabaret or equivalent taxes; (7) Awards (except to the extent provided in clause (d) above) or insurance proceeds (except to the
extent provided in clause (c) above); (8) refunds of amounts not included in Operating Expenses at any time and uncollectible accounts;
(9) gratuities collected by the Property employees; (10) the proceeds of any financing; (11) other income or proceeds resulting
other than from the use or occupancy of the Property, or any part thereof, or other than from the sale of goods, services or other
items sold on or provided from the Property in the ordinary course of business; (12) uncollectable accounts and any credits or
refunds made to customers, guests or patrons in the form of allowances or adjustments to previously recorded revenues; (13) unforfeited
security deposits, utility and other similar deposits; and (14) any disbursements to Borrower from the Reserve Funds.. Operating
Income shall not be diminished as a result of the Security Instrument or the creation of any intervening estate or interest in
the Property or any part thereof. Notwithstanding the foregoing or anything to the contrary contained herein or in any other Loan
Document, “Gross Rents” and “Operating Income” shall be calculated hereunder without duplication of one
another or of any individual item contained within the definitions thereof.

 

    	 	- 17 -	 

     

    

“Other Charges”
shall mean all maintenance charges, impositions other than Taxes, and any other charges, vault charges and license fees for the
use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property
or any part thereof.

 

“Patriot Act” shall have
the meaning set forth in Section 3.30 hereof.

 

“Permits”
shall mean all certificates, licenses, permits, franchises, trade names, certificates of occupancy, consents, Intellectual
Property, and other approvals (governmental and otherwise) necessary for the operation of each Individual Property (including,
without limitation, the operation of all “amenities” in place as of the Closing Date and any additional future “amenities”
that are then in place) and the conduct of Borrower’s business (including, without limitation, all required zoning, building
code, land use, environmental, public assembly and other similar permits or approvals).

 

“Permitted Encumbrances”
shall mean, with respect to each Individual Property, collectively, (a) the lien and security interests created by this Agreement
and the other Loan Documents, (b) all liens, encumbrances and other matters disclosed in the applicable Title Insurance Policy,
(c) liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent and (d) such other title and survey
exceptions as Lender has approved or may approve in writing in Lender’s sole discretion.

 

“Permitted Equipment
Leases” shall mean equipment leases or other similar instruments entered into with respect to the Personal Property;
provided, that, in each case, such equipment leases or similar instruments (i) are entered into on commercially reasonable terms
and conditions in the ordinary course of Borrower’s business and (ii) relate to Personal Property which is (A) used in connection
with the operation and maintenance of the applicable Individual Property in the ordinary course of Borrower’s business and
(B) readily replaceable without material interference or interruption to the operation of the applicable Individual Property.

 

“Permitted Investments”
shall mean “permitted investments” as then defined and required by the Rating Agencies.

 

“Person”
shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any other entity and, in each
case, any fiduciary acting in such capacity on behalf of any of the foregoing.

 

“Personal Property”
shall mean, individually and/or collectively (as the context requires), the “Personal Property” as defined in each
applicable Security Instrument.

 

“PIP” shall mean any property
improvement plan or similar requirement under the Franchise Agreement.

 

    	 	- 18 -	 

     

    

“PIP Completion
Evidence” shall mean, with respect to any PIP, evidence reasonably acceptable to Lender that the related PIP Work has
been (x) completed in a good, workmanlike and lien free manner in accordance with this Agreement, the Franchise Agreement and applicable
Legal Requirements and (y) paid for in full, which such evidence shall include, without limitation, (a) written certification from
Borrower and the Franchisor confirming the foregoing, (b) at Lender’s discretion, an inspection of the Property by Lender
and/or its agents confirming the foregoing, (c) lien waivers and releases from all parties furnishing materials and/or services
in connection therewith and (d) a title search for the Property confirming that only Permitted Encumbrances exist and no liens,
lis pendens or similar matters have been filed in connection with the related PIP Work.

 

“PIP Deposit” shall have
the meaning set forth in Section 8.9 hereof.

 

“PIP Reserve Account” shall
have the meaning set forth in Section 8.9 hereof. “PIP Reserve Funds” shall have the meaning set forth in Section
8.9 hereof.

 

“PIP Reserve Minimum
Balance” shall mean, with respect to any PIP, an amount equal to 10% of the corresponding PIP Deposit.

 

“PIP Work”
shall mean, with respect to any PIP for which Borrower makes a PIP Deposit in accordance with the terms hereof, the work that is
the subject thereof.

 

“Policies” shall have the
meaning specified in Section 7.1 hereof.

 

“Prohibited Transfer” shall
have the meaning set forth in Section 6.2 hereof.

 

“Property”
and “Properties” shall mean, individually and/or collectively (as the context requires), each Individual Property
which is subject to the terms hereof and of the other Loan Documents.

 

“Property Document”
shall mean, individually or collectively (as the context may require), the following: (i) the Franchise Agreement and (ii) the
Master Lease.

 

“Property Document
Event” shall mean any event which would, directly or indirectly, cause a termination right, right of first refusal, first
offer or any other similar right, cause any termination fees to be due or would cause a Material Adverse Effect to occur under
any Property Document (in each case, beyond any applicable notice and cure periods under the applicable Property Document); provided,
however, any of the foregoing shall not be deemed a Property Document Event to the extent Lender’s prior written consent
is obtained with respect to the same.

 

“Property Document
Provisions” shall mean the representations, covenants and other terms and conditions of this Agreement and the other
Loan Documents related to, in each case, any Property Document.

 

    	 	- 19 -	 

     

    

 

 

 

“Provided Information”
shall mean any information provided by or on behalf of any Borrower Party in connection with the Loan, the Property, such Borrower
Party and/or any related matter or Person.

 

“Prudent Lender
Standard” shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization,
is reasonably acceptable to Lender and (ii) after a Securitization, (A) if permitted by REMIC Requirements applicable to such matter,
would be reasonably acceptable to Lender or (B) if the Lender discretion in the foregoing subsection (A) is not permitted under
such applicable REMIC Requirements, would be acceptable to a prudent lender of securitized commercial mortgage loans.

 

“Qualified Franchise
Agreement” shall mean a franchise, trademark and license agreement with respect to the Property with a Qualified Franchisor
containing all applicable Hotel Operating Agreements which is approved by Lender in writing (which such approval may be conditioned
upon Lender’s receipt of a Rating Agency Confirmation with respect to such agreement).

 

“Qualified Franchisor”
shall mean a reputable and experienced franchisor possessing experience in flagging hotel properties similar in size, scope, use
and value as the Property and approved by Lender in writing (which such approval may be granted or withheld in Lender’s reasonable
discretion and may be conditioned upon Lender’s receipt of a Rating Agency Confirmation with respect to such Person).

 

“Qualified Insurer”
shall have the meaning set forth in Section 7.1 hereof.

 

“Qualified Management
Agreement” shall mean a management agreement with a Qualified Manager with respect to the applicable Individual Property
which is approved by Lender in writing (which such approval may be conditioned upon Lender's receipt of a Rating Agency Confirmation
with respect to such management agreement).

 

“Qualified Manager”
shall mean a Person approved by Lender in writing (which such approval may be conditioned upon Lender's receipt of a Rating Agency
Confirmation with respect to such Person).

 

“Rating Agencies”
shall mean each of S&P, Moody’s, Fitch and any other nationally- recognized statistical rating agency designated by Lender
(and any successor to any of the foregoing) in connection with and/or in anticipation of any Secondary Market Transaction.

 

“Rating Agency
Condition” shall be deemed to exist if (i) any Rating Agency fails to respond to any request for a Rating Agency Confirmation
with respect to any applicable matter or otherwise elects (orally or in writing) not to consider any applicable matter or (ii)
Lender (or its Servicer) is not required to and/or elects not to obtain (or cause to be obtained) a Rating Agency Confirmation
with respect to any applicable matter, in each case, pursuant to and in compliance with any pooling and servicing agreement(s)
or similar agreement(s), in each case, relating to the servicing and/or administration of the Loan.

 

    	 	- 20 -	 

     

    

 

“Rating Agency
Confirmation” shall mean (i) prior to a Securitization or if the Rating Agency Condition exists, that Lender has (in
consultation with the Rating Agencies (if required by Lender)) approved the matter in question in writing based upon Lender’s
good faith determination of applicable Rating Agency standards and criteria and (ii) from and after a Securitization (to the extent
the Rating Agency Condition does not exist), a written affirmation from each of the Rating Agencies (obtained at Borrower’s
sole cost and expense) that the credit rating of the Securities by such Rating Agency immediately prior to the occurrence of the
event with respect to which such Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result
of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion.

 

“Registrar”
shall have the meaning set forth in Section 11.7 hereof.

 

“Regulation AB”
shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time to time.

 

“Reimbursement
Contribution” shall have the meaning set forth in Section 17.19 hereof.

 

“Release Date”
shall mean the earlier to occur of (i) the fourth anniversary of the Closing Date and (ii) the date that is two (2) years from
the “startup day” (within the meaning of Section 860G(a)(9) of the IRS Code) of the REMIC Trust established in connection
with the last Securitization involving any portion of or interest in the Loan.

 

“Remaining Loan” shall have
the meaning set forth in Section 11.8 hereof.

 

“Remaining Loan Documents” shall
have the meaning set forth in Section 11.8 hereof.

 

“REMIC Opinion”
shall mean, as to any matter, an opinion as to the compliance of such matter with applicable REMIC Requirements (which such opinion
shall be, in form and substance and from a provider, in each case, reasonably acceptable to Lender and acceptable to the Rating
Agencies).

 

“REMIC Payment”
shall have the meaning set forth in Section 7.3 hereof.

 

“REMIC Requirements”
shall mean any applicable legal requirements relating to any REMIC Trust (including, without limitation, those relating to
the continued treatment of the Loan (or the applicable portion thereof and/or interest therein) as a “qualified mortgage”
held by such REMIC Trust, the continued qualification of such REMIC Trust as such under the IRS Code, the non-imposition of any
tax on such REMIC Trust under the IRS Code (including, without limitation, taxes on “prohibited transactions and “contributions”)
and any other constraints, rules and/or other regulations and/or requirements relating to the servicing, modification and/or other
similar matters with respect to the Loan (or any portion thereof and/or interest therein) that may now or hereafter exist under
applicable legal requirements (including, without limitation under the IRS Code)).

 

“REMIC Trust”
shall mean any “real estate mortgage investment conduit” within the meaning of Section 860D of the IRS Code that holds
any interest in all or any portion of the Loan.

 

    	 	- 21 -	 

     

    

 

“Rent Loss Proceeds”
shall have the meaning set forth in Section 7.1 hereof.

 

“Rents” shall have the meaning set forth in the Security
Instrument.

 

“Reporting Failure”
shall have the meaning set forth in Section 4.12 hereof.

 

“Required Financial
Item” shall have the meaning set forth in Section 4.12 hereof.

 

“Reserve Accounts”
shall mean the Tax Account, the Insurance Account, the FF&E Reserve Account, the PIP Reserve Account, the Immediate Repair
Account, the Excess Cash Flow Account, the Operating Expense Account and any other escrow account established by this Agreement
or the other Loan Documents (but specifically excluding the Cash Management Account, the Restricted Account and the Debt Service
Account).

 

“Reserve Funds”
shall mean the Tax and Insurance Funds, the FF&E Reserve Funds, the PIP Reserve Funds, the Immediate Repair Funds, the Excess
Cash Flow Funds, the Operating Expense Funds and any other escrow funds established by this Agreement or the other Loan Documents.

 

“Responsible Officer”
means with respect to a Person, the chairman of the board, president, chief operating officer, chief financial officer, treasurer
or vice president of such Person or such other similar officer of such Person reasonably acceptable to Lender.

 

“Restoration”
shall mean, following the occurrence of a Casualty or a Condemnation which is of a type necessitating the repair of the Property
(or any portion thereof), the completion of the repair and restoration of the Property (or applicable portion thereof) as nearly
as possible to the condition the Property (or applicable portion thereof) was in immediately prior to such Casualty or Condemnation,
with such alterations as may be reasonably approved by Lender.

 

“Restoration Retainage”
shall have the meaning set forth in Section 7.4 hereof.

 

“Restoration
Threshold” shall mean, with respect to each Individual Property, an amount equal to 5% of the outstanding principal
amount of the Allocated Loan Amount attributable to such Individual Property.

 

“Restricted Account”
shall have the meaning set forth in Section 9.1 hereof.

 

“Restricted Account
Agreement” shall mean, individually and/or collectively, as the context shall require, those two (2) certain Deposit
Account Control Agreements (one (1) for each Individual Property) by and among the applicable Borrowers, Lender and Wells Fargo
Bank, National Association, dated as of the date hereof, as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

 

“Restricted Party”
shall have the meaning set forth in Section 6.1 hereof.

 

“Sale or Pledge”
shall have the meaning set forth in Section 6.1 hereof.

 

    	 	- 22 -	 

     

    

 

“Sanctions” shall have the
meaning set forth in Section 3.30 hereof.

 

“Scheduled Defeasance
Payments” shall mean scheduled payments of interest and principal hereunder for all Monthly Payment Dates occurring after
the Total Defeasance Date and up to and including the Stated Maturity Date (including the outstanding principal balance and accrued
interest on the Loan as of the Stated Maturity Date) and all payments required after the Total Defeasance Date, if any, under the
Loan Documents for servicing fees, rating surveillance charges (to the extent applicable) and other similar charges.

 

“Scheduled PIP”
shall mean the work described on each PIP attached hereto as Schedule II.

 

“Seattle Property”
shall mean the Individual Property owned as of the date hereof by Seattle Fee Owner.

 

“Secondary Market
Transaction” shall have the meaning set forth in Section 11.1 hereof.

 

“Securities”
shall have the meaning set forth in Section 11.1 hereof. 

 

“Securities Act” shall mean the Securities Act of 1933,
as amended.

 

“Securitization” shall have the meaning set forth in Section 11.1 hereof.

 

“Security Agreement”
shall mean a pledge and security agreement in form and substance satisfying the Prudent Lender Standard pursuant to which Borrower
grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral.

 

“Security Deposits”
shall mean any advance deposits or any other deposits collected with respect to the Property, whether in the form of cash, letter(s)
of credit or other cash equivalents (including, without limitation, such deposits made in connection with any Lease).

 

“Security Instrument”
and “Security Instruments” shall mean individually and/or collectively (as the context requires), each Fee and
Leasehold Deed of Trust and Security Agreement dated the date hereof, executed and delivered by each applicable Borrower as security
for the Loan and encumbering the Property (or any portion thereof), as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.

 

“Security Instrument
Taxes” shall have the meaning set forth in Section 15.2 hereof.

 

“Servicer”
shall have the meaning set forth in Section 11.4 hereof.

 

“Severed Loan
Documents” shall have the meaning set forth in Article 10.

 

“Single Purpose
Entity” shall mean an entity whose structure and organizational and governing documents are otherwise in form and substance
acceptable to the Rating Agencies and satisfying the Prudent Lender Standard.

 

    	 	- 23 -	 

     

    

 

“SLC Property”
shall mean the Individual Property owned as of the date hereof by SLC Fee Owner.

 

“Special Member”
is defined in Section 5.1 hereof.

 

“SPE Component
Entity” shall have the meaning set forth in Section 5.1 hereof.

 

“Sponsor”
shall mean Lightstone Value Plus REIT III LP, a Delaware limited partnership.

 

“S&P”
shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

“State”
shall mean the applicable state in which the applicable Individual Property is located.

 

“Stated Maturity
Date” shall mean October 6, 2021.

 

“Sufficient Revenue”
shall mean, with respect to any applicable item, revenue generated by the Property in the twelve (12) month period immediately
preceding the applicable date of determination in an amount sufficient to pay for the same.

 

“Successor Borrower”
shall have the meaning set forth in Section 2.8 hereof.

 

“Survey”
shall mean, individually or collectively (as the context requires), each survey of each Individual Property certified and delivered
to Lender in connection with the closing of the Loan.

 

“Tax Account”
shall have the meaning set forth in Section 8.6 hereof.

 

“Tax and Insurance
Funds” shall have the meaning set forth in Section 8.6 hereof.

 

“Taxes”
shall mean all taxes, assessments, water rates, sewer rents, and other governmental impositions, including, without
limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Land, now or
hereafter levied or assessed or imposed against the Property or any part thereof.

 

“Tax Payment Date”
shall mean, with respect to any applicable Taxes, the date occurring 30 days prior to the date the same are due and payable.

 

“Tenant”
shall mean any Person leasing, subleasing or otherwise occupying any portion of the Property under a Lease or other occupancy agreement.

 

“Third Party Reports”
shall mean those certain third party reports relating to the physical condition of the Property delivered and certified to
Lender, in each case, in connection with the closing of the Loan.

 

    	 	- 24 -	 

     

    

 

“Title Insurance
Policy” shall mean those certain ALTA mortgagee title insurance policies issued with respect to each Individual Property
and insuring the lien of the Security Instruments.

 

“To Borrower’s
knowledge”, “to the best of Borrower’s knowledge” or words of similar import shall mean the actual
knowledge of those natural Persons directly or indirectly Controlling Borrower, controlling the day of day operation of the Property
(including, without limitation, any Affiliated Manager) or principally employed by Borrower or Affiliated Manager to manage or
operate Borrower or the Property.

 

“Total Defeasance
Collateral” shall mean Government Securities, which provide payments (i) on or prior to, but as close as possible to,
the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, hereunder after the
Total Defeasance Date and up to and including the Stated Maturity Date, and (ii) in amounts equal to or greater than the Scheduled
Defeasance Payments relating to such Monthly Payment Dates and other scheduled payment dates.

 

“Total Defeasance
Date” shall have the meaning set forth in Section 2.8 hereof.

 

“Total Defeasance
Event” shall have the meaning set forth in Section 2.8 hereof.

 

“Trigger Period” shall mean a
period (A) commencing upon the earliest of (i) the occurrence and continuance of an Event of Default, (ii) the Debt Service
Coverage Ratio being less than 1.25 to 1.00, (iii) the occurrence of a Franchise Agreement Trigger Period, (iv) the
occurrence of a Franchise Renewal Trigger Event and (v) if Manager shall be involved in any bankruptcy or insolvency
proceeding which would violate Section 10.1(f) hereof (assuming for the purposes of this clause (v) only that the provisions
of Section 10.1(f) applied to Manager in the same manner that they apply to Borrower); and (B) expiring upon (v) with regard
to any Trigger Period commenced in connection with clause (i) above, the cure (if applicable) of such Event of Default, (w)
with regard to any Trigger Period commenced in connection with clause (ii) above, the date that the Debt Service Coverage
Ratio is equal to or greater than 1.30 to 1.00 for two (2) consecutive calendar quarters, (x) with regard to any Trigger
Period commenced in connection with clause (iii) above, a Franchise Agreement Trigger Period ceasing to exist in accordance
with the terms hereof, (y) with regard to any Trigger Period commenced in connection with clause (iv) above, the occurrence
of a Franchise Renewal Event and (z) with regard to any Trigger Period commenced in connection with clause (v) above,
Borrower’s replacement of the applicable Manager in accordance with the terms hereof with a New
Manager. Notwithstanding the foregoing, a Trigger Period shall not be deemed to expire in the event that a Trigger Period
then exists for any other reason.

 

“True Up Payment”
shall mean a payment into the applicable Reserve Account of a sum which, together with any applicable monthly deposits into
the applicable Reserve Account, will be sufficient to discharge the obligations and liabilities for which such Reserve Account
was established as and when reasonably appropriate. The amount of the True Up Payment shall be determined by Lender in its reasonable
discretion and shall be final and binding absent manifest error.

 

    	 	- 25 -	 

     

    

 

“UCC”
or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.

 

“Unaffected Property”
shall have the meaning set forth in Section 11.8 hereof.

 

“Uncrossed Loan”
shall have the meaning set forth in Section 11.8 hereof.

 

“Uncrossed Loan
Documents” shall have the meaning set forth in Section 11.8 hereof.

 

“Uncrossing Event”
shall have the meaning set forth in Section 11.8 hereof.

 

“Underwritable Cash Flow” shall
mean an amount calculated by Lender on a monthly basis equal to the sum of Gross Rents plus the trailing twelve (12) months
Operating Income, less the trailing twelve (12) months Operating Expenses, each of which shall be subject to Lender’s
application of the Cash Flow Adjustments. Lender’s calculation of Underwritable Cash Flow (including determination of
items that do not qualify as Operating Income or Operating Expenses) shall be reasonably calculated by Lender in good faith
based upon Lender’s reasonable determination of Rating Agency criteria.

 

“Underwriter Group”
shall have the meaning set forth in Section 11.2 hereof.

 

“Updated Information”
shall have the meaning set forth in Section 11.1 hereof.

 

“U.S. Obligations”
shall mean direct full faith and credit obligations of the United States of America that are not subject to prepayment, call or
early redemption.

 

“Uniform System of Accounts” shall
mean the most recent edition of the Uniform System of Accounts for Hotels, as adopted by the American Hotel and Motel Association.

 

“Vcorp” shall mean Vcorp Entity Services,
LLC.

 

“Work Charge”
shall have the meaning set forth in Section 4.16 hereof.

 

“Yield Maintenance
Premium” shall mean an amount equal to the greater of (a) an amount equal to 1% of the amount prepaid; or (b) an amount
equal to the present value as of the date on which the prepayment is made of the Calculated Payments (as defined below) from the
date on which the prepayment is made through the Stated Maturity Date determined by discounting such payments at the Discount Rate
(as defined below). As used in this definition, the term “Calculated Payments” shall mean the monthly payments
of interest only which would be due based on the principal amount of the Loan being prepaid on the date on which prepayment is
made and assuming an interest rate per annum equal to the difference (if such difference is greater than zero) between (y) the
Interest Rate and (z) the Yield Maintenance Treasury Rate (as defined below). As used in this definition, the term “Discount
Rate” shall mean the rate which, when compounded monthly, is equivalent to the Yield Maintenance Treasury Rate (as defined
below), when compounded semi-annually. As used in this definition, the term “Yield Maintenance Treasury Rate”
shall mean the yield calculated by Lender by the linear interpolation of the yields, as reported in the Federal Reserve Statistical
Release H.15- Selected Interest Rates under the heading “U.S. Government Securities/Treasury Constant Maturities”
for the week ending prior to the date on which prepayment is made, of U.S. Treasury Constant Maturities with maturity dates (one
longer or one shorter) most nearly approximating the Stated Maturity Date. In the event Release H.15 is no longer published, Lender
shall select a comparable publication to determine the Yield Maintenance Treasury Rate. In no event, however, shall Lender be required
to reinvest any prepayment proceeds in U.S. Treasury obligations or otherwise. Lender shall notify Borrower of the amount and the
basis of determination of the required prepayment consideration. Lender’s calculation of the Yield Maintenance Premium shall
be conclusive absent manifest error.

 

    	 	- 26 -	 

     

    

 

Section 1.2.    Principles
of Construction. All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise
specified. All uses of the word “including” shall mean “including, without limitation” unless the context
shall indicate otherwise. Unless otherwise specified, the words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both
the singular and plural forms of the terms so defined. References herein to “the Property or any portion thereof” and
words of similar import shall be deemed to refer, as applicable, to any portion of the Property taken as a whole (including any
Individual Property) and any portion of any Individual Property.

 

ARTICLE 2

 

GENERAL TERMS

 

Section 2.1.     Loan Commitment;
Disbursement to Borrower. Except as expressly and specifically set forth herein, Lender has no obligation or other commitment
to loan any funds to Borrower or otherwise make disbursements to Borrower. Borrower hereby waives any right Borrower may have to
make any claim to the contrary.

 

Section 2.2.     The Loan.
Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept
the Loan on the Closing Date.

 

Section 2.3.     Disbursement
to Borrower. Borrower may request and receive only one borrowing hereunder in respect of the Loan and any amount borrowed and
repaid hereunder in respect of the Loan may not be re-borrowed.

 

Section 2.4.     The Note
and the other Loan Documents. The Loan shall be evidenced by the Note and this Agreement and secured by this Agreement and
the other Loan Documents.

 

Section 2.5.      Interest
Rate.

 

(a)          Interest
on the outstanding principal balance of the Loan shall accrue from the Closing Date at the Interest Rate until repaid in accordance
with the applicable terms and conditions hereof.

 

(b)          Intentionally
Omitted.

 

    	 	- 27 -	 

     

    

 

(c)        In
the event that, and for so long as, any Event of Default shall have occurred and be continuing, (i) the then outstanding principal
balance of the Loan shall accrue interest at the Default Rate, calculated from the date the applicable Event of Default occurred,
(ii) without limitation of any rights or remedies contained herein and/or in any other Loan Document, any interest accrued at the
Default Rate in excess of the interest component of the Monthly Debt Service Payment Amount shall, to the extent not already paid
and/or due and payable hereunder, be due and payable on each Monthly Payment Date and (iii) all references herein and/or in any
other Loan Document to the “Interest Rate” shall be deemed to refer to the Default Rate.

 

(d)        Interest
on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the
period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the
Interest Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal
balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest Accrual Period immediately
prior to such Monthly Payment Date. Borrower understands and acknowledges that such interest accrual requirement results in more
interest accruing on the Loan than if either a thirty (30) day month and a three hundred sixty (360) day year or the actual number
of days and a three hundred sixty-five (365) day year were used to compute the accrual of interest on the Loan.

 

(e)        This
Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be required to pay interest
on the principal balance of the Loan (including, to the extent applicable, any prepayment premium and/or penalty) at a rate which
could subject Lender to either civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If by the
terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal
balance due hereunder (including, to the extent applicable, any prepayment premium and/or penalty) at a rate in excess of the Maximum
Legal Rate, the Interest Rate or the Default Rate, as the case may be, and/or, to the extent applicable, any prepayment premium
and/or penalty shall, in each case, be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in
excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not on account of the interest
due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan,
shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term
of the Loan until payment in full so that the rate or amount of interest on account of the Loan (including, to the extent applicable,
any prepayment premium and/or penalty) does not exceed the Maximum Legal Rate from time to time in effect and applicable to the
Loan for so long as the Loan is outstanding.

 

Section 2.6.      Loan
Payments.

 

(a)        Borrower
shall make a payment to Lender of interest only on the Closing Date for the period from (and including) the Closing Date through
(but excluding) the sixth (6th) day of either (i) the month in which the Closing Date occurs (if such Closing Date is after the
first day of such month, but prior to the sixth (6th) day of such month) or (ii) if the Closing Date is after the sixth (6th) day
of the then current calendar month, the month following the month in which the Closing Date occurs; provided, however, if the Closing
Date is the sixth (6th) day of a calendar month, no such separate payment of interest shall be due. Borrower shall make a payment
to Lender of interest and, to the extent applicable, principal in the amount of the Monthly Debt Service Payment Amount on the
First Monthly Payment Date and on each Monthly Payment Date occurring thereafter to and including the Maturity Date. Each payment
shall be applied first to accrued and unpaid interest and the balance to principal. The non- interest only portion of Monthly Debt
Service Payment Amount required hereunder is based upon a thirty (30) year amortization schedule.

 

    	 	- 28 -	 

     

    

 

(b)        Intentionally
Omitted.

 

(c)        Borrower
shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all
other amounts due hereunder and under the Note, the Security Instrument and the other Loan Documents.

 

(d)        If
any principal, interest or any other sum due under the Loan Documents, other than the payment of principal due on the Maturity
Date, is not paid by Borrower within two (2) days of the date on which it is due, Borrower shall pay to Lender upon demand an amount
equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray
the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the
use of such delinquent payment. Any such amount shall be secured by the Security Instrument and the other Loan Documents.

 

(e)

 

(i)         Except
as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender
not later than 1:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States of America
in immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes
hereof, be deemed to have been paid on the next succeeding Business Day.

 

(ii)        Whenever
any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day,
the due date thereof shall be deemed to be the immediately succeeding Business Day.

 

(iii)        All
payments required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of,
and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.

 

    	 	- 29 -	 

     

    

 

Section 2.7.     Prepayments.

 

(a)        Except
as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part. On or after the Monthly
Payment Date occurring two (2) months prior to the Stated Maturity Date (such period, the “Open Prepayment Period”),
Borrower may, provided no Event of Default has occurred and is continuing, at its option and upon thirty (30) days prior notice
to Lender (or such shorter period of time as may be permitted by Lender in its sole discretion),
prepay the Debt on any date without payment of any prepayment premium or penalty (including, without limitation, any Default Yield
Maintenance Premium). Such prepayment of the Debt shall be made in whole (and not in part). Any prepayment received by Lender on
a date other than a Monthly Payment Date shall include interest which would have accrued thereon to the next Monthly Payment Date
(such amounts, the “Interest Shortfall”) and such amounts (i.e., principal and interest prepaid by Borrower)
shall be held by Lender as collateral security for the Loan in an interest bearing Eligible Account at an Eligible Institution,
with interest accruing on such amounts to the benefit of Borrower; such amounts prepaid shall be applied to the Loan on the next
Monthly Payment Date, with any interest on such funds paid to Borrower on such date provided no Event of Default then exists.

 

(b)        On
each date on which Lender actually receives a distribution of Net Proceeds, and if Lender does not make such Net Proceeds available
for Restoration or for disbursement as Rent Loss Proceeds (as applicable), in each case, in accordance with the applicable terms
and conditions hereof, Borrower shall, at Lender’s option, prepay the Debt in an amount equal to one hundred percent (100%)
of such Net Proceeds together with any applicable Interest Shortfall. Borrower shall make the REMIC Payment as and to the extent
required hereunder. No prepayment premium or penalty (including, without limitation, any Default Yield Maintenance Premium) shall
be due in connection with any prepayment made pursuant to this Section 2.7(b) (including, without limitation, in connection with
any REMIC Payment). Any prepayment received by Lender pursuant to this Section 2.7(b) on a date other than a Monthly Payment Date
shall be held by Lender as collateral security for the Loan in an interest bearing, Eligible Account at an Eligible Institution,
with such interest accruing to the benefit of Borrower, and shall be applied by Lender on the next Monthly Payment Date, with any
interest on such funds paid to Borrower on such date provided no Event of Default then exists.

 

(c)      After
the occurrence and during the continuance of an Event of Default and notwithstanding any acceleration of the Debt in accordance
with the applicable terms and conditions hereof, the Default Yield Maintenance Premium shall, in all cases, be deemed a portion
of the Debt due and owing hereunder and under the other Loan Documents. Without limitation of the foregoing, if, after the occurrence
and during the continuance of an Event of Default, (i) payment of all or any part of the Debt is tendered by Borrower (voluntarily
or involuntarily), a purchaser at foreclosure or any other Person, (ii) Lender obtains a recovery of all or a portion of the Debt
(through an exercise of remedies hereunder or under the other Loan Documents or otherwise) or (iii) the Debt is deemed satisfied
(in whole or in part) through an exercise of remedies hereunder or under the other Loan Documents or at law, the Default Yield
Maintenance Premium, in addition to the outstanding principal balance, all accrued and unpaid interest and other amounts payable
under the Loan Documents, shall be deemed due and payable hereunder. Notwithstanding anything to the contrary contained herein
or in any other Loan Document, (i) any prepayment of the Debt shall be applied to the Debt in such order and priority as may be
determined by Lender in its sole discretion and (ii) the word “prepayment” when used herein and in the other Loan Documents
shall also be deemed to mean repayment and payment.

 

    	 	- 30 -	 

     

    

 

Section 2.8.      Defeasance.

 

(a)        Total
Defeasance.

 

(i)           Provided
no Event of Default shall have occurred and be continuing, Borrower shall have the right at any time after the Release Date and
prior to the Maturity Date to voluntarily defease the entire Loan and obtain a release of the lien of the Security Instrument by
providing Lender with the Total Defeasance Collateral (hereinafter, a “Total Defeasance Event”), subject to
the satisfaction of the following conditions precedent:

 

		(A)	Borrower shall provide Lender not less than thirty (30)
days notice (or such shorter period of time if permitted by Lender in its sole discretion) but not more than one hundred twenty
(120) days notice specifying a date (the “Total Defeasance Date”) on which the Total Defeasance Event is to
occur;

 

		(B)	Unless otherwise agreed to in writing by Lender, Borrower
shall pay to Lender (1) all payments of principal and interest due and payable on the Loan to and including the Total Defeasance
Date (provided, that, if such Total Defeasance Date is not a Monthly Payment Date, Borrower shall also pay to Lender all payments
of principal and interest due on the Loan to and including the next occurring Monthly Payment Date); (2) all other sums, if any,
due and payable under the Note, this Agreement, the Security Instrument and the other Loan Documents through and including the
Total Defeasance Date (or, if the Total Defeasance Date is not a Monthly Payment Date, the next occurring Monthly Payment Date);
(3) all escrow, closing, recording, legal, Rating Agency and other fees, costs and expenses paid or incurred by Lender or its
agents in connection with the Total Defeasance Event, the release of the lien of Security Instrument on the Property, the review
of the proposed Defeasance Collateral and the preparation of the Security Agreement, the Defeasance Collateral Account Agreement
and related documentation; and (4) any revenue, documentary stamp, intangible or other taxes, charges or fees due in connection
with the transfer or assumption of the Note or the Total Defeasance Event;

 

		(C)	Borrower shall deposit the Total Defeasance Collateral
into the Defeasance Collateral Account and otherwise comply with the provisions of Section 2.8(c)hereof;

 

		(D)	Borrower shall execute and deliver to Lender a Security
Agreement in respect of the Defeasance Collateral Account and the Total Defeasance Collateral;

 

		(E)	Borrower shall deliver to Lender (1) an opinion of counsel
for Borrower that is standard in commercial lending transactions and subject only to customary qualifications, assumptions and
exceptions opining, among other things, that (I) Lender has a legal and valid perfected first priority security interest in the
Defeasance Collateral Account and the Total Defeasance Collateral; (II) the Total Defeasance Event will not result in a deemed
exchange for purposes of the IRS Code and will not adversely affect the status of the Note as indebtedness for federal income
tax purposes; and (III) delivery of the Total Defeasance Collateral and the grant of a security interest therein to Lender shall
not constitute an avoidable preference under Section 547 of the Bankruptcy Code or applicable state law; (2) a REMIC Opinion with
respect to the Total Defeasance Event; and (3) if requested by Lender, a New Non- Consolidation Opinion with respect to Successor
Borrower;

 

    	 	- 31 -	 

     

    

 

		(F)	Borrower shall deliver to Lender a Rating Agency Confirmation
as to the Total Defeasance Event;

 

		(G)	Borrower shall deliver an Officer’s Certificate
certifying that the requirements set forth in this Section 2.8 have been satisfied;

 

		(H)	Borrower shall deliver a certificate of a nationally
recognized public accounting firm acceptable to Lender certifying that the Total Defeasance Collateral will generate monthly amounts
equal to or greater than the Scheduled Defeasance Payments; and

 

		(I)	Borrower shall deliver such other certificates, opinions,
documents and instruments as Lender may reasonably request.

 

(ii)          If
Borrower has elected to defease the entire Loan and the requirements of this Section 2.8 have been satisfied or waived by Lender
in writing, the Property shall be released from the lien of the Security Instrument and the Total Defeasance Collateral pledged
pursuant to the Security Agreement shall be the sole source of collateral securing the Loan. In connection with the release of
the lien, Borrower shall submit to Lender, not less than ten (10) days prior to the Total Defeasance Date (or such shorter time
as is acceptable to Lender in its sole discretion), a release of lien (and related Loan Documents) for execution by Lender. Such
release shall be in a form appropriate in each jurisdiction in which each Individual Property is located and that contains standard
provisions protecting the rights of the releasing lender. In addition, Borrower shall provide all other documentation Lender reasonably
requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying
that such documentation (1) is in compliance with all Legal Requirements, and (2) will effect such release in accordance with
the terms of this Agreement. Except as set forth in this Article 2, no repayment, prepayment or defeasance of all or any portion
of the Loan shall cause, give rise to a right to require, or otherwise result in, the release of the lien of the Security Instrument.

 

(b)        Notwithstanding
anything contained herein or in any other Loan Document to the contrary, no partial defeasance of the Loan shall be permitted.

 

    	 	- 32 -	 

     

    

 

(c)        On
or before the date on which Borrower delivers the Total Defeasance Collateral, Borrower shall open at any Eligible Institution
an Eligible Account (the “Defeasance Collateral Account”). The Defeasance Collateral Account shall contain only
(i) Total Defeasance Collateral and (ii) cash from interest and principal paid on the Total Defeasance Collateral.    All
cash from interest and principal payments paid on the Total Defeasance Collateral shall be paid over to Lender on each Monthly
Payment Date and applied first to accrued and unpaid interest and then to principal. Any cash from interest and principal paid
on the Total Defeasance Collateral not needed to pay the Scheduled Defeasance Payments shall be (i) paid to Borrower or Successor
Borrower (as applicable) and/or (ii) to the extent permitted by applicable REMIC Requirements, retained in the Defeasance Collateral
Account. Borrower shall cause the Eligible Institution at which the Total Defeasance Collateral is deposited to enter an agreement
with Borrower and Lender, satisfactory to Lender in its reasonable discretion, pursuant to which such Eligible Institution shall
agree to hold and distribute the Total Defeasance Collateral in accordance with this Agreement (such agreement, the “Defeasance
Collateral Account Agreement”). Borrower or Successor Borrower (as applicable) shall be the owner of the Defeasance Collateral
Account and shall report all income accrued on Total Defeasance Collateral for federal, state and local income tax purposes in
its income tax return (to the extent required by applicable law). Borrower shall prepay all cost and expenses associated with opening
and maintaining the Defeasance Collateral Account. Lender shall not in any way be liable by reason of any insufficiency in the
Defeasance Collateral Account.

 

(d)        In
connection with a Total Defeasance Event under this Section 2.8, a successor entity (the “Successor Borrower”)
shall be established, which such Successor Borrower shall be (i) a Single Purpose Entity and (ii) established and/or designated
by Borrower. The right of Lender hereunder to designate and/or establish Successor Borrower may, at the option and in the sole
discretion of the initial named Lender hereunder, be retained by the initial named Lender hereunder notwithstanding any Secondary
Market Transaction. Borrower shall transfer and assign all obligations, rights and duties under and to the Note, Security Agreement
and Defeasance Collateral Account Agreement, together with the Total Defeasance Collateral to such Successor Borrower. Such Successor
Borrower shall assume the obligations under the Note, the Defeasance Collateral Account Agreement and the Security Agreement in
a manner acceptable to Lender and the Rating Agencies and Borrower shall be relieved of its obligations under the Loan Documents
relating to the Note (other than those obligations which by their terms survive a repayment, defeasance or other satisfaction of
the Loan and/or a transfer of the Property in connection with Lender’s exercise of its remedies under the Loan Documents).
Borrower shall pay all costs and expenses reasonably incurred by Lender and Successor Borrower, including attorney’s fees
and expenses, incurred in connection with the foregoing.

 

(e)        Notwithstanding
anything to the contrary contained in this Section 2.8, the parties hereto hereby acknowledge and agree that after the Securitization
of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over
any matters contained in this Section 2.8 (any such matter, an “Defeasance Approval Item”), such rights shall
be construed such that Lender shall only be permitted to withhold its consent or approval with respect to any Defeasance Approval
Item if the same fails to meet the Prudent Lender Standard.

 

Section 2.9.     Intentionally
Omitted.

 

    	 	- 33 -	 

     

    

 

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES

 

Borrower represents and
warrants as of the Closing Date that:

 

Section 3.1.      Legal
Status and Authority.    Each Borrower (a) is duly organized, validly existing and in good standing under
the laws of its state of formation; (b) is duly qualified to transact business and is in good standing in the State; and (c) has
all necessary approvals, governmental and otherwise, and full power and authority to own, operate and lease the applicable Individual
Property. Each Borrower has full power, authority and legal right to mortgage, grant, bargain, sell, pledge, assign, warrant, transfer
and convey the applicable Individual Property pursuant to the terms hereof and to keep and observe all of the terms of this Agreement,
the Note, the Security Instrument and the other Loan Documents on Borrower’s part to be performed.

 

Section 3.2.      Validity
of Documents. (a) The execution, delivery and performance of this Agreement, the Note, the Security Instrument and the other
Loan Documents by Borrower and Guarantor and the borrowing evidenced by the Note and this Agreement (i) are within the power and
authority of such parties; (ii) have been authorized by all requisite organizational action of such parties; (iii) have received
all necessary approvals and consents, corporate, governmental or otherwise; (iv) will not violate, conflict with, result in a breach
of or constitute (with notice or lapse of time, or both) a material default under any provision of law, any order or judgment of
any court or Governmental Authority, any license, certificate or other approval required to operate the Property or any portion
thereof, any applicable organizational documents, or any applicable indenture, agreement or other instrument, including, without
limitation, the Management Agreement; (v) will not result in the creation or imposition of any lien, charge or encumbrance whatsoever
upon any of its assets, except the lien and security interest created hereby and by the other Loan Documents; and (vi) will not
require any authorization or license from, or any filing with, any Governmental Authority (except for the recordation of each Security
Instrument in appropriate land records in each applicable State and except for Uniform Commercial Code filings relating to the
security interest created hereby), (b) this Agreement, the Note, the Security Instrument and the other Loan Documents have been
duly executed and delivered by Borrower and Guarantor (to the extent a party thereto) and (c) this Agreement, the Note, the Security
Instrument and the other Loan Documents constitute the legal, valid and binding obligations of Borrower and Guarantor (to the extent
a party thereto). The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower or
Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of
any right thereunder, render the Loan Documents unenforceable (except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar Creditors Rights Laws, and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law)). Neither Borrower nor Guarantor has asserted any right of rescission,
set-off, counterclaim or defense with respect to the Loan Documents.

 

    	 	- 34 -	 

     

    

 

 

Section 3.3.     Litigation.
Except as expressly and specifically noted in the Third Party Reports, there is no action, suit, proceeding or governmental investigation,
in each case, judicial, administrative or otherwise (including any condemnation or similar proceeding), pending or, to Borrower’s
knowledge, threatened or contemplated against Borrower, Sponsor or Guarantor or against or affecting the Property other than those
that either (i) have been disclosed to Lender by Borrower in writing in connection with the closing of the Loan or (ii) are fully
covered by insurance and would not otherwise have a Material Adverse Effect.

 

Section 3.4.     Agreements.
Borrower is not a party to any agreement or instrument or subject to any restriction which is reasonably likely to have a Material
Adverse Effect. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or the
Property (or any portion thereof) is bound. Borrower has no material financial obligation under any agreement or instrument to
which Borrower is a party or by which Borrower or the Property (or any portion thereof) is otherwise bound, other than (a) obligations
incurred in the ordinary course of the operation of the Property and (b) obligations under this Agreement, the Security Instrument,
the Note and the other Loan Documents. There is no agreement or instrument to which Borrower is a party or by which Borrower is
bound that would require the subordination in right of payment of any of Borrower’s obligations hereunder or under the Note
to an obligation owed to another party.

 

Section 3.5.     Financial
Condition.

 

(a)           
Borrower is solvent and Borrower has received reasonably equivalent value for the granting of the Security Instrument. No voluntary
or, to Borrower’s knowledge, involuntary proceeding under Creditors Rights Laws with respect to any Borrower Party has been
initiated

 

(b)           
In the last ten (10) years, no (i) petition in bankruptcy has been filed by or against any Borrower Party and (ii) Borrower Party
has ever made any assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws.

 

(c)           
No Borrower Party is contemplating either the filing of a petition by it under any Creditors Rights Laws or the liquidation of
its assets or property and Borrower has no knowledge of any Person contemplating the filing of any such petition against any Borrower
Party.

 

(d)           
With respect to any loan or financing in which any Borrower Party or any Affiliate thereof has been directly or directly obligated
for or has, in connection therewith, otherwise provided any guaranty, indemnity or similar surety, except as expressly disclosed
to Lender in connection with the origination of the Loan, none of such loans or financings has ever been (i) more than 30 days
in default or (ii) transferred to special servicing.

 

Section 3.6.     Disclosure.
Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any representation
or warranty made herein to be materially misleading.

 

    	 	- 35 -	 

     

    

 

Section 3.7.     No
Plan Assets. As of the date hereof and until the Debt is repaid in accordance with the applicable terms and conditions hereof,
(a) Borrower is not and will not be an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title
I of ERISA, (b) Borrower is not and will not be a “governmental plan” within the meaning of Section 3(32) of ERISA,
(c) transactions by or with Borrower are not and will not be subject to any state statute regulating investments of, or fiduciary
obligations with respect to, governmental plans and (d) none of the assets of Borrower constitutes or will constitute “plan
assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.
As of the date hereof, neither Borrower, nor any member of a “controlled group of corporations” (within the meaning
of Section 414 of the IRS Code), maintains, sponsors or contributes to a “defined benefit plan” (within the meaning
of Section 3(35) of ERISA) or a “multiemployer pension plan” (within the meaning of Section 3(37)(A) of ERISA).

 

Section 3.8.     Not
a Foreign Person. Borrower is not a “foreign person” within the meaning of § 1445(f)(3) of the IRS Code.

 

Section 3.9.     Intentionally
Omitted.

 

Section 3.10.  Business
Purposes.   The Loan is solely for the business purpose of Borrower, and
is not for personal, family, household, or agricultural purposes.

 

Section
3.11.  Borrower’s Principal Place of Business. Borrower’s principal place of business and its chief
executive office as of the date hereof is 1985 Cedar Bridge Avenue, Suite 1, Lakewood, New Jersey 08701. Borrower’s
mailing address, as set forth in the opening paragraph hereof or as changed in accordance with the provisions hereof, is true
and correct. Borrower’s organizational identification number, if any, assigned by the state of its incorporation or
organization is (i) for Seattle Fee Owner, 60404383, (ii) for Seattle Lessee, 6040486, (iii) for SLC Fee Owner, 6040494 and
(iv) for SLC Lessee, 6040498. Borrower’s federal tax identification number is (i) for Seattle Fee Owner, 81-2682090,
(ii) for Seattle Lessee, 81- 2692567, (iii) for SLC Fee Owner, 81-2692462 and (iv) for SLC Lessee, 81-2707380. Borrower is
not subject to back-up withholding taxes.

 

Section 3.12.   Status of Property.

 

(a)           
To Borrower’s knowledge, Borrower has obtained all Permits, all of which are in full force and effect as of the date hereof
and not subject to revocation, suspension, forfeiture or modification.

 

(b)          
Except as expressly and specifically noted in the Third Party Reports, to Borrower’s knowledge, each Individual Property
and the present and contemplated use and occupancy thereof are in full compliance with all applicable zoning ordinances, building
codes, land use laws, Environmental Laws and other similar Legal Requirements.

 

(c)           
Each Individual Property is served by all utilities required for the current or contemplated use thereof. All utility service is
provided by public utilities and each Individual Property has accepted or is equipped to accept such utility service.

 

    	 	- 36 -	 

     

    

 

(d)          
All public roads and streets necessary for service of and access to each Individual Property for the current or contemplated use
thereof have been completed, are serviceable and all-weather and are physically and legally open for use by the public. Each Individual
Property has either direct access to such public roads or streets or access to such public roads or streets by virtue of a perpetual
easement or similar agreement inuring in favor of Borrower and any subsequent owners of the applicable Individual Property.

 

(e)            Each
Individual Property is served by public water and sewer systems.

 

(f)            The
Property is free from damage caused by fire or other casualty. Except as expressly and specifically noted in the Third Party Reports,
to Borrower’s knowledge, the Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks,
storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators,
exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair
in all material respects; there exists no structural or other material defects or damages in the Property, whether latent or otherwise,
and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property,
or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums
or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

 

(g)           All costs and expenses of any and all labor, materials, supplies and equipment used in the construction of the Improvements have
been paid in full. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material (and
no rights are outstanding that under applicable Legal Requirements could give rise to any such liens) affecting the Property which
are or may be prior to or equal to the lien of the Security Instrument.

 

(h)           Borrower has paid in full for, and is the owner of, all furnishings, fixtures and equipment (other than Tenants’ property)
used in connection with the operation of the Property, free and clear of any and all security interests, liens or encumbrances,
except the lien and security interest created by this Agreement, the Note, the Security Instrument and the other Loan Documents.

 

(i)             Except
as expressly and specifically noted in the Third Party Reports, to Borrower’s knowledge, all liquid and solid waste disposal,
septic and sewer systems located on the Property are in a good and safe condition and repair and in compliance with all Legal Requirements.

 

(j)             Except
as expressly disclosed on the Survey, no portion of the Improvements is located in an area identified by the Federal Emergency
Management Agency or any successor thereto as an area having special flood hazards pursuant to the Flood Insurance Acts. No part
of the Property consists of or is classified as wetlands, tidelands or swamp and overflow lands.

 

(k)            Except as expressly disclosed on the Survey, all the Improvements lie within the boundaries of the Land and any building restriction
lines applicable to the Land.

 

    	 	- 37 -	 

     

    

 

(l)             To Borrower’s knowledge, there are no pending or proposed special or other assessments for public improvements or otherwise
affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments.

 

(m)           Borrower has not (i) made, ordered or contracted for any construction, repairs, alterations or improvements to be made on or to
the Property which have not been completed and paid for in full, other than the Scheduled PIP, (ii) ordered materials for any such
construction, repairs, alterations or improvements which have not been paid for in full or (iii) attached any fixtures to the Property
which have not been paid for in full. There is no such construction, repairs, alterations or improvements ongoing at the Property
as of the Closing Date, other than the Scheduled PIP. There are no outstanding or disputed claims for any Work Charges and there
are no outstanding liens or security interests in connection with any Work Charges.

 

(n)            Borrower
has no direct employees. All other personnel employed at or in connection with the Property are the direct employees of
Manager.

 

Section 3.13. Financial
Information. All financial data, including, without limitation, the balance sheets, statements of cash flow and statements
of income and operating expense that have been delivered to Lender in respect of Borrower, Sponsor, Guarantor and/or the Property
(the “Financial Data”) (a) are true, complete and correct in all material respects, (b) accurately represent
the financial condition of Borrower, Sponsor, Guarantor or the Property, as applicable, as of the date of such reports in all material
respects, and (c) to the extent prepared or audited by an independent certified public accounting firm, have been, to Borrower’s
knowledge, prepared in accordance with the Approved Accounting Method throughout the periods covered, except as disclosed therein.
Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized
or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to have a Material Adverse
Effect, except as referred to or reflected in said financial statements. Since the date of such financial statements, there has
been no materially adverse change in the financial condition, operations or business of Borrower, Sponsor or Guarantor from that
set forth in said financial statements. With respect to any Financial Data that relates solely to the operations, expenses and
income of the Property prior to August 2, 2016, the representations and warranties contained in this Section 3.13 shall be deemed
to be made to the best of Borrower’s knowledge with due inquiry.

 

Section 3.14.  Condemnation.
No Condemnation or other proceeding has been commenced or, to Borrower’s best knowledge, is threatened or contemplated with
respect to all or any portion of the Property or for the relocation of the access to any Individual Property.

 

Section 3.15.  Separate
Lots. Each Individual Property is assessed for real estate tax purposes as one or more wholly independent tax lot or lots,
separate from any adjoining land or improvements not constituting a part of such lot or lots, and no other land or improvements
is assessed and taxed together with any Individual Property or any portion thereof.

 

    	 	- 38 -	 

     

    

  

Section 3.16. Insurance.
Borrower has obtained and has delivered to Lender certified copies of all Policies (or such other evidence acceptable to Lender)
reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. There are no present claims under
any of the Policies that are not either fully covered by such Policies or which would result in a Material Adverse Effect, and
to Borrower’s knowledge, no Person, including Borrower, has done, by act or omission, anything which would impair the coverage
of any of the Policies.

 

Section 3.17.   Use of Property. Each
Individual Property is used exclusively as a hotel and other appurtenant and related uses.

 

Section 3.18. Leases and Rent Roll.   There
exist no Leases (other than the Master Lease).

 

Section 3.19. Filing
and Recording Taxes. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person
under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of this Agreement, the Security Instrument, the Note and the other Loan Documents, including,
without limitation, the Security Instrument, have been paid or will be paid, and, under current Legal Requirements, the Security
Instrument and the other Loan Documents are enforceable in accordance with their terms by Lender (or any subsequent holder thereof),
except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Creditors Rights
Laws, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law).

 

Section 3.20. Management
Agreement. The Management Agreement is in full force and effect and there is no default thereunder by any party thereto and,
to Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute
a default thereunder. As of the date hereof, no management fees under the Management Agreement are accrued but unpaid, other than
management fees accrued from the last payment thereof to the Closing Date which are not yet delinquent.

 

Section 3.21. Illegal Activity/Forfeiture.

 

(a)          
No portion of the Property has been or will be purchased, improved, equipped or furnished by any Borrower Party (or Affiliate thereof)
with proceeds of any illegal activity and to Borrower’s knowledge, there are no illegal activities or activities relating
to controlled substances at the Property.

 

(b)         
There has not been and shall never be committed by Borrower or, to Borrower’s knowledge, any other Person in occupancy of
or involved with the operation or use of the Property any act or omission affording the federal government or any state or local
government the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s
obligations under this Agreement, the Note, the Security Instrument or the other Loan Documents. Borrower hereby covenants and
agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture.

 

Section 3.22.   Taxes.
Borrower has filed all federal, state, county, municipal, and city income, personal property and other tax returns required to
have been filed by it and has paid all taxes and related liabilities which have become due pursuant to such returns or pursuant
to any assessments received by it. Borrower knows of no basis for any additional assessment in respect of any such taxes and related
liabilities for prior years.

 

    	 	- 39 -	 

     

    

  

Section 3.23.  Permitted
Encumbrances. None of the Permitted Encumbrances, individually
or in the aggregate, materially and adversely interferes with the benefits of the security intended to be provided by this Agreement,
the Security Instrument, the Note and the other Loan Documents, materially and adversely affects the value or marketability of
the Property (or any portion thereof), materially and adversely impairs the use or the operation of the Property or impairs Borrower’s
ability to pay its obligations in a timely manner.

 

Section 3.24. Third
Party Representations. To Borrower’s knowledge, each of the representations and the warranties made by Sponsor and Guarantor
in the other Loan Documents (if any) are true, complete and correct in all material respects.

 

Section 3.25. Non-Consolidation
Opinion Assumptions. All of the assumptions made in the Non-Consolidation Opinion, including, but not limited to, any exhibits
attached thereto and/or certificates delivered in connection therewith, are true, complete and correct.

 

Section 3.26.  Federal
Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin
stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose
which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited
by Legal Requirements or by the terms and conditions of this Agreement, the Security Instrument, the Note or the other Loan Documents.

 

Section 3.27.   Investment
Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a
“subsidiary company” of a “holding company” or an “affiliate” of either a “holding company”
or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c)
subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.

 

Section 3.28.  Fraudulent
Conveyance. Borrower (a) has not entered into the Loan or any Loan Document with the actual intent to hinder, delay, or defraud
any creditor and (b) received reasonably equivalent value in exchange for its obligations under the Loan Documents. On the Closing
Date, giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the
execution and delivery of the Loan Documents, exceed Borrower’s total liabilities, including, without limitation, subordinated,
unliquidated, disputed or contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following
the execution and delivery of the Loan Documents, be greater than Borrower’s probable liabilities, including the maximum
amount of its contingent liabilities or its debts as such debts become absolute and matured. Borrower’s assets do not and,
immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry
out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur
debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond its ability to pay such
debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower).

 

    	 	- 40 -	 

     

    

  

Section 3.29.  Embargoed
Person. As of the date hereof and at all times throughout the term of the Loan, including after giving effect to any transfers
of interests permitted pursuant to the Loan Documents, (a) none of the funds or other assets of any Borrower Party constitute (or
will constitute) property of, or are (or will be) beneficially owned, directly or indirectly, by any Person or government that
is the subject of economic sanctions under U.S. law, including but not limited to, the International Emergency Economic Powers
Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or
regulations promulgated thereunder with the result that transactions involving or the investment in any such Borrower Party (whether
directly or indirectly) is prohibited by applicable law or the Loan made by Lender is in violation of applicable law (“Embargoed
Person”); (b) no Embargoed Person has (or will have) any interest of any nature whatsoever in any Borrower Party, with
the result that transactions involving or the investment in any such Borrower Party (whether directly or indirectly), is prohibited
by applicable law or the Loan is in violation of applicable law; and (c) none of the funds of any Borrower Party have been (or
will be) derived from any unlawful activity with the result that transactions involving or the investment in any such Borrower
Party (whether directly or indirectly), is prohibited by applicable law or the Loan is in violation of applicable law. Any violation
of the foregoing shall, at Lender’s option, constitute an Event of Default hereunder. The foregoing representations shall
be deemed not to apply to any indirect interests in Borrower held by Persons as shares of stock on a nationally recognized stock
exchange.

 

Section 3.30.  Anti-Money
Laundering and Economic Sanctions. Each Borrower Party, each
and every Person Affiliated with any Borrower Party and, to Borrower’s knowledge, their directors, officers, employees or
agents and any Person that has an economic interest in any Borrower Party, in each case, has not, and at all times throughout the
term of the Loan, including after giving effect to any transfers of interests permitted pursuant to the Loan Documents, shall not:
(i) itself be (or have been), be (or have been) owned or controlled by, or act for or on behalf of a Person or government that
is the subject of, in each case, economic sanctions administered or enforced by the Office of Foreign Assets Control (“OFAC”)
of the Department of the Treasury, the Department of State, or other relevant sanctions authority (“Sanctions”);
(ii) fail to be (or have been) in full compliance with the requirements of the USA PATRIOT Act or other applicable anti-money laundering
laws and regulations and all Sanctions; (iii) fail to operate (or have operated) under policies, procedures and practices, if any,
that are (A) in compliance with applicable anti-money laundering laws and regulations and Sanctions and (B) available to Lender
for Lender’s review and inspection during normal business hours and upon reasonable prior notice; (iv) be (or have been)
in receipt of any notice from OFAC, the Secretary of State or the Attorney General of the United States or any other department,
agency or office of the United States, in each case, claiming a violation or possible violation of applicable anti-money laundering
laws and regulations and/or Sanctions; (v) be (or have been) the subject of Sanctions, including those listed as a Specially Designated
National or as a “blocked” Person on any lists issued by OFAC and those owned or controlled by or acting for or on
behalf of such Specially Designated National or “blocked” Person; (vi) be (or have been) a Person who has been determined
by competent authority to be subject to any of the prohibitions contained in the USA PATRIOT Act; or (vii) be (or have been) owned
or controlled by or be (or have been) acting for or on behalf of, in each case, any Person who has been determined to be subject
to the prohibitions contained in the USA PATRIOT Act. Borrower covenants and agrees that in the event Borrower receives any notice
that any Borrower Party (or any of their respective beneficial owners or Affiliates) became the subject of Sanctions or is indicted,
arraigned, or custodially detained on charges involving Sanctions, money laundering or predicate crimes to money laundering, Borrower
shall immediately notify Lender. It shall be an Event of Default hereunder if any Borrower Party or any other party to any Loan
Document becomes the subject of Sanctions or is indicted, arraigned or custodially detained on charges involving Sanctions, money
laundering or predicate crimes to money laundering. All capitalized words and phrases and all defined terms used in the USA PATRIOT
Act of 2001, 107 Public Law 56 (October 26, 2001) and in other statutes and all orders, rules and regulations of the United States
government and its various executive departments, agencies and offices related to applicable anti-money laundering laws and regulations
(collectively referred as the “Patriot Act”) are incorporated into this Section.

 

    	 	- 41 -	 

     

    

  

Section 3.31. Organizational
Chart. The organizational charts attached as Schedule III hereto (collectively, the “Organizational Chart”),
including, without limitation, the statements made thereon, are true, complete and correct on and as of the date hereof.

 

Section 3.32.  Bank
Holding Company. Borrower is not a “bank holding company” or a direct or indirect subsidiary of a “bank holding
company” as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors
of the Federal Reserve System.

 

Section 3.33.   Hotel Matters.

 

(a)          
Except with respect to the Franchise Agreement, the Property is not subject to any Hotel Operating Agreements. The Franchise Agreement
has not been amended, restated, supplemented or otherwise modified, is in full force and effect and there is no default thereunder
by any party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of time and/or giving of
notice, would constitute a default thereunder.

 

(b)          
Except for the Scheduled PIP, there is currently no PIP or other similar requirement imposed under the Franchise Agreement.

 

(c)          
The Property is not subject to equipment leases or any other similar leases or agreements, other than Permitted Equipment Leases.

 

(d)         
Borrower owns or has the right to use, pursuant to the Franchise Agreement, all patents, licenses, franchises, trademarks, trademark
rights, trade names, trade name rights, trade secrets and copyrights (collectively, the “Intellectual Property”)
necessary to the conduct of its businesses as currently conducted, without known conflict with any patent, license, franchise,
trademark, trade secret, trade name, copyright, or other proprietary right of any other Person. To Borrower’s knowledge,
all such Intellectual Property is fully protected and/or duly and properly registered, filed or issued in the appropriate office
and jurisdictions for such registrations, filing or issuances. No material claim has been asserted by any Person against Borrower
with respect to the use of any such Intellectual Property, or challenging or questioning the validity or effectiveness of any such
Intellectual Property. Other than pursuant to the Franchise Agreements, Borrower (i) does not have or hold any Intellectual Property
or (ii) is not the registered holder of any website.

 

    	 	- 42 -	 

     

    

  

(e)          
There are no: (i) collective bargaining agreements and/or other labor agreements to which Borrower or the Property, or any portion
thereof, is a party or by which either is or may be bound; (ii) employment, profit sharing, deferred compensation, bonus, stock
option, stock purchase, pension, retainer, consulting, retirement, health, welfare, or incentive plans and/or contracts to which
Borrower is a party or by which Borrower is or may be bound; or (iii) plans and/or agreements under which “fringe benefits”
(including, but not limited to, vacation plans or programs, and related or similar dental or medical plans or programs, and related
or similar benefits) are afforded to employees of Borrower. Borrower has not violated any applicable laws, rules and regulations
relating to the employment of labor, including those relating to wages, hours, collective bargaining and the payment and withholding
of taxes and other sums as required by appropriate Governmental Authorities.

 

(f)            Except
for the Master Lease, Borrower has not entered into any contract or agreement (written, oral or otherwise) with any other Borrower
Party or any Affiliate of and Borrower Party.

 

Section 3.34. Property
Document Representations. With respect to each Property Document, Borrower hereby represents that (a) each Property Document
is in full force and effect and has not been amended, restated, replaced or otherwise modified (except, in each case, as expressly
set forth herein), (b) there are no defaults under any Property Document by Borrower or, to Borrower’s knowledge, any other
party thereto and, to Borrower’s knowledge, no event has occurred which, but for the passage of time, the giving of notice,
or both, would constitute a default under any Property Document, (c) all rents, additional rents and other sums due and payable
under the Property Documents have been paid in full in accordance with the applicable terms and conditions of the Property Documents,
(d) no party to any Property Document has commenced any action or given or received any notice for the purpose of terminating any
Property Document and (e) the representations made in any estoppel or similar document delivered with respect to any Property Document
in connection with the Loan are, to Borrower’s knowledge, true, complete and correct and are hereby incorporated by reference
as if fully set forth herein.

 

Section 3.35. Master
Lease Representations. (a) The Master Lease is in full force and effect and has not been modified or amended in any manner
whatsoever, (b) there are no material defaults under the Master Lease by any party thereto, and no event has occurred which but
for the passage of time, or notice, or both would constitute a material default under the Master Lease, (c) all rents, additional
rents and other sums due and payable under the Master Lease have been paid in full, (d) no party to the Master Lease has commenced
any action or given or received any notice for the purpose of terminating the Master Lease, (e) the representations made in the
Master Lease Estoppel are true, complete and correct and are hereby incorporated by reference as if fully set forth herein and
(f) there are no subleases currently executed for the premises demised under the Master Lease.

 

    	 	- 43 -	 

     

    

 

Section 3.36.   No Change in Facts or Circumstances; Disclosure.

 

All information submitted
by (or on behalf of) Borrower, Guarantor or Sponsor to Lender and in all financial statements, reports, certificates and other
documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower,
Sponsor and/or Guarantor in this Agreement or in the other Loan Documents, are accurate, complete and correct in all material respects.
There has been no material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate,
incomplete or otherwise misleading in any material respect or that otherwise have a Material Adverse Effect. Borrower has disclosed
to Lender all material facts and has not failed to disclose any material fact that could cause any representation or warranty made
herein to be materially misleading.

 

Borrower agrees that,
unless expressly provided otherwise, all of the representations and warranties of Borrower set forth in this Article 3 and elsewhere
in this Agreement and the other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender. All
representations, warranties, covenants and agreements made in this Agreement and in the other Loan Documents shall be deemed to
have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.

 

ARTICLE 4

 

BORROWER COVENANTS

 

From the date hereof
and until payment and performance in full of all obligations of Borrower under this Agreement, the Security Instrument, the Note
and the other Loan Documents or the earlier release of the lien of the Security Instrument (and all related obligations) in accordance
with the terms of this Agreement, the Security Instrument, the Note and the other Loan Documents, Borrower hereby covenants and
agrees with Lender that:

 

Section 4.1.     Existence.
Each Borrower will continuously maintain (a) its existence and shall not dissolve or permit its dissolution, (b) its rights to
do business in the State and (c) its franchises and trade names, if any.

 

Section 4.2.     Legal
Requirements.

 

(a)           
Borrower shall comply in all material respects and shall cause the Property to comply in all material respects with all Legal Requirements
affecting the Property or the use thereof (which such covenant shall be deemed to (i) include Environmental Laws and (ii) require
Borrower to keep all Permits in full force and effect).

 

(b)          
Borrower shall from time to time, upon Lender’s reasonable request and Lender’s reasonable belief that there is a change
in circumstances with regard to the Property (such request not to be made more than one time during any twelve (12) month period
(unless such request is made during the continuance of Event of Default or in connection with a Secondary Market Transaction)),
provide Lender with evidence reasonably satisfactory to Lender that the Property complies with all Legal Requirements or is exempt
from compliance with Legal Requirements, which such satisfactory evidence may be a certificate from a Responsible Officer of Borrower
certifying to the same to Borrower’s actual knowledge.

 

    	 	- 44 -	 

     

    

 

 

 

 

(c)           Borrower shall give
prompt notice to Lender of the receipt by Borrower of any written notice related to a material violation of any Legal Requirements
and of the commencement of any proceedings or investigations which relate to compliance with Legal Requirements.

 

(d)           After prior written
notice to Lender (which notice shall not be required with respect to immaterial matters provided: (i) no Material Adverse Effect
has occurred or is reasonably likely to occur in connection with the applicable contest and alleged violation (including, without
limitation, the Property shall not at any time be in danger of being sold, forfeited, terminated, canceled or lost and at no time
shall there shall be any danger of the lien of the Security Instrument being primed by any related lien), (ii) to the extent any
costs, fees or expenses are at issue, have accrued or are reasonably likely to be assessed or incurred they shall be less than
(or, as applicable, shall not be likely to exceed) $10,000 in the aggregate and (iii) Borrower diligently pursues its contest rights
in full accordance with this Section 4.2(d)), Borrower, at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal
Requirement to Borrower or any Individual Property or any alleged violation of any Legal Requirement, provided that (i) no Event
of Default has occurred and is continuing (unless the applicable Event of Default has been affirmatively and expressly waived in
writing by Lender in Lender’s sole discretion); (ii) such proceeding shall be permitted under and be conducted in accordance
with the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding
shall be permitted by and conducted in accordance with all applicable Legal Requirements; (iii) neither the applicable Individual
Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (iv)
Borrower shall promptly upon final determination thereof comply with any such Legal Requirement determined to be valid or applicable
or cure any violation of any Legal Requirement; (v) such proceeding shall suspend the enforcement of the contested Legal Requirement
against Borrower or the applicable Individual Property; and (vi) Borrower shall furnish such security as may be required in the
proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest
and penalties payable in connection therewith. Lender may apply any such security or part thereof, as necessary to cause compliance
with such Legal Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of
such Legal Requirement is finally established or the applicable Individual Property (or any part thereof or interest therein) shall
be in danger of being sold, forfeited, terminated, cancelled or lost.

 

    	 	- 45 -	 

     

    

Section 4.3.         Maintenance
and Use of Property. Borrower shall cause the Property to be maintained in a good and safe condition and repair, reasonable
wear and tear excepted. The Improvements and the Personal Property shall not be removed, demolished or materially altered (except
for normal replacement of the Personal Property) without the consent of Lender (which such consent shall not be unreasonably withheld,
conditioned or delayed (subject, in each case, to REMIC Requirements)) or as otherwise permitted pursuant to Section 4.21 hereof.
Borrower shall perform (or shall cause to be performed) the prompt repair, replacement and/or rebuilding of any part of the Property
which may be destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any proceeding of the
character referred to in Section 3.14 hereof and shall complete and pay for (or cause the completion and payment for) any structure
at any time in the process of construction or repair on the Land. Borrower shall operate the Property for the same uses as the
Property is currently operated and Borrower shall not, without the prior written consent of Lender (which such consent shall not
be unreasonably withheld, conditioned or delayed (subject, in each case, to REMIC Requirements)), (i) change the use of the Property
or (ii) initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public
or private restriction, limiting or defining the uses which may be made of the Property or any part thereof. If under applicable
zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause
or permit the nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written
consent of Lender (which such consent shall not be unreasonably withheld, conditioned or delayed (subject, in each case, to REMIC
Requirements)).

 

Section 4.4.         Waste.
Borrower shall not commit or suffer any physical waste of the Property or make any change in the use of the Property which will
in any way materially increase the risk of fire or other hazard arising out of the operation of the Property, or take any action
that might invalidate or give cause for cancellation of any Policy, or do or knowingly permit to be done thereon anything that
would result in a Material Adverse Effect. Borrower will not, without the prior written consent of Lender, permit any drilling
or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Property, regardless
of the depth thereof or the method of mining or extraction thereof.

 

Section 4.5.         Taxes
and Other Charges.

 

(a)           Subject to the contest
rights provided in Section 4.5(b), Borrower shall pay (or cause to be paid) all Taxes and Other Charges now or hereafter levied
or assessed or imposed against the Property or any part thereof as the same become due and payable; provided, however, prior to
the occurrence and continuance of an Event of Default, Borrower’s obligation to directly pay Taxes shall be suspended for
so long as Borrower complies with the terms and provisions of Section 8.6 hereof. Borrower shall furnish to Lender receipts for
the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent (provided, however, that Borrower
is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to
Section 8.6 hereof). Borrower shall not suffer and shall, subject to the contest rights provided in Section 4.5(b), promptly cause
to be paid and discharged any lien or charge whatsoever which may be or become a lien or charge against the Property (or any portion
thereof), and shall promptly pay for all utility services provided to the Property (or any portion thereof).

 

    	 	- 46 -	 

     

    

(b)           After prior written
notice to Lender (which notice shall not be required with respect to immaterial matters provided: (i) no Material Adverse Effect
has occurred or is reasonably likely to occur in connection with the applicable contest and alleged violation (including, without
limitation, the Property shall not at any time be in danger of being sold, forfeited, terminated, canceled or lost and at no time
shall there shall be any danger of the lien of the Security Instrument being primed by any related lien), (ii) the contested payment
shall be less than $10,000 in the aggregate and (iii) Borrower diligently pursues its contest rights in full accordance with this
Section 4.5(b)), Borrower, at its own expense, may contest (or permit to be contested) by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any
Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted
under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute
a default thereunder and such proceeding shall be permitted by and conducted in accordance with all applicable Legal Requirements;
(iii) neither the applicable Individual Property nor any part thereof or interest therein will be in danger of being sold, forfeited,
terminated, canceled or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or
Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding
shall suspend the collection of such contested Taxes or Other Charges from the applicable Individual Property or such Taxes and
Other Charges shall have been paid in full (together with all interest, penalties or other similar sums due) pending resolution
of the applicable contest; and (vi) Borrower shall furnish such security as may be required in the proceeding, or deliver to Lender
such reserve deposits as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other Charges, together
with all interest and penalties thereon (provided, that, Lender shall not require such reserve if Lender reasonably determines
that all applicable Taxes and Other Charges have been paid in full (together with all interest, penalties or other similar sums
due) pending resolution of the applicable contest). Lender may pay over any such cash deposit or part thereof held by Lender to
the claimant entitled thereto at any time when, in the reasonable judgment of Lender, the entitlement of such claimant is established
or the applicable Individual Property (or part thereof or interest therein) shall be in danger of being sold, forfeited, terminated,
canceled or lost or there shall be any danger of the lien of the Security Instrument being primed by any related lien.

 

Section 4.6.         Litigation.
Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing
against Borrower which might have a Material Adverse Effect.

 

Section 4.7.        Access
to Property. Borrower shall permit agents, representatives and employees of Lender to inspect the Property or any part thereof
at reasonable hours upon reasonable advance notice.

 

Section 4.8.        Notice
of Default. Borrower shall promptly advise Lender of any material adverse change in Borrower’s, Sponsor’s and/or
Guarantor’s condition (financial or otherwise) or of the occurrence of any Default or Event of Default of which Borrower
has knowledge.

 

Section 4.9.        Cooperate
in Legal Proceedings. Except with respect to a bona fide good faith claim made by Borrower against Lender, Borrower shall cooperate
fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way
affect the rights of Lender hereunder or any rights obtained by Lender under any of the Note, the Security Instrument or the other
Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings.

 

    	 	- 47 -	 

     

    

Section 4.10.       Intentionally Omitted.

 

Section 4.11.       Intentionally Omitted.

 

Section 4.12.      Books and Records.

 

(a)           Borrower shall furnish to Lender:

 

(i)           monthly Smith
Travel Research Reports, including occupancy statistics, average daily room rates, market penetration and relevant competing hotel
properties, with respect to each Individual Property during the subject month within thirty (30) days after the end of each calendar
month (provided, however, at the end of each calendar quarter, Borrower shall have forty five (45) days);

 

(ii)          to the extent
there are any Leases in place at the Property, monthly certified rent rolls for each Individual Property within thirty (30) days
after the end of each calendar month (provided, however, at the end of each calendar quarter, Borrower shall have forty five (45)
days);

 

(iii)         to the
extent any Franchise Agreement or other agreement containing Hotel Operating Agreements is in place, in any month that Borrower
receives the same from any Franchisor or any similar Person, Borrower shall deliver to Lender a quality control report (including,
without limitation, franchise scores and similar evaluations) in form reasonable acceptable to Lender from the applicable Franchisor
(or similar entity, as applicable) together with the operating statements required by clause (iv) below covering the related month
in which Borrower receives the applicable quality control report (Borrower acknowledges that it shall deliver said quality control
reports for each Individual Property no less often that one (1) time during each calendar year);

 

(iv)         monthly
operating statements of each Individual Property detailing the revenues received, the expenses incurred and the components of Underwritable
Cash Flow before and after Debt Service and major capital improvements for the period of calculation (including, without limitation,
FF&E and PIP expenditures and containing appropriate year-to-date information, within thirty (30) days after the end of each
calendar month (provided, however, at the end of each calendar quarter, Borrower shall have forty five (45) days);

 

(v)         within one
hundred twenty (120) days after the close of each fiscal year of Borrower (or such earlier time as Lender shall determine in its
reasonable discretion is necessary to comply with any Legal Requirements, including, without limitation, Regulation AB provided
that: (a) Lender shall notify Borrower in writing that a shorter time period is required and (b) unless there is a change in Regulation
AB or any other applicable Legal Requirement after the Closing Date, in no event shall said time period be shortened to sooner
than eighty five (85) days after the close of each fiscal year of Borrower), (A) with respect to Borrower, an annual balance sheet,
statement of cash flow, profit and loss statement and statement of change in financial position and (B) an annual operating statement,
in each case, detailing occupancy statistics (including an average daily room rate), the revenues received, the expenses incurred
and the components of Underwritable Cash Flow before and after Debt Service and major capital improvements for the period of calculation
(including, without limitation, FF&E and PIP expenditures and information as to compliance with the Franchise Agreement (if
any) and the terms hereof with respect to the same (including, without limitation, any franchise scores, franchise inspection reports,
source contribution reports (showing, among things, sale segmentations) or other similar evaluations (if any) with respect to each
Individual Property)) and containing appropriate year-to-date information;

 

    	 	- 48 -	 

     

    

(vi)        by no later
than December 15th of each calendar year, an annual operating budget for the next succeeding calendar year presented on a monthly
basis consistent with the annual operating statement described above for each Individual Property, including cash flow projections
for the upcoming year and all proposed capital replacements and improvements and FF&E, which such budget shall not take effect
until approved by Lender (after such approval has been given in writing, each such approved budget shall be referred to herein,
individually or collectively (as the context requires), as the “Approved Annual Budget”). Until such time that
Lender approves a proposed Annual Budget, (1) to the extent that an Approved Annual Budget does not exist for the immediately preceding
calendar year, all operating expenses of the Property for the then current calendar year shall be deemed extraordinary expenses
of the Property and shall be subject to Lender’s prior written approval (not to be unreasonably withheld or delayed) and
(2) to the extent that an Approved Annual Budget exists for the immediately preceding calendar year, such Approved Annual Budget
shall apply to the then current calendar year; provided, that such Approved Annual Budget shall be adjusted to reflect actual increases
in Taxes, Insurance Premiums and utilities expenses. Without limiting the foregoing, any amendments or modifications to an Approved
Annual Budget shall require Lender’s prior written consent and shall not take effect until so approved. Lender hereby acknowledges
that: (x) it has reviewed and approved the annual budget for the calendar year 2016 and a budget for the calendar year 2017, each
of which shall be deemed an “Approved Annual Budget” for purposes hereunder (Lender further acknowledges that Borrower
shall be permitted to modify the Approved Annual Budget for 2017 subject to Lender’s approval, which shall not be unreasonably
withheld);

 

(vii)       together
with the monthly operating statements required by Section 4.12(a)(iv) above, (A) a calculation of the then current Debt
Service Coverage Ratio, together with such back-up information as Lender shall require and (B) a calculation of the amount of
Excess Cash Flow generated by each Individual Property for such period together with such back-up information as Lender shall
require; and

 

(b)          Upon request from Lender
(which such request shall be made no more frequently than quarterly (unless in connection with a Trigger Period or Secondary Market
Transaction)), Borrower shall furnish in a timely manner to Lender:

 

(i)           to the extent
there are any Leases in place at the Property, an accounting of all Security Deposits, including the nature and type of Security
Deposit, the name and identification number of the accounts in which such Security Deposits are held (if applicable), such details
regarding any Security Deposit not held in the form of cash as Lender may reasonably require, the name and address of the financial
institutions in which such Security Deposits are held or have been otherwise issued by and the name of the Person to contact at
such financial institution, along with any authority or release necessary for Lender to obtain information regarding such accounts
or other information directly from such financial institutions; and

 

    	 	- 49 -	 

     

    

(ii)         evidence
reasonably acceptable to Lender of compliance with the terms and conditions of Articles 5 and 9 hereof.

 

(c)           During a Trigger Period
or in connection with any Secondary Market Transaction, Borrower shall, within ten (10) days of request, furnish Lender (and shall
cause Sponsor and/or Guarantor to furnish to Lender) with such other additional financial or management information (including
State and Federal tax returns) as may, from time to time, be reasonably required by Lender in form and substance satisfactory to
Lender. Borrower shall furnish to Lender and its agents convenient facilities for the examination and audit of any such books and
records.

 

(d)           Borrower agrees that
(i) Borrower shall keep adequate books and records of account and (ii) all Required Financial Items to be delivered to Lender pursuant
to Section 4.12 shall: (A) be complete and correct in all material respects; (B) present fairly the financial condition of the
applicable Person; (C) disclose all liabilities that are required to be reflected or reserved against; (D) be prepared (1) in the
form required by Lender and certified by a Responsible Officer of Borrower (2) in electronic format and, solely to the extent expressly
requested by Lender, hardcopy format and (3) in accordance with the Approved Accounting Method; (E) not include any Person other
than Borrower and shall show each Borrower and each Individual Property individually and on a combined, aggregate basis with all
Borrowers and all Individual Properties; (F) upon request of Lender after the occurrence and during the continuance of an Event
of Default, be audited by an independent certified public accountant acceptable to Lender; and (G) upon request of Lender during
any Trigger Period, be subjected and evaluated pursuant to a “forensic accounting” (in form and scope satisfactory
to Lender) by an independent certified forensic accountant acceptable to Lender. Borrower shall be deemed to warrant and represent
that, as of the date of delivery of any such financial statement, there has been no material adverse change in financial condition,
nor have any assets or properties been sold, transferred, assigned, mortgaged, pledged or encumbered since the date of such financial
statement except as disclosed by Borrower in a writing delivered to Lender. Borrower agrees that all Required Financial Items shall
not contain any material misrepresentation or omission of a material fact.

 

(e)           Borrower acknowledges
the importance to Lender of the timely delivery of each of the items required by this Section 4.12 and the other financial reporting
items required by this Agreement (each, a “Required Financial Item” and, collectively, the “Required
Financial Items”). In the event Borrower fails to deliver to Lender any of the Required Financial Items within the time
frame specified herein and such failure continues for ten (10) Business Days after Lender provides Borrower notice of the same
(each such event, a “Reporting Failure”), the same shall, at Lender’s option, constitute an immediate
Event of Default hereunder and, without limiting Lender’s other rights and remedies with respect to the occurrence of such
an Event of Default, Borrower shall pay to Lender the sum of $1,000 per occurrence for each Reporting Failure. It shall constitute
a further Event of Default hereunder if any such payment is not received by Lender within thirty (30) days of the date on which
such payment is due, and Lender shall be entitled to the exercise of all of its rights and remedies provided hereunder.

 

    	 	- 50 -	 

     

    

Section 4.13.       Estoppel Certificates.

 

(a)           After request by Lender
(which such request shall be made no more frequently than once per calendar year (unless in connection with a Trigger Period or
Secondary Market Transaction)), Borrower, within fifteen (15) days of such request, shall furnish Lender or any proposed assignee
with a statement, duly acknowledged and certified, setting forth (i) to Borrower’s knowledge, the original principal amount
of the Loan, (ii) to Borrower’s knowledge, the unpaid principal amount of the Loan, (iii) to Borrower’s knowledge,
the rate of interest of the Loan, (iv) to Borrower’s knowledge, the terms of payment and maturity date of the Loan, (v) the
date installments of interest and/or principal were last paid, (vi) that, except as provided in such statement, no Event of Default
exists, (vii) that this Agreement, the Note, the Security Instrument and the other Loan Documents are valid, legal and binding
obligations and have not been modified or if modified, giving particulars of such modification, (viii) whether any offsets or defenses
exist against the obligations secured hereby and, if any are alleged to exist, a detailed description thereof, (ix) that all Leases
are in full force and effect and have not been modified (or if modified, setting forth all modifications), (x) the date to which
the Rents thereunder have been paid pursuant to the Leases, (xi) whether or not, to the best knowledge of Borrower, any of the
lessees under the Leases are in default under the Leases, and, if any of the lessees are in default, setting forth the specific
nature of all such defaults, (xii) the amount of Security Deposits held by Borrower under each Lease and that such amounts are
consistent with the amounts required under each Lease, and (xiii) as to any other matters reasonably requested by Lender and reasonably
related to the Leases, the obligations created and evidenced hereby and by the Security Instrument or the Property.

 

(b)           Borrower shall use
commercially reasonable efforts to deliver to Lender, promptly upon request (which such request shall be made no more frequently
than once per calendar year (unless in connection with a Trigger Period or Secondary Market Transaction)), duly executed estoppel
certificates from any one or more Tenants as required by Lender attesting to such facts regarding the Lease as Lender may require,
including, but not limited to, attestations that each Lease covered thereby is in full force and effect with no defaults thereunder
on the part of any party, that none of the Rents have been paid more than one month in advance, except as security, no free rent
or other concessions are due lessee and that the lessee claims no defense or offset against the full and timely performance of
its obligations under the Lease.

 

(c)           Intentionally
Omitted.

 

(d)           Borrower shall use
commercially reasonable efforts to deliver to Lender, within fifteen (15) days of request (which such request shall be made no
more frequently than once per calendar year (unless in connection with a Trigger Period or Secondary Market Transaction)), estoppel
certificates from each party under any Property Document in form and substance reasonably acceptable to Lender.

 

    	 	- 51 -	 

     

    

Section 4.14.       Leases and Rents.

 

(a)           All Leases and all
renewals of Leases executed after the date hereof shall (i) provide for rental rates comparable to existing local market rates
for similar properties, (ii) be on commercially reasonable terms with unaffiliated, third parties (unless otherwise consented to
by Lender), (iii) provide that such Lease is subordinate to the Security Instrument and that the lessee will attorn to Lender and
any purchaser at a foreclosure sale and (iv) not contain any terms which would have a Material Adverse Effect. Notwithstanding
anything to the contrary contained herein, Borrower shall not, without the prior written approval of Lender (which approval shall
not be unreasonably withheld, conditioned or delayed), enter into, renew, extend, amend, modify, permit any assignment of or subletting
under, waive any provisions of, release any party to, terminate, reduce rents under, accept a surrender of space under, or shorten
the term of, in each case, any Lease.

 

(b)           Without limitation
of subsection (a) above, Borrower (i) shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially
reasonable manner; (ii) shall enforce the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder
to be observed or performed in a commercially reasonable manner; (iii) shall not collect any of the Rents more than one (1) month
in advance (other than Security Deposits); (iv) shall not execute any assignment of lessor’s interest in the Leases or the
Rents (except as contemplated by the Loan Documents); (v) shall not, without Lender’s prior written consent, alter, modify
or change any Lease to the extent the same would, individually or in the aggregate, (A) cause any such Lease to violate 4.14(a)(i)
through (iii) above or (B) have a Material Adverse Effect; and (vi) shall hold all Security Deposits in accordance with Legal Requirements.
Upon request, Borrower shall furnish Lender with executed copies of all Leases.

 

(c)           Notwithstanding anything
contained herein to the contrary, Borrower shall not willfully withhold from Lender any information reasonably requested by Lender
regarding renewal, extension, amendment, modification, waiver of provisions of, termination, rental reduction of, surrender of
space of, or shortening of the term of, any Lease during the term of the Loan. Borrower further agrees to provide Lender with written
notice of a Tenant “going dark” under such Tenant’s Lease within five (5) Business Days after Borrower (or any
Affiliate thereof) becomes aware that such Tenant “goes dark”. Borrower agrees to provide Lender with written notice
of any event of default under a Lease within five (5) business days after the occurrence of any such event of default. Borrower’s
failure to provide any of the aforesaid notices shall, at Lender’s option, constitute an Event of Default. A Tenant “going
dark” for a temporary closures due to normal course of business inventory and/or remodeling (provided that the closure for
remodeling does not exceed 30 days) shall not be deemed to implicate the foregoing.

 

(d)           Borrower shall notify
Lender in writing, within two (2) Business Days following receipt thereof, of Borrower’s receipt of any early termination
fee or payment or other termination fee or payment paid by any Tenant under any Lease, and Borrower further covenants and agrees
that Borrower shall hold any such termination fee or payment in trust for the benefit of Lender and that any use of such termination
fee or payment shall be subject in all respects to Lender’s prior written consent in Lender’s reasonable discretion
(which consent may include, without limitation, a requirement by Lender that such termination fee or payment be placed in reserve
with Lender to be disbursed by Lender for tenant improvement and leasing commission costs with respect to the Property and/or for
payment of the Debt or otherwise in connection with the Loan evidenced by the Note and/or the Property, as so determined by Lender).
The foregoing consent right of Lender (including, without limitation, any reserve requirement) shall not be subject to any “cap”
or similar limit on the amount of Reserve Funds held by Lender.

 

    	 	- 52 -	 

     

    

(e)           Upon the occurrence
of an Event of Default, Borrower shall, within thirty (30) days of demand by Lender, deliver to Lender all Security Deposits. Without
limitation of any other term or provision contained herein, for purposes of clarification, for a Security Deposit to be deemed
“delivered to Lender” in connection with the foregoing, the same must be in the form of cash or in a letter of credit
solely in Lender’s name.

 

Section 4.15.       Management Agreement.

 

(a)           Borrower shall (i)
perform, observe and enforce all of the terms, covenants and conditions of the Management Agreement on the part of Borrower to
be performed, observed and enforced to the end that all things shall be done which are necessary to keep unimpaired the rights
of Borrower under the Management Agreement, (ii) promptly notify Lender of any default under the Management Agreement of which
Borrower has knowledge; (iii) promptly deliver to Lender a copy of any notice of default or other material notice received by Borrower
under the Management Agreement; (iv) promptly give notice to Lender of any notice or information that Borrower receives which indicates
that Manager is terminating the Management Agreement or that Manager is otherwise discontinuing its management of the Property;
and (v) promptly enforce in all material respects the performance and observance of all of the covenants required to be performed
and observed by Manager under the Management Agreement.

 

(b)           Borrower shall not,
without the prior written consent of Lender (which such consent shall not be unreasonably withheld, conditioned or delayed), (i)
surrender, terminate or cancel the Management Agreement, consent to any assignment of the Manager’s interest under the Management
Agreement or otherwise replace Manager or renew or extend any Management Agreement (exclusive of, in each case, any automatic renewal
or extension in accordance with its terms) or enter into any other new or replacement management agreement with respect to the
Property; provided, however, that Borrower may replace Manager and/or consent to the assignment of Manager’s interest under
the Management Agreement, in each case, in accordance with the applicable terms and conditions hereof and of the other Loan Documents;
(ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the
amount of any charges under the Management Agreement; or (iv) otherwise modify, change, alter or amend, in any material respect,
or waive or release any of its material rights and remedies under, the Management Agreement in any material respect.

 

(c)           If Borrower shall default
in the performance or observance of any material term, covenant or condition of the Management Agreement on the part of Borrower
to be performed or observed beyond all applicable notice and cure periods thereunder, then, without limiting the generality of
the other provisions of this Agreement, and without waiving or releasing Borrower from any of its obligations hereunder, Lender
shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate
to cause all the terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed or observed
to be promptly performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and under the Management
Agreement shall be kept unimpaired and free from default. Lender and any Person designated by Lender shall have, and are hereby
granted, the right to enter upon the Property at any time and from time to time during normal business hours for the purpose of
taking any such action. If Manager shall deliver to Lender a copy of any notice sent to Borrower of default under the Management
Agreement, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender in good
faith, in reliance thereon. Borrower shall notify Lender if Manager sub-contracts to a third party or an Affiliate any or all of
its management responsibilities under the Management Agreement.

 

    	 	- 53 -	 

     

    

(d)           Borrower shall, from
time to time, use commercially reasonable efforts to obtain from Manager under the Management Agreement such certificates of estoppel
with respect to compliance by Borrower with the terms of the Management Agreement as may be requested by Lender. Borrower shall
exercise each individual option, if any, to extend or renew the term of the Management Agreement upon demand by Lender made at
any time within ninety (90) days of the last day upon which any such option may be exercised, and Borrower hereby expressly authorizes
and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon behalf of Borrower, which power of
attorney shall be irrevocable and shall be deemed to be coupled with an interest (provided, that, Lender shall only exercise the
aforesaid right after the occurrence and during the continuance of an Event of Default).

 

(e)            In the event that the
Management Agreement is scheduled to expire at any time during the term of the Loan, Borrower shall submit to Lender by no later
than 60 days prior to such expiration a draft replacement management agreement or a draft extension of the Management Agreement
for approval in accordance with the terms and conditions hereof. Borrower’s failure to submit the same within such time-frame
shall, at Lender’s option, constitute an immediate Event of Default.

 

(f)            Borrower shall have
the right to replace Manager or consent to the assignment of Manager’s rights under the Management Agreement, in each case,
to the extent that (i) no Event of Default has occurred and is continuing, (ii) Lender receives at least thirty (30) days prior
written notice of the same, (iii) such replacement or assignment (as applicable) will not result in a Property Document Event and
(iv) the applicable New Manager is a Qualified Manager engaged pursuant to a Qualified Management Agreement. Borrower shall not
permit any Affiliated Manager to resign as Manager or otherwise cease managing the Property until a New Manager is engaged to manage
the Property in accordance with the applicable terms and conditions hereof and of the other Loan Documents.

 

(g)           Without limitation
of the foregoing, if the Management Agreement is terminated or expires (including, without limitation, pursuant to the Assignment
of Management Agreement), comes up for renewal or extension (exclusive of, in each case, any automatic renewal or extension in
accordance with its terms), ceases to be in full force or effect or is for any other reason no longer in effect (including, without
limitation, in connection with any Sale or Pledge), then Lender, at its option, may require Borrower to engage, in accordance with
the terms and conditions set forth herein and in the Assignment of Management Agreement, a New Manager to manage the Property,
which such New Manager shall (i) to the extent a Trigger Period is continuing and if opted by Lender, selected by Lender and (ii)
be a Qualified Manager and shall be engaged pursuant to a Qualified Management Agreement.

 

    	 	- 54 -	 

     

    

(h)           As conditions precedent
to any engagement of a New Manager hereunder, (i) New Manager and Borrower shall execute an Assignment of Management Agreement
in the form reasonably required by Lender (with such changes thereto as may be required by the Rating Agencies), (ii) to the extent
that such New Manager is an Affiliated Manager, Borrower shall deliver to Lender a New Non-Consolidation Opinion with respect to
such New Manager and new management agreement and (iii) if requested by Lender, Borrower shall deliver to Lender evidence that
the engagement of such New Manager will not result in a Property Document Event.

 

(i)            Borrower shall notify
Lender in writing, within five (5) Business Days following receipt thereof, of Borrower’s receipt of any early termination
fee or similar payment or other termination fee or similar payment paid by any Manager, and Borrower further covenants and agrees
that Borrower shall hold any such termination fee or payment in trust for the benefit of Lender and that any use of such termination
fee or payment shall be subject in all respects to Lender’s prior written consent in Lender’s reasonable discretion
(which consent may include, without limitation, a requirement by Lender that such termination fee or payment be placed in reserve
with Lender to be disbursed by Lender for replacing such Manager and/or for payment of the Debt or otherwise in connection with
the Loan evidenced by the Note and/or the Property, as so determined by Lender). The foregoing consent right of Lender (including,
without limitation, any reserve requirement) shall not be subject to any “cap” or similar limit on the amount of Reserve
Funds held by Lender.

 

(j)            Any sums expended by
Lender pursuant to this Section shall bear interest at the Default Rate from the date such cost is incurred to the date of payment
to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Security Instrument and the
other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

 

Section 4.16.       Payment for Labor and Materials.

 

(a)           Subject to Section
4.16(b) below, Borrower will promptly pay (or cause to be paid) when due all bills and costs for labor, materials, and specifically
fabricated materials incurred in connection with the Property (any such bills and costs, a “Work Charge”) and
never permit to exist in respect of the Property or any part thereof any lien or security interest, even though inferior to the
liens and the security interests hereof, and in any event never permit to be created or exist in respect of the Property or any
part thereof any other or additional lien or security interest other than the liens or security interests created hereby and by
the Security Instrument, except for the Permitted Encumbrances.

 

    	 	- 55 -	 

     

    

(b)           After prior written
notice to Lender, Borrower (which notice shall not be required with respect to immaterial matters provided: (i) no Material Adverse
Effect has occurred or is reasonably likely to occur in connection with the applicable contest and alleged violation (including,
without limitation, the Property shall not at any time be in danger of being sold, forfeited, terminated, canceled or lost and
at no time shall there shall be any danger of the lien of the Security Instrument being primed by any related lien), (ii) the contested
payment shall be less than $10,000 in the aggregate and (iii) Borrower diligently pursues its contest rights in full accordance
with this Section 4.16(b)), at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in
good faith and with due diligence, the validity of any Work Charge, the applicability of any Work Charge to Borrower or to any
Individual Property or any alleged non-payment of any Work Charge and defer paying the same, provided that (i) no Event of Default
has occurred and is continuing; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions
of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted
in accordance with all applicable Legal Requirements; (iii) neither the applicable Individual Property nor any part thereof or
interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall promptly
upon final determination thereof pay (or cause to be paid) any such contested Work Charge determined to be valid, applicable or
unpaid; (v) such proceeding shall suspend the collection of such contested Work Charge from the applicable Individual Property
or Borrower shall have paid the same (or shall have caused the same to be paid or bonded over) under protest; and (vi) Borrower
shall furnish (or cause to be furnished) such security as may be required in the proceeding, or as may be reasonably requested
by Lender, to insure payment of such Work Charge, together with all interest and penalties payable in connection therewith. Lender
may apply any such security or part thereof, as necessary to pay for such Work Charge at any time when, in the judgment of Lender,
the validity, applicability or non-payment of such Work Charge is finally established or the applicable Individual Property (or
any part thereof or interest therein) shall be in present danger of being sold, forfeited, terminated, cancelled or lost.

 

Section 4.17.      Performance
of Other Agreements. Borrower shall observe and perform each and every term to be observed or performed by Borrower pursuant
to the terms of: (a) any agreement or recorded instrument affecting or pertaining to the Property and any amendments, modifications
or changes thereto (to the extent that Borrower’s failure to so observe and/or perform each and every term and/or agreement
would reasonably be expected to result in, or constitute, a Material Adverse Effect) and (b) any agreement or recorded instrument
given by Borrower to Lender for the purpose of further securing the Debt.

 

Section 4.18.      Debt Cancellation.
Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of Leases in accordance herewith)
owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business.

 

Section 4.19.      ERISA.

 

(a)           Borrower shall not
engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender
of any of its rights hereunder or under the other Loan Documents) to be a non-exempt prohibited transaction under ERISA.

 

(b)           Borrower further covenants
and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Security Instrument,
as requested by Lender in its reasonable discretion, that (i) Borrower is not an “employee benefit plan” as defined
in Section 3(3) of ERISA, or other retirement arrangement, which is subject to Title I of ERISA or Section 4975 of the IRS Code,
or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to state statutes
regulating investments and fiduciary obligations with respect to governmental plans; and (iii) one or more of the following circumstances
is true:

 

    	 	- 56 -	 

     

    

(A)          Equity interests
in Borrower are publicly offered securities, within the meaning of 29 C.F.R. § 2510.3 101(b)(2);

 

(B)          Less
than 25 percent of each outstanding class of equity interests in Borrower are held by “benefit plan investors” within
the meaning of 29 C.F.R.§ 2510.3 101(f)(2); or

 

(C)          Borrower
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R
§ 2510.3 101(c) or (e) or an investment company registered under The Investment Company Act of 1940, as amended.

 

(c)           Borrower shall not
maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any member of Borrower’s “controlled
group of corporations” to maintain, sponsor, contribute to or become obligated to contribute to a “defined benefit
plan” or a “multiemployer pension plan”. The terms in quotes above are defined in Section 3.7 of this Agreement.

 

Section 4.20.      No Joint
Assessment. Borrower shall not suffer, permit or initiate the joint assessment of any Individual Property with (a) any other
real property constituting a tax lot separate from the applicable Individual Property, or (b) any portion of the applicable Individual
Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be
levied against such personal property shall be assessed or levied or charged to the applicable Individual Property.

 

Section 4.21.      Alterations.
Notwithstanding anything contained herein (including, without limitation, Article 8 hereof) to the contrary, Lender’s prior
approval shall be required in connection with any alterations to any Improvements (a) that may have a Material Adverse Effect,
(b) the cost of which (including any related alteration, improvement or replacement) is reasonably anticipated to exceed the applicable
Alteration Threshold or (c) that are structural in nature, which approval may be granted or withheld in Lender’s reasonable
discretion (not to be unreasonably withheld, conditioned or delayed, but subject in each case to REMIC Requirements). Notwithstanding
the foregoing or anything to the contrary contained herein, Lender’s consent shall not be required with respect to the Immediate
Repairs. If the total unpaid amounts incurred and to be incurred with respect to any alterations to the Improvements shall at any
time exceed the applicable Alteration Threshold, Borrower shall promptly deliver to Lender as security for the payment of such
excess amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (i) cash,
(ii) U.S. Obligations, (iii) other security acceptable to Lender, (provided that Lender shall have received a Rating Agency Confirmation
as to the form and issuer of same), or (iv) a completion bond (provided that Lender shall have received a Rating Agency Confirmation
as to the form and issuer of same). Such security shall be in an amount equal to the excess of the total unpaid amounts incurred
and to be incurred with respect to such alterations to the Improvements over the applicable Alteration Threshold.

 

    	 	- 57 -	 

     

    

Section 4.22.      Property
Document Covenants. Without limiting the other provisions of this Agreement and the other Loan Documents, Borrower shall (i)
promptly perform and/or observe, in all material respects, all of the covenants and agreements required to be performed and observed
by it under the Property Documents and do all things necessary to preserve and to keep unimpaired its material rights thereunder;
(ii) promptly notify Lender of any material default under the Property Documents of which it is aware; (iii) promptly deliver to
Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it
under the Property Documents; (iv) enforce the performance and observance, in all material respects, of all of the covenants and
agreements required to be performed and/or observed under the Property Documents in a commercially reasonable manner; (v) cause
the applicable Individual Property to be operated, in all material respects, in accordance with the Property Documents; and (vi)
not, without the prior written consent of Lender (which such consent shall not be unreasonably withheld, conditioned or delayed),
(A) enter into any new Property Document or replace or execute modifications to any existing Property Documents or renew or extend
the same (exclusive of, in each case, any automatic renewal or extension in accordance with its terms), (B) surrender, terminate
or cancel the Property Documents, (C) reduce or consent to the reduction of the term of the Property Documents, (D) increase or
consent to the increase of the amount of any charges under the Property Documents, (E) otherwise modify, change, supplement, alter
or amend, or waive or release any of its rights and remedies under, the Property Documents in any material respect or (F) following
the occurrence and during the continuance of an Event of Default, exercise any rights, make any decisions, grant any approvals
or otherwise take any action under the Property Documents.

 

Section 4.23.      Master
Lease Covenants. Without limitation of the other provisions herein (including, without limitation, Sections 4.14 and 4.22 hereof),
Borrower makes the following covenants with respect to the Master Lease:

 

(a)           Borrower shall, at
its sole cost and expense, promptly and timely perform and observe all the terms, covenants and conditions required to be performed
and observed by Borrower under the Master Lease (including, but not limited to, the payment of all rent, additional rent, percentage
rent and other charges required to be paid under the Master Lease).

 

(b)           If Borrower shall be
in default under the Master Lease, Borrower hereby grants Lender the right (but not the obligation) to cause the default or defaults
under the Master Lease to be remedied and otherwise exercise any and all rights of Borrower under the Master Lease, as may be necessary
to prevent or cure any default provided such actions are necessary to protect Lender’s interest under the Loan Documents,
and Lender shall have the right to enter all or any portion of the Property, at such times and in such manner as Lender deems necessary,
to prevent or to cure any such default.

 

(c)           The actions or payments
of Lender to cure any default by Borrower under the Master Lease shall not remove or waive, as between Borrower and Lender, the
default that occurred under this Agreement by virtue of the default by Borrower under the Master Lease. All sums expended by Lender
to cure any such default shall be paid by Borrower to Lender, upon demand, with interest on such sum at the rate set forth in this
Agreement from the date such sum is expended to and including the date the reimbursement payment is made to Lender. All such indebtedness
shall be deemed to be secured by the Security Instrument.

 

    	 	- 58 -	 

     

    

(d)          Borrower shall notify
Lender promptly in writing of the occurrence of any material default under the Master Lease, and the receipt by Borrower of any
notice (written or otherwise) under the Master Lease noting or claiming the occurrence of any default under the Master Lease. Borrower
shall promptly deliver to Lender a copy of any such written notice of default.

 

(e)          Within ten (10) days
after receipt of written demand by Lender, Borrower shall furnish to Lender an estoppel certificate relating to the Master Lease
duly executed by Borrower stating the date through which rent has been paid and whether or not there are any defaults thereunder
and specifying the nature of such claimed defaults, if any.

 

(f)           Borrower shall promptly
execute, acknowledge and deliver to Lender such instruments as may reasonably be required to permit Lender to cure any default
under the Master Lease or permit Lender to take such other action required to enable Lender to cure or remedy the matter in default
and preserve the security interest of Lender under the Loan Documents with respect to the Property. Borrower irrevocably appoints
Lender as its true and lawful attorney-in- fact to do, in its name or otherwise, any and all acts and to execute any and all documents
that are necessary to preserve any rights of Borrower under or with respect to the Master Lease, including, without limitation,
the right to effectuate any extension or renewal of the Master Lease, or to preserve any rights of Borrower whatsoever in respect
of any part of the Master Lease (and the above powers granted to Lender are coupled with an interest and shall be irrevocable).

 

(g)          Notwithstanding anything
to the contrary contained in this Agreement with respect to the Master Lease:

 

(i)           The lien
of the Security Instrument attaches to all of Borrower’s rights and remedies at any time arising under or pursuant to Subsection
365(h) of the Bankruptcy Code, including, without limitation, all of Borrower’s rights, as debtor, to remain in possession
of the Property.

 

(ii)          Borrower
shall not, without Lender’s written consent, elect to treat the Master Lease as terminated under subsection 365(h)(l) of
the Bankruptcy Code. Any such election made without Lender’s prior written consent shall be void.

 

(iii)         As security
for the Debt, Borrower unconditionally assigns, transfers and sets over to Lender all of Borrower’s claims and rights to
the payment of damages arising from any rejection of the Master Lease under the Bankruptcy Code. Lender and Borrower shall proceed
jointly or in the name of Borrower in respect of any claim, suit, action or proceeding relating to the rejection of the Master
Lease, including, without limitation, the right to file and prosecute any proofs of claim, complaints, motions, applications, notices
and other documents in any case in respect of Borrower under the Bankruptcy Code. This assignment constitutes a present, irrevocable
and unconditional assignment of the foregoing claims, rights and remedies, and shall continue in effect until all of the Debt shall
have been satisfied and discharged in full. Any amounts received by Lender or Borrower as damages arising out of the rejection
of the Master Lease as aforesaid shall be applied to all costs and expenses of Lender (including, without limitation, reasonable
attorney’s fees and costs) incurred in connection with the exercise of any of its rights or remedies in accordance with the
applicable provisions of this Agreement.

 

    	 	- 59 -	 

     

    

(iv)         If, pursuant
to subsection 365(h) of the Bankruptcy Code, Borrower seeks to offset, against the rent reserved in the Master Lease, the amount
of any damages caused by the nonperformance by Borrower of any of its obligations thereunder after the rejection of the Master
Lease under the Bankruptcy Code, then Borrower shall not effect any offset of the amounts so objected to by Lender. If Lender has
failed to object as aforesaid within ten (10) days after notice from Borrower in accordance with the first sentence of this subsection,
Borrower may proceed to offset the amounts set forth in Borrower’s notice.

 

(v)          If any action,
proceeding, motion or notice shall be commenced or filed in respect of Borrower of all or any part of the Property in connection
with any case under the Bankruptcy Code, Lender and Borrower shall cooperatively conduct and control any such litigation with counsel
agreed upon between Borrower and Lender in connection with such litigation. Borrower shall, upon demand, pay to Lender all costs
and expenses (including reasonable attorneys’ fees and costs) actually paid or actually incurred by Lender in connection
with the cooperative prosecution or conduct of any such proceedings. All such costs and expenses shall be secured by the lien of
the Security Instrument.

 

(vi)        Borrower
shall promptly, after obtaining knowledge of such filing, notify Lender orally of any filing by or against Borrower of a petition
under the Bankruptcy Code. Borrower shall thereafter promptly give written notice of such filing to Lender, setting forth any information
available to Borrower as to the date of such filing, the court in which such petition was filed, and the relief sought in such
filing. Borrower shall promptly deliver to Lender any and all notices, summonses, pleadings, applications and other documents received
by Borrower in connection with any such petition and any proceedings relating to such petition.

 

(h)           Borrower shall not,
without Lender’s written consent, fail to exercise any option or right to renew or extend the term of the Master Lease in
accordance with the terms of the Master Lease, and shall give immediate written notice to Lender and shall execute, acknowledge,
deliver and record any document requested by Lender to evidence the lien of the Security Instrument on such extended or renewed
lease term; provided, however, Borrower shall not be required to exercise any particular such option or right to renew or extend
to the extent Borrower shall have received the prior written consent of Lender (which consent may be withheld by Lender in its
sole and absolute discretion) allowing Borrower to forego exercising such option or right to renew or extend. If Borrower shall
fail to exercise any such option or right as aforesaid, Lender may exercise the option or right as Borrower’s agent and attorney-in-fact
as provided above in Lender’s own name or in the name of and on behalf of a nominee of Lender, as Lender may determine in
the exercise of its sole and absolute discretion.

 

    	 	- 60 -	 

     

    

(i)             Borrower shall not
waive, excuse, condone or in any way release or discharge any Borrower from their respective material obligations, covenant and/or
conditions under the Master Lease, in each case, without the prior written consent of Lender.

 

(j)             Borrower shall not,
without Lender’s prior written consent, surrender, terminate, forfeit, or suffer or permit the surrender, termination or
forfeiture of, or change, modify or amend in a material or adverse manner, the Master Lease. Consent to one amendment, change,
agreement or modification shall not be deemed to be a waiver of the right to require consent to other, future or successive amendments,
changes, agreements or modifications. No Borrower may acquire another Borrower’s interest in any Master Lease without Lender’s
prior written consent in each instance.

 

(k)           Notwithstanding the
foregoing or anything to the contrary contained herein or in any other Loan Document, any Lease executed on or after the date hereof
shall expressly provide that in the event the Master Lease is terminated, the tenant under such Lease shall automatically attorn
to the landlord under the Master Lease as landlord under such Lease.

 

(l)             Borrower hereby acknowledges
and agrees that in the event that any of the terms and conditions of the Master Lease and the terms of this Section 4.23 shall
conflict or shall otherwise be inconsistent in any respect, the terms and conditions of this Section 4.23 shall control and govern.

 

Section 4.24.       Franchise Agreement Covenants.

 

(a)           Borrower shall cause the Property to be operated, “flagged” and branded pursuant to the Franchise Agreement. Borrower
shall not change the “flag” or other brand applicable to the Property, enter into any Hotel Operating Agreement with
respect to the Property, replace or terminate (or permit to be replaced or terminated) Franchisor or the Franchise Agreement or
consent to the assignment of Franchisor’s rights under the Franchise Agreement, in each case, unless (i) no Event of Default
has occurred and is continuing, (ii) Lender receives at least sixty (60) days prior written notice of the same, (iii) after giving
effect to same, the Property will be “flagged”, operated and branded pursuant to a Qualified Franchise Agreement, (iv)
the applicable New Franchisor is a Qualified Franchisor engaged pursuant to a Qualified Franchise Agreement, (v) all Hotel Operating
Agreements are subsumed within the applicable Qualified Franchise Agreement or otherwise collectively approved hereunder in connection
with the approval of the applicable Qualified Franchise Agreement, (vi) the same will not result in a Property Document Event or
a default under any Lease or management agreement, (vii) Borrower obtains Lender’s prior written approval in connection therewith
(which such approval may be granted or withheld in Lender’s reasonable discretion and may be conditioned upon Lender’s
receipt of a Rating Agency Confirmation) and (viii) all other applicable conditions related thereto contained herein and in the
other Loan Documents (including, without limitation, under the other provisions of this Section 4.24) are satisfied. Borrower shall
not permit the existing Franchise Agreement to be terminated until a New Franchisor is engaged for the Property in accordance with
the applicable terms and conditions hereof and of the other Loan Documents.

 

    	 	- 61 -	 

     

    

(b)           With respect to any
Franchise Agreement, Borrower shall (i) cause the Property to be “flagged”, operated and branded pursuant to the same;
(ii) promptly perform and observe all of the covenants required to be performed and observed by it under such Franchise Agreement
and do all things reasonably necessary to preserve and to keep unimpaired its material rights thereunder; (iii) promptly notify
Lender of any default under such Franchise Agreement or of any termination, cancellation or other modification thereof; (iv) promptly
deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, report, estimate and other material
notices, in each case, received by it under such Franchise Agreement (including, without limitation, notices of default, notices
concerning any of the trademarks licensed under such Franchise Agreement and notices requiring Borrower to perform any repairs,
alterations, improvements or remodeling to the Property); (v) promptly enforce the performance and observance of all of the material
covenants required to be performed and observed by the Franchisor under such Franchise Agreement; and (vi) deliver any franchisor
comfort letters reasonably requested by Lender in form and substance reasonably acceptable to Lender. In addition, Borrower shall
not, without Lender’s prior written consent (A) surrender, terminate or cancel any Franchise Agreement, reject any Franchise
Agreement in any proceeding under Creditors Rights Laws, consent to any assignment of the Franchisor’s interest under any
Franchise Agreement or otherwise replace a Franchisor or any Franchise Agreement; provided, however, that Borrower may replace
Franchisor, enter into a new Franchise Agreement and/or consent to the assignment of a Franchisor’s interest under any Franchise
Agreement, in each case, in accordance with the applicable terms and conditions hereof and of the other Loan Documents; (B) reduce
or consent to the reduction of the term of any Franchise Agreement; (C) increase or consent to the increase of the amount of any
charges under any Franchise Agreement; (D) otherwise modify, change, supplement, alter, renew, extend or amend, or waive or release
any of its rights and remedies under, any Franchise Agreement; or (E) suffer or permit the occurrence of continuance a default
beyond any applicable cure period under any Franchise Agreement. Upon request, Borrower shall promptly furnish Lender with a true,
correct and complete copy of the then existing Franchise Agreement (including, without limitation, any amendments, supplements
or other modifications thereof).

 

(c)            If (i) a Franchise
Agreement Trigger Period exists, (ii) a Franchisor shall become bankrupt or insolvent, (iii) an Event of Default shall have occurred
and be continuing or (iv) there exists a default by a Franchisor beyond all applicable notice and cure periods under any Franchise
Agreement (each of the foregoing, collectively, the “Franchise Triggers”), Borrower shall, at the request of
Lender, terminate the applicable Franchise Agreement then in effect and cause the applicable aspects of the Property to be “flagged”,
operated and branded pursuant to a new Qualified Franchise Agreement with a New Franchisor that is a Qualified Franchisor, it being
understood and agreed that the franchise fee for such Qualified Franchisor shall not exceed then prevailing market rates.

 

(d)           Without limitation
of the foregoing or anything else contained in this Section, (i) any renewal, extension or replacement of a Franchise Agreement
shall be with a Qualified Franchisor pursuant to a Qualified Franchise Agreement and (ii) if any Franchise Agreement expires or
is terminated, comes up for renewal or extension, ceases to be in full force or effect or is for any other reason no longer in
effect (including, without limitation, in connection with any Sale or Pledge), Borrower shall, concurrently with such expiration,
termination or other cessation, enter into, as applicable, a Qualified Franchise Agreement with a Qualified Franchisor (or a renewal
or extension of an existing Qualified Franchise Agreement with an existing Qualified Franchisor); provided, that, notwithstanding
the foregoing, such Qualified Franchisor shall be, if opted by Lender, (A) a new Qualified Franchisor under a new Qualified Franchise
Agreement and (B) to the extent a Trigger Period is continuing, in each case, selected by Lender.

 

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(e)            By no later than the
earlier of (i) twelve (12) months prior to the then current expiration date of the Franchise Agreement or (ii) one hundred twenty
(120) days prior to the latest date a renewal or extension notice is permitted to be sent under the Franchise Agreement, Borrower
shall have (1)(A) renewed or extended the existing Franchise Agreement or (B) applied for a Qualified Franchise Agreement for the
Property with a Qualified Franchisor and (2) obtained Lender’s prior written consent to the foregoing.

 

(f)            As conditions precedent
to any engagement of a New Franchisor hereunder, (i) New Franchisor shall execute and deliver to Lender an estoppel and comfort
letter, in each case, in form and substance reasonably acceptable to Lender, (ii) to the extent that such New Franchisor is an
Affiliated Franchisor, Borrower shall deliver to Lender (A) a New Non- Consolidation Opinion with respect to such New Franchisor
and new franchise agreement and (B) an assignment and subordination of such new franchise agreement in favor of Lender duly executed
by Borrower and such New Franchisor in form and substance reasonably acceptable to Lender (which such assignment and subordination
shall, without limitation, (1) provide Lender the right to directly (or to require Borrower to) terminate the New Franchise Agreement
upon the occurrence of any Franchise Trigger without payment of any Applicable Termination Fees and (2) be in a form and provide
such assurances as may, in each case, be necessary or desirable to assign to Lender and grant Lender a perfected a security interest
in, in each case, all Permits and Intellectual Property applicable to such New Franchise Agreement) and (iii) if requested by Lender,
Borrower shall deliver to Lender evidence that the engagement of such New Franchisor will not result in a Property Document Event
or a default under any Lease or management agreement.

 

(g)           Notwithstanding anything
to the contrary contained herein (but without limitation of any Lender approval or consent rights or Rating Agency Confirmation
requirements set forth herein), to the extent that a Trigger Period exists and any replacement of any Franchise Agreement with
respect to the Property is, in each case, required pursuant to the terms hereof or is otherwise exercised as a right hereunder,
Lender shall, in each case, have the option to select the replacement Franchise Agreement with respect to the Property.

 

(h)           Borrower shall provide
Lender prior written notice of any PIP required in connection with any Franchise Agreement (including, without limitation, any
renewal, extension or replacement thereof). Notwithstanding anything herein to the contrary, Borrower shall not agree to any PIP
without Lender’s prior written consent thereto (which such consent shall not be unreasonably be withheld, but may be conditioned
upon, among other things, Lender’s engagement, at the sole cost and expense of Borrower, of third party consultant(s) to
review and approve the PIP). Without limiting the foregoing approval rights of Lender, Borrower’s deposit of the corresponding
PIP Deposit as and to the extent required under Section 8.9 hereof shall be deemed an additional condition precedent to Lender
granting any approval over any PIP or other matters relating to any Franchise Agreement (including, without limitation, any approval
over any renewal or replacement thereof).

 

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(i)            Borrower shall complete
and pay for in full any PIP in a good, workmanlike and lien free manner within the time-frame set forth in the PIP. To the extent
that Borrower fails to perform any obligation under the Franchise Agreement (including, without limitation, any obligation to perform
any PIP), Borrower hereby grants Lender the right, as Borrower’s attorney- in-fact (which power of attorney shall be irrevocable
and shall be deemed to be coupled with an interest), to perform any such obligation and, if required, to enter the Property in
order to perform the same. The aforesaid right of Lender shall be exercisable by Lender at Lender’s option and in Lender’s
sole discretion. Any exercise by Lender of the aforesaid right shall be deemed exercised in accordance with the applicable terms
and conditions hereof and of the other Loan Documents.

 

(j)            Notwithstanding anything
hereon to the contrary, (i) following the occurrence and during the continuance of an Event of Default, Borrower shall not exercise
any rights, make any decisions, grant any approvals or otherwise take any action under the Franchise Agreement without the prior
consent of Lender, which consent may be withheld in Lender’s sole discretion and (ii) (A) Borrower’s payment of all
Applicable Termination Fees shall be deemed an additional condition precedent to any termination or other replacement of any Franchise
Agreement hereunder, (B) Borrower shall, in all events, pay all Applicable Termination Fees as and when due and (C) Borrower paying
(and providing Lender evidence of payment reasonably acceptable to Lender) all applicable costs and expenses incurred in connection
with Borrower’s satisfying any requirement or complying with any covenant under this Section 4.24 shall be an additional
condition precedent to satisfying such requirement or complying with such covenant, as applicable, and no such covenant or requirement
shall be deemed satisfied or complied with if such costs and expenses have not been paid or if Lender has not received reasonably
acceptable evidence of payment thereof.

 

(k)           The terms and provisions
of this Section shall not be deemed to limit the other terms and conditions hereof or of the other Loan Documents. Notwithstanding
anything to the contrary contained herein, to the extent that any of the Hotel Operating Agreements are contained or subsumed in,
incorporated by reference in or otherwise provided or addressed in any Management Agreement or other similar agreement, such Management
Agreement or other agreement shall (i) be deemed to be a Franchise Agreement for all purposes hereunder (including, without limitation,
under this Section 4.24), (ii) be subject to all terms and conditions set forth herein and in the other Loan Documents relating
to the Franchise Agreement and (iii) shall also be subject to each other applicable provision contained herein and the other Loan
Documents (including, without limitation, and to the extent applicable, Section 4.15 hereof). In connection with any Lender approval
rights under this Section 4.24, Borrower shall consult with and provide Lender with such information and documentation as Lender
may reasonably request, which such consultation, information and documentation shall be provided within a reasonable period following
Lender’s request therefor.

 

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Section 4.25.       Permits; Intellectual Property.

 

(a)           Without limiting the
other provisions of this Agreement and the other Loan Documents, Borrower shall keep all Permits (including, without limitation,
any liquor licenses and any trademark or other Permits applicable to any Franchise Agreement) in full force and effect and, during
the continuance of an Event of Default, Borrower will, at the cost of Borrower, and without expense to Lender, execute, acknowledge
and deliver all such writings and take any all further actions necessary or reasonably requested by Lender to transfer any Permits
(including, without limitation, any liquor licenses and any trademark or other Permits applicable to any Franchise Agreement) with
respect to the Property into the name of Lender or its designee. To the extent any such Permits (including, without limitation,
any liquor licenses and any trademark or other Permits applicable to any Franchise Agreement) cannot be so transferred to Lender
or its designee under applicable law, Borrower shall continue to hold and maintain such Permits in full force and effect for the
benefit of Lender until such time as Lender can obtain such Permits in its own name or the name of a designee. Without limiting
the foregoing, Borrower shall execute such interim management, leasing or other agreements (which shall be in form and substance
(a) satisfactory to Lender and the applicable licensing authorities and (b) reasonably satisfactory to Borrower, which such approval
by Borrower shall not be unreasonably withheld, conditioned or delayed) as may be required for Lender to continue operations at
the Property pursuant to such Permits until such Permits are transferred to, or are otherwise obtained by, Lender or its designee.
Borrower constitutes and appoints Lender its true and lawful attorney-in-fact with full power of substitution to complete or undertake
any action required of Borrower under this Section in the name of Borrower in the event Borrower fails to do the same; provided,
however, Lender shall not exercise such power of attorney without five (5) Business Days prior written notice to Borrower.

 

(b)           Borrower shall keep
and maintain all Intellectual Property relating to the use or operation of the Property and all Intellectual Property (other than
any Intellectual Property used by Borrower pursuant to any Franchise Agreement entered into in accordance with the applicable terms
and conditions hereof) shall be held by and (if applicable) registered in the name of Borrower. Borrower shall not transfer or
let lapse any material Intellectual Property without Lender’s prior consent. Except to the extent the same is required to
be maintained by an unaffiliated Franchisor pursuant to the Franchise Agreement, any website with respect to the Property shall
be maintained by or on behalf of Borrower and any such website shall be registered in the name of Borrower. Borrower shall not
transfer any such website (unless the same is maintained any controlled by an unaffiliated Franchisor) without Lender’s prior
consent.

 

ARTICLE 5

 

ENTITY COVENANTS

 

Section 5.1.         Single
Purpose Entity/Separateness.

 

(a)           Each
Borrower has not and will not:

 

(i)          engage
in any business or activity other than the ownership, operation and maintenance of the applicable Individual Property, and activities
incidental thereto;

 

    	 	- 65 -	 

     

    

(ii)         acquire
or own any assets other than (A) the applicable Individual Property, and (B) such incidental Personal Property as may be necessary
for the ownership, leasing, maintenance and operation of such applicable Individual Property;

 

(iii)        merge into
or consolidate with any Person, or dissolve, terminate, liquidate in whole or in part, transfer or otherwise dispose of all or
substantially all of its assets or change its legal structure;

 

(iv)        fail to
observe all organizational formalities in all material respects, or fail to preserve its existence as an entity duly organized,
validly existing and in good standing (if applicable) under the applicable Legal Requirements of the jurisdiction of its organization
or formation, or amend, modify, terminate or fail to comply in all material respects with the provisions of its organizational
documents (provided, that, such organizational documents may be amended or modified to the extent that, in addition to the satisfaction
of the requirements related thereto set forth therein, Lender’s prior written consent (not to be unreasonably withheld, conditioned
or delayed) and, if required by Lender, a Rating Agency Confirmation are first obtained);

 

(v)         own any subsidiary,
or make any investment in, any Person (other than, with respect to any SPE Component Entity, in the applicable Borrower);

 

(vi)        commingle
its funds or assets with the funds or assets of any other Person;

 

(vii)       incur
any Indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) the Debt,
(B) trade and operational indebtedness incurred in the ordinary course of business with trade creditors, provided such indebtedness
is (1) unsecured, (2) not evidenced by a note, (3) on commercially reasonable terms and conditions, and (4) due not more than sixty
(60) days past the date incurred and paid on or prior to such date, and/or (C) Permitted Equipment Leases; provided however, the
aggregate amount of the indebtedness described in (B) and (C) shall not exceed at any time (I) with respect to the Persons constituting
Seattle Borrower (in the aggregate and not individually), two percent (2%) of the outstanding aggregate Allocated Loan Amount associated
with the Seattle Property and (II) with respect to the Persons constituting SLC Borrower (in the aggregate and not individually),
two percent (2%) of the outstanding aggregate Allocated Loan Amount associated with the SLC Property. No Indebtedness other than
the Debt may be secured (senior, subordinate or pari passu) by the Property;

 

(viii)      fail to
maintain all of its books, records, financial statements and bank accounts separate from those of any other Person (including,
without limitation, any Affiliates). Borrower’s assets have not and will not be listed as assets on the financial statement
of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its
Affiliates provided that (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness
of Borrower and such Affiliates and to indicate that Borrower’s assets and credit are not available to satisfy the debts
and other obligations of such Affiliates or any other Person and (ii) such assets shall be listed on Borrower’s own separate
balance sheet. Borrower has maintained and will maintain its books, records, resolutions and agreements as official records;

 

    	 	- 66 -	 

     

    

(ix)         enter into
any contract or agreement with any partner, member, shareholder, principal or Affiliate, except, in each case, upon terms and conditions
that are intrinsically fair and substantially similar to those that would be available on an arm’s-length basis with unaffiliated
third parties;

 

(x)          maintain
its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from
those of any other Person;

 

(xi)         assume or
guaranty the debts of any other Person, hold itself out to be responsible for the debts of any other Person, or otherwise pledge
its assets for the benefit of any other Person or hold out its credit as being available to satisfy the obligations of any other
Person;

 

(xii)        make
any loans or advances to any Person;

 

(xiii)       fail to
file its own tax returns (unless the applicable Borrower is permitted by law to file a joint tax return with its constituent owner(s)
and appropriate notation is made on such tax return to indicate such Borrower’s separate existence)

 

(xiv)       fail to
(A) hold itself out to the public and identify itself, in each case, as a legal entity separate and distinct from any other Person
and not as a division or part of any other Person, (B) conduct its business solely in its own name, (C) hold its assets in its
own name or (D) correct any known misunderstanding regarding its separate identity;

 

(xv)        fail to
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations (to the extent there exists sufficient cash flow from the applicable Individual Property
to do so);

 

(xvi)       without
the prior unanimous written consent of all of its partners, shareholders or members, as applicable, the prior unanimous written
consent of its board of directors or managers, as applicable, and the prior written consent of each Independent Director (regardless
of whether such Independent Director is engaged at the Borrower or SPE Component Entity level), (a) file or consent to the filing
of any petition, either voluntary or involuntary, to take advantage of any Creditors Rights Laws, (b) seek or consent to the appointment
of a receiver, liquidator or any similar official, (c) take any action that might cause such entity to become insolvent, (d) make
an assignment for the benefit of creditors or (e) take any Material Action with respect to Borrower or any SPE Component Entity
(provided, that, none of any member, shareholder or partner (as applicable) of Borrower or any SPE Component Entity or any board
of directors or managers (as applicable) of Borrower or any SPE Component Entity may vote on or otherwise authorize the taking
of any of the foregoing actions unless, in each case, there are at least one (1) Independent Director then serving in such capacity
in accordance with the terms of the applicable organizational documents and such Independent Director has consented to such foregoing
action);

 

    	 	- 67 -	 

     

    

(xvii)      fail to
allocate shared expenses (including, without limitation, shared office space) or fail to use separate stationery, invoices and
checks bearing its own name and not bearing the name of any other Person (provided, that, (A) business conducted on behalf of Borrower
by another Person under a business management services agreement entered into on commercially reasonable terms and conditions and
otherwise in accordance with the applicable terms and conditions hereof shall not be deemed to violate the foregoing so long as
the manager (or equivalent thereof) under such business management services agreement is required thereunder to hold itself out
as an agent of Borrower and Borrower enforces said obligation and (B) any such stationary, invoices or checks delivered solely
to Lender by Borrower may reference “Lightstone” or any derivation of the foregoing name and such reference will not
be deemed to violate the foregoing);

 

(xviii)     fail
to pay its own liabilities (including, without limitation, salaries of its own employees, if any) from its own funds or fail to
maintain a sufficient number of employees, if any, in light of its contemplated business operations (in each case to the extent
there exists sufficient cash flow from the applicable Individual Property to do so);

 

(xix)       acquire
obligations or securities of its partners, members, shareholders or other Affiliates, as applicable;

 

(xx)        identify
its partners, members, shareholders or other Affiliates, as applicable, as a division or part of it; or

 

(xxi)       violate
or cause to be violated the assumptions made with respect to Borrower and its principals in the Non-Consolidation Opinion or in
any New Non- Consolidation Opinion.

 

(b)           If Borrower is a partnership
or limited liability company (other than an Acceptable LLC), each general partner (in the case of a partnership) and at least one
member (in the case of a limited liability company) of Borrower, as applicable, shall be a corporation or an Acceptable LLC (each,
an “SPE Component Entity”) whose sole asset is its interest in Borrower. Each SPE Component Entity (i) will
at all times comply with each of the covenants, terms and provisions contained in Section 5.1(a)(iii) - (vi) (inclusive) and (viii)
– (xxi) (inclusive) and, if such SPE Component Entity is an Acceptable LLC, Section 5.1(c) and (d) hereof, as if such representation,
warranty or covenant was made directly by such SPE Component Entity; (ii) will not engage in any business or activity other than
owning an interest in Borrower; (iii) will not acquire or own any assets other than its partnership, membership, or other equity
interest in Borrower; (iv) will at all times continue to own no less than a 0.5% direct equity ownership interest in Borrower;
(v) will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation); and (vi) will
cause Borrower to comply with the provisions of this Section 5.1.

 

    	 	- 68 -	 

     

    

(c)           In the event Borrower
or any SPE Component Entity is an Acceptable LLC, the limited liability company agreement of Borrower or such SPE Component Entity
(as applicable) (the “LLC Agreement”) shall provide that (i) upon the occurrence of any event that causes the
last remaining member of Borrower or such SPE Component Entity (as applicable) (“Member”) to cease to be the
member of Borrower or such SPE Component Entity (as applicable) (other than (A) upon an assignment by Member of all of its limited
liability company interest in Borrower or such SPE Component Entity (as applicable) and the admission of the transferee in accordance
with the Loan Documents and the LLC Agreement, or (B) the resignation of Member and the admission of an additional member of Borrower
or such SPE Component Entity (as applicable) in accordance with the terms of the Loan Documents and the LLC Agreement), any person
acting as Independent Director of Borrower or such SPE Component Entity (as applicable) shall, without any action of any other
Person and simultaneously with the Member ceasing to be the member of Borrower or such SPE Component Entity (as applicable) automatically
be admitted to Borrower or such SPE Component Entity (as applicable) as a member with a 0% economic interest (“Special
Member”) and shall continue Borrower or such SPE Component Entity (as applicable) without dissolution and (ii) Special
Member may not resign from Borrower or such SPE Component Entity (as applicable) or transfer its rights as Special Member unless
(A) a successor Special Member has been admitted to Borrower or such SPE Component Entity (as applicable) as a Special Member in
accordance with requirements of Delaware law and (B) after giving effect to such resignation or transfer, there remains at least
one (1) Independent Director of such SPE Component Entity or Borrower (as applicable) in accordance with Section 5.2 below. The
LLC Agreement shall further provide that (i) Special Member shall automatically cease to be a member of Borrower or such SPE Component
Entity (as applicable) upon the admission to Borrower or such SPE Component Entity (as applicable) of the first substitute member,
(ii) Special Member shall be a member of Borrower or such SPE Component Entity (as applicable) that has no interest in the profits,
losses and capital of Borrower or such SPE Component Entity (as applicable) and has no right to receive any distributions of the
assets of Borrower or such SPE Component Entity (as applicable), (iii) pursuant to the applicable provisions of the limited liability
company act of the State of Delaware (the “Act”), Special Member shall not be required to make any capital contributions
to Borrower or such SPE Component Entity (as applicable) and shall not receive a limited liability company interest in Borrower
or such SPE Component Entity (as applicable), (iv) Special Member, in its capacity as Special Member, may not bind Borrower or
such SPE Component Entity (as applicable) and (v) except as required by any mandatory provision of the Act, Special Member, in
its capacity as Special Member, shall have no right to vote on, approve or otherwise consent to any action by, or matter relating
to, Borrower or such SPE Component Entity (as applicable) including, without limitation, the merger, consolidation or conversion
of Borrower or such SPE Component Entity (as applicable); provided, however, such prohibition shall not limit the obligations of
Special Member, in its capacity as Independent Director, to vote on such matters required by the Loan Documents or the LLC Agreement.
In order to implement the admission to Borrower or such SPE Component Entity (as applicable) of Special Member, Special Member
shall execute a counterpart to the LLC Agreement. Prior to its admission to Borrower or such SPE Component Entity (as applicable)
as Special Member, Special Member shall not be a member of Borrower or such SPE Component Entity (as applicable), but Special Member
may serve as an Independent Director of Borrower or such SPE Component Entity (as applicable).

 

    	 	- 69 -	 

     

    

(d)           The LLC Agreement shall
further provide that (i) upon the occurrence of any event that causes the Member to cease to be a member of Borrower or such SPE
Component Entity (as applicable) to the fullest extent permitted by law, the personal representative of Member shall, within ninety
(90) days after the occurrence of the event that terminated the continued membership of Member in Borrower or such SPE Component
Entity (as applicable) agree in writing (A) to continue Borrower or such SPE Component Entity (as applicable) and (B) to the admission
of the personal representative or its nominee or designee, as the case may be, as a substitute member of Borrower or such SPE Component
Entity (as applicable) effective as of the occurrence of the event that terminated the continued membership of Member in Borrower
or such SPE Component Entity (as applicable), (ii) any action initiated by or brought against Member or Special Member under any
Creditors Rights Laws shall not cause Member or Special Member to cease to be a member of Borrower or such SPE Component Entity
(as applicable) and upon the occurrence of such an event, the business of Borrower or such SPE Component Entity (as applicable)
shall continue without dissolution and (iii) each of Member and Special Member waives any right it might have to agree in writing
to dissolve Borrower or such SPE Component Entity (as applicable) upon the occurrence of any action initiated by or brought against
Member or Special Member under any Creditors Rights Laws, or the occurrence of an event that causes Member or Special Member to
cease to be a member of Borrower or such SPE Component Entity (as applicable).

 

Section 5.2.         Independent
Director.

 

(a)           The organizational
documents of each Borrower (to the extent such Borrower is a corporation or an Acceptable LLC) or the applicable SPE Component
Entity, as applicable, shall provide that at all times there shall be at least one duly appointed independent director or manager
of such entity (each, an “Independent Director”) who shall (I) not have been at the time of each such individual’s
initial appointment, and shall not have been at any time during the preceding five years, and shall not be at any time while serving
as Independent Director, (i) a shareholder (or other equity owner) of, or an officer, director (other than in its capacity as Independent
Director), partner, member or employee of, any Borrower, the applicable SPE Component Entity or any of their respective shareholders,
partners, members, subsidiaries or Affiliates, (ii) a customer of, or supplier to, or other Person who derives any of its purchases
or revenues from its activities with, any Borrower, the applicable SPE Component Entity or any of their respective shareholders,
partners, members, subsidiaries or Affiliates, (iii) a Person who Controls or is under common Control with any such shareholder,
officer, director, partner, member, employee supplier, customer or other Person, (iv) a member of the immediate family of any such
shareholder, officer, director, partner, member, employee, supplier, customer or other Person or (v) a trustee or similar Person
in any proceeding under Creditors Rights Laws involving any Borrower, the applicable SPE Component Entity or any of their respective
shareholders, partners, members, subsidiaries or Affiliates (II) shall have, at the time of their appointment, had at least three
(3) years’ experience in serving as an independent director and (III) be employed by, in good standing with and engaged by
Borrower in connection with, in each case, an Approved ID Provider. Borrower hereby represents that (i) Vcorp is an independent,
third party and is not affiliated with any Borrower Party and (ii) the Person(s) engaged as Independent Directors of each Borrower
as of the date hereof satisfy the requirements set forth herein.

 

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(b)           The organizational
documents of each Borrower and each SPE Component Entity shall further provide that (I) the board of directors or managers of Borrower
and each SPE Component Entity and the constituent equity owners of such entities (constituent equity owners, the “Constituent
Members”) shall not take any action set forth in Section 5.1(a)(xvi) or any other action which, under the terms of any
organizational documents of Borrower or any SPE Component Entity, requires the vote of the Independent Director unless, in each
case, at the time of such action there shall be at least one Independent Director engaged as provided by the terms hereof and such
Independent Director votes in favor of or otherwise consent to such action; (II) any resignation, removal or replacement of any
Independent Director shall not be effective without (1) prior written notice to Lender and the Rating Agencies (which such prior
written notice must be given on the earlier of five (5) days or three (3) Business Days prior to the applicable resignation, removal
or replacement) and (2) evidence that the replacement Independent Director satisfies the applicable terms and conditions hereof
and of the applicable organizational documents (which such evidence must accompany the aforementioned notice); (III) to the fullest
extent permitted by applicable law, including Section 18-1101(c) of the Act and notwithstanding any duty otherwise existing at
law or in equity, the Independent Director shall consider only the interests of the Constituent Members and Borrower and each SPE
Component Entity (including Borrower’s and each SPE Component Entity’s respective creditors) in acting or otherwise
voting on the matters provided for herein and in Borrower’s and each SPE Component Entity’s organizational documents
(which such fiduciary duties to the Constituent Members and Borrower and each SPE Component Entity (including Borrower’s
and each SPE Component Entity’s respective creditors), in each case, shall be deemed to apply solely to the extent of their
respective economic interests in Borrower or the applicable SPE Component Entity (as applicable) exclusive of (x) all other interests
(including, without limitation, all other interests of the Constituent Members), (y) the interests of other Affiliates of the Constituent
Members, Borrower and each SPE Component Entity and (z) the interests of any group of Affiliates of which the Constituent Members,
Borrower or any SPE Component Entity is a part)); (IV) other than as provided in subsection (III) above, the Independent Director
shall not have any fiduciary duties to any Constituent Members, any directors of Borrower or any SPE Component Entity or any other
Person; (V) the foregoing shall not eliminate the implied contractual covenant of good faith and fair dealing under applicable
law; (VI) to the fullest extent permitted by applicable law, including Section 18-1101(e) of the Act, an Independent Director shall
not be liable to Borrower, any SPE Component Entity, any Constituent Member or any other Person for breach of contract or breach
of duties (including fiduciary duties), unless the Independent Director acted in bad faith or engaged in willful misconduct; and
(VII) except as provided in the foregoing subsections (III) through (VI), the Independent Director shall, in exercising their rights
and performing their duties under the applicable organizational documents, have a fiduciary duty of loyalty and care similar to
that of a director of a business corporation organized under the General Corporation Law of the State of Delaware.

 

Section 5.3.        Change
of Name, Identity or Structure. Borrower shall not change (or permit to be changed) Borrower’s or any SPE Component Entity’s
(a) name, (b) identity (including its trade name or names), (c) principal place of business set forth on the first page of this
Agreement or (d) if not an individual, Borrower’s or any SPE Component Entity’s corporate, partnership or other structure
or state of formation, without, in each case, notifying Lender of such change in writing at least thirty (30) days prior to the
effective date of such change and, in the case of a change in Borrower’s or any SPE Component Entity’s structure or
state of formation, without first obtaining the prior written consent of Lender and, if required by Lender, a Rating Agency Confirmation
with respect thereto. Borrower shall execute and deliver to Lender, prior to or contemporaneously with the effective date of any
such change, any financing statement or financing statement change reasonably required by Lender to establish or maintain the validity,
perfection and priority of the security interest granted herein. At the reasonable request of Lender, Borrower shall execute a
certificate in form satisfactory to Lender listing the trade names under which Borrower or the applicable SPE Component Entity
intends to operate the applicable Individual Property, and representing and warranting that Borrower or the applicable SPE Component
Entity does business under no other trade name with respect to the applicable Individual Property.

 

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Section 5.4.         Business
and Operations. Borrower will continue to engage in the businesses now conducted by it as and to the extent the same are necessary
for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will remain
in good standing under the laws of the State and each other applicable jurisdiction in which the Property is located, in each case,
as and to the extent the same are required for the ownership, maintenance, management and operation of the Property.

 

Section 5.5.         Recycled
Entity. Borrower hereby represents and warrants to Lender that Borrower has not, since its formation: (a) failed to be duly
formed, validly existing, and in good standing in the applicable jurisdiction(s) of its formation and the State; (b) had any judgments
or liens of any nature against it except for (i) tax liens not yet delinquent and (ii) judgments which have been satisfied in full;
(c) failed to comply in all material respects with all laws, regulations, and orders applicable to it or failed to receive all
Permits necessary for it to operate; (d) been involved in any dispute with any taxing authority which is unresolved as of the Closing
Date or failed to pay all taxes owed prior to the delinquency thereof (or, if later, then with all applicable penalties, interest
and other sums due in connection therewith); (e) except as specifically disclosed to Lender in connection with the closing of the
Loan, ever been party to any lawsuit, arbitration, summons, or legal proceeding that is still pending or that resulted in a judgment
against it that has not been paid in full; (f) failed to comply with all separateness covenants contained in its organizational
documents since its formation; (g) had any material contingent or actual obligations not related to the Property; or (h) except
as expressly disclosed to Lender in connection with the closing of the Loan, amended, modified, supplemented, restated, replaced
or terminated its organizational documents (or consented to any of the foregoing).

 

ARTICLE 6

 

NO SALE OR ENCUMBRANCE

 

Section 6.1.         Transfer
Definitions. As used herein and in the other Loan Documents, “Restricted Party” shall mean Borrower, Sponsor,
Guarantor, any SPE Component Entity, any Affiliated Manager, any Affiliated Franchisor or any shareholder, partner, member or non-
member manager, or any direct or indirect legal or beneficial owner of Borrower, Sponsor, Guarantor, any SPE Component Entity,
any Affiliated Manager, any Affiliated Franchisor or any non-member manager; and a “Sale or Pledge” shall mean
a voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any options with
respect to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law
or otherwise, and whether or not for consideration or of record) of a legal or beneficial interest.

 

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Section 6.2.          No
Sale/Encumbrance.

 

(a)           It shall be an Event
of Default hereof if, without the prior written consent of Lender, a Sale or Pledge of the Property or any part thereof or any
legal or beneficial interest therein (including, without limitation, the Loan and/or Loan Documents) occurs, a Sale or Pledge of
an interest in any Restricted Party occurs and/or Borrower shall acquire any real property in addition to the real property owned
by Borrower as of the Closing Date (each of the foregoing, collectively, a “Prohibited Transfer”), other than
(i) pursuant to Leases of space in the Improvements to Tenants (other than Master Tenant) in accordance with the provisions of
Section 4.14 and (ii) as permitted pursuant to the express terms of this Article 6.

 

(b)           A Prohibited Transfer
shall include, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part
thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property
for other than actual, physical occupancy by a Tenant thereunder or a sale, assignment or other transfer of, or the grant of a
security interest in, Borrower’s right, title and interest in and to any (A) Leases or any Rents or (B) Property Documents;
(iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or
the creation or issuance of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general partnership
or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale
or Pledge of the partnership interest of any general or limited partner or any profits or proceeds relating to such partnership
interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company,
any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (or if no
managing member, any member) or the Sale or Pledge of the membership interest of any member or any profits or proceeds relating
to such membership interest; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge
of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests in a
Restricted Party or the revocation, rescission or termination of a Restricted Party; (vii) the removal of Manager (including, without
limitation, an Affiliated Manager), the resignation of an Affiliated Manager or the engagement of a New Manager, in each case,
other than in accordance with Section 4.15; (viii) any action for partition of the Property (or any portion thereof or interest
therein) or any similar action instituted or prosecuted by Borrower or by any other Person, pursuant to any contractual agreement
or other instrument or under applicable law (including, without limitation, common law) and/or any other action instituted by (or
at the behest of) Borrower or its Affiliates or consented to or acquiesced in by Borrower or its Affiliates which results in a
Property Document Event; (ix) the incurrence of any property-assessed clean energy loans or similar indebtedness with respect to
Borrower and/or the Property, including, without limitation, if such loans or indebtedness are made or otherwise provided by any
Governmental Authority and/or secured or repaid (directly or indirectly) by any taxes or similar assessments; (x) the removal or
the resignation of any Franchisor (including, without limitation, any Affiliated Franchisor), the engagement of any new franchisor,
any Hotel Operating Agreement being entered into or otherwise encumbering the Property, in each case, other than in accordance
with the applicable terms and conditions hereof; and/or (xi) any failure of the Property to be “flagged”, operated
and/or branded pursuant to the applicable Franchise Agreement.

 

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Section 6.3.         Permitted
Equity Transfers. Notwithstanding the restrictions contained in this Article 6, the following equity transfers shall be permitted
without Lender’s consent: (a) a transfer (but not a pledge) by devise or descent or by operation of law upon the death of
a Restricted Party or any member, partner or shareholder of a Restricted Party, (b) the transfer (but not the pledge), in one or
a series of transactions, of the stock, partnership interests or membership interests (as the case may be) in a Restricted Party,
(c) the sale, transfer or issuance of shares of common stock in any Restricted Party that is a publicly traded entity, provided
such shares of common stock are listed on the New York Stock Exchange or another nationally recognized stock exchange or (d) the
sale, transfer or issuance of shares of common stock in Lightstone Value Plus Real Estate Investment Trust III, Inc., a Maryland
corporation (provided, that, the foregoing provisions of clauses (a), (b), (c) and (d) above shall not be deemed to waive, qualify
or otherwise limit Borrower’s obligation to comply (or to cause the compliance with) the other covenants set forth herein
and in the other Loan Documents (including, without limitation, the covenants contained herein relating to ERISA matters)); provided,
further, that, with respect to the transfers listed in clauses (a), (b) and/or (d) above, (A) Lender shall receive not less than
thirty (30) days prior written notice of such transfers (provided, that, (I) for purposes of clarification, with respect to the
transfers contemplated in subsection (a) above, the aforesaid notice shall only be deemed to be required thirty (30) days prior
to the consummation of the applicable transfers made as a result of probate or similar process following such death (as opposed
to prior notice of the applicable death) and (II) no notice shall be required with respect to any transfer that (x) does not result
in a change to the organization chart delivered to Lender in connection with the origination of the Loan, (y) does not result in
any Person (together with its Affiliates) owning more than a ten percent (10%) direct and/or indirect interest in the aggregate
in Borrower that did not own said interest prior to consummation of the transfer and (z) does not cause a change in Control (whether
direct or indirect) in Borrower, Guarantor, any SPE Component Entity, and/or Sponsor); (B) no such transfers shall result in a
change in Control of Sponsor, Guarantor, Affiliated Manager or Affiliated Franchisor; (C) after giving effect to such transfers,
Sponsor shall (I) own at least a 51% direct or indirect equity ownership interest in each of each Borrower and each SPE Component
Entity; (II) Control each Borrower and each SPE Component Entity and (III) control the day-to-day operation of the Property; (D)
after giving effect to such transfers, the Property shall continue to be (I) managed by Manager or a New Manager approved in accordance
with the applicable terms and conditions hereof and (II) operated, “flagged” and branded pursuant to a Qualified Franchise
Agreement with a Qualified Franchisor; (E) in the case of the transfer of any direct equity ownership interests in Borrower or
in any SPE Component Entity, such transfers shall be conditioned upon continued compliance with the relevant provisions of Article
5 hereof; (F) in the case of (1) the transfer of the management of the Property (or any portion thereof) to a new Affiliated Manager
in accordance with the applicable terms and conditions hereof, (2) the transfer of the operation, “flagging” and/or
branding of the Property to a new Affiliated Franchisor in accordance with the applicable terms and conditions hereof, (3) the
addition and/or replacement of a Guarantor and/or Sponsor in accordance with the applicable terms and conditions hereof and of
the Guaranty or (4) the transfer of any equity ownership interests (I) directly in Borrower or in any SPE Component Entity, or
(II) in any Restricted Party whose sole asset is a direct or indirect equity ownership interest in Borrower or in any SPE Component
Entity, such transfers shall be conditioned upon delivery to Lender of a New Non-Consolidation Opinion addressing such transfer,
addition and/or replacement; (G) such transfers shall be conditioned upon Borrower’s ability to, after giving effect to the
equity transfer in question (I) remake the representations contained herein relating to ERISA matters (and, upon Lender’s
request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations effective as of
the date of the consummation of the applicable equity transfer) and (II) continue to comply with the covenants contained herein
relating to ERISA matters; (H) such transfers shall be permitted pursuant to the terms of the Property Documents; and (I) after
giving effect to such transfers, the Guarantor Control Condition shall continue to be satisfied. Upon request from Lender, Borrower
shall promptly provide Lender with (y) a revised version of the Organizational Chart reflecting any equity transfer consummated
in accordance with this Section 6.3 and (z) credit searches (in form, scope and substance and from a provider, in each case, reasonably
acceptable to Lender) with respect to any equity transfer consummated in accordance with this Section 6.3.

 

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Section 6.4.         Permitted
Property Transfer (Assumption).

 

(a)           Total Assumption.
Notwithstanding the foregoing provisions of this Article 6, at any time other than the sixty (60) days prior to and following any
Secondary Market Transaction, Lender shall not unreasonably withhold, condition or delay consent to a one-time transfer of the
Property in its entirety to, and the related assumptions of the Loan by, any Person (a “Transferee”) provided
that each of the following terms and conditions are satisfied:

 

(i)          no
Event of Default has occurred;

 

(ii)         Borrower
shall have (A) delivered written notice to Lender of the terms of such prospective transfer not less than forty-five (45) days
before the date on which such transfer is scheduled to close and, concurrently therewith, all such information concerning the proposed
Transferee as Lender shall reasonably require and (B) paid to Lender a non-refundable processing fee in the amount of $5,000. Lender
shall have the right to approve or disapprove the proposed transfer based on its then current underwriting and credit requirements
for similar loans secured by similar properties which loans are sold in the secondary market, such approval not to be unreasonably
withheld (it being acknowledged that Lender may withhold its consent to a Transfer contemplated by this Section 6.4 (and shall
not be deemed to be acting unreasonably) in the event that the proposed Transferee or any Constituent Owner of the proposed Transferee
that (together with its affiliates) Controls and/or owns more than a 49% direct and/or indirect interest in the Transferee shall:
(i) hold a tenancy-in-common interest in the Property after giving effect to the applicable Transfer, (ii) be a statutory trust
that is subject to limitations on its behavior pursuant to applicable Legal Requirements related to the tax code and/or (iii) be
a “crowdfunded entity” that is funded primarily (A) in reliance upon Regulation Crowdfunding promulgated by the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended and/or (B) though internet-mediated registries, platforms
or similar portals, mail-order subscriptions, benefit events and/or other similar methods). In determining whether to give or withhold
its approval of the proposed transfer, Lender shall consider the experience and track record of Transferee and its principals in
owning and operating facilities similar to the Property, the financial strength of Transferee and its principals, the general business
standing of Transferee and its principals and Transferee’s and its principals’ relationships and experience with contractors,
vendors, tenants, lenders and other business entities; provided, however, that, notwithstanding Lender’s agreement to consider
the foregoing factors in determining whether to give or withhold such approval, such approval shall be given or withheld based
on what Lender determines to be commercially reasonable and, if given, may be given subject to such conditions as Lender may deem
reasonably appropriate;

 

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(iii)         Borrower
shall have paid to Lender, concurrently with the closing of such prospective transfer, (A) a non-refundable assumption fee in an
amount equal to one percent (1%) of the then outstanding principal balance of the Loan, (B) all out-of-pocket costs and expenses,
including reasonable attorneys’ fees, incurred by Lender in connection therewith and (C) all fees, costs and expenses of
all third parties and the Rating Agencies incurred in connection therewith;

 

(iv)        Transferee
assumes and agrees to pay the Debt as and when due subject to the provisions of Article 13 hereof and, prior to or concurrently
with the closing of such transfer, Transferee and its constituent partners, members, shareholders, Affiliates or sponsors as Lender
may require, shall execute, without any cost or expense to Lender, such documents and agreements as Lender shall reasonably require
to evidence and effectuate said assumption and an Affiliate of Transferee reasonably acceptable to Lender (but in all events able
to satisfy the net worth, liquidity and other similar covenants in the Guaranty (unless otherwise agreed to by Lender)) shall execute
a recourse guaranty and an environmental indemnity in form and substance identical to the Guaranty and Environmental Indemnity,
respectively, with such changes to each of the foregoing as may be reasonably required by Lender;

 

(v)         Borrower
and Transferee, without any cost to Lender, shall furnish any information requested by Lender for the preparation of, and shall
authorize Lender to file, new financing statements and financing statement amendments and other documents to the fullest extent
permitted by applicable Legal Requirements, and shall execute any additional documents reasonably requested by Lender;

 

(vi)        Borrower
shall have delivered to Lender, without any cost or expense to Lender, such endorsements to Lender’s Title Insurance Policy
insuring that fee simple or leasehold title to the Property, as applicable, is vested in Transferee (subject to Permitted Encumbrances),
hazard insurance endorsements or certificates and other similar materials as Lender may deem necessary at the time of the transfer,
all in form and substance satisfactory to Lender;

 

(vii)       Transferee
shall have furnished to Lender all appropriate papers evidencing Transferee’s organization and good standing, and the qualification
of the signers to execute the assumption of the Debt, which papers shall include certified copies of all documents relating to
the organization and formation of Transferee and of the entities, if any, which are partners or members of Transferee. Transferee
and such constituent partners, members or shareholders of Transferee (as the case may be), as Lender shall require, shall comply
with the covenants set forth in Article 5 hereof;

 

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(viii)      Transferee
shall assume the obligations of Borrower under any Management Agreement or provide a new management agreement with a new manager
which meets with the requirements of the Assignment of Management Agreement and Section 4.15 hereof and assign to Lender as additional
security such new management agreement;

 

(ix)         Transferee
shall furnish to Lender a REMIC Opinion, a New Non- Consolidation Opinion and an additional opinion of counsel satisfactory to
Lender and its counsel (A) that Transferee’s formation documents provide for the matters described in subparagraph (g) above,
(B) that the assumption of the Debt has been duly authorized, executed and delivered, and that the assumption agreement and the
other Loan Documents are valid, binding and enforceable against Transferee in accordance with their terms, (C) that Transferee
and any entity which is a controlling stockholder, member or general partner of Transferee, have been duly organized, and are in
existence and good standing and (D) with respect to such other matters as Lender may reasonably request;

 

(x)          if required
by Lender, Lender shall have received (A) a Rating Agency Confirmation with respect to such transfer and (B) evidence that (I)
the proposed transfer (1) is permitted pursuant to the Property Documents and (2) will not result in a Property Document Event
and (II) after giving effect to the applicable transfer, the Property will be operated, “flagged” and branded pursuant
to a Qualified Franchise Agreement with a Qualified Franchisor in accordance with the applicable terms and conditions hereof; and

 

(xi)         Borrower’s
obligations under the contract of sale pursuant to which the transfer is proposed to occur shall expressly be subject to the satisfaction
of the terms and conditions of this Section 6.4.

 

(b)          No Partial Assumptions.
Notwithstanding anything to the contrary contained herein or in any other Loan Document, partial assumptions of the Loan shall
not be permitted.

 

Section 6.5.        Lender’s
Rights. Lender reserves the right to condition the consent to a Prohibited Transfer requested hereunder upon (a) a modification
of the terms hereof and on assumption of this Agreement and the other Loan Documents as so modified by the proposed Prohibited
Transfer, (b) payment of a transfer fee of 1% of outstanding principal balance of the Loan and all of Lender’s expenses incurred
in connection with such Prohibited Transfer, (c) receipt of a Rating Agency Confirmation with respect to the Prohibited Transfer,
(d) the proposed transferee’s continued compliance with the covenants set forth in this Agreement, including, without limitation,
the covenants in Article 5, (e) receipt of a New Non-Consolidation Opinion with respect to the Prohibited Transfer and/or (f) such
other conditions and/or legal opinions as Lender shall determine in its sole discretion to be in the interest of Lender. All expenses
incurred by Lender shall be payable by Borrower whether or not Lender consents to the Prohibited Transfer. Lender shall not be
required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the
Debt immediately due and payable upon a Prohibited Transfer without Lender’s consent. This provision shall apply to every
Prohibited Transfer, whether or not Lender has consented to any previous Prohibited Transfer.

 

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Section 6.6.        Economic
Sanctions, Anti-Money Laundering and Transfers. Borrower shall (and shall cause each Borrower Party and their respective Affiliates
to) (a) at all times comply with the representations and covenants contained in Sections 3.29 and 3.30 such that the same remain
true, correct and not violated or breached and (b) not permit a Prohibited Transfer to occur and shall cause the ownership requirements
specified in this Article 6 (including, without limitation, those stipulated in Section 6.3 hereof) to be complied with at all
times. Borrower hereby represents that, other than in connection with the Loan, the Loan Documents and any Permitted Encumbrances,
as of the date hereof, there exists no Sale or Pledge of (i) the Property or any part thereof or any legal or beneficial interest
therein or (ii) any interest in any Restricted Party. For purposes of clarification, references hereunder and/or under the other
Loan Documents to “equity ownership interest” or words of similar import shall be deemed to refer to the legal and/or
beneficial interests in a Person (as applicable); provided, that, when hereunder or under the other Loan Documents a specified
percentage of the aforesaid “equity ownership interest” (or words of similar import) in a Person is required to be
held, the same shall be deemed to refer to both the legal and beneficial interest in such Person.

 

ARTICLE 7

 

INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

 

Section 7.1.         Insurance.

 

(a)          Each Borrower shall
obtain and maintain, or cause to be obtained and maintained, insurance for each Borrower and each Individual Property providing
at least the following coverages:

 

(i)           insurance
with respect to the Improvements and the Personal Property insuring against any peril now or hereafter included within the classification
“All Risk” or “Special Perils” (including, without limitation, fire, lightning, windstorm, hail, terrorism
and similar acts of sabotage, explosion, riot, riot attending a strike, civil commotion, vandalism, aircraft, vehicles and smoke),
in each case (A) in an amount equal to 100% of the “Full Replacement Cost,” which for purposes of this Agreement shall
mean actual replacement value exclusive of costs of excavations, foundations, underground utilities and footings, with a waiver
of depreciation; (B) in an amount sufficient so that no co-insurance penalties shall apply; (C) providing for no deductible in
excess of $25,000 except as otherwise expressly and specifically permitted herein; (D) at all times insuring against at least those
hazards that are commonly insured against under a “special causes of loss” form of policy, as the same shall exist
on the date hereof, and together with any increase in the scope of coverage provided under such form after the date hereof; and
(E) providing coverage for contingent liability from Operation of Building Laws, Demolition Costs and Increased Cost of Construction
Endorsements together with an “Ordinance or Law Coverage” endorsement. The Full Replacement Cost shall be re-determined
from time to time (but not more frequently than once in any twelve (12) calendar months) at the request of Lender by an appraiser
or contractor designated and paid by Borrower and approved by Lender, or by an engineer or appraiser in the regular employ of the
insurer. After the first appraisal, additional appraisals may be based on construction cost indices customarily employed in the
trade. No omission on the part of Lender to request any such ascertainment shall relieve Borrower of any of its obligations under
this Subsection;

 

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(ii)          commercial
general liability insurance against all claims for personal injury, bodily injury, death or property damage occurring upon, in
or about the applicable Individual Property, including “Dram Shop” or other liquor liability coverage if alcoholic
beverages are sold, manufactured or distributed from the applicable Individual Property, such insurance (A) to be on the so-called
“occurrence” form with a general aggregate limit of not less than $2,000,000 and a per occurrence limit of not less
than $1,000,000, with no deductible or self insured retention in excess of $50,000; (B) to continue at not less than the aforesaid
limit until required to be changed by Lender in writing by reason of changed economic conditions making such protection inadequate;
and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if
any” basis; (3) independent contractors; (4) contractual liability for all insured contracts; (5) contractual liability covering
the indemnities contained in Article 13 hereof to the extent the same is available; and (6) acts of terrorism and similar acts
of sabotage;

 

(iii)         loss of
rents and/or business interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by
the insurance provided for in Subsection 7.1(a)(i), (iv) and (vi) through (viii); (C) in an amount equal to 100% of the projected
net operating income plus fixed expenses from the applicable Individual Property (on an actual loss sustained basis) for a period
continuing until the Restoration of the applicable Individual Property is completed; the amount of such business interruption/loss
of rents insurance shall be determined prior to the Closing Date and at least once each year thereafter based on Lender’s
determination of the projected net operating income plus fixed expenses from the applicable Individual Property for an twelve (12)
month period; and (D) containing an extended period of indemnity endorsement which provides that after the physical loss to the
Improvements and the Personal Property has been repaired, the continued loss of income will be insured until such income either
returns to the same level it was at prior to the loss, or the expiration of six (6) months from the date that the applicable Individual
Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire
prior to the end of such period. Notwithstanding anything to the contrary contained herein or in any other Loan Documents, to the
extent that insurance proceeds are payable to Lender pursuant to this Subsection (the “Rent Loss Proceeds”)
and Borrower is entitled to disbursement of Net Proceeds for Restoration in accordance with the terms hereof, (1) a Trigger Period
shall be deemed to exist and (2) such Rent Loss Proceeds shall be deposited by Lender in the Cash Management Account and disbursed
as provided in Article 9 hereof; provided, however, that (I) nothing herein contained shall be deemed to relieve Borrower of its
obligations to pay the obligations secured hereunder on the respective dates of payment provided for in the Note except to the
extent such amounts are actually paid out of the Rent Loss Proceeds and (II) in the event the Rent Loss Proceeds are paid in a
lump sum in advance and Borrower is entitled to disbursement of such Rent Loss Proceeds in accordance with the terms hereof, Lender
or Servicer shall hold such Rent Loss Proceeds in a segregated interest-bearing Eligible Account (which shall deemed to be included
within the definition of the “Accounts” hereunder) and Lender or Servicer shall estimate the number of months required
for Borrower to restore the damage caused by the applicable Casualty, shall divide the applicable aggregate Rent Loss Proceeds
by such number of months and shall disburse such monthly installment of Rent Loss Proceeds from such Eligible Account into the
Cash Management Account each month during the performance of such Restoration;

 

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(iv)        at all times
during which structural construction, repairs or alterations are being made with respect to the Improvements (A) owner’s
contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned
commercial general liability insurance policy; and (B) the insurance provided for in Subsection 7.1(a)(i) written in a so-called
builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to Subsection
7.1(a)(i), (3) including permission to occupy the applicable Individual Property, and (4) with an agreed amount endorsement waiving
co-insurance provisions;

 

(v)         workers’
compensation, subject to the statutory limits of the state in which the applicable Individual Property is located, and employer’s
liability insurance with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 for disease aggregate
in respect of any work or operations on or about the applicable Individual Property, or in connection with the applicable Individual
Property or its operation (if applicable);

 

(vi)        comprehensive
boiler and machinery insurance and equipment breakdown coverage, in each case, covering all mechanical and electrical equipment
and pressure vessels and boilers in an amount not less than their replacement cost or in such other amount as shall be reasonably
required by Lender;

 

(vii)       if any
portion of the Improvements is at any time located in an area identified by (A) the Federal Emergency Management Agency in the
Federal Register as an area having special flood hazards and/or (B) the Secretary of Housing and Urban Development or any successor
thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection
Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, or any successor law (the “Flood
Insurance Acts”), flood hazard insurance in an amount equal to the maximum limit of coverage available for the applicable
Individual Property under the Flood Insurance Acts (or such higher amount or other related and/or excess coverage as Lender may,
in each case, require in its sole discretion);

 

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(viii)      earthquake,
sinkhole and mine subsidence insurance, if required, in amounts equal to two times (2x) the probable maximum loss of the applicable
Individual Property as determined by Lender in its sole discretion and in form and substance satisfactory to Lender, provided that
the insurance pursuant to this Subsection (viii) shall be on terms consistent with the all risk insurance policy required under
Section 7.1(a)(i);

 

(ix)         umbrella
liability insurance in an amount not less than $20,000,000 per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above (including, without limitation, the permitted deductible set forth in subsection
(ii) above);

 

(x)          if applicable,
a blanket fidelity bond or crime/employee dishonesty coverage insuring against losses resulting from employee dishonesty in amounts
acceptable to Lender;

 

(xi)         motor vehicle
liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence,
including umbrella coverage, of One Million and No/100 Dollars ($1,000,000); and

 

(xii)        such other
insurance and in such amounts as (A) may be required pursuant to the terms of the Property Documents and (B) Lender from time to
time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar
to the applicable Individual Property located in or around the region in which the applicable Individual Property is located.

 

(b)           All insurance provided
for in Subsection 7.1(a) hereof shall be obtained under valid and enforceable policies (the “Policies” or in
the singular, the “Policy”), in such forms and, from time to time after the date hereof, in such amounts as
may be satisfactory to Lender, issued by financially sound and responsible insurance companies authorized and admitted to do business
in the state in which the applicable Individual Property is located and approved by Lender. The insurance companies must have a
general policy rating of A or better and a financial class of VIII or better by A.M. Best Company, Inc., or a claims paying ability/financial
strength rating of “A” (or its equivalent) or better by any one of the Rating Agencies (each such insurer shall be
referred to below as a “Qualified Insurer”). Not less than five (5) days prior to the expiration dates of the
Policies theretofore furnished to Lender pursuant to Subsection 7.1(a), Borrower shall deliver certified copies of the Policies
marked “premium paid” or accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the
“Insurance Premiums”), provided, however, that in the case of renewal Policies, Borrower may furnish Lender
with binders and Acord Form 28 Certificates therefor to be followed by the original Policies when issued. Borrower shall, upon
request from Lender, provide Lender with updated flood zone certifications for the Property (in form and substance acceptable to
Lender).

 

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(c)            The Policies may be
“blanket policies” covering multiple locations so long as any such “blanket policy” has been approved by
Lender and the coverages for the Property, Lender and Borrower provided thereunder otherwise comply with the provisions hereof.
In no event shall any such Policy which is a “blanket policy” provide any lesser coverage than if Borrower, Lender
and the Property were insured under a separate, stand-alone Policy.

 

(d)           All Policies of insurance
provided for or contemplated by Subsection 7.1(a) shall name Borrower as a named insured and, in the case of liability Policies
(except for the Policies referenced in Subsections 7.1(a)(v) and (xi)), shall name Lender as an additional insured, as their respective
interests may appear, and, in the case of property damage Policies (including, but not limited to, terrorism, rent loss, business
interruption, boiler and machinery, earthquake and flood insurance), such Policies shall contain a standard noncontributing mortgagee
clause in favor of Lender providing that the loss thereunder shall be payable to Lender.

 

(e)           All Policies of insurance
provided for in Subsection 7.1(a) shall contain clauses or endorsements to the effect that:

 

(i)           the following
shall in no way affect the validity or enforceability of the Policy insofar as Lender is concerned: (A) any act or negligence of
Borrower, of anyone acting for Borrower or of any other Person named as an insured, (B) any foreclosure or other similar exercise
of remedies and (C) the failure to comply with the provisions of the Policy which might otherwise result in a forfeiture of the
insurance or any part thereof;

 

(ii)          the Policy
shall not be materially changed (other than to increase the coverage provided thereby), terminated or cancelled without at least
30 days’ written notice to Lender, except ten (10) days’ notice for non-payment of premium;

 

(iii)         Lender
shall not be liable for any Insurance Premiums thereon or subject to any assessments or commissions thereunder and that the related
issuer(s) waive any related claims to the contrary;

 

(iv)        Lender shall,
at its option and with no obligation to do so, have the right to directly pay Insurance Premiums in order to avoid cancellation,
expiration and/or termination of the Policy due to non-payment of Insurance Premiums; and

 

(v)         with respect
to the property, rent loss/business interruption, commercial general liability and umbrella Policies required in Section 7.1(a)(i)
through (iii) and (ix), the Policies shall not exclude coverage for acts of terror or similar acts of sabotage.

 

(f)            By no later than five
(5) days following the expiration date of any Policies, Borrower shall furnish to Lender certificates of insurance evidencing the
amounts of insurance maintained in compliance herewith, of the risks covered by such insurance. Lender may, on its own accord,
verify the adequacy of such insurance by an independent insurance broker or appraiser acceptable to Lender. Without limitation
of the foregoing, Borrower shall also comply with the foregoing within fifteen (15) days of written request of Lender (which such
request shall be made no more frequently than once per calendar year (unless in connection with a Trigger Period or Secondary Market
Transaction)). Borrower shall promptly forward to Lender a copy of each written notice received by any Borrower Party of any modification,
reduction or cancellation of any of the Policies or of any of the coverages afforded under any of the Policies.

 

    	 	- 82 -	 

     

    

(g)           If at any time Lender
is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the
right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property, including,
without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and all expenses
incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower
to Lender upon demand and until paid shall be secured by the Security Instrument and shall bear interest at the Default Rate ((provided
Lender shall use commercially reasonable efforts to provide Borrower with advanced notice prior to taking such action unless Lender
is precluded by applicable Legal Requirements from doing so, Lender has a reasonable basis to believe that the insurance required
hereunder has lapsed or Lender determines in its reasonable discretion that it must take immediate action to adequately protect
its interest in the Property). Lender acknowledges that if it shall exercise its rights to obtain any insurance coverage pursuant
to this Section 7.1(g), Borrower, at its sole cost and expense, may cancel any of the policies obtained by Lender (the “Force
Placed Policies”) provided that Borrower simultaneously replaces the applicable Force Placed Policies with new Policies
which cover all of the risks that were covered by the applicable Force Placed Policies in accordance with the terms of this Article
7.

 

(h)           In the event of a foreclosure
of the Security Instrument or other transfer of title to any Individual Property (or any portion thereof) in extinguishment in
whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning the applicable
Individual Property (or any portion thereof) and all proceeds payable thereunder shall thereupon vest exclusively in Lender or
the purchaser at such foreclosure or other transferee in the event of such other transfer of title.

 

(i)            As an alternative to
the Policies required to be maintained pursuant to the preceding provisions of this Section 7.1, Borrower will not be in default
under this Section 7.1 if Borrower maintains (or causes to be maintained) Policies which (i) have coverages, deductibles and/or
other related provisions other than those specified above and/or (ii) are provided by insurance companies not meeting the credit
ratings requirements set forth above (any such Policy, a “Non-Conforming Policy”), provided, that, prior to
obtaining such Non-Conforming Policies (or permitting such Non-Conforming Policies to be obtained), Borrower shall have (1) received
Lender’s prior written consent thereto and (2) if required by Lender, confirmed that Lender has received a Rating Agency
Confirmation with respect to any such Non-Conforming Policy. Notwithstanding the foregoing, Lender hereby reserves the right to
deny its consent to any Non-Conforming Policy regardless of whether or not Lender has consented to the same on any prior occasion.

 

(j)             Borrower shall cooperate
with Lender in obtaining for Lender the benefits of any Awards or insurance proceeds lawfully or equitably payable in connection
with any Individual Property (or any portion thereof), and Lender shall be reimbursed for any expenses incurred in connection therewith
(including reasonable, actual attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal
on behalf of Lender in case of a Casualty or Condemnation affecting any Individual Property or any part thereto) out of such Awards
or insurance proceeds.

 

    	 	- 83 -	 

     

    

(k)           Borrower hereby represents
that the physical address(es) for each portion of the Improvements for all purposes (including, without limitation, insurance purposes)
are as follows: (i) for the Seattle Property, 380 Upland Drive, Tukwila, Washington 98188 and (ii) for the SLC Property, 10704
South River Front Parkway, South Jordan, Utah 84095.

 

Section 7.2.         Casualty.
If any Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”),
Borrower shall give prompt notice of such damage to Lender and shall promptly commence and diligently prosecute the completion
of the Restoration of the applicable Individual Property and otherwise comply with the provisions of Section 7.4. Borrower shall
pay all costs of Restoration (including, without limitation, any applicable deductibles under the Policies) whether or not such
costs are covered by the Net Proceeds. Lender may, but shall not be obligated to, make proof of loss if not made promptly by Borrower.

 

Section 7.3.       Condemnation.
Borrower shall promptly give Lender notice of the actual or threatened commencement of any proceeding for the Condemnation of any
Individual Property (or any portion thereof) of which Borrower has knowledge and shall deliver to Lender copies of any and all
papers served in connection with such proceedings. Lender may participate in any such proceedings, and Borrower shall from time
to time deliver to Lender all instruments requested by it to permit such participation. Borrower shall, at its expense, diligently
prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying
on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation
or otherwise (including but not limited to any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower
shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the
Debt shall not be reduced until any Award shall have been actually received and applied by Lender, after the deduction of expenses
of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the
condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the
Note. If any Individual Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence and
diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 7.4. Borrower shall pay
all costs of Restoration whether or not such costs are covered by the Net Proceeds. If any Individual Property (or any portion
thereof) is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether
or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof
sufficient to pay the Debt. Notwithstanding the foregoing or anything to the contrary contained herein, if, in connection with
any Casualty or Condemnation, a prepayment of the Debt (in whole or in part) is required under REMIC Requirements, (a) the applicable
Net Proceeds shall be applied to the Debt in accordance with Section 7.4(c) hereof and (b) to the extent that the amount of the
applicable Net Proceeds actually applied to the Debt in connection therewith is insufficient under REMIC Requirements, Borrower
shall, within five (5) days of demand by Lender, prepay the principal amount of the Debt in accordance with the applicable terms
and conditions hereof in an amount equal to such insufficiency plus the amount of any then applicable Interest Shortfall (such
prepayment, together with any related Interest Shortfall payment, collectively, the “REMIC Payment”). Lender
may require Borrower to deliver a REMIC Opinion in connection with each of the foregoing.

 

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Section 7.4.         Restoration.
The following provisions shall apply in connection with the Restoration of any Individual Property:

 

(a)          If the Net Proceeds
shall be less than the Restoration Threshold and the costs of completing the Restoration shall be less than the Restoration Threshold,
the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth in Section
7.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete
with due diligence the Restoration in accordance with the terms of this Agreement.

 

(b)          If the Net Proceeds
are equal to or greater than the Restoration Threshold or the costs of completing the Restoration are equal to or greater than
the Restoration Threshold, Lender shall make the Net Proceeds available for the Restoration in accordance with the provisions of
this Section 7.4.

 

(i)          The
Net Proceeds shall be made available for Restoration provided that each of the following conditions are met:

 

(A)         no
Event of Default shall have occurred and be continuing;

 

(B)          (1) in the
event the Net Proceeds are insurance proceeds, less than thirty percent (30%) of each of (i) fair market value of the applicable
Individual Property as reasonably determined by Lender, (ii) replacement cost of the applicable Individual Property as reasonably
determined by Lender, and (iii) rentable area of the applicable Individual Property (which such “rentable area” shall
be deemed to include, without limitation, banquet, meeting and conference space and any portions of the applicable Individual Property
occupied or otherwise used from time to time by transient hotel guests and/or hotel visitors) has been damaged, destroyed or rendered
unusable as a result of a Casualty or (2) in the event the Net Proceeds are condemnation proceeds, less than fifteen percent (15%)
of each of (i) the fair market value of the applicable Individual Property as reasonably determined by Lender, (ii) replacement
cost of the applicable Individual Property as reasonably determined by Lender and (iii) rentable area of the applicable Individual
Property (which such “rentable area” shall be deemed to include, without limitation, banquet, meeting and conference
space and any portions of the applicable Individual Property occupied or otherwise used from time to time by transient hotel guests
and/or hotel visitors) is taken, such land is located along the perimeter or periphery of the applicable Individual Property, no
portion of the Improvements is located on such land and such taking does not materially impair the existing access to the applicable
Individual Property;

 

(C)         Leases demising
in the aggregate a percentage amount equal to or greater than 75% of the total rentable space in the applicable Individual Property
which has been demised under executed and delivered Leases in effect as of the date of the occurrence of such fire or other casualty
or taking, whichever the case may be, shall remain in full force and effect during and after the completion of the Restoration,
notwithstanding the occurrence of any such Casualty or Condemnation, whichever the case may be, and Borrower furnishes to Lender
evidence reasonably satisfactory to Lender that all Tenants under Leases shall continue to operate their respective space at the
applicable Individual Property after the completion of the Restoration;

 

    	 	- 85 -	 

     

    

(D)         Borrower shall
commence (or shall cause the commencement of) the Restoration as soon as reasonably practicable (but in no event later than sixty
(60) days after the issuance of a building permit with respect thereto) and shall diligently pursue the same to satisfactory completion
in compliance with all applicable Legal Requirements, including, without limitation, all applicable Environmental Laws, and the
applicable requirements of the Property Documents;

 

(E)          Lender shall
be satisfied that any operating deficits which will be incurred with respect to the applicable Individual Property as a result
of the occurrence of any such fire or other casualty or taking will be covered out of (1) the Net Proceeds, (2) the insurance coverage
referred to in Section 7.1(a)(iii) above, or (3) by other funds of Borrower;

 

(F)          Lender shall
be satisfied that the Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient to
cover the cost of the Restoration;

 

(G)         Lender shall
be satisfied that, upon the completion of the Restoration, the fair market value and cash flow of the applicable Individual Property
will not be less than the fair market value and cash flow of the applicable Individual Property as the same existed immediately
prior to the applicable Casualty or Condemnation;

 

(H)         Lender shall
be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to the Maturity
Date, (2) twenty four (24) months after the occurrence of such fire or other casualty or taking, (3) the earliest date required
for such completion under the terms of any Leases and the Property Documents, (4) such time as may be required under applicable
Legal Requirements (provided, that, to the extent that any entitlements or similar rights under Legal Requirements with respect
to the applicable Individual Property (such as continuing a legal non-conforming use) may be lost if Restoration is not completed
within a certain timeframe, such timeframe shall be deemed “such time as may be required under applicable Legal Requirements”
for purposes of the foregoing) or (5) the expiration of the insurance coverage referred to in Section 7.1(a)(iii) above;

 

(I)           Borrower and
Guarantor shall execute and deliver to Lender a completion guaranty in form and substance satisfactory to Lender and its counsel
pursuant to the provisions of which Borrower and Guarantor shall jointly and severally guaranty to Lender the lien-free completion
by Borrower of the Restoration in accordance with the provisions of this Subsection 7.4(b);

 

    	 	- 86 -	 

     

    

(J)          the applicable
Individual Property and the use thereof (as a hotel consistent with the use as of the date hereof) after the Restoration will be
in compliance with and permitted under all applicable Legal Requirements and the Property Documents;

 

(K)         the Restoration
shall be done and completed in an expeditious and diligent fashion and in compliance in all material respects with all applicable
Legal Requirements and the Property Documents;

 

(L)          the Property
Documents will remain in full force and effect during and after the Restoration and a Property Document Event shall not occur as
a result of the applicable Casualty, Condemnation and/or Restoration; and

 

(M)        Lender shall
be satisfied that making the Net Proceeds available for Restoration shall be permitted pursuant to REMIC Requirements and, in that
regard, Lender may require Borrower to deliver a REMIC Opinion in connection therewith.

 

(ii)         The Net
Proceeds shall be held by Lender and, until disbursed in accordance with the provisions of this Section 7.4(b), shall constitute
additional security for the Debt and other obligations under this Agreement, the Security Instrument, the Note and the other Loan
Documents. The Net Proceeds (other than the Rent Loss Proceeds) shall be disbursed by Lender to, or as directed by, Borrower from
time to time during the course of the Restoration, upon receipt of evidence satisfactory to Lender that (A) all materials installed
and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection
with the related Restoration item have been paid for in full, and (B) there exist no notices of pendency, stop orders, mechanic’s
or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever
on the Property which have not either been fully bonded to the satisfaction of Lender and discharged of record or in the alternative
fully insured to the satisfaction of Lender by the title company issuing the Title Insurance Policy.

 

(iii)         If the
Net Proceeds are greater than the Restoration Threshold or the costs of completing the Restoration are greater than the Restoration
Threshold, all plans and specifications required in connection with the Restoration shall be subject to prior review and reasonable
acceptance in all respects by Lender and by an independent consulting engineer selected by Lender (the “Casualty Consultant”).
Lender shall have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection
with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration shall be subject
to prior review and acceptance by Lender and the Casualty Consultant. All costs and expenses incurred by Lender in connection with
making the Net Proceeds available for the Restoration including, without limitation, reasonable counsel fees and disbursements
and the Casualty Consultant’s fees, shall be paid by Borrower. Borrower shall have the right to settle all claims under the
Policies jointly with Lender, provided that (a) no Event of Default exists, (b) Borrower promptly and with commercially reasonable
diligence negotiates a settlement of any such claims and (c) the insurer with respect to the Policy under which such claim is brought
has not raised any act of the insured as a defense to the payment of such claim. If an Event of Default exists, Lender shall, at
its election, have the exclusive right to settle or adjust any claims made under the Policies in the event of a Casualty.

 

    	 	- 87 -	 

     

    

(iv)        In no event
shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred
from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Restoration
Retainage. The term “Restoration Retainage” as used in this Subsection 7.4(b) shall mean an amount equal to
10% of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until
such time as the Casualty Consultant certifies to Lender that Net Proceeds representing 50% of the required Restoration have been
disbursed. There shall be no Restoration Retainage with respect to costs actually incurred by Borrower for work in place in completing
the last 50% of the required Restoration. The Restoration Retainage shall in no event, and notwithstanding anything to the contrary
set forth above in this Subsection 7.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors
and materialmen engaged in the Restoration. The Restoration Retainage shall not be released until the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the provisions of this Subsection 7.4(b) and that all approvals
necessary for the re-occupancy and use of the applicable Individual Property have been obtained from all appropriate governmental
and quasi-governmental authorities, and Lender receives evidence satisfactory to Lender that the costs of the Restoration have
been paid in full or will be paid in full out of the Restoration Retainage, provided, however, that Lender will release the portion
of the Restoration Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration
as of the date upon which the Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily
completed all work and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s
or materialman’s contract, and the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment
in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title
company insuring the lien of the Security Instrument. If required by Lender, the release of any such portion of the Restoration
Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor,
subcontractor or materialman.

 

(v)         Lender shall
not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.

 

(vi)         If at any
time the Net Proceeds or the undisbursed balance thereof shall not, in the reasonable opinion of Lender in consultation with the
Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be
incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds
Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency
deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration
on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 7.4(b)
shall constitute additional security for the Debt and other obligations under this Agreement, the Security Instrument, the Note
and the other Loan Documents.

 

    	 	- 88 -	 

     

    

(vii)       The excess,
if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty
Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 7.4(b),
and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been
paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing
under this Agreement, the Security Instrument, the Note or any of the other Loan Documents.

 

(c)           All Net Proceeds not
required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant to Subsection
7.4(b)(vii) shall be retained and applied by Lender toward the payment of the Debt (without any prepayment premium or penalty)
whether or not then due and payable in such order, priority and proportions as Lender in its discretion shall deem proper. If Lender
shall receive and retain Net Proceeds, the lien of the Security Instrument shall be reduced only by the amount thereof received
and retained by Lender and actually applied by Lender in reduction of the Debt.

 

ARTICLE 8

 

RESERVE FUNDS

 

Section 8.1.          Immediate
Repair Funds.

 

(a)            Borrower shall perform
the repairs at the Property as set forth on Schedule I hereto (all such repairs are hereinafter referred to as “Immediate
Repairs”) and shall complete each of the Immediate Repairs on or before the respective deadline for each repair as set
forth on Schedule I hereto (as such deadlines may be extended by Lender in its reasonable discretion). On the Closing Date,
Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “Immediate Repair Account”)
an amount equal to $194,552.50, such amount representing 125% of the estimated costs of the Immediate Repairs.  Amounts
deposited pursuant to this Section 8.1 are referred to herein as the “Immediate Repair Funds”.

 

    	 	- 89 -	 

     

    

(b)           Lender shall disburse
to Borrower the Immediate Repair Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit
a request for payment to Lender at least ten (10) days prior to the date on which Borrower requests such payment be made and specifies
the Immediate Repairs to be paid; (ii) on the date such request is received by Lender and on the date such payment is to be made,
no Event of Default shall exist and remain uncured; (iii) Lender shall have received a certificate from Borrower (A) stating that
all Immediate Repairs to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance
with all applicable Legal Requirements, such certificate to be accompanied by a copy of any license, permit or other approval by
any Governmental Authority required in connection with the Immediate Repairs (if any is required), (B) identifying each Person
that supplied materials or labor in connection with the Immediate Repairs to be funded by the requested disbursement, and (C) stating
that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied
by lien waivers, invoices and/or other evidence of payment reasonably satisfactory to Lender; (iv) at Lender’s option, if
the cost of the Immediate Repairs exceeds $150,000, a title search for the applicable Individual Property indicating that the applicable
Individual Property is free from all liens, claims and other encumbrances other than Permitted Encumbrances; (v) at Lender’s
option, if the cost of the Immediate Repairs exceeds $150,000, Lender shall have received a report satisfactory to Lender in its
reasonable discretion from an architect or engineer approved by Lender in respect of such architect or engineer’s inspection
of the required repairs; and (vi) Lender shall have received such other evidence as Lender shall reasonably request that the Immediate
Repairs to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement
to Borrower. Lender shall not be required to disburse Immediate Repair Funds more frequently than once each calendar month nor
in an amount less than the Minimum Disbursement Amount (or a lesser amount if the total Immediate Repair Funds is less than the
Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be made).

 

Section 8.2.          Intentionally
Omitted.

 

Section 8.3.          Intentionally
Omitted.

 

Section 8.4.         Operating
Expense Funds. On the first Monthly Payment Date occurring after each occurrence of a Trigger Period, Borrower shall make a
True Up Payment into the Operating Expense Account. On each Monthly Payment Date occurring on and after the occurrence and continuance
of a Trigger Period, Borrower shall deposit (or shall cause there to be deposited) into an Eligible Account held by Lender or Servicer
(the “Operating Expense Account”) an amount equal to the aggregate amount of Approved Operating Expenses and
Approved Extraordinary Expenses to be incurred by Borrower for the then current Interest Accrual Period (such amount, the “Op
Ex Monthly Deposit”). Amounts deposited pursuant to this Section 8.4 are referred to herein as the “Operating
Expense Funds”. Provided no Event of Default has occurred and is continuing, Lender shall disburse (i) the Operating
Expense Funds to Borrower to pay Approved Operating Expenses and/or Approved Extraordinary Expenses upon Borrower’s request
(which such request shall be accompanied by an Officer’s Certificate detailing the applicable expenses to which the requested
disbursement relates and attesting that such expense shall be paid with the requested disbursement) and (ii) the remaining Operating
Expense Funds to Borrower upon the expiration of the applicable Trigger Period.

 

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Section 8.5.         Excess
Cash Flow Funds. On the first Monthly Payment Date occurring after each occurrence of a Trigger Period and on each Monthly
Payment Date occurring thereafter during the continuance of such Trigger Period, Borrower shall make a True Up Payment into the
Excess Cash Flow Account (provided, that, (i) such True Up Payments shall only be required after the occurrence and during the
continuance of any breach of the Cash Management Provisions and (ii) the amount of such True Up Payments shall be determined by
Lender based upon Lender’s estimate of the amounts that would have been deposited into the Excess Cash Flow Account on each
applicable Monthly Payment Date had the applicable breach not occurred). On each Monthly Payment Date occurring on and after the
occurrence and continuance of a Trigger Period, Borrower shall deposit (or cause to be deposited) into an Eligible Account with
Lender or Servicer (the “Excess Cash Flow Account”) an amount equal to the Excess Cash Flow generated by the
Property for the immediately preceding Interest Accrual Period (each such monthly deposit being herein referred to as the “Monthly
Excess Cash Flow Deposits” and the amounts on deposit in the Excess Cash Flow Account being herein referred to as the
“Excess Cash Flow Funds”). Provided no Event of Default has occurred and is continuing, (i) with respect to
any Excess Cash Flow Funds on deposit in the Excess Cash Flow Account during the continuance of Trigger Period related solely to
the Franchise Agreement (the “Applicable ECF Funds”), the same shall be transferred to the PIP Reserve Account,
provided, that, (A) Borrower makes written request of Lender for such transfer, (B) such transfer is made in connection with Borrower’s
cure of the aforesaid Trigger Period, (C) the deposit of funds in the PIP Reserve Account is required to effect such cure and such
cure will be fully consummated upon the transfer of the Applicable ECF Funds, (D) at each of the times such request and transfer
are made, no other Trigger Period exists and (E) to the extent that Applicable ECF Funds exist in excess of such required deposit
to the PIP Reserve Account, such excess Applicable ECF Funds shall not be transferred; and (ii) any Excess Cash Flow Funds remaining
in the Excess Cash Flow Account shall be disbursed to Borrower upon the expiration of any Trigger Period in accordance with the
applicable terms and conditions hereof.

 

Section 8.6.        Tax and
Insurance Funds. In addition to the initial deposits with respect to Taxes and, if applicable, Insurance Premiums made by Borrower
to Lender on the Closing Date to be held in Eligible Accounts by Lender or Servicer and hereinafter respectively referred to as
the “Tax Account” and the “Insurance Account”, Borrower shall pay (or cause to be paid) to
Lender on each Monthly Payment Date (a) one-twelfth of an amount which would be sufficient to pay the Taxes payable, or estimated
by Lender to be payable, during the next ensuing twelve (12) months assuming that said Taxes are to be paid in full on the Tax
Payment Date (the “Monthly Tax Deposit”), each of which such deposits shall be held in the Tax Account, and
(b) at the option of Lender, if the liability or casualty Policy maintained by Borrower covering the Property (or any portion thereof)
shall not constitute an approved blanket or umbrella Policy pursuant to Subsection 7.1(c) hereof, or Lender shall require Borrower
to obtain a separate Policy pursuant to Subsection 7.1(c) hereof, one-twelfth of an amount which would be sufficient to pay the
Insurance Premiums due for the renewal of the coverage afforded by the Policies upon the expiration thereof (the “Monthly
Insurance Deposit”), each of which such deposits shall be held in the Insurance Account (amounts held in the Tax Account
and the Insurance Account are collectively herein referred to as the “Tax and Insurance Funds”). In the event
Lender shall elect, after the Closing Date, to collect payments in escrow for Insurance Premiums, Borrower shall make a True Up
Payment with respect to the same into the applicable Reserve Account. Additionally, if, at any time, Lender reasonably determines
that amounts on deposit in or scheduled to be deposited in (i) the Tax Account will be insufficient to pay all applicable Taxes
in full on the Tax Payment Date and/or (ii) the Insurance Account will be insufficient to pay all applicable Insurance Premiums
in full on the Insurance Payment Date, Borrower shall make a True Up Payment with respect to such insufficiency into the applicable
Reserve Account. Borrower agrees to notify Lender immediately of any changes to the amounts, schedules and instructions for payment
of any Taxes and Insurance Premiums of which it has or obtains knowledge and authorizes Lender or its agent to obtain the bills
for Taxes directly from the appropriate taxing authority. Provided there are sufficient amounts in the Tax Account and Insurance
Account, respectively, and no Event of Default exists, Lender shall be obligated to pay the Taxes and Insurance Premiums as they
become due on their respective due dates on behalf of Borrower by applying the Tax and Insurance Funds to the payment of such Taxes
and Insurance Premiums. If the amount of the Tax and Insurance Funds shall exceed the amounts due for Taxes and Insurance Premiums
pursuant to Sections 4.5 and 7.1 hereof, Lender shall, in its discretion, return any excess to Borrower or credit such excess against
future payments to be made to the Tax and Insurance Funds.

 

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Section 8.7.          The
Accounts Generally.

 

(a)           Borrower grants to
Lender a first-priority perfected security interest in each of the Accounts and any and all sums now or hereafter deposited in
the Accounts as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Accounts and
the funds deposited therein shall constitute additional security for the Debt. The provisions of this Section 8.7 (together with
the other related provisions of the other Loan Documents) are intended to give Lender and/or Servicer “control” of
the Accounts and the Account Collateral and serve as a “security agreement” and a “control agreement” with
respect to the same, in each case, within the meaning of the UCC. Borrower acknowledges and agrees that the Accounts are subject
to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof, and Borrower
shall have no right of withdrawal with respect to any Account except with the prior written consent of Lender or as otherwise provided
herein. The funds on deposit in the Accounts shall not constitute trust funds and may be commingled with other monies held by Lender.
Notwithstanding anything to the contrary contained herein, unless otherwise consented to in writing by Lender, Borrower shall only
be permitted to request (and Lender shall only be required to disburse) Reserve Funds on account of the liabilities, costs, work
and other matters (as applicable) for which said sums were originally reserved hereunder, in each case, as reasonably determined
by Lender.

 

(b)           Borrower shall not,
without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in the Accounts or
the sums deposited therein or permit any lien to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements,
except those naming Lender as the secured party, to be filed with respect thereto. Borrower hereby authorizes Lender to file a
financing statement or statements under the UCC in connection with any of the Accounts and the Account Collateral in the form required
to properly perfect Lender’s security interest therein. Borrower agrees that at any time and from time to time, at the expense
of Borrower, Borrower will promptly execute and deliver all further instruments and documents, and take all further action, that
may be reasonably necessary or desirable, or that Lender may reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby (including, without limitation, any security interest in and to any Permitted Investments)
or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to any Account or Account Collateral.

 

(c)            Notwithstanding anything
to the contrary contained herein or in any other Loan Document, upon the occurrence and during the continuance of an Event of Default,
without notice from Lender or Servicer (i) Borrower shall have no rights in respect of the Accounts, (ii) Lender may liquidate
and transfer any amounts then invested in Permitted Investments pursuant to the applicable terms hereof to the Accounts or reinvest
such amounts in other Permitted Investments as Lender may reasonably determine is necessary to perfect or protect any security
interest granted or purported to be granted hereby or pursuant to the other Loan Documents or to enable Lender to exercise and
enforce Lender’s rights and remedies hereunder or under any other Loan Document with respect to any Account or any Account
Collateral, and (iii) Lender shall have all rights and remedies with respect to the Accounts and the amounts on deposit therein
and the Account Collateral as described in this Agreement and in the Security Instrument, in addition to all of the rights and
remedies available to a secured party under the UCC, and, notwithstanding anything to the contrary contained in this Agreement
or in the Security Instrument, may apply the amounts of such Accounts as Lender determines in its sole discretion including, but
not limited to, payment of the Debt.

 

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(d)           The insufficiency of
funds on deposit in the Accounts shall not absolve Borrower of the obligation to make any payments, as and when due pursuant to
this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any
event or circumstance whatsoever.

 

(e)            Borrower shall indemnify
Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations
and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising from or in any way connected
with the Accounts, the sums deposited therein or the performance of the obligations for which the Accounts were established, except
to the extent arising from the gross negligence or willful misconduct of Lender, its agents or employees. Borrower shall assign
to Lender all rights and claims Borrower may have against all Persons supplying labor, materials or other services which are to
be paid from or secured by the Accounts; provided, however, that Lender may not pursue any such right or claim unless an Event
of Default has occurred and remains uncured.

 

(f)            Borrower and Lender
(or Servicer on behalf of Lender) shall maintain each applicable Account as an Eligible Account, except as otherwise expressly
agreed to in writing by Lender. In the event that Lender or Servicer no longer satisfies the criteria for an Eligible Institution,
Borrower shall cooperate with Lender in transferring the applicable Accounts to an institution that satisfies such criteria. Upon
the occurrence and during the continuance of an Event of Default, Borrower hereby grants Lender power of attorney (irrevocable
for so long as the Loan is outstanding or has not be defeased in full in accordance with the applicable terms and conditions hereof)
with respect to any such transfers and the establishment of accounts with a successor institution.

 

(g)           Interest
accrued on any Account shall not be required to be remitted either to Borrower or to any Account and may instead be retained by
Lender.

 

(h)           Intentionally Omitted.

 

(i)             Borrower acknowledges
and agrees that it solely shall be, and shall at all times remain, liable to Lender or Servicer for all fees, charges, costs and
expenses in connection with the Accounts, this Agreement and the enforcement hereof, including, without limitation, any monthly
or annual fees or charges as may be assessed by Lender or Servicer in connection with the administration of the Accounts and the
reasonable fees and expenses of legal counsel to Lender and Servicer as needed to enforce, protect or preserve the rights and remedies
of Lender and/or Servicer under this Agreement.

 

    	 	- 93 -	 

     

    

(j)             Upon either indefeasible
payment of the Debt in full or consummation of a Defeasance of the Debt in full, in each case, in accordance with the terms hereof,
to the extent any funds are remaining in the Reserve Accounts (and to the extent such funds were not credited against the applicable
payoff or Defeasance), said funds shall be promptly disbursed to Borrower.

 

Section 8.8.         Intentionally
Omitted. 

 

Section 8.9.         Other Reserve
Funds. 

 

(a)          FF&E Reserve
Funds.

 

(i)          On each Monthly
Payment Date, Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “FF&E Reserve Account”)
the FF&E Reserve Monthly Deposit. As used above, the term “FF&E Reserve Monthly Deposit” shall mean,
with respect to the corresponding Monthly Payment Date, an amount equal to the greater of (1) the FF&E Payment and (2) the
amount of the deposit (if any) then required by the Franchisor on account of FF&E under the Franchise Agreement. As used herein,
the term “FF&E Payment” shall mean, with respect to the corresponding Monthly Payment Date, an amount equal
to (I) with respect to the Seattle Property, 1/12 of 4% of the greater of (x) the annual gross revenues for the hotel related operations
at the Seattle Property for the immediately preceding calendar year as reasonably determined by Lender and (y) the projected annual
gross revenues for the hotel related operations at the Seattle Property for the calendar year in which such Monthly Payment Date
occurs as set forth in the applicable Approved Annual Budget; provided, that, notwithstanding anything herein to the contrary,
if, as of any applicable date of determination, no Approved Annual Budget exists for the applicable calendar year, the amount of
the required under this subsection (y) shall be determined by Lender in its reasonable discretion and (II) with respect to the
SLC Property, 1/12 of 6.5% of the greater of (x) the annual gross revenues for the hotel related operations at the SLC Property
for the immediately preceding calendar year as reasonably determined by Lender and (y) the projected annual gross revenues for
the hotel related operations at the SLC Property for the calendar year in which such Monthly Payment Date occurs as set forth in
the applicable Approved Annual Budget; provided, that, notwithstanding anything herein to the contrary, if, as of any applicable
date of determination, no Approved Annual Budget exists for the applicable calendar year, the amount of the required under this
subsection (y) shall be determined by Lender in its reasonable discretion. The FF&E Reserve Monthly Deposit shall be (A) initially
determined for the balance of the calendar year 2016 as of the Closing Date and (B) thereafter adjusted and determined by Lender
(in accordance with this Section 8.9(a)) annually on the Monthly Payment Date in January, 2017 and on each Monthly Payment Date
falling in each subsequent January thereafter. Notwithstanding anything herein to the contrary, Lender may require Borrower to
increase the monthly deposits required pursuant to this Section upon thirty (30) days’ notice to Borrower if (1) based on
a change in Legal Requirements or other extraordinary circumstances, Lender determines (utilizing a property condition report or
similar third party report as backup) in its reasonable discretion that an increase is necessary to maintain proper maintenance
and operation of the Property, provided, however, in any such case (I) with respect to the Seattle Property, in no event shall
the reference to “4%” above be increased to more than “5%” and (II) with respect to the SLC Property, in
no event shall the reference to “6.5%” above be increased to more than “7.5%” and/or (2) an increase is
necessary to reflect increased FF&E expenditures required under any Franchise Agreement and/or set forth in any amendment to
the most recently determined Approved Annual Budget. Amounts deposited pursuant to this Section are referred to herein as the “FF&E
Reserve Funds”.

 

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(ii)         Lender
shall make disbursements of the FF&E Reserve Funds as requested by Borrower to reimburse Borrower for, or to pay for, Borrower’s
actual, out-of-pocket expenses for Approved FF&E provided that: (1) such request is made (A) on a form of draw request specified
or reasonably approved by Lender and which shall at a minimum set forth (1) a general description of the Approved FF&E for
which such disbursement is requested and (2) the accuracy of the invoices to be attached thereto, which shall provide the quantity
and price of each item purchased, or to be purchased, if the Approved FF&E includes the purchase or replacement of specific
items (such as appliances) and the price of all materials (grouped by type or category) used in any item of Approved FF&E other
than the purchase or replacement of specific items and the cost of all contracted labor or other services applicable to each item
of Approved FF&E for which such request for disbursement is made and (B) at least ten (10) days prior to the date on which
Borrower requests such disbursement be made; (2) on the date such request is received by Lender and on the date such disbursement
is to be made, no Event of Default shall exist and remain uncured; (3) if required by Lender, Lender shall have verified (by an
inspection conducted at Borrower’s expense) performance of the work associated with such Approved FF&E; (4) the request
for disbursement is accompanied by (A) an Officer’s Certificate certifying that (1) such funds will be used to reimburse
Borrower for, or to pay for, Approved FF&E and a general description thereof, (2) the same has not been previously paid and
(3) any construction work associated with the related Approved FF&E has been completed in a good and workmanlike manner and
in accordance with the Franchise Agreement and all applicable Legal Requirements, (B) if requested by Lender in its reasonable
discretion, such additional reasonably detailed documentation satisfactory to Lender as to the amount, necessity and purpose therefor,
(C) to the extent such disbursement is a reimbursement, copies of paid invoices for the amounts requested and, to the extent such
disbursement is for payment, copies of the applicable unpaid invoices for the amounts requested and (D) if required by Lender,
lien waivers and releases, or conditional lien waivers and releases, as applicable, from all parties furnishing materials and/or
services in connection therewith; (5) at Lender’s option, Lender shall have received a title search for the Property indicating
that the Property is free from all liens, claims and other encumbrances other than Permitted Encumbrances; and (6) Lender shall
have received such other evidence as Lender shall reasonably request that the Approved FF&E to be funded by the requested disbursement
has been (x) completed and (y) paid for (or will be paid for upon such disbursement). Lender shall not be required to disburse
FF&E Reserve Funds (x) more frequently than once each calendar month, (y) in an amount less than the Minimum Disbursement Amount
(unless the total amount of FF&E Reserve Funds is less than the Minimum Disbursement Amount, in which case only one disbursement
of the amount remaining in the account shall be made) or (z) with respect to any retail (if any) space at the Property.

 

    	 	- 95 -	 

     

    

  

(iii)        Nothing
in this Section shall (1) make Lender responsible for making or completing any FF&E; (2) require Lender to expend funds in
addition to the FF&E Reserve Funds to complete any FF&E; (3) obligate Lender to proceed with any FF&E; or (4) obligate
Lender to demand from Borrower additional sums to complete any FF&E; provided, however, that the foregoing clause (4) is not
intended to limit Borrower’s preservation and maintenance covenants in the Loan Documents and/or in the Franchise Agreement.
The insufficiency of any FF&E Reserve Funds shall not relieve Borrower from its obligation to fulfill all preservation and
maintenance covenants in the Loan Documents and/or in the Franchise Agreement. Notwithstanding anything to the contrary contained
herein, Lender may, in its reasonable discretion, allocate FF&E Reserve Funds to each Individual Property and no portion of
any FF&E Reserve Funds so allocated to any Individual Property may be disbursed on account of another Individual Property without
Lender’s prior written consent in each instance.

 

(iv)        Borrower
shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect,
or inspector) or third parties to enter onto the Property to inspect the progress of any FF&E and all materials being used
in connection therewith and to examine all plans and shop drawings relating to such FF&E. Borrower shall cause all contractors
and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above in connection
with inspections described in this Section.

 

(b)         Intentionally
Omitted.

 

(c)         PIP
Reserve Funds.

 

(i)         
Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “PIP Reserve Account”) (1) on
the Closing Date, the sum of $383,676 on account of the Scheduled PIP and (2) the applicable PIP Deposit (less any amounts Lender
confirms will be transferred from the Excess Cash Flow Account to the PIP Reserve Account in accordance with the applicable terms
and conditions hereof) (A) in the case of any existing or renewal Franchise Agreement, prior to the effective date that any PIP
(other than the Scheduled PIP) is imposed thereunder and (B) in the case of any new Franchise Agreement, on or prior to the date
such new Franchise Agreement is executed and delivered. Additionally, if, at any time, Lender determines that amounts on deposit
in the PIP Reserve Account will be insufficient to pay the then estimated costs for any PIP Work (as estimated by Lender in its
reasonable discretion after taking into account any portion thereof with respect to which Lender has received satisfactory evidence
that same has previously been performed and paid for by Borrower in accordance with the terms hereof and the related Franchise
Agreement), Borrower shall make a True Up Payment with respect to such insufficiency into the PIP Reserve Account. Notwithstanding
anything to the contrary contained herein, unless otherwise agreed to by Lender in writing, no disbursement of PIP Reserve Funds
shall be made hereunder until such True Up Payment is made. As used herein, “PIP Deposit” shall mean, with respect
to any PIP, an amount equal to 125% of the costs of the related PIP Work as estimated by Lender in its reasonable discretion (which
such cost shall be exclusive of the cost of any PIP Work which is duplicative of any Approved FF&E for which adequate FF&E
Reserve Funds exist hereunder (as reasonably determined by Lender) (the “Duplicative FF&E”)). Amounts deposited
in the PIP Reserve Account pursuant to this Section are referred to herein as the “PIP Reserve Funds”.

 

    	 	- 96 -	 

     

    

  

(ii)         Lender
shall make disbursements from the PIP Reserve Funds as requested by Borrower to reimburse Borrower for Borrower’s actual,
out-of-pocket expenses incurred in connection with the performance of the related PIP Work; provided that: (1) such request is
made (A) on a form of draw request specified or approved by Lender and which shall at a minimum set forth (1) a general description
of the PIP Work for which such disbursement is requested and (2) the accuracy of the invoices, to be attached thereto, which shall
provide the quantity and price of each item purchased, if the PIP Work includes the purchase or replacement of specific items (such
as appliances) and the price of all materials (grouped by type or category) used in any item of PIP Work other than the purchase
or replacement of specific items and the cost of all contracted labor or other services applicable to each item of PIP Work for
which such request for disbursement is made and (B) at least ten (10) days prior to the date on which Borrower requests such disbursement
be made; (2) on the date such request is received by Lender and on the date such disbursement is to be made, no Event of Default
shall exist and remain uncured; (3) at Lender’s option, Lender shall have verified (by an inspection conducted at Borrower’s
expense) performance of the associated PIP Work; (4) the request for disbursement is accompanied by (A) an Officer’s Certificate
certifying that (1) such funds will be used to reimburse Borrower for, or to pay for, PIP Work and a general description thereof,
(2) the same has not been the subject of a previous disbursement, (3) all previous disbursements have been used to pay or reimburse
for the previously identified PIP Work and (4) any construction work associated with such PIP Work has been completed in a good
and workmanlike manner and in accordance with the Franchise Agreement and all applicable Legal Requirements, (B) if requested by
Lender, such additional reasonably detailed documentation satisfactory to Lender as to the amount, necessity and purpose therefor,
(C) to the extent such disbursement is a reimbursement, copies of paid invoices for the amounts requested and, to the extent such
disbursement is for payment, copies of the applicable unpaid invoices for the amounts requested and (D) if required by Lender,
lien waivers and releases from all parties furnishing materials and/or services in connection therewith; (5) funds remaining in
the PIP Reserve Account are, in Lender’s judgment, sufficient to complete such PIP Work and all other outstanding PIP Work
when required; (6) at Lender’s option, Lender shall have received a title search for the Property indicating that the Property
is free from all liens, claims and other encumbrances other than Permitted Encumbrances; and (7) Lender shall have received such
other evidence as Lender shall reasonably request that the PIP Work to be funded by the requested disbursement has been (x) completed
and (y) paid for (or will be paid for upon such disbursement). Notwithstanding the foregoing or anything to the contrary contained
herein, Borrower shall not be able to request disbursement of any applicable PIP Reserve Minimum Balance until such time as Lender
has received and reasonably approved the PIP Completion Evidence for the PIP Work to which such PIP Reserve Minimum Balance relates.
Lender shall not be required to disburse PIP Reserve Funds more frequently than once each calendar month nor in an amount less
than the Minimum Disbursement Amount (unless the total amount of PIP Reserve Funds is less than the Minimum Disbursement Amount,
in which case only one disbursement of the amount remaining in the account shall be made).

 

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(iii)        Borrower
shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect,
or inspector) or third parties to enter onto the Property during normal business hours to inspect the progress of any PIP and all
materials being used in connection therewith and to examine all plans and shop drawings relating to such PIP. Borrower shall cause
all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above
in connection with inspections described in this Section. Notwithstanding anything to the contrary contained herein, Lender may,
in its reasonable discretion, allocate PIP Reserve Funds to each Individual Property and no portion of any PIP Reserve Funds so
allocated to any Individual Property may be disbursed on account of another Individual Property without Lender’s prior written
consent in each instance.

 

(iv)       
Lender shall make disbursements from the PIP Reserve Account to pay Borrower only for the costs of the PIP Work. Nothing in this
Section shall (1) make Lender responsible for making or completing any PIP; (2) require Lender to expend funds in addition to the
PIP Reserve Funds to complete any PIP; (3) obligate Lender to proceed with any PIP; or (4) obligate Lender to demand from Borrower
additional sums to complete any PIP; provided, however, that the foregoing clause (iv) is not intended to limit Borrower’s
obligations in respect of any PIP under this Agreement and the other Loan Documents. The insufficiency of any PIP Reserve Funds
shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants (including, without limitation,
all covenants applicable to any PIP) in the Loan Documents and/or in the Franchise Agreement. Notwithstanding anything to the contrary
contained herein, unless agreed to in writing by Lender in advance, (A) no PIP Reserve Funds will be disbursed or otherwise used
for FF&E, (B) Borrower shall not be entitled to duplicate draws of FF&E Reserve Funds and PIP Reserve Funds for the same
work or cost and (C) FF&E Reserve Funds attributable to the Duplicative FF&E shall only be disbursed for work or costs
associated with such Duplicative FF&E and not for any other FF&E.

 

ARTICLE 9

 

CASH MANAGEMENT 

 

Section 9.1.         Establishment
of Certain Accounts.

 

 (a)       
Borrower shall, simultaneously herewith, establish an Eligible Account (the “Restricted Account”) pursuant to
the Restricted Account Agreement in the name of Borrower for the sole and exclusive benefit of Lender into which Borrower shall
deposit, or cause to be deposited, all revenue generated by the Property. Pursuant to the Restricted Account Agreement, funds on
deposit in the Restricted Account shall be transferred on each Business Day to or at the direction of Borrower unless a Trigger
Period exists, in which case such funds shall be transferred on each Business Day to the Cash Management Account.

 

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(b)         Upon
the first occurrence of a Trigger Period, Lender, on Borrower’s behalf, shall establish an Eligible Account (the “Cash
Management Account”) with Lender or Servicer, as applicable, in the name of Borrower for the sole and exclusive benefit
of Lender. Upon the first occurrence of a Trigger Period, Lender, on Borrower’s behalf, shall also establish with Lender
or Servicer an Eligible Account into which, during the continuance of any Trigger Period, Borrower shall deposit, or cause to be
deposited the amounts required for the payment of Debt Service under the Loan (the “Debt Service Account”).

 

Section 9.2.         Deposits
into the Restricted Account; Maintenance of Restricted Account.

 

(a)         Borrower
represents, warrants and covenants that, so long as the Debt remains outstanding (or until such time as a defeasance has been consummated
in accordance with Section 2.8 hereof), (i) Borrower shall, or shall cause Manager to, immediately deposit all revenue derived
from the Property and received by Borrower or Manager, as the case may be, into the Restricted Account; (ii) Borrower shall instruct
Manager to immediately deposit (A) all revenue derived from the Property collected by Manager, if any, pursuant to the Management
Agreement (or otherwise) into the Restricted Account and (B) all funds otherwise payable to Borrower by Manager pursuant to the
Management Agreement (or otherwise in connection with the Property) into the Restricted Account; (iii) (A) on or before the Closing
Date, Borrower shall have sent (and hereby represents that it has sent) a notices (each such notice, a “Direction Notice”),
substantially in the forms of Exhibit A-1 and Exhibit A-2 attached hereto (as applicable), to (1) all Tenants now
occupying space at the Property directing them to pay all rent and other sums due under the Lease to which they are a party into
the Restricted Account and (2) each of the credit card companies or credit card clearing banks with which Borrower or Manager has
entered into merchant’s or other credit card agreements (any such agreement, a “Credit Card Agreement”)
directing them to pay by wire transfer or the ACH System to the Restricted Account all payments which would otherwise be paid to
Borrower or Manager under the applicable credit-card processing agreement (B) simultaneously with the execution of any Lease or
Credit Card Agreement entered into on or after the date hereof in accordance with the applicable terms and conditions hereof, Borrower
shall furnish each Tenant under each such Lease and each credit card company or credit card clearing bank party to each such Credit
Card Agreement a Direction Notice and (C) Borrower shall continue to send the aforesaid Direction Notices until each addressee
thereof complies with the terms thereof; (iv) there shall be no other accounts maintained by Borrower or any other Person into
which revenues from the ownership and operation of the Property are directly deposited; and (v) neither Borrower nor any other
Person shall open any other such account with respect to the direct deposit of income in connection with the Property. Until deposited
into the Restricted Account, any Rents and other revenues from the Property held by Borrower shall be deemed to be collateral and
shall be held in trust by it for the benefit, and as the property, of Lender pursuant to the Security Instrument and shall not
be commingled with any other funds or property of Borrower. Borrower warrants and covenants that it shall not rescind, withdraw
or change any notices or instructions required to be sent by it pursuant to this Section 9.2 without Lender’s prior written
consent.

 

    	 	- 99 -	 

     

    

  

(b)         Borrower
shall maintain the Restricted Account for the term of the Loan, which Restricted Account shall be under the sole dominion and control
of Lender (subject to the terms hereof and of the Restricted Account Agreement). The Restricted Account shall have a title evidencing
the foregoing in a manner reasonably acceptable to Lender. Borrower hereby grants to Lender a first-priority security interest
in the Restricted Account and all deposits at any time contained therein and the proceeds thereof and will take all actions necessary
to maintain in favor of Lender a perfected first priority security interest in the Restricted Account. Borrower hereby authorizes
Lender to file UCC Financing Statements and continuations thereof to perfect Lender’s security interest in the Restricted
Account and all deposits at any time contained therein and the proceeds thereof. All costs and expenses for establishing and maintaining
the Restricted Account (or any successor thereto) shall be paid by Borrower. All monies now or hereafter deposited into the Restricted
Account shall be deemed additional security for the Debt until disbursed to Borrower in accordance with the applicable terms and
conditions hereof and of the other Loan Documents. Borrower shall pay all sums due under and otherwise comply with the Restricted
Account Agreement. Borrower shall not alter or modify either the Restricted Account or the Restricted Account Agreement, in each
case without the prior written consent of Lender. The Restricted Account Agreement shall provide (and Borrower shall provide) Lender
online access to bank and other financial statements relating to the Restricted Account (including, without limitation, a listing
of the receipts being collected therein). In connection with any Secondary Market Transaction, Lender shall have the right to cause
the Restricted Account to be entitled with such other designation as Lender may select to reflect an assignment or transfer of
Lender’s rights and/or interests with respect to the Restricted Account. Lender shall provide Borrower with prompt written
notice of any such renaming of the Restricted Account. Borrower shall not further pledge, assign or grant any security interest
in the Restricted Account or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be
made thereon, or any UCC Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto.
The Restricted Account (i) shall be an Eligible Account and (ii) shall not be commingled with other monies held by Borrower or
Bank. Upon (A) Bank ceasing to be an Eligible Institution, (B) the Restricted Account ceasing to be an Eligible Account, (C) any
resignation by Bank or termination of the Restricted Account Agreement by Bank or Lender and/or (D) the occurrence and continuance
of an Event of Default, Borrower shall, within thirty (30) days of Lender’s request, (1) terminate the existing Restricted
Account Agreement, (2) appoint a new Bank (which such Bank shall (I) be an Eligible Institution, (II) other than during the continuance
of an Event of Default, be selected by Borrower and approved by Lender (which such approval shall not be unreasonably withheld,
conditioned or delayed) and (III) during the continuance of an Event of Default, be selected by Lender), (3) cause such Bank to
open a new Restricted Account (which such account shall be an Eligible Account) and enter into a new Restricted Account Agreement
with Lender on substantially the same terms and conditions as the previous Restricted Account Agreement and (4) send new Direction
Notices and the other notices required pursuant to the terms hereof relating to such new Restricted Account Agreement and Restricted
Account. Upon the occurrence and during the continuance of an Event of Default, Borrower constitutes and appoints Lender its true
and lawful attorney-in- fact with full power of substitution to complete or undertake any action required of Borrower under this
Section 9.2 in the name of Borrower in the event Borrower fails to do the same within five (5) Business Days of notice thereof
from Lender. Such power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked.

 

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Section 9.3.    Disbursements
from the Cash Management Account. On each Monthly Payment Date, Lender or Servicer, as applicable, shall allocate all funds,
if any, on deposit in the Cash Management Account and disburse such funds in the following amounts and order of priority:

 

(a)          First,
funds sufficient to pay the Monthly Tax Deposit due for the then applicable Monthly Payment Date, if any, shall be deposited in
the Tax Account;

 

(b)         Second,
funds sufficient to pay the Monthly Insurance Deposit due for the then applicable Monthly Payment Date, if any, shall be deposited
in the Insurance Account;

 

(c)          Third,
funds sufficient to pay any interest accruing at the Default Rate and late payment charges, if any, shall be deposited into the
Debt Service Account;

 

(d)          Fourth,
funds sufficient to pay the Debt Service due on the then applicable Monthly Payment Date shall be deposited in the Debt
Service Account;

 

(e)          Fifth,
funds sufficient to pay the FF&E Reserve Monthly Deposit for the then applicable Monthly Payment Date, if any, shall be deposited
in the FF&E Reserve Account;

 

(f)         
Sixth, funds sufficient to pay any other amounts due and owing to Lender and/or Servicer pursuant to the terms hereof and/or of
the other Loan Documents, if any, shall be deposited with or as directed by Lender;

 

(g)         Seventh,
to the extent that a Trigger Period has occurred and is continuing, funds sufficient to pay the Op Ex Monthly Deposit for the then
applicable Monthly Payment Date, if any, shall be deposited in the Operating Expense Account; and

 

(h)          Eighth, all amounts remaining in the Cash Management Account after deposits for items (a) through (g) above
(“Excess Cash Flow”) shall (i) to the extent that a Trigger Period has occurred and is continuing, be
deposited into the Excess Cash Flow Account and (ii) to the extent that no Trigger Period exists, be disbursed to
Borrower.

 

For purposes of clarification, the first
sentence of this Section 9.3 shall not be deemed to require that any funds on deposit in the Restricted Account be transferred
to the Cash Management Account at any time other than during the continuance of a Trigger Period.

 

Section 9.4.      Withdrawals from the Debt
Service Account. Prior to the occurrence and continuance of an Event of Default, funds on deposit in the Debt Service Account,
if any, shall be used to pay Debt Service when due, together with any late payment charges or interest accruing at the Default
Rate.

 

Section 9.5.     Payments Received Under
this Agreement. Notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, provided
no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the monthly payment of Debt Service
and amounts due for the Reserve Accounts shall (provided Lender is not prohibited from withdrawing or applying any funds in the
applicable Accounts by operation of law or otherwise) be deemed satisfied to the extent sufficient amounts are deposited in applicable
Accounts to satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are
so applied by Lender.

 

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Section 9.6.     Capital Distributions.
Borrower shall be permitted to make distributions of cash flow to its members and/or shareholders (as applicable) in accordance
with its organization documents provided: (i) no Trigger Period is ongoing, (ii) after giving effect to any such distribution,
Borrower retains sufficient capital to satisfy all its obligations pursuant to the Loan Documents, (iii) such distribution does
not constitute a fraudulent conveyance or otherwise violate and Legal Requirements (including, without limitation, Creditor Rights
Laws), (iv) such distribution does not constitute misappropriation and/or misapplication and (v) such distribution does not expressly
violate (or in and of itself cause a violation of) the terms and/or conditions of the Loan Documents.

 

ARTICLE 10

 

EVENTS OF DEFAULT; REMEDIES 

 

Section 10.1.   Event of Default.

 

The occurrence of any one or more of the following events shall
constitute an “Event of Default”:

 

(a)          if
(A) any monthly Debt Service payment or the payment due on the Maturity Date is not paid when due, (B) any deposit to any of the
Accounts required hereunder or under the other Loan Documents is not paid when due and such non-payment continues for five (5)
days following notice to Borrower (it being acknowledged that no notice shall be required from Lender if such deposit was included
in the monthly invoice provided to Borrower) or (C) any other portion of the Debt is not paid when due and such non-payment continues
for ten (10) days following notice to Borrower that the same is due and payable;

 

(b)          if
any of the Taxes or Other Charges are not paid when the same are due and payable except to the extent (A) sums sufficient to pay
the Taxes or Other Charges in question had been reserved hereunder prior to the applicable due date for the Taxes or Other Charges
in question for the express purpose of paying the Taxes or Other Charges in question and Lender failed to pay the Taxes or Other
Charges in question when required hereunder, (B) Lender’s access to such sums was not restricted or constrained in any manner
and (C) no Event of Default was continuing;

 

(c)          if
the Policies are not kept in full force and effect or if evidence of the same is not delivered to Lender as provided in Section
7.1 hereof (provided, that, the failure to provide such evidence shall not be deemed an Event of Default hereunder to the extent
that (i) Borrower cures such failure within five (5) days of notice thereof from Lender and (ii) Borrower provides evidence reasonably
acceptable to Lender that the Policies were at all times kept in full force and effect);

 

(d)          if
any of the representations or covenants contained in Article 5, Article 6, Sections 3.33, 3.34, 3.35, 4.22, 4.23, 4.24 or 4.25
hereof or in the Property Document Provisions, the Master Lease Provisions and/or the Hotel Provisions are breached or violated;

 

    	 	- 102 -	 

     

    

  

(e)         
if any representation or warranty made herein, in the Guaranty or in the Environmental Indemnity or in any other guaranty, or in
any certificate, report, financial statement or other instrument or document furnished to Lender by or on behalf of any Borrower
Party in connection with the Loan shall have been false or misleading in any material adverse respect when made;

 

(f)         
if (i) Borrower, any SPE Component Entity, any Affiliated Manager, any Affiliated Franchisor, Sponsor or Guarantor shall commence
any case, proceeding or other action (A) under any Creditors Rights Laws seeking to have an order for relief entered with respect
to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, liquidation or dissolution, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part
of its assets, or Borrower or any managing member or general partner of Borrower, any SPE Component Entity, any Affiliated Manager,
any Affiliated Franchisor, Sponsor or Guarantor shall make a general assignment for the benefit of its creditors; (ii) there shall
be commenced against Borrower or any managing member or general partner of Borrower, any SPE Component Entity, any Affiliated Manager,
any Affiliated Franchisor, Sponsor or Guarantor any case, proceeding or other action of a nature referred to in clause (i) above
(other than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this
subsection) which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of sixty (60) days; (iii) there shall be commenced against Borrower, any SPE Component Entity,
any Affiliated Manager, any Affiliated Franchisor, Sponsor or Guarantor any case, proceeding or other action seeking issuance of
a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets (other than
any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection)
which results in the entry of any order for any such relief which shall not have been vacated, discharged, or stayed or bonded
pending appeal within sixty (60) days from the entry thereof; (iv) Borrower, any SPE Component Entity, any Affiliated Manager,
any Affiliated Franchisor, Sponsor or Guarantor shall take any action in furtherance of, in collusion with respect to, or indicating
its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; (v) Borrower, any
SPE Component Entity, any Affiliated Manager, any Affiliated Franchisor, Sponsor or Guarantor shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they become due; (vi) any Restricted Party is substantively
consolidated with any other entity in connection with any proceeding under the Bankruptcy Code or any other Creditors Rights Laws
involving Sponsor or its subsidiaries; or (vii) a Bankruptcy Event occurs;

 

(g)          if
Borrower shall be in default beyond applicable notice and grace periods under any other mortgage, deed of trust, deed to secure
debt or other security agreement covering any part of the Property whether it be superior or junior in lien to the Security Instrument;

 

(h)         
if the Property (or any portion thereof) becomes subject to any mechanic’s, materialman’s or other lien (other than
a lien for any Taxes not then due and payable) and the lien shall remain undischarged of record (by payment, bonding or otherwise)
as of the earlier of (i) the date occurring thirty (30) days after Borrower’s knowledge of such lien or (ii) the later of
(I) the date occurring thirty (30) days after the Property (or applicable portion thereof) first became subject to such lien and
(II) the date that enforcement proceedings are brought with respect to such lien;

 

    	 	- 103 -	 

     

    

  

(i)          
if any federal tax lien is filed against Borrower, any SPE Component Entity, Sponsor, Guarantor or the Property (or any portion
thereof) and same is not discharged of record (by payment, bonding or otherwise) within thirty (30) days after same is filed;

 

(j)           if
Borrower shall fail to deliver to Lender the estoppel certificates required by Section 4.13(a) or (c) hereof within the
timeframes prescribed therein;

 

(k)      
   if any default occurs under any guaranty or indemnity executed in connection herewith (including, without
limitation, the Environmental Indemnity and/or the Guaranty) and such default continues after the expiration of applicable
grace periods, if any;

 

(l)          
if any of the assumptions contained in the Non-Consolidation Opinion, or in any New Non-Consolidation Opinion (including, without
limitation, in any schedules thereto and/or certificates delivered in connection therewith) are untrue or shall become untrue in
any material respect;

 

(m)        
if Borrower defaults under the Management Agreement beyond the expiration of applicable notice and grace periods, if any, thereunder
or if the Management Agreement is canceled, terminated or surrendered, expires pursuant to its terms or otherwise ceased to be
in full force and effect, unless, in each such case, Borrower, contemporaneously with such cancellation, termination, surrender,
expiration or cessation, enters into a Qualified Management Agreement with a Qualified Manager in accordance with the applicable
terms and provisions hereof;

 

(n)          if
Borrower fails to appoint a New Manager upon the request of Lender and/or fails to comply with any limitations on instructing the
Manager, each as required by and in accordance with, as applicable, the terms and provisions of, this Agreement, the Assignment
of Management Agreement and the Security Instrument;

 

(o)          if
any representation and/or covenant herein relating to ERISA matters is breached;

 

(p)          if
(A) Borrower shall fail (beyond any applicable notice or grace period) to pay any rent, additional rent or other charges payable
under any Property Document as and when payable thereunder, (B) Borrower defaults under the Property Documents beyond the expiration
of applicable notice and grace periods, if any, thereunder, (C) any of the Property Documents are amended, supplemented, replaced,
restated or otherwise modified without Lender’s prior written consent or if Borrower consents to a transfer of any party’s
interest thereunder without Lender’s prior written consent, (D) any Property Document and/or the estate created thereunder
is canceled, rejected, terminated, surrendered or expires pursuant to its terms, unless in such case Borrower enters into a replacement
thereof in accordance with the applicable terms and provisions hereof or (E) a Property Document Event occurs;

 

(q)          if
Borrower ceases to do business as a hotel at the Property or terminates such business for any reason whatsoever (other than
temporary cessation in connection with any continuous and diligent renovation or restoration of the Property following a
Casualty or Condemnation in accordance with the applicable terms and conditions hereof);

 

    	 	- 104 -	 

     

    

 

(r)          
if, without Lender’s prior written consent, any liquor license, hotel license, trademark, Intellectual Property and/or other
material Permit relating to the Property ceases to be in full force and effect (any such event shall be referred to herein as a
“Licensing Failure”), provided, however, any such Licensing Failure shall not constitute an Event of Default
hereunder unless the same either (x) causes a Material Adverse Effect or (y) continues for five (5) days;

 

(s)          if
Borrower defaults under the Franchise Agreement beyond the expiration of applicable notice and grace periods, if any, thereunder
or if the Franchise Agreement is canceled, terminated or surrendered, expires pursuant to its terms or otherwise ceases to be in
full force and effect, unless, in each such case, Borrower, contemporaneously with such cancellation, termination, surrender, expiration
or cessation, enters into a Qualified Franchise Agreement with a Qualified Franchisor in accordance with the applicable terms and
provisions hereof;

 

(t)         
if Borrower fails to appoint a New Franchisor upon the request of Lender and/or fails to comply with any limitations on instructing
the Franchisor, each as required by and in accordance with, as applicable, the terms and provisions of, this Agreement and the
other Loan Documents;

 

(u)          if
the Property fails to be operated, “flagged” and/or branded pursuant to a Qualified Franchise Agreement;

 

(v)          if
(A) Borrower shall fail in the payment of any rent, additional rent or other charge mentioned in or made payable by the Master
Lease as and when such rent or other charge is payable (unless waived by the landlord under the Master Lease), (B) there shall
occur any default by Borrower, as tenant under the Master Lease, in the observance or performance of any term, covenant or condition
of the Master Lease on the part of Borrower, to be observed or performed (unless waived by the landlord under the Master Lease),
(C) if any one or more of the events referred to in the Master Lease shall occur which would cause the Master Lease to terminate
without notice or action by the landlord under the Master Lease or which would entitle the landlord under the Master Lease to terminate
the Master Lease and the term thereof by giving notice to Borrower, as tenant thereunder (unless waived by the landlord under the
Master Lease), (D) if the leasehold estate created by the Master Lease shall be surrendered or the Master Lease shall expire, be
terminated or canceled for any reason or under any circumstances whatsoever, or (E) if any of the terms, covenants or conditions
of the Master Lease shall in any manner be modified, changed, supplemented, altered, or amended without the consent of Lender;

 

(w)       
With respect to any default or breach of any term, covenant or condition of this Agreement not specified in subsections (a) through
(v) above or not otherwise specifically specified as an Event of Default in this Agreement, if the same is not cured (i)
within ten (10) days after notice from Lender (in the case of any default which can be cured by the payment of a sum of money)
or (ii) for thirty (30) days after notice from Lender (in the case of any other default or breach); provided, that, with respect
to any default or breach specified in subsection (ii), if the same cannot reasonably be cured within such thirty (30) day period
and Borrower shall have commenced to cure the same within such thirty (30) day period and thereafter diligently and expeditiously
proceeds to cure the same, such thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise
of due diligence to cure the same, it being agreed that no such extension shall be for a period in excess of one hundred twenty
(120) days; or

 

    	 	- 105 -	 

     

    

  

(x)         
if any default shall exist under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents
or if any other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the
maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

 

Section 10.2.   Remedies.

 

(a)         Upon
the occurrence and during the continuance of an Event of Default (other than an Event of Default described in Section 10.1(f) above
with respect to Borrower or any SPE Component Entity) and at any time thereafter Lender may, in addition to any other rights or
remedies available to it pursuant to this Agreement, the Security Instrument, the Note and the other Loan Documents or at law or
in equity, take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower
and in the Property, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce
or avail itself of any or all rights or remedies provided in this Agreement, the Security Instrument, the Note and the other Loan
Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in equity.
Upon any Event of Default described in Section 10.1(f) above with respect to Borrower or any SPE Component Entity, the Debt and
all other obligations of Borrower under this Agreement, the Security Instrument, the Note and the other Loan Documents shall immediately
and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand,
anything contained herein or in the Security Instrument, the Note and the other Loan Documents to the contrary notwithstanding.

 

(b)         Upon
the occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and
other remedies available to Lender against Borrower under this Agreement, the Security Instrument, the Note or the other Loan Documents
executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time
to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced
any foreclosure proceeding or other action for the enforcement of its rights and remedies under this Agreement, the Security Instrument,
the Note or the other Loan Documents with respect to the Property. Any such actions taken by Lender shall be cumulative and concurrent
and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may
determine in its sole discretion, to the fullest extent permitted by applicable law, without impairing or otherwise affecting the
other rights and remedies of Lender permitted by applicable law, equity or contract or as set forth herein or in the Security Instrument,
the Note or the other Loan Documents. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default
shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may
be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect
to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by

Borrower or to impair any remedy, right or power consequent
thereon.

 

    	 	- 106 -	 

     

    

  

(c)          With
respect to Borrower and the Properties, nothing contained herein or in any other Loan Document shall be construed as requiring
Lender to resort to any Individual Property (or any portion thereof and/or estate or other interest therein) for the satisfaction
of any of the Debt in preference or priority to any other Individual Property (or any portion thereof and/or estate or other interest
therein), and Lender may seek satisfaction out of all of the Properties (or any portion thereof and/or estate or other interest
therein), in its absolute discretion in respect of the Debt. In addition, Lender shall have the right from time to time to partially
foreclose the Security Instruments in any manner (including, without limitation, on the fee estate (the “Fee Estate Collateral”)
and/or leasehold estate (the “Leasehold Estate Collateral”), in each case, encumbered by said Security Instruments)
and for any amounts secured by the Security Instruments then due and payable, in each case, as determined by Lender in its sole
discretion including, without limitation, the following circumstances: (i) after the occurrence of an Event of Default, Lender
may foreclose one or more of the Security Instruments to recover such delinquent payments, (ii) after the occurrence of an Event
of Default, Lender may elect to foreclose one or more of the Security Instruments on the applicable Fee Estate Collateral and/or
the applicable Leasehold Estate Collateral simultaneously, singularly and/or in any order or priority, in each case, as determined
by Lender in its sole discretion and/or (iii) after the occurrence of an Event of Default, in the event Lender elects to accelerate
less than the entire outstanding principal balance of the Loan, Lender may foreclose one or more of the Security Instruments to
recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by one or more of the
Security Instruments as Lender may elect. Notwithstanding one or more partial foreclosures, the Properties shall remain subject
to the Security Instruments to secure payment of sums secured by the Security Instruments and not previously recovered.

 

(d)         After
the occurrence and during the continuance of an Event of Default, Lender shall have the right from time to time to sever the Note
and the other Loan Documents into one or more separate notes, security instruments and other security documents (the “Severed
Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and
enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly
after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Upon the occurrence and during
the continuance of an Event of Default, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney,
coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid
severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or
execute any such documents under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s
intent to exercise its rights under such power. Borrower shall not be obligated to pay any costs or expenses incurred in connection
with the preparation, execution, recording or filing of the Severed Loan Documents and the Severed Loan Documents shall not (i)
contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties
contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date or (ii) increase Borrower’s
costs, obligations or liabilities or decrease Borrower’s rights, in each case, under the Loan Documents (except to the extent
such costs, liabilities, rights and/or obligations would have been effected had the Severed Loan Documents existed as of the Closing
Date).

 

    	 	- 107 -	 

     

    

  

(e)         Notwithstanding
anything to the contrary contained herein or in any other Loan Document, any amounts recovered from the Property (or any portion
thereof) or any other collateral for the Loan and/or paid to or received by Lender may, after an Event of Default, be applied by
Lender toward the Debt in such order, priority and proportions as Lender in its sole discretion shall determine.

 

(f)        
After the occurrence and during the continuance of an Event of Default, Lender may, but without any obligation to do so and without
notice to or demand on Borrower and without releasing Borrower from any obligation hereunder or being deemed to have cured any
Event of Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner and to such extent as Lender
may deem necessary. Lender is authorized to enter upon the Property for such purposes, or appear in, defend, or bring any action
or proceeding to protect its interest in the Property for such purposes, and the cost and expense thereof (including reasonable
attorneys’ fees to the extent permitted by applicable law), with interest as provided in this Section, shall constitute a
portion of the Debt and shall be due and payable to Lender upon demand. All such costs and expenses incurred by Lender in remedying
such Event of Default or such failed payment or act or in appearing in, defending, or bringing any action or proceeding shall bear
interest at the Default Rate, for the period after such cost or expense was incurred into the date of payment to Lender. All such
costs and expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be deemed to constitute
a portion of the Debt and be secured by the liens, claims and security interests provided to Lender under the Loan Documents and
shall be immediately due and payable upon demand by Lender therefore.

 

ARTICLE 11

 

SECONDARY MARKET

 

Section 11.1.   Securitization.

 

(a)          Lender
shall have the right (i) to sell or otherwise transfer the Loan (or any portion thereof and/or interest therein), (ii) to sell
participation interests in the Loan (or any portion thereof and/or interest therein) or (iii) to securitize the Loan (or any portion
thereof and/or interest therein) in a single asset securitization or a pooled asset securitization. The transactions referred to
in clauses (i), (ii) and (iii) above shall hereinafter be referred to collectively as “Secondary Market Transactions”
and the transactions referred to in clause (iii) shall hereinafter be referred to as a “Securitization”. Any
certificates, notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”.

 

(b)        
If requested by Lender, Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or
which may be reasonably required in the marketplace or by the Rating Agencies in connection with any Secondary Market Transactions,
including, without limitation, to:

 

    	 	- 108 -	 

     

    

 

(i)          provide
(A) updated financial and other information with respect to the Property, the business operated at the Property, Borrower, Guarantor,
Sponsor, SPE Component Entity and Manager which are available using currently in place systems of the aforesaid parties, (B) updated
budgets relating to the Property, (C) updated appraisals, market studies, environmental reviews (Phase I’s and, if appropriate,
Phase II’s), property condition reports and other due diligence investigations of the Property (the “Updated Information”),
together, if customary, with appropriate verification of the Updated Information through letters of auditors or opinions of counsel
acceptable to Lender and the Rating Agencies and (D) revisions to and other agreements with respect to the Property Documents in
form and substance acceptable to Lender and the Rating Agencies;

 

(ii)         provide
new and/or updated opinions of counsel, which may be relied upon by Lender, the Rating Agencies and their respective counsel, agents
and representatives, as to substantive non-consolidation, fraudulent conveyance, matters of Delaware and federal bankruptcy law
relating to limited liability companies, true sale, true lease and any other opinion customary in Secondary Market Transactions
or required by the Rating Agencies with respect to the Property, Property Documents, Borrower and Borrower’s Affiliates,
which counsel and opinions shall be satisfactory in form and substance to Lender and the Rating Agencies;

 

(iii)        provide
updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents
and such additional representations and warranties as the Rating Agencies may require (provided, however, that (without limiting
any other provisions hereof or of the other Loan Documents) Borrower’s inability to make any such additional representation
or warranty without qualification shall not in and of itself constitute an Event of Default hereunder); and

 

(iv)      
execute such amendments to the Loan Documents, the Property Documents and Borrower’s or any SPE Component Entity’s
organizational documents as may be reasonably requested by Lender or requested by the Rating Agencies or otherwise to effect any
Secondary Market Transaction, including, without limitation, (A) to amend and/or supplement the Independent Director provisions
provided herein and therein (including, without limitation, to add an additional Independent Director), in each case, in accordance
with the applicable requirements of the Rating Agencies, (B) bifurcating the Loan into two or more components and/or additional
separate notes and/or creating additional senior/subordinate note structure(s) (any of the foregoing, a “Loan Bifurcation”)
and (C) to modify all operative dates (including but not limited to payment dates, interest period start dates and end dates, etc.)
under the Loan Documents, by up to ten (10) days; provided, however, that Borrower shall not be required to so modify or amend
any Loan Document if such modification or amendment would (I) change the interest rate, the stated maturity (except as provided
in subclause (C) above) or the amortization of principal set forth herein, except in connection with a Loan Bifurcation which may
result in varying fixed interest rates and amortization schedules, but which shall have the same weighted average coupon of the
original Note and provide for the same aggregate interest payments over the life of the Loan (except that such weighted average
coupon and such aggregate interest payments may increase solely as a result of interest rate “creep” following any
prepayment of the Loan during the continuance of an Event of Default or in connection with a prepayment of the Loan as a result
of a Casualty or Condemnation), (II) change the aggregate outstanding principal balance of the Loan, (III) materially and adversely
alter the material restrictions on equity transfers in Borrower or transfers of the Property, in each case, as set forth in this
Agreement, (IV) materially and adversely alter any material limitations on recourse against Borrower or Guarantor contained herein,
or (V) except as provided above, materially and adversely change any material obligation, material right or material privilege
of Borrower or Guarantor set forth in the Loan Documents (except, in the case of each of the foregoing, to the extent the same
would have been affected had the Loan Bifurcation existed as of the Closing Date based on the differences in being a party to a
bifurcated loan as opposed to a non-bifurcated loan).

 

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Notwithstanding anything
herein to the contrary and except as otherwise provided in the immediately succeeding sentence, with respect to any compliance
by any Borrower Party with requests made pursuant to this Section 11.1(b) with respect to any Secondary Market Transaction, (i)
Lender shall pay its owns costs and expenses in connection therewith (including, without limitation, attorneys’ fees and
expenses), (ii) Borrower shall pay all of Lender’s reasonable, out-of-pocket costs and expenses (including, without limitation,
reasonable attorneys’ fees and expenses) solely in connection with the Excluded Items and (iii) Lender shall reimburse Borrower
for any reasonable, out-of-pocket, third party costs incurred by Borrower prior to the consummation of the corresponding Secondary
Market Transaction in Borrower’s complying with requests made pursuant to this Section 11.1(b) (exclusive of the Excluded
Items).

 

(c)          Upon
request, Borrower shall furnish to Lender from time to time such financial data and financial statements as Lender determines to
be necessary, advisable or appropriate for complying with any applicable legal requirements (including those applicable to Lender
or any Servicer (including, without limitation and to the extent applicable, Regulation AB)) within the timeframes necessary, advisable
or appropriate in order to comply with such legal requirements.

 

Section 11.2. Disclosure.

 

(a)          Borrower
(on its own behalf and on behalf of each other Borrower Party) understands that information provided to Lender by Borrower, any
other Borrower Party and/or their respective agents, counsel and representatives may be (i) included in (A) the Disclosure Documents
and (B) filings under the Securities Act and/or the Exchange Act and (ii) made available to Investors, the Rating Agencies and
service providers, in each case, in connection with any Secondary Market Transaction.

 

    	 	- 110 -	 

     

    

  

(b)         Borrower
shall indemnify Lender and its officers, directors, partners, employees, representatives, agents and affiliates against any losses,
claims, damages or liabilities (collectively, the “Liabilities”) to which Lender and/or its officers, directors,
partners, employees, representatives, agents and/or affiliates may become subject in connection with (x) any Disclosure Document
and/or any Covered Rating Agency Information, in each case, insofar as such Liabilities arise out of or are based upon any untrue
statement of any material fact in the Provided Information and/or arise out of or are based upon the omission to state a material
fact in the Provided Information required to be stated therein or necessary in order to make the statements in the applicable Disclosure
Document and/or Covered Rating Agency Information, in light of the circumstances under which they were made, not misleading, provided,
however, such indemnity shall be limited to any untrue statement or material omission made in the Provided Information as of the
date of delivery of such Provided Information to Lender and shall only be effective to the extent that Lender accurately states
the Provided Information in the applicable Disclosure Document or when providing the same to the Rating Agencies (as applicable)
and (y) after a Securitization, any indemnity obligations incurred by Lender or Servicer in connection with any Rating Agency Confirmation.

 

(c)         Promptly
after receipt by an indemnified party under this Section 11.2 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 11.2, notify the indemnifying
party in writing of the commencement thereof (but the omission to so notify the indemnifying party will not relieve the indemnifying
party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that failure
to notify causes prejudice to the indemnifying party). In the event that any action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly with any other
indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified
party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory
to such indemnified party. After notice from the indemnifying party to such indemnified party under this Section 11.2, such indemnifying
party shall pay for any legal or other expenses subsequently incurred by such indemnifying party in connection with the defense
thereof; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified
parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action
on behalf of such indemnified party at the cost of the indemnifying party. Borrower shall not be liable for the expenses of more
than one separate counsel unless an indemnified party shall have reasonably concluded that there may be legal defenses available
to it that are different from or additional to those available to another indemnified party.

 

(d)         The
liabilities and obligations of both Borrower and Lender under this Section 11.2 shall survive the termination of this
Agreement and the satisfaction and discharge of the Debt. Failure by Borrower and/or any Borrower Party to comply with the
provisions of Section 11.1 and/or Section 11.2 within the timeframes specified therein and/or as otherwise required by Lender
shall, at Lender’s option, constitute a breach of the terms thereof and/or an Event of Default. Borrower (on its own
behalf and on behalf of each Borrower Party) hereby expressly authorizes and appoints Lender its attorney-in-fact to take any
actions required of any Borrower Party under Sections 11.1, 11.2, 11.6 and/or 11.8 in the event any Borrower Party fails to
do the same, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest, provided,
however, that Lender shall not exercise said power until five (5) Business Days after notice has been given to Borrower by
Lender of Lender’s intent to exercise its rights under such power and Borrower fails to act within such five (5)
Business Day period. Notwithstanding anything to the contrary contained herein, (i) except as may otherwise expressly
provided to the contrary in this Article 11, each Borrower Party shall bear its own cost of compliance with this Article
(including, without limitation, the costs of any ongoing financial reporting or similar provisions contained herein) and (ii)
to the extent that the timeframes for compliance with such ongoing financial reporting and similar provisions are shorter
than the timeframes allowed for comparable reporting obligations under Section 4.12 hereof (if any), the timeframes under
this Article 11 shall control.

 

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Section 11.3.   Reserves/Escrows.
In the event that Securities are issued in connection with the Loan, all funds held by Lender in escrow or pursuant to reserves
in accordance with this Agreement and the other Loan Documents shall be deposited in “eligible accounts” at “eligible
institutions” and, to the extent applicable, invested in “permitted investments” as then defined and required
by the Rating Agencies.

 

Section 11.4.  Servicer.
At the option of Lender, the Loan may be serviced by one or more servicer/special servicer/trustee selected by Lender (collectively,
the “Servicer”) and Lender may delegate all or any portion of its responsibilities under this Agreement and
the other Loan Documents to such Servicer pursuant to a servicing agreement between Lender and such Servicer (any such agreement,
the “PSA”). Borrower shall pay any customary fees, costs and expenses of the Servicer and any reasonable third-party
fees and expenses in connection with a prepayment, release of the Property, approvals under the Loan Documents requested by Borrower,
modification of the Loan subject to and in accordance with any servicing agreement or similar agreement entered into in connection
with a Securitization, as well as (i) any amounts payable in respect of advances (including protective advances, special servicer
fee advances and advances of delinquent debt service payments), together with interest thereon, made pursuant to the servicing
agreement, in each case, to the extent late charges and default interest actually paid by Borrower in respect of such payments
are insufficient to pay the same, (ii) “liquidation fees” in the amounts set forth in the servicing agreement, (iii)
“workout fees” in the amounts set forth in the servicing agreement, and (iv) “special servicing fees” for
the Loan upon the Loan becoming a specially serviced loan pursuant to the servicing agreement in the amounts set forth in the servicing
agreement; provided, however, as set forth in Section 17.6 hereof, Borrower shall not be responsible for any set-up fees
or any other initial costs relating to or arising under any PSA and Borrower shall not be responsible for payment of any initial
set-up fees and the monthly master servicing fee due to the master servicer under any PSA. Notwithstanding the foregoing, Borrower
shall not be responsible for reimbursement of any duplicative fees, costs and/or expenses that have otherwise been paid by Borrower
pursuant to the terms hereof.

 

Section 11.5. Rating
Agency Costs.   In connection with any Rating Agency Confirmation
or other Rating Agency consent, approval or review required hereunder (other than the initial review of the Loan by the Rating
Agencies in connection with a Securitization), Borrower shall pay all of the costs and expenses of Lender, Servicer and each Rating
Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency in connection therewith.

 

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Section 11.6. Mezzanine
Option. Lender shall have the option (the “Mezzanine Option”) at any time to divide the Loan into two parts,
a mortgage loan and a mezzanine loan, provided, that (i) the total loan amounts for such mortgage loan and such mezzanine loan
shall equal the then outstanding amount of the Loan immediately prior to Lender’s exercise of the Mezzanine Option, (ii)
the weighted average interest rate of such mortgage loan and mezzanine loan shall initially equal the Interest Rate and (iii) Borrower’s
other rights and obligations under the Loan Documents shall not be otherwise materially and adversely affected (except to the extent
that the same would be affected had the Loan been divided into a mortgage loan and a mezzanine loan on the Closing Date). Borrower
shall, at Borrower’s sole cost and expense, cooperate with Lender in Lender’s exercise of the Mezzanine Option in good
faith and in a timely manner, which such cooperation shall include, but not be limited to, (i) executing such amendments to the
Loan Documents and Borrower or any SPE Component Entity’s organizational documents as may be reasonably requested by Lender
or requested by the Rating Agencies, (ii) creating one or more Single Purpose Entities (the “Mezzanine Borrower”),
which such Mezzanine Borrower shall (A) own, directly or indirectly, 100% of the equity ownership interests in Borrower (the “Equity
Collateral”), and (B) together with such constituent equity owners of such Mezzanine Borrower as may be designated by
Lender, execute such agreements, instruments and other documents as may be required by Lender in connection with the mezzanine
loan (including, without limitation, a promissory note evidencing the mezzanine loan and a pledge and security agreement pledging
the Equity Collateral to Lender as security for the mezzanine loan); and (iii) delivering such opinions, title endorsements, UCC
title insurance policies, documents and/or instruments relating to the Property Documents and other materials as may be required
by Lender or the Rating Agencies. Notwithstanding anything herein to the contrary, Lender shall reimburse Borrower for any reasonable,
out-of-pocket, third party costs incurred by Borrower in connection with this Section 11.6 (exclusive of the Excluded Items).

 

Section 11.7. Conversion
to Registered Form. At the request of Lender, Borrower shall appoint, as its agent, a registrar and transfer agent (the “Registrar”)
reasonably acceptable to Lender which shall maintain, subject to such reasonable regulations as it shall provide, such books and
records as are necessary for the registration and transfer of the Note in a manner that shall cause the Note to be considered to
be in registered form for purposes of Section 163(f) of the IRS Code. The option to convert the Note into registered form once
exercised may not be revoked. Any agreement setting out the rights and obligation of the Registrar shall be subject to the reasonable
approval of Lender. Borrower may revoke the appointment of any particular person as Registrar, effective upon the effectiveness
of the appointment of a replacement Registrar. The Registrar shall not be entitled to any fee from Borrower or Lender or any other
lender in respect of transfers of the Note and other Loan Documents.

 

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Section 11.8. Uncross of Properties.

 

(a)         Borrower
agrees that at any time Lender shall have the unilateral right to elect to, from time to time, uncross any of the Properties (such
uncrossed Property or Properties, collectively, the “Affected Property” and the remaining Property or Properties,
collectively, the “Unaffected Property”) in order to separate the Loan from the portion of the Debt to be secured
by the Affected Property (such portion of the Debt to be secured by the Affected Property, the “Uncrossed Loan”
and the remaining portion of the Debt secured by the Unaffected Property, the “Remaining Loan”). In furtherance
thereof, Lender shall have the right to (i) sever and/or divide the Note and the other Loan Documents so that (A) the original
Loan Documents (collectively, the “Remaining Loan Documents”) evidence and secure only the Remaining Loan and
relate only to the Unaffected Property and (B) amended and/or new documents and other instruments (collectively, the “Uncrossed
Loan Documents”) evidence and secure only the Uncrossed Loan and relate only to the Affected Property, (ii) allocate
the applicable portion of each of the Reserve Funds relating to the Affected Property to the Uncrossed Loan, (iii) release any
cross-default and/or cross-collateralization provisions applicable to such Affected Property (but such Affected Property shall
be cross-defaulted an cross-collateralized with each other Affected Property) and (iv) take such additional actions consistent
therewith (including, without limitation, requiring delivery of the Uncrossed Loan Documents and amendments to the Loan Documents,
in each case, to give effect to the foregoing); provided, that the Uncrossed Loan Documents and the Remaining Loan Documents, shall
not, in the aggregate, increase (A) any material monetary obligation of Borrower under the Loan Documents or (B) any other material
obligation of Borrower under the Loan Documents in any material respect. In connection with the uncrossing of any such Affected
Property as provided for in this Section 11.8 (an “Uncrossing Event”), the Remaining Loan shall be reduced by
an amount equal to amount of the Uncrossed Loan and the Uncrossed Loan shall be in an amount equal to the Allocated Loan Amount
applicable to the Affected Property.

 

(b)         Borrower
shall (and shall cause each Borrower Party to) fully cooperate with Lender to effectuate each Uncrossing Event. Without limitation
of the foregoing, upon Lender’s request, Borrower shall (and shall cause each Borrower Party to), among other things, (i)
deliver evidence to Lender that the single purpose nature and bankruptcy remoteness of the Borrower(s) owning Properties other
than the Affected Property following such Uncrossing Event have not been adversely affected and are in accordance with the terms
and provisions of the Remaining Loan Documents; (ii) deliver evidence to Lender that the single purpose nature and bankruptcy remoteness
of the Borrower(s) owning the Affected Property following such release have not been adversely affected and are in accordance with
the terms and provisions of the Uncrossed Loan Documents; (iii) deliver to Lender such legal opinions and updated legal opinions
as Lender shall reasonably require or the Rating Agencies shall require (including, without limitation, a New Non-Consolidation
Opinion and a REMIC Opinion); (iv) take the actions contemplated in subsection (a) above (including, without limitation, executing
the Uncrossed Loan Documents and amendments to the Loan Documents); and (v) deliver such title endorsements, title insurance policies,
documents and/or instruments relating to the Property Documents and other materials as may be reasonably required by Lender or
required by the Rating Agencies.

 

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ARTICLE 12

 

INDEMNIFICATIONS

 

Section
12.1.       General Indemnification. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless
the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties
and directly or indirectly arising out of or in any way relating to any one or more of the following: (a) any accident, injury
to or death of persons or loss of or damage to property occurring in, on or about the Property or any part thereof or on the adjoining
sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (b) any use, nonuse or condition in, on or about
the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or
ways; (c) performance of any labor or services or the furnishing of any materials or other property in respect of the Property
or any part thereof; (d) any failure of the Property (or any portion thereof) to be in compliance with any applicable Legal Requirements;
(e) any and all claims and demands whatsoever which may be asserted against Lender by reason of any alleged obligations or undertakings
on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease, management agreement or
any Property Document; (f) the payment of any commission, charge or brokerage fee to anyone (other than a broker or other agent
retained by Lender) which may be payable in connection with the funding of the Loan evidenced by the Note and secured by the Security
Instrument; and/or (g) the holding or investing of the funds on deposit in the Accounts or the performance of any work or the disbursement
of funds in each case in connection with the Accounts. Notwithstanding the foregoing, the foregoing indemnity of Borrower shall
not be deemed to extend to any Losses incurred by any Indemnified Party that Borrower can establish (to Lender’s reasonable
satisfaction) (i) arose as the direct result of the gross negligence or willful misconduct of such Indemnified Party or (ii) were
caused by events first occurring (as opposed to being first discovered) after the Lender Control Date. Any amounts payable to Lender
by reason of the application of this Section 12.1 shall become immediately due and payable and shall bear interest at the Default
Rate from the date loss or damage is sustained by Lender until paid.

 

Section
12.2.       Mortgage and Intangible Tax Indemnification. Borrower shall, at its sole cost and expense, protect, defend, indemnify,
release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against
any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making and/or recording
of the Security Instrument, the Note or any of the other Loan Documents (but excluding any income, franchise or other similar taxes).

 

Section
12.3.       ERISA Indemnification. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless
the Indemnified Parties from and against any and all Losses (including, without limitation, reasonable attorneys’ fees and
costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction or in
the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required,
in Lender’s sole discretion) that Lender may incur, directly or indirectly, as a result of a default under Sections 3.7 or
4.19 of this Agreement.

 

    	 	- 115 -	 

     

    

 

Section
12.4.      Duty to Defend, Legal Fees and Other Fees and Expenses. Upon written request by any Indemnified Party, Borrower shall
defend such Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other
professionals approved by the Indemnified Parties (which such approval shall not be unreasonably withheld, conditioned or delayed).
Notwithstanding the foregoing, any Indemnified Parties may, in their sole discretion, engage their own attorneys and other professionals
to defend or assist them, and, at the option of Indemnified Parties, their attorneys shall control the resolution of any claim
or proceeding. Upon demand, Borrower shall pay or, in the sole discretion of the Indemnified Parties, reimburse, the Indemnified
Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and
other professionals in connection therewith.

 

Section
12.5.      Survival. The obligations and liabilities of Borrower under this Article 12
shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of
foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument.

 

Section
12.6.       Environmental Indemnity. Simultaneously herewith, Borrower and Guarantor have executed and delivered the Environmental
Indemnity to Lender, which Environmental Indemnity is not secured by the Security Instrument.

 

ARTICLE 13

 

EXCULPATION

 

Section 13.1.       Exculpation.

 

(a)          Subject
to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations
contained in the Note, this Agreement, the Security Instrument or the other Loan Documents by any action or proceeding wherein
a money judgment or any deficiency judgment or other judgment establishing personal liability shall be sought against Borrower,
Guarantor or any Exculpated Party, except that Lender may bring a foreclosure action, an action for specific performance or any
other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement,
the Security Instrument and the other Loan Documents, or in the Property (or any portion thereof), the Rents, or any other collateral
given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in
any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property,
in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Security Instrument
and the other Loan Documents, shall not sue for, seek or demand any deficiency judgment against Borrower or any of the Exculpated
Parties in any such action or proceeding under or by reason of or under or in connection with the Note, this Agreement, the Security
Instrument or the other Loan Documents. The provisions of this Section shall not, however, (1) constitute a waiver, release or
impairment of any obligation evidenced or secured by any of the Loan Documents; (2) impair the right of Lender to name Borrower
as a party defendant in any action or suit for foreclosure and sale under the Security Instrument; (3) affect the validity or enforceability
of any indemnity, guaranty or similar instrument (including, without limitation, indemnities set forth in Article 12 hereof, Section
11.2 hereof, in the Guaranty and the Environmental Indemnity) made in connection with the Loan or any of the rights and remedies
of Lender thereunder (including, without limitation, Lender’s right to enforce said rights and remedies against Borrower
and/or Guarantor (as applicable) personally and without the effect of the exculpatory provisions of this Article 13); (4) impair
the rights of Lender to (A) obtain the appointment of a receiver and/or (B) enforce its rights and remedies provided in Articles
8 and 9 hereof; (5) impair the enforcement of the assignment of leases and rents contained in the Security Instrument and in any
other Loan Documents; (6) impair the right of Lender to enforce Section 4.12(e) of this Agreement (provided, that, there shall
be no recourse liability under such Section 4.12(e) if Sufficient Revenue did not exist to pay the sums due thereunder); (7) constitute
a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted by the
Security Instrument or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against
the Property (or any portion thereof), which such deficiency judgment shall (unless otherwise provided below) be limited to Borrower’s
interests in the Property; or (8) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower,
by money judgment or otherwise, to the extent of any Loss incurred by Lender (including attorneys’ fees and costs reasonably
incurred) arising out of or in connection with the following:

 

    	 	- 116 -	 

     

    

 

 

(i)          fraud or
intentional misrepresentation by any Borrower Party in connection with the Loan;

 

(ii)         the gross negligence or willful misconduct
of any Borrower Party;

 

(iii)        any litigation
or other legal proceeding related to the Debt filed by any Borrower Party or any other action of any Borrower Party that delays,
opposes, impedes, obstructs, hinders, enjoins or otherwise interferes with or frustrates the efforts of Lender to exercise any
rights and remedies available to Lender as provided herein and in the other Loan Documents;

 

(iv)        physical
waste to the Property (or any portion thereof) caused by the intentional acts or intentional omissions of any Borrower Party (to
the extent there existed Sufficient Revenue to avoid the same) and/or the removal or disposal of any material portion of the Property
after an Event of Default (unless, with respect to the removal of Personal Property, such Personal Property is obsolete or contemporaneously
replaced with Personal Property of equal or greater value and utility);

 

(v)         the misapplication,
misappropriation or conversion by any Borrower Party of (A) any insurance proceeds paid by reason of any loss, damage or destruction
to the Property (or any portion thereof), (B) any Awards or other amounts received in connection with the Condemnation of all or
a portion of the Property, (C) any Rents, (D) any Security Deposits or Rents collected in advance or (E) any other monetary collateral
for the Loan (including, without limitation, any Reserve Funds and/or any portion thereof disbursed to (or at the direction of)
Borrower);

 

    	 	- 117 -	 

     

    

 

(vi)        failure
to pay Taxes, charges for labor or materials or other charges that can create liens on any portion of the Property in accordance
with the terms and provisions hereof (provided, that, there shall be no recourse liability under this subsection (vi) (A) if Sufficient
Revenue did not exist to pay the applicable sums due or (B) with respect to any Taxes or charges which first accrued following
the Lender Control Date);

 

(vii)       failure
to pay Insurance Premiums, to maintain the Policies in full force and effect and/or to provide Lender evidence of the same, in
each case, as expressly provided herein (provided, that, (A) the failure to provide such evidence shall not be deemed a recourse
event hereunder to the extent that (I) Borrower cures such failure within five (5) days of notice thereof from Lender and (II)
Borrower provides evidence reasonably acceptable to Lender that the Policies were at all times kept in full force and effect and
(B) there shall be no recourse liability under this subsection (vii) with respect to (I) the failure to pay Insurance Premiums
if (y) Sufficient Revenue did not exist to pay the applicable sums due or (z) such sums first accrued following the Lender Control
Date or (II) the failure to maintain the Policies if such failure first occurred (as opposed to was first discovered) after the
Lender Control Date);

 

(viii)      any Security
Deposits which are not delivered to Lender within the timeframe required hereunder except to the extent any such Security Deposits
were applied in accordance with the terms and conditions of any of the Leases prior to the occurrence of the applicable Event of
Default. For purposes of clarification, for a Security Deposit to be deemed “delivered to Lender” in connection with
the foregoing, the same must be in the form of cash or in a letter of credit solely in Lender’s name;

 

(ix)        any tax
on the making and/or recording of the Security Instrument, the Note or any of the other Loan Documents or any transfer or similar
taxes (whether due upon the making of the same or upon Lender’s exercise of its remedies under the Loan Documents), but excluding
any income, franchise or other similar taxes;

 

(x)         any violation
or breach of any applicable law by any member of the Borrower Group mandating the forfeiture or seizure of the Property (or any
portion thereof and/or interest therein);

 

(xi)        the failure
by any member of the Borrower Group to make any REMIC Payment and/or any True Up Payment, to permit on-site inspections of the
Property (or any portion thereof) as and when required herein (provided, that, there shall be no recourse liability under this
subsection (xi) (A) if the applicable failure first occurred (as opposed to was first discovered) after the Lender Control Date
and (B) with respect to the failure to make any True Up Payment or REMIC Payment, if Sufficient Revenue did not exist to pay the
applicable sums due);

 

(xii)       any violation
or breach of the Property Document Provisions, the Hotel Provisions and/or the Master Lease Provisions and/or any Property Document
Event caused by the acts or omissions of (or on behalf of) any Borrower Party (or Affiliate thereof) (provided, that, there shall
be no recourse liability under this subsection (xii) if the applicable violation, breach or Property Document Event first occurred
(as opposed to was first discovered) after the Lender Control Date);

 

    	 	- 118 -	 

     

    

 

(xiii)      any indemnity
obligations of Lender to Bank under the Restricted Account Agreement (provided, that, there shall be no recourse liability under
this subsection (xiii) with respect to the failure to make any indemnity payment if Sufficient Revenue did not exist to pay the
applicable sums due);

 

(xiv)      any failure
by any member of the Borrower Group to comply with the Cash Management Provisions, to appoint a new property manager upon the request
of Lender or to comply with any limitations on instructing the property manager, each as required by and in accordance with, as
applicable, the terms and provisions of, this Agreement and the other Loan Documents (provided, that, there shall be no recourse
liability under this subsection (xiv) if the applicable failure first occurred (as opposed to was first discovered) after the Lender
Control Date);

 

(xv)     any violation or breach by any member of the
Borrower Group of Sections

11.1, 11.6 and/or 11.8 hereof which continues for ten
(10) Business Days after notice of the same is delivered by Lender to Borrower; and/or

 

(xvi)      any breach
or violation by any member of the Borrower Group of any representation, warranty or covenant contained in Article 5 hereof (provided,
however, that, with respect to breaches or violations of covenants contained in Article 5 hereof (as distinguished from representations
or warranties contained therein), any such breach or violation shall not result in recourse liability under this subsection (xvi)
if (A) such breach or violation was inadvertent, non-recurring and immaterial and (B) within ten (10) Business Days of the occurrence
thereof, (y) Borrower cures such breach or violation and (z) provides Lender with (I) written evidence of same and (II) a New Non-Consolidation
Opinion).

 

(b)          Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived
any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a
claim for the full amount of the Debt or to require that all collateral shall continue to secure all of the Debt owing to Lender
in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower in the event that: (i) any representation,
warranty or covenant contained in Article 5 hereof is violated or breached (which breach or violation is evidenced by a court,
in a proceeding or other action with respect to Creditors Rights Laws involving any one or more direct or indirect constituent
owner(s) of Borrower and/or SPE Component Entity (any such person or entity, a “Bankrupt Person”), ordering
the substantive consolidation of the assets and liabilities of Borrower and/or SPE Component Entity with the assets and liabilities
of any Bankrupt Person on the basis of, among other things, such breach or violation); (ii) any representation, warranty or covenant
contained in Article 6 hereof is violated or breached; (iii) a Bankruptcy Event occurs; (iv) without Lender’s prior written
consent, the Master Lease is terminated, cancelled, expires or otherwise ceases to exist; and/or (v) any Franchise Agreement is
terminated, cancelled, expires or otherwise ceases to exist (unless, prior to or contemporaneously with such termination, cancellation
or other cessation, Borrower engages a Qualified Franchisor for the Property pursuant to a Qualified Franchise Agreement in accordance
with the applicable terms and conditions hereof).

 

    	 	- 119 -	 

     

    

 

(c)          Notwithstanding
anything to the contrary contained herein or in any Loan Document, (i) no Exculpated Party shall have any personal liability for,
nor be joined as a party to any action (except as required by Legal Requirements) with respect to (A) the payment of any sum of
money which is or may be payable hereunder or under the Note or the other Loan Documents in accordance with the terms of the Loan
Documents, including, but not limited to, the repayment of the Debt or (B) the performance or discharge of any covenants, obligations
or undertakings of Borrower or Guarantor with respect thereto and (ii) in no event will the assets of any Exculpated Party (including
any distributions made by Borrower, Guarantor and/or Sponsor to their direct or indirect members, partners or shareholders in the
ordinary course of business in accordance with the applicable terms and conditions hereof and of the other Loan Documents and the
applicable organizational documents) be available to satisfy any obligation of Borrower or Guarantor, as applicable, in respect
of Borrower's or Guarantor's, as applicable, obligations pursuant to any Loan Document.

 

ARTICLE 14

 

NOTICES

 

Section
14.1.      Notices. All notices or other written communications hereunder shall be deemed to have been properly given (a) upon delivery,
if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof and confirmed by telephone
by sender, (b) one (1) Business Day after having been deposited for overnight delivery with any reputable overnight courier service,
or (c) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S.
Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

 

	If to Borrower:	c/o The Lightstone Group LLC
	 	1985 Cedar Bridge Avenue, Suite 1
	 	Lakewood, NJ  08701
	 	Attention: Joseph E. Teichman, Esq.
	 	Facsimile No.:  (732) 612-1444
	 	 
	With a copy to:	Eckert Seamans Cherin & Mellott, LLC
	 	600 Grant Street, 44th Floor
	 	Pittsburgh, PA  15219
	 	Attention: Timothy Q. Hudak, Esq.
	 	Facsimile No.:  (412) 566-6099
	 	 
	If to Lender:	Citigroup Global Markets Realty Corp.
	 	390 Greenwich Street
	 	7th Floor
	 	New York, New York 10013
	 	Attention : Ana Rosu Marmann
	 	Facsimile No.:  (646) 328-2938

 

    	 	- 120 -	 

     

    

 

	With a copy to:	Wells Fargo Bank
	 	550 Tryon Street, 12th Floor
	 	Charlotte, NC 28202
	 	MAC D1086-120
	 	Attention: Luke Mayes
	 	Facsimile No.:  (704) 715-0347
	 	 
	With a copy to:	Alston & Bird LLP
	 	90 Park Avenue
	 	New York, New York 10016
	 	Attention: Gerard Keegan, Esq.
	 	Facsimile No.:  (212) 210-9444

 

or addressed as such party may
from time to time designate by written notice to the other parties.

 

Either party
by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

ARTICLE 15

 

FURTHER ASSURANCES

 

Section
15.1.       Replacement Documents. Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation
of the Note, this Agreement or any of the other Loan Documents which is not of public record, and, in the case of any such mutilation,
upon surrender and cancellation of the Note, this Agreement or such other Loan Document, Borrower will issue, in lieu thereof,
a replacement thereof, dated the date of the Note, this Agreement or such other Loan Document, as applicable, in the same principal
amount thereof and otherwise of like tenor.

 

Section 15.2.       Recording of
Security Instrument, etc.

 

(a)          Borrower
forthwith upon the execution and delivery of the Security Instrument and thereafter, from time to time, will cause the Security
Instrument and any of the other Loan Documents creating a lien or security interest or evidencing the lien hereof upon the Property
and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required
by any present or future law in order to publish notice of and fully to protect and perfect the lien or security interest hereof
upon, and the interest of Lender in, the Property. Borrower will pay all taxes, filing, registration or recording fees, and all
expenses incident to the preparation, execution, acknowledgment and/or recording of the Note, the Security Instrument, this Agreement,
the other Loan Documents, any note, deed of trust or mortgage supplemental hereto, any security instrument with respect to the
Property and any instrument of further assurance, and, except as expressly provided to the contrary herein, any modification or
amendment of the foregoing documents, and all federal, state, county and municipal taxes, duties, imposts, assessments and charges
arising out of or in connection with the execution and delivery of the Security Instrument, any deed of trust or mortgage supplemental
hereto, any security instrument with respect to the Property or any instrument of further assurance, and, except as expressly provided
to the contrary herein, any modification or amendment of the foregoing documents, except where prohibited by applicable law so
to do. The foregoing taxes, fees, expenses, duties, imposts, assessments and charges, as applicable, are herein referred to as
the “Security Instrument Taxes”.

 

    	 	- 121 -	 

     

    

 

(b) Borrower
represents that it has paid, or will pay upon recording (in which event sufficient funds for said payment are on reserve with the
applicable title insurance company), all Security Instrument Taxes imposed upon the execution and recordation of each Security
Instrument. If at any time Lender reasonably determines, based on applicable Legal Requirements, that Lender is not being afforded
the maximum amount of security available from any one or more of the Properties as a direct or indirect result of applicable Security
Instrument Taxes not having been paid with respect to any Individual Property, Borrower agrees that Borrower will execute, acknowledge
and deliver to Lender, immediately upon Lender’s request, supplemental affidavits increasing the amount of the Debt attributable
to any such Individual Property to an amount reasonably determined by Lender to be equal to the lesser of (i) the greater of the
fair market value of the applicable Individual Property (1) as of the date hereof and (2) as of the date such supplemental affidavits
are to be delivered to Lender, and (ii) the amount of the Debt attributable to any such Individual Property (as set forth on Schedule
III hereof), and Borrower shall, on demand, pay any additional Security Instrument Taxes.

 

Section
15.3.      Further Acts, etc. Borrower will, at the cost of Borrower, and without expense to Lender, do, execute, acknowledge and
deliver all and every further acts, deeds, conveyances, deeds of trust, mortgages, assignments, notices of assignments, transfers
and assurances as Lender shall, from time to time, reasonably require, for the better assuring, conveying, assigning, transferring,
and confirming unto Lender the property and rights hereby mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged,
assigned, warranted and transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become bound
to convey or assign to Lender, or for carrying out the intention or facilitating the performance of the terms of this Agreement
or for filing, registering or recording the Security Instrument, or for complying with all Legal Requirements. Borrower, on demand,
will execute and deliver, and in the event it shall fail to so execute and deliver, hereby authorizes Lender to execute in the
name of Borrower or without the signature of Borrower to the extent Lender may lawfully do so, one or more financing statements
to evidence more effectively the security interest of Lender in the Property. Upon the occurrence and during the continuance of
an Event of Default, Borrower grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising
and perfecting any and all rights and remedies available to Lender at law and in equity, including without limitation, such rights
and remedies available to Lender pursuant to this Section 15.3.

 

    	 	- 122 -	 

     

    

 

Section 15.4.       Changes in Tax, Debt, Credit and Documentary
Stamp Laws.

 

(a)          If any
law is enacted or adopted or amended after the date of this Agreement which deducts the Debt from the value of the Property for
the purpose of taxation and which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in the Property,
Borrower will pay the tax, with interest and penalties thereon, if any. If Lender is advised by counsel chosen by it that the payment
of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense of usury then Lender
shall have the option by written notice of not less than one hundred twenty (120) days to declare the Debt immediately due and
payable.

 

(b)          Borrower
will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges
assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed value
of the Property, or any part thereof, for real estate tax purposes by reason of the Security Instrument or the Debt. If such claim,
credit or deduction shall be required by applicable law, Lender shall have the option, by written notice of not less than one hundred
twenty (120) days, to declare the Debt immediately due and payable.

 

(c)          If at any
time the United States of America, any State thereof or any subdivision of any such State shall require revenue or other stamps
to be affixed to the Note, the Security Instrument, or any of the other Loan Documents or impose any other tax or charge on the
same, Borrower will pay for the same, with interest and penalties thereon, if any.

 

(d)          Borrower
shall not be required to defease the Loan or to pay any prepayment premium, fee or penalty whatsoever in connection with any mandatory
prepayment required pursuant to this Section 15.4.

 

ARTICLE 16

 

WAIVERS

 

Section 16.1.       Remedies Cumulative; Waivers.

 

The rights,
powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which
Lender may have against Borrower pursuant to this Agreement, the Security Instrument, the Note or the other Loan Documents, or
existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or
otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise
any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed
as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient.
A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default
or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.

 

    	 	- 123 -	 

     

    

 

Section 16.2.       Modification, Waiver in Writing.

 

No modification,
amendment, extension, discharge, termination or waiver of any provision of this Agreement, the Security Instrument, the Note and
the other Loan Documents, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall
be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only
in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.

 

Section 16.3.       Delay Not a Waiver.

 

Neither any
failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement,
or exercising any right, power, remedy or privilege under this Agreement, the Security Instrument, the Note or the other Loan Documents,
or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial
exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular,
and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Security
Instrument, the Note or the other Loan Documents, Lender shall not be deemed to have waived any right either to require prompt
payment when due of all other amounts due under this Agreement, the Security Instrument, the Note and the other Loan Documents,
or to declare a default for failure to effect prompt payment of any such other amount.

 

Section 16.4.       Waiver of Trial by Jury.

 

BORROWER AND
LENDER, BY ACCEPTANCE OF THIS AGREEMENT, HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE
LOAN, THE APPLICATION FOR THE LOAN, THIS AGREEMENT, THE NOTE, THE SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR
OMISSIONS OF LENDER OR BORROWER.

 

Section 16.5.       Waiver of Notice.

 

Borrower shall
not be entitled to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this Agreement
specifically and expressly provides for the giving of notice by Lender to Borrower and (b) with respect to matters for which Lender
is required by applicable law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender
with respect to any matter for which this Agreement does not specifically and expressly provide for the giving of notice by Lender
to Borrower.

 

Section 16.6.       Remedies of Borrower.

 

In the event
that a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case
where by applicable law or under this Agreement, the Security Instrument, the Note and the other Loan Documents, Lender or such
agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents
shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive
relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether Lender has acted reasonably
shall be determined by an action seeking declaratory judgment. Lender agrees that, in such event, it shall cooperate in expediting
any action seeking injunctive relief or declaratory judgment.

 

    	 	- 124 -	 

     

    

 

Section 16.7.       Marshalling and Other Matters.

 

Borrower hereby
waives, to the extent permitted by applicable Legal Requirements, the benefit of all appraisement, valuation, stay, extension,
reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale under the Security
Instrument of the Property or any part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights
of redemption from sale under any order or decree of foreclosure of the Security Instrument on behalf of Borrower, and on behalf
of each and every person acquiring any interest in or title to the Property subsequent to the date of the Security Instrument and
on behalf of all persons to the extent permitted by applicable Legal Requirements.

 

Section
16.8.      Waiver of Statute of Limitations. To the extent permitted by applicable Legal Requirements, Borrower hereby expressly
waives and releases to the fullest extent permitted by applicable Legal Requirements, the pleading of any statute of limitations
as a defense to payment of the Debt or performance of its obligations hereunder, under the Note, Security Instrument or other Loan
Documents.

 

Section
16.9.       Waiver of Counterclaim. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim,
in any action or proceeding brought against it by Lender or its agents.

 

Section
16.10.     Sole Discretion of Lender. Wherever pursuant to this Agreement (a) Lender exercises any right given to it to approve
or disapprove, (b) any arrangement or term is to be satisfactory to Lender, or (c) any other decision or determination is to be
made by Lender, the decision to approve or disapprove all decisions that arrangements or terms are satisfactory or not satisfactory,
and all other decisions and determinations made by Lender, shall be in the sole discretion of Lender, except as may be otherwise
expressly and specifically provided herein.

 

ARTICLE 17

 

MISCELLANEOUS

 

Section
17.1.      Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates
delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note,
and shall continue in full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period
is expressly set forth in this Agreement, the Security Instrument, the Note or the other Loan Documents. Whenever in this Agreement
any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns
of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit
of the legal representatives, successors and assigns of Lender.

 

    	 	- 125 -	 

     

    

 

Section
17.2.       Governing Law. THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY
BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW
YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY,
AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE
PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT
TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE, IT BEING UNDERSTOOD THAT, TO
THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY
AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED
BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS
THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW.

 

ANY LEGAL SUIT, ACTION OR PROCEEDING
AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS WILL, AT LENDER’S OPTION,
BE INSTITUTED IN (OR, IF PREVIOUSLY INSTITUTED, MOVED TO) ANY FEDERAL OR STATE COURT DESIGNATED BY LENDER IN THE CITY OF NEW YORK,
COUNTY OF NEW YORK. EACH OF LENDER AND BORROWER HEREBY (I) WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE
AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING AND (II) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER AND LENDER HEREBY ACKNOWLEDGE AND AGREE THAT THE FOREGOING AGREEMENT,
WAIVER AND SUBMISSION ARE MADE PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

    	 	- 126 -	 

     

    

 

BORROWER DOES HEREBY DESIGNATE
AND APPOINT:

 

The Lightstone Group

460 Park Avenue

13th Floor

New York, NY 10022

Attention: General Counsel

 

AS ITS AUTHORIZED AGENT TO ACCEPT
AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY
FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF
SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO
LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE
AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN
OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

 

Section
17.3.     Headings. The Article and/or Section headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose.

 

Section
17.4.      Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable Legal Requirements, but if any provision of this Agreement shall be prohibited by or invalid under applicable
Legal Requirements, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

 

Section
17.5.       Preferences. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments
by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender,
which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any Creditors Rights Laws, state or federal law, common
law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended
to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by
Lender.

 

    	 	- 127 -	 

     

    

 

Section
17.6.      Expenses. Borrower covenants and agrees to pay its own costs and expenses and pay, or, if Borrower fails to pay, to reimburse,
Lender, upon receipt of written notice from Lender, for Lender’s reasonable costs and expenses (including reasonable, actual
attorneys’ fees and disbursements) in each case, incurred by Lender in accordance with this Agreement in connection with
(i) the preparation, negotiation, execution and delivery of this Agreement, the Security Instrument, the Note and the other Loan
Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions
by counsel for Borrower (including without limitation any opinions requested by Lender as to any legal matters arising under this
Agreement, the Security Instrument, the Note and the other Loan Documents with respect to the Property); (ii) Borrower’s
ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement, the
Security Instrument, the Note and the other Loan Documents on its part to be performed or complied with after the Closing Date,
including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing
performance and compliance with all agreements and conditions contained in this Agreement, the Security Instrument, the Note and
the other Loan Documents on its part to be performed or complied with after the Closing Date (including, without limitation, those
contained in Articles 8 and 9 hereof); (iv) the negotiation, preparation, execution, delivery and administration of any consents,
amendments, waivers or other modifications to this Agreement, the Security Instrument, the Note and the other Loan Documents and
any other documents or matters requested by Lender (except as otherwise expressly provided to the contrary herein); (v) securing
Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording
fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions,
and other similar expenses incurred in creating and perfecting the lien in favor of Lender pursuant to this Agreement, the Security
Instrument, the Note and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims
or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower,
this Agreement, the Security Instrument, the Note, the other Loan Documents, the Property, or any other security given for the
Loan; (viii) servicing the Loan (including, without limitation, enforcing any obligations of or collecting any payments due from
Borrower under this Agreement, the Security Instrument, the Note and the other Loan Documents or with respect to the Property)
or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of
a “work-out” or of any insolvency or bankruptcy proceedings; and (ix) the preparation, negotiation, execution, delivery,
review, filing, recording or administration of any documentation associated with the exercise of any of Borrower’s rights
hereunder and/or under the other Loan Documents regardless of whether or not any such right is consummated (including, without
limitation, Borrower’s rights hereunder to defease the Loan and to permit or undertake transfers (including under Sections
6.3 and 6.4 hereof), in each case, in accordance with the applicable terms and conditions hereof); provided, however, that, with
respect to each of subsections (i) though (ix) above, (A) none of the foregoing subsections shall be deemed to be mutually exclusive
or limit any other subsection, (B) the same shall be deemed to (I) include, without limitation and in each case, any related special
servicing fees, liquidation fees, modification fees, work-out fees and other similar costs or expenses payable to any Servicer,
trustee and/or special servicer of the Loan (or any portion thereof and/or interest therein) and (II) exclude any requirement that
Borrower directly pay the base monthly servicing fees due to any master servicer on account of the day to day, routine servicing
of the Loan (provided, further, that the foregoing subsection (II) shall not be deemed to otherwise limit any fees, costs, expenses
or other sums required to be paid to Lender under this Section, the other terms and conditions hereof and/or of the other Loan
Documents) and (C) Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by
reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender.

 

    	 	- 128 -	 

     

    

 

Section
17.7.       Cost of Enforcement. In the event (a) that the Security Instrument is foreclosed in whole or in part, (b) of the bankruptcy,
insolvency, rehabilitation or other similar proceeding in respect of Borrower or any of its constituent Persons or an assignment
by Borrower or any of its constituent Persons for the benefit of its creditors, or (c) Lender exercises any of its other remedies
under this Agreement, the Security Instrument, the Note and the other Loan Documents, Borrower shall be chargeable with and agrees
to pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post judgment action involved therein, together with all required
service or use taxes.

 

Section
17.8.       Schedules Incorporated. The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with
the same effect as if set forth in the body hereof.

 

Section
17.9. Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Security Instrument,
the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated
to such documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim
or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents
and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is
hereby expressly waived by Borrower.

 

Section 17.10.     No Joint Venture or Partnership;
No Third Party Beneficiaries.

 

(a)          Borrower
and Lender intend that the relationships created under this Agreement, the Security Instrument, the Note and the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-
common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that
of mortgagee, beneficiary or lender.

 

(b)          This Agreement,
the Security Instrument, the Note and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained
in this Agreement, the Security Instrument, the Note or the other Loan Documents shall be deemed to confer upon anyone other than
Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein
or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit
of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or
be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and
no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely
waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so.

 

    	 	- 129 -	 

     

    

 

(c)          The general
partners, members, principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership and operation
of properties similar to the Property, and Borrower and Lender are relying solely upon such expertise and business plan in connection
with the ownership and operation of the Property. Borrower is not relying on Lender’s expertise, business acumen or advice
in connection with the Property.

 

(d)          Notwithstanding
anything to the contrary contained herein, Lender is not undertaking the performance of (i) any obligations related to the Property
(including, without limitation, under the Leases); or (ii) any obligations with respect to any agreements, contracts, certificates,
instruments, franchises, permits, trademarks, licenses and other documents to which any Borrower Party and/or the Property (or
any portion thereof) is subject.

 

(e)          By accepting
or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Agreement, the
Security Instrument, the Note or the other Loan Documents, including, without limitation, any officer’s certificate, balance
sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy, Lender shall not be deemed
to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval
thereof shall not constitute any warranty or affirmation with respect thereto by Lender.

 

(f)           Borrower
recognizes and acknowledges that in accepting this Agreement, the Note, the Security Instrument and the other Loan Documents, Lender
is expressly and primarily relying on the truth and accuracy of the representations and warranties set forth in Article 3 of this
Agreement without any obligation to investigate the Property and notwithstanding any investigation of the Property by Lender; that
such reliance existed on the part of Lender prior to the date hereof, that the warranties and representations are a material inducement
to Lender in making the Loan; and that Lender would not be willing to make the Loan and accept this Agreement, the Note, the Security
Instrument and the other Loan Documents in the absence of the warranties and representations as set forth in Article 3 of this
Agreement.

 

Section
17.11.     Publicity. All news releases, publicity or advertising by Borrower or its Affiliates through any media intended to reach
the general public which refers to this Agreement, the Note, the Security Instrument or the other Loan Documents or the financing
evidenced by this Agreement, the Note, the Security Instrument or the other Loan Documents, to Lender or any of its Affiliates
shall be subject to the prior written approval of Lender, not to be unreasonably withheld.

 

Section
17.12.     Limitation of Liability. No claim may be made by Borrower, or any other Person against Lender or its Affiliates, directors,
officers, employees, attorneys or agents of any of such Persons for any special, indirect, consequential or punitive damages in
respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated
by this Agreement or any act, omission or event occurring in connection therewith; and Borrower hereby waives, releases and agrees
not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

    	 	- 130 -	 

     

    

 

Section
17.13.    Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement
and the Security Instrument, the Note or any of the other Loan Documents, the provisions of this Agreement shall control. The parties
hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of
this Agreement, the Note, the Security Instrument and the other Loan Documents and this Agreement, the Note, the Security Instrument
and the other Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted
same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering
into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary
or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available
to it under this Agreement, the Note, the Security Instrument and the other Loan Documents or any other agreements or instruments
which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest
any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on
the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender
engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse-to
or competitive with the business of Borrower or its Affiliates.

 

Section
17.14.   Entire Agreement. This Agreement, the Note, the Security Instrument and the other Loan Documents contain the entire
agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements
among or between such parties, whether oral or written between Borrower and Lender are superseded by the terms of this Agreement,
the Note, the Security Instrument and the other Loan Documents.

 

Section
17.15.     Liability. If Borrower consists of more than one Person, the obligations and liabilities of each such Person hereunder
shall be joint and several. This Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective
successors and assigns forever.

 

Section
17.16.     Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate originals and each duplicate
original shall be deemed to be an original. The failure of any party hereto to execute this Agreement, or any counterpart hereof,
shall not relieve the other signatories from their obligations hereunder.

 

    	 	- 131 -	 

     

    

 

Section
17.17.     Brokers. Borrower agrees (i) to pay any and all fees imposed or charged by all brokers, mortgage bankers and advisors
(each a “Broker”) hired or contracted by any Borrower Party or their Affiliates in connection with the transactions
contemplated by this Agreement and (ii) to indemnify and hold Lender harmless from and against any and all claims, demands and
liabilities for brokerage commissions, assignment fees, finder’s fees or other compensation whatsoever arising from this
Agreement or the making of the Loan which may be asserted against Lender by any Person. The foregoing indemnity shall survive the
termination of this Agreement and the payment of the Debt. Borrower hereby represents and warrants that no Broker was engaged by
any Borrower Party in connection with the transactions contemplated by this Agreement. Lender hereby agrees to pay any and all
fees imposed or charged by any Broker hired solely by Lender. Borrower acknowledges and agrees that (a) any Broker is not an agent
of Lender and has no power or authority to bind Lender, (b) Lender is not responsible for any recommendations or advice given to
any Borrower Party by any Broker, (c) Lender and the Borrower Parties have dealt at arms-length with each other in connection with
the Loan, (d) no fiduciary or other special relationship exists or shall be deemed or construed to exist among Lender and the Borrower
Parties and (e) none of the Borrower Parties shall be entitled to rely on any assurances or waivers given, or statements made or
actions taken, by any Broker which purport to bind Lender or modify or otherwise affect this Agreement or the Loan, unless Lender
has, in its sole discretion, agreed in writing with any such Borrower Party to such assurances, waivers, statements, actions or
modifications. Borrower acknowledges and agrees that Lender may, in its sole discretion, pay fees or compensation to any Broker
in connection with or arising out of the closing and funding of the Loan. Such fees and compensation, if any, (i) shall be in addition
to any fees which may be paid by any Borrower Party to such Broker and (ii) create a potential conflict of interest for Broker
in its relationship with the Borrower Parties. Such fees and compensation, if applicable, may include a direct, one-time payment,
servicing fees and/or incentive payments based on volume and size of financings involving Lender and such Broker.

 

Section
17.18.     Set-Off. In addition to any rights and remedies of Lender provided by this Agreement and by law, Lender shall have the
right in its sole discretion, without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by Borrower hereunder (whether at the stated maturity, by
acceleration or otherwise), to set-off and appropriate and apply against such amount any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Lender or any Affiliate
thereof to or for the credit or the account of Borrower; provided however, Lender may only exercise such right during the continuance
of an Event of Default. Lender agrees promptly to notify Borrower after any such set-off and application made by Lender; provided
that the failure to give such notice shall not affect the validity of such set- off and application.

 

Section 17.19.     Contributions and Waivers.

 

(a)          As a result
of the transactions contemplated by this Agreement and the other Loan Documents, each Borrower will benefit, directly and indirectly,
from each Borrower’s obligation to pay the Debt and perform its obligations hereunder and under the other Loan Documents
(collectively, the “Obligations”) and in consideration therefore each Borrower desires to enter into an allocation
and contribution agreement among themselves as set forth in this Section to allocate such benefits among themselves and to provide
a fair and equitable agreement to make contributions among each of Borrowers in the event any payment is made by any individual
Borrower hereunder to Lender (such payment being referred to herein as a “Contribution,” and for purposes of
this Section, includes any exercise of recourse by Lender against any Property of a Borrower and application of proceeds of such
Property in satisfaction of such Borrower’s obligations, to Lender under the Loan Documents).

 

    	 	- 132 -	 

     

    

 

(b)          Each Borrower
shall be liable hereunder with respect to the Obligations only for such total maximum amount (if any) that would not render its
Obligations hereunder or under any of the Loan Documents subject to avoidance under Section 548 of the Bankruptcy Code or any comparable
provisions of applicable Legal Requirements.

 

(c)          In order
to provide for a fair and equitable contribution among Borrowers in the event that any Contribution is made by an individual Borrower
(a “Funding Borrower”), such Funding Borrower shall be entitled to a reimbursement Contribution (“Reimbursement
Contribution”) from all other Borrowers for all payments, damages and expenses incurred by that Funding Borrower in discharging
any of the Obligations, in the manner and to the extent set forth in this Section.

 

(d)          For purposes
hereof, the “Benefit Amount” of any individual Borrower as of any date of determination shall be the net value
of the benefits to such Borrower from extensions of credit made by Lender to (i) such Borrower and (ii) to the other Borrowers
hereunder and the Loan Documents to the extent such other Borrowers have guaranteed or mortgaged their property to secure the Obligations
of such Borrower to Lender.

 

(e)          Each Borrower
shall be liable to a Funding Borrower in an amount equal to the greater of (i) the (A) ratio of the Benefit Amount of such Borrower
to the total amount of Obligations, multiplied by (B) the amount of Obligations paid by such Funding Borrower, or (ii) ninety-five
percent (95%) of the excess of the fair saleable value of the Property of such Borrower over the total liabilities of such Borrower
(including the maximum amount reasonably expected to become due in respect of contingent liabilities) determined as of the date
on which the payment made by a Funding Borrower is deemed made for purposes hereof (giving effect to all payments made by other
Funding Borrowers as of such date in a manner to maximize the amount of such Contributions).

 

(f)           In the
event that at any time there exists more than one Funding Borrower with respect to any Contribution (in any such case, the “Applicable
Contribution”), then Reimbursement Contributions from other Borrowers pursuant hereto shall be allocated among such Funding
Borrowers in proportion to the total amount of the Contribution made for or on account of the other Borrowers by each such Funding
Borrower pursuant to the Applicable Contribution. In the event that at any time any Borrower pays an amount hereunder in excess
of the amount calculated pursuant to this Section above, that Borrower shall be deemed to be a Funding Borrower to the extent of
such excess and shall be entitled to a Reimbursement Contribution from the other Borrowers in accordance with the provisions of
this Section.

 

(g)           Each Borrower
acknowledges that the right to Reimbursement Contribution hereunder shall constitute an asset in favor of Borrower to which such
Reimbursement Contribution is owing.

 

    	 	- 133 -	 

     

    

 

(h)          No Reimbursement
Contribution payments payable by a Borrower pursuant to the terms of this Section shall be paid until all amounts then due and
payable by all of Borrowers to Lender, pursuant to the terms of the Loan Documents, are paid in full in cash. Nothing contained
in this Section shall limit or affect in any way the Obligations of any Borrower to Lender under the Loan Documents.

 

(i)           To the extent permitted by
applicable Legal Requirements, each Borrower waives:

 

(i)           any right
to require Lender to proceed against any other Borrower or any other Person or to proceed against or exhaust any security held
by Lender at any time or to pursue any other remedy in Lender’s power before proceeding against Borrower;

 

(ii)          any defense
based upon any legal disability or other defense of any other Borrower, any guarantor of any other Person or by reason of the cessation
or limitation of the liability of any other Borrower or any guarantor from any cause other than full payment of all sums payable
under the Loan Documents;

 

(iii)         any
defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of
any other Borrower or any principal of any other Borrower or any defect in the formation of any other Borrower or any principal
of any other Borrower;

 

(iv)         any defense
based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any
other respects more burdensome than that of a principal;

 

(v)          any defense
based upon any failure by Lender to obtain collateral for the indebtedness or failure by Lender to perfect a lien on any collateral;

 

(vi)         presentment, demand, protest and notice of
any kind;

 

(vii)        any
defense based upon any failure of Lender to give notice of sale or other disposition of any collateral to any other Borrower or
to any other Person or any defect in any notice that may be given in connection with any sale or disposition of any collateral;

 

(viii)       any
defense based upon any failure of Lender to comply with applicable laws in connection with the sale or other disposition of any
collateral, including any failure of Lender to conduct a commercially reasonable sale or other disposition of any collateral;

 

(ix)          any
defense based upon any use of cash collateral under Section 363 of the Bankruptcy Code;

 

(x)           any defense
based upon any agreement or stipulation entered into by Lender with respect to the provision of adequate protection in any bankruptcy
proceeding;

 

    	 	- 134 -	 

     

    

 

(xi)          any defense
based upon any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code;

 

(xii)         any
defense based upon the avoidance of any security interest in favor of Lender for any reason;

 

(xiii)        any
defense based upon any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding,
including any discharge of, or bar or stay against collecting, all or any of the obligations evidenced by the Note or owing under
any of the Loan Documents;

 

(xiv)       any
defense or benefit based upon Borrower’s, or any other party’s, resignation of the portion of any obligation secured
by the Security Instrument to be satisfied by any payment from any other Borrower or any such party;

 

(xv)        all rights
and defenses arising out of an election of remedies by Lender even though the election of remedies, such as non-judicial foreclosure
with respect to security for the Loan or any other amounts owing under the Loan Documents, has destroyed Borrower’s rights
of subrogation and reimbursement against any other Borrower; and

 

(xvi)       all
rights and defenses that Borrower may have because any of the Debt is secured by real property. This means, among other things
(subject to the other terms and conditions of the Loan Documents): (1) Lender may collect from Borrower without first foreclosing
on any real or personal property collateral pledged by any other Borrower, and (2) if Lender forecloses on any real property collateral
pledged by any other Borrower, (I) the amount of the Debt may be reduced only by the price for which that collateral is sold at
the foreclosure sale, even if the collateral is worth more than the sale price and (II) Lender may collect from Borrower even if
any other Borrower, by foreclosing on the real property collateral, has destroyed any right Borrower may have to collect from any
other Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Borrower may have because any of the
Debt is secured by real property; and except as may be expressly and specifically permitted herein, any claim or other right which
Borrower might now have or hereafter acquire against any other Borrower or any other Person that arises from the existence or performance
of any obligations under the Loan Documents, including any of the following: (i) any right of subrogation, reimbursement, exoneration,
contribution, or indemnification; or (ii) any right to participate in any claim or remedy of Lender against any other Borrower
or any collateral security therefor, whether or not such claim, remedy or right arises in equity or under contract, statute or
common law.

 

(j)           Each Borrower
hereby restates and makes the waivers made by Guarantor in the Guaranty for the benefit of Lender. Such waivers are hereby incorporated
by reference as if fully set forth herein (and as if applicable to each Borrower) and shall be effective for all purposes under
the Loan (including, without limitation, in the event that any Borrower is deemed to be a surety or guarantor of the Debt (by virtue
of each Borrower being co-obligors and jointly and severally liable hereunder, by virtue of each Borrower encumbering its interest
in the Property for the benefit or debts of the other Borrowers in connection herewith or otherwise)).

 

    	 	- 135 -	 

     

    

 

Section 17.20. Cross-Default; Cross-Collateralization.

 

(a)          Borrower
acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in the Properties and in reliance
upon the aggregate of the Properties taken together being of greater value as collateral security than the sum of each Individual
Property taken separately. Borrower agrees that each of the Loan Documents (including, without limitation, the Security Instruments)
are and will be cross collateralized and cross defaulted with each other so that (i) an Event of Default under any of Loan Documents
shall constitute an Event of Default under each of the other Loan Documents; (ii) an Event of Default hereunder shall constitute
an Event of Default under each Security Instrument; (iii) each Security Instrument shall constitute security for the Note as if
a single blanket lien were placed on all of the Properties as security for the Note; and (iv) such cross collateralization shall
in no event be deemed to constitute a fraudulent conveyance and Borrower waives any claims related thereto.

 

(b)          To the
fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the
assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Properties (or any portion thereof
and/or estate or other interest therein), or to a sale in inverse order of alienation in the event of foreclosure of all or any
of the Security Instruments (whether in whole or in part), and agrees not to assert any right under any laws pertaining to the
marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents,
or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Properties
(or any portion thereof and/or estate or other interest therein) for the collection of the Debt without any prior or different
resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds of the Properties (or any portion
thereof and/or estate or other interest therein) in preference to every other claimant whatsoever. In addition, Borrower, for itself
and its successors and assigns, waives in the event of foreclosure of any or all of the Security Instruments (whether in whole
or in part), any equitable right otherwise available to Borrower which would require the separate sale of the Properties (or any
portion thereof and/or estate or other interest therein) or require Lender to exhaust its remedies against any Individual Property
(or any portion thereof and/or estate or other interest therein) or any combination of the Properties (or any portion thereof and/or
estate or other interest therein) before proceeding against any other Individual Property (or any portion thereof and/or estate
or other interest therein) or combination of Properties (or any portion thereof and/or estate or other interest therein); and further
in the event of such foreclosure Borrower does hereby expressly consent to and authorize, at the option of Lender, the foreclosure
and sale either separately or together of any combination of the Properties (or any portion thereof and/or estate or other interest
therein).

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	 	- 136 -	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be duly executed by their duly authorized representatives,
all as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	LVP H2S SALT LAKE CITY LLC, a Delaware limited liability company
	 	 	 
	 	By:	LVP H2S SALT LAKE CITY HOLDINGS LLC, a
	 	 	Delaware limited liability company, its Managing Member
	 	 	 
	 	By:	 
	 	Name:	Joseph E.Teichman
	 	Title:	Executive Vice President
	 	 	 
	 	LVP H2S SALT LAKE CITY HOLDING CORP., a Delaware corporation
	 	 	 
	 	By	 
	 	Name:	Joseph E. Teichman
	 	Title:	President and Secretary
	 	 	 
	 	LVP H2S SEATTLE LLC, a Delaware limited liability company
	 	 	 
	 	By:	LVP H2S SEATTLE HOLDINGS LLC, a Delaware limited liability company, its Managing Member
	 	 	 
	 	By	 
	 	Name:	Joseph E. Teichman
	 	Title:	Executive Vice President

 

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGE]

 

    	 	- 137 -	 

     

    

 

	 	LVP H2S SEATTLE HOLDING CORP., a
	 	Delaware corporation
	 	 	 
	 	By	 
	 	Name:	Joseph E. Teichman
	 	Title:	Executive Vice President

 

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGE]

 

    	 	- 138 -	 

     

    

 

	 	LENDER:
	 	 
	 	CITIGROUP  GLOBAL MARKETS REALTY CORP., a New York corporation
	 	 	 
	 	By	 
	 	Name:	Ana Rosu Marmann
	 	Title:	Authorized Signatory

 

    	 	- 139 -

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